Armenia: Water Supply and Sanitation Sector Project – Phase 2

Resettlement Planning Document

Resettlement Plan Project Number: 45299 December 2011

Proposed Additional Financing Armenia: Water Supply and Sanitation Sector Project – Phase 2

Prepared by the Armenia Water and Sewerage Company for Asian Development Bank EXECUTIVE SUMMARY

1. In late 2007, ADB approved funding for Phase 1 to upgrade and rehabilitate water supply and sanitation systems in 18 subprojects covering 16 towns and 125 villages. That project had 2 components: (i) infrastructure rehabilitation; and (ii) improvements in management and operational efficiencies and is expected to be completed in Quarter 1 of 2012, which is a year ahead of schedule.

2. On the back of the likely successful implementation of Phase 1, the Government of Armenia (Government) through the State Committee of Water Systems (SCWS) has requested ADB to support the funding of Phase 2 through ADB’s Additional Financing and further support the Government’s continued efforts in the rehabilitation and extension of the water supply systems and improvements in operational efficiency and financial management of Armenia Water and Sewerage Company (AWSC), a government owned commercial company that is managed and operated through a management contract by an international water utility company, SAUR.

3. The Project will ensure further improvements in public health and environment through the provision of safe and reliable water supply to households across 10 subprojects covering 18 towns and 92 villages in the regions of Aragatsotn, Ararat, Armavir, Gegharqunik, Tavush, Lori, Kotayk, Shirak, Syunik, and Vayots-Dzor. The ADB loan will form part of a larger sector capital investment supported by the Government and other international financial institutions including the World Bank and the European Bank for Reconstruction and Development.

4. Initial social assessment was conducted to identify social impacts of the proposed Armavir subproject. As a result, a Resettlement Plan (RP) was prepared for newly constructed 6*500 DRRs to mitigate impact of permanent land acquisition. Construction of new 6*500m3 DRRs requires permanent acquisition of 0.5 ha of community owned land in Lernamerdz community of RA Armavir raion/Marz.

5. The objectives of the proposed RP are: (i) to identify the project impact on the household and/or community in terms of loss of assets, livelihood and income in the affected community; (ii) to describe the land donation procedures from the affected community to the project .

6. The proposed Armavir subproject includes: Water main • Replacement of 4.0km long de315 polyethylene emergency water line on Noyakert- Baghramyan- Aygek water main, • Construction of 6x500m3 DRRs in Lernamerdz village, (optional, shall be decided at the later stage) • Reconstruction of 3*150m3 DRRs (for Dasht, Shahumyan and Aygeshat villages water supply) • Repair of deep well, replacement of deep-well pump in Hushakert village

Distribution network • Construction of de50-de160 polyethylene water lines with more than 67500 m total length in the distribution network; • Construction of water supply chambers, 10 Pcs • Reconstruction of water supply chambers, 55 pcs • Construction of DN50-DN150 buried installation valve nodes , 164 pcs • Reconstruction of 35 multi- stored blocks inlet pipes with de63 diameter water lines construction (average 25.0m length), 1200 m • Construction of de20-de32 private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 5252 pcs • Disruption and recovering of asphalt concrete cover, 18800 m2 Wastewater system (Echmiadzin town) • Reconstruction and construction of sewerage de200-de500 diameter, pipelines and collectors, 500m • Recovering of observation chambers and replacing of manholes, 10Pcs

7. Rehabilitation of existing distribution pipelines, DRRs and other remaining activities will not require land acquisition since these structures will be replaced and installed in their current locations. Existing distribution pipeline is located under the road or on the land that is owned by AWSC or AWSC has servitude rights for the given territories.

8. The total cost for implementation (basically for documentation and relevant charges for services, such as cadastre and notary) of this RP is estimated at 77 000 AMD, which is covered from the funds of the Government of the Republic of Armenia.

9. The RP implementation will require to be linked directly with civil work contract. Both Government and ADB’s policy on land acquisition require that commencement of civil work can only be initiated after AWSC submits the RP completion report to ADB.

10. A final report will be prepared upon completion of implementation of this RP. i

ABBREVIATIONS

ADB Asian Development Bank AWSC Armenia Water and Sewerage Company DMS Detailed Measurement Survey DRR Daily Regulating Reservoir EA Executing Agency HH Household IA Implementing Agency IPSA Initial Poverty and Social Assessment LSGB Local Self-Government Bodies LAR Land Acquisition and Resettlement RF Resettlement Framework RP Resettlement Plan MTA Ministry of Territorial Administration NGO Non-Governmental Organization PGC Project Governing Council PCU Project Coordination Unit PMU Project Management Unit PSA Poverty and Social Assessment SCWS State Committee on Water Systems SES Socioeconomic Survey SPS Safeguard Policy Statement WSSS Water Supply and Sanitation Sector

CONTENTS

ABBREVIATIONS I A. Introduction 4 B. Subproject Description 4 C. Scope and Status of the Resettlement Plan 8 D. Overall Objectives of the Resettlement Plan 8 E. Description of Impacts 8 F. Socio-demographic and Economic Profile of the Community 12 G. Information Disclosure, Consultation, and Participation 14 H. Grievance Redress Mechanisms 17 I. Legal Framework 17 J. RF Principles and Entitlements adopted for this Project 18 K. Entitlements for the Project 18 L. Institutional Arrangements 18 M. Resettlement Implementation 20 N. Cost and Budget 20 O. Monitoring and Evaluation 21

Appendix 1: Reference of the Head of Lernamerdz Community ...... 22 Appendix 2: Minutes of Public Consultation ...... 23 Appendix 3: List of Participants in Public Consultation ...... 25 Appendix 4: Scope of Work ...... 26 Appendix 5: Right for Civil Development of the Land ...... 29

iii

DEFINITION OF TERMINOLOGY

1. Beneficiary Community - All persons and households situated within the rural community-town or acquired property, who benefit from the Project.

