ARM: Proposed Armenia Georgia Border Regional Road (M6 Vanadzor Bagratashen) Improvement Project

Transcription

1 Resettlement Plan Land Acquisition and Resettlement Plan July 2016 ARM: Proposed Armenia Georgia Border Regional Road (M6 Vanadzor Bagratashen) Improvement Project Prepared by the Ministry of Transport and Communications of Armenia for the Asian Development Bank. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the terms of use section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

2 TABLE OF CONTENTS EXECUTIVE SUMMARY... 8 A. INTRODUCTION I. GENERAL II. PROJECT BACKGROUND III. SCOPE AND STATUS OF THE LAND ACQUISITION AND RESETTLEMENT PLAN16 IV. LIMITATIONS OF APPLIED IMPACT ASSESMENT METHODOLOGY V. OVERALL OBJECTIVES OF THE LAND ACQUISITION AND RESETTLEMENT PLAN17 VI. LAND ACQUISITION AND RESETTLEMENT RELATED CONDITIONALITIES VII. DOCUMENT DISCLOSURE VIII. CUT-OFF DATE B. IMPACT ASSESSMENT AND AFFECTED HOUSEHOLDS, AFFECTED PERSONS CENSUS I. GENERAL II. SURVEY ACTIVITIES AND METHODOLOGIES III. IMPACT ASSESSMENT LAND IMPACTS IMPACT ON BUILDINGS AND STRUCTURES IMPACTS ON CROPS, TREES AND OTHER IMPROVMENTS IMPACTS ON BUSINESSES AND EMPLOYMENT AH CENSUS IMPACTS AND AH/AP CENSUS SUMMARY C.S OCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS I. INTRODUCTION II. SUMMARY DESCRIPTION OF AFFECTED POPULATION IN AFFECTED COMMUNTIES POPULATION AND FAMILY SIZE IN AFFECTED COMMUNITIES GENDER and AGE of HHs IN AFFECTED COMMUNITIES EMPLOYMENT STATUS EDUCATION LEVEL ACCESS TO SERVICES AND FACILITIES LAND RESOURCES III. IMPACTS ON WOMEN D. LEGAL AND POLICY BACKGROUND I. ARMENIA S LEGAL FRAMEWORK ON LAND ACQUISITION AND RESETTLEMENT37 II. ASIAN DEVELOPMENT BANK S PROVISIONS ON INVOLUNTARY RESETTLEMENT UNDER THE SAFEGUARD POLICY STATEMENT III. COMPARISON OF ARMENIAN LEGISLATION AND REQUIREMENTS OF ASIAN DEVELOPMENT BANK SAFEGUARD POLICY STATEMENT

3 IV. LAND ACQUISITION AND RESETTLEMENT FRAMEWORK PRINCIPLES AND ENTITLEMENTS ADOPTED FOR THE PROJECT F. COMPENSATION ELIGIBILITY AND ENTITLEMENT I. GENERAL II. ELIGIBILITY III. COMPENSATION ENTITLEMENTS Land loss Loss of buildings Loss of Non-Residential Buildings Loss of Public Property Loss of Yield/Crops Loss of Trees and yield Interruption of Business (entrepreneurship) Job Loss Allowances for Severe Impacts Relocation Allowances Allowance to the Vulnerable People/AHs Temporary impact Unforeseen LAR impacts if any Compensations for Improvements: IV. ASSESSMENT OF COMPENSATION UNIT VALUES V. CONDITIONS FOR EXPROPRIATION VI. LEGALIZATION REQUIREMENTS F. PUBLIC CONSULTATION, PARTICIPATION, AND DISCLOSURE I. PUBLIC CONSULTATION II. DISCLOSURE OF LAR-RELATED DOCUMENTS G. INSTITUTIONAL ARRANGEMENTS I. MOTC AND TPIU II. LOCAL SELF GOVERNMENT III. ASIAN DEVELOPMENT BANK IV. OTHER MINISTRIES, ORGANIZATIONS AND INSTITUTIONS V. IMPLEMENTATION STRUCTURE H. COMPLAINTS AND GRIEVANCES I. LARP IMPLEMENTATION PROCESS I. GENERAL II. LAND ACQUISITION AND RESETTLEMENT PLAN PREPERATION AND IMPLEMENTATION J. RESETTLEMENT BUDGET AND FINANCING I. GENERAL II. COMPENSATION

4 2.1 Compensation of land Compensation of structures Compensation of crops and trees Compensation of improvements (other than structures, crops and trees) Compensation of business and income losses III. REHABILITATION ALLOWANCES Severe Impact Allowances Allowances to Vulnerable Groups Relocation Allowances IV. REGISTRATION SERVICES V. COMMUNITY STRUCTURES AND PUBLIC UTILITIES VI. SUMMARY COSTS AND SOURCE OF FINANCING K. MONITORING AND EVALUATION I. INTRODUCTION II. INTERNAL MONITORING III. EXTERNAL MONITORING APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES APPENDIX 2: MINUTES OF PUBLIC CONSULTATION MEETING APPENDIX 3: INFORMATION LEAFLET OF PC

5 ABREVIATIONS ADB Asian Development Bank AH Affected Households AMD Armenian Dram AP Affected Person DMS Detailed Measurement Survey DD Detailed Design EA Executing Agency EIB European Investment Bank EM Entitlement Matrix GoA Government of Armenia GRM/GRP Grievance Redress Mechanism, Grievance Redress Person HH Household IP Indigenous People IC Implementation Consultant LAR Land Acquisition & Resettlement LARF Land Acquisition & Resettlement Framework LARP Land Acquisition & Resettlement Plan LGBs Local Self- Governing Bodies M&E Monitoring & Evaluation MOTC Ministry of Transport and Communications NGO Non-Government Organization PC Public Consultation TPIU Transport Projects Implementation Unit State Institution RA Republic of Armenia RP Resettlement Plan SCREC State Committee of Real Estate Cadaster SES Socio-Economic Survey SES Social and Environment Specialist SPS Safeguard Policy Statement 5

6 Affected Household (AH) Affected Person /People (AP) Compensation Eminent Domain Land Acquisition Compensation Entitlement Improvements Host Population Indigenous Peoples (IP) DEFINITION OF TERMS The affected household as a whole. This unit operates as a single economic and domestic unit and may consist of an individual, a single nuclear family or an extended family. Any person (individual) affected by project-related changes in the use of land, water and other natural resources, or by project induced income losses. This could include both physical and economic displacement. 1 Payment for restoration or the replacement cost of the acquired assets. The constitutional basis for the alienation of the property for public and state purposes. The process of acquisition of lands or a part of them (with real estate and property rights) which have been considered as exclusive prevailing public interest by RA government decree and belonging to individuals and legal entities as well as communities (owners) with the right of property located in the Republic of Armenia or duly registered as per the RA law required for the needs of state and public with prior appropriate compensation. Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and resettlement to be provided to affected people, depending on the nature of their losses or impacts, to restore their economic and social base as well as their rights. Buildings and structures (underground and above-ground) constructed on the lands, including structures with economic buildings or structures, including garden-cottage with its economic buildings built on the separate land of a gardening area, structures of public and significance, unfinished structures, newly constructed, purchased or modified real estate registered by authorized body of Real Estate Cadaster which does not have state registration as well as illegal structures and buildings on the land plot, illegal structures adjacent to the existing buildings or structures (regardless the fact of registration), utilities, engineering networks and other structures. Community residing near the area where the Project beneficiaries propose to voluntarily resettled as part of the Project. Indigenous Peoples as used in the ADB s Policy on Indigenous Peoples encompasses a generic concept not easily reflected in a single term. Ethnic Minority is one of the other terms relating to the concept of indigenous peoples as addressed in the ADB policy. Others are cultural minorities, indigenous cultural communities, tribals, scheduled tribes, natives, and aboriginals. Accepted or preferred terms and definitions vary country by country. Indigenous Peoples is the term used in the United Nations documents, and is used by ADB solely for convenience. In Armenia, the term Ethnic Minority is considered more applicable. In this respect, to qualify for consideration as being covered under the ADB s IP Policy, an ethnic minority should be regarded as those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development. For operational purposes, ADB defines indigenous peoples with these characteristics: (i) self-identification a distinct indigenous cultural group and recognition by others as such; (ii) collective attachment to geographically distinct habitats; (iii) customary cultural, economic, social or political institutions that are separate from the dominant society; and (iv) a distinct language, often different from the official language. 1 Although this definition of affected person is at variance with that in the SPS-2009, but practically it is not different from displaced person defined in the SPS

7 Informal Tenants Marz-Community Rehabilitation Relocation Replacement Cost Resettlement Resettlement Plan Vulnerable Households Legalizable AP Non - legalizable AP An Affected Person who uses affected land or asset based on an informal /vernal agreement with an owner which is confirmed by a written statement from an owner (by a reference or other way). Armenia is divided into 10 provinces (marz). The province chief executive is the governor (marz) appointed by the Government. Each province is divided in communities (hamaynk) which are self-governing units and consists of one or more settlements (bnakavayr). Settlements are classified as towns (kaghak) or villages (gyugh). As of 2009 Armenia includes 915 communities (49 urban and 866 rural). Previously having Marz status, Yerevan, now has the status of a community and it has an elected mayor. Compensatory measures provided under the Policy Framework on involuntary resettlement other than payment of the replacement cost of acquired assets. The physical relocation of an AP/AH from her/his pre-project place of residence/business The replacement cost is calculated for acquired land, housing and other assets. The calculation of replacement cost is based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued; (iv) transitional and restoration costs; (v) other applicable payments, if any. Depreciation of structures and assets are not taken into account. 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 public property. A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation. Vulnerable households are: (i) Registered in the evaluation system of vulnerability of families (ESVF) and receive a family allowance, (ii) headed by a breadwinning women and not including other adult, working-age person with stable employment providing at least minimum monthly salary except for persons doing compulsory military service or full-time students under twentythree years of age, (iii) households headed by persons entitled to old age pension and not including other adult, working-age person with stable employment providing at least minimum monthly salary except for persons doing compulsory military service or full-time students under twenty-three years of age. APS who have no registered ownership or other property rights toward the affected land and/or adjacent building/asset but are legally eligible thereto based on actual possession and usage of property or law, or the possibility of obtainment of property rights of latters are directly resulting of or are disposed by RA legal acts. APS who though actually possess and use affected land and adjacent asset but do not have legal possibility eligibility to obtain ownership or other property rights toward the affected land according to restrictive provisions and regulations of legislation 7

8 EXECUTIVE SUMMARY Project Background 1. The Government of Armenia requested ADB to co-finance the Proposed M6 Vanadzor Georgian Border Interstate Road Rehabilitation and Improvement Project (hereinafter: Project) with the European Investment Bank (EIB). EIB engaged an international consultant to complete a feasibility study, environment and social impact assessment, and detailed engineering design. The project road is about 90 km long. Section 1 (K0+000 K38+450) to be financed by EIB (EIB-financed road section); and section 2 (K K91+000) to be financed by ADB (ADB-financed road section). ADB is supporting the preparation of safeguard due diligence for land acquisition and resettlement to assess the possible impacts of the Project based on the project design. For this purpose this draft Land Acquisition and Resettlement Plan (LARP) has been prepared for the proposed project as part of the documentation for the approval of an ADB loan as well as for the GoA s adoption of a decree on Eminent Domain for carrying out a project level census of the affected persons and a detailed measurement survey (DMS) of the project affected assets for preparing an implementable LARP. 2. This draft LARP is prepared only for the section proposed for ADB financing (km km76.250). LAR-Related Conditions to Project Implementation 3. According to the requirements of the SPS and established operational practice, the Project approval/implementation will be based on the following conditions: Approval of Loan: Conditional to preparation/disclosure of a implementation-ready LARP and acceptable to ADB and Government of Armenia. Project implementation clearance: Conditional to: a) The finalization of the LARP as an implementation-ready document and its disclosure; and b) hiring of an External Monitoring Agency (EMA) ready for mobilization for LARP implementation compliance. Start of Physical Civil Works: Conditional on full implementation of the relevant LARP (full compensation/rehabilitation delivery) to be vouched by a Compliance Report by the EMA acceptable to ADB. Impacts Summary 4. Based on the overlay of preliminary design drawings and cadastral maps supplemented with limited field visits, as well as on the information collected by the substantial consultations with affected community representatives, a preliminary land acquisition and resettlement impact assessment was carried out for the proposed Project. Taking into account that sometimes the communities have lack of information on their land resources, this data will be verified during LARP finalization through the cadastral data, detailed measurement and census surveys. 5. Based on a preliminary assessment, the Project will permanently acquire a total of 542 land plots covering 212, m 2 in 9 communities. The summary of impact assessment is presented in the Table below. 8

9 Impact Category A. Land Table ES: Impacts and AH/AP census Summary Plots/ Units AHs Area, m2 Comment/ description of unit A1. Private Land ,94 A2. Community Land , The AHs of leaseholders and users was calculated based on A3. State Land , the number of structures on community and state lands. A4. Unidentified 34 - Subtotal (A) , B. Structures B1. Residential , The number of AHs can be with B2. Non-Residential double counting. The number of affected structures Sub- (B) , also is considered equal to the number of relocated AHs and businesses. C. Annual Crops Wasn t identified. D. Trees Wasn t identified. E. Business Based on the number of affected non-/ structures. F. Jobs losses Wasn t identified. G. Leaseholders/ Informal Tenants G1. Leases/users on community land Included in A2, A3 and B. G3. Leases/users on state land Sub- (G) I. Vulnerable/Severely Affected Households I1. Vulnerable AH (poor) I2. Severely Affected AH J. AH (788 APs) - Is included in B: the number of relocated AHs due to loss of house and/or business. Based on number of private owners (A1-238), possible user/renters on community and state lands (A2-8; A3-3) and affected structures (B, 54). The number of AHs can be with double counting. Compensation Eligibility and Entitlements 6. The updated land acquisition and resettlement framework (LARF) of the North-South Road Corridor Investment Program is used for guidance for this Project which is based on the 9

10 requirements of ADB s SPS of 2009 and Armenian Law. According to the LARF, the affected persons (APs) are entitled to compensation who are: (i) APs with legal titles or traditional land rights, legalizable APs, or APs 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 businesses, incomes, and salaries. An Entitlement Matrix for this project, based on the updated said LARF, is provided below. The LAR tasks under the Project will be implemented in accordance with and eligibility and entitlements defined in the LARF. Compensation eligibility is limited by a cut-off date that will be defined as soon as the finalization of the inventory of lost assets, detailed measurement survey, census and socio-economic survey commences during the LARP finalization stage. Type of Loss Application 1. Land Loss APs losing their owned property or a part of it regardless the impact amount 2. Loss of buildings, structures 3. Loss of non buildings Buildings, structures with state registration owned Table E1: Entitlement Matrix Eligibility Owner Legalisable AP s Compensation Entitlements Cash compensation at replacement cost, which is equivalent the assessed price of market value and cadastral rates (whichever is the highest) plus 15% or through an equivalent replacement land acceptable to the AP. In cases defined by legislation, the AP s may acquire ownership rights or apply the state registration of the present rights and to be compensated as owners. Leaseholders (lease In cases defined by legislation the leaseholders may of community or state acquire ownership right and to be compensated as the property) owner or he/she may be given an opportunity to hold a new lease in accordance with the agreement of the land owner (lessor). In case it isn t possible, AP will receive compensation equal to the market or cadastral cost of affected land (whichever the highest) +15% in the following proportions according to the length of the lease: i) < 1 year 5%, 2) <15 years 14% ; 3) <25 years 20%;4) >25 The leaseholder (leasing of natural persons and legal entities property) Persons possessing other property rights (servitude, construction, loan, mortgage, use) Non legalisable APs All the APs regardless the rights possessing for the structure (including legalisable and non-legalisable APs ) Relocated Leaseholders Owners years 25%. Cash compensation for already paid but not unused lease. Compensation is provided to persons possessing property rights from the affected property compensation amount in accordance to the RA legislation. These APs will receive compensations only for the improvements made on the land according to the LARF. Cash compensation cost + 15% for loss of building at full replacement cost free of depreciation/transaction costs and salvaged materials. Partial impacts will entail the compensation of the affected portion of the building plus repairs, in case if the further usage and maintenance of the non-affected portion of the building is technically possible. Cash refund of the unused rent already paid. Cash compensation + 15% for loss of building at full replacement cost free of depreciation and salvaged materials and decrement of transaction costs. Partial 10

11 Type of Loss Application Compensation Entitlements Eligibility structures by APs impacts will entail the compensation of the affected portion of the building plus repairs in case of the maintenance, if the use and the alienation of the non affected portion of the buildings is legally possible. Illegal structures, (except and actually APs who structured the illegal structure The compensation is provided with the same procedure as to the owners of buildings, structures only when the structure is legalized and rights registered. inhabited) Relocated Cash compensation for the unused lease already paid. 4. Public Property Loss Community or State property 5. Crop Loss Standing crops affected 6. Tree and Harvest Loss 7. Business (entrepreneurs hip) interruption Trees affected and expected harvest Businesses (entrepreneurship) in the affected land Leaseholders Community/State All AHs who made improvements regardless of their ownership and other property rights All AHs who made improvements regardless of their land ownership and property rights All APs regardless of the tax declaration Compensation of the community owned land, property or reconstruction of affected community and state-owned structures or other property and restoration of their functions in agreement with community, state authority. Crop compensation in cash at market value by default at gross crop value of expected harvest. Cash compensation at market value based on type, age and productive value of the trees. 1) Businesses with a tax declaration a) In case of permanent impact: cash compensation of 1 year net income. b) in case of temporary impact: cash indemnity of net income for months of business suspension up to 1 year. State registration and license fees will also be compensated, if any. 2) Businesses without a tax declaration 8. Job Loss 9. Allowances for Severe Impacts 10. Relocation allowance Permanent job loss or forced downtime not by the employee's fault AH to be relocated for losing 10% and more of land Allowance for the transportation and livelihood expenses Employees who have worked for affected business (company or Individual Entrepreneurship) by employment contract All severely affected APs/AHs including informal settlers All relocated AHs including leaseholders All APs having movables on the affected land and a) In case of permanent impact: rehabilitation allowance based on the minimum monthly salary for 1 year; b) In case of temporary impact: rehabilitation allowance based on the minimum monthly salary for the number of months of business stoppage up to a maximum of 1 year. Cash compensation: a) Permanent job loss: the employee will receive cash indemnity for 6 months average salary; b) Temporary loss: the employee will receive cash indemnity for all months of business stoppage based on the average salary up to 6 months. a) Additional crop compensation covering 1 year yield (from affected land part) for APs affected by loss of 10% and more of land. b) A rehabilitation allowance of 6 months at minimum salary to relocated AHs. Cash allowance to cover transportation and livelihood expenses for 1 month. Cash allowance to cover transportation expenses. 11

