Land Acquisition and Resettlement Plan (LARP) Internal Monitoring and Evaluation Report

Transcription

1 Land Acquisition and Resettlement Plan (LARP) Internal Monitoring and Evaluation Report February 2013 UZB: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program Project 2 Prepared by the Uzbekistan Republic Road Fund under the Ministry of Finance of Uzbekistan for the Asian Development Bank.

2 O' ZBEKISTON RESPUBLIKASI MOLIYA VAZIRLIGI HUZURIDAGI RESPUBLIKA YO L JAMG ARMASI РЕСПУБЛИКАНСКИЙ ДОРОЖНЫЙ ФОНД ПРИ МИНИСТЕРСТВЕ ФИНАНСОВ РЕСПУБЛИКИ УЗБЕКИСТАН «13» c /V a icj) 2013 у. is /) / W - / г - и 201 г. То Ms Xiaohong Yang Director, CWTC Central & West Asia Department Asian Development Bank, ADB PO Box 789 Manila Philippines 0980 Tel.: (632) , Fax: (632) Subject: Submission of LARP Implementation Report CAREC Corridor 2 Road Investment Program, Project 2 In accordance with the loan agreements we are submitting the Final LARP Implementation Report for MFF Project 2 for your consideration. Sincerely, < ^ 3 ^ Jamol Shukurov Director of Republican Road Fund Ministry of Finance Uzbekistan , Toshkent sh., Istiqlol, 29 Tel.: (998 71) , Faks: (998 71) P , г. Ташкент, Истиклол, 29 Тел.: (998 71) , Факс: (998 71)

3 Land Acquisition and Resettlement Plan (LARP) Internal Monitoring and Evaluation Report for Project 2: Km 355 Km 440 (85km) ADB Loan Number: 2746-UZB Feb, 2013 UZBEKISTAN: CAREC Corridor 2 Road Investment Program Prepared by the Uzbekistan Republican Road Fund under the Ministry of Finance of Uzbekistan for the Asian Development Bank (ADB). Tashkent 2013

4 CAREC CORRIDOR 2 ROAD INVESTMENT PROGRAM: PROJECT-2 TABLE OF CONTENTS I. INTRODUCTION... 1 II. THE PROJECT AND LARP FOR THE PROJECT... 1 A. OVERALL BRIEF PROJECT DESCRIPTION 1 1. THE UZBEKISTAN CAREC 2 MFF INVESTMENT PROJECT, TRANCHE THE STATUS OF PROJECT IMPLEMENTATION 2 B. THE SCOPE OF LAND ACQUISITION AND RESETTLEMENT PLAN (LARP) 3 ENTITLEMENTS TO COMPENSATION 3 FORMALIZATION OF TITLE/REGISTRATION 4 COMPENSATION FOR LAND 4 BUSINESSES 5 STRUCTURES 6 LIVELIHOOD AND RELOCATION ALLOWANCES 6 III. IMPLEMENTATION OF LARP... 6 C. UPDATE LARP 6 D. INFORMATION DISCLOSURE 7 E. GRIEVANCE REDRESS COMMITTEE 7 F. STATUS OF COMPENSATION 8 1. STATUS OF AFFECTED HOUSEHOLDS 8 2. REVISED BUDGET FOR COMPENSATION 9 G. OPPORTUNITIES TO DERIVE DEVELOPMENT BENEFITS 2 1. RECOMMENDATION AND CONCLUSIONS 3 TABLES TABLE 1: SUMMARY OF IMPACTS PROJECT 2 3 TABLE 2 - LAND REQUIRED FOR PROJECT 2 4 TABLE 3 : LAND PREPARATION COSTS 5 TABLE 4: BUSINESS AND WORKER COMPENSATION ('000 SUM) 5 TABLE 5: COMPENSATION FOR STRUCTURES. 6 TABLE 6: STATUS OF AFFECTED HOUSEHOLDS 7 TABLE 7: BUDGET FOR LARP IMPLEMENTATION. 9 APPENDIXES APPENDIX 1: SUMMARY OF LARP INCLUDING THE COMPENSATIONS PROVIDED TO AP AND COMPENSATION REFUSAL LETTERS FROM AHS APPENDIX 2: ROMITON HOKIMS DECREE CONCERNING PURCHASING OF COMPENSATIONS APPENDIX 3: PAYMENT LISTS TO MURODOV, MURODOV S CONFIRMATION LETTER OF GETTING COMPENSATION. ii