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

3. Indigenous People (IP) - “Indigenous People” as used in the ADB’s Policy on Indigenous Peoples encompasses a generic concept not easily reflected in a single term. Ethnic Minority is one of the other terms relating to the concept of indigenous people as addressed in the ADB policy. Others are “cultural minorities,” “indigenous cultural communities,” “tribals”, “scheduled tribes,” “natives,” and “aboriginals.” Accepted or preferred terms and definitions vary country by country. “Indigenous Peoples” is the term used in the United Nations documents, and is used by ADB solely for convenience. In Armenia, the term Ethnic Minority is considered more applicable.. In this respect, to qualify for consideration as being covered under the ADB’s IP Policy, an ethnic minority ‘should be regarded as those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.’

4. Improvements - Structures constructed (dwelling unit, fence, waiting sheds, animal pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization.

5. Land Acquisition - The process whereby a Community is compelled by a government agency to alienate all or part of the land a Community owns or possesses to the ownership and possession of the government agency for public purpose.

6. Marz-Community - Armenia is divided into 10 provinces (marz). Yerevan, as the capital of the country, has a special administrative status. The province chief executive is the governor (marz) appointed by the Government. Each province is divided in communities (hamaynk) which are self-governing units and consists of one or more settlements (bnakavayr). Settlements are classified as towns (qaghak) or villages (gyugh). As of 2007, Armenia includes 915 communities (49 urban and 866 rural). Previously having Marz status, Yerevan, now has the status of a community and it has an elected mayor.

7. Vulnerable groups- Distinct group of people, including poor, elderly, disabled and female headed households.

A. Introduction

1. The Armenia Water Supply and Sanitation Sector Project (WSSS) – Phase 2 has been initiated with a view to improving living standard in urban and rural areas with the help of upgrading water supply and sanitation services which, till now, is less than satisfactory. Access to safe water and sanitation facilities have direct impact on poverty reduction and welfare improvement strategy. Apart from investment in physical infrastructure, the program also proposes for long term capacity building and institutional strengthening of the executing agency.

2. This Resettlement Plan (RP) for the WSSS-phase 2 was prepared to mitigate impact of land acquisition in the improvement and rehabilitation of the water distribution system of Armavir Subproject network which includes:

(i) reconstruction and repair of distribution networks, regulating and water metering nodes, valve connections, inlet lines of private houses, communal and public buildings; (ii) rehabilitation and construction of Daily Regulated Reservoirs (DRR), Pumping stations and Chlorination stations, (iii) rehabilitation of water main

3. The RP implementation will require to be linked directly with civil work contract. Both Government and ADB’s policy on land acquisition require that commencement of civil work can only be initiated after AWSC submits the RP completion report to ADB.

B. Subproject Description

4. The water supply and wastewater systems of the settlements included in the Armavir subproject stand out by their being relatively old, worn-out, bad maintenance. There are great water losses in the water supply system. The assessments of the proposed works show the following:

(i) For improvement of water supply to villages Lernamerdz, Amberd, Doghs, Aghavnatun, Aragats and Tsaghkalanj, it is planned to construct new 6x500 m3 DRRs (6 DRRs). (ii) According to the design, it is foreseen to construct 6x500 m3 DRRs (6 DRRs) next to each other at one common land area within the administrative territory of Lernamerdz Community. The location of the parcel in the layout of the 6x500 m3 DRRs is presented in Figure 1. (iii) Replacement of 4.0 km long de315 polyethylene emergency water line on Noyakert- Baghramyan-Aygek water main and the other remaining activities will not require land acquisition, since those structures will be replaced and installed in the current locations. Existing distribution pipelines are located under the road or AWSC owned land.

5. Based on the analyses of the results of works foreseen to be executed in Armavir subproject, it became clear that:

(i) The construction of 6x500m3 DRRs (6 DRRs) in Lernamerdz Community requires permanent land acquisition of communal land. The rehabilitation of DRRs (3 DRRs in Shahumyan Community) and one deep well in Hushakert Community do not require land acquisition, since they already have the land provided to ASWC under property rights for that purpose; as well as

(ii) Replacement of 4.0 km long de315 polyethylene emergency water line on Noyakert- Baghramyan-Aygek water main and the other remaining activities will not require land acquisition, since those structures will be replaced and installed in the current locations. Existing distribution pipelines are located under the road or AWSC owned land. (iii) For the construction of new 6x500 m3 DRRs (6 DRRS), 0.5 ha area is necessary. According to preliminary design, area foreseen for that construction belongs to Lernamerdz Community as a legal entity and not to the residents of Lernamerdz community. 1

(iv) In the result of conducted survey it was recorded that foreseen area is categorized as “other category lands” that is currently not used for any purpose. There are no assets, crops and trees in the land parcel subject to alienation. It is not provided under leasing rights or civil development rights to anyone by the Community. There are no fruitful trees or other structures at the required land plot (photograph of the required land plot is presented as Figure 3). In case of acquisition of the specified land plot, no resident will be affected except temporary inconveniences caused by the construction process. Only Lernamerdz Community will be affected as a legal entity, since hydro technical structure shall be constructed at the Community owned land. Based on the above-mentioned circumstance, present RP will define measures to mitigate the impact.

