Azerbaijan Second National Water Supply and Sanitation Project (SNWSSP) Resettlement Policy Framework (RPF) Land Acquisition

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Azerbaijan Second National Water Supply and Sanitation Project (SNWSSP) Resettlement Policy Framework (RPF) Land Acquisition February 29,

2 Acronyms Azersu DO EA IBRD IFC IRDD LAD SNWSSP PAPs PIU RAP RPF SAWMA SNIP WB WSS Azersu Joint Stock Company Development Objective Environmental Assessment International Bank for Reconstruction and Development International Finance Corporation International Relations & Development Department Land Acquisition Plan Second National Water Supply and Sanitation Project Project-Affected Persons Project Implementation Unit Resettlement Action Plan Resettlement Policy Framework State Amelioration and Water Management Agency Stroitelnie Normie I Pravila, Russian (Construction Norms and Regulations) The World Bank Water Supply and Sanitation 2

3 Draft Resettlement Policy Framework (RPF) The Project Background The Republic of Azerbaijan is the largest of the three countries of the Southern Caucasus. It has a total surface area of about 86,600 square kilometers. About 52 percent of the country s population of 8.2 million lives in urban areas, and about 25 percent (2.1 million) live in Baku, the capital city. About 55 percent of Azerbaijan s population has access to improved sanitation facilities. Access in urban areas is higher than in rural areas, with coverage estimated at 73 percent and 36 percent, respectively. The sewerage network in Baku serves about 78 percent of the population, while only about 50 percent of wastewater in Greater Baku is treated. Sewerage coverage in other urban areas is about 32 percent, and a small portion of the sewage is treated before disposal. Rural areas primarily depend on on-site sanitation. Public health department control over the location and condition of on-site sanitation facilities is insufficient, and there is no effective regulation of the emptying trucks that must periodically remove the sludge, increasing the risk of clandestine and unsafe discharge of this matter to the environment. For both public health and environmental reasons, it is imperative that fecal sludge from these facilities be treated before it is discharged into the environment. Key Issues in Water Supply and Sanitation (WSS) Deterioration in physical condition of water supply (WS) infrastructure: The physical condition and performance of infrastructure for WS treatment, transmission and distribution systems in many parts of Azerbaijan have deteriorated seriously from wear and tear as a result of age and damage caused by natural calamities such as the year 2000 earthquake. Many water transmission and distribution pipes are now more than 50 years old. The state of many water pipe networks combined with intermittent supplies affects the quality and reliability of services, and poses risks to drinking water quality unless WS systems are rehabilitated. Deterioration in physical condition of wastewater infrastructure and the lack of wastewater and fecal sludge treatment facilities: This is a serious threat to the health of the population and has severe negative impacts on the environment. Lack of modern water supply and sanitation management with focus on technical and financial sustainability: The WSS sector faces challenges related to lack of financial viability caused by various factors, including an inadequate price/tariff structure and an inadequate billing and collection system that results in low cash collections. 3

4 Poor demand-side management practices: There is excessive water consumption and wastage. The level of metering, which would provide an incentive to save water, and opportunity for monitoring leakages, is still very low. Additional losses in the system are caused by the deterioration in plumbing systems in individual houses and apartment blocks. Unplanned and uncontrolled urban sprawl in Baku: This puts additional strain on water infrastructure and hampers effective and sustainable investments in the water sector, as well as in other sectors. The Government of Azerbaijan is committed to improving the performance of the WSS sector through better allocation of resources and improvement of infrastructure service provision, as part of its effort to ensure sustainable growth in the nonoil economy. This is expected to contribute to ensuring that the full benefits of the country s rapid economic growth reach all sectors and segments of society in order to attain a sustainable reduction in poverty. Improving infrastructure is one of the intermediate objectives of the government s poverty reduction strategy, the State Program for Poverty Reduction and Economic Development (SPPRED). The government s vision for the WSS sector in secondary cities focuses on rehabilitation of WSS facilities in all urban centers outside Baku, to provide reliable water supply and wastewater services. Project Development Objective The objective of the project is to improve the availability, quality, reliability, and sustainability of WSS services in 21 of Azerbaijan s regional centers (rayons). This objective will be achieved through rehabilitation and reconstruction of the water supply and sanitation infrastructure in 21 rayons outside the Greater Baku area, including 5 in Nakhchivan Autonomous Republic.. Rationale for Preparation of the Resettlement Policy Framework World Bank (WB) policy requires "screening" of all projects proposed for WB financing to help ensure that they are environmentally and socially sound and sustainable. In the process of project preparation, WB screening ascertained that under Operational Policy (OP) 4.12 the Second National Water Supply and Sanitation Project (SNWSSP) might involve land acquisition. As the exact location, land type, and size have not yet been determined, a Resettlement Policy Framework (RPF) is prepared for this project as a condition of appraisal. Should land acquisition occur under the activities supported by the project, it will then be carried out following well-established procedures specified in Azeri laws and procedures relating to land purchase and expropriation and World Bank Operational Policy (OP) 4.12 and Bank Procedures (BP) 4.12 on Involuntary Resettlement, as spelled out in the RPF. Objectives of the Resettlement Policy Framework 4

