Detailed Program Safeguard Systems Assessment

Naryn Rural Water Supply and Sanitation Development Program (RRP KGZ 52256)

Project Number: 52256-001 October 2019

KGZ: Naryn Rural Water Supply and Sanitation Development Program

ABBREVIATIONS ADB – Asian Development Bank ARIS – Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency) CSC – construction supervision consultant DDWSSD – Department for Drinking Water Supply and Sewerage Development EA – executing agency EARF – environmental assessment review framework EIA – environment impact assessment EMP – environmental management plan FI – financial intermediary IA – implementing agency IEE – initial environmental examination IFC – International Finance Corporation LARP – land acquisition and resettlement plan Leq – equivalent sound pressure level NGO – nongovernment organization NRWSSD – Naryn Rural Water Supply and Sanitation Development Program O&M – operation & maintenance PC – public consultation REA – rapid environmental assessment RBL – Results-based lending RP – resettlement plan SAEPF – State Agency of Environmental Protection SPS – safeguard policy statement SSEMP – site-specific environmental management plan WHO – World Health Organization

NOTE In this report, "$" refers to United States dollars unless otherwise stated.

CONTENT

A. Program Environmental and Social Impacts and Risks 5 1. Environment 5 2. Involuntary Resettlement 6 3. Indigenous Peoples 6 B. Safeguard Policy Principles Triggered 6 C. Diagnostic Assessment 7 1. Assessment Methodology and Resources 2. Environment 7 3. Involuntary Resettlement 8 4. Institutional Arrangements and Capacity 11 D. Safeguard Program Actions 14

APPENDIXES 1. Safeguard Policy Principles Triggered 2. ARIS Safeguard Capacity & Systems Assessment 3. Field Visit Reports – Environment & Social Safeguards 4. Integrated Risk Matrix 5. Legislative and Institutional Framework in Kyrgyz Republic 6. Rapid Environmental Assessment Checklist – Water Supply 7. Rapid Environmental Assessment Checklist – Sewage Treatment 8. Involuntary Resettlement Checklist for the Rapid Involuntary Resettlement Assessment 9. Site Selection Criteria 10. Comparison of LAR Provisions between ADB Policy and Kyrgyz Legislation 11. Environmental Assessment Review Framework 12. Land Acquisition & Resettlement Framework 13. Suggested Loan Covenant

DETAILED PROGRAM SAFEGUARD SYSTEMS ASSESSMENT

1. The national development strategy, 2018–2040 prioritizes access to clean drinking water and sanitary facilities for all settlements in the country, through construction and rehabilitation of infrastructure, proper operations and maintenance, and financial and institutional sustainability of water supply and sanitation (WSS) systems. The strategy aims to provide clean drinking water to 95% of settlements in the country, with over 2 million people in 653 villages in rural areas having access to a centralized water supply. The results-based lending (RBL) Naryn Rural Water Supply and Sanitation Development Program (NRWSSDP, or program) shall assist government improve water and sanitation systems in 43 villages in Naryn oblast.1 In line with the strategy of the Asian Development Bank (ADB), the program will support the national development strategy to provide access to safe water supply and improved sanitation for rural communities in Naryn oblast.

2. The proposed ADB financing will be aligned with the following impacts: (i) decent living standards for each Kyrgyz citizen achieved, and (ii) health, quality of life improved, and adverse environmental impact reduced by 2026.2 The program will have the following outcome: improved, inclusive, and reliable access to safe WSS services in rural communities in Naryn oblast.

3. At the impact level, the RBL program is aligned with the government’s goal of improving the health and quality of life of residents and reducing adverse environmental impact by 2026.3 The program’s outcome will be an enhanced, inclusive, and reliable access to safe water supply and improved sanitation facilities for rural communities in Naryn oblast, with a priority focus on 64,000 population.4 The ADB shall be providing $27.4 million (83%) as financial support for the program while counterpart funding from the government will be $5.5 million (17%).

4. The two output level results that will contribute to the outcome of the program are as follows:

Output 1: Water supply and sanitation infrastructure expanded and sanitation solutions piloted. The program will include the following infrastructure components: (a) safe water sources, water storage, and treatment and disinfection systems; (b) distribution networks for the target population of 64,000; (c) gender-sensitive safe water and sanitation facilities in selected kindergartens, schools, and health facilities; and (d) piloting of non- networked household sanitation solutions.

Output 2: Institutional capacities strengthened for enhanced sustainability in the rural water supply services and sanitation sector. Output 2 focuses on institutional measures to strengthen WSS systems and improve service delivery. It will (a) establish and strengthen WSUs and secure at least 20% female participation across all WSUs by 2025, and 40% female participation in WSU-related trainings and public consultations; (b) deliver financial management training to further enhance internal control processes and procedures for ARIS and WSUs; (c) adopt and apply a procurement manual and a multiyear procurement action plan; and (d) develop and implement an M&E framework to improve knowledge of asset inventory and data management.

1 Government of the Kyrgyz Republic. 2018. National Development Strategy of Kyrgyzstan for 2018–2040. Bishkek. 2 ADB. 2018. Concept Paper for KGZ: Naryn Rural Water Supply and Sanitation Development Program. Manila. See the design and monitoring framework. 3 Government of the Kyrgyz Republic. 2016. Strategy for Development of Water Supply and Sewerage Systems in Settlements of the Kyrgyz Republic until 2026. Bishkek. 4 If more funds are mobilized during the program period, coverage will be expanded from 64,000 to 90,000 population (which is the estimated population of 43 villages in Naryn oblast identified by the Government for ADB support). 2

5. The RBL is a suitable modality for the proposed program for the following reasons: (i) The government has a sound rural WSS program and a vision for the sector, which provide a clearly defined scope for development partners’ support. (ii) Given ADB’s prior involvement in the rural WSS sector, the RBL modality provides the opportunity for all stakeholders to work together and demonstrate strong commitment to achieving verifiable results. (iii) Institutions in the sector still need strengthening, notably in procurement, internal audit function, and sustainable management, operations and maintenance of water and sanitation facilities at community level; the RBL program offers the opportunity and provides incentives in its program design. (iv) The institutional strengthening mechanisms which are part of the RBL program will pave the way for ADB’s stepped-up engagement in the rural WSS in the near future. (v) The RBL financing modality will sharply reduce transaction costs. On the other hand, an investment loan would involve high transaction costs because the Naryn program design involves multiple small transactions at village and raion level. (vi) The RBL modality will provide a platform for the government to coordinate the support of donors around a common set of agreed results, improving development coordination and resource mobilization for the sector.

6. The eight proposed disbursement-linked indicators (DLIs) for the RBL program are provided in Table 1 below, although none of the DLIs is directly related to implementation of safeguards measures.

7. The indicative program scope will include (i) development and rehabilitation of water supply networks and related infrastructure; (ii) piloting of non-networked sanitation solutions; and (iii) establishment of sustainable operational models, including development of local capacity and community based operational management.

I. Table 1: Program Disbursement-Linked Indicators Disbursement Share of Allocated Total ADB Disbursement-Linked Indicator ($ million) Financing (%) Outcome DLI 1. By 2026, at least 64,000 people in the villages of Naryn oblast use potable 8.22 30 water DLI 2. By 2026, at least an additional 13 village schools and/or kindergartens and 8 2.74 10 health facilities served by improved gender-sensitive water and sanitation facilities Outputs DLI 3. By 2025, detailed design of infrastructure completed for 43 villages 0.55 2 DLI 4. By 2024, infrastructure components for water supply and distribution networks 9.04 33 in place for at least 64,000 population DLI 5. By 2023, non-networked, household sanitation solutions piloted in at least 2 1.37 5 villages with minimum combined total of 660 households DLI 6. Procurement manual developed and implemented for the RBL program from 1.37 5 2020 DLI 7. By 2026, 100% of internal audit staff and finance staff of ARIS trained in internal 1.37 5 audit and financial management, respectively, by a nationally recognized institute DLI 8. By 2026, WSUs fully operational and financially sustainable, with at least 20% 2.74 10 female participation in WSUs, and 40% female participation in WSU-related trainings and public consultations Total 27.40 100 3

ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), DLI = disbursement-linked indicator, RBL = results-based lending, WSU = water supplies and utilities services entity. Sources: ADB; and ARIS.

8. The proposed nature of activities under the NRWSSD program shall consist primarily of small-scale earth works in a number of works contracts for drilling and installation of deep wells, construction of village water supply storage tanks, disinfection stations, main water distribution pipes, water distribution networks, and individual sanitation systems for households and social facilities, including community health clinics and schools. In addition, consultants will be recruited to carry out field surveys and detailed engineering design, design supervision, and construction supervision.

9. This program safeguards system assessment (PSSA) has been prepared for the NRWSSD, which is proposed for ADB financing using a RBL modality. The development of the WSS infrastructure under the RBL program will trigger ADB’s environment, involuntary resettlement, and indigenous peoples safeguards policies as per ADB Safeguard Policy Statement 2009 (ADB SPS 2009).5 The PSSA analyzed safeguards systems of the Kyrgyz Republic and those of the executing agency—the Department for Drinking Water Supply and Sewerage Development (DDWSSD) under the State Agency for Water Resources and of the implementing agency (IA), Community Development and Investment Agency (ARIS)—to assess them against ADB’s policy principles.

10. The safeguards related actions have been provided in the program action plan (PAP) as Table 4 and will be monitored during the program’s implementation. Furthermore, the environmental assessment review framework (EARF) and land acquisition review framework (LARF) have also been prepared and are provided as Appendixes 11 and 12 respectively to enable ARIS to ensure all ADB safeguard policy principle requirements for both environmental and social safeguards issues are fulfilled during the program activities.

11. The PSSA builds on the existing knowledge of ADB, its development partners, concerned government agencies, and ADB staff and consultants who were involved in the preparation of the NRWSSD. The PSSA was prepared through (i) document reviews of existing reports, equivalence assessments, and relevant government laws and regulations; (ii) interviews with representatives of government agencies, namely DDWSSD, ARIS, and relevant nongovernment organizations (NGOs); (iii) multilateral institutions and development agencies working in the sector such as the World Bank (WB), Aga Khan Development Network, European Bank for Reconstruction and Development, and Swiss Development Cooperation; and (iv) field visits to selected program sites.6

12. The process of development of the PSSA has involved conducting in country consultations with key stakeholders for the proposed RBL program. Once the PSSA has been finalized, it shall be disclosed in a timely manner on the ADB website.

13. In addition, monitoring and disclosure during implementation of the RBL program shall be conducted, focusing on the entire program instead of individual activities, consisting of monitoring of the program and preparation of bi-annual environmental monitoring reports for submission to ADB and their subsequent disclosure.

5 ADB. 2009. Safeguard Policy Statement. Manila. 6 Villages: At-Bashy, Jan-Bulak, Kulanak, Baetovo, Chayek, and Kochkor. 4

14. High Risk Activities. Under the program, no high-risk activities shall be permitted that may fall into category A and require preparation of an environmental impact assessment (EIA) study as per ADB SPS 2009. Any activities that might generate the most adverse environmental and social impacts shall fall into this category. Screening to ensure all such activities are excluded from the program shall be conducted using the REA checklists for environment (i) water supply and (ii) sewerage treatment, provided as Appendix 6 and 7 and social safeguard aspects (involuntary resettlement, or IR), provided as Appendix 8. Also, the joint environment and social safeguards screening criteria to be used by ARIS for screening of all activities to ensure all category A activities are screened out is provided as Appendix 9.

15. As part of the screening activity, ARIS must apply the ADB’s Prohibited Investment Activities List (PIAL) and must ensure the condition of permitting purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20% is satisfied by making it mandatory to (Appendix 13): (i) conduct an assessment of the existing structures that need to be demolished/removed, to evaluate the risk of asbestos presence; and (ii) implement a screening of procurement procedures to ensure that asbestos- containing materials will not be used and/or financed by the project.

16. The typology of construction works that will be conducted under the RBL program is provided in Table 2 below, consisting of different subactivities that need to be conducted in order to install a reliable WSS infrastructure at the target villages. As can be observed, the program activities are all site-specific and short-term in nature and would result in minor impacts with no category A activity planned under the program.

17. The EARF document, provided as Appendix 11, provides the likely impacts for the group of activities to be conducted under the RBL program. It can be observed that based on the nature of the proposed activities and the resulting insignificant impacts, the activities fall in category B.

Table 2: Typology of Activities in Program Activities Pictures of proposed tasks Water Supply Infrastructure Drilling and installation of deep wells Tasks involved: ▪ move machinery and staff (2–3 persons) to site ▪ installing machinery at location of borehole ▪ operate machinery and drill to required depth ▪ dispose of sludge/wet mud produced as a result of drilling operation ▪ attach motor/outlet to borehole ▪ remove all piping used for drilling and cleanup site

Construction of village water supply storage tanks and disinfection tanks Tasks involved: ▪ excavate to required depth and develop foundation for tank ▪ conduct masonry works to construct tank of required dimensions and/or install pre-fabricated tank at selected location ▪ paint the tank to ensure anti-corrosion and prevent rusting ▪ remove all leftover construction material and cleanup site

Laying of main water distribution pipes and water distribution networks Tasks involved: ▪ move machinery and staff (approx. 10 persons) to site ▪ use machinery to excavate the pipe corridor by removing soil till required depth to prepare trench for laying of main water pipe ▪ place pipe in the trenches ▪ use the excavated clay and mud for backfilling of trenches ▪ remove all leftover construction material and cleanup site

Laying of pipes for water distribution networks Tasks involved: ▪ move machinery and staff (approx. 4 persons) to site ▪ use machinery to excavate the pipe corridor by removing soil till required depth to prepare small trench for laying of water distribution pipe ▪ place pipe in the small trenches ▪ use the excavated clay and mud for backfilling of the small trenches ▪ remove all leftover construction material and cleanup site

Sanitation System Infrastructure Individual sanitation systems for households and social facilities, including clinics and schools Tasks involved: ▪ move machinery and staff (approx. 6 persons) to site ▪ construct sewerage collection tank ▪ construct toilet building/civil structure and install toilet fittings ▪ install piping to connect sewerage collection tank with toilet ▪ remove all leftover construction material and cleanup site

A. Program Environmental and Social Impacts and Risks

18. The social and environment impacts and risk assessment reveal that the program triggers two ADB safeguards: environment and IR; program does not trigger indigenous peoples safeguards (see section 3).

1. Environment

19. The potential impacts resulting from the program activities are expected to be largely localized, site-specific, and short-term in nature and limited to the construction phase of the project. Thus, the program has been classified as category B for environment. The expected environmental impacts are summarized as follows: 6

(i) dust generation; (ii) noise generation; (iii) solid (excavated) waste disposal; (iv) occupational health and safety hazards for construction workers and community; (v) lack of drainage leading to soil erosion, sedimentation, and health hazards; (vi) contamination of ground and surface water; (vii) waste generation during construction works; (viii) damage to aesthetics of site and/or area; (ix) disposal of sludge from sewage pits during operational phase of project; and (x) fecal ground water pollution by on-site sanitation systems.

20. The short-term construction related impacts and safeguard risks outlined above can be prevented through comprehensive environmental assessment studies based on a detailed impact assessment and preparation of a detailed environmental management plan (EMP) that clearly outlines and necessitates the adoption of standard operating procedures and good practices for construction management as required by ADB’s policy principles.

2. Involuntary Resettlement

21. The potential IR impacts resulting from the program activities are not expected to be significant. The project involves construction of water and sewerage systems, which may require minor IR, thus the program is classified as a category B for IR. Some land will be acquired in villages where there is no suitable land owned by local authorities (the government). The preliminary design will list the land requirements for buildings and structures, and the design will enable the identification of all other locations where private assets will be affected by the project. These will include building of water reservoirs, other supporting buildings such as water substations, and land acquisition for the water pipes going through the private land, if any. The local authorities stated that all efforts will be made to use the government land where land is needed for the program and the pipes will run along the roads using the roads’ right-of-way. This approach will minimize IR and impact on private properties.

22. The detailed impact will be assessed for each village after the final design for the reservoir, pumps, substations, and other necessary structures is completed. When the avoidance of impacts is not feasible, the land acquisition and resettlement plan (LARP) will be prepared as per ADB SPS 2009 principles. The IA/executing agency (EA) uses a resettlement policy framework (RPF) prepared for WB-financed projects, which, to a certain extent, corresponds to ADB SPS 2009 requirements. Nevertheless, a LARF, as per the ADB SPS 2009, has been prepared and annexed to the PSSA as a gap filling tool for the PAP implementation (see Annexure 12).

3. Indigenous Peoples

23. There are no indigenous peoples living in the project area.

B. Safeguard Policy Principles Triggered

24. The program will trigger all 11 environmental principles of ADB SPS 2009 for those activities with potential adverse environmental impacts. The program will screen out any high-risk activity requiring category A as per ADB SPS 2009 on the basis of the safeguard screening guidance provided as Appendix 9.

25. All of the SPS’ 12 IR principles will be triggered, while none of the ADB SPS 2009 nine 7

indigenous peoples principles will be triggered.

26. Details of the comparison of these policy principles with the Kyrgyz national regulations and any gaps identified are provided as Appendix 1.

C. Diagnostic Assessment

1. Assessment Methodology and Resources

27. A comprehensive assessment was carried out by the ADB consultants through a desk review of national policies and legislation safeguards systems, project reports,7 as well as through meetings and interviews with key personnel of the DDWSSD, ARIS, provincial government, and representatives of the different communities where the activities will be conducted. Since ARIS will be the IA for the program, a detailed review of their systems and capacity was conducted.

28. Furthermore, representatives from the WB, Aga Khan Development Network, European Bank for Reconstruction and Development, and European Union were also consulted. These were used to discuss their current environmental and social arrangements and management systems, the institutional capacity of the DDWSSD and ARIS, and institutional linkages in the environmental and IR category screening, environmental and IR impact assessment and preparation as well as implementation of environmental and social management plan.

29. Field visits were also undertaken to selected sites for better understanding of safeguard practices and operation of the regulatory functions. Information about the environmental and IR legal framework, rules, and regulations in the Kyrgyz Republic were reviewed. Equivalence (environmental) assessment reports on safeguards systems from ADB-supported technical assistance projects were also reviewed.

2. Environment

30. The assessment summarizes the results of the diagnostic assessment of the government’s current system (policy and legal frameworks) and identifies significant gaps between the program’s environmental safeguard system and ADB safeguard policy principles related to environment.

a. Policy and Legal Frameworks

31. The environmental legislative and institutional framework of the Kyrgyz Republic is provided as Appendix 5. The Kyrgyz republic’s national environmental safeguard system is broadly aligned with the ADB policy principles. However, there are certain gaps, which have been identified in the comparison of the ADB policy principles with the Kyrgyz national environmental regulations is provided as Table 1 in Appendix 1.

32. The national assessment requirements do not distinguish between direct and indirect impacts, do not mention cumulative impacts or induced impacts while there is no provision for gender aspects. Also, the national requirements do not refer to global impact, including climate change. Furthermore, the EMP content and format are not clearly laid out and women participation during consultations is not required as per national requirements. Also, the national

7 ADB. 2018. Technical Assistance to the Kyrgyz Republic for Preparing the Naryn Rural Water Supply and Sanitation Development Program. Manila. 8

system does not require to apply technologies and practices that might be consistent with international good practices.

b. Implementation Practices

33. At present, ARIS prepares the required safeguard framework documents (such as environmental and social management framework (ESMF) for WB-funded programs) and uses these documents for safeguards monitoring of the activities. The ARIS safeguards specialist based in the head office oversees the safeguards monitoring which is conducted by two technical site supervisors using the ESMP, prepared as part of the ESMF document.

34. Any noncompliance observed during the safeguards monitoring is documented and redressed by ensuring the contractor implements the necessary corrective measures. Also, any complaints or grievances received during the project works are promptly handled through an efficient and effective grievance redress mechanism.

35. In parallel although completely disconnected to the monitoring conducted by ARIS, the municipal government also engages construction supervisors that oversee the contractor’s activities and report directly to the municipal government.

c. Gaps Identified

36. Insufficient safeguards human resources at ARIS to oversee RBL program. At present, the ARIS safeguards staff is fully engaged in monitoring different donor funded projects. The existing workload of each of the ARIS safeguards staff of ARIS does not permit them to take on any additional workload, such as considerable workload to be expected from the ADB RBL program.