1 Land Property in the village communities of the Republic of Armenia is classified into two types. First one is Community Land that is not a property of residents of Armenia but a Community as a legal entity, which basically includes village road lands, pastures, reserve and other category lands (foreseen for agricultural or land development purposes, but have never been used for that purpose up to now). Community administration may lease or alienate the lands owned by the Community to other Parties, in accordance with RA Laws and legal acts (RA Land Code). Second type is the Land owned by individuals and entrepreneurs. Registration of Community owned lands as well as lands owned by individuals and entrepreneurs is conducted by the Administration of Community.

Figure 1: Layout map of Lernamerdz community DRRs

LAR impact area

The above-mentioned map indicates the area (red circle), where all 6 DRRs shall be installed next to each other in one area. Since at the preliminary stage there is no detailed design of 6 DRRs, it can be schematically indicated as follows (as per discussion with AWSC specialists).

Figure 2: Layout scheme of 6X500 m3 DRRs

C. Scope and Status of the Resettlement Plan

6. This is a sample RP based on the Preliminary Feasibility Study (PFS) and Involuntary Resettlement Checklist prepared by AWSC as well as preliminary engineering design document . During the RP preparation several meetings and consultations were held with AWSC, RA State Committee of Real Estate Cadastre and affected community authorities and community members. According to the mentioned surveys there is no impact on the private properties. The impacted land is a communal land categorized as “other category land”, which is not being used for any purposes. Thus, there is no affected person at all. It is expected that after the detailed design the impact will be reviewed and updated, if necessary. All data shall be revised as per the final design and technical documents of the project, since changes in dimensions and location of hydro-technical structures are possible at the final design stage.

D. Overall Objectives of the Resettlement Plan

7. The purpose of this sample RP is to identify the potential impacts on the community assets and to ensure that the community is not adversely affected by the Project or left in a worse situation than in a “without project”. The objectives of the proposed RP are as follows: (i) identify the project impact on the Armavir subproject affected area in terms of loss of communal assets; and (ii) to outline procedures of land donation from the community to the project following the requirement as required in the Resettlement Framework of Armenia WSSSP – Phase 2.

E. Description of Impacts

1. The LAR Implications

8. Taking into account that the construction of 6x500m3 DRRs (6 DRRs) in Lernamerdz Community requires permanent land acquisition of communal land an inventory of the land affected by category, type, ownership and usage status has been carried out. The inventory took into account the information from: preliminary design for Armavir subproject, information provided by the community head and the findings of field verification of land ownership and use along the length of the entire system. Visit was made to the affected area together with distance marking and mapping specialists on November 28, 2011 for measurement of affected land and comparison with area layout. The table below summarizes Project impacts on Lernamerdz community.

Table 1: Affected Community Land by Category and Legal Status

No. Size of Total Total Land Permanent/ Cadastral Land Ownership Status Land Using by others Structures, Total the land Community Area temporary code of Category of Land of Leasing or Non-legal trees, (ha) parcel to Administrative Owned by acquisition the land Used Current Land Civil use bushes or be Area in Community (m2) parcel Use of Developing availability other type acquired, hectares in hectares affected Affected Contract of crops (ha) Land availability availability at the affected land 1 0.5 166.3 22 0.5 001 Other Community Not No No No Permanent Category Land used for Lands any purpose

Total 0.5 166.3 22 0.5 Source: Preliminary cadastre and detailed measurement surveys, November, 2011.

9. No negative impacts will occur from the permanent acquisition of the land, as it comprises less than 10% of the overall land resources of Lernamerdz community. In addition, areas required for the construction of 6x500 m3 DRRs have been considered as non-usable land for the village up to now.

10. Lernamerdz community has agreed to donate the affected land area for the use of the Project. The donation procedure will be organized in accordance with RA legislation and ADB SPS (2009).

11. Right for the civil development of the land of Communal subject owned by the Community shall be obtained in accordance with the civil development norms defined by the RA Land Code and other legal act (See Appendix 5). If Community does not possess any land of Communal subject, it can change the category of other purpose Community land making it Communal category, in accordance with the Decree No.30 as of January 17, 2001 of the Government of the Republic of Armenia. The following steps shall be undertaken:

(i) Application to the Head of Community to obtain the right for civil development of the land that is of “Communal object land ” category. Submitting the layout plant of hydro-technical structure on which the location, starting points and other parameters of the required land area are indicated. (ii) Application of the Community Head for changing the category of land to make it the land of communal object category, in accordance with the Decree No.30 as of January 17, 2001 of the RA Government. (iii) Establishment of Tender Committee by the Head of Community for the purpose of organization and conducting of Tender on Civil Development right of the Land. (iv) Obtaining of an integrated reference on the restrictions of target land by submitting the awarded tender document package to the territorial subdivision of State Cadastre of Real Estate adjunct to the Government of the Republic of Armenia. (v) Sealing and certification of the Contract on Civil Development by the Notary. (vi) Registration of civil development right/license in territorial subdivision of State Cadastre of Real Estate adjunct to the RA Government according to the Contract on Civil Development approved by the Notary. (vii) Confirming any voluntary “donation” through written record and certified such as through a designated non-government organization, notary or legal authority

Figure 3: Actual location of DRRs’ installation area.