12 Type of Loss 11 Vulnerable People / AHs Allowances 12. Temporary impacts 13. Unforeseen LAR impacts, if any 14. Compensations for improvements Application Other improvements, which are not included in this Entitlement Matrix but exist on the affected land (except of the moveable property) Eligibility building to be relocated regardless of existing formal rights to property AHs headed by women, or elderly, or disabled persons and AHs living below the poverty line All APs/AHs who are temporarily affected Eligible APs/ AHs APs who made Improvements Compensation Entitlements Cash allowance equivalent to 6 months of minimum salary and priority in project-related employment. Damages will be compensated in the case of temporary impact with replacement cost in accordance with the relevant entitlements defined the LARF. MOTC will consider the unforeseen resettlement impacts during project and will compensate and will provide rehabilitation allowance based on the provisions of LARF. Cash compensation at replacement cost. Grievance Redress 7. A Grievance Redress Mechanism will be established at the project level in each community prior to the start of LARP implementation to ensure that the APs can appeal any decision, practice or activity arising from land or other assets compensation. The name of Grievance Redress Person (GRP) will be disclosed to APs in each community who will be the link between APs and Transport Projects Implementation Unit (TPIU). The APs will be informed of their rights and of the procedures for addressing their complaints to the GRP or other public authorities during the public consultations which will be organized during the LARP finalization stage. Public Consultation and Information Disclosure 8. A consultation meeting was held with representatives of regional and local community authorities, in participation of TPIU and ADB representatives in Lori Marzpetaran office and information about the project was disclosed. During the consultation meeting, the aims of the project, stages of LAR process, as well as eligibility and entitlements were presented to the audience. In addition, the APs will be provided with an Armenian language LAR Information Brochure after the approval of final implementation-ready LARP. Draft LARP in English will be published on the ADB website. LARP Costs 9. The costs of draft LARP for this Project, including compensation, rehabilitation allowances 12

13 and administrative costs of LARP implementation, as well as 20% contingency, is 1,827, AMD which is equivalent to 3, USD 2. Monitoring and Evaluation 10. LARP implementation will routinely be monitored internally by the TPIU (SES), with outcomes reported to ADB in a semi-annual monitoring report that will be posted on the ADB website, as well as in the quarterly progress reports. The LARP implementation compliance will be monitored externally by an External Monitoring Agency (EMA), for reporting to ADB. The approval of EMA s Compliance Report(s) by ADB will be condition for commencement of civil works. 2 US$ 1= AMD as of 30 June 2016 ( 13

14 A. INTRODUCTION I. GENERAL 1. The Government of Armenia requested ADB to co-finance the Proposed M6 Vanadzor Georgian Border Interstate Road Rehabilitation and Improvement Project (hereinafter: Project) with the European Investment Bank (EIB). EIB has engaged an international consultant to complete a feasibility study, environment and social impact assessment, and detailed engineering design. The project road is about 90 km long. Section 1 (K0+000 K38+450) to be financed by EIB (EIB-financed road section); and section 2 (K K91+000) to be financed by ADB (ADB-financed road section). ADB is supporting the preparation of safeguard due diligence for land acquisition and resettlement field to assess the possible impacts of the Project based on the draft design. For this purpose this draft Land Acquisition and Resettlement Plan (LARP) has been prepared for the proposed Project as part of the documentation for the approval of an ADB loan as well as for the GoA s adoption of a decree on Eminent Domain for carrying out a project level census of the affected persons and a detailed measurement survey (DMS) of the project affected assets for preparing an implementable LARP. 2. This draft LARP is prepared only for the section proposed for ADB financing (km km76.250). II. PROJECT BACKGROUND 3. The proposed project is located north of Yerevan, the capital of Armenia. Map 1 below presents the project s general location. The existing road and the new road alignment will be constructed to standards that will result in improved road markings, safety, tunnels and bridges. 4. The existing M6 road has a total length of about 90 km. It connects the city of Vanadzor with the Georgian border near the city of Bagratashen. Its alignment runs along the narrow valley of the river Debed, through various cities (Pambak, Vahagnadzor, Vahagni, Dzoragyugh, Dsegh, Tumanyan,,, Neghots, Shnogh, Karkop, Ayrum, Haghtanak, Ptghavan and Bagratashen). 5. The road project begins at the intersection with the road M3, in Vanadzor. In the first section of about 6.5, km the alignment runs within the urban area of Vanadzor, along the Baghramyan Avenue. In this section there is one bridge, on Bazum River, located at km 1.4. The bridge is in fair condition. However, safety barriers need to be replaced according to the standards. At the end of the urban area an interchange allows the connection with the M8 road, coming from Yerevan, via Sevan and Dilijan. The next section is Extra-urban section between Vanadzor and (km ). In this section are located three natural tunnels, respectively to km 25.0, 30.8 and The first tunnel is 105m long, the second 270m, and the third 171m. The first and the last tunnel are lined in concrete and have adequate width, but insufficient height. After is coming the urban section crossing (km 50.8 to 54.0). The final section is from exit of to the end of road at Georgian Border in Bagratashen (km 54.0 to about km 90.0). 6. The main goal of the Project is to improve of the standards and the safety measures along the existing alignment. This the Project is mainly achieved by means of widening and pavement strengthening on possible sections of the road, including rock-fall and landslide protections. Special attention has been made on improvement of safety devices. 14

15 Map A1: Republic of Armenia showing proposed M6 Vanadzor Georgian Border Interstate Road Rehabilitation and Improvement Project Area No. 7. The proposed alignment will traverse 9 communities and is estimated to affect 542 land plots with ,38 m 2 of land (see Table A1). From the total affected lands 37% are private owned, 39% community owned, 17% state owned, and for 7% of lands the ownership status was not identified. Taking into account the number of affected privateowned lands (238), the number of probably illegal structures on the affected state and community owned land plots (11), as well as the 54 relocated AHs and businesses, the total number of AHs to be affected is considered as 303 (see the details on the applied impact assessment methodology in Chapter B). There are no AHs losing more than 10% of their productive asset, at the same time, as preliminarily assessed, 44 and 10 non- structures (54 AHs) are affected and considered as severally affected relocated AHs and businesses. 8. Due to its level of LAR impact, the Project has been classified as Category B for involuntary resettlement. 3 Community Table A1: Number of Affected Land Plots in the Project Area Affected Private Land plots Affected Community Owned land plots No of Percent State Owned land plots Unidentified No of No of No of No of Percent Percent Percent Plots Plots Plots Plots Plots Percent % 49 32% 17 11% 10 6% % 2 Akhtala 21 54% 16 41% 1 3% 1 3% % 3 Aygehat 10 50% 1 5% 4 20% 5 25% % 4 Akori 0 0% 1 100% 0 0% 0 0% 1 100% 5 Haghpat 33 35% 44 47% 11 12% 6 6% % 3 As per the ADB Operation Manual (OM) Section F1/OP (2013) a project is classified as Category A if > 200 people suffer significant impacts (relocation or loss of 10% or more of their productive assets). A project will instead be classified as Category B when less than 200 people suffer significant impacts. Category C projects have no LAR impacts. 15

16 6 Neghots 22 54% 13 32% 2 5% 4 10% % 7 Shnogh 31 57% 17 31% 1 2% 5 9% % 8 Karkop 0 0% 0 0% 1 100% 0 0% 1 100% % 91 66% 1 1% 3 2% % No/ average % % % 38 17% 34 7% % III. SCOPE AND STATUS OF THE LAND ACQUISITION AND RESETTLEMENT PLAN 9. This draft LARP complies with relevant Armenian laws and regulations, and ADB s Safeguards Policy Statement (SPS) of Guidance has been drawn from the recently updated Land Acquisition and Resettlement Framework (LARF) prepared for the North- South Road Corridor Investment Program. 10. In line with international good practice, consideration has been given during the design process to minimize adverse Land Acquisition and Resettlement (LAR) impacts. 11. This draft LARP is based on the data obtained from secondary sources, therefore this LARP shall be updated and an implementation-ready LARP shall be prepared upon the adoption of a decree by the GOA on the alienation of the property for public and state needs (Preliminary survey decree or Eminent Domain decree) that allows survey team to enter an affected person s property for detailed measurement survey (DMS) and census survey. In addition, the RA legislation requires compensation valuation to be carried out by qualified valuators. IV. IMITATIONS OF APPLIED IMPACT ASSESMENT METHODOLOGY 12. This draft LARP is based on the estimates of the LAR impacts derived from an analysis of the pertinent cadastral maps and the road alignment, as currently designed, supplemented with limited field inquiries. 13. The preliminary census of affected people was compiled through cadastral lists of affected lot-s and information from the relevant community authorities, which is not guaranteed to be accurate and will need to be verified during the detailed measurement survey of the affected assets and a census of the project affected persons, once a decree on Eminent Domain is issued by the GoA. When the data mismatch is rectified, as well as the cadastral discrepancies will be corrected, the numbers for the affected lands/persons is very likely to be much less than presented in this draft LARP. 14. The socio-economic profile of affected population is based on official statistical data on the general socio-economic description of the population in the Lori Marz and affected communities (when available). The valuation of affected land and buildings is based on the assessment of replacement cost compensation rates for various types of identified lost assets in the affected locations. For some types of losses (crops, trees, business) the average estimation was given based on the similar projects data. 15. The details on the applied impact assessment methodology are presented in the next chapter. 16

17 V. OVERALL OBJECTIVES OF THE LAND ACQUISITION AND RESETTLEMENT PLAN 16. The the LARP is to identify all persons and legal entities who will be affected by the construction of the Project, to estimate the extent of the impact (i.e., what type of loss they will suffer and their value), and how they will be compensated or their incomes restored, to ensure that they are not worse off than in a without project situation. In all cases, the overall aim is to at least, restore the livelihoods and quality of life of the APs. The primary objective of the LARP is to provide necessary details for compensation, relocation and rehabilitation, including: i) preliminary identification of the extent of losses and impact of the project; ii) information disclosure, consultation and participation; iii) policy and framework for compensation payments and rehabilitation; (iv) rehabilitation program for severely affected and vulnerable households; v) complaints and grievance redress mechanism; vi) resettlement budget and financing plan including valuation of and estimated compensation for lost assets, relocation, and rehabilitation; vii) the institutional framework and implementation schedule of resettlement plan; and viii) monitoring of LARP implementation. VI. LAND ACQUISITION AND RESETTLEMENT RELATED CONDITIONALITIES 17. According to the requirements of the SPS and established operational practice, the Project approval/implementation will be based on the following conditions: Approval of Loan: Conditional to preparation/disclosure of a implementation-ready LARP and acceptable to ADB and Government of Armenia. Project implementation clearance: Conditional to: a) The finalization of the LARP as an implementation-ready document and its disclosure; and b) hiring of an External Monitoring Agency (EMA) ready for mobilization for LARP implementation compliance. Start of Physical Civil Works: Conditional on full implementation of the relevant LARP (full compensation/rehabilitation delivery) to be vouched by a Compliance Report by the EMA acceptable to ADB. VII. DOCUMENT DISCLOSURE 18. The APs will be provided with an Armenian language of final implementation-ready LARP Information Brochure. The draft LARP in English will be published on the ADB website. VIII. CUT-OFF DATE 19. Compensation eligibility is limited by a cut-off date that will be defined during the finalization of LARP as an implementation-ready document as soon as the finalization of the inventory of lost assets based on a detailed measurement survey, census and socio-economic survey commences. 17

18 B. IMPACT ASSESSMENT AND AFFECTED HOUSEHOLDS, AFFECTED PERSONS CENSUS I. GENERAL 20. This section provides detailed quantification of the estimated impacts affecting nine communities along the ADB financed road section of M6 Vanadzor--Georgian Border Interstate Road. They are located within the administrative territory of Lori Marz. From the total 20 affected communities, 9 communities identified as affected in ADB financed section (km km76.250) are as follows:, Akhtala, Aygehat, Akori, Haghpat, Neghots, Shnogh, Karkop,. II. SURVEY ACTIVITIES AND METHODOLOGIES 21. The preliminary design for M6 Vanadzor Georgian Border Interstate Road Rehabilitation and Improvement was confirmed in communities were identified as being affected by the identified alignment in ADB financed road section. 22. In view of the scope and the draft LARP preparation, the impact assessment methodology adopted aims to describe and assess the magnitude of the LAR impact of Project design and to plan in advance the appropriate mitigation measures. In order to assess the extent of the Project s impacts the following steps were undertaken: (i) maps analysis to describe and assess the affected area of the land, the number of buildings and types of affected areas (, non- etc.) (ii) Inventory of losses based on data from cadastral maps - to identify and evaluate the number of the land, buildings and assets to be acquired. (iii) Collection and review of general socio-economic data (deskwork): to describe the current socioeconomic condition of the Project area and potentially affected communities. (iv) Consultations with affected communities (fieldwork): to identify the ownership status and types of affected properties, as well as to obtain the data on total and vulnerable HHs in the affected communities. (v) Valuation of the affected assets - to estimate the cost of possible compensation for lost assets for development of the LARP budget. 23. The road alignment was superimposed on the digitized cadastral maps by the design consultant 4, based on which the affected communities have been identified. 24. The detailed steps carried out to identify the affected assets for the Project s ADB financed section are presented below. 2.1 Assessment of affected land 4 Digitized cadastral maps were obtained from the State Committee of Real Estate Cadastre (SCREC) of the GoA. 18

19 25. Based on the road alignment superimposed on cadastral map the number of affected land plots and their demarcation/area was identified for each affected community. No information was available on the ownership status and types of affected land plots, as well as their cadastral type by SCREC 5, so this information was collected and verified based on substantial consultations with affected community representatives. Taking into account that sometimes the communities have lack of information on their land resources, this data shall be verified during LARP finalization through the cadastral data, detailed measurement and census surveys. When the cadastral data is available and cadastral discrepancies are corrected, the numbers for the affected land plots is very likely to be much less than presented in this draft LARP. 26. The deviation into and non- types of affected land plots such as orchard, arable or, presented in this LARP are based on the cadastral classification of those lands, not actual which means that the actual type of land usage can be differ (for example, the land which is classified as an orchard by, may not be used like orchard and vice versa). 2.2 Assessment of affected buildings/structures 27. Based on the road alignment superimposed on cadastral map the number of affected structures and area were identified for each affected community. The structures identified by the design consultant have also been included in the number of affected buildings; therefore no field verification was done for identification of structures which are not registered in the maps. 2.3 Assessment of affected trees and crops 28. The actual affected crops and trees haven t been identified in this report, taking into account that this information is secondary in comparison with affected lands and structures in terms of the assessment of preliminary impacts, therefore for the affected crops and trees the average estimation was made based on the similar projects data. The actual inventory of affected crops and trees will be carried out during the final implementation-ready LARP preparation stage. 2.4 Assessment of affected businesses 29. Since it was not possible to identify type of businesses actually operating in the Project affected areas at this stage, in this draft LARP the number of affected businesses is based on the number of affected non- (commercial and ) buildings, therefore for the affected businesses the average estimation was made based on the similar projects data. The actually affected number and type of businesses will be identified during the final implementation-ready LARP preparation stage via DMS and inventory of assets. 2.5 Assessment of affected AHs/APs 5 SCREC provided cadastral data only for 5 communities which are located in the EIB financed section from the total

20 30. The preliminary census of affected people was compiled through cadastral lists of affected lot-s and information from the relevant community authorities, which is not guaranteed to be accurate and will need to be verified during the detailed measurement survey of the affected assets and a census of the project affected persons in final LARP preparation stage, once a decree on Eminent Domain is issued by the GoA. 31. The number of affected households (AHs) in this draft LARP is based on number of affected privately owned land-plots. Community and state owned land plots are not included in the number of AHs. The number of relocated AHs was considered equal to the number of affected structures, and the number of relocated businesses is based on the number of affected non- (commercial and ) buildings. Taking into account that the presented data is based on the cadastral category of structures, but not actual usage, this should be verified during the LARP finalization through DMS and census. 32. The socio-economic profile of affected population is based on official statistical data on the general socio-economic description of the population in the Lori Marz and affected communities (when available). The number of vulnerable AHs is based on the average percent of vulnerable HHs through the data provided by community representatives. 33. The implementation-ready LARP finalization will involve the following steps: 1) Verification and updating the list of affected land plots based on cadastral data, 2) Measurement of the plots under acquisition, demarcation of the land part that will be acquired and verification in cadastral maps in the presence of land owners or community authorities by a team of skilled land surveyors, 3) Description of land plots and crops/trees (if any), by a team of agronomists and specialized valuators of property, 4) Actual inventory and description of structures/buildings and real estate by valuation specialists. 5) Conduct of Census with a 100% and SES with 25% sample of the affected households by a team of trained field workers. 6) Additionally, all necessary documents will be collected to complete the profiles of the APs. 34. For the LARP finalization task the detailed Terms of Reference (ToR) should be developed for the consultant (s) to be hired for the implementation of LARP finalization survey tasks, as well as for the preparation of final implementation-ready LARP document. Details on LARP finalization are provided in Chapter I: Implementation Process. III. IMPACT ASSESSMENT 3.1 LAND IMPACTS Background 35. The Project will acquire 508 land plots covering 212, m 2 in 9 communities. As the project causes linear impacts due to road widening, only a small proportion of most plots will be affected. The average proportion of impact on private land plots is m 2 and for community lands: m 2. On average the Project affects the 16.55% of private owned lands in comparison with the total of lands (for all types of lands) in the Project affected zone. For community lands this percent is only 4.2%. 20

21 3.1.2 Legal Occupancy Status of Affected Land 36. All affected lands are registered/ recorded in SCREC. The following legal categories of lands are affected based on cadastral maps: 1) Private-titled: 238 plots (48 ; 189 non-; 1 special use) measuring ,94 m 2. 2) Community land: 232 plots (50 ; 179 non-; 3 special use) measuring 99, m 2. These lands are directly administered by Local Self Governing Bodies (LSGBs) and usually are used by community members as pastures, places for public amenities, rural roads or reserved for future use. Some of these lands can be formally leased to private APs or informally given for free on short-term use to private AHs (informal tenants on the community land). Data on leased or informally used community lands will be identified during the LARP finalization. 3) Government Land: 38 plots measuring 41, m 2. From this total 1 plot is, 13 non- and majority 24 are special use lands. 4) Unidentified Land: The land type and ownership status of 34 land plots wasn t identified due to the lack of information within communities on them Type of Land Losses 37. Of the affected 5426 land plots, 48 (7,755.10m 2 ) are private and 189 (60, m 2 ) are private non-, 1 land is for special use (3, m 2 ). 232 (99,306.64m 2 ) are community lands, from which 50 are (45,217.80m 2 ) and 179 (53,300.84m 2 ) are non-, 3 lands are for special use ( m 2 ). The community often used as grazing land or pasture by community members. 38. Agricultural land lost to this project is other land measuring 26,991.8m 2 ; the next is pasture measuring 23, m 2. Non- land losses are as follows: other non land measuring 44,792.46m 2 and the next is land measuring 40,410.02m 2. See Table B1.2 for an overview of the land impacts by land type and land occupation status. The mostly affected communities are presented in the table B1.1. The detailed overview of the land impacts by land type and land occupation status per communities is presented in Appendix 1. Table B1.1: Mostly affected communities Community Private land (m 2 ) Community land (m 2 ) 13, , , , Haghpat 2, , issues 39. The land type and ownership status of 34 land plots wasn t identified due to the lack of information within communities on them, so they are not presented in the Table B1.2. At the same time, there are a discrepancies between the cadastral map almost in all communities, mostly in Aygehat and Neghoc communities. The analyses of the design imposed on the 6 Included also the number of unidentified land plots. 21

