44236-013: emergency assistance for recovery and ... · and as supported by legal opinion from...

Draft Resettlement Plan

Resettlement Plan Project Number: 44236 Loan and Grant Numbers: L2668 (SF) and G0217 October 2013

Kyrgyz Republic: Emergency Assistance for Recovery and Reconstruction, Component 3A - Water Supply and Sanitation Osh Subproject

Prepared by the State Agency for Architecture, Construction, and Communal Services (SAACCS) of the Kyrgyz Republic for the Asian Development Bank (ADB)

The resettlement plan is a document 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.

ENDORSEMENT OF THE RESETTLEMENT PLAN

This Resettlement Plan (RP) represents a key requirement of the Asian Development Bank (ADB). It assesses impacts and a compensation cost for impacts caused by Emergency Assistance for Recovery and Reconstruction Component 3A water supply improvements in Osh City and provides an action plan for the implementation of required measures. This RP complies with the laws of the Kyrgyz Republic, but includes some additional enhancement measures and implementation and monitoring arrangements to fit the ADB Safeguard Policy Statement of 2009. The State Agency for Architecture, Construction and Communal Services (SAACCS) hereby endorses the

contents of the attached RP and guarantees that funds for the resettlement as stipulated in this RP will be

made available on timely basis. SAACCS has discussed during the public consultation principles and

mechanisms of implementation this RP with relevant local officials and has obtained their concurrence.

SAACCS has authorized the Deputy Chief Architect of Osh City as the responsible agent to manage the

technical aspects related to the implementation of the Project and the resettlement activities included in this

RP.

Approved on __ November 2013 by: ______________________________ Director, State Agency for Architecture, Construction and Communal Services of the Kyrgyz Republic

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TABLE OF CONTENTS

PAGE

EXECUTIVE SUMMARY 1

I. INTRODUCTION 3

A. EARR Component 3A: Water Supply and Sanitation 3

B. Osh Subproject Resettlement Plan 3

C. Osh Subproject Description 3

D. Resettlement-related Subproject Implementation Conditionalities 4

II. IMPACTS ASSESSMENT AND AP CENSUS 5

A. Impacts Assessment Activities 5

B. Impacts Status 5

C. AP Census 6

D. Summary of Impacts and AP Census 6

III. SOCIO-ECONOMIC PROFILE AND SURVEY 7

A. Demographic, Employment, and Education Status 7

B. Housing and Living Conditions 7

C. Household Income Sources and Consumption 7

IV. LEGAL FRAMEWORK AND ENTITLEMENTS 8

A. Relevant Provisions of Kyrgyz Republic Laws and Regulations 8

B. ADB Policy 9

C. Reconciliation with ADB Policy 10

D. Resettlement Principles, Entitlements, And Eligibility 11

V. GRIEVANCE REDRESS MECHANISM 12

A. Grievance Redress Functions and Process 12

B. Local Points of Contact 15

C. Grievance Redress Group 15

VI CONSULTATION, PARTICIPATION, AND DISCLOSURE 15

A. Consultation and Participation 15

B. Disclosure 16

VII. IMPLEMENTATION ARRANGEMENTS 16

A. Institutional Set-up 16

B. Implementation Schedule 18

VIII COST AND FUNDS FLOW 19

A. Compensation Rates Calculation 19

B. Costs Assessment 19

IX. MONITORING 20

A. Monitoring Objectives and Responsibilities 20

B. RP Implementation Report 20

ANNEX 1: Component 3A Entitlement Matrix 21

ANNEX 2: Osh Subproject Resettlement Plan Public Information Brochure 27

ANNEX 3: Methodology for and Results of Valuation of Losses 31

ANNEX 4: Component 3A Subproject RP Implementation Monitoring And Reporting

37

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ANNEX 5: Consultation and Participation in Osh Subproject RP Preparation 41

ANNEX 6: Minutes of Public Consultation on Draft Osh Subproject Resettlement Plan

43

List of Tables Table 1: RP Entitlement Matrix Provisions 1 Table II.1: Tree Losses 5 Table II.2: Summary Subproject Involuntary Resettlement Base-line

Information 6

Table II.3: Affected Households and Asset Losses 6 Table III.1: AP Employment Status 7 Table III.2: Household Income Sources and Estimated Annual Per Capita

Consumption 7

Table IV.1: Comparison of ADB Policy with Kyrgyz Laws 10 Table IV.2: Subproject-pertinent RP Entitlement Matrix Provisions 12 Table VII.1: Resettlement Plan Preparation and Implementation Responsibilities 18 Table VIII.1: Compensation and RP Implementation Cost 19

List of Figures Figure 1: Osh Subproject Location 4 Figure 2: Location of Subproject Transmission Line-affected Trees 6 Figure 3: GRM Flow Chart 14 Figure 4 Resettlement Plan Institutional Relationships 17 Figure 5 Osh Subproject RP Implementation Schedule 19

Abbreviations

ADB Asian Development Bank

AH Affected Household

AP Affected Person

A/O Ayil Okmotu

CC Civil Code

CSO Civil Society Organization

CUM Cubic Meter

DIA Diameter

DSC Design and Supervision Consultants

EA Executing Agency

EARR Emergency Assistance for Recovery and Reconstruction

GMCL Guaranteed Minimum Consumption Level

GOSSTROY State Agency for Architecture and Construction under the Government of

the Kyrgyz Republic

GRG Grievance Redress Group

GRM Grievance Redress Mechanism

IA Implementing Agency

IV Independent Valuator

KR Kyrgyz Republic

LAR Land Acquisition and Resettlement

LA Local Authority

LC Land Code

LPC Local Point of Contact

Mld Million liters per day

Mm Millimeter

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MOF Ministry of Finance

MOU Memorandum of Understanding

MSL Minimum Subsistence Level

NSC National Statistics Committee

PMC Project Management Consultants

ROW Right of Way

RP Resettlement Plan

SAACCS State Agency for Architecture, Construction and Communal Services

SDRD State Directorate for Reconstruction and Development of Osh and Djalal-

Abad

SPS Safeguards Policy Statement

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EXECUTIVE SUMMARY

A. The Subproject and Relative Impacts

1. This Resettlement Plan (RP) for Component 3A - Water Supply and Sanitatonof the Emergency Assistance for Recovery and Reconstruction financed by Loan and Grant Numbers L2668 (SF) and G0217-KGZ covers the Osh Subproject The Implementing Agency of the Osh Subproject is the State Agency for Architecture, Construction, and Communal Services (SAACCS). The Subproject does not require land acquisition. Impacts are minimal and involve the clearing of fifty-one (51) trees. In all, the affected households are two (2).

B. Eligibility for Compensation and Entitlements

2. The RP defines a compensation eligibility and entitlements framework fitting the ADB Safeguard Policy Statement of 2009 (SPS 2009) and local law. Based on the framework, Affected Persons (APs) entitled to compensation or at least rehabilitation provisions under the Subproject are:

• All APs losing land whether covered by legal title/land rights, legalizable, or without legal status;

• Tenants and sharecroppers whether registered or not; • Owners of buildings, crops, plants, or other assets attached to the land; and • APs losing business, income, and salaries.

3. Compensation eligibility is limited by the cut-off date set by the Local Authority following the end of the impacts survey and AP Census (12 April 2013). APs that settle in or otherwise make use of affected areas after the cut-off date will not be eligible for compensation or other entitlements.

4. The compensation entitlements for those affected by the Subproject are detailed in Table 1 below:

Table 1: RP Entitlement Matrix Provisions

Impact Type Eligible APs Entitlements Note

Trees:

Productive

Owner of Trees Affected; (all APs, including squatters/ encroachers)

Fruit bearing trees will be compensated on the basis of the sum of present value of foregone earnings from the crop sales

Determined by the Independent Valuator

and as supported by legal opinion from

competent authority.

Trees: Non-

productive

Owner of Trees Affected; (all APs, including squatters/ encroachers)

Timber and other non-productive trees will be compensated at commercial value of the wood multiplied by its volume. Calculated on the basis of tree diameter.

Compensation for trees will be free of deduction for the value of the wood left to the AP.

Determined by the Independent Valuator

and as supported by legal opinion from

competent authority.

C. Grievance Redress Mechanism

5. The RP details a grievance redress mechanism (GRM) established under the EARR Project to receive, manage, review, and facilitate the resolution of issues, concerns, complaints, or grievances raised by APs regarding Subproject implementation. Based on this mechanism, aggrieved APs may access the GRM through local points of contact (LPC) and

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will be assisted by the SAACCS Safeguard Unit and a Grievances Redress Group (GRG) tasked with all activities needed to discuss a grievance, validate and assess the scope of eventual impacts, decide eventual compensation or other redress action needed, and instruct and facilitate the functioning of the GRM. The GRG is composed of a core group and an independent observer to make informed and balanced decisions on complaints lodged. APs may seek recourse to the court of law at any stage of the grievance redress process

D. Consultation, Participation and Disclosure

6. RP preparation has entailed extensive dissemination of information and consultation with APs. The RP has been disclosed to the public on the ADB and EARR websites in English, Russian, and Kyrgyz languages. Prior to public consultations on the RP, an informational brochure in Kyrgyz and Russian languages was distributed to all relevant stakeholders including, APs, civil society organizations, and local governments. E. Cost and Financing 7. The total cost of compensation for Osh Subproject-affected assets is Som 21,478. Including contingencies, the total cost for Osh Subproject Resettlement Plan implementation is Som 23,626. The Project proceeds will be used to finance these costs.