5 The purpose of the RPF is to set out the policies, principles, institutional arrangements, schedules, and funding mechanisms for any land acquisition that may occur as the result of the project. The operational objective of the framework is to provide guidelines to stakeholders participating in the mitigation of adverse social impacts of the project, in order to ensure that the social and economic well-being of project-affected persons (PAPs) will not be worsened as a result of the project. Social Impacts It appears that the project objective of improving WSS services in 21 regional centers in Azerbaijan might involve specific infrastructure investments and the acquisition of fallow land, used agricultural land, or pasture areas used for sheep and cattle. Project investments will occur in 21 rayons covering Imishli, Kurdamir, Siyazan, Aghsu, Ismayili, Udjar, Zardab, Lenkoran, Masalli, Astara, Jalilabad, Yardimili, Lerik, Davachi, Dashkesan, and Gedabey. In Nakhchivan it will cover Sadarak, Kangarli, Shahbuz, Djulfa, and Ordubad.At this point it still needs to be determined if private land will need to be acquired, and if so how much and where. Acquisition of land, if it is necessary, is expected to occur for a few wastewater plant sites; however, no resettlement of persons or demolition of commercial or private buildings is expected. The exact location of these wastewater treatment plans will only be known once the specific environmental assessments for these sites and the public consultation are concluded. Once the final project designs are completed and it is possible to determine which sites will be affected by project activities, the implementing agency will determine the legal status of the respective sites and the rights of people using it, and develop appropriate site-specific plans. Once the specific sites are determined, cut-off dates for the respective sites will be established. The government guarantees that establishment of the cut-off dates will proceed with effective dissemination of public information in the areas delineated, and with systematic and continuous dissemination subsequent to the delineation to prevent possible population influx. Potential Land Acquisition for Specific Infrastructure Investments: It still remains to be determined whether private land will be acquired in the 21 project rayons. How much land might be acquired will be individually determined for each specific rayon. It is not expected that more than two hectares of land will be acquired in any of the project rayons where rehabilitation of water production and treatment facilities are planned, including wastewater treatment plants. Azersu and the State Amelioration and Water Management Agency guarantee that removal of illegal settlements will not be caused by the project, because the project involves mainly the rehabilitation of existing infrastructure. New sites need to be found only for wastewater plants. However, should such sites be occupied by illegal settlements, the wastewater treatment plant could easily be moved to a nearby location. 5

