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

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1 Supplementary Appendix D-1 Land Acquisition and Resettlement Plan Short Land Acquisition and Resettlement Plan for Fergana Water Supply System Document Stage: Draft Project Number: March 2010 Uzbekistan: Water Supply and Sanitation Services Prepared by the Uzbekistan Communal Services Agency of the Republic of Uzbekistan for the Asian Development Bank (ADB). The resettlement document is that of the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or staff, and may be preliminary in nature.

2 EXECUTIVE SUMMARY In 2009, the Government of the Republic of Uzbekistan (the Government) entered into a Financing Framework Agreement (FFA) with the Asian Development Bank (ADB) for a multitranche financing facility (MFF) to finance the Water Supply and Sanitation Services Investment Program (the Investment Program), in an aggregated amount not exceeding $300 million from ADB's Special Funds resources. On 29 September 2009, the ADB Board of Directors approved the MFF Program with the Uzbekistan Communal Services Agency or "Uzkommunhizmat" (UCSA) as the Executing Agency (EA). For Tranche 2, the Government requested ADB to finance rehabilitation and expansion of water supply and wastewater management systems in Andijan, Fergana, Kokand, and Margilan cities and water supply system in Rishtan city, which are priorities for development. 1 Immediate rehabilitation and/or reconstruction of water supply and sanitation (WSS) systems and development of vodokanals' operational capacity is needed to prevent the systems from further deterioration and provide acceptable WSS services to about 1.1 million residents in these cities. On 16 March 2010, the second Periodic Financing Request (PFR) was submitted to ADB for financing. Initial social assessment was conducted to identify social impacts of the proposed water supply subproject for Fergana City. As a result, a Land Acquisition and Resettlement Plan (LARP) was prepared to mitigate impact of temporary land acquisition and permanent loss of crops, trees and structures caused by the construction of a new 11.4 kms transmission main, to connect the well field to Pakana WDU to connect to Kirguli and Ahunbabayev WDUs, wherein three households of Pakana-Lyana settlements in Fergana City will be affected. The objectives of the proposed LARP are: (i) to identify the project impact on the household and /or community in terms of loss of assets, livelihood and income; (ii) to outline measures to mitigate the adverse impact; and (iii) provide an estimate for budgetary allocation for compensation of loss of assets and resettlement benefits. And if required, for loss of income & livelihood, according to principles and guidelines provided in the entitlement matrix prepared for UZB: WSS Services Improvement Investment Program. The proposed water supply subproject includes: (i) (ii) (iii) (iv) Rehabilitate 68 existing wells at Pakana-Lyagen to supply 75,000 m3/day of water; Construct 3.8 kms of 800 mm raw water transmission main to connect the well field to Pakana WDU; Construct 8.1 kms of mm transmission mains from Pakana WDU to Kirguli and Ahunbabayev WDUs; Rehabilitate the bulk distribution unit at Pakana-Lyagen, the WDUs at Kirguli and Ahunbabayev and Turgeneva booster pump station, including storage reservoirs, structures and buildings, install new pumps and chlorination system, and replace all related mechanical, electrical and control systems; 1 Resolutions of the President of the Republic of Uzbekistan N ПП-890 as of , N ПП-1239 as of , see Appendix 5.

3 (v) Rehabilitate 49.6 kms of mm distribution pipe; The new 3.8 kms transmission main pipeline will cross 2 ponds and a private land which will affect temporarily 0.6 hectares of private non-agricultural land owned by one household will temporarily lose a cowshed, chicken coop and toilet as well as affecting 2 other households with a total area of 0.88 hectares which are planted to wheat, corn, vegetables and fruit trees. Rehabilitation of existing 68 wells, 49.6 kms of distribution pipelines and the other remaining activities will not require land acquisition since these structures will be replaced and installed in the present locations. Existing distribution pipeline are located under the road or land allocated to the vodokanal and/or right-of-way of the Khokimiyat. A LARP budget was prepared to cover compensation for loss of crops, trees, and structures and cover resettlement operation and management including training of representatives of vodokanal, makhalla and affected persons on land acquisition and resettlement in the amount of SUM 20.2 million.

4 ABBREVIATIONS ADB Asian Development Bank AF Affected Family AP Affected Person DMS Detailed Measurement Survey EA Executing Agency EMA - External Monitoring Agency FY Fiscal year GOU Government of Uzbekistan GRC Grievance Redress Committee IA Implementing Agency IMA Internal Monitoring Agency IP Indigenous People LARF Land Acquisition and Resettlement Framework LARP Land Acquisition and Resettlement Plan MFF Multi-tranche Financial Facility NGO Non-Government Organization PC project consultants PFR - Periodical Financial Request PLARC Provincial Land Acquisition and Resettlement Commission PPMU Program Preparation and Management Unit SCLRGCSC State Committee on Land Resources, Geodesy, Cartography and State cadastre SESU Social and Environment Sub-Unit NOTE (i) In this report, "$" refers to US dollars. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

