The Process of Social Impact Assessment (SIA), Module 3 1

MODULE 3: BASELINE DATA AND MITIGATION MEASURES

MODULE 3: baseline data and mitigation measures ...............................................................1

3.1 BASELINE DATA COLLECTION..............................................................................1
3.1.1 Socio-economic Surveys ......................................................................................1
3.1.2 Complementary Data Collection Methods ............................................................5
3.2 PREVENTATIVE MITIGATION MEASURES ...........................................................9
3.2.1 Incorporation of Social Concerns..........................................................................9
3.2.2 Requirements for Contractors.............................................................................13
3.3 Reducing, Offsetting or Eliminating Negative Impacts............................................18
3.3.1 Preventative Programmes ..................................................................................18
3.3.2 Mitigation Measures for Reducing Negative Effects ...........................................20
3.4 Compensation.........................................................................................................23
3.4.1 Resettlement.......................................................................................................23
3.4.2 Loss of Production ..............................................................................................24
3.5 Enhancing Benefits.................................................................................................26
3.5.1 Project related benefits .......................................................................................26
3.5.2 Social Development Programmes ......................................................................27

3.1 BASELINE DATA COLLECTION

3.1.1 Socio-economic Surveys

3.1.1.1 Size and Scope of Data Collection

• A general socio-economic survey or questionnaire often provide the starting point for
social baseline studies
• Optimum ignorance – only as much data as is the general rule when it comes to amount
of data required for analysis but financial and time constraints are equally important
• It is necessary to define the project area and study area subjects and to select
representative sample of communities
• Is quantitative data required or is qualitative data adequate? Usually a combination of the
two types of data is required

Socio-economic baseline studies are important in order to understand local conditions such
that expected impacts of the hydropower or dam project can be determined in advance. In
addition, these baseline studies will be vital in monitoring the impacts of the project as well as
the mitigation measures developed to deal with impacts. Without a good baseline one cannot
measure the changes that occur, either negative impacts or benefits to affected populations.

Different means of data collection may be appropriate for the different study areas. A general
socio-economic survey often provides the starting point for social baseline studies and gives
the widest range of information about PAPs in the form of quantitative data, which is data that
can be rendered into numbers for analysis and comparison. Questionnaires and surveys are
often used for this type of collecting data. The results are often displayed in the form of tables
with accompanying text explanations.

A number of dissimilar factors limit the scope of the data collection:

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1. From the point of view of professional analysis, the principles of optimum ignorance –
only as much data as is necessary should be collected in order to facilitate an analysis of
the material.
2. The size and scope of data collection may be determined by the resources available to
carry out the study and this should be taken into account when planning what is collected
and over what period of time, that is in terms of inputs.
3. Important to define the project area and study area subjects, that is Direct Impact Zone
and Indirect Impact Zone. It is vital that a representative sample of communities and
individuals are included in the study. This can be done by taking a selection of
communities and a test group outside of the DIZ.

Quantitative data is required and forms the basis for the analysis of social conditions in a
project area. However, qualitative data is also important and should be sought to give a
realistic and full picture of the situation on the ground. Usually a combination of the two
types of data is required for a hydropower project, for impact analysis, mitigation measures
and monitoring.
3.1.1.2 Necessary Background and Information

• It is imperative that socio-economic survey be designed with project features and

objectives in mind
• A general study of a project region will result in a lack of focus, limitation for analysis and
large amounts of irrelevant data
• Social specialists should be properly briefed by technical staff, project engineers and
other planners in advance of studies

A socio-economic survey must be a relevant exercise in relation to the project. It is

imperative that it be designed with project features and objectives in mind so as to ensure
that negative impacts can be offset or mitigated and benefits enhanced. The objectives and
goals of such surveys must be clear and spelt out to all those undertaking the work,
especially specialists who are brought in from institutions and may not be familiar with project
work.

A general study of a project region is not what is required for a SIA or EIA. This will result in a
lack of focus, limitation for analysis and large amounts of irrelevant data. A lack of focus on
project impacts could result in an inadequate analysis of impacts and the need for further or
supplementary studies or, even worse, an implementation of a plan that is seriously flawed. If
there is a large amount of raw data, not enough time will be available for analysis and the
result will be vast quantities of baseline material but little emphasis on the analysis of
impacts, suggested mitigation measures, social indicators for monitoring and benefits for
PAPs. It is a badly written SIA or EIA if the baseline chapter is significantly larger than the
other chapters. This could imply that not enough time has been spent on analysis and that
there has been a lack of focus on impacts and project implementation.

There is a tendency among social specialists that are not familiar with projects and come
from academic institutions to focus on baseline data and to study the context of this data.
Specialists should be properly briefed by technical staff, project engineers and other planners
in advance of studies. A site visit or visits to projects that are being constructed or in
operation is also a useful exercise for specialists unfamiliar with all the aspects of
hydropower development.

3.1.1.3 Contents of Surveys

Social Impact Assessments usually cover the following main areas:

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• demography
• socio-economics
• health
• cultural heritage and archaeology
• use of natural resources

A socio-economic survey consists of a range of social aspects, covering all essential

activities that might be affected by the project in direct and indirect ways. Each project
specifications and presumed impacts (from feasibility studies and discussions with technical
designers) and the contents of the surveys will need adjusting accordingly. WB and other
donor guidelines require such baseline surveys for resettlement plans (compensation,
relocation and rehabilitation) and ethnic minority development plans (OP 4.12 and OD 4.30).
Below is a list of the main areas that are likely to be affected.

Demography refers to a statistical account of the population of the project area. This includes
population according to age, ethnic composition, household composition, mortality rates,
family size, density of settlements or towns and population movements (nomadic or semi-
nomadic patterns) and migration patterns (in- and out-migration). The size of the population
and its composition are important in terms of establishing a relationship to natural resources
and predicting the impacts of the population increase due to labour camps and camp
followers.

Socio-economics refers to all activities related to the maintenance of the household and local
economics and how they are linked to regional and national development. This work is often
carried out by combining the disciplines of sociology and social economics. The usual
starting point is the household or family as the small socio-economic unit. Information is
required on sources of income, expenditures, skill training, education levels and division of
labour (gender division and support from kinship system). In addition, information the local
economy in terms of production, sources of income, services and tourism, imported and
exported goods, natural resources, transportation systems, market access, educational
institutions and literacy, etc. This information is necessary since hydropower development
most often brings rapid change and the general socio-economic situation will be altered
considerably. In order to offset and reduce negative aspects and enhance benefits, a proper
understanding of the present situation is necessary. In the case of resettlement, the
household profiles will determine if income restoration and development programmes have
reached their targets.

Health data is essential since it is related to the standard of living and the safety and life
expectancy of communities, and in some cases concerns mortality. Health data on most
common diseases, mortality rates (infant and maternal mortality rates as well as mortality
from accidents and diseases), standards and manning of local health facilities, referral
systems and an overview of health awareness (sanitation practices, STDs, etc.) is all
required. Population influx and negative impacts on the environment due to the project could
affect the health of PAPs and designing measures to cope must take its starting point in the
general health situation on the ground. Survey should be carried out by medically qualified
personnel.

