ADB and the executing agency should agree on all terms related to the payment of vulnerable allowances to affected people during project appraisal. Vulnerable allowances under this project could not be paid on time due to the absence of recognition of ADB's resettlement plan provisions in country practice. For most road sections, compensation determination committees advised that multiple consultations be conducted to identify affected people in genuine need of vulnerable allowances, and decisions were made on a piecemeal basis, which led to delays in implementing the income restoration program and vulnerable allowances. Experience shows that (i) compensation should be decided prior to contract award, (ii) adequate budget and human resources to manage land acquisition and compensation should be assured, and (iii) compensation decisions on packages for individual households should include all allowances and mitigation measures proposed in the resettlement plans.
South Asia Subregional Economic Cooperation Road Connectivity Project