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I. INTRODUCTION

A. EARR Component 3A: Water Supply and Sanitation 1. The Emergency Assistance for Recovery and Reconstruction (EARR) is in response to the government's call for assistance to mitigate the adverse effects of the April and June 2010 conflicts. The Asian Development Bank (ADB) is providing loan and grant funds to implement the EARR.1 EARR is based on ADB's Disaster and Emergency Policy (DEAP), which offers a framework to promptly respond to emergency needs, and provides rapid funding to help rebuild high priority assets and restore economic, social, and governance activities after emergencies. 2. The Ministry of Finance (MOF) is EARR’s executing agency. It implemented the fiscal support component. The State Directorate for Reconstruction and Development of Osh and Jalal-Abad (SDRD) as implementing agency until 15 January 2013 successfully implemented the housing component. The State Agency for Architecture, Construction, and Communal Services (SAACCS), the successor agency to SDRD, is implementing the water supply and sewerage and community and public infrastructure improvement component under the overall guidance by and direction from SAACCS’s Director, with the Deputy Chief Architect of Osh City responsible for technical aspects related to project implementation. 3. Component 3A aims to improve water supply and sewerage in the cities of Osh and Jalal-Abad and in Bazar-Korgon. It addresses rehabilitation and/or replacement of water supply intake works, treatment, and transmission systems to supply continuous and reliable water in these areas. Similarly, under the sewerage system, it is expected to rehabilitate or new-construct sewerage treatment plants and main sewer lines. The estimated cost of Component 3A water supply and sewerage improvements is approximately USD 20.0 million.

B. Osh Subproject Resettlement Plan 4. This RP fits the ADB Safeguard Policy Statement (SPS 2009) and Kyrgyz Republic law and regulations and policies related to land acquisition and resettlement (LAR).

5. The goal of this RP is to ensure that people who may lose assets as a result of the Subproject will retain or improve their pre-subproject living standard. The RP will guide the timely implementation of all compensation and commensurate allowance payments in accordance with the Component 3A Entitlement Matrix. C. Osh Subproject Description

6. The Osh Subproject aims to enhance existing water supply arrangements in Osh City and to carry out measures to improve the system, including rehabilitation of water intake and associated transmission, treatment plant, and reservoir improvements. The location and general scheme of the Subproject is shown in Figure 1 below.

1 Loan 2668-KGZ(SF) for 32.057 million SDR and Grant 0217–KGZ(SF) for USD 51.50 million.

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Figure 1 : Osh Subproject Location

7. The Osh Subproject with an approximate cost of USD 7.0 million includes: Rehabilitation of the Plotina water intake ; Construction of a new 4.7km long water transmission pipeline from the Plotina Intake to

the water treatment plant (WTP) at Ozgor; Modernization of the chlorination facility at the Ozgor WTP; and Improvements to the existing 6,000 cum water reservoir and the construction of an additional water reservoir of similar capacity at the Brick Factory site in the western part of the city.

D. Resettlement-related Subproject Implementation Conditionalities

8. As specified in the financing agreement between the Kyrgyz Republic and the ADB, if any land acquisition or involuntary resettlement impacts arise the Government is required to prepare, disclose and implement a RP in accordance with applicable laws and regulations of Kyrgyz Republic and ADB SPS (2009). For any activities that will cause involuntary resettlement impacts (both permanent and temporary), SAACCS will ensure that no civil works contracts will be awarded until the required RP in compliance with ADB SPS (2009) is prepared, reviewed and agreed by ADB, and implemented. The RP is to be prepared in consultation with the APs before submission to ADB for review and approval. RP provisions will be disclosed to APs, communities, and the public for review and comment prior to finalization. 9. The start of Osh Subproject civil works will be conditional to: Preparation of an implementation-ready RP agreed by ADB and Government and

disclosed to the APs; and Full implementation of the RP, including delivery of the RP compensation program. The successful completion of the RP compensation program will have to be vouched by a RP Implementation Report which will be submitted to ADB before the start of civil works. ADB will review the report and issue a no objection letter (NOL) for the commencement of civil works. RP Implementation Report submission to ADB by 20 September 2013.

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II. IMPACTS ASSESSMENT AND AP CENSUS

A. Impacts Assessment Activities 10. In August 2012, the DSC confirmed that proposed Component 3A subprojects in Osh, Jalal-Abad and Bazar Korgon would have involuntary resettlement impacts. During the September 2012 ADB mission, land acquisition and resettlement (LAR) aspects were discussed and an agreement was reached about actions to initiate the preparation of the RP which included , among other things, the fielding of an international resettlement specialist (IRS) A special interdepartmental commission was established by the Osh City administration to coordinate LAR-related subproject preparation. Close collaboration between this commission and the Component 3A implementing agencies, PMC, and DSC designers and resettlement specialists assured that involuntary resettlement impacts were avoided or at least minimized to the maximum extent possible. 11. The impacts assessment for the RP was carried out between 8 January and 12 April 2013. This last date has been selected as the impacts and compensation eligibility cut-off date. Impacts occurred or detected after this date will be handled by the GRG and compensated if found valid and eligible by the GRG. 12. At the conclusion of the impacts assessment survey, SAACCS’s safeguard team and the DSC prepared a list of households affected by Subproject activities. The list was submitted to the LAR committee who visited and verified all listed households and verified impacts. The committee also assessed available documents from each affected household and determined their legal status and eligibilities. An appointed independent valuator calculated the value of affected assets to determine the compensation costs. B. Impacts Status

13. As all proposed civil works are within existing right of way or other public land, no private land acquisition is necessary. Construction of the new water transmission line from Plotina to Ozgor will require clearing of fifty-one (51) trees in the first 50 m exiting the Plotina Water Intake Area complex. Although planted on public land, these trees are owned by two (2) households living adjacent to the affected area in Ozgor Village of Tuleiken Ayil Okmotu (A/O). The location of Subproject transmission line-affected trees is shown in Figure 2 below.

B.1 Impacts on Trees 14. The trees affected in Ozgor Village consist of both fruit and non-fruit species. The type, number, and size of trees to be cleared for subproject transmission line construction are summarized in Table II.1 below.

Table II.1: Tree Losses

Fruit Trees Non-Fruit Trees

Type Age (Years) Number Type Size (Diameter, cm) and Number

Subtotal

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Figure 2 : Location of Subproject Transmission Line-affected Trees

C. AP Census 15. Distribution of Affected Households - In all, two (2) households consisting of eight (8) individuals are affected. 16. Impact Severity - Based on ADB Policy, a l l APs losing more than 10% of their income due to direct impacts of the subproject are cateРorized as “severely impacted”. FindinРs of subproject impacts assessment and household socio-economic surveys indicate that no APs belong to this category. 17. Vulnerable Groups - For purposes of Component 3A, vulnerable households are officially defined and recognized households below poverty line; those headed by women or the disabled; and families with more than five children. Findings of impacts assessment and household socio-economic surveys indicate that no AHs belong to this category. 18. AP Gender Composition - In the two (2) affected households, the number of males is five (5); and the number of females is three (3).

D. Summary of Impacts and AP Census

19. Table II.2, below, summarizes involuntary resettlement impacts of the Osh Subproject. Table II.3 lists affected households and details asset losses of each.

Table II.2: Summary Subproject Involuntary Resettlement Baseline Information

Subproject Involuntary Resettlement Impact Affected Households (No.)

Loss of Trees 2

Total 2

Table II.3: Affected Households and Asset Losses

No.

Affected

Household

AP Code

Number

Location Loss Compensation

(Som)

1. Kaparov, Aziz Osh-TL-1 Ozgor Village, Tuleiken Ayil Okmotu; Kara-Suu District of Osh Oblast

4 Fruit trees and

20 non-fruit trees

15,795

2. Kaparov, Toktobai

Osh-TL-2 Ozgor Village, Tuleiken Ayil Okmotu; Kara-Suu District of Osh Oblast

2 Fruit trees and

25 non-fruit trees

5,683

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III. SOCIO-ECONOMIC PROFILE AND SURVEY 20. The Osh Subproject impacts assessment included interview and socio-economic survey of each affected household. Household interviews and surveys were carried out on 6 February 2013, by tСe DSC’s LAR field team in liaison witС tСe ImplementinР AРency SafeРuard Unit and LAs. Household interviews and surveys examined indicative income levels sufficient to assess whether subproject impacts were likely to result in greater than 10 percent income loss (severe impact). In cases of potential loss of private, leased, or informally-used agricultural land, associated agricultural income was investigated; but likely losses were calculated by the Independent Valuator on the basis of average production levels and costs. Below poverty line households were identified on the basis of official information from local authorities. A. Demographic, Employment, and Education Status 21. The Osh Subproject affects two (2) households and a total of eight (8) persons. 62.5% of APs are male, and 37.5% female. 87.5% of APs are in the middle age group, and surveys indicate the average AP age is 32. Average household size is 4.0, ranging from 3 to 5. 22. As shown in Table III.1, one quarter (25%) of the APs are children or students. Of the remainder, 50% are employed, 33.3% are unemployed, and 16.7% are pensioners. The primary occupations of the APs are professional, including lawyer, accountant, and teacher. 40% of adult males reported unemployment. All adult APs have completed at least secondary education. Of these, 50% have completed post-secondary or other advanced education.