5 CAREC CORRIDOR 2 ROAD INVESTMENT PROGRAM: PROJECT-2 ABBREVIATIONS AB AC ADB AH AIDS AP CAREC CSS D/PLARC DI DP EA EMA GAP GFP GRC Ha HH HIV IA IMA Km LAR LC MFF PMU PSA RP RRF / RF SPS TA Affected Business Asphaltic Concrete Asian Development Bank Affected Household Acquired Immune Deficiency Syndrome Affected Person Central Asia Regional Economic Cooperation Country Safeguard System District/Provincial Land Acquisition and Resettlement Commission Design Institute Displaced Person Executing Agency External Monitoring Agency Gender Action Plan Grievance Focal Point Grievance Redress Committee Hectares Households Human Immunodeficiency Virus Implementing Agency Internal Monitoring Agency Kilometre Land Acquisition and Resettlement Land Code Multi-Tranche Financing Facility Project Management Unit Poverty & Socio-Economic Assessment Resettlement Plan Republican Road Fund under Ministry of Finance of Uzbekistan Safeguard Policy Statement Technical Assistance CURRENCY EQUIVALENTS (as of 22 Feb, 2013) Currency Unit sum (SUM) SUM1.00 = $ $1.00 = SUM 2,015 In this report, i. "$" refers to United States dollars (USD) ii. Sum refers to Uzbekistan Sum iii

6 Affected Persons Compensation Cut-off-date Displaced Persons Economic Displacement Entitlement Inventory of losses Land acquisition Non-titled Poor Physical Displacement Replacement cost Significant impact Vulnerable Glossary of Terms Term used to describe all people that are affected by the project impacts. In the context of a LARP it refers to those that are economically or physically displaced by the project. It is increasingly being replaced by the term Displaced Person following ADB Safeguard Policy 2009 but is still in common use in the field. means payment in cash or kind for an asset to be acquired or affected by a project at replacement cost at current market value. means the date after which people will NOT be considered eligible for compensation i.e. they are not included in the list of APs as defined by the census. Normally, the cut-off date is the date of the detailed measurement survey. Sometimes referred to as Affected Persons (APs). In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. means the range of measures comprising cash or kind compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration which are due to APs, depending on the type and degree nature of their losses, to restore their social and economic base. means the pre-appraisal inventory of assets as a preliminary record of affected or lost assets. means the process whereby a person is compelled by a public agency to alienate all or part of the land s/he owns or possesses, to the ownership and possession of that agency, for public purposes, in return for fair compensation. means those who have no recognizable rights or claims to the land that they are occupying and includes people using private or state land without permission, permit or grant i.e. those people without legal title to land and/or structures occupied or used by them. ADB s policy explicitly states that such people cannot be denied compensation. Official government statistics for share of people living under poverty line is not available. The method used to determine poverty, was based on the World Bank's under 2.15 $ per person per month measure. This figure was calculated with respect to climate conditions and other set of factors. The local equivalent was calculated based on the official exchange rate. Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. means the method of valuing assets to replace the loss at current market value, or its nearest equivalent, and is the amount of cash or kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged. means 200 people or more will experience major impacts, which are defined as; (i) being physically displaced from housing, or (ii) losing ten per cent or more of their productive assets (income generating). means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and includes; (i) female-headed households with dependents; (ii) disabled household heads; (iii) poor households (within the meaning given previously); (iv) landless; (v) elderly households with no means of support; (vi) households without security of tenure; (vii) ethnic minorities; and (viii) marginal farmers (with landholdings of five acres or less).