5 DEFINITION OF TERMS Beneficiary Community: All persons and households situated within the government-owned or acquired property, who voluntarily seek to avail and be part of the Program and represented by a community association that is duly recognized by the community residents, accredited by the local government, and legally registered with appropriate institutions/competent authorities. Compensation: Payment in cash or in kind of the replacement cost of the acquired assets. Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected persons, depending on the nature of their losses, to restore their economic and social base. Cut-off-date: shall conform to the date of commencement of the affected persons (AP) census in the specified area. Land Acquisition: The process whereby a government agency compulsorily alienate all or part of the land a person owns or possesses and transfer the ownership and possession to the government agency for public purpose in return for a consideration. Affected Person/People (AP): Any person affected by program-related changes in the use of land, water, natural resources, or income losses. APs include those having losses as described in Table 2, the Entitlement Matrix which includes both titled and non-titled persons experiencing resettlement impacts due to the Program. Affected Family: All members of a household, residing under one roof and operating as a single economic unit, who are adversely affected by the program or any of its components. It may consist of a single nuclear family or an extended family group. Rehabilitation: Compensatory measures provided under the Land Acquisition and Resettlement Framework other than payment of the replacement cost of acquired assets. Replacement Value: The amount required for the Affected Household to replace/reconstruct the assets acquired by the government agency through purchase in the open market. See Table 2: Entitlement Matrix in this document. Resettlement: All measures taken to mitigate any and all adverse impacts of the program on AP s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation. Below Poverty Line (BPL) Households: There is no designated sum determined by the Government of Uzbekistan to define a BPL household. For the purpose of this Project, the World Bank definition of poverty line for Central Asia ( ) of $2.15 per day per person or SUM3,225 per day per person will be used. Minimum Wage Rate: The official minimum wage rate declared is SUM 37,680 per person a month, will be used for providing assistance allowance for 3 months for affected persons belonging to the vulnerable group and those affected persons by the project by more 10% of their assets and properties. Vulnerable Households: Households headed by women, having disabled persons, ethnic minorities, elderly persons living alone and BPL households

6 CONTENTS Page I. INTRODUCTION 1 II. SUBPROJECT DETAILS 1 III. DESCRIPTION OF IMPACTS 5 A. Project Area 5 B. LAR Implications 5 C. Socio-economic Profile of Affected Households 7 D. Indigenous People 9 IV. OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS 9 V. COMPENSATION AND ENTITLEMENT 13 A. Compensation for the Affected Properties 13 B. Gender Issues 13 VI. PUBLIC PARTICIPATION AND CONSULTATION 14 VII. ORGANIZATIONAL SET-UP 14 VIII. GRIEVANCE AND REDRESS MECHANISM 16 IX. TRAINING IN LARP IMPLEMENTATION 16 X. COST ESTIMATES AND BUDGETS 17 XI. IMPLEMENTATION SCHEDULE 18 XII. MONITORING AND EVALUATION 19 ANNEX 1 21

7 1 I. INTRODUCTION 1. The Uzbekistan Water Supply and Sanitation (WSS) Services Improvement Investment Program has been initiated with a view to improving living standard in urban areas with the help of upgrading water supply and sanitation services which, till now, is less than satisfactory. Access to safe water and sanitation facilities have direct impact on poverty reduction and welfare improvement strategy. Apart from investment in physical infrastructure the program also proposes for long term capacity building and institutional strengthening of the executing agency and staff training. 2. This short Land Acquisition and Resettlement Plan (LARP) for the Water Supply System was prepared to mitigate impact of land acquisition in the improvement and rehabilitation the water distribution system network which includes expansion of the existing well field, construction of new wells, transmission main and rehabilitation and expansion of the existing distribution system in the urban areas. 3. The LARP has been prepared based on census/socio-economic survey and consultation meetings with the affected persons/households, vodokanal, cadastral authorities and the Khokimiyat was carried out considering the outcome of the preliminary engineering and technical design. 4. The objectives of the proposed LARP are as follows: (i) identify the project impact on the community in terms of loss of assets, livelihood and income; (ii) outline measures to mitigate the adverse impact; and (iii) provide an estimate for budgetary allocation for compensation of loss of assets and resettlement benefits. And if required, for loss of income & livelihood, according to principles and guidelines provided in the entitlement matrix prepared for UZB: WSS Services Improvement Investment Program. The primary purpose of this short LARP is to identify steps to restore the living standards of the affected persons (APs) to the pre-project situation within a short period of time without any disruptions in their own economic and social environment II. SUBPROJECT DETAILS 5. The subproject is intended to extend and improve water supply access to households by constructing new transmission pipeline and rehabilitate existing distribution networks and existing boreholes. Specifically, (i) (ii) (iii) (iv) (v) Rehabilitate 68 existing wells at Pakana-Lyagen to supply 75,000 m 3 /day of water; Construct 3.8 kms of 800 mm raw water transmission main to connect the well field to Pakana WDU; Construct 8.1 kms of mm transmission mains from Pakana WDU to Kirguli and Ahunbabayev WDUs; Rehabilitate the bulk distribution unit at Pakana-Lyagen, the WDUs at Kirguli and Ahunbabayev and Turgeneva booster pump station, including storage reservoirs, structures and buildings, install new pumps and chlorination system, and replace all related mechanical, electrical and control systems; and Rehabilitate 49.6 kms of mm distribution pipe. 6. The assessments of the above works show the following: (i) The new 3.8 kms. new transmission main pipeline will cross 2 ponds and a private land which will affect temporarily 0.6 hectares of private non-agricultural land. One household will be affected and will lose some portions of housing structure. (ii) Rehabilitation of existing 68 wells, 49.6 kms of distribution pipelines and the other remaining activities will not require land acquisition since these structures will be

8 2 replaced and installed in the present locations. Existing distribution pipeline are located under the road or land allocated to the vodokanal and/or right-of-way of the Khokimiyat. Figure 1: Layout of Fergana Water Supply System

9 Figure 2: Layout of Fergana Water Supply System and the Affected Households 3

10 4 Figure 3. Photos from the affected lands Several apricot and apple trees will be affected by the project Water transmission main from Pakana Lagan WDU will pass left side of the road crossing the irrigated land.

