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Resettlement Plan September 2017

AZE: Power Distribution Enhancement Investment Program, Tranche 1 Prepared by OJSC Azerishiq for the Asian Development Bank.

Land Acquisition and Resettlement Plan Zardab (rayon) sub-project,

Document Stage: Final

Project Number: L3047 AZE

Date: 20 September 2017

Azerbaijan: Power Distribution Enhancement Investment Program Tranche 1 (L3047)

Prepared by OJSC Azerishiq for the Asian Development Bank

The Land Acquisition and Resettlement Plan (LARP) is a document of the borrower. The views expressed herein do not necessarily represent thosDirectors, Management, or staff, and may be preliminary innature.

Table of Contents

EXECUTIVE SUMMARY ............................................................................................................ 5

CHAPTER 1: INTRODUCTION .................................................................................................. 7

1.1 Project Description ................................................................................................................ 7

1.2 Sub-project activities ............................................................................................................. 8

1.3 Objective of the Land Acquisition and Resettlement Plan (LARP) and Methodology ............. 9

CHAPTER 2: SOCIOECONOMIC BACKGROUND OF THE PROJECT AREA ....................... 10

2.1 Socioeconomic profile of the sub-project rayon (Zardab) .................................................... 10

2.2 Socioeconomic profile of Displaced Persons (DPs) ............................................................. 10

CHAPTER 3: IMPACT ASSESSMENT AND COMPENSATION .............................................. 11

3.1 Scope of LAR impacts ........................................................................................................ 11

3.2 Determination of Compensation Values .............................................................................. 12

CHAPTER 4: OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS ....................... 14

4.1 Legal and Policy Background .............................................................................................. 14

4.2 Compensation Eligibility and Entitlements for the Project .................................................... 21

CHAPTER 5: GRIEVANCE REDRESS MECHANISM ............................................................. 24

CHAPTER 6: PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ...................... 26

CHAPTER 7: RESETTLEMENT BUDGET ............................................................................... 26

CHAPTER 8: INSTITUTIONAL ARRANGEMENTS ................................................................. 27

CHAPTER 9: IMPLEMENTATION SCHEDULE ....................................................................... 28

CHAPTER 10: MONITORING AND REPORTING .................................................................... 29

Land Acquisition and Resettlement Plan for Zardab-Ujar 35 kV line

ACCRONYMS AND ABBREVIATIONS

ADB - Asian Development Bank

BPL - Below Poverty Line

DP - Displaced Person

DDR - Due Diligence Report

DMS - Detailed Measurement Survey

GRM - Grievance Redress Mechanism

ha - hectare

IDPs - Internally Displaced Persons

IPSA - Initial Poverty and Social Assessment

IR - Involuntary Resettlement

JSC - Joint Stock Company

km Kilometer

LAR - Land Acquisition and Resettlement

LARP - Land Acquisition and Resettlement Plan

MFF - Multitranche Financing Facility

MOF - Ministry of Finance

PIU - Project Implementation Unit

PMC - Project Management Consultant

REP - Rayon Executive Power

RESSD - Regional Energy Supply and Sales Department

ROW - Right of Way

SCPI - State Committee on Property Issues

SPS 2009 - Safeguard Policy Statement 2009

NOTES

(i) The fiscal year (FY) of the Government of Azerbaijan ends on 31 December. (ii) In this report, "$" refers to US dollars.

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DEFINITION OF TERMS Affected Household: All persons residing under one roof and operating as a single economic unit, who are adversely affected by the Project or any of its components. It may consist of a single nuclear family or an extended family group. Compensation: Payment in cash or in kind of the replacement cost of the acquired assets. Displaced Person (DP): Any person who experience full or partial, permanent or temporary physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from involuntary acquisition of land, or involuntary restriction on land use or access to legally designated parks and protected areas. Disabled Person (DP): a person or people (group of individuals) with an impairment or health condition who encounters disability or is perceived to be disabled. Entitlement: Range of measures comprising compensation, income restoration, transitional assistance, income substitution, and relocation which are due to displaced persons (DPs), depending on the nature of their losses, to restore their economic and social base. Cut-off-date: The date for eligibility for resettlement assistance. For this sub-project the final date of the impact assessment will be considered as the cut-off date. Land Acquisition: The process whereby a government agency compulsorily alienate all or part of the land and other assets a person owns or possesses and transfer the ownership and possession to the government agency for state needs subject to provision of compensation at replacement cost. Rehabilitation: Compensatory measures provided under the Land Acquisition and Resettlement Plan other than payment of the replacement cost of acquired assets. Relocation: The physical relocation of a DP from her/his pre-Project place of residence. Replacement Value: The amount required by the DP to replace/reconstruct the assets acquired or damaged by the project calculated based the following elements: fair market value, transaction costs, interest accrued, transitional and restoration costs and other applicable payments. Resettlement: All measures taken to mitigate any and all adverse impacts of the Program on

rehabilitation. Below Poverty Line (BPL) Households: Households whose monthly income is less than the official designated poverty line at the time of the census as determined by the Government of Azerbaijan based on the household budget surveys conducted by the State Statistical Committee.

Vulnerable Households: Households headed by women, those are below the poverty line, disabled and Internally Displaced Persons (IDPs).

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This Land Acquisition and Resettlement Plan (LARP) was prepared in accordance with the

regulations on land acquisition and resettlement (LAR) in Azerbaijan. It outlines impacts, mitigation measures, cost estimates, and the implementation schedule to compensate the impacts caused by the Zardab Sub-Project under the Power Distribution Enhancement Investment Program Tranche 1 (L3407-AZE). Involuntary Resettlement (IR) category of the tranche 1 was set "C" as no LAR impacts were anticipated as per DDR prepared in July 2015. However, in June 2017 Tranche 1 of PDEIP MFF was re-categorized from "C" to "B" for involuntary resettlement due to LAR impacts associated with the changes in project scope. Based on the request from ADB an impact assessment was carried out by the Project Management Consultant (PMC) and the Project Implementation Unit (PIU) in assistance with contractors at all project sites. As s result, it was identified that the only upcoming impacts will be in Zardab-Ujar subproject, while past impact occurred only in Delimemmedli town which experienced acquisition of 0.36ha land plot from private person. Consequently, ADB agreed with Azerishig to prepare Land Acquisition and Resettlement Plan (LARP) for the upcoming impacts in Zardab and Corrective Action Plan (CAP) for Delimemmedli town. It was also agreed that Azerishig shall prepare Due Diligence Report (DDR) for all other sub-projects to confirm that there hasn't been and impacts and the remaining works will not have impacts on private assets and people's livelihoods. Therefore, this sub-project is the only project component having LAR impacts within the Tranche 1. The sub-project (as well as the entire Tranche) affects 7 households (HHs) having 30 family members. Azerishig will prepare and submit to ADB Due Diligence Reports (DDRs) for all other sub-projects and components of the Project. The subproject involves construction of 35/10/0.4 kv power transmission lines that has very few impacts limited to permanent acquisition of few square meters of agricultural lands to erect towers, and impacts on crops during stringing works. The subproject has been assessed by the team of social safeguard specialists from the Project Implementation Unit (PIU) of Azerishig and the Project Management Consultant (PMC). This LARP is based on the final detailed design of the subproject. Azerishig JSC, the Executing Agency, has overall responsibility for the Project, including the preparation, implementation and financing of all LAR tasks and interagency coordination. Azerishig will exercise its functions through the Project Implementation Unit (PIU), which handles day-to-day project activities. LAR tasks will be managed by the Investment Department of Azerishig in assistance with the PIU.