22 cadastral map shows that the road axis does not match in the cadastral map and the reality, which may affect the picture of affected land plots, namely the lands which are seen as affected by the cadastral map, may not be affected in reality. This issue can be verified and corrected during the LARP finalization, when the actual DMS will be done, as well as the cadastral data will be available. 22

23 Table B1.2: Land Impacts by Type and Land Occupation Status Private Community State Land category No Sq. m Affected Sq. m No Sq. m Affected Sq. m No Sq. m Affected Sq. m No Sq. m Affected Sq. m Agricultural: , , , , , , , ,90 Arable , , , ,50 0 0,00 0, , ,00 Orchard ,90 740,90 0 0,00 0,00 0 0,00 0, ,90 740,90 Pasture , , , ,80 0 0,00 0, , ,20 Other ,00 167, , , , , , ,80 Non - : , , , , , , , ,08 Residential , , ,80 84, ,00 240, , ,02 Commercial , , , , , , , ,70 General use 0 0,00 0, ,30 831,60 0 0,00 0, ,30 831,60 Other ,50 531, , ,74 0 0,00 0, , ,46 Industrial , , ,00 903, ,00 863, , ,80 Agricultural ,00 277, , ,50 0 0,00 0, , ,50 Special use: , , ,00 788, , , , ,40 Forest 0 0,00 0,00 0 0,00 0, , , , ,00 Water 0 0,00 0,00 0 0,00 0, ,20 551, ,20 551,00 Transport 0 0,00 0, ,00 16, , , , ,40 Energy , , ,00 27, ,00 11, , ,00 Cemetery 0 0,00 0, ,00 745,00 0 0,00 0, ,00 745,00 GRAND TOTAL , , , , , , , ,38

24 40. From the total affected 238 AHs, the 48 AHs losing 8.95 of their productive asset. The total land losses and losses of AHs are presented in tables B2.1 and B2.2. Table B2.1: Agricultural Losses and Affected Households Private Agricultural Land Average Agricultural loss Average Percent of Plot Affected AH* per AH Loss Land type N sq.m sq.m N sq.m % Agricultural: , , ,95 Arable , , ,05 Orchard ,90 740, ,45 Pasture , , ,33 Other ,00 167, ,56 4,97 *The number of AHs was considered equal to the number of private affected lands. Table B2.2: Level of Land Losses of AHs Percent of No of AHs Loss % Agricultural Non- Special use Up to and more IMPACT ON BUILDINGS AND STRUCTURES Building and Structures on the Affected Land 41. The project in total will affect 54 structures with 4, m2 affected area. From the total affected structures 43 are private owned, 8 structures are located on the community lands and 3 on the state lands. The majority of affected structures are (44) with 3, m 2 affected area. 10 structures are non- with m 2 affected area, from which: five structures ( m 2 ) and five shops ( m 2 ). See details in Table B It is important to mention that the big number of affected structures may be due to the cadastral discrepancies as was discussed earlier. Therefore, the number of actual affected structures can be less; this should be verified during the LARP finalization through DMS and census. The details on affected structures per communities are presented in Appendix 1. Type of structure No Table B3: Impact on Buildings and Structures 7 Private Community* State* Affected Affected Affected Affected Sq. m No Sq. m No Sq. m No Sq. m 1. Residential , ,80 0 0, ,58 Subtotal (1) , ,80 0 0, ,58 Remarks 7 The number of affected structures presented in Table B3 were summarized as 1 unit per lot- of land, namely: if 2 separate structures are identified on the same land plot, is was considered as one unit (number), therefore the actual units of structures are more than presented in the table.

25 2. Non- Shop 1 27,70 1 6, , ,80 Industrial 3 451, ,30 0 0, ,10 Subtotal (2) 4 479, , , ,90-1 object was identified by the designer (21.6m 2 ) in Shnogh on community land. -1 object was identified by the designer (56m 2 ) in Shnogh on private land. TOTAL , , , ,48 * The structures identified on community and state lands may be considered as illegal, however, the structures on community may be also constructed on the leased lands in legal basis Relocation Requirements and Approach 43. Based on the number of affected structures, it can be assumed that in total 54 AHs and businesses will be relocated, particularly: 1) Relocated AHs: Based on the number of affected structures, it can be assumed that 44 AHs will need to be relocated and receive compensation for their affected assets, as well as relocation allowances to cover transportation costs and allowances for severely affected AHs. Taking into account that the presented data is based on the cadastral category of structures, the structures can be not inhabited, therefore this should be verified during the LARP finalization through DMS and census. 2) Relocated Businesses: Based on the number of affected non- structures, it can be assumed that 10 businesses/ objects will need to be relocated and receive compensation for their affected assets, as well as relocation allowances to cover transportation costs and allowances for severely affected AHs. Taking into account that the presented data is based on the cadastral category of structures, the non- structures cannot be actual businesses, therefore this should be verified during the LARP finalization through DMS and census. The type of impact on businesses: temporarily or permanent also will be verified in LARP finalization stage. 44. Based on the relocation policy under this Project, a relocation plan will be prepared in case if the APs will not confirm the self-relocation, which will be determined during the LARP finalization stage through the consultations. Since these relocates are also severely affected AH, a livelihood allowance equal to 6 months minimum salary will be provided as well. The details will be found in the entitlement matrix. The details on AHs/Businesses Relocating from Place of Activity/ Residence are as follows: The affected AHs will be self-relocated (if confirmed by APs) The affected AHs will be compensated for all affected assets at replacement cost based on asset affected The assistance will be provided to the affected AHs such as the one rehabilitation allowance equal to 6 months at minimum salary (as severely affected AH) 41. The details of impact on and relocation of structures set out above for purposes of identifying impact and compensation or relocation costs in this draft LARP are provisional, and will require verification during the preparation of the final LARP. Both the numbers of structures and plot sizes and extent of losses and the estimations of cost are provisional. 25

26 3.3 IMPACTS ON CROPS, TREES AND OTHER IMPROVMENTS Crops and trees 45. As the impact assessment for this draft LARP was done based on the cadastral information and without detailed field surveys, the affected crops and trees haven been identified at this stage. The limited field visits show that there are no big impacts on crops and trees; however, the affected crops/trees will be identified during the finalization of LARP via detailed measurement survey and assets inventory. For the affected crops and trees the average estimation was made based on the similar projects data Improvements and movable structures 42. There is one movable structure (kiosk) on affected lands which should be moved from the affected area. The transportation costs will be compensated to the APs. The details on affected movable structure are presented in Table B5. Table B5: Impact on Movable Structures* Type of affected structures Construction type Structures No Trips Kiosk Metal *1 kiosk was identified by the designer in Neghoc on private land. 43. There were identified improvements on the affected 2, m 2 as fences, as well as 9 gates which also should be compensated by rehabilitation cost. The details on affected improvements are presented in Tables B6. Type Table B6: Impact on Improvements* Material Land plots No No Affected part, m/n Fence Metal ,00 Fence Stone 1 20,00 Sub ,00 Gate Metal Metal 9 (N) Sub- 9 9 (N) *Fences and gates were identified by the designer. 44. The details on affected movable structures and improvements per communities are presented in Appendix IMPACTS ON BUSINESSES AND EMPLOYMENT 26

27 45. Based on the number of identified affected non- structures, it can be assumed that 10 businesses / objects will be affected by the Project. However, taking into account that the presented data is based on the cadastral category of structures, the non structures cannot be actual businesses, therefore the actual number of affected businesses, as well as the type of impact on businesses (temporarily or permanent) will be verified in LARP finalization stage through DMS and census. 46. The number and details on affected employees, as well as the extent of temporary impact due to construction works will be determined during the finalization of the LARP. 3.5 AH CENSUS AH/AP Census 47. The estimate number of AHs is 238 based on the number of identified 238 private owned lands. 48. No data was available on the leaseholders and users on community owned lands, however, based on the identified number of structures on community (8) and state (3) lands, it can be assumed that 11 AHs are leaseholders or users. Also, there are 54 AHs identified as relocated AHs/businesses. Thus, it can be assumed that the total number of AHs is 303 (this number may be double counted). 49. Based on the average number of HHs and population of affected communities average household size is 2.6 persons (see the next chapter), therefore applying this average to the number of 303 AHs, can be assumed that the number of affected persons (individuals) is almost 788 (249*2.6=787.8). 50. The number of affected AHs (owners, leaseholders, users) and number of APs (individuals) will be identified and verified via census survey during the LARP finalization stage Severely Affected Households 48. In all 54 AHs are severely affected due to their relocation: 44 AHs and 10 businesses/ objects requiring respectively physical and economic relocation. It should be noted, that the number of severely affected AHs may be double counted (the same AH can loss the house and business at the same time), as no census was implemented. There are no AHs losing more than 10% of their land as presented in table B Taking into account the existing discrepancies between the cadastral maps and reality the mentioned number of severely affected AHs will be verified during the LARP finalization stage, when the DMS and census will be carried out for each land plot Vulnerable Affected Households 50. In total 25 AHs were considered as vulnerable and poor households registered in the Family Benefit System (FBS). 8 The number of affected vulnerable AHs (Poor (registered in FBS) was calculated based on the average percent of vulnerable HHs through the data provided by community representatives. The mechanism of calculation is provided in the table B7. 8 The main state social allowance program in Armenia operating since The source of information on HHs registered in FBS-consultations with community representatives: heads or respective 27

28 specialists. 28

29 51. The actual number of affected vulnerable AHs (Poor (registered in FBS), female/ elderly and disabled persons Headed) will be identified and verified during the LARP finalization stage when the census survey will be initiated for each AH and information will be received from respective government bodies. Community Table B7: Mechanism of calculation of vulnerable AHs No of total HHs No of vulnerable HHs Percent of vulnerability (registered % in FBS) Average percent for all communities% No of total AHs No of vulnerable AHs Karkop ,5 Shnogh ,2 Akhtala ,5 Neghoc ,6 Haghpat , ,8 Aqori , ,7 Aygehat , Gender of APs 52. The gender data on affected AHs/APs will be presented in final LARP based on census results. 3.6 IMPACTS AND AH/AP CENSUS SUMMARY 53. Table B8 below summarizes the data on LAR impacts and AHs/APs. Impact Category A. Land Table B8: Impacts and AH/AP census Summary Plots/ Units AHs Area, m2 Comment/ description of unit A1. Private Land , A2. Community Land , The AHs of leaseholders and users was calculated based on A3. State Land , the number of structures on community and state lands. A4. Unidentified 34 - Subtotal (A) ,

30 Impact Category B. Structures Plots/ Units AHs Area, m2 Comment/ description of unit B1. Residential , The number of AHs can be with B2. Non-Residential double counting. The number of affected structures Sub- (B) , also is considered equal to the number of relocated AHs and businesses. C. Annual Crops Wasn t identified. D. Trees Wasn t identified. E. Business Based on the number of affected non-/ structures. F. Jobs losses Wasn t identified. G. Leaseholders/ Informal Tenants G1. Leases/users on community land Included in A2, A3 and B. G3. Leases/users on state land Sub- (G) I. Vulnerable/Severely Affected Households I1. Vulnerable AH (poor) I2. Severely Affected AH J. AH (788 APs) - Is included in B: the number of relocated AHs due to loss of house and/or business. Based on number of private owners (A1-238), possible user/renters on community and state lands (A2-8; A3-3) and affected structures (B, 54). The number of AHs can be with double counting. 30

31 C.SOCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS I. INTRODUCTION 54. The main objective of the Socio-Economic Survey (SES) is to provide a description of the key socio-economic features of the affected population and communities, such as education levels, modes of livelihood, sources of income, poverty/income levels as well as house type. This will increase the understanding of potential impacts of land loss on affected households and identify options for rehabilitation. 55. In this draft LARP, the socio-economic profile is presented not for the affected people, but for the total population/hhs of affected communities, as no SES was implemented per AHs. Therefore, the presented data is based on the official statistical data on the general socioeconomic description of the population in marz level and affected communities (when available). II. SUMMARY DESCRIPTION OF AFFECTED POPULATION IN AFFECTED COMMUNTIES 2.1 POPULATION AND FAMILY SIZE IN AFFECTED COMMUNITIES 56. There are 3991,1 persons in 1524,4 households in average in 9 affected communities. The data on actual number of HHs and population per communities was obtained from community representatives, which is usually not in compliance with the statistical data. Thus, the average household size is 2.6 persons GENDER and AGE of HHs IN AFFECTED COMMUNITIES 57. Table C1 below presents the total number of households and population of affected communities by age cohort and gender. The distribution is more or less equal between genders in the affected communities, and is a normal gender distribution for a relatively stable rural population. Based on the average gender distribution of affected communities obtained from statistical data, it can be assumed that from the 3991,1 persons almost 1860 are male (46,6%) and 2127 are female (53,3%). Only in few cases data was available on age cohort per communities, so no analysis can be done in this regard. Table C1: Number of HHs by Gender and Age 10 Community Gender % Age Cohort % No Male Female before reaching reached working postworking HHs Population 9 This average data was applied to the number of AHs for extrapolation of number of APs. 10 The data on gender and age cohort per communities was obtained from the following two sources based on the availability: and 31

32 working age age age Qarkop _ Shnogh Akhtala Neghots Haghpat Aqori Aygehat Average 46,6 53,3 1524,4 3991,1 58. Table C2 below presents the total number of population and their proportion per urban and rural communities in Lori marz by ethnicity. No statistical data was available on the ethnicity distribution of population per communities, so the data is presented in marz level with division on urban and rural community. Thus, the 98.8% of urban population in Lori marz are Armenians, and in rural communities this percent is 97.1%. Table C2: Number of population by Ethnicity on Marz level 11 Lori Marz Urban Community Rural Community Ethnicity Population Percent Population Percent Population Percent Armenian ,00 98, ,00 98, ,00 97,1 Yezdi 652,00 0,3 517,00 0,4 135,00 0,1 Russian 3.152,00 1,3 654,00 0, ,00 2,6 Greek 360,00 0,2 264,00 0,2 96,00 0,1 Other 295,00 0,1 211,00 0,2 84,00 0,1 Refused to answer 12,00 0,01 9,00 0,01 3,00 0, , , , The data on gender and age cohort per communities was obtained from the following source: 32

33 2.3 EMPLOYMENT STATUS 59. Table C3 below presents the total number of population and their gender proportion by employment status in Lori marz level. No statistical data was available on employment status of population per communities, so the data is presented in marz level with division by gender. 60. Thus, the table below shows that 52 % of both men and women are employed. 40% of men and 60% of women are pensioners; it can be assumed that widowhood as a principal factor among solitary female household heads, but also suggesting a tendency for men to continue active farming or other work, while women cease work at an earlier age. Meanwhile the 50.1% of men and 49.9% of women are unemployed or not working. Table C3: Number of population by employment status and gender on Marz level 12 Employment Status Male Female No % No % No Percent Employed Pensioner Housewife Unemployed , , The data on gender and age cohort per communities was obtained from the following source: 32

34 2.4 EDUCATION LEVEL Table C4 below presents the total number of population and their proportion per urban and rural communities in Lori marz by education level. No statistical data was available on education level of population per communities, so the data is presented in marz level with division on urban and rural community. Thus, the 51% (female) and 49% (male) of urban population in Lori marz has secondary education; 44% (male) and 56%(female) has higher education, and in rural communities this percent is 52% (female) and 48% (male) both for secondary and higher education. Table C4: Number of population by Education on Marz level 13 Educational Level Lori Marz Urban Community Rural Community Male Female Male Female Male Female No % No % No No % No % No No % No % Elementary 5.424, , , , , , , Incomplete secondary 6.561, , , , , , , Secondary 3.261, , , , , , , Secondary vocational Higher (bachelors' or master's degree) 1.234, , ,00 828, , , , , , , , , , , Postgraduate 128, , ,00 98, , , , Not applicable , , , , , , , , , , , , , , , ,00 13 The data on gender and age cohort per communities was obtained from the following source:

35 2.5 ACCESS TO SERVICES AND FACILITIES Table C5 below presents the picture on the availability and functioning of public utilities in the affected communities. Electricity and telephone communication, especially cell phones are available to everybody. More than 40% of communities have aid stations; meanwhile 30% of them have hospital and/or policlinic. Only in one community there is no school; meanwhile in half of communities there is no kindergarten. All communities have post offices. Banks are available only in two urban communities. 35% of communities have culture centers, and 85% of them have libraries. Table C5: Availability of Services and Facilities per communities 14 Community/ Utility Healthcare Education Communication Banking, financial services Qarkop aid station school, kindergarten post office - culture center, library Shnogh - school, kindergarten post office - culture center, library, museum Akhtala polyclinic, hospital schools, kindergartens, art school post office - culture center, library, factory Neghots - school post office - - Haghpat polyclinic school, kindergarten post office - culture center, library, hotel polyclinic, hospital school, kindergarten, music school post office bank culture center, library Aqori hospital school, kindergarten post office - library Other aid station school, kindergarten post office - library Aygehat aid station school post office - library Tumanyan hospital school, kindergarten post office - library Tsater - school post office - culture center, library, cinema Dzoragyugh aid station school post office - culture center, library Dzoraget aid station school post office - culture center, library Dsegh - school post office - culture center, library Yeghegnut aid station school post office - - Vahagni aid station school post office - culture center, library 14 The data on gender and age cohort per communities was obtained from the following source:

36 Vahagnadzor non-operating aid station - post office - - Pambak aid station school post office - culture center, library Gugarq - Vanadzor 2.6 LAND RESOURCES polyclinic, hospital school, kindergarten, music school, sport center school, university, music school, sport center post office - culture center, library post office bank culture center, library, hotel One of the important socio-economic indicators of communities is the land resources. Table C6 below presents the land resources of Lori marz per land type and ownership status. No. Target purpose Table C6: Land resources per type and ownership status in Marz level 15 Land type Operational purpose Private- owned Land plots Area (ha) % Communityowned land plots Area (ha) % Stateowned land plots Area (ha) % Legal Entity Area (ha) % Area (ha) % 1 2 Agricultural arable 6.407,80 95,3 756,10 93, ,30 89, ,20 95,1 orchard 143,80 2,1 37,40 4, ,60 5,3 185,80 2,4 vineyard 60,50 0,9 11,80 1, ,50 5,2 76,80 1,0 grass 108,40 1,6-0, ,40 1,4 Sub-total , , , , , Residential for construction 1.998, , , Sub-total , , , , , , ,00 0,00 88, , The data on gender and age cohort per communities was obtained from the following source: 35

37 III. IMPACTS ON WOMEN 71. Women have important economic roles in project areas and engage in a very wide range of income-generating activities in the and marketing sector. Women have a significantly higher level of ownership and use of land than men, and are more heavily dependent on agriculture as a source of income. 72. The project pays particular attention to ensure that women are the recipients of the compensation pertaining to their activities and to ensure that women, who are de-facto household heads, are clearly listed as beneficiaries of compensation and rehabilitation proceedings under the loan. Special attention will be given to the impact of resettlement on women and other vulnerable groups during monitoring and evaluation of the LARP. 73. The project will have a positive impact on gender, because the civil works contracts will include provisions to encourage employment of women during implementation (these may include clerical jobs, office assistance and back office support etc.). Additionally, women headed households not having adult male labor have been considered as vulnerable and focused assistance will be provided in the entitlement of the LARP.

