EIA (2010), Strategic Plan for Compensation

Compensation and Social Assistance Strategic Plan

LINE 1 OF THE METRO OF PANAMA COMPENSATION AND SOCIAL ASSISTANCE STRATEGIC PLAN (PCAS)


1.

INTRODUCTION ....................................................................................... 1

1.1. Background: ............................................................................................... 1 1.2. Procedure’s Objectives: ............................................................................. 2 2.

LEGAL FRAME: ......................................................................................... 2

2.1. National Standards .................................................................................... 2 2.2. International Treaties ................................................................................. 6 2.3. Bills developed, pending on approval: ....................................................... 7 3.

PRINCIPLES OF THE COMPENSATION AND SOCIAL INTEREST PLAN (PCAS) ................................................................. 8

3.1. Survey of structures on public easements ............................................... 10 3.2. Country subdivisions Impacted. ............................................................... 11 3.3. Location of the Stations. .......................................................................... 11 3.4. Characteristics of the affected areas........................................................ 12 3.5. Final Survey of Structures ........................................................................ 14 3.6. Socioeconomic Study ................................................................................ 14 4.

NECESSARY ELEMENTS FOR THE ACTIVATION OF THE PCAS............................................................................................... 15

4.1. Agency Team: Necessary staff structure for the fulfillment of the compensation process. ............................................................................ 15 4.2. Agency Collaboration .............................................................................. 16 4.3. Eligibility Criteria ...................................................................................... 18 Index


4.4. Study of titles ........................................................................................... 20 4.5. Valuation of property ................................................................................ 20 4.6. Identification of the impact and categories of the displaced groups ......... 21 4.7. Analysis and selection of solution alternatives ......................................... 21 4.8. Implementation of a Software for the Management of the Compensation Process. ........................................................................... 22 5.

COMMUNICATION AND DISCLOSURE PLAN. ...................................... 22

6.

BASIC NOTIONS ABOUT THE COMPESATION PROCEDURE ............ 25

6.1. Previous concepts. .................................................................................. 25 6.2. General Compensation Procedure........................................................... 27 a)

Public Easement ...................................................................................... 27

b)

Private property........................................................................................ 29

c)

Expropriation ............................................................................................ 30

d)

Involuntary Resettlement ......................................................................... 31

7.

SOCIAL INTEREST PLAN ....................................................................... 32

7.1. Analysis of the Social Interest Impact and Magnitude.............................. 32 7.2. Impoverishment risk analysis. ................................................................. 33 8.

INSTITUTIONAL RESPONSABILITIES ................................................... 37

9.

ATTACHMENTS OF THE COMPENSATION PROCESSES. .................. 38

Index


1. INTRODUCTION 1.1. Background: The Line 1 of the Metro of the city of Panama is a project of social interest that comes to materialize the planning efforts that have been done in the transportation area as in the urban since the nineties, through different administrations, that even though they have not been concatenated, they have had the virtue of generating a knowledge about the urban and transportation problem and a basic valuable information. The Line 1 of the Metro of Panama will develop on the north-south part of the city, with a length of about 13.7 kilometers, beginning in the area of “Los Andes”, crossing the Transisthmic avenue and continues through the Fernandez de Cordoba Avenue to the Spain Avenue, from there to the beginning of the Justo Arosemena Avenue, which extends to a place close to the Plaza 5 de Mayo and continues its journey to the area of the Albrook Transportation Terminal. The Line 1 of the Metro has mostly a north-south line and joins the National Bus Terminal Station, in “Albrook”, with “Los Andes” passenger station in the north of the Metropolitan Area of the city of Panama. This route is inserted on a corridor of high public transportation demand and mostly through the center of the track axis of to minimize the damages. The construction of the Line 1 of the Metro implies to obtain a Right of Use of Road Easement on the whole journey of the Line and the acquisition of private properties. This procedure aims to establish a group of guidelines, principles and procedures governing the compensation caused by the liberation of the road necessary for the execution of the Project of the Line 1 of the Metro of Panama (from now on, the PROJECT), as well as the definition of the roles and functions that will have the institutions involved to serve and guarantee the communities, their rights.

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1.2. Procedure’s Objectives: 1) To offset the impacts caused by the acquisition of the lands and the damages generated by the recovery of the easement, as well as to determine the Social Interest Plans and Measures, if applicable. 2) Negotiate with the relevant institutions as possible to restore the socioeconomic conditions of the affected populations by the impacts generated with the PROJECT in their properties.

2. LEGAL FRAME: 2.1. National Standards

a. National Constitution (Article 49 and 51). Within the context of our National Constitution, is remarkable on regards to matter of the compensation for the execution of the Public Works, as regards to the State authority to Expropriate the private property. That is the power of taking the entire, or part, of the property of a particular in the extent that exist what is named the “urgent social interest”. This term is defined as “necessity that emerges from the State, representing the society, of putting in place works that means, concrete and immediate solutions to concrete problems suffered by the community and for that matter become ineluctable”. For this purposes the highest law offer the administration of two legal figures doctrinally named, as ordinary Expropriation (with a previous trial-article 49) and the Extraordinary Expropriation (with previous occupation-article 51) It is also important within the context of the Political Constitution of the Republic of Panama, to highlight some articles as the 17 (protection of the citizens properties); 46-47 (private property); 62 (obligation of the State on the social and economic improvement of the family); 64 (right to work) and 117 (right to housing).

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b. Law 114 of 1943. The first specific rule that emerges as regulator of the process of compensation or reparation to the affected by the public works is the Law 114 of March 17, 1943, (about the compensation due to Public roads). This one defines as remarkable criteria, and still being used, the two years period of prescription that the owner of an estate affected has to claim compensation. c. Contract (List of Charges). The contract will be the cornerstone of the relations originated between the contactor responsible of the construction of the project of the Line 1 of the Metro and the state. Contractually the state is responsible of giving and guaranteeing the contractor those rights of access and use of all the areas within the project site that are required for the Contractor to execute the work. In this regard it is established that the contractor should notify the state well before the date in which the contractor requires access to certain areas of the site to execute the Works, with the end that the state could have reasonable time to make all the necessary arrangements and guarantee the access to the Site of the Contractor in the area of the Site specified by it. Notwithstanding the foregoing, the Contractor will have the responsibility and will cover all the expenses related with some areas such as the site(s) of work of the contractor, the areas that decide to use for the storage of materials coming of the dragging of the project and the debris produced during the construction of the project, the plants of prefabricated for the tunnel segments and the elements of the elevated viaduct, or others elements that required prefabrication out of the sites of the construction of the civil works and any other area established as responsibility of the contractor in the list of charges and the contract. The rights of access to, and use of, the site that are given to the contractor, do not have exclusive character and their sole purpose is to allow the Contractor to execute the Works and to fulfill its obligations under the contract up to its end. Therefore, the right of access to, and/or use of, the site, could not be considered as the creation of right or any interest in favor of the Contractor 3


