Land Acquisition and Resettlement Plan. Uzbekistan: Water Supply and Sanitation Services

Transcription

1 Supplementary Appendix D-2 Land Acquisition and Resettlement Plan Short Land Acquisition and Resettlement Plan for Rishtan City Water Supply System Document Stage: Draft Project Number: March 2010 Uzbekistan: Water Supply and Sanitation Services Prepared by the Uzbekistan Communal Services Agency of the Republic of Uzbekistan for the Asian Development Bank (ADB). The resettlement document is that 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.

2 EXECUTIVE SUMMARY In 2009, the Government of the Republic of Uzbekistan (the Government) entered into a Financing Framework Agreement (FFA) with the Asian Development Bank (ADB) for a multitranche financing facility (MFF) to finance the Water Supply and Sanitation Services Investment Program (the Investment Program), in an aggregated amount not exceeding $300 million from ADB's Special Funds resources. On 29 September 2009 the ADB Board of Directors approved the MFF Program with the Uzbekistan Communal Services Agency or "Uzkommunhizmat" (UCSA) as the Executing Agency (EA). For Tranche 2, the Government requested ADB to finance rehabilitation and expansion of water supply and wastewater management systems in Andijan, Fergana, Kokand, and Margilan cities and water supply system in Rishtan city, which are priorities for development. 1 Immediate rehabilitation and/or reconstruction of water supply and sanitation (WSS) systems and development of vodokanals' operational capacity is needed to prevent the systems from further deterioration and provide acceptable WSS services to about 1.1 million residents in these cities. On 16 March 2010, the second Periodic Financing Request (PFR) was submitted to ADB for financing. Initial social assessment was conducted to identify social impacts of the proposed water supply subproject for Rishtan City. As a result, a Land Acquisition and Resettlement Plan (LARP) was prepared to mitigate impact of the land acquisition and permanent loss of assets and property caused by the construction of two new water wells and other structures to be located at the land owned by Tayerlovsavdo Joint Stock Company located at Tekstilnaya St., Rishtan City. The objectives of the proposed LARP are: (i) to identify the project impact on the community in terms of loss of assets, livelihood and income; (ii) to outline measures to mitigate the adverse impact; and (iii) provide an estimate for budgetary allocation for compensation of loss of assets and resettlement benefits. And if required, for loss of income & livelihood, according to principles and guidelines provided in the entitlement matrix prepared for UZB: WSS Services Investment Program. The proposed water supply subproject includes: (i) (ii) (iii) (iv) (v) Rehabilitate seven existing wells at Sohk River well field, to supply 10,000m 3 /day of water Construct new bulk water supply unit, including new pumps and a chlorination system; Construct 16.5 kms of new water transmission main with take offs for four villages along the route, from the well field to WDU-2 Install two new wells at existing Topvaldiev site, with capacity of 2,900 m 3 /day; Rehabilitate existing WDU-1 and WDU-2, including the storage reservoirs structures and buildings, and replace all mechanical, electrical and control systems 1 Resolutions of the President of the Republic of Uzbekistan ПП-890 as of , ПП-1239 as of , see Appendix 5.

3 (vi) (vii) Replace 33.8 kms of corroded and leaking pipe in the distribution system Construct 20 kms of new distribution lines to expand water system coverage from 70% 100% of the 2025 population of 38,000. Construction and rehabilitation of existing wells, reservoirs and water distribution lines will be at the same place allocated to the district vodokanal and/or right-of way of the Khokimiyat city, therefore there is no requirement for additional land acquisition and will not have any impact due to land acquisition and resettlement issues. The subproject will acquire around 1.2 hectares of land from Tayerlovsavdo JSC (TJSC) which is owned by 17 co-owners with 28 employees. The total assets of the TJSC are around SUM500 million or $333,333. The 1.2 hectares affected land to be acquired by the subproject will be given back to the Khokimiyat of Rishtan City. There are buildings and structures that will be lost by the enterprise, but some of these are old and are not being used except for the cowshed and they are requesting compensation of SUM58,000,000 ($39,000) which is around 11.6% of the total assets and properties of the TJSC. The total income per household of the 16 co-owners shows that 62% of the household are at the poverty line. Thus, of the 16 affected coowners of the TJSC, ten affected co-owners will receive an income/livelihood allowance support of SUM37,600 per affected person for 3 months. For the compensation for permanent loss of land, plots of equal value/productivity of plots lost to be provided by the Khokimiyat as per requested by the TJSC. A LARP budget was prepared to cover compensation for loss of building and structures and cover resettlement operation and management including training of representatives of vodokanal, makhalla and affected persons on land acquisition and resettlement in the amount of SUM72 million.

4 ABBREVIATIONS ADB Asian Development Bank AF Affected Family AP Affected Person DMS Detailed Measurement Survey EA Executing Agency EMA - External Monitoring Agency FY Fiscal year GOU Government of Uzbekistan GRC Grievance Redress Committee IA Implementing Agency IMA Internal Monitoring Agency IP Indigenous People LARF Land Acquisition and Resettlement Framework LARP Land Acquisition and Resettlement Plan MFF Multi-tranche Financial Facility NGO Non-Government Organization PC project consultants PFR - Periodical Financial Request PLARC Provincial Land Acquisition and Resettlement Commission PPMU Program Preparation and Management Unit SCLRGCSC State Committee on Land Resources, Geodesy, Cartography and State cadastre SESU Social and Environment Sub-Unit NOTE (i) In this report, "$" refers to US dollars. 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.