38 D. LEGAL AND POLICY BACKGROUND I. ARMENIA S LEGAL FRAMEWORK ON LAND ACQUISITION AND RESETTLEMENT 18. Article 8 of RA Constitution (hereby: Constitution) prescribes that the right to property shall be recognized and protected in the Republic of Armenia. Everyone shall have the right to freely own, use, dispose of and bequeath the property at his/her discretion. Article 31 of the RA Constitution prescribes that the private property may be expropriated for the needs of society and the State may be carried out only in exclusive cases of prevailing public interest, as prescribed by law, with prior equivalent compensation. The land acquisition, compensation and a number of procedures with regards are regulated by RA other legal norms: 1) Civil Code of the Republic of Armenia 2) Law of RA on the Alienation of the Property for Public and State Purposes 3) Law of RA on Land Code of the Republic of Armenia 4) Law of RA on the Assessment of Real Estate Property 5) Law of RA on the state registration of rights towards the property 6) RA Civil Procedure Code 7) RA Administrative Procedure Code 19. Articles 102 and 104 of RA Land Code and Article 218 of RA Civil Code prescribe property acquisition for public and State interests, in exceptional cases of paramount public interest based on law and with prior equivalent compensation. There was adopted RA Law on Alienation of Property for Public and State Purposes (hereinafter the Law ) following the requirements of RA Constitution and the above mentioned legal norms, which is considered to be the major law regulating land aquisition and compensation procedures. The Law prescribes the legal grounds, requirements on property acquisition for public and state interests, regulations for copmensation for land aquisition, and determination of the exclusive cases of prevailing public interest and its consideration with regards. 20. The first paragraph of Article 3 of the Law prescribes that the Constitutional basis for aquisition of property for public and state purposes is the exclusive prevailing public interest, and the application of its Constitutional requirements are as follows: a) land acquisition as prescribed by law and b) prior equivalent compensation for the acquired land. 21. Paragraph 1 of Article 4 of the above mentioned Law constitutes the principles of determination of exclusive cases of prevailing public interest for the acquisition of property for the public and state purposes, and Paragraph 2 of the same Article constitutes the possible purposes followed by exclusive prevailing public interest. The Law define the fundamental principle according to which a) public benefit must outweigh the expropriated property owner's loss, b) an efficient application of the public interest would not be ensured unless that property is acquired, c) the aquisition of the property must not unjustifiably harm the property owner, d) the public interest must be declared as prevailing by a Government decree, e) there may be filed a lawsuit on the exclusive public interest matters. 22. The Law also regulates requirements on acquisition of property, compensation and rules on decison making with regards to property alienation. In particular, Article 5 of the Law defines that in case of alienation of the land relevant real estate (buildings, building structuress and other attached property, etc.) located on the land as well as all existing improvements on the land are also subject to alienation. In case of acquisition of the building or construction, the relevant servicing lands shall be subject to alienation as well. 23. RA Law on Alienation of Property for Public and State Purposes sets regulations for physical and legal entities, and community owned properties (hereafter owners ) and all other properties (movable and immovable property, property rights, securities, etc.) located or registered in the Republic of Armenia according to RA legislation or recorded (hereafter

39 property to be aquired) and regulations for property aquisition and compensation major procedures. In particular: I. Upon enactment of the government decree on recognition of property as exclusive prevailing public interest, the relevant authority shall prepare a description protocol prescribing the acquired property according to the procedure and deadlines stated by the government; aquiring party, property owners and those possessing property rights on the aquired property may participate in preparing of the description protocols if the latter was not prepared during the preliminary survey of the property. Within no later than three days after its preparation, one copy of the description protocol describing the acquired property shall be, duly submitted to the property owner and persons possessing property rights on such property, who are authorised to lodge claims with relevant authorities and/or court within ten days after the due receipt thereof. II. An equivalent compensation is paid to the property owner for the aquired property. An equivalent compensation is considered to be 15% (fifteen presents) more than the market price of the property. The market value evaluation of the property or the property rights of the real estate is carried out according to RA Law on Evaluation Procedure of Real Estate. III. The property shall be acquired upon the agreement between the acquirer and the owner of the property to be aquired. In this case, the provisions on the compensation price, form, procedure, deadlines, terms and obligations defined only by mutual agreement of the parties. IV. If the aquisition contract is not signed within three months after its submission, the acquirer, is required to transfer the property aquired price to court s or notarial deposit account within a month by submitting a duly notice to the property owner and to the persons knowing to have ownership rights for the property. The compensation price shall be calculated no later than a week before transferring it to the deposit account. V. If the aquisition contract is not signed within 7 days after the property compensation price is transfered to the deposit account then the acquirer is required to lodge an application with the court for claiming property aquisition within a month period. In this case there could only be considered the amount of the compensation at the court. 58. The law prescribes the rights and guarantees of the property owner to be aquired in public and state interests, stating that the property owner prior to its aquisition or state registration of the rights resulted from its aquisition, has the right to own, use, dispose and make only such improvements, which ensure the property use according to its purpose. 59. The Law prescribes certain limitations for the property to be acquired, which is the acquiring property description protocol preparation day in accordance with the procedure stipulated by the government. No compensation is provided for additional improvement (taking into account the guarantees stated by the Law) as well as any encumbrance or rights on the property to be aquired given or obtained by third parties if they were applied after the above mentioned day. II. ASIAN DEVELOPMENT BANK S PROVISIONS ON INVOLUNTARY RESETTLEMENT UNDER THE SAFEGUARD POLICY STATEMENT 60. The ADB Involuntary Resettlement safeguards under the SPS are based on the following principles: i. Involuntary resettlement is to be avoided or at least minimized. 38

40 ii. Compensation/Rehabilitation provisions will ensure that APs' standard of living is enhanced or at least restored. iii. APs should be fully informed and consulted on LAR compensation options. iv. APs socio-cultural institutions (such as libraries, community centers, cultural centers) should be supported/used as much as possible. They shall be involved at a maximum level. v. Compensation will be carried out with equal consideration of women and men. vi. Lack of legal title should not hinder compensation and/or rehabilitation. vii. The standards of living of the displaced poor and other vulnerable groups, including women, should be improved to at least national minimum standards. viii. LAR should be conceived and executed as a part of the project, and the full costs of compensation should be included in project s budget and calculations of costs and benefits. ix. Compensation and resettlement subsidies will be fully provided prior to clearance of right of way/ground leveling and construction. III. COMPARISON OF ARMENIAN LEGISLATION AND REQUIREMENTS OF ASIAN DEVELOPMENT BANK SAFEGUARD POLICY STATEMENT 61. Differences between Armenian laws/regulations and requirments of ADB policy are outlined in Table D1 below. Table D1: Comparison of Resettlement Legal acts of RA on LAR and ADB SPS RA Legal Acts ADB SPS 1. Lack of title should not prevent compensation 1. The law applies to natural and legal entities as well asand/or resettlement. Non-titled landowners shall the community (hereafter owners ) owned properties and all receive compensation for developments made other properties (movable and immovable property, property on land. rights, securities, etc.) (hereinafter: property to be acquired ) Displaced persons in a project area could be of located, registered or recorded in the Republic of Armenia three types: (i) persons with formal legal according to RA legislation and regulations. rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and (iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land. The involuntary resettlement requirements apply to all three types of displaced persons. 2. Compensation is provided only for state registered 2. In accordance with the ADB Policy property: building, structures. No compensation is provided compensation is provided for non-registered for illegal structures. commercial structures at replacement cost. 3. No separate crop losses compensation is provided. 3. Crop losses compensation is provided to all 4. Property owners are entitled for an equivalent compensation for the acquired property plus 15% of its APs at replacement cost 4. The rate of property compensation is based on the replacement cost. 39

41 RA Legal Acts ADB SPS market value. The market value is the most probable market price of property, which could be determined by an independent qualified property evaluator. If there is no open or competitive market for the expropriated property, the market value for the property is determined by a method, which would be assessed fair by court. 5. A meaningful consultation at the beginning of 5. The government decree on recognition of property as and during the implementation of the project. exclusive prevailing public interest, a copy of the description Disclosure information on impact protocol of the property to be acquired, draft contract of the assessment/evaluation, compensation rights and property to be acquired is sent to the property owner and financial aid to AP/AHs. persons possessing property rights. The property acquirer shall provide information on transferring the compensation into the court or notary deposit account. If the acquirer is conducting a preliminary survey on the property to be acquired, adequate information shall be provided to the property owner, the possessor and user on the nature and matter, legal consequenses of those proceedings prior to its initiation. 6. There are not considered rehabilitation measures for 6. The ADB policy requires rehabilitation for income and livelihood, compensation or resettlement costs income/livelihood, resettlement support during for severely impacted people and vulnerable groups. the relocation as well as living improvements for the relocated poor population and other vulnerable groups including women. 7. Submission of applications, complaints, objections and 7. Establish mechanism for recording and suggestions to the acquirer and to the relevant authorities resolving complaints for considering the affected as well as filing a complaint to the court, during every stage persons concerns and facilitating their remedy of the aquisition process. According to the Article 18 of RA procedure. Civil Code, every person has a right to an effective remedy before courts and before state authorites. 8. Those who have property rights on the acquiring property are compensated from the acquired property compensation amount. 8. The compensation for acquired housing, land and other assets is calculated at full replacement costs. In applying this method of valuation, depreciation of structures and assets is not taken into account. 9. After the preparation day of the acquiring property 9. APs whose status is eligible for legalization or description protocol no compensation is provided for whose rights may be reinstated shall obtain legal additional improvement (except such improvements, which status, and their losses will be fully ensure the property use according to its purpose) as well as compensated. any encumbrance or rights on the property to be aquired given or obtained by third parties if they were applied after the above mentioned day. 10. The public utilities and other buildings and facilities in 10. All measures conducted to mitigate Project s the right of way and/or safety zone of the state-owned negative impact on APs /AHs property and publicly used roads shall be relocated and reconstructed by livelihood including support, relocation and the means of their owner in case of repair and restoration of damaged demolished reconstruction of the road. infrastructures, buildings, structures are considered as resettlement. 62. These are the principal differences between the Armenian legal norms and the ADB 40

42 policy regarding LAR. There are no clear provisions on AP rehabilitation procedure in the RA regulations. Another issue is that ADB recognizes eligible for compensation or at least rehabilitation of both titled and non-titled property owners or registered and unregistered tenants. To redress these differences between the Armenian legislation and ADB policies, the Land acquisition and resettlement framework (LARF) 16 has been prepared for the North-South Road Corridor Investment Program, ensuring compensation at full replacement cost of all items liable to affect and at least ensures rehabilitation of informal/non-titled settlers, unregistered implementers of entrepreneurial activity owners and potential affected people. The LARF is applied for this Project taking into account that it summarizes the whole legal framework and requirements of both RA legislation and ADB SPS (2009) for the similar road program. The LARF also provides for rehabilitation special packages for those APs who will be relocated, as they are considered vulnerable or severely affected APs. Property can be aquired in state and public interests within the scope of recognition of exclusive prevailing public interest. Attempts would first be made to acquire the land of natural persons (private persons) through the negotiation with individuals affected persons. However, if negotiations fail, the aquisition process should start prescribed by law. IV. LAND ACQUISITION AND RESETTLEMENT FRAMEWORK PRINCIPLES AND ENTITLEMENTS ADOPTED FOR THE PROJECT 63. Based on Armenian laws and ADB s SPS, 2009, core involuntary resettlement principles are developed for this Project which are as follows: i. Land acquisition, and other involuntary resettlement impacts will be avoided or minimized by exploring all viable alternative project designs; ii. Where unavoidable, a time-bound LARP will be prepared and APs will be assisted in improving or at least regaining their pre-program standard of living; iii. Consultation with APs on compensation, disclosure of resettlement information to APs, and participation of APs in planning/implementing sub-projects, such as providing their views on design alternatives and participating in monitoring activities, will be ensured; iv. Vulnerable and severely affected APs will be provided special assistance; v. Non-titled APs (e.g., informal dwellers or squatters, APs without registration details) will receive a livelihood allowance in lieu of land compensation and will be fully compensated for the other losses other than land as defined by the Entitlement matrix of LARF; vi. Legalizable APs will be legalized and fully compensated for land losses; vii. Provisions will be made for income restoration and rehabilitation; viii. The LARP will be disclosed to the APs in Armenian; ix. Payment of compensation, resettlement assistance and rehabilitation measures will be fully provided to the APs prior to initiation of Physical Civil Works and actual taking of the land. x. Appropriate redress mechanisms to solve APs grievances will be established. 16 The LARF was approved by the N o 1274-N RA Government Decree on North South Road Corridor Investment Program Land Acquisition and Resettlement Framework and its resettlement principles dated

43 F. COMPENSATION ELIGIBILITY AND ENTITLEMENT I. GENERAL 64. The LAR tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with both the relevant legislation of The Republic of Armenia and ADB s Safeguard Policy Statement (SPS 2009). The entitlement matrix is guided by the LARF prepared by MOTC for the North-South Road Corridor Investment Program. The Entitlement Matrix (EM) from the LARF is presented in Table E1. Type of Loss Application 1. Land Loss APs losing their owned property or a part of it regardless the impact amount 2. Loss of buildings, structures 3. Loss of non buildings structures Buildings, structures with state registration owned by APs Table E1: Entitlement Matrix Eligibility Owner Legalisable AP s Compensation Entitlements Cash compensation at replacement cost, which is equivalent the assessed price of market value and cadastral rates (whichever is the highest) plus 15% or through an equivalent replacement land acceptable to the AP. In cases defined by legislation, the AP s may acquire ownership rights or apply the state registration of the present rights and to be compensated as owners. Leaseholders (lease In cases defined by legislation the leaseholders may of community or state acquire ownership right and to be compensated as the property) owner or he/she may be given an opportunity to hold a new lease in accordance with the agreement of the land owner (lessor). In case it isn t possible, AP will receive compensation equal to the market or cadastral cost of affected land (whichever the highest) +15% in the following proportions according to the length of the lease: i) < 1 year 5%, 2) <15 years 14% ; 3) <25 years 20%; 4) >25 The leaseholder (leasing of natural persons and legal entities property) Persons possessing other property rights (servitude, construction, loan, mortgage, use) Non legalisable APs All the APs regardless the rights possessing for the structure (including legalisable and non-legalisable APs ) Relocated Leaseholders Owners years 25%. Cash compensation for already paid but not unused lease. Compensation is provided to persons possessing property rights from the affected property compensation amount in accordance to the RA legislation. These APs will receive compensations only for the improvements made on the land according to the LARF. Cash compensation cost + 15% for loss of building at full replacement cost free of depreciation/transaction costs and salvaged materials. Partial impacts will entail the compensation of the affected portion of the building plus repairs, in case if the further usage and maintenance of the non-affected portion of the building is technically possible. Cash refund of the unused rent already paid. Cash compensation + 15% for loss of building at full replacement cost free of depreciation and salvaged materials and decrement of transaction costs. Partial impacts will entail the compensation of the affected portion of the building plus repairs in case of the maintenance, if the use and the alienation of the non 42

44 Type of Loss 4. Public Property Loss Application Illegal structures, (except and actually inhabited) Community or State property 5. Crop Loss Standing crops affected 6. Tree and Harvest Loss 7. Business (entrepreneurs hip) interruption Trees affected and expected harvest Businesses (entrepreneurship) in the affected land Eligibility APs who structered the illegal structure Relocated Leaseholders Community/State Compensation Entitlements affected portion of the buildings is legally possible. The compensation is provided with the same procedure as to the owners of builidings, structures only when the structure is legalized and rights registered. Cash compensation for the unused lease already paid. Compensation of the community owned land, property or reconstruction of affected community and state-owned structures or other property and restoration of their functions in agreeement with community, state authority. Crop compensation in cash at market value by default at gross crop value of expected harvest. All AHs who made improvements regardless their ownership and other property rights All AHs who madecash compensation at market value based on type, age improvements and productive value of the trees. regardless of their land ownership and property rights All APs regardless the tax declaration 1) Businesses with a tax declaration a) In case of permanent impact: cash compensation of 1 year net income. b) in case of temporary impact: cash indemnity of net income for months of business suspension up to 1 year. State registration and license fees will also be compensated, if any. 2) Businesses without a tax declaration 8. Job Loss 9. Allowances for Severe Impacts 10. Relocation allowance Permanent job loss or forced downtime not by the employee's fault AH to be relocated or losing 10% and more of land Allowance for the transportation and livelihood expenses Employees who have worked for affected business (company or Individual Entrepreneurship) by employment contract All severely affected APs/AHs including informal settlers a) In case of permanent impact: rehabilitation allowance based on the minimum monthly salary for 1 year; b) In case of temporary impact: rehabilitation allowance based on the minimum monthly salary for the number of months of business stoppage up to a maximum of 1 year. Cash compensation: a) Permanent job loss: the employee will receive cash indemnity for 6 months average salary; b) Temporary loss: the employee will receive cash indemnity for all months of business stoppage based on the average salary up to 6 months. a) Additional crop compensation covering 1 year yield (from affected land part) for APs affected by loss of 10% and more of land. b) A rehabilitation allowance of 6 months at minimum salary to relocated AHs. All relocated AHs Cash allowance to cover transportation and livelihood including leaseholders expenses for 1 month. All APs having movables on the affected land and building to be relocated regardless of existing formal rights to property Cash allowance to cover transportation expenses. 43