11 5 III. DESCRIPTION OF IMPACTS A. Project Area 7. The present water supply system of Fergana is serving around a population of 188,600 (80%) because most of its wells have small capacity and/or are not functioning well. The subproject will entail construction of a new transmission main with a total length of 11.4 kms starting from the water intake at Pakana-Lyagan to the city, rehabilitation of 74 wells and 32.6 distribution pipelines to serve a population of 234,700 persons of Fergana City after project construction. 8. The census of the affected persons was conducted on 24 February The day the census was completed, that is, 24 February 2010 is considered as census cut-off-date. No person, building, any structures or cause, any kind of land use change, after the census cut-offdate, will be considered eligible for resettlement assistance or compensation. B. LAR Implications 9. The census revealed that a total of three households will be affected by the 3.8 kms. new transmission main pipeline at Pakana Lyagan water intake. Of these affected households, one household will lose portions of his house/farming structure; and two households will lose temporarily farmlands which are planted to fruit trees, vegetables and grain. Of the three affected households: Affected Household #1 with a registered leasehold non-agricultural land plot of 6 hectares will lose cowshed, poultry and toilet covering an area of 0.6 hectares; Affected Household #2 who is illegally using public land, planted wheat, potato, corn and fruit trees with an area of 3.6 hectares will temporarily lose around 0.28 hectares. Some of the fruit trees might be permanently removed due to construction of the main transmission pipeline; and Affected Household #3 with a 50 years leasehold of 212 agricultural land will temporarily lose production of wheat, corn and vegetables covering an area of 0.6 hectares. Because of the losses in crops and fruit trees, the affected households will lose some of their income from the affected farmlands and some structures due to the construction of the transmission main pipeline (Table 1). SI Type of Loss No. of AHs AH1 Loss of Structures such as toilet, cowshed, poultry coops. (Trees in the affected area will not be affected) AH2 1 Loss of trees Table 1. Affected Assets Total Area/ Asset (owned/used) in hectares Affected Area (hectares) No of Trees % Impact (of affected area over total assets) % Loss of crops % % AH3 Loss of crops % Total % Source: Census, February 2010.

12 6 10. Although land use by one of the Affected Household #2 is illegal, based on the Land Code of Uzbekistan, provision for resettlement assistance and compensation for the affected households, who will face loss of their productive assets and parts of residential structures, has been made in the LARP in accordance with the Civil Code of the Republic of Uzbekistan, the ADB's Involuntary Resettlement Policy and Land Acquisition and Resettlement Framework (LARF). 11. For the rehabilitation of 74 existing wells and 32.6 kms of distribution pipeline, there will be no land acquisition since the construction works will be located on the same place/location where the existing structures and pipe networks are installed, mostly under the road. 12. The number of affected households and persons as collected from census is given in Table 2 below. The total number of affected persons (AP) is five and all are males. Household #1 does not have his family living with him and has been living in the affected area for 5 years, only his brother lives with him. Household #2 is living alone. He is 72 years old and has been living in the affected area for 50 years. Perhaps his children have their own families and maybe his wife has passed away. Household #3 is living with a disabled son. No wife was indicated during the interview. HH#3 has been living in the area for 45 years. Table 2. Status of Census & Socio-economic Survey Sl. Details No. 1 Total Affected Household 3 2 Household not found Nil 3 Total household surveyed 3 4 Household responded 3 5 Total Affected Person 5 Source: Census & socioeconomic survey, February Table 3 below shows that of the 1.48 hectares that will be affected, 0.88 hectares are farmland planted with wheat, corn, potato, vegetables and fruit trees. The remaining affected area, of 0.6 hectares is non agricultural land used for cowshed, chicken coops, toilet, with some trees planted on it. The said structures will be removed for the installation of the transmission main pipeline but the trees (poplar, cherry and peach) will not be affected. All affected structures, crops and trees will have some impact on the income and livelihood of the three affected households. The highest impact will be experienced by the Affected Household # 2 because his main occupation is just taking care of the cemetery. He does not own the land where he has been living for the last 50 years. His use of land for farming is not formally registered since the land is public land or belongs to the cemetery. However, the use of the land provides HH#2 of his food and some cash income. The Land Code of Uzbekistan and the ADB Resettlement Policy and Land Acquisition and Resettlement Framework are concerned with the compensation of loss of productive assets whether registered or not; legal or illegal.

