31. Detailed budget estimates for involuntary resettlement will be prepared for each RP, by the PMU. It will be included in the overall sub-project estimate. The budget will include i) detailed costs of land acquisition, relocation, and livelihood and income restoration and improvement, ii) source of funding, iii) arrangements for approval, and iv) the flow of funds and contingency arrangements. Funds for land acquisition (including land acquisition for non-titled APs) if any, compensation for all assets lost, related resettlement assistance, and relocation and transfer will be provided by the EA. Administrative and implementation costs, including engagement of the implementing NGO, cost of census and survey of APs and inventory of assets, cost of information and consultations, training and monitoring (including evaluation by independent agency), and rental of office space and required physical facilities and materials will be borne by the EA or can be funded under the Investment Program. Land acquisition and resettlement costs will be considered as an integral component of sub-project costs. The EA will deposit the money to the concerned department for the disbursement of compensation to the affected people for land acquisition and resettlement. The EA will keep provisional money out of its annual plan for the resettlement cost and this provisional amount will be planned at the early stage of their annual plan so that the resettlement process won’t get delayed.

32. All land acquisition, resettlement, and compensation for a sub-project will be completed before award of civil works contracts. All land required will be provided free of encumbrances to the contractor prior to handing over of sub-project sites and the start of civil works. The implementation of the RP will include: (i) identification of cut-off date and notification, (ii) verification of losses and extent of impacts, (iii) finalization of entitlements and distribution of identity cards, (iv) consultations with APs on their needs and priorities, and (v) resettlement, provision of compensation and assistance, and income restoration for APs.

33. Internal monitoring will be the responsibility of the PMU/PIU/ESMU. The PMU internal monitoring will include: (i) administrative monitoring: daily planning, implementation, feed back and trouble shooting, individual AP file maintenance, and progress reports; (ii) socio-economic monitoring: baseline information for comparing AP’s socio-economic conditions, evacuation, demolition, salvaging materials, , community relationships, dates for consultations, and number of appeals placed; and (iii) impact evaluation monitoring: Income standards restored/improved, and socioeconomic conditions of the affected persons. Monitoring and evaluation reports documenting progress on resettlement implementation and RP completion reports will be provided by the PMU to ADB for review.

34. The EA will engage the services of an independent agency or civil society not associated with project implementation to undertake external monitoring and evaluation. The external agency, with previous experience in resettlement activities and familiarity with Government and ADB resettlement policy, will be engaged with ADB concurrence within three months of the loan effectiveness. The external monitor will monitor and verify RP implementation to determine whether resettlement goals have been achieved, livelihood and living standards have been restored, and provide recommendations for improvement. The external monitoring will undertake monthly monitoring and impact evaluation on a sample basis during mid-term and project completion. Monitoring will also ensure recording AP views on resettlement issues; AP understanding of entitlement policies, options, and alternatives; site conditions; compensation valuation and disbursement; grievance redress procedures; and staff competencies. The external monitor will also evaluate the performance of the PMU/ESMU related to resettlement issues. The external agency will report its findings simultaneously to the EA and to ADB twice a year. Provisions have been made in the resettlement budget component for engaging an external monitor. The internal monitoring report will be submitted quarterly to the INRM for review where as the external monitoring report will be submitted half yearly to the INRM for review.