Armenia Water Supply and Sanitation Sector Project

RESETTLEMENT FRAMEWORK

State Committee for Water Systems under the Republic of Armenia Ministry of Territorial Administration

Revised: 22 August 2007

FRAMEWORK ABBREVIATIONS

ADB – Asian Development Bank AP – affected person(s) DMS – detailed measurement survey CA – Coordinating Agency the Government – Government of the Republic of Armenia HH – Household IOL – Inventory of Losses LAR – Land Acquisition and Resettlement MA – Managing Agency m – meters M&E – Monitor and Evaluation the Project – Municipal Services and Infrastructure Development Project PMU – Project Management Unit PCU – Project Coordination Unit PIB – public information booklet RA – Republic of Armenia RF – Resettlement Framework ROW – Right-of-Way RP – Resettlement Plan SCWS – State Committee on Water Systems SES – Socioeconomic Survey sqm – square meters TABLE OF CONTENTS ABBREVIATIONS PROJECT MAP I...... DEFINITION OF TERMS 1 II...... INTRODUCTION 3 III...... LEGAL FRAMEWORK AND ENTITLEMENTS 3 A. RA Laws and Regulations 4 B. ADB Policy on Involuntary Resettlement 4 C. Comparison of Armenian Resettlement Laws with ADB Policy 5 D. Remedial Measures to Bridge the Gap 6 IV...... PROJECT PROVISIONS AND PRINCIPLES 6 E. Subproject Screening Criteria and Procedures 6 F. Compensation Entitlements for the Project 7 G. Eligibility 9 V...... IMPLEMENTATION ARRANGEMENTS 10 H. Assessment of Compensation Unit Values 10 I. Provision of Land for Land Compensation 10 J. Gender Impact and Mitigation Measures 10 K. Public Participation and Documents Disclosure 11 L. Institutional Arrangements 11 M. Institutional Assessment 12 N. Complaints and Grievances 12 O. Monitoring and Evaluation 13 P. Resettlement Budget and Financing 14 Q. RP Implementation Process 14

TABLES & FIGURES Table 1: Key Project Principles Adopted for the Project 4 Table 2: Comparison of Resettlement Laws and Regulations, RA vs. ADB 5 Table 3: Compensation Matrix 7 Table 4: Stakeholder’s Consultation Record 10 Table 5: Grievance Resolution Process 12 Figure 1: LAR Flowchart 11

APPENDICES Appendix A: Resettlement Screening and Approval Process Appendix B: Subproject Screening Form Appendix C: Outline for Standard Resettlement Plan Appendix D: Outline for Short Resettlement Plan Appendix E: Sample Form for Entitlements for Affected Persons Appendix F: Resettlement Due Diligence Report

iii Project Map Formatted: Font: (Default) Arial, 14 pt, Bold

Yerevan Lake Sevan Abovyan Surenavan Armash Lanjar and Paruyr Sevak Eraskh

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Rivers Formatted: Font: 14 pt

I. DEFINITION OF TERMS

1. Affected person (AP) is one who experiences such impacts. An affected person (AP) includes any people, households, firms, or private institutions who, on account of changes that result from the project will have their (i) standard of living adversely affected; (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence, or habitat adversely affected, with or without displacement.

2. Beneficiary Community - All persons and households situated within the government-owned or acquired property, who voluntarily seek to avail and be part of the Project and represented by a community association that is duly recognized by the community residents, accredited by the local government, and legally registered with the appropriate institutions.

3. Compensation means payment in cash or in kind to replace losses of land, housing, income and other assets caused by a project.

4. Eligibility cut-off date A population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cut-off date will be the date when the census for the short RP is completed.

10. Entitlement - Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base.

11. Host population - Community residing near the area where the Project beneficiaries propose to voluntarily resettle as part of the Project.

12. Involuntary resettlement addresses social and economic impacts that are permanent or temporary and are (i) caused by acquisition of land and other fixed assets, (ii) by change in the use of land, or (iii) restrictions imposed on land as a result of an ADB operation.

13. Land Acquisition means the process whereby a land user is compelled by a public agency to alienate all or part of the land s/he owns or possesses, to the ownership and possession of that agency, for public purpose in return for fair compensation.

14. Replacement Cost means the cost of replacing lost assets and incomes, including cost of transactions. With land, this means the cost of buying a replacement land near the lost land with equal productive potential and same or better legal status, including transaction costs. With structures, the replacement cost is the current fair market price of building materials and required labour cost without depreciation or deductions for salvaged building material or other transaction cost. Market prices will be used for crops, trees and other commodities.

In RA the replacement costs are typically set by cadastre agencies contracted by the government to give the fair market values for land.

15. Severe impacts - As detailed in the ADB Operations Manual (OM) Section F2/OP & BP (2006), the content and complexity of a RP varies depending on the degree of severity caused by a subproject. When impacts are considered severe [i.e., > 200 affected people (AP to be resettled or suffering >10% income losses], a full, standard RP will be prepared (Appendix C). When losses are not severe [<200 AP to be resettled or suffering <10% income losses], only a short RP will have to be prepared (Appendix D).

16. Vulnerable groups are households that will suffer more, economically and socially, from relocation and rehabilitation than the general population. These groups include: (i) female-headed households; (ii) landless households; (iii) disabled household heads and/or providers; (iv) households below the RA poverty line; and (iv) aged-heads of households with no household member active in the active labor force.

II. INTRODUCTION

1. This Resettlement Framework (RF) guides any unforeseen land acquisition and resettlement (LAR) planning during project implementation, including the preparation of an individual resettlement plan (RP) for each subproject. The analysis of subprojects thus far shows that there will be no land acquisition or resettlement issues within the 2 subproject regions because works will be on property owned by the Armenia Water and Sewerage Company, AWSC, on public, municipal land or within rights-of-way assigned to municipal infrastructure (See Due Diligence Appendix F).

2. The purpose of this RF is to ensure that in the event of any future resettlement issues, all affected people (APs) will be compensated at replacement cost for their losses, and provided with rehabilitation measures so they are at least as well off as they would have been in the absence of the Project. The RF identifies the legal and policy frameworks of the Armenian Government and appropriate ADB guidelines; sets out procedures and policies on LAR to guide impacts during project design and implementation; and outlines steps necessary for preparing a resettlement plan (Appendices C and D).

3. The policy framework and entitlements have been built upon the laws of the Government of the Republic of Armenia, principally the Constitution (1995), the Land Code (2001), and the Civil Code (1998), in addition to the Asian Development Bank (ADB) Policy on Involuntary Resettlement (1995). This Project will be bound by the principles and conditions stated in this RF. The provisions and principles adopted in the RF and RPs will supersede the provisions of relevant decrees currently in force in the RA wherever a gap exists between RA regulations and ADB policy.

4. The objective of the proposed Project is to establish safe, reliable piped water supply for 228 communities and 15 towns throughout Armenia. The Project will benefit 604,176 residents by 2013 including many communities which have 75-90 percent of residents below the poverty line and no current water supply1. The Project will also strengthen water sector regulation, policy development and sector sustainability by providing support to the regulating authority and promoting policy, and institutional reform. It has a strong focus on community participation that complements the Project’s objectives of reducing poverty, and promoting health and hygiene within communities. As a sector project, the design of the Project encourages a demand-based approach.