5 DEFINITION OF TERMS Beneficiary Community: All persons and households situated within the government-owned or acquired property, who voluntarily seek to avail and be part of the Program and represented by a community association that is duly recognized by the community residents, accredited by the local government, and legally registered with appropriate institutions/competent authorities. Compensation: Payment in cash or in kind of the replacement cost of the acquired assets. Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected persons, depending on the nature of their losses, to restore their economic and social base. Cut-off-date: shall conform to the date of commencement of the affected persons (AP) census in the specified area. Land Acquisition: The process whereby a government agency compulsorily alienate all or part of the land a person owns or possesses and transfer the ownership and possession to the government agency for public purpose in return for a consideration. Affected Person/People (AP): Any person affected by program-related changes in the use of land, water, natural resources, or income losses. APs include those having losses as described in Table 2, the Entitlement Matrix which includes both titled and non-titled persons experiencing resettlement impacts due to the Program. Affected Family: All members of a household, residing under one roof and operating as a single economic unit, who are adversely affected by the program or any of its components. It may consist of a single nuclear family or an extended family group. Rehabilitation: Compensatory measures provided under the Land Acquisition and Resettlement Framework other than payment of the replacement cost of acquired assets. Replacement Value: The amount required for the Affected Household to replace/reconstruct the assets acquired by the government agency through purchase in the open market. See Table 2. Entitlement Matrix in this document. Resettlement: All measures taken to mitigate any and all adverse impacts of the program on AP s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation. Below Poverty Line (BPL) Households: There is no designated sum determined by the Government of Uzbekistan to define a BPL household. For the purpose of this Project, the World Bank definition of poverty line for Central Asia ( ) of $2.15 per day per person or SUM 3,225 per day per person will be used. Minimum Wage Rate: The official minimum wage rate declared is SUM 37,680 per person a month, will be used for providing assistance allowance for 3 months for affected persons belonging to the vulnerable group and those affected persons by the project by more 10% of their assets and properties. Vulnerable Households: Households headed by women, having disabled persons, ethnic minorities, elderly persons living alone and BPL households

6 CONTENTS Page I. INTRODUCTION 1 II. SUBPROJECT DETAILS 1 III DESCRIPTION OF IMPACTS 3 A. Project Area 3 B. LAR Implications Error! Bookmark not defined. C. Socio-economic Profile of Affected Households 6 D. Indigenous People Error! Bookmark not defined. IV. OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS 9 V. COMPENSATION AND ENTITLEMENT 13 A. Compensation for the Affected Properties 13 B. Gender Issues 13 VI. PUBLIC PARTICIPATION AND CONSULTATION 13 VII. ORGANIZATIONAL SET-UP 13 VIII. GRIEVANCE AND REDRESS MECHANISM 15 IX. TRAINING IN LARP IMPLEMENTATION 16 X. COST ESTIMATES AND BUDGETS 16 XI. IMPLEMENTATION SCHEDULE 17 XII. MONITORING AND EVALUATION 19 ANNEX 1 20

7 1 I. INTRODUCTION 1. The Uzbekistan Water Supply and Sanitation (WSS) Services Improvement Investment Program has been initiated with a view to improving living standard in urban areas with the help of upgrading water supply and sanitation services which, till now, is less than satisfactory. Access to safe water and sanitation facilities have direct impact on poverty reduction and welfare improvement strategy. Apart from investment in physical infrastructure the program also proposes for long term capacity building and institutional strengthening of the executing agency and staff training. 2. This short Land Acquisition and Resettlement Plan (LARP) was prepared to mitigate impact of the land acquisition and permanent loss of assets and property caused by the construction of a new water intake for the Rishtan City subproject. For the reconstruction and rehabilitation of existing wells, reservoir and pipelines, these will be at the same location and/or within the right-of-way of the Khokimiyat city and no land acquisition will be needed. There will be, however, some disturbances during construction stage, e.g. excavation of the road for the replacement of water pipes which might cause traffic disturbances, disturbance to access to hospitals, schools and residences and some air and noise pollution. These disturbances will be covered in the Environmental Management Plan. 3. The LARP has been prepared based on census of the affected household/enterprise; city socio-economic survey; and consultations with the local authorities including the vodokanal and the affected persons/enterprise. Identification of the affected household/enterprise has been based on the preliminary engineering design of the subproject. 4. The objectives of the proposed LARP are as follows: (i) identify the project impact on the community in terms of loss of assets, livelihood and income; (ii) outline measures to mitigate the adverse impact; and (iii) provide an estimate for budgetary allocation for compensation of loss of assets and resettlement benefits. And if required, for loss of income & livelihood, according to principles and guidelines provided in the entitlement matrix prepared for UZB: WSS Services Improvement Investment Program. The primary purpose of this short LARP is to identify steps to restore the living standards of the affected persons (APs) to the pre-project situation within a short period of time without any disruptions in their own economic and social environment II. SUBPROJECT DETAILS 5. The proposed subproject includes: (i) Rehabilitate 7 existing wells at Sohk River well field, to supply 10,000 m 3 /day of water (ii) Construct new bulk water supply unit, including new pumps and a chlorination system; (iii) Construct 16.5 kms of new water transmission main with take offs for 4 villages along the route, from the well field to WDU-2 (iv) Install 2 new wells at existing Topvaldiev site, with capacity of 2,900 m 3 /day; (v) Rehabilitate existing WDU-2, including the storage reservoirs structures and buildings, and replace all mechanical, electrical and control systems (vi) Replace 33.8 kms of corroded and leaking pipe in the distribution system (vii) Construct 20 kms of new distribution lines to expand water system coverage from 70% 100% of the 2025 population of 38, The assessment of the above works from the land and other property acquisition as well as resettlement standpoint shows the following:

