ODRA RIVER BASIN FLOOD PROTECTION PROJECT 7436 POL

Transcription

1 ODRA RIVER BASIN FLOOD PROTECTION PROJECT 7436 POL RAP RESETTLEMENT ACTION PLAN Sociological, legal and factual constraints Issue Date By XI Marta Rak Verified by Client's Approval Description NAME OF CONTRACT FOR SERVICES DESIGN AND CONSTRUCTION SUPERVISION OF THE FLOOD PROTECTION WORKS TO UPGRADE THE WROCLAW FLOODWAY SYSTEM (WFS)" 1

2 TABLE OF CONTENTS Abbreviations... 4 Key definitions Introduction Odra River Basin Flood Protection Project (ORBFPP) - ODRA Description of Wroclaw Floodway System Project, part of Odra River Basin Flood Protection Project Identification of number of customers benefiting from the Project Legal framework Acquisition of property - existing regulations in the light of Polish legislation Legal constraints Acquisition of property - the rules and procedures in light of the Civil Code and Act on Real Estate Management Acquiring property through an agreement with the owner Acquiring property through expropriation Examination of appeals and complaints in the course of properties acquisition Property acquiring rules and procedures in the light of provisions under Act of 8th July 2010 special proceedings to prepare the investment implementation within the scope of flood control facilities, hereinafter referred to as Special Purpose Act Objective and subjective scope of provisions under Special Purpose Act Decision allowing for investment implementation vs. permanent and temporary occupation of properties Compensation for properties acquired under Special Purpose Act Additional benefits for owners or holders of perpetual usufruct of properties acquired under Special Purpose Act Application of Special Purpose Act during the Project implementation Properties necessary for acquisition for the Project implementation (DZMiUW tasks) Properties identification Identified problems and social groups Grievance Mechanism When to Establish the Project Grievance Mechanism Managing grievances Organizational arrangements Avenues to file a Grievance Audits & Independent Recourse Mechanism Monitoring and evaluation Appendices Procedures for fixing and paying compensation for permanent /temporary property occupation Procedure to establish compensation under special purpose act Typical Grievance Management Flow Chart (source: WB Guidelines) Grievance Form (based on WB Guidelines) Tables with progress of acquisition of properties for the construction purposes

3 9.6. Properties acquisition schedule Referenced documents

4 Abbreviations RAP - Resettlement Action Plan DZMiUW - Lower Silesia Board of Amelioration and Water Structures - the Employer, the Investor, Project Implementation Unit - including Representative of Lower Silesian Voivodship Investor against the Special Purpose Act - also referred to as the Responsible Entity JV Grontmij/Artelia/Ekocentrum - international joint venture; supporting DZMiUW Wroclaw in the scope of preparation of the technical design, construction supervision and supervision at defect notification period WB - International Bank for Reconstruction and Development (IBRD) CEB - Council of Europe Development Bank EC - European Commission ORBFPP - Odra River Basin Flood Protection Project WFSM- Wroclaw Floodway System Modernization Project, a part of a bigger Odra River Basin Flood Protection Project EMP Environmental Management Plan IFC International Finance Corporation POD Family Allotment Gardens EIA - Environmental Impact Assessment SMOK - System of Hydro-Meteorological Forecasting NGO non-governmental organization Special Purpose Flood Act - Act on special proceedings to prepare the investment implementation within the scope of flood control facilities of 8 th July 2010 (Journal of Laws, No. 143 item 963). Special purpose decision - a decision permitting implementation of the investment issued on the basis of special purpose Flood Act RZGW WL Regional Authority for Water Management in Wroclaw RZGW GL Regional Authority for Water Management in Gliwice ED Environmental Decision Key definitions Following key definitions are used in this documents (based on, but not limited to, definitions contained in IFC handbook for Preparing Resettlement Plans) Definitions are discussed below: Property price Negotiated with the owner amount due to the owner for that property or part of the property determined on the base of amount settled by the real estate expert. Economic displacement Loss of income streams or means of livelihood resulting from land acquisition or obstructed access to resources (land, water, or forest) resulting from the construction or operation of a project or its associated facilities. Vulnerable groups People who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by resettlement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related development benefits. Replacement cost The rate of compensation for lost assets must be calculated at full replacement cost, that is, the market value of the assets plus transaction costs. Compensation Payment in cash or in kind for an asset or a resource that is acquired or affected by a project at the time the asset needs to be replaced. Compensation is paid when the asset must be acquired. In compliance with Polish law, compensation shall be paid when the expropriation decision becomes final and in all cases before the land is accessed and taken for project construction purposes. OP 4.12 on Involuntary Resettlement- This Operational Directive embodies the basic principles and procedures that underlie the IBRD s approach to involuntary resettlement associated with its investment projects. 4