45 Type of Loss 11 Vulnerable People / AHs Allowances 12. Temporary impacts 13. Unforeseen LAR impacts, if any 14. Compensations for improvements Application Other improvements, which are not included in this Entitlement Matrix but exist on the affected land (except of the moveable property) Eligibility AHs headed by women, or elderly, or disabled persons and AHs living below the poverty line All APs/AHs who are temporarily affeted Eligible APs/ AHs APs who made Improvements Compensation Entitlements Cash allowance equivalent to 6 months of minimum salary and priority in project-related employment. Damages will be compensated in the case of temporary impact with replacement cost in accordance with the relevant entitlements defined the LARF. MOTC will consider the unforeseen resettlement impacts during project and will compensate and will provide rehabilitation allowance based on the provisions of LARF. Cash compensation by replacement cost. II. ELIGIBILITY 65. APs entitled to compensation and/or rehabilitation under the Project are: i. Land owners, APs having property rights including the leaseholders, all APs deprived of the right to use the land or deprived of the opportunity to use it or those who de facto possess and use the land regardless of the rights registered on the land. ii. APs owning buildings/structures, possessing property right including lessees, the constructors, de facto possessors and users of buildings/structures, constructors of illegal buildings/structures. iii. The owners, APs having property rights of trees, yield, cultured plants or other property and improvements including, leaseholders and de facto possessors and users. iv. All APs losing business (entrepreneurship), income and salary. 66. No compensation is given for additional improvements made after the date of drawing up of the acquision property description protocols, which is the cut-off date, except the cases provided the by the Law and LARF. 67. Any encumbrance or rights toward the property to be acquired, given or obtained by third parties, compensation shall be given only in cases provided by the entitlement matrix, subject to the formalization and rights registration (legalization) of legalizable APs. In all other cases the mentioned rights are terminated without right to compensation. 68. Besides the compensation for the acquired property, the eligibility for compensation and additional allowance for other impacts provided by LARF is also limited by the deadline which is the date when description protocol is drawn up within the scope of every subproject and where the data of implemented census and detailed measurement survey are also recorded (hereafter: Cut-off date). APs who inhabited affected areas or make any improvements there, after the Cut-off date will not be eligible for compensation and additional allowances. However they shall be given prior notice with request to vacate 44

46 premises and demolish affected buildings/structures prior to project implementation. The materials of demolished buildings will not be confiscated and they will not pay any fine and no sanctions will be applied towards them. III. COMPENSATION ENTITLEMENTS 69. Entitlements for APs losing land, houses, and income and rehabilitation subsidies will include provisions for permanent or temporary land losses, buildings/structures losses, yield/ crops and trees losses, a relocation subsidy, and a compensation for the stoppage of business (entrepreneurship) based on tax declarations or lump sums. These entitlements are as follows: 3.1 Land loss a) The land impact will be compensated at either: (i) in cash at replacement cost assessed at market or cadastral values (whichever is highest) plus a 15%, or (ii) through replacement land equal in value/productivity to the plot lost acceptable to the AP, in case of existence of equal land and in agreement of MoTC. Non-directly affected sections of a plot which become inaccessible or unviable for cultivation or any use after the impact will be included in the affected land, if the request of alienation by the AP was accepted by the acquirer according to the procedure established by the law. When more than 10% of an AP s plot is affected, AP (owners, leaseholder and land users) will get an additional allowance for severe impacts equal to the market cost of a year s gross yield of the land lost. b) APs whose rights toward the affected land are eligible for formalization and state registration (hereinafter: legalization) will be formalized and after that their losses must be compensated as owners. APs who cannot be legalized or who use the affected land without the formal legal rights (unregistered user/informal tenant) will be compensated only for the improvements existing on the land. c) Leaseholders on the community or state land will be legalized in cases provided by legislation and order compensated as full owners or will be given a new lease subject to availability of the land and consent of the owner (lessor). If this is not possible they will be compensated in cash at market or cadastral cost (whichever the higher) of the affected land plus a 15% allowance in proportion to the remaining years of lease as follows: a) < 1 year - 5% of land compensation cost; 2) < 15 years - 14% of land compensation cost; 3) < 25 years - 20% of land compensation cost; 4) 25 years and more- 25% of land compensation cost. d) Leaseholders on lands of natural persons and legal entities will be given cash compensation for the unused lease already paid. 3.2 Loss of buildings a) Residential Buildings and structures will be compensated to all APs regardless of the formal legal rights or legal status towards the building, structure in cash at replacement cost plus a 15%. Compensation will be free depreciation and salvaged materials and decrement of transaction costs of without state record and registration of building. In case of partial impacts and unwillingness of the owner to alienate building entirely, impacts will cover only the affected portion of a building and its full rehabilitation to previous use if it is technically possible. 45

47 b) Relocated leaseholders will be given cash compensation of the unused rent already paid. Relocated leaseholders will also be given all relocation and severe impacts allowances defined by LARF (see below). 3.3 Loss of Non-Residential Buildings a) Non-Residential Buildings (excluding illegal structure) will be compensated in cash at replacement cost plus 15%. b) The illegal non- buildings or structures (except of actually inhabited buildings) will be fully compensated only in case of legalization by RA legislation established order. In this case the owner of the legalized illegal building/structure will be compensated in cash at replacement cost plus 15%. If the illegal building is not legalized until the alienation of the affected land signing of acquisition contract or rendering of the judicial act - then no compensation is provided for the mentioned building. The above mentioned doesn't deprive APs from the right of getting compensation or other support for any kind of loss or affect in accordance with the provisions of LAR. APs pay all the expenses including state and local fees and charges for the legalization of the illegal structures. c) Relocated leaseholders will be given cash compensation for the unused portion of the already paid rent. 3.4 Loss of Public Property The community ans state-owned buildings and public utilities must be replaced or recovered in such a way, as they could implement the functions having occurred before the Project. 3.5 Loss of Yield/Crops For the loss of yield/crops there will be provided cash compensation at current market values for the gross value of 1 year s yield to those APs (owners, leaseholders, factual land users) by the actions of whom, namely usage or cultivation of land this compensated yield/crops have been resulted from. The above-mentioned compensation provisions are not applied to compensation for the losses of trees and their yield. 3.6 Loss of Trees and yield Cash compensation will be given to the AHs (landowners, the leaseholders and the actual land users) for the trees and harvest losses at market value based on type, age and productivity of trees as follows: a) The community or state landowners will receive the entire compensation for the trees: 1) if the existing leaseholders are not entitled to compensation according to the sub point b) of this paragraph or; 2) if affected tree have been planted by the factual land user, as it is established by the sub point c). b) If the lands are overloaded by lease, the compensation for trees will be given to the leaseholder, if trees were planted by the leaseholder with the consent of the landowner. c) If the community or state lands are actually used without formal legal rights of APs, the entire compensation for trees will be provided to such land users with the consent of the landowner. d) The actual users of natural persons and legal entities property will be compensated only to the extent of a year yield value. 46

48 3.7 Interruption of Business (entrepreneurship) a) Compensation for loss of business with tax declaration will be provided in case permanent and temporary stoppage of business (entrepreneurship), as follows: Permanent loss of business (entrepreneurship) will be compensated in cash equal to a 1- year net income based on tax declaration; Temporary impact i.e. stoppage of business (entrepreneurship) will be compensated in cash equal to the monthly income based on tax declaration for the months of stoppage. State registration and license fees will also be compensated, if any. b) In absence of tax declaration permanent and temporary losses business (entrepreneurship) the compensation will be made in the above mentioned way based on the minimum monthly salary. State registration and license fees will also be compensated, if any. 3.8 Job Loss a) Cash compensation based on extent of the average month salary for 6 months will be provided to the workers permanently losing their job and working at least for 2 months before the Cut-off date, and at the moment of the stoppage still working at the affected business (company/ie), if the employment contract is terminated as a result of permanent stoppage of business on the affected land. b) In case of temporary job loss (compulsory downtime) cash compensation will be given by the same principles based on the forced stoppage (downtime) of the working months. 3.9 Allowances for Severe Impacts a) Cash compensation is given for Project severe impacts causing economic displacement to those AHs (including the AHs as leaseholders and actual land users) in case 10% and more of their owned and/or cultivated agriculture land is affected and they receive benefits such as fruits, yield and crops by the result of land-use. The calculation of the above mentioned allowance is based on the actual operational the lands regardless the purpose stated in the cadastral files, state registration certificates and other documents certifying the right on land. If the non- land is impacted 10 % and more but is used as and actually there are crops, yield on the land, then the latter is subject to compensation in accordance with the above mentioned principles without the requirement of legalization provision.. b) AHs to be relocated (including the relocated leaseholders) will receive rehabilitation allowance for severe impacts equal to monthly minimum salary for 6 months Relocation Allowances a) Relocation and livelihood expenses: AHs to be relocated (including leaseholders) from their affected residences will receive relocation allowance for 1 month living expenses equal to monthly minimum salary as well as cash allowance to cover transport costs. AHs who have not actually lived in the affected residence or building for at least three 47

49 months before the cut-off date relocation in the affected house or building, will not receive relocation allowance. (b) Expenses of the movable assets. All AHs having movable assets on the affected land or building, regardless of their existing rights towards the affected land or building, will receive cash allowance to cover transport costs for movable assets to be relocated Allowance to the Vulnerable People/AHs Vulnerable people (AHs below poverty line and households headed by women or elder or disabled persons) will be given a rehabilitation allowance equal to 6 months of minimum salary and priority in Project-related employment. Socially Vulnerable people/households are: 1) Households which included family (s) who are registered in the family benefit system (vulnerability assessment system) and receive family allowances. 2) Households, headed by women, where there is no other adult of working age, except for elderly persons (people of old pension age), persons doing compulsory military service in the Armed Forces of RA, persons having disability of 1st or 2nd groups, and students up to 23 years full-time studying at educational institutions 3) Households, headed by elderly persons(people of old pension age), where there is no other person of working age, except for persons doing compulsory military service in the Armed Forces of RA, persons having disability of 1st or 2nd groups, and students up to 23 years studying full-time at educational institutions. 4) Households headed by persons with disability of 1st and 2nd group, where there is no other person of working age, except for persons doing compulsory military service in the Armed Forces of RA, persons having disability of 1st or 2nd groups, and students up to 23 years studying full-time at educational institutions Temporary impact Temporarily affected APs and /AHs will be given compensation for damages for the cases defined by RA legislation and incorporated in the Entitlement matrix of the project. The compensation provided to the temporarily affected APs and AHs will not include rehabilitation allowances. At the same time, the construction related damages to persons who are not LARP APs, will be addressed by the provision of environment management plan Unforeseen LAR impacts if any MoTC will consider unforeseen LAR impacts during the project implementation and will compensate and/or will provide rehabilitation allowance based on the provisions in the entitlement matrix, after preparing a corrective action plan (CAP) and with ADB s concurrence Compensations for Improvements: The improvements, which are not included in the entitlement matrix but exist on the affected land (excluding the movable assets) will be compensated at replacement cost. 48

50 IV. ASSESSMENT OF COMPENSATION UNIT VALUES 70 Assessment of the real estate values was based on the procedure defined in the Law of the Republic of Armenia on Assessment of Real Estate, RA National Standard on Real Estate Valuation, Safeguard Policy Statement of ADB (SPS 2009) and on LARF requirements, in terms of which the agreed valuation methodology between ADB and RA government for compensation unit rates of different impacts is as follows: (i) Agricultural and Non- Agricultural Land will be valued at replacement cost, i. e. market or cadastral value (whichever is higher) plus 15%. (ii) Houses/Buildings will be valued at replacement rate based on construction type, materials cost, labour, transport/other construction costs. No deduction/decrement for depreciation/transaction costs or salvaged materials will be applied. If an AP does not wish to relocate, partial impacts may be paid only for the affected portion of the building, as well as for repairs of affected part, if this option is economically justified. (iii) Annual Crops will be valued based on average farm gate prices and average yields for the previous 3 years. 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. (iv) Trees (bushes) will be valued according to different methodologies depending whether the tree (bush) lost is a productive or a not-productive tree (bush). a) Not-productive trees (bushes): wood and decorative trees will be valued based on following groups (a. small trees; b. medium trees and c. big trees) based on the type of tree (bush) and the following valuation indicators such as: timber (firewood or construction wood) volume, height of the tree (bush), as well as other applicable indicators for the given tree (bush) to be determined by LARP. b) Fruit/productive trees (bushes, vineyards) will be valued based on the planting age. The compensation for fruit/productive trees (bushes, vineyards) will be paid based on the investment value and as much as the market value of the given tree (bush) for 1 year multiplied by the number of years calculated from the planting date, but no more than the number of years needed to grow a new fully () productive tree (bush). V. CONDITIONS FOR EXPROPRIATION 71 Property acquisition is performed in accordance with relevant procedures established by law. In particular, for public and state needs the property may be acquired a) in accordance with contract, b) by the transfer of compensation amount to the deposit account, c) via litigation. 72 The Property may be acquired under the contract entered into by the acquirer and the owner of acquired property. In this case the amount of compensation, terms conditions, procedures and liability of parties is determined by mutual agreement, that shall not contradict the terms of the resettlement principles adopted by this LARP or that shall not be less profitable for the APs than their entitlements. Persons with property rights known to the owner of the property shall also be party of the acquisition contract. 73 Under the Project this mode shall be preferred and MoTC shall do its best to acquire the land via negotiations. In case of failure of negotiations and disagreement of APs in the case the 49

51 statutory term of 3 month expired, the acquirer shall transfer the compensation amount for the acquired property to the deposit account of the court or of the notary public in the timeframes defined by the Law. APs may receive the compensation within 7 days. In this case (as well as in case of the reception of compensation from the deposit account until the judgment was rendered by court) the acquisition contract is considered as concluded. If the AP does not receive the compensation amount from the deposit account within the statutory term the acquirer shall bring the compulsory property acquisition case to the court within one month. 74 Acquisition of land through expropriation proceedings entails lengthy procedures often may be resisted. Such an approach will thus be pursued under the Project only in extreme cases when negotiations between APs, the Acquirer and MOTC fail and no alternative land is available to implement the Project. The acquirer shall not possess the acquired land until a) the acquirer s ownership right is registered toward the acquired property, b) the relevant judicial act enters into force in accordance with law and the acquired land is handed-over to the acquirer. 5.1 Expenses for alienation 75 The expenses occurred during the alienation of the property are implemented at the expense of the acquirer of the land and other real estate property. The probable expenses occurring during the alienation process are defined by this LARP. The acquirer compensates for the financial obligations (taxes,fines,mandatory payments) from the state or local government bodies occured for the property owner in regard to the alienation. VI. LEGALIZATION REQUIREMENTS 76 All APs eligible (person who has the documents certifying his rights on acquired property, but who has not still registered his ownership right) for the acquired property shall register their ownership and other property rights related to the acquisition of the property in compliance with the procedure established by RA legislation on their own account APs that have rights on acquired property recognized by the law, but have not ensured its proper formalization or state registration in accordance with law, are entitled either to acquire lawful rights towards the affected property and receive the compensation corresponding to their newly formalized (state registered) rights till the Acquisition contract conclusion or till the rendering of judicial act, in a result of legalization procedure. 78 Terms and conditions of the legalization procedure per rights of APs toward acquired property (lawful possessors of property, actual possessors of property with prescription, tenants, APs who has built illegal structures on private land etc.), MoTC assistance forms and procedure are will be defined in the final LARP within the Legalization plan to be prepaired and implemented during the LARP implementation. APs not eligible to acquire ownership or any other right toward acquired property or those that discretionally have not formalized and registered their right recognized by law toward property, will receive compensation and will benefit from the compensation entitlements for relevant impacts under the LARF as APs without legal status. 17 The legalization costs can be covered by the LARP budget, if such mechanism is defined in the final LARP based on the final impact and census data. 50

52 F. PUBLIC CONSULTATION, PARTICIPATION, AND DISCLOSURE I. PUBLIC CONSULTATION 90. This chapter describes the process of Public Consultation (hereinafter referred to as PC) with the affected communities and APs. 91. The consultation meeting was held with representatives of regional and local community authorities held in Lori Marzpetaran office with participation of representatives of TPIU and ADB social safeguards and resettlement consultant. During the consultation meeting in Lori Marzpetaran, the aims of the project, stages of LAR process, as well as eligibility and entitlements were presented to the audience. Special information leaflet was distributed to the participants on LAR-related principles and procedures (attached in Appendix 3). 92. Several meetings have been organized with heads of communities before and during the design of the Project to address all requirements of communities. 93. Public consultations with APs will be implemented in the affected communities during LARP finalization stage. Face to face consultations with APs will be done during LARP implementation stage. During the meeting ADB social safeguards and resettlement consultant has presented the following LAR related topics presented also in the Information leaflet: Introduction on Project financing and implementation Expected project LAR impact The aim of preparation of draft LARP Main phases of LARP preparation, implementation and approval (including the start of civil works) The content of draft LARP Types of losses subject for compensation under the Project LARP Groups of APs eligible for compensation Main stages of LARP finalization and approval Besides the presented topics, also the preliminary impact data was presented to the community representatives indicating that this is very estimate picture and should be verified/updated based on cadastral data and DMS. Taking into account the preliminary impact data on affected community lands, the question was raised by ADB consultant regarding the possible ways of acquisition of community owned lands for the Project, particularly it was presented that usually the affected community owned lands are valuated and compensated to communities on the same way as for the private owned lands, however, in some cases, when the average affected of community lands is minor, the communities may be ready to donate that lands to the Project without compensation. In response to the raised question the mayor of Vanadzor community pointed out, that the proposed Project is very important for all communities, and in this situation if the impacts are not so big, communities are ready to donate needed lands for the Project, however, one of the participants pointed out that in case of application of such procedure the existing land recourses of each community should be taken into account, as well as the possibility of leasing of that lands. It was summarized that this issue will be additionally discussed with communities and MOTC during the finalization of LARP, when the final verified impact data will be available. Besides the LAR-related issues, several issues related to the design and construction of the road have been discussed during the meeting. The key issues discussed, questions raised during the meeting are presented in the table below. (For details, see Appendix 2: Minutes of Meeting of PC). 51

53 No Question/Concern 1 What are the main technical norms of the design and the width of purposed road? 2 The deputy head of marz interested if the bridges and tunnels will be (re)constructed by the same Contractor as the all road? 3 The head of Dzoraget community concerned about the access of road during the construction period, particularity the issue is that one bridge and tunnel are located near the community which are used by children to go to school to the other part of community. If the bridge and tunnel will be closed during the construction, then the two parts of community cannot be communicated. 4 The head of Vahagnadzor community mentioned that there are several old houses built on 1940s, which are located near the road and can be affected by the design or their accesses can be affected. He conceded on the possibility of compensation of that houses in case if they will be affected taking into account that those houses are mainly illegal/non-registered. 5 The head of Vahagnadzor community also interested in the protection mechanisms planned in the road design. 6 One of the participants suggested to provide communities information regarding the sections of the road where the construction will be started firstly. 7 One of the community heads suggested to provide them the full impact data for each community to understand the situation. Table F1: Issues discussed during the meeting Answer The engineer of TPIU R.Avagyan provided detailed information on the technical requirements of the Project design; particularly he mentioned that the road will be in compliance with all standards of 3 rd category of roads, besides two sections where it will be 4rd category, because of difficult technical availability. He presented the main norms of 3 rd and 4rd category roads. He also mentioned that the main difficulties related to the construction are related to the rehabilitation of 3 tunnels. Besides, 3 bridges will be demolished and newly constructed. The engineer of TPIU R.Avagyan mentioned that all construction works will be implemented by the same Contractor, but also subcontractors can be hired. The engineer of TPIU Ruben Sargsyan informed that the TPIU is aware on this issue and now discussed the possible way of solution for the raised issue. ADB consultant S.Poghosyan said that according to the ADB SPS requirements and Project LAR principles all affected and non- buildings are subject for compensation on replacement cost. Moreover, if the affected building is and should be relocated by the Project then the AP who constructed that house will be compensated regardless his/her legal/registration status. The engineer of TPIU Ruben Sargsyan mentioned that all such solutions are considered in the design; particularly he informed that new retaining walls will be constructed where needed. The engineer of TPIU R.Avagyan said that the tender for the Contractor haven t been announced yet, and the suggested information will be available when the Contractor is mobilized. ADB consultant S.Poghosyan informed that the all preliminary impact data per communities will be presented and summarized in the draft LARP which is now in the process of preparation. She mentioned that the draft LARP will be disclosed to the communities, so they will be aware of all impact details. 8 The deputy head of marz encouraged the heads of communities to work closely with the population and possible APs during the ADB consultant S.Poghosyan mentioned that during the draft LARP preparation process the communities have been very supportive regarding the provision of needed 52