Table III.1: AP Employment Status

Household

Employment Status

Child/

Student

Primary

Occupations

Employed Unemployed Pensioner

1. Male Lawyer 1

Female Accountant 1 1

2. Male 2 2

Female Teacher 1

Total 2 3 2 1

% 25 37.5 25 12.5

Non-student % 50 33.3 16.7

Source: LAR Impacts Assessment AP Household Socio-economic Survey, February 2013

B. Housing and Living Conditions 23. The survey data indicates that both affected households own homes of 4-5 rooms with large yards. Water for drinking and household use is collected from the nearby Ak-Bura River at a distance of 150-160m. Both households possess simple pit latrines. Both households also own motor vehicles. None of the affected household own agricultural land, although surveys indicate that both possess garden plots (0.3-0.6 ha) located on house lots. Both households also have small numbers of livestock maintained for domestic consumption. C. Household Income Sources and Consumption 24. As indicated in Table III.2, salaries and wages are the most common income source of affected households, followed by income from pensions and vehicle rental.

Table III.2 Household Income Sources an Estimated Annual Per Capita Consumption

Household

Income Sources Estimated

Annual Per

Capita

Consumption

(Som)

Agricultural

Production

Livestock

Production

Salary/

Wages

Pensio

n

Vehicle

Rental,

Remittance,

Other

Social

Benefits

8

1. 51,600 2. (vehicle) 14,380

Average 32,990

Total 2 1 1

Source: LAR Impacts Assessment AP Household Socio-economic Survey, February 2013

IV. LEGAL FRAMEWORK AND ENTITLEMENTS

25. TСe leРal and policy framework for tСe Subproject is based on ADB’s SPS (2009) and ADB Operations Manual (OM) Section F1/BP (2010), the Constitution of the Kyrgyz Republic, and legislation including the Land Code (LC) and the Civil Code (CC) of the Kyrgyz Republic. Where differences exist between local law and ADB practices, the policy differences are resolved in favor of the latter. A. Relevant Provisions of Kyrgyz Republic Laws and Regulations a. National Constitution

26. The Constitution of the Kyrgyz Republic (June 27, 2010), Article 12 provides that: the Kyrgyz Republic recognizes diversity of ownership forms and guarantees the

equal legal protection to private, state, municipal and other types of ownership (article 12, clause 1); Land can be in private, municipal and other types of ownership with an exception of pasturelands that cannot be held in private ownership (article 12, clause 5); Ownership is inviolable, and no one can be dispossessed of property arbitrarily. Property can be acquired by tСe state aРainst tСe person’s (party’s) will only on tСe basis of a court ruling (article 12, clause 2); and Acquisition of property for the public purposes, as defined in the national laws, can be carried out only through court ruling and with fair and prior payment of compensation for the affected property, as well as for other costs (article 12, clause 2).

b. Civil Code (8 May 1996, # 16; last amended 25 February 2013)

27. The Civil Code (CC) provides that a party whose rights are violated can claim full compensation for losses, unless the national legislation or the agreements (contracts) prepared in line with the national legislation indicate the contrary (article 14, clause 1). The CC also specifies that the compensable losses include:

I. Costs that the party concerned has incurred or was going to incur in order to reinstate the party’s right (article 14, clause 2);

II. Losses or damages of the property (article 14, clause 2); and III. Lost profit that the party was supposed to receive under normal conditions, if the

party’s rights were not violated (opportunity costs) (article 14, clause 2);

c. Land Code (2 June 1999, # 45; last amended 16 May 2013)

28. The Land Code (LC) provides that: Land can be acquired (purchased) for state and public purposes based on agreement

between the authorized body and land owner or land user. In case the land owner or land user disagrees with the acquisition (purchase), the authorized body can, within two (2) months, turn to the court with the request to carry out the acquisition with the payment to the owner or land user of the compensation for the land (article 68, clause 1); When determining compensation for the land being acquired, it should reflect the market value of the right to the land and associated structures, losses that the land owner or land user incurs, and liabilities to third parties (article 68, clause 3); and

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When acquiring land for the state or public purposes with the consent of the land owner or land user, the owner\user can be allocated replacement land with the value of this land to be counted towards compensation for the land acquired.

29. It should also be noted that the LC specifies instances when the right to the land and associated structures can be terminated. These include:

(i) Failure to use the land according to its targeted purpose10; (ii) Land needed for state or public purposes; (iii) Non-use of land provided for agricultural use for three years; (iv) Non-use of land provided for non-agricultural productive purposes for a period

stipulated in the original provision; (v) Non-payment of land taxes; (vi) Non-payment of social taxes; and (vii) Annulment of license for mining on the basis of the Kyrgyz Republic’s mining law.

The decision of a court is required to officially terminate the rights to the land and associated structures in instances 1 through 4, above. Acquisition of the land under these instances can be effected only after compensating the costs of the rights termination and associated costs (article 49, clause 4).

30. According to LC article 49, clause 1, the land owner or user, unless the legislation, land title or lease contract indicates to the contrary, has the right to:

Use the land at its own description and in accordance to the targeted purpose of the land (article 49, clause 1, sub-clause 1); Build structures on the land, according to its targeted purpose, following the established procedures and meeting architectural, construction, environmental, sanitary, fire safety and other requirements (article 49, clause 1, sub-clause 6); and Claim the compensation, as specified by the legislation of the Kyrgyz republic (article 49, clause 1, sub-clause 5.).

31. Finally, the LC (article 78, clause 2) also specifies the use regime with regards to the lands of common use. It particularly indicates that lands of common use in settlements, towns, and villages (e.g. roads, streets, squares, sidewalks, driveways, park bands, boulevards, mini parks, water bodies, etc.) cannot be in private ownership, and only in exceptional instances can be rented by the authorized state body to legal entities and individuals for a maximum of 5 years. The authorized state body may permit construction of light-weight structures on the lands of common use (clause 78, clause 3).

d. Regulation on Assets Valuation

32. The valuation of the assets is carried out on the basis of the Temporary rules for the valuators and valuation companies (Government Resolution, as of 21 August 2003, # 537), Valuation standards for the valuators (Government Resolution, 03 April 2006, # 217) and other provisions of national legislation.

B. ADB P o l i c y

33. ADB’s SPS (2009) is aimed at avoidinР involuntary resettlement wСerever possible; minimizing involuntary resettlement by exploring project and design alternatives; enhancing, or at least restoration, the livelihoods of all displaced persons in real terms relative to pre-project levels; and improvement the standards of living of the displaced poor and other vulnerable groups. According to Safeguard Requirements No 2 on Involuntary Resettlement (SPS 2009), displaced persons are those who are physically displaced (relocation, loss of residential land, etc.) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihood) as a result of involuntary acquisition of land, or involuntary restrictions on land use.

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34. Under ADB policy, people affected should be informed fully and consulted on resettlement and compensation options; absence of a formal legal title to land should not be a bar to compensation or rehabilitation of non-land assets; and particular attention should be paid to households headed by women and other vulnerable groups who may not be protected by national land compensation legislation and appropriate assistance provided to help them to improve their status. 35. In compliance with ADB’s policy, APs in a subproject area could be of three types: (i) persons with formal legal rights to land or assets lost in their entirety or in part; (ii) persons who lose land or assets they occupy or own, in their entirety or in part, who have no formal legal rights to such land or assets, but who have claims to them that are recognized or recognizable under national laws; and (iii) persons who lose land or assets they occupy or use in their entirety or in part, who have neither formal legal rights nor recognizable claims to such land or assets. Involuntary resettlement safeguard requirements apply to all three types of APs. C. Reconciliation with ADB Policy

36. Comparison between ADB’s SPS (2009) and KyrРyz leРislation is sСown in Table IV.1 below. Reconciliation, when necessary, between these two instruments and legal practice is described in the comments column.

Table IV.1: Comparison of ADB Policy with Kyrgyz Laws

ADB Policy Kyrgyz Legislation Comments Reconciliation Provisions

When an ADB-financed project causes resettlement impacts, a RP is to be prepared

Under the Kyrgyz procedures , appropriate documentation on impact and valuation is to be prepared; but such documentation does not have the format of an RP

Different practice without legal content

An RP has been prepared for this subproject.