8 2 (i) (ii) construction and rehabilitation of existing wells, reservoirs and water distribution lines (points i, ii, iii, v, vi, and vii in the paragraph 5) will be at the same place allocated to the district vodokanal and/or right-of way of the Khokimiyat city, therefore there is no requirement for additional land acquisition and will not have any impact due to land acquisition and resettlement issues. construction of two new water wells at Topvoldiev site will be on a land used by an Agricultural Joint Stock Company on temporary bases which will require land acquisition of 1.2 hectares and compensation for losses of permanent buildings and structures. The land to be acquired will not affect the income of the owners and of the workers since the land to be acquired is an unused space and that the structures to be affected e.g. administration building is no longer being used by the enterprise. According to the Chairperson of the JSC, the 0.8 hectares is sufficient for their company s business operations and that the compensation for the lost structures will be used as additional capital to their enterprise. Figure 1: Layout of Rishtan Water Supply System and Affected Enterprise/Property

9 3 III. DESCRIPTION OF IMPACTS A. Project Area 7. Assessment of the Rishtan s existing water supply system revealed that of the 34,000 city population, only 21,000 (62%) is being served because of various problems such as: storage reservoir is in poor condition, most of the pumps are not working, the chlorinator is not working, transmission pipelines are old and leaking and are causing contamination, not all households have water meters and if they have, meters are not working and water pressure is low. 8. The subproject will entail construction of 2 new water wells on a 1.2 hectares private land located at Tekstilnaya Street, Rishtan City, owned by Tayerlovsavdo Joint Stock Company and will require land acquisition. However, for the construction and rehabilitation of existing wells, reservoirs and distribution lines, these will be undertaken within existing locations and existing alignment, mostly under the road or within right-of-way of Khokimiyat city jurisdiction. 9. The census and cadastral survey of the affected enterprise was conducted on 9 February A follow-up meeting with the deputy Mayor of the Khokimiyat City was undertaken on 23 February The day the census was completed, that is, 9 February 2010 is considered as census cut-off-date. No person, building, any structures or cause, any kind of land use change, after the census cut-off-date, will be considered eligible for resettlement assistance or compensation. However, since the basis for determining the affected persons/ households/enterprise is the preliminary engineering design, any changes during the detailed engineering design should consider changes also of households and assets and properties affected which were not identified earlier. Hence, the LARP should be reviewed and updated based on the changes, if needed. B. LAR Implications 10. Due to the extensive deterioration of the existing system only the most urgent and major components can be replaced under this subproject/investment. One of these is the construction of two new water wells located in a 2 hectares land, used for trading of agricultural produce (vegetable) and livestock, owned and operated by the Tayerlovsavdo Joint Stock Company. The subproject will acquire around 1.2 hectares of land from this enterprise. The Tayerlovsavdo JSC (TJSC) is owned by 17 owners composed of 16 persons and 1 Joint Stock Company called Matlubotsavdo. The TJSC employs 28 persons. The 16 co-owners of Tayerlovsavdo JSC are composed of 13 Tajiks and 3 Uzbeks. The total assets of the TJSC are around SUM500,000,000 (US$ 333,333). The 1.2 hectares affected land to be acquired by the subproject will be given back to the Khokimiyat of Rishtan City. There are buildings and structures that will be lost by the enterprise, but some of these are old and are not being used except for the cowshed and they are requesting compensation of SUM58,000,000 (US$ 39,000) which is around 11.6% of the total assets and properties of the TJSC. According to the Chairperson of the TJSC, losing these buildings and structures will not affect negatively their enterprise s income since most of the buildings and structures they are using for their business are located at the 0.8 hectares of land that will remain with them. The compensation to be paid for the loss of buildings and structures located at the 1.2 hectares will be used to add capital to their almost bankrupt enterprise. 11. For the reconstruction and rehabilitation of existing wells, reservoir and pipelines, these will be laid following the road alignment (under the road) and will not require land acquisition nor causing any resettlement impacts.