37. Lack of experience in implementation of ABD RBL programs. The ARIS staff has experience in implementing WB -funded programs and has prepared and monitored ESMFs in accordance with WB policy principles, which have been assessed to be in compliance to the requirements of the ADB policy principles.

38. However, there are particular requirements of ADB relating to monitoring such as monitoring methodology, use of specific monitoring templates, and frequency of monitoring that can differ from the WB.

3. Involuntary Resettlement

a. Policy and Legal Frameworks

39. The legal framework of the program is based on the legislation of the Kyrgyz Republic related to land acquisition and resettlement (LAR) and ADB SPS 2009. The main provisions are summarized in next sections, while the details are provided in the LARF.

b. Land Acquisition and Resettlement Legal Framework of the Kyrgyz Republic

40. Legal framework of the Kyrgyz Republic consists of the following normative legal acts 9

having the listed enforcement hierarchy:8 (i) Constitution of the Kyrgyz Republic. The law introducing amendments and additions to the Constitution recognizes diversity of ownership forms and guarantees equal legal protection to private, state, municipal, and other types of ownership (Article 12, Clause 1); (ii) Civil Code: Part 1 (dated of 8 May 1996; last amended on 30 July 2015). Provides that a party whose rights are violated can claim full compensation for its losses, unless the national legislation or agreements (contracts) prepared in line with the national legislation indicate the contrary (Article 14, Clause 1); (iii) Land Code. Land can be acquired (purchased) for state and public purposes based on agreement between the authorized body and landowner or land user. In case the landowner or land user disagrees with the acquisition (purchase), the authorized body can within 2 months turn to the court with the request to carry out the acquisition with the payment to the owner or land user the compensation for the land (Article 68, Clause 1);9 (iv) Decree of the President. Regulates registration of sale, exchange, pledge, lease, bequeath of rights to use land parcels (shares); (v) Resolution of the Parliament. Regulates land ownership and uses of land; and (vi) Normative legal acts of representative local authorities. Regulates local authorities’ responsibility to water and pastures use.

41. The details on the relevant Kyrgyz laws and regulations are provided in the LARF.

c. Involuntary Resettlement Safeguards Requirements of Asian Development Bank Safeguard Policy Statement 2009

42. The three important elements of ADB’s IR policy are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. For any ADB operation requiring IR, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the 12 key policy principles for IR (see the LARF for details). These key policy principles can be summarized as follows: (i) screen the project early on to determine past, present, and future IR impacts and risks; (ii) carry out meaningful consultations with affected persons, host communities, and concerned NGOs; (iii) improve, or at least restore, the livelihoods of all displaced persons; (iv) provide physically and economically displaced persons with needed assistance; (v) improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards; (vi) ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non- land assets;

8 Government of the Kyrgyz Republic. 2009. Law of the Kyrgyz Republic on Normative Legal Acts. Bishkek. 9 Government of the Kyrgyz Republic. 1999. Land Code of the Kyrgyz Republic. Bishkek. There are certain exceptions to application of the mechanism, such as land plots provided for servicing a housing building and for private subsidiary farming shall not be involuntarily resettled for state, municipal, and public needs.

(vii) prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule; (viii) disclose a draft and final resettlement plans; (ix) pay compensation and provide other resettlement entitlements before physical or economic displacement; and (x) monitor and assess resettlement outcomes.

43. The ADB SPS 2009 distinguishes three categories of displaced persons, with variable compensation needs: (i) legal displaced persons: displaced persons with formal legal rights to land lost in its entirety or in part; (ii) legalizable displaced person: displaced persons without formal legal rights to land lost in its entirety or part but who have claims to such lands that are recognized or are recognizable under national law; and (iii) non-legal displaced persons: displaced person who have neither formal legal rights nor recognized/recognizable claims to land lost in its entirety or in part.

44. For categories (i) and (ii) above, borrowers are expected to provide compensation at full replacement cost for lost land, structures, land improvements, and relocation assistance. For displaced persons in category (iii) (informal settlers), the borrower/client is expected to compensate all assets other than land (i.e., buildings, trees, cops, businesses) at full replacement cost. The risk of opportunistic encroachment on land designated for acquisition by the project is managed through a cut-off date.

45. Compensation for lost land may be in the form of replacement land (preferable if feasible) or in cash. When land for land compensation is not feasible, cash compensation can be valued based on market rates or, in absence of land markets, through other methods (i.e., land productivity or reproduction costs).10 Independent from the valuation method used, compensation is to be provided at full replacement cost. This includes: (i) transaction costs; (ii) interest accrued; (iii) transitional and restoration costs; and (iv) other applicable payments, if any. Compensation for all other assets is to be provided in cash at replacement cost without deductions for amortization, salvaged materials, and transaction costs.

d. Implementation Practices

46. At present, for other projects and programs, ARIS social safeguards specialists, with assistance of the local government bodies such as community drinking water users’ unions (CDWUUs) architecture departments, and school authorities, prepare the required social safeguard framework documents (such as rapid assessment framework (RAF) for WB-funded programs) and uses the document for preparation of a resettlement action plan (RAP) and safeguards monitoring of the activities involving IR. The ARIS safeguards specialist, based in the head office, oversees the field-based safeguards monitoring, which is conducted on a daily basis, by two technical site supervisors. Also, any complaints/grievances received during the project implementation are promptly handled through an efficient and effective grievance redress mechanism (beneficiary feedback mechanism, or BFM).

10 Footnote 5. Appendix 2, para. 10, in absence of well-established land markets land compensation will be provided based on a thorough study of the land transaction, use, cultivation, and productivity patterns in project areas. One method accepted by ADB in such a situation would be to provide land compensation based on land productivity or land reproduction costs. 11

e. Gaps Identified

47. Comparison of LAR provisions between ADB policy and Kyrgyz legislation summarizes the gaps between the IR requirements of the ADB SPS 2009 and of the Kyrgyz laws and regulations through a direct comparison. The exercise takes into consideration both formal principles (principles) and the way these principles are applied in practice by ADB and the government (application). The summary of the gaps in policies is presented in Appendix 10 and the LARF.

48. Lack of systematic screening for impacts, detailed measurement surveys (DMS), and independent valuation of affected assets. ARIS has a substantial experience in implementation of the WB projects, however, ARIS did not implement any ADB funded programs, so lack of familiarity with ADB SPS 2009 needs to be mitigated. In particular, the LAR tasks should be conducted in accordance to ADB SPS 2009. A professional DMS organization and an independent valuator to measure and valuate the affected land and assets as per ADB SPS 2009 requirements, need to be engaged when the LARP is prepared.

49. Gaps based on differences between the national laws and practices and principles of ADB SPS 2009. these gaps are reconciled during the implementation of numerous projects in Kyrgyzstan financed by ADB. The prepared LARF as a part of PSSA describes those gaps and reconciliation mechanisms.

50. Need for additional safeguards human resources at ARIS to oversee RBL program. At present, the ARIS safeguards staff is fully engaged in monitoring different donor funded projects. ARIS should have a separate safeguard personnel, which will be exclusively dedicated to the RBL Program.

4. Institutional Arrangements and Capacity

a. Community Development and Investment Agency

51. Community Development and Investment Agency (ARIS) is the IA for the proposed RBL program. This program is expected to be implemented by ARIS in partnership with the Naryn oblast municipality, the village CDWUU, and the private sector.

52. ARIS has extensive experience in the preparation and implementation of various WSS network projects. At present, ARIS manages a total of nine externally funded projects including International Fund for Agricultural Development and the World Bank, out of which, seven projects require compliance with the donors’ environment and social safeguard requirements.

53. ARIS has a safeguards department consisting of four social and environmental safeguards specialists who manage social and environmental enquiries, information sharing, public hearings and consultations, disclosure of information, and project related grievances. Each safeguard specialist is assigned to a specific project and based on the specific safeguard requirements of each donor, the required documentation is prepared, and monitoring is conducted accordingly.

54. A review of the institutional capacity of ARIS demonstrated that it has experience in implementing and managing projects from both environmental and social safeguard aspects, including preparation of an environmental and a resettlement framework and compliance with WB 12

and other donors' safeguards requirements. The same principles will be applied to the project. Other partners, such as Naryn oblast municipality, CDWUU, and the private sector need familiarization and training in ADB SPS 2009 and its practical project applications.

55. The feedback from the WB safeguards consultant was generally positive on ARIS’ performance in ensuring compliance with the safeguard requirements. The consultations with the Kyrgyz water association NGO also confirmed ARIS’ expertise, experience, and capacity in project management, preparation, implementation, and monitoring.

56. Prior to the implementation of any ARIS project, initial preparatory work is being carried out. ARIS engages consultants (usually from the design institute that is preparing the detailed design of the project) to prepare the environmental impact assessments (EIA) to obtain the national approval from the State Agency of Environmental Protection and Forestry (SAEPF), while the ESMF, which is specific for WB safeguard requirements, is prepared by the ARIS safeguards staff themselves that covers all activities to be implemented under the project umbrella.

57. In order to monitor projects effectively, ARIS assigns two technical supervision consultants at each project site (one senior and one junior engineer) that have the joint responsibility of conducting both technical monitoring as well as environmental and social safeguards monitoring on a daily basis. These two technical supervision consultants report directly to the ARIS safeguards staff based in the head office in Bishkek. The ARIS safeguard staff visit the project site once a month to conduct due diligence monitoring and verify the results being provided.

58. ARIS has a very effective grievance redress mechanism implemented at each site with any complainant able to directly complain to their public relations department, if the complainant so desires.

59. However, the ARIS safeguards team, as emphasized by its own team members, lacks the experience of working on ADB funded projects and thus are not familiar with the RBL system as well as the requirements of the ADB SPS 2009 and its monitoring requirements. ARIS mentioned that their safeguard specialists lack experience in ADB financed projects and they would need to hire a safeguards specialist who will be dedicated exclusively to the upcoming ADB RBL project to manage social and environmental enquiries, information sharing, public hearings and consultations, disclosure of information, and projects-related grievances. A summary of the ARIS capacity status and requirements are provided as Table 3 below.

60. A detailed assessment of the capacity and systems of ARIS has been conducted and is provided as Appendix 2.

b. Department for Drinking Water Supply and Sewerage Development

61. The DDWSSD under the State Agency for Water Resources is a state body, and as the EA for the rural WSS sector, oversees the implementation of different project activities in the Kyrgyz Republic. As the EA, it is not directly involved in implementation or monitoring aspects of environmental and social safeguard issues and thus does not have any safeguards staff. It is the SAEPF that is the regulator for environmental safeguards in the republic. In relation to the WB projects presently under implementation,11 the DDWSSD is the EA and as mentioned above, only oversees the implementation of project activities by ARIS. It should be mentioned that ARIS does

11 The World Bank. 2017. Sustainable Rural Water Supply and Sanitation Development Project – Additional Financing. Washington, DC. 13

not report to DDWSSD for environmental and social safeguards due diligence and monitoring related issues.

Table 3: ARIS Capacity Status & Requirements Description of RBL Additional Capacity Program ARIS Capacity Status ADB Requirements Required Provision of improved ▪ Extensive experience in ▪ 11 policy principles on ▪ Hiring of one Safeguards water supply and preparation and environment (based on staff at ARIS to oversee sanitation systems in 43 implementation of water screening, impact the Program, preferably villages in Naryn oblast, supply and sanitation assessment, examining with prior experience of Kyrgyz Republic network projects of alternatives, avoid ADB project monitoring ▪ Total of nine donor and/or minimize adverse ▪ Trainings on funded projects being impacts through environmental managed at present preparation of an EMP, management and EMP ▪ Safeguards department conducting meaningful implementation as per consisting of four social consultations and GRM ADB SPS 2009 and environmental establishment, timely safeguards specialists disclosure of EIA/IEE ▪ Experienced in ESMF and EMP documents, implementation and implementation and monitoring for WB monitoring using EMP, funded projects on water avoidance of critical supply and sanitation habitats, application of ▪ Effective safeguards pollution prevention monitoring mechanism in measures, providing place workers with safe and ▪ Effective GRM in place healthy working at each site conditions and conserve ▪ Not familiar with ADB cultural resources) SPS requirements and RBL modality. ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), EIA = environmental impact assessment, EMP = environmental management plan, ESMF = environmental and social management framework, GRM = grievance redress mechanism, IEE = initial environmental examination, RBL = results-based lending, SPS = Safeguard Policy Statement, WB = World Bank.

D. Safeguard Program Actions

62. Based on the assessment findings, safeguard-related actions are proposed in the PAP to address the gaps and mitigate the identified risks.12 In general, there is a need for further strengthening of the existing safeguards capacity at ARIS, particularly relating to ADB SPS 2009 requirements. The hiring by ARIS of a safeguard specialist (environment and social) dedicated for the RBL program is necessary. Furthermore, capacity building through trainings on safeguard aspects (environment and social) is necessary for successful implementation of the RBL program. Further, minor actions are provided in detail in Table 4 below.

63. The EARF and LARF documents have been prepared and provided as Appendixes 11 and 12 respectively in order to ensure all ADB safeguard policy principle requirements for both environmental and social safeguards issues are fulfilled during the program activities.

12 Land acquisition and resettlement framework (attached as Appendix 12). 15

Table 4: Safeguards Program Actions – Environment, Involuntary Resettlement, and Indigenous Peoples Gap Proposed Action Indicator/Targets Responsibility Timeframe Environment Insufficient safeguards Engage one dedicated Engage one dedicated ARIS Prior to signing of Contract capacity for environmental environmental safeguards Environmental Safeguards Specialist with ARIS as the IA for the planning, implementation and specialist at ARIS for smooth at ARIS with experience of preparing RBL program compliance monitoring implementation of the program safeguards assessments as per ADB SPS compliance requirements. Lack of experience in Develop capacity at (i) ARIS, (ii) Trainings on environmental ARIS and ADB From RBL Program implementation of ADB RBL Municipal governments in management and EMP commencement onwards for projects Naryn oblast (iii) DDWSSD implementation as per ADB SPS a period of 6 months. 2009 Environmental monitoring at Engaging of Environmental Environmental specialist staff hired ARIS At commencement of RBL project sites being conducted specialists for monitoring of for monitoring of works at sites to program by technical (engineering) works at sites in order to ensure ensure implementation of EMP(s) project staff instead of implementation of EMP(s) engaging Environmental specialists No Environmental Screening REA Checklists for Water Screening of all activities according ARIS At signing of Contract with Checklist used in the national Supply and/or Sewage to REA Checklist(s) to ensure no ARIS system for screening and Treatment to be used for category A activity is permitted categorization of activities screening of all activities Gaps identified between ARIS will ensure the EARF All EIA prepared by consultants of ARIS At signing of Contract with environmental national document is used by the ARIS are aligned and fulfill the ADB ARIS legislation and ADB consultants engaged by them safeguard policy principles safeguard policy principles for preparing the EIA to obtain requirements by filling all gaps for Environment the national approval from the between the national legislation and SAEPF. ADB safeguard policy principles.

Use of the EARF as a guideline by the ARIS consultants will ensure all gaps identified between the national regulations and the ADB SPS are overcome. Involuntary Resettlement Lack of professional detailed Following provisions outlined in Screening of the area for the ARIS with During the preparation of the measurement surveys the LARF; Engagement of a involuntary resettlement; Exact involvement of local LARP/or Due Diligence qualified detailed measurement impacts are measured and authorities’ bodies Report surveys specialists for the DMS documented with the presence of and inventory of losses of the affected person and local authorities. project affected assets. LARP prepared. In case of non- impact, Due Diligence Report is prepared 16

Gap Proposed Action Indicator/Targets Responsibility Timeframe Lack of independent Engagement of a certified, Calculation of compensation based ARIS Detailed design period – valuation of affected assets independent valuator for on a replacement cost of the during the preparation of the valuation of the project affected affected assets as per ADB SPS LARP assets. 2009 Lack of safeguards capacity Engagement of a social Minimized project impact; EA/IA After the project becomes for resettlement planning, safeguard specialist within the Ensured project compliance with effective implementation and IA and supervision consultant social safeguards. compliance monitoring Lack of experience in Training of EA and the local Strengthened capacity of ARIS and TRTA After the project becomes implementation of RBL authorities in ADB SPS 2009 other Naryn local authorities effective financed by ADB requirements. organizations in effective management of ADB financed projects. Gaps identified between ARIS will ensure the LARF All IR impact assessments (LARP) ARIS After the project becomes national legislation on land document is used by the prepared by consultants of ARIS are effective acquisition and resettlement consultants engaged by them aligned and fulfill the ADB safeguard and ADB safeguard policy for preparing the LARP. policy principles requirements by principles for involuntary filling all gaps between the national resettlement Use of the LARF as a guideline legislation and ADB safeguard policy by the ARIS consultants will principles. ensure all gaps identified between the national regulations and the ADB SPS are overcome. Indigenous Peoples N/A ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), DDWSSD = Department for Drinking Water Supply and Sewerage Development, DMS = detailed measurement survey, EA = executing agency, EARF = environmental assessment and resettlement framework, EIA = environmental impact assessment, EMP = environmental management plan, IA = implementing agency, IEE = initial environmental examination, IR = involuntary resettlement, LARF = land acquisition and resettlement framework, LARP = land acquisition resettlement plan, RBL = results-based lending, REA = rapid environmental assessment, SAEPF = State Agency of Environmental Protection and Forestry, SPS = Safeguard Policy Statement, TRTA = transaction technical assistance.

APPENDIXES

APPENDIX 1: SAFEGUARD POLICY PRINCIPLES TRIGGERED

SAFEGUARD POLICY PRINCIPLES TRIGGERED

Table 1: Safeguard Policy Principles Triggered – Environment, Involuntary Resettlement, and Indigenous Peoples National System requirements & Gaps with ADB Policy Principles SPS Environment Principle 1: Use a screening process for each proposed • ARIS, as the IA, will screen all project activities at project, as early as possible, to determine the the earliest in order to screen out any category A appropriate extent and type of environmental activities. assessment so that appropriate studies are undertaken commensurate with the significance of potential impacts and risks. Principle 2: Conduct an environmental assessment for • The national environmental assessment each proposed project to identify potential direct, requirements do not distinguish between direct and indirect, cumulative, and induced impacts and risks to indirect impacts, do not mention cumulative impacts physical, biological, socioeconomic (including impacts on and do not mention induced impacts. livelihood through environmental media, health and • There is no provision for gender aspects. safety, vulnerable groups, and gender issues), and • The EIA regulations do not provide any reference to physical cultural resources in the context of the project’s global impact, including climate change. area of influence. Assess potential trans boundary and global impacts, including climate change. Use strategic environmental assessment where appropriate. Principle 3: Examine alternatives to the project’s • No gaps with this principle. location, design, technology, and components and their potential environmental and social impacts and document the rationale for selecting the particular alternative proposed. Also consider the no project alternative. Principle 4: Avoid, and where avoidance is not possible, • EIA regulations mention the development of the minimize, mitigate, and/or offset adverse impacts and EMP in the context of conducting Stage 2 of EIA, but enhance positive impacts by means of environmental provide no details on the content and format of the planning and management. Prepare an EMP that EMP. includes the proposed mitigation measures, environmental monitoring and reporting requirements, related institutional or organizational arrangements, capacity development and training measures, implementation schedule, cost estimates, and performance indicators. Key considerations for EMP preparation include mitigation of potential adverse impacts to the level of no significant harm to third parties, and the polluter pays principle. Principle 5: Carry out meaningful consultation with • EIA regulations require providing access of the affected people and facilitate their informed participation. general public to EIA documentation at Project’s Ensure women’s participation in consultation. Involve Initiator (PI) place or/and other accessible locations stakeholders, including affected people and concerned such as local administrations, local branches of NGOs, early in the project preparation process and environment committee. Also, it mentions disclosure ensure that their views and concerns are made known to of the documentation at the PI website, if any. and understood by decision makers and taken into • The requirement does not distinguish between draft account. Continue consultations with stakeholders and final EIA documentation. throughout project implementation as necessary to • Women’s participation is not required. address issues related to environmental assessment. Establish a GRM to receive and facilitate resolution of the affected people’s concerns and grievances regarding the project’s environmental performance. Principle 6: Disclose a draft environmental assessment • The EIA regulations do not specifically mention (including the EMP) in a timely manner, before project affected persons, but general public and public appraisal, in an accessible place and in a form and organizations. language(s) understandable to affected people and other • Legislation does not specifically ensure participation stakeholders. Disclose the final environmental of women in public consultation. 20

