MAR 2016

NACALA CORRIDOR RESETTLEMENT

STATUS REPORT FOR LENDERS
This document was prepared by Synergia for:

CDN – Corredor de Desenvolvimento do CEAR- Central East

Norte African Railways

CLN – Corredor Logistico Integrado Vale Logistics Limited

de Nacala

Av. Ipiranga, 104 - 13º andar –

República, CEP - 01046-010 –
São Paulo – SP Brasil
TABLE OF CONTENTS

1 INTRODUCTION ......................................................................... 8
1.1 PURPOSE OF THE RESETTLEMENT STATUS REPORT ............................... 8
1.2 BRIEF PROJECT DESCRIPTION ............................................................... 9
1.3 PROJECT PROPONENT ........................................................................ 10
1.4 MAGNITUDE OF PHYSICAL AND ECONOMIC DISPLACEMENT ....... 10
1.5 RESETTLEMENT GOAL AND OBJECTIVES ............................................ 12
1.6 RESETTLEMENT PLANNING PROCEDURE ............................................ 13
1.7 IMPLEMENTATION ARRANGEMENTS .................................................. 14
1.8 SCHEDULE ............................................................................................. 15
1.9 CURRENT STATUS OF PROJECT RESETTLEMENT .................................. 15
1.10 OTHER RESETTLEMENT-RELATED MANAGEMENT PLANS AND
STUDIES .................................................................................................. 16

2 PROJECT DESCRIPTION .......................................................... 16

2.1 GENERAL .............................................................................................. 16
2.2 RAIL CORRIDOR ROUTE ...................................................................... 18
2.3 RIGHT OF WAY ..................................................................................... 18
2.4 TEMPORARY USES (CONSTRUCTION CAMPS, ACCESS ROADS) .... 19
2.5 MOBILITY AND CROSSINGS ................................................................ 20
2.6 PORT ...................................................................................................... 20
2.7 SPUR LINES ............................................................................................ 21
2.8 PROJECT SCHEDULE ............................................................................ 22
2.9 CONSIDERATION OF ALTERNATIVES .................................................. 23
2.10 MEASURES TAKEN TO MINIMIZE LAND ACQUISITION AND
RESETTLEMENT....................................................................................... 24

3 POLICY AND LEGAL FRAMEWORK ....................................... 25

3.1 GENERAL .............................................................................................. 25
3.2 MOZAMBICAN LEGISLATION .............................................................. 25
3.3 MALAWIAN LEGISLATION ................................................................... 26
 3.4 CONCESSION AGREEMENTS .............................................................. 27
3.5 APPROVED COMPENSATION AND RESETTLEMENT PLANS .............. 28
3.6 LENDER STANDARDS............................................................................ 29
3.7 PROJECT MEASURES TO ADDRESS LENDER STANDARDS................. 31

4 SOCIO-ECONOMIC OVERVIEW OF AFFECTED

POPULATION ............................................................................ 35
4.1 INTRODUCTION .................................................................................... 35
4.2 CENSUS, SURVEYS AND DATA GATHERING ...................................... 35
4.3 OVERVIEW OF PROJECT AFFECTED POPULATION ........................... 35
4.4 VULNERABLE HOUSEHOLDS ................................................................ 40
4.5 CULTURAL PROPERTY........................................................................... 41

5 SUMMARY OF IMPACTS.......................................................... 42
5.1 SUMMARY OF IMPACTS ...................................................................... 42
5.2 DWELLINGS ........................................................................................... 42
5.3 ANCILLARY STRUCTURES ..................................................................... 43
5.4 CULTIVATED FIELDS (MACHAMBAS) .................................................. 43
5.5 LOSS OF ANNUAL CROPS ................................................................... 44
5.6 LOSS OF TREES AND PERENNIAL CROPS ........................................... 45
5.7 GRAVES AND SACRED SITES ............................................................... 46
5.8 SEVERANCE OF FIELDS ........................................................................ 46
5.9 SEVERANCE OF PATHS, ACCESS WAYS ............................................. 47
5.10 TEMPORARY USE OF LAND ................................................................. 47
5.11 TRANSITIONAL ACCOMMODATION .................................................. 47
5.12 IMPACTS ON STALLHOLDERS AND BUSINESS .................................... 47
5.13 LOSS OF ACCESS TO COASTAL GATHERING AREA ......................... 48
5.14 LOSS OF ACCESS TO FISHERIES........................................................... 49

6 COMPENSATION FRAMEWORK ............................................ 49

6.1 INTRODUCTION .................................................................................... 49
6.2 ELIGIBILITY FOR COMPENSATION AND RESETTLEMENT
ASSISTANCE .......................................................................................... 49
6.3 COMPENSATION ENTITLEMENTS ......................................................... 51
6.4 VALUATION METHODS AND CALCULATION OF COMPENSATION 53

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7 REPLACEMENT HOUSING AND INFRASTRUCTURE ............... 56
7.1 INTRODUCTION .................................................................................... 56
7.2 MOZAMBIQUE ...................................................................................... 56
7.3 MALAWI ................................................................................................ 65

8 LIVELIHOOD RESTORATION .................................................... 66

8.1 INTRODUCTION .................................................................................... 66
8.2 FACILITATING ACCESS TO REPLACEMENT LAND ............................. 66
8.3 LIVELIHOOD SUB-PROGRAMS ............................................................ 66
8.4 STALLHOLDERS ..................................................................................... 69
8.5 LIVELIHOOD PROGRAM MID-TERM REVIEWS AND EVALUATION ... 70
8.6 CURRENT STATUS AND PLAN GOING FORWARD ............................. 70

9 PUBLIC CONSULTATION AND DISCLOSURE ......................... 72

9.1 INTRODUCTION .................................................................................... 72
9.2 OBJECTIVES .......................................................................................... 72
9.3 STAKEHOLDER IDENTIFICATION .......................................................... 73
9.4 COMMUNITY REPRESENTATION AND ENGAGEMENT ...................... 74
9.5 SUMMARY OF CONSULTATION ACTIVITIES ........................................ 74
9.6 CONSULTATION WITH HOST COMMUNITIES ...................................... 75
9.7 ATTENTION TO VULNERABLE GROUPS ............................................... 75
9.8 SUMMARY OF DISCLOSURE ACTIVITIES ............................................. 76

10 IMPLEMENTING ROLES AND RESPONSABILITIES ................... 76

10.1 INTRODUCTION .................................................................................... 76
10.2 INSTITUTIONAL ROLES AND RESPONSIBILITIES .................................... 77
10.3 SOCIAL TEAM ORGANIZATION .......................................................... 78
10.4 SOCIAL TEAM RESOURCES ................................................................. 79

11 GRIEVANCE MANAGEMENT ................................................. 79

11.1 GENERAL .............................................................................................. 79
11.2 OBJECTIVES .......................................................................................... 80
11.3 GRIEVANCE PROCEDURE ................................................................... 80
11.4 AVENUES FOR PROJECT AFFECTED PEOPLE TO MAKE A
COMPLAINT .......................................................................................... 81
11.5 GRIEVANCE MANAGEMENT ROLES AND RESPONSIBILITIES ............ 82

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 11.6 MONITORING OF GRIEVANCE OUTCOMES ..................................... 83
11.7 COURT CASES ...................................................................................... 83
11.8 SOURCE OF FUNDS .............................................................................. 84

12 MONITORING AND REPORTING ............................................ 85

12.1 GENERAL .............................................................................................. 85
12.2 OBJECTIVES .......................................................................................... 87
12.3 INTERNAL MONITORING ...................................................................... 87
12.4 EXTERNAL MONITORING ..................................................................... 87
12.5 MONITORING SCHEDULE .................................................................... 88
12.6 REPORTING ........................................................................................... 88
12.7 RESETTLEMENT COMPLETION AUDIT................................................... 88
12.8 RESPONSIBILITIES FOR DISBURSEMENT ................................................ 89

13 RAP IMPLEMENTATION SCHEDULE ........................................ 90

ANNEX A......................................................................................... 91

6
ACRONYMS

AfDB African Development Bank

CCCV Concessionaires (CLN, CDN, CEAR, VLL)
CDN North Development Corridor
CEAR Central East African Railways
CFM Caminhos de Ferro de Moçambique (Mozambican Railway Authority)
CLN Integrated Logistic Corridor of Nacala
DUAT Right to Use and Land Utilization
EIA Environmental Impact Assessment
EMP Environmental Management Plan
HIV Human Immunodeficiency Virus
ICP Informed Consultation and Participation
IFC International Finance Corporation
LRP Livelihood Restoration Program
MICOA Ministry for Coordination of Environmental Action
MITADER Ministry of Land, Environment and Rural Development
MIREM Ministry of Mineral Resources
NGO Non Governmental Organization
NCP Nacala Corridor Project
PAP Project Affected People
PCS Social Compensation Plan
PDSO Displacement Plan for Operational Safety
PEC Executive Compensation Plan
PNUD United Nation Program for Development
PRO Operational Procedure
PS Performance Standard
RAP Resettlement Action Plan
ROW Right of Way
RSR Resettlement Status Report
SDCN Development Company of the Nacala Corridor, SA
TOT Training of Trainers
UN United Nations
VLL Vale Logistics Limited

7
1 INTRODUCTION

1.1 PURPOSE OF THE RESETTLEMENT STATUS REPORT

The Concessionaires (CCCV) are seeking finance for the Nacala Corridor and Port Project (‘the
Project’) from a group of international financing institutions. The purpose of the
Resettlement Status Report is to describe the current status of the Project resettlement
undertaken in accordance with the laws of Mozambique and Malawi and, in addition, to
demonstrate Project measures taken to comply with specific lender standards.

The Resettlement Status Report summarizes the policies, principles, procedures, roles and
responsibilities for managing physical displacement impacts (loss of dwellings) and economic
displacement impacts (loss of assets that leads to loss of income or other means of
livelihood) caused by the construction and operation of the rail corridor.

This report has been prepared to demonstrate the Project’s compliance with:
 Mozambican legislation;
 Malawian legislation;
 Concession agreements;
 International lender standards, specifically the International Finance Corporation (IFC)
Performance Standard 5: Land Acquisition and Involuntary Resettlement (January
2012); and, African Development Bank Operational Safeguard 2 involuntary
resettlement, land acquisition, population displacement and compensation.

IFC PS 5 is widely accepted as the international good practice standard for private sector
projects involving land acquisition and involuntary resettlement. IFC PS 5 is one of the
standards that prospective international lenders refer to when considering financing
projects.

All resettlement activities have been implemented with disclosure of information,

consultation and the informed participation of affected communities and the Governments
of Mozambique and Malawi. Civil society organizations have also been actively involved in
Project resettlement planning and implementation. Consultation and engagement with
affected and host communities, all levels of government and civil society is an ongoing and
cross cutting process throughout resettlement implementation.

Taking into consideration that the resettlement process is ongoing, it was necessary to
establish a cutoff date for the data presented in this status report. For this reason, the main
figures herein presented are dated as of 29 February 2016. CCCV is commited to provide
updates on the status of the resettlement going forward, if requested.

8
1.2 BRIEF PROJECT DESCRIPTION

Table 1. Nacala Corridor Project key statistics

RAILWAY PORT
Construction of port facilities, with capacity of
18 Mtpa (thermal and metallurgical coal)
1 car dumper (4,800 tph) – 2 wagons
Construction of 230 km of railway
simultaneously
and 36 new bridges;
2 stackers (4,800 tph)
Repair of 683 km of railway and 47
Scope 2 reclaimers (5,100 tph)
bridges;
2 shiploaders (5,100 tph)
Construction of operation and
13 Km of conveyor belts
maintenance facilities.
3 stockyards (1 million ton)
Causeway (550 m), access bridge (750 m), 1
berth (430 m) for ships up to 180,000 DWT
Capex US$ 3.4 billion US$ 1.0 billion

Duration 54 months 42 months

Project
September 2011 September 2011
Approval

Project
March 2016 July 2015
Completion

Manpower
9,094 employees 5,175 employees
Peak
Permits All granted in 2011 All granted in 2011

Figure 1. Nacala Corridor overview

9
1.3 PROJECT PROPONENT

A Framework Agreement was signed by Vale, “Caminhos de Ferro de Moçambique” (CFM)

and four Concessionaires “Corredor de Desenvolvimento do Norte” (CDN), “Central East
African Railways” (CEAR), “Vale Logistics Limited” (VLL) and “Corredor Logistico Nacala”
(CLN), which provides for CLN to operate the entire Project on behalf of all Concessionaires.

CEAR and CDN will operate: (i) general cargo and passenger trains within their sections; (ii)
the Mchinji – Lilongwe – Nkaya – Limbe – Blantyre – Makhanga – Marka line (about 700 km
in Malawi) and the Lichinga – Cuamba branch line (about 268 km in Mozambique); and, (iii)
various stations and workshops (see Figure 2). Both lines require rehabilitation. The Lichinga
– Cuamba line has been inactive since 2011 and is being rehabilitated by the Project as part
of a regional development action agreed with the Government of Mozambique.

CDN will operate the rail line terminal of the existing Nacala Port. Under the proposed
financing scheme, the four Concessionaires would be the borrowers of record (the
“Borrowers”). Vale has an 85% stake in “Sociedade de Desenvolvimento do Corredor do
Norte” (SDCN) which in turn has 51% of both CEAR and CDN.

Figure 2. Nacala Corridor Concessionaires

1.4 MAGNITUDE OF PHYSICAL AND ECONOMIC DISPLACEMENT

1.4.1 PROJECT AFFECTED POPULATION

The Nacala Corridor and Port Project has physically displaced 1,817 households. Of these,
1,058 households have experienced both physical and economic displacement. A further
12,033 households have been economically displaced. Table 2 summarizes the number of
affected households in each corridor section.

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Table 2. Number of Affected Households by Section

NCP Section
Displacement type
S2 S3 S5 S6 S7 S8/ Port Total
Physically displaced only 10 0 0 96 625 28 759
Physically &
0 177 52 110 692 27 1,058
economically displaced
Economically* displaced
222 1,615 2,781 739 5,392 1,284 12,033
only

Outside urban areas, most physically displaced households were able to re-establish
dwellings only a short distance from their original dwelling and, nearly always within the
same community or settlement.
*Economically displaced includes machambas and other economic activities such as market,
stalls and trees.

1.4.2 PROJECT IMPACTS ON LAND

Project impacts on land are summarized in Table 3. Railway S5, S6 and S7 are a brownfield
project, which is to say there was a pre-existing railway and right of way, acquired for the
most as part by a previous concessionaire.

In general, affected households own at least one machamba (field/agricultural plot). The
average total area of a household’s machambas is less than 0.5 ha, ranging from 0.1 ha to 1.1
ha. The affected agricultural land is largely arable, and is used to cultivate a range of crops
mainly for subsistence. Loss of machambas represents a direct loss of a key part of a rural
household’s agricultural production base and livelihood.

Table 3. Affected machambas and landowners

Loss of fields for Farmlands (Machambas)

cultivation S2 S3 S5 S6 S7 S8/ Port Total
Number of
215 1,101 1,326 853 5,303 1,574 10,372
machambas (active)
Number of
0 870 1,477 0 0 0 2,347
machambas (fallow)
Total area (ha) 60 1,199 173 168 1,203 297 3,100
No. of unique affected
198 1,613 2,717 800 5,022 1,311 11,661
landowners

1.4.3 IMPACTS ON STALLHOLDERS AND BUSINESSES

Some 1,171 stallholders had 1,225 stalls displaced by rail construction or establishment of
safety zones around the railway line (see Section 2.3). Most stalls were informal, arranged
either linearly along the railway line in rural villages or settlements, or more densely as part
of markets in Nacala, Cuamba and in other regional agricultural service centers.

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 Table 4. Affected stall and stallholders

Number of Stalls
Type of Loss
S2 S3 S5 S6 S7 S8/ Port Total
Loss of rail side stall 0 1 64 51 435 0 551
Loss of market stall 0 0 0 0 674 0 674
Total of stalls 0 1 64 51 1,109 0 1,225
No. of unique affected
0 1 59 49 1,062 0 1,171
stallholders

1.5 RESETTLEMENT GOAL AND OBJECTIVES

This Resettlement Status Report has been prepared on behalf of the Concessionaires (CCCV)
for a group of international financing institutions (“Lenders”) in order to describe the current
status of resettlement for the Nacala Corridor Project and to:
 summarize the actions undertaken in accordance with laws of Mozambique and
Malawi;
 demonstrate Project measures taken to comply with specific lender standards;
 indicate the measures taken to avoid or minimize the need for resettlement and
reduce impacts caused by the construction, rehabilitation and operation of the rail
corridor;
 describe the policies, principles, procedures, roles and responsibilities for managing
physical displacement (loss of dwellings) and economic displacements (full or partial
loss of income sources or other means of livelihood) caused by the construction and
operation of the rail corridor.

The overall goal for Project land acquisition and resettlement is to ensure that Project
affected people (PAP) are compensated through a negotiated process, and have the
opportunity to restore or improve their livelihoods and standards of living, complying with
legal requirements, environmental and social commitments, commitments to lenders'
standards and good international practice.

In order to achieve this goal, the following objectives were established:

 avoid or minimize displacement;
 implement mechanisms for communication, consultation and participation, involving
the different groups related to the Project (central, regional and district government,
community leaders and households), in accordance with the Stakeholder Engagement
Plan;
 implement a Grievance Management System;
 ensure fair compensation, in accordance with the national legal frameworks and
international standards;
 implement livelihood restoration projects and social development actions focused on
local solutions and alternatives to give PAP the opportunity to restore their living
standards and livelihoods to at least pre-project levels;

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  develop and maintain a database that supports the planning, implementation,
monitoring and evaluation of the proposed programs and actions; and,
 develop and implement a monitoring and evaluation program to assess the
effectiveness of resettlement programs and livelihood measures in achieving
outcomes consistent with the RSR objectives.

1.6 RESETTLEMENT PLANNING PROCEDURE

The Table 5 shows the main steps and activities for each resettlement phase.

