STATE ROAD AGENCY OF UKRAINE SECOND ROADS AND SAFETY IMPROVEMENT PROJECT (P-127156) UKRAINE ADDENDUM No.2 TO THE RESETTLEMENT ACTION PLAN DECEMBER 2018 CONTENT ABBREVIATIONS ...................................................................................................................................... 3 Executive summary ....................................................................................................................................... 4 Project institutional framework ..................................................................................................................... 5 Original RAP and RPF.................................................................................................................................. 5 The purpose of this Addendum No.2 to the RAP ......................................................................................... 6 The list of PAPs and assets whose acquisition was avoided ......................................................................... 6 The list of PAPs and assets subject to acquisition ........................................................................................ 6 Implementation mechanisms and institutional framework ........................................................................... 9 Grievance redress mechanism (GRM) .......................................................................................................... 9 Budgetary requirements ................................................................................................................................ 9 Disclosure and Supplement to the RAP Monitoring ..................................................................................... 9 Schedule of implementation of Addendum No.2 to the RAP ..................................................................... 10 ABBREVIATIONS GoU Government of Ukraine GRM Grievance redress mechanism га hectars PAP Project affected persons PIU Project implementation unit RS Road service RoW Right of way RSIP Road and safety improvement project UAH Ukrainian hryvna OP Operational policy IBRD International Bank for Reconstruction and development Executive summary The objectives of the Second Roads Safety Improvement Project (RSIP2) are an improved condition and quality of sections the M-03 road and increased safety on roads in Ukraine. The project is a follow-on for RSIP, which was approved by the World Bank in 2009. The RSIP2 is aimed at reconstruction of road M-03 between Kyiv-Kharkiv-Dovzanskyy, primarily concentrating on improvements in the Lubny - Poltava. The project implemented State road agency of Ukraine (Ukravtodor) - the state governing body of automobile roads in Ukraine, supervised by Government of Ukraine through the Ministry of infrastructure of Ukraine. In addition to the reconstruction of the existing roads, RSIP2 includes construction of three bypasses: Pokrovska Bahachka village in Khorol rayon Poltava oblast, Krasnogorivka village in Velykobahachanskyy rayon Poltava oblast and 1st stage of Poltava bypass. In order to implement project decisions, it is necessary to acquire private land into State ownership with subsequent change of their purpose and to provide road service in Poltava region the right to permanent use of these lands. According to Resettlement Policy Framework approved for the project on March 11, 2012, a Resettlement Action Plan (RAP) was developed, and Addendum No 1 to the Resettlement Action Plan was developed on December 9, 2017. These documents are intended to protect the interests of the Project Affected Persons PAPs following the IBRD Operational Policies on social safeguards – OP 4.12. This RAP and addendum No1 to the RAP were approved and disclosed according to IBRD procedures. As of December 9, 2017 the total number of PAPs was 121 and the estimated total compensation was about UAH 38 million (US$1.4 million equivalent). During permanent process of engaging local population via consultations as required by the World Bank , Ukravtodor, PIU and Poltava Road Service received appeals from local residents and local authorities of Belotserkivka village of Velikobagachansky rayon of Poltava region with a proposal to amend the project design of construction of two additional cattle passes with a size of 2.5 x 6.0 in the village and of local roads for the possibility of movement within the village without the need to go to the road Ib category. In order to be socially responsive road development, Ukravodor supported the proposal by local community and The Technical Council of Ukravtodor approved introduction of amendments to the project design on June 15, 2017. Change in the design documentation and making the project boundaries in nature, resulted in need for additional acquisition of 3 land plots, 1 house and involuntary resettlement of 1 person in the Bilotserkivka village (Lot 2.8). Also in line with the OP 4.12 "Involuntary resettlement" principles , which emphasize that the Project, the Borrower should, if possible, avoid resettlement and loss of assets by the population and to search for alternatives to minimize the alienation of assets, it was possible to find alternative solutions and avoid the acquisition of 3 land plots on Lot 2.9 ( the first stage of Poltava bypass). It should be noted that during the implementation of the RAP on Lot 2.9, it was found that 1(one) land plot was inherited by three heirs, who were paid compensation for the land in equal shares. Thus, the total number of displacement of persons (PAPs) on the Lot 2.9 (the first stage of Poltava bypass) decreased to single person. Hence, this Addendum No.2 was prepared to update the RAP, taking into account additional information on the need for land acquisition and procedures related to the land acquisition process, to ensure compliance with the IBRD guidelines and procedures. As a consequence of the implementation of this addendum, the number PAPs on the Lot 2.8 (Krasnogorivka bypass) will increased by 2 