different to the one given in this Contract. d. Law of Public Contracts (Law 22 of 2006). The Panamanian legislation about Public Contracts governs the process of determining the value of the assets that the State acquires and also the criteria for the effects of the acquisition or transfer of the affected lands. This Law provides that two experts should value the properties, which the State intends to purchase or lease, one assigned by the Ministry of Economy and Finances and other, by the General Comptroller of the Republic, to determine its market value. e. Law 11 of April 27, 2006. This law, which amends the law 35 of 1978 which organizes the Ministry of Public Works, the governing body of the national road easements, and says: Article 1. The Executive Branch, through the Ministry of Public Works will have the task of carrying out the programs and to implement the construction and maintenance policy of the public works of the Nation. Article 2. The concept of Public Works as it is used in this Law, applied exclusively to the Ministry of Public Works, includes national assets, such as sources of construction materials, roads, streets, bridges, buildings or constructions of any kind which by Law or through disposal of the Executive Branch will be assigned. This Law 11 of 2006, and for the fulfillment of its objectives established the prohibition of the placement of Billboards and any other structure in the road easement area. A Resolution (069-06) of the same year, established economic sanctions up to 100,000.00 Balboas for those who violate the foregoing on the Law 11 of 2006. Likewise, also the MOP Resolution Nº AL 002-11, with date January 5, 2011, “Through which is ordered the immediate removal of the structures and advertisements or any other edification, installed in the road or public national easements.” Described in the preceding paragraph is particularly important given that the alignment of the leg elevated of the Metro is provided on the area legally established as road easement. In this regard, it has been detected an important quantity of structures or improvements inside of the easements, same that under the law, should be totally removed without right to any 4


compensation; even in the worse case, imposing sanctions to the occupants. However, the in-depth analysis about the matter and the requirements for the process of construction of the Metro take place without social starts, and furthermore being true to the equity and social justice principles that the Constitution recognizes, leads us to the identification of measures that allow, without violating the law, to recognize to those who occupy the easement, mostly people of humble origin, at least the investment they have made. f. Executive Decree Nº 1 of January 7, 2010: which decrees: “to establish and define, as area of the Influence Circle of the Line 1, of the Metro System of Panama”, described in the Annex that is attached”. The Executive Decree 1 of January 7, 2010, published in the Official Gazette 26448, of January 15, 2010, establishes that everything done inside of the Influence Circle of the Metro, as well as the regulations and the actions taken for the acquisition or occupation of the land, besides the modification of the structures, should have the authorization of the Secretariat of the Metro of Panama (SMP), and will be made on the base of its value to the effective date, that is the date of enactment. g. Executive Decree 150 of 2009: Rule through which it is created the Secretariat of the Metro of Panama as a government entity, under the Presidency of the Republic. Its main functions are:  To program, coordinate and implement all the actions that are required for the design, execution, management, operation and maintenance of the Metro. To these ends, all the government agencies, organizations or institutions that the Secretariat deems necessary, should immediately and with priority contribute, on the execution of the corresponding activities and tasks.  Oversee, together with the Ministry of Public Works, the projects and the works that take place for the execution of the Metro.  Promote the support and cooperation of the community on the execution of the Metro. 5


h. MOP Resolution Nº 001-11, dated January 5, 2011: Through this resolution the Secretariat of the Metro of Panama is authorized to use the public easement area of the Line 1 of the Metro of Panama and other provisions. 2.2. International Treaties The constitutional status of the international treaties, conditions the exercise of all the public power, including the one that exercise the Executive Branch, full respect and guarantee of these instruments. Among the documents that should be taken into account, are considered:  American Convention of Human Rights - “Pact of San Jose of Costa Rica”, which establishes, in the article 21 corresponding to the Private Property: 1. Everyone has the right to the use and enjoyment of its assets. The law may subordinate such use and enjoyment to the interest. 2. No person shall be deprived of his/her property, except through just compensation, due to public utility or of social interest in the cases and according to the procedures established by the law.  American Declaration of the Rights and Duties of the Man, as the Right to property established in the Article XXIII: Everyone has the right to private property for the essential needs of decent living and helps to maintain the dignity of the person and home.  United Nations’ Declaration of Human Rights, which indicates on its Article 17: 1. Everyone has the right to own property individually and collectively.

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2. No one shall be arbitrarily deprived of his/her property. In the Article 22: Every person, as member of society, has the right to social security, and to get, through national effort and international cooperation, taking into account the organization and the resources of each State, the satisfaction of the economic, social and cultural rights, indispensable to his/her dignity and the free development of his/her personality. Article 25: 1. Every person has the right to an adequate life standard that assures him/her, as well as his/her family, health and wellbeing, and specially food, clothing, medical assistance and the necessary social services; s/he has as well the right to the insurances in case of unemployment, illness, disability, widowhood, old age or other cases of lack of livelihood in circumstances beyond his/her control. 2.3. Bills developed, pending on approval: Metro Bill Currently is being worked on the frame of a Metro of Panama Bill, a specific title about “Compensation and Expropriation” of the properties and assets that result affected by the execution of this important work. This one has collected on a single policy, all the ideas, concepts and criteria about compensation, which before were scattered on different laws, regulations, etc. The pointed bill picks, also new aspects that contemplate to integrate the SMP in the compensation process. For example, the so-called Advance Deposit which is defined as the sum given to the affected prior to the delivery of the asset affected, independently of the final value amount, and which will be deductible in any case of such final amount. Such action seeks to ease the economic means to begin the process of relocation of the 7


affected. This Metro Law must pass, as it corresponds, the respective authorizations to such ends to become law of the Republic, then to check its applicability in practice once begins the construction of the Metro. Before being applied to regulate the relocation of a number of people affected, we believe that this one constitutes an important tool to fulfill simultaneously the main object of the Secretariat of the Metro of Panama: ensuring that the construction and commissioning of the Line 1, and others to come, are developed on the deadlines established, minimizing the affections and giving a fair and equitable treatment and compensation.

3.

PRINCIPLES OF THE COMPENSATION AND SOCIAL ASSISTANCE PLAN (PCAS)

This Plan is base on the following principles: 

MINIMIZE THE ACQUISITION OF LANDS AND THE RESETTLEMENT OF POPULATION.

