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Resettlement Plan Masalli–Astara Motorway (Project 3) Girdani-Kolatan Section (Section B) July 2011 AZE: Road Network Development Program Prepared by AzerRoadService Open Joint-Stock Company, Ministry of Transport, Republic of Azerbaijan for the Asian Development Bank. The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. CURRENCY EQUIVALENTS (as of 1 August 2010) Currency Unit – Azerbaijan Manat (AZN) AZN1.00 = $1.25 $1.00 = AZN0.80 ABBREVIATIONS ADB – Asian Development Bank ARS – AzerRoadService Open Joint-Stock Company AZN – Azeri Manat DMS – detailed measurement survey DP – displaced person EA – executing agency EMC – external monitoring consultant GIS – geographic information system GPS – global positioning system HH – household LAD – Land Acquisition Department LAR – land acquisition and resettlement LARF – land acquisition and resettlement framework LARP – land acquisition and resettlement plan MFF – multi-tranche financing facility MOF – Ministry of Finance NGO – non-government organization PIU – project implementation unit PPTA – project preparatory technical assistance ROW – right of way SCMSP – State Committee for Management of State Property SPS – safeguard policy statement NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, “$” refers to US dollars. CONTENTS GLOSSARY 1 MAPS 2 EXECUTIVE SUMMARY 3 CHAPTER 1: INTRODUCTION 4 1.1 Project Description 4 1.2 Conditionality 5 1.3 Land Acquisition and Resettlement for the Project 6 CHAPTER 2: SOCIOECONOMIC BACKGROUND OF THE PROJECT AREA 7 2.1 Composition and Traits of Displaced Households 7 2.2 Ethnic Composition of Displaced Households 8 2.3 Education of Heads of Displaced Households 8 2.4 Income Source of Displaced Households 8 2.5 Age Group of DPs 9 2.6 Livestock of Displaced Households 10 CHAPTER 3: IMPACT ASSESSMENT 11 3.1 Impact Assessment Process and Methodology 11 3.2 Census of Displaced Households and Persons 11 3.3 Impacts Assessment and Detailed Measurement Survey 12 3.4 Features of Affected Land 13 3.5 Land Impacts 14 3.6 Impacts on Buildings and Structures 14 3.7 Impacts on Crops and Trees 15 3.8 Impacts on Businesses 16 3.9 Determination of Compensation Values 16 3.10 Land Values 17 3.11 Compensation for Buildings and Structures 18 3.12 Relocation Assistance 18 CHAPTER 4: OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS 19 4.1 Legal and Policy Background 19 4.2 Compensation Eligibility and Entitlements for the Project 23 4.3 Provision of Land for Land Compensation 26 4.4 Gender Impact and Mitigation Measures 26 CHAPTER 5: STAKEHOLDER CONSULTATION AND DISCLOSURE 28 5.1 Public Participation and Documents Disclosure 28 5.2 Outcomes of Stakeholder Consultations 29 CHAPTER 6: GRIEVANCE REDRESS MECHANISM 32 CHAPTER 7: INSTITUTIONAL ARRANGEMENTS 33 7.1 Central LAR Commission 33 7.2 AzeriRoadService Open Joint-Stock Company (ARS) 33 7.3 Local Governments 33 7.4 External Monitoring Consultant (EMC) 34 7.3 Capacity Building Assessment and Initiatives 34 CHAPTER 8: RESETTLEMENT BUDGET AND FINANCING 36 8.1 Compensation for Privately-owned Land 36 8.2 Compensation for Structures 36 8.3 Rehabilitation Allowance 36 8.4 External Monitoring / Third Party Validation Cost 38 8.5 Summary Resettlement Plan Budget 38 CHAPTER 9: IMPLEMENTATION PLAN AND SCHEDULE 39 9.1 LARP Preparation and Implementation Process 39 9.2 Implementation Schedule 40 CHAPTER 10: MONITORING AND EVALUATION 41 10.1 Internal Monitoring 41 10.2 External Monitoring / Third Party Validation 42 Appendix 1 – Pamphlet for Local Disclosure Appendix 2 – Summary Consultation Matrix GLOSSARY Compensation Money or payment-in-kind to which the displaced persons are entitled in order to replace the lost assets, resource or income. Displaced person Any person affected by project-related changes in use of land, water, natural resources or income losses. A displaced household includes all persons residing under one roof and operating as a single economic unit. Eminent domain Regulatory measure by the Government to obtain land. Entitlement Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to displaced persons, depending on the nature of their losses, to restore their economic and social base. Expropriation Government's action in taking or modifying property rights in the exercise of sovereignty. Host population Community residing in or near the area to which displaced persons are to be relocated. Income restoration Re-establishing income sources and livelihoods of displaced persons. Involuntary resettlement Development project results in unavoidable