54 LAR-related activities. He suggested to provide the communities analyzed impact data, as well as cadastral issues to be able to initiate needed actions. 9 ADB consultant S.Poghosyan informed the participants about the cut-off date for the Project and encouraged the community heads to monitor the process of construction of new structures within the and near the road. data, she pointed out the important role of communities and further cooperation with communities during the LARP finalization and implementation which will allow effectively implement the Project without delays. She mentioned that analyzed impact data, as well as cadastral issues will be summarized in draft LARP and available for all communities. The deputy head of marz mentioned that this one of the main functions of community heads. II. DISCLOSURE OF LAR-RELATED DOCUMENTS 94. While the project related information has already been disclosed during the consultations, the draft LARP will be translated into Armenian and disclosed on the MOTC website and the English version will be posted on the ADB website. 95. A LAR Information Brochure explaining the purpose and scope of the Project as well as APs entitlements to compensation, and the grievance redress mechanism will be prepared in Armenian, and distributed to the APs during the public consultations in all affected communities at the time of LARP finalisation. 96. The finalised LARP will be translated into Armenian. The LARP in English will be posted on the ADB and MOTC websites. The LARP in Armenian will be posted on the MOTC website. A final Project Information Brochure providing a summary of the impacts, implementation arrangements and of the LARP compensation policy will be disclosed to all APs immediately after the approval of the Final LARP. 53

55 G. INSTITUTIONAL ARRANGEMENTS 97. The Ministry of Transport and Communication (MOTC) is the Executing Agency (EA) and the Transport Projects Implementation Unit State Institution (TPIU) is the Implementing Agency (IA) for the Program. 98. Several other Government agencies also play important roles in the LARP preparation and implementation process. The State Committee of Real Estate Cadastre (SCREC) of the Government of the Republic of Armenia and its Cadastre Regional Offices are responsible for providing information about the status of real estate ownership and registration of ownership. Local government administrations are closely involved. The role of some of the key actors is detailed below. I. MOTC AND TPIU 99. MOTC has overall responsibility for the Program. This includes preparation, implementation and financing of all LAR tasks and cross-agency coordination and linkages. The MOTC exercises its functions through the TPIU. The TPIU is responsible for planning and implementation of all LAR tasks. The TPIU is an organization established by the RA Government to implement investment and development projects (in transport sphere) developed by the MoTC and regional administrative bodies and approved by the RA Government at the expenses of the state budget and funding provided to the RA by foreign states and international financing organizations The TPIU responsible for: (i) coordinating with Office and local governments; (ii) obtaining the cadastral maps and land records; (iii) assisting the Consultants in Mapping, Surveying and Verification Activities; (iv) assisting the Consultants in hiring independent asset valuators and as defined in LARF for each affected item; (v) organizing public consultation meetings assisted by Consultants and LSGBs; (vi) sending the LARP to ADB for review; (vii) disclosing the LARP and the information pamphlets; (viii) planning and managing LARP implementation and the distribution of compensation; (ix) initiating eventual expropriation cases and coordination with the courts as necessary; (x) assisting in settlement of individual complaints; (xi) ensuring proper internal monitoring; (xiii) maintaining AP data base and (xiv) coordinating with the appropriate government agencies to provide all needed documentation and ensuring prompt allocation of LAR budgets to APs and maintaining coordination of all LAR related activities; and any other issue that is related to resettlement and rehabilitation of APs. The TPIU has a Social and Environmental Specialist (SES) in its staff responsible for the coordination of LAR-related activities (if any) for the current projects of TPIU financed by World Bank. However, taking into account that the TPIU has no actual experience in implementation of LAR-related activities, it shall be adequately staffed to implement the LARP. With the support of a social safeguards consultant to be engaged either in the supervision consultant team, or separately, TPIU will be responsible for finalizing, updating, and implementing the LARP, and then monitoring the resettlement activities. 18 The TPIU may also recruit an Implementation Consultant (IC) including lawyers and social development specialists, to carry out the implementation activities. The main tasks for the IC are as follows (but will not be limited to these): Assist TPIU to undertake public information campaigns to inform the affected communities of the Resettlement Policies and entitlement packages; 18 See the Memorandum of Understanding (MoU) between the ADB and MoTC agreed during the Pre- Fact Finding Mission of ADB in February 15-26,

56 Be the link between the TPIU and the APs through regular meetings, Assist APs in resolving their grievances through the grievance redress mechanism set out in the LARP and assist APs to pursue any grievances to a suitable remedy; Review and address, if needed, the comments on the draft contracts sent by APs and reply to them; Organize the contract signing process and other related actions; Consult and assist legalizable APs, if any, with their legalization; Assist APs in getting the compensation for their land and properties acquired for the Project; Assist APs in verifying that their compensation complies with their entitlements. In case of any discrepancy, the IC shall assist the AP in pursuing the matter through the grievance redress mechanism (GRM); Assist TPIU in making arrangements for the smooth relocation of the APs and their businesses; Other tasks as necessary 101. The detailed TOR for the IC for LARP implementation shall be developed and presented in final LARP. II. LOCAL SELF GOVERNMENT 102. The community authorities provided information on affected lands and APs and will continue to do so. They will support in the social surveys, land measurements and in identifying type of land. They also will help in organizing communities and APs for consultations. They will assist in the resolution of complaints and grievances and participate in other issues as required. III. ASIAN DEVELOPMENT BANK 103. ADB will periodically review the Project and LARP implementation and provide clearance to contract awards and initiation of civil works. IV. OTHER MINISTRIES, ORGANIZATIONS AND INSTITUTIONS 104. Several other institutions have participated and will participate in the preparation and implementation of LAR tasks. These are: i ii Ministry of Finance: The Ministry of Finance will provide the budgets for the implementation of the LARP to MOTC following the official approval of the final LARP. State Committee of Real Estate Cadaster of the Republic of Armenia is responsible for providing information about the status of real estate ownership, and is in-charge of the state registration of land ownership. iii Local Courts: For cases of expropriation MOTC will have to rely on the Marz court for legal processes to review the expropriation cases, carry out hearings and decide whether the land can be expropriated and at what price. iv. Consultants involved in LAR- related tasks: 55

57 Consultant(s) include international and/or local LAR experts who updated and finalized the LARP. Survey Consultant(s) involved in the surveys during the LARP finalization (including the independent qualified valuator). Implementation consultant (s) to carry out the LARP implementation activities. External Monitoring agency (EMA) responsible for short-term and long-term monitoring of LARP implementation. V. IMPLEMENTATION STRUCTURE 105. An efficient organizational set up is important for the management of involuntary resettlement. The dedicated participation of the institutional actors outlined above is required. The institutional structure for LARP implementation is depicted in Figure G1. 56

58 Figure G1: LAR Institutional Structure and Relations Ministry of Finance MOTC Other Ministries SCRE Cadastre R C e o gi u o r n t al Courts TPIU IC EMA LARP preparation consultants State Committee of Real Estate Cadastre Regional Office Plot Verification Coordination with Communities Consultants Survey, Consultation, Valuation, etc. COMMUNITY AUTHORITIES Functional role Approval Finances Complaints & grievances APs 57

59 H. COMPLAINTS AND GRIEVANCES 111. A grievance redress mechanism will be made available at the project level to allow an AP to appeal against any disagreeable decision, practice or activity arising from compensation of land or other assets or any project related issues. The fundamental objective is to resolve any resettlement-related grievance locally, in consultation with the aggrieved party, to facilitate smooth implementation of the LARP. Another important objective is to democratize the development process at the local level and to establish accountability to the affected people Conventionally grievance resolution is done by APs presenting their complaints in writing to the TPIU during the LARP preparation and implementation Beside this customary mode of dealing with complaints during LARP preparation, TPIU will also establish a formal complaints and grievance redress mechanism during LARP implementation and thereafter. Several parties will be involved in this formal grievance redress mechanism, such as MOTC, TPIU and LSGBs. Attempts will be made to resolve complaints at community level with the help of a Grievance Redress Person (GRP). The GRP is the representative from each affected community (LSGB) who will be the link between APs and a representative of TPIU (SES) and will be responsible for registration of complaints forwarding them to TPIU (SES) for discussion and addressing Steps in resolving grievances are as follows: An aggrieved AP or AH may bring his/her complaint before GRP. The complaint must be made in writing by the AP him/herself or an appointed representative. The GRP will be responsible for documenting and forwarding all complaints to TPIU (SES). The judgment made by TPIU (SES) will be communicated to the concerned AP in writing. If the matter remains unsettled after 15 days following the discussion with the TPIU (SES), the grievance can then be lodged to MOTC by the AP. Settlement will be made within 15 days from the day of final discussion with TPIU (SES) Should the grievance redress system fail to satisfy the AP, he/she can pursue their complaint further by submitting their case to the appropriate court of law. Nevertheless, the above mentioned grievance mechanism does not limit the citizen s right to submit the case to the court of law at any point in time of the grievance process. 58

60 I. GENERAL I. LARP IMPLEMENTATION PROCESS 116. The schedule for implementation of the resettlement plan is based on the overall Project implementation program. All activities related to the land acquisition and resettlement should be planned to ensure that compensation is paid prior to displacement and commencement of civil works. The schedule is subject to modification depending on the progress of the Project activities and in case of any exigency The project LAR activities to be implemented, and the timeframe for implementation, will be presented in the final LARP. II. LAND ACQUISITION AND RESETTLEMENT PLAN PREPERATION AND IMPLEMENTATION 2.1 Final LARP preparation phase The actions needed for the LARP finalization are presented in the table I1 below: Table I1: Action plan for LARP finalization No. Activity Responsible party 1 Hiring and mobilization of international and/or local LAR experts who will update and finalize the LARP, as well as will develop a detailed ToR for Survey Consultant(s) 2 Hiring and mobilization of Survey Consultant(s) involved in the surveys during the LARP finalization (including the independent qualified valuator) 3 Public consultation with APs for each affected community (will be done after the verification of the APs list) 4 Implementation of desk surveys for the verification of the APs list : Analysis of cadastral map and data provided by SCREC Development of final list of affected properties for government decree on Eminent Domain (if needed) 5 Initiation and approval of Government Decree on Eminent Domain and notification of APs 6 Implementation of desk and field surveys for the LARP finalization: Factual measurement of affected properties and preparation of maps showing the affected part of the property (for land and building), Real estate, crops, trees and improvements survey (inventory) Development of final list of affected persons and households and Census with 100% of APs Socio-economic survey (SES) with 25% of APs Valuation of compensation for losses and calculation of allowances according the LARP requirements, Development of Database for LAR data entering and calculations Development of description protocols for affected properties based on all collected data MoTC/TPIU MoTC/TPIU MoTC/TPIU/LAR Consultant(s) Consultant(s) RA Government /MoTC Survey Consultant(s) 59

61 7 Signing of description protocols with all APs Survey Consultant(s)/ MOTC 8 Development of final LARP document MOTC/TPIU/LAR Consultant(s) 9 Review and approval of final LARP MOTC/ADB 10 Approval of final LARP by RA GoA RA Government 11 Initiation of EMA hiring process to be mobilized as of LARP approval MoTC/TPIU 2.2 LARP implementation phase 118. Upon the approval of final implementation-ready LARP, all the arrangements for fixing the compensation and the disbursement swill be implemented. These include: 1) Appointment of IC; 2) Signing of acquisition Contracts; 3) Completion of expropriation procedures, where necessary; 4) Payment to all eligible APs; 5) Relocation of APs as necessary; 6) Internal Monitoring review and reporting by TPIU; 7) External Monitoring by EMA and preparation of LARP Compliance Reports 8) No objection to EMA s LARP Compliance Reports by ADB 9) Finally commencement of the civil work The compensation payment is one of the critical phases in LARP implementation. The steps envisaged are as follows. 1) Allocation of the relocation and resettlement budget to Government Treasury by MoF. This will take approximately 15 days after LARP approval by GoA and ADB. 2) Selection of commercial Banks with the best conditions for APs (geographical location and low/no transaction charges). The APs can also operate through their existing Bank accounts. 3) Transfer of the compensation and allowances to APs Bank accounts based on the signed acquisition contracts. 4) Vacating of the property by the APs within 14 days after payment of compensation. 5) MOTC taking possession of the land/structure. 60

62 J. RESETTLEMENT BUDGET AND FINANCING I. GENERAL 120. The resettlement cost estimate for this Project includes eligible compensation, rehabilitation allowances and support costs of LARP implementation. The support costs, which include administrative expenses, are part of the overall resettlement budget. Contingency provisions (40% of the total cost) have also been made to take into account variations from this estimate. In case of any cost over-run, MOTC will provide additional funds as needed in a timely manner. Some of the features of this LAR cost estimate are outlined below: (i) (ii) (iii) (iv) (v) (vi) (vii) Compensation for and non- land at their replacement cost; Compensation for structures and buildings at their replacement cost; Compensation for trees and crops; Compensation for businesses; Compensation for improvements; Assistance for severely affected households; Assistance for vulnerable affected households for their livelihood restoration (viii) Assistance for relocation and transportation for movable structure; (ix) Cost of LARP implementation Compensation costs were determined by an independent qualified valuator based on the requirements of Entitlement Matrix applied for this Project. The estimation of compensation for crops, trees and businesses is based on the analysis of data from the similar projects. II. COMPENSATION 2.1 Compensation of land 122. Compensation for and non- land was calculated at replacement cost +15%, based on market rates and transaction costs, or cadastral values (whichever is highest) The cost for compensation of land is presented in Table J1 per ownership status according to type of land and Table J2 provides the summary of compensation for lands. The total compensation for affected lands is 191, AMD (including15%) for 170, m 2. Compensation for land is 5,395,927 AMD (including15%) for 52, m 2, for non- lands 180, AMD (including15%) for 113, m 2 and for the lands of special use is 5, AMD for 3, m 2. The compensation for private owned lands is 120, AMD (including15%) and for community lands 70, AMD (including15%) The compensation wasn t calculated for the 34 unidentified lands plots, because the type of land wasn t available. No compensation was calculated for 38 state- owned lands as they are not subject for acquisition and compensation. No compensation was calculated also for one transport land and one cemetery land classified under the type of special use lands owned by community as there is no market-formed rates used for the sale of such lands in 61

63 the market. The details on calculation of average unit rates by type of lands per communities are presented in Appendix 4. 62

64 Land category No Affected Sq. m Table J1: Land Compensation by Type of Land Private Average Cost per sq. m cost compensation + 15% No Affected Sq. m Community Average Cost per sq. m cost compensation + 15% Agricultural: 48 7, ,489,059 1,712, , ,203,052 3,683,510 Arable 31 4, , , , , ,181 Orchard , , Pasture 4 1, , , , ,791,389 2,060,097 Other ,859 7, , , ,232 Non -: , ,387, ,145, , ,426,612 67,190,604 Residential , , ,147,350 79,519, , , ,825 Commercial 15 1, , ,434,805 3,950, , , ,332,140 6,131,961 General use , , ,434,510 1,649,687 Other , , , ,150,088 50,772,601 Industrial 8 18, , ,940,602 28,681, , ,246,140 1,433,061 Agricultural , , , , , ,117,799 7,035,469 Special use: 1 3, ,918,320 5,656, ,260 42,849 Energy 1 3, , ,918,320 5,656, , ,260 42,849 TOTAL , ,795, ,514, , ,666,924 70,916,963 Table J2: Summary of Land Compensation by Type of Land 19 Land category No Affected Sq. m cost compensation + 15% 19 The total number doesn t include the 34 unidentified lands and 38 state-owned lands. 63

65 Agricultural: 98 52, ,692,111 5,395,927 Arable 41 8, ,415,375 1,627,681 Orchard , ,124 Pasture 6 23, ,951,307 2,244,002 Other 40 20, , ,120 Non- : , ,814, ,336,372 Residential , ,293,285 79,687,277 Commercial 30 3, ,766,945 10,081,987 General use ,434,510 1,649,687 Other , ,680,479 51,382,551 Industrial 13 18, ,186,742 30,114,753 Agricultural 9 5, ,452,276 7,420,118 Special use: 2 3, ,955,580 5,698,917 Energy 2 3, ,955,580 5,698,917 TOTAL , ,461, ,431,217 64

66 2.2 Compensation of structures 125. Compensation for structures is based on the valuation of the qualified valuator. Residential buildings and structures are compensated in cash at replacement 20 cost plus 15%, irrespective of the house registration status. Non- registered buildings and structures are compensated in the same way, but after registration. In case of partial impacts and unwillingness of the owner to relocate, compensation covers only the affected portion of a building and its rehabilitation to a usable state The overall estimated cost of compensation for buildings and structures is 1,158, AMD (including 15%) for 54 affected structures. This cost was calculated with the assumption that the structures on the affected lands will be acquired in full. There are business structures among those lost and also relocation assistance will be paid to them. Though no compensation was calculated for state lands, however compensation was calculated for structures identified on state lands. It can be assumed that these structures are constructed by leaseholders or users of state lands which will be verified during the LARP finalization stage See Table J2 for details on structures located on private and community lands and Table J3 for structures located on state lands and Summary of compensation for all structures. The details on affected structures per communities are provided in Appendix 1. Table J3: Compensation of Structures on Private and Community lands Private Community Average unit compensation Average unit Type of Affected per sq. cost Including 15% No Affected per sq. cost compensation structure No Sq. m m (AMD) Sq. m m (AMD) Including 15% esidential 39 3, , ,445, ,261, ,000 30,200,000 34,730,000 ub-total Residential) 39 3, ,445, ,261, ,200,000 34,730,000 hop ,000 9,695,000 11,149, ,000 2,100,000 2,415,000 ndustrial ,000 90,360, ,914, ,000 36,060,000 41,469,000 ub-total Nonesidential) ,055, ,063, ,160,000 43,884,000 OTAL 43 3, ,670,945,000 1,921,586, ,560, ,344,000 Type of structure Table J4: Compensation of Structures on State lands and Summary of Compensation for All Structures No Affected Sq. m Average unit per sq. m State cost (AMD) compensation Including 15% No Cost (AMD) compensation Including 15% Residential , ,645, ,991,750 Sub-total ,645, ,991, Replacement cost is valued based on the construction type, materials cost, labor, transport/other construction costs without any deduction for depreciation or transaction costs. 65