APs must be fully informed and consulted on compensation and rehabilitation options

Requires AP consultation and information disclosure prior to the start of project activities.

Basically no difference

APs were consulted in the process of preparing this RP, and this RP will be disclosed to them.

Lack of formal land title should not be a bar to rehabilitation and at least compensation for non-land losses

LC and CC provide compensation for land or other assets only for APs with legal land status and registered assets.

Different legally and in practice

This RP provides for compensation at replacement rates based on authorized valuation, for all non-land asset losses regardless of legal land occupancy status and asset registration status. However, no land compensation is provided to APs without legal land occupancy status.

APs should be timely compensated

Clause 66 of LC stipulates that acquisition of land for state and public needs is made after compensation of losses and disbursement of entitlement.

Basically no difference in case of titled land users

This RP stipulates that civil works will not commence before the RP has been fully implemented.

APs should be compensated and/or assisted, so as to maintain their pre-project livelihood

Compensation given for land, house and other assets to legal but not to illegal land users/asset owners. No special rehabilitation allowance is

Small difference for titled land users and registered asset owners. Major difference for

All APs, irrespective of legal status, will receive compensation for non-land assets and general rehabilitation for income losses directly caused by the subproject. In addition, they will receive

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given either to legal/illegal APs.

untitled land users and unregistered asset owners

special allowances for severe impacts, vulnerable households, and remediation.

D. Resettlement Principles, Entitlements, and Eligibility 37. To address involuntary resettlement impacts of Component 3A subprojects and reconcile gaps between Kyrgyz law and ADB policy, the following resettlement principles, eligibility requirements, and entitlements matrix have been developed. D.1 Resettlement Principles 38. RPs, as necessary, fitting the requirements of the applicable Kyrgyz Republic laws and ADB SPS (2009) are to be prepared and implemented. The goal of these plans and the policies and compensation measures described below is to ensure that people who may lose land, assets, or will retain the same or even better living standard as that of the without project situation. RPs will be officially approved by the Kyrgyz Government and ADB. 39. The impacts caused by Component 3A subprojects will be compensated based on the laws, regulations, and policies of the Kyrgyz Republic and the requirements of the SPS Safeguard Requirements No 2 on Involuntary Resettlement, 2009. All impacts will be compensated at replacement rates and severely affected or vulnerable APs will receive special rehabilitation allowances. Based on the above assessment of national legislative provisions and ADB policy, the compensation/rehabilitation program under the EARR RPs is based on the following underlying principles: Involuntary resettlement is to be avoided or at least minimized; If impacts are unavoidable, appropriate compensation/rehabilitation at replacement

value will be provided so as to preserve AP’s pre-project living standards and livelihood status; APs will be assisted to restore their livelihood; APs will be fully informed and consulted on compensation options and implementation; and AP’s participation, particularly tСat of women and vulnerable Рroups, will be ensured in RP planning and implementation; AP’s socio-cultural institutions should be supported and used as much as possible; Compensation will be carried out with equal consideration of women and men; Lack of formal legal land title should not be a bar to compensation or at least rehabilitation; Particular attention should be paid to poor or women/disabled person-headed households; and appropriate assistance should be provided to them; Vulnerable APs will be provided special allowances; Appropriate redress mecСanisms to resolve AP’s Рrievances in a rapid manner will be established; Compensation payments will be initiated only after ADB has approved the RP; AP consultation will continue during the implementation of the RP and RP implementation will be monitored and reported to ADB; Before taking possession of acquired land and assets, compensation and rehabilitation assistance will be paid according to RP provisions; and Civil works for the subproject will only commence after the RP implementation has been completed, and verified.

D2. Eligibility

40. Fitting ADB policy and local law, under the Component 3A compensation eligibility and

12

entitlements framework, compensation and entitlements aim to assist APs to maintain or improve their standard of living after the subproject. APs eligible to compensation or at least rehabilitation provisions under Component 3A are: All APs losing land, whether covered by legal title/land rights, legalizable, or without

legal status; Tenants and sharecroppers whether registered or not; Owners of buildings, crops, plants, or other assets attached to the land; and APs losing business, income, and salaries. 41. Compensation eligibility will be limited by a cut-off date to be set on the day of the end of the subproject impacts survey and AP Census and notification provided by the local authority (12 April 2013 in Osh). Persons that settle in or otherwise make use of affected areas after the cut-off date notification will not be eligible for compensation. Impacts occurring or detected after this date will be handled by the GRG and compensated if found valid and eligible by the GRG. D3. Entitlements 42. In principle, the Land Code of the Kyrgyz Republic and ADB policy both adhere to the objective of compensation at replacement cost. Under Component 3A, all APs will be entitled to a combination of compensation and necessary assistances reflecting type of property lost or asset loss, magnitude of loss, impact on livelihood, and degree of APs socio-economic vulnerability. APs that do not own land or other properties but have economic interests and suffer loss of income or livelihoods will be assisted. 43. To assist recognized vulnerable households and further mitigate impacts, a vulnerability allowance computed based on the current official minimum subsistence level (MSL) of the Oblast will be provided to the household head, multiplied by three (3) months. A similar allowance will be provided to severely affected households suffering more than 10% loss of agricultural land or income.

44. A comprehensive set of compensation and rehabilitation entitlements and provisions for persons affected by Component 3A subprojects has been prepared. Although loss of residential or commercial land, business and associated employment income, and crops are not anticipated in Component 3A subprojects, and no relocation is expected; entitlements and compensation for these losses and impacts have been specified in case such impacts occur. The complete Component 3A Entitlement Matrix is provided in Annex 1. Table IV.2 below abbreviates the full Component 3A Entitlement Matrix and shows Osh Subproject-pertinent provisions. RP compensation payments will be made by SAACCS in liaison with LAs and witnessed by the Oblast Ombudsman.

Table IV.2: Subproject-pertinent RP Entitlement Matrix Provisions


Trees: Productive

Owner of

Trees Affected; (all APs, including squatters/ encroachers)


Determined by the Independent Valuator and as supported by legal opinion from competent authority.

Trees: Non-productive

Owner of

Trees Affected; (all APs, including squatters/ encroachers)

Timber and other non-productive trees will be compensated at commercial value of the wood multiplied by its volume. Calculated on the basis of tree diameter.


13

Compensation for trees will be free of deduction for the value of the wood left to the AP.

V. GRIEVANCE REDRESS MECHANISM

A. Grievance Redress Functions and Process 45. A GRM responsive to ADB Safeguard requirements was established for Component 2: reconstruction and repairs of houses by the original IA, and extended with adaptations to Component 3A at the outset of subproject design-associated impacts assessment activities in 2012. Following the transition in EARR implementation from SDRD to SAACCS in early 2013, the GRM was revalidated and the GRM’s GRG was adjusted accordingly. The GRM is accessible to all persons affected by the Osh Subproject. In April 5, 2013 SAACCS issued tСe order #123 “About Grievance Redress MecСanisms of “Emergency Assistance for Recovery and Reconstruction” Project, wСicС determines tСe composition of GRG and the complaint procedure. Osh subproject local self-governments Osh city Mayor Office and Toloykon aiyl okmotu issued Decrees1 “On the Assignment of a Responsible Person for Grievance Redress in the Emergency Assistance for Recovery and Reconstruction Project Component 3A”

46. The GRM provides a basis for receiving, managing, reviewing, and facilitating the resolution of issues, concerns, complaints, or grievances raised by APs regarding RP implementation, including those associated with assets compensation. Based on this mechanism, aggrieved APs may access the GRM through local points of contact (LPC) and will be assisted by the SAACCS Safeguard Unit and the GRG tasked with all activities needed to discuss a grievance, validate and assess the scope of impacts, and decide compensation or other redress action needed. The GRG is composed of a core group and an independent observer (Oblast Ombudsman) to make informed and balanced decisions on complaints lodged. Projectwill cover compensation costs for impacts found eligible by the GRG during RP implementation. The GRM allows for internal appeal/reconsideration of grievances but there are no ancillary levels of appeal. APs may seek recourse to the court of law at any stage of the grievance redress process. The GRM process is shown in Figure 3 below.

47. Citizen complaint and grievance redress procedures have been developed in compliance with the Law of tСe KyrРyz Republic “On procedure of processinР complaints of citizens” as well as ADB SafeРuard Policy. As sСown in FiРure 3, the grievance redress process involves the following steps: Complaints/appeals received from affected persons are registered by SAACCS

Correspondence Department. After review by the First Deputy of SAACCS Osh City, complaints are passed to the appropriate department for review. Received complaints are divided into complains/appeals related to EARR subprojects and those not related to EARR subprojects. Complaints/appeals related to EARR subprojects are received and registered by the SAACCs Safeguard Unit and acknowledged by letter signed by the First Deputy to the complainant within 7 days of registration.