F. Socio-demographic and Economic Profile of the Community

12. Taking into account that the Project will have an impact on the communal land the socio- demographic and socio-economic profiles of the Lernamerdz community are presented in this chapter. The data has been gathered through the face to face and open-ended interviews conducted with the representatives of Lernamerdz authority in November 2011. Additional meetings were held with the Cadastral Office, AWSC and Territorial Social Service to obtain information on the affected community.

13. Lernamerdz Community consists of 104 households, out of 78 are extended and 26 are nuclear households. Actual population is equal to 498 persons (as of 01.01.2011), from which 259 males and 239 females. Number of adult population makes 468 and number of pensioners – 65 persons. Community has 5 single mothers, 18 families receving family walfare benefits. There is no considerable immigration from the community. Growth of Community population during the last 3 years makes 0.7% in the average agains 0.5% of Armavir Marz and 0.2% of the Country in total.

14. Table 2 indicates the typology of vulnerable households in the community. According to the table there are three types of vulnerable HH: female-headed HH, HH with disabled person and single elderly HH.

Table 2: Vulnerable Households

No Type Number 1. Female-headed HH 5 2. HH with disabled persons 2 3. Single elderly HH 4 Source: Socioeconomic survey, November 2011.

15. Table 3 shows that 33.3 percent of the community population is from 46-65 age group (about 1/3) and another 13.1 percent is over 66 years.

Table 3: Age Composition of Community Members by Gender Age-group Male Female Total % to total population 1 Less than 6 yrs 10 8 18 3.6 2 7–17 24 18 42 8.4 3 18-22 14 12 26 5.2 3 23–45 92 89 181 36.3 4 46-64 85 81 166 33.3 5 65 and above 34 31 65 13.1 Total 259 239 498 100 Source: Socioeconomic survey, November 2011.

16. The majority of community members have secondary education (77.1%). Male and female members’ rates are roughly proportional. See table below.

Table 4: Distribution of Population by Educational Status No Educational Level Male Female Total % No No No Percent 1. Elementary 6 4 10 2.1 2. Incomplete Secondary 52 21 73 15.2 3. Secondary 187 183 370 77.1 4. Vocational/secondary 14 11 25 5.2 special 5. Incomplete Higher 0 0 0 0 6. Higher/ Postgraduate 1 1 2 0.4 7. Total 260 220 480 100 Source: Socioeconomic survey, November 2011.

17. The main sources of income of the population are farming, gardening and cattle breeding (about 78%). The second major source is social protection and social assistance fees and benefits.

18. Based on NSS RA data2, poverty level is 31.3 percent in Armavir Marz. Lermanerdz community almost has the same picture of poverty. One hundred thirty seven members of Lernamerdz community are poor, which is about 27.5% of total population. It is worth to mention that ouf of this number of poor people one hundred and thirty two are extremely poor (See Table 5).

Table 5: Poverty in the Community Category Number of persons Percent 1.Poor 137 27.5 • Extremely Poor • Poor 132 5 2. Not poor 361 72.5 3. Total 498 100 Source: Socioeconomic survey, November 2011

19. Armenians are 73.5% of the total community population. Some Ethnic Minority groups are present in the Community. These groups are mostly Yezidis (about 26.5%) (See Table 6). However, they are fully integrated into the institutional, cultural and economic processes of Armenia and cannot be classified as indigenous people (IPs) as per the ADB’s definition of IPs. Construction and rehabilitation of existing distribution pipelines, DRRs and other remaining activities of Armavir subproject does not affect any ethnic groups.

Table 6: Ethnic Groups HH General Description Ethnicity HHs Number of Head of HH Number of HH Family Members 1. Armenian 79 79 366 2. Yezidi 25 25 132 3. Total 104 104 498 Source: Socioeconomic survey, November 2011

2 NSS calculates the poverty based on average monthly consumption indicators for a member of HH calculated for food and goods baskets. HH is considered extremely poor when average monthly consumption per adult member is no more than extreme poverty line (food basket cost) and poor when average total expenditures are higher than extreme poverty line but low from common poverty line (cost of basket of goods). NSS of RA calculate extreme (food) poverty level as 17,232 AMD, and poverty level as 25,188 AMD.

20. Annual budget of the community is equal to 7 820 000 AMD, from which 5 000 000 AMD is subsidy from RA Government. Remaining amount of 2 820 000 AMD is accumulated from the Land Tax and Property Tax.

21. Community has more than 166,3 ha land. The table below shows the classification of the community lands. See Table 7.

Table 7: Community Land Categories

No Type Land Area (ha) Percent 1. Agricultural land 108.12 65 2. Under residential buildings 18 10.8 3. Under industrial production 13.7 8.2 buildings 4. Reserve land 22.7 13.6 5 Other category lands 3.78 2.3

22. During the above-mentioned Voluntary Donation process, Community (land owner) does not bear any losses in the aspect of income, since the amount of annual charge for civil development of State or Community owned land shall not be less than the annual rate of land tax, according to the Article 48 of the RA Land Code. In case if there is an agreement for higher charge, Community may have an extra income.

G. Information Disclosure, Consultation, and Participation

23. Informal public consultations and surveys were undertaken by the Preliminary Design Consultant in the project affected area in the course of obtaining baseline data during the preliminary design phase of the Armavir subproject. The objectives of these consultations were to assess social issues also.