10 4 Figure 2: Location of the Affected Enterprise The joint stock company (outlined in yellow) is located along the roadside of the suburb part of the city. In the picture from the Google Earth, one can see assets of the JSC.

11 5 Figure 3: Photos from the affected land Not all JSC s land is used under structure Empty and unused affected structure

12 6 12. The total number of affected persons are 17 co-owners and 28 employed staff of the TJSC. The impact of the loss of land and structures overall the total assets and properties of the enterprise is 11.6%. This loss however is not viewed as a negative impact by the enterprise, rather is an opportunity because the amount of compensation for the losses will be used to recapitalize the enterprise s assets and no employee will lose their jobs 13. The information on type and extent of loss as well as use of the lost properties was collected during the census. Table 1 shows the extent of loss which includes the land, administration building and other structures which are used for buying, storing and trading vegetables and other farm products including a cow shed will be affected by the subproject. Compensation for the loss of structures was prepared by the Cadastral Office and is based on market price. Table 1. Affected Assets Sl. Type of loss Area (m 2 ) Unit Rate Current Market Price (SUM) 1 Non-agricultural Land (leased from government) 12, Building and Structures Refer to Appendix 4 for the unit rates of the various building materials used+labor cost for each structure - a. Fruit Drying Storage House ,386,405 b. Shed # ,124,707 c. Shed # ,291 d. Shed # ,423,170 e. Scale Room ,796 f. Storage House ,040,442 g. Shed # ,974,130 h. Toile ,026 i. Fence 1,849,299 j. Gate 412,268 k. Asphalt 7,991,431 l. Water basin for washing vegetables/fruits # ,495 m. Water basin for washing vegetables/fruits # ,495 n. cost of labor for moving weighing scale 3,000,000 3 Trees 0 0 Total SUM61,491,955 Source: Census & Cadastral survey, February, C. Socio-economic Profile of Affected Households 14. An initial LAR screening and census of the affected enterprise was carried out in February The Table 2 provides a profile of the 28 staff of the Joint Stock Enterprise that might be affected by the subproject: Table 2: Summary Profile of the Affected Employees Characteristics Units A. Affected Owners Total Affected Owners 17 (16 persons+1 JSC) Number and Percentage of female owners to total 5 (31%) owners Number and Percentage of male owners to total 11 (69%) owners B. Affected Employees Total Affected Persons/Employees 28 Number and Percentage of female to total employed 9 women (32%)

13 7 Characteristics Units Positions of employed female in the enterprise All workers Percentage of male to total employed 19 male ( 68%) Positions of employed male in the enterprise 7 administrative positions; 12 workers Source: Census & socioeconomic survey, February Distribution by age and gender of TJSC s Affected Households (Table 3) shows that 44% are young and dependent; 45% are of working age and 11% are mostly pensioners/retired. There is not much difference between the genders from ages below However, for the retired/pensioners, there are more women. The pension received by retired persons is an additional income to the households. Table 3: Age and Gender of TJSC Co-owners Age Group Male Female Total 1 Less than and above Total Source: Census & socioeconomic survey, February Distribution by age and gender group of female and male employees of the Joint Stock Company (Table 4). The data shows that of the 28 staff, 17 (61%) employees belong to the age range of years old. This age group is young and would be the most productive among the other age groups. In terms of age and gender, 6 (67%) are females belonging to the young and highly productive group and 11 (58%) are males belonging to the young and highly productive group. Table 4: Distribution of Affected Employees by Age and Gender Age-Group Male Female Total 1 Less than and above Total* Source: Census & socioeconomic survey, February Educational level of the 16 co-owners affected households and 28 employees of the Joint Stock Company (Table 5) show that 6% have achieved university level; 32% have achieved college level; 27% complete secondary level and 35% have general secondary level. In terms of gender distribution there is not much difference between genders 52% males are educated and 48% of the females are educated. All of the co-owners households and the employees of the TJSC have attained education.

14 8 Table 5: Educational Status By Gender of Joint Stock Company Sl. Educational level Male Female Total 1 General secondary (7-9 grade) Complete secondary (10-11 grade) Secondary vocational (coll / lyceum College University / PG Total Source: Census & socioeconomic survey, February Based on the census conducted, Table 6 shows that the Joint Stock Company is owned by 17 persons. Of these 17 persons, 8 are outsiders and not employed by the Enterprise/Company and nine are employed by the Company. Of the co-owners, seemingly, seven of them occupy the high positions in the company and all of them are male. Only 9 females are employed by the Company and they hold the lowest position. Table 6: Gender Distribution by Position Position Total Male Female Owners Total Number of Staff 28 Co-owners from Staff 9 General Director 1 1 Directors 2 2 Chief Accountant 1 1 Senior Accountant 2 2 Economist 1 1 Workers Total Table 7 shows the income levels by gender of the affected co-owners, that of the 16 households, 3 females are not employed; and that there are more males receiving higher income than the female, i.e. 75% of the female have income levels from 0 250,000 whereas the 56% of the males have income levels from 251,000-above. Table 7: Income Levels by Gender of Affected Co-Owners of TJSC Income Range Male Female 0 100, (3 not employed) 101, , , , , , ,000 above Total income per household of the 16 co-owners combining female and male incomes (Table 8) show that 62% of the household are at the poverty line (as defined by the WB $ 2.15 per day or SUM96,750 per month per capita). The average number of household members is 6.3. If the SUM96,750 per capita per month is multiplied by six members, a household should at least have an income of SUM580,500 per month to be above the poverty line. Of the 16 affected co-