5 Project-affected person Any person who, as a result of the implementation of a project, loses the right to own, use, or otherwise benefit from a built structure, land (residential, agricultural, or pasture), annual or perennial crops and trees, or any other fixed or moveable asset, either in full or in part, permanently or temporarily. Involuntary resettlement Resettlement is involuntary when it occurs without the informed consent of the displaced persons or if they give their consent without having the power to refuse resettlement (e.g. through expropriation). Expropriation the process whereby property law of a given person to a particular property is limited or required to be relinquished by an individual act. Purchase / voluntary sale - a transaction of acquisition of the property for investment from its previous owner / holder for the amount accepted by both parties and where the owner has the option to say no. If the project can resort to expropriation, then the purchase is not considered voluntary (i.e. willing buyer/willing seller). 5

6 1. Introduction This is the Resettlement Action Plan (RAP) drawn up for the Wroclaw Floodway System Modernization Project covering 55 investment structures listed in table No. 3.1, which are implemented by Lower Silesia Board of Amelioration and Water Structures (DZMiUW). Remaining tasks, which are part of WFSM Project, are implemented by Regional Authority for Water Management in Wroclaw (RZGW WL). A separate RAP has been drawn up for the Project part implemented by RZGW WL. This RAP has been prepared in accordance with the requirements of the International Bank for Reconstruction and Development (IBRD) (Operational Policies OP 4.12., Involuntary resettlement). Decisions on environmental constraints (environmental decisions) have been obtained for all the structures/tasks of WFSM Project implemented by DZMiUW. These decisions are final. Environmental Management Plans have been drawn up for each Works Contract (6) based on Environmental Impact Assessment Reports and issued decisions. All EMPs (for Works Contracts B1-1, B1-2, B1-3, B1-11, B3-1 and B3-2), after public consultations, obtained No objection clause. In case of structures implemented under subcomponent B1, DZMiUW have final building permits for 9 structures of WFSM Project, decisions allowing for investment implementation for 10 structures. Contractors have been selected in tender procedures carried out in accordance with the procedures of the World Bank for all four Works Contracts carried out under Component B1. Currently, works are executed on all works contracts. The Project has obtained funding from the EU Cohesion Fund under the Operational Programme Infrastructure and Environment. In the case of structures of sub-component B3, design documentations have been drawn up and four applications for permit for implementation have been submitted (as of December 2013). For both works contracts B3-1 and B3-2, tender procedures are carried out for the selection of contractors. "No objection" clause from the World Bank was received for Prequalification Reports for Applicants. Applicants qualified to the second stage of the tender received bidding documents. Bids were submitted on The Bidding Committees recommended the Works Contractors. The Employer is waiting for World Bank s No objection for BER (Bidding Evaluation Report). In 2012, for all the Odra River structures, an agreement was signed with the notary to draw up notarial deeds transferring the ownership of real property required for the Modernization of Wroclaw Floodway Project to the State Treasury (in the case of plots acquired under the Act on Real Estate Management). In 2012, the property appraiser was chosen to prepare property appraisal reports for all the Odra River structures. In May and June 2014, the property appraisers were chosen to prepare property appraisal reports for all the Widawa River structures. Main parties involved at present in the preparation and implementation of the Project WFSM in the part performed by DZMiUW: Lower Silesia Board of Amelioration and Water Structures (DZMiUW) a local government unit of Lower Silesian Voivodship without legal personality, supervised by the Board of Lower Silesian Voivodship. DZMiUW Wroclaw performs tasks of the Self-Government set out in separate Acts (including Act of 5 June 1998 on voivodship self-government consolidated text, Journal of Laws of 2001, No. 142, item 1590, as amended), in particular, within the scope of the modernization of rural areas, environmental protection, water management, including flood protection, equipping and maintenance of flood control warehouses. Moreover, DZMiUW Wroclaw carry out tasks of government administration law entrusted to the Lower Silesia Marshal and the Marshal's own responsibilities under the provisions of the Act of 18 6

7 July 2001, the Water Law (consolidated text, Journal of Laws of 2005 No. 239, item 2019, as amended) - including the ownership of water, water management and drainage and water companies; JV Grontmij/Artelia/Ekocentrum - international Joint Venture (JV); the entity responsible for preparation of the technical design, construction supervision and supervision at defect notification period etc. The aim of the document is to ensure that, the processes are conducted in accordance with the principles of social coexistence in accordance with Polish law and international principles of good practice. This said report covers identification of the problems and suggestions for possible mitigation measures. 2. Odra River Basin Flood Protection Project (ORFPP) - ODRA 2006 Odra River Basin Flood Protection Project (ORFPP) supports the implementation of two main tasks planned within "Odra River 2006 Programme": - protection of human and animal life and material goods, - long-term development of the city of Wroclaw and the surrounding localities As a result of the project, reduction of frequency and range of flooding in the densely populated area of Wroclaw and in the valley of the middle Odra is expected. This objective shall be achieved through: 1) construction of a dry polder in Raciborz, which will store extreme waters from flood surges, reducing the flood wave peak below the reservoir, thereby increasing the efficiency of the system of flood control in the lower river course 2) increase of capacity of the Odra River and its valley for the flood waters around Wroclaw. Improve flood safety in the area of Wroclaw with embankments, by increasing and strengthening the existing embankments, construction of new embankments, capacity increase of the bed and the valley of the Odra and Widawa Rivers, so that bigger flood waves could flood flow freely through the city. The "Odra River Basin Flood Protection Project" consists of following main components and their parts: A) A. Construction of Raciborz Dry Polder: A.1. Construction of dry polder, A.2. Implementation of resettlement plan, A.3. Design and supervision. B) Modernization of the Wroclaw Floodway System (WFS): B.1. Improvements to Odra dikes and embankment, B.2. Improvements to the Odra Channels, B.3. Flood relief through the Widawa Transfer, B.4. Design and supervision, B.5. Resettlement Costs. C) Improving Flood Management, Monitoring and Evaluation, and Supervision of the Environmental Management and Resettlement Action Plans: C.1. Institutional strengthening for the improvement of flood protection in the basin of the Odra River with the participation of local governments and concerned institutions and individuals, 7