It is possible to avoid the involuntary resettlement. In the PROJECT it will be prioritize the options that generate less impact on the premises or properties of the neighbors of the affected zones. 

COMMUNITY INVOLVEMENT

The process will require of the active participation of the local actors present in each one of the neighborhoods and communities subject of the project, as well as public authorities. 

AGREEMENT BETWEEN THE PARTS

Within the national legislation, provides for recourse to courts to release the area needed for the execution of projects of public works of social interest, nonetheless the Secretariat of the Metro has chosen to release the track through agreements by the will of the parts, with the purpose of guaranteeing harmonious and pacific coexistence with the owners, community and settled, 8


located in the area of the route of the Line 1 of the Metro.



COMPENSATION 1. The rate of compensation should be calculated to the total cost of replacement, that is, the market value of property structure type. On this point the SMP has agreed with the General Comptroller of the Republic and the Land Registry, the two entities responsible of making the appraisals, that the appraisals for the compensation of structures of the Project of the Line 1 of the Metro will be make taking into account the real value of the structures appraised and will show the value of the assets, according to the ranges that the CGR manages regarding with the internal support of the compensations. It tries to gives the fairest and most equitable compensation for the citizens of a vulnerable social strata, who will be affected by the construction and implementation of the Line 1.



CREATING ECONOMIC OPPORTUNITIES

The economic compensation for the lost of properties and other assets is a solution for the impacts generated, and guarantees the restoration of the socioeconomic conditions of the affected. However, the possibility of providing different options are limited by the Panamanian legislation, particularly when refers to structures located on the road easement. Nonetheless, as far as possible, the State will conduit plans that include a group of compensation actions and assistance (social type benefits), to help the displaced population in restoring or improving their lifestyle with existing social programs. ACCURATE INFORMATION The information that will be generated through the Census, should be precise about the number of people affected, taking into account the social, economic and ethnic composition of the affected considering the vulnerable population as women, youth and seniors. 9




INCLUSION OF COMPENSATION AND SOCIAL ASSITANCE COST IN THE INVESTMENT BUDGET OF THE PROJECT

The Compensation and Social Assistance are produced as consequence of the project, therefore its cost is totally included as part of the project; in this way, it promotes an adequate coordination with the construction activities. 

APPROPIATE INSTITUTIONAL FRAMEWORK

A separate unit has been established on the general framework of the project that has enough authority, the adequate budget and the necessary staff to execute the current plan, stating clearly the links between the unit of Compensation and Social Assistance and the general project, as well as the links with the local administrative units involved, which should include the local governments given that they are closer to the population. 

ESTABLISH SUPERVISION PROCEDURES (TRANSPARENCY) AND MONITORING COMPLAINTS AND CONFLICT SOLUTION

All the compensation process and the payments should be made with transparency. The acquisition of land and the Compensation and Social Assistance process has to be disclosed in such way that all the participants have the adequate and true information about the process. It will be guaranteed that the Compensation and Social Assistance process includes all the affected population and that the eligibility criteria and procedures to access to benefits are clear, transparent and are applied fairly to the affected people. Likewise, the entities responsible of the execution of the actions and activities related with the Compensations and Social Assistance, will assign the physical, human, managerial and financial resources for its implementation on time. 3.1. Survey of structures on public easements The available base information about the number of affections that the Line 1 of the Metro of Panama will generate through its 13.5 kilometers was elaborated during the period comprehended between May 21 and June 25, 2010. On it, it was only identified, without any interaction with the community, the existing 10


structures on the road easement. The work was focused on determining the following aspects: -

To determine the current situation of the structures located in the public easement of the Line Nº 1 of the Metro.

-

To identify the structures that could be affected by the development of the project.

-

To elaborate a complete list of the structures identified in the easement, either permanents or temporal.

The results of the inventory were supported with the location map of the structures, identified through UTM coordinates. In this preliminary inventory were catalogued more than 400 structures in the Road Easement affected by the Project, therefore the SMP centers its objective, as it has been explained, on minimizing the affections according to the necessities of the Project, so only affecting around 140 structures and constructions in the affected area of the Project. It is attached as annex the Preliminary Inventory as well as a Control Chart of the effective Affections made by the Project. 3.2. Country subdivisions Impacted. As shown in the inventory of structures, the Line Nº 1 of the Metro of Panama goes through 11 country subdivisions, namely: Amelia D. de Icaza, Victoriano Lorenzo, Belisario Porras, Omar Torrijos, Bella Vista, Calidonia, Ancon, Curundu, Bethania, Pueblo Nuevo an San Francisco. 3.3. Location of the Stations. Additionally, the Line Nº 1 of the Metro of Panama follows a North – South direction, on a high demand public transportation corridor, and includes the construction of 13 stations, named: Albrook, Curundu, 5 de Mayo, Maranon, La Exposicion, Church del Carmen, Argentina Way, Fernandez de Cordoba, 12 de 11


Octubre, Pueblo Nuevo, San Miguelito, Pan de Azucar and Los Andes. 3.4. Characteristics of the affected areas. a.

Area from Los Andes to the San Miguelito Intersection

This is an area in which dominates the residential construction, with some sporadic industries and many shops, outstanding small shops. The road easement in this area, especially in the places of people concentration, as the bus stops, entrance to the neighborhoods or in front of the shops, is invaded by a multitude of small shops, temporary or permanent, in which predominate the retail of a variety of products and services, as well as informal activities and sale of seasonal products. b.

Transisthmic Area

In this area is seen a wide vehicular road, although there is usually traffic congestion in the rush hours, with a few constructions along the easement, presence of industrial, commercial and institutional facilities. There is no good pedestrian system in this area, so the pedestrian mobility is very limited. It basically consists on an access route to different neighborhoods that are in the area and transit areas to other sectors of the city. From this point, the Line No 1 of the Metro of Panama will run underground. c.

Fernandez de Cordoba Area

The main characteristics of this area are the affections of the pedestrian sidewalks, which have been taken by the parking lots of the great variety of shops that are located to both pathways, interfering with the pedestrian mobility. Other of the characteristics is that there are facilities, which have built fences very close to the Avenue. For this reason, the road easement is being occupied, mainly, by parking lots and fences, and not by buildings. d.

Spain Way Area

In this area, the constructions are, mostly, away of the road easement, although 12


the pedestrian system has been incorporated as an only system that links local sidewalks and parking lots, in most of the cases. The presence of buildings, malls and hotels are the main economic characteristics. The easement in the area links Spain Way with the Fernandez de Cordoba, has been taken as part of the businesses that sale used cars, which have installed fences or have transformed the easement into parking lot areas. After the Church del Carmen and up to the entrance of the Justo Arosemena Avenue, the Constructions are, mostly, at the edge of the road. e.