Cultural heritage refers to a range of characteristics related to cultural practices and beliefs
under the discipline of social or cultural anthropology. This could consist of kinship systems
(marriage, inheritance, social responsibilities, etc.), religious beliefs, and ethnic identity and
history (attachment to a specific territory and relations to neighbouring groups). It is important
to chart all important religious sites, shrines, structures and landscape features that may be

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affected by the project and require compensation or relocation. In the case of resettlement,
new sites, livelihood systems and social cohesion are key factors. Archaeology is a related
discipline but concentrated on documentation of the past. In terms of project impacts, sites
need to be check in terms of previous studies and findings if any and by preliminary
investigations (interviews with local people), review of available literature and sources and
digs to affirm assumptions, if required.

Th use of natural resources is central to assessing project impacts on communities since the
project is bound to impact negatively in some manner either through a loss of land,
production or access to natural resources for livelihood. Specialists in the fields of agriculture,
livelihood development, community development and the various disciplines in environmental
studies may be required. It is important to gather information on local use of water (drinking
sources, fishing, irrigation, etc.), forests (Non-Timber Forest Products) and land (cultivation).
All these natural resources could be affected and it is necessary to document present uses in
order to calculate losses and mitigation measures as well as aiming to develop the area
economically and in a sustainable manner after the project is in operation.

All socio-economic surveys should be conducted in co-operation with government line

agencies and relevant departments as well as local community organisations and NGOs. In
addition, local specialists from national universities and institutions may also provide required
knowledge and skills.

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3.1.2 Complementary Data Collection Methods

3.1.2.1 Semi-structured Interviews

• Semi-structured interviews involve the identification of key themes and concerns and
allowing individuals and groups to discuss these in public or private
• Interviews with specialists and leaders in communities can provide additional information
about socio-economics, local politics, cultural, resource use and attitudes towards the
project
• Results of interviews should be used as supplementary material for interpreting
quantitative data from surveys

Semi-structured interviews are a common method of data collecting that supplements the
information obtained through structured interviews. The aim here is to involve PAPs and
other people in a discussion of key themes and concerns that have been identified in the
scoping or feasibility studies. Many of these themes such as income sources may need
further elaboration with qualitative data. Situations must be such that individuals and groups
feel at ease to discuss these topics in public, in front of their fellow villagers or
townsmen/women or sometimes private interviews may reveal more facts and a better
understanding of circumstances.

In particular, interviews with specialists and leaders in communities can provide additional
information about a range of topics since these people have more influence and knowledge
about the community in general. Although one should obtain a range of opinions by
interviewing a variety of informants in terms of class, economic and social status, gender and
age groups, etc., leaders are essential for acquiring insights into socio-economics, local
politics, cultural, resource use and attitudes towards the project.

Results of interviews should be written up in a manner that allows for analysis to be used to
supplement material for interpreting quantitative data from surveys. In general, quantitative
surveys tend to reveal ‘normative’ values, which are results that are acceptable or considered
good by the society as a whole. Qualitative data from interviews and other techniques tends
to give more nuanced information and how people behave in practice. These two types of
data need to be examined side by side for a better understanding of the social reality on the
ground.

3.1.2.2 Participatory Observation

• Participant observation is an anthropological method that aims at immersing oneself in

local life in order to understand how communities function
• Documentation can be difficult due to the confidential and subjective nature of information
collected
• Participant observation requires adequate time and often researchers who are already
familiar with the area, culture and people of a region

Participant observation is an anthropological method that has been developed for long-term
studies of communities. The technique involves immersing oneself in local life in order to

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understand how communities function and this is based on the belief that human societies
are complex and only long periods of time living side by side with people, learning the
language and customs, can one obtain a deeper understanding of what is going on and why.
Aspects of participant observation, however, are often used by anthropologists collecting
data on communities about to be impacted by infrastructure projects or other development
initiatives.

Due to the confidential and subjective nature of information collected, documentation of

findings as part of an EIA or SIA can be difficult. It is important to analyse the information
selectively, concentrating on essential themes and concerns of the PAPs and provide
insights into these issues. The information should be primarily used to enhance the
quantitative data from the survey forms.

The challenge is how to use participant observation techniques in SIA. This technique usually
requires adequate time and often researchers should already be familiar with the area,
language, culture and customs of the region to be effective. One solution is to have
specialists who have worked with issues in the project area, usually from local universities or
experts from academic and research institutions aboard. Another option is select one or two
communities for a short-term but detailed investigation in addition to a board-based socio-
economic survey.

3.1.2.3 Rapid Rural Appraisal (RRA) Methods

• Rapid Rural Appraisal (RRA) was developed in the 1970’s and 80’s in an attempt to
improve the communication between local people and outsiders in the context of
development work
• RRA involves learning rapidly and directly from villagers and this information is then used
for baseline data and impact analysis
• Triangulation of data (i.e. using two different methods to view the same information) from
different sources is often used to verify data collected

Rapid Rural Appraisal (RRA) was developed in the 1970’s and 80’s by social scientists
working on an array of development projects. It was an attempt to improve the
communication between local people and outsiders in the context of development work. In
other words, to build a bridge between project planners and the people that were to be
directly affected by projects.

RRA involves learning rapidly and directly from villagers using a number of data collection
techniques, such as structured or semi-structured interviews, discussion groups and brief
visits to sites. Information is then used for baseline data and impact analysis, giving an
overall picture of the situation on the ground.

Because RRA involves a limited amount of time for data collection, it is important to use a
technique called ‘triangulation of data’. This involves using two or more different methods to
obtaining the same information, usually from different sources in order to verify the data
collected is correct. This is very important when calculating income sources, use of natural
resources and conducting asset surveys.

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3.1.2.4 Participatory Rural Appraisal (PRA) Methods

• Participatory Rural Appraisal (PRA) utilises a range of tools in order to obtain local
involvement in an exercise of communication and transfer of knowledge
• An important aspect of PRA is that it should be inclusive – involving local people as well
as marginal and vulnerable groups in project planning
• Ideally, a multi-disciplinary team with knowledge of the area’s conditions and
representing the diversity of socio-economic, gender and age backgrounds will be used
to carry out PRA

Participatory Rural Appraisal (PRA) built upon the basis of RRA but goes a step further since
it involves more time and involvement of local people in obtain knowledge about communities
and value systems. PRA utilises a range of tools in order to obtain local involvement in an
exercise of communication and transfer of knowledge:
• Semi-structured interviews
• Preference ranking aims at identifying priorities and ordering them in terms of importance
and responsibility
• Problem-tree discussions which involve starting with a problem situation and working
either backwards to trace its causes or forwards to work out solutions so that outlines
resemble the roots and the branches of a tree.
• Mapping and modelling to obtain information about livelihood systems, routines, use of
natural resources involves making diagrams and drawings of areas or interventions as a
means of concretising ideas and impressions

An important aspect of PRA is that it should be inclusive – involving marginal and vulnerable
groups such are women, children and the elderly. Data is collected and analysed by local
people with outsiders acting more as facilitators. PRA is sometimes referred to as
Participation, Reflection and Action, referring to the nature of involvement and joint effort of
obtaining data, analysing present problems and concerns and obtaining feedback on how
project impacts should be mitigated.
Ideally, a multi-disciplinary team with knowledge of the area’s conditions and representing
the diversity of backgrounds will be used to carry out PRA. This should include:

• Socio-economics
• Health specialists
• Education specialists
• Community development specialists
• Mixed gender teams
• Composition of different age groups
• Local and, if required, international experts

The early data collection stage also provides an important opportunity for two way flows of
information. Not only should it be used for obtaining information from the local community but

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also to provide them with information about the project and how they can be involved in the
process. Planning data collection in detail and co-ordinating efforts is vital.