8 C.2. Further support of activities aiming at improving flood forecasting system in order to ensure the functionality of currently implemented - System of Hydro-Meteorological Forecasting (SMOK), C.3. Further improvements to flood protection plans and support in preparation of flood protection projects, C.4. Monitoring and assessment EIA, EMP and RAP, C.5. Implementation of the tasks indicated in the EMP, which were not planned for implementation as a part of the remaining components (e.g. natural compensation in ecological corridor in the Odra River) and which cannot be funded through other projects, which are elements of the Odra River 2006 Programme. D) Project Management, Technical Assistance and Training: D.1. Project Management, D.2. Technical Assistance and Training. Entities responsible for implementation ORFPP RZGW Gliwice is responsible for implementation of the tasks connected with Raciborz dry polder (Component A). RZGW Wroclaw is responsible for the modernization of the Odra river channels and hydraulic structures in Wroclaw Floodway System (Component B2), and Lower Silesia Board of Amelioration and Water Structures in Wroclaw (DZMiUW) is responsible for the modernization of embankments in the city and for the construction transfer of the part of flood waters to the Widawa river (B1 and B3). Full-time personnel necessary to implement the Project have been employed by these institutions. RZGW Wroclaw supervises the preparation of a plan to improve flood protection (component C1), as the body responsible for this task. To accomplish this task, provincial and municipal authorities of Raciborz, Opole, Wroclaw, IMGW, and other stakeholders from the Odra River basins are actively involved. Improvement of the flood forecasting system and Monitoring and Protection System (Component C2) is executed by IMGW. Project Coordination Unit, together with the Ministry of Environment implement components C3 and C4. The tasks identified in the EMP (Component C5) are implemented by institutions responsible for implementing individual components. When justifiable, these works shall be carried out under separate contracts concluded by the implementing agencies. Strengthening of the ecological corridor of the valley of the Odra River, proposed in the EMP shall be implemented by the Regional Directorate of State Forests subject to the Ministry of Environment in collaboration with Regional Directors of Environmental Protection in the provinces of Silesia, Opole and Lower Silesian, marshal's offices, NGOs and universities. 3. Description of Wroclaw Floodway System Project, part of Odra River Basin Flood Protection Project In the current situation, flood-flow of less than m³/s can be safely carried through Wroclaw, while the maximum flood flow in 1997, recorded in Trestno, just above Wroclaw, was m³/s. Raciborz Dry Polder shall provide only partial protection for Wroclaw, and this is why the project must be supplemented with the modernization works and reconstruction of floodway system and capacity increase of the bed of Odra and Widawa in and around Wroclaw. Works within the area of WFS shall include three types of investment tasks: B.1 Improvements to Odra dikes and embankment The works shall include embankment strengthening against hydraulic damage, heightening of embankment 8

