RP1410 The Preparation of Detail Design and Bidding Documents for Upgrading of the E-60 Highway (– Section Between Agara Bypass – Gomi Bypass (km 114 – km 126) Roads Department of the Ministry of Regional Development and Infrastructure of Georgia Detailed Design and Bidding Documents for Upgrading the Section between Agara Bypass - Gomi Bypass (Zemo Osiauri) km 114 – km 126 of the E 60 Highway Draft Resettlement Action Plan RAP Section Agara Bypass – Gomi Bypass (Zemo Osiauri) (km 114 – km 126) Eptisa Servicios de Ingenieria, S.L. 5 March, 2013 Draft RAP The Preparation of Detail Design and Bidding Documents for Upgrading of the E-60 Highway (– Section Between Agara Bypass – Gomi Bypass (km 114 – km 126) CURRENCY EQUIVALENTS (as of 08 February 2013) Currency Unit – lari (GEL) $1.00 = GEL1.65 ABBREVIATIONS ACS – acquisition and compensation scheme ADB – Asian Development Bank CSC – construction supervision consultant AH – affected family AP – Affected Person CBO – community based organization DMS – detailed measurement survey RDRD – Road Development and Resettlement Division GoG – Government of Georgia GRC – grievance redress committee IA – implementing agency IFI - International Financial Institution IP – indigenous peoples EMA – external monitoring agency km – Kilometre LAR – land acquisition and resettlement LARC – land acquisition and resettlement commission LARF – land acquisition and resettlement framework RAP – Resettlement action plan M&E – monitoring and evaluation MFF – multitranche financing facility MOF – Ministry of Finance MPR – monthly progress report MRDI – Ministry of Regional Development and Infrastructure NAPR – National Agency of Public Registry NGO – non-governmental organization PEMI – persons experiencing major impact PFR – periodic financing request PPR – project progress report PPTA – project preparatory technical assistance PRRC – Property Rights Recognition Commission R&R – resettlement and rehabilitation RD – Roads Department RDMRDI – Roads Department of the Ministry of Regional Development and Infrastructure of Georgia RoW – right of way RU – resettlement unit SES – socioeconomic survey SPS – safeguard policy statement TRRC – Transport Reform and Rehabilitation Centre WB - World Bank NOTE In this report, “$� refers to US dollars. Draft RAP The Preparation of Detail Design and Bidding Documents for Upgrading of the E-60 Highway (– Section Between Agara Bypass – Gomi Bypass (km 114 – km 126) Table of Contents EXECUTIVE SUMMARY ……………………………………………………………….. 3 I. INTRODUCTION ...................................................................................................................... 8 II.  CENSUS AND IMPACT ASSESSMENT .............................................................................. 12  III.  SOCIO-ECONOMIC INFORMATION ................................................................................. 21  IV. LEGAL AND POLICY FRAMEWORK ................................................................................ 30 V.  INSTITUTIONAL ARRANGEMENTS ................................................................................. 41  VI.  CONSULTATION, AND PARTICIPATION ........................................................................ 48  VII. GRIEVANCE REDRESS MECHANISM .............................................................................. 51 VIII.  IMPLEMENTATION SCHEDULE ....................................................................................... 54  IX. COSTS AND FINANCING ...................................................................................................... 58 X. MONITORING AND REPORTING ...................................................................................... 65 List of Figures FIGURE 1.1 PROJECT LOCATION .................................................................................................. 11  FIGURE 5.1 LAR ORGANIZATION CHART .................................................................................. 47  FIGURE 7.1 GRIEVANCE RESOLUTION AND ACQUISITION PROCESS .............................. 53  Annexes Annex 1 Valuation Methodology Annex 2 Legalization Procedure Annex 3 Information Leaflet Annex 4 Minutes of public consultation Draft RAP The Preparation of Detail Design and Bidding Documents for Upgrading of the E-60 Highway (– Section Between Agara Bypass – Gomi Bypass (km 114 – km 126) 2 GLOSSARY Beneficiary Community: All persons and households situated within the government-owned or acquired property who voluntarily seek to avail and be part of the Project and represented by a community association that is duly recognized by the community residents, accredited by the local government, and legally registered with the appropriate institutions. Compensation: Payment in cash or in kind of the replacement cost of the acquired assets. Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to Affected people, depending on the nature of their losses, to restore their economic and social base. Improvements: Structures constructed (dwelling unit, fence, waiting sheds, animal pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization. Land Acquisition: The process whereby a person is compelled by a government agency to alienate all or part of the land a person owns or possesses to the ownership and possession of the government agency for public purpose in return for a consideration. Affected People (AP): Individuals affected by Project-related impacts. Affected Household (AH): All members of a household residing under one roof and operating as a single economic unit, who are adversely affected by the Project. It may consist of a single nuclear family or an extended family group. Rehabilitation: Compensatory measures provided under the Policy Framework on involuntary resettlement other than payment of the replacement cost of acquired assets. Relocation: The physical relocation of a AP/AH from her/his pre-Project place of residence. Replacement Cost: The value determined to be fair compensation for land based on its productive potential and location.. The replacement cost of houses and structures (current fair market price of building materials and labour without depreciation or deductions for salvaged building material), and the market value of residential land, crops, trees, and other commodities. Resettlement: All measures taken to mitigate any and all adverse impacts of the Project on AP’s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation of the damaged/removed infrastructure and installations. Sakrebulo: This is the representative body of local self-government. The middle level of local government consists of 67 rayons (districts) and six cities in Georgia: Tbilisi, Kutaisi, Rustavi, Poti, Batumi and Sukhumi. The representative branch of rayon level is the rayon level Local Councils (Rayon Sakrebulo) and the executive branch is represented by Rayon Gamgeoba (Gamgebeli). The self-government level consists of settlements (self-governed cities) or groups of settlements (municipalities). Settlements could be villages, small towns (minimum 3,000 inhabitants) and cities (minimum 5,000 inhabitants). The representative and executive branches of self-government are represented accordingly by Local Council (Sakrebulo) and the Gamgebeli of municipal level. The exclusive responsibilities of self-government include land-use and territorial planning, zoning, construction permits and supervision, housing, and communal infrastructure development. 3 EXECUTIVE SUMMARY 1. Due to its geographical position Georgia has gained the status of an important transport corridor connecting Europe and Asia and the development of the transport infrastructure has become a national priority.The Government of Georgia requested the World Bank to support modernization of the East-West Transport Corridor. Two projects for the improvement of the E-60 East-West Highway have already been completed with the assistance from the World Bank and the Third East-West Highway Improvement project is under implementation Future investments will complete improvement of the Highway from Ruisi to the already rehabilitated Rikoti tunnel. For this purpose the Government of Georgia asked the World Bank assistance for the preparation and implementation of the Fourth East-West Highway Improvement Project (EWHIP) which covers the section of the highway between Agara Bypass and Gomi bypass (Zemo Osiauri) km 114 - 126. A Resettlement Policy Framework (RPF) was developed for the Third East – West Highway Improvement project (las update in 2012), which covers entire section of highway from Ruisi till Rikoti tunnel.Accordinly, the provisions of this RPF, as well as safeguard regulations of WB and in particular, the OP 4.12 (Involuntary Resettlement Policy) should be complied with. 2. Present Draft RAP covers 12 km length section of Agara Bypass - Gomi Bypass (Zemo Osiauri) correspondinh to km 114 – km 126 of the E-60 Highway, which is located within the Khashuri Rayon. Impacts along these road sections will entail acquisition of 933,906 sq.m of land from 445 plots divided in terms of tenure type as follows: • Category 1. 56 titled private land plots with full registration 113,021 sq.m; • Category 2. 199 titled private land plots 259,341 sq.m rightfully owned and requiring legalization through 1 stage process of registration in NAPR (legalizable land plots). These land plots have been transferred to the owners during the land reform but the formal procedures needed for registration in NAPR have not been completed. • Category 3. 190 State owned land plots of 561,544 sqm not used by private users. Most of these land plots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone. Category 3 land parcels are not subject for compensation. There are no public land plots in the affected area used by leaseholders or illegally ocupied by squatters. 3. Given the magnitude of impacts (there are 259 AHs, 188 severely affected APs and one relocated resident) preparation of full scale RAP is required. The project location map is shown in Figure 1.1. Table E.1 Summary Impact on Land Acquisition and Resettlement No. Impacts Unit Land Tenure Patterns 1 Total Land parcels affected No. 445 plots 2 Total land Area to be acquired Sqm 933,906 3 Category 1. Private Registered Plots No. 56 sq.m 113,021 4 Category 2. Private (Rightfully owned) Legalizable through NAPR (1 stage No. 199 legalization) sq.m 259,341 5 Category 5. State Owned No. 190 Not Used by Private Users Sqm 561,544 Land Use and Compensation Categories 4 6 Type 1; Private agricultural (remote from the existing section of highway) No. 132 (3 Gel/sq.m) sq.m 144,488 7 Type 2; Private agricultural (located along the existing section of highway) No. 118 (4 Gel/sq.m) sq.m 185,325 8 Type 3; Private non-agricultural land used for commercial needs ( 4 Gel sq.m) No. 5 sq.m 42,549 9 Type 4; Non-agricultural State Owned (not used by private users); not No. 190 compensable Sqm 561,544 Agricultural Patterns 10 Area under wheat cultivation sq.m 262,588 11 Area under maize cultivation sq.m 57,390 12 Area under vegetables cultivation sq.m 8,835 13 Affected Trees No 649 Affected Structures 14 Compelx of Gas Filling Stations (7 buildings, 1 dead-end railway track No. 1 and 1 fence) 15 Old Farm No. 1 16 Residential House (with 3 ancillary buildings) 1 17 Fencing/Walls No. 2 sq.m 600 Affected Businesses 19 Gas Filling Station (operation income) No. 1 Affected Households 21 Severely affected Households No. 188 22 Vulnerable Households No 57 23 Resettled households No. 1 24 AH with registered plots No. 56 25 AH with legalizable plots (rightful owners, 1 stage registration through NAPR) No. 196 26 AH with agricultural land plots No 247 27 AH with non-agricultural (commercial) land plots No. 5 28 AH losing Jobs No 7 Total AH 259 29 Total Affected Persons No 1011 The project impact extends to 1011peoples comprising 53%male and 47% females: 535 male and 476 females. Further, 10 of the 259 AHs are headed by women. Special attention will be given to the impact of resettlement on women and other vulnerable groups during monitoring and evaluation of the RAP. The project will have a positive impact on gender, and civil works contracts will include provisions to encourage employment of women during implementation. Additionally, women headed households have been considered as vulnerable and special assistance was provided in the RAP entitlements as alowance equivalent to 3 months of minimum subsistence income (see table E-2 below) . 4. The legal and policy framework of the project on land acquisition and resettlement has been adopted to assist the APs and/or households for their lost land and assets, income and livelihood resources. Expropriation of land through eminent domain will not be applied unless approach for acquisition through negotiated settlement fails. Compensation eligibility is limited by a cut-off date as set for this project on the day of the beginning of the AP Census which is 15 December 2012. APs will be entitled for compensation or at least rehabilitation assistance under the Project are (i) all persons losing land irrespective of their title, (ii) tenants and sharecroppers irrespective of formal registration, (iii) owners of buildings, crops, plants, or other objects attached to the land; and (iv) persons losing business, income, and salaries. However, this RAP 5 identified no impact on tenants, sharecroppers, businesses, income or salaries. A summary entitlements matrix is included in Table E-2. Table E-2. Compensation Entitlement Matrix Type of Loss Application Definition of APs Compensation Entitlements Land Permanent loss of AF losing agricultural land Owner with full registration Cash compensation in cash at full replacement agricultural land regardless of impact severity cost or replacement land of same value of land lost and at location acceptable to APs where feasible. The option selected for the Program is cash compensation. If residual plots becomes unusable the project will acquire it in full if so the AP desires. Legalizable Owner These AP will be legalized and provided with cash compensation at full replacement cost. Non-Agricultural Land AF losing their commercial/ Owner with full registration Cash compensation at full replacement cost or residential land replacement land of same value of land lost and at location acceptable to APs where feasible. Legalizable Owner APs will be legalized and provided with cash compensation at full replacement cost.. Renter/Leaseholder Rental allowances in cash for 3 months Informal Settlers/ APs with no One time self-relocation allowance in cash registration/valid documentation equal to 1 year at minimum subsistence income 297GEL per 1 month x 12 months=3564 GEL x AH. Buildings and Structures Residential and non All AFs regardless of legal All impacts will be considered as full impacts residential ownership/ registration status disregarding the actual impact percentage. structures/assets (including legalizable and Impacts will be compensated in cash at full Informal Settlers) replacement costs free of depreciation and transaction costs. Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Public Assets Community/Government Reconstruction of the lost structure in consultation property resources with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops affected or All AFs regardless of legal Crop compensation in cash at gross market loss of planned crop status (including legalizable and value of actual or expected harvest. incomes** Informal Settlers) Compensation for this item will be provided even in case if the crops were harvested . Trees Trees affected All AFs regardless of legal Cash compensation at market rate on the status (including legalizable and basis of type, age , market price of product o Informal Settlers) and the productive life of the trees. Business/Employment Business/employment loss All AFs regardless of legal Owner: (i). (permanent impact) cash indemnity status (including legalizable and of 1 year net income; (ii) (temporary impact) Informal Settlers) cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum subsistence income. Permanent worker/employees: indemnity for lost wages equal to 3 months of minimum subsistence income. and trainings on computer literacy. Allowances Severe Impacts >10% income loss All severely affected AFs losing Agricultural income: two-year yield from affected 6 more than 10% of affected land agricultural land plot (including informal settlers) Other income: 1 additional compensation for 3 months of minimum subsistence income. 297 GEL per month x 3 months=891 GEL per AH) Relocation/ Transport/transition costs All AFs to be relocated Provision of allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income. 200 GEL as vehicle hire charge + 297GEL as minimum subsistence income x 3 months = 1,091 GEL per AH Vulnerable People AFs below poverty line, Allowance equivalent to 3 months of minimum Allowances headed by Women, disabled or subsistence income* and employment priority in elderly project-related jobs 297 GEL as minimum subsistence income per month for 3months= 891 GEL per AH) Temporary Loss Temporary impact All AFs Due compensation will be assessed and paid during construction based on the approved RPF during construction. All land required for temporary use is to be obtained by the civil works Contractor through voluntary negotiations (e.g., willing buyer- willing seller basis). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored following use Unforeseen resettlement All impacts related to temporary Road Department and the construction contractor impacts, if any or permanent land take, the will address and mitigate/compensate unforeseen need for which is not envisaged resettlement impact during project within DD and RAP and is related to activities of Contractor. * Minimum subsistence income to be calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval ** Income expected from crops on affected agricultural land permanently used for crop cultivation during the recent years. In case if the land was permanently used for crop cultivation, but for the year, when the inventory of losses was conducted, no crops have been planted (due to need of rest to this land or illness of the farmer or any justifiable reason), the land parcel still will be considered as designed for crop cultivation and relevant compensations will be paid 5. WB is the funding agency and RDMRDI is the Implementing Agency (IA) of the Project. RDMRDI has the lead responsibility for road construction, as well as implementation of this RAP through the Resettlement Unit (RU) under the Roads Development and Resettlement Division in RDMRDI. A Land Acquisition and Resettlement (LAR) Commission (LARC) will be assisting RU in all LAR activities and RU will be represented at the field by a Working Group comprising the legal, economics and engineering expertise from other departments of RDMRDI. In addition, RU will be assisted by LAR Team in the rayon level involving also the local self-government bodies. Transport Reform and Rehabilitation Centre (TRRC) has been formed as an independent body for financial management of World Bank financed projects. In addition, a number of other government departments will play an instrumental in the updating and implementation of RAP. The National Agency of Public Registry (NAPR) within the Ministry of Justice will be assisting the Project through registration of land ownership and its transfer through purchase agreement 7 from landowners to the RDMRDI. The local government at Rayon and village level will also be involved. 6. The designated official from RU was also an active member in leading role during the census survey. RU staff and local level LAR Team members were informally trained during the feasibility study. Members of LAR institutions will be trained prior to the implementation of RAP under the ADB RETA or similar WB programs for capacity building of RU staff and its field operatives.1 7. A grievance mechanism will be available to allow a AP appealing any disagreeable decision, practice or activity arising from land or other assets compensation. Grievance redress committees (GRCs) at local level involving the local government officials, representative of APs, representative of local NGOs and consultant. APs will be fully informed of their rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey, and time of compensation. Care will always be taken to prevent grievances rather than going through a redress process. 8. Consultation with likely APs in the project affected areas was conducted at early stages of project development during the feasibility study in 2009 and later during the preparation of draft RAP for section Agara Bypass – Gomi Bypass (Zemo Osiauri) in 2013. Specific to the section Agara Bypass – Gomi Bypass (Zemo Osiauri) - km 114 - 126 of the project road in Khashuri Rayon, people were consulted through individual contact during the census survey under the feasibility study for identification of APs. The consultation process has finished and all likely APs have been consulted through community level meetings and through individual contact (see annex 4). 9. RAP requires legalization of the 199 land parcels for 196 legalizable owners of land parcels under acquisition which is in progress and negotiation with all legalized land owners and APs will take from mid April till first week of June of 2013. 10. Payment of compensation and cash allowances will be completed by end of June 2013. All activities related to the land acquisition and resettlement have been scheduled to ensure that compensation is paid prior to displacement and commencement of civil works. Public consultation, internal monitoring and grievance redress will be undertaken intermittently throughout the project duration. The resettlement cost estimate under this RAP is 7,089,014 GEL (USD 4,296,372). 11. Land acquisition and resettlement tasks under the project will be subject to monitoring. Monitoring will be the responsibility of RDMRDI. Internal monitoring will be carried out routinely by RU/RDMRDI. The results will be communicated to the WB through the quarterly project implementation reports. External monitoring will be carried out on a regular basis, and its results communicated to RU/RDMRDI and Financing WB through quarterly reports. The RDMRDI (through help of the Social Safeguards Consultant) will carry out a post-implementation evaluation of the RAP about a year after completion of its implementation. 1 Regional Technical Assistance Project RETA-7433 REG: Mainstreaming Land Acquisition and Resettlement Safeguards in the Central and West Asia. 8 I. INTRODUCTION 1.1 Project Background 12. Due to its geographical position Georgia has gained the status of an important transport corridor connecting Europe and Asia and the development of the transport infrastructure has become a national priority.The Government of Georgia requested the World Bank to support modernization of the East-West Transport Corridor. Two projects for the improvement of the E-60 East-West Highway have already been completed with the assistance from the World Bank and the Third East-West Highway Improvement project is under implementation Future investments will complete improvement of the Highway from Ruisi to the already rehabilitated Rikoti tunnel. For this purpose the Government of Georgia asked the World Bank assistance for the preparation and implementation of the Fourth East-West Highway Improvement Project (EWHIP) which covers the section of the highway between Agara Bypass and Gomi bypass (Zemo Osiauri) km 114 - 126. A Resettlement Policy Framework (RPF) was developed for the Third East – West Highway Improvement project (las update in 2012), which covers entire section of highway from Ruisi till Rikoti tunnel.Accordinly, the provisions of this RPF, as well as safeguard regulations of WB and in particular, the OP 4.12 (Involuntary Resettlement Policy) should be regarded. 13. 14. Present RAP covers 12km length section of Ruisi - Rikoti (km 114 – km 126) and is located within the Khashuri Rayon. Impacts along these road sections will entail acquisition of 933,906 sq.m of land from 445 plots divided in terms of tenure type as follows: • Category 1. 56 titled private land plots with full registration 113,021 sq.m; • Category 2. 199 titled private land plots 259,341 sq.m rightfully owned and requiring legalization through 1 stage process of registration in NAPR (legalizable land plots). These land plots have been transferred to the owners during the land reform but the formal procedures needed for registration in NAPR have not been completed. • Category 3. 190 State owned land plots of 561,544 sqm not used by private users. Most of these land plots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone. Category 3 land parcels are not subject for compensation. There are no public land plots in the affected area used by leaseholders or illegally ocupied by squatters. 15. Given the magnitude of impacts (there are 259 AHs, 188 severely affected APs and one relocated resident), preparation of full scale RAP is required. The project location map is shown in Figure 1.1 1.2 The Impacts Corridor 16. Section II entails the reconstruction and upgrading of 12 km of the existing road from 2- lane to 4-lane standard. The existing road section from Ruisi to Rikoti is two-lane carriageway road with a paved width of about 9.00 m. The shoulder width varies between 2.50 m and 3.00 m.The final 4-lane road corridor will be about 28.50 m wide to accommodate a 15m 9 carriageway, 3.75m width shoulder, an embankment of variable width and minimum 6 m of buffer median zone. Where the existing road is maintained and included in the new highway infrastructure, the impact related to the upgrading of the 2-lane road to 4-lane is limited to the widening zones (1 additional carriageway, median zone, shoulders etc.) and sites of intersections. Due to the variability of the embankment and median zone width, the effective width of the impacts corridor under this contract will vary between 22 and 29 m along the RoW and from 50 to 138 at the intersection sites. For the subsections where entirely new road is constructed the impact corridor of the RoW varies from 53 to 70m. 1.3 Minimizing Land Acquisition and Resettlement 17. Due considerations have been given during the design of the road widening alignment and intersections layout to minimize the adverse impacts of land acquisition and involuntary resettlement. Efforts have been put to incorporate best engineering solution in avoiding large scale land acquisition and resettlement. Following are the specific measures adopted for the selection of the route: (i) The short sections of the existing road required improvement of geometric characteristics and involved some minor realignment. Realignment for these sections has been well tuned on site to avoid most densely settled areas; (ii) Intersections with local roads have been designed to avoid resettlement (iii) Designs of intersections were reviewed by resettlement specialists and their recommendations were considered in the final design. 1.4 RAP Preparation 18. During the preparation of this RAP for Agara Bypass – Gomi Bypass section, the early draft RAP prepared for RDMRDI by Kocks Consult GmbH within the feasibility study for Sveneti- Rikoti Section (2009) was reviewed and compared with the findings of the detailed design works. The presented RAP for Agara Bypass – Gomi Bypass (Zemo Osiauri) is based on DMS, census and socio economic survey which were conducted between 15 December 2012 – 29 January 2013. The updates include (i) update of impacts and AP figures reflecting design changes; (ii) micro plan for land acquisition and implementation of RAP (iii) update of LAR budget; and (iv) loss and entitlement profile for individual owners of land plots and APs 19. The RAP for Sveneti-Rikoti section prepared in 2009 required revision due to the fundamental fact that this RAP was only preliminary by default and was mostly developed based on the existing cadastral data rather than precise DMS and census survey. Besides, substantial changes have been introduced in the design: the alignment has substantial deviations from the feasibility alignment. In addition, the most recent changes in the legislation related to the recognition and registration of the land ownership rights and expropriation procedures (see annex II) should be also reflected in new RAP. 20. The present RAP (Agara Bypass – Gomi Bypass) preparation entailed intensive consultations with the stakeholders, especially the APs and their community were conducted to understand the extent of impact and validate the severity and compensation measures. The assessment of losses and land acquisition is based on the final engineering design as part of the detailed design study. 