24. During preparation of the RP, public consultation, meetings and discussion were held with participation of community residents, community administration, representatives of AWSC head office as well as specialists of AWSC servicing the Community, in order to discuss the impacts of the Project and find alternative solutions. Alternative options, opportunities for avoiding possible impacts, forms of compensation for impacts and other issues were considered during discussions. (See MoM and the List of Participants of Public Consultation in Appendix 2- 3).

25. Representatives of the Community suggested taking into account the opinions of administration as well as the residents of the Community at the final designing stage. At the same time, it was suggested to arrange pipeline replacement works along the edges of community roads in order not to cause big damage to the roads and after the completion of works affected areas must be recovered to their original appearance. During discussions, importance of the Project was emphasized by women. They mentioned, half in jest, that availability of drinking water is more necessary for women than for men, explaining that household duties are mainly conducted by women. At the same time, women would like to clarify whether the drinking water tariff will be reduced, taking into account the fact that the water losses will be significantly reduced in the result of Project implementation. For more details See Table 8.

26. This RP will be translated in Armenian. Before loan approval, the RP in English will be disclosed on ADB’s website while the Armenian version will be posted on the AWSC website. Copies of the RP in Armenian will also be made available at each affected local government office.

Table 8 Summary of Stakeholder’s Consultation Meeting DATE LOCA PARTICIPANT AGENCY/ TOPIC DISCUSSED RESPONSE/ AGREEMENTS TION NAME STATUS 07 Dec Lerna In total 20 6 LSG Topic 1: Works to be Responses 2011 merdz participants representativ implemented within the framework - It is expected that construction works es the Project in Lernamerdz will be started in the beginning of community. 2013. 20 community Questions - This condition is obligatory and all the members - When construction works will be roads and territories that may be started? affected by the project will be - Whether affected roads and renovated and at least will be brought 12 male territories will be renovated and to their original condition. participants brought to their original - As it is defined by the local norms appearance after the completion and regulations, DRR and its sanitary 8 female of construction works? zone shall be fenced and guarding participants - Whether any measures are shall be provided from the operator’s foreseen to ensure the safety of side DRR (guarding and fence)? - Construction works inconveniences - Whether construction works will will be just temporary and they will not create inconvenieces for the have any significant effect on the Community population? population. - Whether Community residents - Community members mentioned that agree that DRR will be they agree that DRR will be constructed in Lernamerdz constructed in their Community Community area? Agreements: Head of Lernamerdz community mentioned that required land plot is not in use at that moment and can be provided for the construction of DRR. Topic 2: Possible social affect Responses during the implementation of - This issue must be regulated by the works foreseen within the frames operating organization. of the Project. - It is expected that Community Questions population will be involved in the - Whether drinking water tariff will construction works as a workforce. be reduced in the results of - Works shall be arranged in a way to renovation works? minimize water supply interruptions as - Whether Community population far as possible will be involved as a workforce for - Community members expressed their the foreseen works? gratitude and provide dtheir consent to - Whether water supply will be be involved in the Project. interupted due to the implementation of construction works? - Whether Community agrees to be involved in the Project and is it really necessary for them? Topic3: Possible resettlement Responses issues and their solution options. - There is no impact on private Questions properties. The impact will be on the - What will be the LAR impact on community land. Since the land plot the community? required for the construction of DRR in Lernamerdz Community is not in use and not provided to anyone under leasing or civil development rights.The land will be provided by the Community for the Construction of DRR without any problems related to resettlement issues

H. Grievance Redress Mechanisms

27. A grievance mechanism will be available to allow the Community appealing any disagreeable decision, practice or activity arising from land civil development. Community will be fully informed of its rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey. Care will always be taken to prevent reason of 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 Community, and by establishing extensive communication and coordination among the affected community, the PMU and community head.

28. Complaint & Grievances will be addressed through the process described in Table 9. The below grievance mechanism does not limit the citizen’s right to submit the case to the court of law just in the first stage of grievance process.

Table 9: Grievance Resolution Process Land / Crops Compensation Issues

1. First, a grievance shall be lodged to the SCWS. Within 15 days the SCWS will dismiss the case or recommend its settlements to the AWSC on the Community terms.

2. If no solution is provided by SCWS and AWSC, SCWS must consult the PGC for their decision on whether to settle or go to Court. The PGC will provide a response within 15 days of registering the complaint. The PGC decision must be in compliance with this RF provisions.

3. Should the grievance redress system fail to satisfy the Community, Community can pursue further action by submitting their case to the appropriate court of law.

I. Legal Framework

1. Laws and Regulations of the Republic of Armenia on Land Acquisition and Resettlement

29. In the Republic of Armenia the following legal framework for land acquisition and resettlement is applied: (i) The Civil Code of the Republic of Armenia (adopted on 05.05.1998, entered into force from 01.01.1999, published in Official Bulletin No 1998/17 on 10.08.1998), (ii) The Law on Alienation of Property for the Needs of Society and State (adopted on 27.11.2006, entered into force from 30.12.2006, published in Official Bulletin No 2006/64 on 20.12.2006), (iii) The Land Code of the Republic of Armenia (adopted on 02.05.2001, entered into force from 15.06.2001, published in Official Bulletin No 2001/17 on 15.06.2001), (iv) The Decree No. 30 of the Government of the Republic of Armenia (adopted on as of January 17, 2001).

J. RF Principles and Entitlements adopted for this Project

30. Based on Armenian laws and ADB’s SPS, 2009, core involuntary resettlement principles are developed for this Project which are as follows: (i) Land acquisition, and other involuntary resettlement impacts will be avoided or minimized exploring all viable alternative project designs; (ii) Appropriate redresses mechanisms to solve grievances are established.