It is important to be aware of the risk of project fatigue during the data collection stage.
Hydropower projects can take several years from the time when baseline studies are carried
out until construction actually starts and even longer until they enter into operation. Since
social baseline studies by necessity are carried out early in the project process there is a
potential risk of over-study. Communities that are continually required to respond to
questionnaires and interviews and prepare maps and inventories are likely to eventually lose
interest in the process.

It is also important to be aware of the risk of raising false hopes. Activities such as preparing
ideal village maps or identifying potential benefits of projects need to be carefully addressed
so as not to raise expectations that may not be met.

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3.2 PREVENTATIVE MITIGATION MEASURES

3.2.1 Incorporation of Social Concerns

3.2.1.1 Introduction to Mitigation Measures

• Mitigation measures are measures that could be applied to avoid, eliminate, or reduce the
magnitude (extent and duration) of negative impacts caused during construction and/or
operation of the hydropower project
• Mitigation measures are normally considered in connection with defined impacts, put
forward as recommendations in the EIA/SIA, included in project contracts, and
implemented in the project construction and operation phase
• There are four different types of mitigation measures:
1. Preventative Measures
2. Reducing, offsetting or eliminating Measures
3. Compensation
4. Enhancing Benefits

A vital part of an EIA is to consider appropriate mitigation measures that could be applied to
avoid, eliminate or reduce the magnitude (duration and extent) of negative impacts within
reasonable environmental and economic constraints. Timing is an important issue, as
mitigation measures identified during the EIA may be incorporated more economically and
successfully at the design stage than subsequently. If these measures are successful the
need for compensation may also be reduced or eliminated.

A project which successfully incorporates mitigation measures is generally considered more

environmentally successful than those which rely heavily on compensation. However,
construction of the project may result in certain unavoidable impacts or some impacts that
can not be mitigated to an acceptable level. Affected parties then need to be fully
compensated in a timely manner, either in terms of money or kind.

Mitigation measures can be divided into four categories, although the distinctions between
these categories may, at times, be difficult to determine. The four groups are:

• Incorporation of environmental and social concerns into project design and in

requirements to contractors (Theme 3.2);
• Mitigation measures to reduce or eliminate negative impacts caused by a project (Theme
3.3);
• Compensation (Theme 3.4); and
• Measures to optimise positive impacts and development opportunities (Theme 3.5).
Normally the developer is responsible for covering the costs of the first three categories and
internalising such costs into the economic and financial analysis. The last category does not
normally come under the responsibility of the developer. The development opportunities
should still be utilised and optimised through close co-operation with the appropriate
authorities in accordance with national strategies within each sector. Several of the

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development opportunities could be considered by donors for financing to exploit the

potential for development in the vicinity of the Project.

Mitigation measures should be prioritised in order to assist in decision making. The measures
should be clearly linked to the impacts described in the impact assessment, and most
attention paid to the most negative impacts. In order to simplify prioritising of mitigation
measures the anticipated effects of each mitigation measure should also be assessed, and
the remaining or residual impacts after implementation of mitigation measures should be
indicated. Mitigation measures to reduce or eliminate negative impacts caused by the project
can be separated into two categories: 1) Measures which are so important with regards to
mitigation of negative impacts that they should be put forward as conditions for approval of
the project. 2) Measures that are highly recommended but are not considered of such
importance that they are required to be set as conditions for project implementation.

A common strategy is to prevent impacts where possible, mitigate impacts where they can
not be prevented and compensate if impacts can not be entirely mitigated. Ideally, positive
impacts should also be enhanced.

3.2.1.2 Incorporation of Social Concerns in Project Design

• Incorporation of social concerns in project design is often the most effective means of
dealing with potential social impacts.
• It is important that the SIA be carried out early enough such that adjustments can be
incorporated into the project to reduce or even avoid certain negative social impacts
• In order for social concerns to be effectively incorporated in the project design it is
important that social scientists and project engineers communicate closely during the
design stage and keep each other informed about project progress and study findings

A very important part of the design of a hydropower project is clearly the placement of the
dam and thus potentially also a reservoir. Although this is usually dictated by technical issues
there may be to varying degrees the potential to also take into account the social
consequences of different designs. Careful placement of other project items such as camps,
quarries, access roads etc. may also be useful in terms of reducing the need for
resettlement. One of the most effective forms of mitigation through incorporation of social
concerns in project design is reducing the need for compensation and resettlement.

Incorporation of concerns into the project design should take place before finalisation of the
project. It is important that the SIA be carried out early enough such that adjustments can be
incorporated into the project technical design that can reduce or even avoid certain negative
social impacts. Some examples would be the placement of temporary camps that are not
near fields or residential areas or routing of temporary access roads that avoid built-up area
and reduce potential impacts (noise and air pollution).
In order for social concerns to be effectively incorporated in the project design it is important
that social scientists and project engineers work closely together. Good communicate
between these two fields of interest is essential during the design stage, and both sides
should keep each other informed about project progress and study findings. Regular
meetings during the final technical design planning and completion of SIA should be held for
optimal results.

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3.2.1.3 Reservoir versus run-of-the-river schemes

• Run-of the-river schemes usually require less or no inundation. This could mean that less
settlements, grazing or cultivated land being flooded
• Run-of-the-river schemes result in no, or sometimes less, changes in the natural flow of
the river and thus do not affect downstream users in the way reservoir projects usually do
• Water borne disease vectors such as shistosomiasis are less likely to be a problem
related to run-over-river schemes as conditions are less suitable.
• Reservoir schemes may provide additional benefits such as fisheries, transport or
recreation

3.2.1.4 Minimising Resettlement and Land Loss

• The most important principle regarding resettlement is the avoidance of all unnecessary
relocation of households given the fact that resettlement is considered a severe impact
and can cause considerable challenges in adjustments to new areas
• It is important that resettlement planning go hand in hand with technical project planning
so that only people who must be relocated form part of the resettlement plan
• Avoidance and minimisation of resettlement can be achieved through only through
consultation with local communities in advance, resulting in modifications to project
designs that can save the investor time and money in the long run

3.2.1.5 Aesthetic Considerations

• How project features will appear in the landscape can have important consequences in
terms of social acceptance and potential tourism
• In most cases, considerations in making some features less visible in a natural
surrounding, especially, in the case of areas of high biodiversity or population need to be
addressed in advance

Aesthetic considerations are difficult to assess, let alone calculate and put a value on since
they are at least partially subjective. However, how project features will appear in the
landscape can have important consequences in terms of social acceptance and potential
tourism. Although many groups may think project features represent progress and modern
technology at first, unless communities benefit directly this attitude could change to
resentment. Most communities are conservative when it comes to landscape since this
represents a familiarity and association with a certain history of people living there. Thus,
dramatic change in landscape should, therefore, be avoided as much as possible. It should
be remembered that many ethnic groups and indigenous peoples attach great importance to
landscape since they often embody myths and legends and create a strong sense of
belonging to an area.