7 I. INTRODUCTION 1. This implementation report of LARP has been developed by the National Social/Resettlement Specialist (Consultant) for Project 2 of the Uzbekistan CAREC 2 Road Project. It follows the format, and includes the required information, as specified in the ADB Safeguard Policy Statement, In April 2010 the Board of Directors of ADB approved a program of multi tranche financing facility for CAREC Corridor 2 Road Investment Program in the amount of USD 600,0 million. 3. Project 2 comprises the new alignment and re-construction of a 2 lane asphaltic concrete (AC) road section between KM 355 and Km 440 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 2 within the overall CAREC 2 Project. 4. The Project 2 involves activities that acquired land that affected 4 households. All of the households are severely affected, because the land that acquired by the Project 2 more than 20% of total land own by each households 5. This report is prepared to record activities on implementing LARP particularly on the payment of compensation. This report is submitted to ADB as part of the Loan covenant that required the RF to fully pay a compensation prior to commencement of civil work II. THE PROJECT AND LARP FOR THE PROJECT A. Overall Brief Project Description 1. The Uzbekistan CAREC 2 MFF Investment Project, Tranche 2 6. The Uzbekistan CAREC 2 project will comprise approximately 222 km reconstructed road section of the A380 highway, and improved planning, project management, logistics, road asset management, and community facilities. The relevant A380 sections are located in Bukhara, Khorezm Provinces and the Republic of Karakalpakilstan. The project is financed through ADB s Multi-tranche Financing Facility (MFF) with 3 tranches being applied for the Investment Program. The first tranche (Project 1) commenced in 2010, and second tranche commenced in 2011, and the third tranche is being processed to obtain ADB s approval in Project 2 comprises approximately 85 km reconstructed section of the A380 highway (between Km 355 and Km 440) and procured road construction and maintenance equipment. 8. In April 2011 the Board of Directors of ADB approved the second tranche of the multi tranche financing facility for CAREC Corridor 2 Road Investment Program in the amount of USD 240,0 million. 9. The total amount of the project cost is million USD, including USD million (tranche II) through Ordinary Capital Resources (OCR) of the Asian Development Bank, and the contribution of the Republic of Uzbekistan in the amount of 50.2 million USD. 1

8 10. Loan Agreement 2746-UZB (CAREC Corridor 2 Road Investment Program) signed on April 12, 2011 and came into force from the same date. The loan closing date is June 30, Project 2 comprises the reconstruction of the current 2 lane asphaltic concrete (AC) road section between Km 355 and Km 440 (85 km) Highway A-380 "Guzar-Bukhara- Nukus-Beyneu" into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 2 within the overall CAREC 2 Project. 12. Instructions from the Road Design Institute (DI) indicate that the road pavement and shoulder will be 14m wide for each carriageway. The majority of the dual carriageway will also comprise an easement of 7 m along each side of the road. Specific section drawings provided by the DI (such as in turning areas and curves) allow for a 50m easement. 13. The proposed highway generally follows the existing A380 alignment, which is serviced by a small number of cafes, shops, garages, auto and tire repair facilities and provincial road control posts. The newly proposed carriageway is sometimes aligned to north, and sometimes south of the existing based on a number of overall design criteria (see Alternatives Considered ) 14. The project includes contracts for the following components: - Civil works; - Consulting services. 2. The Status of Project Implementation 15. After signing the loan agreement, international tender auctions on determining the construction company were started. On June 1, 2011, an advertisement posted through mass media on carrying out international retender. Technical bid opening of the construction companies on reconstruction of the highway A-380 Guzar-Bukhara-Nukus- Beyneu on the site km was held on July 12, Evaluation of technical bids finished and on September 8, 2011 approval received from ADB. On September 21, 2011 opening financial bids of the companies was held. According to the results of financial proposals, contract for constructing was awarded Kukdong Engineering & Construction Co. LTD (Korea). On November 17, 2011 contract between Republican Road Fund and Kukdong Engineering & Construction Co. LTD (Korea) was signed and on November 21, 2011 was submitted to MFERIT (Ministry of Foreign Economic Relations, Investments and Trade) for consideration. MFERIT registered the contract on March 27, 2012 and according to the contract advance payment amounting 22,42 mln. USD was paid to the company. 16. The Notice to proceed was given to the Contractor on 22 May Currently, the contractor is in the process of mobilizing resources. 2