The subproject will have minor unavoidable impacts as the following: - Loss of 891m2 agricultural land in Garabork village of Ujar rayon; - Loss of crops: 205m2 wheat, 660m2 clover, 21m2 cotton in Garabork village; - Loss of 6 mulberry saplings.

Compensation unit rate for land was determined by an independent valuator hired by Azerishig, whereas crop & tree compensations for various crop types were determined by the Project Implementation Unit (PIU) of Azerishig on the basis of income replacement. Calculated compensations will be paid directly to Displaced Persons (DPs) by Azerishig. Among the DPs there is no one who is experiencing major impacts, meaning non of DPs will be faced with physical relocation or will lose more than 10% of their productive land. In addition, according to the results of the socioeconomic investigation there is no vulnerable DPs.

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Grievance Redress Mechanism (GRM) established for the project will also be valid for this sub-project. Members of the GRM commission have been appointed and Grievance focal persons1 in Zardab sub-project has been assigned. Contractor maintain grievance logbook. All registered grievances and their respective solutions will be described in Semi-annual safeguard monitoring reports. The total cost of LARP is estimated at about 767AZN (451$). The details of resettlement impacts and cost are presented in Chapter 3 and 7.

1 Contractor's HSE specialist is the grievance focal person for construction/dismantling of 35kv towers/lines in Zardab

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1. Asian Development Bank (ADB) approved a $750 million Multitranche Financing Facility

(MFF) to upgrade ageing power distribution networks in Azerbaijan. The facility, which is

earmarked to be rolled out in 3 tranches of $250 million each, will rehabilitate distribution

network substations and lines, replace current low quality customer service lines and install

modern, tamper-proof smart meters across the country. The facility will also finance capacity

building and other support to improve the financial management and operational performance of

Azerishiq. MFF implementation period is for a maximum of 7 years from 2016 up to December

2022.

2. The first tranche (the Project) loan of $250 million was approved by ADB on 19 July

2016. The Loan Agreement between ADB and Azerishiq, and Guarantee Agreement between

ADB and the Government of Azerbaijan were signed on 22 July 2016. The loan became

effective on 2 September 2016 with physical completion date of 31 December 2018, and loan

closing date of 30 June 2019.

3. The project is being implemented in Baku Regional Energy Sale and Supply Department

(RESSD), Shimal Garb RESSD, Janub RESSD, Garb RESSD, Aran RESSD, Shimal RESSD

and Markazi-Aran RESSD. Districts (rayons) covered by the Project are Absheron, Siyazan,

Shamakhy, Oguz, Gakh, Ganja, Goranboy, Mingechevir, Zerdab, Saatli, Imishli, Neftchala,

Salyan, Hajigabul, Masalli, Lankaran,

4. Involuntary Resettlement (IR) category of the tranche 1 was set "C" as no LAR impacts

were anticipated as per DDR prepared in July 2015. However, in June 2017 Tranche 1 of

PDEIP MFF was re-categorized from "C" to "B" for involuntary resettlement due to LAR impacts

associated with the changes in project scope. Based on the request from ADB an impact

assessment was carried out by the Project Management Consultant (PMC) and the Project

Implementation Unit (PIU) in assistance with contractors at all project sites. In addition to

physical site visit checklist were circulated among contractors in all project areas to find out past

and future impacts. After examining and consolidating date for the whole tranche, it was

identified that the only upcoming impacts will be in construction of 35 kv transmission lines in

Zardab-Ujar subproject, while past impact occurred only in Delimemmedli town which

experienced acquisition of 0.36ha land plot from private person. An interview was conducted

with this Displaced Person (DP) and identified that he is vulnerable and needs to be provided

extra allowances and privileges. Consequently, ADB agreed with Azerishig to prepare Land

Acquisition and Resettlement Plan (LARP) for the upcoming impacts in Zardab and Corrective

Action Plan (CAP) for Delimemmedli town. It was also agreed that Azerishig shall prepare Due

Diligence Report (DDR) for all other sub-projects to confirm that there hasn't been and impacts

and the remaining works will not have impacts on private assets and people's livelihoods.

Therefore, this sub-project is the only project component having LAR impacts within the

Tranche 1. The sub-project (as well as the entire Tranche) affects 7 households (HHs) having

30 family members. Azerishig will prepare and submit to ADB Due Diligence Reports (DDRs) for

all other sub-projects and components of the Project.

5.

distribution networks. The Project outputs consist the following components: (i) rehabilitation

and augmentation of aging medium- and low-voltage distribution networks including

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approximately 4 units of 110 kV substations, 16 units of 35 kV substations, 1,157 units of 6-10

kV transformer stations; 54 km of 110 kV distribution lines, 124 km of 35 kV distribution lines,

and 1,237 km of 6-10 kV distribution lines; (ii) replacement of approximately 3,900 km of 0.4 kV

customer service lines with new self-supporting aerial bundled cables, including installation of

approximately 108,409 smart digital electric meters. The existing 0.4 kV bare overhead

conductors will be completely replaced; and (iii) support for institutional strengthening of

Azerishiq including technical, financial and administrative support to the PMU, and improvement

6. This Land Acquisition and Resettlement Plan (LARP) is prepared for Zardab district of

Aran RESSD. Sub-project works for Zardab rayon (district) includes the following:

1- -

30000m;

2- Construction of 10 kv overhead lines - 123 km;

3- Construction of 0.4 kv overhead lines - 275 km

4- Dismantling of old towers (35 kv, 10 kv, 0.4 kv) and lines.

7. The works for the rehabilitation of 35/10/0.4 kV Distribution Overhead Lines are being

conducted, as much as possible, on the right of way of the existing roads, the same foot prints

or near the old foot prints of the lines reserved and/or owned by municipality or the local

government. However, there are minor unavoidable impacts related to construction of 35 kv

overhead transmission lines.

8. Location of the sub-project district is shown on the following map:

9. Part of construction works have been completed by August 2017. However, some works

have been postponed due to permanent and temporary LAR impacts. The following table reflect

the progress of works:

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Table 1: Progress of construction as of 25 August 2017:

No Work item Details of works Completed works

Planned works

Contractor

1 Construction of 35 kv overhead transmission lines

- 157 towers -Stringing of 30 km double circuit lines

141 towers 16 towers Retro Holding

1b Dismantling of 35 kv towers

108 towers

0 towers 108 towers Retro Holding

2 10 kv overhead transmission lines

- 2800 towers -Stringing works-123 km

- 1492 towers - 63 km lines

- 1308 towers - 63.4 km

ElektrikGu-rashdirma

2b Dismantling of 10kv lines

- 2377 concrete towers 0 - 2377 towers ElektrikGu-rashdirma

3 0.4 kv overhead transmission lines

- 9700 towers to be erected with 275 km length



Universal Elektroservis

3b Dismantling of 0.4kv lines

- 9828 steel towers to be dismantled

0 - 9828 towers Universal Elektroservis

10. This LARP is prepared in accordance with ADB Safeguard Policy Statement (SPS,

2009) and relevant laws and regulations on land acquisition of the Government of Azerbaijan. It

provides the principles and procedures for the compensation of possible loss of land, buildings,

crops, and livelihoods during the sub-project implementation.

11. Objective of this LARP is to ensure that displace persons2(DPs) as a result of the

Project attains equal or better livelihoods than without the project. All policies, proposals, and

compensation measures contained in this LARP are designed to meet this objective. Azerishig

as the Executing Agency of the Project, has an Investment and Development Department.

Under Investment and Development Department (IDD), Construction and Reconstruction

Division is responsible for land acquisition and compensation management.

12. This LARP outlines impacts, compensation policy, compensation and rehabilitation

provisions, cost estimates, and implementation schedule to compensate the impacts caused by

the construction of 35 kV overhead line from Ujar 110 kv substation to Zardab.