9 crest. The beneficiary of Component B1 is Lower Silesia Board of Amelioration and Water Structures B.2 Improvements to the Odra Channels. The aim of these works is to increase the hydraulic capacity of the Odra consisting of extending and/or dredging: Flood Odra Channel, bed of the Old Odra along the City channel and reconstruction of Rozanka lock and 4 bridges, City Channel, Odra Srodmiejska, including the reconstruction of permanent bar with hydro-electric power station Wroclaw and flood protection improvement of Popowice port, the bed of the Odra from connection of the Odra Srodmiejska with Old Odra to the mouth of Widawa and modernization of Redzin bar and lock. The beneficiary of Component B2 is RZGW in Wroclaw B.3 Flood relief through the Widawa Transfer. Capacities of the current channel for flood waters on Widawa are to be increased to about 185 m³/s (320 m³/s in situation of catastrophic floods). This will be addressed by the following: construction of a new flap weir on the inlet to Odra-Widawa channel, modernization of embankment covering removal of parts of embankments and the construction of new sections more remote from the Widawa bed (widening of the inter-embankment area), increase of the capacity of three railway bridges and five road bridges. The beneficiary of Component B3 is Lower Silesia Board of Amelioration and Water Structures. Each project consists of several tasks covering from few to dozen structures, tasks performed by DZMiUW are summarized in the table below. Table No. 3.1 Structures implemented under Component B Subcomponents B1 and B3 Subcomponent Name of task Name of structures B1 Construction of flood control structures/plant in the city of Wroclaw as part of activities related to modernization of the Wroclaw Floodway System structures located above and below the city of Wroclaw B1.1.1 Blizanowice Trestno (polder embankment)- redevelopment of embankment; (WFS Structure No. 3), B1.1.2 Kotowice Siedlce redevelopment of the embankment (WFS Structure No. 1), B1.1.3 Radwanice - stage II modernization of the polder embankment on the section opolska road Siechnice, Sw. Katarzyna commune (WFS Structure No. 2), B1.1.4 Siechnice redevelopment of embankment (WFS Structure No. 20a), B1.1.5 Opatowice redevelopment of the embankment (WFS Structure No. 4), B1.1.6 Nowy Dom elevation of the embankment (WFS Structure No. 5), B1.1.7 Nowy Dom elevation of the embankment (WFS Structure No. 6), B1.1.8 Jeszkowice construction of the embankment (WFS Structure No. 7), B1.1.9 Kamieniec Wroclawski Wojnow redevelopment of the embankment (WFS Structure No. 8), B Miedzyrzecka- redevelopment of the embankment (WFS Structure No. 47), B1.2.1 Maslice redevelopment of the embankment (WFS Structure No. 16), B1.2.2 Pracze Odrzańskie redevelopment of the embankment (WFS Structure No. 17), B1.2.3 Janowek redevelopment of the embankment (WFS Structure No. 18), B1.2.4 Szczepin redevelopment of the embankment (WFS Structure No. 13), B1.2.5 Kozanow redevelopment of the embankment (WFS Structure No. 15), B Rozanka redevelopment of the embankment (WFS Structure No. 10), B1.2.7 Redzin - redevelopment of the embankment (WFS Structure No. 11), B1.2.8 Lesica shift of the embankment (WFS Structure No. 12), B.3 Construction of flood control structures/plant in the city of Wroclaw as part of activities related to modernization of the Wroclaw Floodway System for Odra- Widawa transfer channel and for embankments located in the valley of Widawa together with bridges. B3.1 Transfer Odra -Widawa - Flap Weir (WFS Structure No. 40) B3.2 Redevelopment of the Road Bridge (WFS Strucutre No. 41.1) B3.3 Redevelopment of the Railway Bridge (WFS structure No 41.2) B3.4 Extension of the channel (WFS structure No. 41.3) B3.5 Redevelopment of the Road Bridge B. Krzywoustego (WFS structure No. 42.1) B3.6 Redevelopment of the Railway bridge B.Krzywoustego (WFS structure No ) B3.7 Channel new right-bank embankment (WFS structure No. 44.1) B3.8 Channel new left-bank embankment (WFS structure No ) B3.9 Swojczyce new embankment (WFS structure No ) B3.10 Kowale- new embankment (WFS structure No 44.13) B3.11 Kowale embankment modernization (WFS structure No 45.6) B3.12 Wilczyce new embankment (WFS structure No. 44.2) B3.13 Embankment modernization (WFS structure No. 45.5) B3.14 Wilczyce embankment modernization (WFS structure No. 45.2) B3.15 Embankment modernization (WFS structure No. 45.1) B3.16 Embankment demolition (WFS structure No. 46.1) B3.17 Zgorzelisko (to B. Krzywoustego St.) new embankment (WFS structure No. 44.3) B3.18 Redevelopment of the Road Bridge in Widawa (WFS structure No. 42.2) B3.19 Redevelopment of Road Bridge Pegowskiego (WFS structure No. 42.3) B3.20 Redevelopment of Railway Bridge Pegowskiego (WFS structure No ) 9