In general, it can be said that considerations in making some features less visible in a natural
surrounding should be a goal of project planners. This is especially important in the case of
areas of high biodiversity or population. Avoidance of unnecessary features close to
populated areas can lead to minimising loss of land and compensation. There is also tourism
potential to consider. Many hydropower development schemes are located in or near

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biodiversity areas where conservation is an important issue. Eco-tourism is one way for
communities to earn money and to be involved with preserving the natural environment. This
is an excellent strategy when it comes to catchment management.

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3.2.2 Requirements for Contractors

3.2.2.1 Occupational Health and Safety

• It is often necessary to set requirements for contractors, which are legally binding, in
order to minimise health problems
• A means of monitoring and enforcing these requirements must also be put in place
• The set requirements usually deal most heavily with the welfare of the labour force but
may also impact the local community in general (i.e. traffic safety)

Larger construction projects such as hydropower projects and road projects entail many work
operation which may be a threat to the life and health of workers and people in the local
communities. Falls, falling objects, blasting operation, dust and hazardous gases, traffic
accidents, and more generally transmission of diseases are among the threats to human
welfare on a larger project.

In many countries, regulations and the institutional capacity to enforce regulations aimed at
safeguarding public health is often inadequate in view of the magnitude of the problems
related to large-scale construction project.

It is therefore often not feasible, at least in the early phases of construction works, to rely on
local government for the protection of workers health. Instead the more general
recommendations in the EIA, mandatory in most large-scale projects, can be developed first
into a more detailed EMP, then codified in tender documents, and finally formulated as
legally binding clauses in contracts of the various entrepreneurs of the project.

Such clauses should not only stipulate the preventative and mitigative measures as
precisely as possible, but also lay out how such measures should be implemented in terms of
responsibilities and personnel, and mechanisms to ensure enforcement. The most efficient
enforcement mechanisms are often economic sanctions, either in the form of outright
penalties, or in conditions that unmet conditions can be implemented on the contractor’s
account.

OHS requirements are usually focused on the welfare of project workers, but since local
authorities are often poorly equipped to protect the welfare of local communities from the
risks and public health impeach from the project is important to include considerations on
how some responsibilities for local communities can be included in the contractors contract.
Traffic accidents often represent a very real threat to local communities, and the risk of such
accidents can be reduced through training of drivers, good maintenance of the cars, speed
bumps, and clearance of vegetation as well as campaigns against drunk driving and
substance abuse. Other examples are sprinkling of dusty roads near settlements, and
campaigns against transmission of sexually transmitted diseases among construction worker
to avoid spread of such diseases from construction workers to local communities.

3.2.2.2 Preventative Health and Environmental Health Control by Contractor

Preventative public health and environmental health control measures are necessary due to
the influx of workers and camp followers and the negative impacts this could have on local
populations

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Preventative health programmes should include increased awareness of hygiene,

communicable diseases and STDs, including HIV/Aids

Pollution, waste disposal and clearing are common impacts on the local environmental which
have important bearings on public health.

Health facilities and services in many rural communities are usually barely suited to the need
of local people. Waste disposal facilities, sanitation and safe water supply is also often
inadequate to cater for even local needs. Location of large project in such areas usually
entails influx of a large influx of workers and their families. Unless health and basic water and
sanitation facilities are significantly upgraded the local system will quickly become
overloaded, resulting in strong negative impacts on public health conditions both for local
people, project workers and their families.

It is therefore in the interest of both local governments and project proponents to integrate
public health and environmental health into the planning for the construction phase (both with
regard to design and construction activities) and to make sure that such plans are
implemented in the construction period.

Public health concern should focus on upgrading health facilities and services, and also
provide the information required to empower local people and project workers to take care of
their own health. Preventative health care information strategies can be implemented by
project management to educate the project workforce and in collaboration with local health
authorities in order to reach local communities. Such training can make use of many different
means, but the training and information strategies should be adjusted to the local context in
terms of culture and socio-economic conditions. Production and distribution of leaflets, local
radio programs, use of choirs and other cultural groups, competitions and film shows are
examples of useful methods for delivery of public health information messages.

Facilities to ensure safe water supply, adequate sanitation facilities and proper handling of
solid and hazardous waste should normally be integrated in the design of civil works on a
project. Procedures for the maintenance and operation during construction, and for closing
down of such facilities upon completion of construction works, should also be prepared as
part of the design work. During construction there’s a need for supervision and monitoring to
make sure that oil traps, garbage dumps, water supply facilities and latrines are operated
according to specifications. Many project workers and their families, employment seekers
and businessmen may choose to settle in nearby villages.

Upgrading of basic environmental facilities in these villages is often required to prevent a

deterioration of sanitary conditions with impacts on public health. It is not unusual that such
works are conducted as a co-operation between local authorities and the project, with local
authorities being responsible for the operation and maintenance of such as water supply,
electricity supplies, public toilets and sewage treatment plants, waste disposal facilities etc. A
crucial issue is early involvement of user groups/stakeholder in design and organisation
issues to secure robust management of such facilities even after the end of the project
construction period, when support from the project is no longer available.

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3.2.2.3 Recruitment Procedures

• It is important to encourage the use of local labour and women to the extent possible
• Adequate training needs to be provided in order to qualify local labour for semi-skilled
and skilled posts on the project
• Working conditions and minimum wage requirements may need to be set.

The ratio of non-local to local labour is often a key issue in terms of impacts of a large
development project. Thus by taking measures to control this ratio it may also be possible to
reduce impacts. A project with a high proportion of immigrant labour will have a larger impact
on the demographics and socio-economic situation through a greater influx in workers and
dependants in the project area. This can impact on the housing market, local services and
infrastructure (i.e. health and education services). Such impacts may be reduced if local
labour can be used. This may, however, require training and skills development (a possible
project benefit in itself). Women are often a disadvantaged group in development projects,
and it is therefore frequently a political objective by governments and financing institution to
improve the condition for such groups. One possibility is to make special provisions in the
recruitment policies of a project to ensure that women are ensured a reasonable share of the
employment opportunities generated by a project.

Experience has shown that untrained local labour in rural areas is rarely qualified for
anything but unskilled jobs on a project (porters, other manual works, guards etc.). Training
may therefore be necessary to prepare locals for semi-skilled works such as drivers, and
operation of construction machinery and equipment. Design and implementation of on-the-
job training programs can therefore be required to satisfy demand for semi-skilled local
labour. Since large construction works are often by nature of long duration, they also offer
learning opportunities for skilled personnel, which should be exploited. Some financing
institutions offer scholarships and support for academic training, and by coupling such
arrangements with practical project work and have an exchange between academic and
practical training unique training opportunities can be provided. In this way, the benefit of the
project would be increased by local capacity building.