9 B. The Scope of Land Acquisition and Resettlement Plan (LARP) 17. The widening of the existing road corridor to accommodate a grade/barrierseparated dual carriageway will result in a small number of impacts on existing private assets. Furthermore, the addition of wider sections to accommodate slow down lanes for u-turns and entry/exit of joining roads has been designed at existing road junctions where often there are cafes and shops. Nonetheless, impacts have been minimized. 18. The owners of the structures, indicating their locations are describe below (pictures of the buildings provided in Appendix 2): 1. Aslonov Sulaymon (R23731) North side of the existing road (km 372.6) is a café, gardens and auto repair facility (including pits). The café is of block construction and open air design. All will be destroyed. 2. Mirzayev Fayoz (R23771) South side of the road (km 376.3) is an ex-café and gardens to the south side of the road. The café is generally in poor condition, and non-operational. The structures and gardens no longer affected since they are located on the south side of the road. On the North side of the road Nonoperating truck Repair. Structure will be removed. 3. Ashurov Olim (R23811) North side of the road (km 381) is a large mudbrick structure. There are no fittings (windows, doors) or gardens. It is nonoperating business. 4. Murodov Tulkin (R24317) North side of the road (km 432.3) is a large mud-brick structure. There are no fittings (windows, doors) or gardens. It is abandoned structure. Owner moved his business (gas station) to another place. That is his main source of income now. 19. The summary impact to the affected households is presented in table 1 below: Table 1: Summary of Impacts Project 2 Land Structures Lost Workers KM ID Total Lost % m 2 Displaced Persons Physically Economic M F M F 1 KM R % KM R % KM R % KM R % Totals % Source: LARP October The compensation describe in the LARP include calculation of compensation as follow: Entitlements to Compensation 21. The following groups of affected persons (APs) are included in the LARF and also will be addressed in this Land Acquisition and Resettlement Plan (LARP) for Project 2: 3

10 All DPs losing land either with legal title, lease holding land rights or without legal status; Owners of buildings, crops, plants, or other objects attached to the land; and, DPs permanently losing business, income, and salaries. Formalization of Title/Registration 22. To enable the Project to compensate unregistered land users under Uzbekistan laws, representatives from the District Cadastral Offices have advised affected land users to register or update the registration of their lands and structures. Under the LARP those who have unregistered land or structures will be registered free of charge prior to compensation. This will be facilitated by the RRF. 23. DP s who have already paid for registration after project identification (November 2009), and feel that this was unjust, can elect to document their case to the grievance committee providing proof of date and amount charged. If found to contravene ADB policy, charges will be refunded by the EA. 24. The assets/structures on the affected plots of land users without titles have been evaluated by exactly the same criteria as those with titles. Compensation for Land 25. Compensation for the land will be on a land for land basis, with land being provided to owners by the District Hokimiyat following assessment by the LARC. Such land will be of equal value/productivity in a nearby location and with comparable associated services/ facilities, or compensation to provide such services. Transaction cost, registration fees, if any, will be borne by the project. 26. For DPs using land without a formal lease, their total land used (leased and without lease) will be formally combined into a single lease, without cost to the DP. The land will then be transferred under normal processes. 27. A total of 0.84 of a hectare of land is required for Project 2. Most DP s will lose 100% of their land. Land is generally arid or desert. It is expected that replacement land will be provided behind the existing lands, outside the new corridor. Table 2 shows a summary of the land required. Table 2 - Land Required for Project 2 Survey Km Land Total Acquired % 1 R % 2 R % 3 R % 4 R % Total % Source: LARP October Land Preparation costs include survey and titling, realignment of water supply and gas mains to land parcels, and the general preparation of the site for construction. As the result of construction works it is expected that 4 business structures will demolished. 4