Justo Arosemena Area

In this Avenue there are residential buildings, typical of the 40s and 50s, mainly. Likewise, is the area where are located institutional structures and a great variety of hotels. The sidewalks are, mostly, clear, even though by Calidonia, it could be seen temporary facilities, typical of the mobile sale activities. A characteristic of the viability of this area is that there are no parking lots in front of the structures, which has led to the establishment of parking lots. f.

Ancon and Curundu Area

With exception of the area where is located the Market, which is an structure that will be directly affected by the construction of the Metro and that presents space and vehicular mobility limitations, most part of this area presents and adequate support of green areas in the road easement, which contributes to clear the road network, even though the pedestrian network requires of improvement. Given that this is an area that functioned as part of the old Canal Zone, the urban characteristics are different from the rest of the urban area of Panama, it presents large space without occupation and areas that are integrated with the operation of the Panama Canal.

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3.5. Final Survey of Structures The mentioned survey has been complemented, especially in the area of San Miguelito, area through which runs much of the elevated section of the Metro. 3.6. Socioeconomic Study Once approved the route of the Line 1 of the Metro, the Secretariat of the Metro of Panama, aware of the heavy invasion of the road easement, space contemplated for the construction of the system, between Los Andes station and San Miguelito, began the identification process of these structures. That’s why in order to project the social impacts of the work, through the company in charge of developing the URS environmental impact study; an inventory of the structures that occupy the road easements adjacent to the rout of the Line 1 was made. Based in this inventory, the SMP technical equipment made a projection of the easement space required for the construction, and as a consequence the structures that would probably be temporary affected. Thus, was formed, with the support of the Ministry of Social Development a team of workers and community developers that will raise a socioeconomic profile of each one of the people that occupy the structures on the road easement, focusing in the elevated part of the Line 1, on the Transisthmic Way. This technical team applied socioeconomic surveys with the purpose of meeting the details of the commercial activity exercised, the quantity of employees and its respective aspects of health, and to obtain data about the material used for the construction of the facility. Representatives of 122 structures located on the road easement of the Thransistmic Way – between Los Andes station and San Miguelito station – were individually interviewed, of which 120 were classified as commercial activities, and the other two (2) as residences. The detail of this Socioeconomic Study is attached in the Annexes. 14


4.

NECESSARY ELEMENTS FOR THE ACTIVATION OF THE PCAS

4.1. Agency Team: Necessary staff structure for the fulfillment of the compensation process. Based on the Executive Decree 150 of 2009, it is created the Secretariat of the Metro of Panama as a government entity, under the Presidency of the Republic. Thus, the SMP, as executor entity of the Project, will do the follow up and supervision of this project, establishing the necessary strategies and politics for the adequate fulfillment of the objectives stated and facilitating where possible, the financial means, to obtain the required resources, for successfully carrying out such complicated mission. The first Action plan, lies on having the participation of the official links in the different institutions involved in the process: Secretariat of the Metro of Panama, Ministry of Public Works, General Comptroller of the Republic, the Ministry of Economy and Finances and the Municipalities of Panama and San Miguelito.

Similarly and more importantly, the SMP must have of the necessary human resource for this process which size can be determined as follows: −

One (1) Coordinator of the legal area of the SMP and in charge of coordinating the way clearance team.

−

Two (2) Lawyers. Hired to execute the necessary actions to carry out the process of clearance of the way and to carry out all the necessary actions for its execution and implementation. (They are part of the way clearance team).

−

One (1) Civil Engineer. Hired to execute the necessary technical actions to carry out the clearance process of the way and to carry out all the necessary actions for its execution and implementation (They are part of the way clearance team).

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−

One (1) Communication and Citizen Participation Coordinator and in charge of coordinating the necessary social actions that are part of clearing the way.

−

One (1) Sociologist. Responsible of the Social Area. Hire to execute the necessary social actions to carry out the process of clearing the way.

−

Two (2) persons with wide experience on community relations (labor, political,

social,

religious,

sports,

etc.)

knowledge

and

previous

management of compensation or reparation processes. They will be in charge, as well, of the communication and the institutional relations. −

One (1) Social Worker. Hire to execute the necessary social actions to carry out the process of clearing the way.

−

One (1) Coordinator of the Engineer area of the SMP and in charge of coordinating the technical team that supports the process of clearing the way.

−

One (1) Civil Engineer. Specialists in topographic survey. They will be in charge of doing the digital surveys in the area and give support to the staff of the way clearance team.

−

Administrative support team for the formalization of administrative procedures.

Representative of Land Registry/ Comptroller: −

Four (4) Officials with at least 4 years of experience in the process of appraisals of real properties and goods in general.

4.2. Agency Collaboration −

Land Registry and Cultural Assets (ANATI)/ General Comptroller of the Republic. As it has been detailed before these entities represented by their departments responsible of making appraisals, will give an indispensable support in this process, conducting that such management would be as expeditiously as possible. 16


−

Ombudsman. This entity could give valuable experience in the necessary mechanisms to minimize the conflict possibilities, as well as to work as intermediary or mediator in those cases that, punctually, are originated along the execution of the work.

−

MIVI/BHN/CA/BNP: These related to those cases in which are required to ensure housing or businesses at affordable values, and to which some of the affected could claim the compensation sum that is given to them. Likewise the banks pointed, with the purpose of expedite such proceedings and give preferential treatment.

−

IFARHU: Within the socioeconomic survey, it is foreseen to locate families with economic limitations that preclude the education achievement of the members of the affected family in scholar age, such cases will be conducted through the Ministry of Social Development, scholarships and/or loans can be given for studies with a previous analysis.

−

AMPYME/MICI/APEDE/INADEH: The Association of the Micro, Small and Medium Enterprises together with the Ministry of Commerce and Industries and the Panamanian Association of Business Executives, are in our criteria the adequate channels, to give a development and evolution option inside the commercial activity impacted by the Project, in a additional context to the granting of an economic compensation. So by making loans with flexible requirements and affordable rates, with incentives to certain commercial activities, and appropriate training, can be met in order to maintain sustainability in the way of life of the affected that exercise a commercial activity.