13 7 Affected Household Table 3. Land Use &Status of Ownership of Affected Area Total Land Ownership of Total Land Land Use of Area in Land Used Area Affected Area hectares Affected HH#1 6.0 Registered Leaseholder HH#2 3.6 Illegal use of public land HH# Registered Leaseholder /50 years lease Total Cowshed, chicken coop, toilet, polar trees 0.28 Agriculturalplanted to various vegetables, wheat and fruit trees 0.60 Planted to wheat, corn and vegetables % of Impact The Resettlement Framework (RF) prepared for the program classifies several groups of population as socially vulnerable and provided special assistance for them. The vulnerable groups are: (a) those who are below the poverty line (BPL); (b) those who belong to indigenous people/ethnic minorities; (c) female-headed households (FHH); (d) single elderly; and (e) disabled persons. Two households are eligible to be included in the category of vulnerable affected households; therefore a special assistance will be required to be provided to them. They are a household with a disabled person and single elderly household. C. Socio-economic Profile of Affected Households 15. A detailed socio-economic survey was carried out during the census operation in February Interviews were conducted with the head of the affected households (AFs) and other members at their residences. Consultation meetings with the Cadastral Office, Vodakanal and Khokimiyat authorities to verify leaseholders of affected lands. The Table 4 provides a brief socio-economic profile of the affected persons. Table 4: Summary Profile of the Affected Families Characteristics Units Total Affected Households 3 Total Affected Persons 5 Average Family Size of Affected Households 1.6 Number of Females in Affected Household 0 Number of Males in Affected Household 5 Total No. of Ethnic minority household 0 Total No. of Female Headed Households 0 Total No. of Lease Holders 2 Total No. of Non-titled land user 1 Total no. of Workers 2 Percentage of women to total employed 0 Main Occupation of the Affected Persons 1 farmer; 2 workers/operator Source: Census & socioeconomic survey, February, Based on the data of the surveyed affected households, Table 5, shows the total number of affected people is five and all are male. Number of members range from 1 2 persons. There are two households with vulnerable people: one elderly of AH# 2 and one disabled person of

14 8 AH#3. Both of these vulnerable affected persons are entitled to receive vulnerability allowance of SUM37,600 (based on minimum wage) for 3 months each. Table 5: Social Stratification details of AFs Criteria Classification No. of AFs Family Type Joint 0 Nuclear 3 Vulnerability Female-headed HH 0 HH with disabled persons 1 Single elderly HH 1 Family Size and above 0 Source: Census & socioeconomic survey, February The distribution of population by age groups is one for each: 18-year old; 29-year old, 48-year old, 50-year old and a 72-year old. Of the five, four are relatively young and are in the productive working stage. However, one of the four is a disabled person (invalid type 2) which means he has limitations for being able to work. The oldest affected person is still gainfully employed as a cemetery keeper and is still able to do farming. Table 6: Distribution of Affected persons by Age Group Sl. Age-group Male Female Total % to total population 1 Less than 7 yrs and above 1 0 Total* Source: Census & socioeconomic survey, February Educational levels of the affected population show that all 5 affected persons are have undergone education. Two (2) or (40%) have completed secondary education; 1 (20%) college level and 2 (40%) attained university level (Table 7). Table 7: Distribution of population by Educational Status Sl. Educational level Male Female Total % of the APs 1 Pre-school and Elementary General secondary (7-9 grade) Complete secondary (10-11 grade) Secondary vocational (coll / lyceum Student (coll./ lyceum / univ.) 0 5 University / PG 2 0 Total 5 0 Source: Census & socioeconomic survey, February The total monthly income of three affected households is SUM1,309,000. The lowest is SUM285,000 and the highest is SUM550,000. Of this, household income sources are from

15 9 farming/livestock/poultry raising is 46.6%; from employment is 41.3%; and from other sources such as retirement pension and allowance for invalid is around 12.1%. Using the World Bank definition of poverty line for Central Asia, which is $2.15 or SUM3,225 per capita per day, all of the affected households with an average of 1 2 persons per household are above the poverty line and are not considered as poor households (Table 8). Table 8: Monthly Income Pattern of APs, as of February 2010 Average monthly per Number of Number of Share in the Total APs, % capita income (UZS) Households Members No Income 100,000 and below 101, , % 251, , , , % per affected household member per household 551,000- above Total 3 Source: Census & Socio-economic Survey, February Note: $1 = SUM1,500 (approximately). D. Indigenous People 20. Fergana City subproject does not affect any indigenous peoples groups. Most of the people of Fergana are Uzbeks, with minorities of Slavic, Kyrgyz, Tatars, Turkmen and few others ethnic groups. IV. OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS 21. There are no laws or legislation in Uzbekistan that specifically address matters related to involuntary resettlement (IR). Rather land acquisition is governed by the following laws and resolutions: (i) The Land Code ; approved by the Law of the Republic of Uzbekistan from , taking the changes of into account. (ii) The Civil Code of Republic of Uzbekistan from 1996, taking the changes of into account. (iii) Law of the Republic of Uzbekistan on State Cadastre N171-II from (iv) (v) Law of the Republic of Uzbekistan on State land cadastre N666-I from г taking the changes of into account. Cabinet of Ministers Resolution on Approval of Regulation on the order of legalization of seizure and allocation of land plots for non-agricultural needs in the Republic of Uzbekistan No. 248, 27 May 1992.