Table 5. Resettlement phases and main activities

RESETTLEMENT PLANNING
RAP and - Preparation of RAP and compensation framework
compensation - Internal review and approval of RAP
framework
- Government approval of RAP
preparation
- Community mobilization
- Undertake the census and inventory of all household assets
Database
- Witness the data collection
- Data processing and database management
- Complaints and grievance report and registration
Complaints and
- Complaints and grievance analysis and response formulation
grievance
- Complaints and grievance response communication
management
- Complaints and grievance closeout
RESETTLEMENT IMPLEMENTATION
- Formal valuation of housing, plots and other assets for cash compensation
- Review and approve valuations
- Prepare payment schedule and request money to be made available by the
finance department
Compensation
- Mobilize beneficiaries to be available at Government administration building
disbursement
for payment
- Actual payment in the field
- Witness the compensation payment in the field
- Sign the payment receipts
Physical - Undertake a monitoring process to ensure compensated families leave the
relocation to construction area
temporary
- Provide support to the displaced families, where required
housing
- Preparation of data collection tools
Database - Update existing database during transition phase
- Data processing and database management
- Consult with affected families to identify their preferences and requirements
- For special cases (vulnerable groups), where needed, develop measures to
Host area
support them
selection and
- Define requirements for the host area site selection
approval
- Identify and evaluate potential host area options
- Consult with any host or receiving communities

13
 - Approval of selected host areas
- Communicate approved host areas to construction companies
- Develop housing designs in consultation with affected families
- Approval of housing designs
- Develop a host area plan that defines the area layout
- Develop architectural and engineering designs for tender of house
construction
- Payment of quarterly house rental subsidy for rental
Support during - Provision of transitional support, particularly to vulnerable groups, where
transition required
- On-going information sharing with affected families
- Issuance of construction licenses
Participative - Replacement site preparation and construction of the replacement houses
construction of - Identification of family members to participate in the construction of houses
the houses - Provision of training to the selected family members
- Regular monitoring of the construction process
Hand-over of - Conduct traditional ceremonies
constructed - Hand-over of houses
houses - Ensure hand-over documents are signed by the required parties
- Complaints and grievance report and registration
Complaints and
- Complaints and grievance analysis and response formulation
grievance
- Complaints and grievance response communication
management
- Complaints and grievance closeout
Documentation - Preparation of plans for issue of land (DUATs) and house (ownership) titles
to the affected
- Issuance of DUATs and house titles
families
LIVELIHOOD RESTORATION
- Development of database of families that lost machambas
Livelihood
- Provide support to the economically displaced families in finding new
restoration
machambas
projects
- Develop and implement projects to improve production and income
Community - Implementation of community investment projects/actions
Investment
- Monitoring and evaluation
programs
MONITORING AND EVALUATION
Monitoring and - Monitoring of before vs. after for all displaced households
Evaluation - Any defects under house construction guarantees, if required

1.7 IMPLEMENTATION ARRANGEMENTS

In Malawi, the Government was responsible for the implementation of the resettlement
process. It was supported by the Concessionaires. Cash compensation was paid directly by
the Government to PAPs losing buildings, agricultural land, seasonal and perennial crops,
businesses and other community assets.

In Mozambique, the Government is responsible for the resettlement process and the
Concessionaires facilitate its implementation. Replacement residential land and assistance
for finding replacement agricultural land was provided by the Government. Replacement
housing and cash compensation for ancillary structures was provided by the Concessionaires.

14
1.8 SCHEDULE

The schedule below refers to the main resettlement tasks of Nacala Corridor Project
implementation.

Table 6. NCP implementation overall schedule with main resettlement steps

Program for 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NCPImplementation 1s 2s 1s 2s 1s 2s 1s 2s 1s 2s 1s 2s 1s 2s 1s 2s 1s 2s 1s 2s
Environmental Impact Assessment
Formal Public Participation/Disclosure
Environmental Licenses obtained
Stakeholders Engagement
Resettlement Planning
Resettlement Implementation
Community investment program
Livelihood Restoration Program
Resettlement Completion Audit
Projectec basic design
Projectec detailed design
Campsites and temporay construction
Port Construction
Railway construction
Port test and commissioning
Railway test and commissioning
Operations

1.9 CURRENT STATUS OF PROJECT RESETTLEMENT

The table below provides the current status of the Project’s resettlement implementation.

Table 7. Resettlement implementation status by Section, as of 29 February 2016

% Complete
Task (examples only)
S2 S3 S5 S6 S7 S8/ Port Total
Notification 100 100 100 100 100 100 100
Census 100 100 100 100 100 100 100
Socio-economic survey 100 100 100 100 100 100 100
Land and asset survey 100 100 100 100 100 100 100
Compensation/ resettlement
100 100 100 100 100 100 100
agreement signed
Land vacated 100 100 100 100 100 100 100
Dwellings vacated 100 100 100 100 100 100 100
Replacement housing
100 NA NA 24 21 100 25
constructed
Replacement land accessed 100 100 100 100 100 100 100
Completion audit 0 0 0 0 0 0 0

15
 Since 2012 the Project has been implementing a Livelihood Restoration Program (LRP),
consisting of agricultural engagement services, vocational training and inclusive business. Up
until now, LRP actions have reached about 75% of affected families across the corridor. Over
50% of PAP participation was in agriculture. Nampula and Niassa recorded increased PAP
cultivated area after 12 months of agricultural sub-program implementation. In Nacala-a-
Velha District, approximately 5% of farmers have increased their cultivated areas from 0.25
ha to 0.50 ha, due to the introduction of the agricultural income LRP component.

1.10 OTHER RESETTLEMENT-RELATED MANAGEMENT PLANS AND STUDIES

Between 2011 and 2015, resettlement/compensation plans for each rail section or
administrative district were prepared and approved by the Governments of Mozambique and
Malawi prior to resettlement implementation. According to each Project section, these plans
were variously named as “Plano Executivo de Compensação” – PEC (Executive Compensation
Plan) or “Plano de Desocupação para Segurança Operacional”- PDSO (Displacement Plan for
Operational Safety).

Others relevant plans and documents (e.g. Stakeholder Engagement Plan, Mobility Study,
Rail and Port Environmental and Social Management Plan (ESMP)) are listed in the Annex A.

2 PROJECT DESCRIPTION

2.1 GENERAL

The Nacala rail corridor will connect the minerals and coal-rich Tete region (where the
Moatize coal mine is located) in Northwestern Mozambique to Nacala Port through Malawi.
The Project will provide (i) much needed connectivity for people and cargo to the under-
developed and isolated northern regions of Mozambique, as well as to land-locked Malawi;
and, (ii) will enable export of coal, iron ore and other minerals from the mineral-rich Tete
region which will have a significant impact on Mozambique’s GDP.

The Nacala rail corridor will transport up to 22 million tons per annum (“mtpa”) of coking
(metallurgical grade) and thermal coal, various minerals (mainly iron ore), general freight and
passengers. Vale will use 18 mtpa of this capacity. The Project has the following components:
 230 km of new railway construction (‘greenfield’) single narrow gauge rail track (201
km of S2 and S3, out of which 62.5 km is in Mozambique and 138.5 km is in Malawi,
and, 29.3 km in S8, Mozambique);
 682 km of rehabilitation of existing narrow gauge rail track (98.6 km in Malawi and
583.3 km in Mozambique); and,
 construction of a new coal handling terminal at Nacala-a-Velha.

The Nacala Corridor will follow a multi-cargo approach, with a combination of coal transport
contracts (7.2 pairs of trains per day, one each way), general freight/cargo (2 pairs per day)

16
and passengers (1 pair per day, transporting a projected million or more passengers per
annum by 2017). Each coal train will comprise 120 wagons hauled by 4 locomotives. Train
control and maintenance will be carried out from Nacala-a-Velha.

Nacala, with a natural water depth of 20 m, is regarded as the best deep water port in
Eastern Africa. The new port terminal is located at Namuaxi Point on the eastern shore of
Nacala Bay, approximately 5 km from the main town of Nacala and to the north-west of the
existing Nacala port. The new terminal will have a stockyard capacity of about 1.45 million
tons and will manage the arrival of trains, their offloading, the conveyance and storage of
coal and its loading onto ships. The new terminal will receive Capesize and Panamax ships.

The construction phase started in 2011, funded by a bridging loan from Vale Emirates and
Vale International. Pre-operational start was in 2015. Full operation will be achieved in 2017.

The key off-taker for the Project is Vale Moçambique (the Mozambican subsidiary of Vale
SA), for the transport of coal from the Moatize mine, an open-cut metallurgical coal mine
located in the Tete Province.

Vale was awarded rights to develop the Moatize mine by the Government of Mozambique as
the outcome of an international competitive tender held in 2004. A 25-year Concession
Agreement was signed in 2007. Vale’s proposal included the development of associated
railway and port infrastructure. The Nacala Corridor is essential to make the mine a viable
and successful operation.

Currently, coal production from the Moatize mine is transported by the Sena railway line to
the Port of Beira, which is about 1,000 km further South and which has a capacity of 4.5 mtpa
allocated to Vale Moçambique. Vale Moçambique plans to continue having an ongoing
operation of 4 mtpa transported on the Sena-Beira line, in parallel with the Nacala Corridor.

Figure 3. Nacala Railway main figures

17
2.2 RAIL CORRIDOR ROUTE

Figure 4. Nacala Corridor sections length

Figure 5. CEAR and CDN rail lines

2.3 RIGHT OF WAY

In Mozambique, the right of way for the railways extends 50 m either side of the centerline
of the rail, as defined by legislation and the Railway Concession.

In Malawi, legislation does not define any particular width requirements for a rail right of
way, but the Railway Concession Agreement prescribes 30 m on either side of the centerline
of the rail, or 45 m where needed.

18
 With the objective of minimizing displacement, the Project decided not to clear the whole
right of way. To define the width that the Project would use in each part of the corridor,
several steps were followed.

Firstly, the right of way width prescribed by the legislation or concession agreements in each
country were mapped and then, based on aerial photographs, the total number of existing
household structures and area of land used within the right of way were estimated.

Secondly, the minimum safety zone required for community safety during construction and
rehabilitation activities was established. For most areas, the safety zone was set at 10 m to
15 m from the center line of the rail. This was the minimum area required during
construction for activities such as earthworks (cut and fill), access roads, campsites,
maneuvering of heavy equipment and to accommodate auxiliary structures. The safety zone
is also necessary for the safe operation and maintenance of the railway.

In some special cases, for example where the railway passes through densely populated
areas in Nampula City, the safety zone was set at 6 m either side of the rail track. With this
reduced safety zone, additional safety measures such as brick walls and fences were also
introduced.

Environmental studies conducted in 2010, were also referred to by the project engineering
team for siting construction laydowns, crossings yards, detours and other works areas so as
to avoid displacement of dwellings and productive land. A similar approach was adopted for
permanent facilities such as bridges, level crossings, fences, walkways and the like.

Even during implementation, the Project team continued to evaluate and refine siting,
alignments and engineering design to prevent or minimize the displacement of dwellings,
fixed assets, social facilities and culturally significant features such as sacred sites and
cemeteries.

2.4 TEMPORARY USES (CONSTRUCTION CAMPS, ACCESS ROADS)

There are 5 main types of temporary facilities used to support railway construction:
campsites, construction laydown areas, quarries, borrow pits and temporary access roads.

In all cases, land for temporary uses was acquired using one of two approaches: The first
approach involved the Concessionaires directly compensating the landholder (usually the
district government) for temporary use of the land and any lost assets followed by its hand-
over to the Contractor. The Contractor was then responsible for the proper environmental
management of the area and its restoration prior to handback to the district government or
land user.

In a second approach, the Contractor paid the temporary land compensation, adopting the
same market rates established by the Concessionaires. For this approach, there was a
constant interaction between the Concessionaires´ social team and Contractor’s team in
order to align the method of compensation. As in the first approach, the Contractor was fully
responsible for complying with environmental and social regulations until handback to the
district government or original land user.

19
2.5 MOBILITY AND CROSSINGS

The most populated Project areas were in the brownfield sections, mainly in urban and
suburban areas, such as Nampula City. In brownfield areas, the railway had been in existence
since the colonial period. This meant that the majority of PAPs living in these areas were
already accustomed to the severance impacts caused by the railway.

In 2015, a corridor-wide mobility study was undertaken to identify and prioritize the main
community crossing points, including high traffic areas, crossings used by school children or
crossings adjacent to critical community infrastructure such as schools and hospitals. The
Mobility Plan identified 88 high priority crossings. The Project is progressively constructing
solutions for each of the high priority locations. These include pedestrian overpasses, vehicle
level crossings, traffic barriers, viaducts and signals tailored to local crossing needs. The
target date for completion of the 88 high priority crossings is December 2017.

2.6 PORT

The Nacala-a-Velha Coal Terminal is located at the eastern end of the Nacala rail corridor. It
will manage the arrival of trains, their offloading, the conveyance and storage of coal, coal
handling and its loading onto ships.

The Port Marine Terminal (extending into the sea to the west of the site as shown in Figure 6)
will receive the Capesize and Panamax ships.

Figure 6. Nacala-a-Velha Coal Terminal overview

The process of receiving, storing and loading coal can be summarized in six phases:
1. Wagon Tipper;
2. Primary Sampling;
3. Stacking and Storing;
4. Reclaiming;
5. Secondary Sampling;
6. Ship Loading.

20
 Figure 7. Nacala-a-Velha Coal Terminal details

The port construction works started in 2011 and were concluded in 2015.

2.7 SPUR LINES

Cuamba – Lichinga

As part of regional development actions agreed with the Government of Mozambique, the
Concessionaires will rehabilitate the Lichinga – Cuamba spur line that connects to the Nacala
Corridor. The Lichinga – Cuamba line has been inactive since 2011.

The rehabilitation will cover 268.2 km of line including crossing loops and yards. The scope of
works includes track rehabilitation, renewal of rail lines on bridges, and drainage works.

The first phase of the rehabilitation covered Cuamba to Metande (110 km) and was
completed in May 2015. The second phase will cover Metande to Lichinga (158 km). The
target date for completion is June 2016. Rehabilitation progress as of October 2015 was 49%
complete.

Preliminary assessment indicates that no displacement will be required.

Nkaya – Limbe

As part of the Nacala Corridor Project, the Project is also undertaking the rehabilitation of the
existing Nkaya - Limbe railway in Malawi. The rehabilitation will cover 96 km of line, including
crossing loops. The first phase, Lirangwe-Limbe (47 km), is presently being rehabilitated. The
second phase, Nkaya-Lirangwe (49 km) is presently being assessed. Rehabilitation works are
scheduled to commence during 2016. Scope of works will include track rehabilitation,
renewal of track on bridges and drainage works.

In October 2015, rehabilitation progress on phase 1 was 39% with completion scheduled for
January 2016. The second phase was still being procured with works yet to commence.

21
 Rehabilitation of both spur lines can be completed without any physical or economic
displacement because works were confined to the existing line and accesses tracks.

For the operational phase, dependent on the traffic along the railway line and safety risk
assessments, safety zones might need to be created. In the event that clearing for safety
zones proves necessary, an appropriate Resettlement Action Plan will be developed, meeting
Lenders requirements.

For the Nkaya-Limbe spur line, preliminary assessment indicates that no displacement will be
required.

2.8 PROJECT SCHEDULE

In 2010, Environmental Impact Assessments (EIAs) were undertaken in both Mozambique

and Malawi in order to define the corridor route and minimize impacts. Based on the EIAs,
Environmental Licenses were granted in 2011 in both countries. An Environmental
Management Plan (EMP) was also prepared. A public consultation process has taken place in
relation to the EIAs. A grievance mechanism has also been established. The Concessionaires
have committed to applying good international industry practice, including compliance with
the environmental and social standards of the Lenders and with the Equator Principles as a
standard reference for Commercial Banks.

Construction of the Corridor started in 2011. The pre-operational start date was 2015. Full
operation is expected to be achieved in 2017.

As of November 2015, construction progress was as follows:

 Coal trains had started delivering coal to the Nacala-a-Velha Port;
 Construction was complete except for some work remaining on S6 and S7 where
overall construction progress was 94% and 85% complete respectively, including
facilities;
 Spur line rehabilitation was underway;
 The Nacala-a-Velha port was operational.

22
 Table 7. NCP implementation schedule

2.9 CONSIDERATION OF ALTERNATIVES

During the Feasibility Study phase, the following technical and environmental data was
considered for sites and route selection:
 areas with production activity and urban areas with high population density -
avoidance/minimization of physical and economic displacement;
 relief and topography – minimization of ‘cut and fill’ in areas of gentler slopes;
 natural, physical barriers – avoidance of rivers, mountains, marshes, flood-plains
and low-lying areas;
 geology – prevention of interference with fissures in tectonic plates;
 pedology – preference for ground with higher density or made up of rocks, in order
to reclaim rocks for ballast;
 areas of importance for water production – bypassing of dams, rivers, water-supply
points, springs and drainage systems;
 parks and reserves – avoidance of such areas;
 heritage/archaeological sites – avoidance of known areas of significance;
 use of existing infrastructure – use existing roads for maintenance.

A detailed route selection investigation was undertaken (prior to the EIA), where various
options were considered. Initially, 17 possible route options were identified. From these,
following evaluation, four potential routes were selected for detailed investigation (viz. AO1
to AO4). The final alignment selected was designated AO1. Its main advantages were
avoidance of a National Park in Malawi and minimization of resettlement impact.

23
 Figure 8. Alternative routes considered

Nkaya
Alternative Alignments Considered Junction

Lirangwe
Moatize

2.10 MEASURES TAKEN TO MINIMIZE LAND ACQUISITION AND

RESETTLEMENT

According to the Lenders´ standards, wherever feasible, involuntary resettlement should be

avoided or minimized. The following measures were adopted by the Nacala Corridor Project
to avoid physical relocation of people and reduce impacts on the livelihoods of affected
populations:
 Careful route selection, based on up-to-date aerial photography and GIS data during
the feasibility study phase and basic project design phase.
 Extensive fieldwork to adjust routing around existing houses, structures, public
infrastructure and productive land uses, during the detailed design phase.
 Adoption of the principle that, to the extent possible, all land utilized for temporary
use during the construction phase would be restored to its previous use upon
construction completion.
 Thorough consultation with local authorities and affected communities to avoid
lands or other areas of local significance.
 Adoption of a narrower construction right of way along the railway corridor than
allowed by law or concession agreements.
 Using the minimum required area for construction works and operational safety (for
example, adoption of 6 m safety zones in in densely populated urban areas) to
reduce physical and economic displacement.
 Careful siting of access roads to place them wherever possible on state or municipal
land rather than on privately owned land or arable land.

24
  Use of existing roads as construction access, wherever feasible, to limit the length of
temporary access roads and taking the opportunity to improve the community
paths.

3 POLICY AND LEGAL FRAMEWORK

3.1 GENERAL

The Concessionaires’ obligations concerning land acquisition and involuntary resettlement are
defined by the following:
 National legislation and regulations prevailing in Mozambique and Malawi;
 Concession Agreements;
 Government approved Compensation and Resettlement Plans; and,
 Lenders Environmental and Social Standards.

The Project Concession Agreement and Project approvals in Mozambique preceded

Mozambique’s introduction of a “Regulation on the Process of Resettlement resulting from
economic activities” (Decree No. 31/2012 of 8 August). While not obliged to do so, the
Concessionaires took into consideration the standards prescribed in the new Decree when
designing household compensation packages and replacement houses.

3.2 MOZAMBICAN LEGISLATION

3.2.1 KEY LAWS AND REGULATIONS

In Mozambique, the key legislative instruments governing Project acquisition of rights to land and
resettlement are as follows:
 Law 19/97, October 1 – Land law, defines the terms of use of land and Decree
66/98, December 8, is the land law regulations.
 Decree 24/2012, July 13 – Approved the Rail Concession as well as the special
license for use of land.
 Decree 25/2012, July 13 – Approved the Port Concession as well as the special
license for use of land.
 Decree 31/2012, August 8 – Approved the Resettlement regulation due to economic
activities.
 Law 19/2007, July 18 – Spatial planning law that regulates the relation between the
various levels of the public administration, the relationship of public administration
with public entities and private sector, representatives of the various economic,
social and cultural interests including local communities.
 Decree 23/2008, July 1 – Is the Spatial Planning Law Regulations.

25
 3.2.2 RIGHTS OF LANDHOLDERS PRIOR TO DISPLACEMENT

The Project impacted both occupants with DUATs (titles to use and benefit from the land –
the highest form of land right in Mozambique), as well as people occupying the land
following customary rules.

3.2.3 PROJECT RIGHTS TO LAND AND OBLIGATIONS REGARDING

COMPENSATION AND RESETTLEMENT

 Decree 24/2012, July 13 - Approved the Rail Concession as well as the special license
for use of land
 Decree 25/2012, July 13 - Approved the Port Concession as well as the special
license for use of land
The Concession Contracts provide clear rules on resettlement including the requirement for
establishment of an entity with a mixed composition (public and private) to deal with
resettlement-related issues.