1.5 Pending RAP Implementation Tasks 10 21. Current RAP is advanced draft. However, it needs further update during finalization of the Detailed Design (April 2013). Following this RAP approval RAP finances will be provided to the RDMRDI Prior to the distribution of RAP finances to the APs the legalization of APs legalizable according to current legislation will be finalized and all APs will sign a contract agreement indicating that they accept the compensation provided to them. If an AP does not sign the contract the case will be passed to the appropriate court to initiate expropriation proceedings. This will be done after the compensation amount is deposited in escrow account. Escrow accounts will also be established for absentee APs. 1.6 Conditions for Project Implementation 22. Based on the WB policy/practice, the approval of project implementation will be based on the following RAP-related conditions: (i) Signing of Contract Award: Conditional to the approval of the RAP by WB and Government. RAP reflects impacts, final AP lists and compensation rates at replacement cost approved by RD. (ii) Notice to Proceed to Contractors: Conditional to the full implementation of RAP- (legalization of legalizable owners, and full delivery of compensation and rehabilitation allowances). 11 Figure 1.1 Project Location 12 II. CENSUS AND IMPACT ASSESSMENT 2.1 Introduction 23. This impacts assessment details loss of land, structures and other assets in the 12-km section of Agara Bypass – Gomi Bypass (Zemo Osiauri) road in Khashuri Rayon of Georgia. Compensation and rehabilitation measures have been worked out based on these impacts. A detailed inventory of all the impacts has been done following the final alignment of the centerline as per detailed engineering design of Agara Bypass – Gomi Bypass (km 114 – km 126). 24. Digitized cadastral maps were collected from the Khashuri Rayon Registration Offices of NAPR. The final road alignment was superimposed on the digitized cadastral maps and land survey using DGPS was conducted on site to identify the affected land parcels, demarcation of land parcels including correction in geometric details and quantification of land parcels including affected part. With the cadastral details from land survey, detail measurement survey (DMS) and 100% AP Census were undertaken. These surveys were conducted started on 15 December 2012 and was terminated on 29 January 2013. Additionally, a socioeconomic survey (SES) of 20% sample households was carried out in the project affected areas in order to understand the socio-economic condition of the affected population. The start date of the DMS and the AP census survey is considered as the compensation eligibility cut-off date for the project which is therefore 15 December 2012. 2.2 Impact on Land, Other Assets and Income 2.2.1 General Classification of affected land 25. In all land impacts amount to some 933,906 sq.m of land from 445 plots (see table 2.1 for details). In terms of tenure the affected land plots are distributed in accordance with the following legal categories: Category 1. 56 titled private land plots with full registration 113,021 sq.m; Category 2. 199 titled private land plots 259,341 sq.m rightfully owned and requiring legalization through 1 stage process of registration in NAPR (legalizable land plots). These land plots have been transferred to the owners during the land reform but the formal procedures needed for registration in NAPR have not been completed. Category 3. 190 State owned land plots of 561,544 sqm not used by private users. Most of these land plots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone. Category 3 land parcels are not subject for compensation. There are no public land plots in the affected area used by leaseholders or illegally ocupied by squatters. The aggregated figures according to land tenure categories are provided in a table 2.1. 26. The land costs and compensation categories within the project area are determined by the land use factor and distance from the existing road. Figures on Land impacts are provided in accordance to the land classification and legal categories that are relevant to determine compensation rates and amounts due to their use modalities and location. The affected land has been classified in 4 main types: • Types 1 and 2: Agricultural Land Plots. These are private land parcels used for agricultural purpose and attributed to the agricultural land category according to official classification. Type 1 land parcels are located remote from the existing mainline road and their cost rate is estimated as 3 GEL/sq.m , while type 2 land parcels are ajacent to the existing road and related cost rate is defined as 4 GEL/sq.m. In total there are 132 13 affected land plots of type 1 with agregated area 144,488 sq.m and 118 land plots of type 2 with total affected area of 185,325 sq.m. • Type 3: Commercial Non-agricultural Land Plots. These are private land parcels used for commercial purpose and attributed to the non-agricultural land category according to official classification. There are only 5 land plots of Type 3 within the zone of impact and aggregated area of affected residential land is 42,549sq.m. 1 of the affected commercial land parcels is used for gas filling station. Type 3 land is compensable and market value has been determined as 4 Gel per sq.m. Originally these land parcels were agricultural land plots similar to type 1. In order to use this land for commercial needs status was officially changed in accordance with the Georgian regulations and the difference in price in fact reflects the additional fees to be paid by the land owners for the official procedures of changing land category from agricultural to non-agricultural. All 5 commercial land plots are registered in NAPR. • Type 4: Non- Agricultural State Owned land plots - 190 public land plots of 561,544 sqm. Most of these land plots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone. Type 4 land plots (by use modality) correspond to Category 3 (by tenure). These land parcels are not subject for compensation. 27. The aggregated figures for the land parcels of different categories are given below in the table 2.2. Table 2.1 : Type of Land Ownership Total: 19 -31 KM Tenure Categories Plots No. Area (sqm) No of AH 1. Private Registered 56 113,021 56 2. Private (rightfully owned) Legalizable 199 259,341 196* trhough NAPR 3. State Owned 190 561,544 Not Used by Private Users TOTAL 445 933,906 259 *. Out of total 196 AH 3 of them own 2 legalizable land plots each 14 Table 2.2: Type of Land Use and Land Groups by Compensation Rates Land Category/ use and Group Plots No. Area (sqm) No of AH Type 1 , 2 and 3 (compensable Land) 19 - 31KM Type 1 Private agricultural irrigated land 132 144,488 129* Agricultural used for annual crops and fruit tree (3 Gel/sq.m) gardens (remote from the existing section of highway;) Type 2 Private agricultural irrigated land 118 185,325 118 Agricultural used for annual crops and fruit tree (4 Gel/sq.m) gardens (located along the existing section of highway, within a distance of 100m from centeline) Type 3 Private non-agricultural land used 5 Non- for commercial needs (remote from Agricultural the existing section of highway;) Commercial (4 Gel/sq.m) 5 42,549 Total Compensable Land (Type 1 + Type 2 + Type 3)  255 372,362  252 Type 4 State Land (non compensable) Type 4 State Owned Non- Agricultural 190 561,544 State Owned land parcels not used by private Not Used by users and not compensable. Most Private Users of these land plots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone. Grand Total 445 933,906 252 *. Out of total 129 AH 3 of them own 2 Type 1 land plots each 2.2.2 Impact on Crops 28. Affected crops identified on the acquired agricultural land are wheat, maize and vegetables. The largest portion of the agricultural land is used for cultivation of wheat 263,088 sq.m (26. 3ha) and maize – 57,890sqm (5.78ha). The total crop area used for vegetable production is 8,835sq.m, (0.88 ha). Out of total 329,813 sqm of agricultural land (type 1 and 2) 328,813 sq.m sq.m is used for crop cultivation and rest 1,000 sq.m for fruit tree plantations only. . 29. Out of 252 AH losing land only 5 do not cultivate crops. A total of 247 households will be affected for loss of crops (Table 2.3). 1 AH cultivate 2 types of crops. The change in land use from agriculture to road will permanently reduce the agriculture production in the impact area. Crop Number of Land Plots Area sq.m No of AH Wheat 116 262,588 116 Maize 79 57,390 79 Vegetables 55 8,835 53* Total 250 328,813 247** * 2 AH cultivate vegetables on 2 land plots each ** Total of AHs is not 248 as1 AH cultivates maize on one of his land plots and vegetables on another plot and thus is doublecounted 15 2.2.3 Impact on Trees 30. Clearing right of way for construction of the road will cause felling down of 649 productive and partially productive fruit trees under private ownership. The affected timber trees are totally state owned and are not included in the inventory list. However, loss of trees including the state owned timber trees will induce some impact on wind belt and greenery plantations and counter program of replanting may be suggested. 31 AHs are losing trees. All of them are losing also crops. Average  wholesale  Cost for  Annual  Type  Groups  by  productivity  Market  Years  to  be  Cost  for  1  1  income,  No of trees  AHs  Age  in  1  year,  price  1  kg.,  compensated  tree, GEL  seedling  GEL  kg.  GEL  Partiallly  4  3  0,9  72  4  291  0  0  Productive    5  80  3  0,9  72 5  363  0  0  6  80  3  0,9  72 5  363  75  4  7  80  3  0,9  72 5  363  172  8  Apple  9  80  3  0,9  72 5  363  86    11  80  3  0,9  72 5  363  200  9  12  80  3  0,9  72 5  363  103  6  20  80  3  0,9  72 5  363  0  0        Sub Total                    27 636    Partiallly  9  5  1,4  56  8  453  0  0  Productive    10  40  5  1,4  56 10  565  0  0  11  40  5  1,4  56 10  565  8  2  12  40  5  1,4  56 10  565  1  1  Wallnut  14  40  5  1,4  56 10  565  0    15  40  5  1,4  56 10  565  4  1  25  40  5  1,4  56 10  565  0  0        Sub Total                    13    0  4           Total                    649  31  16 2.2.4 Impact on Buildings/Structures 2.2.4.1 Type of affected Structures 31. One residential house is affected by the project. One AH consisting of 4 APs will receive compensation for the residentia house and ancillary buildings (1 lmedium-size building of 41.3 sq.m and 2 sheds – 16 and7.2 sq.m respectively) at full replacement cost. The road construction will affect 1 operational commercial buildings/structures owned by 1 AHs (Gas filling station – see Table 2.5). The AH having income from the affected commercial facilities will receive 1 year income compensation for interruption of business and compensation for the structures at replacement cost. 1 abandoned, non-opeartional farm is also subject for removal (1 AH). Comensation to the owner of the farm will be given for demolished structures but not for business losses. 32. Besides the abovementioned, the impact on structures comprises demolition of 2 concrete fences/walls owned by 2 AHs (300sq.m each). AHs are subject for compensation at replacement cost. Table 2.5: Impacts on Buildings No. Item Type of Number No. Unit Quantity AH construction of Storey Structure 19 - 31KM 1 Old Farm Concrete/hollow 1 blocks 1 1 Sqm 800 2 Gas Filling 1 owner Station Concrete/hollow blocks 1 7 Sqm 772,9 Fence 1 Sqm 1800 Dead-end railway track 1 3 Residential 1 House with supporting facilities Residential Concrete/hollow House blocks/brick 2 1 Sqm 166 Ancillary Concrete/hollow 1 1 Sqm 41.3 building blocks/brick Small ancillary 23.2 buildings 1 2 (sheds) 4 Fences 2 Sqm 600 2 GRAND 5 16 TOTAL 17 2.2.5 Relocation Needs and Strategy 33. The AH affected by demolition of their residential houses is 1. This AH will have to be relocated. Residual construction materials after demolition of the buildings will be deemed as a property of AH and they will be only requested to remove these materials after completion of dismantling works. 2.2.6 Business Impacts 34. LAR will affect 1 actually active businesses: 1 AH running operational gas filling station, used for filling gas-cylinders, has officially confirmed annual income of 22,500 Gel. The business income is gradually declining during the recent years due to gasification of the area. According to RPF and RAP provisions, the owner of the gas filling station will be paid for loosing assets (buildings), and will receive compensation for business loss in amount of 1 year net income. The abandoned and deteriorated farm is not in operation and the owner has no income from that property. Table 2.6: Impacts on Buisiness Item Type of Affected Business No AH 1 Gas filling station Operational – low income generating; 1 TOTAL 1 2.3 APs and Communities 35. Overall, the number of AH is 259. (1011 APs). Of these, 56 AHs will lose registered land plots (56 registered plots) and 196 AHs will lose legalizable land plots (199 plots). Registered land plots: 51 of the AH lose registerd agricultural land plots and 5 AH lose registered commercial land. Legalizable land plots: 3 AHs lose 2 legalizable agricultural land plot each, 193 AHs lose 193 agricultural legalizable land plot. 7 AHs (28 APs) are losing their jobs. 36. Table 2.8 provides more details about the impacts categories in terms of loss of land, loss of structure, and loss of crops and trees. Table 2.7 Affected Households by Impact Category No. of Ahs Net No. No. in Absolute (without Of APs Impact Category Category double counting) Remarks A. Land A1. Agricultural Land 247 247 963 A2. Commercial Land 5 5 20 Sub-total (A) 252 252 983 B. Crops /Trees B1. Cops Losses 247 0 n.a.. All AHs counted in A1 B2. Tree Losses 31 0 n.a.. All included in B1 and A1 Sub-total (B) All the AHs losing trees(B2) lose also 247 0 crops (B1) and all of them are counted also in A1 as losing agricultural land 18 Table 2.7 Affected Households by Impact Category No. of Ahs Net No. No. in Absolute (without Of APs Impact Category Category double counting) Remarks B3. No Tree No Crop 5 0 0 Already counted in A2 Losses C. Permanent Structures C1. Old Farm 1 0 0 Counted in A2 C2. Gas filling station 1 0 0 Counted in A2 C3 Residential House 1 0 0 Counted in A2 C4 Walls /Fencing 2 0 0 Counted in A2 Sub-Total (C) 5 0 0 Counted in A2 D. Relocation D. Relocated AH 1 0 0 Counted in A2 Sub-Total D. 1 0 0 Counted in A2 E. Loss of Jobs E. AHs permanently 7 7 28 losing jobs Subtotal E. 7 7 28 TOTAL 259 1011 2.3.1 Impact on Employment and Agricultural Tenants 37. Road construction will not affect any agricultural tenants. The project will have impact on 5 employees of the Gas Filling Station, who will lose their jobs. 3 of them are at the same time shareholders of the plant. These 5 employees will receive compensation for job losses equal to 3 months of minimum subsistance income. Besides, based on consultations it has been decided that 4 of the affected employees will get trainings on general computer literacy and one woman (accountant) will receive special training to become a user of ORIS software for accountants. 2.3.2 Impact on Common Property Resources 38. Road construction will not affect any community or public property. 2.3.3 Severely Affected and Vulnerable Households 39. The project will affect 1 residential business facilities (gas filling station) and the owners are considered to lose major source of income. 180 AHs will be severely affected due to loss of more than 10% of their productive land. 1 AH is losing his business and 7 AHs are losing their jobs and related incomes, which curently constituts more than 10% income for their families. Thus 188 AHs (733 persons) are considered as being severely affected by road construction. 40. Poor (receiving government subsistence subsidies) and women headed households, are considered as vulnerable households. Households with members with disabilities or people in pension age will receive the allowance only if they are registered as poor. In Georgia, the poverty line is determined as a result of sophisticated calculations including production, consumption, cash income and assets valuation. The households with rating less than 57000 are considered as extremely poor and receive subsistence allowance, and AH with rating between 57000 and 70000 are considered as poor and they receive insurance policy allowances. The estimations (rating calculations) are conducted by the Social Services Agency 19 and the rating data is registered. The vulnerable household requires special assistance for resettlement. The AHs in RAP section of the project road constitute 57 vulnerable AHs (222 APs). These include 50 extremely poor (rating less than 57000), 7 poor (less than 70000) and 10 women headed households, out of which all 3 are already counted as poor and 7 as extremely poor. See for details - (Table 2.8). Table 2.8: Vulnerable AHs No. of Category of vulnerability AHs Extremely Poor AHs with rating below 57000 receiving subsistence allowance) 50 Poor AHs with rating more than 57000 and below 70000 receiving 7 insurance policy Female headed AHs with low income and dependents 101 Total 571 1. 7 of the female headed AH is extremely poor (subsistence allowance) and 3 are poor (insurance policy). These 10 AHs are already counted as vulnerable. 2.4 Impact on Indigenous Peoples 41. An assessment of impact on indigenous peoples was undertaken in accordance with WB OP 4.12 and ADB’s Safeguard Requirements 3 of SPS 2009. The project will affect only Georgian people. No Ethnic Minority groups are affeted.. 2.5 Gender and Resettlement Impacts 42. The project impact extends to APs comprising 47% female and 53% males: 521 male and 462 females. Further, 10 of the 252 AHs are headed by women. Special attention will be given to the impact of resettlement on women and other vulnerable groups during monitoring and evaluation of the RAP. The project will have a positive impact on gender, and civil works contracts will include provisions to encourage employment of women during implementation. List of women seeking for employment and their CVs will be provided to Construction Contractor. Additionally, women headed households have been considered as vulnerable and special assistance was provided in the RAP entitlements in amount equivalent to 3 months of minimum subsistence income. Additional consultations are planned with affected women to identify any specifc for women problems araising in conjunction with the project, especially land take related impacts. Women will be encouraged to establish NGOs or other informal organizations to monitor gender-sensitive issues related to project. The RDMRDI is requested to include women representatives in Grievance Redress Commission. 2.6 Summary of Impacts 43. A summary of Project impacts is included in Table 2.10 below. 20 Table 2.9 Summary Impact on Land Acquisition and Resettlement No. Impacts Unit Land Tenure Patterns 1 Total Land parcels affected No. 445 plots 2 Total land Area to be acquired Sqm 933,906 3 Category 1. Private Registered Plots No. 56 sq.m 113,021 4 Category 2. Private (Rightfully owned) Legalizable through NAPR (1 stage No. 199 legalization) sq.m 259,341 5 Category 5. State Owned No. 190 Not Used by Private Users Sqm 561,544 Land Use and Compensation Categories 6 Type 1; Private agricultural (remote from the existing section of highway) No. 132 (3 Gel/sq.m) sq.m 144,488 7 Type 2; Private agricultural (located along the existing section of highway) No. 118 (4 Gel/sq.m) sq.m 185,325 8 Type 3; Private non-agricultural land used for commercial needs ( 4 Gel sq.m) No. 5 sq.m 42,549 9 Type 4; Non-agricultural State Owned (not used by private users); not No. 190 compensable Sqm 561,544 Agricultural Patterns 10 Area under wheat cultivation sq.m 262,588 11 Area under maize cultivation sq.m 57,390 12 Area under vegetables cultivation sq.m 8,835 13 Affected Trees No 649 Affected Structures 14 Compelx of Gas Filling Stations (7 buildings, 1 dead-end railway track No. 1 and 1 fence) 15 Old Farm No. 1 16 Residential House (with 3 ancillary buildings) 1 17 Fencing/Walls No. 2 sq.m 600 Affected Businesses 19 Gas Filling Station (operation income) No. 1 Affected Households 21 Severely affected Households No. 188 22 Vulnerable Households No 57 23 Resettled households No. 1 24 AH with registered plots No. 56 25 AH with legalizable plots (rightful owners, 1 stage registration through NAPR) No. 196 26 AH with agricultural land plots No 247 27 AH with non-agricultural (commercial) land plots No. 5 28 AH losing Jobs No 7 Total AH 259 29 Total Affected Persons No 1011 21 III. SOCIO-ECONOMIC INFORMATION 3.1 Introduction 44. A census of 100% of the AHs available on site was conducted to enumerate the APs. A sample socio-economic survey conducted in February 2013 was included in the project area covering 84 households which is approximately 21.9% of the total AHs covered in census. The objective of the socioeconomic survey was to gather general information on socioeconomic condition of the affected people. The socioeconomic information of the affected population as per census and socioeconomic survey is presented hereunder. 3.2 Affected Population 3.2.1 Demography 1. The project road is in Khashuri Rayon, as per detail measurement survey, will be displacing (physically and economically) 259 households comprising of 1011 persons. Census of 259 AHs identifies that a little more than 50% of the APs (APs) are male constituting a male/female ratio of 111 (111 males per 100 female). The average family size is 3.90 members per household (Table 3.1). Table 3.1: Demographic Profile of APs Male Female Total Average/ Household Age Group No. % No. % No. % Children (Below 6 Years) 21 5.25 21 5.85 42 5.54 0,22 Children (6–18 Years) 79 19.75 60 16.71 139 18.31 0,71 Adult (19–65 Years male and 19 – 60 years for 268 67 213 59.33 481 63.37 2,47 female) Pension age (65 Years and Over males and 60 32 8 65 18.11 97 12.78 0,50 years anad over - female) Total 400 100 359 100 759 100 3.89 % 52.7 47.3 100 3.2.2 AH Ethnicity 2. AHs are almost all Georgian ( 95.31%). Only 1 AH is Russian, 1 Greek, 4 Armenians and 12 Azeri. No Jews or Ukrainian are affected in the project. Ethnic diversity does not mark any difference in overall national development in Georgia and the minorities are mainstreamed as a common nation. Table 3.2: Ethnicity of AHs Sl.No. Ethnicity Total No. of Households % 1 Georgian 383 95.31 2 Armenian 4 1.04 0.26 3 Russian 1 4 Greek 1 0.26 5 Azeri 12 3.13 22 6 Other 0 0 Total 195 100 3.2.3 Urban Rural Proximity 3. The project road is mostly located in rural areas in the villages named Aradeti, Sagolasheni, Ruisi, Bebnisi and Urbnisi. Survey of the 100% households shows that 95% of the AHs reside in rural areas and less thatn 4% reside in urban areas (Table 3.3). Project impact on urban and rural households will tend to change their investment priorities. Table 3.3: Urban Rural Distribution of AHs Sl. No. Type of Settlement Total No. of Households % 1 Rural 185 95.4 2 Town (Urban) 9 4.6 Total 194 3.2.4 Level of Education of APs 4. Data from project area in Kareli Rayon brought forth that illiteracy is almost equal among the women and male population. In all, about 17% people are illiterate (lack of functional education). About a quarter (18%) of the population have university level education and more than a half (55%) have primary and secondary level education (Table 3.4). Table 3.4 Level of Education of APs Sl.No. Category Male Female Total No % No % No % 1 - - - - - - Pre-School 2 Primary & Secondary 113  55  112 55 225 54,9 3 Technical – special aducation 20  10  29 14 49 12 4 University 37  18 30 15 67 16,3 5 Illiterate 35  17 34 16 69 16,8 Total 205 205 410 3.3 Agriculture and Land Resources 3.3.1 Land Holding Status 5. The AHs are all land holder of some quantum. Average land holding comes out to be 1.2ha among the land holders (Table 3.5). Table 3.5: Land Holding Status Sl. No. Particulars No of Households % 1 Land Holder Households 195 100 2 Landless Households 0 0 Total Households 3 195 100 Average Land Holding: 1.2 ha per household 23 3.3.2 Major Cropping Pattern 6. Vegetables are the major crops being cultivated in the project area. About 44% of the households those reported having land, cultivates vegetable in an average area of 1.3 ha each and about 16% households cultivates maize in average area 1.3 ha each. Other crops like bean is cultivated by about 7% households in an average area of 1.6 Ha. Fruit production is another major agricultural activity in the project area. About 35% of households have fruit gardens and produce fruits for selling. Details are given in Table 3.6. Table 3.6: Major Cropping Pattern Average Type of No of Average Average Sl.No. % cultivated Area Crops Household Yield(Ton) Yield(GEL) (Ha) 1 wheat 23 11 1,2 4 0.4 2 maize 32 16 1,3 5 0.4 3 beans 12 7 1,6 0.8 0.36 4 vegetables 91 44 1,3 25 0.5 5 Others 48 22 0,9 5 0.4 3.4 Economy of AHs 3.4.1 Major Economic Activities 7. Agriculture is the main sector of economic activities and feeds majority of the APs as 30% of the households depend on this source for livelihood. Government service also goes side by side as 35% of the households reported service as the primary source of income. The third contributors are daily wage and others (8). The details are given in Table 3.7. Table 3.7: Economic Activity of the Households Sl.No. Type of Activities Primary Secondary No % No % 1 Agriculture 38 30 35 30 2 Government Service 44 35 21 18 3 Daily Wage/small business 8 6 3 2 4 Pension (government aid) 36 29 59 50 5 Others - 0 - 0 3.4.2 Employment Status 8. Unemployment is significant in the project area as revealed in the survey. About 50% of the APs are unemployed including 56% among males and 44% among the females. About 52% APs are wage employed, 35% are self-employed and about 24% are economically inactive (Table 3.8). Though the head of the households are employed but most of the remaining adult members are found to be unemployed. 24 Table 3.8: Economic Activity of the Households Members Sl.No. Gender Economically Wage Self- Unemployed Total inactive employed employed No % No % No % No % No % 1 Male 225 49 35 42 13 72 163 56 436 51,3 2 Female 235 51 48 58 5 28 126 44 414 48,7 Average 460 54 83 52 18 35 289 50 850 100 3.4.3 Annual Income of AHs 9. Agriculture, business and wage employment are major contributors to income of the AHs. The survey found that 37% of the AHs get income from one single source, 63% from double sources. Table 3.9 shows that the more the number of sources, the more is the amount of income feeding to a household. Due to income from Business, double sources seem to contribute the highest in the project area. Table 3.9: Average Annual Household Income against Number of Sources % of Average household Number of sources of Income No. of AHs AHs income (GEL) Single Source 74 37 400 Double Sources 121 63 580.5 Total 195 100 10. Average income per household earning from single source is very low compared to the income from multiple sources (Table 3.9). Table 3.10 shows the distribution of AHs getting income from various single sources. Average annual income from single sources varies from 2868 to 6480 GEL per household. Property income, pension and subsidy are in the lower echelon of household income. Table 3.10: Average Annual Household Income by Sources Total Income Average Income Average Annual No. AHs per Month per Household Income Per Sources of Income (earning from the per Month from Household from from the sources the sources the sources (GEL) sources) (GEL) (GEL) Wage gov/public sector  45  16605  369  4428  Wage employment  31  13130  422  5064  Agriculture  122  29105  239  2868  Business/Service  11  5940  540  6480  Property Income  1  450  450  5400  Pension/subsidiary  105  9875  94  1128  Total  315  75105        Total Households and  Income  194  75105  387  4544  25 Consumption Pattern 11. The total annual average expenditure per household is 3314/- GEL out of which the major expenditure is incurred for the food (80.7%). Non-food expenditure constitutes 24% and covers payments for communal services (18%) and other expenses (1.3%). Details about the expenditure are described in Table 3.11. Table 3.11: Average Annual Expenditure Consumption Pattern Average Annual % to total Sl. No. Expenditure GEL expenditure 1 Food 2676 80.70 2 Non-food 638 19.30 Average 3314 100.00 3.4.4 Household Assets and Durables 12. Possession of durable goods differs from each household depending on the nature of the durable goods. More than 97% of the households in the project area posses a television, while only 2% have got a radio. A little more than 68% have refrigerators, 50% of the households have washing machine and 83% have access to gas for cooking. About 37.5% households reported that they have a car, 4% reported bicycle, 6.25 motorcycle and 8.3% have computer in their house. 13. Possession of domestic animals includes large animals in 50% households and poultry in 14% households (Table 3.12). Table 3.12: Possession of Durable Goods and Domestic Animals Sl. No. Item Households No. % 1 Radio 1 2.08 2 Bicycle 2 4.16 3 Television 47 97.9 4 gas-stove for cooking 40 83.33 5 Computer 4 8.33 6 Refrigerator 33 68.75 7 Washing Machine 24 50 8 Motorcycle 3 6.25 9 Car 18 37.5 10 Air conditioning 0 0 11 Large Animals (Cows/Bulls/Buffaloes) 24 50 12 Pigs 7 14.5 13 Sheep/goats 0 0 14 Horse/donkey 2 4.16 15 Poultry 31 64.58 26 3.4.5 Prevalence of Debt 14. Debt prevalence is significant among the sample households. 30 households out of 48 interviewed reported to have debt and the source is formal bank (19), private lender (8) and other sources (3 cases). (Table 3.13). Table 3.13: Indebtedness Sl. No. Indebtedness Number of Households % 1 Yes 30 62.5 2 Bank 19 39.5 3 Private lender 8 16.6 4 Other 3 6.25 5 No 18 37.5 Total 48 100 3.5 Water and Sanitation 3.5.1 Source of Drinking Water 15. The major source of drinking water is non-centralized local source. Out of the 48 surveyed households, it is noted that only 1 households (2%) residing in urban area is connected to the central water supply pipeline system. 