15 9 owners of the TJSC, ten affected co-owners households will receive an income support of SUM37,600 per affected person for 3 months as income support. Table 8: Income Level of Affected Co-Owners Income Levels Number of Households % 0 100, , , , , , , ,000 above For the Employees of the TJSC, Table 9 shows there is no difference by gender on the monthly income, however, based on position and number of people employed by the Joint Stock Company, there are more males employed by the Company and the highest positions are all occupied by males who are receiving higher income. There are only nine female employees and they occupy the lowest position in the Company. Table 9: Income Structure By Gender and Position Per Month Position Gender Distribution Average Income per month SUM Male Female Male Female Administrative 7 200, ,000 Workers , ,000 Source: Census & socioeconomic survey, February D. Indigenous People 22. Ethnic groups in Rishtan City are mostly Uzbeks with some Tajiks, few Kyrgyz and others. There are no indigenous peoples groups affected by the subproject. IV. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS 23. There are no laws or legislation in Uzbekistan that specifically address matters related to involuntary resettlement (IR). Rather land acquisition is governed by the following laws and resolutions: (i) The Land Code; approved by the Law of the Republic of Uzbekistan from , taking the changes of into account. (ii) The Civil Code of Republic of Uzbekistan from 1996, taking the changes of into account. (iii) Law of the Republic of Uzbekistan on State Cadastre N171-II from (iv) (v) Law of the Republic of Uzbekistan on State land cadastre N666-I from г taking the changes of into account. Cabinet of Ministers Resolution on Approval of Regulation on the order of legalization of seizure and allocation of land plots for non-agricultural needs in the Republic of Uzbekistan No. 248, 27 May 1992.

16 10 (vi) (vii) (viii) (ix) Cabinet of Ministers Resolution on Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan 246 from Cabinet of Minister Resolution on Order of realization into private property of objects of trade and public services together with land plots, where they are located, and land plots into life inheritance tenure 126 from , taking the changes of CoM Resolution 202 from into account. Resolution of CoM On approval of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management 223 from Resolution of CoM On approval of the regulation on the order of identification of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management 282 from Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land (i.e. for cultivation, business, residence, etc). 25. ADB s Land Acquisition and Resettlement Framework and Policy state: (i) (ii) The following categories of affected persons will be entitled to compensation and/or rehabilitation benefits: a. Affected Persons (APs) losing irrespective of whether land is under valid legal rights or customary rights or without legal status. b. Tenants and sharecroppers (the workers working for a share of a crop) whether registered or not. c. Owners of buildings, crops, trees and other objects attached to the land. d. APs losing business or income/employment opportunities. APs and affected assets will be identified through a detailed survey/census or detailed measurement survey (DMS). The DMS end date will be the census cut-off date for compensation eligibility. APs settling in affected areas after this date will not be eligible for compensation. They will be given sufficient advance notice to vacate and dismantle the affected land/structures. Their dismantle structures will not be confiscated nor will they be fined or sanctioned. 26. Land use by the Joint Stock Company is legal based on the Land Code of Uzbekistan is concerned, provision for compensation for losses of assets and properties will be made in the short LARP as per LARF. 27. The census cut-off date is February 2010 has been considered as the cut-off-date for affected enterprise/persons for entitlement. The entitlement matrix has been prepared in accordance with the LARF of the program, for the affected people. People moving in the project area after the cut-off date will not be entitled to any assistance. Structures built in the proposed project area will not be entitled to compensation.

17 11 Table 10: Entitlement Matrix Loss type Specification Affected People Compensation Entitlements Permanent loss of Arable Land All land losses independent of impact severity Farmer/Titleholder Land for land compensation with plots of equal value/productivity to plots lost; or cash compensation at replacement cost with application of multiplying factors, considering real supply and demand, registration and transfer charges if any to be borne by the project: if the land plot is obtained at auction, then compensation of land purchase cost. Unaffected portions of a plot will also be compensated if they become unviable after impact occurs. Leaseholder (registered or not) Transfer of lease to other plots of equal value/productivity of plots lost, or Cash equivalent to the net income from the land calculated on the basis of the market value of annual production of affected land for the remaining lease years (up to maximum 10 years). Sharecroppers (registered or not) Cash compensation equal to market value of the lost harvest share once (temporary impact) or twice (permanent impact) Agricultural workers losing their contract Cash indemnity corresponding to their salary in cash and kind for the remaining part of the agricultural year/or contractual period. Non-titled cultivators 1 rehabilitation allowance equal to 1 year's net income from the affected land (in addition to lost crop compensation) for land use loss. Additional provisions for severe impacts (> 10% of land loss) Farmer/Titleholder Leaseholder Sharecroppers (registered or not) 1 severe impact allowance equal to the net income from annual crop production (inclusive of winter and summer crop in addition to standing crop compensation) and the waiving of taxes and fees 1 severe impact allowance equal to the net income from their annual share of harvest lost (additional to standard crop compensation) Non-titled land owners 1 severe impact allowance equal to the net annual income from the affected land (additional to standard crop compensation). cash compensation in amount of taxes and compulsory payments for 1 year Temporary Land Acquisition All APs (including those, who has right of use) Affected land/communal infrastructure will be restored or reconstructed to pre-project conditions. Rent shall be agreed between landowner and contractor equal to the revenue lost at market value (e.g. compensation for harvests lost at average yield/hectare). Payment of such compensation to be assured by the Project by the means of LA for temporal use Act Residential/ Commercial Land Titleholder Land for land compensation through provision of a plot comparable in value/location to the plot lost; or Cash compensation for affected land at full replacement cost with application of multiplying factors, considering real supply and demand,, registration and transfer costs, if any, to be borne by the project: if the land plot is obtained at auction, then compensation of land purchase cost