67 (Residential) Shop ,000 53,235,000 61,220, ,030,000 74,784,500 Industrial , ,420, ,383,000 Sub-total (Non) ,235,000 61,220, ,450, ,167,500 TOTAL ,235,000 61,220, ,007,095,000 1,158,159, Compensation of crops and trees 128. Crop compensation will be paid to all AHs in cash at market rates, i.e. gross crop value, of the expected harvest. Compensation will be determined based on average yields of the relevant crops and current market rates Compensation for fruit trees differs for fruit bearing and adult-not fruit bearing trees and seedlings will be as follows: Fruit bearing trees: compensation at replacement cost of lost income based on the net market value of one year s income multiplied by the number of years needed to grow a fully productive tree. Not fruit bearing tree: Regardless of age these trees will be compensated at replacement cost of productive inputs for the number of years needed to grow a tree to productive age (to fit your comment below). Seedlings: compensation for the market value of the seedling Compensation for wood trees differs for seedlings, medium growth and full growth trees will be as follows: Seedlings: compensation at replacement cost of productive inputs. Medium and Full Growth: compensation at replacement cost of wood value of the tree to be calculated based on the volume of the wood. Medium growth trees are defined as trees with cm diameter and full growth trees as more than 24cm diameter The affected crops and trees haven t been identified during the preparation of this draft LARP. This task will be done during the final LARP preparation stage. However, for the affected crops and trees the average estimation was made based on the similar projects data. The details of calculation mechanism for trees and crops are presented in Tables J5, J6 and J Thus, the estimated compensation for crops is 9, AMD, for fruit trees: 6, AMD and for wood trees: 20, AMD. Table J5: Estimated compensation for crops Baseline Baseline variable variable Remark cost (a) Unit average cost for 1 m2 of crop (AMD) 1,166 Based on the average cost of 7 different types of crops derived from similar projects' data. (b) The of affected arable land 8,450.0 See the table B1. (c) cost of affected fruit trees, AMD 9, c=b*a 66

68 Table J6: Estimated compensation for fruit trees Baseline Baseline variable variable cost Remark (a) Unit average cost for 1 fruit tree (AMD) (b) Average feeding area needed for one fruit tree (m 2 ) 15 (c) The affected of orchards (m 2 ) See table B1. (d) Estimated quantity of affected fruit trees (N) 49 d=c/b (e) cost of affected fruit trees, AMD 6, e=d*a Table J7: Estimated compensation for wood trees Based on the average cost of 11 different types of fruit trees derived from similar projects' data. Baseline variable Baseline variable cost (a) Unit average cost for 1 wood tree (AMD) (b) Number of wood trees in 1 ha based on needed feeding area (N) 250 Remark Based on the average cost of 4 different types of wood trees derived from similar projects' data. (c) The of affected forest See the table B1 (d) Estimated quantity of affected wood trees (N) 767 d=c/10.000*b 20, (e) cost of affected fruit trees, AMD e=d*a 2.4 Compensation of improvements (other than structures, crops and trees) 133. Table J7 show compensation calculated for fences and gates identified by the designer. The compensation for fences is 9,866,425 AMD and for gates is 4, AMD. The total compensation is 14, AMD. Tables J7: Compensation for Improvements (fences, gates) Land Including Affected Cost per Type Material plots cost 15% part m/unit m No surcharge Fence Metal 28 2, ,500 8, , Fence Stone , ,000 Fence Wood , Sub- 29 2, , , Gate Metal ,000 4, ,

69 Sub , , Compensation of business and income losses 134. Since it was not possible to identify type of businesses actually operating in the Project affected areas at this stage, in this draft LARP the number of affected businesses is based on the number of affected non- (commercial and ) buildings. The final actually affected number and type of businesses will be done during the final LARP preparation stage via DMS and inventory of assets. In case of impacts on businesses and/or employment losses identified during the LARP finalization the relevant compensation will be calculated based on requirements of Entitlement matrix of this LARP. The compensation for affected businesses will be calculated based on the tax information from government bodies provided during the finalization of LARP. The compensation for affected employees will be calculated during the finalization of LARP based on the list of affected employees and their average salaries received from the respective government body However, for the affected businesses (affected commercial and buildings) the average estimation was made based on the similar projects data. The estimated compensation for businesses is 22, AMD. The calculation mechanism applied for estimation is presented in Table J8. Tables J8: Estimated compensation for affected businesses No of Type of Unit cost cost businesses business AMD* AMD affected Shop 5 2, , Industrial 5 2, , , *The unit cost is an average cost calculated based on the data of similar projects. III. REHABILITATION ALLOWANCES 3.1 Severe Impact Allowances 136. The severally affected AHs who are severely affected losing more than 10% of productive income generating asset will receive one additional crop compensation covering 1-year s yield is provided for severely affected households losing land plots. There are no AHs losing more than 10% of their productive asset in this draft LARP. This will be verified during the LARP finalization stage, when the detailed measurement survey will be done for each land plot. No compensation is calculated for these AHs in this stage The identified number of severally affected relocated AHs and businesses in this stage is 54 (44 relocation, 10 businesses). Thus, the preliminary calculated severally affected 54 68

70 AHs will receive an allowance equal to 6 months minimum salary (55,000 AMD*6= AMD), which is amounts to 17, AMD. 3.2 Allowances to Vulnerable Groups 138. Additional allowances are provided to vulnerable groups21, including AHs headed by women, the elderly and disabled persons, as well as AHs registered in Family Benefit System (FBS). The allowance is equivalent to 6 months of minimum salary (55,000 AMD *6= AMD). The compensation for vulnerable AHs identified based on general vulnerability statistics in communities is 8, AMD for 25 vulnerable AHs. The compensation amount for vulnerable AHs will be updated during the LARP finalization stage based on their verified number derived from the information of respective government bodies as well as census survey. 3.3 Relocation Allowances 139. Relocation allowances will be provided according to the costs which will be incurred by AHs for the transport of movable property from acquired or non- buildings and structures, which is now wasn t identified. Thus, only the cost for transportation of 1 movable kiosk is calculated. The cost is calculated for the expenditure of the hire of trucks, machinery and labor required. An average transport distance of 20km was estimated. The total compensation for transportation costs will be 90,000 AMD. Tables J9: Transportation Costs for movable structures Type of Construction Structures Trips affected Cost per trip type structures No No Private cost Kiosk Metal ,000 90, ,000 IV. REGISTRATION SERVICES 140. The cost for registration services for the LARP implementation will be done in final implementation-ready LARP based on final updated data on LAR impacts. V. COMMUNITY STRUCTURES AND PUBLIC UTILITIES 141. Public utilities, if any to be affected by the finalized road alignment, should be fully replaced or rehabilitated in order to re-establish their pre-project functions. VI. SUMMARY COSTS AND SOURCE OF FINANCING 21 All vulnerable AHs, including owners, leaseholders and informal tenants will be compensated. 69

71 142. The total estimated cost of LAR calculated for the Project is 1,827,203,065 AMD which is equivalent to 3, USD 22, as detailed in Table J10 below. The MOTC will ensure that the funds for the compensation of land acquisition and resettlement are approved and allocated by the RA state budget and transferred to the accounts of MOTC by the RA Ministry of Finance in time for the implementation of this LARP Taking into account the methodological limitations and data availability on impacts, the 20% of contingency was calculated under the budget. Miscellaneous expenses have been included to cover administrative costs which may be incurred during the implementation of the LARP. This has been considered on a lump sum basis. Table J10: Summary of draft LARP Budget Item cost Comments Compensation and allowances Land (Includes 15% compensation provision) Buildings and Structures (Includes 15% compensation provision) 191, ,158, Crops 9, Trees (fruit and wood) 27, Improvements (fences, gates) 14, Will be identified and calculated during the LARP finalization. Businesses 22, Employment - Severe Impact Allowances 17, Will be identified and calculated during the LARP finalization. Calculated for 54 relocated AHs and businesses. Vulnerability Allowances 8, Calculated for 25 poor AHs. Transportations costs 90,000 Registration Services - Sub- (compensation) 1,450, Administration (5% of compensation and 72, allowances) 1,522, Contingency (20% of total) 304, Grand (AMD) 1,827, Calculated for 1 moveable kiosk. Will be calculated during the LARP finalization. Grand (US$) 3, US$=AMD US$ 1= AMD as of 30 June 2016 ( 70

72 K. MONITORING AND EVALUATION I. INTRODUCTION 144. The implementation of the LARP will be monitored internally on a regular basis. The TPIU will be responsible for overall internal monitoring and the Social and Environment Specialist (SES) of the TPIU will monitor resettlement related activities The key objective is to ascertain the effectiveness of the process of LAR planning (including data collection, review, and verification and final LARP preparation by the respective consultants) and LARP implementation (including the delivery of compensation and allowances, consultation and grievance redress). II. INTERNAL MONITORING 146. Internal monitoring will be carried out routinely by TPIU (SES). The results will be communicated to ADB through the semi-annual monitoring reports that will be posted on the ADB website, as well as through the quarterly progress reports. Indicators for the internal monitoring will be those related to processes and immediate outputs and results, for which data will be collected monthly, in order to assess the progress and results of LARP implementation, and to adjust the work program, if necessary. Specific monitoring benchmarks will be: Status of land acquisition and payments on land compensation; Payment of compensation for affected structures and other assets; Relocation of APs; Payments for loss of income; Payment of allowances, resettlement benefits, relocation assistance Provision of assistance Income restoration activities Grievance redressing Other support services Internal monitoring will cover 100% of the APs identified during the DMS. Monitoring data will be collected through the following methods of inquiry: (1) Review of census and entitlement data for all APs; (2) Consultation and informal interviews with APs; (3) In-depth case studies; (4) Key informant interviews; and (4) Community public meetings. III. EXTERNAL MONITORING 147. External monitoring will be carried out by an External Monitoring Agency (EMA). External Monitoring entails two types of activity: a) short term-monitoring and evaluation of LARP implementation and compensation delivery and b) a long-term evaluation of the rehabilitation effects of the LARP program. 1. Short term-monitoring/evaluation of LARP implementation 71

73 148. This task will be carried out in parallel with the implementation of each LARP activity and will entail extensive field visits and communication with APs and the TPIU/MOTC. This task will result in a final LAR Compliance Report(s) indicating whether the compensation program has been carried out according to the provisions of the final LARP for the Project, the LARF and ADB s safeguards requirements, as well as to the satisfaction of the APs. The Compliance report(s) will be communicated to TPIU (MOTC) and ADB and will be a condition for the commencement of civil works. The Compliance Report(s) will include the following: A verification of AH and AP numbers. A verification that the impacts measurements in the protocols fit actual impacts A verification that the unit compensation rates used in the protocols fit LARP provisions A verification that compensation was delivered to all AHs and in the amounts defined in the LARP An assessment of the way the compensation process was conducted/timed in relation to LARP provisions and effectiveness parameters A review of grievance cases including an assessment of whether grievance resolution was carried out in accordance with LARP provisions and with AP satisfaction An assessment of AP s satisfaction based on a survey based on a 25% sample of the AH. An assessment of the conducting and completion of expropriation cases An assessment of the conducting of public consultation and EA-AP communication An assessment of the delivery of allowances to severely affected, vulnerable and resettled APs, and A final assessment of the appropriateness or not of LARP implementation. If LARP implementation is not satisfactory the final assessment will detail the necessary corrective measures. 1. Long-term evaluation of the rehabilitation effects of the LARP program 149. This task will be carried out 1 year after the end of LARP implementation to find out whether the LARP rehabilitation objectives have been attained or not. The SES data included in this LARP will provide the baseline for the comparison of pre-and post-project conditions. The study will detail: Socio-economic conditions of the APs in the post-resettlement period; Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc.; Changes in housing and income levels; Valuation of property; Grievance procedures; 72

74 Disbursement of compensation; and Level of satisfaction of APs in the post resettlement period. Level of restoration of the economic and social base of the affected people; Changes in living standards and livelihoods of the APs; The long-term effectiveness, impact and sustainability of entitlements, and Need for further mitigation measures and lessons learned. 73

75 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Akhtala private 0, , ,00 Akhtala private 0, , ,20 Akhtala private 0, , ,40 Akhtala private 0, , ,00 Akhtala private 0, , ,00 Akhtala private 0, , ,30 7 Akhtala community 0, ,70 0,00 general use Akhtala private 0,07 700, ,00 Akhtala private 0,08 800, ,00 Akhtala private 0, , ,00 Akhtala private 0, , ,90 Akhtala private 0, , ,00 13 Akhtala community 0, ,10 496,40 industrcial Akhtala private 0, , ,90 Akhtala private 0, , ,00 Remarks 74

76 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Akhtala private 0, , ,00 17 Akhtala community 0, ,00 0,00 general use Akhtala private 0, , ,00 Akhtala private 0, , ,00 Akhtala private 0, , ,00 Akhtala private 0, , ,00 22 Akhtala community 0, ,70 681,00 other land 23 Akhtala community 0, ,20 0,00 general use 24 Akhtala community 0, ,00 1,90 other land 25 Akhtala community 0, ,60 540,00 other land 26 Akhtala community 0, ,30 148,00 other land 27 Akhtala community 0, ,00 0,00 general use Akhtala state 0, , ,00 29 Akhtala unidentified - - 0, Akhtala community 0, ,30 672,00 other land Akhtala community 0, ,50 other land ,09 32 Akhtala private 0, ,00 52,50 Remarks Tumanyan Road Maintenance company OJSC 75

77 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Akhtala private 0, , ,00 other land Akhtala community 0, , ,00 other land Akhtala community 0, , , Akhtala community 0,0005 5, , Akhtala private 0, , , Akhtala community 10, , ,50 other land Akhtala community 10, , ,00 other land community 0, ,00 347,00 other land private 0, , ,30 private 0, , , community 0, ,60 2,70 other land private 0, , ,00 private 0, , ,00 private 0, , ,50 Remarks 76

78 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage private 0, , , community 0, ,00 10,70 other land transport, state 1, ,00 transport ,00 communication private 0, , ,63 private 0, , ,97 private 0, , , community 0, ,80 1,00 other land private 0, , ,44 private 0, , ,06 private 0, , ,14 private 0, , ,20 private 0, , , community 0, ,80 4,45 other land private 0, , ,00 private 0, , ,40 Remarks 77

79 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks private 0, ,60 39,12 other land community 0, ,80 12,90 other land community 0, ,80 40,60 other land private 0, , , community 0, ,60 66,10 other land private 0, , ,43 private 0, , ,20 private 0, , ,70 private 0, , ,00 private 0, , ,80 private 0, , , community 0, ,80 25,20 other land private 0, , ,00 private 0, , , community 0, ,00 0,60 other land private 0, , , community 0,008 80,00 11,00 other land 78

80 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage private 0, , ,30 private 0, , , unidentified - - 0, private 0, , ,00 private 0, , ,00 private 0, , ,30 private 0, , ,30 private 0,0009 9, ,00 private 0, , ,00 private 0, , ,90 private 0,0009 9, ,00 private 0, , ,30 private 0, , ,70 private 0, , ,90 private 0, , ,10 Remarks 79

81 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage private 0, , ,80 private 0, , ,80 private 0, , ,00 private 0, , ,40 private 0, , ,70 private 0, , , community 0, ,00 19,00 commercial community 0, ,50 11,50 commercial state 0, ,00 338,00 commercial state 0, ,60 551,00 water river community 0, ,00 0,00 general use state 0, , ,00 commercial state 0, ,00 state 0, ,00 private 0, ,00 25,70 12,40 319,00 transport, communication transport objects Remarks Tumanyan Road Maintenance company OJSC 80

82 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks transport, state 0, ,00 transport ,00 communication unidentified - - 0, community 0, ,00 0,00 general use private 0, , ,00 private 0, , ,00 transport, state 1, ,00 transport ,00 communication private 0, , ,40 private 0, , ,50 private 0, , ,20 private 0, , , state 0, ,00 224,50 commercial private 0, , ,70 private 0, , , private 0, ,00 1,00 other land unidentified - - 0, private 0, , ,00 81

83 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks private 0, ,00 0,60 other land community 0,008 80,00 21,40 commercial private 0, ,00 27,00 other land private 0, , , unidentified - - 0, transport, state 1, ,40 transport ,00 communication private 0, , , community 3, ,00 230,00 other land unidentified - - 0, community 0, , ,00 other land transport, state 1, ,40 transport ,00 communication private 0, , , unidentified - - 0, state 1, ,60 0,00 water river community 0, ,60 41,00 other land community 0, ,00 5,00 other land community 0, ,80 50,90 commercial community 0, , ,00 commercial private 0, , ,70 82

84 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks community 0, ,40 153,70 other land community 0, ,00 220,00 other land community 0, ,00 119,00 other land state 0, ,00 objects , community 0, ,00 216,60 other land state 0, ,00 objects , community 0, ,00 742,00 other land private 0, , ,40 private 0, , , community 0, ,20 0,00 general use community 1, ,30 67,20 other land other agricult. community 48, , ,00 Land community 0,08 800,00 other land , community 0, , ,40 objects state 0, ,00 water river ,00 «bread factory» OJSC «chees factory» OJSC 83

85 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage private 0, , ,30 commercial community 0, , ,40 commercial unidentified , community 0, , ,00 other land community 0, , ,40 other land community 0, , ,70 other land community 4, , ,00 other land community 0,08 800, ,00 other land private 0, , ,60 commercial private 0,002 20, ,00 commercial community 0,002 20, ,80 other land private 0, , , private 0, , , state 0, , ,00 water river private 0,08 800,00 19,30 Remarks 84

86 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks community 0, ,00 community 0, ,00 private 0, ,00 community 0, ,20 community 0, ,00 community 0, ,00 private 0, ,00 state 0, ,00 unidentified - - community 0, ,70 private 0, ,00 community 0, ,00 private 0, ,00 community 0, ,00 12,80 3,40 7,00 1,90 73,80 146,00 2,10 70,00 0,00 334,00 58,60 0,00 248,00 95,80 mixed construction mixed construction other land other land objects - - other land general use other land 85

87 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage community 0, , ,60 commercial private 0, , , private 0, , , community 4, , ,00 other land unidentified , unidentified , Akori community 0, , ,80 arable 195 Aygehat 0536-??? unidentified - - 0, Aygehat unidentified - - 0, Aygehat unidentified - - 0, Aygehat no unidentified - - 0, transport, Aygehat state 0, , ,60 communication transport transport, Aygehat private 1, , ,00 communication energy transport, Aygehat state 0, , ,40 communication transport transport, Aygehat state 0, , ,30 communication transport Aygehat private 0, , ,80 Remarks 86