− MIDES. The Ministry of Social Development constitutes the backbone of the whole process, which we have opted to name Complementary Social compensation. This entity will be in charge on first instance of surveying the socioeconomic census of the responsible of all the structures that are inside of the road easement in the elevated section of the work. After this survey, this one should coordinate the process of establishing the social and economic profile of each one of the affected families, which will be the base 17


to conduit the complementary compensations in those cases that scientifically are credited as necessary. 4.3. Eligibility Criteria The eligibility criteria that are established as basics to be beneficiary of the Economic Compensation plan will be the followings: -

That the structure or the property affected are within the range of the direct impact of the work and that the space occupied by it is required for the design, construction, administration, operation and maintenance of the work.

-

For Structures in the Public Road Easement is required a Municipal resolution or as Custodial of the Road Public Easement from the Ministry of Public Works (MOP – due to its acronym in Spanish) and/or document that prove the property of the structure.

-

For the cases of permanent property affection it should be credited the ownership in the case of a property.

-

In case of natural person, it is required a copy of the personal identification of the person owner of the structure or property.

-

In case of a company, it is required the certificate of the public registry that certifies the existence and copy of the personal identification of the legal representative of the company.

-

Notice of Operations for the exercise of the Commerce by the Ministry of Commerce and Industries (MICI), when applies.

-

Income Tax Clearance issued by the Internal Revenue Service (DGI – due to its acronym in Spanish) of the Ministry of Economy and Finances (MEF) or MEF certification of not tax payer.

-

Clearance of the Department of Registration of Employers of the Internal Revenue Service of the Social Security, in case of a commercial activity or CSS certification of non-contributor. 18


-

Signature of the Compensation Agreement or of the Purchase Agreement corresponding in case of permanent affection of the property.

The cutoff date of the PCAS beneficiaries lists will be the one that corresponds to the date of approval of the final design of the project by the SMP, as for the affections on the properties, as for the improvements on the properties or infrastructures of the easement of the affected areas. While it is necessary to indicate that if, due to necessities of the material execution of the Project, it would have to affect areas no contemplated in this date, it will include as beneficiaries of the PCAS all those owners or landlords that are inside the new boundaries of influence. Regardless of the cutoff date, the Secretariat of the Metro has structured a work plan in order to ensure timely release of the easement strips required by the contractor. Under this scheme has been provided to proceed with the economic compensation of those structures occupied at the date of the enactment of Executive Decree No. 1 of January 7, 2010, published in the Official Gazette 26,448, of January 15, 2010, which establishes the circle of influence of the Line 1 of the Metro of Panama and that are in the cutoff date of the PCAS beneficiaries lists. Under the above premise to the internal of this Secretariat it has been estimated that those structures that by the date of the socioeconomic survey, were without occupation, are not subject to any compensation, therefore we will proceed with its demolition in response to MOP Resolution No. 001-11, dated January 5, 2011, through which it authorizes the Secretariat of the Metro of Panama to use the public easement area of the Line 1 of the Metro of Panama and other provisions. The criteria to be beneficiary of the Social Plan, are similar to the above, being worth adding that the choice pillar will be determined on the basis of the given socioeconomic profile, in which case it is understood that this is directed only for those that have a hard social and economic condition, previously supported in the social study of each case.

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4.4. Study of titles The necessary documents for the study of titles are collected (deeds, promises of sales, receipts for payments of property taxes, utilities and other relevant documents). It is produced a certificate of receipt of these documents stating the type of document delivered and the date. With this achieved: 

Identify the actual right holders.



Identify the legal situations that, eventually, could block the process.

The titles of each of the affected properties are being studied, reconciling the legal land registry information. Lists of holders of real rights are being made, indicating the limitations and taxes on the properties. Data from studies of titles, shelf list, appraisals and social data on each of the properties are being reconciled and cases that require special handling (shareholders, beneficial owners of fact, etc.) are being identified.

4.5. Valuation of property The obvious goal of this is to determine the market value of the properties required. For this purpose the following activities are performed: 

The appraisal of the affected properties with entities under national legislation is coordinated.



Owners and residents in the area are informed on the dates and schedules of the appraisers visit.



Developments of real estate valuations, taking into account the particular physical property losses.



The consolidation and approval of topographic records and appraisals to start the property acquisition are performed.

20


4.6. Identification of the impact and categories of the displaced groups The impacts of a displacement in homeowners and residents in properties required for the Project are identified and analyzed, and the impacts the vendors and informal workers who carry out their livelihood activities in the area affected by the Project will face. From this analysis and weighting of impacts are defined the corresponding mitigation and compensation.

The possession and use of the property, the existence of economic activities in the premises or in the public space of the affected area, the existence of industries and workshops, access to education and health services, social networks of mutual aid and reciprocity are dimensions of the socio-economic context

that

record

determinant

impacts

which

makes

the

possible

impoverishment of the population.

4.7. Analysis and selection of solution alternatives The alternatives that are proposed to the affected will be adjusted to specific circumstances of each affection.

Considering one of the main objectives of the PCAS, such as to minimize the affections and the relocations, in those cases in which it is necessary, the Secretariat of the Metro, in collaboration with the corresponding Municipality, consider the alternative of individual resettlement in which the owner who acquires a property with the money received by the payment of the value set in the appraisal of the structure.

These measures will make possible to recover the public space for all citizens and improve the streetscape and provide a better business and labor environment to employers currently located in the easement.

In the cases in which it has been identified individuals or groups that due to their social, cultural, economic or psychological conditions result more vulnerable

21


than others to the impacts generated by the movement, they will receive special attention to restore their socioeconomic status.

In cases of people who do not hold title to the home or the place it should clearly be defined the legal situation in relation to the property concerned and, according to the principles of restoring the socio-economic status and inclusion in accordance with which must design the compensation and social assistance plans, which will generate alternatives.

4.8. Implementation of a Software for the Management of the Compensation Process. The SMP, made a significant investment, intended to systematize the entire process of survey and identification of the affected and comprehensive control and monitoring of the expropriation procedures. For such purposes, it had the services of a Spanish company with extensive expertise in processes of Expropriations of projects Metro type, establishing not only the aforementioned automation but also training on issues related to expropriations to the SMP staff. The staff of the company Alia collaborated and coordinated for 5 weeks, in conjunction with SMP, the strategies needed to define and articulate the process of compensation of the Project.

5.

COMMUNICATION AND DISCLOSURE PLAN.

To ensure a sustainable information exchange with adjacent communities to Line 1, the Secretariat of the Metro of Panama will apply the communication and disclosure of the project. According to the different stages and audiences of the project.