3.2.4 POWER OF EXPROPRIATION

In Mozambique, both Project concessions (Port and Rail) are considered of ‘public interest’.
As such, the Project had recourse to expropriation of land and assets, as long as ‘fair’
compensation was paid by the Concessionaire for the assets being expropriated. The Spatial
Planning Law has similar provisions.

The Project completed land acquisition in Mozambique without recourse to expropriation.

3.2.5 DISPUTE RESOLUTION

The settlement of complaints and grievances resulting from resettlement activities followed
a negotiation process until the achievement of a satisfactory solution for both parties or
referral to the court.

To date in Mozambique, no case has been submitted for arbitration.

3.3 MALAWIAN LEGISLATION

3.3.1 KEY LAWS AND REGULATIONS

The key laws and regulations regarding land use rights, compensations and resettlement of
Malawi include the following:
 Land Act (cap. 57:01 of the Laws of Malawi)
 Lands Acquisition Act (Cap.58:04 of the Laws of Malawi)
 Malawi National Land Policy, 17th January, 2002.
 Railways Act (cap 69:03 of the Laws of Malawi) Land Act (cap. 57:01 of the Laws of
Malawi)

26
 The Concession was granted by the Minister of Transport and Public Infrastructure acting
under the Railways Act, and subject to the approval of the Minister responsible for Lands.
The Land Rights granted to the Concessionaire are granted under the Land Act.

3.3.2 RIGHTS OF LANDHOLDERS PRIOR TO DISPLACEMENT

The Landholders in the Project Affected Areas fell into three categories: those who held
freehold rights; those who held leasehold rights; and, those with customary rights. The
majority of the Project affected persons had customary rights and used their affected land
for dwellings or subsistence farming.

3.3.3 PROJECT RIGHTS TO LAND AND OBLIGATIONS REGARDING

COMPENSATION AND RESETTLEMENT

For this Concession, the Malawi Government has granted the Concessionaire the land rights
required for the implementation of the Project. The Concession Agreement bound (i) the
Concessionaire to implement a Resettlement and Compensation Plan approved by the
Government; and, (ii) the Government to secure vacant land for the exclusive use of each
Project Site. The Concessionaire was responsible for the compensation. to be paid to the
affected households.

The Government was responsible for negotiating with land owners, traditional authorities
and occupiers of lands to secure the Land Rights required for the implementation of the
Project.

The Project affected persons were compensated by the Government. The Concessionaire
financed the compensation by transferring the required funds to the Government who was
responsible for payment of the actual compensation to the affected households. This process
was completed in 2014.

3.3.4 POWER OF EXPROPRIATION

Although the Project met the criteria for in the ‘public interest’ in Malawi, the Government
acquired the land with the consent of the affected people through payment of agreed
compensation. Despite the Government having powers under the Lands Acquisition Act to
enforce land expropriation in the public interest, it has not been necessary for the purposes
of the Project.

3.4 CONCESSION AGREEMENTS

Key provisions of the Mozambican Concession Agreements for the Railway and for the Port
pertaining to land acquisition, resettlement and compensation are as follows:
 Public Utilities Declaration and Land Use.
The activities authorized under the Railway Concession Agreement were considered of
‘public interest, utility and need’. Thus, the Project has recourse to expropriation of

27
 assets and properties as a last resort. Even where expropriation is used, the Concession
Contracts oblige the Concessionaire to pay ‘fair compensation’.
 Resettlement, social development programs and support to the communities:
The Concession Contracts provide clear rules on resettlement including the
requirement for the establishment of an entity with a mixed public and private sector
composition to deal with issues related to resettlement and social development. The
Concessionaire must also develop social programs.
On the Malawian Concession Agreement for the Railway, the key provisions related to land
acquisition, resettlement, compensation and related responsibilities are as follows:
 Grant of Land Rights to the Concessionaire and Securing Land Rights in respect of
Project sites.
Through the Concession Agreement, the Malawi Government granted the
Concessionaire the Land Rights required for the implementation of the Project. The
Concession Agreement bound the Concessionaire to implementing a ‘Resettlement
and Compensation Plan’ approved by the Government.
 Delivery of the Project Sites Constituting the Corridor.
The Concession Agreement bound the Government to secure vacant and exclusive
possession and grant exclusive use of each Project Site to the Concessionaire. The
Concessionaire was responsible for the compensation costs.
 The Government was responsible for negotiating with land owners, customary
authorities and occupiers of lands to secure the Land Rights required for the
implementation of the Project.
 The Concessionaire has no freehold interest in the Land comprising Project Sites.

3.5 APPROVED COMPENSATION AND RESETTLEMENT PLANS

Table 8 lists all the resettlement and compensation plans prepared by the Concessionaires
and approved by the Governments of Mozambique and Malawi prior to resettlement
implementation. The plans, “Plano Executivo de Compensação” – PEC (Executive
Compensation Plan) and “Plano de Desocupação para Segurança Operacional”- PDSO
(Displacement Plan for Operational Safety) were approved between 2011 and 2015. They
variously cover rail sections or administrative districts.

Table 8. NCP resettlement plans

REFERENCE
SECTION TERRITORY CONCESSIONAIRE YEAR
DOCUMENT
2 Moatize CLN PEC 2013
3 Malawi (Greenfield) VLL RAP 2011
5 Malawi (Brownfield) CEAR RAP 2015
Mecanhelas CDN PDSO 2013
Cuamba CDN PDSO 2013
6 and 7 Malema CDN PDSO 2013
Ribáuè CDN PDSO 2013
Mecuburi CDN PDSO 2013

28
 REFERENCE
SECTION TERRITORY CONCESSIONAIRE YEAR
DOCUMENT
District of Nampula CDN PDSO 2013
City of Nampula CDN PDSO 2013
Meconta CDN PDSO 2013
Monapo CDN PDSO 2013
Mossuril CDN PDSO 2013
Nacala-a-Velha CLN PEC 2013
8 and Port
Mossuril CLN PEC 2013

3.6 LENDER STANDARDS

Table 9. Summary of Lenders standards

Summary of Lender standards

1
Theme/issue
Wherever feasible, alternative Project designs to avoid or minimize physical and/or
economic displacement while balancing environmental, social and financial costs and
1. Project design
benefits, will be considered by the Project (IFC PS5 2012, paragraph 2; AfDB IRP 2003,
paragraph 3.2).
In the event that involuntary resettlement is unavoidable, the Project will develop a
2. Resettlement RAP that covers compensation of displaced people at full replacement costs for loss
Action Plan (RAP) of lands and other assets. (IFC PS5 2012, paragraph 9; AfDB IRP 2003, paragraph 3.3).
and Livelihood The RAP will be designed to mitigate the negative impacts of displacement, identify
Restoration development opportunities, establish the entitlements of all categories of affected
Program (LRP) persons (including any host communities), and include a resettlement budget and
schedule, etc. (IFC PS5 2012, paragraph 19; AfDB IRP 2003, paragraph 3.3).
A census and asset inventory should be carried out in order to collect appropriate
socio-economic baseline data, to identify the persons who will be displaced by the
3. Census and
Project, determine who is eligible for compensation and/or assistance, and prevent
Asset Inventory
ineligible persons, such as opportunistic settlers, from claiming Project benefits. (IFC
PS5 2012, paragraph 12 and 17; AfDB IRP 2003, paragraph 6).
The Project shall pay particular attention to the needs of any vulnerable groups
amongst those being displaced – especially those beneath the poverty line, the
4. Vulnerable landless, the elderly, women and children, indigenous peoples, ethnic minorities, or
Groups other displaced persons who may not be adequately protected through host country
land / resettlement / compensation legislation. (IFC PS5 2012, paragraph 19; AfDB IRP
2003, paragraph 3.2).
The Project should ensure that resettlement activities are implemented with
5. Consultation appropriate disclosure of information, stakeholder consultation, and the informed
and Participation participation of those people affected by the Project. (IFC PS5 2012, paragraph 10;
AfDB IRP 2003, paragraph 3.3 and 4).

1 IFC PS 5 (2012 version), AfDB Involuntary Resettlement Policy (IRP/2003) & AfDB´ s Integrated Safeguards System – Operational
Safeguard 2 Involuntary Resettlement (ISS OS2/2013)

29
 Summary of Lender standards
1
Theme/issue
The rate of compensation for lost assets should be calculated at full replacement cost
6. Compensation – i.e. the current market value of the assets plus transaction costs at the time of
– Full expropriation. In applying this method of valuation, depreciation of structures and
Replacement assets should not be taken into account. (IFC PS5 2012, paragraph 9; AfDB IRP 2003,
Cost, In-kind paragraph 8). Compensation in-kind should be offered in lieu of cash compensation
Provisions and when feasible, and particularly for poor and affected persons. (IFC PS5 2012,
Security of paragraph 21; AfDB IRP 2003, paragraph 3.4.2). Security of tenure should be provided
Tenure to all those persons displaced by the Project (IFC PS5 2012, paragraph 22; AfDB IRP
2003, paragraph 11).
The Project shall develop a procedure for establishing the criteria by which displaced
persons will be deemed eligible for compensation for their lost assets as well as
income and other resettlement assistance including development benefits. (i) who
7. Eligibility and have formal legal rights to the land or assets they occupy or use; (ii) who do not have
Entitlements formal legal rights to land or assets, but have a claim to land that is recognized or
recognizable under national law; or (iii) who have no recognizable legal right or claim
to the land or assets they occupy or use (IFC PS5 2012, paragraph 17,21,22,27; AfDB
IRP 2003, Section 4.1).
In the absence of any host Government procedures, a cut-off date for eligibility
should be established. Information regarding the cut-off date should be clearly
documented and disseminated throughout the Project area. The Project is not
8. Cut-off Date required to compensate or assist those who encroach upon the Project area after the
cut-off date for eligibility, provided the cut-off date has been clearly established and
communicated to the public (IFC PS5 2012, paragraph 12; AfDB IRP 2003, Section
3.4.3, 4.1.4).
The Project should ensure that displacement or restriction of access does not occur
before the necessary measures for resettlement are in place. These measures include
the provision of compensation and of other assistance required for relocation, and
the preparation and provision of resettlement sites with adequate facilities, where
9. Timing
required. The removal of land and related assets may only take place following
payment of compensation and, where applicable, resettlement sites and relocation
allowances have been provided to displaced persons (IFC PS5 2012, paragraph 2;
AfDB IRP 2003, Section 3.3).
10. Resettlement The Project shall provide appropriate resettlement assistance and transitional
Assistance and support based upon reasonable estimates of the time required to restore income
Transition earning capacity, productivity levels and associated livelihoods and standards of
Allowances living (IFC PS5 2012, paragraph 29; AfDB IRP 2003, Section 4.1.1).
Displaced persons should receive assistance for improving their livelihoods and living
11. Livelihood standards, or at least to restore them, in real terms, to pre-displacement levels or to
Restoration levels prevailing prior to the beginning of Project implementation, whichever is the
higher (IFC PS5 2012, paragraph 12; AfDB IRP 2003, Section 4.1.1).
Appropriate and accessible grievance mechanisms should be established. Some
displaced persons will have complaints about aspects of their change in
12. Grievance
circumstances. Prior to the initiation of displacement, the Project should ensure that
Redressing
its procedures for recording and processing grievances is in place and has been
Mechanism
communicated to all potentially affected persons (IFC PS5 2012, paragraph 11; AfDB
IRP 2003, Section 4.1.6).

30
 Summary of Lender standards
1
Theme/issue

The Project shall be responsible for adequate monitoring and evaluation of the
activities set forth in the RAP. Upon completion of the activities set out in the RAP,
the Project is required to undertake an assessment (audit) to determine whether the
13. Monitoring objectives of theRAP have been achieved. This assessment should take account of
and Evaluation the baseline conditions and the results of the RAP/ LRP. If the assessment reveals
the objectives of the RAP have not been realized, the Project should propose
suitable and sufficient follow-up measures (IFC PS5 2012, paragraph 14; AfDB IRP
2003, Section 4.1.11).
For persons whose livelihoods are natural resource-based and where project-related
restrictions on access to land and/or natural resources apply, implementation of
14. Access to measures will be made to either allow continued access to affected resources or
natural/common provide access to alternative resources with equivalent livelihood-earning potential
resources and and accessibility. Where appropriate, benefits and compensation associated with
public services natural resource usage may be collective in nature rather than directly oriented
towards individuals or households (IFC PS5 2012, paragraph 28; AfDB IRP 2003,
Section 2.1.8).
The project will provide opportunities to displaced communities and persons to
15. Sharing
derive appropriate development benefits (IFC PS5 2012, paragraph 9; AfDB IRP 2003,
project benefits
Section 4.1.5).
An institutional framework delineating the arrangements and the tasks needs to be
16. Institutional established for the implementation of the RAP. When necessary, the project owner
Roles and should consider providing support to the local institutional structures necessary to
Responsibilities implement resettlement. (IFC PS5 Guiding Notes 2012, GN39; AfDB IRP 2003, Section
4.1.8).

3.7 PROJECT MEASURES TO ADDRESS LENDER STANDARDS

Table 10. NCP actions taken/to be taken in line with Lenders standards

Further actions to be
Theme Project actions taken to date
taken
During the Feasibility Study phase, a number of
route and project design alternatives were assessed
in order to minimize the impacts (see Sect. 6.9).
A safety zone was adopted for construction that
1. Project design No further action applicable.
avoided the need to clear the rail right of way. A
reduced-width safety zone (6 m either side of the
rail) was used in dense urban areas such as
Nampula City to avoid further resettlement impact.
The Project is currently
Compensation Sub-programs were included as part
assessing effectiveness of the
of each EIA/EMP. Specific Operational Plans (PEC,
LRP (through a rapid
2. RAP and PDSO or SRAP) were developed and submitted for
assessment) and any
Livelihood district level approval.
supplemental actions arising
Restoration The RSR was prepared to in order to describe the
from the assessment will be
Program ongoing resettlement process and program
implemented to meet lender
including the livelihood restoration activities and
requirements with respect to
projects.
the LRP.
Socio-economic census and asset inventory were
3. Census and
completed. Specific baseline surveys were No further action applicable.
Asset Inventory
undertaken for the Livelihood Restoration Projects.

31
 Further actions to be
Theme Project actions taken to date
taken
To implement the specific
The Project defined criteria to identify vulnerable
operational procedure (PRO-
people based on socio-economic surveys conducted
CCCV-0020). The rapid
4. Vulnerable for the PAP census. An operational procedure was
assessment will identify any
Groups prepared to identify, monitor and deliver particular
supplemental actions required
assistance to vulnerable people to ensure that they
and will be specifically tailored
will be better-off after the Project.
for vulnerable groups.
Consultation and participation of affected and host
Continuous implementation of
communities, all levels of government and civil
5. Consultation the Stakeholder Engagement
society were ongoing throughout resettlement
and Participation Plan and documentation of the
planning and implementation. All consultation has
engagement activities.
been documented and shared with those involved.
The Project has been
developing actions to assist
people in restoring their
Malawi: Cash compensations paid by the livelihoods. The PAP´s level of
Government to the identified asset owners for restoration has been the focus
building, agricultural land, replacement land for of the monitoring and
6. Compensation business premises and replacement sapling. evaluation actions. The Project
at – Full Mozambique: - New residential land and is coordinating with the
Replacement Cost, replacement house; cash compensation for ancillary Government to issue
In-kind Provisions structures; assistance with finding replacement residential land title (DUAT) for
and Security of agricultural land via the Government or the Project; each household.
Tenure toolkit and start-up materials including seeds; 1- Planned future monitoring
year follow-up supervision by agricultural agent and requirements will identify any
refresher training; and, assistance in forming supplemental actions required
associations. A completion audit will be
conducted once the
resettlement program is
completed.
The surveys identified all losses incurred by PAP,
regardless of their rights to land or assets. Within
the context of specific compensation plans (PEC,
7. Eligibility and
PDSO or SRAP), the eligibility criteria and proposed No further action applicable.
Entitlements
entitlements were consulted with PAP
representatives and other stakeholders for
finalization.
The cut-off date for entitlements and eligibility was
the date when specific compensation plans were
approved by the district or municipal level
governments. In the brownfield sections (S5, S6&7)
the ROW was established before the Concession
Agreement and, according to the law, there is no
customary right and land titles cannot be issued.
8. Cut-off Date Regardless of their legal ownership status and/or No further action applicable.
time of living in the Project area, all PAP identified
during the census were considered eligible for the
compensation. In order to avoid opportunistic
claims and to control encroachment, the Project
provided aerial photography and a GIS database.
During the awareness campaign this subject was
included.
9. Timing of Because of the length of the Project which runs Monitoring of the households
resettlement across remote areas and communities sparsely during the transitional phase

32
 Further actions to be
Theme Project actions taken to date
taken
distributed as well as the requirement of sequential providing assistance where
implementation over an extended period, there was needed and post relocation as
a need for sequencing the implementation of the part of the Project’s
compensation and resettlement to ensure that monitoring program.
displacement does not take place until required. As
such, the compensation payment and resettlement
started in Sept/2013, massively scaled up in
Sept/2014 to meet demands from construction
schedule and to be finished in February
2017.
Households were mobilized for asset inventory for
compensation purposes after consultation on the
on the results of the inventory and the proposed
compensation amounts was undertaken. Following
agreements signed by the households and
witnessed by their community leaders and
government representatives, the payment of
compensation for affected assets took place before
displacement, generally within 30 days of signing.
The households were then given 10 days to vacate
the area after the payment.
However, to allow for the timely implementation of
the Project and guarantee the rights and interests
of the impacted households, the Government
approved the temporary resettlement program,
whereby the households would remain in
transitional accommodation for a period generally
up to 12 months until the replacement house has
been delivered. While in transitional
accommodation, households were engaged for site
selection, house typology selection, etc.