46 of inquired households (95.8%) use water from dug well and 3 households (6.25%) use water from natural springs. Only one household (2.08%) reported other undefined source (Table 3.15). Table 3.15: Source of Drinking Water Sl. No. Sources Number of Households % 1 Piped water supply 1 2.08 2 Well 46 95.8 3 Spring 31 6.25 4 Others 1 2.08 Total 48 100 Note: 3 AHs having acces to springs have also wells 3.5.2 Sanitation Facilities 16. 47 of the interviewed households ( 97%) possess latrine at their house connected to septic reservoirs, and only 1 household residing in urban area has reported having flush toilet connected with the centralised sewerage system (Table 3.16). Table 3.16: Types of Toilet Sl. No. Toilet Number of Households % 1 Flush toilet 1 2.08 2 Latrine 47 97.92 3 Total 48 100 27 3.6 Access to Energy and Civic Facilities 3.6.1 Access to Energy for Cooking 17. 35 out of 48 of inquired households (72.9%) use gas stoves for cooking. However, wood is still significant source of fuel being used by the 38 households (79.16%). According to the Table 3.17, households using gas also use fuel wood at the event of unavailability of gas (especially those using LPG). Details are given in Table 3.17. Table 3.17: Type of Fuel Use for Cooking Sl. No. Types of Fuel Number of Households % 1 Wood 38 79.16 2 Gas 35 72.911 3 Diesel/ Kerosene 0 0 4 Electric power 0 0 Total 23 100.0 Note: 35 households using gas also use fuel wood at the event of unavailability of gas 3.6.2 Access to Electricity 18. All of the interviewed 48 households (100%) are connected with central power supply. Only 12.5% are connected to the natural gas supply system (Table 3.18). Table 3.18 Connected to Central Electric Power Supply and Natural Gas Supply Systems Electric Power Natural Gas Whether Sl. No. connected No of Households % No of Households % 1 Yes 48 100 6 12.5 2 No 0 0 42 87.5 Total 48 100 48 100 3.6.3 Access to Health Centre 19. Health facilities in project areas are in good condition with adequate access to hospitals . 100% of the households stated that they have easy access to health centres (Table 3.19). Table 3.19: Access to Health Centre Easy access to Sl. No. Health Centre Number of Households % 1 Yes 48 100 2 No 0 0 3 Total 48 100 28 3.6.4 Access to School 20. All sample households (100%) reported that they have easy access to school (Table 3.20). Table 3.20: Access to School Sl. No. Access to School Number of Households % 1 Yes 48 100 2 No 0 0 3 Total 48 100 3.6.5 Access to Road 21. Transport connectivity seems to be well established in the project area. Most of the sample households reported that they are well connected with the local roads (Table 3.21). However, 16 households (16.7%) have reported that the road connecting their house to the main roads is not in a good shape. Table 3.21: Access to Road Sl. No. Whether connected to Road Number of Households % 1 Yes 40 83.3 2 No 8 16.7 3 Total 48 100 3.7 Conclusion 22. Most of inquired household (98%) have estimated themselves as not being wealthy, having incomes not sufficient for good quality medical services and education. Literacy rate in the project area is not low (83%) compared to national literacy level. A little more than 50% of the affected population are women. Literacy rate among the women is similar (84% compared to 83% among males). Women go side by side with the men in the project area and play important role in family economy. The project will have a positive impact on women through increased mobility and due attention will be given them from the project. civil works contracts will include provisions to encourage employment of women during implementation. List of women seeking for employment and their CVs will be provided to Construction Contractor. Additionally, women headed households have been considered as vulnerable and special assistance was provided in the RAP entitlements in amount equivalent to 3 months of minimum subsistence income. Additional consultations are planned with affected women to identify any specifc for women problems araising in conjunction with the project, especially land take related impacts. Women will be encouraged to establish NGOs or other informal organizations to monitor gender- sensitive issues related to project. The RDMRDI is requested to include women representatives in Grievance Redress Commission.Agriculture is the dominant occupation among the APs (30% primary and 30% secondary economic activity). However, role of government services is also significant (35% primary and 18% secondary). Vulnerability like pension and state subsidy consumption reveals that 62% of the AHs have a pensioner in the household. 29 23. 83.33% of inquired population (40 out of 48) expressed good attitude towards the project and accepted it as important component of development for the whole country and for their rayon. 16% generally accept the project but express their concerns regarding involuntary land acquisition and related changes in their economic activity and social conditions. 30 IV. LEGAL AND POLICY FRAMEWORK 4.1 General 24. The legal and policy framework of the Project is based on national laws and legislations related to Land Acquisition and Resettlement (LAR) in Georgia and the World Bank Involuntary Resettlement Policy (OP/BP 4.12). Based on the analysis of applicable laws and policies and Policy requirements of the mentioned IFIs, project related LAR principles have been adopted. 4.2 Legal Framework 4.2.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement 25. In Georgia, the legislative acts given below regulate the issues of obtaining State ownership rights to privately owned land parcels based on the necessary public needs caused due to road constructions activities: (i) The Constitution of Georgia, August 24, 1995 (ii) The Civil Code of Georgia, June 26, 1997 (iii) The Law of Georgia on Protection of Cultural Heritage, 2007 (iv) The Law of Georgia on Notary Actions, December 4 2009; (v) The Law of Georgia on Privatization of State-owned Agricultural Land, July 8, 2005 (vi) The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996 (vii) The Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal entities; 2007 (viii) The Law of Georgia on Public Register (No820 –IIs; December 19 of 2008; (ix) The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999 (x) The Civil Procedural Code of Georgia, November 14, 1997 26. The existing Laws provide that compensation for lost assets, including land, structures, trees and standing crops, should be based on the current market price without depreciation. Overall the above laws/regulations provide that the principle of replacement cost compensating at market value is reasonable and legally acceptable. The laws also identify the types of damages eligible to compensation and indicate that compensation is to be given both for loss of physical assets and for the loss of incomes. Finally, these laws place strong emphasis on consultation and notification to ensure that the APs participate in the process. Income loss due to loss of harvest and business closure will be compensated to cover net loss. The above-listed laws and regulations give the possibility of applying the following mechanisms for legal application of the property rights: (i) Obtaining the right on way without expropriation through the payment of due compensation (on the basis of a contract of agreement or a court decision) prior to commencement of the activities. (ii) Expropriation which gives the possibility of obtaining permanent right to land and/or other real estate property on the basis of Eminent Domain Law or a court decision through the payment of due compensation. 31 27. Land will be acquired through eminent domain, first on the basis of negotiated settlement with individual affected entities. Should the contract fails, the expropriation process under the eminent domain will start. Under the existing Law in Georgia, the president will issue an order for expropriation based on the request from relevant state agencies. Relevant regional court will assess the presidential order and determine the case of public needs, and grant the expropriation entity rights to obtain land. The court will also appoint a third party to assess the market value of lost assets and determine the compensation payable to relevant land owners accordingly to the value of assets thus found. 4.2.2 WB’s Policy on Involuntary Resettlement 28. The three important elements of WB’s involuntary resettlement policy are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. For any WB or ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: (i) Involuntary resettlement is to be avoided or at least minimized. (ii) Compensation/Rehabilitation provisions will ensure the maintenance of the APs’ pre-project standards of living. (iii) APs should be fully informed and consulted on LAR compensation options. (iv) APs’ socio-cultural institutions should be supported/used as much as possible. (v) Compensation will be carried out with equal consideration of women and men. (vi) Lack of legal title should not be a bar to compensation and/or rehabilitation. (vii) Particular attention should be paid to households headed by women and other vulnerable groups, such as Indigenous Peoples, and appropriate assistance should be provided to help them improve their status. (viii) LAR should be conceived and executed as a part of the project, and the full costs of compensation should be included in project costs and benefits. (ix) Compensation and resettlement subsidies will be fully provided prior to clearance of right of way/ ground leveling and demolition. 4.2.3 Comparison of WB Policy with Georgian Laws and Legislation 29. Overall, the legislation of Georgia adequately reflects the major provisions of the WB OP 4.12 Safeguards Policy but a few differences are to be noted. The most significant of these differences is that under Georgian legislation/regulation, emphasis is put on the definition of formal property rights and on how the acquisition of properties for public purposes is to be implemented and compensated while in the case of WB policy emphasis is put both on the compensation of rightfully owned affected assets and on the general rehabilitation of the livelihood of Affected People (AP) and Households (AH). Because of this, WB policy complements the Georgian legislation/regulation with additional requirements related to (i) the economic rehabilitation of all AP/AH (including those who do not have legal/formal rights on assets acquired by a project); (ii) the provision of indemnities for loss of business and income, (iii) and the provision of special allowances covering AP/AH expenses during the resettlement process or covering the special needs of severely affected or vulnerable AP/AHs. Also, in addition, the legislation of Georgia does not require any specific measure regarding the need to prepare RAPs based on extensive public consultations. The differences between Georgia law/regulation and WB policy are outlined in Table 4.1. 32 Table 4.1: Comparison of Georgian Laws on LAR and ADB Resettlement Policy Georgia Laws and Regulations WB OP 4.12 Land compensation only for titled landowners In Lack of title should not be a bar to compensation and/or practice legalizable land owners are also rehabilitation. Non-titled landowners receive rehabilitation. compensated after they are issued with the necessary papers Only registered houses/buildings are compensated All affected houses/buildings are compensated for for damages/demolition caused by a project buildings damages/demolition caused by a project Crop losses compensation provided only to Crop losses compensation provided to landowners and registered landowners. sharecrop/lease tenants whether registered or not Land Acquisition Committee in RDMRDI is the only Complaints & grievances are resolved informally through pre-litigation final authority to decide disputes and community participation in the Grievance Redress address complaints regarding quantification and Committees (GRC), Local governments, and NGO assessment of compensation for the affected and/or local-level community based organizations assets. (CBOs). Decisions regarding land acqusition Information on quantification, affected items value and resettlement are discussed only between the assets, entitlements, and compensation/financial landowners and the Land Acquisition Authorities. assistance amounts are to be disclosed to the APs prior to appraisal. No provision for income/livelihood rehabilitation, WB policy requires rehabilitation for income/livelihood, allowances for severely affected or vulnerable APs, severe losses, and for expenses incurred by the APs or resettlement expenses. during the relocation process. No specific plan for public consultation is provided Public consultation and participation is the integral part under the Georgian laws of WB’s policy which is a continuous process at conception, preparation, implementation and finally at post implementation period 30. To reconcile the gaps between Georgia laws/regulations and WB Policy, RDMRDI has adopted this policy for the Project, ensuring compensation at full replacement cost of all items, the rehabilitation of informal settlers, and the provision of subsidies or allowances for AHs those will be relocated, suffer business losses, or will be severely affected. 4.2.4 Resettlement Policy Commitments for the Project 31. The resettlement policy for the project has been designed to (a) cover all APs irrespective of their title to land or asset registration status, (b) compensation for lost assets, and (c) restore or enhance the livelihoods of all categories of APs. The households/persons Affected by the project interventions will receive cash compensation for land and other assets at full replacement cost as per market price at the time of dispossession. Additional measures will be taken to ensure minimum disruption during the project construction period. Thus, households to be Affected physically and affected economically will receive due compensation, relocation assistance, and allowances in accordance with the following guidelines and policy which are also part of the Resettlement Policy Framework (RPF)2 of the Program and the Georgian laws on land acquisition, as well as WB OP 4.12. Core involuntary resettlement principles are developed for this Project which are as follows (see the abstracts from RPF in Box 1 below): Box 1: - Construct the road to avoid residential areas wherever possible to minimize physical relocation of people, and select alignments that minimise acquisition of privately or publicly held productive land; 2 Government of Georgia: Subregional Road Corridors Development Program, Land Acquisition and Resettlement Framework, July 2009, Updated/Disclosed in February 2012;. 33 - Adopt design standards that minimise the need to impose land use restrictions on adjoining areas; - Develop fair and transparent procedures, as defined in the Entitlement Matrix in this RPF, to determine compensation for (i) temporary loss of land/ assets during construction; (ii) permanent acquisition of land and assets; and (iii) restrictions on use of land that may be applied to areas adjoining the corridor; - Acquire land (or right to use land) through negotiated agreements and with the use of the power of eminent domain only as a last resort. - Upon completion of construction, restore land as best as possible to its original condition in the event of temporary disruption so as to enable landowners/users/lessees to resume their pre-project activities; - Keep affected people and communities fully informed about the project, the process that will be followed to acquire and compensate for land, and their related rights and avenues for redress. - Ensure that grievances PAPs may have will be redressed adequately, and that solutions in line with principles laid out in this RPF be employed; - All Project Affected People (PAP), without regard to legal status of property, will receive support of various kinds, as per the principles set out in the Entitlement Matrix, to assist them in their efforts to maintain their livelihoods and standards of living prevailing prior to the Project. Those who illegally own land will not be compensated for loss of land, but will receive compensation for loss of other assets which had been established on their own finance, and for loss of income such that they are also assisted in their efforts to maintain their livelihoods. . Detailed measures to be implemented will be determined based on the census and socio-economic survey to be carried out when Resettlement Action Plan is developed. - PAP will be notified of the project implementation schedule and consulted regarding the principles of land acquisition and loss of or damage to assets. - Damages to assets, such as standing crops, trees, fences and kiosks, and loss of income, including loss of harvest, will be minimized, and where inevitable, will be compensated without regard to legal status of ownership according to the Entitlement Matrix provided in this RPF. Resettlement Action Plan (RAP) will be developed as per this RPF and Bank OP 4.12 as well as Georgian legislation for each section of the Project itinerary that defines detailed compensation packages and implementation schedule. Since, as discussed above, there are gaps between OP 4.12 and Georgian legislation and practice on expropriation, any land acquisition required for the Project will be carried out as per the principles and procedures laid out in this RPF. A market survey will be conducted to assess the prevailing market prices of land, construction materials for affected structures, crops and other relevant items, which will be used as the unit prices to determine compensation. This will additionally ensure that the market prices will allow PAPs to purchase replacement land. Loss of income and assets will be compensated on a net basis without tax, depreciation or any other deduction. The final RAP should be submitted to and cleared by the Bank prior to the execution of civil works for relevant sections. The details of land acquisition procedure will be spelled out in RAP(s), but they will include: - Initial consultation with PAP to notify the project and board impact 34 - Census, geographic survey and socioeconomic survey of PAP - Determination of PAP and types/ scale of impact - Development of compensation package and drafting of RAP - Consultation with PAP - Negotiation with PAP and payment of compensation - Expropriation process where negotiation fails - Compensation/rehabilitation measures will be implemented as the civil works progress but prior to the start of the construction on a particular section. 4.2.5 Land Acquisition Process 32. Complete and accurate registration of private land as per current laws governing land acquisition in Georgia is the precondition for proceeding with acquisition of private land by agencies requiring land for land based infrastructure development. RDMRDI for construction of the Rikoti-Ruisi section of the East-West Highway will acquire private land under eminent domain through negotiated settlement wherever possible, based on meaningful consultation with APs, including those without legal title to assets. The land buyer will offer adequate and fair price for land and/or other assets. RDMRDI will ensure that the process of land acquisition with the APs openly address the risks of asymmetry of information and bargaining power of the parties involved in such transactions. Only in case the there is no agreement to land acquisition, expropriation will be sought. 33. The detail design consultant has prepared a separate volume of the RAP containing the land acquisition plan, and estimate of compensation and entitlement of individual APs under the subtitle of “Acquisition and Compensation Scheme (ACS). ACS is a detailed programme for execution of RAP as per land acquisition and resettlement framework consistent with WB OP 4.12 on involuntary resettlement. 34. Following the ACS, LAR Working Group assisted by LAR Team at rayon level will offer to each of the APs the compensation rates defined in this RAP. Upon successful settlement, Land Purchase Agreements will be signed with legalized/titled owners of acquired land parcels and Agreement of Entitlement with the non-titled APs. Any grievances of the APs will be resolved through approved grievance redress mechanism of the Project. 35. In case an AP does not accept the rates defined in this RAP even after a through the grievance redressing mechanism exercise, RDMRDI will seek concurrence of the appropriate authority in the management for proceeding with Expropriation Process under the eminent domain for acquisition of the land through Rayon courts. 36. The detail design consultant has prepared fresh maps of the acquired plots with geometric details required for legalization. RDMRDI will provide these maps to the concerned legalizable owners. The process will be followed by endorsement of these maps and ownership documents by the Sakrebulo and finally getting them registered in the local registration office prior to the receipt of the project compensation. A detailed procedure of legalization of legalizable owners is provided in Annex 1. 35 4.3 Compensation Eligibility and Entitlements 4.3.1 Eligibility 37. APs entitled for compensation or at least rehabilitation provisions under the Project are: (i) All APs losing land either covered by legal title/traditional land rights, Legalizable, or without legal status; (ii) Tenants and sharecroppers whether registered or not; (iii) Owners of buildings, crops, plants, or other objects attached to the land; and (iv) APs losing business, income, and salaries. 38. In particular for concerns land assets the eligibility to land compensation for this project has been elaborated as follows: • Titled APs will be fully compensated • Untitled APs who were legitimate leasers under the old Soviet system and have either plots with a house or adjacent to a plot with a house will be legalized and then compensated. • Untitled APs who were legitimate leasers under the old Soviet system and have regularly cultivated/used their land but do not have plots with a house or adjacent to a plot with a house will not be legalized but will be compensated. • Untitled APs who were not legitimate leasers under the old Soviet system and who use or cultivate the land they occupy only extemporaneously will not be legalized nor compensated. They however, are still eligible for crop or income compensation. 39. Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day of the beginning of the AP Census and DMS. APs who settle in the affected areas after the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice, requested to vacate premises and dismantle affected structures prior to project implementation. Their dismantled structures materials will not be confiscated and they will not pay any fine or suffer any sanction. 4.3.2 Definition of Entitlements 40. Entitlement provisions for APs losing land, houses, and income and rehabilitation subsidies will include provisions for permanent or temporary land losses, buildings losses, crops and trees losses, a relocation subsidy, and a business losses allowance based on tax declarations and/or existing minimum market rates. These entitlements are detailed below: Entitlement provisions for APs losing land, houses, and income and rehabilitation subsidies will include provisions for permanent or temporary land losses, buildings losses, crops and trees losses, a relocation subsidy, and a business losses allowance based on tax declarations and/or lump sums. These entitlements are detailed below: • Agricultural land impacts will be compensated at replacement value either with replacement plots of the same value of the land lost and at location acceptable to APs where feasible, or in cash free of transaction costs at current market rates or (if no land markets are active) based on the reproduction cost of the affected land. The cash at market rates option has been selected for the Program. When >10% of an AP agricultural land is affected, AP (owners, leaseholders and sharecroppers) will 36 get an additional allowance for severe impacts equal to the market value of a 2 year’s gross yield of the land lost. In case of severe impact on other income, the APs will be paid additional compensation corresponding to 3 months of minimum subsistence income. Transaction taxes/fees will be paid by the EA or waived. Legalizable APs will be legalized and paid as titled owners. Non-legalizable APs will be compensated with one time self-relocation allowances in cash equal to 1 year of equal to 3 months of minimum subsistence income. Residual non-affected sections of a plot that becomes inaccessible or unviable to use after acquisition will also be compensated. • Non agricultural land (Residential/commercial land). Legal settlers will be compensated at replacement rate either with replacement plots of same value as plots affected and at location acceptable to APs where feasible, or in cash at current market rates, free of transaction cost. The cash at market rates option has been selected for the Program. Renters/leaseholders will receive a 3 months’ rent allowance. Non-titled/non-legalizable land users will be compensated with a 1 time self relocation allowance in cash equal to 1 year of minimum subsistence income. This allowance is to be to be calculated based on a 5 people family and the monthly- updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval • Houses, buildings, and structures. In order to address potential damages of vibrations or discomfort caused by road traffic, these items will be compensated in full for the whole building irrespective of the specific degree of impact. Compensation will be provided in cash at replacement cost free of deductions for depreciation, transaction costs or salvaged materials. All relevant APs are entitled to this provision by default irrespective of the registration status of the affected item. • Crops: Cash compensation at current market rates for the gross value of 1 year’s harvest by default3. Crop compensation will be paid both to landowners and tenants based on their specific sharecropping agreements. • Trees: Cash compensation at market rate based on type, age and productivity of trees. • Businesses: If business is lost permanently it will be compensated in cash equal to a 1-year income based on tax declaration or, if unavailable, based on the official minimum subsistence income. Temporary business losses will be compensated in cash for the business interruption period based on tax declaration or, if unavailable, official minimum subsistence income. • Affected business workers/employees: Indemnity for lost wages for the period of business interruption up to a maximum of 3 months. • Relocation allowance: APs forced to relocate will receive a relocation subsidy sufficient to cover transport costs and living expenses for 3 months. • Vulnerable Peoples Allowance: Vulnerable people (APs below poverty line and women or elder headed households without any other bread-winner member of family) will be given an allowance corresponding to 3 months of minimum subsistence income and priority in employment in project-related jobs. The allowance 3 Compensation by default means that crop compensation will be paid irrespective of whether the crops were already harvested or not at the time of impact. This covers also compensations for income expected from crops on affected agricultural land permanently used for crop cultivation during the recent years. In case if the land was permanently used for crop cultivation, but for the year, when the inventory of losses was conducted, no crops have been planted (due to need of rest to this land or illness of the farmer or any justifiable reason), the land parcel still will be considered as designed for crop cultivation and relevant compensations will be paid 37 is to be calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval • Severe Impacts Allowance; APs losing >10% of agricultural land or >10% of non- agricultural income will receive a severe impacts allowance. When >10% of an AP agricultural land is affected, AP (owners, leaseholders and sharecroppers) will get an additional allowance for severe impacts equal to the market value of a 2 year’s gross yield of the land lost. In case of severe impact on other income, the APs will be paid additional compensation corresponding to 3 months of minimum subsistence income. This allowance is to be calculated based on a minimum subsistence income for 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval • Community Structures and Public Utilities: Will be fully replaced or rehabilitated so as to satisfy their pre-project functions. • Temporary impact during construction: All land required for temporary use is to be obtained by the civil works Contractor through voluntary negotiations (e.g., willing buyer-willing seller basis). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored following use 4.3.3 Compensation Entitlement Matrix 41. Tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with both Georgia laws and regulation, WB OP 4.12 and ADB Policy (SPS 2009). A summary entitlements matrix is included in Table 4.2 below. Table 4-2: Compensation Entitlement Matrix Type of Loss Application Definition of APs Compensation Entitlements Land Permanent loss of AF losing agricultural land Owner with full registration Cash compensation in cash at full replacement agricultural land regardless of impact severity cost or replacement land of same value of land lost and at location acceptable to APs where feasible. The option selected for the Program is cash compensation. If residual plots becomes unusable the project will acquire it in full if so the AP desires. Legalizable Owner These AP will be legalized and provided with cash compensation at full replacement cost. Non-Agricultural Land AF losing their commercial/ Owner with full registration Cash compensation at full replacement cost or residential land replacement land of same value of land lost and at location acceptable to APs where feasible. Legalizable Owner APs will be legalized and provided with cash compensation at full replacement cost.. Renter/Leaseholder Rental allowances in cash for 3 months Informal Settlers/ APs with no One time self-relocation allowance in cash registration/valid documentation equal to 1 year at minimum subsistence income 297GEL per 1 month x 12 months=3564 GEL x AH. Buildings and Structures Residential and non All AFs regardless of legal All impacts will be considered as full impacts 38 residential ownership/ registration status disregarding the actual impact percentage. structures/assets (including legalizable and Impacts will be compensated in cash at full Informal Settlers) replacement costs free of depreciation and transaction costs. Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Public Assets Community/Government Reconstruction of the lost structure in consultation property resources with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops affected or All AFs regardless of legal Crop compensation in cash at gross market loss of planned crop status (including legalizable and value of actual or expected harvest. incomes** Informal Settlers) Compensation for this item will be provided even in case if the crops were harvested Trees Trees affected All AFs regardless of legal Cash compensation at market rate on the status (including legalizable and basis of type, age market price of product o Informal Settlers) and the productive life of the trees. Business/Employment Business/employment loss All AFs regardless of legal Owner: (i). (permanent impact) cash indemnity status (including legalizable and of 1 year net income; (ii) (temporary impact) Informal Settlers) cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum subsistence income. Permanent worker/employees: indemnity for lost wages equal to 3 months of minimum subsistence income and trainings on computer literacy.. Allowances Severe Impacts >10% income loss two-year yield from affected land All severely affected AFs losing more than 10% of affected Other income: 1 additional compensation for 3 months of minimum subsistence income. 297 agricultural land plot (including informal settlers) GEL per month x 3 months=891 GEL per AH) Relocation/Shifting Transport/transition costs All AFs to be relocated Provision of allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income. 200 GEL as vehicle hire charge + 297GEL as minimum subsistence income x 3 months = 1,091 GEL per AH Vulnerable People AFs below poverty line, Allowance equivalent to 3 months of minimum Allowances headed by Women, disabled or subsistence income* and employment priority in elderly project-related jobs 297 GEL as minimum subsistence income per month for 3months= 891 GEL per AH) Temporary Loss Temporary impact All AFs Due compensation will be assessed and paid during construction based on thie approved RPF during construction. All land required for temporary use is to be obtained by the civil works Contractor through voluntary negotiations (e.g., willing buyer- willing seller basis). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored following use Unforeseen resettlement All impacts related to temporary Road Department and the construction contractor impacts, if any or permanent land take, the will address and mitigate/compensate unforeseen need for which is not envisaged resettlement impact during project 39 within DD and RAP and is related to activities of Contractor. * Minimum subsistence income to be calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval ** Income expected from crops on affected agricultural land permanently used for crop cultivation during the recent years. In case if the land was permanently used for crop cultivation, but for the year, when the inventory of losses was conducted, no crops have been planted (due to need of rest to this land or illness of the farmer or any justifiable reason), the land parcel still will be considered as designed for crop cultivation and relevant compensations will be paid . 4.3.4 Assistance for Severely affected and Vulnerable AH 42. Vulnerable AH are entitled to an allowance equivalent to 3 months of minimum subsistence income and employment priority in project-related jobs. AHs are considered as vulnerable in case they are registered as poor in the local social services or are women-headed Households with members with disabilities or people in pension age will receive the allowance only if they are registered as poor. 43. The above AH will receive an allowance of 297 GEL x month x 3 months or 891GEL in all. These figures are taken from the National Statistics Office of Georgia Department data on minimum subsistence income for a family of 5 persons in December 2012). 44. Severely affected AH will receive an additional crop compensation covering two-year yield from affected land or an allowance equal to 3 months of minimum subsistence income, in case the AH is not subject for crop compensation. 4.3.5 Valuation and Compensation Rates 4.3.5.1 Principles and Methodology 45. The principles of valuation of acquired land and assets have been devised as per WB OP 4.12 on involuntary resettlement. The policy states that all loss of the APs have to be compensated at full replacement cost at the time of dispossession of the property for purpose of infrastructure projects. The calculation of replacement costs will be based on (i) fair market value at the time of dispossession, (ii) transaction/legalization costs, (iii) transitional and restoration (land preparation and reconstruction) costs, and (v) other applicable payments. In order to ensure compensation at replacement cost, good practice examples in compliance with WB OP 4.12 were followed for determining the replacement cost of acquired assets. 46. The calculation of unit value is done keeping in consideration the current market rate so as to meet with the replacement cost of the land and lost assets etc. An experienced and registered independent local company was employed to do the valuation of land, structures, buildings, trees, crops etc. The approach of the evaluator was to make the assessment for each type of land and assets by location. The valuation was done when the census and DMS were conducted by the same company who prepared the map of affected plots with demarcation of cut-off areas. The valuation company engaged its experts for its respective areas who made site visits for physical verification of each category of the losses. The expert team also took into consideration the reference of previous valuation if available and also used their recommended periodic release of market survey. Based on this methodology the unit rate was derived. The 40 unit rates used in this report are based on the evaluation agency’s assessment with their standard methods for calculating the sample assets. 4.3.5.2 Determination of Compensation Rates 47. Replacement cost of land has been determined based on existing market rates to the extent possible and adding the applicable transaction cost like registration with the NAPR at the rayon level Registration Office and the rayon PRRC. Market rates where defined taking into account the type of land, its purported use, and location. 48. Replacement cost of houses/buildings was determined based on construction type, cost of materials, transportation, types of construction, land preparation, labour, and other construction costs at current rates. No deduction for depreciation and transaction costs will be applied. 49. Market value of annual crops has been determined at net market rates at the farm gate for the first year crop. In the eventuality that more than one-year compensation is due to the APs the crops after the first will be compensated at gross market value. 50. Tree market value has been set based on different methods for wood and fruit trees. Wood trees are valued based on growth category and value of wood of the tree at the age the tree was cut. Fruit trees will be compensated differently if they are productive or not yet productive. Productive trees will be compensated based on the future income lost for the years needed to re-grow a tree at the same age/production potential in which was cut. Non productive trees will be compensated based on the value of the investment made to grow the tree to the age in which the tree was cut. 51. The unit compensation rates recommended by the valuation company have been reviewed and approved by the RDMRDI and will be offered to the APs. Detailed methodology for determining valuations and compensation rates is included in Annex-1. 41 V. INSTITUTIONAL ARRANGEMENTS 5.1 Introduction 52. Ministry of Regional Development and Infrastructure (MRDI) is the executing agency (EA) of the Project on behalf of the Government of Georgia and the Roads Department of the MRDI (RDMRDI) is the implementing agency (IA). The World Bank (WB) will be financing the Project for civil works construction and construction supervision. RDMRDI is responsible for road construction as well as land acquisition and resettlement of the APs due to land acquisition and project construction. 53. RDMRDI is assisted by a number of other government departments and private agencies in the design, construction and operation of the Project. Pursuant to the active legislations, National Agency of Public Registry (NAPR) within the Ministry of Justice is in charge of the recognition of ownership rights of rightful owners, registration of land ownership, with process verification and certification from Village Communities, Notaries, Property Rights Recognition Commission (PRRC), and Sakrebulo. Rayon NAPR is also responsible for registering transfer of acquired land from landowners to the RDMRDI. The local government at Rayon and village levels are involved in the legalization of legalizable land parcels and subsequently land acquisition and resettlement of APs. The Ministry of Environmental Protection is responsible for environmental issues. 54. RAP comprises the road section in Khashuri Rayon of Shida Kartli Region. Khashuri Sakrebulo, Gamgeoba, Registration Office and PRRC are all involved in RAP. Local Sakrebulos and Rtsmunebuli of villages are involved for local level LAR activities. 5.2 Land Registration Organizations 55. Government agencies active at various levels in the process of legalization of privately owned land parcels are described hereunder. 5.2.1 Rtsmunebuli and Gamgeoba at Village ( Community) Level 56. Community level Gamgeoba is the executive branch of self-government headed by Rtsmunebuli. Rtsmunebuli has the primary role in the process of legalization and registration of land parcels. Rtsmunebuli confirms ownership of affected land plots, parameters of land plots and endorses the cadastral maps and related data prepared for case of legalization4. Gamgebeli plays important role for legalization of non-rightful owners (owners in possession before the enactment of current law on privatization of land in Georgia without prior permission of the government). Gamgeoba has power to authorize5 details of the occupied land parcel and 4 Owners for legalization of their unregistered land parcels, in normal procedure, use the services of private mapping agencies and experts on payment for preparation of land details (maps and plot parameters). In case of this project, the consultants have been assisting in preparing basic documents like maps and plot details. 5 This is not mandatory but one of the possible procedures for legalization of the non-rightful owners. Witnesses’ signature confirmed notarially is also legally acceptable for confirmation of non-rightful ownership of land plot. 42 verify its usage pattern as the first hand verification and authorization for further consideration in the Property Rights Registration Commission (PRRC) as a basic step for registration with the Public Registry. Neighbours of applicants for legalization have roles in the authorization process. Rtsmunebulis of the villages will be involved in RAP process of updating and implementation. 5.2.2 Sakrebulo 57. Sakrebulo is the representative branch of self-government at rayon and village level. The village/rayon level Sakrebulo has now less involvement in the process of legalization of legalizable land plots. However, Rayon Sakrebulo assists the PRRC in the process of authorization of application of non-rightful owners. 5.2.3 Property Rights Recognition Commission 58. Under the Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal entities; 2007, the Government of Georgia has established the PRRC at the Rayon level for recognition of ownership rights of non- rightful owners for registration. PRRC verifies and authorizes application of ownership for registration with the NAPR. PRRC authorizes application of only those APs, who are not registered but have residential land or agricultural plots adjacent to the residential land (“non- rightful land owners�, according to definition of Georgian regulations). 5.2.4 Rayon Registration Office 59. NAPR is in charge of the registration of land ownership and its transfer through purchase agreement from landowners to the RDMRDI. Rayon Archives are now transferred in the possession of the Rayon Registration Offices of the NAPR. Rayon Archive is used for cross verification of ownership document and validity of physical possession of land by persons seeking registration as legalizable owner, in the case, owner does not have available documentation proving ownership rights on the adjacent land plot or in case there is any doubt regarding the plot. 60. Rayon Registration Office of the NAPR is the Rayon level authority for executing registration of land parcels in the name of the applicants based on package of application documents provided by rightful owners (APs possessing ownership documents but with title formalization pending) or by non-rightful owners after receiving appropriate certificate from PRRC as the case may be. The owners submit both soft copy and hard copy of plot maps with geometric details for record in the Rayon and Central NAPR. Khashuri rayon office of NAPR is involved in the updating and implementation of RAP. 5.3 Land Acquisition and Resettlement Organizations 5.3.1 RDMRDI of Georgia 61. RDMRDI has the overall responsibility of design, land acquisition and resettlement, construction, construction monitoring and supervision of the Project. This also includes financing and executing land acquisition and resettlement tasks and cross-agency coordination. RDMRDI will exercise its functions through its existing Resettlement Unit (RU), which is currently 43 subdivision of the Roads Development and Resettlement Division (RDRD)6, and LAR Commission and Working Group7. . 62. A Resettlement Unit (RU) under the RDRD headed by a Head of the Unit and staffed with other personnel having specific experience and skills in LAR is responsible for LAR activities related to the project. The RU is a core team of the Working Group. RU is responsible for all technical work to accomplish all LAR preparation and implementation tasks and coordination within the RDMRDI, as well as at central and local government levels. 63. LAR Commission (LARC) within RDMRDI has the authority to finally endorse all LAR related decisions and actions (i.e. approval of RAP, initiation of compensation payments etc.). LARC sits for reviewing issues for decision on as and when necessary basis. LARC will oversee and monitor implementation of the RAP to ensure that all APs are duly compensated and that mitigating measures are instituted by the Civil Works Contractor as a result of temporary impacts. It is also the final pre-litigation authority to provide decision on grievances those cannot be resolved at the regional level. LARC will ensure that the Project is implemented in accordance with the WB OP 4.12 and ADB policy requirements and the approved RAP. A Grievance Redress Committee (GRC) at the Gamgeoba level of the Rayons will be working to resolve the grievances of APs as a means of reducing grievances and avoiding expropriation process for acquisition of land. 64. The structure of the LARC and Working Group includes experienced and skilled experts of economics and law, who simultaneously take responsible positions in RDMRDI. In case of need, on the basis of agreement with RDMRDI management and LARC the structure of the Working Group can be expanded inviting professionals of different sectors in response of the volume of LAR work for a project. The core team of the Working Group is represented by RU, which is supplemented by legal experts, financial experts, engineers and the like from other departments of RDMRDI. 65. The specific tasks of the Working Group and RU will be to (i) updating RAP following appropriate procedures as per RPF/LARF and send to donor IFI for approval, (ii) supervise preparation of RAP for construction contracts and implement it after concurrence from donor IFI; (iii) establish LAR capacity at the regional level offices of the RDMRDI; (iv) ensure proper internal monitoring; and (v) hire, following the donor IFI recommendation the external monitoring agency. 66. RU will also provide all necessary documentation to ensure the prompt allocation of land acquisition and resettlement budgets to the APs and will maintain the coordination of all land acquisition and resettlement related activities. 5.3.2 TRRC 6 At present, it is planned reorganization of the RD Resettlement Unit. In nearest future the Resettlement and Environmental Protection Devsion will be established, including separate Resettlement and Environmental Units. The staff of the Resettlement Unit will be increased from 4 up to 7 persons. Besides that, the Resettlement Unit will be assisted by two resettlement consultants – Social Safeguards Consultant and Local Resettlement Consultant 7 LAR Commission and Working Group have been established by RDMRDI first in 03.05.2007 by the order #40, and since then this mechanism is used for implementing LAR activities. 44 67. Transport Reform and Rehabilitation Centre (TRRC), a special independent agency, has been established within RDMRDI for financial management of ADB and World Bank financed projects. TRRC will get funds directly from the Ministry of Finance allocated for the project and disburse it to APs following requisition from RU, RDMRDI. TRRC will review, scrutinize and transfer the amount of compensation and allowances in the bank account of APs mentioned in the Compensation and Allowance Ledger prepared, confirmed and produced by RU for each AP. 5.3.3 Rayon LAR Team 68. Rayon LAR Team will assist the central LARC and provide assistance to APs in the process of legalization of legalizable owners. Based on the RDMRDI's LARC decision and the RAP prices, the offer of purchase of land parcels shall be undertaken. If an AP agrees on the acquisition he/she will confirm such agreement in writing by signing the Sales/Purchase Agreement that will be registered with the Public Registry. This agreement will serve as the basis for compensation payment processing and release. If agreement is not reached between the AP and the LAR Team, the later will inform the LARC, which will take decision to start expropriation. 5.3.4 Local Governments 69. Local administration especially at Rayon level has direct jurisdiction for land administration, valuation, verification and acquisition. To confirm the surveys and the asset valuations carried out by the LAR consultants, RDMRDI through its consultants will establish Rayon Level LAR Teams which will have designated officials from the Rayon administration (Rayon Sakrebulo; Gamgebeli) and representatives of each affected village/community administration (representatives of all affected community/village level Sakrebulos and Gamgebelis). The Rayon level LAR Teams have been formed in the district of Khashuri who are working closely with the consultants and RDMRDI. LAR Team of Khashuri rayon is participating in RAP preparation and implementation. 5.4 Other Organizations and Agencies 5.4.1 Civil Works Contractor 70. A Civil Works Contractor to be appointed by the RDMRDI to undertake the construction will be responsible for mitigating impacts resulting from the construction activities. Based on the RAP and the Technical Design, the parcel of land that will be identified and acquired as part of road ROW will be demarcated to clearly delineate it from the remaining non-acquired parts. The construction activities shall be monitored closely by the RDMRDI to ensure compliance to the temporary mitigating measures. 5.4.2 Consultants and Auditors 71. The design consultant will be responsible for preparation and implementation of RAP Iand a construction supervision consultant will be in place to supervise civil works construction. (i) Design Consultant: The design consultant has an international social development and resettlement specialist and a national resettlement / social specialist for finalizing RAP for each construction stage. The design consultant has hired a survey and independent audit agency for land acquisition and 45 resettlement survey and documentation including census, socioeconomic survey, inventory of losses, and valuation of land and assets for replacement value. RAP has been prepared based on findings of the surveys following the final alignment as per detailed engineering design. (ii) Social Safeguards Consultant: Social Safeguards Consultant (SSC) will oversee implementation of RAP and will prepare compliance reports before the civil works start. (iii) Local Resettlement Consultant will assist RD Resettlement Unit during the RAP implementation and oversee all resettlement related issues that may arise during the construction. 5.4.3 Court of Georgia 72. The Court of Georgia shall be the last resort for issues and concerns regarding the implementation of the RAP. In case there is no agreement between the RDRD and the APs concerning the acquisition of private properties, the RDMRDI with the mandate for expropriation based on existing legislations will submit to the Court a request for expropriation. Upon its approval and following prescribed procedure, RDMRDI will then take over the concerned property after having been given by the Court the right of the Expropriator. 73. Furthermore, in cases where complaints and grievances regarding RAP implementation and compensation are not solved at the various levels as prescribed in the agreed Grievance Redress Mechanism, the APs will have the right to appeal the case to the Court as a last resort. Its decision shall be final and executory. 5.4.4 Ministry of Finance 74. The budgets for the implementation of RAP will be provided to RDMRDI by the Ministry of Finance following its official approval. The RAP budget will be allocated on the accounts of TRRC that is responsible for the financial management of the project. 5.4.5 Ministry of Justice 75. The Ministry of Justice is responsible for legal matters regarding land ownership, and National Agency of Public Registry (NAPR) within the Ministry of Justice is in charge of the registration of land ownership and its transfer through purchase agreement from landowners to the Road Department. 5.4.6 Donor WB 76. Besides supervising the Project periodically, the WB will review RAP and provide clearance to contract awards signing and initiation of civil works for construction under Fourth East-West Highway Improvement Project (EWHIP). 77. An organization chart showing all the concerned institutions to be involved in the LAR activities is depicted in Figure 5.1: 5.5 Capacity Building on LAR 46 78. Initial level of capacity building exercise in the relevant agencies was carried out during the preparation of RAP at the feasibility study. Close consultations were held with all the concerned departments. RDMRDI has already an established Resettlement Unit under RDRD dealing with roads development, land acquisition and resettlement. During the feasibility study, informal training was provided by the consultant’s resettlement specialist to these officials on the requirements of WB OP 4.12 policy and how to develop a balanced compensation package fulfilling the requirements of APs, Government, RDMRDI, donor IFIs. Capacity building training was also initiated through a series of consultations and informal training sessions in the local administration level. The representative of RDMRDI at regional level was also responsible for the planning of LAR activities and was responsible for coordinating with the rayon administration. Rayon level LAR Teams were formed at each rayon that will be responsible for LAR activities assisting the LARC of the RDMRDI in the process of RAP implementation. 79. In terms of capacity and manpower resources within RU of the RDRD, some expansion of the capacity on LAR currently available at RDRD has been desired to allow an effective execution of all LAR related tasks for the project. RU of the RDRD is in a process of expansion and new staff members will be hired before the RAP implementation starts. New Resettlement and Environmental Protection Devsion will be established, including separate Resettlement and Environmental Units. The staff of the Resettlement Unit will be increased from 4 up to 7 persons. Besides that, the Resettlement Unit will be assisted by two resettlement consultants – Social Safeguards Consultant and Local Resettlement Consultant (LRC). Additional trainings for Resettlement Unit staff and engaged Consultants is considerd as necessary by RDMRDI. The detailed planning and negotiation with WB is under the way. All concerned staff both at RU, LARC, at Rayon and field levels involved in LAR activities will undergo training on WB resettlement policy and management. The training will be provided under the ADB RETA or similar WB programs for capacity building of executing agencies on involuntary resettlement.8 Training will cover the following topics: (i) Principles and procedures of land acquisition (WB and GOG); (ii) Stakeholders of the project (iii) Organizations involved in the process of land acquisition and resettlement and their roles (iv) Public consultation and participation process; (v) Entitlements and compensation and assistance disbursement mechanisms; (vi) Grievance redress; and (vii) Monitoring of resettlement operations. Figure 5.1 LAR Organization Chart 8 So far as RDMRDI is implementing also ADB financed projects, training under ADB financed programs is available and will complement the WB financed capacity building efforts. Regional Technical Assistance Project RETA-7433 REG: Mainstreaming Land Acquisition and Resettlement Safeguards in the Central and West Asia. 47 Government of ADB WB Georgia RDMRDI TRRC MOF Tbilisi Detail Design RU/RDRD LARC SSC and LRC Consultant Tbilisi LAR Working Line of Action Group Line of Coordination Khashuri LAR Team Rayon Court PRRC Ozurgeti Registration Khashuri PRRC, Khashuri Office (NAPR) Sakrebulo Gamgeoba 48 VI. CONSULTATION, AND PARTICIPATION 6.1 Introduction 80. Consultation and participation is a process through which stakeholders influence and share control over development initiatives, and the decisions and resources that affect them. It is a two way process where the executing agencies, policy makers, beneficiaries and AP discuss and share their concerns in a project process. Consultation and participation has been a major principle in the planning and preparation of the detailed design of the Project. WB OP 4.12 gives high priority on public consultation and participation to enhance the community voice and assure incorporation of community’s views in design and implementation of a socially and environmentally compliant project. The Georgian laws also place strong emphasis on consultation and notification to ensure that the AP participate in the process. 81. The focus of these consultations are to ensure that the AP and other stakeholders are informed, educated, consulted and allowed to participate actively in the process of road development and preparation of social and resettlement plan; reducing public resistance to change; helping mitigate and minimize any probable negative impact and bringing in the benefit of the project to the people. The project design and preparation of land acquisition and resettlement plans, therefore, attempted consultation and participation of the AP and communities to incorporate their views, needs and aspirations into the Project components. People were consulted during the feasibility study in 2009. The consultation process has stepped up at detail design through public consultation meetings and individual contacts during land acquisition and resettlement surveys in December 2012 – February 2013. The public consultations have been completed in March 2013. Detailed information on consultation metings is given in annex 4.. 