1 OsС City Mayor’s Office Decree # 219B, dated 24 April 2013: On tСe AssiРnment of a Responsible Person for

Grievance Redress in the Emergency Assistance for Recovery and Reconstruction Project Component 3A; and Toloykon aiyl okmotu Decree # 191, dated 29 April 2013: On the Assignment of a Responsible Person for Grievance Redress in the Emergency Assistance for Recovery and Reconstruction Project Component 3A

14

Complains/appeals related to EARR subprojects which are possible to solve under authority of the First Deputy will be studied and decided. SAACCS’s Safeguard Unit provides internal review of the grievance, determines eligibility, and advises the First Deputy accordingly. A response letter will be prepared by the SAAACCS Social Safeguards Specialist signed by the First Deputy and sent to the complainant within 14 days of complaint registration. In the event an eligible complaint cannot be resolved within SAACCS immediate authority, the GRG is triggered. The First Deputy of SAACCS of Osh City will convene the Grievance Redress Group (GRG) which will consider the balance between the complainant and the public interest. Members of GRG will review the complaint and meet with the complainant. If necessary, they may consult with legal expertise and/or request for additional information from the complainant, Local Authorities, or governmental agencies. After the GRG completes its investigation, a letter will be prepared by the SAACCS Social Safeguards Specialist signed by the First Deputy and sent to the complainant advising of GRG decision and associated action within 21 days after registration. If the complainant does not agree with the decision, he/she will have 5 days to request the reconsideration of his/her complaint. If reconsideration (appeal) is not requested, the case will be closed. This will be clearly stated in the response letter. Complaints found ineligible or disputed decisions may also be taken by complainants to the courts.

Figure 3: GRM Flow Chart

15

® A signed receipt of the letter will be required from the complainant

48. For managing the Subproject complaint handling system, SAACCS, with support from the PMC has furnished the GRM with necessary staff and facilities and provides administrative and organizational support as required. Although the GRM provides an integrated complaints handling system, separate data bases aremaintained containing information about complaints related to the ADB Safeguard Policies on environment and involuntary resettlement. All grievance-related documentation will be kept until the EARR is formally closed. SAACCS will include summary data on complaint processing and results in progress reports submitted to ADB. 49. SAACCS, with assistance from local leaders, and community representatives, isinform the presence of the GRM to the public and Subproject Area communities through dissemination of subproject information through local media, in consultations with affected persons and the public, and the EARR website (www.earr.kg). B. Local Point of Contact 50. Affected people may lodge complaints for registration through a personal visit, call or letter to designated local points of contact (LPC) established at the local government level in

7 days from the registered

date a response letter must

be sent to the complainant

14 days from the

registered date the

eligibility letter must be

sent to the complainant

21 days from the registered date the GRG decision letter must be sent to

the complainant

http://www.earr.kg/

16

each Subproject Area. LPCs nominated by LAs have been presentedby SAACCS and trained on RP issues to monitor RP implementation, respond to AP queries, and receive AP complaints. Upon receiving complaints, t he LPC will promptly forward them to SAACCS, activating the GRM process described above. The GRM LPC for the Osh Subproject is the Senior Specialist of Tuleiken A/O.

C. Grievance Redress Group 51. The GRG for the Osh Subproject includes the following:

1. Deputy Chief Architect of Osh City (chairperson); 2. Representative(s) from involved Subproject Area local governments: Osh City Mayor’s

Office and/or Tuleiken Ayil Okmotu (member); 3. SAACCS Social Safeguard Specialist; (member); 4. Representative of the Ombudsman of Osh City/Oblast (independent observer) 5. Technical specialist(s) from the relevant organizations as required by the nature of the

complaint filed. The technical expertise to objectively review and resolve the case may be solicited from the following state and non-state organizations: PMC/DSC State Registration Services (Gosregister) Ministry of Agriculture State Agency for Environment and Forestry Ministry of Justice Other agencies

VI. CONSULTATION, PARTICIPATION, AND DISCLOSURE

52. RP preparation involved public consultation, public participation, and information dissemination carried out during Subproject-associated involuntary resettlement impacts assessment, AP census, inventory of loss, household-level socio-economic survey and interviews, cut-off date notification, valuation of affected assets, and AP and public comment on the Draft RP.

A. Consultation and Participation 53. Meaningful and informed consultations with affected persons and the public have been undertaken during Subproject design, impacts assessment, and RP preparation. Consultation has been based on the following principles:

Early start in the subproject preparation stage and continuation throughout the subproject cycle; Timely disclosure of relevant information in a comprehensible and readily accessible to affected people format; Ensuring the absence of intimidation or coercion during public consultation; Gender inclusive and responsive with focus on disadvantaged and vulnerable groups, and Enabling the integration of all relevant views of affected people and stakeholders into decision-making, subproject design, and RP preparation.

54. Annex 6 summarizes the scope and extent of consultation and participation activities undertaken during preparation of the RP for the Osh Subproject.

B. Disclosure 55. The RP will be disclosed to the public on the ADB and the EARR websites in English, Russian, and Kyrgyz languages and in local government offices in the Subproject Area. Prior to public consultation on the Draft RP, an associated informational brochure in Kyrgyz and

17

Russian languages was also distributed to APs, NGOs, civil society organizations, and local governments in the Subproject Area. The RP Information Brochure, based on the Draft RP, is provided in Annex 3.

VII. IMPLEMENTATION ARRANGEMENTS

A. Institutional Roles and Responsibilities

56. Several agencies and parties were involved in preparation of the Subproject RP and these and others will be involved in its implementation. These include the MOF, SAACCS, the PMC, the Osh Subproject LARInterdepartamental Commission, the DSC, the Independent Valuator, the GRG, the Osh Oblast Ombudsman, and civil society. The relationship of these agencies and parties is shown in Figure 4 below and Table VII.1 summarizes associated responsibilities for RP preparation and implementation. 57. ADB requires that the RP be prepared in consultation with the affected people; and that a Draft RP will be disclosed to affected communities and the public for review and comment. ADB provides guidance to the EA and IA on its Safeguard policies and RP preparation, and discloses the RP on the ADB website. As per April 2013 agreement between ADB, MOF, and SAACCS, an RP implementation report will be submitted to ADB before the start of civil works. ADB will issue a ‘no objection letter’ accordingly. To receive ADB support for the Subproject, the Government of the Kyrgyz Republic agrees to comply with ADB safeguard policy requirements. The Government must approve the RP and its budget and agree to the allocation of Project funds for RP implementation. After agreement on the finalized RP with relevant ministries, tСe Prime Minister’s Office (PMO) will issue and publish a Government Ordinance endorsing the RP. 58. As the EA, the MOF has overall oversight responsibility for the preparation and implementation of the Subproject RP. MOF oversees compliance with ADB safeguard requirements and provides tСe RP’s budРet allocation from Project funds approved by the PMO. MOF and SAACCS will submit a Withdrawal Application to ADB for use of Project funds. SAACCS has operational responsibility for all aspects of RP preparation and implementation as the Component 3A IA. With MOF, SAACCS shares responsibility for compliance with ADB Safeguard policy and with associated Kyrgyz Republic requirements. SAACCS supervised RP preparation activities performed by the DSC and is responsible for the submission of the Draft and Final Subproject RPs to ADB and for their in-country disclosure on the EARR website and through dissemination to local administrations in the Subproject Area. SAACCS is responsible for tСe operation of tСe Subproject’s GRM, the establishment of its GRG, and the resolution of AP grievances during RP preparation and implementation. It also took responsibility for consultation with APs, for convening the required Public Consultation to review the Draft RP, and for the prior dissemination of information on the Subproject and RP enabling informed and meaningful consultation.

Figure 4: Resettlement Plan Institutional Relationships

18

59. Within SAACCS, Component 3A technical implementation aspects are managed by the Office of the Deputy Chief Architect of Osh City. The Deputy Chief Architect chairs the GRG. Specific management of resettlement-related tasks is assiРned to tСe SAACCS’s Safeguard Unit which includes a National Safeguards Specialist responsible for social safeguards and resettlement. SAACCS is also fully responsible for RP implementation, including payment of compensation and allowances to eligible APs, and preparation and submission of a RP Implementation Report to ADB. The separate State Expertise Unit of SAACCS was responsible for review and approval of the valuation of Subproject-impacted assets provided by the Independent Valuator and for issuing a positive legal opinion on the methodology and results of the Valuation Report. 60. SAACCS has interfaced with a Interdepartmental LAR Commission that includes the Local Governments in Subproject-affected areas and all major Government agencies involved with land administration, water supply, and environmental regulation. These agencies are called in by SAACCS, based on their specific responsibilities, to review and approve the work carried out for specific RP tasks such as identification of legal status of affected properties and assets, identification of APs, and assessment of assets including trees and fences. These agencies took part in joint exercises to identify water transmission line alignments that minimized Subproject involuntary resettlement impacts and assisted in AP consultations; and have reviewed and approved the results of impacts assessment surveys, AP Census, and Inventory of Loss. Local administrations and Osh Vodocanal are also represented in the Subproject’s GRG; and local administrations Сave desiРnated a LPC for the GRM. The LAR Coordination Committee also assisted in local disclosure of Draft and Final Subproject RPs and provided support for Public Consultation on the Draft RP.