6 Legal Framework on Matters Relating to Land Acquisition Azeri law has the following instruments, which provide instruction on matters relating to land, land acquisition, and compensation for other property losses: The Land Code, 25 June 1999 The Civil Code, 1 December 1998 Cabinet of Ministers Resolution No. 42, 15 March 2000 Cabinet of Ministers Resolution No. 110, June 1999 Right of way (right of access) dated SNIP defines norms and standards used for right-of-way and sanitary zones. (It seems that current legislature in Azerbaijan does not have any compliance to this term. This still would need to be verified by respective lawyers.) Aspects of these instruments that relate to the use and protection of the road reserve are given in the following sections. Recent Changes to the Civil Code Law on Resettlement Issues, January 2008 Recent changes to the Civil Code law on resettlement issues include resolutions for changes in the Civil Code of the Republic of Azerbaijan and additions to the Civil Code of the Republic of Azerbaijan. While the additions to the law were passed in January 2008, the specific rules and regulations are still being worked out by the relevant authorities. Azersu will update the RPF with regard to these changes and in compliance with World Bank safeguard policies as soon as they become available. Details on the additions to the law are included in Annex A of the RPF. Land Code dated 25 June 1999 When land is required for projects of national interest, compensation is initially offered on the basis of valuations made in accordance with a standard code (No. 158, dated 1998). If landowners are unhappy with this valuation, there is scope for agreeing on a revised valuation. In the event that such agreement cannot be reached, the acquiring authority can process its application for acquisition through the courts, but this is often a long and complex process. The landowner also has the option of seeking recourse through the courts. The Land Code also allows for an exchange of land that is equivalent to the land being acquired. When a relevant local executive authority decides a land case, the decision shall come into force immediately, and this decision will not be terminated by the lodging of a complaint with the relevant court. Articles 110 and 111 describe willful occupation of land plots and implementation of illegal construction on land plots as violations of the land legislation, and state that these are prohibited acts. Civil Code Dated 1 December

7 This Civil Code states that any rights to immovable properties must be registered with the state, and that land may be recalled from owners for state or municipal needs as approved by the relevant courts. Cabinet of Ministers Resolution No On Some Normative and Legal Acts Relating to the Land Code of the Azerbaijan Republic dated 15 March 2000 This resolution outlines procedures for the compulsory acquisition of land for state or municipal needs. Cabinet of Ministers Resolution No 110 On Approval of Regulations for an Inventory Cost estimation of Buildings Owned by Natural Persons dated June 1999 This resolution outlines procedures for acquisition and compensation valuation for affected buildings and immovable properties. It refers to the standard code No. 58 that is to be used for making valuations of land and property to be acquired. These valuations are made on the basis of standard unit rates for different types of construction in different regions of Azerbaijan. SNIP (Construction Norms and Regulations) defines norms and standards used for right of way and sanitary zones. (These norms were used in the former Soviet Union for design and construction and are currently still being accepted in Azerbaijan. There are different SNIPs for each type of construction, such as bridges, water treatment plants, and residences.) Land Acquisition In case of land acquisition for the SNWSSP, information on the type of land will be collected for compensation applications: whether fallow agricultural land, pasture, or cultivated agricultural land. This information is collected by Azersu and SAWMA and the Azerbaijan State Land and Cartography Committee; any compensation due is finally approved and accepted by the Cabinet of Ministers. Compensation Funds Although the state is responsible for compensation, there is no permanent and clear compensation system, and approved compensation is paid from different state funds. For the SNWSSP, compensation will be paid from the government counterpart funds of the project. Compensation will be paid immediately after the final design has been finished and those eligible for compensation are identified. Compensation must be completed before construction work starts. According to Azerbaijan Republic legislation, there are three possible scenarios for land acquisition: 1. The landowner is offered land of equal size and quality. 2. The landowner is compensated by proponents of the land acquisition on the basis of current market prices. 3. The dispute is the subject of court consideration. 7