22


Previous Stage: Studies and Tender This first year, it has held a steady report job detailing the analysis and studies that the Secretariat of the Metro of Panama did in order to conceptualize the work. Among the major milestones of communication include: an international competition to identify the logo of the Metro, the tender for the construction and commissioning of Line 1, and the tender for choosing the Project Manager. Also, it was developed a process of public consultation for the Environmental Impact Study, which drew the participation of large numbers of people through community meetings, and information journeys in high traffic areas near the route of Line 1. The consultation showed that the Metro is highly regarded among communities located along the route of Line 1, and there is concern about the damages that could generate the work during its construction stage for residents and businesses. The Secretariat of the Metro also took this step to enhance their online presence; each day becomes more accessible to Panamanian citizenship. A website was designed and enabled, which now receives over 300 visitors per day, as well as participation in social networks like facebook and YouTube. In it is encouraged to take advantage of the email [email protected] to ask questions or send suggestions and recommendations to the staff of the Secretariat. Informative Visits were made to various municipal representatives, and invitations to visit the facilities of the SMP and explain in great detail the scope of the Project and the need to perform tasks together. Repercussions of the Metro: Prior to Start of Construction Once the final design of the construction Project and its approval by the Secretariat of the Metro of Panama is available, it will proceed to activate communication initiatives specifically referred to those affected, including: 

Informative Conferences by Country Subdivision: It was called by leafleting to the potentially affected to continuous informative meetings with the Committee of the Metro Repercussions throughout the process. 23




Community Care Center: Information centers will be established during the compensation process in areas accessible to residents of communities adjacent to Line 1, with partners able to provide details about the process and the project itself.



Phone Line: A tool that allows residents of the areas of direct influence of Line 1, and also to those affected, a direct approach with people who manage full and updated information of the work and all the processes involved.



Communication Materials: Flyers and pamphlets will be developed to provide clear information to stakeholders on the various steps in the compensation process.



Email: The Secretariat of the Metro enabled a specific email address to help

people

who

will

be

directly

affected

during

construction

[email protected] 

Other means of Government: The National Government has the telephone line 311, whose staff will guide citizens who require any information.



Media: The Secretariat of the Metro will keep informed of all the media, both national and regional authorities, about the compensation process and progress of the Project to enhance information exchange that takes place through them.

Beginning of the Construction: At the community level information days will take place together with school sites and will launch a MetroMovil that visits the main sites of convergence in the communities. The objective of this stage of communication is generating a sense of ownership of the work so as to be put into operation the users make the most of this mean of communication, while respecting the rights of other users.

24


For these initiatives the Secretariat of the Metro of Panama will be getting advise from the team of communication and community relations of the Metro of Medellin, who carried out an effective work of communication and citizen participation. This stage also includes a critical contractor participation at community level. Specifically for the issue of conflict resolution in order to develop an awareness campaign on the media to be used by residents of communities adjacent to Line 1 to attend their requests. The Secretariat of the Metro recognizes the importance of keeping the citizens informed at all times, with special priority to those who carry out their daily routine in the communities adjacent to Line 1, therefore there are information offices in collaboration with the Municipalities affected Panama and San Miguelito, and its own offices in Building 714 of Balboa, Country Subdivision of Ancon, Panama City.

6.

BASIC NOTIONS ABOUT THE COMPESATION PROCEDURE

6.1. Previous concepts. Affection Criteria. The metro bill provides in its article 21, like the bill of the Manual of Procedures for compensations, a concept about what should be understood in the future as affected of the Project: "all strips of land and structures, which are included within the Circles of influence of the Metro, are physically required for the design, construction, management, operation and maintenance work. " Also may be considered as affected the strips of land required for the adequacy or enabling of constructive, services areas and other activity during the construction, operation or maintenance of the work to warrant off-site physical space or direct line of influence. Finally, it will be considered indirect affected the owners of the strips of land or 25


structures that the Secretariat determines as necessary for the possible relocation of those directly affected, for the purposes of acquisition, compensation and expropriation. Land status. The Line 1 of the Metro of Panama will run mostly on existing easement track areas, so the number of affections whose status is of titled lands along the route of the Metro, is quite small. However in the development of this Plan we should include how to deal with all the possibilities. Namely: I. Property: To be determined, under this concept, is essentially the strip of

land (with or without improvements) that is likely to be identified at the public registry of the property, product to be properly registered in that institution. II. Possessory Rights. In concrete terms, possessory right is nothing more

than that derived from the use and enjoyment of a property with the intention of the owner. It is understood in this vein, which might argue have a possessory right, has no ownership of it and even possibly in some cases, a possessory right can become a property Right, by itself, the possession is not equivalent to property, and therefore is not sustainable in principle on the basis of the current legislation, the compensation of the land on which it maintains only a possessory right. III. Easement. It is imperative that once distinguished if the affected area is

State owned or private property. In the first case, there would be a valid element, from the strictest legality, to support the recognition of economic value or equivalent compensation to the extent that the land does not belong. In the case of the easement, it is well-known for the vast majority of the settlers on it, that they are doing it on exclusive right area of the State, and even in the most extreme cases contained in the authorizations of the state and / or municipal agencies, in the same it is stated that should proceed to relocate on behalf of the affected when the strip of land is required by the State. IV. Improvements / Crop. In the process Compensation is implicit the

recognition of any improvements that is affected, and any type of crops 26


present, whether it is on the titled property, possessory right or easement, provided that the eligibility criteria apply. Survey of the polygons of the affected premises (property). It is relevant in the compensation process to distinguish accurately the area that will be affected from a particular property, understanding that the only real way to know the degree of involvement and hence the real property appraisal, in addition to being a requisite for the purpose of transferring the property to the nation through the planes of segregation. Public Information Process. The information that the SMP manages due to the clearing process will be provided without restriction to each affected as it relates to the records of his/her involvement. The information that is general and does not refer to a specific case, may at the discretion of the SMP, based on the provisions of law, be shared with third parties upon request. Notice. Integral part of the compensation process is to ensure that originates formal and official communication from the State to those affected so as to give certainty to those who belong to that group. Socioeconomic Survey. In order to establish a social and economic profile of the communities affected by the Project, identify potentially sensitive human groups and develop a comprehensive monitoring plan and social assistance, will be integrated as part of the process of conducting the socioeconomic survey or census, in which it will be determined the data to conclude on the alternatives described above. 6.2. General Compensation Procedure. a) Public Easement  The contractor, with the approval of the Engineering staff of the SMP and PM, will set the design and identify the structures or improvements that will be affected.