To protect workers and facilitate monitoring, employment should be based on simple, but
written contracts with each worker, stipulating responsibilities, working conditions and wage
level. Working conditions and wage level should be reasonable and according to
internationally agreed standards. Many countries have established minimum wage levels,
which must be adhered to.

3.2.2.4 Camp accommodation and regulations

• Camps should be located with due consideration to the welfare and safety of workers and
surrounding communities
• Adequate accommodation should be provided to all project personnel in line with
recruitment policies
• Special measures may be implemented to avoid establishing of squatter camps
• Alternative sources of energy for cooking (and heating) must be provided.

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Camps should be designed and located with due consideration to the welfare and safety of
workers and surrounding communities. Traffic is a key issue, as camps should be located in
way that do not expose workers and surrounding communities to unnecessary risks of traffic
accident, excessive dust and noise levels. Camps should also be designed and located to
avoid unreasonable noise levels from construction activities, exposure to blasting accidents,
and to ensure adequate security. It is also possible to design camps in ways, which prevent
attraction of large amounts of insects, and to keep camps and buildings from insects and
other problem animals (rats, snakes etc)

Adequate accommodation should be provided for all project workers, both in the construction
camps and in nearby communities: Safe water and sanitation is a prerequisite to safeguard
workers health, and accommodation should in addition keep people dry, warm and otherwise
conditions conducive to resting and sleeping. It has to be decided whether workers should be
allowed to bring their families or not and accommodation has to be provided accordingly.
Families should not be allowed in dormitories designed for single workers, and
accommodation should be according to social norms. If a “family friendly” policy is adopted,
clinics/dispensaries, and nurseries/schools should be included in camp design. In general
such a policy has could reduce social tensions and the spread of sexually transmitted
diseases often associated with large concentrations of single male workers.

Establishing of squatter camps is common for large-scale projects and their location and
condition is often unfortunate from for security, public health and logistical point of view.
Project planner should therefore be prepared for this eventuality, and agree with local
authorities on where to locate housing areas outside the camp, and how to enforce such
agreements. A minimum level of roads, water supply and sanitation should be established,
as well as health and education services. Law enforcement should also be extended to such
camps, as antisocial and criminal behaviour is often associated with this kind of communities.

Cooking and heating is in many countries based on wood fuel. With the heavy concentration
of people on large, scale project, this practise is not sustainable, and leads to depletion of
forest resources within walking distances. This can often be a matter of major controversy
with local communities dependent on these resources for their traditional way of living. It is
therefore recommended that alternative sources of energy be used for cooking and heating
usually kerosene burners. In practise this mean that houses and kitchens should be designed
for the use of such fuels, that kerosene burners and/or kerosene is subsidised, and that a
strict policy preventing the use of fuelwood is adopted and enforced.

3.2.2.5 Restoration of temporarily impacted areas

• Clean-up of camps should be a part of project completion procedures

• Degraded areas should be backfilled with topsoil and re-vegetated by natural means or
replanted
• Water sources polluted or degraded by project activities should be restored or alternative
water sources provided.
• Agricultural lands, with their irrigation and drainage systems should be restored, and
temporarily resettled communities re-established.

Some projects have applied a very ambitious practise of restoring temporarily used land
areas as far as possible to their natural conditions. In the Khimti project many temporary
houses were completely demolished and levelled to the ground, as were sewage tanks and
workshops etc. Garbage dumps were covered and all hazardous waste were removed from
site. In some instance sampling from workshop areas is required to demonstrate the absence

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of soil pollution which may leak into the groundwater and affect drinking water downstream
before certificate of completion can be issued.

Spoil areas and degraded areas should be covered with topsoil and re-vegetated. Such re-
vegetation often takes place naturally if the soil and water conditions are adequate, in other
cases active replanting may be necessary to speed up the re-vegetation. Introduction of
particular species, preferably local ones, suitable as pioneer species should be used.

Projects such as hydropower projects and tunnel project may alter the natural flow of
groundwater and surface water used for domestic purposes and for agriculture. Construction
activities may also affect the quality of drinking water through removal of vegetation and
project induced erosion. Hazardous substances may also pollute the ground and surface
water traditionally used for drinking water. In cases were a project has disturbed traditional
sources of drinking water and irrigation water it is reasonable to expected it to provide
alternative sources, usually in the forms of pumps/reservoirs and piped water. Riverbanks
and sources may be protected from landslides by gabions, geotextiles and re-vegetation.

Sometimes productive land and settlement areas have to be taken for construction purposes,
but may not be needed after completion of the construction period. Agricultural lands, with
their irrigation and drainage systems should then be restored, and temporarily resettled
communities re-established. Construction spoil, and well-managed top soils put safely aside
during construction activities may offer opportunities to improve agricultural lands. It is
important that such shifting of people back and forth be done in close co-operation and
preferably with the consent of affected people.

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3.3 Reducing, Offsetting or Eliminating Negative Impacts

3.3.1 Preventative Programmes

3.3.1.1 Types of Negative Impacts

• Despite considerable efforts to include measures in project design, there are usually
considerable impacts associated with most hydropower development projects
• Preventative programmes are an effective and often cheaper way of dealing with impacts
rather than thinking in terms of compensation
• Typical negative impacts are the loss of land, structures and production and social
impacts caused by population influx into project areas
• In order to illustrate the workings and necessity of proposed mitigation measures it is
recommended that impacts be shown with and without mitigation in order to justify
strategies and budgets

Despite comprehensive measures to prevent negative impacts as far as possible during the
design phase by adjusting project design there may be expected impacts that can not be
dealt with in this way. Then it is important to implement measures to reduce or ideally
eliminate negative impacts. Some of these mitigation measures may be considered so
important that they are placed as conditions on approval of the project.

Preventative programmes are an effective and often cheaper way of dealing with impacts.
This is in contrast to thinking in terms of compensation and dealing with negative impacts in
the construction phase. The challenge is to

Typical negative impacts are the loss of land, structures and production and social impacts
caused by population influx into project areas

When mitigation measures are proposed in an SIA it is necessary to first define the expected
impact without mitigation. Then a mitigation measure can be proposed. The expected effect
of the mitigation measure should be described and any remaining impact expected after
implementation of the mitigation measure defined. For an example, see the summary of
proposed mitigation measures for Karuma HPP in the case study.

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3.3.1.2 Preventative Health Programmes (General)

• A major part of preventative health programmes increasing public awareness regarding

health issues and risks
• Careful studies of present the health situation and facilities are required before suitable
mitigation measures related to project impacts can be recommended and monitoring
systems set up
• Behaviour change communication is also important especially in terms of improving
sanitation and reducing transmission of STDs.