8 The real situation with land reserves excludes the first scenario. Local authorities either have no land reserves, or the quality of these lands is much poorer than the land owned. The main avenue for land acquisition in actuality is the provision of cash compensation through a valuation method based on current market prices and timely payment of compensation. Land swap does not appear to be an option because of the poor quality of available land. Compensation Valuation Methods in Azerbaijan Land Compensation Procedures for valuation for compensation and other purposes are laid down in the Land Law, the Land Code, and the following legal instruments: Resolution No. 42 on Some Normative and Legal Acts Relating to the Land Code Cabinet of Ministers Resolution No. 110 On Approval of Regulations for an Inventory Cost Estimation of Buildings. For agricultural land, base land values are established using the Former Soviet Unionbased cadastre system, which values land based on land attributes (productivity of soils and regional agricultural characteristics), input costs, and typical revenues achieved in each district. Cadastre-based values are then reviewed in each district by a Valuation Commission and adjusted upward where necessary to reflect changes in crop types and productions levels. Prices for valuing crop production are determined based on local market prices. Permanent Acquisition of Land The land compensation price must be based on the market price, provided that such price is not less than the cadastral or normative price for the subject land (Land Code, article 96.5). Normative or cadastral rates for lands in each district are established by Cabinet of Ministers Resolution No. 158 on Establishment of New Normative Prices for Land in the Azerbaijan Republic (23 July, 1998). The project will pay compensation for permanent acquisition of land based on negotiated rates. The government normative or cadastral rates will be the minimum. The final agreed-on price paid as compensation for land lost to expropriation will correspond to the World Bank s requirement of replacement value, enabling the affected person to purchase land of equivalent area and quality. During land privatization, land titles allocated to families had all members of the family as of 1996 listed on the land parcel ownership certificate. In such cases, the household head is responsible for signing project documentation relating to leases or assignment of rights. The household head must, however, obtain the written consent of all other people listed on the ownership documents. Compensation for Immovable Assets and Land Attachments 8

9 This covers a range of items such as fences, walls, animal enclosures, small irrigation channels, drains, wells, hand pumps, artesian bores, water pumps, hay sheds, animal shelters, and roads. These items will be valued on the basis of full replacement cost. No demolition of structures is expected. However, should it occur, no depreciation will be used in calculating the compensation payable for affected structures, so that affected people will be able to replace their structures with the compensated amount.. Entitlements For each land acquisition process, Azersu and SAWMA will adopt a policy for entitlements that is in accord with Azeri legislation and the RPF, and ensure that fair and proper entitlements, as spelled out in the RPF, will be provided to all people who are affected by the water rehabilitation works. The preliminary entitlement matrix is developed and attached to the RPF based on the information available now. A detailed entitlement matrix will be developed after it has determined if and how much land would be acquired in each rayon. Comparison of Azerbaijan Government and WB Policy on Resettlement WB OP 4.12 on Involuntary Resettlement Many of the key tenets of the WB s OP 4.12 are covered in full or in part by current Azerbaijan law. These include: The requirement to pay compensation in advance where land is compulsorily acquired (Land Code, article 70.5) The need to compensate based on full market value or through grant of another land plot or building of equal quality, size, and value (Land Code articles 8 and 70.5) The need to avoid, wherever possible, impacts on agricultural land and forests (Cabinet of Ministers Decree No. 42, section I, article 2; The requirement to compensate for losses, whether temporary or permanent, in production or damage to productive assets and crops (Cabinet of Ministers Decree No. 42, Sections I and II) Provision for pre-judicial avenues for resolution of disputes and rights of appeal. The OP 4.12 principle of avoidance or minimization or resettlement is addressed in Article 70.4 of the Land Code, which stipulates that lands can be withdrawn only for location of state, municipal, or public facilities of high importance. Under Article 22 of the Land Code, the state is required to establish protection zones with special (restrictive) regime for the purposes of construction and operation of industrial facilities. The law requires that landowners, users and lessees shall not lose their rights of access and use of such lands, other than in cases which require full withdrawal of land. There are, however, five broad areas where the borrower s obligation under OP 4.12 extends beyond those required under Azerbaijan legislation. These are as follows: 9