5. Based on the subproject analysis, the Project may entail temporary impacts during construction when the water supply pipe network is installed. There may be some potential land acquisition for new pipeline routes, however, Project engineers have the goal to avoid private land and any design which hinders the livelihood of people at all costs. (No proposed designs thus far have crossed public land or affected the livelihoods of people.) The scope of each subproject is decided by the priorities set forth by stakeholders in participating subproject towns. In case of any change to the list of candidate subproject towns or changes in scope or alignment, this RF will continue to apply.

III. LEGAL FRAMEWORK AND ENTITLEMENTS

6. There are general laws and legislation in Armenia that consider matters of IR. The policy framework and entitlements for the Project have been built upon these laws and ADB

1 The poverty percentages were approximated based on data collected during community consultations. As a sector project, these percentages are variable. 3

policy. These regulations include the Constitution (1995), the Land Code (2001), and the Civil Code (1998).

A. RA Laws and Regulations

7. The Republic of Armenia has resettlement regulations in place. The notion of giving up land for the benefit of community infrastructure improvements is well established. Resettlement issues are discussed in the Land Code (2001) and the Civil Code (1998). The Constitution (1995), Article 8, more generally acknowledges that the right to property is recognized and protected in the Republic of Armenia.

8. Article 50 of the Land Code specifies that all rights of land ownership are limited by Servitude. Servitude, according to Armenian definitions, is the right of the Government to acquire land for the use of public projects that benefit the community including for the passing of water mains or the use of water sources. Also according to the Land Code, the landowner has a right to ask for compensation and a right to claim in Court compensation adjustments or the right to stop the Servitude.

9. Articles 210 through 221 of the Civil Code are more specific with their legislation on resettlement and discuss compensation rights for titled landowners and owners of buildings/structures. The Code defines servitude as a grant of the right of limited use of a parcel. It also discusses the method to conduct voluntary and involuntary resettlement, including bringing resettlement issues to Court and what parties can decide the payment. It describes that buyout of a parcel can only be made by a state authority or commune. Also, notice of buyout must be given to the landowner in advance. Furthermore, in terms of the price of the buyout, the market value of the land parcel and of the immovable property on the parcel must be considered as well as the losses accrued by the owner due to the taking of the land parcel.

10. Cadastre agencies, a branch of the RA Government, set the initial price of private land. The cadastre agencies do not give more value to the land with any subsequent improvements to the land. However, under the Civil Code, compensation rates are set by market price values which can account for land improvements (such as the existing of productive agriculture). Specific compensation information is not provided by any body of Armenian legislation. However, in the event of resettlement, the Government, water management company or commune must negotiate personally with the landowner. If they can not come to a common agreement, the resettlement issues are brought to the Court system.

B. ADB Policy on Involuntary Resettlement

11. ADB’s Policy on Involuntary Resettlement (1995) is based on the following principles listed in Table 1. The provisions and principles adopted in the RF and RPs will supersede the provisions of relevant decrees currently in force in RA wherever a gap exists between RA and ADB policy.

Table 1: Key Project Principles Adopted for the Project No. Principle 1 Involuntary resettlement and loss of land, structures and other assets and incomes shall be avoided and minimized by exploring all viable options. 2 APs are defined as those who may stand to lose, as a consequence of the Project, all or part of physical and nonphysical assets, including homes, homesteads, productive lands, commercial properties, tenancy, income-earning opportunities, social and cultural activities and relationships, and other losses

No. Principle that may be identified during the process of resettlement planning. 3 APs, identified in the project-affected area at the date of the updated inventory of losses (IOL), shall be provided with compensation for their lost assets, incomes and businesses at full replacement cost, free from taxes, registration, and land transfer. APs will be provided with rehabilitation measures sufficient to assist them improve or at least maintain their pre-project social and economic circumstances. 4 All APs will be equally eligible for compensation and rehabilitation assistance in accordance with individual RPs, irrespective of tenure status, social or economic standing, and any such factors that may discriminate against achieving the objectives outlined above. Those who encroach on the proposed area after the cutoff date (or completion of IOLs) will not be entitled to compensation or rehabilitation, unless there has been a change in subproject scope. 5 Temporarily affected land and communal infrastructure will be restored to pre-project conditions. 6 The Project will assist APs identify and prepare leveled residential land (for self-relocation or group relocation), and sites for affected livestock. Special assistance will be provided for vulnerable households; 7 APs shall be hired to partake in construction activities that have the potential of affecting their structure or land. This will help to minimize the level of disruption and damage caused to their property. 8 Voluntary contribution of affected land without compensation shall be done in accordance with traditional practices. Such donations shall be acceptable if (i) done in full consultation with landowners and any non- titled affected people on site selection; (ii) APs do not experience major impacts; (iii) confirmed through written consent and verified by an independent third party; and (iv) adequate grievance redress mechanisms are in place. 9 Adequate budgetary support will be fully committed and be made available to cover the costs of land acquisition and resettlement and rehabilitation within the agreed implementation period. 10 Payment of compensation or replacement of affected assets and any resettlement to new locations must be completed before ADB can issue a no objection to civil works contract award for the subproject. Rehabilitation measures must also be in place, but not necessarily completed, as these may be ongoing activities. 11 Compensation and rehabilitation assistance for socially disadvantaged such as households headed by women, the disabled and elderly will be carried out with respect for their cultural values and specific needs. 12 The executing agency will see that institutional arrangements are in place to ensure effective and timely design, planning, consultation and implementation of the land acquisition, compensation, resettlement and rehabilitation program. 13 There will be effective mechanisms for hearing and resolving grievances by APs during implementation of the RPs. 14 Preparation of RPs (as part of subproject preparation) and their implementation shall be carried out with participation and consultation of affected people. 15 Details of the RPs will be distributed to the APs and placed in project and commune offices for the reference of affected people as well any interested groups. 16 Appropriate reporting (including auditing and redress functions), monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system.

C. Comparison of Armenian Resettlement Laws with ADB Policy

12. Differences between Armenian laws and regulations and ADB policy are outlined in Table 2 below.

Table 2: Comparison of Resettlement Laws and Regulations, RA vs. ADB Armenian Land Laws and ADB Involuntary Resettlement Policy ADB Regulation Regulations Land compensation only for titled Lack of title is not a bar to compensation OM F2/BP D(vii) landowners and/or rehabilitation. Non-titled landowners receive rehabilitation. Only registered houses/buildings are All affected houses/buildings are OM F2/OP C12 compensated for damages/demolition compensated for buildings caused by a project damages/demolition caused by a project Crop losses compensation provided Crop losses compensation provided to OM F2/OP C12 only to registered landowners. landowners and sharecrop/lease tenants whether registered or not Land valuation based on current Land valuation based on replacement value. OM F2/BP Footnote 6 5

Armenian Land Laws and ADB Involuntary Resettlement Policy ADB Regulation Regulations market value. and OM F2/OP C11 The decisions regarding land Information related to quantification and OM F2/OP F2a38 acquisition are discussed only costing of land, structures and other between the landowners and the Land assets, entitlements, and amounts of Acquisition Committee. compensation and financial assistance are to be disclosed to the affected persons prior to appraisal. No provision for income/livelihood The ADB policy requires rehabilitation for OM F2/OP A4 and rehabilitation measure, allowances for income/livelihood, for severe losses, and Footnote 6 severely affected APs and vulnerable for expenses incurred by the APs during groups, or resettlement expenses. the relocation process.