Mozambique: A one-time cash allowance of

4.000Mts was provided for incurred transportation,
transition and disturbance costs to all households.
A monthly housing allowance (of MZN3.500 in
Nampula City and MZN2.000 elsewhere) is paid
monthly to each household to provide them with
temporary housing until their permanent housing is
secured.
10. Resettlement Malawi: Cash cost of renting oxcarts for
Assistance and displacement or truck transport for household
No further action applicable.
Transition effects if desired in place of oxcart. Inclusion of 20%
Allowances bonus to release the buildings 15 days after the
payment of compensation. The households were
allowed to get their building materials (roofs, bricks,
doors and others) before demolition.
The valuation formula for the cash compensation
related to economic displacement included the
timing to re-establish the previous productivity
levels and associated livelihoods and standards of
living. Additionally, LRPs were also implemented.
11. Livelihood The Project identified adequate livelihood Implementation of the LR
Restoration restoration measures taking into consideration the Program will continue as per

33
 Further actions to be
Theme Project actions taken to date
taken
specific context of each region/section, such as the schedule that has been
geography, local culture and socio-economic defined in this document.
aspects. Measures were defined in consultation Monitoring of the households
with PAPs. The approach was to coordinate and during the transitional phase,
integrate mitigation measures with community implementation of the
development initiatives, aiming to reach the programs and post-
restoration levels. LR programs included income compensation.
generation alternatives and new agriculture
technologies to improve productivity.
The Grievance Mechanism for the Project was
designed to comprise different channels:
community and traditional leaders, CR team
members, social monitors, contractors and
partners. The Project established a Call Center,
including a call free number, in order to offer
additional channel to address PAP´s complains and
12. Grievance Continuous implementation of
concerns. The Call Center was tested in a pilot
Mechanism the Grievance Mechanisms.
phase in 2015 for scaling up for the operational
phase in 2016. In order to support the grievance
management, as IT based system called
Stakeholders, Demands and Issues (SDI) was
developed. The grievance assessment and redress
flow includes senior managers of the Project and
operation.
A monitoring system forms part of the CCCV HSEC
Full implementation of the
system. This RSR includes the description of the
resettlement monitoring and
resettlement monitoring and reporting activities
evaluation activities, including
13. Monitoring (see Sect. 12), including arrangements for internal
Key Performance Indicators
and Evaluation monitoring, monitoring by an independent
(KPIs) related to outcomes and
specialist, and a completion audit which will be
impacts, to assess the level of
undertaken once the resettlement program is
restoration of PAP´s livelihood.
complete.
14. Access to
natural/common The EMP and LRP included mitigatory measures to Continue the implementation
resources and address loss of access to common resources. of EMP and LRP.
public services
Main benefits: (i) Project provides much needed
connectivity, for people and cargo, to the under-
developed and isolated northern regions of
Keep the implementation of
15. Sharing project Mozambique, as well as to land-locked Malawi; and,
the LRP and Community
benefits (ii) other activities are implemented as part of the
Development Program.
Community Development Program and Social
Investments, such as professional skills courses and
capacity building for local employment for the PAP.
The organizational chart was strengthening in 2015,
with the appointment of a manager to provide
strategic direction as well as management of the
Conclude the integration of
16. Institutional resettlement schedule and budget. In November
the project resettlement
Roles and 2015, anew institutional arrangement and
team/officer with the
Responsibilities transition strategy was defined in order to integrate
operations social team.
project and operations social teams. Roles and
responsibilities were also reviewed to reflect this
integration.

34
4 SOCIO-ECONOMIC OVERVIEW OF AFFECTED
POPULATION

4.1 INTRODUCTION

Project affected households fall into two broad categories, rural and urban. The majority
(more than 70%), are rural households, characterized by widespread poverty, low levels of
education, poor access to basic services, houses made of traditional materials (mud, rock,
sticks and grass) and livelihoods highly dependent on subsistence farming. PAPs in Nampula
City and semi-urban area of Cuamba Town live in clay brick structures with iron sheet
roofing. Urban dwellers also enjoy relatively better access to services, and more diversified
livelihoods through formal employment and informal businesses.

This section draws upon the data collected through the Project census, asset survey, socio-
economic survey and focus group discussions to provide a quick overview of PAP´s socio-
economic characteristics

4.2 CENSUS, SURVEYS AND DATA GATHERING

In both Malawi and Mozambique, baseline socio-economic information about PAPs and
assessment of impacts was undertaken by the consulting company, Diagonal. Most data
collection for the corridor took place during 2012, with the exception of Section 6 and 7
which took place during 2013 and 2014.

Multiple data gathering techniques were used including a census, an inventory of affected
land, trees, crops and assets, household socio-economic surveys, key informant interviews
and focus group discussions. This information was used to (i) describe pre-Project socio-
economic conditions; (ii) determine compensation entitlements and eligibility; (iii) develop
replacement housing strategies; (iv) assist in the definition of livelihood restoration and
mitigation measures; and, (v) prepare resettlement and compensation plans.

4.3 OVERVIEW OF PROJECT AFFECTED POPULATION

4.3.1 LOCAL ADMINISTRATION

The local government administration in Mozambique consists of both formal and traditional
authorities. Below province level, districts are headed by District Administrators who
supervise a number of Chiefs of Administrative Posts. Administrative Posts are further sub-
divided into localities, headed by a Chief of Locality. Below the locality level, officially there
are no formal state institutions, but power is exercised by community leaders, which include
both traditional leaders, selected according to traditional rules, and elected leaders. Figure 9
below shows the local government administrative structure in Mozambique.

35
Figure 9. Local government organization in Mozambique

Malawi is divided into regions and each region into districts. Each district is further divided
into villages which are ruled by traditional authorities. The highest level of traditional
authority is the Paramount Chief, known as the Traditional Authority (TA). Within the TA´s
structure, a Group Village Headman, selected by the TA, is responsible for five or more
villages. Each village is then administrated by the Village Headman

Figure 10 shows the local administrative structure of Malawi, including the hierarchy of TAs,
GVH and Village Headmen.

Figure 10. Local government organization in Malawi

REGIONAL COUNCILIORS

DISTRICT COMMISSIONER

TRADICIONAL AUTHORITY

GROUP VILLAGE
HEADMAN
VILLAGE HEADMAN

36
 In both Mozambique and Malawi, traditional leadership remains a strong and respected
parallel administrative structure. Important from a Project perspective is the legitimacy that
traditional leaders retain within the community for allocating land, as advisers and “helpers”,
in perpetuating traditional ceremonies, beliefs, traditions and customs, and maintaining
social cohesion at community level. Engagements with PAPs are mostly managed through the
community leaders. Community leaders also act as witnesses during socio-economic surveys
and payment of compensation.

4.3.2 HOUSEHOLD CHARACTERISTICS

Table 11 below summarizes salient socio-economic characteristics of the Project affected

households and highlights key regional variations.

Table 11. Key household characteristics per Project section

Section Key household characteristics

The majority of members of affected households are young with an average age of 22
years. Most households are headed by men (69%) and have an average size of 5.
All households are from ethno-linguistic group Nhúnguè and a majority of households
(69%) practice Christianity;
Less than 50% of the households are literate. The highest education level achieved by
the household heads is typically primary education. School attendance by children
under the age of 15 at the time of the census (2012) was 56%. As in most rural areas,
levels of school attendance and educational attainment are much lower for females;
S2
The affected population’s health profile is characterized by high incidence of malaria
(41%) and respiratory diseases/coughing (24%);
Most of the affected houses are dispersed, of rectangular shape and have walls made
of stick and daub, floors of mud and earth, and a thatch roof;
Affected households have poor access to services and utilities. The majority of
households’ access water from hand-dug wells and rivers or streams (69%). Formal
sanitation is uncommon (households use bushes and fields) and there is no
electricity. Households use firewood for cooking and kerosene for lighting.
PAP in S3 and S5 share similar socio-economic traits which are characteristic of rural
households in Malawi (and Mozambique);
Households are predominantly young (with more than 50% of the household
members below the age of 18), male-headed (82% in S3 and 88% in S5) and have an
average size of 5;
More than 90% of impacted households are from ethno-linguistic group Chichewa
and the majority of households practice Christianity;
Literacy in the affected population is low (with 54% of households heads having
completed grade 8). Similar to most rural areas, the levels of school attendance and
S3 and S5
educational attainment are much lower for females;
Most of the affected settlements are dispersed, with houses generally built in a
rectangular shape with traditional materials;
Access to services and utilities is very poor and there is lack of sanitation, although a
few households use pit latrines with manure deposited directly in the soil in shallow
holes. Access to water is also problematic, with the majority of households accessing
water from collective boreholes. Although some villages are connected to the grid,
most households have no access to electricity because they cannot afford it.
Households use firewood for cooking and kerosene for lighting.
Households are predominantly young (with more than 55% of the household
S6 and7 members below the age of 15), male-headed (85%) and have an average size of 5. In
the urban area of Nampula City, the average number of household members is

37
 slightly higher (6 members) due to the higher prevalence of extended families taking
advantage of the greater access to social services, goods and employment
opportunities afforded by city living;
The majority of households (95%) are from the ethno-linguistic group
Emakua/Lomwe. In Nampula City, 26% of the PAPs speak Portuguese. 59% of the
households are Christian, but christianity becomes less common towards the coast;
The illiteracy levels in the affected population are relatively low (29% of PAP are
illiterate). The districts of Mecanhelas and Monapo have the highest illiteracy rates
(42% and 40% respectively). 25% of the household heads have primary education
only. Only 1% complete tertiary education, with this group mainly in Nampula City;
The affected population’s health profile is characterized by high incidence of malaria
(49%), followed by diarrhea (23%) and coughing (14%);
Most of the affected houses are dispersed, of rectangular shape and have walls made
of sticks and daub, floors of mud and earth, and a thatch roof. Houses with walls
made of burned clay bricks and a thatch roof are found mainly in districts of Niassa
province. In the urban centers mainly Nampula City, there are few houses
constructed from burned clay bricks and covered with corrugated iron sheet.
Affected households have poor access to services and utilities. Secondary education
is more accessible in the district headquarters or in the urban centers. The majority of
households (51%) accesses water from boreholes or collective pumps. 81% of the
households use pit latrines as a form of sanitary infrastructure. Access to electricity is
high in Nampula City (51%) with households using firewood for cooking purposes and
petrol for lighting in the rest of the section.
Households are predominantly young (below the age of 18), male-headed (83%) and
have an average size of 7 persons, the highest in the Nacala corridor.
Almost all impacted households are from ethno-linguistic group, Emakua, and the
majority (70%) practice the Muslim faith;
The illiteracy level in the affected population is relatively low (39% of PAP are
illiterate), with the highest education level achieved by the household heads typically
being primary education. School attendance by children under the age of 15 at the
time of the census was very high. As in most rural areas of Mozambique, levels of
school attendance and levels of education are much lower for females than males;
S8/Port The affected population’s health profile is characterized by high incidence of malaria
(49%), diarrhea (23%) and coughing (14%);
Houses in Nacala-a-Velha are generally built in a rectangular shape with materials
available from the surrounding environment (mud, rock, shell, palm leaves, etc.).
They follow the design that is commonly found in coastal areas with a hip roof. With
the increased availability of cash, corrugated iron for roofing is becoming more
common;
The majority of households (78%) access water from boreholes or collective pumps.
Only 21% of the households use pit latrines. Access to electricity is very low with
households using firewood for cooking purposes and petrol for lighting.

4.3.3 HOUSEHOLD LANDHOLDING AND USE

In Mozambique, most households own multiple agricultural plots (machambas), except in S2

where most households (69%)have only one machamba. It is normal for some of the plots
belonging to a household to be fallow in order to recover their fertility after being farmed for
a number of years. Average sizes of machambas in the Project area tend to be fairly small –
up to one hectare. A small number of households hold farmland up to 3 hectares.

In Malawi, in general, machambas are inherited or cultivated by the female family member
and it is through her that access to land for farming is secured. As many households affected
by the Project (Chichewa and Emakua) are matrilineal, men marry and move to their wives’

38
families where they secure use and ownership rights for machambas. The other source of
customary acquisition of plots is through allocation by community leaders, often with a
symbolic monetary payment. Few households borrow land, a practice that is most common
in Neno and Balaka districts in Malawi. When a household borrows land there is typically no
pre-agreed price or share of the crop to be paid, but it is expected that something will be
provided to the landholder as a show of gratitude.

For many households, farming activities take place at some distance from their homes. The
machambas are often more than 30 minutes’ walk from houses. In addition to crops, some
households also have fruit trees which belong to an individual household, rather than being
communally owned. The most common fruit trees are banana followed by cashew (both very
common in S7) and mangos.

4.3.4 HOUSEHOLD LIVELIHOODS, INCOME AND EXPENDITURE

Livelihood characteristics of households

The affected population is largely rural with few urban settlements. Livelihoods in the rural
areas are characterized by a predominantly subsistence based economy with each family
producing mainly for self-consumption. Household activities tend to center around
agriculture, livestock keeping and fisheries, with small numbers involved in local trade.

Most households use machambas to grow crops and fruit trees. The type of crops and fruit
trees depends on the four broad geographic zones covered by the Nacala corridor: semi-arid,
Tete (S2); hilly, Malawi (S3/5); arable soils, Niassa and Nampula (S6/7 and 8); and, the coastal
area of Nacala-a-Velha (the Port). Farming practices are characterized by the use of
traditional methods of oxen plough and hoe cultivation. The major food crops grown include
maize, sorghum, and root crops such as sweet potato, cassava and peanuts. Raising livestock
is another activity undertaken to supplement agriculture although it plays a reduced role in
livelihoods. Almost all households keep cattle and poultry which, in situations of necessity,
some households may sell in order to meet their needs. Fisheries livelihoods, including
intertidal collection, are more common amongst the coastal residents of Nacala-a-Velha.

Economic activity outside of farming and fisheries is limited along the corridor. The main
sources of income are related to trading of products from agriculture and fisheries or use of
natural resources accessible in farming areas such as selling of firewood (46%), casual
employment on other people´s farms (46%), and charcoal (39%). Intertidal collection of crab
mollusks and shellfish provides an important alternative subsistence income to households
of Nacala-a-Velha especially for women and children.

Since almost all PAPs are subsistence farmers who make their living through traditional
method of farming, it is difficult to determine their income. Households use the bulk of their
production for household consumption. This means that there is very little produce
marketed for cash. Based on interviews conducted with a sample of the affected population,
the average monthly cash income for households was less than USD40 at the time of the
Project census. From the survey, it can be inferred that income levels for the Project area are
very low, indicating the possibility of correspondingly high levels of poverty.

In semi-urban and urban areas such as Cuamba Town and Nampula City, the displaced
households are substantially more dependent on formal employment and informal trade
activities. Informal trade is operated through a system of stalls that sell basic goods to local

39
 community members as well as travelers passing through the area. For a considerable
number of households, this informal activity is an alternative for overcoming the lack of
formal employment, and a way to increase the family income.

Expenditure patterns

Food, personal items and health are the most common expenses incurred by households,
followed by clothing and transport fees. The reason for high expenditure on food reflects the
weak diversification of products produced by the households themselves. A high proportion
of household expenditure on food is also an indication of poverty. The low expenditure on
other items indicates household economies are predominantly subsistence in nature with
limited cash for purchase of goods.

4.3.5 BUSINESSES AND SMALL ENTERPRISES

There is no major business enterprise affected by the Nacala Corridor Project. Most of the
corridor is rural and dependent on agriculture. It is only in the semi-urban and urban centers
of Ribáuè and Nampula City respectively that small scale businesses enterprises are located.
These form a link in the marketing chain, between the formal traders and small producers.
These business enterprises are operated through a system of stalls concentrated in the
following markets of Nampula City: Descida, Waresta and Gorongoza. The market in Cuamba
is dominated mainly by agriculture produce which is sold off the ground rather than from
stalls or commercial shelters.

Whether owners, operators or tenants, the Project affected stall holders are relatively poor,
with an average monthly income of less than 5,000 Meticais (about USD 80). The average size
of a business structure is estimated to be 4m2. The majority of stalls are highly mobile, made
of sticks with thatch roof and function as a business shelter, selling basic manufactured
goods and used clothes. Stalls have proliferated since the Project started, many with the
expectation that the owners will receive compensation. Project compensation paid for these
structures is relatively high.

4.4 VULNERABLE HOUSEHOLDS

The implementation of projects like the Nacala Corridor Project can cause hardship and place
undue pressures on vulnerable groups. The Project has undertaken a thorough assessment to
identify those that are vulnerable and whom may need particular assistance during the
resettlement process. The Project used the following 04 indicators for screening and
identifying vulnerable individuals and households:
 (a) Female-headed households without assets (or in matrilineal areas, such as where
the Chichewa and Emakua prevail, the potentially vulnerable group was ‘male-
headed households without assets’)
 (b) Child-headed households;
 (c) Households headed by elderly persons above the age of 60 without their own
assets; and,
 (d) Households with chronically sick or persons with disability.

40
 A summary of vulnerable households in each section of the Nacala Corridor is presented in
Table 12. In total, some 685 households were categorized as vulnerable. Some households
were observed to be vulnerable against more than one indicator.

Table 12. Summary of Project Affected Vulnerable Households by NCP Section

Number of Number of households per Section

vulnerability
indicators per S2 S3 S5 S6 S7 S8/ Port Total
households
Households with 1
indicator of 0 59 11 60 393 19 542
vulnerability
Households with 2
indicators of 2 17 1 14 91 9 134
vulnerability
Households with 3
0 4 1 0 3 1 9
indicators
Total 2 80 13 74 487 29 685
Note: In S5 only Machinga district is included. Balaka district is counted in S3. See text above for
‘indicators’ used in the vulnerability assessment.

Vulnerable households require special support during the implementation of the RAP
depending on the level of impact they experience and their vulnerability. Vulnerable
households have been prioritized for resettlement assistance such as receiving replacement
houses, support with transport and provision of moving allowances. Vulnerable households
have also been given priority for receiving replacement land as close as possible to their
dwelling or village.

4.5 CULTURAL PROPERTY

The Project resulted in the loss or disturbance of some 906 family graveyards, cemeteries
and sacred sites. An inventory of graves, cemeteries and sacred sites was carried out. Results
are summarized in the table below. Further details on impacts and mitigations can be found
in Section 5.7.

Table 13. Number of affected graves, cemeteries and sacred sites per NCP Section

Sites by Section
Type of Loss
S2 S3 S5 S6 S7 S8/ Port Total
Individual grave 213 1 0 2 99 387 702
Cemeteries 6 3 0 2 9 55 75
Sacred sites 2 1 0 0 105 21 129
Total 221 5 0 4 213 463 906

41
5 SUMMARY OF IMPACTS

This section summarizes the displacement impacts caused by construction and operation of
the Nacala Railway Corridor and Port Project.

5.1 SUMMARY OF IMPACTS

Table 14 summarizes the number of households that were physically displaced (experienced
loss of a dwelling) and economically displaced (experienced loss of assets or access to assets,
including land that led to loss of income or livelihood).

Table 14. Households displaced by the Project per section

Type of Number of households

displacement S2 S3 S5 S6 S7 S8/ Port Total
Physical only 10 0 0 96 625 28 759
Physical cum 0 177 52 110 692 27 1,058
economic
Economic only* 222 1,615 2,781 739 5,392 1,284 12,033
* Note: Economic displacement is measured by summing the number of households losing a field or a business.

As mentioned in Chapter 4, most people in rural areas of Mozambique and Malawi hold
more than one machamba. Since the rail corridor is a linear project, land take from any one
plot was usually limited to a small portion of that plot, typically less than 20% of its total
area. As a result, many Project affected households could continue their livelihoods on their
remaining unaffected land.

5.2 DWELLINGS

The asset survey identified 1,817 dwellings that required to be relocated. The majority of
these are in S7, Nampula and suburbs, as summarized in Table 15.

Table 15. Dwellings displaced by the Project by section

Loss of Number
dwellings S2 S3 S5 S6 S7 S8/ Port Total
Loss of
10 177 52 206 1,317 55 1,817
dwellings

42
5.3 ANCILLARY STRUCTURES

In addition to dwellings, displaced households also lost other ancillary structures such as
latrines or external bathrooms. Table 16 provides an overview of the types and number of
ancillary structures that were lost. Most of these ancillary structures were located within the
railway safety zone.