11 According to the DI the funds have already been envisaged for the above mentioned facilities. 29. The realignment of the communal and communication facilities to land parcels and construction of access roads in complex will cost 20 million Sum per business. Survey and titling will cost 700,000 Sum per business. For project 2 these equate to 82,800,000 Sum or $44,757. A breakdown of these costs is shown in Table 3. Businesses Item Table 3 : Land Preparation Costs Sum / Unit Units 000 Sum US$ 000 Sum Survey and Title* Communal and site preparation cost Total ** Source: LARP October 2010 * Cost of survey and titling includes the cost for registering the affected assets (house, business, and lands) as well as the replacement ones. ** Official currency exchange rate on the day of preparing the report was USD 1.00 = UZS 2, All operating businesses will receive compensation for 6 months loss of business income. Income is calculated based on tax declarations, imputed earnings or average income in this area. The owner has the right to alter this amount if delay or hardship is encountered, through formal application to the grievance process. 31. Unregistered businesses will first be registered at no cost. Then they will receive compensation as per other businesses. 32. Workers Compensation for workers will be based on stated (or average) wage rates (including fixed by oral agreement with employer) multiplied by 6 months. 33. Table 4 outlines a summary of business and worker compensation. Only one business (R23731) is operating entity earning income. It employs a total of 4 workers. Business will be compensated 3,000,000 Sum ($1,557). Workers will receive 3,600,000 Sum ($1,869) in lost wages and benefits. Survey Table 4: Business and Worker Compensation ('000 Sum) Km Business Average Income per month Workers Monthly Salary Compensation Salary Business Worker R ,000 3,600 Total 4 3,000 3,600 USD 3,568* Source: LARP October 2010 * Total amount of compensation changed comparing to the LARP 2010 due to the change in official currency exchange rate on the day of preparing the report. (USD 1.00 = UZS 2,015) 5

12 Structures 34. All assets (registered or not) should be valued by independent evaluation firms through calculating the real replacement cost based on cost of materials, type of construction, labor, transport and other construction costs. No deductions will be applied for depreciation or transaction costs. The cost of reconnection to lost water, electricity, gas and telephone connections will be included in the compensation (the new land sites are assumed to have similar services available). Salvaged materials will be allowed to be taken away by the DPs prior to demolition at no charge. 35. Table 5 shows the compensation for all buildings based on assessment of local cadastral services. Total buildings replacement cost for all DP s is 25,444,588 Sum ($13,211). Table 5: Compensation for Structures ID Km Owner s name Type of business Compensation 1 R Aslonov Sulaymon Café 11,756,599 2 R Mirzaev Fayoz Ex café 3,724,077 3 R Ashurov Olim Building under construction 9,254,152 4 R Murodov Tulkin Ex gas station 709,760 Total 25,444,588 USD 13,211 Source: LARP October 2010 * Total amount of compensation changed comparing to the LARP 2010 due to the change in official currency exchange rate on the day of preparing the report. (USD 1.00 = UZS 2,015) Livelihood and Relocation Allowances 36. Livelihood Allowance - 2 households assessed as vulnerable, comprising a total of 12 people Mirzayev Fayoz (R23771) and Ashurov Olim (R23811) which will be paid an allowance of $35 per household member for three months. 37. Relocation Allowance 1 non-operating business will have to be relocated, this equates to a total payment of 163,000 Sum ($88). III. IMPLEMENTATION OF LARP C. Update LARP 38. The LARP 2011 indicated that update LARP will be prepared if detailed design will change and generate different set of impacts. This update LARP was not required, because the detail design has been finalized without generating any additional impact or change the impacts explained in the LARP The due diligence after finalizing the detailed design found consistency with the LARP 2010, where no indigenous persons (as defined by the ADB Safeguard policy 2009) inhabiting the project area. 6