D. Remedial Measures to Bridge the Gap

13. In principle, Armenian laws and regulations relevant to LAR and ADB Policy adhere not only to the objective of compensation for affected families, but also to the objective of rehabilitation. However, Armenian laws are unclear on how rehabilitation is to be achieved and in practice the provision of rehabilitation is left to ad hoc arrangements taken by the local governments and the specific project proponents. To clarify these issues and reconcile eventual gaps between the Armenian laws and regulations and ADB Policy, this RF mandates compensation at replacement cost of all items, the rehabilitation of informal settlers, and the provision of subsidies or allowances for AFs that may be relocated, suffer business losses, or may be severely affected.

IV. PROJECT PROVISIONS AND PRINCIPLES

E. Subproject Screening Criteria and Procedures

14. Subproject screening is used to identify the types and nature of potential impacts related to the activities proposed under the Project, and to provide adequate measures to address these impacts which ensure that potential APs are: • Informed about their options and rights pertaining to resettlement; • Included in the consultation process and given the opportunity to participate in the selection of technically and economically feasible alternatives; and • Provided with prompt and effective compensation at full replacement cost for losses of land, assets and access to assets and livelihoods attributable to the subproject(s).

15. On the basis of the screening, the EA proposes the following screening procedure should be put in place: a) Assessment of alternative subproject designs to avoid and/or reduce displacement risks; b) Elaboration of an RP to address all resettlement risks depending on the severity of APs (See Appendices B and C); c) For projects not anticipated to result in displacement, and where loss of assets are anticipated to be negligible, performance of Due Diligence to show there will be no APs and requesting a waiver for drafting a RP will be necessary.

16. The screening process is described in Appendix A. It is based on the screening checklist Appendix B, which will be completed by the Project Management Unit, the Armenian Water and Sewage Company (AWSC). The screening form will then need to be reviewed and cleared by ADB. ADB will advise whether an additional option assessment should be carried to avoid or reduce the physical or economic displacement or whether the

argument of the subproject proposal is providing sufficient evidence for the decision proposed and confirm the best course of action.

F. Compensation Entitlements for the Project 17. LAR tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with both RA laws and regulation and ADB Policy. A summary entitlements matrix is included in Table 3 below. During compensation identification at subproject preparation, this entitlement matrix and description of compensation entitlements shall be revised and updated accordingly.

Table 3: Compensation Matrix Asset Specification Affected People Compensation Entitlements All land losses • Land for land compensation with plots of equal value and independently Farmer/Titleholder productivity to the plots lost; or; from impact severity • Cash compensation for affected land at replacement cost free of taxes, registration, and transfer. 1) • When >10% of an AP income or agricultural land is Permanent affected, AP will get an additional allowance for severe impact on impacts equal to the market value of a year’s gross yield of Arable Land the land lost (both winter and summer harvests) and the waiving of taxes and fees • Residual portions of plots affected by the required ROW which are reduced to less than 400m2 or rendered unusable by alterations in access, irrigation, or workability will be included in the affected land and compensated as above indicated. Leaseholder • Renewal of lease in other plots of equal value/productivity (registered or not) of plots lost, or Cash equivalent to market value of gross yield of affected land for the remaining lease years (up to a maximum of 10 years). Sharecroppers • Cash compensation equal to the market value of the lost (registered or not) harvest share once (temporary impact) or twice (permanent impact) Agricultural workers • Cash indemnity corresponding to their salary in cash and losing their contract kind for the remaining part of the agricultural year. Non-titled land • 1 rehabilitation allowance equal to market value of 1 net owners harvest (in addition to crop compensation) for land use loss. Additional Farmer/Titleholder • 1 severe impact allowance equal to market value of 1 net provisions for Leaseholder harvest of the affected land for 1 year (inclusive of winter severe impacts and summer crop and additional to standard crop (More than 10% compensation) of land loss) Sharecroppers • 1 severe impact allowance equal to market value of share (registered or not) of harvest lost (additional to standard crop compensation) Non-titled land • 1 severe impact allowance equal to market value of net owners harvest of the affected land for 1 year (additional to standard crop compensation) 2) All APs (including • Affected land & communal infrastructure will be restored Temporary non-titled land to pre-project conditions. Land owners) Acquisition • Rent shall be agreed between landowner and Contractor equal to the revenue lost based on market value (ex. compensation for harvests lost at average yield / hectare) • Cash compensation for assets lost (ex structures, trees) 3) Titleholder • Land for land compensation through provision of a plot Residential/ comparable in value/location to plot lost or Commercial Land • Cash compensation for affected land at full replacement cost free of taxes, registration, and transfer costs Renter/Leaseholder • 1-3 months allowance Non-titled land • Provision of a free or leased plot in a Government owners resettlement area or a self-relocation allowance. 4) Houses All relevant APs • Cash compensation at replacement rates for affected Buildings (with/without house or structure and other fixed assets free of salvageable and building registration) materials, depreciation and transaction costs. In case of Structures partial impacts full cash assistance to restore remaining structure. The cost of lost water and electricity connections will be included in the compensation. 5) Crops Crops affected All APs (including • Crop compensation in cash at full market rate for 1 year non-titled land owners gross harvest by default to be paid both to landowners and tenants based on their specific sharecropping agreements 6) Trees Trees affected All APs (including • Cash compensation shall reflect income replacement. non-titled land Fruit trees will be valued at gross market value of 1 yr 8

Asset Specification Affected People Compensation Entitlements owners) income X number of yrs needed to grow tree of same productivity. 7) Business Temporary or All APs (including • Business owner: (i) Cash compensation equal to one year Employment permanent loss non-titled land income, if loss is permanent; (ii) cash compensation for the of business or owners) period of business interruption, if loss is temporary. employment Compensations based on tax declaration or official minimum salary • Worker/employees: Indemnity a for lost wages for the period of business interruption up to a maximum of 3 months. 8) Loss of social All APs (including • Restoration of livelihoods must be to levels at least Livelihoods support non-titled land equivalent to those maintained at the time of dispossession, systems owners) displacement, or restricted access. • If replacements to losses are unavailable, strategies can include skill development, wage employment or self- employment including access to credit. Relocation Transport and All APs affected by • Provision of cash compensation to cover transport transitional relocation expenses and livelihood expenses for one month due to livelihood costs relocation House House renters who • Provision of a cash grant of 3 months’ rent at the Renters have leased house prevailing market rate in the area and will be assisted in identifying alternative accommodation Community • Rehabilitation/substitution of the affected assets structures/utilities (i.e. mosques, footbridges, roads, schools, health centers, etc..) to pre-project functions Vulnerable AP below poverty • Priority for employment in project-related jobs, training people line opportunities, self-employment and wage-employment livelihood assistance a. Indemnity: An expressed or implied contract to compensate an individual for loss or damage; for example, an insurance policy.