13. Data and information for this LARP was gathered from: a) LAR impact assessment in

order to screen and identify potential impacts of the 35 kV overhead line construction and cable

stringing and to determine its scope of impact. The LAR impact assessment has included

permanent impact over the land area used for the tower foundations / foot prints permanently as

2 Any person who experience full or partial, permanent or temporary physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from involuntary acquisition of land, or involuntary restriction on land use or access to legally designated parks and protected areas

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well as temporary impacts caused by the overhead line cable stringing3; b) key informants such

as related municipalities, representative office of the Rayon Executive Power (REP), Azerishig's

rayon office, Project Management Consultant (PMC), Project Implementation Unit (PIU) and the

contractors (c) Socioeconomic survey of affected households to further identify whether there is

a need for additional assistance such as severity and/ or vulnerability.

14. Zardab rayon was established on February 5, 1935 in 231 km distance from Baku. It is a

part of the Aran economic region. The rayon lies on a lowland area, in some areas below the

sea level. Its area is 860 km3 which constitutes about 1% of the country. There are 1 town, 1

settlement and 40 villages in the rayon.

15. The winters in Zardab are mild while the summers are hot with dry subtropic conditions.

The temperature reaches 41-

335 mm.

16. As per 2008 data, population is 57,700 people. Main population of the rayon is

Azerbaijanis. There is also Russian, Ukrainian, Lezgi and Tatar minority living in the rayon.

Approximately 20% of the people live in the town, 80% live in villages.

17. Out of the total area, productive lands is 329 m2, cattle breeding pastures is 224

m2, fruit gardens is 0.84 m2, saline lands is 183 m2. The leading spheres of the regional

economy are grain and cotton-growing.

18. The socio-economic survey, based on the questionnaire was conducted on 24-25

August 2017 in Garabork village of Ujar rayon. The survey covered all affected. The sub-project

will affect 7 households (HHs) composed of 30 family members. All of them are situated in

Garabork village. The average size of these households is 4.3 persons which is below than the

national level (4.72). All households reported Azeri as their ethnic origin. The survey revealed

that the affected population in the project-affected area has the following demographic

characteristics: 53 % of members of surveyed households are women while 47% are women.

All of the affected HHs are headed by men. Non of the DPs is vulnerable.

19. All the affected HHs have access to electricity, gas supply, while they reported that

source of drinking water is bottled water. Non of the households reported ownership of car. In

case of medical need, the households have reported that they apply to district hospital or local

ambulance while some indicated that they avail of the services of a private doctor or private

hospital from time to time. Children of the affected households generally go to nearby schools

for their secondary/general education. Almost 100% of the HHs own house and agricultural

land.

3Land plot permanently affected by tower foundation is vary depending on tower types. Land area to be affected temporarily by cable stringing is estimated by the total length of tower spans multiple by the width of tower foot print / foundation types (1.8 m for suspension tower; 4.2 m for tension tower; and 5.7 m for extended tension tower).

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20. Main source of income were reported as state pensions, wage from construction activity

and agriculture. One of the HHs has a member who is a public servant and the other one is

doing his own business which comprises of trade of daily use good.

21. Average monthly income was reported 661 AZN per month, whereas average monthly

expenditure according to the indicated figures is 291 AZN per month. It was revealed that HHs

food/beverage, with 90% of the total expenditure, places in the first rank among cost directions.

22. The HHs were asked to express their feeling regarding to condition of power supply.

Reliability of electricity meters, responses to customer complaints, repair time and overall

satisfaction with the service were the major questions. All (7) of the HHs rated "good" for all the

questions. The survey identified that people use electricity for lighting, cooling the house,

operating a refrigerator, running of small home appliances and etc.

23. Special care was given to reduce the impacts by undertaking a study to examine various

alignment options and selecting the one with the least impact for erecting 35kv towers. By this

approach most part of the construction works were carried out in state or vacant municipal

lands. However, still a few unavoidable impacts will be faced. Project Implementation Unit (PIU)

together with Project Management Consultant (PMC) carried out impact assessment for Zardab

sub-project between 20-25 August in order to identify project's impact on private assets and

livelihoods. Results of the survey is explained in the below 3.1.1-3.1.3 section in detail:

3.1.1 LAR impacts under construction works

24. Construction works with LAR impacts include 35 kv power distribution lines for 30 km

starting from Ujar town of Ujar rayon and ends at Zardab town of Zardab rayon. Erecting of 35kv

towers and related stringing works will have some impact on private agricultural lands within Ujar

rayon. According to the final design there will be 157 towers (35kv) in total. Out of them 141

towers have already been erected4. Sixteen (16) new towers with different footprint dimensions

will be erected after the implementation of this LARP. Six (6) of them will be erected on state

lands within the ROW of the local road, while 10 towers will be erected on private lands. Eight of

them will be on agricultural lands, while two of them will be located on residential land plots.

Owners of these two residential plots have already donated required area (each of them 10m2)

for project purposes without any compensation. These persons were consulted and aware of

their entitlements before they agreed to voluntarily donate their land, with the reason that amount

of compensation being too small to invest time and effort. Land donation forms signed by two

persons are attached in the Annex 7.

25. Impact assessment for remaining 8 towers have been conducted. It was revealed that, in

total there are 7 affected HHs with 30 family members. Details of the impacts are described in

the below table:

4 Result of impact assessment for those towers were identified separately and will be include in the DDR/CAP for this

subproject

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Table 2: Affected land and cultivated crops

Land classification Unit Total affected area Land use

Agricultural land m2 205 Wheat

Agricultural land m2 660 Clover

Agricultural land m2 21 Cotton

Agricultural land m2 5 Mulberry

Source: PIU, PMC Impact assessment, August, 2017

26. In total 891 m2 agricultural land owned by 7 HHs will be acquired for erecting 35v towers.

Affected cultivations on these lands are clover, wheat, cotton and mulberry sapling. Six (6)

mulberry sapling will be affected under one tower. These sapling are only 1-2 years old.

27. Construction of 10 kv and 0.4kv towers and lines don't have any impact on private assets.

Thus, they are placed along the village road and streets.

3.1.2 LAR impacts under dismantling works

28. The sub-project involves dismantling of old tower. In total, there are 108 towers with 35kv,

2377 towers with 10kv and 9828 towers with 0.4kv to be dismantled. The impact assessment

survey which were conducted through field observations and checklists revealed that dismantling

works regardless of its voltage will not have any LAR impacts. The Due Diligence Report will

confirm that there will be no impacts for dismantling works. However, all the contractors were

officially informed5 (see Annex 2 for the official letter) to be responsible for dismantling works

including the damages arisen from these works. Thus, if temporary damage cannot be avoided

and private property will be affected, then Contractors are contractually obliged to restore the

damaged structures to its original condition and to the satisfaction of the people. Moreover, the

households, whose fences/sheds/trees had to be temporarily removed/damaged during the

dismantling works will be described in the Compliance Report with clarifications of actions taken

to restore/rehabilitate them.

3.1.3 Temporary Impacts

29. Mitigating measures for these impacts will be addressed by the Contractors which were

incorporated in their contract. Effects of these impacts on income and quality of life of the

affected person or households will be experienced and summary of the situation should be

reflected in the semi-annual safeguard monitoring reports. Contractors are obliged to negotiate

and secure a prior consent of households to access the old poles and towers for dismantling

and removal purposes.

30. The unit compensation values for private lands and crops are determined based on the

following approaches:

5 The official letter dated 17 August 2017 that was signed by the head of Investment and Development Department of

Azersihig and then was sent to all contractors to be extra careful in dismantling works and in case of any impacts on any assets Contractors are responsible to reinstall, recover, compensate and repair of those damages.