Table 16. Ancillary structures lost per section

Type of fixed Number

asset S2 S3 S5 S6 S7 S8/ Port Total
Standalone rooms 71 25 211 650 957
Porch 95 863 14 972
Agricultural shelter 15 12 10 3 180 220
Chicken coop 65 10 13 37 1 126
External bathroom 135 59 260 2,592 22 3,068
Latrine 247 2,535 2,782
Granary 22 102 124
External kitchen 57 46 73 251 4 431
Drying hanger 75 304 379
Septic tank 3 94 97
Livestock pen 1 165 30 9 49 9 263
Well 4 1 47 52
Fence 10 39 180 522 10 761
Brick ovens 2 2
Total 22 515 219 1,192 8,226 60 10,234

5.4 CULTIVATED FIELDS (MACHAMBAS)

In general, affected households own at least one machamba. The average area of a
household’s machambas is less than 0.5 ha. Affected agricultural lands were largely arable,
used to cultivate a range of subsistence crops. Loss of all or part of a machamba had a direct
impact on a household’s agricultural production and livelihood. Since this is a linear project,
the impact was mainly concentrated within the width of the rail right of way which ranged
from 12 m in Nampula City to 100 m in Tete. Some households lost only a narrow strip of
farmland (which was generally less than 20% of their total land holding) and as such they
were able to continue their livelihood on the remaining plot of land. Other households, lost
a much larger proportion of their land plot, rendering their remaining land insufficient to
meet household needs. This latter group needed assistance to access replacement
agricultural area outside of the rail corridor.

43
 Table 17. Cultivation fields per section

Loss of fields for Number

cultivation S2 S3 S5 S6 S7 S8/ Port Total
Number of
222 1,101 1,326 853 5,303 1,574 10,379
machambas (active)
Number of
0 870 1,477 0 0 0 2,347
machambas (fallow)
Total area (ha) 60 1,199 173 168 1,203 297 3,100
No. of unique
198 1,613 2,717 800 5,022 1,311 11,661
affected landowners

In Mozambique, monitoring of access to replacement machambas is being conducted as part

of the LRP which is currently underway.

As shown in Table 18, about 69% of households that lost agricultural land have now accessed
replacement land. Some affected households used their agricultural compensation to invest
in small businesses, and have elected to discontinue their agricultural activities. This
tendency was most common amongst households in urban or peri-urban areas such as
Nampula City and Nacala Porto. It partly explains the more limited uptake in agricultural land
in S7 and in S8/Port. Table 18 will be regularly updated based on ongoing monitoring.

Table 18. Access to replacement fields in Mozambique

Status of access to replacement Number

land S2 S6 S7 S8/ Port Total
Number of households that lost
198 800 5,022 1,311 7,331
fields
Number of households who have
198 782 3,338 713 5,031
accessed replacement land

In Malawi, the findings of regular engagement with Traditional Authorities and affected
households indicate that all affected households have managed to secure replacement fields
and continue their land-based livelihoods. The Concessionaires have commenced an
assessment of economically displaced households’ to verify the engagement team’s findings
as part of the process of improving the socio-economic knowledge base. The assessment will
be completed in November 2016.

5.5 LOSS OF ANNUAL CROPS

Project affected people were generally allowed to harvest their annual crops prior to their
land being taken by the Project. Also, so far as feasible, household land was taken during
fallow periods i.e. between harvest and the next planting when there were none or few in-
ground crops. This enabled households to harvest their usual food supplies and collect seeds
for their next sowing, minimizing impact on household food sufficiency and farm income. An
inventory of annual crops is summarized in the table below.

44
 Table 19. Annual crops lost per section (in ha)

Type of Ha
Loss S2 S3 S5 S6 S7 S8/ Port Total
Cotton 6.42 56.65 63.07
Peanuts 3.70 2.85 1.21 3.58 58.44 15.00 84.78
Rice 0.03 6.35 11.57 29.54 5.00 52.49
Sweet
1.8 7.15 6.40 15.35
potatoes
Sugar cane 6.32 0.52 0.42 5.29 1 13.55
Beans 10.00 2.10 0.12 30.17 211.08 45 298.45
Sesame 2.1 2.13 38.28 0.5 43.00
Sunflower 0.03 0.03 0.42 0.49
Horticulture 5.40 50.41 55.82
Jatrofa 0.42 0.04 0.46
Cassava 0.5 10.62 0.62 10.77 336.68 185.00 544.19
Millet 2.17 0.20 20.28 151.06 6.00 179.71
Sorghum 7.1 1.93 0.99 3.74 7.46 21.21
Maize 16.5 107.92 51.32 42.61 218.74 30.00 467.09
Tobacco 0.15 23.72 23.77 47.64
Cotton 83.60 9.27 92.87
Cabbage 0.06 0.07 0.13
Cow peas 22.52 0.81 23.33
Pigeon Peas 41.18 8.93 50.11
Sweet
3.97 0.54 4.51
potatoes
Total 41.73 133.89 61.51 168.42 1,194.26 287.5 1,887.30

5.6 LOSS OF TREES AND PERENNIAL CROPS

For some households, fruit trees and perennial crops such as bananas and pineapples are an
important supplementary source of food and income. Households typically have fruit trees
(e.g. mango, cashew and papaya) growing around their homesteads as well as in their
machambas. Table 20 provides a summary of the numbers and types of crops and trees lost
due to the Project.

Table 20. Perennial crops and fruit trees lost per section

Type of Number
tree S2 S3 S5 S6 S7 S8/ Port Total
Custard
7 119 585 58 769
apple
Banana 20 4,110 320 7,242 82,882 5,011 99,585

45
 Type of Number
tree
Cashew 6 28 6,691 7,044 13,769
Citrus 55 3,445 15 3,515
Coconut 1 197 363 561
Guava 471 46 71 460 29 1,077
Mango 49 2,713 205 856 5,087 313 9,223
Pawpaw 244 61 183 2,005 35 2,528
Avocado 82 75 157
Apple 315 127 442
(Masuku)
Uapaca 46 85 131
kirkiana
Tangerine 389 3 392
Total 76 8,294 847 8,556 101,443 12,943 132,159

5.7 GRAVES AND SACRED SITES

A further impact of the Project is the loss or disturbance of graveyards. An inventory of

graves and cemeteries was carried out and is summarized in the Table 21.

Table 21. Graves, cemeteries and sacred sites lost per section

Number
Type of Loss
S2 S3 S5 S6 S7 S8/ Port Total
Individual graves 213 1 2 99 387 702
Cemeteries 6 3 2 9 55 75
Sacred sites 2 1 0 105 21 129
Total 221 5 4 213 463 906

It was reported that households rarely visit the graves of their deceased relatives, so the loss
of access to graves or cemeteries was not a major concern. Communities were more
concerned about ensuring that the appropriate cultural and spiritual ceremonies were
performed in undertaking the grave relocation. Accordingly, the timing and arrangements for
the exhumation and reburial of the deceased were negotiated and agreed with each affected
family, or in their absence, with the villager leader. Provision was made for a relocation
ceremony to be conducted by the family itself and/or the traditional leader.

5.8 SEVERANCE OF FIELDS

The Project made provisions to compensate for situations where a field was left too
fragmented or too small to be viable for continued economic use. Compensation was
calculated upwards to the nearest 0.25 ha. For example, if a household lost 0.3 ha then it

46
 would be compensated for losing 0.5 ha, and if it were losing 0.75 ha of a field, it would
receive compensation for 1.0 ha.

5.9 SEVERANCE OF PATHS, ACCESS WAYS

See Section 2.5.

5.10 TEMPORARY USE OF LAND

See Section 2.4.

5.11 TRANSITIONAL ACCOMMODATION

In Mozambique, the Project provided rental allowance for temporary housing to about 1,600
households. This arrangement will continue until replacement houses are completed and
delivered. The average duration of Project affected households in transitional
accommodation has been 12 months. But, 193 households (including 20 households in
Nacala-a-Velha) have spent extended periods (up to 24 months) in transitional
accommodation (December 2015). As of 29 February 2016, there were 1,221 households in
S6 and S7 remaining in transitional accommodation while waiting to receive their
replacement house. The schedule for completing and delivering all replacement houses is
presented in Section 7.2.8 below.

The allowance for transitional accommodation and the amount of rental allowance was
based on a market survey done by the consulting company Diagonal and was approved by
the Government. The housing allowance is paid every six-months to affected households. It is
more than adequate to secure acceptable rental accommodation in the greater Nampula
area.

A number of households (81) in Namialo refused to accept the rental allowance because they
were unwilling to move until their permanent replacement houses were complete. The
Project prioritized construction of permanent houses for this group in Namialo.

5.12 IMPACTS ON STALLHOLDERS AND BUSINESS

Petty trade is practiced along the railway line mostly informal in individual stalls or small
markets. Stalls are most numerous in the densely populated urban and semi-urban areas
such as Nampula City and Ribáuè respectively. These two areas account for 90% of all
stallholders impacted by the Project.

Table 22. Stalls lost and impacted stallholders per section

Number
Type of Loss S8/
S2 S3 S5 S6 S7 Total
Port

47
 Type of Loss Number
Loss of railway side stalls 0 1 64 51 435 0 551
Loss of market stalls 0 0 0 0 674 0 674
Total of stalls 0 1 64 51 1,109 0 1,225
No. of affected stallholders with
0 1 59 49 1,062 0 1,171
only one stall
Note: Some stallholders own or operate more than one stall.

In general, business owners operate their own stalls. Main activities are selling manufactured
household goods and used clothes.

In Nampula City, 70% of the 537 impacted stalls are located in the 3 main markets of the city,
namely Descida and Gorongoza markets in the central city, and Waresta market on the
outskirts. Stalls are typically 4 m2 in area of basic construction – pole frames with thatch
roofing.

Table 23. Stalls lost and impacted stallholders in Nampula City

Name of market KM No. of stalls lost No. of stallholders

n/a 707-712 31 30
Waresta 713 67 62
n/a 714 15 14
Trim-Trim 715 26 22
Gorongoza 716 50 44
Descida 717 216 212
Descida 718 43 43
Padaria Nampula 719 36 33
n/a 720-730 53 52
TOTAL 537 512

In addition to cash compensation for the structure at full replacement cost, the Project, in
partnership with the Nampula Municipality, is funding the construction of a new market
place where displaced stallholders will be relocated and given a new stall.

5.13 LOSS OF ACCESS TO COASTAL GATHERING AREA

Women and children from Naxiropa village are engaged in intertidal gathering in the
immediate coastal shallows along the Nacala-a-Velha coastline. A total of 132 intertidal
coastal collectors from Nachiropa and Massingirine villages have been registered by the
Project, as shown in Table 24.

Table 24. Total intertidal costal collectors registered

District Village Registered no. of gatherers

Nachiropa 61
Nacala-a-Velha
Massingirine 71
Total 132

This group is concentrated in the Napazo area up to the bend of Namuaxi Point in Nachiropa.
They collect mostly crab, mollusks and shellfish, which are sold locally. These sales provide a

48
 cash income source for participating families.. With the construction of the Project jetty,
access of collectors from Massingirine village to some areas has been restricted and only in
very low tide are they able to pass underneath the jetty structure.

5.14 LOSS OF ACCESS TO FISHERIES

The Project has registered a total of 100 fishermen in Nacala-a-Velha. Of these, 40 use
motorized vessels 5 to 10m long and 60 use canoes. Fishing techniques differ depending on
the type of vessel. Those using boats (5 to 10 m) fish or trawl from the beach. The canoe
users fish at the Bay using hand nets. Neither group has appropriate equipment to be able to
fish in open water so nearly all activities are confined to Nacala Bay. Motorized vessels are
able to range further than canoes.

As a result of the construction of the Port and the establishment of a marine safety zone,
fishermen experience some minor restrictions on where they can fish. The establishment of
the Port will not have any impact on landing areas, fish processing locations, boat storage, or
the reefs or structures that are most commonly used for fishing. The Project is assessing
options for mitigation of the impacts resulting from establishment of the safety zone on the
fishermen.

6 COMPENSATION FRAMEWORK

6.1 INTRODUCTION

Compensation as a result of the Project’s land acquisition process is based on the national
legislation of Mozambique and Malawi, and international standards. For the Nacala Corridor
Project, the absence of legal title to land or other assets was not an impediment to eligibility
to compensation for lost assets or relocation assistance. All cash compensation payments
were made prior to displacement. Physical transfer to permanent, replacement housing has
been completed in S2, S3, S5 and S8/Port. As of February 2016, in S6 and S7, 10% of 1, 523
households had received their replacement houses. In S6 and S7, 90% of households were
still in transitional accommodation.

This section provides an overview of PAPs’ eligibility and entitlements for compensation and
resettlement assistance. Valuation methods are also presented.

6.2 ELIGIBILITY FOR COMPENSATION AND RESETTLEMENT ASSISTANCE

6.2.1 DETERMING CRITERIA

For the Nacala Corridor Project, any person affected by involuntary land take is eligible for
compensation and resettlement assistance. The types of impact experienced by Project
affected households and enterprises include the following:
 loss of dwellings;

49
  loss of immovable assets or access to assets; and
 loss of income sources or means of livelihood, whether or not the affected persons
must move to another location.
The following criteria were used to determine who was eligible for compensation and
resettlement assistance:
 Households, individuals or stall holders residing within, or owning trees, crops or
immovable assets within the Project affected area at the cut-off date;
 Households or individuals with verifiable ownership of dwellings, trees, crops
immovable assets within the Project affected area, but whom were absent a the
time of enumeration, and
 Verifiable registration during enumeration.

The means of verification include:

 Enumeration card given to each enumerated PAP;
 Validation by the community leader;
 Updated maps of the affected project areas; and
 Database with completed enumeration form and photos of the affected PAPs.

6.2.2 CATEGORIES OF PAPS

Based on the socio-economic survey, seven categories of PAP were identified:

 House owner
 Tenant, house renter
 Individuals with customary right of land occupancy and use.
 Crop / Tree Cultivator
 Stall/Small business owner
 Coastal gatherer
 Fishermen
Each of these categories is described below.

It is typically the case that an individual or household falls into more than one category.
For instance, a household may lose a dwelling, customary right of occupancy over
agricultural land as well as trees, crops and assets. In coastal areas, some members of the
household might also be coastal gathers.

House Owner
Members of this group own a dwelling within the right of way of the railway or port area.

Tenant, house renter

Members of this group were living on a dwelling within the right of way of the railway or port
area, but don’t own it.

50
 Individuals with Customary Right of Land Occupancy
Members of this group are formally recognized as holding a customary right to occupy and
use land

Crop / Tree Cultivator

Members of this group cultivate crops / trees on the plot. They are either farmers who
cultivate the land over which they hold a customary right of occupancy, or they are
sharecroppers who cultivate the land over which another individual has the customary right
of occupancy.

Stall/ Small Business Owner

Members of this group are recognized as owning a business. Typical businesses on the right
of way tend to be owner-run stalls.

Coastal gatherer
Members of this group main activity is to gather clams and mussels on the sea shore near the
port area.

Fishermen
Members of this group fish on the bay near the port area.

6.3 COMPENSATION ENTITLEMENTS

The Entitlement Matrix describes compensation and related assistance for each category of
loss both in Mozambique and Malawi. It is presented in the Table below.

Table 25. Entitlement Matrix

Type of Loss Mozambique Malawi

2
Min. 72 m replacement house with
corrugated steel roof, cement block
Cash compensation equivalent to
walls and concrete floor.
full replacement cost of house
Separate pit latrine + ablution
lost.
structure.
Self-build replacement housing.
Separate kitchen structure.
Cash cost of renting oxcarts for
650 m2 residential plot with DUAT.
transportation or truck transport
A one-time cash allowance of
Loss of house/ house for HH effects if desired in place
4,000Mts to cover transportation,
plot of oxcart.
transition and disturbance costs.
Village head assistance to locate
Opportunity for household member/s
replacement house plot – tenure
to receive training and employment
recognized by TA.
during their house construction.
Inclusion of 20% bonus for early
A monthly housing allowance of
release of the property within a 2
MZN3.500 in Nampula City; and,
week time frame.
MZN2.000 elsewhere) for the period
until replacement housing is

51
Type of Loss Mozambique Malawi
delivered.
Cash compensation equivalent to
Loss of fixed assets, Cash compensation equivalent to full full replacement cost of asset
incl. buildings under replacement cost of asset lost. lost.
construction/Empty A one-time cash allowance of Cost of renting oxcarts for
buildings/Seasonal 4,000Mts for transportation, displacement or truck transport
buildings transition and disturbance costs. for HH effects if desired in place
of oxcart.
Cash compensation equal to
Cash compensation based on
replacement value of crops + cost of
government rate for the field.
preparing the replacement field for
Cash compensation equal to
cultivation in the next agricultural
replacement value of crops + cost
season.
of preparing the replacement
For in-ground annual crops at the time
field for cultivation for next
of Project occupation, 2 x replacement
agricultural season.
value of crop (i.e. to cover loss of in-
Village head assistance to
Loss of machambas ground crop + next season’s crop).
identify and secure replacement
Assistance for finding replacement
farmland plot – tenure
land available via government or
recognized by TA.
village leader.
1-year follow-up supervision by
Toolkit and start-up materials
an agricultural agent + refresher
including seeds.
training.
1-year follow-up supervision by an
Assistance in forming
agriculturalist + refresher training.
associations.
Assistance in forming associations.
Cash compensation based on
Loss of fallow n/a
government rate for the field.
A one-time cash allowance of
A one-time cash allowance of
MWK62,500 will be provided for
4,000Mts will be provided for incurred
Lost accommodation incurred transportation,
transportation, transition and
for tenants transition and disturbance costs.
disturbance costs.
Payment of MWK15,000 for 3
Payment of 3 months’ rent.
months’ accommodation rental.
Cash compensation equal to value of Cash compensation equal to
Individually owned
yields lost up until the re- value of yields lost up until the
economically
establishment of the tree to its re-establishment of the tree to
productive, domestic
previous production level + cost of its previous production level +
tree
replacement sapling. cost of replacement sapling.
Cash compensation for loss of Cash compensation for loss of
assets/structures. assets/structures.
Cash compensation for lost net Cash compensation for lost net
Losses of stallholders income during the period of income during the period of
or business transition. transition.
Where applicable, cash allowance for Where applicable, cash
costs of relocating/setting up again. allowance for costs of
New stall in a new market. relocating/setting up again
Provision for alternative accesses.
Livelihood restoration programs
Reduced access to
aiming to diversify livelihood sources
coastal gathering n/a
and increase household income such
areas
as poultry production, Horticulture
and Micro-credit.
Livelihood restoration programs such
Reduced access to
as the establishment of community n/a
fishing grounds
marine sanctuary, and other programs

52
 Type of Loss Mozambique Malawi
aiming to diversify livelihood sources
and increase household income such
as poultry production and
Horticulture.
Replacement sites to be identified by Replacement sites to be
the government in consultation with indicated by the government in
the families. consultation with the families.
Loss of
Cash allowance for relocation Cash allowance for relocation
cemeteries/individual
ceremony. ceremony.
graves/sacred sites
The company covers all costs for the The company covers all costs for
exhumation, transport and reburial of the exhumation, transport and
the deceased reburial of the deceased
Logistical support to receive
compensation payments
Priority for replacement housing Support provided by village
Vulnerable household Monitoring by FUNDE leaders in allocating replacement
support Logistical support to receive land
compensation payments Assistance by company personal
to find replacement housing
Vocational training provided

6.4 VALUATION METHODS AND CALCULATION OF COMPENSATION

6.4.1 MOZAMBIQUE

The valuation process was conducted by the consulting company Diagonal. Diagonal staff
were accompanied by representatives from the affected community and one or more
government representatives who observed and monitored the field activities. As part of the
field-based valuation process, the valuation experts had one-on-one discussions with each
affected household, to clearly explain the valuation method. Key steps of the field valuation
process were as follows:
 With regards to trees, individual trees were counted and classified by type,
condition and maturity.
 With regards to crops and land plot sizes, tape measurements were used to
determine the area to be valued.
 With regards to buildings and other ancillary facilities, tape measurements were
taken, building details were recorded, together with state of repair and level of
completion. The collected information is part of the evaluation report.
 Photographs were taken of the one affected household headand key assets.
 GPS coordinates of each asset were recorded.
 Data was recorded in individual Assessment / Field Inspection Sheets.
 Each Assessment Sheet was then signed by a representative of the affected
household and the assessment officer, and witnessed by the community leader and
a government representative.