10 Subcomponent Name of task Name of structures B3.21 Capacity enlargement of the bridge on Stara Widawa in Psary (WFS structure No. 43) B3.22 Krzywoustego- track new embankment )WFS structure No ) B3.23 Soltysowice (embankment along the downtown bypass) (WFS structure No ) B3.24 Polanowie new embankment (WFS structure No ) B3.25 Pracze Widawskie new embankment (WFS structure No ) B3.26 Pracze Widawskie embankment demolition (WFS structure No. 46.2) B3.27 Swiniary embankment modernization (WFS structure No ) B3.28 Krzywoustego track, embankment modernization (WFS structure No. 45.3) B3.29 Psie Pole new embankment (WFS structure No. 44.4) B3.30 Klokoczce new embankment (WFS structure No. 44.5) B3.31 Krzyzanowice new embankment (WFS structure No. 44.6) B3.32 Krzyzanowice embankment modernization (WFS structure No. 45.4) B3.33 Psary new embankment (WFS structure No. 44.7) B3.34 Psary - annular embankment (WFS structure No. 44.8) B3.35 Szymanow new embankment (WFS structure No. 44.9) B3.36 Szewce new embankment (WFS structure No ) B3.37. Paniowice embankment demolition (WFS Structure No. 19) (WFS Structure No. 19), Embankments, included in subcomponent B1, are located in the valley of the Odra River between 220 km (Siedlce, community Olawa) and 268 km (Janowek, Wroclaw). Projects also cover construction and reconstruction and strengthening of the existing embankments on the vast length, and so their location is determined by the existing embankments route. On the total 62.8 km length of the embankments (covered by component), sections of embankments in the new location will be constructed on the length of 5.7 km. The designs also anticipate the demolition of three sections of the embankment on length of 2.5 kilometers (including the demolition of the polder embankment Paniowice). Embankments are located km from the left bank of the Odra river and and protect urban areas with intensive land use and agricultural land. Wooded areas, marshy, numerous lakes and the land used for agriculture are located in the inter-embankment area. Subcomponent B3 covers (except for flap weir and Odra-Widawa channel) embankments along the Widawa river. Embankments will have the function of flood protection for Widawa River valley, in the conditions of using Widawa river as relief channel for Wroclaw and transfer of water from the Odra River in the amount of 300 m³/s during the control flow. The total length of embankments (new and redeveloped) under Component B-3 is approx km. 4. Identification of number of customers benefiting from the Project Potential flood risk area comparable to the flood of 1997 covers a significant part of the city of Wroclaw. Wroclaw City Population in 2009 was around and in 1997 approximately people. The size of the damage caused by the flood of 1997, should therefore be reduced by 1.6% to obtain the value of the potential damage with the flood risk in scale comparable to that of According to data from Emergency Management Departments, the number of damaged residential buildings was in In turn, according to data from the Flood Monograph by IMGW, the figure was Taking into account a decrease by 1.6% as a result of population decrease in Wroclaw in the years , the number of affected households is approx After multiplying the number of households affected by the average household size equal to 3 persons, one can receive a number of people at risk of flooding 265,45 thousand. In the province of Lower Silesia, in which the losses in the flood of 1997 were the highest (30%), people were evacuated, and hectares of agricultural land was flooded. In turn, flood area in relation to housing developments in Lower Silesia province amounted to ha. Analysis of residents capacity to bear specific tolls for the maintenance of the project in years of operation has not been carried out, because people will not bear both investment and maintenance costs of the property generated under this Project. 10

11 Demographic forecast by the Central Statistical Office for Lower Silesia shows a decline in the number of urban population by 12% in 2035 compared to Using the trend of CSO projection for residents of towns in Lower Silesia, population forecast has been developed for city of Wroclaw: Table No Forecast number of Dolnoslaskie Voivodship and Wroclaw population Year Dolnoslaskie Voivodship population Wroclaw population Change, % ,01% ,78% ,02% ,02% ,20% ,21% ,22% ,23% ,24% ,25% ,27% ,26% ,29% ,31% ,34% ,37% ,40% ,42% ,45% ,47% ,49% ,51% ,53% ,55% ,56% ,57% ,58% ,59% ,60% ,61% ,62% ,63% Wrocaw population/ Dolnoslaskie, average: 21,98% Wroclaw population 2035/2009: 90,88% Source: demographic forecast by GUS and own study. In the table above, number of people affected by flood in 1997 has been presented, extrapolated for subsequent years according to the trend of CSO for population in towns in Lower Silesia. According to data from the Emergency Management Department of Voivodship Office (included in annex to IX Feasibility Study of 2004), flood of 1997 covered a number of companies, including: - Miejskie Przedsiebiorstwo Komunikacyjne (Municipal Transport Company) in Wroclaw (loss of 60 million PLN); - Power Plant in Wroclaw (PLN 58 million); - University of Technology in Wroclaw (PLN 16 million); - Polifarb Wroclaw (PLN 11 million); - Viscoplast Wroclaw (PLN 8 million); - Zaklady Wyrobow Sanitarnych (loss of PLN 1.6 million); 11