18. Voluntary Contributions - Where local communities or individuals elect to make voluntary contribution of affected land without compensation in accordance with traditional practices, this shall be acceptable only if the following safeguards are in place: (i) Full consultation with landowners and any non-titled affected people on site selection; (ii) Ensuring that voluntary donations do not severely affect the living standards of affected people, and are linked directly to benefits for the affected people, with community sanctioned measures to replace any losses that are agreed to through verbal and written record by affected people; (iii) Confirming any voluntary “donation” through written record and notarized such as through a designated non-government organization or legal authority (iv) Indicating the time period of effectiveness and the conditions of the servitude; (v) Attaching the location of the servitude to the contract; and (vi) Placing adequate grievance redress mechanisms.

G. Eligibility 19. APs entitled for compensation or at least rehabilitation provisions under the Project are: • All APs losing land either covered by legal title/traditional land rights or without legal status; • Tenants and sharecroppers whether registered or not; • Owners of buildings, crops, plants, or other objects attached to the land; and • APs losing business, income, and salaries. 20. Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day of the beginning of the AP Census and DMS. APs who settle in the affected areas after the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice, requested to vacate premises and dismantle affected structures prior to project 9

implementation. Their dismantled structures will not be confiscated and they will not pay any fine or suffer any sanction.

V. IMPLEMENTATION ARRANGEMENTS

H. Assessment of Compensation Unit Values 21. The methodology for assessing unit compensation values of different items is as follows: • Land will be valued at replacement rate based on a survey of land sales in the period immediately before the impact survey. No deductions for taxes or transaction costs will be applied. • Houses/buildings will be valued at replacement value based on cost of materials, type of construction, labor, transport and other construction costs. No deductions will be applied for depreciation, salvaged materials and transaction costs. • Annual crops will be valued at net market rates at the farm gate for the first year crop. In the eventuality that more than one-year compensation is due to the APs the crops after the first will be compensated at gross market value. • Fruit trees will be valued based on age category (a. seedling; b. not yet productive; c. productive). Productive trees will be valued at gross market value of 1 year income X the number of years needed to grow a new tree with the productive potential of the lost tree. 22. The unit compensation rates will be undertaken as above detailed by the Project Management Unit (PMU) and will be then verified and certified by the Project Coordination Unit, (PCU).

I. Provision of Land for Land Compensation 23. If “land for land” is the chosen land compensation option the RP will locate on map the relocation site / replacement plots and will identify the associated technical features (service roads, drainage, sanitation, water supply and electricity facilities to be provided) and relative site- preparation costs. The relocation will be carried out keeping in view the socio-economic profiles of both APs and host communities and by minimizing as much as possible the distance of the new plots from the old ones.

J. Gender Impact and Mitigation Measures 24. In general, about one half of the total affected population is composed by women. Women have important economic roles in project areas and engage in a very wide range of income making activities in the agricultural and marketing sector. The project will pay particular attention to ensure that women are the recipients of the compensation pertaining to their activities and to ensure that women who are de-facto household heads are clearly listed as beneficiaries of compensation and rehabilitation proceedings under the loan. In order to ensure the above the following actions will be considered:

• Include women in the impact enumerators. • Impact assessment of AFs/APs indicating the total number of families and people must be gender-disaggregated to pinpoint how many women are likely to be affected by the Project and establish their pre-Project conditions. • Women will be major participants in the consultation processes to determine and negotiate for compensation entitlements and implement the RP. • Special attention will be given to the impact of resettlement on women and other vulnerable groups during monitoring and evaluation of the RP. 10

• If asset replacement/relocation is needed, land/house titles will be in name of both spouses.

K. Public Participation and Documents Disclosure 25. Town and community heads will be informed about the Project, and their assistance will be solicited in the conduct of the inventory of affected assets, the Census of APs and the DMS. Also, prior to the finalization of the RP and its submission to the PCU, the APs will be thoroughly informed on the results of the Census and DMS, and their preferences on compensation or other resettlement assistance will be given due consideration. The processes and mechanisms ensuring the active involvement of APs and other stakeholders will be detailed in the RPs including the date, list of participants, and minutes of consultation meetings as indicated in Table 4. Table 4: Stakeholder’s Consultation Record Number of Discussion/ Date Location Agency Participants Participants Responses/Outcomes • • • • • • Date = date the consultation took place Location = location the consultation took place Agency = agency conducting the consultations Participants = Ministries, NGOs, affected people, local communities, etc. that participated in the session Discussion/Responses/Outcomes = summarize what was discussed, participants reactions, and key outcomes 26. This RF in Armenian will be made available to the APs at the relevant PMU office once subprojects are identified. Its English version will be disclosed on the ADB website after the RF is endorsed by the CA. The Armenian version of the RPs will be disclosed to the affected communities and a pamphlet in Armenian, summarizing compensation eligibility and entitlement provisions, will be sent to all APs before signing contract awards. The English translations of RP and pamphlet will be disclosed on the ADB website prior to contract signing.

L. Institutional Arrangements 27. In the event that there are resettlement issues with future subprojects, the following institutional arrangements will be incorporated into the existing Project framework. These arrangements will not be necessary unless resettlement issues arise. 28. The compensation/rehabilitation program will include: at the top level, the State Committee on Water Systems (SCWS) as the Project Coordination Unit (PCU) and an Inter-Agency Steering Committee composed of SCWS as the Chair with board members including: State Ministry representatives, and provincial and local board members. At the middle level will be the Project Managing Unit (PMU). The PMU will be AWSC, a 100% state-owned Closed Joint Stock Company (CJSC). Local town or community governments will also be involved in the compensation process at the bottom level.2 A detailed flowchart schematic is shown in Figure 1. 29. SCWS will have overall responsibility for the Project including the preparation, implementation and financing of all LAR tasks and for cross-agency coordination. AWSC or the

2 Please note that the communities have their own elected officials and act as a governing agency. 11

PMU will be responsible for general project execution, and tasked with daily Project activities at subproject level. The PMU will prepare and implement all RPs including surveys, asset valuation, and community consultation. An independent agency, will be hired to conduct monitoring and evaluation of all resettlement issues every month. The agency will act as a 3rd party validator for the implementation of RP activities and will routinely submit progress reports to both the PMU and ADB. All LAR plans will be submitted to the PCU and ADB.

M. Institutional Assessment 30. Institutional assessment of AWSC has concluded that AWSC is capable of dealing with land acquisition and resettlement issues, since it has accumulated LAR experience through current and completed water and wastewater improvement and construction works throughout the country. AWSC has an in-house lawyer who is experienced with resolving LAR issues with community heads and community members. AWSC has finalized LAR issues for both major populated towns and smaller rural regions. Currently, AWSC is responsible for the management of WSS systems in 47 towns and 300 villages. 31. With regard to the Project, consultation with AWSC’s lawyer and their design engineers indicated that they are well aware of the legislation aforementioned and the Armenian legal requirements involved with resettlement issues from their previous experiences. 32. To provide assistance with all resettlement matters, a social specialist will be hired by AWSC as an additional cost to the Project. This specialist will be required to become well-versed in applicable resettlement regulations and resettlement procedures for the RA and ADB. The social specialist will become an integral part of the AWSC resettlement team and will provide management and assistance for the AWSC lawyer and the design team.