6.2 Consultation Process and Methodology 82. Consultation with local communities and government bodies in the project process was instrumental for alignment demarcation and selection of route, intersection and underpass sites for the Agara Bypass – Gomi Bypass section of Highway. The route of the project road underwent several adjstments to avoid dense settlement, environmentally protected areas, civic amenities, and land acquisition. The public consultation process entailed clearly explaining the project and its impacts to the community through introducing the project and its impacts through leaflets in local language, clearly explaining to the communities in informal and formal consultation meetings and individual level discussion during the census and detailed measurement surveys of land and property. 83. Consultation with the APs in the project affected areas were conducted during the feasibility study stage of RAP preparation in 2009 and during the preparation of the draft RAP for in 2012 - 2013. The methodology includes walk-through informal group discussion, focused group discussion, individual interview, key informant interviews, and informal discussion. The APs, their community, and local government officials were consulted to inform, educate and provide feedback in the project design. 84. Specifically for this RAP the APs were consulted through individual contact during the census survey under the feasibility study for identification of APs. At the preparation of RAP in detail design stage, all likely AP persons were consulted through community level meetings and 49 through individual contact at the time of census, socioeconomic survey and detail measurement survey. 85. Various methods used for stakeholder’s consultation and participation with concerned stakeholders are described in Table 6.1. Table 6.1: Summary on Party consulted and consultation methods Stakeholders Purpose Method Likely APs and their • To inform the APs, get their views on • Meetings with all AH community likely impacts, eligibility and entitlements, during the implementation as well as procedures for compensation, of the socio-economic relocation and rehabilitation. survey. • Focus group discussions and village meetings Roads Department • To collect government's policy, guidelines • Frequent individual (RDMRDI) including its priorities on the project, and to seek meetings with the officials Resettlement Unit advise for work. of RDMRDI National Agency for Public • To collect the cadastral map and to know • Consultation and Registry under the the details of the affected parcels and discussion with officials ministry of Justice people Local Government at • To seek their cooperation for carrying out • Individual meetings with Rayon Level (District the impact assessment survey and to sort the officials of respective Municipality), Rtsmunebuli out the problem related to missing plots rayons and discussions (Legalizable Owners) Property Recognition • To seek their cooperation for carrying out • Meeting and training Commission in the Rayon the impact assessment survey and to sort Level and Sakrebulo out the problem related to missing plots (Legalizable Owners) 6.3 Summary of Consultation during Feasibility Study 86. The major findings of the consultations held at various locations during the feasibility study are summarized below. (i) The likely APs and their community are aware about the project. (ii) APs losing their properties expected a proper compensation package. (iii) The structure owners request adequate compensation to rebuild their structure at alternative site. They should get advance notice for relocation. (iv) Measures should focus on installing speed limit, children signs as well as putting pedestrian areas, adequate footpaths. (v) Government should provide the alternative land to the landless people for their relocation. (vi) The compensation should be based on the fair assessment. (vii) Contractors should be advised by the project authority to employ the local people. 6.4 Consultation meetings with the APs during RAP Preparation Consultation Process is ongoing: additional meetings in all affected municipalites will be carried out and information leaflets distributed. The protocols of these meetins will be reflected in the Final RAP to be completed with the completion of the Detailed Design. 50 6.5 Changes in LAR approach following the meetings 87. Following this meeting appropriate modification to the planned compensation program will be made. This was to more precisely differentiate the value of fruit trees taking into account that this is the region where fruit production is one of the core businesses. 6.6 Consultation and Participation Plan 88. RU on behalf of RDMRDI will pursue information disclosure for effective implementation and timely execution of RAP. Village level consultations with APs will be conducted during the implementation process. For the benefit of the community in general and APs in particular, RAP will be made available in concerned offices at rayon Sakrebulo and the community level Gamgeoba. An information leaflet (in Georgian) will be distributed among the APs and their community. A copy of the English version of LAR Leaflet is attached in Annexure-7.1. 89. For continued consultations, the following steps are envisaged in the project: (i) Final RAP will be disclosed upon receiving approval from the WB (ii) RDMRDI will organize public meetings and will apprise the communities about the progress in the implementation of resettlement, and social activities. (iii) RDMRDI through its RU will organize public meetings to inform the community about the compensation and assistance to be paid. Regular update of the progress of the resettlement component of the project will be placed for public display at the local level RDMRDI office and at local Rayon Office. (iv) All monitoring and evaluation reports of RAP component of the project will be disclosed to the community. (v) Key features of the entitlements will be disclosed along the project corridor. (vi) RDMRDI will conduct information dissemination sessions at Gamgeoba and solicit the help of the local community leaders to encourage the participation of the APs in RAP implementation. (vii) Attempts will be made to ensure that vulnerable groups understand the process and to take their specific needs into account. 6.7 Disclosure 90. Electronic version of the Final draft RAP will be placed on RDMRDI web-site. The summary of RAP will be translated into local language (Georgian) and will be disclosed to APs at local level. The copy of the RAPI (Georgian version) will be available at the concerned offices of Kareli Municipality. The final RAP will be submitted to the WB for approval and signing of contract awards will follow after completion of legalization of the legalizable owners of the land parcels under acquisition. 51 VII. GRIEVANCE REDRESS MECHANISM 7.1 Objectives 91. A grievance mechanism will be established to allow a AP appealing any disagreeable decision, practice or activity arising from land or other assets compensation. APs will be fully informed of their rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey, and time of compensation. Care will always be taken to prevent grievances rather than going through a redress process. This can be done through careful LAR design and implementation, by ensuring full participation and consultation with the APs, and by establishing extensive communication and coordination between the affected communities, the RDMRDI, and local governments in general. 7.2 Formation of GRC 92. A Grievance Redress Committee (GRC) will be established at the community level in each Gamgeoba (village/community authority) to resolve complaints and grievances informally through community participation. The GRC will be formed with representatives from RDMRDI, local Gamgeoba, APs, women APs (if any), and appropriate local NGOs to allow voices of the affected communities to be heard and ensure a participatory decision-making process. GRC decisions will be on a majority basis and will be publicized among the local communities. If the complainants are not satisfied with the GRC decisions, they can always file their cases in court. 93. GRCs will be established at the community level at Gamgeoba with an office order from the Ministry of Regional Development and Infrastructure (MRDI) with provision of 6 members of following composition: (i) Representative of LAR Commission of RDMRDI : Convener (ii) Representative Rayon LAR team : Member Secretary (iii) Gamgebeli – concerned Gamgeoba (village level) : Member (iv) Representative of APs : Member (v) Representative of Women APs : Member (vi) Representative local NGO : Member (vii)LAR Specialist of Supervision Consultants : Member 7.3 Grievance Resolution Process 94. The member secretary of GRCs and Rayon level LAR Team will be regularly available and accessible for APs to address concerns and grievances. The LAR Team will assist the aggrieved APs in formally lodging their claims to the GRC and where applicable to the Working Group of RU at RDMRDI in Tbilisi. The complaints and grievances from the APs will be addressed through the process described below in Table 7.1. The grievance resolution and acquisition processes are presented the flow diagram shown at Figure 7.1. 52 Table 7.1: Grievance Resolution Process Steps Action level Process Step 1 Contract When during the contract discussion any grievances arise, solutions acceptable to both agreement Rayon’s LAR Team and the APs will be sought. If any aggrieved AP is not satisfied with the solutions, the next option will be to lodge grievances to the GRC. Step GRC If the grievance is not solved at the previous level, the LAR Team will assist the 2 Resolution aggrieved APs to formally lodge the grievances with the respective GRC. The GRC member secretary will review the complaint and prepare a Case File for GRC hearing and resolution. A formal hearing will be held with the GRC at a date fixed by the GRC member secretary in consultation with Convenor and the aggrieved APs. On the date of hearing, the aggrieved AP will appear before the GRC at the Gamgeoba office for consideration of grievance. The member secretary will note down the statements of the complainant and document all details of the claim. The decisions from majority of the members will be considered final from the GRC and will be issued by the Convenor and signed by other members of the GRC. The case record will be updated and the decision will be communicated to the complainant AP by the LAR Team at the village level. Step Decision from If any aggrieved AP is unsatisfied with the GRC decision, the next option will be to 3 central lodge grievances to the Working Group of RU at RDMRDI at the national level. The RDMRDI complainants, must produce documents supporting his/her claim. The Working Group will review the GRC hearing records and convey its decisions to the aggrieved APs within 2 weeks after receiving the complaint. Step Decision from If the grievance redress system fails to satisfy the aggrieved APs, they can pursue 4 court further action by submitting their case to the appropriate court of law (Rayon Court). In case, if the ruling by the court is below the market price assessed through the open market survey earlier, RDMRDI will provide additional funds to ensure that compensation provided reflects full replacement cost. 7.4 GRC Records and Documentation 95. RU of RDMRDI headquarters will keep record of complaints received for its use as well as for review by the WB during regular supervisions. 53 Figure 7.1 Grievance Resolution and Acquisition Process Rayon Court Expropriation Grievance Unresolved Possession Taken Over by RDMRDI Grievance Resolution Working Group Land Transferred to Grievance RDMRDI Unresolved Grievance Resolution Grievance in GRC Resolved Payment Negotiation Fails Negotiation Negotiation Agreement Signed LAR Team/AP Successful AP (AP) 54 VIII. IMPLEMENTATION SCHEDULE 8.1 General 96. The time bound implementation schedule of the RAP has been prepared in consultation with the RDMRDI. All activities related to LAR have been planned to ensure that compensation is paid prior to displacement and commencement of civil works construction. The most important acquisition activity, relating to the privatization process in Georgia, is the legalization of legalizable owners of the identified land parcels for acquisition. The legal status of affected land parcels in the project road in Khashuri Rayon has been identified through title search during the land acquisition and resettlement survey and documentation work in December 2012 – January 2013. The titled and non-titled but legalizable owners of land parcels to be acquired have been identified in the survey. 97. The present document is the draft of final version of the RAP9. RDMRDI has reviewed and approved this document including compensation package and compensation rates and forwarded to the WB for approval. Tasks for the RAP are divided into (i) Final Preparation including RAP approval various Initial tasks including legalization of legalizable APs and signing of contracts with APs.; (ii) RAP implementation including processing and making payment of compensation and allowances and (iii) evaluation of implementation. Public consultation, internal monitoring and grievance redress will be undertaken intermittently throughout the project duration. The LAR milestones include (i) approval of RAP, (ii) signing of contract awards, (iii) letter to proceed for civil works construction and (iv) start of physical civil works. A post – implementation evaluation will be carried out after completion of RAP implementation. 8.2 RAP Approval and Initial Tasks 98. The Resettlement Unit of the RDRD under RDMRDI sets up relevant institutions and line up TRRC, LARC, Working Group/LAR Team, GRC and the like for the Project. Upon completion of the draft RAP from the detail design consultant, the RU reviews and approve the document including compensation rates. RD will submit the approved RAP WB for approval. Meanwhile, RD will implement actions for legalization of legalizable owners listed in the ACS of RAP (ACS-I) at the field level. All arrangements will be set for signing the contract agreement with the APs and the process will be executed for land purchase and compensation agreements. The capacity building exercise will be enhanced during this stage. Representatives of the APs and NGOs may be involved in LAR training at this stage. After completion of legalization of all legalizable owners of land parcels under RAP, RDMRDI will award civil works contracts (signing of contract awards). The initial LAR activities will be the following: (i) Establishment of LAR Institutions and GRM; (ii) Legalization of Rightful owners of land parcels; (iii) Agreement with APs and signing contract agreements; (iv) Updating of LAR Budgets and ACS-I; (v) Confirmation of updated impact data and of compensation amounts; (vi) Approval of RAP by WB and Government. 9 Preliminary version of RAP was developed at the Feasibility stage; 55 8.3 RAP Implementation 99. Payment of compensation and allowances under RAP will commence after a number of preparatory tasks have been completed. These tasks are: (i) Signing of contacts with APs (ii) Disclosure and consultation (iii) Capacity building training of LAR institutions, APs and NGOs (iv) Grievance resolution (v) Requisition to TRRC for payment of compensation and allowances (vi) Transfer of compensation and allowance to APs' bank account and registration of land in PR on RDMRDI name (vii) Relocation of affected structures/ assets (viii) Compliance review and reporting (ix) Notice to proceed for Civil works construction (x) Monitoring 8.4 Post Implementation Evaluation 100. The post-implementation evaluation will be conducted after one year of completion of the RAP implementation and upon start of the civil works construction. An independent External Monitoring Agency (EMA) will carry out the evaluation. The EMA will carry out interim monitoring on a quarterly basis. In case, if the CSC is engaged at the stages when external monitoring is required, the CSC may have the responsibility for the external monitoring and post implementation evaluation. 8.5 RAP Implementation Time Schedule 101. The time bound RAP implementation is presented in Figure 8.1. Land purchase agreements and payment of compensation and allowances will go simultaneously and a sequence of one week time from offer of compensation to agreement, agreement to requisition and requisition to payment transfer is considered. A buffer period of one month has been included in the schedule for relocation of housing. Relocation of housing will also go by sections. Under the circumstances, the implementation schedule may include phased approach for civil works construction. 56 Figure 8.1: RAP Implementation Schedule 2012 2013 RAP Tasks November December January February March April May June July 1 2 1 2 3 4 2 3 4 3 4 1 2 3 4 1 2 3 4 1 2 3 4 End of RAP surveys/valuation LAR Institutions Establishment AP Consultation Draft RAP Finalized WB final review And approval Government approval Disclosure Contract awards signing Legalization AP agreements signing Allocation of LAR budget Transfer of budget to TRRC Transfer of budget to AP bank account Compensation deposit in TRRC account x unsolved cases Grievance resolution Court proceedings in case of expropriation 57 Figure 8.1: RAP Implementation Schedule 2012 2013 RAP Tasks November December January February March April May June July 1 2 1 2 3 4 2 3 4 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Relocation of affected structures Compliance report By EMA Note from WB to start civi lworks Start of physical construction Internal Monitoring External Monitoring 58 IX. COSTS AND FINANCING 9.1 General 102. The land acquisition and resettlement cost estimate under RAP includes eligible compensation, resettlement allowances and support cost for implementation of LAR tasks. The support cost, which includes administrative expense, is part of the overall project cost. Contingency provisions (@ 10% of the total cost) have also been included to take into account variations from this estimate at the negotiation for contract agreement level. In case of any over- run in cost, RDMRDI will provide additional funds as needed in a timely fashion. RDMRDI through the approval of Ministry of Finance will be responsible for allocating the LAR Budget in advance as part of their overall annual budget planning. Items of LAR cost estimate under RAP are as follows: (i) Compensation for agricultural, pasture, and commercial land at replacement value (ii) Compensation for structures and buildings at their replacement cost (iii) Compensation for crops and trees (iv) Assistance for severely affected AH (v) Assistance for vulnerable groups for their livelihood restoration (vi) Cost for implementation of RAP. 9.2 Itemized Budgets 103. The following section deals with calculations for various types of compensation and allowances as per the entitlements and as per the rates determined at current market cost. Compensation will be provided at least at the rates detailed in this RAP although some modification in excess will be possible during the discussions preceding the signing of the contract. 9.2.1 Compensation for Land 104. Compensation of agricultural land has been derived based on the feedback from the affected people and from the independent evaluator. The land is categorized in to two types such as agricultural and non-agricultural (commercial or residential). All agricultural land affected in this section is irrigated. Cost of legalization and residual land unviable for cultivation is included in the costs. The costs for various categories of land loss are given in Table 9.1. Table 9.1: Cost for Land Acquisition (including unviable plots) Cost Total Cost Land Category/ use and Group Plots No. Area (sqm) GEL per sq.m (Gel) Type 1 , 2 and 3 (compensable Land) 19 - 31KM Type 1 Private agricultural irrigated land 132 144,488 3 433,464 Agricultural used for annual crops and fruit tree (3 Gel/sq.m) gardens (remote from the existing section of highway;) Type 2 Private agricultural irrigated land 118 185,325 4 741,300 Agricultural used for annual crops and fruit tree (4 Gel/sq.m) gardens (located along the existing section of highway, within a distance of 100m from centeline) Type 3 Private non-agricultural land used 4 170,196 Non- for commercial needs (remote from Agricultural the existing section of highway;) 5 42,549 59 Commercial (4 Gel/sq.m) Total Compensable Land 1,344,960 (Type 1 + Type 2 + Type 3)  255 372,362 252 9.2.1 Compensation for Structures 105. Compensation of structures is based on the current market price of materials, transportation and construction works needed for construction of similar materials. Condition of basement, bearing structures, roof, materials, decoration, sanitation, water and power supply, external lighting systems are considered. Most of the structures are cemented in nature. Detailed valuation is given in technical annexes. Some details break up is given in Table 9.2. Provided costs include expenses on relocation of the movable facilities. Table 9.2: Cost of Affected Structures No. Item Type of Number No. Unit Quantity Cost construction of Storey Structure (GEL) 19 - 31KM 1 Old Farm Concrete/hollow 560 ,000 blocks 1 1 Sqm 800 2 Gas Filling Station Concrete/hollow blocks 1 7 Sqm 772,9 Fence 1 Sqm 1800 Dead-end railway track Total 3,532,000 3 Residential House with supporting facilities Residential Concrete/hollow House blocks/brick 2 1 Sqm 166 Ancillary Concrete/hollow 1 1 Sqm 41.3 building blocks/brick Small ancillary 23.2 buildings 1 2 (sheds) Total 299,650 4 Fences 2 Sqm 600 20,400 GRAND 4,412,050 15 TOTAL 60 9.2.2 Compensation for Income Losses (Business Iand Job losses) 106. The project implementation affects only one business. This is operating Gas Filling station, used to fill gas cilinders. The basic structures fall within the RoW of designed road and should be replaced. The movable facilities will be relocated by owner. As a compensation for structure the owner is paid full replacement cost for the building, inclusive costs needed for relocation of movable facilities. As a specific item of compensation for interrupted business, the AH will receive cash indemnity in amount of officially confirmed (by tax declaration) 1 year net income. Details of compensation are provided in the table 9.3. Table 9.3: Compensation of Income Losses 1 Business Losses Annual Income Rate Years Cost GEL Compensated (In GEL) Gas Filling Station 22,500 1 22,500 Total Business 22,500 Compensation 2. Job Losses Amount of Employees Compensation Cost Rates Employees of Gas 7 891 GEL* 6,237 filling Station Total 6,237 Compensation for job losses * indemnity for lost wages equal to 3 months of minimum subsistence income for the family consisting of 5 persons (297 Gel for December 2012). 9.2.3 Compensation for Crops 107. Crop compensation will be paid to all APs in cash at full market rate. The major crop found in the project road is cereals, vegetable, strawberry and hay/grass. The detail on crop compensation is described in Table 9.4. Table 9.4: Cost of Affected Crops Crop Number of Land Area sq.m Unit Rate (GEL Cost (In GEL) Plots sqm) Wheat 116 262,588 0.4 105,035.2 Maize 79 57,390 0.4 22,956 Vegetables 55  8,835 0.5 4,417.5 Total 250 328,813 132,409 9.2.4 Compensation of Trees 108. The 1 year non-productive fruit trees will be compensated at the price of 1 year seedling. Partially productive trees will be compensated at aggregated cost of seedling price and fruit 61 income calculated based on productivity of partially productive tree and compensation years needed to grow up the same age tree from the seedling of age startin productivity. For example, 4 years old walnut will be compensated at the cost of the 1 year seedling plus the income of partially productive tree (for 2 years needed to grow up 4 years old tree, from the 2 year seedling, when the tree starts to bring fruits). The fully productive trees will be compensated based on price of seedling plus income of fully productive tree for the years needed to grow up fully productive tree from the 1 year seedling. Tables with the calculation of trees costs are given in Table 9.5 below Table 9.6: Compensation for Productive Fruit Trees Average  wholesale  Total  cost    x  Cost for  Annual  Type  Groups  by  productivity  Market  Years  to  be  Cost  for  1  tree  1  income,  No of trees  Age  in  1  year,  price  1  kg.,  compensated  tree, GEL  compensation  seedling  GEL  kg.  GEL  (Gel)  Partiallly  4  3  0,9  72  4  291  0  0  Productive    5  80  3  0,9  72 5  363  0  0  6  80  3  0,9  72 5  363  75  27,225  7  80  3  0,9  72 5  363  172  62,436  Apple  9  80  3  0,9  72 5  363  86  31,218  11  80  3  0,9  72 5  363  200  72,600  12  80  3  0,9  72 5  363  103  37,389  20  80  3  0,9  72 5  363  0  0        Sub Total                    636  230,868  Partiallly  9  5  1,4  56  8  453  0  0  Productive    10  40  5  1,4  56 10  565  0  0  11  40  5  1,4  56 10  565  8  4,520  12  40  5  1,4  56 10  565  1  565  Wallnut  14  40  5  1,4  56 10  565  0  0  15  40  5  1,4  56 10  565  4  2,260  25  40  5  1,4  56 10  565  0  0        Sub Total                    13  7,345  0  0           Total                    649  238,213  Total cost of trees is 238,213 Gel. 62 9.2.5 Resettlement Allowances 109. There are three type of allowances being provided to the AH. These are: (i) Severe Impact Allowance, and (ii) Allowance for vulnerable and (iii) Relocation Allowance. The costs for relocation of movable business facilities have been incorporated in the compensation cost for structures. Following are the description of each category of unit rates proposed for various allowances. (i) The allowance for vulnerable AP is three months of minimum subsistence income at the unit rate of 297 per month per AH10 or 891 GEL for the AH. Total allowances for 57 vulnerable AHs is equal to 50,787 GEL. (ii) The unit rate for severe impact allowances have been considered based on crop compensation given to the AH or three months of minimum subsistence income, in case if crop compensation is not applicable. 188 severely affected AHs receive crop compensation and accordingly the allowance will be given as additional crop compensation equivalent to 2 year yeald. This sum is equal to 192,983 GEL. 1 owner of business and his 7 employees wil receive as alowance 891 GEL each (total sum is 7,128 Gel). Total alawances for severe impact – 200,111 GEL. (iii) 1 AH is relocated from his residential house and he is eligible for provision of allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income. 200 GEL as vehicle hire charge + 297GEL as minimum subsistence income x 3 months = 1,091 GEL per AH 110. Details of calculations on various types of allowances are described in Table 9.7. Table 9.7: Cost for Allowances No. Item Unit Unit rate (GEL) Quantity Cost (GEL) 1 equivalent to crop Numbers Severely Affected AHs compensation or 891 Gel 188 200,111 2 Numbers 891 Vulnerable Households 57 50,787 3 Relocated AH numbers 1,091 GEL per AH 1 1,091 Total 251,989 * indemnity for lost wages equal to 3 months of minimum subsistence income for the family consisting of 5 persons (297 Gel for December 2012) 9.3 RAP Management Cost 111. The Construction Supervision Contractor will conduct external monitoring. However, RU, RDMRDI will need to employ one independent monitoring agency for external monitoring of RAP implementation for a period of 2 months (in case the CSC is not in place during updating and implementation of the RAP. Miscellaneous expenses have been kept as a provision to cover the administrative cost as may be incurred during implementation of the RAP. Details of the RAP implementation management cost is given in Table 9.8 10 indemnity for lost wages equal to 3 months of minimum subsistence income for the family consisting of 5 persons (297 Gel for December 2012) 63 Table 9.8 Capacity Building and Management Cost No. Item Unit Quantity Unit Cost(GEL) Total Cost (GEL) Cost for EMA (Social 1 Safeguards Consultant) Months 24 4000 96,000 Miscellaneous Administrative 2 Cost Months 24 1000 24,000 Total 120,000 9.4 Summary LAR Cost and Flow of Funds 112. The total LAR cost calculated for the implementation of this RAP constitutes 7,089,014 GEL (USD 4,296,372). The summary LAR cost estimate is given in Table 9.9. All LAR related funds will be spent in one full year before the start of civil works construction. If the implementation of this RAP covers two fiscals, the allocation of funds will be sought accordingly. Transport Reform and Rehabilitation Centre (TRRC) is responsible for financial management of external financed projects. TRRC will get funds directly from the Ministry of Finance allocated for the project and disburse to APs following requisition from RU, RDMRI. Table 9.9: Summary Estimate of LAR Costs No. Item Cost in GEL Cost in USD A Compensation 1 Compensation for Land 1,344,960 2 Compensation for Structures/Buildings 4,412,050 3 Compensation of Affected Businesses 22,500 4 Compensation of job losees 6,237 5 Compensation of crop 132,409 Compensation for 2848 productive and partially 6 productive Fruit Trees 238,213 Registration fees for 200 residual land plots subject for 7 registration 10,200 Sub Total A 6,166,569 B Allowances 1 Severely affected AHs 200,111 2 Vulnerable Households 50,787 3 Relocation Allowance 1,091 Sub Total B 251,989 C Support Cost for RP Implementation 2 Cost for EMA 10,000 3 Miscellaneous Administrative Cost 16,000 Sub Total C 26,000 Total R&R Cost (A+B+C) 6,444,558 D. 10% Contingency 644,456 Grand Total 7,089,014 4,296,372 9.5 Justification of Cost Estimates and Updating LAR Budget 64 113. Land acquisition and resettlement surveys included a valuation survey of affected land and assets. The survey consulted relevant transactions in case of land and local markets in case of building, trees and crops. In determining allowances to vulnerable households, the existing minimum salary rates have been considered. 