12 - Cooling Plant "Lodam" (PLN 1.5 million); Total losses of companies in Wroclaw amounted to approximately PLN 199 million farms was destroyed in Lower Silesia. According to data from the Emergency Management Department of Voivodship Office (included in Annex IX to Feasibility Study of 2004), flood of 1997 affected 33 primary schools, 10 secondary schools, 38 kindergartens, 10 dispensaries, 4 facilities of government and local government administration, two museums, four cultural centers / nurseries, 3 libraries, and six of sports facilities in the city of Wroclaw. Municipal infrastructure suffered heavy losses, as five water treatment plants, two wastewater treatment plants and 17.3 km of sewerage were flooded. In Lower Silesian Voibodship, a large number of public facilities of regional importance was damaged. Among them were 9 hospitals, 24 churches, 23 cultural facilities (including the Polish Theatre in Wroclaw), 23 court buildings, archives, banks, 8 urban complexes and 24 urban parks. 5. Legal framework 5.1. Acquisition of property - existing regulations in the light of Polish legislation The most important Polish legal acts relating to the acquisition of property associated with the construction of flood control facilities and plant are as follows: The Constitution of the Republic of Poland as of 2 nd April 1997 (Journal of Laws No. 78, item 483, as amended); Act on Real Estate Management, as of 21st of August 1997 (consolidated text, Journal of Laws of 2010 No. 102 item 651, as amended); The Law on Spatial Planning and Development as of 27 th March 2003 (Journal Laws No. 80, item 717, as amended); Act - Environmental Law, 27 th April 2001 (consolidated text, Journal of Laws of 2008 No. 62 item 627, as amended). Law - Water Law of 18 th July 2001 (Journal of Laws, of 2005, No. 239 item 2019, as amended). Act - Civil Code of 23 rd April 1964 (Journal of Laws No. 16, item 93, as amended); Act on special proceedings to prepare the investment implementation within the scope of flood control facilities of 8th July 2010 (Journal of Laws, No. 143 item 963). Act on providing information on the environment and its protection, public participation in environmental protection and the environmental impact assessment as of 3 October 2008 (Journal of Laws, No. 199 item 1227, as amended) 5.2. Legal constraints Acquisition of real estate necessary for Project implementation (part of MFSM implemented by DZMiUW Wroclaw) shall take place adequate to the preparation process of the structure to realization. Final decisions on building permit were issued for 9 structures, before the entry into force of the Special Purpose Act. Therefore, for these structures, the Project shall be implemented on the basis of existing regulations, and thus, inter alia, under the provisions of the Civil Code and Law on Real Estate Management. Acquired property shall become the property of the State Treasury. However, structures covered by the scope of Special Purpose Act shall be implemented under Special Purpose Act. From the date of obtaining the decision allowing the investment implementation, properties or their parts covered with it shall become the property of the State Treasury. The following are detailed rules for the acquisition of properties. 12

13 Acquisition of property - the rules and procedures in light of the Civil Code and Act on Real Estate Management Polish law provides for detailed rules for obtaining properties (permanent or temporary occupation) needed to achieve public goals. Firstly, it provides for the acquisition of property from the owners by voluntary transfer to the Responsible Entity pursuant to civil contracts concluded with them. However, if this proved impossible, Polish law provides for certain administrative procedures that enable the acquisition of property for the public purpose investment. These procedures involve active participation of property owners at every stage and ensure the satisfaction of their legitimate interests by receiving equitable compensation or replacement property. The same applies to the property temporary occupation. It usually occurs through voluntary temporary transfer of part or all of the property for construction purposes, subject to fair payment - compensation. If the voluntary transfer of such property for building purposes is impossible, it is possible to initiate appropriate administrative procedure aimed to enable the occupation of specific properties for a certain period of time in connection with the execution of public tasks, for fair compensation granted to the owners of those properties. The following discusses the two ways of obtaining property for the purposes of public tasks implementation, namely: 1. agreement with the owner of the property and conclusion of an civil agreement with them on the basis of which compensation shall be paid to them, and 2. instigation of appropriate administrative procedure and obtaining relevant administrative decision (expropriation or granting the ownership) to favor of the State Treasury, for fair compensation in case if agreement proves impossible Acquiring property through an agreement with the owner Every time when it is necessary to obtain property (permanent or temporary) for purposes of the Project, a priority for the responsible entity is to reach agreement with the owner of the property as to the conditions of transfer of ownership / usufruct of the property to the State Treasury, or its temporary seizure. Reaching an agreement shall be preceded by conducting an information campaign among the people who are eligible owners or holders of property. Acquisition or temporary occupation of these properties shall be carried out primarily through earlier consultation with those people, getting to know their expectations and informing them on further course of proceedings. Conditions, agreed with the eligible owners or holders of real estate, shall provide in particular appropriate price for the transfer of property ownership or appropriate compensation for the use of that property in the course of the Project. Negotiations with property owners in each case shall be preceded with an independent and objective valuation prepared by a qualified expert in real estate determining the value of the property and therefore the amount of compensation which should be properly paid to the landlord for the use of that property in the Project. Only when reaching an agreement with the owner of the property proves to be impossible in a reasonable period, the responsible entity shall address the relevant administrative authorities proposing the initiation and conduct of the procedure provided in Polish law, and seeking to expropriate the property to the State Treasury. In the event that, the acquisition of property with unclear legal status shall be necessary for the Project, the responsible entity in the first place shall endeavor to establish the identity of the property owner, and then when that proves impossible within a reasonable time, shall address the appropriate administrative authorities with a request to carry out the procedure of expropriate (as below). Acquiring ownership to the whole or separated parts of property each time shall be proceeded with for the price fixed according to the present market value, or in case of expropriation for just compensation. 13