53
Valuation of non-residential structures
These included a range of household structures such as latrines, dish racks, kitchens, fences,
animal enclosures, wells, seasonal shelters, amongst others. The total value of each structure
was determined by taking into account the construction materials used, floor area, location
of building or property and the cost per unit area of construction. Except for pit latrines and
wells, most of these structures were moveable, and materials salvageable, thus the actual
loss was limited. The owner receives full replacement cost for the structure plus the right to
salvage and re-use any materials.
Valuation of annual crops
Compensation for loss of annual crops is determined by the Government Services of
Economic Activities (Serviços Distritais de Actividades Economicas – SDAE) for each district.
The calculation of compensation for annual crops was based on the following formula:

VC = [(Prod/ha x Pr/kg) – CI] x At x S, where

VC = compensation for annual crops
Prod/ha = average yield per ha
Pr/kg = market price per Kg
CI = cost of inputs including material, agro-technical services, transportation, taxes, etc.
At = impacted area
S = number of lost cropping season

The average yield per hectare for each crop in each district is provided by SDAE based on
statistics collected on a regular basis by the Ministry of Agriculture. According to SDAE , the
data used for the calculation of average crop yield is based on “good harvests.” The market
price per kg is also collected on regular basis by SDAE at local markets.

To minimize impacts on households, land acquisition took place between harvest and the
next planting season, when there were few in-ground crops. This minimized the loss of crops,
retained seed, food supplies and farm income. The payment of annual crop compensation
was considered to be for the coming season (S = 1). This recognized the fact that, due to
resettlement, or locating new fields, the farmer might not have time to fully prepare and
plant for the next harvest period.

In situations where the farmer could not be given sufficient notice to harvest his/her crop, or
the land was required before harvest season, compensation was paid based on the market
value of the non-perennial crop for existing in-ground crops and the forthcoming season (S =
2).

The cost of inputs CI, i.e., the cost of establishing the field, was not subtracted
from compensation values. These led to rates that were favorably high to the impacted
households.

Valuation of fruit trees

The calculation of the value of fruit trees for compensation is also determined by the
Government Services of Economic Activities (Serviços Distritais de Actividades Economicas –
SDAE) at each district and is based on the market rates and includes the type of trees, the
age, size and area in which the perennial crops are grown. The compensation amounts are
calculated by the Government on a per tree basis using the following formula:

54
 VP = [VU – (I-X)] x Pm x PV + C, where:
VP = compensation for one tree
VU = life of the tree, in years
I = Age of the tree, in years
X = Average period of time required to re-establish the tree to an adult production
level, in years
Pm= Average annual produce
PV = market price of produce
C = Costs incurred to re-establish the tree to its previous production level

Compensation rates per tree provided by the government factor the following stages of tree
development:
 Young, not productive,
 Young productive,
 Old, not productive.

The final compensation value of fruit trees was approved by local authorities.

Valuation of small business structures

Business structures in the Project corridor, mostly stalls, were valued on case-by-case basis
using the replacement cost method. Replacement costs were calculated based on actual cost
of construction/re-establishment of a structure of at least equal quality as the affected
structure. The stall owner receives an estimated cost for the business downtime loss, full
replacement cost for the structure plus the right to salvage and re-use any materials.

Valuation for Temporary Displacement from Agricultural Land and other assets
Compensation for temporary use of land such as temporary access roads, laydown areas,
etc., was calculated on a similar basis to loss of assets described above and included:
 Loss of annual crops
 Loss of any perennial crops or fruit trees
 Loss of production seasons
 Loss of non-residential assets
Upon construction completion, the temporarily used land was reinstated to its pre-project
condition (without trees and crops) and returned to the user.

6.4.2 MALAWI

In Malawi, the National Property Advisory Services2 was requested by the Project to assess
the value of land taken and building structures for compensation purposes. Details of the
valuation process can be found in the Specific RAPs for each district. Here is a summary.

2 Malawian Government entity responsible for country-wide independent valuations.

55
 The land assessed is under customary law and the assessment was based on the provisions of
the Railway Act (1907), The Malawi National Land Policy (2002) CHAP 4:16, The Land Act
(CAP 57:01) and The World Bank Safeguard Policy OP4:12. Other case law was consulted.

Project affected people were identified through surveys conducted by valuation staff from the
Lands Department and by a social survey conducted by Diagonal staff. These surveys
established the number of affected persons and the nature of the potential displacement. They
further established land sizes and crops which helped to calculate the final value for
compensation.

Market research conducted by the Lands Department formed the basis for calculation of
values for building structures and for land to be acquired. The land value per hectare was
K250, 000.00 in 2011.

For crops assessment, the type of crop, its potential yield per hectare and market prices were
used to calculate the crop values. 15% was added to account for inflation and align 2010
prices with current (2011) market prices. To each crop value were added land preparation
costs.

For forest trees, the number of trees was multiplied by the price per cubic meter, as
stipulated by the Forestry Gazette of 2010, to obtain the values of the trees. Similarly, for
fruit trees, the yield per tree per year, the number of trees, the expected productive life and
the estimated market price were multiplied to get the values. 15% in each case was added to
align 2010 prices with current (2011) market prices.

A disturbance allowance equivalent to 30% of the building value and 15% of the land value
was added to the compensation amount to meet the costs of transportation of salvaged
materials and identification of replacement land.

7 REPLACEMENT HOUSING AND INFRASTRUCTURE

7.1 INTRODUCTION

This section summarizes arrangements for providing replacement housing in Mozambique

and Malawi.

7.2 MOZAMBIQUE

7.2.1 APPROACH

All households experiencing physical displacement will be provided with replacement

housing of improved standard, preferably in the same village or community as their original
dwelling, whenever possible. This minimizes severing of ties with extended families and
social networks.

56
7.2.2 TRANSITIONAL ACCOMMODATION

Following consultation with affected families, the Mozambican Government approved the
transitional accommodation program to allow the timely completion of the Project and
simultaneously protect the rights and interests of affected families. The Project provided a
rental allowance to affected households for temporary housing to cover the time until their
replacement houses were delivered. The amount of the rental allowance was based on a
market survey and subsequently approved by the Government. The rental allowance is paid
every six-months to households in transitional accommodation. The allowance is sufficient to
secure acceptable rental housing.

7.2.3 RESETTLEMENT SITE SELECTION PRINCIPLES

The following principles were applied for replacement housing sites selection:
 the resettlement site should be acceptable to affected households and any host
community;
 the distance between the area of origin and the resettlement site should be less
than 3km;
 the site should be suitable for construction, with inclination no steeper than 10%
and without high water level;
 the house plot area should not be less than 600m2;
 the site should be free of significant environmental risks, such erosion or flooding;
 Government validation should be sought to avoid overlaps with other land titles or
future plans;
 resettlement sites should not be within Protected Areas such as full or partial
protection zone for roads, railways or power transmission lines.host communities
are consulted.
The process for selecting the resettlement site is summarized in Figure 11.

57
 Figure 11. Process of site selection

•Developmente of criteria to select site options by the Project

•Validation of the criteria with Government
Step 1

•Request Govenrnment to identify potential sites

•Request families to communicate site preferences including individually identified
Step 2 resettlement sites

•Consultation with affected households to present proposed sites and site screeening
methdology
•Households visit proposed sites and may present alternatives
Step 3 •Households identify a prefered site and sign a form to demonstrate acceptance

•The Project present the prefered community site to the Government for appoval
Step 4

7.2.4 REPLACEMENT HOUSE DESIGN

The conceptual house design was based on a residential plot of 600 m2 (20 m by 30 m) and a
house with a minimum size of 70 m2 consisting of 3 bedrooms and a living room. Each house
is also provided with an external kitchen and an external combined bathroom/latrine.

The replacement houses, kitchens and latrines are constructed from cement blocks with
corrugated iron roofing. The floors are finished in cement and the walls are rendered. The
combined bathroom/latrine consists of two areas – one for bathing and the other, a toilet
with a pit latrine.

Three different house layouts options were discussed with the physically displaced
households. These took into account house design characteristics specific to regions
traversed by the rail corridor. House layout options included roof type (double pitched or
hip), room layout and the number of doors (1 or 2 doors).

The consultation process on house design concluded with a formal selection of a house
layout for each railway section by the affected families. Preferences boiled down to roof type
with households in the S8/Port area choosing hip roofs which are common in coastal areas.
Affected households from inland areas preferred the double pitched roof. House layouts in
each section are shown below.

58
Figure 12. House layout for Sections 2, 6 and 7

59
Figure 13. House layout for sections 8/Port

7.2.5 SERVICES AND INFRASTRUCTURES

As affected households are relocated preferentially in the same village and community as
their original dwelling, they will be able to use the same services and infrastructure that were
in use at their original area of residence. However, hand pumps will be constructed in large
housing sites or where water resources are distant or inadequate.

7.2.6 URBAN RESETTLEMENT – NAMPULA CITY

In the case of Nampula City, with features of an urban resettlement, the selected site is in
the communal unit of Namalate, within the neighborhood of Namutequeliua, in the
Administrative Post of Muhala. The site is within the urban area of Nampula City about 8km
from the central area of the city accessible from the main road from Nampula to Nacala.

60
Figure 14. Selected host areas for resettlement in Nampula City

The site was selected by the families themselves and approved by the Government following
the process described above. Pictures of this process are shown below:

Figure 15. Process of selection and approval of host areas

The resettlement site is suitable for 221 plots of 600m2 each, and it has been allocated to the
5 contracted construction companies as shown in site plan below. The expected house
delivery schedule is provided below.

61
Figure 16: Allocation of plots to construction companies

Consmoz FD Sobreiros Construtec

202 203 204 205 206 207 208 209 210

201 200 199 198 197 196 195 194 193 192 191 190 169 168 187 186
Hugs : 30 plots
170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185

169 168 167 166 165 164 163 162 161 160 159 158 157 156 155 154 153 152 151

150 Consmoz : 40 plots

131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148
149

130 129 128 127 126 125 124 123 122 121 120 119 118 117 116 115 114 113 112
FD : 40 talhões
111
92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109
110

91 90 89 88 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72

71
54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
Sobreiros : 40 plots

53 52 51 50 49 48 47 46 45 44 43 42 41 40 39

25 26 27 28 29 30 31 32 33 34 35 36 37 38
Construtec : 56 plots

18 17 16 15 14 13
24 23 22 21 20 19
11 12
10
7 8 9
1 2 3 4 5 6

The proposed house layout is illustrated below and was designed in consultation and with
inputs from the affected families. Each house consists of 3 bedrooms and a living room with a
total area of 80m2. Unlike the rest of the corridor, the bathroom, toilet and the kitchen are
attached to the main house. The toilet and kitchen unit have the main entrance protected by
a wall. Validation of this design layout is currently underway with the families and the
Government. If approved, each resettled family will sign an acceptance form.

Figure 17. Nampula house layout

62
7.2.7 ARRANGEMENTS WITH HOST COMMUNITIES

Consultation with the surrounding families was undertaken to meet legal requirements for
the provision of DUATs to the resettled families. Given that the PAPs have been relocated in
the vicinity of their original dwellings, their ties and social network have been maintained
and as such the surrounding families were already known to the resettled families. The new
resettlement area is within the same community and, in principle, should not create
increased demand on existing water and public services. However, hand pumps will be
constructed in sites with more concentration of people or where existence of key services
was already constrained.

7.2.8 CURRENT STATUS AND SCHEDULE GOING FORWARD

Graph 1 shows the schedule for completion of construction and the actual number of houses
constructed up to the end of February 2016. Note, however, that the figures refer to houses
fully constructed and ready for delivery. It does not include houses at different stages of
construction such as masonry or roofing phases. For instance, at the end of February 2016,
about 50% of all replacement houses to be constructed had the masonry phase completed.

Note, in addition, the graph shows replacement house construction for S6 and S7 only. For S2
(10 houses) and S8 and the Port (55 houses) all replacement houses have already been
delivered to the affected families. The process for Malawi is described in the following
section of the report.

63
Graph 1. House construction schedule in Sections 6 and 7, as of 29 February 2016

nov/16 dec/16 jan/17 feb/17

64
 As per the Graph 1, there is some deviations between planned and executed house
construction. These deviations from the plan are related to the impact caused by the rainy
season (October to March) in the northern region of Mozambique (where S6 and S7 are
located) characterized by heavy rain during December and January; logistical difficulties in
accessing remote areas traversed by the railway; local traditional process of validating the
resettlement areas, the house typology; and, the traditional ceremonies required prior the
start of construction. With the rainy season coming to an end as well as the learnings
captured, it is expected that the construction will be completed by February of 2017.

The delivery of the houses to the beneficiary households is usually achieved several weeks
after the completion of construction. This requires traditional ceremonies to be performed
according to local practices and customs, the timing of which depends on the availability of
spiritual leaders and other influential personalities, as well as Government formalities. Given
such specific requirements it is expected the final hand-over will be by June of 2017.

7.2.9 SECURITY OF TENURE

Tenure will be secured through provision of DUATs for house plots. FUNDE is responsible for
preparing and submitting the request to the Government for issuance of DUATs. It is to be
noted, however, that the acceptance of the resettlement site by the Government and the
consultation with neighbors are the pre-requirements for the issuance of DUATs by the
Government. The issuance of DUATs for house plots will start immediately after each house
is delivered.

7.3 MALAWI

7.3.1 APPROACH

In Malawi, households were provided cash compensation at full replacement cost.

Households received cash for self-relocation and for building their own houses. This
approach was approved by the Government after consultation with the displaced households
who expressed a strong preference for receiving their compensation in cash.

7.3.2 STATUS OF REPLACEMENT HOUSING IN MALAWI

Based on a monitoring exercise conducted by the Project´s community relations team in

2015, all households have been able to build or acquire replacement housing. In general, it
can be concluded from the monitoring results that the majority of households built improved
houses made of brick walls with corrugated iron roofing.

7.3.3 ARRANGEMENTS WITH HOST COMMUNITIES

Similar to Mozambique, most households managed to relocate within the same village or
community. Arrangements with the host communities were made through community
leaders.

65
 7.3.4 SECURITY OF TENURE

The local leader assists the households to locate replacement house plot, confirms the
ownership of the land, and provides the security of the tenure, which is recognized by the
Traditional Authority.

8 LIVELIHOOD RESTORATION

8.1 INTRODUCTION

To ensure restoration of livelihoods, the Nacala Corridor Project seeks to facilitate full and
timely access to replacement land. The Project has developed a cross-sectional LRP, which
was based on an assessment of local and regional community initiatives, feasibility and socio-
economic baseline studies and information on the land release negotiation process.

The LRP is integrated within the social and environmental impact management programs. These
are part of the broader Project community relations strategy encompassing two other
components, namely stakeholder engagement and community investment. By doing this,
synergies are sought to achieve a broader livelihood restoration approach including: (i) capacity
building initiatives, such as agricultural advisory services like dissemination of agrarian
technologies, awareness raising on health and nutrition and environment; (ii) resources,
improved seeds and farming techniques and; (iii) food production and diversification of income
sources.

8.2 FACILITATING ACCESS TO REPLACEMENT LAND

Mozambique and Malawi are predominantly rural countries and securing access to
replacement land for farming is a critical part of livelihood restoration. The Project is seeking,
therefore, to facilitate access to replacement land through the existing traditional systems of
land allocation where tenure is recognized by village heads. In addition, the agricultural LRP
currently implemented by agricultural specialist partner organizations provides support to
households in identifying, where necessary, replacement land for agriculture, with special
attention to vulnerable groups. Regular monitoring and evaluation of the program will be
used as a tool to understand where further assistance is required.

8.3 LIVELIHOOD SUB-PROGRAMS

The LRPs were designed and are being implemented in partnership with local enterprises and
NGOs with extensive experience and knowledge of the Northern Mozambican context and
land-based livelihoods. In addition, to the initiatives described in the table below, existing
and planned Government social development programs were considered for potential
partnerships and synergies. The roles and responsibilities of the different parties and entities
involved in LRPs are described in Section 10.3.

66
 Several livelihood restoration initiatives are being implemented by the Project and these will
continue during operational phase in accordance with the Environmental and Social
Management Plans and LRPs. The LRPs will be deemed when the resettlement monitoring
report confirms that the livelihood of the PAPs is restored. The table below provides
summary information on livelihood restoration initiatives currently implemented by the
Project. The focus of these initiatives has been on restoring agriculture for food production
through diversification of crops, by improving yields of common crops, and introducing
alternative cash generating activities such as poultry and horticulture. Additional programs
aim at capacity building such as agricultural extension services, environmental management
and preservation, vocational training and community micro-credit. Special attention has
been given to gender perspectives in overall programs design and implementation.

Specific programs are also being implemented targeting the fishermen and intertidal gathers
in Nacala-a-Velha. These are directed towards promoting alternative livelihood sources given
the declining trend in fishery catches, as is being experienced by most fishery communities in
Mozambique.