88 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Aygehat private 0, , ,00 Aygehat private 0, , ,60 Aygehat private 0, , ,50 Aygehat private 0, , ,00 Aygehat private 0, , ,30 Aygehat private 0, , , Aygehat unidentified - - 0, other agricult. Aygehat community 2, , ,00 Land transport, Aygehat state 0, ,00 transport ,00 communication Aygehat private 0, , , other agricult. Aygehat private 0, , ,00 Land transport, Haghpat state 1, ,00 transport ,00 communication 216 Haghpat unidentified - - 0, Haghpat private 0,06 600,00 50,50 commercial other agricult. Haghpat community 0, , ,00 Land 219 Haghpat unidentified - - 0, Remarks 87

89 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Haghpat private 3, , ,30 objects 221 Haghpat private 0, ,00 472,00 commercial Haghpat community 0, , ,00 Haghpat community 0, , ,00 objects Haghpat community 0, , ,70 other agricult. Haghpat community 0, , ,50 Land 226 Haghpat unidentified - - 0, other agricult. Haghpat community 0, , ,70 Land Haghpat state 1, , ,80 objects other agricult. Haghpat community 0, , ,00 Land other agricult. Haghpat community 0, , ,00 Land 231 Haghpat unidentified - - 0, Haghpat state 272, , ,00 forest forest Haghpat community 0, , ,30 objects other agricult. Haghpat community 0, , ,00 Land other agricult. Haghpat community 0, , ,00 Land Remarks «Chanshin» OJSC 88

90 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N 236 Community Haghpat (left) (right) Ownership status per (ha) community 1, ,00 Affected 300,00 Target Usage objects transport, Haghpat community 0, ,00 energy ,00 communication 238 Haghpat private 0, ,00 722,00 arable 239 Haghpat private 0, ,00 12,30 arable 240 Haghpat community 0, ,00 8,20 arable 241 Haghpat community 0, ,00 13,30 arable 242 Haghpat private 0, ,00 2,60 arable 243 Haghpat private 0, ,00 9,00 arable 244 Haghpat private 0,06 600,00 10,90 arable 245 Haghpat private 0, ,00 12,40 arable 246 Haghpat private 0, ,00 16,10 arable 247 Haghpat private 0, ,00 1,00 arable 248 Haghpat private 0, ,00 1,00 arable 249 Haghpat private 0, ,00 36,60 arable other agricult. Haghpat community 0, , ,00 Land 251 Haghpat private 0, ,00 2,00 arable 252 Haghpat private 0, ,00 1,00 arable 253 Haghpat private 0, ,00 1,00 arable 254 Haghpat private 0, ,00 1,00 arable 255 Haghpat private 0, ,00 4,10 arable 256 Haghpat private 0, ,00 6,50 arable Remarks 89

91 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks 257 Haghpat private 0, ,00 6,00 arable 258 Haghpat private 0, ,00 20,40 arable 259 Haghpat private 0, ,00 2,60 arable 260 Haghpat private 0, ,00 1,00 arable Haghpat private 0, , ,00 transport, Haghpat state 0, ,00 energy ,00 communication other agricult. Haghpat community 0,08 800, ,00 Land other agricult. Haghpat community 0, , ,00 Land other agricult. Haghpat community 0, , ,70 Land other agricult. Haghpat community 0, , ,00 Land other agricult. Haghpat community 0, , ,00 Land 268 Haghpat community 0, ,80 53,60 arable other agricult. Haghpat community 1, , ,00 Land 270 Haghpat unidentified - - 0, other agricult. Haghpat community 0, , ,00 Land Haghpat state 5, , ,30 objects 273 Haghpat state 0, ,00 1,00 forest forest 90

92 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat community 2, ,00 private 0, ,00 community 0, ,00 community 0, ,80 community 0, ,00 community 0, ,00 private 0, ,00 state 5, ,00 private 0, ,00 private 0, ,00 unidentified - - community 0, ,00 community 0, ,00 community 0, ,00 16,60 55,30 140,00 338,40 146,50 222,20 25,00 0,00 382,00 90,00 0,00 100,00 721,00 67,30 transport, communication other agricult. Land other agricult. Land commercial transport objects objects - - other agricult. Land other agricult. Land arable 91

93 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community Haghpat Haghpat Haghpat (left) Haghpat Haghpat 0007 (right) Ownership status per (ha) community 0, ,00 community 5, ,00 community 0, ,80 state 1, ,00 community 0, ,00 Affected 190, ,00 0,00 205,60 396,00 Target Usage other agricult. Land other agricult. Land other agricult. Land objects other agricult. Land Haghpat state 0, ,00 objects , Haghpat state 2, ,00 forest forest , Haghpat private 0, , ,00 objects other agricult. Haghpat community 0, , ,50 Land other agricult. Haghpat community 0, , ,00 Land Haghpat private 0, , ,00 objects other agricult. Haghpat community 0, , ,00 Land Haghpat private 0, ,00 commercial , Haghpat community 0, ,00 214,70 Remarks «Tumanyan chanshin» OJSC «Tumanyan chanshin» OJSC 92

94 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community Haghpat Haghpat Haghpat Haghpat Haghpat Haghpat (left) (right) Ownership status per (ha) Affected Target Usage private 0, ,00 community 2, ,00 community 0, ,00 community 0, ,00 community 0, ,40 private 0, ,00 237, , ,40 175,70 306,00 74,00 commercial other agricult. Land other agricult. Land other agricult. Land other agricult. Land objects Haghpat transport, state 0, ,00 transport ,40 communication 309 Neghots private 0, , ,00 arable 310 Neghots unidentified - - 0, Neghots unidentified - - 0, transport, Neghots community 0, ,00 cemetry ,00 communication 313 Neghots community 0, ,00 151,50 other land 314 Neghots community 0, ,00 554,00 other land Neghots private 0, , ,00 Neghots private 0, , , Neghots community 0, ,00 52,40 other land Remarks 93

95 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks 318 Neghots community 0, , ,00 other land 319 Neghots community 0, ,00 142,00 other land Neghots private 0, , ,80 Neghots private 0, , ,10 Neghots private 0, , ,00 Neghots private 0, , ,70 Neghots private 0, , ,70 Neghots private 0, , , Neghots Neghots Neghots Neghots Neghots Neghots Neghots community 0, ,00 private 0, ,20 private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 16,00 613,60 344,00 606,70 33,20 317,40 660,70 transport, communication transport 94

96 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Neghots private 0, , , Neghots community 0, ,00 940,00 other land other agricult. Neghots community 8, , ,30 Land Neghots private 2, , ,00 objects Neghots community 2, , ,00 Neghots private 3, , ,60 objects 339 Neghots community 0, , ,40 other land Neghots private 0, , ,70 other agricult. Neghots community 0, , ,40 Land 342 Neghots state 49, , ,00 forest forest 343 Neghots private 0,04 400,00 60,20 pasture 344 Neghots private 0, ,00 13,20 grassland 345 Neghots community 14, , ,00 pasture Neghots private 1, , ,00 other land Neghots unidentified , Neghots state 0, , ,00 water river Neghots unidentified , Remarks 95

97 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks community 0, ,00 21,80 other land community 0, ,00 123,00 other land community 0, ,00 23,40 other land community 0, ,00 3,30 other land community 0, ,00 21,50 other land private 0, , , community 0, ,00 8,00 other land community 0, ,00 1,00 other land community 0, ,00 3,60 other land community 0, ,00 111,00 other land community 0, ,00 120,40 other land community 0, ,00 3,00 other land community 0, ,00 2,50 other land community 0, ,00 5,00 other land private 0, , , community 0, ,00 1,00 other land community 0, ,00 1,20 other land community 0, ,00 1,00 other land community 0, ,10 180,20 other land community 0, ,00 44,40 other land community 0, ,70 120,40 other land community 0, ,00 27,70 other land 96

98 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks community 0, ,00 16,30 other land community 0, ,00 1,00 other land community 0, ,00 76,00 other land community 0, ,00 109,60 other land community 0, ,00 10,50 other land community 0, ,00 2,00 other land community 0, ,00 2,00 other land community 0, ,00 5,90 other land community 0, ,00 22,60 other land community 0, ,00 5,70 other land community 0, ,00 3,00 other land community 0, ,20 49,00 other land community 0, ,00 210,00 other land community 0, ,00 4,00 other land community 1, ,80 200,00 other land community 0, ,00 73,50 other land community 0, ,80 280,00 other land community 0, ,50 75,00 other land community 0, ,00 70,00 other land community 0, ,00 35,00 other land community 0,05 500,00 2,00 other land community 0, ,90 4,00 other land community 0, ,00 179,90 other land 97

99 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks community 0, ,00 6,60 other land community 0, ,00 143,00 other land community 0, ,00 92,60 other land community 0, ,00 3,00 other land community 0, ,00 4,00 other land community 0, ,00 426,50 other land community 1, ,00 130,00 other land unidentified - - 0, community 0, , ,70 other land community 0, , ,80 other land community 0, , ,00 other land community 0, , ,00 other land community 0, , ,20 other land community 0, , ,80 other land community 0, , ,70 other land community 0, , ,00 other land private 0, , , community 0, ,00 0,00 general use 98

100 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks community 0, ,00 community 0, ,00 community 0, ,20 community 0, ,00 community 0, ,00 community 0, ,00 community 0, ,90 community 0, ,00 community 0, ,00 community 1, ,00 community 0, ,00 community 0, ,00 private 0, ,00 community 0, ,00 831,60 411,40 0,00 175,40 86,00 313,00 743,00 46,00 16, ,00 471,50 122,70 337,50 3,00 general use other land general use commercial other land commercial other land commercial commercial other land other land other land commercial 99

101 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage community 0, , ,10 other land community 0, , ,40 other land community 0, , ,30 other land community 1, , ,50 other land private 0, , ,00 commercial private 0, , ,30 commercial private 0, , , community 0, , ,70 other land community 0, , ,40 other land community 7, , ,00 other land private 0, , , community 0, , ,80 other land private 0, , , community 0, , ,80 other land private 0, ,00 63,30 Remarks 100

102 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks state 8, ,00 private 0, ,00 private 0, ,00 community 0, ,00 community 0, ,00 private 0, ,00 community 0, ,00 private 0, ,00 community 0, ,60 private 0,09 900,00 private 0, ,80 community 0, ,00 private 0, ,00 private 0, , ,00 695,30 179,40 290,10 291,80 92,00 289,20 96, ,00 121,30 59,40 55,50 207,50 163,30 other agricult. Land other land other land other land other land commercial 101

103 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage community 0,03 300,00 other land , private 0, , , private 0, , , private 0, , , private 0, , , private 0, , , private 0, , , community 0, ,00 other land , private 0, , , private 0, , , private 0, , , private 0, , , private 0, , , private 0, , , private 0, ,00 7,70 Remarks 102

104 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 community 0, ,00 private 0, ,00 unidentified - - unidentified - - private 0, ,00 private 0, ,00 community 0, ,00 private 0, ,00 280,70 229,50 181,80 64,60 227, ,00 14,50 3,70 0,00 0,00 807,00 251,00 350,00 419,70 other land other land 103

105 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community Karkop (left) (right) Ownership status per (ha) private 0,08 800,00 community 0, ,00 private 0, ,00 state 4, ,00 Affected 199,30 507, ,00 0,00 Target water Usage other land pasture other agricult. Shnogh community 2, , ,00 Land 490 Shnogh community 0, ,00 0,00 general use 491 Shnogh private 0, ,50 1,00 commercial 492 Shnogh private 0, ,05 13,00 commercial 493 Shnogh unidentified - - 0, Shnogh private 0, ,30 1,00 commercial 495 Shnogh private 0, ,00 1,00 commercial 496 Shnogh community 0, ,00 13,00 other land 497 Shnogh community 1, , ,70 other land 498 Shnogh community 64, ,00 413,80 pasture Shnogh private 0, , ,00 other agricult. Shnogh community 0, , ,00 Land 501 Shnogh private 0, ,00 237,00 arable 502 Shnogh private 0, ,00 426,00 arable 503 Shnogh unidentified - - 0, river Remarks 104

106 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 private 1, ,00 community 0, ,00 community 0, ,00 community 0, ,00 private 0, ,00 community 0, ,00 private 0, ,70 community 0, ,00 98,00 3,00 1,00 154,00 340,60 135,60 951,00 363,00 219, ,00 254,80 450,00 65,00 339,00 arable orchard orchard arable arable arable arable arable arable arable orchard arable grassland arable 105

107 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh private 0, ,00 unidentified - - private 0, ,00 unidentified - - private 0, ,00 private 0, ,90 private 0,05 500,00 private 0, ,00 private 0, ,00 state 0, ,00 private 0, ,00 private 0, ,00 private 0, ,00 unidentified ,80 0,00 175,20 0,00 5,00 7,00 6,90 8,00 22,00 35,00 207,10 169,30 56,10 0,00 orchard - - arable - - orchard orchard orchard orchard orchard objects orchard orchard arable - - North Electric CJSC 106

108 APPENDIX 1: DETAILED LIST OF AFFECTED LANDS PER COMMUNITIES N Community (left) (right) Ownership status per (ha) Affected Target Usage Remarks Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh Shnogh community 0, ,00 community 0, ,00 community 0, ,00 private 0, ,00 community 0, ,00 community 0, ,00 private 0, ,00 community 0, ,20 private 0, ,00 private 0, ,00 private 0, ,20 133,60 23,30 327,50 7,50 836,70 7,30 29,60 20,80 20,70 4,00 18,10 other agricult. Land objects other agricult. Land arable other agricult. Land other land other land commercial 107

109 APPENDIX 2: MINUTES OF PUBLIC CONSULTATION MEETING The consultation meeting was held with representatives of regional and local community authorities held in Lori Marzpetaran office with participation of representatives of TPIU and ADB social safeguards and resettlement consultant. During the consultation meeting in Lori Marzpetaran, the aims of the project, stages of LAR process, as well as eligibility and entitlements were presented to the audience. Special information leaflet was distributed to the participants on LAR-related principles and procedures (see Appendix 3). The representatives of Transport PIU and ADB consultant participated in the consultation process are detailed below: Shushan Kurkchiyan- Social and Environment Specialist, TPIU Ruben Avagyan- Engineer, TPIU Sona Poghosyan - Social safeguards and Resettlement Consultant, ADB Social safeguards and Resettlement Consultant of ADB introduced the project to the participants and the the consultation in the overall project context. The other experts chipped in during the consultation as and when queries came up related to their respective area. The Agenda of the Consultations During the meeting ADB social safeguards and resettlement consultant has presented the following LAR related topics presented also in the Information leaflet: Introduction on Project financing and implementation Expected project LAR impact The aim of preparation of draft LARP Main phases of LARP preparation, implementation and approval (including the start of civil works) The content of draft LARP Types of losses subject for compensation under the Project LARP Groups of APs eligible for compensation Main stages of LARP finalization and approval Besides the presented topics, also the preliminary impact data was presented to the community representatives indicating that this is very estimate picture and should be verified/updated based on cadastral data and DMS. Taking into account the preliminary impact data on affected community lands, the question was raised by ADB consultant regarding the possible ways of acquisition of community owned lands for the Project, particularly it was presented that usually the affected community owned lands are valuated and compensated to communities on the same way as for the private owned lands, however, in some cases, when the average affected of community lands is minor, the communities may be ready to donate that lands to the Project without compensation. In response to the raised question the mayor of Vanadzor community pointed out, that the proposed Project is very important for all communities, and in this situation if the impacts are not so big, communities are ready to donate needed lands for the Project, however, one of the participants pointed out that in case of application of such procedure the 108

110 existed land recourses of each community should be taken into account, as well as the possibility of leasing of that lands. It was summarized that this issue will be additionally discussed with communities and MOTC during the finalization of LARP, when the final verified impact data will be available. Besides the LAR-related issues, several issues related to the design and construction of the road have been discussed during the meeting. The key issues discussed, questions raised during the meeting are presented in the table below. No Question/Concern Answer 1 What are the main technical norms of the design and the width of purposed road? 2 The deputy head of marz interested if the bridges and tunnels will be (re)constructed by the same Contractor as the all road? 3 The head of Dzoraget community concerned about the access of road during the construction period, particularity the issue is that one bridge and tunnel are located near the community which are used by children to go to school to the other part of community. If the bridge and tunnel will be closed during the construction, then the two parts of community cannot be communicated. 4 The head of Vahagnadzor community mentioned that there are several old houses built on 1940s, which are located near the road and can be affected by the design or their accesses can be affected. He conceded on the possibility of compensation of that houses in case if they will be affected taking into account that those houses are mainly illegal/nonregistered. 5 The head of Vahagnadzor community also interested in the protection mechanisms planned in the road design. 6 One of the participants suggested to provide communities information regarding the sections of the road where the construction will be started firstly. The engineer of TPIU R.Avagyan provided detailed information on the technical requirements of the Project design; particularly he mentioned that the road will be in compliance with all standards of 3 rd category of roads, besides two sections where it will be 4rd category, because of difficult technical availability. He presented the main norms of 3 rd and 4rd category roads. He also mentioned that the main difficulties related to the construction are related to the rehabilitation of 3 tunnels. Besides, 3 bridges will be demolished and newly constructed. The engineer of TPIU R.Avagyan mentioned that all construction works will be implemented by the same Contractor, but also subcontractors can be hired. The engineer of TPIU Ruben Sargsyan informed that the TPIU is aware on this issue and now discussed the possible way of solution for the raised issue. ADB consultant S.Poghosyan said that according to the ADB SPS requirements and Project LAR principles all affected and non- buildings are subject for compensation on replacement cost. Moreover, if the affected building is and should be relocated by the Project then the AP who constructed that house will be compensated regardless his/her legal/registration status. The engineer of TPIU Ruben Sargsyan mentioned that all such solutions are considered in the design; particularly he informed that new retaining walls will be constructed where needed. The engineer of TPIU R.Avagyan said that the tender for the Contractor haven t been announced yet, and the suggested information will be available when the Contractor is mobilized. 109

111 7 One of the community heads suggested to provide them the full impact data for each community to understand the situation. ADB consultant S.Poghosyan informed that the all preliminary impact data per communities will be presented and summarized in the draft LARP which is now in the process of preparation. She mentioned that the draft LARP will be disclosed to the communities, so they will be aware of all impact details. 8 The deputy head of marz encouraged the heads of communities to work closely with the population and possible APs during the LAR-related activities. He suggested to provide the communities analyzed impact data, as well as cadastral issues to be able to initiate needed actions. 9 ADB consultant S.Poghosyan informed the participants about the cut-off date for the Project and encouraged the community heads to monitor the process of construction of new structures within the and near the road. ADB consultant S.Poghosyan mentioned that during the draft LARP preparation process the communities have been very supportive regarding the provision of needed data, she pointed out the important role of communities and further cooperation with communities during the LARP finalization and implementation which will allow effectively implement the Project without delays. She mentioned that analyzed impact data, as well as cadastral issues will be summarized in draft LARP and available for all communities. The deputy head of marz mentioned that this one of the main functions of community heads. Photos from public consultations 110

112 Attendance list of participants 111