14 If the former property owners property so wish, the responsible body shall provide them with support, in order to obtain ownership of replacement property by them, instead of cash compensation Acquiring property through expropriation Under Polish law, expropriation may be made only as to the real estate located on areas designated for public purposes in local land use plans, or to the property for which a decision determining the location of a public investment was issued. Expropriation may be accomplished if the public purposes cannot be achieved otherwise than by deprivation or limitation of property rights and those rights cannot be acquired by agreement. If only a part of property has been covered with expropriation and the remainder is not suitable for the proper use, as it has been used so far, this remainder is acquired under agreement in favor of the State Treasury or local government unit, depending who shall own the acquired property, at the owner's request of the request of the holder of perpetual usufruct. Polish law does not provide compensation for the properties which are in the possession of persons who have no legal title to these properties. The initiation of expropriation proceedings must precede the negotiations for the acquisition of rights to the property under contract carried out between the starost, executing the public administration task, and the owner or holder of perpetual usufruct of real estate and also the person who is entitled to limited property right to the property. Replacement property may be offered in the course of negotiations. In the case of property with unclear legal status - property, for which the holders of property rights to it cannot be determined due to lack of land register, a collection of documents or other documents the starost (performing the government administration tasks) gives information on intention to expropriate to the public in the manner customary in a given locality and on the websites of starost s offices, and through advertisements in the national press. If the expropriation relates to part of the property, the notice shall also state the information on intention to initiate proceedings on the division of the property. If, within two months from the date of the notice of intention to expropriate the property of unclear legal status the persons having property rights to the property shall not come forth, proceedings on the division and the expropriation proceedings may be initiated. Manner for compensation determination has been described in Table Examination of appeals and complaints in the course of properties acquisition. Civil agreements If the responsible entity has reached an agreement regarding the terms of transfer of ownership / usufruct of real estate with a property owner, transfer of ownership shall be done through civil actions, i.e. the sale agreement in the form of notarized deed. In this case, the notary, acting as a public trust person, must inform both parties to the agreement, including, in particular natural person the seller, about all the consequences that entails the conclusion of that agreement and make sure that all the provisions of the agreement are understandable to both parties and that they express their consent to them. Conclusion of the agreement in the form of notarized deed, in the presence of the notary acting as a public person, minimizes the risk of making a statement of will with the legal defect by the property owner. However, the responsible entity shall make every effort to eliminate any doubt as to the content of legal action. Expropriation In case when the properties shall be obtained as a result of issuing administrative decisions on the expropriation or granting ownership to the State Treasury, Polish law provides for the detailed procedure of appeal against such decisions. 14

15 The property owner can lodge an appeal within 14 days from receipt of the decision on expropriation and compensation issued by the starost (performing the task of public administration). Information on right to appeal, according to Polish law, is contained in the decision. Appeal against decision is considered by public administration authority of a higher instance, i.e. the governor. The decision issued in the appeal proceedings may be appealed to the voivodship administrative court within thirty days from the date of receiving notification to the plaintiff. Under Polish law, the decision, in respect of which action may be brought to the common court of law or complaint to the administrative court, should include instruction on the admissibility of an action or complaint. There are two-instance proceedings before the administrative court. The party may bring a cassation appeal to the Supreme Administrative against decision of the voivodship administrative court within thirty days from delivery of a copy of the decision with the justification to the party. Polish law protects property owners against unauthorized depravation of property by expropriation, and obligates the administrative bodies and then administrative courts to inform each time about the possibility of an appeal against the decisions. However, the responsible entity provides for additional information to the owners of expropriated properties on the possibility of lodging appeals against expropriation decisions. Examination of cases by civil courts In each case of the unauthorized infringement of ownership right, the property owner is entitled to protect their rights. For this purpose, they may notify the law enforcement bodies about unauthorized intrusion on the owned property, as well as demand to stop infringements of ownership right by bringing action to the civil courts. In any case, in which the unlawful seizure of property shall cause harm to the owner of that property, they shall be, in accordance with Polish law, entitled to file a suit in civil court for damages on their favor. In the case where the ownership of the property is disputed, the responsible body shall bring an appropriate action to court to determine ownership or release certain real property owned by an unauthorized person. Bringing actions by the responsible entity is conditioned by the fact whether the responsible entity is entitled to bring proceedings in this given case Property acquiring rules and procedures in the light of provisions under Act of 8th July 2010 special proceedings to prepare the investment implementation within the scope of flood control facilities, hereinafter referred to as Special Purpose Act. On 8 July 2010, Polish Parliament passed a Special Purpose Act aiming at simplifying and accelerating the implementation of procedures related to the flood control investments. The provisions of the new Act apply to issues related to the acquisition of real estate in favor of the State Treasury, voivodships, counties and municipalities. In support of the Act, it has been indicated that, it is to serve the effective implementation of tasks within implementation of the flood control investments, using funding from the EU and international organizations obtained for this purpose. Until the introduction of this Act, implementation of flood protection investments required multistep procedures, which consisted of obtaining a series of administrative decisions (e.g. decisions on the location of a public investment, the decision approving the division, the decision on building permit) and carrying out procedures designed to obtain a permanent or temporary occupation of the properties (negotiations with the owners or obtaining expropriation decisions). Meanwhile, in accordance with the provisions of the Special Purpose Act, the competent administrative authority shall issue a single, integrated decision on the whole flood protection investment, i.e. the decision allowing implementation of investment (a special purpose decision). Property rights limitations, which shall result from the aforementioned decision shall be 15