K. Entitlements for the Project

31. LAR tasks under the Project will be implemented according to Armenian laws and regulations and ADB Policy.

32. Community Structures and Public Utilities shall be fully replaced or rehabilitated so as to satisfy their pre-project functions

33. Where local communities or individual(s) elect to make voluntary contribution of affected land without compensation in accordance with traditional practices, this shall be acceptable only if it follows the requirements of a negotiated land acquisition as stated in the ADB SPS (2009), paragraph 25 of Appendix 2 and the following safeguards are in place and their implementation is reviewed and confirmed by third independent party;

(i) Full consultation with landowner (Community); (ii) Confirming any voluntary “donation” through written record and certified such as through a designated non-government organization, notary or legal authority (iii) Indicating the time period of effectiveness and the conditions of the servitude; (iv) Attaching the location of the servitude to the contract; and (v) Placing adequate grievance redress mechanisms.

L. Institutional Arrangements

34. 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.

35. The compensation/rehabilitation program will include: the State Committee of Water Systems (SCWS) of the RA Ministry of Territorial Administration as the Project Executing Agency while daily activities will be represented by PCU. For the purpose of execution of assignments of Project Executing Agency, Project Coordination Unit was established though involving individual consultants. At the middle level will be the Project Management Unit (PMU)3. The PMU will be AWSC, a 100% state-owned Closed Joint Stock Company (CJSC). Local self-governments will also be involved in the compensation process at the bottom level (see Figure 4).

36. Project shall be governed by Project Governing Council (PGC) composed of SCWS as the Chair with board members including: State Ministries, AWSC, NGOs as well as Local Self- Government Bodies. SCWS will have overall responsibility for the Project including the preparation, implementation and financing of all LAR tasks and for cross-agency coordination.

3 According to the Decreed No. 876-N as of August 07, 2008 “On the Approval of Measures toward Ensuring of Implementation of the Water Supply and Waste Water Removal Project of Asian Development Bank”

36. AWSC or the PMU will be responsible for general project implementation, and tasked with daily Project activities at subproject level. The PMU will hire a social and resettlement specialist to prepare the required RP including surveys, organizing asset valuation, and community consultation, as well implement and monitor project safeguard compliance of the RPs. All LAR plans will be submitted to the PGC and ADB for approval.

Figure 4: LAR Organogram and Action

Project Governing Council ADB PGC MTA - SCWS PCU Ministry of Finance

AWSC/IA State Committee PMU of Real Estate Court SRS Cadastre

PMU/MARZPETARANS

Ministry of Territorial Administration

State Committee of Real Estate Cadastre Regional Office Plot Verification

Functional role

Grievance settlement

Approval

Finances Community Complaints & grievances (Community Authorities)

37. The Project will have a design and supervision consultant. This will include international and local LAR specialist and the needed survey teams. They will carry out all field-surveys and prepare the needed RPs for the sub-project as required. The Consultants will also oversee RP Implementation and prepare the RP implementation report.

M. Resettlement Implementation

38. Detailed activities and relevant dates and durations for RP Development and Implementation are presented in the table below:

Table 10: RP Development and Implementation Schedule # Action 2012 2013 Task November December January February March A) RP preparation 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1. Finalization of the Project Detailed Design 2. Review of Impacts 3. Conduct Public Consultation 4. Negotiate with the affected community 5. Integrated Detailed measurement/Census data into the RP 6. Finalization of RP 7. Submission of RP to SCWS for approval 8. Submission of RP to RA Government and ADB approval 9. Disclosu re B) RP Implementation 1 Approval of Contract Awards Signing 2 Registration of voluntary donation of affected land 3 Confirming the voluntary “donation” through a designated non-government organization, notary or legal authority 4 Transfer the land ownership right to AWSC 5 RP completion report 6 Notice to proceed for Civil works C) Cyclical/Continuous Tasks 1 Internal Monitoring. Quarterly report to ADB. 2 Grievances Redress

N. Cost and Budget

39. Expenses foreseen for the implementation of the present RP are not significant and mainly include distance marking and mapping cost as well as notary and state cadastre registration charges. The total cost for implementation of this RP is estimated as 77,000 AMD (1 USD = 381.22 AMD, as per CBA exchange rates as of 02.12.2011), breakdown of which is presented below:

Table 11: Estimated LAR cost and Budget No. Description Cost (AMD) 1 Distance marking and mapping of the land, acquired under the civil development rights, by relevant licensed organization. 40,000 2 Fee for Integrated Reference (Cadastral Fee) 10,000 3 Notary verification of land civil development agreements 10,000 4 State registration in territorial subdivision of State Cadastre of Real 17,000 Estate adjunct to the RA Government 5 TOTAL: 77,000

40. Taking into account the fact that Community budget is mostly subsidized by the RA Government and Community budget has no amounts foreseen for such expenses, the cost for implementation of the present RP is covered from the funds of the Government of the Republic of Armenia

O. Monitoring and Evaluation

41. LAR tasks under the Project will be subjected to internal monitoring. Internal monitoring will be conducted by AWSC that will be responsible for monitoring of safeguard compliance and preparation of the required documents on monthly basis. 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. Monitoring resettlement activities of the project shall be implemented by PMU through the following instruments:

(i) Consultations and discussions with community administration (ii) In-depth case studies (iii) Sample survey and public consultation (iv) Key informant interviews

Appendix 1: Reference of the Head of Lernamerdz Community

Reference

Administration of Lernamerdz Community gives its consent to provide the land with 0,5ha area to AWSC CJSC under civil development right, in accordance with RA Laws and Legal Acts.