13 D. Information Disclosure 40. As it was planned and indicated in the LARP that information on project schedule and compensation would be provided to the affected households prior to paying the compensation. Since the project only affected 4 households, the summary of LARP including the compensations was provided to them on February 10, All the 4 affected households signed acknowledgment that they received the information (See Appendix 1). E. Grievance Redress Committee 41. The Project has employed the existing Government Grievance Redress Mechanism. The focal Points (GFP) have been established at the district mayor s offices to coordinate and address all complaints and concerns arising from the project. The contact details are: Khakimov Furkat, Deputy Mayor. Ramitan district mayor s office. Tel: Umarov Khaydar, Deputy Mayor. Jondor district mayor s office. Tel: Nurmuhamedov Husnitdin, Deputy Mayor. Peshku district mayor s office. Tel: The GFP assists and supports by members of the Province Land and Resettlement Committee (PLARC) who will maintain a register of complaints, keep track of their status and inform the Director of PMU, if there is grievance filed by affected peoples. The GFP will tracks complaints received, actions taken and the status of resolution. However, until this report was prepared (February 2013), there is no person file any grievance. 7

14 F. Status of Compensation 1. Status of Affected Households 43. As indicated in the LARP, there are four affected households that need to receive compensation because their properties are affected by the Tranche 2. See table 6 below: Name and ID Number Aslonov Sulaymon (R23731) Mirzaev Fayoz (R23771) Ashurov Olim (R23811) Table 6: Status of Affected Households Affected Property Compensation for Property (Sum) Number of worker Vulnerable People Operated Café with total land lost 200 m 2, and structure 200 m 2 11,756,599 4 None Non-operated auto/truck repair with total land taken 160 m 2 out of the 260 m 2 3,725, owned by AH, and the area of the structure lost 105 m 2 Non-operating business with total land lost 180 m 2 and 126 m 2 structure lost Abandoned business structure total Murodov Tulkin 4 land taken 300 (R24317) m 2 out of the 500 m 2 and 21 m 2 structure lost Source: LARP October ,254, ,760 - None 44. The persons, owner of the Café, gardens and auto repair facility Aslonov Sulaymon on km 372.6, whose ID is R23731, and owner of the Non-operating truck Repair Mirzayev Fayoz on km 376.3, whose ID is R23771 are not willing to get compensation. The only information could be gathered from these 2 AHs that they are not wanting to process to register their non-registered activities. 45. According to the LARP, in order to opt compensation, any unregistered property should be legalized. This effort is also to comply with Cabinet of Ministries Resolution No 97 dated May 29, 2006 that stated only legal entities will be compensated. Therefore, based on LARP, all land, businesses and structures will be registered prior to resettlement and then transferred or compensated under the relevant entitlement. In order to get the right for using the land with the purpose of business, people should collect required documents and submit them to the local Khokimyat. This activity takes time and efforts. These 3 affected householders (R23731, R23771 and R23811) didn t follow the process to legalize their activities and they had not submitted the documents for 8