114. A detail measurement survey was conducted to assess the affected buildings and structures and subsequently a detailed market survey for valuation of construction costs for each type of affected structure. 115. As for compensation to crops, the actual market price has been considered for valuation of crops. 116. The prices are, therefore, replacement value at current market cost and ensures full replacement cost to the affected land, building/structures, crops and trees. Detailed methodology followed for determining replace value of affected assets is given in Annex 1. 9.6 Source of Financing 117. All funds for compensation and allowances commensurate to RAP will be provided from the Government of Georgia’s public fund. RDMRDI will ensure the allocation of funds for compensation to be paid for land acquisition and resettlement. RDMRDI will get the budget approved from the Ministry of Finance and allocate in advance the funds for implementation of RAP. 65 X. MONITORING AND REPORTING 10.1 Introduction 118. The main objective of implementation of RAP is to improve or at least restore the social and livelihood resources of the APs at their pre-project level. The process of implementation should ensure that this objective is achieved over a reasonable time with allocated resources. Therefore, monitoring of the process of updating RAP, its implementation and delivery of institutional and financial assistance to the APs has been designed as an integral part of the overall functioning and management of the Project. RU of RDMRDI will ensure the execution of timely monitoring of the monitoring and evaluation (M&E) indicators (process, delivery and impact indicators) of LAR tasks. The purpose of the Monitoring and Evaluation (M&E) is to provide feedback to all stakeholders on progress made in view of a timely and comprehensive implementation of the RAP and to identify problems as early as possible to facilitate well-timed adjustment of implementation arrangements. The objectives are to: (i) ensure that the standard of living of APs are restored or improved; (ii) ascertain whether activities are in progress as per schedule and the timelines are being met; (iii) assess whether the compensation, rehabilitation measures are sufficient; (iv) identify problems or potential issues; and (v) identify methods to rapidly mitigate problems. 10.2 Monitoring and Evaluation Indicators 119. Compliance of the RAP policy and targets in the implementation process will be monitored against set indicators. These indicators and benchmarks will be judged for implementation process, outcomes and impacts.. 10.3 Level of Monitoring 120. Monitoring of LAR task in the Project will be carried out at two levels. The Head of RU will carry out regular internal monitoring for the RDMRDI with inputs from LAR teams at field operation. Local Resettlement Consultant will assist RD Resettlement Unit during the RAP implementation and will be responsible for internal monitoring. The LRC will also carry out supervision and monitoring to assist RDMRDI and WB in relation with the resettlement impacts at the civil works stage. External monitoring will be commissioned by RDMRDI employing Social Safeguards Consultant. 10.4 Internal Monitoring 121. Internal monitoring will be carried out routinely by RU during implementation of the RAP. The key person in this process will be the Local Resettlement Consultant. The results will be communicated to the LARC and WB monthly. Indicators for internal monitoring will be those related to process, immediate outputs and impacts. This information will be collected directly from the RU representatives in the rayon level LAR Teams and Working Group and reported to LARC to assess the progress and results of RAP implementation, and to adjust the work program, if necessary. The monthly reports will be quarterly consolidated in the standard supervision reports to the WB. 122. The report of internal monitoring will contain: (i) accomplishment to-date, (ii) objectives attained and not attained during the period, (iii) problems encountered, and (iv) suggested options for corrective measures. The internal monitoring report will primarily be prepared by the RU resettlement specialists.. 10.5 External Monitoring 66 123. According to the tasks, external monitoring will be carried out by an Social Safeguards Consultant hired by RDMRDI,. The tasks assigned to the SSC will be the external monitoring of RAP implementation and the preparation at its end of a compliance report which will the basis for WB to provide “No Objection� to the start of civil works.. 10.5.1 EMA Tasks 124. For each subproject involving land acquisition/resettlement, the SSC will closely monitor the implementation of the RAP and engage in the following tasks: (i) review of RAP and Information pamphlet disclosure; (ii) review of action taken by the PIU to compensate the APs with particular attention to the way this action fits the stipulation of the RAP; (iii) review all compensation tallies; (iv) verify whether the compensation is provided thoroughly to all APs and in the amounts defined in the RAP and in the AP contracts; (v) asses the satisfaction of the APs with the information campaign and with the compensation/rehabilitation package offered to them; (vi) review the legalization process and assess its effectiveness; (vii) review complaints & grievances case; (vii) carry out an AP satisfaction survey with a 20% sample of the APs. Immediately after the implementation of the RAP the SSC will prepare the Compliance Report. The report will include well argued sections on the following: (i) Assessment of the way the compensation has been carried out in relation of the stipulations of the RAP; (ii) Verification that all APs have been compensated in the amounts stipulated in the RAP (iii) Assessment of the accuracy of survey and asset valuation (iv) Assessment of the effectiveness and thoroughness of the Legalization process (v) Review of complaint and grievance cases and of their solution (vi) Assessment of the rehabilitation program for severely affected and vulnerable APs (vii) Assessment of the satisfaction of the APs (viii) Lesson learned to be applied to the next projects, and; (ix) General assessment of RAP implementation and recommendations to WB regarding the provision of “No Objection� Letter to start the civil works. 125. The SSC will carry out its activities in close communication with the PIU and will engage in desk activities and field activities and for this s/he will hire an appropriate number of assistants to carry out the AP satisfaction survey and to review the compensation tallies. The monitoring activities assigned to the consultant will start immediately after Government approval of the RAPs and will last until RAP implementation is concluded. 10.5.2 Post-Implementation Evaluation 126. The supervision consultants’ resettlement specialists will carry out a post- implementation evaluation of the RAP about a year after completion of its implementation. The compelling reason for this study is to find out if the objectives of the RAP have been attained or not. The benchmark data of socioeconomic survey of severely affected APs conducted during the preparation of the RAP will be used to compare the pre and post project conditions. The post- implementation evaluation will recommend appropriate supplemental assistance for the 67 APs should the outcome of the study show that the objectives of the RAP have not been attained. For this task the Supervision consultants will: (i) Review as needed the survey indicators (ii) Assess the livelihood impact of the land acquisition/resettlement on the APs through formal and informal surveys with the population in project areas affected and non-affected. The SSC shall conduct a formal survey of a representative sample of men and women APs to determine changes that have occurred on the APs. In parallel the SSC will also compare the situation of the APs with non- affected neighbors similar in terms of livelihood level to the APs. Focus group discussions and other unstructured data gathering methods and consultation with APs, officials and community leaders will also be used in carrying out the evaluation to supplement the findings from the formal survey. Finally the assessment will look into potential differential impact or benefit that men and women have APs experienced from the resettlement activities. The result of the surveys will serve as the end term review report of the SSC for the Project. (iii) Assess again satisfaction on the valuation of assets and entitlements, timing of payments, fund availability and disbursements. In the same post-RAP survey, the SSC shall ascertain the satisfaction of APs on the valuation of assets, as well as, the scope and timing of assistance provided under the RAP. (iv) Assess the long-term efficiency, effectiveness and sustainability of the land acquisition/resettlement program, drawing lessons for future resettlement policy formulation and planning and future RAP planning and implementation. Should the outcome of the study show that the RAP objectives have not been attained, the SSC will recommend appropriate supplemental assistance for the APs. (v) Preparation of the valuation report. Prior to submission of the post-RAP report, the SSC shall ensure that informal and formal meetings are held with the men and women representatives from the APs, community leaders and other key officials and seek feedback on the contents/analysis in the review report. Highlights of these consultations will also be attached as annex to the report. 10.5.3 Monitoring Indicators for Task 2 127. Task 2 will be based among others on the monitoring indicators listed in table in Table 1. Table 10.1: Monitoring Indicators for Task 2 Monitoring Indicator Basis for Indicators • Location • Composition and structure: ages, educational and skill levels • Gender of household head • Ethnic group • Access to health, education, utilities, and other social services • Housing type Basic Information on AP • Land and other resource ownership and utilization patterns Households • Occupations and employment patterns • Income sources and levels • Agricultural production data (for rural households) • Participation in neighbourhood or community groups • Access to cultural sites and events • Value of all asset forming entitlements and resettlement entitlements • What changes have occurred in terms of patterns of occupation, production, and resource use compared to the pre-project situation? • What changes have occurred in income and expenditure patterns Benefit Monitoring compared to the pre-project situation? • What have been the changes in cost of living compared to the pre-project situation? 68 Table 10.1: Monitoring Indicators for Task 2 Monitoring Indicator Basis for Indicators • Have APs’ incomes kept pace with these changes? • What changes have taken place in key social and cultural parameters relating to living standards? • Were house compensations made free of depreciation, fees or transfer Restoration of Living costs to the APs? Standards • Have perceptions of community been changed? • Have the AP achieved replacement of key social and cultural elements? • Were compensation payments free of deduction for depreciation, fees or transfer costs to the AP? • Were compensation payments sufficient to replace lost assets? • Was sufficient replacement land available of suitable standard? • Did transfer and relocation payments cover these costs? Restoration of Livelihood • Did income substitution allow for re-establishment of enterprises and production? • Have enterprises affected received sufficient assistance to re-establish themselves? • Do jobs provided restore pre-project income levels and living standards? • How much does the AP know about resettlement, procedures and entitlements? • Do they know if these have been met? • How do the AP assess the extent to which their own living standards and Levels of AP Satisfaction livelihoods • Have been restored? • How much does the AP know about grievance and conflict resolution procedures? • How did resettlement implementers deal with unforeseen problems? • Were the AP and their assets correctly enumerated? • Were land speculators assisted? Effectiveness of • Was the time frame and budget sufficient to meet objectives? Resettlement Planning • Were entitlements too appropriate (wide or narrow)? • Were vulnerable groups identified and assisted? • Were there unintended environmental impacts? Other Impacts • Were there unintended impacts on employment or incomes? 1 Annex 1 Valuation Methods, Valuation of Losses and Compensations Valuation of the Cost of Buildings and Structures 1. Land Valuation; Land has been valued at replacement cost based on the average market value. That is based on the average sale value of comparable land in type, location and features. Based on the average market sales, adjustments were made according to the comparison parameters, in the following sequence as applicable: (i) Transfer of ownership rights for the real estate property; (ii) Financial conditions; (iii) Sale conditions; (iv) Further costs related to sale; (v) Sales dynamics at the market (the sale date); (vi) Location; (vii) Physical parameters; (viii) Economic parameters; (ix) Use; (x) Existence of real estate property. Calculation of the Market Value Using Sale Comparison Method The plots to be evaluated are located in the villages of Khashuri district. The above mentioned land plots are situated at the both sides of the planned RikoTi – Ruisi highway. The plots to be evaluated are compactly located for 12 km length. The land plot prices are almost the same along the area. The plots were united in 3 groups, which are similar in their parameters (use, parameters, physical location, etc.) and their market value will be similar. The groups were divided as agricultural land and non-agricultural (commercial) land. The environment to be necessarily analyzed for evaluation purposes (market segment) was identified within the above mentioned villages. The market segment of the property to be assessed is characterized by arable, pasture and commercial (non-agricultural) use. During the evaluation process and with the aim to identify the market value of the land plots to be assessed we obtained data on the analogues. The information is based upon the proposals on the existing market (source of information is indicated everywhere), which is given in Table 1. 1 Table 1 - Data on Analogues to Be Compared Land Use Cost of contract or offer, # Area Location, Address Source of information Category lari www.nev.saqme.ge 1 584 sq.m Agricultural v. Urbnisi, near the road 3 GEL/sq.m. advertisement #94567 22/06/2011 www.nev.saqme.ge 2 860 sq.m Agricultural v. Urbnisi, near the road 3 GEL/sq.m advertisement #94567 22/06/2011 www.nev.saqme.ge 3 3069 sq.m Non-agricultural v. Ruisi, near the road 0,5 GEL/sq.m advertisement #94564 22/06/2011 Agricultural v. Ruisi, near the road Information from land 4 2000 sq.m 1 GEL/sq.m owner. Purchased without registration Agricultural v. Ruisi, near the road www.nev.saqme.ge   5 200 sq.m. 5 GEL/sq.m advertisemen #94564 22/06/2011  Agricultural v. Ruisi, near the road www.nev.saqme.ge   6 401 sq.m 5 GEL/sq.m. advertisemen #94564 22/06/2011  Agricultural v. Ruisi, near the road www.nev.saqme.ge   7 510 sq.m 5 GEL/sq.m advertisemen #94564 22/06/2011  Agricultural v. Ruisi, near the road Information from land 8 2424 sq.m 1 GEL/sq.m owner. Purchased without registration Notes: 1. During the selection it was assumed that the selected analogues were similar to the objects to be assessed in physical characteristics. 2. The information on analogues was obtained from the internet, media and broker firms, because there is no exchange market of real estate in Georgia and sale- purchase has sporadic nature and is based upon the reached agreement. RAP_Rev01 Annexes - Page 1 2 Table 2 - Correctives for Plots to Be Evaluated (Prices in USD, Measure – 1 sq. m.) Criteria for comparing Analogue #1 Analogue #2 Analogue #3 Analogue #4 Analogue #5 Analogue #6 Analogue #7 Analogue #8 Price per m2 3 3 0,5 1  5  5  5  1  Buyer Buyer Buyer Buyer Buyer Expenses of Sale Buyer No Expenses No Expenses Correction No No No 90% No No No 90% Corrected Price per m2 3 3 0,5 0,9 5 5 5 0,9 Location similar similar better better similar similar similar better Correction No No 1 1 No No No 1 Corrected Price per m2 3,0 3,0 0,6 1,1 5,0 5,0 5,0 1,1 Physical characteristics similar similar better better similar similar similar better Correction No No 2 2 No No No 2 Corrected Price per m2 3,0 3,0 0,9 1,6 5,0 5,0 5,0 1,6 Partial Purchase similar similar better better similar similar similar better Correction ara ara 2 2 ara ara ara 2 Corrected Price per m2 3,0 3,0 1,6 2,9 5,0 5,0 5,0 2,9 Correction could be explained as follows: - In all analogues the element of further expenses related to sale was amended by 10 %, because, as a rule, 10 % increase is included in the proposal price. The margin covers presumable deduction and broker interest. - The second correction was applied due to plot location (distance from automobile roads, etc.). - The third correction is due to physical characteristics (destination, use, parameters, structure, etc.). We have identified the correction amount based upon the demand-delivery conditions existing on the real estate market of Georgia and analysis of prices. RAP_Rev01 Annexes - Page 2 3 Calculation of the Market Prices Reconciliation of the adjusted prices of compared assets was carried out based on a calculation of the average weighted value. During the reconciliation of the adjusted prices more value was attached to those analogues that were the most comparable to the valuated asset so that the smallest adjustment was necessary. With the use of the average weighted value, the price of the valuated asset was calculates by means of the following formula: ⎛ ⎞ ⎜ ⎟ n ⎜ = ∑ Pi × n R i ⎟ V wa ⎜ ⎟ i =1 ⎜ � ∑ i =1 R⎟ ⎠ Where: Vwa- is the average weighted value; Pi - is the adjusted selling (offered) price of each comparable analogue; ∑ R – is the sum of the rating weight of the adjusted price of comparable analogue; Ri – is the rating weight of the adjusted price of each comparable analogue. Thus, calculation of the market prices of per m2 area of valuated property, carried out with the use of average weighted value is given shown in Table 3. Table 3 – Average Weighted Market Prices                           Name Pi Ri Vi   Price of corrected analogue #1 3,0 1,50 0,4   Price of corrected analogue #2 3,0 1,50 0,4   Price of corrected analogue #3 1,6 1,00 0,2   Price of corrected analogue #4 2,9 1,00 0,3   Price of corrected analogue #5 5,0 1,50 0,7   Price of corrected analogue #6 5,0 1,50 0,7   Price of corrected analogue #7 5,0 1,50 0,7   Price of corrected analogue #8 2,9 1,00 0,3   ∑R 10,50   Vwa 4 Market value of m2 of arable land plot   4 GEL                               RAP_Rev01 Annexes - Page 3 4 Calculation of land parcel compensation costs according to land use categpry. Basic cost for Compensation 1 sq.m of the Correction cost for 1 sq.m # Land Category land plot index of the land plot GEL GEL 1 Agricultural Land Plots 1,0 4 4 Non-agricultural (commercial) Land 2 1,3 5 Plots                        Notes: 1. Only land plots of those type and use are listed in the table, which are under the project impact. 2. The amounts fixed in the matrix will be further used for the calculation of the compensation value of the land plots. 2. Buildings Valuation. Buildings have been valued at replacement cost based on the direct and indirect costs at market value necessary for the construction of a comparable building i.e. what construction of a building of similar parameters would cost today. No deductions were made for amortization. The parameters for calculating the direct and indirect costs are the following as applicable to individual cases. a. Direct costs include: (i) Salaries of workers; (ii) Purchase of construction materials; (iii) Preparatory expenses; (iv) Rent or purchase of equipment; (v) Profit and overhead expenses of the constructor; (vi) Expenses incurred to ensure safety measures during the construction/repair; (vii) The cost of arranging temporary structures; (viii) Temporary communications (electricity, water, gas supply etc.); (ix) Warehouse costs; (x) Transportation costs; (xi) Other costs b Indirect costs include: (i) Cost of professional services: 1. Compensation of the architect/designer; 2. Compensation for engineering services; 3. Legal expenses; 4. Compensation for valuator’s services; 5. Other expenses (ii) Expenses incurred to receive permits; (iii) Insurance costs; (iv) Financing %; (v) Guarantee necessary to secure the contract implementation by the contractor building the new building; (vi) Other expenses RAP_Rev01 Annexes - Page 4 5 3. Compensations for Annual Crops. This item has been valued at market ha, area of affected crops and current gross market values of the crop. The details are given in a table 4. Table 4: Compensation for the Annual Crops Crop Crop Market price of Compensation Productivity Compensation Crops Unit unit of crops, Price (GEL) per per 1 ha Price (GEL) per GEL 1 sq.m 1 ha 0.72 Potato tone 24 300 7200 0.55 Cabbage tone 22 250 5500 0.4 Beans kg 800 5 4000 Garlic kg 1600 5 8000 0.8 0.6 Tomatoes tone 20 300 6000 Maize kg 5000 0,8 4000 0.4 Wheat kg 4000 1 4000 0.4 Strawberry kg 4000 1,2 4800 0.48 Hay Bunch 300 3,5 1050 0.105 Other vegetables - - - 5000 0.5 4. Compensations for Perennial Plants. These items have been valued differently for wood trees; productive trees in production age and productive trees not yet productive. B Wood Trees: Wood trees have been valued based on growth category and value of wood of the tree at the age the tree was cut. C Non Productive Fruit Trees. These items have been valued based on the value of the investment made to grow the tree to the age in which the tree was cut. A Fruit Trees in Productive Age: The value of these items has been defined according to the following parameters: 1) Product of the tree at the productive stage or age of the tree at the moment of cutting ( which is defined by tables prepared by the consultants based on figures from the Department of Statistics of Georgia and recognized academic publications which detail the average productivity of a tree within intervals of 5 years) of the tree at the moment of cutting; RAP_Rev01 Annexes - Page 5 6 2) Average value of future produce lost at farm gate market price (defined based on the numbers of productive years from the year a tree is cut to the year when a tree will stop production), and; 3) Number of years needed to re-grow the tree at the productive stage (age) in which it was cut. The valuation of the tree obtained will be discounted for: the value of yearly productive inputs (the future income to be compensated are virtual and therefore should not involve productive inputs costs). The formula to compensate one productive tree will thus be: C=(K*V*L) Where: C - is compensation value of tree. K – is average annual productivity of 1 tree according to age categories V – is market price at farm gate of 1 kg product L – is years to be compensated (years needed for growing up a tree of the same rate of productivity as the one cut. Calculated unit prices for each tree species are provided in a table 5: . RAP_Rev01 Annexes - Page 6 7 Table 5. Calculation of Compensation Costs for Productive Trees (Cost per 1 Tree) Type Cost for 1 Years of Years needed to Average wholesale Annual income, Compensation Cost for 1 tree, seedling becoming fully grow fully productivity of Market price 1 GEL for years of GEL productive productive tree fully productive kg., GEL growing fully tree in 1 year, productive tree (Years to be kg. compensated) Apple 3 6 5 80 0.9 72 360 363 Wallnut 5 11 10 40 1.4 56 560 565 Plum 3 5 4 80 0.6 48 192 195 Tkemali 3 5 4 50 0.9 45 180 183 Peach 4 4 3 40 1.4 56 168 172 Appricot 3 4 3 40 1.2 48 144 147 Black Cherry 3 4 3 16 1.5 24 72 75 Pear 3 7 6 70 0.9 63 378 381 Hazelnut 3 6 5 6 1.8 10.8 54 57 Quince 3 5 4 30 1.3 39 156 159 Mullberry 3 5 4 16 1.2 19.2 76.8 79.8 Sweet Cherry 3 4 3 16 1.5 24 72 75 Grape 2 3 2 9 0.7 6.3 12.6 14.6 RAP_Rev01 Annexes - Page 7 8 Annex 2 LEGALIZATION OF PRIVATE OWNERSHIP OF LAND IN GEORGIA A. Introduction 1. Correct and accurate initial registration of ownership rights is the necessary condition for undertaking voluntary acquisition or mandatory expropriation of real property. Pursuant to article 312 of the Civil Code of Georgia the records at the Public Registry are considered accurate until their inaccuracy is not proved. Therefore, throughout the presumption of the article 312 of the Civil Code of Georgia the inaccurate data available at the Public Registry shall be corrected with precise data. Therefore, landowners shall carry out precise demarcation and legalization of his/her land parcel(s) through proper procedure. The land owners have to apply to the Public Registry with necessary documents as proof of the ownership and description of land, Cadastral Map with precise survey data and documents verifying ownership right (Receive-Delivery Act, or Registration Certificate, or the extract from the land distribution list issued by the local self-government body, or the statement on the landowner’s registration as a tax payer in 1992-2001 years). 2. After the disintegration of the Soviet Union, all land in Georgia came under the state ownership. The Government of Georgia (GOG) started privatization of land in 2004 as an essential part of the economic reform in the country. The GOG applies various methods to privatize state-owned property including competitive bidding, auctions, lease, redemption and direct sale. However, lands under private occupation with traditional rights are being legalized through registration with National Agency for Public Registry (NAPR) of the Ministry of Justice. The pattern of privately owned lands in Georgia is determined by allocation of land plots after the independence from Soviet system. In the Soviet times the agricultural lands were used by collective farms financed by the State. During the privatization process the lands of collective farms were divided into small parcels and distributed among households who no longer receive agricultural subsidy from the State. B. Status on Registration on Pure Land and Reality in Present Situation 3. The registration for pure land (land parcel without having structure) has not been - stopped. However, in practice, most of the owners are not initiating any new land registration for the pure land because; there is no requirement for them for new registration as buying and selling of pure land is not so prevalent in present situation. Also, these owners are using their respective plots based on the mutual understanding among the neighbours. 4. In reality, some of these land parcels and owners can still be converted into legal owners provided the initiation for land registration for pure land is taken by the owners. These cases under the current situation are considered as Legalizable Owners. Currently, there is no problem associated with urban and residential plots. Also, there is some cases pending in the court related to land registration, which needs to be addressed. The current ownership of land can be broadly categorized as follows: (i) Legal Owner/ Title Holder: Owners and users of land having their title registered in the Public Registry. (ii) Legalizable Owner: a. Rightful Owners – the owners with old document proof although not having registration in the Public Registry under the Laws of Georgia on Privatization of State-owned Agricultural Land, (July 8, 2005) and The Law of Georgia on Public Register (No820 –Iis; December 19 of 2008); (the current legislation). RAP_Rev01 9 b. Non-rightful owners - unauthorised land users having right to legalize landownership rights provided by the current legislation. The legalization of landownership rights, under the current legislation is allowed for following cases: - The state owned agricultural or non-agricultural land plot with residential house or supporting structures on it - occupied by the physical or legal person without permission before the current law came in force in 2007. - Land plot occupied by person without permission is adjacent to the land parcel rightfully owned or used by this person, taking into account that the illegally occupied land parcel should be of less area than the legally owned adjacent land parcel. However, there are certain restrictions on privatization of land11 (attachment-2). (iii) Non-Legalizable Landowners: Illegal/Squatters having no right to legalize landownership rights under the current legislation. Persons having no document of possessing the land in concern before the enactment of the current law in 2007 are not legalizable. 