3.3.1.3 Provisions for Safe Drinking Water and Fuel

• Access to safe drinking water is essential for the health of the local communities and the
workers and must be provided for all the population in the project area
• Installation of wells and provisions for pumping or piping in water from springs or
underground sources as well as health awareness programmes are typical measures
• The provision of adequate fuel supplies to ensure that forests and natural resources are
not used in an unsustainable manner that can have both short and long-term negative
impacts on communities and their livelihoods
• Measure to protect national parks and wildlife should also be in place, including extra
manning of conservation staff and patrol units

3.3.1.4 Security Measures and Traffic Safety

• During the construction phase large influx of workers and camp followers can create
security problems such as increased theft and other crimes
• Increased traffic during the construction phase results in increased risk of accidents
• Potential mitigation measures include the introduction of road safety measures such as
setting and enforcing speed limits, speed bumps, gentle road curves
• An important aspect of improving traffic safety is the implementation of public awareness
programmes

Security is an important issue both for the affected communities and the developer. During
the construction phase large influx of workers and camp followers can create a number of
security problems. These can include theft of project equipment from food stores to
dynamite, the latter being a serious issue for the police, and theft of crops and livestock,
natural resources (forest products, fish and animals) and personal and household objects. In
some cases, rape and assault may occur. There is also the problem of corruption and bribery
that can negatively affect communities as well as the running of the project, introducing ways
of thinking that were previously absent in more traditional and isolated communities. In many
cases, patrols and security committees need to be established by local communities with the
assistance of district or provincial authorities and support from project contractors and staff.
Co-ordination of security prevention activities is essential.

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There is an increased risk of accidents Increased traffic during the construction phase due to
the presence of heavy machinery and vehicles at different construction sites, dumps, camps,
quarries and spoils. If roads pass through inhabited areas, especial areas that have not
previously had heavy traffic, it will be necessary to introduce a series of road safety
measures as part of the mitigation plan. Measures should include:
• Setting and enforcing speed limits with fines
• Speed bumps and gentle road curves
• Adequate sign-posting
An important aspect of improving traffic safety is the implementation of public awareness
programmes for the local population and for drivers and workers. One aspect is including
traffic awareness lessons in the school curriculum so that children become aware of the
dangers of traffic.

3.3.2 Mitigation Measures for Reducing Negative Effects

3.3.2.1 Institutional Capacity Building

• Institutional capacity building is perhaps one of the most important ways of reducing
negative impact in a project area and ensuring sustainable development
• Managing the influx of workers and population in terms of security and service facilities is
a major change for local administrators
• It is necessary at an early stage to assess the capacity of local organisations and to
design programmes to cope with increased work and new situations

Institutional capacity building is perhaps one of the most important ways of reducing negative
impact in a project area. It has often been assumed that local organisations and existing
government structures will be able to cope with new responsibilities. However, in reality, few
organisations have the manpower, experience, resources or funding to cope with all the
impacts caused by a large hydropower project. Capacity building is therefore an essential
part of dealing with mitigation measures and ensuring sustainable development for affected
communities.

At an early stage it is very important to carry out an assessment of the capacity of local
organisations. Normally this is part of a SIA but is too often not done in enough detail and
can be sometimes left to governments to deal with preparations to cope with the impacts of a
project. Aspects to be considered are presented in more detail in Module 7.

• Overview of the organisations and responsibilities

• Overview of staff qualifications and experience
• Assessment of capacity in relation to project impacts
• Recommendations for training, workshops
• Seconding staff and hiring extra personnel
• Establishing committees and organisations to deal directly with resettlement and
compensation to supplement
• Monitoring and evaluation arrangements

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3.3.2.2 Income-generating Opportunities

A dam project can provide a number of income-generating opportunities for affected
communities:

• Working on site as unskilled or semi-skilled workers during the construction period and a
number of position during the operation period
• Selling produce to the workforce and camp followers
• Hotels and accommodation for workforce and project staff
• Renting land to camp followers and project facilities

A number of income-generating opportunities for affected communities can occur through the
construction and operation of a dam project. In many cases, considerable assistance and
support for these communities is need by project staff, government officials and, in some
cases, NGOs to ensure that benefits reach the population of the DIZ or INDIZ.

Working on site as unskilled or semi-skilled workers during the construction period has
already been mentioned in the previous lessons in relation to contractual arrangements and
legally binding agreements. Having local workers not only brings direct benefits to affected
communities but also reduces the number of workers and camp followers coming in from
outside and the consequent strain on health and education facilities, possible inflation and
food shortages, and likely increased pressure on the natural resources in the region. There
are usually a number of positions available during the operation period as well. These could
consist of skill work such as maintenance and repairs of project equipment or semi-skilled
such as involvement in catchment management, patrolling and conservation awareness
activities or drivers, or unskilled such as gatekeepers, cooks, cleaners, etc. Since
establishing a good long-term relationship with affected communities in the project area
should be a goal for the investor, ensuring employment is an excellent strategy.

Due to the population influx, the selling of produce to the workforce and camp followers can
provide important income for households. For this to occur, support is required in the form of
agricultural extension programmes and credit and savings schemes. Areas need to be
designated for markets and farmers need to be properly informed in advance so that they
can increase production. However, local food security and sustainable use of natural
resources are important issues and expertise needs to be sought so that communities are
not negatively impacted in terms of diet and environmental degradation.

Hotels and accommodation for workforce and project staff is another area where local
communities may gain income. Local leaders and those involved in the service industry
should be informed well in advance in order to make changes and upgrade facilities. In rural
areas, rooms may also be rented by families. Having workers stay with local people,
integrates them into village life. This can be positive in some ways in that it creates income
and social relationships and trust but can also be problematic in that it can also lead to social
tensions if there are significant differences in status, religion or cultural values.

3.3.2.3 Archaeology and ‘Chance Finds’

• Since many large dam projects will result in a loss of land areas, there could also be
losses of areas of archaeological importance
• In areas of archaeological importance, salvage measures need to be introduced well
ahead of construction to preserve and relocate items whenever possible
• Many project sites may not have been explored by archaeologists and a measure to
protect the heritage of a country could include preparatory digs for findings before
construction

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• Provisions for ‘chance finds’, that is discoveries during construction, should be in place
with a referral procedure for verification and clear rules to halting activities if necessary

The construction of many large dam projects will result in a loss of land areas due to
reservoirs and other project features. These areas could be of archaeological importance.
The involvement of professional archaeologists and teams to look into such possibilities
should be part of an overall social assessment. The loss of cultural heritage in a particular
area could represent a local of culture for a nation or group as a whole.

In many parts of the world, considerable work has been carried out in the field archaeology.
When there are clearly defined structures, monuments and religious and artistic aspects,
salvage measures need to be introduced well ahead of construction to preserve and relocate
items whenever possible. It is necessary not only to co-operate with local experts but also
with local people who may have knowledge of the local cultural history and where important
findings are located.

However, many project sites may not have been explored by archaeologists. A preliminary
visit by qualified experts would be a measure to protect the heritage of a country. This could
include interviews with knowledgeable locals, collection of cultural items, preparatory digs for
findings before construction and proper documentation of findings, including determining
dates and values of findings. If findings are significant or unique from the point of view of
national or regional history and culture, archaeological research should be budgeted for in a
RAP.

Provisions for ‘chance finds’ during construction are also an important aspect of cultural
preservation. Discoveries during construction should be handled in a way that a referral
procedure for verification and clear rules to halting activities if necessary are in place. This
should involve who can judge the value of findings and experts who can be contacted from
national museums and universities. Workers and contractors should be issued with drawings
or photographs of possible objects and be instructed on reporting findings to authorities.