National System requirements & Gaps with ADB Policy Principles SPS assessment, and its updates if any, to affected people • Legislation does not specifically ensure involvement and other stakeholders. of NGOs or affected people in public consultations, rather it focuses on the general public, including people and public organizations. • The timeframe for public consultations includes all stages of EIA, including screening and scoping. • EIA regulations provide no requirements for establishing a grievance redress mechanism. The law on solicitations regulates consideration of complaints, claims and suggestions submitted to local administrations or government bodies orally or written, including email. Principle 7: Implement the EMP and monitor its • EIA regulations mention the development of the effectiveness. Document monitoring results, including EMP in the context of conducting Stage 2 of EIA, but the development and implementation of corrective provide no details of the content and format of the actions, and disclose monitoring reports. EMP. • The responsibility of EIA developer includes development of a resource environmental monitoring program that includes monitoring of environmental aspects during construction, implementation and decommissioning of the project. • The need in environmental monitoring program is defined based on the results of the environmental assessment. • An Environmental Impact Statement developed as a result of Stage 2 of EIA should suggest an environmental monitoring plan. • There is no provision in the national legislation on documentation and disclosure of monitoring reports. Principle 8: Do not implement project activities in areas • No activities shall be conducted in any areas with of critical habitats, unless (i) there are no measurable critical habitats and will be screened out since they adverse impacts on the critical habitat that could impair will in all likelihood fall in category A, which are not its ability to function, (ii) there is no reduction in the permitted under the ADB RBL program. population of any recognized endangered or critically endangered species, and (iii) any lesser impacts are mitigated. If a project is located within a legally protected area, implement additional programs to promote and enhance the conservation aims of the protected area. In an area of natural habitats, there must be no significant conversion or degradation, unless (i) alternatives are not available, (ii) the overall benefits from the project substantially outweigh the environmental costs, and (iii) any conversion or degradation is appropriately mitigated. Use a precautionary approach to the use, development, and management of renewable natural resources. Principle 9: Apply pollution prevention and control • The national environmental legislation does not technologies and practices consistent with international specify that technologies and practices consistent good practices as reflected in internationally recognized with international good practices should be applied. standards such as the World Bank Group’s • Appendix 10 to EIA Regulations ‘Requirements to Environmental, Health and Safety Guidelines. Adopt developing measures on avoidance, minimization, cleaner production processes and good energy and/or compensation of adverse impacts on the efficiency practices. Avoid pollution, or, when avoidance environment during construction, implementation is not possible, minimize or control the intensity or load and decommissioning of facilities of intended of pollutant emissions and discharges, including direct economic activities’ suggests that adequacy and and indirect greenhouse gases emissions, waste efficiency of control technologies needs to be generation, and release of hazardous materials from substantiated and assessed in order to define the their production, transportation, handling, and storage. need of development of additional measures. Avoid the use of hazardous materials subject to international bans or phase-outs. Purchase, use, and manage pesticides based on integrated pest 21

National System requirements & Gaps with ADB Policy Principles SPS management approaches and reduce reliance on synthetic chemical pesticides. Principle 10: Provide workers with safe and healthy • No gaps with this principle. working conditions and prevent accidents, injuries, and disease. Establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities. Principle 11: Conserve physical cultural resources and • No gaps with this principle. avoid destroying or damaging them by using field-based surveys that employ qualified and experienced experts during environmental assessment. Provide for the use of “chance find” procedures that include a pre-approved management and conservation approach for materials that may be discovered during project implementation. Involuntary Resettlement Principle 1: Screen the project early on to determine • LAR planning as per national regulations entails past, present, and future involuntary resettlement similar but less extensive/simpler assessment/survey impacts and risks. Determine the scope of resettlement efforts than ADB Policy. planning through a survey and/or census of displaced • In practice, the IA, ARIS, follow WB social persons, including a gender analysis, related to safeguards requirements on projects which trigger resettlement impacts and risks. involuntary resettlement. This screening usually is carried out jointly by ARIS staff, local government bodies such as Department for Architecture, CDWUUs, schools, kindergartens representatives and other stakeholders) to identify the types and nature of potential adverse impacts and to provide adequate measures to avoid, minimize and address them. However, there is no specialized staff (DMS, valuation etc.) involved in screening and impact assessment process. • ARIS will conduct early screening for IR immediately after the scope of the project is finalized for each village with involvement of specializes staff (DMS specialists, valuator etc.) and based on the provisions of LARF prepared as a part of the PSSA. Principle 2: Carry our meaningful consultations with • National regulations require that matters of local affected persons, host communities, and concerned importance to be publicly discussed with local NGOs. Inform all displaced persons of their entitlements authorities, but no requirement to consult directly the and resettlement options. Ensure their participation in DPs. Each state agency/ministry should define a planning, implementation, and monitoring and evaluation process for registering and reviewing the concerns of resettlement programs. Pay particular attention to the and claims from citizens. needs of vulnerable groups, especially those below the • The IA will apply the existing, currently used BFM poverty line, the landless, the elderly, women and specially established and used for other donors children, and Indigenous Peoples, and those without financed projects. The BFM is exclusively used for legal title to land, and ensure their participation in the projects/ program managed by the IA and consultations. Establish a grievance redress mechanism includes a grievance redress mechanism for any to receive and resolve the affected persons’ concerns. resettlement complaints. It is a process in which Support the social and cultural institutions of displaced prompt, objective information is received and persons and their host population. Where IR impacts and appeals, claims, suggestions, complaints, requests, risks are highly complex and sensitive, compensation positive feedback etc. related to all ARIS projects is and resettlement decisions should be preceded by a considered and evaluated. The BMF is the part of social preparation phase. the LARF developed for the program and it will enable project beneficiaries and other citizens of the Kyrgyz Republic to provide feedback on the project. Principle 3: Improve, or at least restore, the livelihoods • National regulations ensure the entitlement of DPs of all displaced persons through (i) land-based with formal title to be compensated for lost land/other resettlement strategies when affected livelihoods are assets an market cost, while non-legal DPs have no land based where possible or cash compensation at right to be compensated for land and non-land 22

National System requirements & Gaps with ADB Policy Principles SPS replacement value for land when the loss of land does assets. Notion of livelihood rehabilitation not not undermine livelihoods, (ii) prompt replacement of sanctioned by national law. assets with access to assets of equal or higher value, (iii) • At the early stage of the project when the detailed prompt compensation at full replacement cost for assets design is not completed, the IR assessment was that cannot be restored, and (iv) additional revenues and based on the field visits, nature of the project and services through benefit sharing schemes where discussions with the key stakeholders from the local possible. authorities. It is expected that the impacts that are likely to be triggered will be minor and thus, the people’s livelihood will not be severely affected. Nevertheless, the EA/IA will prepare a LARP in accordance with provisions of developed LARF and ensure that all requirements specified in this principle are fulfilled. Principle 4: Provide physically and economically • This principle might be partially triggered as no displaced persons with needed assistance, including the physical displacement and relocation of people is following: (i) if there is relocation, secured tenure to expected. relocation land, better housing at resettlement sites with • The EA/IA will ensure that all economic impacts are comparable access to employment and production properly assessed and compensated before the opportunities, integration of resettled persons works begin. In case of unforeseen physical economically and socially into their host communities, relocation, this principle will be fully triggered. and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Principle 5: Improve the standards of living of the • No special consideration is given to vulnerable DPs. displaced poor and other vulnerable groups, including • The proposed ADB financing will be aligned with the women, to at least national minimum standards. In rural following impacts: (i) decent living standards for each areas provide them with legal and affordable access to Kyrgyz citizen achieved, and (ii) health, quality of life land and resources, and in urban areas provide them improved and adverse environmental impact with the relevant income sources and legal and reduced by 2026. The program will have the affordable access to adequate housing. following outcome: improved inclusive and reliable access to safe water supply and sanitation services in rural communities in Naryn oblast. • The needs of vulnerable groups, such as those living below the poverty line, the landless, the elderly, women, children and those without a legal title to land will be determined during the LARP preparation in accordance with provisions defined by developed LARF and the principle will be followed as per the SPS 2009. Principle 6 and Principle 11: Establish procedures in a • As per national legislation, the property can be transparent, consistent, and equitable manner if land acquired only after full compensation is paid to DPs acquisition is through negotiated settlement to ensure • At previous ARIS projects, the IR impact was that those people who enter into negotiated settlements insignificant. “The Ministry of Agriculture and Water will maintain the same or better income and livelihood Resources has a compensation matrix for damages status. during land acquisition, crop loss, and cutting of fruit trees. When applied, rates current for the period of Pay compensation and provide other resettlement actual replacement must be used. The State Agency entitlements before physical or economic displacement. for Construction and Architecture under the Implement the resettlement plan under close supervision Government of Kyrgyz Republic, the Construction throughout project implementation. Departments have a schedule of rates for preparing estimates for construction projects, which the consultant can use to assess costs for construction materials and labor.” 2017, RPF for Sustainable Rural Water Supply and Sanitation Development Project, page 26-27. However, the EA/IA did not have requirements on involvement of certified valuator previous projects. 23

National System requirements & Gaps with ADB Policy Principles SPS • For the program, the compensation for loss of land, assets and income (based on impact will be measured by the DMS, will follow the replacement cost principle as set in the SPS 2009. The compensation and provision of other resettlement entitlements should be paid before the physical works. • For the project, a certified valuator, trained and familiar with the SPS requirements, should be engaged. Principle 7: Ensure that displaced persons without titles • As mentioned, the national regulations ensure the to land or any recognizable legal rights to land are entitlement of DPs with formal title to be eligible for resettlement assistance and compensation for compensated for lost land/other assets, while non- loss of non-land assets. legal DPs have no right to be compensated for land and non-land assets. • The provision under this principle at other ARIS’ projects was based on WB OP 4.12. • The requirement under Principle 7, will be provided as per the SPS 2009 based on the provisions of Entitlement matrix defined in the prepared LARF of the program. Principle 8: Prepare a resettlement plan elaborating on • There are no requirements in national legislation to displaced persons’ entitlements, the income and prepare integrated and stand-alone LARPs. LAR livelihood restoration strategy, institutional planning entails similar but less extensive/ simpler arrangements, monitoring and reporting framework, assessment/survey efforts than ADB Policy. budget, and time-bound implementation schedule. • Preparation of the LARP as per ADB SPS 2009 requirements based on the LARF provisions is required for the program. Principle 9: Disclose a draft resettlement plan, including • No special disclosure requirements defined by documentation of the consultation process in a timely national legislation, though the matters of local manner, before project appraisal, in an accessible place importance to be publicly discussed/notified to local and a form and language(s) understandable to affected authorities, as well as notification procedures as persons and other stakeholders. Disclose the final defined by legislation of registered right holders. resettlement plan and its updates to affected persons • The EA/IA are committed to building public and other stakeholders. awareness about the BFM and the GRM. The existing BFM includes the following commitments: (i) information on the BFM will be disseminated to all beneficiaries and people impacted by ARIS- managed projects via regular information channels (i.e. TV and radio companies, printed media, radio stations, news agencies, social media), as well as through the organization of meetings, roundtables and public hearings on issues such as resettlement and compensation; (ii) the holding of working meetings at all stages of ARIS project implementation, and (iii) the organization of a BFM training module and other awareness sources through ARIS. • Awareness building campaigns will be conducted annually. They will be designed by the ARIS communications team to encourage the use of the BFM/GRM. Information on complaints received and resolved will be published. The campaigns will use local media (e.g. TV, newspaper, radio). When organizing and conducting these campaigns, special efforts shall be made to reach vulnerable groups. • The LARP will be disclosed on the EA/IA websites as well as on ADB’s website. The LAR-related information will be disseminated to DPs according the procedure defined by prepared LARF. 24

National System requirements & Gaps with ADB Policy Principles SPS Principle 10: Conceive and execute IR as part of a The principle will be partially triggered as significant development project or program. Include the full costs of IR impacts are not expected. The EA/IA needs to resettlement in the presentation of project’s costs and ensure timely and sufficient resources for the benefits. For a project with significant IR impacts, payment of compensation to displaced persons. consider implementing the IR component of the project as a stand-alone operation. Principle 12: Monitor and assess resettlement • There are no requirements in national legislation on outcomes, their impacts on the standards of living of monitoring and reporting of LAR-related procedures. displaced persons, and whether the objectives of the • The EA/IA has established a functioning system for resettlement plan have been achieved by taking into the monitoring of BFM effectiveness which is being account the baseline conditions and the results of used for other ongoing projects. The following resettlement monitoring. Disclose monitoring reports. measures are being taken to monitor whether the BFM is functioning as intended: (i) During the social audits and open meetings, villagers discuss the effectiveness of the grievance handling system and gather suggestions on how to improve it. (ii) During regular supervision visits, the Projects Central Office will assess the functioning of the grievance handling system. (iii) The Project team and World Bank jointly review BFM monitoring data as part of regular implementation support missions. (iv) During the project implementation, a designated site person (technical specialist/ engineer), monitors and reports to ARIS on all social and environmental issue on a daily basis. If an issue cannot be resolved, ARIS resettlement and/or environmental specialist visit the site and attend the issue. • To ensure the proper safeguards monitoring and reporting is carried out for the program, the internal monitoring mechanisms and reporting requirements are defined in the prepared LARF. Meantime, the designated safeguards staff to be hired by ARIS and supervision consultant will be responsible for the safeguards monitoring and reporting. Indigenous Peoples The program will not impact any indigenous peoples, as per definition of SPS and will be confirmed during the project implementation. ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), BFM = beneficiary feedback mechanism, CDWUU = community drinking water users’ union, DMS = detailed measurement survey, DP = displaced person, EA = executing agency, EMP = environmental management plan, GRM = grievance redress mechanism, IA = implementing agency, IR = involuntary resettlement, LAR = land acquisition and resettlement, LARF = land acquisition and resettlement framework, LARP = land acquisition resettlement plan, NGO = nongovernment organization, PI = project initiator, PSSA = program safeguard systems assessment, RBL = results-based lending, RPF = resettlement policy framework, SPS = Safeguard Policy Statement, WB = World Bank

APPENDIX 2: ARIS SAFEGUARD CAPACITY & SYSTEMS ASSESSMENT

ARIS SAFEGUARD CAPACITY & SYSTEMS ASSESSMENT

A. Capacity Assessment

1. The Community Development and Investment Agency (ARIS) is implementing six projects while three projects are in the process of ratification. At present, ARIS has four specialists and one assistant (one female and four males) in the safeguards department of ARIS (Order 215/17, 9.10.2017) with each safeguard specialist assigned to a specific project. In the case of the existing World Bank project portfolio, safeguard specialists are moved from one project to another as projects are completed and new projects commence. Each World Bank project engages one safeguards specialist, since this is their requirement.

2. In projects funded by Inter-American Development Bank and International Fund for Agricultural Development, there are no requirements for hiring a safeguard specialist since they do not have any environmental and social policies. However, ARIS still insists on the inclusion of a safeguard specialist in their projects. Each safeguard specialist has responsibility to oversee and ensure compliance with environmental and resettlement related issues while gender issues are not included in their responsibilities. If in the design of the project it is required to consider gender issues, then a gender specialist is engaged.

Table 1: List of ARIS Safeguard Specialists and their Work Experience No. Name Work Experience Note 1 Kerimbekova • 4 years • Head of Department - Safeguard Meerim • Experience in environmental protection specialist and resettlement. • [email protected] • Work with donors: IsDB, World Bank. • Sustainable Rural water Supply and Sanitation Development Project – World Bank 2 Kandzhebaev • 12 years (3 years in ARIS) • Safeguard specialist Timur • Experience in environmental protection • [email protected] and resettlement • Pasture Livestock Management • Work with donors: IAEA, KfW, World Improvement Project (completion) – Bank World Bank • Village Investment Project – World Bank 3 Chonoev Ulan • 14 years • Safeguard specialist • Inspector of the Committee for Nature • [email protected] Protection (2.5 years); • Urban Development Project – World • environmental engineer at the enterprise Bank (3.4 years); • Head of the department of labor protection and industrial safety (4.3 years); • Chief Environmental Specialist (2.8 years); • security specialist (1.3 years in ARIS) • Work with donors: World Bank 4 Raimov Umut • 21 years (1.5 years in ARIS) • Safeguard specialist • Experience in environmental protection • [email protected] and resettlement • Livestock and Market Development • Work with donors: World Bank Project - IFAD 5 Ryskulov Atay • 1 year • Assistance of Safeguard specialist • Experience in environmental protection • [email protected] and resettlement • Sustainable Rural water Supply and • Work with donors: World Bank Sanitation Development Project - World Bank 27

ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), IAEA = International Atomic Energy Agency, IsDB = Islamic Development Bank, IFAD = International Fund for Agricultural Development, KfW = German Credit Institute for Reconstruction.

3. Since October 2018 until now, the Asian Development Bank (ADB) missions have been providing overviews of the results-based lending (RBL) mechanism and the ADB Safeguard Policy Statement 2009 (SPS).1 However, based on discussions with the ARIS safeguards team, it has been assessed that they only possess a general understanding of the RBL system and the ADB's safeguard policies. The ARIS safeguards team have requested for trainings as part of their capacity development relating to both the RBL mechanism as well as the ADB SPS requirements in preparation of the upcoming program.

4. Furthermore, since the existing safeguards specialists employed by ARIS are already overseeing their respective projects, thus for the upcoming RBL program, it will be necessary to hire an additional safeguard specialist who is knowledgeable of the ADB SPS 2009.

5. The major challenges faced by the ARIS safeguards team during project implementation for both past and existing projects and the initiatives being taken by them to address these challenges are provided in the table below.

Table 2: Challenges for ARIS Safeguards Team and Initiatives Taken Challenges Initiatives Complaints from communities relating to lack of ARIS has a feedback mechanism in place in order to coordination of the contractors with them during the address any grievances received from stakeholders construction works, leading to considerable present in the project areas. inconvenience In addition, ARIS ensures weekly meetings take place with active participation of the contractor, ARIS supervisors, local government representatives, residents, water committee representatives, local deputies, and any other relevant stakeholders. Delays in obtaining permits and approvals from local ARIS is working towards improved coordination with local government and accuracy of information provided by government focal points in order to minimize any time local government (e.g., outdated village passports) delays and to be involved in the document flow process to questionable at times. minimize receipt of inaccurate information. Limited capacities of local contractors to ensure ARIS is continuing to conduct trainings on safeguards compliance with the requirements of the EMPs along issues and EMP implementation for local contractors. with lack of instruments for penalizing non- Also, ARIS is in the process of reviewing the mechanism compliances during EMP implementation for penalizing non-compliances in EMP implementation. Lack of high quality technical and safeguards experts As standard practice, ARIS engages a senior and a junior in the local market for supervision of projects engineer for supervision of any project in order to train the junior engineer as part of the capacity development process. ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), EMP = environmental management plan.

B. Safeguard Systems

6. Prior to the implementation of any ARIS project, initial preparatory work is being carried out. In order to conduct the initial assessment, ARIS engages consultants (usually from the design institute that is preparing the detailed design of the project) to prepare the environmental impact assessments (EIAs) to obtain the national approval from the State Agency of Environmental Protection and Forestry (SAEPF), while the environmental and social management framework (ESMF), which is specific for World Bank safeguard requirements, is prepared by the ARIS

1 ADB. 2009. Safeguard Policy Statement. Manila. 28

safeguards staff themselves that covers all activities to be implemented under the project umbrella. The list and number of activities is determined by the Department for Drinking Water Supply and Sewerage Development based on the donor’s planned budget for funding. However, mostly the calculations for determining the scope of work for subprojects do not always correspond to the amount of funding, causing a shortage of funds.

7. In the case of funding by the World Bank, documents are developed based on the World Bank’s operational procedures. However, in the case of funding by another donor, the documents are developed in accordance with the policies of the financing donor, and if the donor does not impose any requirements on environmental policies, the documents are developed according to the national requirements of the Kyrgyz Republic.

8. The details of the ongoing projects are provided in the table below.

Table 3: ARIS Ongoing Projects № Ongoing Projects Project Donor Involuntary Environment Resettlement Category Category 1 Village Investment Project World Bank B B 2 Urban Development Project World Bank B B 3 Livestock and Market Development IFAD B B Project 4 Pasture Livestock Management World Bank B B Improvement Project 5 Sustainable Village Project of the Kyrgyz IsDB B B Republic 6 Sustainable Rural Water Supply and World Bank B B Sanitation Development Project Ratification stage 1 Access to Market Project IFAD B B 2 Heat Supply Improvement Project World Bank B B 3 Rural Water Supply and Sanitation IsDB B B Improvement Project ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), IFAD = International Fund for Agricultural Development, IsDB = Islamic Development Bank.