18 12 Loss type Specification Affected People Compensation Entitlements Non-titled land owners Provision of a free or leased plot in a Government resettlement area or a self-relocation allowance equal to 1 year at minimum salary: Houses Buildings and Structures Full/partial loss of structures owners (with/without house or building registration) Cash compensation at replacement rate for affected structure/fixed assets free of salvageable materials, depreciation and transaction costs. For partial impacts, full cash assistance to restore remaining structure. Cost of lost water and electricity connections will be included in the compensation. Tenant/Leaseholder Compensation of the lost incomes of tenancy of houses, buildings and structures at a rate of annual cost of rent Standing Crops Crops affected All APs (including non-titled land owners Cash compensation equivalent to the gross income from the crop computed as the market value of the total annual produce from affected land. To be paid both to landowners and tenants based on their specific sharecropping agreements. Trees Trees affected All APs (including non-titled land owners) Cash compensation shall reflect income replacement. Fruit trees will be valued at market value multiplied on the number of years until the end of fruiting period; or in case of granting the land plot instead of alienated one, the compensation of full cost of seedling, cost of preparation of a garden and lost profit at annual income multiplied the number of years till the trees gain fruiting period will be paid Business/ Employment Livelihood Temporary/ permanent loss of business or employment All APs (including non-titled land owners) Vulnerable AP: AP below poverty line Business owner: (i) Cash compensation equal to 1 year's income, if loss is permanent; (ii) cash compensation for the period of business interruption, if loss is temporary. Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area Worker/employees: Indemnity for lost wages for the period of business interruption (including fixed by oral agreement with employer) up to a maximum of 3 months. 1 additional allowance equal to 3 months at minimum salary. Priority for employment in project-related jobs, training opportunities, self-employment and wageemployment assistance Relocation Transport/ transitional livelihood costs All APs affected by relocation House tenants Provision of cash compensation to cover transport expenses and livelihood expenses for one month on the basis of documents, confirming the income of household members, but no less than 1 minimum salary per member Community assets Loss/damage to public infrastructure/ utilities Rehabilitation/replacement of affected structures/utilities (i.e. mosques, footbridges, roads, schools, health centres, etc.) to pre-program level

19 13 V. COMPENSATION AND ENTITLEMENTS A. Compensation of the Affected Properties 28. The short LARP provides the compensation details according to LARF prepared for the MFF program. As described in the entitlement matrix (Table 10), the compensation for all types losses in terms of assets / livelihood, temporary loss and other unanticipated loss will be given due consideration for preparing compensation adequate for rebuilding life of the APs at pre-project level. 29. Land for land compensation for permanent loss of land with plots of equal value/productivity of plots lost.to be provided by the Khokimyat as per requested by the TJSC. 30. Cash compensation for permanent loss of structures at replacement rate based on market price. The Office of Cadastral prepared the estimates for the affected structures owned by the TJSC at SUMoum 58 million. 31. Additional allowance to 10 affected co-owners, living at poverty level income, equivalent to 3 months multiplied by the minimum wage per month of SUM 37,680 per vulnerable person per month. B. Gender Issues 32. In general, they are no general gender issues. There are five (5) female co-owners and there are nine (9) women are employed by the Joint Stock Company. The 9 employed women although occupying low positions; their monthly income is the same with the males occupying the same positions. VI. PUBLIC PARTICIPATION AND CONSULTATION 33. During initial social assessment and census were conducted with the project affected persons/households as well as with the Khokimiyat of Rishtan City, vodokanal and the makhalla leader of Topvoldiev Makhalla. Consultations about ownership/possession right over the affected land use/structures and the ADB policy on land acquisition and compensation were discussed. 34. According to the chairperson of the enterprise, the TJSC will use the compensation for the losses of the buildings and other properties to increase the capital of their enterprise which is on the brink of bankruptcy. All 28 staff of the enterprise will remain employed by the enterprise. 35. Once this short LARP is approved, the affected enterprise, its co-owners and employees and all other concerned stakeholders such as the vodokanal, the Khokimiyat, the concerned makhalla will be informed about the formal procedures of compensation payment and all other relevant details. VII. ORGANIZATIONAL SET-UP 36. In accordance with the legislation of Uzbekistan province commission on land acquisition and district evaluation boards are responsible for conducting of a resettlement. Such commissions include representatives of the following authorities: (i) Province/district department of the State Committee on Land Resources, Geodesy, Cartography and State cadastre (SCLRGCSC).