15 registering their structures to the Local Khokimyat Authorities. Three affected people provided compensation refusal letters (See Appendix 1). 46. Only owner of the ex-gas station Mr. Murodov Tulkin (R24317) on the km 432.3, have submitted all the documents for compensation. 47. Based on Khokim s order Murodov Tulkin was paid compensation in two steps. He has got the compensation (See Appendix 2). 48. According to consulting company OOO Baholash konsalting Servis Tulkin Murodov s property was evaluated as 15,000, Sum or $7,788. He provided confirmation letter to getting compensation sum 15,000, UZS (See Appendix 3). 2. Compensation for Land 49. The area of the land required and the cost of the compensation for registration to the land will be decided by the Committee under the Hokim of the region. The quality and the facilities of new land which is going to be provided by the Hokimiyat will be the same quality in a nearby location and with comparable associated services/facilities, or compensation to provide such services. 3. Revised Budget for compensation 50. The LARP 2010 has indicated that total costs for implementing LARP was around Sum 38,047,000 or equal to around USD $23,341. These costs will be changed by taking into account the following: a. The structures of the two affected household (ID 23731, and ID 23771) would no longer need to be compensated. b. No business loss, and no payment for business worker, because the owner of business (ID 23731) does not want to process to legalize business and does not want to get compensation c. No livelihood allowance and no payment for livelihood, because there are no affected Households. d. No relocation allowance is going to be paid, because the affected household with ID does not want to process to legalize their business and does not want to get compensation. The other AHs (ID and ID 24317) did not provide documents for legalizing their structures e. Land preparation costs will reduce significantly, because the replacement land will involve only 0.30 Ha. Only 1 affected household that opt for compensation had abandoned his property f. Total LARP costs will be now reduced to 8,484 USD as shown in the Table 7 below: 9

16 Table 7: Final compensation for all AP. Table 7: Summary of Compensations Land Displaced Persons KM ID Owner s name Total Lost % Type of business Compensation KM KM KM KM R23731 Aslonov Sulaymon % Café R23771 Mirzaev Fayoz % Ex-café R23811 Ashurov Olim % R24317 Murodov Tulkin % Building under construction Ex gas station refusal letter to get compensation refusal letter to get compensation refusal letter to get compensation The payment was carried out in two steps: 1. Payment order # 740 ( ), 2. Payment order #1071 ( ). Totals % 1

17 Table 8: Total LARP costs will be now reduced to 16,500 USD: Table 8: Budget for LARP Implementation LARP Sum US$ Land Preparation Costs* 0,000 0,000 Potential Changes Since the structures were nonoperating and abandoned, this amount may reduce Compensation Business Loss 0,000 0,000 As owner of this business didn t registered their illegal structure, Worker Compensation 0,000 0,000 this amount may reduce Loss of Structures 15,000 7,712 The final price was determined based on the survey of the consulting company OOO Baholash kolsalting Servis and Order of local Hokimiyat Support for Vulnerable Households Livelihood Allowance 0 0 Relocation Allowance 0 0 Since one family had refused compensation and another householder didn t not legalized his properties he provided compensation refusal letter so there is no compensation payments According to the LARP Relocation allowance Sub- Total 15,000 7,788 Contingency (10%) 1,500 0,788 TOTAL Source: LARP October 2010 * Total amount of compensation changed comparing to the LARP 2010 due to the change in official currency exchange rate on the day of preparing the report. (USD 1.00 = UZS 2,015) G. Opportunities to derive development benefits 51. The local communities, particularly AHs affected by the Tranche 2 will be given a priority to work in the construction. The contractor will need to recruit construction worker locally. Therefore, once the commencement of civil work will take place, there will be an opportunities for local communities to work in the construction. The RRF will official remind the contractor on their obligation for recruiting local communities especially AHs. There are also opportunities for local community to open business for selling foods to the construction worker. 2

18 J. Conclusions 52. The RRF closely worked with Regional Khokimiat and Regional Land Cadaster Committee to fully implementation the LARP especially to adequate and equal pay compensation to AHs. 53. Compensation for loss structures is adequate and paid in time. 54. Civil work has been started. 55. LARP activities for this subproject can be considered to be successfully completed. 3

19 APPENDIXES Appendix 1: Summary of LARP including the compensations provided to AP and Compensation refusal letters from AHs 4

20 5

21 Unofficially translation from Uzbek to English To K.N. Rakhimov The Khokim of Romiton District From Sulaymon Aslonov, 10 Mohi-Khossa, Eshlik Bukhara city resident Compensation refusal letter By the present letter I am informing you that, the reconstruction of road A-380 Beyneu- Guzor- Bukhara-Nukus, which is going through Jondor district. If the reconstruction of the road will bring a damage to my café which is located at 372 km of the road reconstruction, I will not request for any compensation of damages. I have read and listen this letter. Sulaymon Aslonov 28 July