9. The details of the most recent completed projects are provided in the table below.

Table 4: ARIS Completed Projects No. Project Name Project Involuntary Environment Date of Financing Resettlement Category Completion Category 1 Village Investment Project 2 World Bank B B 2014 2 Second Rural Water Supply and World Bank B B 2014 Sanitation Project 3 Bishkek Osh Urban Development World Bank B B 2015 Project 4 Building Demand-Side Capacity for JSFD B B 2015 Effective Governance Project 5 Debt Swap III – Communal German B B 2016 Infrastructure Development Bank ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), JSDF = Japan Social Development Fund.

C. Applicable Policies for World Bank-Funded Projects

10. The applicable World Bank environmental and social policies for the ongoing projects being implemented by ARIS are as follows:

1. Environmental Assessment (OP 4.01)

2. Involuntary Resettlement (OP 4.12)

11. The Ministry of Finance of the Kyrgyz Republic is responsible for payment of all compensation. The ARIS’ tasks in this case include the following: (i) ARIS, assisted by the local authorities bodies, carries out social screening in order to determine the necessity for development of a resettlement action plan (RAP); (ii) conducts and documents stakeholder consultations; (iii) elaborates compensation measures as per the land acquisition resettlement framework (LARF); (iv) supervises implementations of the RAP; and (v) monitors implementation of applicable safeguards as per established procedure.

12. RAPs are developed after the detailed design of the project has been completed.

13. A schematic diagram of the mechanism in place for implementation of works in terms of environment and social safeguard aspects for World Bank-funded projects is provided in the Figure 1 below.

Figure 1: Organogram on the Implementation of Works Contract in Terms of Social and Environmental Safety

14. Each World Bank project has one assigned safeguard specialist. At the project implementation stage (feasibility study and/or detailed design documentation stage), as mentioned above, the ESMF, which is specific for World Bank safeguard requirements, is prepared by the ARIS safeguards staff themselves and this document is included in the package of tender documents, and its implementation is binding on the contractor. ARIS engages consultants (usually from the design institute that is preparing the detailed design of the project) to prepare the environmental impact assessments (EIAs) to obtain the national approval from the SAEPF.

D. Tendering Process

15. The package of tender documents includes the following: (i) Design documentation, strategic environmental plan; (ii) Bill of quantities for the implementation of measures ESMP: responsibility of design consultant; (iii) Approved version of ESMP by World Bank: responsibility of ARIS safeguard specialist; (iv) At the pre-bid meeting, the conditions for implementing the ESMP are shared with the potential contractors. After the tender stage and once the contractor has been selected, within a month’s time, the contractor provides comments on the implementation of the ESMP measures. If the contractor agrees, he is required to provide a certificate of compliance with the requirements of environmental protection and occupational health and safety. In case of disagreement, negotiations are held with the ARIS safeguard specialist to develop consensus.

16. The ESMP developed by the ARIS safeguard specialist is a general document for all activities and is used as the main document for all the contractors of the project. The contractor within a month appoints the responsible person for the implementation of the tasks of the ESMP and sends a copy of the order to ARIS.

E. Safeguard Trainings

17. The ARIS safeguard specialist conducts training on the implementation of the ESMP for all technical supervision and conducts on the job training. The contractor does not develop the site specific ESMP. Supervision of construction work is carried out by ARIS and the local government. Depending on the volume of the construction work, ARIS hires a suitable number of specialists in order to ensure technical supervision of all the construction works.

18. During the construction period, ARIS engages two types of technical supervision staff that are engineers by trainings but also conduct safeguards monitoring on a daily basis and provide inputs to the ARIS safeguards team: (i) senior technical supervisor (carries out general supervision of the project); (ii) junior technical supervisor (supervises the construction site of the activity)

19. The senior technical supervisor engaged by ARIS oversees the work process of the entire project while the junior technical supervisor remains at the construction site on a permanent basis and oversees the contractor’s activities. All technical supervisors report to the project engineer.

20. The duties of technical supervision also include the preparation of a monthly report on the implementation of the ESMP, which is provided to the ARIS safeguards specialist. Based on the 32

monthly reports, the ARIS safeguard specialist prepares and submits semi-annual reports to the World Bank.

21. In turn, each ARIS safeguards specialist visits the activities at least once a month. Monitoring by the ARIS safeguard specialist is carried out as needed. In the absence of construction work, the specialist does not visit the sites while in the case of construction sites where there are considerable social and environmental issues, the specialist may visit the sites several times until all issues are resolved.

22. Each ARIS safeguards specialist oversees the daily monitoring activities being conducted by the ARIS technical supervisors, who in turn report directly to the ARIS safeguards specialist. The monitoring being conducted by the technical supervisors appointed by the local government are completely disconnected from ARIS in terms of their monitoring activities and perform their activities in parallel and do not report to or coordinate their monitoring activities with ARIS.

23. Further details on the specific roles of these three monitoring focal points are provided below.

F. Monitoring by ARIS Safeguard Specialist

24. The safeguard specialist travels to the site inspection in accordance with his/her own schedule. The task of the specialist is to verify the compliance of the fulfillment of work with the requirements of the ESMP and national legislation.

25. The safeguard specialist conducts visual monitoring of the entire area and if violations are observed, he/she records it in his/her checklist and then all violations are recorded in the operating work logbook. At the end of the inspection, the safeguard specialist prepares the corrective action plan that is submitted to the contractor for implementation.

G. Monitoring by ARIS Technical Supervisors

26. Daily monitoring at the sites is carried out by the technical supervisors that control the elimination of violations and submit both photographic and video-based evidence of non- compliances to the ARIS safeguard specialist. Once all non-compliances have been removed, the contractor submits an official letter to the ARIS safeguard specialist informing him/her of the elimination of non-compliances. If the contractor fails to fulfill the requirements of the environmental management plan (EMP), ARIS may delay the payment until the violations are removed.

H. Monitoring by the Local Government Technical Supervisors

27. The local government also conducts technical supervision of the construction work by engaging supervisors that are present at each work site during the execution of works. The hiring of the technical supervisors is coordinated with local government internal agreements, either in the form of admission on a contractual basis, or on a voluntary basis.

28. This obligation is spelled out in the agreement between the local government and ARIS, in which the terms of the interaction of the two parties (ARIS and local government) are negotiated during the implementation of each activity.

29. The technical supervisors from the local government only report to the local government and do not interact directly with ARIS.

I. Interaction with Stakeholders

30. The local government also creates water committees in order to actively interact with the population in the area(s) where the activities are to be conducted, on various issues, including complaints, suggestions, etc. The water committee, representatives of local kenesh, local government, technical supervisors of ARIS and local government, the contractor hold weekly meetings to resolve issues and proposals of the residents on the activities. The establishment of water committees is also a requirement of ARIS, specified in the agreement between local government and ARIS to facilitate interaction between the parties concerned.

J. Contractual Arrangement between ARIS & Local Government

31. The agreement between ARIS and the local government reviews the functional responsibilities of the parties. According to the agreement, ARIS conducts all tender procedures (for the selection of design and construction campaigns, qualified technical supervision specialists). In the period of construction works, ARIS is responsible for the technical supervision.

32. The contract for construction works is signed between the local government and the contractor, which specifies the appointment of the activity manager.

K. ARIS Feedback Mechanism

33. The feedback mechanism on the ARIS activity works in the form of creating water committees, a weekly meeting of all stakeholders, including affected people, and solutions of all issues in a reactive form, which increases the confidence of local residents.

34. In addition, information boards are placed at the construction sites where it is mandatory to indicate information regarding the mechanism for filing complaints and/or suggestions. Any complainant has the following options to file a grievance/complaint: (i) complain to ARIS Public Relations Department and request redressal; (ii) complain directly to contractor and request redressal; (iii) complain to water committee and request redressal; and (iv) complain to supervision consultant engaged by local government and request redressal.

35. All these avenues are available to any complainant and it is their choice which option they would like to adopt. In instances when a certain complaint cannot be closed by the localized avenues such as the contractor himself, water committee or by the local government’s supervision consultant, then it is sent to the ARIS public relations department for redressal.

36. The water committee functions at the local level and is formed for each project activity while the ARIS public relations department is the centralized focal point that is responsible for all project activities in the country.

37. The feedback mechanism is implemented by the Public Relations Department, which is a structural unit of ARIS, providing information support for its activities and the implementation of the feedback mechanism, under the direct supervision of the executive director. This mechanism is based on the World Bank’s grievance redress mechanism (GRM) procedures while also 34

containing the requirements of national Kyrgyz regulations. Furthermore, the GRM is also included in the World Bank’s operations manual.

38. The feedback mechanism operates on the basis of the Constitution of the Kyrgyz Republic, in accordance with the ARIS charter, orders and instructions of ARIS, other local normative acts of ARIS, as well as normative legal acts of the Kyrgyz Republic. (i) The feedback mechanism is a management tool for the high-quality implementation of ARIS projects. (ii) The feedback mechanism is a process of systematically receiving and responding to requests from beneficiaries. (iii) Feedback from the beneficiaries will provide up-to-date information on the consequences of the decisions made, identify bottlenecks in the implementation of ARIS projects. (iv) The main purpose of the feedback mechanism is to receive operational and objective information, evaluation and consideration of requests (statements, proposals, complaints, requests, positive feedback) concerning the scope of the implementation of ARIS projects at all stages of implementation.

39. Tasks: (i) assist in obtaining comprehensive information from beneficiaries, using various channels of the feedback mechanism: a. WhatsApp; b. social networks; c. ARIS website: www.aris.kg; d. oral or written appeals; e. letters on purpose; f. reception ARIS; and g. e-mail: [email protected]; h. anonymous messages. (ii) identify the causes of failure in the work process at various stages of project implementation. (iii) analyze and adjust the activities of employees for the effective implementation of projects in local communities. (iv) promote regular informing of partners, key stakeholders at each stage of project implementation.

L. Ways to Achieve Objective

40. Information on the feedback mechanism is disseminated to all beneficiaries and individuals affected by ARIS projects through regular information channels (e.g., television, newspapers, radio), including through the organization of meetings, round tables, public hearings, and public meetings at all stages of the implementation of ARIS projects.

41. ARIS provide information on the procedures for filing appeals (where, when, and how), the time frame for receiving a response to appeals, as well as the principle of confidentiality and the right to submit anonymous appeals.

42. Anonymous Messages are also accepted.

43. What is the misuse of funds and corruption? ARIS feedback mechanism also considers complaints received by the central office of ARIS on cases of misuse of funds and 35

corruption committed in the framework of ongoing projects funded by international donor organizations. The following violations must be reported to ARIS feedback mechanism: (i) violation of contracting procedures and procurement guidelines, (ii) improper bidding, (iii) collusion with bidders, (iv) fraudulent tendering, (v) fraud in the performance of contracts, (vi) deception at the conclusion of contracts, (vii) fraud during the audit, (viii) substitution of products, (ix) incorrect pricing or insufficient parts, (x) improper purpose of payment for labor / incorrect definition of expenses, (xi) bribery and receiving thanks, (xii) attempted bribery and / or taking bribes, (xiii) improper use of funds, using official position, (xiv) offenses related to transportation costs, (xv) theft and waste of funds, (xvi) gross waste of funds provided by ARIS, and (xvii) other types of actions entailing improper use of funds, theft. 36

APPENDIX 3. FIELD VISIT REPORTS – ENVIRONMENT & SOCIAL SAFEGUARDS

FIELD VISIT REPORTS – ENVIRONMENT & SOCIAL SAFEGUARDS

I. SITE VISIT TO NARYN VILLAGES PROPOSED UNDER RESULTS-BASED LENDING PROGRAM

Project: Rural Water Supply and Sanitation ADB mission: Site Visit to Naryn Region Visit date: 28-30 January 2019

A. Methodology for Site Visits

1. Visits were conducted to seven potential villages across Naryn oblast where water supply and sanitation schemes will be implemented under the Asian Development Bank (ADB) financed results-based lending (RBL) program. These visits consisted of meeting with the local government representatives and assessing the existing water supply and sanitation infrastructure in place. Different households were also visited and the local communities were also consulted regarding the challenges being faced by them and their existing needs relating to water supply and sanitation.

2. The local government representatives also arranged visits to the potential source of the freshwater, where available, otherwise the potential sources for conducting boreholes and obtaining groundwater were also shown. The existing locations where standpipes are already installed were shown as well as the potential routes for laying of the pipes in trenches.

B. Key Findings of Site Visits

3. Based on the visits to the villages described below, the following observations have been made from both environmental and social safeguards perspectives: (i) The proposed scope of works is expected to have insignificant environmental impacts, short term, site specific and limited to the construction phase of the project. (ii) The project villages do not lie in any environmentally sensitive areas, such as protected areas, wildlife sanctuary, critical habitat, reserve forest, game reserve, Ramsar site etc. (iii) No major resettlement or land acquisition is expected and no indigenous people are residing in the project villages. (iv) Considering the rural nature of the project settings in the proposed villages, potential impacts from the works to be conducted are expected to be manageable.

1. At-Bashi Village

4. At-Bashy village is the center of At-Bashi raion. The total population is about 15,000 people with about 2,400 households. There are 3 schools in At-Bashy village (total number of pupils is 2511), 4 kindergartens (497 children), 1 FDG, 1 raion hospital, and raion public services. According to the aiyl okmotu, the water supply system was built in 1971 and is currently in a poor condition. Water source is At-Bashy riverbed ground water at depth 3-6 m. Water distribution through 42 standpipes (of those 8 operational) and household wells. There are no individual connections. Water treatment is not provided. Wastewater system is non-existent.

5. It is required to rehabilitate completely the water supply system, including the water intake, reservoirs, construction of a treatment facility, replacement of pipelines and those that are 38

technically and economically feasible, covering all village streets to the extent possible through individual connections with water meters installed.

28 January 2019, At-Bashy Raion, At-Bashy aiyl okmotu ADB mission members site visit

Standpipe and septic tank are located in the courtyard of a residential high-rise building

28 January 2019, At-Bashy Raion, At-Bashy aiyl okmotu, private household A woman shows what kind of water they drink from the well

28 January 2019, At-Bashy raion, At-Bashy aiyl okmotu Standpipe at the street of the At-Bashy village. 40

2. Ak-Zhar Village

6. Ak-Zhar village is located near the village At-Bashi. The total population is about 5,800 people, about 1,180 households. In Ak-Zhar village there are 1 school (560 pupils), 1 kindergarten (120 children), and 1 FDG. According to the aiyl okmotu, the water supply system was built in 1971 and is currently in a poor condition.

7. Water supply is non-existent, supplied by water household wells. The water source and intake are yet to be determined. The key issues being faced till now are the absence of centralized water supply system as well as primary and secondary contamination through water household wells.

28-1-2019, At-Bashy raion, Ak-Jar aiyl okmotu, Ak-Zhar village, private household A man shows what kind of water they drink from the well. Livestock are usually walking around the well, what pollutes water.

3. Baetovo Village

8. Baetovo village is the raion center of Ak-Talaa raion. The total population is about 12,000 people, about 2,000 households. There are 3 schools (total number of pupils is 1579), 6 kindergartens (606 children), 1 health post, and raion public services on the territory of Baetovo village. According to the aiyl okmotu, the water supply system was built in 1958 and is currently in an unsatisfactory condition. There are 12 wells, 2 reservoirs (500 m3 and 100 m3), cast-iron and asbestos water pipelines with a total length of 23 km, as well as 33 standpipes and 130 individual connections. It is required to rehabilitate completely the water supply system, including rehabilitation of the water intake, reservoirs, construction of a treatment facility, replacement of pipelines, and those that are technically and economically feasible, covering all village streets to the extent possible through individual connections with water meters installed.

9. Detailed design is available, cost estimated Som212 mln ~ $3.037 mln. (exch rate $1=Som69.8) design executed by design company Nur. It is submitted to state expertise, however due to the lack of funds cannot be received back.

10. Tariff for water is Som150/household if connected; Som50/household for street standpipes; collection rate about 55%.

29-1-2019, Ak-Tala raion, Baetovo aiyl okmotu, Baetovo village underground water tank

29-1-2019, Ak-Tala Raion, Baetovo aiyl okmotu, Baetovo village Villagers take water from the standpipe on the street.

29-1-2019, Ak-Tala Raion, Baetovo aiyl okmotu, Baetovo village Villagers show leaking water pipes.

4. Jalgyz-Terek Village

11. It is a part of Jerge-Tal aiyl okmotu, Naryn raion. The total population is about 1,250 people, about 260 households. There are 1 school, 1 kindergarten, 1 health post, and 1 club on the territory of the village. According to the aiyl okmotu, the water supply system was built in 1967–1969. Water is available only on intake site. Water source is 1 borehole, pump installed at depth 80 m approx. by electricity. Problems: no network, no reservoirs, no standpipes, non- continuous supply 4 hours daily, residents have to get water from the intake as there is no other place, the same spot is for cattle watering. Tariff for water is Som20/household, mainly goes for electricity bills, collection rate 200 households of 260 pay.

29-1-2019, Naryn Raion, Jerge-Tal aiyl okmotu, Jalgyz-Terek village The water in the village is served only three or four hours a day. Villagers graze livestock around the well.

5. Jan-Bulak Village

12. The population in the village of Jan-Bulak is about 2,500 people, about 450 households. In the village there is 1 school (247 pupils), 1 kindergarten (100 children), there are no other social institutions. According to the aiyl okmotu, the water supply system was built in 1970 and is now in a worn condition. Water source is 1 borehole, pump installed at depth 73 approx. by electricity. 43

There are two reservoirs (one of 250 m3 and one of 25 m3). Water treatment is not provided. Wastewater system is non-existent. It is required to rehabilitate completely the water supply system by restoring the water intake and including rehabilitation of reservoirs, construction of a water treatment facility, replacement of pipelines and those that are technically and economically feasible, covering all village streets to the extent possible through individual connections with water meters installed. Problems: non-continuous supply 3 hours daily, water is not available for new housing development area. Tariff for water is Som100/household if connected; Som50/household for street standpipes per month.

29-1-2019, Naryn raion, Jean-Bulak aiyl okmotu, Jean-Bulak village The water in the village is served only four hours a day.

6. Chaek Village

13. It is the raion center of Zhumgal raion. The total population of is about 12,500 people, about 2,800 households. There are 4 schools in the village of Chaek (the total number of pupils is 1,906), 4 kindergartens (one of them does not work, 138 children go to the other three kindergartens), 1 FDG, 1 raion hospital, and raion public services. According to the aiyl okmotu, the water supply system was built in 1973 and is currently in a poor state. Water source: all ground water depth 5–8 m, Intakes 2, spring and underground water. There are 3 reservoirs with a total volume of 1200 m3, polyethylene, cast-iron and asbestos water pipelines with a total length of 46 km, as well as 30 standpipes and 625 individual connections. Water treatment is not provided. Wastewater system is non-existent. It is required to rehabilitate the water supply system in full, including rehabilitation of the water intake, reservoirs, construction of a treatment facility, replacement of pipelines, and those that are technically and economically feasible, covering all village streets to the extent possible through individual connections with water meters installed.

14. Tariff for water is Som20/household if connected (up to 80% connected); Som10/household for street standpipes.

30-1-2019, Jumgal Raion, Chayek aiyl okmotu, Chayek village Water intake is located above the Chaek village. Water intake fence and water intake structure.

7. Kochkor Village

15. It is the raion center of the Kochkor raion. The total population of the village is about 20,000 people, 4,400 households. On the territory of the village, there are 4 schools (total number of pupils is 5,926), 4 kindergartens (741 children), 3 health posts, and district public services. According to the aiyl okmotu, the water supply system was built in 1963 and is currently in a deplorable condition. There are 2 wells, 2 tanks of 250 m3 each, polyethylene, cast-iron, and asbestos water pipelines with a total length of 43 km, as well as 27 standpipes and 1,268 individual connections. Water treatment is not provided. Wastewater system is non-existent. It is necessary to rehabilitate completely the water supply system, including the rehabilitation of wells, reservoirs, construction of a water treatment facility, replacement of pipelines, and those that are technically and economically feasible, covering all village streets to the extent possible through individual connections with water meters installed. Problems: network is dilapidated, leakages, reservoir required.