TableVII.1: Resettlement Plan Preparation and Implementation Responsibilities Agency/Individual Responsibility

Institutional Relationships in Resettlement Plan (RP) Preparation, Approval, and Implementation

Government of the Kyrgyz Republic

Ministry of Finance (MOF) Executing Agency

EARR Project Management Consultant (PMC) SAACCS Safeguard Unit

International Resettlement Consultant (IRC) National Resettlement Consultant (NRC)

National Social Development Specialist (NSDS) Independent Valuator Values Asset and Income Loss

Valuation Report approved by SAACCS Expertise Unit

EARR Component 3A Design and Supervision Consultant (DSC) Responsible for Subproject design

that minimizes resettlement impacts

Osh Oblast Ombudsman (Independent Observor)

Grievance Redress Group Compensation Witness

Grievance Redress Group (GRG)

AFFECTED PERSONS

RESETTLEMENT PLAN IMPLEMENTATION

RESETTLEMENT PLAN APPROVAL By ADB and Kyrgyz Republic

NGOs and Civil Society

PUBLIC CONSULTATION During RP Preparation

and on Draft RP

RESETTLEMENT PLAN PREPARATION By Implementing Agency

With DSC Support

Local Authorities Osh Mayor, Vodocanal, Kara-Suu District, Toleiken A/O

LAR Coordination Group

State Agency for Architecture, Construction, and Communal Services (SAACCS) Implementing Agency

19

1 Government of the Kyrgyz

Republic

- Approval of RP

- Decision to allocate project funds for RP implementation

2 MOF - Overall RP oversight responsibility as EARR Executing

Agency

3 SAACCS - Operational responsibility for RP as EARR Component 3A

Implementing Agency

- Compliance with ADB Safeguard policy and associated

Kyrgyz requirements

- Supervision of RP preparation activities of DSC

- Approval of assets valuation through Department of

SAACCS State Expertise Unit

- Submission of Draft and Final RPs

- In-country RP disclosure on SAACCS website

- Consultation with APs and public

- Implementation of RP, including payment of

compensation and allowances

- Preparation and submission of RP Implementation

Report

- Establishment of GRM and GRG; and resolution of

grievances during RP preparation and implementation

4 PMC - Support to Implementing Agency in safeguards

compliance; oversight of DSC activities; RP preparation,

implementation, and monitoring; and operation of GRM

5 DSC - Subproject designs avoiding or minimizing involuntary

resettlement impacts

- Design and execution of impacts surveys and socio

economic surveys

- Consultations with affected persons and communities

- Support to SAACCS in RP preparation and

implementation

- Preparation of the report on RP implementation (Compliance Report)

6 Independent Valuator - Valuation of affected assets

- Submission of Valuation Report detailing valuation

methodologies and results for approval and Department

of SAACCS State Expertise Unit positive legal opinion

7 Osh Oblast Ombudsman - Participation in GRG as Independent Observer

- Witness to compensation payment process and

transparency

8 Osh Subproject LAR

Interdepartmental

Commission

- Review/approval of Identification of impacts surveys and

AP census

- Membership in GRG

- Nomination of LPC for the GRM

- Support for AP and Public Consultations

- Local Disclosure of Draft and Final Subproject RPs

9 NGOs and Civil Society - Participation in Public Consultation on Draft Subproject

RP

B. Implementation Schedule

61. The preparation and implementation schedule of the Component 3A Osh Subproject RP is detailed in Figure 5. As shown, satisfactory implementation of the RP is a condition for commencement of Subproject civil works.

20

Figure 5: RP Implementation Schedule

VIII. COST AND FUNDS FLOW

A. Compensation Rates Calculation

62. Trees. Compensation rates for affected trees are based on their market value. Non-productive: non-fruit trees, poplar in the case of the Osh Subproject, were assessed on the basis of the market value of wood multiplied by its volume, without deduction of processing costs. The mass of each tree was appraised based on width diameter, grouped in width classes. Productive: fruit trees (apple, mulberry, and cherry in the case of the Osh Subproject) were assessed on the basis of the market value of harvests at current prices for the period necessary for the cultivation of each tree and compensated on the basis of the sum of seedling market value, seedling present value, and foregone earnings from the crop sales. Detailed description of the valuation methodology for affected (productive) fruit and non-fruit (non-productive) trees and the detailed calculations of associated calculations of compensation are provided in Annex 3. The valuation methodologies were described in the RP Information Brochure and during consultations with APs and the public.

B. Costs Assessment 63. The total cost of compensation for Subproject-affected fruit and non-fruit trees in Ozgor Village is Som 21,476, as shown in Table VIII.1 below (for detailed valuation and calculation of compensation see Annex 4). As also shown, the total cost for the implementation of the Osh RP including a contingency provision of 10% is estimated at Som 23,626.

Table VIII.1: Compensation and RP Implementation Cost Tree Type Number Compensation

(Som)

A. Compensation Cost

Fruit 6 18.675

Non Fruit 45 2,803

Sub-Total 51 21,478

RP Implementation Cost

2014

May - Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. - Dec.

Engineering investifations, surveys and designs

LAR census and surveys

Valuation

AP consultations

Cut-off date notification

Preparation of draft RP

Public consultation on the basis of draft RP

Finalization of RP

Consideration of the RP by the PMO

Issuance of Government Ordinance for RP implementation

Issuance of SAACCS degree for RP implementation

Approval of RP disclosure on ADB and EARR website

Submission of Withdrawal Application for disbursement of RP funds

Compensation payments to APs

RP implementation monitoring

Submission of RP Implementation Report to ADB

ADB review of RP Implementation Report; issuance of no-objection for commencement of civil works

Grievance Redress Mechanisme

Subproject construction

2012 2013

Tasks

21

Contingency provision @ 10% 2,148

Grant Total 23,626

IX. MONITORING A. Monitoring Objectives and Responsibilities

64. Monitoring of Component 3A Subproject RP implementation will be carried out by SAACCS to assess compliance with ADB safeguard policies and satisfactory implementation of RP provisions. The SAACCS Safeguards Unit will have primary operational responsibility for monitoring RP implementation, with support from the PMC and DSC. Monitoring will ver i fy and document progress in payment of RP compensation and implementation of other RP provisions, and SAACCS will prepare a RP Implementation Report within one month from the completion of compensation payments and before 20 September 2013 for submission to ADB for review.

B. RP Implementation Report

65. The RP Implementation Report will be the basis for ADB to provide no-objection to the start of Subproject civil works. SAACCS, through the DSC and PMC, will closely monitor the implementation of the RP and engage in the following tasks: (i) review of RP and Information pamphlet disclosure; (ii) review of action taken to compensate APs with particular attention to the way this action fits stipulations of the RP; (iii) review all compensation accounts and records; (iv) verify whether the RP compensation has been thoroughly provided to all APs and in the amounts specified in the RP; (v) assess the satisfaction of the APs with RP information dissemination, disclosure, and consultation; with the compensation package provided to them; and with other RP provisions and measures; (vi) review complaints and grievance cases; and (vii) carry out an AP satisfaction survey. 66. The main milestones to be monitored during the RP implementation process are:

RP disclosure and information dissemination to APs; Public Consultation on Draft RP; Dissemination of information to APs on compensation and allowance payment arrangements; Payment of compensation and allowances; Effectiveness of the complaints handling mechanism and number of complaints review sessions by GRG, and Disclosure of RP Implementation Report

The first two of these milestones will occur prior to implementation monitoring; and their assessment and verification will be retroactive. The first two of these milestones will occur prior to implementation monitoring; and their assessment and verification will be retroactive. Annex 4 provides guidance and general specifications for Component 3A Subproject RP implementation monitoring and reporting.

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ANNEX 1: COMPONENT 3A ENTITLEMENT MATRIX

The Component 3A Entitlement Matrix draws on precedent ADB-associated entitlement matrices developed by Ministry of Transport and Communication, Ministry of Economy, and other Kyrgyz Republic bodies. It also incorporates provisions for corrective measures, as per ADB, MOF, and SAACCS agreement requiring preparation of Corrective Action Plans (CAPs) for the Bazar Korgon and Jalal-Abad subprojects. The complete Component 3A Entitlement Matrix is provided below.

Component 3A Entitlement and Compensation Matrix

Asset/Impact Eligible APs Entitlements Notes

Agricultural Land

Titled/Legalizable Owner suffering permanent loss of agricultural land

Land for land compensation with plots of equal value and productivity to plots lost; or cash compensation for affected land at replacement cost based on market value free of taxes, registration, and transfer costs

Cash compensation, as determined by the Independent Valuator and as supported by legal opinion from competent authority. Land should be acquired in its entirety if the remaining parcel after acquisition is no longer economically viable. For purposes of this RP, economic viability is compromised when less than eighty per cent (80%) of plot remains after acquisition. .