16 10 (vi) (vii) (viii) (ix) Cabinet of Ministers Resolution on Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan 246 from Cabinet of Minister Resolution on Order of realization into private property of objects of trade and public services together with land plots, where they are located, and land plots into life inheritance tenure 126 from , taking the changes of CoM Resolution 202 from into account. Resolution of CoM On approval of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management 223 from Resolution of CoM On approval of the regulation on the order of identification of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management 282 from Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land (i.e. for cultivation, business, residence etc). 23. ADB s Land Acquisition and Resettlement Framework and Policy state: (i) (ii) The following categories of affected persons will be entitled to compensation and/or rehabilitation benefits: a. Affected Persons (APs) losing irrespective of whether land is under valid legal rights or customary rights or without legal status. b. Tenants and sharecroppers (the workers working for a share of a crop) whether registered or not. c. Owners of buildings, crops, trees and other objects attached to the land. d. APs losing business or income/employment opportunities. APs and affected assets will be identified through a detailed survey/census or detailed measurement survey (DMS). The DMS end date will be the census cutoff date for compensation eligibility. APs settling in affected areas after this date will not be eligible for compensation. They will be given sufficient advance notice to vacate and dismantle the affected land/structures. Their dismantle structures will not be confiscated nor will they be fined or sanctioned. 24. The RP is based on the general findings of the census, socio-economic survey, observation during field visits, and participatory consultation meetings with various groups including the affected persons in the subproject area. The census was carried out on 24 February Compensation and resettlement assistance for various types of loss have been determined following the provision made in the LARF. In brief, the people affected by the subproject will be entitled to the following types of compensation and assistance: (i) land for compensation for loss of land; (ii.) compensation for loss of portions of structure at replacement cost; (ii) compensation for loss of fruit and timber trees; (iii) and assistance to vulnerable households for livelihood assistance for a period of 3 months. Since, none of the APs will be losing their major livelihood, income loss is not envisaged. The loss of yield from the fruit trees

17 11 is significant since these have much productive value to provide the families subsistence income. 25. The census cut-off date of 24 February 2010 has been considered as the cut-off-date for APs eligibility for entitlement. The entitlement matrix has been prepared in accordance with the LARF of the program, for the affected people. People moving in the project area after the cut-off date will not be entitled to any assistance. 26. UCSA, the EA will use the LARP as a planning tool, verify and update the inventory prior to implementation of the project, and provide ID cards to the entitled affected persons for compensation and resettlement purposes. The principles applicable in defining the entitlements and compensation packages for the affected households shall remain unchanged. A detailed Entitlement Matrix for the subproject is provided in Table 9. Table 9: Entitlement Matrix Loss type Specification Affected People Compensation Entitlements Permanent loss of Arable Land All land losses independent of impact severity Farmer/Titleholder Land for land compensation with plots of equal value/productivity to plots lost; or cash compensation at replacement cost with application of multiplying factors, considering real supply and demand, registration and transfer charges if any to be borne by the project: if the land plot is obtained at auction, then compensation of land purchase cost. Unaffected portions of a plot will also be compensated if they become unviable after impact occurs. Leaseholder (registered or not) Transfer of lease to other plots of equal value/productivity of plots lost, or Cash equivalent to the net income from the land calculated on the basis of the market value of annual production of affected land for the remaining lease years (up to maximum 10 years). Sharecroppers (registered or not) Cash compensation equal to market value of the lost harvest share once (temporary impact) or twice (permanent impact) Agricultural workers losing their contract Cash indemnity corresponding to their salary in cash and kind for the remaining part of the agricultural year/or contractual period. Non-titled cultivators 1 rehabilitation allowance equal to 1 year's net income from the affected land (in addition to lost crop compensation) for land use loss. Additional provisions for severe impacts (> 10% of land loss) Farmer/Titleholder Leaseholder Sharecroppers (registered or not) 1 severe impact allowance equal to the net income from annual crop production (inclusive of winter and summer crop in addition to standing crop compensation) and the waiving of taxes and fees 1 severe impact allowance equal to the net income from their annual share of harvest lost (additional to standard crop compensation) Non-titled land owners 1 severe impact allowance equal to the net annual income from the affected land (additional to standard crop compensation). cash compensation in amount of taxes and compulsory payments for 1 year