Head of Community Vardan Mirzoyan

28.11.2011

Appendix 2: Minutes of Public Consultation English Translation of Public Consultation Minutes 07 December 2011 Armavir Marz, Lernamerdz Community

Public Consultation was held on December 07, 2011 in Lernamerdz Community of Armavir Marz that was dedicated to works and resettlement issues to be implemented within the frameworks of Armenia Water Supply and Sanitation Sector II Phase Project financed by Asian Development Bank (ADB).

Participants: Asian Development Bank Consultant: Sos Amirkhanyan Head of Lernamerdz Community, V.Mirzoyan as well as 19 members of the Community (Participant List with relevant signatures is attached) Agenda To conduct Public Consultation with participation of Lernamerdz Community (Community involved in Armenia Water Supply and Sanitation Sector II Phase Project) residents, administration and other interested parties regarding works and resettlement issues to be implemented in Lernamerdz Community. Opening speech and presentation of Public Consultation issues Opening speech was presented by the ADB Consultant, Sos Amirkhanyan. He presented the works to be implemented within the frameworks of ADB Project, particularly works to be executed in Lernamerdz Community that are aimed on the improvement of water supply and quality in the Communities, which will ensure the increase of population livelihood. Then, Sos Amirkhanyan mentioned that any project implemented within the frameworks of ADB shall comply with ADB procedures and guidelines as well as RA Legislation, in accordance with which works shall be organized in a way not to affect anyone and, in case if it is impossible to avoid such an effect, relevant mitigation measures or equivalent compensation mechanisms shall be applied. At the same time, it was mentioned that in accordance with feasibility study, 6*500m3 DRRs (Daily Regulation Reservoir) shall be constructed and water distribution network shall be renovated in Lernamerdz Community. Works to be implemented will not affect any resident-owned land, structure and property. However, as per the feasibility study, Community-owned land will be necessary for the construction of 6*500m3 Daily Regulation Reservoir, foreseen in Lernamerdz Community.

Discussion was held, as follows Participants, particularly, raised the following questions and suggestions: 1. Whether affected roads and territories will be renovated and brought to their original appearance after the completion of construction works?

2. Whether drinking water tariff will be reduced in the results of renovation works?

3. When construction works will be started?

4. Whether Community population will be involved as a workforce for the foreseen works?

5. Whether any measures are foreseen to ensure the safety of DRR (guarding and fence)?

After clarification of questions, participants expressed their gratitude for being involved in the Project and mentioned that there will be no significant temporary affect on Community population in the result of project implementation, and they will regard it with understanding. Administration of the Community mentioned that the land plot foreseen for the construction of DRR is currently not in use and not provided

24 to anyone under leasing or civil development rights, and they are ready to provide that land, without any objection, for the implementation of the Project, since the Project is aimed on the increase of livelihood level of Community population, especially in the aspect of facilitation of women domestic duties.

Head of Community V. Mirzoyan

Appendix 3: List of Participants in Public Consultation

Appendix 4: Scope of Work

For the purpose of solution of problem in water supply and waste water removal sectors and improvement of the quality of service and supplied water, the following project interventions for this sub-project are proposed, according to the preliminary design: Table 12: Subproject proposed works N Settlement Proposed works o. Water main • Replacement of 4.0km long de315 polyethylene emergency water line on Noyakert-Baghramyan- Aygeq water main, 1. Distribution network • Construction of de50-de160 polyethylene water lines with 37 516 m total length in the distribution network; • Construction of water supply chambers, 5 Pcs • Reconstruction of water supply chambers, 45 pcs • Construction of DN50-DN150 buried installation valve nodes , 59 pcs • Reconstruction of 35 multi- stored blocks inlet pipes with de63 diameter water lines construction (average 25.0m length), 875.0, m • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 3000 pcs • Disruption and recovering of asphalt concrete cover, 9400.0, m2 Zvartnots district • construction of de50-de160 polyethylene water lines with 4.0 km total length in the distribution t. Echmiadzin network; • Construction of water supply chambers , 3 pcs • Reconstruction of water supply chambers, 10 pcs • Construction of DN50-DN150 buried installation valve nodes , 15pcs • Reconstruction of 35 multi- stored blocks inlet pipes with de63 diameter water lines construction (average 25.0m length), 375.0m • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 400pcs • Disruption and recovering of asphalt concrete cover, 2000.0 m2 Wastewater system • Reconstruction and construction of sewerage de200-de500 diameter, pipelines and collectors, 500m • Recovering of observation chambers and replacing of manholes, 10Pcs 2. Distribution network • construction of de50-de110 polyethylene water lines with 2140 m total length in the distribution network; v. Amberd • construction of buried valve nodes, 8 pcs., • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m), 130Pcs • demolition and rehabilitation of 200m2 asphalt-concrete cover.