20 14 (ii) (iii) (iv) (v) (vi) Province/district Hydromeliorative Expedition. Province/Department/District Unit of Goskompriroda (State Nature Protection Committee. Province/district divisions of SES. Province/district fire units. Beneficiary organizations and contractors (UCSA, EA, the Social and Environment Sub-Unit (SESU), Design Institute. Project Consultants). 37. The commission includes all the affected legal entities and individuals. In addition to government organizations and agencies non-government, women s committee and makhallas may be involved in resettlement procedures to ensure safeguards of rights and legitimate interests of the affected land users. 38. UCSA has overall responsibility for all aspects of the program. The Program Preparation and Management Unit (PPMU) within UCSA is responsible for the day to day management of the program including LAR and cross-agency coordination and for compensation disbursement. 39. The Social and Environment Sub-Unit (SESU) and Project Implementation Unit (PIU)/ vodokanal under the PPMU will directly participate in all LAR related planning, implementation, inter-agency coordination and monitoring. However, they will carry out this responsibility with technical assistance from the project consultants (PC) of the program and with the active participation of the district/municipal executive powers and as advised by SCLRGCSC from time to time. 40. Design Institute is in charge in elaborating the design and construction documents for the project. It will collaborate with the PC, SESU and PIU to: (i) assemble all documents required for compensation; (ii) carry out topographic surveys of the expropriated land and replacement lands; (iii) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces differentiating the land use patterns in the areas being occupied to serve as a base for the selection of compensation land; (iv) establish layouts of the lands proposed as option for compensation; (v) conduct the land marking and pegging of the land assigned for temporary use and permanent occupation and of the compensation lands. The design institute, in collaboration with resettlement team of the PSC and PIU, will review the LARPs and provide the necessary information for an updated estimate of the effective compensation plan and related cost for each subproject. 41. Project Consultant Resettlement Team is engaged to design and assist in the implementation of subprojects under the program. The Project Supervision Consultant (PSC) will have sufficient in house expertise on resettlement consisting of international and national resettlement specialists. With the assistance from the Design Institute and PIU, they will analyze the cadastral maps, carry out DMS, conduct first level compensation negotiation with the APs and prepare subproject LARPs. The PC will submit these LARPs to the respective vodokanal/piu and to SLAU division for approval. After its approval, PSC will submit LARPs to the respective Province and Rayon LAR Commission. 42. Local government agencies involved in LARP review and implementation are Province (Oblast) and District (Rayon) Executive Authorities who form Province Commissions on Land Acquisition and District Evaluation Commissions. These commissions will form a provincial land acquisition and resettlement committee (PLARC) which include the institutions as described below.

21 Province Commission on Land Acquisition, established under the Province Khokimiyat decision undertakes the following: (i) outlines location of constructions and structures, envisaged by the project; (ii) selects land plot for construction site, (iii) prepares and approves an Act for the right to use the land plot (title) and (iv) approved the Act for the right to use the land plot, specifying areas of the acquired farm land, accepted norms and total agricultural production losses. In addition to permanent members the Commission includes representatives of UCSA, as well as affected legal entities and individuals. 44. The Evaluation Commission established under the district khokimyat decision estimates losses of land owners and land users in accordance to the standard procedure, as well as losses in agricultural output as a result of the farm land acquisition based on data provided by the design institute. The commission prepares an Act for the right to use the plot of land specifying the acquired farm land area, accepted norms and total value of losses and agricultural output losses. 45. The regional representatives of the SCLRGCSC is the key executive authority responsible for the following: (i) identify land losses, incurred by land owners and land users as well as agricultural output losses; (ii) determine the degree and area of land re-cultivation, including removal and temporal storage of productive soil layer; (iii) determine the need for protective sanitary and water protection zones around the constructions being built and regime of their use; (iv) prepare proposals on allocation of land plots of equal value instead of the acquired; (v) estimate possibility and approximate cost of development of new land instead of the acquired; (vi) approve the Benchmark Setting up Act and the attached plan; (vii) amend the government acts on land use and land ownership as well as other cadastre documents. 46. Department of SCNP: (i) environmental impact assessment of construction projects and implemented methods; (ii) approves location of the sites affecting the land condition; (iii) develops measures for land protection for designed sites and launched facilities adversely affecting the land; and (iv) approves the Act on Land Plot Acquisition. 47. Government SES and Fire Inspection and Water Supervision authorities approve the Act of the Land Plot Acquisition. 48. At town/regional/ rayon level a grievance redress committee (GRC) will be established with the involvement of PIU/SESU/PC, leaders of affected makhallas and Khokimiyat (the local executive body). VIII. GRIEVANCE AND REDRESS MECHANISM 49. A grievance redress mechanism will be developed for addressing the grievances/decisions not agreeable to the affected enterprise, particularly actions in reacted with compensation or payment disbursement. The affected enterprise will be fully informed of their entitlement according to the short LARP and the procedures for addressing their complaints/ grievances during public consultation, census survey, verification of measurement survey at the time of implementation. The procedure of grievance redress will be incorporated in the disclosure pamphlet to be distributed prior to implementation. 50. In order to prevent grievances rather than to redress these through a process to avoid lengthy redress process, participatory consultation with the affected households will be undertaken during LAR planning and implementation stages. If the grievances fail to be resolved, all attempts will be made to resolve those informally at the local makhalla level. If this attempt fails,