27


 The process of notifying people that occupy the affected structures will begin.  At the same time it will be set up a socio-economic report that describes the economic and social situation of those affected. The social surveys will be prepared and made by the team of the Social Area of SMP and they will also be in charge of the realization of it, with support staff as deemed necessary. It will be key to the granting of Supplemental Social Assistance, because at that time it is consulted and referred the case to the institution that provides the services of social interest to the affected.  The Land Registry and Assets of the National Land Authority and the Comptroller General of the Republic, in accordance with the provisions of Law 22 of 2006, will visit the structures affected and present each its appraisal report on improvements and crops that exist in accordance with the technical and legal criteria as appropriate.  Once the appraisals are made, the employees of the SMP will proceed with the submission of a proposal for compensation result of the average of both appraisals and the verification of the compliance of the eligibility criteria.  The

affected

and

the

SMP,

will

sign

a

memorandum

of

understanding, where the amounts to cancel the number of budget and other commitments assumed by the parties are set and shall proceed once is signed with the expeditious payment to each one of the affected, without the typical delays of the administrative bureaucracy.  From the date of receipt of the Memorandum of Understanding, the affected whose commercial structure are located on easement shall, on the date indicated by the SMP, to vacate the easement.  In the event that the affected disagrees with the values established in 28


the appraisal reports, shall be entitled only once for reconsideration.  Six months after the release of the structure, the social SMP team will contact the affected to make a follow-up visit in order to identify the socioeconomic status of the unit and assess the efficiency of the equipment. b) Private property  The contractor, with the approval of the Engineering staff of the SMP and MP, will set the design and identify the structures or improvements that will be affected.  The process of notifying people who owned the Estates will start.  At the same time it will be set up a socio-economic report that describes the economic and social situation of those affected. The social surveys will be prepared and made by the team of the Social Area of SMP and they will also be in charge of the realization of the same, with support staff deemed necessary. It will be key for the granting of the Complementary Social Assistance.  It will be drawn up the official level of segregation for the affection of the property, according to information collected by SMP from those affected during the activities described in the points 2 and 3 of this procedure. These plans must contain a description of the polygon countersigned by a Surveyor, after the approvals from the Ministry of Housing and the National Department of Land Registry and Assets.  The Department of Land Registry and Assets of the National Land Authority and the Comptroller General of the Republic, in accordance with the provisions of Law 22 of 2006, will visit the structures affected and present each one its appraisal report on the improvements and crops that exist in accordance with the technical and legal criteria as appropriate.  Once the appraisals made it will proceed, by the employees of the 29


SMP, the submission of a proposal for compensation result of the average of both appraisals and verification of compliance with the eligibility criteria.  The affected and the SMP, will sign the minutes of the transfer to the Nation, which sets the amounts to be cancelled, the number of budget and other commitments assumed by the parts and shall be formalized once the registration of the fast payment to each of those affected, without the typical delays of the administrative bureaucracy.  From the registration of the deed of transfer to the Nation on the public registry, the affected must at the date indicated by the SMP, to vacate the property.  In the event that the affected part disagrees with the values established in the appraisal reports, shall be entitled only once for reconsideration.  If the Agreement is not reached prior to compliance with these dates, the relevant decree of Expropriation must be produced. Those strips of land used as playing fields, public use areas or land with or without structures, which have not been, located the landlord or owner, shall be occupied immediately.  Exception will be required in the selection procedure of the public procurement and authorization for the direct contracting with the owner. c) Expropriation As already mentioned, our National Constitution establishes the power of the State's total or partial taking of private property, in case of works involving a collective benefit. For this purpose the highest law, offers two legal administration figures, known as ordinary Expropriation (with trial prior to the occupation Article 49) and the Extraordinary Expropriation (occupancy previously Article 51). 30


Specifically, Article 48 of the current National Constitution provides for the ordinary expropriation, which can be ordered under the Constitution, for reasons of Public Use or Social Interest. This type of expropriation would imply a special trial and compensation, all prior to the occupation of the property. In concrete terms is merely a forced judicial negotiation. The procedure established for this process is set out in Law 57 of 1946, which developed the Article 46 of the Constitution (now Article 48) which sets out in concrete terms that a Court of general Jurisdiction will manage according to their common procedures the process to establish the value of compensation. Just are set some basic rules that the court must take into account, as it is to consider when setting the amount to compensate the assessed value of the property two years before the work is performed. In the extraordinary case of expropriation, which factor is its origin in the event of "urgent" social interest the law 57 of 1946 acknowledges, that the State may proceed to take possession of the property immediately. This point is understood as before to any trial, which results in practical benefits for the needs of the vast majority of the Public Works, whose implementation is urgently required by the communities. However, it is still appropriate to refer that even with the taking of the property prior to any agreement, it must be defined the payable amount and the time of actual payment to the expropriated, thereby safeguarding the minimum guarantees for the affected. At first the common procedure allows to start the expropriation process for such recognition. However, if after taking the asset, the parts agree on the value, we find no legal impediment, in which the parts omit to unnecessarily submit, to the court system to define these values. The Attorney General of the Administration has shared such an approach in consultation by the Ministry of Public Works, which is beneficial for the clarity of this issue, whether the criteria are not binding. d) Involuntary Resettlement The figure of the Resettlement has been considered as a possibility to consider, in those cases in which their specific characteristics, and in order to maximize 31


the social role of the Project, there is no other option for inclusion in the Compensation Plan. Due to current legislation and the limitations these imposes on those occupants of the road easement that are in a more precarious position in terms of display of location permit, they could not be compensated in any way. That is why; in these cases have been articulated negotiations and contacts with the Municipalities involved in the Project (Panama and San Miguelito) to the effect of looking alternative solutions. Among these would be the Resettlement by the search by the Municipality and the provision of land needed for the relocation of the affected group, in order that they can continue their activity. An example of the relocations carried out by the Municipality of Panama to a group of people affected by the Line 1 of the Metro at the Plaza 5 de Mayo.

7.

SOCIAL INTEREST PLAN

7.1. Analysis of the Social Interest Impact and Magnitude First the preliminary analysis of the maximum number affected could cause the Project, coinciding with one of the key objectives of the Social Assistance Plan, leads us to the conclusion that there is no substantial important impact from the quantitative point of view. This is, whenever we refer to densely populated areas or communities in which the relocation of groups that in any case will not exceed 150 people within a District with a population of more than 100 000 inhabitants. On the other hand, it is good to establish that a majority group of the affected structures are aimed for business, and in many cases the owner of the local moves from other communities to exercise their trade, concluding that there is not necessarily a deep rooted relationship or affected with the affected community.

Similarly, the Metro design adjustments carried out by staff of Engineering of the SMP, have allowed foreseeing, even tentatively, different scenarios that could potentially result in reductions of a significant number of people affected. This allows us to adapt to one of the most important guidelines of the IBD 32


lineaments with respect to the Resettlement Policies, such as to minimize the amount of affections.