10 Land acquisition (and or resettlement), planning, and procedural requirements Public consultation and participation of project-affected communities Extent of compensation and types of assistance to be offered Categories of people eligible for compensation Income restoration. Resettlement Planning and Procedural Requirements There is presently no requirement to prepare a formal Resettlement Action Plan (RAP) under Azerbaijan law, nor to undertake any of the component activities of a resettlement action plan such as, as a census, socioeconomic survey, consultation with project affected people, monitoring, or reporting. There are no specific references in the legislation to involuntary resettlement. Core WB planning requirements, such as the need for community participation in the resettlement planning process and the requirement to improve or enhance project-affected people s living standards and income and production levels, are not explicitly addressed in current legislation. Measures that will be employed under the project to ensure compliance with OP4.12 will include: Consulting with potential project-affected people on feasible measures for land acquisition if applicable Drafting and implementing a full public consultation strategy and disclosure plan before land acquisition procedure (funds will need to be allocated for consultation activities) Carrying out a social screening for each subproject to identify the need for an RAP if applicable Informing PAPs of their rights to assistance and explaining this clearly, with supporting information and material, if appropriate. Public Consultation and Participation OP 4.12 specifies that PAPs should be informed about their options and rights pertaining to land acquisition and consulted on, offered choices and provided prompt and effective compensation at full replacement. (Clause 6 (i), (ii)). Currently there is no explicit consultation requirement in Azeri law. Measures that will be employed under the project to ensure compliance with OP4.12 will include: Α public consultation meeting that will be carried out after social screening to inform the PAPs of the nature of the project, expected impact, entitlements for compensation, and measures for grievance redress Disclosure of project environmental and social information as an integral part of the public consultation process, with information being provided about both benefits and disadvantages of the project 10

11 Information clearly presented in appropriate local languages and dialects and in modes that are sensitive to local communities Information disclosed in locations that are open to the public and that are readily accessible to PAPs. Compensation Eligibility The categories of people who must be compensated under Azerbaijan legislation are narrower than those defined under OP Under the legislation, the only people and entities entitled to compensation are those with registered property rights, for example, registered landowners, leaseholders, users and those with registered third-party rights, and those who have legally obtained the right to register their title but who have not completed registration. This potentially precludes many categories of affected people that would be entitled to compensation under WB Group policies. While World Bank OP 4.12 embodies the principle that a lack of legal land title does not disqualify people from resettlement assistance, under relevant Azeri legislation, discrepancies with this principle arise. However, within the scope of this project, investments will specifically avoid any land so encumbered. Income Restoration Should loss of income occur because of loss of annual crops or perennial crops/plants, then government counterpart funds will be used to provide for the loss of annual crops a one-year income compensation. Should loss of income for perennial crops/plants occur, then an assessment will determine the amount of income compensation for loss of perennial crops/plants, if any. Furthermore, households that lose a significant proportion of their total land holding (more than 50 percent), such that it is no longer economically viable to cultivate, will receive rehabilitation assistance such as access to employment or training facilities for employment and so forth, in addition to compensation for lost assets. No business closure is expected under the project. The Implementation Process The implementation of land acquisition activities will be linked to the implementation of the civil works to ensure that acquisition of land or other assets does not occur before compensation is made or other activities have been carried out. To repeat, land and related assets will be taken only after compensation has been paid. 11

12 Institutional Framework The Second National Water Supply and Sanitation Project will be implemented by Azersu s International Relations & Development Department (IRDD), and by SAWMA in Nakhchivan. Azersu and SAWMA will be responsible for the RPF and for any land acquisition issues that might occur in any of their project rayons in Azerbaijan. The Construction Management Consultant will assist the implementing agencies in coordinating the RPF (and/or RAP) issues. Impact monitoring will involve the following: Field checks of: Payment of compensation and timing of payments Preparation and adequacy of land acquisitions sites. Specific Roles and Responsibilities of Key Agencies A Land Acquisition Team will be organized in Azersu/SAWMA that will execute the RPF and develop a RAP, where necessary. The team s responsibilities will include: Identifying affected land parcels and compiling land ownership and lease information Undertaking the survey and inventory of affected land and assets Reviewing applications for allocation of land for the project and making proposals to the Cabinet of Ministers on necessary implementing decrees Preparing a RAP, where necessary. Registering changes in ownership Carrying out the valuation of lost assets and income, to determine compensation eligible to individual PAP, together with the Rayon Land Commission Preparing new or amended ownership certificates. Implementation Agencies The project sponsor, Azersu and SAWMA, will be responsible for implementing the RPF and for ensuring that the actions defined in a possible RAP are fully implemented. Should land acquisition be needed in Azersu s areas, Azersu will hire, with government project funds, a consultant familiar with the RPF, in order to prepare and implement the RAP in compliance with the World Bank safeguard policies. Should land acquisition be needed in SAWMA s areas, SAWMA will hire, with government project resources, a consultant familiar with the RPF, in order to prepare and implement the RAP in compliance with the World Bank safeguard policies. Using government project funds, Azersu will make the payment of compensation, with assistance of the rayon local land commission and the head of the specific rayon, as planned in the RAP and approved by the Cabinet of Ministers. 12