resettlement losses that displaced persons have no option but to rebuild their lives, incomes and asset bases elsewhere. Relocation Rebuilding housing, assets, including productive land, and public infrastructure in another location. Rehabilitation Re-establishing incomes, livelihoods, living, and social systems. Replacement rates Cost of replacing lost assets and incomes, including cost of transactions and without deduction for depreciation. Resettlement effect Loss of physical and nonphysical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms. Land Acquisition and A time-bound action plan with budget setting out resettlement Resettlement plan strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation. Social preparation Process of consultation with affected people undertaken before key resettlement decisions are made, to build their capacity to deal with resettlement. Vulnerable households Households that might suffer disproportionately from resettlement effects. For this subproject, households with income below the poverty line (earning less than 71.5AZN per month) are considered vulnerable. 2 Figure 1: Transport Network Map of Azerbaijan with Project Area Source: Asian Development Bank. Technical Assistance Report for Preparing the Southern Road Corridor Improvement Project (Alyat-Astana Road). Manila, Philippines. November 2005. 3 EXECUTIVE SUMMARY (i) This Land Acquisition and Resettlement Plan (LARP) was prepared in accordance with the Asian Development Bank (ADB)’s Safeguard Policy Statement (SPS) 2009 and the laws and regulations on land acquisition and resettlement (LAR) in Azerbaijan. It outlines impacts, compensation policy, compensation/rehabilitation provisions, cost estimates, and the implementation schedule to compensate the impacts caused by Section B: Girdani to Kolatan of the Masalli–Astara Motorway. It is envisaged that this subproject will be implemented under Tranche 3 of the Road Network Development Program to be financed through the multitranche financing facility (MFF) from ADB. The subproject involves a flowing alignment that impacts on 66 structures and commercial enterprises. The subproject has been topographically and geologically surveyed. This LARP is based on the final detailed design of the subproject. (ii) The Azer Road Service Open Joint-Stock Company (ARS), the Implementing Agency, has overall responsibility for the Project, including the preparation, implementation and financing of all LAR tasks and interagency coordination. ARS will exercise its functions through the Project Implementation Unit (PIU), which handles day-to-day project activities. Land acquisition and resettlement (LAR) tasks will be managed by the Land Acquisition Division (LAD) in ARS, which will organize and internally monitor RP preparation and implementation (including surveys, asset valuation, and community consultation) and LAR-related interagency coordination. (iii) The subproject will displace 742 households (1,418 lots) with land acquisition of 161.408 ha (of which 95.161 ha is private land) and 66 private structures. Among the displaced persons (DPs) experiencing major impacts, 22 households will be physically displaced, 106 households will lose more than 10% of their productive land and another 11 households will lose their business temporarily. The total cost of RP is estimated at about $ 3.83 million. The details of resettlement impacts and cost are presented in Tables E-1 and E-2. Table E-1 Summary Resettlement Impacts Item Unit/Number Total Land to be acquired 161.408 ha Private Land to be acquired 95.161 ha Number of Private structures affected 66 Households losing residential structure 22 Households losing business establishment 11 Households losing more than 10% of productive land 106 Number of Households affected 742 Number of displaced persons 2,668 Table E-2 Summary Resettlement Budget Item Cost (AZN) Cost ($) Compensation for Land 1,419,865 1,774,831 Compensation for Structures 1,147,814 1,434,768 Relocation Subsidy 33,000 41,250 Compensation for Business Loss 6,300 7,875 Severe Impact Allowance 27,923 34,904 External Monitoring 32,000 40,000 Base Cost 2,666,902 3,333,628 Contingency (15% of base cost) 400,035 500,044 Total 3,066,938 3,833,672 4 CHAPTER 1: INTRODUCTION 1.1 Project Description 1. Azerbaijan, an independent country of 8.3 million people, lies astride ancient north-south trading routes between the Russian Federation and the Middle East. In the east-west direction the major trade corridor extends through Georgia, connecting the Black Sea and the Caspian Sea, as well