Table 26. Summary of livelihood sub-programs

Mozambique Targeted Targeted Delivery
Scope Objectives Duration
Sub-program Outcomes Beneficiaries Partners
To assist mainly
affected
Improvement of 75% of SNV (Niassa
farmers that 18 months
crop productivity affected and
lost more than (renewabl
Agriculture for food security farmers 7500 farmers Nampula)
20% of land to e for 12
and promotion of engaged in DAPP in
restore months)
commercial crops Mozambique Malawi
subsistence
farming.
To promote the
construction of Diversify SNV (Niassa
18 months
aviaries by the livelihood sources and
30 aviaries in (renewabl
Poultry beneficiaries and increase 70 farmers Nampula)
Mozambique e for 12
and supply of household BONIMAR
months)
start-up income (Tete)
materials
Horticulture
To promote the market
horticulture identified, SNV (Niassa
practice including and
Improve income
Horticulture prioritizing creation of 700 farmers Nampula) 12 months
generation
women, on linkages ACEAGRARI
gender between OS (Tete)
perspective producers and
buyers
Escolas
Increase
To implement técnicas de
capacity and
short term Carapira,
Build local employability
training courses 500 members OAS, Santa
Vocational capacity to meet of those From 4 to
prioritizing of affected Maria,
Training market needs and affected 12 weeks
women, on communities TECNICOL,
employability households
gender ADPP,
within direct
perspective HUGHs
impacted area
construction
Local Engagement of To improve 1600 1600 PAPs (1 to HUGHS,
employment members of technical skills in household in 3 jobs per COSMOZ, 18 months
opportunities physically construction, Mozambique family) MN,

67
Mozambique Targeted Targeted Delivery
Scope Objectives Duration
Sub-program Outcomes Beneficiaries Partners
and skills displaced income COMPOMO
development households on generation and Z, FD,
housing preparedness for SOBREIROS,
construction market demand CONSTRUTE
C, ASA
Development of
To grant initial alternative
Women from
capital and sources of income 5 canteens in
intertidal
Canteens entrepreneursh and encourage Nacala-a- SNV 12 months
gathering
ip prioritizing creation of Velha
group
women community
associations
To promote the
Poultry (as an construction of Diversify
18 months
alternative to aviaries by the livelihood sources
150 intertidal (renewabl
fishery and beneficiaries and increase 12 aviaries SNV
gathers e for 12
coastal and supply of household
months)
gathering) start-up income
materials
Horticulture (as
18 months
an alternative to To promote the
Improve income Creation of (renewabl
fishery and horticulture 50 fishermen SNV
generation local trade e for 12
coastal practice
months)
gathering)
Facilitated access
Environmental To create a to alternative 18 months
01 marine
management marine fishery zones and 1000 fishermen (renewabl
sanctuary SNV
and sanctuary in environmental of Nacala Bay e 12
established
preservation Nacala Bay related behavior months)
change
To promote
formation of To promote the
entrepreneurs creation of
60 women of
group amongst community Formation of
intertidal
Micro-credit PAPs associations and micro-credit SNV 12 months
gathering
prioritizing invest in groups
group
women, on alternative
gender livelihood sources
perspective

Malawi Sub- Targeted Targeted Delivery

Scope Objectives Duration
program Outcomes Beneficiaries Partners
Improve
1,000 young
livelihood Developme
1,000 youth farmers in each
Youth Development standard by nt Aid from
of the five
Agriculture of agricultural engaging youth in participating People to 8 months
affected
Program skills food security and People
districts, 200
income (DAPP)
per district
generation
To encourage Improvement of
income Increased
PAPs to engage
generation, average of
in bee keeping African
preservation of income of 100 100 bee
Bee Keeping activities Parks
4m
onths
forests and affected farmers
through (Majete)
promote households
technical
support alternative
income sources
To ensure PAP’s Rehabilitation of To raise Two villages of NAYAODE
Reforestation have a secure degraded areas environmenta Chikapa and 4 months
wood supply l awareness Chikwekwe in COVISODE

68
Malawi Sub- Targeted Targeted Delivery
Scope Objectives Duration
program Outcomes Beneficiaries Partners
close to their and Neno District
homes and promotion of 10 GVHs in TA TYIASODE
opportunities sustainable Chapananga,
for income alternatives Chikwawa
from plantation for forest- District
of woodlots. based Michiru Forest
business Reserve
within Project Liwonde Forest
directed Reserve
affected
zones
To safeguard
Creation and NAYAODE
sustainable
Development of management of
trading, 4 committees 04 Natural
Environmental social network COVISODE 4 months
environmental formed Reserves
Committees between
protection and
stakeholders TYIASODE
recovery.
To improve
Jacaranda Provide additional
local skills for 01 VCT
Vocational alternatives of 2,000 PAPs Jacaranda 6 months
vulnerable implemented
Training Center income
groups
Engagement on
alternatives to
reduce
Environmental To develop 01 National
deforestation and
management Forestry Reserve
promotion of 1000 PAPs DAPP 12 months
and activities in supported in
employment
preservation Malawi Malawi
through eco-
tourism and
lodges

8.4 STALLHOLDERS

Most of the stallholders impacted were located in Nampula City (Mozambique) and have
been cash-compensated at replacement cost. In addition, a Memorandum of Understanding
(MoU) has been signed between the Project and the Nampula Municipality to support the
construction of a market to accommodate the stallholders displaced by the Project. The
market will have the capacity to accommodate about 400 stallholders. Other facilities built
within the market include a parking area, a cinema and a restaurant. The target completion
date for construction is September 2016. The layout of the market is given below.

Figure 18. New Nampula market layout

69
8.5 LIVELIHOOD PROGRAM MID-TERM REVIEWS AND EVALUATION

An evaluation of LRPs implemented to date is underway. This evaluation is being undertaken

by both internal teams and by an independent external party. Also,underway is a new
socioeconomic evaluation to improve the existing knowledge base andcapture household
total landholding and magnitude of loss, and improve the socio-economic information
available on livelihoods. The outcome of these two evaluations will be a revised livelihood
restoration strategy and plan for the Nacala Corridor Project. The revised LRP will be
completed by the end of April 2017.

8.6 CURRENT STATUS AND PLAN GOING FORWARD

Taking into consideration that livelihood restoration implies a multi-year perspective, the
proposed approach for the LRP is based on a multiphase implementation strategy . For this
reason, all the sub-programs presented in section 8.3, and summarized in Table 26, mostly
already concluded in the case of Malawi, are under review for the next phase of
implementation.

For Mozambique, the projects still under implementation up to September 2016, are
presented in the following table:

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Table 28. LRP phase 1 under implementation
2016
Component Activity
Mar Apr May Jun Jul Aug Sep

In-field monitoring (gaps and adoption rate data collection)

Routine GAP trainings/Training of Trainers (TOT) (including
harvesting and post harvest technology)
Field days for farmer learning and project publicity
Agriculture
Lead farmers equipment procurement
In-field staff supervision
Farmers trainings and assistance
Commercialization and market linkage facillitation

Component sensitization, consultation and targeting of stakeholders

(including market)
Seed procurrement
Irrigation consultant engagement
Identification of sites suitable for horticulture production (water
availability, soil type, access)
TOT (general horticulture production)
Horticulture
Farmers trainings
Seedbeds establishment (collective establishment)
Land preparation of production blocks
Irrigation systems installation in appropriate locations
Field monitoring visits and supervision
Transplanting and production
Market Assessment and Market Linkages

Sensitization, consultation and targeting (criteria for selection)

Mobilisation of beneficiaries for poultry houses construction
Consultant hiring (for poultry trainings)
Procurement of poultry starter kits
TOT (general poutry production)
Poultry production and monitoring
Commercilization and market linkage facillitation
Poultry Site identification for abattoir construction; sorting out legal issues
and institutionalized poultry groups into cooperatives
Contractor hiring for abattoir construction
Enganging one local base poultry agent/formation of an association
to run the abattoir
Abattoir construction
Abattoir equipment procurement
Markets Assessment and Development

Sensitization of beneficiary families

Savings group awareness and women savings groups formation
Savings Contracting a consultant for saving group training
groups Training of saving groups
Presentation of seed capital to established and trained saving groups
Monitoring and evaluation of the process

Secure approval from district administrator for the santuary

establishment in Nachiropa
Contract consultant for santuary establishment
Fishery
Assessment of marine species
Sanctuary establishment
Training for monitors of the sanctuary

Finalisation of the 2 canteens in Nacala-a-Velha

Training of the micro-entrepreneurs
Canteens
Start kits presentations
Monitoring and evaluation of the businesses

Contracting of consultants (1 for HIV/AIDS mainstreaming; 1 for

Health and Nutrition)
Nutrition Public material / documentaries, etc
Trainings and awareness provided to target group

71
 Going forward, the Concessionaires will review the livelihood restoration strategy by re-
designing the existing programs and developing new ones based on the lessons
learned/recommendation from the evaluation exercise.

9 PUBLIC CONSULTATION AND DISCLOSURE

9.1 INTRODUCTION

The Concessionaires undertook an extensive process for public consultation and

participation. Consultation with the affected population and with officials of local
government, civil society and other representatives of the affected population has been
essential for gaining a comprehensive understanding of the types and degrees of adverse
effects, mitigation measures proposed and related implementation status of the Project.
Preparation of Project resettlement plans and their implementation in each country was
based on the following:
 Identifying stakeholders and ensuring there are adequate mechanisms for stakeholder
feedback and information sharing.
 Informing and consulting with representatives of the affected people – local
government, village leaders and local community organizations – about the Project
plans and asking them to inform their constituents and Project affected populations.
 Sharing knowledge on the Project and its impacts to manage expectations and reduce
tensions with the stakeholders.
 Briefing all Project line managers and staff who will interact with affected people on
the anticipated effects of the Project and measures to mitigate its impacts.
 Sensitizing and providing tools for employees to act as disseminators of information
about the enterprise with a clear position in interactions with the other stakeholders.

Aligned with IFC Performance Standards (2012) and AfDB’ s Integrated Safeguards System
(ISS, 2013); and Operational Safeguard 2 Involuntary Resettlement: land acquisition,
population displacement and compensation, the Project ensured that resettlement activities
were implemented with appropriate disclosure of information, stakeholder consultation, and
the informed participation of those people affected by the Project.
The community engagement process begun in 2010 and was undertaken according to the
legal framework in each country.

9.2 OBJECTIVES

The Project has implemented actions as part of its Stakeholder Engagement Plan to ensure that:
 All stakeholders have access to Project information;
 The information provided can be understood by all Project affected persons;

72
  The locations for consultation are well publicized and accessible to all who want to
attend;
 Measures are put in place, which ensure that vulnerable or minority groups are
consulted; and
 Communication channels, listening and response to demands are effective.

9.3 STAKEHOLDER IDENTIFICATION

At the beginning of the EIA process, the stakeholders were identified using extensive
knowledge from within each country, ensuring inputs from the community, traditional
authorities, district, municipal and governmental parties. Detailed attendance registers were
maintained. Most notably attention was given to:
 Districts Authorities;
 Traditional Authorities;
 Government authorities;
 Community members;
 Group Village Headmen and Village Headmen (Chiefs who, as representatives of their
people, speak on behalf of their people) in Malawi;
 District Executive Committee in Malawi;

To start the engagement in the areas, it was necessary to talk to the communities about the
goals and objectives of the Project. The following themes were addressed:
 Nacala Corridor Project: purpose and benefits;
 Presentation of the work plan, and the field staff.

Table 29. Summary of stakeholder groups

Stakeholder Groups
Stakeholder Type
Mozambique Malawi
Project affected households
Primary – directly affected Project affected businesses
people, businesses, government Host communities
entities responsible for land NGOs, Civil Society Groups
access, resettlement and Village leadership Village heads, traditional
supervision – those who have District Governments authorities, district government
most to gain or lose NGOs, civil society – Centro NGOs, civil society – FOCADE,
Terra Viva, CSC, etc. DAPP, etc.
MICOA/MITADER; Ministry of
Secondary – direct or indirect EAD, Ministry of Transport,
Transport, Provincial
interest, but who only loose or Government Departments and
Government Departments
gain a little Directorate at district level
and Directorates, District
External – indirect interest,
Human Rights Watch Human Rights Watch
nothing to lose or gain

73
9.4 COMMUNITY REPRESENTATION AND ENGAGEMENT

The mobilization and sensitization of communities were conducted through the following:
 Project established Social Committees;
 Community leaders and traditional authorities;
 Partner NGOs such as FUNDE, SNV and DAPP; and,
 Contractors such as Diagonal during the census, surveys and payment of
compensation.

The sensitization process included creating community awareness of the potential impacts
and risks of residing in the Project safety zone. It explained the factors contributing to the
need for displacement and elicited participation in resettlement planning, compensation
package design, replacement site selection, housing design and livelihood preferences.

The Project facilitated the formation of the district level Social Committees in 3 key locations,
namely Moatize, Nampula City and Nacala-a-Velha. In the rest of the corridor, the
communities were mobilized and engaged through community leaders or other existing
structures. Nacala-a-Velha is different from the rest of the corridor and the establishment of
the SC was justified by the construction of a Greenfield Port and the existence of a variety of
stakeholders including fishermen and intertidal gathers. Nampula City is the only urban area.
In Tete, the platform had already been established by the Moatize mine.

Each committee was made up of representatives of the community, government and the
Project. Local NGOs or community-based organization were invited, as required, to
participate in the committees to discuss issues raised by such NGOs to the Government or to
the Project. Representatives of the community included members of each affected
stakeholder group within the community, such as: landowners, stallholders, resettled
families, fishermen, intertidal collectors, community leaders and other influential
personalities, elderly and some vulnerable groups. Gender balance was a requirement. The
selection of community representatives was entirely up to the community and they have the
right to change their representatives as they require.

The general purpose of the Social Committee is to provide a forum for organized and regular
dialogue between community representatives, the government and the Project on issues and
concerns associated with the Project as well as to find solutions and consensus together in
order to establish good relations. The role of the community representatives in the SC is to
represent community preferences to the Project and Government and transmit project-
related information to communities.

9.5 SUMMARY OF CONSULTATION ACTIVITIES

The record of key consultation activities is presented in the EIAs and Resettlement
Documents (PDSO, PEC and SRAP). The meetings, forums, public hearings and other activities
aiming to consult the PAP and other relevant stakeholders are presented in the Stakeholders
Engagement Plan.

74
9.6 CONSULTATION WITH HOST COMMUNITIES

Consultation activities, mainly meeting with community representatives, have been

conducted with host communities. Special attention has been given where larger
resettlement housing settlements are located. During the meeting with host communities,
the following themes were addressed:
 Nacala Corridor Project: purpose and benefits;
 Presentation of the work plan, and the field staff;
 Purpose, nature, and scale of the resettlement; particularly the main information
about the proposed replacement housing for the PAPs;
 Impacts on such communities and relevant mitigation measures; and
 The grievance mechanism.

9.7 ATTENTION TO VULNERABLE GROUPS

In total, some 685 households were categorized as vulnerable. Some households were
observed to be vulnerable against more than one indicator.
The Project used the following 04 indicators for screening and identifying vulnerable
individuals and households:
 (a) Female-headed households without assets (or in matrilineal areas, such as where
the Chichewa and Emakua prevail, the potentially vulnerable group was ‘male-
headed households without assets’)
 (b) Child-headed households;
 (c) Households headed by elderly persons above the age of 60 without their own
assets; and,
 (d) Households with chronically sick or persons with disability.

Particular measures have been implemented to facilitate participation of vulnerable groups,

through customary networks, home visits and special monitoring. Vulnerable groups also
have access to information by signed agreement with all households.

Vulnerable households required special support during the implementation of the RAP
depending on the level of impact they experience and their vulnerability. Vulnerable
households have been prioritized for resettlement assistance such as receiving replacement
houses, support with transport and provision of moving allowances. Vulnerable households
have also been given priority for receiving replacement land as close as possible to their
dwelling or village. Where transitional accommodation was required, provision of transitional
support, particularly to vulnerable groups, is provided.

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9.8 SUMMARY OF DISCLOSURE ACTIVITIES

Table 30. Summary of disclosure activities

Disclosure In-Country
International
Type Mozambique Malawi
(i) EIA/EMP (1)
(i) EIA/EMP (3)
Documents (ii) RPF (1)
(ii) PCS (3)
(total) (iii) General RAP (1)
(iii) PDSO (13) and PEC (3)
(iv) Specific RAPs per district (6)
(i) MICOA
(i) Department of
(ii) MICOA
In-Country Environmental Affairs (EAD)
(iii) All Districts,
RAP Location (ii) Ministry of Lands and EAD Not applicable
municipalities and
Disclosure (iii) EAD
villages along the
(iv) Ministry of Lands
Nacala corridor
(i) 2010
(i) 2010
(ii) 2011
Timing (ii) 2011
(iii) 2012
(iii) 2012 - 2014
(iv) 2013-2015

This Resettlement Status Report will be disclosed nationally and internationally to all relevant
stakeholders. The document will be available at the Nacala Corridor Lenders websites, and at
the concessionaire’s facilities. Electronic copies of the document will be sent by e-mail to any
stakeholder by request.

10 IMPLEMENTING ROLES AND RESPONSABILITIES

10.1 INTRODUCTION

This chapter describes roles and responsibilities for resettlement implementation. It also
describes how resettlement functions will be managed as the Concessionaires transition
their organizations from the construction phase to operations. Ongoing resettlement
activities that will be maintained until completion of a satisfactory Resettlement Completion
Audit include:
 Development of a PAP socio-economic knowledge base
 Completion of replacement housing delivery and defects management
 Coordination of house plot DUAT applications (Mozambique) and follow-up
 Management and delivery of livelihood programs
 Encroachment management along the NCP right of way
 Operations phase stakeholder engagement and information dissemination
 Monitoring and reporting
 Grievance management

In the event a safety zone is required for the Cuamba-Lichinga line:

 Preparation of a RAP or LRP for the Cuamba-Lichinga rehabilitation

76
10.2 INSTITUTIONAL ROLES AND RESPONSIBILITIES

Figure 19. Institutional arrangement

Senior Maneger (1)

Executive Office (1)

Manager (1) Manager (1) Manager (1) Manager (1)

S2 & Malawi S2 & S7 S8 & Port Construction

SOCIAL STAFF (59) – KEY FUNCTIONS Construction

Supervising (3)
Compensation and Livelihood Community Community
resettlement Restoration Engagement Investment

Construction
Monitoring Social Monitors SNV Companies (12)
Local NGOs
Contracts (190) DAPP
AC Agrários

LEGEND: OWNER CONTRATORS/

TEAM PARTNERS

Key functions of the team are described in the Table 31.

Table 31. Key functions and main responsibilities

Community
Compensation and Livelihood Community
Engagement and
resettlement restoration investment
relationship building
Surveys and inventories Restoring agricultural Management of Implementation
Database Management livelihoods encroachment in the of the
Payment of compensation safety zone community
- Consultation with Income-generating investment plan
community projects Cultural heritage
- Negotiations Grievance management
- Physical payment of Monitoring of socio- Health, environment and
compensation economic indicators community safety
Relocation of graves and - Awareness campaigns
sacred sites - Environment and
Compliance sanitation
Management of - Health programs
temporary resettlement (malaria and HIV,
Identification of mobile clinic)
resettlement areas
Community participation Implementation of other
during construction mechanisms of
Management of relationship building
construction companies

77
10.3 SOCIAL TEAM ORGANIZATION

Table 32. Resettlement institutional roles and responsibilities (Malawi and

Mozambique)

Responsible
Task/Activity Purpose Period Implementation
Entity
Define activities, roles &
Project Resettlement
responsibilities, budget Project
team under oversight of
Prepare RAP and schedule for delivery Planning Resettlement
the Technical
of resettlement and team
Committee
livelihood programs.
District Government,
based on technical
opinions from the
Review & Government approval of Pre- District
Technical Committee &
approve RAP RAP. construction Government
the sector responsible
for the Territorial
Planning issues.
Affected household
Make available to
Allocate Village leader/ with assistance from
displaced households
replacement Planning District village head (Malawi) or
suitable replacement
agricultural land Government District Administration
agricultural land.
(Mozambique)
Identify those eligible to District Government
Announce cut- receive compensation/ District with support from the
Planning
off date discourage opportunist Government national and provincial
settlement. Technical Committees
Define those eligible for
Census and compensation/ assistance Project land &
Project resettlement
socio-economic and record their baseline Planning resettlement
team
surveys socio-economic teams
conditions.
Cash compensation for Malawian Government
House Resettlement
houses owners and for Construction after bank deposit done
Compensation team
homestead. by Project
New replacement houses Project team with
Houses Resettlement
and cash compensation for Construction Mozambican
Replacement team
ancillary structures. Government support
Malawian Government
after bank deposit done
Cash compensation for
Economic Resettlement by Project.
crops, trees and small Construction
displacement team Project team with
business e.g. stalls, etc.
Mozambican
Government support
Construction
until
Livelihood Assure to improve or Resettlement Construction team and
Operations to
restoration maintain livelihood. team operational team
RAP
completion
Grievance Implement mechanism to Pre-
Social team Social team
Mechanism manage grievances Construction

78
 Responsible
Task/Activity Purpose Period Implementation
Entity
received to until
resolution/feedback. Operation
Social Implement mitigation and Construction
Social team Social team
Investments compensations actions. to Operation
Operation to
Internal Implement system and
RAP HSEC team HSEC team
Monitoring report activities.
completion

10.4 SOCIAL TEAM RESOURCES

Due to the size and complexities of the Project, both permanent staff and several contractors
mobilized. The social team has been integrated with members from all concessionaires and
has the primary responsibility for implementing the compensation and resettlement
activities and maintaining the relationship with the communities along the corridor.