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- Determination of the value of private agriculture land is based on current market price free of

taxes, registration costs and transfer charges. Assessment was made by an Independent

valuator (see the results of valuation in Annex 3). The criteria for determining current market

prices specified in the Law on Land Acquisition;

- Cash compensation equivalent to the gross income from the crop computed as the market

value of the total annual produce from affected land;

- Compensation for newly planted mulberry saplings was determined based non the market

price of these saplings:

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4.1.1 Azerbaijan Laws and Regulations on Land Acquisition and Resettlement

31. Legislation in Azerbaijan on land acquisition and resettlement consists of the

Constitution of the Republic of Azerbaijan, Land Code, Civil Code, the Law on Land Acquisition

for State Needs, and other normative-legal acts and international contracts supported by the

Republic of Azerbaijan.

32. The Constitution:

also recognizes three type of property ownership in Azerbaijan - state, municipal and private

(Article 13). It guarantees that no one will be dispossessed of their property without their

consent or decision by the court of law and that alienation of private property for state needs will

be allowed only after payment of fair compensation to the owner (Article 29).

33. The Land Code: Article 101 states that, all damages caused by acquisition of land

(compulsory purchase) or temporary detention, as well as limiting the rights of owners, users

and lessees or deterioration of the quality of soil should be fully paid to land owners or users. In

addition, costs derived from early termination of its obligations against third parties should also

be paid to the e affected person. Disputes relating to compensation, is being considered

affected person. Disputes relating to compensation, is being considered in a court in

accordance with the procedure established by the legislation. Articles 110 and 111 describe

willful occupation of land plots, implementation of illegal construction on land plots as violations

of the land legislation, and state that these are prohibited acts. Such land plots will be returned

to the relevant authorities without reimbursement of the expenses incurred during the illegal

utilization. Rehabilitation of the lands should also be carried out by the illegal occupants, at their

own expense.

34. The Civil Code: Articles 246, 247, 248 and 249 state that, provisions for acquisition of

lands for state needs. The Code requires the Decree on acquisition of lands for state needs

should be registered in state real estate registration. It also states that Executive Agency

should:

- send official notifications to all affected persons about land acquisition;

- pay full compensation to the affected persons within 90 days after the transaction

agreement made;

- assist relocated people; and

- pay compensation for affected assets on the market rates (in case it is not possible to

identify market rates, replacement prices are used).

35. The Civil Code states that affected person can select one or more type of

compensations. It also states that any rights to real estate must be registered with the State,

and that land may be acquired from owners for state needs as approved by the relevant courts.

36. The Flat Code: The Code states that acquisition of residential lands and residential

building on the land should be acquired by the provisions of the Land Acquisition Law.

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37. The Land Acquisition Law (LAL): The Law specifically addressed matters related to

involuntary resettlement (IR), including the process and institutional arrangement for land

acquisition, compensation and valuation, consultation requirements, entitlements of various

categories of affected persons and grievance mechanism. The law considers various categories

of affected persons, including those without state registration, renters, non- formal long-term

users of land, and persons who have no legal rights on the land that they live in. The law

entitles persons who have no legal rights on the land to resettlement assistance and

compensation for their non-land assets. It includes provision of compensation for loss of

business/income, transition allowance and transportation support, and compensation for loss

assets based on replacement cost. As per the LAL, in case of physical displacement, the

acquiring authority needs to send notification to DPs at least 60 days before resettlement.

38. Law on Land Lease: The law states that (Article 16) when the leased land is acquired

for state needs, another land plot having a same size and a same quality can be provided to

lessee. Losses incurred in this land shall be paid in accordance with the legislation.

39. Law on Valuation Activity: The law states that valuation of the real estate is mandatory

in the cases of land acquisition for state needs and the results of the valuation are to be

reflected in a valuation report.

40. Decree of the President on additional activities regarding to implementation of the

Law on "Acquisition of Lands for State Needs" of 15 February 2011: The Decree stipulates

additional provisions for the implementation of the Land Acquisition Law. It also assigns

government agencies for each case of relevant executive body.

41. Decree of the President No. 506-3 QD dated 7 December 2007: It requires the

provision of 20% additional compensation to the calculated market price of the acquired

property.

42. Cabinet of Ministers' Resolution No.45 (24 February 2012): It stipulates guidelines for

preparation of resettlement plan, as well as shows sample content of a resettlement plan and

resettlement guideline.

43. Cabinet of Ministers' Resolution No. 55 (21 April 2011): It reflects guidelines and

criteria for the selection of a planner (person or entity who prepares resettlement plan or

guideline).

44. Cabinet of Ministers' Decree No 103 dated 10 June 2005. It includes width of

protection corridor along electric lines, as well as shows restricted activities within the protection

corridor. The right of way and restricted activities within the area is summarized in the below

table.

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Table 3: RoW and restricted activities under the electricity transmission lines 6

Right of Way

Less than 1000 Volt More than 1000 Volt

Air lines 2 meters from each side lines <20 kV: 10 m from each side

35 kV: 15 m from each side 110 kV: 20 m from each side

150 kV: 25m from each side 220 kV: 25m from each side 330-500 kV: 30m from each side

Underground lines 1 meter from each side cable 1 meter from each side cable

Restricted Activity

Less than 1000 Volt

More than 1000 Volt

Air lines Construction, installation, explosion, irrigation activities, plant or cut trees, construction of sport grounds, collection of fuel, fertilizer and other materials.

Construction, installation, rehabilitation and destructing of buildings; mining activities; soil digging; explosion; amelioration activities; planting and cutting of trees and bushes; fencing; placing of piles for vineyards and gardens

Underground lines In case of underground cables, digging of ground with machinery for more than 0.3 m deep is prohibited

In case of underground cables, digging of ground with machinery for more than 0.3 m deep is prohibited. If the land is agricultural then till 0.45 m is allowed.

4.1.2 ADB Social Safeguard Policy Statement (SPS), 2009

45. The ADB Safeguard Policy Statement, 2009, applies to losses due both to physical and

economic displacement caused by involuntary acquisition of land and is based on the following

basic principles:

a. Compensation, Assistance and Benefits for Displaced Persons (DPs)

- Compensate/assist those with formal legal rights to the land lost and those who have

claims to lands that are recognized or recognizable under national laws.

Compensate DPs who have neither formal legal rights nor recognized or

recognizable claims to land for non-land assets.

- Compensate for affected lands, structures and other assets and put in place a

comprehensive income and livelihood rehabilitation program prior to displacement.

- Give preference to land-based resettlement strategies for displaced persons whose

livelihoods are land-based. Provide physically displaced persons with relocation

assistance, secured tenure to relocation land, better housing at resettlement sites

with comparable access to employment and production opportunities, and civic

infrastructure and community services.

6

16


- Promptly compensate economically displaced persons for the loss of income or

livelihood sources at full replacement cost, and provide other assistance (i.e. access

to credit, training, and employment opportunities) to help them improve, or at least

restore, their income-earning capacity, production levels, and standards of living to

pre-displacement levels.

- Provide DPs with opportunities to share project benefits in addition to compensation

and resettlement assistance.

b. Social Impact Assessment

- Conduct socioeconomic survey(s) and a census, with appropriate socioeconomic

baseline data to identify all persons who will be displaced by the project and to

- Identify individuals and groups who may be differentially or disproportionately

affected by the project because of their disadvantaged or vulnerable status as part of

the social impact assessment.

c. Resettlement Planning

- Prepare a land acquisition and resettlement plan based on the social impact

assessment and through meaningful consultation with DPs.