Figure 1 LAR Flowchart

N. Complaints and Grievances 33. A grievance mechanism will be available to allow an AP appealing any disagreeable decision, practice or activity arising from land or other assets compensation. APs will be fully 12

informed of their rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey, and time of compensation. Care will always be taken to prevent grievances rather than going through a redress process. This can be obtained through careful LAR design and implementation, by ensuring full participation and consultation with the APs, and by establishing extensive communication and coordination among the affected communities, the PMU and town or community heads. 34. Complaint & Grievances will be addressed through the process described in Table 5:

Table 5: Grievance Resolution Process Land / Crops Compensation Issues 1. First, complaints resolution will be attempted at community level with the involvement of the community authorities and informal mediators. 2. If still unsettled, a grievance can then be lodged to the PMU. Within 15 days the PMU will dismiss the case or recommend its settlements to the PCU on the AP’s terms. 3. If after the local intervention and assistance with the PMU, no solution has been reached, a grievance can be directly lodged to the CA. The CA must consult the Inter-Agency Steering Committee for their decision on whether to settle or go to Court. The AP must lodge the complaint within 1 month after receiving response on the original complaint from the PMU and must produce documents supporting his/her claim. The Steering Committee will provide a response within 15 days of registering the complaint. The Steering Committee decision must be in compliance with these RF provisions. 4. Should the grievance redress system fail to satisfy the AP, they can pursue further action by submitting their case to the appropriate court of law.

O. Monitoring and Evaluation 35. LAR tasks under the Project will be subjected to internal monitoring. Internal monitoring will be conducted by an Independent M&E agency every month. This information will be collected directly from the field and reported monthly to the PMU to assess the progress and results of RP implementation, and to adjust the work program, if necessary. AWSC will adhere to ADB’s guidelines, policies, and other requirements during pre-construction through reviews of supporting documentation, and during project implementation, monitor project impacts and contractor performance through specialists engaged to support the PMU and the subproject preparation and project supervision consultants. Technical, economic, environmental, and social auditing will be conducted during subproject preparation and project implementation. The results will be communicated in standard supervision report format to ADB through quarterly project implementation reports. Specific monitoring benchmarks or indicators include: a) Information campaign and consultation with APs; b) Status of land acquisition and payments on land compensation; c) Compensation for affected structures and other assets; d) Relocation of APs; e) Payments for loss of income; f) Selection and distribution of replacement land areas; and g) Income restoration activities 36. The above information will be collected by the PMU which is responsible for monitoring resettlement activities of the project through: h) Review of census information for all APs; i) Consultation and informal interviews with APs; j) In-depth case studies; k) Sample survey and public consultation with APs; l) Key informant interviews; and m) Community public meetings.

P. Resettlement Budget and Financing 37. All RP preparation and implementation costs, including cost of compensation and LAR administration, will be considered an integral part of Project cost and will be contributed by the Armenian Government. Each RP will include a budget section indicating (i) unit compensation rates for all affected items and allowances, (ii) methodology followed for the computation of unit compensation rates, and (iii) a cost table for all compensation expenses. See Appendix E. 38. Finances for compensation, allowances, and administration of RP preparation and implementation will be provided by the Government. In order to ensure that sufficient funds are available for LAR tasks, the Government will have to allocate 100% of the cost of compensation at replacement cost and expected allowances estimated in each RP plus 15% of contingencies before RP implementation. 39. Being the project owner, SCWS is responsible for the timely allocation of the funds needed to implement the RPs. Allocations will be reviewed twice a year based on the budget requirements indicated by the RPs. The budget for land and crop compensation will be disbursed by the Ministry of Finance to the PMU. The PMU will disburse the funds to the local governments which in turn will disburse the compensation to the APs.

Q. RP Implementation Process 40. RPs (short or long depending on the resettlement severity) will be updated after detailed engineering designs are complete. The number of APs will be revised based on the DMS. Compensation unit rates will be updated for all categories of lost assets and allowances based on replacement cost surveys during implementation. Individual losses will be calculated and recorded. A format for an inventory of losses is included in Appendix E. Each AP will be provided with a certificate or a form of identification stating that the individual/household has been declared affected by the subproject. Grievance redressal procedures will be in place and disclosed to APs before the commencement of LAR activities. 41. The PMU will establish and announce the cut-off-date based on the date of census for the proposed subproject based on the eligibility criteria defined in this RF. An AP Compensation Form which details all types of losses with its corresponding established compensation rates and types of relocation assistance will be issued to APs prior to compensation and taking possession of their assets. An example of the Compensation Form can be found in Appendix E. The APs of affected structures/assets will be paid their due compensations at least 1 month (30 days) prior to demolition of the structures from the corridor of impact. This time will allow them to dismantle and remove all salvageable material for rebuilding of houses and re-establishment of businesses.

42. All RPs will be submitted to the PCU and ADB for approval.

43. All resettlement activities will be coordinated with the civil works schedule. ADB will issue a no objection to civil works contract award only after the Government has satisfactorily completed, in accordance with the approved RP for that subproject, compensation payments and relocation to new sites. This will be applicable to any civil works award for a subproject that will be financed from the loan proceeds. Establishment of rehabilitation assistance shall be in place and the area required for civil works should be free of all encumbrances.

Appendix A: Resettlement Screening and Approval Process

ADB: APPROVE, Identify monitoring requirements

Refer to Appendix B : Screening Checklist, Refer to Appendices C or D

1. Screening 2. Screening 3. Appraisal by ADB 4. Resettlement Plan Checklist Prepared Checklist Reviewed by PMU, AWSC by ADB (social safeguard specialist)

Refer to Appendix B: Screening Checklist, Refer to Appendices C or D

ADB: REJECT

REQUEST AMENDMENT AND REAPPLICATION

Appendix B: Subproject Screening Form (to be filled by a social specialist)

A. Project Title Project No. XXXXX-XX

Subproject Title: ______Date: ______

Short Subproject Description:\

Location and impact area:

Probable Involuntary Resettlement Effects* Yes No Not Known PossibleRemarks Will the project include any physical construction work? Does the project include upgrading or rehabilitation of existing physical facilities? Are any project effects likely to lead to loss of housing, other assets, resource use or incomes/livelihoods? Is land acquisition likely to be necessary? Is the site for land acquisition known? Is the ownership status and current usage of the land known? Will easements be utilized within an existing Right of Way? Are there any non-titled people who live or earn their livelihood at the site or within the Right of Way? Will there be loss of housing? Will there be loss of agricultural plots? Will there be losses of crops, trees, and fixed assets? Will there be loss of businesses or enterprises? Will there be loss of incomes and livelihoods? Will people lose access to facilities, services, or natural resources? Will any social or economic activities be affected by land use-related changes? If involuntary resettlement impacts are expected: • Are local laws and regulations compatible with ADB’s Involuntary Resettlement policy? • Will coordination between government agencies be required to deal with land acquisition? • Is there sufficiently skilled staff in the Executing Agency (PMU) for resettlement planning and implementation? • Are training and capacity-building interventions required prior to resettlement planning and implementation? *Whenever possible, consider also any future subprojects or investments.

Information on Affected Persons: Any estimate of the likely number of households that will be affected by the Project? [ ] No [ ] Yes If yes, approximately how many? ______Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes If yes, please briefly describe their situation ______Are any APs from indigenous or ethnic minority groups? If yes, please explain? ______

Proposed by:

______PIU Director Date Social Dev’t Specialist Date

Checked by: Endorsed by:

______ADB Social Dev’t Date Mission Leader Date Safeguard Specialist

APPENDIX C

STANDARD RP OUTLINE

1. LAR issues for the scheme This chapter describes the scheme activities and items requiring LAR; alternative options, if any, to minimize land acquisition and its effects; and why remaining effects are unavoidable.