The table below summarizes current numbers of staff and contractors in Mozambique and
Malawi, broken down by Project section:

Table 33. Numbers of staff and contractors in Mozambique and Malawi

Project Sections
S2 S3+S5 S6+S7 S8+Port Total
Senior Manager 1 1
Manager –
1 1
Construction
Owner Managers 1 1 1 3
Team Social Staff 10 10 25 11 56
Social Monitors 16 20 120 34 190
Communication
1 1 1 1 4
Dept.
Diagonal 8 16 120 15 159
FUNDE n/a n/a 50 n/a 50
Contract SNV n/a n/a 18 12 30
ors NGOs 3 2 6 3 14
Construction
1 n/a 10 1 12
Companies

11 GRIEVANCE MANAGEMENT

11.1 GENERAL

The Concessionaires have a developed and operated a grievance and redress mechanism to receive
and address and resolve affected people’s grievances and concerns related to the environmental

79
and social performance of the Project. It includes a Call Center, with toll free numbers accessible in
both Mozambique and Malawi (in Malawi to be implemented in 2017) to facilitate the logging of
complaints. In order to support grievance management, an IT based system called SDI
(Stakeholders, Demands and Issues) was developed. All responses to grievances are recorded and
included in project supervision reports. The grievance assessment process includes E&S Territorial
Committees.

11.2 OBJECTIVES

The grievance mechanism for the Project was designed to meet the following objectives:

 be accessible to the stakeholders at all times during the Project cycle;

 provide affected people with straightforward and accessible avenues for making a
complaint or resolving any dispute that may arise during the course of the Project;
 ensure that appropriate and mutually acceptable corrective actions are identified and
implemented to address complaints; and,
 facilitate the follow-up and evaluation of the outcomes of complaints and concerns
about the Project.

11.3 GRIEVANCE PROCEDURE

Figure 20 presents the flow diagram for processing complaints. There are seven main steps:

 Analysis and recording – Social Issues database records;

 Grievance response communication – considering Social Committee;
 Discussion – including Territorial, National and Executive Committee;
 Solution Established – Final strategy about which response will be considered.

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 Figure 20. Grievance Mechanism in the Nacala Corridor

The Concessionaires maintain a complaints and grievance tracking system to ensure that
complaints are systematically addressed and closed out in a timely manner. Records are kept
and grievance numbers and patterns are regularly analyzed to determine whether there is
need for any changes in systems and procedures.

11.4 AVENUES FOR PROJECT AFFECTED PEOPLE TO MAKE A COMPLAINT

Based on the Grievance Procedure there are several ways for a complainant to make a
complaint. All the complaints will be passed to the Project.
 Village head – can receive every complaint and the grievance is passed on to the
Project;
 FUNDE – this organization has been instructed about how to register complaints from
stakeholders and manage them in accordance with the Grievance Mechanism;
 Community Relations team – all social monitors have received training on how to deal
with complaints;
 Contractors – all contractors receive training on the grievance management process
and are responsible for handling complaints in a manner consistent with the Project’s
Grievance Mechanism; and,
 Call Centers – toll free numbers are available which any complainant can use to log a
grievance.

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 Figure 21. Call Center flowchart

11.5 GRIEVANCE MANAGEMENT ROLES AND RESPONSIBILITIES

Roles and responsibilities for completing the various tasks associated with grievance redress
are summarized in the following matrix.

Table 34. Summary of grievance management roles and responsibilities

Project Government Community

Construction

Public works
department
Community

Community

community

community
Transport
leadership

Affected
relations

External

Role
Broader
families
District
Project

Affairs

leaders
Land

Host

Resettlement Phase
and Activity

Complaints and grievance management

- Complaints and grievance report and registration A R R I R R R R R
- Complaints and grievance analysis and response formulation A R C C
- Complaints and grievance response communication A R C C I
- Complaints and grievance closeout A R I I I

Legend:
R – Responsible; A – Accountable; C – Consulted; I – Informed.

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11.6 MONITORING OF GRIEVANCE OUTCOMES

A total of 2,736 claims and grievances have been received to date in Malawi and
Mozambique. The majority of the claims and grievances are in S3/S5, S6/S7. At this stage in
the Project most complaints are related to compensation. The table below shows the break-
down by Project section:

Table 35. Summary of Grievances by Section

Type of grievance S2 S3/5 S6/7 S8/Port Total

Not satisfied with the compensation 248 55 303
Impact of construction works 311 311
Partial compensation of assets 16 16
Not assessed/Review of compensation
355 127 482
amount
Delay in compensation payment 28 28
Not compensated 638 664 41 1,343
Renewal of rental allowance 135 135
Suspicion of corruption 5 5
Change of beneficiary 7 7
Mobility 19 0 28 47
Others 59 59
Total 19 1,300 1,348 69 2,736

Most of the grievances across all sections have been successfully closed out. About 68% of
grievance have been closed out within 30 days. Table 36 below summarizes grievances that
are closed out and ongoing:

Table 36. Summary of grievance per status (close out or ongoing)

S2 S3/5 S6/7 S8/Port

Closed out 18 1,235 1,038 67
Ongoing 1 6 310 2

11.7 COURT CASES

A small number of PAP in Malawi have taken legal action against the Concessionaire and/or
its contractors. Some of the cases have been resolved through negotiation. Some have been
dismissed for failure to prosecute and others, however, are still to be resolved. As of
November 2015, a total of 9 court cases had been filed. One of these is a group case filed by
89 people from Neno district. The 9 cases still to be resolved are summarized in Table 37.

Most of the people with pending court cases (91 out of 97) claim dissatisfaction with the
compensation amount paid. The Government has produced a report explaining the
methodology used to calculate the compensation amounts, including the additions and extra

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 cap provided by the Project. Although dates for the hearing are set by the court, it is
expected that all cases be settled by mid-2016.

Table 37. Summary of ongoing court cases

PAP
Case Claim Status
(no.)
Dust by Contractor during construction reduced crop Mediation failed and case will
1 1
yield. proceed for trial.
Dust by Contractor during construction reduced crop Mediation failed and case will
2 1
yield. proceed for trial.

3 Compensation paid to wrong land owner. 1 Waiting for mediation date.

Awaiting judgment ruling on

4 Dissatisfied with the compensation amount paid. 1
2016/02/23.
To schedule land dispute resolution
5 Land dispute related to of compensation. Payments 1
meeting.
Mediation failed and case will
6 Dissatisfied with the compensation amount paid. 99
proceed for trial.

Awaiting feedback from the PAPs

legal counsel following the decision
7 Dissatisfied with the compensation amount paid. 1
made by RLOS that the compensation
amount was correct.
PAP demanding to be paid for damages to crops that
is being claimed to have been affected by the water
that was channeled to the land in question from a Court hearing has been set forth for
8 1
railway drainage. The PAP is demanding the Project 2016/03/01.
to extend the drainage away from the field so that
the water does not damage crops in future.
Total 106

11.7.1 DISPUTE RESOLUTION

Disputes related to land acquisition were, in the majority of cases, resolved through
negotiation between Government officers and Project affected complainants based on the
existing administrative grievance resolution channels. Some disputes were escalated to the
courts.

11.8 SOURCE OF FUNDS

The Concessionaires has provided the funds necessary for resettlement, comprising the
mitigation and compensation costs for the physical and economical displacement impacts
related to the construction and rehabilitation works for the Nacala Corridor Project. It also
includes housing replacement, livelihood restoration measures, social investments in the
affected communities, monitoring and evaluation.

The Project has also provided funds for cash compensation of crops, fruit trees, households
assets and any infrastructure affected by the construction and rehabilitation works out of the

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 Right of Way, e.g. construction of temporary infrastructures such as campsites or temporary
roads.

12 MONITORING AND REPORTING

12.1 GENERAL

Monitoring and Evaluation are key components of the resettlement and compensation
process. The monitoring and evaluation process examines what worked and why, what did
not and why it did not, and what adjustments or changes need to be made to resettlement
programs.

There are two components of the monitoring framework for the Nacala Corridor and Port
Project:
 Internal monitoring by CCCV
 Monitoring by an independent specialist

To assist with the monitoring and evaluation process, a set of indicators are used by the
Concessionaires. These indicators were defined as part of the monitoring and evaluation
framework. They consist of input, output and outcome or impact indicators as defined and
listed in Table 39.

Input monitoring indicators measure whether inputs are delivered in accordance with the
plan. Inputs include goods, services, resources both human and financial that contribute to
achieving outputs and consequently the desired outcomes. The input monitoring is done
internally on an on-going basis by the community relations team, often as part of standard
Project management and internal reporting mechanisms.

Output monitoring indicators measure the direct results of the inputs employed. Indicators
of these sort include ‘the number of households that have received compensation’, ‘the
number of replacement houses constructed and handed over to Project affected
households’, ‘the number of households who have participated in livelihood programs’.
Output monitoring is also done internally by the community relations team.

Outcome/impact monitoring indicators measure the extent to which the inputs and outputs
are achieving or are likely to achieve the objectives of a resettlement and compensation
program. The monitoring of outcomes will be done internally by the community relations
team, an independent specialist and ultimately by the completion audit.

Table 39. Key Performance Indicators

Input indicators Source of Information Frequency

Overall spending Financial records Quarterly
Distribution of spending by:
 Cash compensation
 Rehabilitation - livelihood restoration Financial records Monthly
 Spend on replacement house construction
 Social development

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Number of full time staff dedicated to resettlement &
compensation, with distribution of in-house and PMO Annually
outsourced
Output indicators Source of Information Frequency
Number of PAPs by categories, construction front and
Data Management System Monthly
district
Number of individual compensation agreements
Data Management System Monthly
signed in the period
Number of PAPs that received cash compensation in
the period with distribution by compensation type and Data Management System Monthly
amounts
Number of resettlement areas identified, distributed
Data Management System Weekly
by locality
Acceptance of resettlement areas by households and
Data Management System Weekly
approval by Government
Number of PAPs receiving payment of rent allowance
Data Management System Monthly
for temporary accommodation
Number of houses constructed, by construction
Inspection reports Weekly
phases
Number of households engaged in livelihood
Data Management System Monthly
restoration programs
Number of trainings in improved agricultural
Data Management System Monthly
techniques
Number of families of fishing communities engaged in
Data Management System Monthly
new economic activities
Number of intertidal gathers engaged in new
Data Management System Monthly
economic activities
Number of physically displaced household members
Data Management System Quarterly
employed for construction of replacement houses
Outcome (or impact) indicators Source of Information Frequency
Number of community blockades Data Management System Monthly
% of grievance resolution actions closed within the
Data Management System Monthly
month
Number of grievances opened, on-going and closed in
the period, with indication of status of satisfaction by Data Management System Monthly
the grievant
Households have better houses
than before? Yearly and at
Physically displaced households receiving or acquiring
Survey of houses over a sample Completion
improved housing
of households and comparison Audit
with baseline
Have affected businesses been
successfully reestablished? Yearly and at
Business re-establishment Survey of activities and sales Completion
over a sample of businesses Audit
and comparison with baseline
% Increase in economic output in the agricultural Survey of production over a Yearly and at
sector compared to the average yield in the control sample of engaged farmers and Completion
group comparison with control group Audit
Survey of income over a Yearly and at
Number of PAPs who increased their income stratified sample of PAPs and Completion
comparison with control group Audit

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12.2 OBJECTIVES

The purpose of resettlement monitoring will be to verify that:

 Actions and commitments described in the resettlement documents are fully and
timely implemented and, if not, that corrective action measures are formulated and
implemented.
 Eligible affected people receive their compensation and entitlements in full and within
agreed timeframes.
 Resettlement actions and compensation measures are effective in sustainably
enhancing (or at least restoring) affected peoples’ living standards and income levels.
 Complaints and grievances lodged by PAPs are followed up and where necessary,
appropriate corrective actions are implemented.
 Progress reports are prepared to be shared with appropriate stakeholders.

12.3 INTERNAL MONITORING

Internal monitoring focus on measuring progress against the schedule of actions defined in
the Resettlement Documents and regular internal reports. Activities to be undertaken by the
Project will include:
 verification that compensation and entitlements are being delivered in accordance
with the resettlement documents;
 verification that agreed measures to restore or enhance living standards and livelihood
are being implemented;
 identification of any problems, issues, or cases of hardship resulting from the
resettlement process;
 assessment of PAPs’ satisfaction with resettlement outcomes;
 following-up on the implementation of appropriate corrective actions and satisfactory
outcomes; and,
 preparation of brief monthly internal routine update reports.

12.4 EXTERNAL MONITORING

The Concessionaires will engage a specialist to undertake external reviews of Project

resettlement with frequency to be agreed with the Lenders, in order to:
 Assess the overall compliance with the Resettlement Documents.
 Verify that measures to restore or enhance PAPs’ quality of life and livelihood are
being implemented and gauge their effectiveness.
 Assess the extent to which the quality of life and livelihoods of affected communities
have been restored.

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 Activities that will be undertaken by the consultants include:
 review of internal monitoring procedures and reporting to ascertain whether these are
being undertaken in compliance with the Resettlement Documents;
 review of internal monitoring records as a basis for identifying any areas of non-
compliance, any recurrent problems, or potentially disadvantaged groups or
households;
 review of grievance records for evidence of significant non-compliance or recurrent
poor performance in resettlement implementation;
 survey of PAPs to gauge the extent to which standards of living and livelihood have
been restored or enhanced as a result of the Project;
 preparing a summary compliance report as part of the ESMP monitoring of
resettlement progress for any issues arising and any necessary corrective actions.

12.5 MONITORING SCHEDULE

The timing for monitoring activities will be agreed with the Lenders.
Both internal and external monitoring will continue until the Resettlement Completion Audit
is finished.

12.6 REPORTING

Table 40. Summary of monitoring reports

Monitoring
Frequency Prepared by For
Report Type
Internal Update Report 2 months E&S CCCV Team CCCV Steering Committee
ESMP Update Report Six Months E&S CCCV Team MITADER
ESMP Update Report Quarterly E&S CCCV Team EAD
Internal Audit Report Annually HSEC Vale Corporate CCCV Steering Committee
External Audit Report Bi-Annually Independent Specialist Lenders

12.7 RESETTLEMENT COMPLETION AUDIT

A key objective of the resettlement process is that actions and mitigations lead to the
sustainable improvement or at least restoration of affected households’ living standards and
livelihoods. At some point, when the living standards and livelihoods of the affected people
are sustainably restored, the resettlement program can be declared “complete”. The
Resettlement Completion Audit will assess whether the activities and outcomes committed
to in the Resettlement Plans and Compensation Plans have been delivered, or whether there
is a need for any corrective actions. This audit will be conducted by a suitably experienced,
independent third party, mutually acceptable to Concessionaires and Lenders, not less than
24 months following completion of physical relocation, taking into consideration that the
implementation of the LRP started in 2013. Terms of reference will be developed by

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 Concessionaires and agreed upon with Lenders 6 months prior to the Resettlement
Completion Audit commencing.

Upon completion of the audit and any resulting corrective actions, the resettlement program
will be deemed complete. At this point, the Project will close its resettlement monitoring
program.

12.8 RESPONSIBILITIES FOR DISBURSEMENT

The compensation payment in Mozambique is done by the Concessionaires, guided and

monitored by the Government. Local government representatives and community leaders
witnessed each payment of compensation and allowances made directly to affected
households or stallholders in the field.

In Malawi, according to the Concession Agreement, Concessionaires are responsible for

funding RAP implementation. The market land assessment and valuation, as well as the cash
compensation payment were made directly by the Government. Based on the reports
provided by the Government, Concessionaires transferred the requisite amounts to the
responsible District Authority’s bank account.

In both countries, one-time cash compensation payments were made to each eligible Project
affected person or household, based on the preferences expressed by them and
consideration of personal security.

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13 RAP IMPLEMENTATION SCHEDULE

The table below presents the resettlement activities schedule:

Table 41. Resettlement Activities Schedule

(1) PEC or PDSO (Mozambique) and Specific RAP per District (Malawi)

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 ANNEX A

OTHER RESETTLEMENT-RELATED MANAGEMENT PLANS AND PROCEDURES

 PTP-0001-CCCV – Integrated Environmental and Social Management Plan of the

Railways – This plan is divided up into specific programs with the aim of minimizing,
mitigating and/or monitoring the impacts relating to railway operations by CCCV
Concessionaires.
- Air Quality Management Program;
- Noise and Vibration Management Program;
- Rehabilitation and Degraded Areas Program;
- Water Resources Management Program;
- Waste Management Program;
- Biotic Environment Management Program;
- Relationship with Communities and Stakeholders Engagement Program;
- Environmental Education and Community Safety Program;
- Community Health Program;
- Recovery of Means of Subsistence and Social Development Program;
- Monitoring Socio-economic Indicators Program. (Monitoring of resettled families).

 PTP-0002-CCCV – Environmental and Social Management Plan of the Port Terminal of

Nacala-a-Velha – This plan is divided up into specific programs with the aim of
minimizing, mitigating and/or monitoring the impacts relating to railway operations of
the Port Terminal of Nacala-a-Velha.
- Air Quality Management Program;
- Noise and Vibration Management Program;
- Rehabilitation and Degraded Areas Program;
- Water Resources Management Program;
- Waste Management Program;
- Biotic Environment Management Program;
- Environmental Compensation Program;
- Relationship with Communities and Stakeholder Engagement;
- Environmental Education and Community Safety Program;
- Community Health Program;
- Recovery of Means of Subsistence and Social Development Program;
- Monitoring Socio-economic Indicators Program. (Monitoring of resettled families).

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 PTP-0005-CCCV – CCCV Railway Mobility Plan – This plan aims to map, identify,
prioritize and define intervention points on the railway line to ensure an operation
with acceptable risks from a community safety perspective, and to avoid or minimize
social impacts on community's mobility along the line.

 PTP-0006-CCCV – Property Security Plan – This plan aims to define the corporate
safety procedures on railway lines and the port to ensure the integrity of the assets of
the Concessionaires and the physical integrity of their employees, striving for the
maintenance of human rights, ensuring protection of human rights as per CCCV’s
policy.

 PTP–0008-CCCV – Emergency Response Plan and Crisis Management – This plan

establishes the communication flows and use of resources in cases of emergency and
crisis based on the Preliminary Analyses of Risks to Health, Safety, the Environment and
Community (PAR). This document presents the Quantitative and Mitigating Risk Analyses
of the Corridor and as annexes the Intolerable Risk Prevention Plan / Action Plan.

 PTP-0009-CCCV – Stakeholder Engagement Plan – This procedure establishes the

methodology for internal communication and external dissemination of information as
well as receipt and analysis and response to requests from interested parties.

 PRO-0009-CCCV – Prevention and Treatment of Reoccupation of the Areas Adjacent to

the Railway Track – Indicates the strategy, actions and control instruments to keep the
areas of operational safety free, in addition to the applicable measures in cases of
reoccupation.

 PRO-0019-CCCV – Community Grievances Management – Establishes the

methodology for identifying, registering, analysing and managing information
regarding demands, suggestions and claims by interested and affected parties.
Includes the flow and system for processing and responding to community demands.

 PRO-0020-CCCV – Addressing special issues from vulnerable groups – Establishes the

guidelines and criteria for the characterization of special situations as well as the
treatment of vulnerable group.

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