- Ensure that DPs are (i) informed about their options and entitlements pertaining to

compensation, relocation, and rehabilitation; (ii) consulted on resettlement options

and choices; and (iii) provided with resettlement alternatives.

- Ensure that both men and women receive adequate and appropriate compensation

for their lost property and resettlement assistance, if required, as well as assistance

to restore and improve their incomes and living standards.

- Analyze and summarize national laws and regulations pertaining to land acquisition,

compensation payment, and relocation of DPs; and compare with ADB SPS (2009)

principles and requirements. In case of gap, propose a suitable gap-filling strategy in

the land acquisition and resettlement plan in consultation with ADB.

- Consider all costs of compensation, relocation, and livelihood rehabilitation as

project costs.

- Include detailed measures for income restoration and livelihood improvement of

DPs. For vulnerable persons and households, provide extra assistance so that they

can improve their incomes in comparison with pre-project levels.

- Finalize the land acquisition and resettlement plan soon after the completion of

engineering design. Ensure that the final land acquisition and resettlement plan (i)

adequately addresses all involuntary resettlement issues pertaining to the project, (ii)

describes specific mitigation measures that will be taken to address the issues, and

(iii) ensures the availability of sufficient resources to address the issues satisfactorily.

- Consult DPs identified after the formulation of the final land acquisition and

resettlement plan and inform them of their entitlements and relocation options. A

17


supplementary LARP or a revised LARP should be submitted to ADB for review

before any contract is awarded.

- Use qualified and experienced experts to prepare the social impact assessment and

the land acquisition and resettlement plan.

d. Information Disclosure

-

resettlement framework endorsed by the borrower/client before project appraisal; (ii)

the final resettlement plan endorsed by the borrower/client; (iii) the new land

acquisition and resettlement plan or an updated land acquisition and resettlement

plan, and a corrective action plan prepared during project implementation, if any; and

(iv) resettlement monitoring reports.

- Provide relevant resettlement information in a timely manner, in an accessible place

and in a form and language(s) understandable to affected persons and other

stakeholders. For illiterate people, use other suitable communication methods.

e. Consultation and Participation

- Consult meaningfully DPs, their host communities, and civil society for every project

and subproject with involuntary resettlement impacts.

- Pay particular attention to the need of disadvantaged or vulnerable groups,

especially those below the poverty line, the landless, the elderly, female-headed

households, women and children, indigenous peoples, and those without legal rights

to land.

f. Grievance Redress Mechanism

- Establish a responsive, readily accessible and culturally appropriate mechanism to

particular attention to the impacts on vulnerable groups.

g. Monitoring and Reporting

- Monitor and measure the progress of implementation of the land acquisition and land

acquisition and resettlement plan. For projects/subprojects with significant LAR

impacts, retain qualified and experienced external experts to verify internal

resettlement monitoring information. If any significant involuntary resettlement issues

are identified, prepare a corrective action plan to address such issues. Do not

proceed with implementing the project until such planning documents are formulated,

disclosed and approved.

h. Unanticipated Impacts

- Conduct a social impact assessment, update the land acquisition and resettlement

plan or formulate a new land acquisition and resettlement plan if unanticipated

involuntary resettlement impacts are found during project implementation.

i. Special Considerations for Indigenous Peoples

18


- Avoid physical relocation of indigenous peoples that will result in adverse impacts on

their identity, culture, and customary livelihoods. If adverse impacts cannot be

avoided, formulate a combined indigenous peoples plan and resettlement to meet all

relevant requirements specified under ADB Safeguard Requirements 3: Indigenous

People.

j. Negotiated Settlement

- Encourage acquisition of land and other assets through a negotiated settlement

whenever possible.

- Subject to third-party validation negotiated settlements that would result in

expropriation to ensure that the compensation is based on fair price (replacement

cost) of land and/or other assets, and is based on meaningful consultation with DPs.

46. The SPS distinguishes three categories of displaced persons (DP), with variable

compensation entitlements: a) Legal DPs: DPs with formal legal rights to land lost in its entirety

or in part: b) Legalizable DPs: DPs without formal legal rights to land lost in its entirety or part

but who have claims to such lands that are recognized or are recognizable under national law;

c) Non-legal DPs: DPs who have neither formal legal rights nor recognized/recognizable claims

to land lost in its entirety or in part.

47. For categories (a) and (b) above, Azerishig is expected to provide compensation at full

replacement cost for lost land, structures, land improvements and relocation assistance. For

DPs in category (c) (informal settlers), Azerishig is expected to compensate all assets other

than land (i.e. buildings, trees, cops, businesses) at full replacement cost. The risk of

opportunistic encroachment for acquisition by the project is managed through a cut-off date.

48. Differences 4:

19


Table 4: Comparison of Azeri Laws and Regulations Relevant to Land Acquisition and

Issues ADB SPS (2009) and ADB

Azerbaijani law

Livelihood rehabilitation

ADB Policy requires rehabilitation/improvement of livelihood standards.

Notion of livelihood rehabilitation is also sanctioned by national law.

Compensation entitlements

A. Legal and legalizable DPs are to be compensated for lost land/other assets.

A. Legal and legalizable DPs are to be compensated for lost land/other assets.

B. Non-legal DPs are to be compensated for non-land assets lost.

B. Non-legal DPs receive resettlement allowances but are not compensated for real estate losses.

Compensation A. Loss of land. Replacement land as preferred option or cash compensation at full market rate for legal/legalizable DPs.

A. Loss of land. Cash compensation in cash at market rate +20% or replacement land for legal/legalizable DPs. An additional 10% premium for voluntary sale.

B. Replacement of leased land. Based on replacement of lost income through cash compensation of gross income x the remaining lease years or a replacement lease

B. Replacement of leased land. Based on cash or lease replacement of lost income for remaining lease years or through a replacement lease.

C. Loss of structures/ buildings. Cash compensation at replacement cost for lost item free of depreciation, transaction costs, other deductions

C. Loss of structures/ buildings. Cash compensation at replacement cost for lost item free of depreciation, transaction costs, other deductions +20%

D. Loss of indirectly affected items. Non-affected parts of an asset not usable after impact is to be compensated as well.

D. Loss of indirectly affected assets. The law prescribes their compensation if so requested by DPs.

E. Loss of business. Compensation up to 12 months based on tax declaration. In absence of tax declaration compensation based on mechanisms agreed with ADY (usually maximum non-taxable salary).

E. Loss of business. indirectly provided as compensation for lost income. Compensation methodology not specified.

F. Loss of trees. Irrespective of legal land occupancy status compensation at replacement cost based on tree type/ wood volume for wood trees and lost income (x tree type x 1-year income x production years lost) for productive trees.

F. Loss of trees. Indirectly provided as compensation for lost income. Compensation methodology not specified.

G. Loss of crops. Compensation of crop in cash at market price.

G. Loss of crops. Mandate by the law as well but application not clearly defined.

H. Loss of jobs. Indemnity ensuring DP rehabilitation. Arrangements to be agreed with EAs but usually based on salary x months of stoppage up to 6-12 months.

H. Loss of jobs. Compensated based on job income lost.

LAR planning, assessment and impacts valuation

Preparation of a comprehensive LARP for all projects disregarding number of DP. LARP includes: detailed impacts measurement survey (DMS)/AP census; Socio- economic survey; entitlements definition, income/livelihood provisions, AP consultation results; grievance procedures, execution arrangements; monitoring schemes; budget and implementation schedule.