2. Scope of land acquisition and resettlement This chapter describes the preparation of the impacts (who carried it out and when it was initiated) and provides a full assessment of each type of impact and a census of affected peoples. The chapter also includes a description of the methodology followed to determine unit-compensation rates for each affected item and subsidy/allowance.

3. Objectives, policy framework, and entitlements This chapter outlines the eligibility and compensation framework for the scheme.

4. Consultation and grievance redress participation This chapter summarizes procedures for redress of grievances by people affected and describes the consultation/participation process and grievance redress that occurred in the subproject at hand.

5. Compensation, relocation, and income restoration This chapter outlines the income restoration measures to be implemented.

6. Institutional framework This chapter outlines the institutional arrangements. It includes the following issues: responsibilities for main tasks and for planning, negotiating, consulting, approving, coordinating, implementing, financing, monitoring, and evaluating land acquisition and resettlement.

7. Resettlement budget and financing This chapter provides the unit compensation rate for each affected item and assesses the LAR budget for the scheme. The LAR budget will include land acquisition and eventual land acquisition costs, amounts due for crop compensation and for the subsidies and allowances, monitoring and evaluation costs, and administrative costs and will be adjusted for inflation and applicable taxes.

8. Implementation schedule This chapter provides a time schedule showing the LAR process and linking LAR tasks with civil works implementation.

9. Monitoring and evaluation This chapter specifies arrangements for routine and independent monitoring and evaluation activities.

APPENDIX D

OUTLINE FOR A SHORT RESETTLEMENT PLAN

A. Introduction

1. Brief description of the Project (provide map of Project areas) 2. Types of impacts (summary description of acquisition and other assets)

B. Description of Affected Persons

1. Description of APs including their spatial distribution 2. Gender-disaggregated socioeconomic characteristics of APs 3. Total number of families affected by the Project 4. Employment types and major sources of income 5. Tenure status (land and house/structures) 6. Affected land and assets: areas, types of structures, and conditions 7. Categories and numbers of affected households by type and degree of impacts 8. Affected households with loss of entire holdings are required to relocate 9. Affected households with loss of partial holdings and not required to relocate 10. Tenants, landless laborers, informal settlers, etc. affected by the Project 11. Affected households with loss of incomes and employment

C. Compensation and Policy Entitlement Criteria

1. Elements of compensation policy: objectives and entitlement criteria 2. Compensation entitlements for each category of APs 3. Other assistance (transport allowance, rehabilitation assistance, etc.)

D. Cost Estimates and Budget

Aggregate costs for each type of asset loss and implementation arrangements

E. Public Participation, Consultation, and Grievance Resolution

1. Consultation with stakeholders at the different stages of the Project 2. Existing and Project-specific mechanisms for grievance resolution procedures

F. Organizational Set-up

Organizational structure of the unit/division within the local government at the district level that is responsible for management, supervision, and implementation of LAR

G. Implementation Schedule

1. Implementation schedule for land acquisition and compensation for each component of the Project, including description of different activities and their sequence 2. Timetable for implementation of different land/asset acquisition activities in relation to the Project

APPENDIX E: Sample Form for Entitlements for Affected Persons

Subproject Name: ………………………………… Component: ……………………………………….. Province: ……………….. District: …………… Town: ………… Community: …………

APs APs APs Estimated Cost for Crops affected No of Total Total Type Affected Unit Type APs Estimated Estimated Partially affected houses Q. HH Name people land Type of affected Renting Cost for Cost for of Area price/ of Estimate Name APs No. No. of AP live in holdings ownership land fee Permanent Temporary Quantity Annual land (sq.m) m2 effect sqm of Wall Roof GroundPosts Total of Total HH (sq.m) cost affected affected (unit) Yield HHs lost Crop Value houses houses 1 2 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 2 3 4 5

Structures (fences, toilet, concrete ground,grave ) Trees affected Other asset Business APs Total Q. APs APs Total Name Trans- APs APs Name Annual APs (Ave Income) Charac- Quantity Charac- Quantity Annual Cost No. Estimate Quantity Estimated estimat of planting Cost of Total of Quantity Yield Total /month teristic (unit) teristic (unit) Yield estimate d Cost Cost ed Cost tree cost tree Value Asset (profit) Value

28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 1 2 3 4 5

APPENDIX F ARMENIA WATER SUPPLY AND SANITATION SECTOR PROJECT SSTA4925-ARM RESETTLEMENT DUE DILIGENCE REPORT

I. Introduction

1. The purpose of this Resettlement Due Diligence Report is to demonstrate that resettlement issues will not occur in any of the five candidate subproject communities located in the Ararat-Marz region or in the candidate subproject town, Abovyan. All possible resettlement issues were evaluated in terms of the proposed construction to see if any people, land, businesses, crops or other items of value would be affected by the Armenia Water Supply and Sanitation Sector Project. The Project is being mandated by the State Committee on Water Systems (SCWS) under the RA Ministry for Territorial Administration.

2. The candidate subprojects include the construction and rehabilitation of water and sanitary infrastructure for Abovyan town and the construction and rehabilitation of water infrastructure in five rural communities in the Abovyan-Marz region of Armenia. These subprojects will provide safe, reliable piped water supply for 38,876 Abovyan town residents and 7,263 community residents by 2013. The subproject works are particularly urgent for the communities which have between 75-90 percent of residents below the poverty line and no current water supply.

3. In accordance with due diligence, all engineering design documents were analyzed, community heads were consulted, site visits were conducted and construction information was obtained from the proposed managing and operating contractor, Armenia Water and Sewerage Company (AWSC). AWSC is a private water supply management company who will provide and operate water supply services to most of the towns and communities in the Project.

4. The analysis of the candidate subprojects shows that there will not be any land acquisition or resettlement issues because construction works will be located on either (i) public property owned by the town or communities or (ii) on private property voluntarily contributed to the Project.

II. Due Diligence of Abovyan Town

5. The following construction and rehabilitation measures are proposed to take place in Abovyan town to improve the water supply and sanitary systems:

Table 1: Proposed Construction Works for Abovyan Item Proposed Construction Works Total Meters 1 Water Pipeline to be constructed 17700 2 Sewer Pipeline to be constructed 12560 3 Water Pipeline to be rehabilitated 2975 4 Sewer Pipeline to be rehabilitated 400 5 Reconstruction of (2) sewer collectors 6 Repair of (1) duty regulating reservoir 7 Renovation of (1) water collector 8 Renovation of (2) water supply pump stations

Status of Infrastructure

6. Site visits to Abovyan town and the Makravan spring source, located in Hrazden, 35 km from Abovyan, were conducted on the 25th of April 2007. Most of the infrastructure listed in Table 1 was built in 1963 and is in urgent need of repair. The old infrastructure permits 70% of the total water supply to be lost through leakage. The reservoir is also currently leaking and the existing water supply pump station at the Makravan source has not been rehabilitated in thirty years. This pump station includes two pumps (1 operational, one stand-by) to deliver spring water to the town. Furthermore, if this supply is not sufficient, they use another pump station with five 80-meter deep well pumps to supplement the water supply. However, these pumps continue to be operated with out-of-date equipment and are in need of spare parts. Currently, one of the deep well pumps is not operational.