13 Azersu and SAWMA are responsible for: Participating fully with the appropriate ministry Providing training on WB involuntary resettlement policies (land acquisition) Providing resources and logistical support to the RAP team Undertaking a socioeconomic survey of PAP Carrying out consultation and disclosure activities Ensuring that a RAP that adequately address the policies and procedures of the RPF is developed and implemented Verifying payment of compensation to the eligible PAP Restoration of land and infrastructure following construction completion Monitoring the restoration of the livelihoods of affected households Managing complaints and grievances (at the project level) Ensuring that RAP monitoring and reporting are undertaken Ongoing monitoring and disclosure. Process for Land Acquisition and Resettlement in the Subprojects The Land Acquisition Team of Azersu and SAWMA will determine the needs and scale of land acquisition based on social screening, assess the affected properties and report the results to the Cabinet of Ministers, and send details of any land acquisition to the Land Committee, which will perform a quality check of the assessments. The Cabinet of Ministers assesses the process and determines the normative prices for land and property. Azersu and SAWMA decide on budget for land acquisition and compensation paid from project funds. Azersu and SWAMA pay the compensation out of the government portion of the project funds. Azersu and SAWMA will report on the land acquisition progress in their project report. The World Bank consultant/resettlement specialist will annually review in country the implementation of the land acquisition. Azersu and SAWMA are responsible for monitoring the progress and effectiveness of the land acquisition process and receive funding from project funds. In order to comply with WB OP 4.12, the Azeri government will pay PAPs income restoration; this will be calculated by assessing people s incomes/salaries or payments in kind for the three to six months before compensation assessment. Costs and budget allocation As PAPs will not be identified until the sites for the wastewater treatment plants have been chosen, it has not been possible to provide specific costs of land acquisition. Additionally, in practice prices differ from region to region and sometimes seasonally. Up-to-date land prices for the project area have not been available. Without knowing the exact location of the wastewater treatment plants, it is not possible to give an accurate 13

14 estimation of the budget costs for land acquisition in the project areas. Land prices are very tentative and are likely to increase during the more detailed design phase of the project. However, because of the limited land acquisition, if any, costs are expected to be negligible compared to overall project costs and are considered to be included in the overall investment costs. These costs will not exceed 20,000 Azeri Manat per rayon. Public Consultation and Grievance Redressal This section provides guidelines to ensure that PAPs receive adequate consultation and are given avenues for grievance redressal. In the process of project development, there will be a number of subproject studies that will consider the environmental and social impacts of specific wastewater treatment plants sites (see Social Assessment, Environmental Assessment, and Management Framework). At this stage, clear information on the details of proposed sites will become available. A public consultation will be organized at which detailed project data and project impact will be presented and explained to representatives and affected individuals. Individuals not familiar with consultation will be identified and given opportunities for consultation. Information on compensation procedures as per the RPF will be explained A grievance system will also be explained to people potentially affected by the SNWSSP. The consultation process will be staged so that there are opportunities to revise plans, taking into account the people s changing views as they respond to increased certainty. The government of Azerbaijan has a grievance procedure in place and, according to anecdotal information, most people are aware of their rights to appeal in court. However, in practice this may not happen, as court costs are high for both parties and resolutions are identified outside court. Essentially this grievance process will: Provide affected people with straightforward and accessible avenues for making a complaint or resolving any dispute that may arise during the course of the project Ensure that appropriate and mutually acceptable corrective actions are identified and summarily implemented to address complaints Allow verification that complaints are satisfied with outcomes of corrective actions Avoid the need to resort to judicial or pre-judicial proceedings. Specific measures for grievance redressal are described below. The Land Acquisition Team of Azersu/ SAWMA Project Implementation Units (PIU s) land acquisition team will also play a role in resolving grievances. They will first ensure all PAPs are aware of their legal rights for grievance redressal. Grievances related to land acquisition impacts should be pursued at the rayon level and facilitated by the Land Acquisition Team. Solutions to grievances related to compensation amounts and delays in compensation payments will be 14