16. Tariff for water is Som100/household if connected (mostly connected); Som75/household for street standpipes.

30-1-2019, Kochkor Raion, Kochkor aiyl okmotu, Kochkor village Members of the ADB mission inspect the territory of the water intake structure of the Kochkor village.

30-1-2019, Kochkor Raion, Kochkor aiyl okmotu, Kochkor village Members of the ADB mission communicate with employees of the state organization "Vodokanal" of Kochkor village

30-1-2019, Kochkor Raion, Kochkor aiyl okmotu, Kochkor village Members of the ADB mission in the house of residents of the village of Kochkor. Owners shows what kind of water they drink from the well.

II. SITE VISIT TO WORLD BANK-FUNDED SUSTAINABLE RURAL WATER SUPPLY AND SANITATION DEVELOPMENT PROJECT

“Reconstruction of water supply system, Kurama subproject, near the town of Kara-Balta” Visit Date: 18 February 2019 Visit Members: Meerim Kerimbekova, ARIS Safeguards Specialist Nazgul Asanalieva, ADB National Environment Safeguards Consultant

17. The inspection of the reconstruction site was carried out on 18 February 2019 by the ARIS safeguard specialist, Ms Meerim Kerimbekova, along with Ms Nazgul Asanalieva, ADB national environment safeguards consultant.

18. The site was being monitored by the senior and junior technical supervisors that report to ARIS as well as the technical supervisors of the local government, which work independently and report only to the local government. 19. The social and environmental safeguards monitoring visit commenced with an inspection of the water intake site. The ARIS specialist examined the project site and recorded the non- compliances as per the checklist. It was observed that as per standard practice, the non- compliances from the ESMP along with deadlines were being recorded in the register book, being maintained on site.

20. It was explained to the ADB consultant that as per standard practice, the ARIS safeguards specialist prepares a corrective action plan for elimination of the violations (official corrective action plan on behalf of the project coordinator addressed to the director of the contracting company, with a checklist attached). The contractor, within the specified time frame with confirmation (photo materials) of the elimination of all violations, submits the official response to the project coordinator. In parallel, another confirmation is provided by the supervisors present on site regarding the removal of the non-compliance through photo-video evidence.

21. At the site, the contractor was interviewed along with the ARIS technical supervisors, director of the MWC and the technical supervisors of the local government.

22. The contractor indicated that ARIS is committed towards compliance of environmental issues and responds quickly to all types of violations since such control is also an additional safety measure for them in the case of state supervision by the State Inspectorate for Environmental and Technical Safety of the Kyrgyz Republic.

23. It was also learnt that the junior technical supervisor is always present on site during the period of construction works and he is monitoring the implementation of the works by the contractor. The senior technical supervisor visits the site frequently to monitor the works as well as the other contractors.

24. The technical supervisor of the local government is also always present on the site during the construction works and reports to his focal point in the local government.

25. It was also observed during the site visit that the site contained a signboard summarizing the information regarding the subproject, the grievance redress mechanism etc.

Site inspection – Water intake site – Members of the inspection (Date: 18-2-19)

Site inspection – Water intake site – The general view (Date: 18-2-19)

Site inspection – Water intake site - Safety straps (Date: 18-2-19)

Site inspection – Operating work log book (Date: 18-2-19)

Site inspection – Noted in the operating work log book (Date: 18-2-19)

Site inspection – PPEs being used by Contractor Staff (Date: 18-2-19)

Site inspection –waste container (Date: 18-2-19)

Site inspection – Safeguard specialist is writing the non-compliances (Date: 18-2-19)

Site inspection – Information table (Date: 18-2-19)

A. Key Findings from Site Visit

26. It was observed during the visit that the ARIS safeguard staff responsible for the World Bank-financed project was well versed with the safeguard policies, monitoring, and reporting requirements of the World Bank. However, the ARIS safeguards staff responsible for the project and staff in general is not familiar with the ADB safeguards requirements as per ADB SPS 2009. In general, the ARIS focal safeguards staff did appear to possess the required technical and management capacity and was ensuring the site was being managed as per the ESMF requirements and any non-compliances were being recorded and redressed at the earliest.

27. Furthermore, the ARIS staff was observed to ensure that any complaints/grievances were being redressed in a timely manner.

APPENDIX 4: INTEGRATED RISK MATRIX 53

INTEGRATED RISK MATRIX

Risks Rating without Key mitigation measures mitigation measures 1 The environmental assessment Low to Moderate i. Development of comprehensive and documentation to be prepared by clear PAP to ensure development of ARIS for the activities under the RBL environmental for each activity in program might contain gaps from the accordance with ADB policy principles. ADB safeguard policy principles. ii. Training sessions must be held to develop capacity relating to ADB safeguard policy principles. iii. ADB consultants/staff must conduct initial hand holding support to develop capacities relating to ADB safeguard policy principles.

2 Insufficient environmental supervision Low to Moderate Audits by ADB along with constant review and monitoring of the program of monitoring activities and due diligence visits must be conducted. 3 Lack of clear guidance on preparation Low to Moderate ADB KYRM should forward the RETA and implementation of LAR tasks social safeguard guidance notes developed for the Kyrgyz Republic to guide ARIS in preparation and conducting the LAR tasks. ADB training on the LAR tasks should be provided to ARIS and other parties involved in the project (local authorities’ representatives, land surveyors, resettlement specialists, supervision engineers and other technical staff). 4 Lack of a detailed measurement task Low to Moderate For ADB financed projects, ARIS should while conducting the IoL and DMS. engage a professional DMS organization/persons. 5 Lack of a professional and Low to Moderate Engagement of a certified independent independent valuation of acquired valuator by ARIS in order to valuate the land and assets. affected land and assets based on the replacement cost principle outlined in the SPS 2009. 6 Insufficient coordination between Low Establish a clear coordination, monitoring at different project levels. communication and reporting lines between monitoring and reporting at project levels, local authorities’ level, specialized institutions level, contractor’s level and ARIS monitoring levels. 7 Preparation of the LARPs and other Low Outlines, structures and samples of ADB social safeguards reports under the required reports and studies should be RBL program might not be in line with forwarded to ARIS. Capacity building such the SPS 2009 safeguard policy as training of ARIS staff on monitoring principles. and reporting ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), DMS = detailed measurement survey, IoL = inventory of loss, KYRM = Kyrgyz Resident Mission, LAR = land acquisition and resettlement, LARP = land acquisition and resettlement plan, PAP = program action plan, RBL = results-based lending, RETA = regional technical assistance, SPS = Safeguard Policy Statement. 54

APPENDIX 5: LEGISLATIVE AND INSTITUTIONAL FRAMEWORK IN KYRGYZ REPUBLIC

LEGISLATIVE AND INSTITUTIONAL FRAMEWORK IN KYRGYZ REPUBLIC

B. Legal Framework for Environmental Assessment and Management

1. The main normative documents governing the environmental protection activities are:

(i) The Constitution of the Kyrgyz Republic 2010 is the foundation for the whole normative and legal framework. It stipulates the right of all citizens for an environment favorable for human’s life and health and compensation for damage caused to health or property by nature management activities;

(ii) The Law on Environmental Protection is basis for comprehensive regulation of public relations in the sphere of interaction between the society and the nature.1 It sets basic principles of environmental protection and stipulates legal authorities for creating environmental quality, marking special protected territories, promulgation of rules and procedures for natural resources management, setting the environmental monitoring and oversight system, and reinforcing the emergency response procedures.

The law prohibits financing and implementation of projects involving the use of natural resources without obtaining the positive opinion of the state environmental expert review.

(iii) The Law on Environmental Expertise ensures compliance of economic and other activities with environmental requirements.2 This law is applied to projects that may have environmental impact, including feasibility studies as well as projects for construction, reconstruction, development, re-equipment, other projects that may have environmental impact, regardless of their estimate cost and title or ownership type.

(iv) The law obliges the project initiator to submit necessary documentation related to the project and its environmental impact to the state environmental expertise. The Expert Commission of the State Agency on Environment Protection and Forestry (SAEPF) is responsible for review of the submitted documentation.

(v) Positive decision of the state environmental expertise is required to trigger financing or implementation of the project. Negative opinion will ban implementation of the project.

(vi) One of the main opportunities for citizen’s participation and their associations in decision making on environmental protection and rational nature management is public environmental expertise. Two types of environmental review are implemented in the Kyrgyz Republic: state environmental expertise and public environmental expertise.

1 Government of the Kyrgyz Republic. 1999. Law on Environmental Protection. Bishkek. 2 Government of the Kyrgyz Republic.1999. Law on Environmental Expertise. Bishkek.

(vii) The Law of the Kyrgyz Republic on General Technical Regulations on Ensuring Ecological Safety sets general requirements on ensuring ecological safety during design and operation of economic and other activities involving production, storage, transportation and utilization of products.3 Based on the law, the risk categories for each subproject will be determined to fix arrangements for environmental impact assessment.

(viii) The Law of the Kyrgyz Republic on Water regulates relations in management and protection of water resources, prevention of adverse impact of economic and other activities on water bodies and waterworks facilities, reinforcement of legality in water related relations.4 This law regulates the quantity and the quality of waters discharged to nature, prohibits discharge of industrial, domestic, and other waste and effluents into water bodies.

(ix) The Law of the Kyrgyz Republic on Interstate Use of Water Bodies, Water Resources, and Water Management Facilities sets forth principles and main directions of the state policy on interstate use of water bodies, water resources, and water management facilities of the Kyrgyz Republic. This is not a direct action law as the law enforcement arrangements are not developed yet.

(x) Over 150 laws and normative acts on environmental protection can be found at http://www.nature.gov.kg/lawbase/index.htm.

2. The legislative acts listed above set forth the following key tasks on environment protection relevant to the Sustainable Rural Water Supply and Sanitation Development Project: (i) Obligatory state environmental review (expertise); (ii) Natural resources management standards; (iii) Protection of atmospheric air, land, and water from pollution and exhaustion; (iv) Improvement of environmental monitoring system; and (v) Norms of maximum safe levels of noise, vibration, and other hazardous physical impacts.

C. Institutional Framework for Environmental Assessment and Management

3. A range of government departments are responsible for management and protection of environment in the Kyrgyz Republic. The chief agency, the SAEPF, has the main mandate for implementation of legislation of environmental protection mentioned above.

Table 1: Major Government Bodies Performing Functions on Environmental Protection Source of ecological Agency Relevant Functions information State Agency on Environment 1. Sets the state policy on Atmospheric air and climate change Protection and Forestry under the environmental protection Water resources Government of the Kyrgyz 2. Promulgates norms of quality Land resources Republic and standards of Biodiversity www.nature.kg environmental protection State forest resources 3. Establishes special protected Wastes areas 4. Establishes the environmental

3 Government of the Kyrgyz Republic. 2009. Law of the Kyrgyz Republic on General Technical Regulations on Ensuring Ecological Safety. Bishkek. 4 Government of the Kyrgyz Republic. 1994. Law of the Kyrgyz Republic on Water. Bishkek. 57

Source of ecological Agency Relevant Functions information monitoring system 5. Carries out ecological review on project design and performing economic activity State Inspectorate on Performs control functions over Discharge of hazardous pollutants Environmental and Technical abidance of users of nature Discharge of wastewaters Information under the resources by the environmental Government of the Kyrgyz protection legislation. Republic www.get1.kg Kyrgyz Complex Hydrogeological Collects data related to the Data on reserves of ground waters, Expedition quantity and quality of ground mineral resources and use thereof State Agency for Geology and waters Mineral Resources www.geology.kg Ministry of Health Performs bacteriological and Drinking water quality Department for Sanitary chemical monitoring of the quality Morbidity rate Epidemiological Supervision of drinking water www.med.kg Agency for hydrometeorology Monitors the state of atmospheric Quality of atmospheric air under the Ministry for Emergency air and surface waters Quality of water resources Situations of the Kyrgyz Republic Wastes (uranium, etc.) (Kyrgyzgidromet) Hydrological data www.meteo.ktnet.kg Department of Water Management Plans, organizes, and implements Use of water resources, including and Melioration under the measures for administrative, intergovernmental water apportioning Ministry of Agriculture and economic, normative, and legal Melioration of the Kyrgyz regulation of water use during Republic operation of water management www.agroprod.kg facilities, protection of lands of water reserves Regulates interstate relations related to use of water resources that form on the territory of the Kyrgyz Republic Kyrgyz State Design Institute for It is the state design institute for Monitoring of land resources Land Management land management under the State Analysis of soil Kyrgyzgiprozem Registry. Planning the use of land resources It carries out a complex of land management and cadaster activities throughout the territory of the Kyrgyz Republic regardless of organizational and legal form of land managing entities. National Academy of Sciences Carries out scientific works on Flora, fauna, endemics listed in the www.nas.aknet.kg scientific, technical, and social Red Book of the Kyrgyz Republic progress issues conducive to strengthening of the economic sovereignty of the country, national and universal values, and environmental protection National Statistics Committee of It is the key state information and Statistics of the condition of the the Kyrgyz Republic statistical body that organizes and environment www.stat.kg manages accounting and statistics throughout the Kyrgyz Republic

4. Key government bodies related to the rural water supply and sanitation sector projects: (i) SAEPF - carries out state environmental expertise; (ii) State Inspectorate on Environmental and Technical Safety under the 58

Government of the Kyrgyz Republic - controls compliance with norms and rules of nature management and protection; (iii) State Agency for Geology and Mineral Resources - source of information on reserves of ground waters; (iv) Department for Sanitary Epidemiological Supervision - defining quality characteristics of drinking water; (v) Department of Water Management and Melioration - use of water resources, including interstate water apportioning issues; and (vi) Agency for Hydrometeorology - hydrological features of surface waters.

APPENDIX 6: RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – WATER SUPPLY

RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – WATER SUPPLY

Instructions:

(i) This checklist focuses on environmental issues and concerns.

(ii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

(iii) Complete this Screening Checklist and provide a recommendation on the category of the Project

Country/Project Title:

Sector:

Project Category:

Category A Category B Category C Category FI

Justification for Assigned Category ______

______

Screening Questions Yes No Remarks A. Project Siting Is the project area…

▪ Densely populated?

▪ Heavy with development activities?

▪ Adjacent to or within any environmentally sensitive areas?

• Cultural heritage site

• Protected Area

• Wetland

• Mangrove

Screening Questions Yes No Remarks • Estuarine

• Buffer zone of protected area

• Special area for protecting biodiversity

• Bay

B. Potential Environmental Impacts Will the Project cause…

▪ pollution of raw water supply from upstream wastewater discharge from communities, industries, agriculture, and soil erosion runoff?

▪ impairment of historical/cultural monuments/areas and loss/damage to these sites?

▪ hazard of land subsidence caused by excessive ground water pumping?

▪ social conflicts arising from displacement of communities?

▪ conflicts in abstraction of raw water for water supply with other beneficial water uses for surface and ground waters?

▪ unsatisfactory raw water supply (e.g. excessive pathogens or mineral constituents)?

▪ delivery of unsafe water to distribution system?

▪ inadequate protection of intake works or wells, leading to pollution of water supply?

▪ over pumping of ground water, leading to salinization and ground subsidence?

▪ excessive algal growth in storage reservoir?

▪ increase in production of sewage beyond capabilities of community facilities?

▪ inadequate disposal of sludge from water treatment plants?

▪ inadequate buffer zone around pumping and treatment plants to alleviate noise and other possible nuisances and protect facilities?

▪ impairments associated with transmission lines and access roads?

▪ health hazards arising from inadequate design of facilities for receiving, storing, and handling of chlorine and other hazardous chemicals.

▪ health and safety hazards to workers from handling and management of chlorine used for disinfection, other contaminants, and biological and physical hazards during project construction and operation?

Screening Questions Yes No Remarks ▪ dislocation or involuntary resettlement of people?

▪ disproportionate impacts on the poor, women and children, Indigenous Peoples or other vulnerable groups?

▪ noise and dust from construction activities?

▪ increased road traffic due to interference of construction activities?

▪ continuing soil erosion/silt runoff from construction operations?

▪ delivery of unsafe water due to poor O&M treatment processes (especially mud accumulations in filters) and inadequate chlorination due to lack of adequate monitoring of chlorine residuals in distribution systems?

▪ delivery of water to distribution system, which is corrosive due to inadequate attention to feeding of corrective chemicals?

▪ accidental leakage of chlorine gas?

▪ excessive abstraction of water affecting downstream water users?

▪ competing uses of water?

▪ increased sewage flow due to increased water supply

▪ increased volume of sullage (wastewater from cooking and washing) and sludge from wastewater treatment plant

▪ large population influx during project construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

▪ social conflicts if workers from other regions or countries are hired?

▪ risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during operation and construction?

▪ community safety risks due to both accidental and natural hazards, especially where the structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

APPENDIX 7: RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – SEWAGE TREATMENT 64

RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – SEWAGE TREATMENT

Instructions: (i) This checklist focuses on environmental issues and concerns.

(ii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

(iii) Complete this Screening Checklist and provide a recommendation on the category of the Project

Country/Project Title:

Sector:

Project Category:

Category A Category B Category C Category FI

Justification for Assigned Category ______

______

Screening Questions Yes No Remarks B. Project Siting Is the project area…

▪ Densely populated?

▪ Heavy with development activities? ▪ Adjacent to or within any environmentally sensitive areas?

• Cultural heritage site

• Protected Area

• Wetland

• Mangrove

• Estuarine

• Buffer zone of protected area

Screening Questions Yes No Remarks • Special area for protecting biodiversity

• Bay

A. Potential Environmental Impacts Will the Project cause…

▪ impairment of historical/cultural monuments/areas and loss/damage to these sites?

▪ interference with other utilities and blocking of access to buildings; nuisance to neighboring areas due to noise, smell, and influx of insects, rodents, etc.?

▪ dislocation or involuntary resettlement of people?

▪ disproportionate impacts on the poor, women and children, Indigenous Peoples or other vulnerable groups?

▪ impairment of downstream water quality due to inadequate sewage treatment or release of untreated sewage?

▪ overflows and flooding of neighboring properties with raw sewage?

▪ environmental pollution due to inadequate sludge disposal or industrial waste discharges illegally disposed in sewers?

▪ noise and vibration due to blasting and other civil works?

▪ risks and vulnerabilities related to occupational health and safety due to physical, chemical, and biological hazards during project construction and operation?

▪ discharge of hazardous materials into sewers, resulting in damage to sewer system and danger to workers?

▪ inadequate buffer zone around pumping and treatment plants to alleviate noise and other possible nuisances, and protect facilities?

▪ road blocking and temporary flooding due to land excavation during the rainy season?

▪ noise and dust from construction activities?

▪ traffic disturbances due to construction material transport and wastes?

▪ temporary silt runoff due to construction?

▪ hazards to public health due to overflow flooding, and groundwater pollution due to failure of sewerage system?

Screening Questions Yes No Remarks ▪ deterioration of water quality due to inadequate sludge disposal or direct discharge of untreated sewage water?

▪ contamination of surface and ground waters due to sludge disposal on land?

▪ health and safety hazards to workers from toxic gases and hazardous materials which maybe contained in confined areas, sewage flow and exposure to pathogens in untreated sewage and unstabilized sludge?

▪ large population increase during project construction and operation that causes increased burden on social infrastructure (such as sanitation system)?

▪ social conflicts between construction workers from other areas and community workers?

▪ risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during construction and operation?

APPENDIX 8: INVOLUNTARY RESETTLEMENT IMPACT CATEGORIZATION CHECKLIST

INVOLUNTARY RESETTLEMENT IMPACT CATEGORIZATION CHECKLIST

Involuntary Resettlement Impact Categorization

Date:

A. Project Data Country / Project No. / Project Title

B. Involuntary Resettlement Category [ ✔ ] New [ ] Re-categorization ― Previous Category [ ]

Category A Category B Category C Category FI

C. Comments by Project:

ARIS Field Team: Consultant:

D. Approval

Prepared by:

Date:

Not Involuntary Acquisition of Land Yes No Remarks known

1. Will there be any land acquisition?

2. Is the site for land acquisition known? 3. Is the ownership status and current usage of land to be acquired, known? 4. Will easement be utilized within an existing Right of Way (ROW)?

5. Will there be loss of homes and residential land due to land acquisition? 6. Will there be loss of agricultural and other productive assets due to land acquisition?