22 To K.N. Rakhimov The Khokim of Romiton District From Fayoz Mirzaev Puu-ota Farmers Resident Unit Resident of Dukki Declaration By the present letter I want to inform you that the under reconstruction of road A-380 Beynau-Guzor- Bukhara-Nukus, which is going through Jondor district. Part of the café buildings which belong to me is located on 376 km of the road and going to be destroyed. I will not request any compensation for destroyed part of buildings. I have read and listen this letter. Fayoz Mirzaev 1 August

23 Compensation refusal letter To the Khokim of Peshky District From Olim Ashurov, Qoraqolpoq village resident of Qoraqolpoq farmers unit By the present letter I would like to explain that I have no objection for re-construction of A-380 Bukhara-Guzor-Nukus-auto-road. I am promising to demolish the building along the road which can affect to road construction. I realize if I don't destroy the building I will be punished by Law. I write this letter personally and in fully conscious. Ashurov Olim

24 Appendix 2: Romiton Hokims decree concerning purchasing of compensations Stamp Republic of Uzbekistan, Bukhara region, Romiton district Romiton Hokims D E C R E E Re: Covering of damages inflicted to the buildings which belongs to local people and being destroyed due to the execution of the project of expansion and reconstruction of part of A-380 highway Guzor-Bukhara-Nukus-Beyneu in km executed by Republican Road Fund under Ministry of Finance. In purpose of implementation of the Decree of the President of the Republic of Uzbekistan PK1331 dated on 03 of May 2010, according to the agreements signed between the Government of the Republic of Uzbekistan and Asian Development Bank for reconstruction of km of international importance highway A-380 Guzor-Bukhoro-Nukus-Beyneu, within the framework of the project of improvement of regional road Phase 2 executed by Road Fund, Ministry of Finance of Uzbekistan in partnership with ADB and reviewing the report prepared by members of land realization committee: ORDERING: 1. Within the project of reconstruction of km of highway A-380 of international importance the petrol station belonging to Murodov Tulkin Ortikovich, located in Bukhara region Romitan district of Kizilrovot region and from abstract of the meetings #10 of electron trade of real estate exchange dated on 20 th of February of 2009 according to the purchasing contract was purchased, and valuation report dated on 12 of July 2011 according to the contract by independent valuator LLC BAHOLASH KONSALTING SERVIS at the market price (fifteen million) sums was approved. The canteen building belonging to Rahmatov Uktam and located in Bukhara region, Romitan district, Gazli city and permitted for construction by hakim of Gazli city by the order #9 dated on 26 th of February 1997, evolution report according to the contract 149/04-11 dated on 12 of July 2011 by independent valuator LLC BAHOLASH KONSALTING SERVIS was approved. 2. To ask the Road Fund to cover the damages for demolishing of buildings of patrolling service belonging to Murodov Tulkin Ortikovich damaged to the property at the amount of (fifteen million) sums and canteen building belonging to Rahmatov Uktam and located in Gazli city damaged to the property at the amount of (forty one million) sums of Reconstruction of international importance highway A-380 Guzor- Bukhoro-Nukus-Beyneu. 3. First deputy of hakim is responsible for implementation of the present decree. Regional Hokim signed M.Olimov 9

25 Appendix 3: Payment lists to Murodov, Murodov s confirmation letter of getting compensation. 10

26 To the Khokim of Romiton District From Tulqin Murodov Confirmation letter By the present letter I would like to confirm that I have got compensation sum (fifteen million sum) for the belonging to me building of Oil Station which located in Bukhara region Romiton district Qizil Ravot Farmer Resident s Unit and have no objection for demolish of the building and re-construction of A-380 Bukhara-Guzor- Nukus-auto-road. I write this letter personally and in fully conscious. Sept Tulqin Murodov 11