15 . pursued in liaison with the team. The project staff will inform PAPs about the avenues for redressing grievances and will maintain a record of grievances received, and the result of attempts to resolve them The WB supervision team will periodically monitor land acquisition. The WB team will advise the Azersu/ SAWMA to take appropriate steps to redress the grievance. Monitoring Monitoring is a crucial element for the success of any resettlement project and should be planned and costed out as early as possible in the project. As this project is going to be divided into several subprojects, it is important that each subproject have a robust monitoring framework and requisite budget. What follows is a summary of the key elements needed in a good monitoring process. Internal performance monitoring Monitoring will involve checking that physical progress has been made in executing required actions. The Land Acquisition Team will produce monthly narrative reports on progress and submit it to the Azersu/ SAWMA. The main performance milestones to be checked will be: Public consultation meetings held Census, assets inventories, assessments, and socioeconomic studies completed Grievance and redress procedures in place and functioning Compensation payments disbursed Land acquisition, if needed, completed Income restoration activities initiated Monitoring and evaluation reports submitted. Impact Monitoring The impact monitoring will be used to assess the effectiveness of the RAP and its implementation in meeting the needs of the affected individual. Provision of employment and income levels Adequacy of training and other support provided Interviews with a random sample of affected people from different sites to assess their knowledge and concerns regarding the resettlement process, their entitlements, and rehabilitation Observer at public consultations with affected people and monitoring of the function of land acquisition operation to assess compliance with RAP Check of types of grievance issues and the effective functioning of the grievance redress mechanisms by interviewed aggrieved affected people and reviewing grievance and appeals processing 15

16 Survey of the standard of living of the affected people after the implementation of land acquisition to assess whether standards of living have improved or been maintained, using baseline information for comparison. Advising project management of changes necessary to improve implementation of RAP if applicable. Final External Evaluation This external evaluation will assess whether compensation and other measures to restore the living standards of PAPs have been properly designed and carried out. An external independent third party will be hired to carry out the final evaluation. Agreements The agreements detailed below govern implementation of this policy framework. Land acquisition and other social impact will be minimized, if unavoidable. Social screening will be carried out for each subproject, to determine if land acquisition, damage to structure, loss of income and access, or other impact covered under the OP 4.12 will result. If this is the case, an RAP will be developed as per policies and procedures set out in the RPF. Project sites that are not encumbered by people without titles will be selected. The WB will review and provide no-objections to subproject-specific RAPs. The WB and other stakeholders will supervise different aspects of preparation, implementation, and monitoring of the plans during regular supervision missions. Azersu/ SAWMA will promptly inform the WB and other stakeholders of significant unforeseen problems or circumstances that may affect outcomes of the plans. 16

17 Preliminary Matrix of Entitlements for SNWSSP Based on available information, two groups of persons that may be affected by investments in the project area are anticipated. Farmers who cultivate land and shepard s who use land for livestock grazing. Investment Wastewater Treatment Plants in project rayons Other Water and Sewage investment mainly outside the urban rayon center, if any, such as pumping stations Project Impacts Land Acquisition and right of way Removal of orchards and/or forest trees Acquisition of grazing land Land Acquisition and right of way Removal of orchards and/or forest trees Acquisition of grazing land Category of project affected persons Land owners Orchard owners, Owners of forest, Owners of grazing land Land Owners Land owners Orchard owners, Owners of forest, Owners of grazing land Land Owners Entitlement Compensation for land (equivalent to market price or to purchase use right in alternate site) Compensation for right of way If more than 50% of an individual s total land holding is affected, the land owner will be provided rehabilitation measures such as privileged access to employment opportunities created under the project. Production value of current crop, Production value of trees through normal productive period and until new saplings produce first orchard harvest, and replacement value of new saplings and new forest trees Compensation for land (equivalent to market price or to purchase use right in alternate site) Compensation for right of way Compensation for land (equivalent to market price or to purchase use right in alternate site) Compensation for right of way If more than 50% of total land holding is affected, the land owner will be provided rehabilitation measures such as privileged access to employment opportunities created under the project. Production value of current crop, Production value of trees through normal productive period and until new saplings produce first orchard harvest, and replacement value of new saplings and new forest trees Compensation for land (equivalent to market price or to purchase use right in alternate site) Compensation for right of way Other measures None Delivery of new saplings and new forest tree by Azersu/ SAWMA Income compensation applies to employees as well as owners None Delivery of new saplings and new forest tree by Azersu/ SAWMA Income compensation applies to employees as well as owners 17