5. Legalisation of Rightful Landownership rights is executed directly by Rayon Registration Offices of NAPR. The applicants should submit old documents profing the ownership rights and precise cadastral maps of the land plot and structures on it. 6. Legalisation of Non-rightful Landownership rights is authorized by Property Recognition Commission (in each Rayon) through reviewing the application documents, evaluating eligibility against the restriction lists given in the law and local landuse development plans. In case of positive decision and upon payment by the applicant of relevant amount of money to a special account, if applicable,12 the Commission issues certificate on ownership right. Based on that certificate the Rayon Registration Office of NAPR will register the ownership rights on land plot and structures. C. National Survey 7. In 2003-2004, USAID, along with some International Donors carried out a national level survey of land all over Georgia. These donors started the mapping of land for whole of Georgia. The mapping was done through an independent survey by physical verification of the land parcels and consultation with the owners. The positive aspect of the USAID survey was that it recognized the plots. However, the ownership details and the parcel boundary were not demarcated on the ground by the survey. Also, the details of ownership were not updated because most of the people do not initiate any registration 11 According to the Law of Georgia On Privatization of Agricultural Land Existing in State Ownership (Article 2, Clause 3), the following categories of State-owned lands are not subject to privatization: (a) Pasturelands other than those leased out before the enactment of this law which under the act issued by the competent state or local government (self-government authority) are duly allotted to the buildings and premises located thereon which are the private property of individuals or legal entities or the property of the state; (b) Cattle transfer routes; (c) The first zone (zone of strict regime) in sanitary protection area around water supply units; (d) Lands of forest funds, which are used for agricultural purposes; (e) Recreational lands; (f) Lands occupied with historical, cultural, natural and cult-religious monuments; (g) Lands of protected territories; (h) Agricultural lands that are used by the Budget-funded institutions and legal persons of public law in form of usufruct. The lands indicated in b, c, d and e may be privatized only if significant projects are implemented, on which government of Georgia, based on the suggestion of the Ministry of Economic Development of Georgia, shall take special decision. At the same time the land indicated in c may be privatized if the conditions of sanitary protection are met. (26.10.2007). 12 In Adjara AR (1) Payment for allocation of land less than 3000 sqm in village settlement for residential use is exempted for all. (2) For agricultural land of area more than 3000 sqm, the payment is 440 GEL per HA. (3) For non-agricultural land in the first zone, the payment is 6 GEL per sqm, which is 3.4 GEL per sqm in second zone and 2.2 GEL per sqm in rest of the areas. Kobuleti Municipality Sakrebulo has approved by its decree of 26.02.2010 zoning of Kobuleti rayon lands in accordance with the legislation. RAP_Rev01 10 for pure land. Therefore, there is a difference between the USAID survey and the map exiting during the privatization process (Rayon Map/Archives) regarding the issues related to the exact ownership, boundary of each plot and its due recognition. D. Land Acquisition and Resettlement Surveys and Documentation for the Project 8. As the land acquisition and resettlement (LAR) activities at the feasibility study (FS) level were based on tentative alignments and existing imprecise cadastral maps, and since there was no detail estimate of losses and ownership at FS, fresh land acquisition and resettlement surveys have been being carried out through detail measurement survey, valuation survey, census survey and socioeconomic survey. The road alignment as per final engineering design is being superimposed on the updated cadastral map of Registered land plots obtained from Rayon NAPR and aerial photo (orthophoto) of concerned area. Each of the affected Registered land plots in the project right of way are being identified along with its dimensions on the orthophoto. The affected plots are being listed up and cadastral details collected from Rayon NAPR, and local government offices as applicable. 9. Based on this, the survey team proceeded to the sites for field survey which included identification of each plot and verification of the details shown in the National Survey Map (National Cadastre Map) and the reality on the ground. The verification survey process includes title searching through review of available documents and discussions with the owners about land parcel boundary and further discussion with the local government, the representative of the NAPR (local archives are currently transferred to NAPR rayon offices) for its cross verification. Based on these methods final details of each parcel and ownership will be confirmed. This will help to identify the legal owners, the legalizable owners (rightful and non-rightful) and the illegal occupants of state owned land. The list of various categories of ownership will be recorded with the help of local government. 10. The FS noted that the some of the owners of affected land parcels have the land documents (old documents) as proof of ownership obtained during the post soviet period. These land owners did not Register their land parcels in the rayon level registration office as it was not mandatory for them. As general estimation registered land owners in Georgia constitute 10-15% of all the legalizable pool of land owners/users. E. Process for Registration of Legalizable Owners 11. An initial level of discussions were initiated during the Census Survey by the FS consultant with the stakeholders, including the affected people, Property Recognition Commission of Kareli Rayon and the rayon level Registration Offices of NAPR. The detail design consultant (the Consultant) has checked with relevant agencies and local experts for the land registration process in Georgia, particularly in Kareli Rayon. This also includes the methods on how to conduct registration of un-registered land prior to disbursement of compensation to the affected people. The affected people will be made aware about the situation, the process and the tasks to be done by them for registration of land parcels. It is noted that coordination and combined efforts are required by the APs, the consultant and all the relevant government agencies. H.1 Registration of Rightful Owners 12. Recognition of ownership rights in relation with the rightfully owned/used land plot is executed through registration of ownership right directly in the Public Registry. For that purpose, the applicant has to submit: RAP_Rev01 11 (i) Documents confirming rightful ownership of the land plot (annex 3). (ii) Precise cadastral maps of the land plot. (iii) Document confirming payment of the fee for the property recognition (51 Gel). (iv) Identification documents of the applicant. 13. The process and procedure for registration of Rightful Owners needs complete the steps described as follows: (i) Step 1: Preparation of fresh and precise cadastral map by the owners through private agencies. The map will include all the dimensions of plots and geometrical details. The cost of preparation of map ranges from 0.06 GEL to 0.10 GEL per sqm of land to be recognized. The duration for preparation of map will be approximately a week time. However, within the project frame, the consultant will prepare precise cadastral maps for the affected land plots and these maps along with required land descriptions will be given to the legalizable and other land owners free of charge. (ii) Step 2: In case if the owner does not have available ownership proving documentation (annex-3) or in case there is any doubt regarding the plot, the owner has to apply to the local community level self-government (Sakrebulo and Gamgeoba) and local Rayoon NAPR Office (where Archives are kept) for the proof and cross verification of the land details. (iii) Step 3: after the verification from NAPR rayon Office, the owners will take the endorsement from the community municipal office (Gamgeoba).. (iv) Step 4: Following the authorization from Gamgebeli the owners will approach to the Rayon level Registration Office of the NAPR. The owners will provide all the above proof to the registration office. The registration office will verify the completeness of all required application documents. The owners have to submit both the soft copy and hard copy of the plot maps along with its coordinates for record in the Public Registry office. The registration process will take 4 working days in normal situation and the property recognition fee will be 51 GEL per registration. In case of urgency, the owners have to pay 150 GEL to get the registration done in one working day and 200 GEL, if the registration needs to be done immediately. However, the registration office for affected legalizable owners will not charge the urgency cost and will be able to complete each case in maximum 6 days. after the finalization of registration, the Public Registry office will compile the land records and will update the cadastral details. The updated details will be sent to the central Public Registry for centralized record. (v) In case, there remains further dispute related to ownership, the case may be referred to the court. The project authority may estimate the price of that particular land and may deposit the amount in the State Budget allocated for the Project.. The payment to the real owner will be executed from the State Budget according to the court decision upon confirmation by the Roads Department as RAP implementing agency. The case will be resolved in the Rayon Court. H.2 Registration of Non-Rightful Owners 14. For recognition of the ownership rights on non-rightfully owned land plot the owner/user should submit to Property Recognition Commission application letter through the Office of Sakrebulo with the following supplementary documentation: (i) Document confirming the fact of non-rightful ownership/use of the land plot (see annex 3) or attestation of witness (neighbours etc.). RAP_Rev01 12 (ii) Precise cadastral maps of the land plot (iii) Information needed for determination of the fee for property recognition (iv) Copies of the identification documents of the applicant 15. The process and procedure for registration of Non-Rightful Owners needs the following steps as described below: (i) Step1: Preparation of fresh and precise cadastral map by the owners through private agencies. The map will include all the dimensions of plots and geometrical details. The cost of preparation of map ranges from 0.06 GEL to 0.10 GEL per sqm of land to be recognized. The duration for preparation of map will be approximately a week time. However, within the project frame, the consultant will prepare precise cadastral maps for the affected land plots and these maps along with required land descriptions will be given to the legalizable and other land owners free of charge. (ii) Step 2: The map and its details will be authorized and the land usage pattern will be verified by the neigbours. The community local administration (Gamgeoba) may also certify the authorization. (iii) Step 3: Following the authorization from the neighbours, the same has to be notarized. Cost of notarian confirmation of neighbours witness will be 15 GEL for each case. (iv) Step 4: The land owner/user will approach to the Property Recognition Commission through Office of Sakrebulo with a package of documents confirming eligibility for legalization of the land plot according to the current legislation. This includes ownership documents (see annex-3) related to the adjacent land plots owned by the applicant rightfully. (v) Step 5: In case if, the owner does not have available documentation proving ownership rights on the adjacent land plot or in case there is any doubt regarding the plot, the owner will apply to the local NAPR Archives for the proof and cross verification of the land details. (vi) Step 6: after the verification, the Office of Sakrebulo will endorse the application and authorize the case for recognition. (vii) Step 7: Following the authorization from Sakrebulo, the owners will approach to the Property Recognition Commission. The owners will provide all the above proof to the Commission. The Commission will verify the documents, make physical verification and organize an open disclosure meeting on site with prior notice to the concerned community peoples. If the documents are clear and the land is free from any dispute from anybody, then the Commission will notify the applicant to deposite payment for the land (if applicable). after payment, or if the payment is not applicable, the commission will issue certificate on ownership right to the owners. (viii) Step 8: Based on the above steps, the owners will go to the Public Registry at their respective rayon for registration. The owners have to submit both the soft copy and hard copy of the plot maps along with its coordinates. The registration process will take 4 working days in normal situation and the property recognition fee will be 51 GEL per registration. In case of urgency, the owners have to pay 150 GEL to get the registration done in one working day and 200 GEL, if the registration needs to be done immediately. However, the registration office for affected legalizable owners will not charge the urgency cost and will be able to complete each case in maximum 6 days. after the finalization of registration, the Public Registry office will compile the land records and will update the cadastral details. The updated details will be sent to the central Public Registry for centralized record. RAP_Rev01 13 (ix) In case, there remains further dispute related to ownership, the case may be referred to the court. The project authority may estimate the price of that particular land and may deposit the amount in the State Budget allocated for the Project.. The payment to the real owner will be executed from the State Budget according to the court decision upon confirmation by the Road Department as RAP implementing agency. F. Actions at Detail Design 16. The most important issue for timely acquisition of land is the coordination between the Roads Department and the respective rayon and municipality level administration (, Rayon and municipal Gamgeoba and PRC). These issues have been identified and brought to the notice of concerned stakeholders by the feasibility study consultant, as well as DD Consultant, through consultation and review of existing process of privatization. The Consultant is in the process of seeking cooperation from the concerned registration services and local government offices. Services of an experienced survey and audit agency have been being utilized to identify the current owners (users) of affected land parcels as per final engineering design of the road. 17. All the legalizable owners (rightful and non-rightful) are being identified through extensive title search. Fresh and precise maps of land parcels (with standard coordinates) and geometric details will be provided to the legalizable owners in CD-ROM and printed copies. A generic instruction leaflet has been distributed to the affected persons on the process of legalization of legalizable land parcels. The survey agency is also counselling the AP persons on the process and its urgency for timely receipt of compensation for their acquired land. All legalizable owners will be provided with the detailed cadastral maps and case-specific instructions on further steps for legalisation. 18. The registration wil be completed for the legalizable owners during the implementation of RAP and prior to the disbursement of compensation. The cost involved in the registration process will be reimbursed from the Project during RAP preparation and implementation. The affected legalizable owners have to initiate the land registration at their own cost in the beginning with such assurance from the Roads Department. The above activities are part of Pre- Disbursement of Compensation. 19. Once the payment of compensation is complete for the affected land/assets, the acquired land will be transferred (Registered) in the name of Roads Department and the remaining portion will belong to the affected owners. This registration is basically the change of ownership after the acquisition. However, if the road alignment divides the plot into many parts then each of the remaining part need to be remapped and needs to be re- Registered. This will clearly demarcate the acquired land as the property of RD and the remaining belongs to the affected owners. RAP_Rev01 14 Annex 3 INFORMATION LEAFLET LAND ACQUISITION AND RESETTLEMENT POLICY PROJECT: RUISI - RIKOTI SECTION OF E-60 HIGHWAY Information for APs A. Introduction 1. Due to its geographical position Georgia has gained the status of an important transport corridor connecting Europe and Asia and the development of the transport infrastructure has become a national priority.The Government of Georgia requested the World Bank to support modernization of the East-West Transport Corridor. Two projects for the improvement of the E-60 East-West Highway have already been completed with the assistance from the World Bank and the Third East-West Highway Improvement project is under implementation Future investments will complete improvement of the Highway from Ruisi to the already rehabilitated Rikoti tunnel. For this purpose the Government of Georgia asked the World Bank assistance for the preparation and implementation of the Fourth East-West Highway Improvement Project (EWHIP) which covers the section of the highway between Agara Bypass and Gomi bypass (Zemo Osiauri) km 114 - 126. A Resettlement Policy Framework (RPF) was developed for the Third East – West Highway Improvement project (las update in 2012), which covers entire section of highway from Ruisi till Rikoti tunne. Accordinly, the provisions of this RPF, as well as safeguard regulations of WB and in particular, the OP 4.12 (Involuntary Resettlement Policy) should be regarded. This Leaflet is an instrument to disclose to the APs the compensation policy/procedures developed in the Land Acquisition and resettlement Plan (RAP for the project. 45. 3. Present Draft RAP covers 12 km length section of Agara Bypass - Gomi Bypass (Zemo Osiauri) correspondinh to km 114 – km 126 of the E-60 Highway, which is located within the Khashuri Rayon. Impacts along these road sections will entail acquisition of 933,906 sq.m of land from 445 plots divided in terms of tenure type as follows: RAP_Rev01 15 • Category 1. 56 titled private land plots with full registration 113,021 sq.m; • Category 2. 199 titled private land plots 259,341 sq.m rightfully owned and requiring legalization through 1 stage process of registration in NAPR (legalizable land plots). These land plots have been transferred to the owners during the land reform but the formal procedures needed for registration in NAPR have not been completed. • Category 3. 190 State owned land plots of 561,544 sqm not used by private users. Most of these land plots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone. Category 3 land parcels are not subject for compensation. There are no public land plots in the affected area used by leaseholders or illegally ocupied by squatters. B. Planning/Implementing the Compensation Rehabilitation Program for the Project 4. To plan/implement the compensation and rehabilitation program for this project in a way fitting WB policy, the Road Department has prepared a RAP. The RAP in Georgian has been deposited for public consultation at the road department offices and at your Sacrebulo office. The Document details the impacts, the compensation eligibility and entitlements, the compensation rates for different affected items and the procedures for the land acquisition and resettlement implementation as summarized in the following sections. . C. Resettlement Policy and Principles 5. Land for construction of the new road will be acquired under the laws of Georgia. and the WB OP 4.12. All AP will be compensated at the replacement rates and receive adequate allowances according to severity of impacts and vulnerability status. The detail design consultant has investigated all alternatives to avoid built-up areas and environmentally protected areas in order to minimize impacts. Land acquisition for the project is based on the following principles: - Construct the road to avoid residential areas wherever possible to minimize physical relocation of people, and select alignments that minimise acquisition of privately or publicly held productive land; - Adopt design standards that minimise the need to impose land use restrictions on adjoining areas; - Develop fair and transparent procedures, as defined in the Entitlement Matrix in this RPF, RAP_Rev01 16 to determine compensation for (i) temporary loss of land/ assets during construction; (ii) permanent acquisition of land and assets; and (iii) restrictions on use of land that may be applied to areas adjoining the corridor; - Acquire land (or right to use land) through negotiated agreements and with the use of the power of eminent domain only as a last resort. - Upon completion of construction, restore land as best as possible to its original condition in the event of temporary disruption so as to enable landowners/users/lessees to resume their pre-project activities; - Keep affected people and communities fully informed about the project, the process that will be followed to acquire and compensate for land, and their related rights and avenues for redress. - Ensure that grievances PAPs may have will be redressed adequately, and that solutions in line with principles laid out in this RPF be employed; - All Project Affected People (PAP), without regard to legal status of property, will receive support of various kinds, as per the principles set out in the Entitlement Matrix, to assist them in their efforts to maintain their livelihoods and standards of living prevailing prior to the Project. Those who illegally own land will not be compensated for loss of land, but will receive compensation for loss of other assets which had been established on their own finance, and for loss of income such that they are also assisted in their efforts to maintain their livelihoods. . Detailed measures to be implemented will be determined based on the census and socio-economic survey to be carried out when Resettlement Action Plan is developed. - PAP will be notified of the project implementation schedule and consulted regarding the principles of land acquisition and loss of or damage to assets. - Damages to assets, such as standing crops, trees, fences and kiosks, and loss of income, including loss of harvest, will be minimized, and where inevitable, will be compensated without regard to legal status of ownership according to the Entitlement Matrix provided in this RPF. Resettlement Action Plan (RAP) will be developed as per Bank OP 4.12 and RPF developed for East – West Highway Improvement project (las update in 2012),as well as Georgian legislation for each section of the Project itinerary that defines detailed compensation packages and implementation schedule. Since, as discussed above, there are gaps between OP 4.12 and Georgian legislation and practice on expropriation, any land acquisition required for the Project will be carried out as per the principles and procedures laid out in this RPF. A market survey will be conducted to assess the prevailing market prices of land, construction materials for affected structures, crops and other relevant items, which will be used as the unit prices to determine compensation. This will additionally ensure that the market prices will allow PAPs to purchase replacement land. Loss of income and assets will be compensated on a net basis without tax, depreciation or any other deduction. The final RAP should be submitted to and cleared by the Bank prior to the execution of civil works for relevant sections. The details of land acquisition procedure will be spelled out in RAP(s), but they will include: - Initial consultation with PAP to notify the project and board impact - Census, geographic survey and socioeconomic survey of PAP - Determination of PAP and types/ scale of impact - Development of compensation package and drafting of RAP - Consultation with PAP - Negotiation with PAP and payment of compensation - Expropriation process where negotiation fails - Compensation/rehabilitation measures will be implemented as the civil works progress but prior to the start of the construction on a particular section. D. Compensation Eligibility and Entitlements 7. Eligibility. APs entitled to compensation or at least rehabilitation provisions under the Project are: RAP_Rev01 17 (i) All APs losing land either with legal title or traditional land rights, Legalizable, or without legal status; (ii) Tenants and sharecroppers whether registered or not; (iii) Owners of buildings, crops, plants, or other objects attached to the land; and (iv) APs losing business, income, and salaries. 8. In particular the eligibility to land compensation for this project has been elaborated as follows: • Titled APs will be fully compensated • Untitled APs who were legitimate leasers under the old Soviet system and have either plots with a house or adjacent to a plot with a house will be legalized and then compensated. • Untitled APs who were legitimate leasers under the old Soviet system and have regularly cultivated/used their land but do not have plots with a house or adjacent to a plot with a house will not be legalized but will be compensated. • Untitled APs who were not legitimate leasers under the old Soviet system and who use or cultivate the land they occupy only extemporaneously will not be legalized nor compensated. They however, are still eligible for crop or income compensation. 9. Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day of the beginning of the AP Census and DMS. APs who settle in the affected areas after the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice, requested to vacate premises and dismantle affected structures prior to project implementation. Their dismantled structures materials will not be confiscated and they will not pay any fine or suffer any sanction. 10. Entitlements. The provisions for APs losing land, houses, income and rehabilitation subsidies are defined below in table 1. Table 1: Compensation Entitlement Matrix Type of Loss Application Definition of APs Compensation Entitlements Land Permanent loss of AF losing agricultural land Owner with full registration Cash compensation in cash at full replacement agricultural land regardless of impact severity cost or replacement land of same value of land lost and at location acceptable to APs where feasible. The option selected for the Program is cash compensation. If residual plots becomes unusable the project will acquire it in full if so the AP desires. Legalizable Owner These AP will be legalized and provided with cash compensation at full replacement cost. Non-Agricultural Land AF losing their commercial/ Owner with full registration Cash compensation at full replacement cost or residential land replacement land of same value of land lost and at location acceptable to APs where feasible. Legalizable Owner APs will be legalized and provided with cash compensation at full replacement cost.. Renter/Leaseholder Rental allowances in cash for 3 months Informal Settlers/ APs with no One time self-relocation allowance in cash registration/valid documentation equal to 1 year at minimum subsistence income 297GEL per 1 month x 12 months=3564 GEL x AH. Buildings and Structures Residential and non All AFs regardless of legal All impacts will be considered as full impacts residential ownership/ registration status disregarding the actual impact percentage. structures/assets (including legalizable and Impacts will be compensated in cash at full Informal Settlers) replacement costs free of depreciation and transaction costs. Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Public Assets Community/Government Reconstruction of the lost structure in consultation property resources with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops affected or All AFs regardless of legal Crop compensation in cash at gross market loss of planned crop status (including legalizable and value of actual or expected harvest. incomes** Informal Settlers) Compensation for this item will be provided RAP_Rev01 18 even in case if the crops were harvested Trees Trees affected All AFs regardless of legal Cash compensation at market rate on the status (including legalizable and basis of type, age and productive value of the Informal Settlers) trees. Business/Employment Business/employment loss All AFs regardless of legal Owner: (i). (permanent impact) cash indemnity status (including legalizable and of 1 year net income; (ii) (temporary impact) Informal Settlers) cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum subsistence income. Permanent worker/employees: indemnity for lost wages equal to 3 months of minimum subsistence income and trainings on computer literacy... Allowances Severe Impacts >10% income loss Agricultural income: two-year yield from affected All severely affected AFs losing more than 10% of affected land. Other income: 1 additional compensation for 3 agricultural land plot (including informal settlers) months of minimum subsistence income. 297 GEL per month x 3 months=891 GEL per AH) Relocation/Shifting Transport/transition costs All AFs to be relocated Provision of allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income. 200 GEL as vehicle hire charge + 297GEL as minimum subsistence income x 3 months = 1,091 GEL per AH Vulnerable People AFs below poverty line, Allowance equivalent to 3 months of minimum Allowances headed by Women, disabled or subsistence income* and employment priority in elderly project-related jobs 297 GEL as minimum subsistence income per month for 3months= 891 GEL per AH) Temporary Loss Temporary impact All AFs Due compensation will be assessed and paid during construction based on the approved RPF during construction. All land required for temporary use is to be obtained by the civil works Contractor through voluntary negotiations (e.g., willing buyer- willing seller basis). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored following use Unforeseen resettlement All impacts related to temporary Road Department and the construction contractor impacts, if any or permanent land take, the will address and mitigate/compensate unforeseen need for which is not envisaged resettlement impact during project within DD and RAP and is related to activities of Contractor. * Minimum subsistence income to be calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval ** Income expected from crops on affected agricultural land permanently used for crop cultivation during the recent years. In case if the land was permanently used for crop cultivation, but for the year, when the inventory of losses was conducted, no crops have been planted (due to need of rest to this land or illness of the farmer or any justifiable reason), the land parcel still will be considered as designed for crop cultivation and relevant compensations will be paid E. Complaints and Grievance Redress Mechanism 9. A grievance mechanism will be available to allow an AP to appeal any disagreeable decision, practice or activity arising from land or other assets compensation. A Grievance Redress Committee (GRC) will be established community level in each local Gamgeoba to solve grievances informally through community participation. The GRCs will include representatives from RDMRDI, local Gamgeoba, APs, women APs (if any), and local NGOs. The grievance resolution process is detailed below. RAP_Rev01 19 Table 2: Grievance Resolution Process Steps Action Process level Step 1 Contract At the negotiation level, if any grievances arise, solutions acceptable to both Rayon’s LAR agreement Team and the APs will be sought. If any aggrieved AP is not satisfied with the solutions, the next option will be to lodge grievances to the GRC. Step 2 GRC If the grievance is not solved at during the contract agreement negotiation level, then the LAR Resolution Team will assist the aggrieved APs to formally lodge the grievances with the respective GRC.. Member secretary of the GRC will scrutinize the complaints and prepare Case File for the GRC hearing and resolution. A formal hearing will be held before the GRC at a date fixed by the member secretary of GRC in consultation with the Convenor and the aggrieved APs.On the date of hearing, the aggrieved AP will appear before the GRC at the Gamgeoba office for consideration of his/her claim. The member secretary will note down the statements of the complainant and document all details of the claim. The decisions from majority of the members will be considered final from the GRC and will be issued by the Convenor and signed by other members of the GRC. The case record will be updated and the decision will be communicated to the complainant AP by the LAR Team at the village level. Step 3 Decision from If any aggrieved AP is not satisfied with the GRC decision, the next option will be to lodge central grievances to the Working Group of RU at RDMRDI at the national level. The AP, in the RDMRDI complaint, must produce documents supporting his/her claim.. The Working Group will review the proceedings of the GRC hearing and convey it’s decisions to the aggrieved APs within 2 weeks after receiving the complaint. Step 4 Decision from If a grievance redress system fail to satisfy the aggrieved APs, they can pursue further action by court submitting their case to the appropriate court of law (Rayon Court).In case, if the ruling by the court is below the market price assessed through the open market survey earlier, RDMRDI will provide additional funds to ensure that compensation provided reflects full replacement cost. F. Special Recommendations to APs for Legalization of legalizable plots 10. It is likely that many land parcels to be acquired are not registered or not properly registered. AP who occupies plots that are not owned by others or the state and that are legitimately used by them but have not been registered under the privatization process may be legalized. The legalization process is in progress and will be completed soon. Only after legalization these AP can be compensated. 11. The Roads Dept. and local governments of project areas are already assisting the APs by preparing accurate land parcel maps with geometric descriptions which will be provided to them. However in order to do so in the best possible way the Project authorities need the APs collaboration for the following:. As soon as the documentation is available register your land parcels to avoid complexity and delays in land acquisition and receipt of compensation. To facilitate, the cost of registration of land parcels has been included the replacement cost of land. G. Contact Information 12. For any information and advice, please feel free to approach the following contacts: (i) Road Department of RDMRDI: 12 Kazbegi str., Tbilisi, Georgia (ii) Zaur Apshinashvili--Mobile Phone 8.99.308812 e-mail: apshinashvilizauri@yahoo.com RAP_Rev01 20 Complaints and Grievance Submission Form Achara # Name, Last name Contact Information Mail: Please indicate the postal address: ___________________________________________________ Please indicate the ___________________________________________________ preferable means of ___________________________________________________ communication (Mail, __________________ Telephone, E-mail) Telephone: _______________________________________________ E-mail:____________________________________________ The language Georgian desirable for the English communication Russian Describe the grievance/claim: What is the complaint about? What is the claim? Date of Negotiation: Resolution of Negotiation: What is the basis of your claim? Signature: _____________________________ Date: _______________________________ ANNEX 4 PUBLIC CONSULTATIONS RAP_Rev01 21 February 6 – March 4, 2013 E-60 HIGHWAY UPGRADING PROJECT AGARA -ZEMO OSIAURI (KM114 to KM126) SECTION RAP_Rev01 22 4.1 Minutes of public consultation on the Environmental Impact Assessment Report and the Resettlement Issues (February 6, 2013) Public meeting related to the review of Environmental Impact Assessment Report and Resettlement Action Plan for the upgrading of E-60 highway section between Agara and Zemo Osiauri (km114-km126) was held on February 6, 2013 in the House of Justice of village Gomi. Objective of the public review was to familiarize the population with assessment of the project impact on biophysical and social environment. Information about the works carried out by COWE/GAMMA on site and the assessment results of the impact on biophysical and social environment during the construction and operational phase was presented at the meeting. Relevant mitigation measures were introduced. Attendees of the meeting had an opportunity to raise the questions and express their critical opinion during the review of plans. Public review meeting was attended by authorized person (Rtsmunebuli) of territorial unit, as well as representatives of local community and business sphere. Ms. Maia Stamateli, an environmental specialist from scientific-research company GAMMA introduced the project stakeholders and presented brief information about the project and activities implemented so far. Presentation was focused on main components of the project and their possible impact on natural and social environment, environmental assessment process, executed field works and outcomes of analysis and modeling. Main types of potential impact were discussed. Attention was paid to impact on vegetation cover (cutting of trees) and its compensation, results of noise and emissions on local population during road construction and operational phases. Overview of the possible impact on social environment (land acquisition and resettlement issues) was made by Mr. Zaur Apshinashvili of the Road Department. It was noted that some type of land take and/or resettlement usually imminent for road construction and reconstruction projects. This is the case with the Fourth East West Highway Improvement project too. Therefore, a Resettlement Action Plan is developed to undertake mitigation measures and provide adequate compensation to all afe\fected people. Attendees were handed the informative leaflets including contact details of the group involved in the project in case additional questions arise and information is needed. Floor was given to representatives of the community. Questions and answers are presented below in a table format. First Deputy Chairman Nugzar Gasviani (signed and sealed) Representatives of Roads Department: Zaur Apshinashvili (singed) Luiza Bubashvili (signed) RAP_Rev01 23 Qusestin/Author of the Question/Comment Comments Comment Besik Gagishvili What will be the road alignment Construction of the road section and what is its impact on which will be located in parallel to agriculture lands? the existing highway will lead land take from some plots along the road. The Resettlement Team will study all cases and define the relevant compensation. Malkaz Chkoidze What will happen to the section The project will cover replacement of water supply network located of the subject section of water behind Gomi factory? Could the supply network with a new once, project implementation lead to which will supply water to the Gomi the termination of the functioning factory. Therefore, no interference of the factory? to the factory operation will result from the project implementation. Nunu Mikeladze Concern was expressed that in The opinion of the population will case the arrangement and be taken into consideration, the location of the conjunctions is location of the conjunctions will be not agreed with the population agreed with the local self- the highway will complicate governance. getting to the populated areas as the passengers will have to pass considerable distance while travelling from West Georgia or Tbilisi. Giorgi Margvelashvili How will the population benefit The local population will have in term of employment? preference in terms of employment oppurtunities. Also, the population will recieve income as a result of the service provision: workers’ lodging in villages, their nutrition etc. RAP_Rev01 24 RAP_Rev01 25 RAP_Rev01 26 4.2 RAP Consultation Meetings in v. Akhalsopeli (Kareli Rayon) and v. Zemo- Osiauri/Akhalsopeli and Gomi (Khashuri Rayon) February 24 – 28, 2013 4.2.1 Common Scheme of Consultation Process Background Information The Government of Georgia asked the World Bank assistance for the preparation and implementation of the Fourth East-West Highway Improvement Project (EWHIP) which covers the section of the highway between Agara Bypass and Gomi bypass (Zemo Osiauri) km 114 - 126. A Resettlement Policy Framework (RPF) was developed for the Third East – West Highway Improvement project (las update in 2012), which covers entire section of highway from Ruisi till Rikoti tunnel. Accordinly, the provisions of this RPF, as well as safeguard regulations of WB and in particular, the OP 4.12 (Involuntary Resettlement Policy) should be complied with. In compliance with the OP 4.12 and approved RPF, RAP is being prepared for the project “E-60 HIGHWAY UPGRADING PROJECT AGARA-ZEMO OSIAURI (KM114 to KM126) SECTION. Preparation of LARP should include the following: (I) detailed measurement survey (DMS), (II) evaluation of assets/evaluation of affected land plots, (III) consultations with affected rayons and people, (IV) AP census survey – by 100%, (V) AH socio-economic research. LARP preparation process has covered intensive consultations with interested stakeholders including project affected people. During the preparation of RAP, the detail design consultant (CONSULTANT) hired by the RDMRDI has conducted public hearing meetings related to the Land Acquisition and Resettlement issues in the affected villages. On 24.02.2013 Public consultation meetings were conducted in villages of Khashuri Rayon –v. Gomi (11:00 AM) and v. Zemo- Osiauri/Akhalsopeli (15:00 PM). 28.02.2013 Public consultation meeting has been conducted in v. Akhalsopeli of the Kareli Rayon. The aim of the public hearings was to deliver to interested stakeholders and project affected persons information about the resettlement policy and principles, compensation eligibility and entitlements, methodology of valuation, complaints and grievance redress mechanism, claims and comments submission form. Information has been provided both verbally and by brief information leaflets. The attendees confirmed by their signature receipt of the leaflet and their engagement in public consultation meeting. Participants Following consultants and RDMRDI staff members participated in meetings: Representatives of Road Department: Mariam Begiashvili (Social Safeguards Consultant); Giorgi Ninidze (Senior Resettlement Specialist); Natalia Bekauri (Resettlement Specialist); Representatives of DD Consultant: Medgar Tchelidze – Consultant’s Key Expert on environmental and social issues, Keti Dgebuadze – Consultant’s Expert of PR and communication issues, Giorgi Ezugbaia – Representative of Audit Company “Kirkitadze and Company�. Local Government representatives: superiors (gamgebeli) of the villages and population of local villages (see attached lists). Affected Communities: Affected communities were represented mostly by the members of households directly affected by the project. The list of participants of each meeting and raised questions and comments are presented further in annexes: PC Meeting Summary Protocols. Presentation RAP_Rev01 27 The first part of the presentation was made by Keti Dgebuadze, PR and communications Consultant, and Mariam Begiashvili (Social Safeguards Specialist), who informed the public about the institutions implementing and financing the project, as well as about the WB policy of social and environmental safeguards and procedures and Georgian legislation in connection to the public awareness and consultations of the parties concerned. The second part of the presentation was hosted by Consultant’s key expert on resettlement issues - Medgar Tchelidze and representative of Audit Company “Kirkitadze and Company�- Giorgi Ezugbaia. Mr. Tchelidze presented the WB’s Land Acquisition and Resettlement Policy and principles, in particular: Land for construction of the new road will be acquired under the active laws in Georgia. However, additional requirements of the WB will be met to ensure that all affected persons are compensated at the replacement costs and/or receive adequate allowances according to severity of impacts and vulnerability status. Experts also talked about compensation entitlements and documents for ownership rights, in particular: Land acquisition and resettlement tasks under the project will be implemented according to a compensation and entitlement matrix (presented in leaflet) following the approved RPFand in compliance with active Georgian laws and WB’s policy on involuntary resettlement. Experts also talked about Complaints and Grievance Redress Mechanism. A grievance mechanism will be available to allow an AP appealing any disagreeable decision, practice or activity arising from land or other assets compensation. The presentation was followed by a Q&A session. The questions and comments of different participating parties were replied by the relevant experts of the project: The questions and answers are given in PC Meeting Summary Protocols No 1, 2, 3. PC Meeting Summary Protocol No 1 RAP Consultation Meeting in v. Gomi (Khashuri Rayon) February 24, 2013 11:00 AM Office of village Sakrebulo Question-and-Answer session: No. Question/Comment Author Expert comment 1. What is the land Local Population At present the research/evaluation compensation price? process of identification of market rate for land compensation is underway taking into account investors and government’s interests. Evaluation methodology implies identification of market price on the basis of real negotiations related to the existing legal documents confirming ownership rights and acquisition of land plots. Final price will be identified when the representative of Roads Department will come to each affected landowner to sign the contract. 2. This year we have not Local population In any case, crop compensation for 1 cultivated land, how the year will be given to APs in cash at compensation will be market rate by default at to gross crop implemented and what is value of expected harvest , even in case your advice: should we if you already taken this year crop before continue cultivation of starting the land acquisition process . annual crops this year? The start up of land acquisition is expected for July/August of this year. RAP_Rev01 28 You have to specify within the next two weeks the exact schedule with the RDMRDI and take decision accordingly. 3. How will be compensated Zurab Tatishvili Compensation value of perennial perennial plants? plants will be defined according to the cash compensation at market rate on the basis of type, age and productive value of the trees. 4. If AP would not like to sell Local population The project is of Public Interest and the land plot what will for such cases the Eminent Domain happen in this case? Law is in force. According to this law, The land plot needed for the projects of public interest will be expropriated upon the Court decision. The landowner will receive fair compensation defined by the Court in accordance with expropriation rules set forth in Eminent Domain Law. AP may request allocation of similar land plot instead of getting cash compensation (if it is possible). However, in most cases there are no available public land plots in reserve. 5. In case if the Elene Chochishvili The LAR process is conducted under compensation price will not the Eminent Domain law and in case be acceptable for us, what of disagreement, the land will be is the scenario: will be land expropriated upon the court decision. taken anyway? Court will review the prices provided by independent auditors, who has prepared RAP, proposal of your valuators and besides, the Court can engage other independent auditors. The Court decision is final. No land acquisition is done before the payments are executed according to the Court decision. The issue could be solved at pre-litigation stage through negotiations and Grievance Redress Mechanism. In the information booklets you can find Claims and Comments Submission Forms. 6. How is the registration and Local population There will not be a problem with land compensation process registration process on heir apparent handled in case if the after submission of the relevant owner of the land has documents to NAPR. died? 7. Is it envisaged by the Ramaz Kurdadze If AHs receive Governments project any kind of special subsidies, or have status of the family, compensation or which is “under the poverty line�, or assistance for vulnerable headed by the women, etc, and there people? are official information/documents related to the above-mentioned status, these people are considered as vulnerable. All these persons will receive additional allowances as specified in the eligibility matrix in your leaflets. RAP_Rev01 29 RAP_Rev01 30 The public consultation meeting has been attended by 64 APs representing the community of village Gomi. Below are given the signatures of attendees. RAP_Rev01 31 RAP_Rev01 32 RAP_Rev01 33 PC Meeting Summary Protocol No 2 RAP Consultation Meetings in Zemo-Osiauri/Akhalsopeli (Khashuri Rayon) February 24, 2013 15:00 p.m. Office of village Sakrebulo Question-and-Answer session: No. Question/Comment Author Expert comment 1. What are the prices for Local population The pricse have not been determined land and how the price yet – but you will be informed about has been determined? the rates, when the draft RAP is disclosed. The rates for different land plots will be derived based on the official transactions related to selling/purchase of similar land plots during the recent years and official proposals advertised by real estate companies. CONSULTANT of the Roads Department will come to each APs and will prepare precise and accurate land parcel maps with detailed measurement and geometric descriptions. They will prepare a special matrix, where everything will be defined. For each landowner inventory will be made together with landowner, which will be signed after reviewing and agreement by the landowner. After defining the compensation price contract will be prepared. In the mentioned case contract will be signed between the Roads Department and the landowner. 2. Will additional access Tamaz Metivishvili Highway should not prevent internal roads be envisaged communications. This issue is taken under the project to into account on the project level. In reach the residual land particular, highway will consist of parcels? several overpasses and underpasses which will ensure normal functioning of bypass roads of the villages and easy/free movement of people, cars and cattle on the opposite side of the highway. 3. What happens In case if Local population The LAR process is conducted under negotiations in relation the Eminent Domain law and in case of with the land price fail? disagreement, the land will be expropriated upon the court decision. Court will review the prices provided by independent auditors, who has prepared RAP, proposal of your valuators and besides, the Court can engage other independent auditors. The Court decision is final. No land acquisition is done before the payments are executed according to the Court decision. The issue could be solved at pre-litigation stage through negotiations and Grievance Redress RAP_Rev01 34 Mechanism. In the information booklets you can find Claims and Comments Submission Forms. 4. In case when only part of Iza Bukhrikidze The viability of the residual land parcel the whole land parcel is will be estimated by the independent affected, is the residual auditor. In case of residual land parcel land parcel subject for is considered unviable, the owner will compensation? be asked to make a choice: to get cash compensation for the residual land or to keep the land under the ownership. The auditing company will inform the Roads Department about this kind of cases and if it is confirmed that the residual land parcel is unviable, the Government will acquire this residual land parcel. Land compensation for land is restricted and is possible only in that case when there is a land available in reserve. 5. How the issue of Local population If during project construction channels channels will be solved are damaged, they will be rehabilitated during project or moved to other places. construction phase? 6. Will the local population Local population During the construction period in be employed during the tender documents the employment of road construction local population will be taken into process? account (it concerns both qualified and non-qualified employees). But first of all priority will be given to the vulnerable people which also will be reflected in tender documents. RAP_Rev01 35 RAP_Rev01 36 The public consultation meeting has been attended by 26 APs representing the community of villages Zemo Osiauri and Akhalsopeli. Below are given the signatures of attendees. RAP_Rev01 37 RAP_Rev01 38 PC Meeting Summary Protocol No 3 RAP Consultation Meetings in v. Akhalsopeli (Kareli Rayon) February 28, 2013 11:00 a.m. Office of village Sakrebulo Question-and-Answer session: No. Question/Comment Author Expert comment 1. What is the price of 1 sq. Local population At present the research/evaluation m. land plot? process of identification of market rate for land compensation is underway. Evaluation methodology implies identification of market price on the basis of real transactions related to the land sale/purchase in the affected rayon during the recent years. 2. What are the categories Local population The prices of the land will be classified of the land parcels? according t the categories of the land depending on the landuse patterns ( agricultural/commercial), distance to the highway etc. 3. You have mentioned that Local population You definitely will be considered as a women-headed vulnerable household and will receive households and those allowances in amount of 3 month of under the threshold of minimum subsistence for a family poverty are eligible for consisting of 5 persons (891 GEL). You additional allowances. will not be eligible for receiving doubled What happens in case if allowance: allowance is paid for APs I am a lonely woman and considered to be vulnerable by at least also receive the one criteria, but the allowances are not governmental summed, in case if the AP is vulnerable allowances due to according to both criteria. poverty. 4. When the owner of the Local population There will not be a problem with land land is died how the registration process on heir apparent compensation will be after submission of the relevant implemented? documents to NAPR. 5. What is the width of the Local population On average the width of the 49 km. road? road is 30 m. The mentioned section of the road will be upgraded from 2-lane to 4-lane highway. Detailed measurement will be shown in LARP, which will be disclosed as soon as it will be prepared. RAP_Rev01 39 The public consultation meeting has been attended by 24 APs representing the community of village Akhalsopeli (Kareli rayon). Below are given the signatures of attendees. RAP_Rev01 40 RAP_Rev01 41 4.3 RAP Consultation Meetings with Owners of Affected Gas Filling Plant and Employees March 4, 2013 12:30 p.m. Office of the Plant in Gomi March 4, 2013 19:00 p.m. Tbilisi Question-and-Answer session: No. Question/Comment Author Expert comment 1. How will be Archil Khvedelidze The movable assets will be purchased compensated the by the RDMRDI and they will decide movable assets, in case what to do with the assets. if we do not continue the business at other sites and finish our business activity? 2. In case if the Archil Khvedelidze In RAP it will be clearly determined, compensation payment that the compensation prices are free is based on a of depreciation and taxes. Either the sales/purchase RDMRDI will negotiate with the agreement, we will be Government to exempt you from tax imposed to pay taxes? payments, or the tax amounts will be added to the net compensation price given to you and later you will pay taxes. 3. I am shareholder and at Archil Khvedelidze Yes, in addition to the compensation of the same time – assets and business losses, you will employee of the affected receive 3 allowance in amount of months plant. Am I eligible also minimum subsistence for losing job. for compensation of job? 4. How will be distributed Givi Khvedelidze To each shareholder according to their the compensation – to shares defined in the shareholders company or to each agreement. shareholder? 5. What is the price for Archil Khvedelidze The prices are being evaluated by commercial land? independent auditors. According to preliminary estimations, for your land it should be round 4 GEL per sq.m. 6 RAP_Rev01 42 The meetings were conducted with all shareholders and employees of the company (5 shareholders and 5 employees; Number of AH is 7, as 3 of affected employees are at the same time shareholders. Below are given the signatures of attendees. Shareholders: RAP_Rev01 43 Employees: RAP_Rev01