N Settlement Proposed works o. 3. Distribution network • construction of de40-de110 polyethylene water lines with 2498 km total length in the distribution network; • Construction of DN40-DN100 buried installation valve nodes , 8Pcs v. Aygeshat • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 200.0Pcs • Disruption and recovering of asphalt concrete cover, 150 m2 4. Distribution network • construction of de50-de110 polyethylene water lines with 2550m total length in the distribution network; • Construction of DN40-DN100 buried installation valve nodes , 5Pcs v. Dasht • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 140.0Pcs • Disruption and recovering of asphalt concrete cover, 250m2 5. Distribution network • construction of de50-de75 polyethylene water lines with 2.915m total length in the distribution network; • Construction of DN50-DN150 buried installation valve nodes , 13Pcs v. Doghs • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 170Pcs • Disruption and recovering of asphalt concrete cover, 200m2 6. Distribution network • Construction of 6x500m3 DRRs in Lernamerdz village, (optional, shall be decided at the later stage) • construction of de40-de110 polyethylene water lines with 2790m total length in the distribution network;: v. Lernamerdz • Construction of DN50-DN80 buried installation valve nodes , 5Pcs • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 120Pcs • Disruption and recovering of asphalt concrete cover, 50m2 7. Distribution network • construction of de40-de110 polyethylene water lines with 8740m total length in the distribution network; • Construction of water supply chambers , 2Pcs v. Haytagh • Construction of DN50-DN80 buried installation valve nodes , 19Pcs • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 500Pcs • Disruption and recovering of asphalt concrete cover, 1700m2 8. Distribution network v. Musaler • construction of de63-de160 polyethylene water lines with 4093 km total length in the distribution

N Settlement Proposed works o. network; • Construction of DN50-DN150 buried installation valve nodes , 16Pcs • Reconstruction of 13 multi- stored blocks inlet pipes with de63 diameter water lines (average 25m ), 325.0m • Construction of de20-de32private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 216Pcs • Disruption and recovering of asphalt concrete cover, 3000m2 9. Distribution network • Reconstruction of 150m3 DRRs (for Dasht, Shahumyan and Aygeshat villages water supply), 3Pcs • Construction of DN50-DN100 buried installation valve nodes , 9, Pcs v. Shahumyan • Construction of de20-de32 private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 220.0, Pcs • Disruption and recovering of asphalt concrete cover, 150, m2 10. Distribution network • Repair of deep well, replacement of deep-well pump, 1 Pc • Recovering of 60m3 WT construction of de50-de90 polyethylene water lines with 3900m total length in the distribution network; • Construction of water supply chambers , 1, Pcs v. Hushakert • Construction of DN50-DN80 buried installation valve nodes , 7, Pcs • Construction of de20-de32 private house inlet pipes from street water lines, with installation of chambers, including DN15 ball valves. (average length of inlet pipe for 1 house is Laver.=10m ) , 156.0, Pcs • Disruption and recovering of asphalt concrete cover, 50, m2

Appendix 5: Right for Civil Development of the Land 1. Article 48 of the RA Land Code defined that a person can obtain a right for civil development of the land that belongs to the other persons on contractual basis, satisfying the civil norms and rules as well as the requirements on land purpose. He can construct buildings and structures, reconstruct them or demolish as well as administrate and use the property within the term/period of the contract. • Civil development right is provided for the period defined by the Contract and it cannot exceed 99 years if a shorter period is not stipulated by the Law. • Civil development right is subject to the state registration in accordance with the order defined by the RA Law on “On State Registration of Rights to the Property” • Amount of annual charge for the right on civil development at the land owned by the State or Community shall not be less than the annual rate of the land tax. 2. Article 73 defines the land civil development as follows: a) The citizens and legal entities that have been provided with State and community land for use and disposition or purchased those lands in the process of operational activities with real estate obtain the right to implement constructions, reconstructions and destroy the buildings and construction belonging to them by satisfying the requirements of the land-use restrictions, according to the legislation on civil engineering, apartment provision and protection of natural, cultural and historical monuments b) The construction/civil development starts after the adjustment and adaptation of its plan in accordance to defined procedures and obtainment of the corresponding permit from the State governance and local self-governing bodies 3. Article 76 of the RA Land Code defines the procedure for the provision of State and Community owned lands under leasing and civil development rights as follows:

a) The State and community owned lands are provided under the leasing civil development rights in accordance to land zoning and basic settlement plans, for temporary use. b) State and Community lands located to the administrative territory of the Community shall be provided under leasing and civil development rights by the Heads of the Community c) State and Community land located outside the administrative territory of the communities will be provided under leasing and civil development rights by the Marzpets d) The provision of the State and Community owned land under the leasing and civil development conditions shall be performed through tenders.

4. Articles 77, 78, 79 and 80 of the RA Land Code define the order of tender process for the provision of State and Community owned lands under leasing and civil development.

5. Article 80 defined that Leasing and Civil Development Contract shall be signed between the Head of the community or Marzpet or staff official authorized by them and the winner of the tender on the basis of tender protocol.

6. The rights descending from the Leasing and Construction Contract are subject to State registration

7. In accordance with the Article 31 of the RA Law “On State Registration of Rights to the Property”, State registration of the right of real estate leasing shall be carried out by the territorial subdivisions of the state register at the place, where the real property subject to lease is situated. A

Certificate on registration of the right of real estate leasing shall be issued immediately after the state registration of the right of real estate leasing.

8. The Decree No. 30 as of January 17, 2001 of the Government of the Republic of Armenia defines that temporary schemes shall be elaborated for the purpose changing the land category by the initiative of the persons having the property right to the land and, in case if it is foreseen by the Contract on land use (lease) or construction, by the subjects having the relevant rights to the land. Same Decree defines the order for elaboration of temporary schemes for land use.