22 16 Affected Enterprise will have the option of taking their complaints to the formal mechanism of addressing grievances described in Table 11. Table 11: Grievance Redress Process Assets Compensation Issues 1. First, complaints resolution will be attempted at town/district (Rayon) level of grievance and redress committee with the involvement of the PC, leaders of the affected Makhallas and Khokimiyat (the local executive body). 2. In absence of a settlement, APs may lodge a complaint to District/Oblast Khokimiyat as part of provincial land acquisition and resettlement committee (PLARC) and get a reply within 15 days. 3. If the District/Oblast Khokimiyat. decision is unacceptable to the APs, they he/she may approach the appropriate court of law for its resolution. IX. TRAINING IN LARP IMPLEMENTATION 51. All PIU staff, project consultants (PCs), SESU officials, leaders of Makhallas, Khokimiyat, representatives of SCLGRCSC, and District evaluation committee who will be involved in LAR activities will undergo an orientation and training in ADB s involuntary resettlement policy and implementation of RP. The training will be provided by the international specialist under the Program consultant s contract and will cover the following topics: (i) (ii) (iii) (iv) (v) (vi) principles and procedures of land acquisition based on Uzbekistan's law and regulation; principles and guidelines of ADB s involuntary Resettlement Policy public consultation and participation; entitlements and compensation & assistance disbursement mechanisms; grievance resolution; and monitoring of resettlement operations. X. COST ESTIMATES AND BUDGETS 52. The total estimated budget for compensation of buildings and structures, cost of resettlement operation and management for the Project is SUM72 million or $46.8 (SUM1540=$1). A break up of cost estimate is given in the Table 12 below. Table 12: Estimated LAR Cost and Budget Sl. No. Item Unit Quantity Rate Total Cost (SUM) A. Compensation 1 Land replacement or cost for dev t of hectares 1.2 new land for replacement Totals 2 Structures sq.m. Fruit Drying Storage House 1 Refer to 34,386,405 Shed 4 Appendix 7,487,298 Scale (Weighing) Room 1 4 for unit 291,796 rate of Store room 1 4,040,442 various Water basin (for washing of 2 1,036,990 materials vegetables/fruits) + labor Toilet 2 996,026 Fence 1,849,299 Gate 412,268 Asphalt 7,991,431 Labor for moving weighing scale (40 labor 3,000,000

23 17 tons capacity) Subtotal of A 61,491,955 B. Livelihood/Income Support 3 Income support for 10 affected coowners Affected coowners for 3 months 10 37,680 x 3 months x 10 affected coowners 1,130,400 Subtotal B 1,130,400 C. Support for RP Implementation 4 Training LARP L/S implementation 1,000, Engaging 1 Makhalla L/S 1,500, Subtotal of C 2,500, Total of A+B+C 65,122, Add: 6,512,235,000 Total Cost of Resettlement 71,634, say 72,000, XI. IMPLEMENTATION SCHEDULE 53. UCSA as the Executing Agency (EA) will direct the PSC resettlement team with assistance from SESU and the design institute to verify documents of the Affected Enterprise and carry out the detailed measurement survey of the affected assets. If any change in design alignment is foreseen, the team will notify the EA. The Rishtan makhalla will be engaged as implementing agency and assist the SESU & PSC s resettlement team particularly during payment disbursement and in resolving compensation issues. 54. Valuation of compensation and assistance will be done after detailed measurement of lost assets is done. Grievance, if any, will be addressed at this stage so that any delay in payment of compensation and assistance does not occur and contractor s award is issued as per schedule. 55. After initiation of LARP the UCSA will take step to engage external monitor to review and evaluate the LARP implementation. Table 1 shows the tentative implementation schedule of LARP. Table 13: Tentative Implementation Schedule Sl. LARP Implementation Activities Year 1 Q1 Q2 Q3 Q4 Scheduled completion 1 LARP update M1 2 Preparation of action plan specifying resettlement tasks M1 for Social and Environment Sub-Unit (SESU), Consultants and NGOs, if any 3 Training for LARP implementation with relevant M1 stakeholders 4 Consultations and preliminary surveys to identify the M1 APs/Enterprise with the aim to prevent/minimize resettlement/assets acquisition 5 Finalization of subproject technical plans considering M2 minimized requirements in assets acquisition 6 Collection of cadastral maps and land parcel maps in M2 the subproject area. Verification of land records and cadastre maps in the affected areas 7 Application to Province Khokimiyat on selection of land M3