Resettlement Conclusions for Subproject Town

7. During a site visit to Abovyan, a meeting was conducted on the 25th of April with the mayor and town engineer in Abovyan (Meeting Minutes Appendix 3, Highlighted items). According to the design plans and this consultation, all water and sewer pipelines will be constructed or rehabilitated on public streets. The Aboyvan town engineer confirmed that the design will enable ROW for cars and pedestrians during the construction activities. Furthermore, the sewer and water collectors, reservoir and pump stations are located on public property. As shown in Appendix 1, the town of Abovyan is well-advanced in terms of its infrastructure, i.e. roads, existing sewer and water infrastructure. The existing systems are located on either public roads or property and the additional components will follow these same public routes. Consultation with the town engineer also confirmed that he is well aware of resettlement issues and their associated problems. As a result, none of the detailed designs will include temporary or permanent disturbances of people, businesses, agriculture or land nor require any acquisition of private land. Therefore, an RP is not required for this candidate subproject because only municipal land will be used.

III. Due Diligence for Abovyan-Marz Communities

8. Five communities have been analyzed to determine potential resettlement issues. Preliminary designs have been completed in all of the communities. The proposed construction and rehabilitation measures for the five towns; Surenavan, Armash, Yeraskh, Lanjar and Paruyr Sevak are listed in Table 2.

Table 2: Proposed Construction Works for Abovyan Item Proposed Construction Works Total Meters 1 Water main to be constructed for Surenavan, Armash and Yeraskh 16300 2 Water main to be constructed for Lanjar 2000 2 New reservoir Surenavan 3 New reservoir Yeraskh 4 Rehabilitation of Armash reservoir to become DRR 5 Rehabilitation of Paruyr Sevak reservoir 6 Construction of Surenavan distribution network 7 Construction of Surenavan household connections 8 Construction and rehabilitation Armash distribution network 9 Construction of Armash connections 10 Construction of Yeraskh distribution network

Item Proposed Construction Works Total Meters 11 Construction of Yeraskh connections 12 Construction of Paruyr Sevak distribution network 2500 13 Construction of Lanjar distribution network 2700

Status of Infrastructure

9. Site visits to the 5 communities in the Ararat Valley, namely Surenavan, Armash, Yeraskh, Lanjar and Paruyr Sevak were conducted on the 28th April 2007. Surenavan, Armash, and Yeraskh will utilize the Garni spring source, located at elevation 1,250 m, approximately 80 km from the communities. Site-walkovers and consultation with AWSC representatives and the community heads detailed the status of the infrastructure of the main and the community distribution networks. Please see Appendix 2 for the distribution plan from the source to the communities of Surenavan, Armash, and Yeraskh. (Lanjar and Paruyr Sevak will use local sources.)

10. Until 1993 the communities of Ararat Marz received water from the Garni source through the «Garni-Yeraskh» main. The main passed through Surenavan and Armash until Yeraskh along the Yerevan-Yeraskh highway. In Surenavan, new construction in 1993 over the transmission main stopped the water supply. Subsequent investigations have shown that it is not economically feasible to rehabilitate the damaged line; This route, from the point of view of hydraulics, is insufficient as it requires pumping. Moreover, the main is in poor condition.

11. Most existing infrastructure is not functioning in the rural communities. Only Armash and Surenavan communities have “functional,” simple water distribution systems built over 30 years ago. Surenavan currently uses this distribution system for non-potable water. Armash uses the distribution system for potable water pumped from a nearby spring. However, the system has so much leakage that most water is used for irrigation of fields located close to the spring and in effect, the residents (generally located further from the spring) do not have water supply. The distribution network of Yeraskh was constructed in 1970. However, due to highly mineralized groundwater and a high water table, the pipes have corroded and can not be utilized. As a result, all three communities buy water from potable water trucks delivered by Ararat town.

12. In contrast with Surenavan, Armash, and Yeraskh, there are no distribution networks in Lanjar and Paruyr Sevak. Pipe mains lead from local sources to within 100 meters of the village. Woman and children must fetch the water daily from these distant sources.

13. A semi-constructed reservoir is located in Surenavan. However, construction ended in 1994 and the structural integrity of the reservoir is questionable. An operating reservoir, constructed in 1979, is located in Yeraskh, however this reservoir is also in bad structural condition and it is located at an elevation unsuitable for gravity supply. The only suitable reservoir is located in Armash. This reservoir will be repaired and diverted to use Garni source water rather than its current local source which is inadequate to feed the community population. New reservoirs will be built in Surenavan, Yeraskh and Paruyr Sevak.

Resettlement Conclusions for Subproject Communities

14. The new gravity main from the Garni source to the communities, Surenavan, Armash, Yeraskh will be constructed primarily along public land. The main will cross one private property upstream in another community, Ararat Village. This property owner has signed a written, legal agreement to voluntarily contribute his land for the purposes of pipeline construction. This written agreement is located in Appendix 4a. Furthermore, an independent lawyer in Armenia has verified the legal agreement. (Note that in accordance with ADB Resettlement Regulations, OM Section F2/OP Footnote 6, safeguards to deal with any losses that arise must include ensuring the voluntary ‘donation’ be confirmed through verbal and written record and verified by an independent third party, in this case, a legal authority.)

15. The water mains in Lanjar and Paruyr Sevak will be constructed only on public land to connect local springs to the proposed distribution systems.

16. For the Yeraskh and Surenavan reservoirs, municipal land was offered to AWSC (the private water management company) under legal agreements as indicated in Appendix 4b. The Yeraskh and Surenavan community heads have given AWSC the rights to 0.5 hectares of their community land for the purpose of new reservoir construction and water supply management.

17. In Paruyr Sevak, the new reservoir will be built on public land.

18. Internal distribution networks within all of the communities will also be built along public roads including the pipelines to individual household connections in Armash and Yeraskh.

19. Surenavan, Armash, and Yeraskh have given written permission to AWSC for a temporary, ten meter right-of-way during the construction of the pipelines along the public roads. The written, legal agreements between the communities and AWSC are located in Appendices 4c.

20. As the legal agreements in the Appendices detail, none of the designs will include unwilling disturbance of people, businesses, or agriculture on private land nor require any acquisition of private land. An RP is not required for this community candidate subproject because a) either, the land is owned by the community and they have given permission to AWSC for a temporary right-of-way on the public municipal land, or b) the communities have provided AWSC the public land for the purposes of permanent construction and water supply management, or c) private land has been voluntarily contributed to the Project for the purpose of pipeline construction. Therefore, there are no issues with resettlement in any of the communities according to an analysis of the feasibility study designs and written, legal agreements between AWSC and the communities.