7. Will there be losses of crops, trees, and fixed assets due to land acquisition?

8. Will there be loss of businesses or enterprises due to land acquisition?

9. Will there be loss of income sources and means of livelihoods due to land acquisition? 10. Will people lose access to natural resources, communal facilities and services? 11. If land use is changed, will it have an adverse impact on social and economic activities?

12. Will access to land and resources owned communally or by the state be restricted? Information on Displaced Persons: 13. Any estimates of the likely number of persons that will be displaced by the Project? [ ] No [ ] Yes, If yes, approximately how many? 14. Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes 15. Are any displaced persons from indigenous or ethnic minority groups? [ ] No [ ] yes If yes, which group and the population size.

16. Any other adverse effects on private and community land and assets? If yes, please list and describe

APPENDIX 9: SITE SELECTION CRITERIA

SITE SELECTION CRITERIA

The safeguard staff of the Community Development and Investment Agency (ARIS) will apply the criterion provided below during the site selection process in order to screen and categorize potential sites from environmental and social aspects to ensure no site(s) fall in category A as per Asian Development Bank Safeguard Policy Statement 2009 (ADB SPS 2009).

This criterion will be used to complement the ADB rapid environmental assessment (REA) and involuntary resettlement (IR) and indigenous peoples (IP) checklists to screen and categorize program activities and is intended to focus on the critical safeguards triggers during the site selection process.

Table 1: Critical Safeguards Triggers for Site Selection

Screening Question Response (Yes/No) & Any Additional Remarks Is project activity to be conducted adjacent to or within any: ▪ Cultural heritage site1 ▪ Protected area ▪ Wetland ▪ Mangrove ▪ Estuarine ▪ Buffer zone of protected area ▪ Special area for protecting biodiversity ▪ Bay

▪ Are 200 or more people expected to be relocated; ▪ Lose 10% or more of their productive or income generating assets?

Are there any indigenous people residing in the project area(s)?

Note: If response to any two of the screening questions above is YES, then in all likelihood the project is category A and must be screened out.

1 This will include any sites that may be considered as critical habitats, including habitat for endangered or critically endangered species; areas having special significance for endemic or restricted-range species; sites critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or that are associated with key evolutionary processes, or provide key ecosystem services; and areas having biodiversity of significant social, economic, or cultural importance to local communities. 72

APPENDIX 10: COMPARISON OF LAND ACQUISITION AND RESETTLEMENT PROVISIONS BETWEEN ADB POLICY AND KYRGYZ LEGISLATION 73

COMPARISON OF LAND ACQUISITION AND RESETTLEMENT PROVISIONS BETWEEN ADB POLICY AND KYRGYZ LEGISLATION

ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs 1. Livelihood ADB policy requires Notion of livelihood No Policy reconciliation rehabilitation rehabilitation/improvement of rehabilitation not needs. Application already DP livelihood standards. sanctioned by national law. reconciled in previous ADB projects but to be formalized regarding indirect/livelihood impacts rehabilitation. 2. Compensation A. DPs with formal title have to A. DPs with formal title are A. Same in principle/ entitlements be compensated for lost compensated for lost application. No reconciliation land/other assets. land/other assets. needed B. DPs with formalizable title B/C. DPs with legalizable B/C. Critically different in have right to be compensated or no legal title. Legalizable principle and application. for lost land and assets after the are not distinguished and Application already EAs helps them in legalizing considered non-legal as reconciled in previous ADB their assets. legalization is a burden of projects but formal C. DPs with no legal title are the DPs. Non-legal DPs reconciliation on both counts compensated for lost non-land have no right to be through a decree for ADB assets. compensated for land and projects is needed. non-land assets. 3. Compensation A. Permanent loss of land. A. Permanent loss of land. A. Same in principle/ Replacement land as preferred Cash compensation at application. Technical option or cash compensation at market rate or replacement improvement of valuation full market rate. At least for land for legal/ legalizable mechanisms/process legal/legalizable DPs. DPs. needed. B. Replacement of leased land. B. Replacement of leased B. Same in principle. Based on replacement of lost land. Based on lease Application to be further income through cash replacement. improved. No reconciliation compensation of gross income needed but a method to x the remaining lease years or replace the lease in cash is through a replacement land needed. To be reflected lease through an instruction for ADB projects.

C. Loss of structures/ buildings. C. Loss of C. Different in policy and Cash compensation at structures/buildings. Cash application. Informally replacement cost for lost item compensation at market reconciled in previous free of depreciation, transaction rate deduced of projects but formal costs, other deductions depreciation. application reconciliation by a decree for ADB projects needed. D. Loss of indirectly affected D. Loss of indirectly D. The Kyrgyz Republic law items. Non-affected parts of an affected assets. Law is is silent on this point. While asset no longer usable after silent on how to no reconciliation is needed impact will have to be compensate when only part the point needs to be clearly compensated as well. of the land is to be taken. agreed and sanctioned through a decree for ADB projects.

ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs E. Business losses. E. Loss of business. Cash E. Same in principle but Reimbursement of actual losses compensation at market ADB does not consider + business re-establishment value for all damages/ opportunity cost. Application costs. For application based on opportunity costs incurred. reconciliation needed to tax declared income for period Burden of proving define a clear methodology of business stoppage. In opportunity costs rests on and distinguish short- and absence of tax declaration the DP based on long-term losses. based on maximum non-taxable recognized documented salary. evidence but no clear methodology. F. Loss of wood/unproductive F. Loss of F. Same in principle, trees. Irrespective of legal land wood/unproductive trees. different in application. occupancy status compensation Mandate in general terms Already adjusted for at market rate. Application by the law but often not previous ADB projects but based on tree type/ wood provide as leaving the Application reconciliation is volume or other methods salvaged timber to the DPs needed through a decree for ensuring DPs’ rehabilitation. is equated with ADB projects ensuring that compensation. also cash compensation is provided by default. G. Loss of productive trees. G. Loss of productive trees. G. Same in principle Compensation at replacement Mandate by law but different in application. cost based for application on selectively applied Already adjusted for various methods: tree depending on situation. previous ADB projects. reproduction cost, income lost Valuation standards differ Application reconciliation (x tree type x market value of 1- from SPS standards. needed through a decree for year income x number of years ADB projects ensuring needed to grow the tree to its systematic law full production). implementation and use of valuation standards fitting SPS. H. Loss of crops. Compensation H. Loss of crops. Mandated H. As above. of crop in cash at market price. by law but selectively applied. I. Loss of jobs. Indemnity for I. Loss of jobs. I. Same in principle but lost income ensuring DP’s Compensation for loss of different in implementation. rehabilitation. Based for employment equal to 3 Application reconciliation application on stoppage period months average salary + needed through a decree for up to a maximum of 12 months severance pay worth at ADB projects establishing of declared salary (formal least 2 months average mechanisms to asses employees) or minimum salary salary. Compensation temporary/permanent (informal employees.) provided by employer and income loss indemnity of Compensation directly then reimbursed by EA. both formal and informal disbursed to DPs. employees and guaranteeing direct disbursement to the DPs. 75

ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs 4. LAR Planning, A. Resettlement plan (LARP). A. Resettlement plan. A. Partly different in principle assessment and LARP preparation includes: a) There are no requirements and application. No valuation of impacts assessment/DP to prepare integrated and reconciliation needed as impacts census; b) definition of stand-alone LARPs. LAR law/regulation is silent on entitlements, income/livelihood planning entails similar but this matter and SPS restoration strategy, compliance less extensive/simpler requirements have been & grievance mechanisms, assessment/survey efforts already applied in previous institutional arrangements; c) than ADB policy, as ADB projects. Still, clear consultation results; d) detailed below: instructions regarding ADB monitoring schemes; e) budget projects ensuring the and implementation schedule. measurement of all impacts LARP requires the following and the counting of all DP surveys: are needed for mainstreaming purposes. i. Measurement survey. i. Measurement survey. i. Detailed Measurement Measures all affected items. Land and buildings impacts Surveys to be mainstreamed measured. Other impacts for all impacts. identified but not measured. ii. DP census. Identifies all DPs ii. DPs identification. ii. Detailed count of and establishes legitimate Identifies only legal DPs. individuals to be beneficiaries based on legal mainstreamed. status. iii. Socioeconomic survey. iii. Socioeconomic survey. iii. The execution of the Provides background No comparable survey is to be information on DP’ requirements exist. mainstreamed. socioeconomic features. iv. Valuation survey iv. Valuation survey iv. Valuation survey a) Land: If land market exists, a) Land: valued at market a) Same in based on a survey of recent rate based on a principle/application; transactions; without land transactions survey. market based on land Valuation includes productivity/ income. transaction costs/third party liabilities. b) Buildings and structures. b) Buildings and structures. b) Already reconciled for Replacement cost of materials, Market value of materials, previous ADB projects but labor and transport and special labor, transport and special formal reconciliation features of building/structure building features but needed. without discounting discounted for depreciation, depreciation, salvaged salvaged materials or materials and transaction costs. transaction costs. c) Trees/crops. Based on the c) Trees/crops. If c) Already reconciled for methodology detailed in section compensated is provided previous ADB projects but 2. based on the methodology formal reconciliation needed detailed in section 3H or (See 3.H. above). Detailed based on an agreed lump valuation for each tree sum. based on SPS requirements to be mainstreamed. 5. Procedural A. Information disclosure. A. Information disclosure. A. Different in principle and mechanisms Resettlement-related No disclosure requirement application. Already documents to be timely exists. reconciled for ADB projects. disclosed in the DPs’ language. B. Public consultation. B. Public consultation. B. Same in principle but Meaningful public consultations Matters of local importance different in application. are to be held with the DPs. to be publicly discussed Already reconciled for ADB DPs should be informed about with local authorities. But projects. Better application their entitlements and options, no requirement to consult needed. as well as resettlement directly the DPs. alternatives. 76

ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs C. Grievance procedure. A C. Grievance procedures. C. Same in principle but GRM is to be established for Each state agency/ministry different in application. each project. Information on should define a process for Already reconciled for ADB GRM to be communicated to registering and reviewing projects. Better application the DPs. the concerns and claims needed. from citizens. D. Asset acquisition conditions. D. Asset acquisition D. Same in principle, but Property can be acquired only conditions. Property can be unsystematic in application. after full compensation is paid acquired only after full Application to be improved. to the DPs. compensation is paid to DPs. 6. Assistance to A. These DPs are to be A. No special consideration A. Critically different in vulnerable and identified and special is given to these DPs. principle/ application. severely assistance is provided to Permanent reconciliation affected DP restore/ improve their pre- through a decree for ADB project level of livelihoods. projects needed. ADB = Asian Development Bank, DP = displaced person, EA = executing agency, LAR = land acquisition and resettlement, LARP = land acquisition and resettlement plan, SPS = Safeguard Policy Statement. * As applied in ADB resettlement plans in the Kyrgyz Republic.

APPENDIX 11: ENVIRONMENTAL ASSESSMENT REVIEW FRAMEWORK

Environmental Assessment and Review Framework

June 2019

KGZ: Preparing the Naryn Rural Water Supply and Sanitation Development Program

Prepared by the Kyrgyz Republic Community Development and Investment Agency for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 3 June 2019) Currency unit – som (Som) Som1.00 = $0.0143 $1.00 = Som70

ABBREVIATIONS ADB – Asian Development Bank ARIS – Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency) CSC – construction supervision consultant DDWSSD – Department for Drinking Water Supply and Sewerage Development EA – executing agency EARF – environmental assessment review framework EIA – environment impact Assessment EMP – environmental management plan FI – financial intermediary IA – implementing agency IEE – initial environmental examination IFC – International Finance Corporation LARP – land acquisition and resettlement plan Leq – equivalent sound pressure level NGO – nongovernment organization NRWSSD – Naryn Rural Water Supply and Sanitation Development Program O&M – operation & maintenance PC – public consultation REA – rapid environmental assessment RBL – results-based lending RP – resettlement plan SPS – Safeguard Policy Statement SSEMP – site-specific environmental management plan WB – World Bank WHO – World Health Organization

NOTE In this report, "$" refers to United States dollars unless otherwise stated.

This environmental assessment and review framework 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. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENT

I. INTRODUCTION 82 A. Background 82 B. Purpose of Environmental Assessment and Review Framework 83 C. Environmental Categorization 83 II. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY 85 A. Legal Framework for Environmental Assessment and Management 85 B. Institutional Framework for Environmental Assessment and Management 86 C. ADB Policies 88 D. Implications of ADB’s Safeguard Policies on Proposed Project 89 E. Comparison of Requirements of ADB SPS 2009 with Kyrgyz Legislation on Environment 90 III. ANTICIPATED ENVIRONMENTAL IMPACTS 94 IV. CONSULTATION, INFORMATION DISCLOSURE AND GRIEVANCE REDRESS MECHANISM 97 A. Public Consultation and Information Disclosure 97 B. Grievance Redress Mechanism 97 V. INSTITUTIONAL ARRANGEMENT AND RESPONSIBILITIES 98 A. Institutional Arrangement 98 B. Responsibilities 99 C. Staffing Requirements and Budget 100 VI. MONITORING AND REPORTING 100

ANNEXES 1. ADB Rapid Environmental Assessment Checklist – Water Supply 2. ADB Rapid Environmental Assessment Checklist – Sewage Treatment 3. Site Selection Criteria 4. Outline of an Initial Environmental Examination Report

ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK

I. INTRODUCTION

A. Background

The national development strategy (NDS) (2018–2040) prioritizes access to clean drinking water and sanitary facilities for all settlements in the country, through construction and rehabilitation of infrastructure, proper operations and maintenance (O&M), and financial and institutional sustainability of water supply and sanitation (WSS) systems. The strategy aims to provide clean drinking water to 95% of settlements in the Kyrgyz Republic, with over 2 million people in 653 villages in rural areas having access to a centralized water supply. This includes the provision of improved water and sanitation systems in 43 villages in Naryn oblast.1 In line with the strategy of the Asian Development Bank (ADB), the program will support the national NDS provide access to safe water supply and improved sanitation for rural communities in Naryn oblast.

At the impact level, the results-based lending (RBL, or the program) is aligned with the Government of Kyrgyz Republic’s goal of improving the health and quality of life of residents and reducing adverse environmental impact by 2026.2 The program’s outcome will be an enhanced, inclusive, and reliable access to safe water supply and improved sanitation facilities for rural communities in Naryn oblast, with a priority focus on 64,000 population.3 The ADB shall be providing $21.4 million (83%) as financial support for the program while counterpart funding from the Government of Kyrgyz Republic will be $4.3 million (17%).

The Naryn Rural Waters Supply and Sanitation Development (NRWSSD) program will support the government’s efforts to improve rural water supply and sanitation (RWSS) in 43 villages in Naryn province (oblast) while the government’s overall program consists of development of improving RWSS in 163 villages. The indicative program scope will include (i) development and rehabilitation of water supply networks and related infrastructure; (ii) piloting of non-networked sanitation solutions; and (iii) establishment of sustainable operational models, including development of local capacity and community based operational management.

The proposed nature of activities under the NRWSSD program shall consist primarily of small-scale earth works in a number of works contracts for drilling and installation of deep wells, construction of village water supply storage tanks, disinfection stations, main water distribution pipes, water distribution networks, and individual sanitation systems for households and social facilities, including community health clinics and schools. In addition, consultants will be recruited to carry out field surveys and detailed engineering design, design supervision, and construction supervision.

This environmental assessment review framework (EARF) document has been prepared for the NRWSSD, which is proposed for ADB financing using a RBL modality. The development

1 Government of the Kyrgyz Republic. 2018. National Development Strategy of Kyrgyztan for 2018–2040. Bishkek. 2 Government of Kyrgyz Republic. 2016. Strategy for Development of Water Supply and Sewerage Systems in Settlements of the Kyrgyz Republic until 2026. Bishkek. 3 If more funds are mobilized during the program period, coverage will be expanded from 64,000 to 90,000 population (which is the estimated population of 43 villages in Naryn oblast identified by the Government for ADB support).

of the WSS infrastructure under the RBL program will trigger ADB’s environment, involuntary resettlement, and indigenous peoples safeguards policies.4

The executing agency (EA) for the program will be the Department for Drinking Water Supply and Sewerage Development (DDWSSD) under the State Agency for Water Resources and the implementing agency (IA) will be the Community Development and Investment Agency (ARIS).

B. Purpose of Environmental Assessment and Review Framework

The EARF aims to provide guidance on safeguard screening, assessment, institutional arrangements, and processes to be followed for components of the project, where design and/or activity selection takes place after ADB Board approval. The activity selection will be in accordance with the environmental activity selection criteria as outlined in the EARF. The implementing agency (ARIS) will agree with ADB on screening and categorization, environmental assessment, preparation and implementation, monitoring of the activities to facilitate compliance with the requirements specified in ADB Safeguard Policy Statement 2009 (ADB SPS 2009) and government rules and laws.

This EARF (i) describes the program and its components; (ii) explains the general anticipated environmental impacts and mitigation measures for the proposed activities, which will be financed under the program after ADB Board approval; (iii) specifies the requirements that will be followed in relation to screening and categorization, assessment, and planning, including arrangements for meaningful consultation with affected people and other stakeholders and information disclosure requirements; (iv) assesses the capability of the project proponents to implement national laws and ADB’s requirements, and identifies needs for capacity building; (v) specifies implementation procedures, institutional arrangements, and capacity development requirements; and (vi) specifies monitoring and reporting requirements.

This EARF provides guidance towards environmental assessment and reporting requirements to comply with both ADB and government policies.

C. Environmental Categorization

Under the program, no high-risk activities shall be permitted that may fall into category A and require preparation of an environmental impact assessment (EIA) as per ADB SPS 2009. Any activities that might generate the most adverse environmental and social impacts shall fall into this category. Screening to ensure all such activities are excluded from the program shall be conducted by the IA (ARIS) based on the ADB rapid environmental assessment (REA) checklists for environment (i) water supply and (ii) sewerage treatment, provided as Annexes 1 and 2. Based on the screening of each activity, a checklist will be completed that will assign a category for that activity and shall also provide a justification for assigning that specific category. The joint environment and social safeguards site selection criteria to be used by ARIS for screening of activities to ensure any category A activity is screened out is provided as Annex 3.

64. As part of the screening activity, ARIS must apply the ADB’s Prohibited Investment Activities List (PIAL) and must ensure the condition of permitting purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20% is satisfied by making it mandatory to (Appendix 13):

4 ADB. 2009. Safeguard Policy Statement. Manila.

(i) conduct an assessment of the existing structures that need to be demolished/removed, to evaluate the risk of asbestos presence; and (ii) implement a screening of procurement procedures to ensure that asbestos- containing materials will not be used and/or financed by the project.

The typology of construction works that will be conducted under the RBL program is provided in Table 1 below. As can be observed, the program activities are all site-specific, short- term in nature and would result in minor impacts with no category A activity planned under the program.

Table 1: Typology of Activities in Program Activities Pictures of proposed tasks Water Supply Infrastructure Drilling and installation of deep wells Tasks involved: ▪ move machinery and staff (2–3 persons) to site ▪ installing machinery at location of borehole ▪ operate machinery and drill to required depth ▪ dispose of sludge/wet mud produced as a result of drilling operation ▪ attach motor/outlet to borehole ▪ remove all piping used for drilling and cleanup site

Laying of main water distribution pipes and water distribution networks Tasks involved: ▪ move machinery and staff (approx. 10 persons) to site ▪ use machinery to excavate the pipe corridor by removing soil until required depth to prepare trench for laying of main water pipe ▪ place pipe in the trenches ▪ use the excavated clay and mud for backfilling of trenches ▪ remove all leftover construction material and cleanup site

Laying of pipes for water distribution networks Tasks involved: ▪ move machinery and staff (approx. 4 persons) to site ▪ use machinery to excavate the pipe corridor by removing soil until required depth to prepare small trench for laying of water distribution pipe ▪ place pipe in the small trenches ▪ use the excavated clay and mud for backfilling of the small trenches ▪ remove all leftover construction material and cleanup site

Sanitation System Infrastructure Individual sanitation systems for households and social facilities, incl. clinics and schools Tasks involved: ▪ move machinery and staff (approx. 6 persons) to site ▪ construct sewerage collection tank ▪ construct toilet building/civil structure and install toilet fittings ▪ install piping to connect sewerage collection tank with toilet ▪ remove all leftover construction material and cleanup site

II. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY

A. Legal Framework for Environmental Assessment and Management

The main normative documents governing the environmental protection activities are: (i) Constitution of the Kyrgyz Republic 2010 is the foundation for the whole normative and legal framework. It stipulates the right of all citizens for an environment favorable for human’s life and health and compensation for damage caused to health or property by nature management activities;

(ii) The Law on Environmental Protection is basis for comprehensive regulation of public relations in the sphere of interaction between the society and the nature.5 It sets basic principles of environmental protection and stipulates legal authorities for creating environmental quality, marking special protected territories, promulgation of rules and procedures for natural resources management, setting the environmental monitoring and oversight system, and reinforcing the emergency response procedures.