16 rewarded by granting compensation or replacement properties to the owners or holders of perpetual usufruct of these properties Objective and subjective scope of provisions under Special Purpose Act Following entities are considered as Investor within the meaning of the Special Purpose Act: regional board for water management, maritime office, region/voivodship, province, municipality or private partner implementing the investment within the flood control structures. These entities shall submit applications to the competent administrative authority, i.e. the governor, for issuing a special purpose decision. This application concerns investments within the flood control structures. The objective scope of the discussed Act was indicated by defining the concept of flood control structures by the legislator. In accordance with art. 2 (1) under the Act, following structures are considered to be flood control structures: flood relief, flood control polders, dams and reservoirs with a flood retention, dry flood control reservoirs, embankments, storm gate, flood gate, controls in estuaries to the sea and see flood control structures - along with facilities operationally related with them. This implies that in case of classification of individual objects covered by the Project as a flood control structures within the meaning of the Special Purpose Act, the investor shall implement an investment within the scope of these structures under this Act and shall submit application to the governor for issuing a special purpose decision Decision allowing for investment implementation vs. permanent and temporary occupation of properties. After recognizing the application filed by the investor, the governor shall issue a decision allowing for investment implementation, which covers a number of matters regulated so far with a separate administrative decisions. Obtaining of the special purpose decision is equivalent with obtaining decision on development conditions or decision on location of the public interest investment. Furthermore, the decision shall include, among others: determination of lines dividing the land and approval of the property division (elements of division decision) and approval of the building permit design (element of building permit decision): property or parts thereof, which are part of the investment necessary for its implementation, to which ownership rights shall be transferred to the State Treasury or local government units, property or parts thereof, which are part of the investment necessary for its operation, to which ownership rights shall be transferred to the State Treasury or local government units, but which usage is permanently limited. The above means that, as of the date on which the special purpose decision becomes final, the ownership rights to properties specified in the application, by virtue of law, shall be transferred to the State Treasury or a local government unit. This decision shall provide a basis to make entries in the land register and real estate cadastre. In case of the establishment of permanent restrictions on property within their usage, the owner or holder of perpetual usufruct of property may demand the purchase of property by the State Treasury or local government unit, on the basis of an application filed within 90 days of receipt of the notice on initiation of proceedings for issuing a decision permitting the investment implementation. If only a part of property becomes the property of the State Treasury or a local government and the remainder is not suitable for the proper use, as it has been used so far, the investor is required to purchase the remainder of the property at the owner's request. This regulation addresses the issue of so-called "leftovers" that remain after the transfer to the State Treasury or local government unit 16

17 separated part of the property. In this case, the owner (a holder of perpetual usufruct) of property is entitled to claim for purchasing the rest of the property by a public body Compensation for properties acquired under Special Purpose Act. The owner or holder of perpetual usufruct of the property is entitled to compensation due to transfer of ownership rights to the State Treasury or a local government unit. The amount of this compensation is determined during the arrangements made between the investor and the current owner or holder of perpetual usufruct. Compensation is paid by the State Treasury or the appropriate local government unit. Arrangements shall be made in writing, otherwise null and void. If there is no negotiated amount of compensation within two months from the date on which decision allowing for the investment implementation becomes final, the amount of compensation shall be established by the Governor's decision. The provisions under Act on Real Estate Management are applied to determine the amount and payment of compensation. These provisions are discussed above under p. II 5. The amount of this compensation is determined by licensed real estate experts on the basis of market value (and if it cannot be determined, then on the basis of replacement or cadastral value) of the property. The compensation amount is determined according by the condition of the property as of the date of the decision allowing for investment implementation by the authority of first instance and the value of that property as of the day on which the compensation is determined. The decision establishing the amount of compensation, same as the decision on permit for the investment implementation, can be challenged by a party by filing an appeal to a higher degree of authority (the minister responsible for building matters, spatial and housing economy). Appeal against this decision does not, however, preclude the payment of compensation to the recipient - in accordance with art. 21 (11) under the Special Purpose Act, the party making the appeal may submit a request for payment of compensation determined in the special purpose decision, and the State Treasury or a local government unit is required to pay this amount even thought the appeal has been filed. Payment of the compensations does not affect an ongoing appeal proceedings. Compensation enjoyed by the owner or holder of perpetual usufruct is reduced by an amount of the limited property rights established on the real estate Additional benefits for owners or holders of perpetual usufruct of properties acquired under Special Purpose Act The Special Purpose Act provides detailed regulations on the basis of which the owners and holders of perpetual usufruct of properties, that are owned by the State Treasury or local government units, shall be entitled to payment of additional benefits. If the former owner or holder of perpetual usufruct of the property covered with the special purpose decision will release this property in a period specified in the Act, the amount of compensation available to them is increased by amount of 5% of the property value. Former owners or holders of perpetual usufruct of property, which became by law the property of the State Treasury, may use the property free of charge to the deadline specified in the special purpose decision Application of Special Purpose Act during the Project implementation. As it has been discussed in point , Special Purpose Act shall be applied in cases of investments connected with flood control facilities. 17