Comprehensive surveys needed but DMS specified only for land and houses. Other impacts are assessed but DMS is not clearly required. A Resettlement Plan is carried out only if there are more than 200 DPs and includes only items related to relocation. Resettlement Guideline should be prepared in case of less than 200 DPs.

i. Measurement survey. Measures through a DMS all affected items.

i. Measurement survey. Land and buildings clearly assessed through a DMS in the field. Other impacts also assessed but survey methodology is unspecified.

ii. DP Census. Identifies all APs and establishes legitimate beneficiaries based on legal status.

ii. DPs Identification. Same.

20


Issues ADB SPS (2009) and ADB Azerbaijani law

iii. Socio-economic survey. Provides background information on D -economic features.

iii. Socio-economic survey. No comparable requirements exist.

iv. Valuation survey iv. Valuation survey a) Land: If land market exists based on a

survey of recent transactions; without land market based on land productivity income.

a) Land: valued at market rate based on a transactions survey. Valuation includes transaction costs/third party liabilities

b) Buildings/structures. Based on replacement cost of materials, labor, transport and special construction features without discounting depreciation, salvaged or transaction costs.

b) Buildings/structures. Same.

c) Trees/crops. Based on the methodology detailed in section 2.

c) Trees/crops. Valuation methodology not specified.

d) Business losses. Based on methodology detailed in section 2.

d) Business losses. Valuation methodology to be specified.

e) Job Loss. Based on methodology detailed in section 2

e) Job Loss. Valuation methodology to be specified.

Due-Diligence support mechanisms

A. Information disclosure. LAR- related documents to be timely disclosed in the DP language.

A. Information disclosure. LAR documents/ impact assessment protocols to be disclosed.

B. Public consultation. Meaningful public consultations to be held with the DPs. DPs to be informed on entitlements and options, as well as resettlement alternatives.

B. Public consultation. The legislation stipulates requirement for conducting Public Consultations by participation of DPs and other stakeholders.

C. Grievance procedure. A Grievance Redress Mechanism (GRM) is to be established for each project. I information on GRM to be communicated to the DPs

C. Grievance Procedures. Grievance Redress Commission is formed if the Project has significant LAR impacts, A Resettlement Commission should also be established composed of 3-20 DP representatives to facilitate grievance redress process and other bilateral relations.

D. Asset acquisition conditions. Property acquired only after full payment of compensation to DPs

D. Asset acquisition conditions. Property to be acquired only after full payment of compensation to DPs.

Assistance to vulnerable and severely affected AP

These DPs are to be identified and special assistance is provided to restore/ improve their pre-project level of livelihoods.

No special consideration is given to these DPs.

49.

only to the objective of compensation for affected families, but also to the objective of

rehabilitation. The major differences between Azeri Laws and ADB policy are compensating

non- titleholders for illegal structures and additional support for severity of impacts. Additionally,

Azerbaijan legislation requires some additional compensations/premiums to be added onto the

calculated market price to (i) encourage DPs to come into agreement; and (ii) to decrease

Project's negative impacts on their livelihood. These are 20% premium according to the

Presidential Decree, 10% bonus for negotiated transactions, 5-10% addition for physical

relocation.

50. The following categories of DPs will be entitled to compensation and/or rehabilitation

benefits:

(i) DPs losing land irrespective of legal status;

21


(ii) Tenants and sharecroppers whether registered or not;

(iii) Owners of buildings, crops, trees or other objects attached to the land; and

51. DPs and affected assets were identified through an impact assessment. The end date of

the impact assessment (25 August 2017) is the cut-off date for compensation eligibility. DPs

settling in affected areas or making asset transaction after this date are not eligible for

compensation. They, however, will be given sufficient advance notice to vacate and dismantle

the affected land/structures. Their dismantled structures will not be confiscated nor will they be

fined or sanctioned.

52. The compensation and rehabilitation entitlements for each affected item established for

the sub-project is detailed below in Table 5.

Table 5: Entitlement Matrix

Loss Impact Displaced People Entitlement

Permanent loss of agricultural land

All land losses Owner/ titleholder Cash compensation at replacement cost based on market rate free of taxes, registration costs and transfer charges.

Leaseholder (regardless if registered or not)

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 5 years).

Sharecroppers (regardless if registered or not)

Cash compensation equal to market value of the lost harvest share (1 x for temporary impact and 2 x for permanent impact)

Non-titled cultivators Rehabilitation allowance equal to 1 year's net income from the affected land (in addition to crop compensation) for land use loss.

Severe/significant impact (loss of >10% of productive land)

Owner/titleholder Severe impact allowance equal to the net income from annual crop production (inclusive of winter and summer crop and addition to standing crop compensation) and the waiving of taxes and fees

Sharecroppers (regardless if registered or not)

Severe impact allowance equal to the net income from their annual share of harvest lost (additional to standard crop compensation)

Non-titled cultivators and land users

Severe impact allowance equal to the net annual income from the affected land (additional to standard crop compensation)

Temporary loss of land

Disturbances during construction or installation of distribution lines

All DPs including non-titled users and squatters

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).

Residential/ Commercial Land

All land losses regardless of severity of impact

Titleholder

/ Non-titled users

Cash compensation for affected land at full replacement cost free of taxes, registration and transfer cost

Fences Full/partial loss of fences and auxiliary structures

Owners Rehabilitation/reinstallation of affected structures/utilities

22


Loss Impact Displaced People Entitlement

Standing crops

Removal of crops from pole footprint/foundation area

All DPs (including non-titled land users)

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 removed from safety corridor or pole footprint

All DPs (including non-titled land users)

Cash compensation shall reflect income replacement.

Fruit trees will be valued at market value

needed to grow a tree of the same productivity.

Vulnerability Assistance

Any impact affecting vulnerable people

Vulnerable DP (Households headed by women, those are below the poverty line, disabled, and Internally Displaced Persons (IDPs)

1 additional allowance equal to 3 months of minimum salary.

Priority for employment in project-related jobs, training opportunities, self-employment and wage-employment assistance

Community assets or resources

Loss or damage to public infrastructure or natural resources

Rayon Executive Power, municipalities

Rehabilitation/replacement of affected structures/utilities (i.e. mosques, footbridges, roads, schools, health centres, grazing lands etc.)

23


53. Azerishiq has setup relevant grievance handling mechanism and a Grievance Redress

Commission for the investment program to receive, manage and properly file complaints related

to project implementation. All complaints are firstly registered by Grievance Focal Persons

(GFP) designated by each contractor. Complainant can submit grievance in person, via phone

call, email, letter or fax to GFPs. GFPs then register complaints at grievance registration form.

The receipt of grievance lodged in person or via phone should be acknowledged immediately by

a paper issued by the GFP or other persons received the grievance. Regardless of nature, all

grievances are recorded in the registration form in detail. Upon receipt of grievances, GFPs sort

them into categories to define if the complaint is eligible for the project established by Grievance

Redress Mechanism. The grievance management process is described in the following table 6:

Table 6. Description of grievance management process

Step Description Activities Time frame

1 Project level Grievance Focal Person (GFP) receives the complaint and provide

acknowledgement letter to the complainer within 3 days after receipt

of the complaint. GFP maintains a database of grievances (based on

grievance registration form).

In the grievance is subject to land acquisition, valuation,

compensation, entitlements then GFP directly sends to the second

level (grievance commission). On the other hand, Contractor together

with the site inspector of PMC and local municipality try to solve the

complaint in 7 days.

If the grievance cannot be solved within 7 working days, then the

Contractor submits information to the Grievance Redress Commission

of Azerishiq, and provide information to the complainant regarding to

the grievance.