The law prohibits financing and implementation of projects involving the use of natural resources without obtaining the positive opinion of the state environmental expert review.

(iii) The Law on Environmental Expertise ensures compliance of economic and other activities with environmental requirements.6 This law is applied to projects that may have environmental impact, including feasibility studies as well as projects for construction, reconstruction, development, re-equipment, other projects that may have environmental impact, regardless of their estimate cost and title or ownership type.

5 Government of the Kyrgyz Republic. 1999. The Law on Environmental Protection. Bishkek. 6 Government of the Kyrgyz Republic. 1999. The Law on Environmental Expertise. Bishkek.

(v) Positive decision of the State Environmental Expertise is required to trigger financing or implementation of the project. Negative opinion will ban implementation of the project.

(vi) One of the main opportunities for citizen’s participation and their associations in decision-making on environmental protection and rational nature management is public environmental expertise. Two types of environmental review are implemented in the Kyrgyz Republic: state environmental expertise and public environmental expertise.

(vii) The Law of the Kyrgyz Republic on General Technical Regulations on Ensuring Ecological Safety sets general requirements on ensuring ecological safety during design and operation of economic and other activities involving production, storage, transportation, and utilization of products.7 Based on the law, the risk categories for each subproject will be determined to fix arrangements for the EIA.

(viii) The Law of the Kyrgyz Republic on Water regulates relations in management and protection of water resources, prevention of adverse impact of economic and other activities on water bodies and waterworks facilities, reinforcement of legality in water related relations.8 This law regulates the quantity and the quality of waters discharged to nature, prohibits discharge of industrial, domestic, and other waste and effluents into water bodies.

(ix) The Law of the Kyrgyz Republic on Interstate Use of Water Bodies, Water Resources, and Water Management Facilities sets forth principles and main directions of the state policy on interstate use of water bodies, water resources, and water management facilities of the Kyrgyz Republic. This is not a direct-action law as the law enforcement arrangements are not developed yet.

(x) Over 150 laws and normative acts on environmental protection can be found at http://www.nature.gov.kg/lawbase/index.htm.

The legislative acts listed above set forth the following key tasks on environment protection relevant to the proposed RBL program on WSS in Naryn oblast: obligatory state environmental review (expertise); natural resources management standards; protection of atmospheric air, land, and water from pollution and exhaustion; improvement of environmental monitoring system; and norms of maximum safe levels of noise, vibration and other hazardous physical impacts.

B. Institutional Framework for Environmental Assessment and Management

7 Government of the Kyrgyz Republic. 2009. The Law of the Kyrgyz Republic on General Technical Regulations on Ensuring Ecological Safety. Bishkek. 8 Government of the Kyrgyz Republic. 1994. The Law of the Kyrgyz Republic on Water. Bishkek.

A range of government departments are responsible for management and protection of environment in the Kyrgyz Republic. The chief agency is the SEAPF, which has the main mandate for implementation of legislation of environmental protection mentioned above.

Table 2: Major Government Bodies Performing Functions on Environmental Protection Agency Relevant Functions Source of ecological information State Agency on Environment ▪ Sets the state policy on ▪ Atmospheric air and climate change Protection and Forestry under environmental protection ▪ Water resources the Government of the Kyrgyz ▪ Promulgates norms of quality and ▪ Land resources Republic standards of environmental ▪ Biodiversity www.nature.kg protection ▪ State forest resources ▪ Establishes special protected ▪ Wastes areas ▪ Establishes the environmental monitoring system ▪ Carries out ecological review on project design and performing economic activity

State Inspectorate on Performs control functions over ▪ Discharge of hazardous pollutants Environmental and Technical abiding of users of nature ▪ Discharge of wastewaters Information under the resources by the environmental Government of the Kyrgyz protection legislation. Republic www.get1.kg Kyrgyz Complex Collects data related to the quantity Data on reserves of ground water, Hydrogeological and quality of ground waters mineral resources, and use thereof Expedition State Agency for Geology and Mineral Resources www.geology.kg Ministry of Health Performs bacteriological and ▪ Drinking water quality Department for Sanitary chemical monitoring of the quality ▪ Morbidity rate Epidemiological Supervision of drinking water www.med.kg

Agency for Hydrometeorology Monitors the state of atmospheric ▪ The quality of atmospheric air under the Ministry for air and surface waters ▪ The quality of water resources Emergency ▪ Wastes (uranium, etc.) Situations of the Kyrgyz ▪ Hydrological data Republic (Kyrgyzgidromet) www.meteo.ktnet.kg

Department of Water ▪ Plans, organizes, and Use of water resources, including Management implements measures for intergovernmental water apportioning and Melioration under the administrative, economic, Ministry of Agriculture and normative, and legal regulation of Melioration of the Kyrgyz water use during operation of Republic water management facilities, www.agroprod.kg protection of lands of water reserves ▪ Regulates interstate relations related to use of water resources that form on the territory of the Kyrgyz Republic

Agency Relevant Functions Source of ecological information Kyrgyz State Design Institute for It is the state design institute for ▪ Monitoring of land resources Land Management; land management under the State ▪ Analysis of soil Kyrgyzgiprozem Registry. It carries out a complex of ▪ Planning the use of land resources land management and cadaster activities throughout the territory of the Kyrgyz Republic regardless of organizational and legal form of land managing entities.

National Academy of Sciences Carries out scientific works on ▪ Flora, www.nas.aknet.kg scientific, technical, and social ▪ Fauna progress issues conducive to ▪ Endemics listed in the Red Book of the strengthening of the economic Kyrgyz Republic sovereignty of the country, national and universal values, and environmental protection

National Statistics Committee of It is the key state information and Statistics of the condition of the the Kyrgyz Republic statistical body that organizes and environment. www.stat.kg manages accounting and statistics throughout the Kyrgyz Republic

C. ADB Policies

1. ADB’s Safeguard Policy Statement 2009

The ADB SPS 2009 requires that environmental considerations be incorporated into ADB- funded projects to ensure that the project will have minimal environmental impacts and be environmentally sound. Occupational health and safety of the local population should also be addressed as well as the project workers as stated in SPS. A grievance redress mechanism (GRM) to receive application and facilitate resolution of affected peoples’ concerns, complaints, and grievances about the project’s environmental performance is also established.

All loans and investments are subject to categorization to determine environmental assessment requirements. Categorization is to be undertaken using rapid environmental assessment (REA) checklists, consisting of questions relating to (i) the sensitivity and vulnerability of environmental resources in project area, and (ii) the potential for the project to cause significant adverse environmental impacts. Projects are classified into one of the following environmental categories: (i) Category A. A proposed project is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An EIA is required. (ii) Category B. A proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination (IEE) is required. (iii) Category C. A proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. No environmental assessment is required although environmental implications need to be reviewed.

(iv) Category FI. A proposed project is classified as category FI if it involves investment of ADB funds to or through a financial intermediary (FI).

2. ADB’s Access to Information Policy 2018

ADB’s new Access to Information Policy (AIP), reflects the ADB’s ongoing commitment to transparency, accountability, and participation by stakeholders. The policy contains principles and exceptions to information sharing with external stakeholders, led by a new overarching principle of clear, timely, and appropriate disclosure.

3. ADB’s Accountability Mechanism Policy 2012

The objectives of the Accountability Mechanism is providing an independent and effective forum for people adversely affected by ADB-assisted projects to voice their concerns and seek solutions to their problems, and to request compliance review of the alleged noncompliance by ADB with its operational policies and procedures that may have caused, or is likely to cause, them direct and material harm. The Accountability Mechanism is a last resort mechanism.

D. Implications of ADB’s Safeguard Policies on Proposed Project

The objectives of ADB’s safeguards are to: (i) avoid adverse impacts of projects on the environment and affected people, where possible; (ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and (iii) help borrowers/clients to strengthen their safeguard systems.

ADB’s SPS sets out the policy objectives, scope and triggers, and principles for three key safeguard areas: (i) environmental safeguards, (ii) involuntary resettlement safeguards, and (iii) indigenous peoples safeguards.

The objective of the environmental safeguards is to ensure the environmental soundness and sustainability of projects and to support the integration of environmental considerations into the project decision-making process. ADB’s policy principles are summarized in Table 3 below.

Table 3: ADB Policy Principles Policy principle Summary 1 Screening and categorization Screening process initiated early to determine the appropriate extent and type of environmental assessment. 2 Environmental assessment Conduct an environmental assessment to identify potential impacts and risks in the context of the project’s area of influence. 3 Alternatives Examine alternatives to the project’s location, design, technology, and components and their potential environmental and social impacts, including no project alternative. 4 Impact mitigation Avoid, and where avoidance is not possible, minimize, mitigate, and/or offset adverse impacts and enhance positive impacts. Prepare an environmental management plan. 5 Public consultations Carry out meaningful consultation with affected people and facilitate their informed participation. Involve stakeholders early in the project preparation process and ensure that their views and concerns are made known to and understood by decision makers and taken into account.

Policy principle Summary Continue consultations with stakeholders throughout project implementation. Establish a grievance redress mechanism. 6 Disclosure of environmental Disclose a draft environmental assessment in a timely manner, in an assessment accessible place and in a form and language(s) understandable to stakeholders. Disclose the final environmental assessment to stakeholders. 7 Environmental management plan Implement the environmental management plan and monitor its effectiveness. Document monitoring results and disclose monitoring reports. 8 Biodiversity Do not implement project activities in areas of critical habitats. 9 Pollution prevention Apply pollution prevention and control technologies and practices consistent with international good practices. Adopt cleaner production processes and good energy efficiency practices. Avoid pollution, or, when avoidance is not possible, minimize or control the intensity or load of pollutant emissions and discharges. Avoid the use of hazardous materials subject to international bans or phaseouts. 10 Occupational health and Provide workers with safe and healthy working conditions and prevent community safety accidents, injuries, and disease. Establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities 11 Physical cultural resources Conserve physical cultural resources and avoid destroying or damaging them. Provide for the use of “chance find” procedures.

E. Comparison of Requirements of ADB SPS 2009 with Kyrgyz Legislation on Environment

The comparison of national Kyrgyz Republic requirements with the ADB policy principles and the existing gaps along with required actions by ARIS to overcome these gaps are provided in Table 4 below.

Table 4: Comparison of Kyrgyz Regulations on Environment with ADB Policy Principles & Required Actions by ARIS National System requirements & Required Actions by ARIS Policy Principles Gaps with ADB SPS Principle 1: Use a screening process ARIS, as the IA, will screen all ARIS safeguards staff must use for each proposed project, as early as project activities at the earliest in REA checklists for screening of all possible, to determine the appropriate order to screen out any category A activities to ensure no category A extent and type of environmental activities. activity is included in the RBL assessment so that appropriate program. studies are undertaken commensurate with the significance of potential impacts and risks. Principle 2: Conduct an environmental • The national environmental • ARIS will ensure the EARF assessment for each proposed project assessment requirements do not document is used by the to identify potential direct, indirect, distinguish between direct and consultants engaged by them for cumulative, and induced impacts and indirect impacts, do not mention preparing the EIA to obtain the risks to physical, biological, cumulative impacts and do not national approval from the socioeconomic (including impacts on mention induced impacts. SAEPF. livelihood through environmental • There is no provision for gender • Use of the EARF as a guideline media, health and safety, vulnerable aspects. by the ARIS consultants will groups, and gender issues), and • The EIA regulations do not ensure all gaps identified here physical cultural resources in the provide any reference to global between the national regulations context of the project’s area of impact, including climate and the ADB SPS are overcome. influence. Assess potential trans change. boundary and global impacts, including climate change. Use strategic

National System requirements & Required Actions by ARIS Policy Principles Gaps with ADB SPS environmental assessment where appropriate. Principle 3: Examine alternatives to No gaps with this principle. No action required the project’s location, design, technology, and components and their potential environmental and social impacts and document the rationale for selecting the particular alternative proposed. Also consider the no project alternative. Principle 4: Avoid, and where • EIA regulations mentions the • ARIS will ensure the EARF avoidance is not possible, minimize, development of the EMP in the document is used by the mitigate, and/or offset adverse impacts context of conducting Stage 2 of consultants engaged by them for and enhance positive impacts by EIA, but provide no details on preparing the EIA to obtain the means of environmental planning and the content and format of the national approval from the management. Prepare an EMP that EMP. SAEPF. includes the proposed mitigation • Use of the EARF as a guideline measures, environmental monitoring by the ARIS consultants will and reporting requirements, related ensure all gaps identified here institutional or organizational between the national regulations arrangements, capacity development and the ADB SPS are overcome. and training measures, implementation schedule, cost estimates, and performance indicators. Key considerations for EMP preparation include mitigation of potential adverse impacts to the level of no significant harm to third parties, and the polluter pays principle. Principle 5: Carry out meaningful • EIA regulations requires • ARIS will ensure the EARF consultation with affected people and providing access of the general document is used by the facilitate their informed participation. public to EIA documentation at consultants engaged by them for Ensure women’s participation in PI place or/and other accessible preparing the EIA to obtain the consultation. Involve stakeholders, locations such as local national approval from the including affected people and administrations, local branches SAEPF. concerned nongovernment of environment committee. Also, • Use of the EARF as a guideline organizations, early in the project it mentions disclosure of the by the ARIS consultants will preparation process and ensure that documentation at the PI website, ensure all gaps identified here their views and concerns are made if any. between the national regulations known to and understood by decision • The requirement does not and the ADB SPS are overcome. makers and taken into account. distinguish between draft and Continue consultations with final EIA documentation. stakeholders throughout project • Women’s participation is not implementation as necessary to required. address issues related to environmental assessment. Establish a GRM to receive and facilitate resolution of the affected people’s concerns and grievances regarding the project’s environmental performance.

National System requirements & Required Actions by ARIS Policy Principles Gaps with ADB SPS Principle 6: Disclose a draft • The EIA regulations do not • ARIS will ensure the EARF environmental assessment (including specifically mention affected document is used by the the EMP) in a timely manner, before persons, but general public and consultants engaged by them for project appraisal, in an accessible public organizations. preparing the EIA to obtain the place and in a form and language(s) • Legislation does not specifically national approval from the understandable to affected people and ensure participation of women in SAEPF. other stakeholders. Disclose the final public consultation. • Use of the EARF as a guideline environmental assessment, and its • Legislation does not specifically by the ARIS consultants will updates if any, to affected people and ensure involvement of NGOs or ensure all gaps identified here other stakeholders. affected people in public between the national regulations consultations, rather it focuses and the ADB SPS are overcome. on the general public, including people and public organizations. • The timeframe for public consultations includes all stages of EIA, including screening and scoping. • EIA regulations provide no requirements for establishing a grievance redress mechanism. The law on solicitations regulates consideration of complaints, claims and suggestions submitted to local administrations or government bodies orally or written, including email. Principle 7: Implement the EMP and • EIA regulations mentions the • ARIS will ensure the EARF monitor its effectiveness. Document development of the EMP in the document is used by the monitoring results, including the context of conducting Stage 2 of consultants engaged by them for development and implementation of EIA, but provide no details of the preparing the EIA to obtain the corrective actions, and disclose content and format of the EMP. national approval from the monitoring reports. • The responsibility of EIA SAEPF. developer includes development • Use of the EARF as a guideline of a resource environmental by the ARIS consultants will monitoring program that includes ensure all gaps identified here monitoring of environmental between the national regulations aspects during construction, and the ADB SPS are overcome. implementation and decommissioning of the project. • The need in environmental monitoring program is defined based on the results of the environmental assessment. • An Environmental Impact Statement developed as a result of Stage 2 of EIA should suggest an environmental monitoring plan. • There is no provision in the national legislation on documentation and disclosure of monitoring reports. Principle 8: Do not implement project • No activities shall be conducted • ARIS will ensure the EARF activities in areas of critical habitats, in any areas with critical habitats document is used by the unless (i) there are no measurable and will be screened out since consultants engaged by them for adverse impacts on the critical habitat they will in all likelihood fall in preparing the EIA to obtain the that could impair its ability to function, category A, which are not national approval from the (ii) there is no reduction in the SAEPF.

National System requirements & Required Actions by ARIS Policy Principles Gaps with ADB SPS population of any recognized permitted under the ADB RBL • Use of the EARF as a guideline endangered or critically endangered program. by the ARIS consultants will species, and (iii) any lesser impacts ensure all gaps identified here are mitigated. If a project is located between the national regulations within a legally protected area, and the ADB SPS are overcome. implement additional programs to promote and enhance the conservation aims of the protected area. In an area of natural habitats, there must be no significant conversion or degradation, unless (i) alternatives are not available, (ii) the overall benefits from the project substantially outweigh the environmental costs, and (iii) any conversion or degradation is appropriately mitigated. Use a precautionary approach to the use, development, and management of renewable natural resources. Principle 9: Apply pollution prevention • The national environmental • ARIS will ensure the EARF and control technologies and practices legislation does not specify that document is used by the consistent with international good technologies and practices consultants engaged by them for practices as reflected in internationally consistent with international preparing the EIA (i.e., recognized standards such as the good practices should be environmental) assessments to World Bank Group’s Environmental, applied. obtain the national approval from Health and Safety Guidelines. Adopt • Appendix 10 to EIA Regulations the SAEPF. cleaner production processes and ‘Requirements to developing • Use of the EARF as a guideline good energy efficiency practices. Avoid measures on avoidance, by the ARIS consultants will pollution, or, when avoidance is not minimization, and/or ensure all gaps identified here possible, minimize or control the compensation of adverse between the national regulations intensity or load of pollutant emissions impacts on the environment and the ADB SPS are overcome. and discharges, including direct and during construction, indirect greenhouse gases emissions, implementation and waste generation, and release of decommissioning of facilities of hazardous materials from their intended economic activities’ production, transportation, handling, suggests that adequacy and and storage. Avoid the use of efficiency of control technologies hazardous materials subject to needs to be substantiated and international bans or phase-outs. assessed in order to define the Purchase, use, and manage pesticides need of development of based on integrated pest management additional measures. approaches and reduce reliance on synthetic chemical pesticides. Principle 10: Provide workers with No gaps with this principle. No action required safe and healthy working conditions and prevent accidents, injuries, and disease. Establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities.

National System requirements & Required Actions by ARIS Policy Principles Gaps with ADB SPS Principle 11: Conserve physical No gaps with this principle. No action required cultural resources and avoid destroying or damaging them by using field-based surveys that employ qualified and experienced experts during environmental assessment. Provide for the use of “chance find” procedures that include a pre- approved management and conservation approach for materials that may be discovered during project implementation. ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), EARF= environmental assessment and resettlement framework, EIA = environmental impact assessment, EMP = environmental management plan, GRM = grievance redress mechanism, IA = implementing agency, NGO = nongovernment organization, PI = project initiator, RBL = results-based lending, REA = rapid environmental assessment, SAEPF = State Agency on Environmental Protection and Forestry, SPS = Safeguard Policy Statement.

In case of gaps between the Laws of the Kyrgyz Republic and the requirements of ADB SPS 2009, the principles and procedures of SPS 2009 will be applied. This priority of ADB standards over the state legislation is a requirement for projects/programs funded by ADB.

III. ANTICIPATED ENVIRONMENTAL IMPACTS

The proposed works for the program is expected to be short-term, site-specific and limited to the construction phase of the program. The anticipated environmental impacts and mitigation measures related to the design, construction and operation phases of the proposed program are provided in the Table 5 below. The indicative impacts discussed below are insignificant and can be mitigated and therefore the project has been assigned the category B.