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3.4 Compensation

3.4.1 Resettlement

3.4.1.1 Resettlement Issues

• Resettlement refers to compensation, relocation and rehabilitation according to many

international donors and funding agencies (cf. Operational Policy 4.12 of the World Bank)
• The requirement for major resettlement (more than 100 impacted families) is a full
Resettlement Plan (RP) or Resettlement Action Plan (RAP)
• Resettlement requires long-term commitments in the form of funds, trained and qualified
staff of government agencies and legally bound agreements

Resettlement refers to compensation, relocation and rehabilitation according to many

international donors and funding agencies (cf. Operational Policy 4.12 of the World Bank)
The requirement for major resettlement (more than 100 impacted families) is a full
Resettlement Plan (RP) or Resettlement Action Plan (RAP)

A Resettlement Plan or Resettlement Action Plan is implemented in order to re-establish the

social and economic productivity of displaced people or community. A Resettlement Plan or
Resettlement Action Plan, consists of several basic features (see Module 5 for more details
and examples):
• A statement of policy principles;
• A list or matrix indicating eligibility for compensation and other entitlements or forms of
assistance;
• Review of the extent and scope of resettlement, based upon a census/survey of those
affected by the project;
• Implementation plan establishing responsibility for delivery of all forms of assistance, and
evaluating the organisational capacity of involved agencies;
• Schedule that is co-ordinated with the project timetable, assuring (among other things)
that compensation and relocation are completed before initiation of civil works;
• Discussion of opportunities afforded those affected to participate in design and
implementation of resettlement, including grievance procedures.

Resettlement is long process of re-establishing viable communities and can take up to a

generation before income levels are restored and monitoring of social change can stop. It
requires long-term commitments in terms of funding (ample budgets and contingencies over
10-15 years in many cases), trained and qualified staff of government agencies (motivated
and with clear roles and responsibilities) and legally bound agreements (affording protection
and commitments at reaching set targets such as income levels). To achieve this, a project
many have to become involved in upgrading national guidelines and practices regarding
resettlement and set up a comprehensive training and capacity building programme.

3.4.1.2 Grievance Procedure and Disclosure

Transparency is a requirement of all major donors and funding agencies regarding
hydropower projects
Two aspects that are often highlighted regarding transparency are how grievances are
handled and access to information about the project

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A grievance procedure is always necessary regarding compensation and resettlement in

order to ensure that stakeholders have recourse to fair treatment
Project developers are also obliged to make public documents and information about the
project as part of public consultation

Transparency is now a requirement of donors and funding agencies when seeking approval
for hydropower project funding. Transparency implies obligations to disclose information and
allow for inspections and audits on a regular basis, usually according to funding agency
procedures and guidelines. Two aspects that illustrate transparency are how grievances are
handled and access to information about the project.

A grievance procedure is always necessary regarding compensation and resettlement in

order to ensure that stakeholders have recourse to fair treatment. Such procedures show
how private investors or governments deal with affected populations may be disadvantaged
by project activities, especially if they are ethnic minorities or small groups that are not
usually represented politically or are without economic power or social status. A clear and
legally binding procedure should be outlined in a Resettlement Plan, including the different
levels of recourse for dissatisfied groups of affected people.

Disclosure of information in the form of project documents is another important requirement.

Project developers are also obliged to make public documents and information about the
project as part of a public consultation strategy. Documents should be scrutinised by all
interested parties, including NGOs and interest groups. All stakeholders should be free to
participate in consultations and for national workshops and meetings, anyone should be able
to participate in a constructive manner. Such openness aims to ensure that the project is built
with the best interests of all the parties involved and that no one group with benefit at the cost
of others.

3.4.2 Loss of Production

3.4.2.1 Subsidisation of Essential Food

Population influx during construction can lead to increased demands of essential food items
and locally produced crops
One strategy to ensure that essential items remain available and affordable for local
communities is to subsidise prices and ensure a supply of food
Clear eligibility criteria and procedures needed to be established to ensure that outsiders and
middlemen do not take advantage of such subsidies

Food security is one of the most important social concerns for a project area and population
influx during construction can lead to increased demands of essential food items. It is difficult
to predict with certainly how this increase in demand will affect a project area, and it is often
assumed that this will benefit local communities and result in increased income through the
selling of locally produced crops to workers and camp followers. However, the present food
security situation, livelihood systems, level of technology and understanding of market forces.

One strategy is subsiding of prices. This is to ensure that essential items remain available
and affordable for local communities and to ensure a supply of food. However, subsidising is
a challenging issue, and many governments are reluctant to introduce such precedents due
to costs and difficulties in implementing them. In some cases, project supervisors may need
to play a role in ensuring supplies, distribution and monitoring of such programmes.

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Clear eligibility criteria and procedures needed to be established to ensure that outsiders and
middlemen do not take advantage of such subsidies. Local authorities need to be involved in
registration of households and the issuing of identification or ration cards. Careful auditing of
funds and materials is essential in order to avoid misuse.

3.4.2.2 Agricultural Intensification

In order to avert inflation and price increases of essential items, measure should be
introduced to increase supply to match demand
Agricultural intensification programmes for local communities should be started up in
advance of project implementation in order for local people to reap the benefits and
supplement their household incomes
Programmes should consist of improved technology by supplying tools and equipment,
support for existing agricultural extension work and assistance in organising farmers and
educated them regarding the market

In order to avert inflation and price increases of essential items, measure should be
introduced to increase supply to match demand. One cannot assume that local people will
understand these rapid changes and be able to react in a way that ensures food supplies. In
the study of local baseline conditions concerning livelihoods, nutrition, natural resources and
food supplies, the most important agricultural crops should be noted. In most cases, this will
be cereal crops like rice, wheat, millet, etc., that provide the stable for diets. But other items
are equally important such as cooking oil, proteins like beans or lentils and certain
vegetables like onions, tomatoes and greens – all that make up the essential items of a diet.
Price increases may lead to difficulties for local communities and a decrease in living
standards since there will be less cash for improvements when more and more are spent on
essential food items.

One way of avoiding shortages and price increases is an Agricultural Intensification

Programme. Such programmes for local communities should be started up well in advance of
project implementation in order for local people to reap the benefits and supplement their
household incomes. Considerable support and inputs may be needed as well as funding to
enable these communities to take advantage of an increased market for their produce.

Programmes should consist of:

• Improved technology by supplying tools and equipment that farmers need to increase
cultivated areas
• Veterinarian programmes to inoculate livestock against diseases
• support for existing agricultural extension work
• assistance in organising farmers
• educated them regarding the market

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3.5 Enhancing Benefits

3.5.1 Project related benefits

3.5.1.1 Electrification of Affected Areas

• Provision of electricity supply can improve social welfare of communities that have been
directly or indirectly affected by the construction of a project
• Provision of electricity supply to the project area can stimulate small-scale businesses
and increase economic activity
• Community involvement in planning and construction will be an important aspect in
providing equitable access opportunities to electricity supply

The construction of a hydropower project may provide an opportunity to increase the

availability of electricity both locally and supplying urban areas or for export. Especially
projects located in rural areas where there tends to be limited provision can have a major
impact. Many affected communities will expect or even demand an electricity supply as part
of compensation.