7 working days

2 Grievance

Redress

Commission

within the

Azerishiq

OJSC

working days. The Commission comprises of the following members:

Representative of the Technical Department of Azerishiq; Representative of the Investment and Development

Department of Azerishiq; Representative of the Department for Legal Issues; Representative of relevant Regional Electric Supply

Department of Azerishiq; Representative of relevant Rayon Electric Supply

Department.

expertise or confirmations from the state bodies, the resolution period

can be extended up to 30 calendar days. If the grievance cannot be

still resolved, or

solution, then:

In case of social safeguard issues: it is forwarded to the Level 3 for

resolution at the Stat Financial Control Agency under the Ministry of

Finance.

In case of environmental issues: the 3rd stage is omitted and the

case can be forwarded to the respective court (stage 4).

15 working days

24


3

State Financial

Control

Agency under

the Ministry of

Finance

The State Financial Control Agency under the Ministry of Finance

reviews the grievance and resolves it within 30 calendar days.

If the grievance is found invalid, a written response should be given to

the complaining party, explaining reasons for the rejection

30 working days

4

Court

decision, he/she can submit his/her complaint to the appropriate court

of law for resolution.

Depends on

nature of the

complaint

54. DPs have right to apply to an appropriate court anytime without passing through the

above mentioned steps.

55. Alternatively, DPs can also use Azerishig 186 Hotline Service to register their

complaints. This is a centralized online service, in which complainants and inquirers can dial

186 and register their complaints. Azerishig will ensure that complaints are responded to within

24 hours from registering the complaints.

56. Grievance monitoring will be carried out by the site supervisors of the PMC. This, PMC

will be informed by the Contractor in case of any grievances. Received grievances together with

their explanation and actions taken/to be taken will be consolidated for all districts and

. In addition, PIU's

safeguard specialist will have site visits on quarterly basis and will monitor GRM situation

including logbooks, feedbacks and appropriate measures. Moreover, PIU's safeguard specialist

is responsible for maintaining master database for all grievances at PIU and he will consolidate

and report to ADB the status of complaints across all districts through semi-annual safeguard

monitoring reports. Several attempts were made to enhance Contractors' and PMC consultants'

capacity in management of grievances. It includes on the job-coaching by the PIU and GRM

briefings. PIU will continue its efforts to strengthen capacity of national specialist (specifically,

Grievance Focal Persons) for proper management and documentation.

25


57. Representatives of PIU, PMC and Contractor conducted public consultation on 29

August 2017. All of the affected persons and other stakeholders participated in the consultation.

The consultation took place at Garabork village of Ujar rayon. PIU decided to conduct public

consultation at Garabork village, because all of the affected HHs are residents of this village.

58. Officials of village municipality were informed about the Project and their assistance

were solicited in the LARP preparation and implementation. Safeguard specialist of the PIU

gave general information on the sub-project and its potential impacts, as well as considered

mitigation measures. DPs were informed about their entitlements under the LARP and were

made aware of LARP implementation process. Afterwards, he asked people to give questions

and recommendations. He also showed the project design to the participants. People expressed

their support to the sub-project, but also emphasized that this 35kv line will feed Zardab town

and will not have specific positive impact to their village. Therefore, they requested Azerishig to

take into account this issue and try to improve electricity supply of the village.

Annex 5 includes list of participants and related photos.

59. The total implementation cost of the LARP for this sub-Project is estimated to 767 AZN

which is equivalent to USD 451 as shown in the following table. Azerishig will ensure that the

compensation funds for land acquisition and resettlement are approved by all sources and

allocated in time for implementation of this LARP.

60. The LARP budget also includes anticipated miscellaneous expenses for

administrative costs that will be incurred during the implementation of LARP. This expense has

been estimated and included in the budget as a single lump sum.

Table 7: Resettlement budget

No Budget item Magnitude of impact

Unit cost (AZN/ha)

Total Cost (in AZN)

Total Cost (in USD)

1 Compensation for land 891 m2 6000 535 315

2 Compensation for crops 205m2 wheat 655m2 clover 21m2 cotton

0.34 AZN/m2 0.11 AZN/m2 0.1 AZN/m2

96 56

3 Compensation for trees (mulberry sapling)

6 trees (sapling with 1-2 years

old)

6 36 21

Sub-total: 667 392

Miscellaneous costs 15% 100 59

GRAND TOTAL: 767 AZN 451 USD

61. A special cost item wasn't considered for monitoring activities, as this task is responsibility of PMC and was included in PMC's contract.

26


62. Implementation and monitoring of LAR activities, including grievance redress

management, consultation and compensations under the sub-project will be handled by the

following organizations/agencies:

A. Azerishig 63. Azerishig is responsible for supervising the construction activities undertaken by the

Contractors and shall also have oversight responsibility for the implementation of the

LARP&CAP. It shall also be and ensure that LAR related impacts (permanent and temporary)

are properly addressed as indicated in the LARP.

Investment and Development Department (IDD) 64. -project activities. It

ensures the acquisition of the project sites and takes decisions on compensation and

documentation. The IDD is responsible for ensuring that all DPs are duly compensated and that

mitigating measures are instituted by the Contractor as a result of temporary impacts.

Project Implementation Unit 65. For the implementation of the project, Azerishig, the EA for the project has

established a Project Implementation Unit (PIU) at headquarter level. The PIU is headed by a

Project Director (PD) and presently supported by few technical and administrative staff,

including safeguard specialist, who are responsible for implementation of the project. PIU will be

responsible for preparation of the LARP. It will also assist IDD of Azerishig in implementation of

the LARP, as well as will provide support to PMC in preparation of compliance and monitoring

reports. It has also a role in grievance redress management as explained in the GRM section.

B. Local Authorities

66. Local authorities involved in LARP preparation are the representative office of the

Rayon Executive Power and local municipalities. They will assist Azerishig in negotiating with

DPs and delivery of entitlements. The local municipality will cooperate with PMC in receiving,

registration and addressing complaints

C. Consultant and Contractors

Project Management Consultant (PMC)

67. The PMC is responsible for ensuring LAR activities are aligned with SPS (2009) and LARP

provisions. PMC will investigate grievances received and report the results in the monitoring reports. The

PMC will keep the log book of complaints received and attach it in the semi-annual monitoring report an

compliance report which will be submitted to the PIU and ADB.

Contractors

68. The Contractors selected by Azerishig to undertake the construction will be responsible for

mitigating temporary impacts resulting from the construction activities. Based on the LARP and the

Technical Design, will demarcate the acquired part of the land plots to clearly delineate it from the

remaining non affected parts. Contractor will be responsible for implementing measures for dismantling

works. Moreover, the Contractors play an important role in receiving, recording and

addressing/transferring complaints.

27


69. The following table contains LARP preparation and implementation actions and relevant

timeframe.

Table 8. LARP preparation finalization and implementation action plan

Actions and timeframe Responsible party September /

weeks

Oct

2 3 4 1 2 Submission of draft LARP to ADB Azerishig / PIU

Review and comments ADB

Finalization of the LARP Azerishig / PIU

Approval of LARP and its disclosure on ADB

website

ADB

Translation of LARP from ENG into AZE Azerishig / PIU

Allocation of LAR budget Azerishig

Payment of cash compensation to DPs Azerishig / IDD

Preparation of LARP completion / compliance

report

PMC / Consultant

ADB reviews LARP implementation report ADB

ADB issues No Objection to the start of civil

works

ADB

28


70. All LAR tasks under the Sub-project will be monitored by the PMC and reported to the PIU. The PIU prepares and submits to ADB semi-annual social safeguard reports for review and disclosure by ADB. The social safeguard monitoring reports will cover the progress/results on LARP implementation and safeguards activities including activities on past and future environmental and social impacts mitigation.

71. In addition, PMC will prepare and submit to ADB Compliance Report after the LARP and CAP for this sub-project fully implemented.