Leaseholder / Tenant

Renewal/reallocation of lease of equal duration in other plots of equal value and productivity to plots lost; or cash compensation equivalent to potential income loss from leased land measured as net annual yield of affected land multiplied by the number of remaining years under the current lease, if any.

Comparative value/productivity of lease and cash compensation determined by the Independent Valuator and as supported by legal opinion from competent authority. Net income determined by value of total crop yield (gross) minus production costs

Sharecropper Sharecroppers will receive their share of harvest at market rates plus cash compensation equivalent to net income from one (1) additional harvest

Squatter/Encroacher Rehabilitation for land use loss equal to market value of one (1) gross harvest (in addition to crop compensation, if necessary) + improvements made to the land plot used

No compensation is provided to the illegal/un-titled land users for the land. Cash compensations determined by Independent Valuator and as supported by legal opinion from competent authority.

Residential/Commercial Land

Titleholder/Owner Land for land compensation through provision of land of comparable value and location to plots lost; or cash compensation for affected land at full replacement cost free of

23

taxes, registration, and transfer costs

Renter/Leaseholder Land renters/leaseholders who leased land for residential/commercial purposes will be provided rental allowance for the number of months remaining under the current lease contract for equivalent accommodation/premises at prevailing market rate.

Squatter Three (3) months self-relocation allowance for equivalent accommodation/ premises at prevailing market rate

Buildings, Houses, and other Structures

APs including squatters Cash compensation at replacement rates for affected structure and other fixed assets based on cost of materials, labor, transport of materials, and reinstallation of facilities, free of salvageable materials, depreciation, and transaction costs. In case of partial impacts, full cash assistance to restore remaining structure.

Includes compensation for investments into leased or informally used state land at replacement value covering drainage/irrigation and other improvements, as determined by Independent Valuator and as supported by legal opinion from competent authority.

Trees: Productive Owner of Trees Affected



Trees: Non-productive Owner of Trees Affected

Timber and other non-productive trees will be compensated at commercial value of the wood multiplied by its volume. Calculated on the basis of tree diameter. Compensation for trees will be free of deduction for the value of the wood left to the AP.

Fences Owner Compensation for fence relocation, plus eventual damages.


24

Business

All APs suffering temporary or permanent loss of business

Compensation of business income lost for the period of business stoppage due to water and sewage transmission line construction. .

For the duration of business interruption as determined by Independent Valuator, should such impacts occur.

Employment Labourers Cash indemnity corresponding to their salary for the remaining part of contract.

Cash compensation determined by Independent Valuator.

Relocation All APs affected by relocation

Relocation subsidy including transport allowance sufficient to cover transfer costs and transitional livelihood expenses for one (1) month at official minimum subsistence level.

Severe Impacts Allowance .

AP suffering >10% loss of productive assets or income Titled/legalizable land owner Leaseholder squatter/encroacher

When >10% of APs land or income is affected, APs will receive a severe impact allowance equal to a three (3) month allowance based on minimum subsistence level.

Minimum subsistence level for Osh Province is 4,522.53 Som per month, for Jalal-Abad province is 4,567.31 Som (NSC 11.04.2013).

Vulnerable Households Allowance .

Officially defined and recognized households below poverty line; families headed by women/ disabled; and families with more than five children

A three (3) month allowance equivalent to the official minimum subsistence level

Minimum subsistence level for Osh Province is 4,522.53 Som per month, for Jalal-Abad province is 4,567.31 Som (NSC 11.04.2013).

Crops All APs (including squatters) with crops affected

Crop losses, in the event they occur, will be compensated in cash at full market rate based on actual losses

Remediation Allowance All APs, as identified in

RP-associated

Corrective Action Plan

(CAP).

Allowance equivalent to net income from one (1) year’s Сarvest1 provided to LAR-affected landowners, leaseholders, and/or informal land-users affected by inconveniences associated by the project activities.

As determined by Independent Valuator and as supported by legal opinion from competent authority.

Unforeseen impacts due to construction work or design adjustments subsequent to RP preparation.

Any If found eligible by the GRG, these impacts will be compensated as per the policy framework and entitlements defined above.

1. Recognizing the predominance of rice-cropping in the region and upon Subproject-affected lands, rice production is the basis of

harvest income calculation in this Entitlement Matrix.

25

***

ANNEX 2: OSH SUBPROJECT RESETTLEMENT PLAN INFORMATION BROCHURE

STATE AGENCY FOR ARCHITECTURE, CONSTRUCTION,

AND COMMUNAL SERVICES

OF THE KYRGYZ REPUBLIC

Emergency Assistance for Recovery and Reconstruction Component 3A:

Water Supply and Sanitation

Osh Subproject

A. Introduction

1. The Kyrgyz Republic has received financial support from the Asian Development Bank (ADB) under a Financing Agreement for Emergency Assistance for Recovery and Reconstruction (EARR) signed between Kyrgyz Republic and the ADB on 27 September 2010.

1

2. EARR Component 3A aims to improve water supply and sanitation in the cities of Osh and Jalal-Abad and in Bazar-Korgon. It addresses rehabilitation and/or replacement of water supply intake works, treatment, and transmission systems to supply continuous and reliable water in these areas and includes sewerage improvements. The State Agency for Architecture, Construction, and Communal Services of the Kyrgyz Republic (SAACCS) is the Implementing Agency of Com pon e n t 3 A . SAACCS has assigned the responsibilities for technical aspects related to subproject implementation to the Deputy Chief Architect of Osh City. 3. Design work for improvements in the water supply and sewerage systems in Bazar-Korgon and Jalal-Abad and Osh cities started in June 2012. Construction is expected to start during late 2013 or early 2014 with completion planned by end of 2014. EARR implementation will close on 31 March 2015. The estimated cost of EARR Component 3A water supply and sanitation improvements is approximately USD 20.0 million.

B. Osh Subproject Description

4. The Component 3A Osh Subproject aims to enhance existing water supply arrangements in Osh City and to carry out measures to improve the system, including rehabilitation of water intake and associated transmission, treatment plant, and reservoir improvements, to provide better treated and a more reliable water supply to the inhabitants of Osh City. The estimated cost of the Osh Subproject is approximately USD 7 million. Proposed water supply Improvements under the Osh Subproject include: Rehabilitation of the Plotina Water Intake including reconstruction of a 300m long (dia 1,600mm)

underground drainage water intake, site security, and flood protection; Construction of a new 4.7 km long (dia 1,000 mm) water transmission pipeline from the Plotina Intake to the water treatment plant (WTP) at Ozgor; Modernization of the 240,000 cum/day chlorination facility at the Ozgor WTP; Improvements to the existing 6,000 cum water reservoir at the Brick Factory site in the western part of the city; and Construction of an additional 6,000 cum water reservoir at the Brick factory site.

C. Osh Subproject Resettlement Plan

5. To comply with requirements of the ADB Safeguard Policy Statement (SPS 2009), SAACCS has prepared a Resettlement Plan (RP) detailing Osh Subproject impacts, compensation entitlements, and compensation mechanisms and procedures, as well as other RP provisions. 6. This Information Brochure summarizes the main points of the RP. Its objective is to disclose and summarize for the benefit of affected persons (APs) and the public the impacts of the Osh Subproject in Ozgor Village, Kara-Suu District and the other stipulations detailed in the RP. This brochure will be sent to all APs and distributed to Subproject Area NGOs, civil society organizations (CSOs), and Local

1 Loan Number 2668-KGZ(SF) and a Grant Number 0217–KGZ(SF).

26

Authorities (LAs) in advance of a Public Consultation on the Draft Resettlement Plan to which APs and all interested parties are invited to attend. Key provisions of the RP will be disclosed to the APs, CSOs and LAs through the brochure distribution and the RP will be disclosed to the public on the ADB and EARR websites in English, Russian, and Kyrgyz languages and in local government offices in the Subproject Area. 7. The Public Consultation on the EARR Component 3A Osh Subproject Draft Resettlement Plan will be held at XX AM/PM on _XX July, 2013 at the XXXX. D. Impacts Summary 8. Comprehensive assessment of potential impacts of all proposed Osh Subproject water supply improvement measures indicates that all proposed civil works are within the existing right-of-way or other public land, and that no private land acquisition is necessary. Construction of the new water transmission line from Plotina to Ozgor will require clearing of fifty-one (51) trees in the first 50 m exiting the Plotina Water Intake Area complex. Although planted on public land, these trees are owned by two (2) households living adjacent to the affected area in Ozgor Village of Tuleiken Ayil Okmotu. In short, resettlement-associated impacts of the Osh Subproject are minimal. In all, there are only two (2) affected parties and neither is severely affected or a member of a vulnerable group. E. Resettlement Policy and Principles