18 12 Loss type Specification Affected People Compensation Entitlements Temporary Land Acquisition All APs (including those, who has right of use) Affected land/communal infrastructure will be restored or reconstructed to pre-project conditions. Rent shall be agreed between landowner and contractor equal to the revenue lost at market value (e.g. compensation for harvests lost at average yield/hectare). Payment of such compensation to be assured by the Project by the means of LA for temporal use Act Residential/ Commercial Land Titleholder Land for land compensation through provision of a plot comparable in value/location to the plot lost; or Cash compensation for affected land at full replacement cost with application of multiplying factors, considering real supply and demand,, registration and transfer costs, if any, to be borne by the project: if the land plot is obtained at auction, then compensation of land purchase cost Non-titled land owners Provision of a free or leased plot in a Government resettlement area or a self-relocation allowance equal to 1 year at minimum salary: Houses Buildings and Structures Full/partial loss of structures owners (with/without house or building registration) Cash compensation at replacement rate for affected structure/fixed assets free of salvageable materials, depreciation and transaction costs. For partial impacts, full cash assistance to restore remaining structure. Cost of lost water and electricity connections will be included in the compensation. Tenant/Leaseholder Compensation of the lost incomes of tenancy of houses, buildings and structures at a rate of annual cost of rent Standing Crops Crops affected All APs (including non-titled land owners Cash compensation equivalent to the gross income from the crop computed as the market value of the total annual produce from affected land. To be paid both to landowners and tenants based on their specific sharecropping agreements. Trees Trees affected All APs (including non-titled land owners) Cash compensation shall reflect income replacement. Fruit trees will be valued at market value multiplied on the number of years until the end of fruiting period; or in case of granting the land plot instead of alienated one, the compensation of full cost of seedling, cost of preparation of a garden and lost profit at annual income multiplied the number of years till the trees gain fruiting period will be paid Business/ Employment Livelihood Temporary/ permanent loss of business or employment All APs (including non-titled land owners) Vulnerable AP: AP below poverty line Business owner: (i) Cash compensation equal to 1 year's income, if loss is permanent; (ii) cash compensation for the period of business interruption, if loss is temporary. Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area Worker/employees: Indemnity for lost wages for the period of business interruption (including fixed by oral agreement with employer) up to a maximum of 3 months. 1 additional allowance equal to 3 months at minimum salary. Priority for employment in project-related jobs, training opportunities, self-employment and wageemployment assistance

19 13 Loss type Specification Affected People Compensation Entitlements Relocation Transport/ transitional livelihood costs All APs affected by relocation House tenants Provision of cash compensation to cover transport expenses and livelihood expenses for one month on the basis of documents, confirming the income of household members, but no less than 1 minimum salary per member Community assets Loss/damage to public infrastructure/ utilities Rehabilitation/replacement of affected structures/utilities (i.e. mosques, footbridges, roads, schools, health centres, etc.) to pre-program level V. COMPENSATION AND ENTITLEMENT A. Compensation for the Affected Properties 27. The short LARP provides the compensation details according to LARF prepared for the MFF program. As described in the entitlement matrix (Table 8 ), the compensation for all types of losses, in terms of assets/livelihood, temporary loss and other unanticipated loss, whether registered or not, legal or illegal, will be given due consideration for preparing compensation adequate for rebuilding life of the APs at pre-project level. 28. Cash compensation for loss of trees of Affected Household # 2 of 10 apple trees and 20 apricot trees shall reflect income replacement. Fruit trees will be valued at market value multiplied on the number of years until the end of fruiting period. The net profit from their current yield (yield multiplied by the market value of a unit cost minus production cost) multiplied by number of years that would have been required to grow these trees until productive stage plus annual income from sale of fruit will be compensated. In case of granting the land plot instead of alienated one, the compensation of full cost of seedling, cost of preparation of a garden and lost profit at annual income multiplied the number of years till the trees gain fruiting period will be paid. For AH#2 compensation cost for trees affected SUM2.52 million which will cover total loss/removal of the 30 fruit trees. The remaining 12 fruiting years was considered in the computation. The said trees are 18-year olds. 29. Cash compensation equivalent to the gross income from the crop computed as the market value of the total annual produce from affected land at SUM75,000 for 0.2 hectares for wheat, SUM438,000 for 0.08 hectare for potatoes and SUM200,000 for 0.05 hectares for corn. 30. Cash compensation at replacement rate for the loss of portions of the house structure such as toilet and other structures for livelihood such as cowshed and poultry to restore structures. No depreciation rates will be applied. 31. Additional allowance to two vulnerable affected persons equivalent to 3 months at minimum salary of SUM37,600 per month per person. B. Gender Issues 32. All of the three affected households are composed of adult men. Although there are no women and young children in their households, these all male households would need hygiene education for health reasons

20 14 VI. PUBLIC PARTICIPATION AND CONSULTATION 33. During initial social assessment, census and socio-economic survey as well as focus group discussions were held with the beneficiaries, the makhalla community members, as well as with the secondary stakeholders of the project, namely, the government officials of the province. The design engineering team together with vodokanal and makhalla officials met the persons/households likely to be affected and had a discussion with them regarding project scope, the benefits to be accrued and verified the documents showing ownership/possession right over land use/structures, etc that are within proposed alignment drawing. Certain facts about land ownership status of the project area and the people likely to be affected were identified from these discussions and through the survey. 34. Once this short LARP is approved, the affected people will be informed about the formal procedures of compensation payment and all other relevant details. VII. ORGANIZATIONAL SET-UP 35. In accordance with the legislation of Uzbekistan province commission on land acquisition and district evaluation boards are responsible for conducting of a resettlement. Such commissions include representatives of the following authorities: (i) (ii) (iii) (iv) (v) (vi) Province/district department of the State Committee on Land Resources, Geodesy, Cartography and State cadastre (SCLRGCSC) Province/district Hydromeliorative Expedition Province/Department/District Unit of Goskompriroda (State Nature Protection Committee) Province/district divisions of SES Province/district fire units Beneficiary organizations and contractors (UCSA, EA, the Social and Environment Sub-Unit (SESU), Design Institute. Project Consultants). 36. The commission includes all the affected legal entities and individuals or their holders of power. In addition to government organizations and agencies non-government organizations such as women s committees and makhallas may be involved in resettlement procedures to ensure safeguards of rights and legitimate interests of the affected land users. 37. UCSA has overall responsibility for all aspects of the program. The Program Preparation and Management Unit (PPMU) within UCSA is responsible for the day to day management of the program including LAR and cross-agency coordination and for compensation disbursement. 38. The Social and Environment Sub-Unit (SESU) and Project Implementation Unit (PIU)/ vodokanal under the PPMU will directly participate in all LAR related planning, implementation, inter-agency coordination and monitoring. However, they will carry out this responsibility with technical assistance from the project consultants (PC) of the program and with the active participation of the district/municipal executive powers and as advised by SCLRGCSC from time to time. 39. Design Institute is in charge in elaborating the design and construction documents for the project. It will collaborate with the PC, SESU and PIU to: (i) assemble all documents required for compensation; (ii) carry out topographic surveys of the expropriated land and