72. Indicators for internal monitoring will be those related to process and immediate outputs and results. Specific internal monitoring indicators are shown in Table 9.

Table 9: Internal Monitoring Indicators

Monitoring Indicators

Basis for Indicators

Budget and

Timeframe

Have resettlement activities been completed according to the agreed timeframe?

Have funds been disbursed to the affected families according to the LARP?

Has all land required been acquired in time for project implementation?

Delivery of

PAP

Entitlements

Have all DPs received complete payments on time?

Have all DPs losing temporary land been compensated?

Is restoration proceeding for social infrastructure and services?

Has the Contractor repaired/reinstalled affected fences and auxiliary structures/items?

Consultation,

Grievance

and Special

Issues

Have consultations taken place as scheduled?

Do DPs know their entitlements?

Has any DP used the grievance redress procedures? What were the outcomes?

Have conflicts been resolved?

29


Annex 1: Location of 35 kv towers/lines(30 km), Zardab sub-project

30


Annex 2: Official letter from Azerishig to Contractors for dismantling works

31


32


Annex 3: Summary of price assessment, Independent Valuation

Individual valuation company Value&Source LLC conducted assessment of market prices

in/near Garabork village of Ujar rayon. The assessment was carried out between 1-11

September. The valuator figured out the following market prices for different

categories/locations of lands:

Name Assignment Owner-ship

Unit Estimated unit rate (AZN)

Location Note

Empty land plot

Agriculture Private Ha 4000 Near-by Garabork village

Can change between -20% & +20% interval depending on area, configuration and location

Empty land plot

Agriculture Private Ha 8000 On the alignment, Near to Baku-Gazakh highway


Empty land plot

Residential Private Sot (100 m2)

1500 In Garabork village


Empty land plot

Residential Private Sot (100 m2)

2000 On the alignment, Near to Baku-Gazakh highway. South side of Ujar town


PIU of Azerishig analyzed the location and type of affected land plots. It was observed that the

affected land plots are agricultural lands and situated far (approximately 4 km) from the Baku-

Gazakh highway. Therefore the first unit price is suitable for LAR planning. However, in order to

encourage the affected persons and speed up the acquisition process Azerishig agreed to pay

compensation with higher unit prices. Thus, average of first two prices (4000 and 8000) will be

used during LAR planning. As a result, 6000 AZN/ha is used to pay land compensations in

Garabork village.

33


Annex 4: Photos from project sites

Photo 4.1: Tower in the cultivated area

Photo 4.2 Footprint of a tower to be placed in the village

34


Photo 4.3: Location of a tower on clover cultivated area

Photo 4.4: Location of a tower on mulberry sapling area

35


Annex 5: Minutes, photos and list of participants of the Public Consultation

AZE-3407-Power Distribution Enhancement Investment Program Name of the Project Component /Site:35 kV overhead line from 110 kV Ujar substaion, length 30 km (Zardab district) Type of Area (Urban/Rural): Rural Venue and date: Garabork village Executive Power Representation office, Ujar district, 29 August 2017 Time: 15.00 Attended by: 16 person Discussion issues: 1. Information disclosure about the proposed project to the community 2. To listen peoples' opinions and suggestions and answer generic questions

Participants of the meeting:

1. Yusif Gayibov PIU environmental and social expert, Azerishiq JSC 2. Nariman Imanov 3. Parviz Taghiyev Garabork village representative of Ujar district Executive Power Office 4. Javid Aliyev Chairman of Ujar district Garabork village municipality 5. Participants 16 members ( list of participants attached, Attachment 1).

16 participants attended the public consultation in Garabork village of Ujar district. The participants represented various stakeholder organizations including Executive power, municipal offices and residents. Mr. Parviz Taghiyev Garabork village representative of Ujar district Executive Power Office started the meeting with introduction of quests. Afterwards he talked about the purpose of public consultation. Mr. Nariman general information about the project. Mr. Yusif Gayib and LAR planning. Specifically, he gave information about impacts, entitlements and grievance management. Afterwards, he facilitated the consultation with questions listed below and took notes of the meeting. Table: Questions and Answers

Questions PSuggestions/

PIU's responses

What are the positive impacts do you expect as a result of implementation of new project?

impact since the new overhead line is going to Zardab district crossing through the village. However removal and dismantling of poles which make obstacle for access to the planting areas and erection of new poles in the locations considering the opinions of the villagers and employment of local people to the installation works can be treated as the indirect positive impact.

Contractors hire local people for construction works. Additionally, Azerishig is trying to erect new towers in locations where there are no impacts.

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What are the potential negative impacts as a result of the project?

implementation of the project, except some disturbance can happen during erection of poles and stringing of cable. Also movement of vehicles can cause some temporary damage to the planting areas, in such cases these damage shall be compensated by the Contractor.

All LAR impacts were investigated and appropriate mitigation measures are considered in the LARP. In addition, if any damage will be occurred because of the civil works then the Contractor will take responsibility in restoring/rehabilitating/compensating such damages.

What measures do you recommend do address the potential negative impacts?

While using the equipment in the site the Contractor shall use the existing access roads, shall consider the planting and harvest season and shall minimize the damage to the planting areas. Moreover if the Contractor damages the ploughed or sown areas, he must return them to its original condition.

All your suggestions are considered in the LARP document and Azerishig has already advised Contractors to take responsibility of rehabilitation works.

Which products are currently cultivated in sowing areas?

Mostly corn and clover are cultivated. One of the farms is intended for cocoon production and are engaged with planting

of the poles falls to this farming area. The owner of this farm Mr. Elman Hasanov stated that he created this farming by credit received from Entrepreneurship Assistance Fund and it is in the focus of the district management and requested to change the line route or to compensate the caused damage.

Our towers occupies only some square meters of land. In general one or two towers are located in it one land plot and it doesn't have much impact. During design stage all measures were considered to avoid impacts. As a result, out of 141 towers only 8 will be on private lands. These are unavoidable impacts. Azerishig will pay compensations for all unavoidable impacts.

Any suggestions and recommendations

The villagers complained that the current power supply was very poor in the village, even in a very weak windy weather the conductors are broken and the power supplied to the houses are much less than the norm, so they requested to improve the power supply of the village within the framework of the project.

This issue is one of the priorities of the government and the works for improvement of power supply throughout the whole country is ongoing and that Garabork village will not remain outside of these activities.

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Translation of the list of participants

NO Name, Surname Position District Signature

1 Javid Aliyev Head of municipality Ujar

2 Perviz Tagiyev Representative of EP of Ujar Ujar

3 Mansur Eshrefov Deputy Representative of EP Ujar

4 Maarif Khudiyev Land owner Ujar

5 Hasan Allahverdiyev Head of water association Ujar

6 Samir Asgerov Land owner Ujar

7 Elman Hasanov Land owner Ujar

8 Mezahir Orujov Land owner Ujar

9 Elyusif Allahverdiyev Land owner Ujar

10 Mushfig Orujov Land owner Ujar

11 Ali Agayev Land owner Ujar

12 Nadim Khalilov Land owner Ujar

13 Shukur Allahverdiyev Land owner Ujar

14 Rahib Ahmedov Land owner Ujar

15 Yusif Gayibov Safeguard spec, PIU, Azerishig Baku

16 Nariman Imanov Retro Holding / Site manager Ujar

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Photos from the Public consultation held on 29 August 2017 in Garabork village Ujar

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Annex 7: Approved land donation forms from Garabork village (attached in pdf forms)

DP No 1: Alibaba Asgerov

DP No 2: Muzaffar Huseynov

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Muzaffar Huseynov's household

Place of 35 kV tower

Survey with Muzaffar Huseynov

resettlement plan - asian development bankassistance, income substitution, and relocation which are...

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