persons (1 private person and 1 legal entity) and the area of land needed for acquisition will increase by 0,5676 hectares, and on Lot 2.9 number of PAPs will decrease by 1 person, and the land area requiring for acquisition will be reduced by 1,3859 ha. The eligibility and entitlement matrix for this RAP Addendum No2 is based on the entitlement matrix and the valuation formula in the original RAP, as prepared by PIU and approved by Ukravtodor and IBRD and disclosed on official resources and World Bank Infoshop on March 2012. The Project Description & Background 1. The RSIP2 is continuation of the earlier project RSIP, with the same objective of developing improved condition and quality of sections of the M-03 road, and increased traffic safety on roads in Ukraine. In addition to upgradation of sections of M-03 road (Kyiv-Kharkiv- Dovzhanskyi road) under Component 1 of the project, Component-2 included improvement road safety conditions in M-12 sections between Striy-Znamyanka to Vinnytska Oblast. Project institutional framework 2. Ukravtodor’s representative on the Project realization site is Poltava road service, which is engaged in the operation and maintenance of the highway M-03 Kyiv-Kharkiv-Dovzhanskyy, as well as land acquisition issues. The Project implementation unit (PIU) – SE «Ukrainian road investments», carries out technical support of the project and daily supervision. According to the Law of Ukraine "On alienation of land plots, other real estate objects located on them, privately owned, for public needs or for reasons of public necessity", the executive bodies in Rayons are responsible for making the decision to purchase land plots and other real estate objects located on them, negotiations with the property owners and funds transfer to the accounts of PAPs. The initiative to land acquisition and other real estate objects, which are placed on it, property valuation and production of technical documentation for the division of land plots, belongs to the competence of the Poltava road service, as an enterprise that is the customer of reconstruction and construction of transport infrastructure. In case of gaps between national legislation and World Bank Operational policies, the Resettlement Policy Framework (RPF) is applied and is regulated by the loan agreement between the Government of Ukraine and the World Bank, and provides for the application of measures provided for by the approved RAP. Disputes over land acquisition processes or proposed compensation may be settled through negotiations between the PAPs and the rayon executive bodies or, as ultima ratio, through judicial proceedings. Original RAP and RPF 3. This Addendum No2 to the Resettlement Action Plan for RSIP2 has been prepared based on the RPF, original RAP and addendum No1, approved under the project and disclosed in 2012 and 2017. The following compensation principles, categories of PAPs and entitlement matrix, mentioned in RAP and RPF valid for this addendum. The purpose of this Addendum No.2 to the RAP 4. The purpose of this Addendum No2 to the RAP is to record changes in the number of PAPs that have the right for compensation in connection with the acquisition of land plots and built structures located on the land, the need for which arose as a result of changes in project design during the implementation of the Project. In addition, on July 21, 2015, a provision was made in the Loan Agreement, which provides for the possibility of using the loan funds to pay compensation for land plots and built structures located on them. Taking into account the change in the number of PAPs due to the above-mentioned changes, it was considered necessary to make Addendum No.2 to the RAP to update the documentation according to the RPF and Bank`s safeguard policies. The list of PAPs and assets whose acquisition was avoided 5. Following table shows action taken to minimize the alienation of assets, andalternative solutions and avoid the acquisition of 3 land plots on Lot 2.9 № Lot name of the Cadastral number of Purpose Total Area to Remarks/Mitigatio owner the plot area of be n measures the plot, redeemed ha ha Alternative land 5324085200:00:023:0 For personal 1 2.9 Sak A. 1,8504 0,9214 provided/ solution 028 farming was found For Alternative land Miheykin 5324087700:00:007:0 commodity provided/ solution 2 2.9 0,6033 0,0204 was found О. 025 agricultural production It was found out that the land plot Yatsenko was not formed, the 3 2.9 A. no ------- 0,4441 right of ownership (probably) of the land plot did not arise. Total 1,3859 The list of PAPs and assets subject to acquisition 6. Additional land plots were determined for acquisition on the basis of developed and approved working drawings. As a result of the acquisition of land plots and real estate objects that are located on them, the total number of PAPs will change. The table below provides a brief overview of the number of PAPs and compensation amounts № Name of the Lot Number Number of Number of Total Total area of PAPs PAPs as PAPs number to be according 30.11.2017 (Addendum PAPs as acquired to the (Addendum No.2) 31.10.2018 original No.1) RAP 1 Lot 2.7 37 37 0 37 45,8783 Pokrovska Bogachka bypass 2 Lot 2.8 15 25 2 27 10,9615 Belotserkivka bypass 3 Lot 2.9 Poltava 54 59 -1 58 56,2366 bypass (1st stage) Total 106 121 1 122 7. For implementation of the project on Lot 2.8, additional land acquisition of 3 land plots and resettlement of 1 person is required. Data for each land plot are given in the following table Total Area to Name of the Cadastral number of the area of be № Lot Settlement Purpose owner plot the acquired, plot, ha ha For individual housing, garage 1 2.8 Bilotserkivka Nechay O. 5320281201:01:001:0504 0,2355 0,2355 and dacha construction For personal farming, horticulture, 2 2.8 Bilotserkivka Nechay O. 5320281201:01:001:0183 0,2145 0,2145 gardening, mowing and grazing For construction and maintenance of residential LLC "Lubny 3 2.8 Bilotserkivka 5320281201:01:001:0033 houses 0,1176 0,1176 ShBU №9" commercial buildings and structures 8. Aadditional census survey found that on the plot bearing with cadastral number 5320281201:01:001:0504, there is a residential house (built structures). As of October 2018, 1 (one) person lives in the residential building, who is the owner of the land and required resettlement. During PAPs identification procedure, the owners of land plots and the built structures , located on them demonstrated presence of documents confirming their right of ownership to land plots and real estate. The detailed analysis of resettlement case given below. Case Study of Resettlement of Oleksiy Nechay Oleksiy Nechay, born 1940, retired, whose single source of income is pension. Mr. Nechay authorized Sharay Artem., his grandson, to act on his behalf to prepare the necessary documents, to negotiate with the local executive authorities regarding the price and sale. The respective notarized power of attorney was issued from Oleksiy Nechay from August 30, 2018. Trustee – Sharay Artem, born 1987, the grandson of Mr. Nechay who lives in Poltava and will responsible for purchasing of new accommodation for Mr. Nechay in Poltava to be near to his immediate family. In addition, the move from rural to city will provide to the PAP an access to better medical care, social servce and reduce transportation costs for the family members for visits. It was agreed with trustee that he would provide a relocation assistant to the PAP and no additional assistance from Poltava Road Service and Ukravtodor is required. The PAP expressed wish to use the compensation will be spent to purchase of accommodation in Poltava. Built Structure The house was built in the 1960`s. The area of the house – 60 sq. m. The house is a permanent structure and also there is 1 adjacent building located on the same premise (Summer Kitchen) The availability of all legal documents including title deeds for land plots and house and power of attorney has been verified by Ukravtodor social engagement Consultant in October 2018. After resettlement the PAP will live in Poltava near his grandson, and the compensation paid will be spent on the purchase of housing unit (flat) in Poltava. . The trustee agreed to self relocation (resettle PAP by his own transport) so additional assistance is not required Social Specialist attached to the Ukravtodor will follow up after relocation will take place to ensure the PAP is resettled and having better standard of living condition.. In addition, the owner and trustee have been informed adequately about the GRM mechanisms of the project submit any grievances during and after the resettlement. . As of October 2, 2018 The Contractor received written consent of the owners to carry out civil works on their land plots before the payment of compensation, which avoids delays in terms of project implementation. On the land plot on which the real estate is located, works are not being conducted. Implementation mechanisms and institutional framework 9. The institutional mechanisms and organizational responsibilities for the implementation of this Addendum No.2 to the RAP will be in line with the existing implementation mechanisms provided in Appendix 1 of the original RAP, which was approved and disclosed in 2012. In addition, Poltava road service, Ukravtodor and PIU will assist rayon state administrations and local councils in the future in order to accelerate the processes of acquisition of land by identifying their owners and checking their rights, evaluation of land and other productive assets, documentation, consultations with land owners and the provision of funds to the rayon state administrations for further payments in favor of those PAPs whose assets are acquired. According to the reports received from the Poltava road service and the data obtained from PIU, work on the formation of a consolidated report on the acquisition of land will continue with provision of reporting information in the same format in which it is being done now. Grievance redress mechanism (GRM) 10. The GRM for the project remains unchanged and is described in the Addendum No.1 to the RAP dated 9 December 2017. Budgetary requirements 11. The amount of compensation for acquisition of additional land plots, according to the available expert assessments of land, which were made by lisenced evaluation entities, taking into account the state duty, notary services, and cadastral Registrator`s fee, specified in the following table. № Cadastral number Area, ha Estimated Total cost Тechnical Total, cost sq. m., of the plot. costs, UAH UAH UAH UAH 1 5320281201:01:001:0504 0,2355 139,06 327500,00 11564,00 339064,00 2 5320281201:01:001:0183 0,2145 49,30 105739,16 9346,39 115085,55 3 Real estate 105200,00 9341,00 114541,00 4 5320281201:01:001:0033 0,1176 139,07 163546,32 9924,46 173470,78 Total 0,5676 701985,48 40175,85 742161,33 Disclosure and Supplement to the RAP Monitoring 12. The Addendum No.2 to the RAP will be disclosed after the clearance from the Bank and will be published in the official website of Ukravtodor. The IBRD may also make the approved Addendum No.2 to the RAP available on its website as part of its compliance with the disclosure standards set out in the Loan Agreement and its supplements. Schedule of implementation of Addendum No.2 to the RAP № Task Deadline / final № Notes term Public consultations with communities in the carried out 1 territory of the Project constantly Land owners dentification property rights 2 October 2018 Done recognition 3 Submission of the draft of Addendum No.2 to the World Bank November 2018 Done Approval of the Addendum No.2 to the PAP by 4 January 2019 Expected World Bank 6 Compensation payment completion in favor of PAP February 2019 Expected 7 PAP resettlement / relocation completion February 2019 Expected 8 Resettlement monitoring and reporting On a regular basis The Resettlement Completion Report of the road section will include all the details and outstanding issues, if any at the end of the road construction work.