21 15 replacement lands; (iii) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces differentiating the land use patterns in the areas being occupied to serve as a base for the selection of compensation land; (iv) establish layouts of the lands proposed as option for compensation; (v) conduct the land marking and pegging of the land assigned for temporary use and permanent occupation and of the compensation lands. The design institute, in collaboration with resettlement team of the PSC and PIU, will review the LARPs and provide the necessary information for an updated estimate of the effective compensation plan and related cost for each subproject. 40. Project Consultant Resettlement Team is engaged to design and assist in the implementation of subprojects under the program. The PSC will have sufficient in house expertise on resettlement consisting of international and national resettlement specialists. With the assistance from the Design Institute and PIU, they will analyze the cadastral maps, carry out DMS, conduct first level compensation negotiation with the APs and prepare subproject LARPs. The PC will submit these LARPs to the respective vodokanal/piu and to SLAU division for approval. After its approval, PSC will submit LARPs to the respective Province and Rayon LAR Commission. 41. Local government agencies involved in LARP review and implementation are Province (Oblast) and District (Rayon) Executive Authorities who form Province Commissions on Land Acquisition and District Evaluation Commissions. These commissions will form a provincial land acquisition and resettlement committee (PLARC) which include the institutions as described below. 42. Province Commission on Land Acquisition, established under the Province Khokimiyat decision undertakes the following: (i) outlines location of constructions and structures, envisaged by the project; (ii) selects land plot for construction site, (iii) prepares and approves an Act for the right to use the land plot (title) and (iv) approved the Act for the right to use the land plot, specifying areas of the acquired farm land, accepted norms and total agricultural production losses. In addition to permanent members the Commission includes representatives of UCSA, as well as affected legal entities and individuals. 43. The Evaluation Commission established under the district khokimiyat decision estimates losses of land owners and land users in accordance to the standard procedure, as well as losses in agricultural output as a result of the farm land acquisition based on data provided by the design institute. The commission prepares an Act for the right to use the plot of land specifying the acquired farm land area, accepted norms and total value of losses and agricultural output losses. 44. The regional representatives of the SCLRGCSC is the key executive authority responsible for the following: (i) identify land losses, incurred by land owners and land users as well as agricultural output losses; (ii) determine the degree and area of land re-cultivation, including removal and temporal storage of productive soil layer; (iii) determine the need for protective sanitary and water protection zones around the constructions being built and regime of their use; (iv) prepare proposals on allocation of land plots of equal value instead of the acquired; (v) estimate possibility and approximate cost of development of new land instead of the acquired; (vi) approve the Benchmark Setting up Act and the attached plan; (vii) amend the government acts on land use and land ownership as well as other cadastre documents. 45. Department of SCNP: (i) environmental impact assessment of construction projects and implemented methods; (ii) approves location of the sites affecting the land condition; (iii)

22 16 develops measures for land protection for designed sites and launched facilities adversely affecting the land; and (iv) approves the Act on Land Plot Acquisition. 46. Government SES and Fire Inspection and Water Supervision authorities approve the Act of the Land Plot Acquisition. 47. At town/regional/rayon level a grievance redress committee (GRC) will be established with the involvement of PIU/SESU/PC, leaders of affected makhallas and Khokimiyat (the local executive body). VIII. GRIEVANCE AND REDRESS MECHANISM 48. A grievance redress mechanism will be developed for addressing the grievances/decisions not agreeable to the APs, particularly actions in reacted with compensation or payment disbursement. The APs will be fully informed of their entitlement according to the short LARP and the procedures for addressing their complaints/ grievances during public consultation, census survey, verification of measurement survey at the time of implementation. The procedure of grievance redress will be incorporated in the disclosure pamphlet (see Annex 1) to be distributed prior to implementation. 49. In order to prevent grievances rather than to redress these through a process to avoid lengthy redress process, participatory consultation with the affected households will be undertaken during LAR planning and implementation stages. If the grievances fail to be resolved, all attempts will be made to resolve those informally at the local makhalla level. If this attempt fails, APs will have the option of taking their complaints to the formal mechanism of addressing grievances described in Table 10. Table 10: Grievance Redress Process Assets Compensation Issues 1. First, complaints resolution will be attempted at town/district (Rayon) level of grievance and redress committee with the involvement of the PC, leaders of the affected Makhallas and Khokimiyat (the local executive body). 2. In absence of a settlement, APs may lodge a complaint to District/Oblast Khokimiyat as part of provincial land acquisition and resettlement committee (PLARC) and get a reply within 15 days. 3. If the District/Oblast Khokimiyat. decision is unacceptable to the APs, they he/she may approach the appropriate court of law for its resolution. IX. TRAINING IN LARP IMPLEMENTATION 50. All PIU staff, project consultants (PCs), SESU officials, leaders of Makhallas, Khokimiyat, representatives of SCLGRCSC, and District evaluation committee who will be involved in LAR activities will undergo an orientation and training in ADB s involuntary resettlement policy and implementation of RP. The training will be provided by the international specialist under the Program consultant s contract and will cover the following topics: (i) (ii) (iii) principles and procedures of land acquisition based on Uzbekistan's law and regulation; principles and guidelines of ADB s involuntary Resettlement Policy public consultation and participation;