During construction projects usually have a temporary power supply from generators. This
can also be extended to provide some access to electricity for local communities. Once the
hydropower project is in operation it may be feasible to extend the grid such that local
communities also benefit from the electricity produced in their area.

For many the initial investment to connect to a local or national grid is prohibitively high. It
may therefore be necessary to introduce a system of subsidies to assist local communities in
entering the market. It is important that any assistance in provision of electricity is carried out
in such a way that the community is closely involved. Local user groups may provide an
appropriate means whereby the community as a whole can benefit from increased access to
electricity. Joint planning and implementation may lead to establishing a sense of
responsibility.

3.5.1.2 Skills Development and Training

• Construction projects often provide an ideal opportunity to develop skills and carry out
training for local workers that go beyond the construction period
• Adequate skills development and training is important for reducing risk of injury to
unskilled workers
• Training local inhabitants could reduce the need for bringing labourers from outside the
project area

It is a challenge to use the occasion of a construction of a dam for the development of skills
for local people. This is because it takes considerable co-ordination and legally binding
agreements in contractors’ contracts for employment. Construction projects can offer an ideal
opportunity to develop skills that could have long-term benefits for communities. However,
the training of local workers may involve increased project costs, both in terms of training
courses and in terms of preferring more expensive local labour over cheaper labour from
outside. Contractors, furthermore, may have their own workforces of skill and semi-skilled

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labour from previous work that they prefer to use and can rely on. It takes time for local
workers to learn skills and to develop a good relationship with contractors. Local concerns
such as harvests and festivals may disrupt schedules and working hours.
Adequate skills development and training is important for reducing risk of injury to unskilled
workers. This is especially true for local workers since casualties on site will reflect badly on
the company and project and could lead to work stoppages and strikes. Safety is always a
concern but accidents effect worker morale.
One aspect that relates to negative social impacts regarding health, security and competition
for resources is reducing population influx by recruiting local labour. Training local
inhabitants, thus, can reduce negative impacts caused by the presence of a large foreign
work force and promote skills development and economic opportunities.

3.5.2 Social Development Programmes

3.5.2.1 Improvements for Women

Women’s concerns are now addressed directly when it comes to project planning since
women have not always benefit from mitigation measures or project benefits in the past
Two complementary approaches to women in development: the equity approach - improving
women’s decision-making powers, and the anti-poverty approach - specific programmes for
women

Since the 1980s, improving the status of women has become an increasingly important
aspect of development projects. This is because it was felt that previously women’s labour
was not always transferred to the market and that men benefited more directly in the first
stages of a transition from subsistence to a market-oriented economy. OD 4.30 states that
women should be considered as a “vulnerable group”.

There are two complementary approaches to women in development: the equity approach,
which aims to improve women’s decision-making powers, and the anti-poverty approach
which concerns special programmes for women with the goal of improving their socio-
economic conditions. Both approaches empower women by giving them more control over
their own time and money. There are a number of aspects from the project that could directly
affect women in a positive manner:

Some examples of initiatives regarding women are:

• Measures to ensure more control over household budgets and earning power
• Improved access to markets, availability of water and fuel
• Increased representation in political bodies and local organisations
• Awareness programmes on women’s rights according to the law and enforcement of
rights
• Health and education programmes directed towards women such as maternal care,
female literacy, etc.
• Community income generation programmes and credit-savings groups for women and
access to rural credit

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The Process of Social Impact Assessment (SIA), Module 3 28

3.5.2.2 Special Measures for Vulnerable Groups

A SIA should identify the various vulnerable groups in the project area and recommend
measure to ensure that they are not disadvantaged by project impacts and benefit from
opportunities
Considerable time and effort is require for consultations and agreements on measures with
implementing agents (government, NGOs and project staff)
Eligibility for special benefits or assistance should be carefully defined so that it is not
misused by non-vulnerable groups

One of the goals of a SIA is to identify the various vulnerable groups in the project area as
part of a baseline study. Mitigation measures should then be recommend to ensure that they
are not disadvantaged by project impacts and benefit from opportunities created by the
project. Studies have shown that, not surprisingly, resource strong households and
communities fair better that resource weak ones. Examples of vulnerable groups could
include:

Small households with a lack of manpower for relocation and rehabilitation

Women-led households that do not participate in political or economic decision-making in the
community
Households with many children or elderly – high number of non-productive members
Disabled and elderly people
Landless peasants or sharecroppers without rights to land or resources
Refugees or minorities with political representation or rights

Considerable time and effort is required for consultations and agreements on measures with
implementing agents. Often governments do not have legal mechanisms to protect or
promote the rights of vulnerable groups in place and lack institutions or precedents for
designing and implementing programmes for vulnerable groups. Thus, one approach is to
involve NGOs and project staff in the design and implementation of these programmes and
support government institutions and to increase awareness among relevant departments and
levels. Workshops and meetings on such issues should form part of a capacity building
approach for the project.

One of the greatest challenges is eligibility. Eligibility for special benefits or assistance should
be carefully defined so that it is not misused by other more resourceful groups that are
affected by the project. Criteria need to be defined and agreed upon by all implementing
agencies after careful consultations with stakeholders. Lists of households should be made
public in a transparent manner. In some projects, identification cards may need to be issued
for subsidised food, eligibility for skills training or education scholarships.

3.5.2.3 Credit Schemes and NGO Involvement

Introduction of credit schemes is one of the best ways of preparing communities for
economic change due to hydropower development
Local communities often lack capital to invest in agricultural improvements, small business
and other enterprises that can lead to benefits
Government line agencies and organisations often lack the expertise and resources to
implement credit schemes - NGO involvement in these and other community development
programmes are often the best option

It is becoming more and more important to see hydropower projects more in terms of a
development opportunity for a region that in terms of payment of compensation and
replacement of land. One should think about what are some of the best long-term

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The Process of Social Impact Assessment (SIA), Module 3 29

development strategies for the region as a whole and how could the hydropower project act
as a catalyst for this development. This means working close with government bodies and
donors and incorporating plans and strategies in the rehabilitation plan and mitigation
measures. The introduction of credit schemes is one of the best ways of preparing
communities for economic change that could provide a stimulus to regional growth.

Local communities often lack capital to invest in schemes that could improve their income
and standard of living. This is especially apparent with regards agricultural improvements,
small businesses. Often communities have identified potential areas of growth but are unable
to acquire credit from local or national banks, which are not willing to risk loans to poor
segments of the community. What is needed in many cases is access to credit at a
reasonable interest rate. This often means banks that are founded to address the needs of
the poor and willing to take economic risks by providing loans with no collateral. These are
often called agricultural development banks in rural regions. Donors can also provide
assistance through local, national or international NGOs.

Government line agencies and organisations often lack the expertise and resources to
implement credit schemes. In this case, NGO involvement in these and other community
development programmes are often the best option. NGOs may have experience working in
the project area or adjacent areas and be highly qualified to carry out such tasks with
experienced staff and good relations with local populations. However, for long-term
sustainability, it will be necessary for NGOs to work closely with government organisations
and prepare them for taking over responsibilities for credit schemes. NGOs in this sense
have an important capacity building role.

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