In the same vein, the preliminary identification of the community affected does not present us a scenario where there are circumstances of social, economic, ethnic, gender, creed, age, etc. such as the prevalent presence of groups identified as vulnerable.

Still less is foreseen the possibility that abstract issues arise which may lead to demands

not

subject

to

be

addressed

by

the

Management,

while

simultaneously are channeled with the necessary time potential options that allow, at the time, that the community can absorbed in their space to groups that need to be relocated.

Thus, the foregoing discharges and the evaluation of them with the parameters established in the Operational Policies of the Inter-American Development Bank, lead us to conclude that it is significantly under the impact that will eventually represent the communities affected by the construction of this work as a result of not giving the audience of any potential damage factors described throughout this period (dismantling of communities or social networks, vulnerability of affected groups, inability to replace affected assets or property, etc).

7.2. Impoverishment risk analysis. The preliminary assessment of the damages likely the Metro rise, yields significant results in defining the Plan to be implemented. Thus, 95% of the official survey made based on socio-economic survey is distinguished for being dedicated to commercial structures. The remaining 5% is divided between residential, religious and sports structures, etc. This situation is due substantially that the Project is designed to run on road easement, significantly reducing the range of impact on private property. This, coupled with the fact that the easement has traditionally been an important source of tax collections 33


for municipalities, who are the main articulators of the "legalized" invasion process of the road easements by small and medium businesses, clearly explains the reason for the large number of structures in road easement. Especially when the law regulates and limits this practice, with a certain fact that not all cases of structures (business) have the appropriate road easement authorization. And those that do exist usually have been observed that their presence is limited to the time that the State requires its use and therefore the constructions or developments of structures in the same should be limited.

These businesses generally are characterized by informality, allowing ensuring daily survival, which must necessarily distinguish, in general, within the group of people or families with low incomes. Now, in order to know the details of the socioeconomic status of the affected groups, and to carry out a comparative analysis or worsening of this condition is necessary, which has been prepared the corresponding social profile, with which we identify based on certain objective parameters their true socioeconomic status. A priori, we can distinguish the first line of action in this process, implying the recognition or payment of a pecuniary nature of the structures that would be affected, so that affected him/herself defines the area of relocation of their business.

Likewise, this Plan involves the opening of compensation as likely as possible, as long as it is ensured the balance and consistency with the economic values that necessarily will have to set the property affected, and any other criteria to maintain a factual and legal livelihood, so that its recognition is feasible. Based on this criterion will be permissible as alternate routes to ensure the sustainability of the minimum living conditions of each of those affected, providing alternative compensation, in collaboration with the due Municipality, such as directly relocation of commercial affected in collective commercial centers, in which a large group of affected structures may under stable conditions, adequate accessibility, health, utilities, etc., equal to or higher than before, to continue their economic activities, so that will maintain full social and economic status. Not necessarily for concrete development of the same type of activity. With proper formulation of the survey of social and economic profile, it could probably determine that the conditions of maximum development and 34


utilization of the capabilities of the affected are directed to a different activity to that exerted when the damage, so with alternative processes considered within the criteria for compensation (training, loans, etc.) can achieve the desired results. It is annexed a model of Cooperation Agreement currently develop by various Institutions and the SMP, to try different types of Programs and Social Assistance

Measures

to

vulnerable

groups

for

the

socio-economic

development.

Then, accompanied a summary table with Social Assistance Programs sponsored by various Organizations and Institutions, with which Cooperation Agreements are being developed.

35


Institution

Program

Description Guide, train and encourage the

Fami Company

creation of family businesses. For people with disabilities and their families. Contribute to improve the quality of life

National Disability Secretariat (SENADIS – due to its acronym in

Economic Grants

Spanish)

for the people with disabilities benefiting from the program through an economic subsidy. Allocate and manage State Funds

FODIS

aimed at financing procurement and provision of technical aids for people with disabilities. Private company offering scholarships

Business Sponsorship

to young people who work 4 hours a

(Padrinos Empresarios)

day, depending on the school day they attend.

Ministry of Social Development (MIDES – due to its acronym in

100 for the 70s

Spanish)

(100 a los 70)

Economic transfer of 100 dollars to the elderly from the age of 70 without retirement and pensions.

Move for Panama

Program that facilitates the learning of

(Muévete por Panamá)

reading and writing to illiterate adults.

My First Job (Mi Primer Empleo)

Program that provides the opportunity for career development of young people.

Ministry of Labor and Workforce Development (MITRADEL – due to its acronym Spanish) Department dedicated to the stock of SERPE

direct jobs, to market all sorts of options.

Business Opportunities, Authority of the Small and Medium Mobile Plants Enterprises (AMPYME – due to its acronym in Spanish)

Capital Seed (Capital Semilla)

Training new entrepreneurs: dehydrated, beauty, canned seafood, fried foods, dairy, bakery, crafts. A competitive fund that seeks to promote and support the generation of new business initiatives.

36


National Institute of Vocational

Identify the needs of CLU or

Training for Human Development

Technical Training

employment in the area and provide

(INADEH – due to its acronym in

Courses

technical courses for the inhabitants of

Spanish)

the area. School Subsidy for people of low

Institute for Training and Development of Human

economic resources. There are Scholarships

Resources (IFHARU)

Extreme Poverty Grants, College Scholarships, Athletic Scholarships, and Scholarships for Grade.

8.

INSTITUTIONAL RESPONSABILITIES

The responsibilities of the Compensation and Social Assistance process are on the SMP and they are: •

Run the Compensation Plan and ensure care for those affected by social assistance programs of the various institutions.

•

Oversee compliance with the Compensation and Social Assistance Plan.

•

Verify the implementation of complaints procedures.

•

Incorporating Social Assessment and Census of the neighborhoods as indicators of the baseline of the Compensation and Social Assistance Plan.

•

Run the Compensation and Social Assistance Plan and deal negotiation, purchase and payment strategies of land to be affected.

•

Establish the activities schedules to be developed within the Project.

•

Apply the rules of complaints and claims of the Plan.

•

Address and resolve the conflicts that arise during and after implementation of the Plan.

•

All those emanating from this Framework of Compensation and Social Assistance.

37


9.

ATTACHMENTS OF THE COMPENSATION PROCESSES 1. Preliminary Inventory of Damages URS. 2. Total of Affections Control Table. 3. Budget of the SMP for the issue of affectations. 4. Socioeconomic Study. 5. Work Schedule. 6. Model of Collaboration Agreement.

38