18 Annex A. Recent Changes to the Civil Code law on Resettlement Issues, January 2008 Resolution about making changes to Civil Code of the Republic of Azerbaijan The Parliament of Republic of Azerbaijan settles on: A. The following changes shall be made to Civil Code of the Republic of Azerbaijan 1. Articles and with following content shall be added: Article The land owner of the piece of land taken for governmental needs, not sooner than 90 days and in any case not later than in 200 calendar days after the written notice about the decision is sent, in accordance with terms and conditions of article 247 of herein law, must move out of that territory. Up on request of the land owner the appropriate executive institution may change the time limits indicated in hereby article by own decision. Article The time limits indicated in articles 246 and 249 of herein code also shall also apply to buildings and houses located or not located but decided to be taken over. 2. Revised version of article Article The price for the land procured for governmental or public need shall be calculated by appropriate executive institution and shall be sent to land owner not sooner than in 80 calendar days and in any case not later that in 180 calendar days after the decision is made. 3. Revised version of article Land owner has a right of claim against the decision of executive body indicated in article or amount of estimated compensation. Once land owner made a claim to the appropriate court about the decision of executive body pointed out in article or amount of estimated compensation the time limits indicated in article shall not be applied. 18

19 4. The phrase and the claim about the amount of the compensation after the date of the payment of compensation pointed out in article shall be added after the phrase the day the notification is sent in article of Civil Code. 4. Revised version of article Land owner has a right to execute his rights over the land after acceptance of the offer of the executive body within the time limits indicated in article This changes come into power since it is published. The president of the Republic of Azerbaijan CERTIFICATE On draft law of Republic of Azerbaijan about the changes and additions made to civil code of Republic of Azerbaijan 1. Revised version of article 246 Article 246. Procure the lands for governmental or public needs As in article 157,9 of herein law the decision about procurement the land is made by appropriate executive body The decision of executive body about procurement the piece land shall be officially recorded in appropriate state registry department An executive body that made a decision about procurement the piece land shall immediately inform the owner in written. Note I : Following articles, and are added to herein law. 19

20 Note II : Article In case of necessity of procurement of the land, the property can be taken by the government only in cases when it is allowed by herein law to build roads, communications, to define the borderlines, or for purpose of defense and only following the payment of appropriate compensation calculated in accordance to market price. 2. Revised version of article Article The estimation of compensation for lands taken for governmental or public needs. The amount and other conditions of procurement of the lands for governmental or social needs shall be estimated in accordance with agreement made with land owners. 3. Revised version of article Article 248. Right to claim the decision about procurement the land by executive body for governmental or public needs. Article Property owner may apply to court in case not satisfied with the decision, amount of compensation or other provisions of procurement of the land by executive body for governmental or public needs. Note: Article is given in revised version 4. Revised version of article Article Property owner has a right to apply for court within one year after the written notification decision of executive body to procure the land for gov6ernmental or public needs is sent. II Note: The article was revised and according to herein article executive body that made a decision to procure the land for governmental or public needs must send a written notification to land owner. III The amount of compensation paid for lands taken for governmental needs, time frame and other details must be defined in agreement made with land owner. An agreement shall include the obligation of executive body to pay the negotiated amount to land owner. 20

21 5. Revised version of article Article The rights of land owners whose property was procured for governmental or public needs Land owner has a right to use, manage and meet expense of proving his rights over the land starting from time the decision about procurement the land for governmental or public needs is made and till the agreement is reached or court announced its verdict. Note: Article is given in revised version 21

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