23 17 (iv) (v) (vi) entitlements and compensation & assistance disbursement mechanisms; grievance resolution; and monitoring of resettlement operations. X. COST ESTIMATES AND BUDGETS 51. The total estimated budget for compensation of structures, trees including special assistance to the entitled AP, preparation of identity card, cost of resettlement operation and management for the Project through Implementing Agency is SUM20.2 million (equivalent to SUM1500=$1). A break up of cost estimate is given in the Table 11 below. Sl. No. A. Compensation 1 Land (Temporary Acquisition) Agricultural Non-agricultural Table 11: Estimated LAR Cost and Budget Item Unit Quantity Rate Total Cost (SUM) No cost for temporary loss of land. Compensation will be for affected trees, crops and structures Refer to Annex for Unit Subtotal of land 2 Structures sq.m. Toilet (cost of labor to dig pit) 1 80,000 Cowshed (materials & labor) 1 Rate for 9,470,000 Poultry (materials & labor) 1 materials 850,000 +labor used Totals Subtotal of structure 3 10,400,000 3 Trees (12 years fruiting period) No. Apple Trees (removal) 10 1,029,600 Apricot Trees (removal) 20 1,489,200 Poplar (temporary disturbance) Cherry (non-fruiting) Peach (non-fruiting) Subtotal Trees 30 2,518,800 3 Crops (temporary loss 1 year cropping) Wheat hectares ,000 Corn/maize hectares ,000 Potato ,000 Subtotal of Crops ,145,000 Subtotal of A 14,063, B. Resettlement Assistance 4 Vulnerability Invalid type 2 in one household 1 Elder man Allowance for 3 months SUM113,040 Subtotal for B 226, C. Support for RP Implementation 4 Training LARP implementation 1,000, Engaging 3 Makhallas 3,000, Subtotal of C 4,000, Total of A+B+C 18,289, Add: 1,828, Total Cost of Resettlement say 20,118, ,200,000.00

24 18 XI. IMPLEMENTATION SCHEDULE 52. UCSA as the Executing Agency (EA) will direct the PSC resettlement team with assistance from SESU and the design institute to verify documents of the APs and carry out the detailed measurement survey of the affected assets. If any change in design alignment is foreseen, the team will notify the EA. The relevant makhallas in Oktepa, RGC Avval and Aval Village, of Fergana City will be engaged as implementing agency and assist the SESU & PSC s resettlement team particularly during payment disbursement and in resolving compensation issues. 53. Valuation of compensation and assistance will be done after detailed measurement of lost assets is done. Grievance, if any, will be addressed at this stage so that any delay in payment of compensation and assistance does not occur and contractor s award is issued as per schedule. 54. After initiation of LARP the UCSA will take step to engage external monitor to review and evaluate the LARP implementation. Table 13 shows the tentative implementation schedule of LARP. Table 12: Tentative Implementation Schedule Sl. LARP Implementation Activities Year 1 Q1 Q2 Q3 Q4 Scheduled completion 1 LARP update M1 2 Preparation of action plan specifying resettlement tasks M1 for Social and Environment Sub-Unit (SESU), Consultants and NGOs, if any 3 Training for LARP implementation with relevant M1 stakeholders 4 Consultations and preliminary surveys to identify the M1 APs with the aim to prevent/minimize resettlement/assets acquisition 5 Finalization of subproject technical plans considering M2 minimized requirements in assets acquisition 6 Collection of cadastre maps and land parcel maps in the M2 subproject area. Verification of land records and cadastre maps in the affected areas 7 Application to Province Khokimiyat on selection of land M3 plot for temporal or permanent acquisition for the construction under the project accompanied by all necessary permits 8 Submission of the project design and estimates M3 necessary for computing compensation to district department of PCLRGCPC and district Evaluation Commission 9 Inform the stakeholders on construction plans (border guards, rail road, utilities and other). Getting approval for construction plans. Public consultations M3 10 Approval of the selected land plots and getting Land Plot M4 Selection Act 11 Preparation and conducting the census of affected persons. Gathering of documents, proving ownership M4-M5