9. The impacts caused by Component 3A subprojects will be compensated based on the laws, regulations, and policies of the Kyrgyz Republic and the requirements of ADB’s Safeguard Policy Statement (SPS 2009). The compensation/rehabilitation program under the RPs is based on the following underlying principles: Involuntary resettlement is to be avoided or at least minimized; If impacts are unavoidable appropriate compensation/rehabilitation at replacement value will be

provided so as to preserve APs pre-project living standards and livelihood status; APs will be assisted to restore their livelihood; APs will be fully informed and consulted on LAR compensation options and implementation; and AP’s participation, particularly tСat of women and vulnerable Рroups, will be ensured in RP planning and implementation; APs’ socio-cultural institutions should be supported and used as much as possible; Compensation will be carried out with equal consideration of women and men; Lack of formal legal land title should not be a bar to compensation or at least rehabilitation; Particular attention should be paid to poor or women/disabled person-headed households; and appropriate assistance should be provided to them; Vulnerable and severely impacted APs will be provided special allowances; Appropriate redress mechanisms to resolve APs grievances in a rapid manner will be established; Compensation payments will be initiated only after ADB has approved the RP; AP consultation will continue during the implementation of the RP and RP implementation will be monitored and reported to ADB; Before taking possession of acquired land and assets, compensation and rehabilitation assistance will be paid according to RP provisions; and Civil works for the subproject will only commence after the RP implementation has been completed, and verified: Before taking possession of acquired land and assets, compensation and rehabilitation assistance will be paid according to RP provisions; and Civil works for the subproject will only commence after the RP implementation has been completed, and verified.

F. Compensation Eligibility and Entitlements 10. Fitting ADB policy and local law, under the Component 3A compensation eligibility and entitlements framework, compensation and entitlements aim to assist APs to maintain or improve their standard of living after the subproject. APs eligible to compensation or at least rehabilitation provisions under the Project are: All APs losing land, whether covered by legal title/land rights, legalizable, or without legal status; Tenants and sharecroppers whether registered or not;

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Owners of buildings, crops, plants, or other assets attached to the land; and APs losing business, income, and salaries.

11. Compensation eligibility is limited by the cut-off date set by the Local Authority following the end of the impacts survey and AP Census (12 April 2013). Persons that settle in or otherwise make use of affected areas after the cut-off date notification will not be eligible for compensation. Impacts occurring or detected after this date will be handled by the Grievance Resolution Group (GRG) and compensated if found valid and eligible by the GRG.

12. Compensation payments will be made by SAACCS in liaison with Local Authorities and witnessed by the Oblast Ombudsman.

13. A comprehensive set of compensation and rehabilitation entitlements and provisions for persons affected by Component 3A subprojects has been prepared. The complete Entitlement Matrix is provided in the RP. Table 1 below abbreviates the full Entitlement Matrix and shows Osh Subproject-pertinent provisions.

Table 1: Osh Subproject-pertinent RP Entitlement Matrix Provisions


Loss of Trees Owner of Trees Affected (All APs, including

Squatters/

encroachers)

Productive: fruit bearing trees will be compensated 0n the basis of the sum of seedling market value, seedling present value, and foregone earnings from the crop sales. Non-productive

: timber and other trees will be compensated at commercial value of the wood multiplied by its volume. Calculated on the basis of tree diameter.

Compensation for trees will

be free of deduction for the

value of the wood left to the

AP.

Determined by the Independent Valuator.

G. Compensation Rates

14. Compensation rates for affected trees are based on their market value. Non-productive: non-fruit trees, poplar in the case of the Osh Subproject, were assessed on the basis of the market value of wood multiplied by its volume, without deduction of processing costs. The mass of each tree was appraised based on width diameter, grouped in width classes. Productive: fruit trees (apple, mulberry, and cherry in the case of the Osh Subproject) were assessed on the basis of the market value of harvests at current prices for the period necessary for the cultivation of each tree, and compensated on the basis of the sum of seedling market value, seedling present value, and foregone earnings from the crop sales. The affected assets were inspected in the presence of their owners by an Independent Valuator, with the assistance of local authorities and other experts. 15. The compensation unit rates for Subproject-affected fruit and non-fruit trees in Ozgor Village are shown in Table 2 below. The detailed valuation and calculation of compensation is fully described in the Subproject RP.

Table 2: Compensation Unit Rates

Item Compensation

Basis

Number Unit Unit Value

Fruit Trees (Productive)

(Apple, Mulberry, Cherry)

Replacement

value

6 Tree Variable based on species,

age, and harvest value

Non-Fruit Trees (Non-

productive)

(Willow and Poplar)

Market value of

wood

45 Som 1,000

m3

Variable based on volume of

tree

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H. Complaints and Grievance Redress Mechanism 16. The Subproject RP details a grievance redress mechanism (GRM) established under the EARR to receive, manage, review, and facilitate the resolution of issues, concerns, complaints, or grievances raised by APs regarding Subproject implementation. Based on this mechanism, aggrieved APs may access the GRM through local points of contact (LPC) and will be assisted by the SAACCS Safeguard Unit and a Grievances Redress Group (GRG) tasked with all activities needed to discuss a grievance, validate and assess the scope of eventual impacts, decide eventual compensation or other redress action needed, and instruct and facilitate the functioning of the GRM. The GRG is composed of a core group and a representative of the Ombudsman to make informed and balanced decisions on complaints lodged.

17. The grievance redress process involves the following steps:

Complaints are received and registered by the SAACCs Safeguard Unit and acknowledged by letter to the complainant within 7 days of registration; SAACCs Safeguard Unit provides internal review of the grievance, determines eligibility, and advises the complainant accordingly within 14 days of registration; In the event an eligible complaint cannot be resolved immediately within SAACCS authority, the GRG is triggered. Complainants are advised of SAACCS or GRG decision and associated action

within 21 days of registration; If the complainant does not agree with the decision, he/she will have 5 days to request the reconsideration of his/her complaint. if reconsideration is not requested, the case will be

closed; Complaints found ineligible or disputed decisions may be taken by complainants to the courts.

18. The GRM Local Point of Contact for the EARR Component 3A Osh Subproject is the Senior Specialist of Tuleiken Ayil Okmotu.

I. Contact Information

19. For additional information on the EARR Component 3a Osh Subproject and its Resettlement Plan, please contact the following: (i) Mr. A. A. Tokoshev First Deputy of Architecture in Osh City State Agency for Architecture, Construction, and Communal Services 318 Lenin St. 723500 Osh City, Kyrgyz Republic Tel: +996 (3222) 5-51-52 [email protected] (ii) Ms. Asylgul Seitbekova Social Safeguards Specialist State Agency for Architecture, Construction, and Communal Services 318 Lenin St. 723500 Osh City, Kyrgyz Republic Tel: +996 (3222) 2-44-13 [email protected]

21. EARR Information and the disclosed Osh Subproject Resettlement Plan will be accessible on the ADB and the EARR websites:

www.adb.org and www.earr.kg

mailto:[email protected]:[email protected]://www.adb.org/http://www.earr.kg/

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ANNEX 4: METHODOLOGY FOR AND RESULTS OF VALUATION OF LOSSES This Annex provides EARR Component 3A Osh Subproject-pertinent excerpts of the Valuation Report prepared by the Independent Valuator “Centre for Independent Evaluation and Analysis “Business Expert” and submitted to the Implementing Agency and ADB for review and approval and to the SAACCS Department of State Expertise for positive legal opinion. The full report is on file with SAACCS and available for inspection upon request.

General provisions of the report

Influence and location of property capacity During the project implementation the following influence was expected:

1. Felling of trees, saplings and shrubs, situated in front of the land plots of inhabitants in the following locations:

Osh region, Ozgur village; : property valuation, that is subject to demolition / slash or transport, i.e. negative influence;

Property that is subject to be affected (table 1)

# Asset type Measure Units

Osh region, Ozgur village

1 Non fruit trees unit 45

2 Fruit trees unit 6

Date of valuation and necessary data collection Property valuation, that falls under these terms, was conducted by an expert appraiser of I category Nirenberg I. in periods from January 08

th to 11

th and from February 19

th to 22

nd of 2013, and with the

assistance of Project Management Consultant, local government officials, researchers at the institute of walnut and fruit crops of Jalal-Abad, specialists of the State Agency of Architecture, Construction and Housing and Communal Services, etc.

Type of defined cost (in accordance with the terms of reference)

1. Non fruit trees

The market value of wood, without the cost of its processing. Evaluation of trees was made on the basis of mass evaluation.

2. Fruit trees

The sum of seedling market value and seedling present value, of foregone earnings from the crop sales.

Standard procedural framework assessment basis

While carrying out this assessment, Appraisers were guided by the requirements of the following documents:

Assessment Standards that are compulsory to be applied by entities of valuation activities in the Kyrgyz Republic, approved by the Governmental Decree on 03.04.2006 #217.

Temporary Rules of appraiser’s activities and assessment orРanizations in tСe KyrРyz Republic, approved by the Government of the Kyrgyz Republic on August 21, 2003 # 537.

International Valuation Standar

44236-013: emergency assistance for recovery and ... · and as supported by legal opinion from...

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