Appendix 1 – Abovyan Infrastructure

Appendix 2 – Garni Source and Receiving Communities

Garni Source

Surenavan

Armash

Yeraskh

Appendix 3 – Abovyan Town Meeting Minutes

Armenia Water Supply and Sanitation Sector Project Meeting with Abovyan Town Minutes

Date = 25 April 2007 Location = Abovyan Town Hall Agencies = ADB, Abovyan Town, AWSC

Participants Organization / Position Mr. Karo Israelyan Abovyan Town Mayor Mr. Ruben Mkrtchyan AWSC Branch Director Mr. Stepan Galstyan AWSC Project Engineer Mr. Raushan Mamatkulov ADB Project Leader Mr. Allen Williams ADB Engineer Ms. Cara Tobin ADB Social Safeguards Specialist Ms. Melineh Tovmasyan ADB Domestic Social Specialist Ms. Lilit Buniatyan Official Translator

Discussion:

System Ownership - 1999, distribution networks for Abovyan town were transferred to AWSC to use the property without compensation for the period of 10 years - Makravan spring source, chlorination station and transmission lines are 100% government owned by the State Committee on Water Systems - Storage reservoirs and distribution booster pumps are owned by Abovyan - ADB recommendation to transfer all Abovyan water assets to the SCWS in order to receive better subsidies

Sewage System - Abvoyan has sewerage system o Problem : sometimes not enough flow so gets clogged o Problem: old, leaking infrastructure - Feasibilty study recommends construction and rehabilitation of sewer pipelines - As evidenced by design AutoCAD drawings, all proposed sewage upgrades will be located on public land and will not cross any historically significant sites

Current Water Supply System - Abovyan has the possibility to supply water to upper elevations - Abovyan population = 38,876 - Water supply system components o Length of existing network = 113 km o Min - Max Pipe DN = 50 – 400 (mm) o Pipe material = steel - ADB recommendation to ensure there is cathodic protection on the steel pipes

- ADB recommendation to use newer material for water pipelines such as HDPE (high density plastic) o Date of construction = 1967 o 4 reservoirs at 2000 m3 capacity constructed in 1987 o 8 pumps o Problem: 1 of 3 pumps which pump to catchment is not working o Problem: 1 of 5 deep well pumps which pump groundwater in not working - Makravan source flow = 1200 l/sec - Design flow = 220 l/c/d - Min – Max flow to catchment = 150 – 300 l/sec - Elevation of Makravan source reservoir in Hrazdan = 1693 m - Elevation of Abovyan = 1450m - Hrazdan town is 35 km from Abovyan - 60 % of water is metered at house / customer level - Reservoirs are not metered o Reservoirs are leaking approximately 100 l/sec - 70 % of water is lost or unaccounted for water due to: o Problems with illegal connections o Leakage since majority of system was constructed in 1963 - MAIN Problem: electricity costs are limiting factor, water is only available for typically 4 to 6 hours per day - Hrazden water quality is good (MoH water quality report provided) - Abovyan has procedure if unsafe water is delivered - Problem: adjacent Hrazden River has potential to contaminate source o Hrazden reservoir in river used for hydropower o Electricity company can raise the reservoir level so that the river will infiltrate the groundwater at the Makravan source o AWSC signed agreement with electricity company to prohibit raising the reservoir level

Proposed Water Supply System Proposed Construction Works for Abovyan Item Proposed Construction Works Total Meters 1 Water Pipeline to be constructed 17700 2 Sewer Pipeline to be constructed 12560 3 Water Pipeline to be rehabilitated 2975 4 Sewer Pipeline to be rehabilitated 400 5 Reconstruction of (2) sewer collectors 6 Repair of (1) duty regulating reservoir 7 Renovation of (1) water collector 8 Renovation of (2) water supply pump stations

- As evidenced by design AutoCAD drawings, all proposed water supply infrastructure upgrades will be located on public land and will not cross any historically significant sites - Reservoir upgrades will take plan on public land reserved for reservoir

- Aboyvan town engineer confirmed that the design will enable ROW for cars and pedestrians during the construction activities

Recommendations:

System Ownership 1) ADB recommendation to transfer all Abovyan water assets to the SCWS in order to receive better subsidies

Sewage System 2) New sewer pipelines must be constructed at a lower elevation than the water pipelines and in different trenches than the water pipelines to prevent leakage of sewage water into the water supply. Also, water pipes will be constructed with PVC or HDPE on a sand bed or with steel. If they are constructed with steel, anticorrosion protection will be implemented on the pipeline. 3) It is recommended to perform more detailed design calculations for the potential impacts of increased sewage generation

Water Supply System 4) It is recommended to show sufficient capacity calculations for dry seasons

Submissions to ADB:

1) Map of water infrastructure 2) Water quality results

Appendix 4a – Voluntary Contribution of Private Land, English Version

English Translation:

07.12.2006

Agreement/Reference

I, the undersigned, Sedrak Seryoja Sargsyan, passport N AA0487622, agree that the Surenavan-Yeraskhavan water line passes my private land in Ararat village.

Sedrak Sargsyan ______signature

Appendix 4a – Voluntary Contribution of Private Land, Armenian Version

Appendix 4b – Provision to AWSC of Public Community Land for Reservoir Construction Purposes, English Version

1) Surenavan

27.11.2006

To. Mr. K. Aghababyan Technical Director Armenian Water and Sewerage Company

Provide a land of about 0.5 ha for a territory of the daily regulated reservoir of Surenavan village, Ararat marz in accordance with the decision of Board of village administration.

Head of village Aghazaryan

2) Yeraskh

RA, Ararat Marz Yeraskh Village Administration 17.11.2006

Decision N 15 on assignment of the land area for the daily regulated reservoir Yeraskh village of Ararat marz.

Decision

Give the permission on assignment of 0.5 ha land area for the daily regulated reservoir of Yeraskh village in Vedi –lower Arpa zone (Code 001-05).

Yeraskh Head of Village Avetisyan

Appendix 4b – Surenavan Provision to AWSC of Public Community Land for Reservoir Construction Purposes, Armenian Version 1) Surenavan

Appendix 4b – Yeraskh Provision to AWSC of Public Community Land for Reservoir Construction Purposes, Armenian Version

2) Yeraskh

Appendix 4c – Provisions to AWSC of Temporary Right-of-Way along Public Roads, English Version

1) Armash

16.11.2006

Reference

This is to certify that Armash village administration has no objection to provide the ROW of 10 meters width along the route of the newly constructed main.

Armash Head of Village H. Zeylanyan Secretary S. Varpetyan

2) Surenavan

27.11.2006

To. Mr. K. Aghababyan Technical Director Armenian Water and Sewerage Company

Give permission for the assignment of the land for the installation of the drinking water pipeline with width of 10 m along the pipeline route in Surenavan village of Ararat marz.

Head of village Aghazaryan

Appendix 4c – Provisions to AWSC of Temporary Right-of-Way along Public Roads, English Version

3) Yeraskh

27.11.2006

RA, Ararat Marz Yeraskh Village Administration

Decision N 17 on assignment of 10 m ROW along the water main route of Yeraskh village of Ararat marz.

Decision

Give the permission on assignment of 10m ROW along the water main route of Yeraskh village to implement the construction works.

Yeraskh Head of Village Avetisyan

Appendix 4c – Armash Provision to AWSC of Temporary Right-of-Way along Public Roads, Armenian Version

1) Armash

Appendix 4c – Surenavan Provision to AWSC of Temporary Right-of-Way along Public Roads, Armenian Version

2) Surenavan

Appendix 4c – Yeraskh Provision to AWSC of Temporary Right-of-Way along Public Roads, Armenian Version

3) Yeraskh