Table 5: Indicative Impacts Anticipated Environmental Impacts Mitigation Measures Design/Pre-Construction Phase Category A activities being selected and significant Proper screening and categorization must be impacts taking place conducted to ensure that no category A activities are permitted since they are NOT allowed under the ADB RBL program. Loss of land and other properties Program activities to minimize land acquisition and/or resettlement impacts to ensure it remains as category B. Construction Phase Activity 1: Drilling and installation of deep wells Disposal of excavated materials Excessive excavated materials should be disposed at designated area(s). Dust from waste soil and imported sand, impacting air ▪ Remove waste quickly quality ▪ Cover/spray stockpiles ▪ Sprinkling of water will avoid dust pollution ▪ Only bring sand (for backfill) to site when needed Loss of forest trees and vegetation and hunting/killing Damage to flora and/or fauna to be strictly forbidden. of fauna Siltation of surrounding drains and water ▪ Use silt fences and cover sand piles during storms/strong winds ▪ Use tarpaulin to cover dry soil when carried on trucks ▪ Backfilling of excavated trenches should be done immediately after work is completed

Anticipated Environmental Impacts Mitigation Measures Impact on topography and slope stability Construction activities should avoid steep slopes and any landslide prone areas. Environmental impacts from construction worker Where sites/camps are set up, the contractor will camps ensure that: ▪ Proper sanitation (toilets, solid waste management) systems are in place ▪ Potable drinking water is provided ▪ Kerosene is provided at reduced rates for cooking; ▪ Gambling, liquor, and illicit relationships banned. ▪ Contractor will be required (as per his contract) to ensure cleanup of site back to its original, pre-project condition. Occupational health and safety of workers Provide provision for safety measures in design stage. Training of workers on safety measures must be carried out. Activity 2: Construction of village water supply storage tanks and disinfection tanks Disruption to businesses and communities ▪ Prepare and implement traffic management plans in coordination with local authorities. ▪ Conduct widespread public awareness prior and during construction. Loss of forest trees and vegetation and hunting/killing Damage to flora and/or fauna to be strictly forbidden. of fauna Dust creation by waste soil and imported sand ▪ Remove waste quickly ▪ Cover/spray stockpiles ▪ Sprinkling of water will avoid dust pollution ▪ Only bring sand (for backfill) to site when needed Impact on topography and slope stability Construction activities should avoid steep slopes and any landslide prone areas. Disposal of excavated materials Excessive excavated materials should be disposed at designated area(s). Environmental impacts from construction worker Where sites/camps are set up, the contractor will camps ensure that: ▪ Proper sanitation (toilets, solid waste management) systems are in place ▪ Potable drinking water is provided ▪ Kerosene is provided at reduced rates for cooking; ▪ Gambling, liquor, and illicit relationships banned. ▪ Contractor will be required (as per his contract) to ensure cleanup of site back to its original, pre-project condition. Occupational health and safety of workers Provide provision for safety measures in design stage. Training of workers on safety measures must be carried out. Activity 3: Laying of main water distribution pipes and water distribution networks Trenching that will produce additional amounts of Find beneficial uses for soil in construction or infill. waste soil Disruption to businesses and communities ▪ Prepare and implement traffic management plans in coordination with local authorities. Conduct widespread public awareness prior and during construction. Loss of forest trees and vegetation and hunting/killing Damage to flora and/or fauna to be strictly forbidden. of fauna Dust creation by waste soil and imported sand ▪ Remove waste quickly ▪ Cover/spray stockpiles ▪ Sprinkling of water will avoid dust pollution Only bring sand (for backfill) to site when needed Siltation of surrounding drains and water ▪ Use silt fences and cover sand piles during storms/strong winds ▪ Use tarpaulin to cover dry soil when carried on trucks

Anticipated Environmental Impacts Mitigation Measures ▪ Backfilling of excavated trenches should be done immediately after work is completed Activity 4: Laying of pipes for water distribution networks Trenching that will produce additional amounts of Find beneficial uses for soil in construction or infill. waste soil Disposal of excavated materials Excessive excavated materials should be disposed at designated area(s). Dust from waste soil and imported sand, impacting air ▪ Remove waste quickly quality ▪ Cover/spray stockpiles ▪ Sprinkling of water will avoid dust pollution ▪ Only bring sand (for backfill) to site when needed Income loss for shops if customer access is impeded ▪ Compensate businesses for lost income (as per resettlement plan). ▪ Leave spaces for access between mounds of soil ▪ Provide bridges to allow people and vehicles to cross trenches ▪ Increase workforce in these areas to finish work quickly Inform shopkeepers of work in advance Traffic disrupted if dug soil is left on road and/or water ▪ Plan work with town authorities, and work when pipes have to be located on road itself traffic is light ▪ Ensure police provide traffic diversions when necessary ▪ Increase workforce to finish the work quickly Occupational health and safety of workers Provide provision for safety measures in design stage. Training of workers on safety measures must be carried out. Activity 5: Individual sanitation systems for households and social facilities, including clinics and schools Trenching that will produce additional amounts of Find beneficial uses for soil in construction or infill. waste soil Siltation of surrounding drains and water ▪ Use silt fences and cover sand piles during storms/strong winds ▪ Use tarpaulin to cover dry soil when carried on trucks ▪ Backfilling of excavated trenches should be done immediately after work is completed Dust from waste soil and imported sand, impacting air ▪ Remove waste quickly quality ▪ Cover/spray stockpiles ▪ Sprinkling of water will avoid dust pollution Only bring sand (for backfill) to site when needed Impact on topography and slope stability Construction activities should avoid steep slopes and any landslide prone areas. Disposal of excavated materials Excessive excavated materials should be disposed at designated area(s). Environmental impacts from construction worker Where sites/camps are set up, the contractor will camps ensure that: ▪ Proper sanitation (toilets, solid waste management) systems are in place ▪ Potable drinking water is provided ▪ Kerosene is provided at reduced rates for cooking; ▪ Gambling, liquor, and illicit relationships banned. ▪ Contractor will be required (as per his contract) to ensure cleanup of site back to its original, pre-project condition. Occupational health and safety of workers Provide provision for safety measures in design stage. Training of workers on safety measures must be carried out. Operation and Maintenance Risk of contaminated water in the distribution system ▪ Monitoring of water quality.

Anticipated Environmental Impacts Mitigation Measures ▪ Training of workers on testing and on safety measures must be carried out. Improper sewage and/or sludge treatment ▪ Monitoring of sewage and/or sludge treatment ▪ Training of workers on testing and on safety measures must be carried out.

IV. CONSULTATION, INFORMATION DISCLOSURE AND GRIEVANCE REDRESS MECHANISM

A. Public Consultation and Information Disclosure

It is recommended that public consultation be carried out during the early stages of the program commencement and throughout the program implementation to address any environmental issues that affect the local communities. It is important that consultation with stakeholders occurs at an early stage of program preparation and implementation.

As a minimum, stakeholders will be consulted regarding the scope of the environmental study before work has commenced in earnest, and will then be informed about the likely impacts of the proposed activities and proposed mitigation once the draft IEE report(s) is under preparation. The report will record the views of stakeholders and indicate how these have been taken into account in project development. There are a variety of approaches for such contacts, including public meetings, focus group discussions, workshops, public information campaigns, etc., and several methods will be used in order to reach all sectors of society, as well as institutional stakeholders, nongovernment organizations, and others.

Information will be disclosed through public consultations, and more formally by making documents and other materials available in a form and at a location easily accessed by stakeholders. This will involve making draft reports available at public locations in the town(s) and providing a mechanism for the receipt of comments and making documents available more widely by lodging them on the ADB and the ARIS’ website.

B. Grievance Redress Mechanism

A GRM will be established to receive, evaluate, and facilitate the resolution of affected people’s concerns, complaints, and grievances about the social and environmental performance at the level of the project. The GRM aims to provide a trusted way to voice and resolve concerns linked to the program of activities, and to be an effective way to address affected people’s concerns.

Water Committees. The local government shall create water committees in order to actively interact with the population in the area(s) where the activities shall be conducted, on various issues, including complaints, suggestions, etc. The water committees, representatives of local kenesh, local government, technical supervisors of ARIS, local government, and the contractor shall hold weekly meetings to resolve issues and proposals of the residents on the activities. The establishment of water committees is also a requirement of ARIS, to be specified in the agreement between local government and ARIS to facilitate interaction between the parties concerned.

ARIS Feedback Mechanism. The feedback mechanism on the ARIS activity shall work in the form of creating water committees, a weekly meeting of all stakeholders, including affected

people, and solutions of all issues in a reactive form, which shall increase the confidence of local residents.

In addition, information boards shall be placed at the construction sites where it shall be mandatory to indicate information regarding the mechanism for filing complaints and/or suggestions. Any complainant shall have the following options to file a grievance or complaint: complain to ARIS Public Relations Department and request redressal; complain directly to contractor and request redressal; complain to water committee and request redressal; and complain to supervision consultant engaged by local government and request redressal

All these avenues shall be available to any complainant and it shall be their choice which option they would like to adopt. In instances when a certain complaint cannot be closed by the localized avenues such as the contractor himself, water committee or by the local government’s supervision consultant, then it shall be sent to the ARIS public relations department for redressal.

The water committee shall function at the local level and will be formed for each project activity while the ARIS public relations department will be the centralized focal point that will be responsible for all project activities in the country.

The feedback mechanism will be implemented by the ARIS Public Relations Department, which is a structural unit of ARIS, providing information support for its activities and the implementation of the feedback mechanism, under the direct supervision of the executive director.

The feedback mechanism shall operate on the basis of the constitution of the Kyrgyz Republic, in accordance with the ARIS charter, orders and instructions of ARIS, other local normative acts of ARIS, as well as normative legal acts of the Kyrgyz Republic. (i) The feedback mechanism is a management tool for the high-quality implementation of ARIS projects. (ii) The feedback mechanism is a process of systematically receiving and responding to requests from beneficiaries. (iii) Feedback from the beneficiaries will provide up-to-date information on the consequences of the decisions made, identify bottlenecks in the implementation of ARIS projects.

The main purpose of the feedback mechanism is to receive operational and objective information, evaluation and consideration of requests (statements, proposals, complaints, requests, positive feedback) concerning the scope of the implementation of ARIS projects at all stages of implementation.

V. INSTITUTIONAL ARRANGEMENT AND RESPONSIBILITIES

A. Institutional Arrangement

1. Community Development and Investment Agency

The Community Development and Investment Agency (ARIS) is the implementing agency (IA) for the proposed program. This program will be implemented by ARIS in partnership with the Naryn oblast municipality, the village community drinking water users’ union (CDWUU), and the private sector.

In order to monitor projects effectively, ARIS will assign one safeguards staff to be based at its head office that will oversee all safeguards related aspects of the program activities. This individual will be supported by two technical supervision consultants at each project site (one senior and one junior engineer) that shall have the joint responsibility of conducting both technical monitoring as well as safeguards monitoring on a daily basis. These two technical supervision consultants will report directly to the ARIS safeguards program focal point, who in turn will visit the project sites once a month to conduct due diligence monitoring and verify the results being provided to him/her.

ARIS has a very effective grievance redress mechanism implemented at each site with any complainant able to directly complain to their public relations department, if he/she so desires.

2. Department for Drinking Water Supply and Sewerage Development

The DDWSSD under the State Agency for Water Resources is a state body, and as the executing agency (EA) for the rural supply and sanitation sector, oversees the implementation of different project activities in the Kyrgyz Republic. As the EA, it is not directly involved in implementation or monitoring aspects of environmental and social safeguard issues and thus does not have any safeguards staff.

It is the SAEPF that is the regulator for environmental safeguards in the Republic. In relation to the World Bank projects9 presently under implementation, the DDWSSD is the EA and as mentioned above, only oversees the implementation of project activities by ARIS. It should be mentioned that ARIS does not report to DDWSSD for environmental and social safeguards due diligence and monitoring related issues.

B. Responsibilities

ARIS, the implementing agency for the program, will bear the responsibility of ensuring that the program activities comply with the Kyrgyz national environmental regulations as well as ADB policies and procedures throughout planning, design and implementation stages. This includes: (i) selecting projects based on the environmental screening criteria; (ii) preparing the potential impacts of each program activity using the REA checklists provided in Annexes 1 and 2 below, and categorizing each activity based on the ADB categorization system; (iii) engaging qualified consultants to conduct the environmental assessment during project design or feasibility study, including public consultation, and preparation of an EMP(s); (iv) ensuring and reporting that the appropriate level of environmental assessment is conducted and that the assessment is carried out and presented according to both national and ADB requirements; (v) ensuring that all necessary environmental permits and approvals are obtained; (vi) monitoring during construction to ensure that the EMP(s) is fully implemented and that an appropriate response is provided to any unexpected impacts that may occur; (vii) coordinating throughout with ADB’s program team in applying ADB’s environmental safeguard procedures; and

9 The World Bank. Sustainable Rural Water Supply and Sanitation Development Project – Additional Financing.

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(viii) based on the monthly reports, the ARIS safeguard specialist will prepare and submit semi-annual reports to ADB.

ADB will be responsible for the following: (i) review semi-annual reports of ARIS on safeguards monitoring of program activities being conducted across Naryn province and ensuring that screening and activity categorization as well as implementation of EMP(s) is being conducted as per ADB SPS 2009; (ii) review the addressing of gaps in compliance by ARIS safeguards staff and the effectiveness of mitigation measures being implemented by the contractor; (iii) monitoring, supervising, and conducting review missions to monitor implementation of the EMP during project construction and operation; and (iv) Disclosing all relevant information applying to ADB’s environmental safeguard procedures.

C. Staffing Requirements and Budget

ARIS will hire a full-time safeguards specialist as part of its staff to be based in its headquarters. This specialist will be well versed with ADB safeguard requirements in project processing as well as project monitoring during the construction and operation phases.

The program’s costs will incorporate a budget and resources needed to (i) implement the environmental review and screening procedure, (ii) undertake the environmental assessment studies for the subprojects, (iii) monitor the implementation of EMPs, and (iv) undertake environmental mitigation measures as required.

The cost of conducting training, undertaking monitoring, procuring laboratory equipment, hiring environmental consultants, and implementing the environmental impact assessment and review framework will also be incorporated in the program.

VI. MONITORING AND REPORTING

The program shall have one assigned safeguard specialist from ARIS. At the project implementation stage (feasibility study / detailed design documentation stage), the environmental and social environment management plans (ESMPs) for each of the project sites shall be developed by ARIS safeguard specialist and these documents will be included in the package of tender documents, and their implementation will be binding on the contractor.

The ARIS safeguard specialist will conduct training on the implementation of the ESMPs for all technical supervision and conduct on the job training. ARIS and the local government will carry out supervision of construction work.

ARIS will engage environmental specialists as technical supervision staff for each site, who will remain present at each site and will conduct safeguards monitoring on a daily basis and provide inputs to the ARIS safeguards team.

The senior technical supervisor engaged by ARIS will oversee the work process of the entire project while the junior technical supervisor will remain at the construction site on a permanent basis and oversee the contractor’s activities. All technical supervisors will report to the project engineer.

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The duties of the technical supervisor will also include the preparation of a monthly report on the implementation of each ESMP, which will be provided to the ARIS safeguards specialist. Based on the monthly reports, the ARIS safeguard specialist will prepare and submit semi-annual reports to ADB.

In turn, each ARIS safeguards specialist will visit the activities at least once a month. Monitoring by the ARIS safeguard specialist will be carried out as needed. In the absence of construction work, the specialist will not visit the sites while in the case of construction sites where there are considerable social and environmental issues, the specialist may visit the sites several times until all issues are resolved.

Each ARIS safeguards specialist will oversee the daily monitoring activities being conducted by the ARIS technical supervisors, who in turn will report directly to the ARIS safeguards specialist. The monitoring being conducted by the technical supervisors appointed by the local government will be completely disconnected from ARIS in terms of their monitoring activities and will perform their activities in parallel and will not report to or coordinate their monitoring activities with ARIS.

Further details on the specific roles of these three monitoring focal points are provided below.

A. Monitoring by ARIS Safeguard Specialist

The safeguard specialist shall travel to the site inspection in accordance with his/her own schedule. The task of the specialist shall be to verify the compliance of the fulfillment of work with the requirements of each ESMP and national legislation.

The safeguards specialist shall conduct visual monitoring of the entire area and if violations are observed, he/she will record it in his/her checklist and then all violations will be recorded in the operating work logbook. At the end of the inspection, the safeguard specialist will prepare the corrective action plan that will be submitted to the contractor for implementation.

B. Monitoring by ARIS technical environmental supervisors

Daily monitoring at the work sites shall be carried out by the technical environmental supervisors that control the elimination of violations and will submit both photographic and video- based evidence of non-compliances to the ARIS safeguard specialist. Once all non-compliances have been removed, the contractor will submit an official letter to the ARIS safeguards specialist informing him/her of the elimination of non-compliances. If the contractor fails to fulfill the requirements of the ESMPs, ARIS may delay the payment until the violations are removed.

C. Monitoring by the local government technical supervisors

The local government will also conduct technical supervision of the construction work by engaging supervisors that are present at each work site during the execution of works. The hiring of the technical supervisors will be coordinated with local government internal agreements, either in the form of admission on a contractual basis, or on a voluntary basis.

This obligation will be spelled out in the agreement between the local government and ARIS, in which the terms of the interaction of the two Parties (ARIS and local government) will be negotiated during the implementation of each activity.

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The technical supervisors from the local government will only report to the local government and will not interact directly with ARIS.

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ANNEX 1: ADB RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – WATER SUPPLY

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ADB RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – WATER SUPPLY

Instructions: (i) This checklist focuses on environmental issues and concerns.

(ii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

(iii) Complete this Screening Checklist and provide a recommendation on the category of the Project

Country/Project Title: Sector: Project Category:

Category A Category B Category C Category FI

Justification for Assigned Category ______

Screening Questions Yes No Remarks A. PROJECT SITING IS THE PROJECT AREA…

▪ DENSELY POPULATED?

▪ HEAVY WITH DEVELOPMENT ACTIVITIES?

▪ ADJACENT TO OR WITHIN ANY ENVIRONMENTALLY SENSITIVE AREAS?

• CULTURAL HERITAGE SITE

• PROTECTED AREA

• WETLAND

• MANGROVE

• ESTUARINE

• BUFFER ZONE OF PROTECTED AREA

• SPECIAL AREA FOR PROTECTING BIODIVERSITY

• BAY

B. POTENTIAL ENVIRONMENTAL IMPACTS Will the Project cause…

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Screening Questions Yes No Remarks ▪ pollution of raw water supply from upstream wastewater discharge from communities, industries, agriculture, and soil erosion runoff?

▪ impairment of historical/cultural monuments/areas and loss/damage to these sites?

▪ hazard of land subsidence caused by excessive ground water pumping?

▪ social conflicts arising from displacement of communities ?

▪ conflicts in abstraction of raw water for water supply with other beneficial water uses for surface and ground waters?

▪ unsatisfactory raw water supply (e.g. excessive pathogens or mineral constituents)?

▪ delivery of unsafe water to distribution system?

▪ inadequate protection of intake works or wells, leading to pollution of water supply?

▪ over pumping of ground water, leading to salinization and ground subsidence?

▪ excessive algal growth in storage reservoir?

▪ increase in production of sewage beyond capabilities of community facilities?

▪ inadequate disposal of sludge from water treatment plants?

▪ inadequate buffer zone around pumping and treatment plants to alleviate noise and other possible nuisances and protect facilities?

▪ impairments associated with transmission lines and access roads?

▪ health hazards arising from inadequate design of facilities for receiving, storing, and handling of chlorine and other hazardous chemicals.

▪ dislocation or involuntary resettlement of people?

▪ disproportionate impacts on the poor, women and children, Indigenous Peoples or other vulnerable groups?

▪ noise and dust from construction activities?

▪ increased road traffic due to interference of construction activities?

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Screening Questions Yes No Remarks ▪ continuing soil erosion/silt runoff from construction operations?

▪ delivery of water to distribution system, which is corrosive due to inadequate attention to feeding of corrective chemicals?

▪ accidental leakage of chlorine gas?

▪ excessive abstraction of water affecting downstream water users?

▪ competing uses of water?

▪ increased sewage flow due to increased water supply

▪ increased volume of sullage (wastewater from cooking and washing) and sludge from wastewater treatment plant

▪ large population influx during project construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

▪ social conflicts if workers from other regions or countries are hired?

▪ risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during operation and construction?

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ANNEX 2: ADB RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – SEWAGE TREATMENT

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ADB RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – SEWAGE TREATMENT

Instructions: (i) This checklist focuses on environmental issues and concerns.

(ii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures. (iii) Complete this Screening Checklist and provide a recommendation on the category of the Project

Country/Project Title: Sector:

Country/Project Title: Sector: Project Category:

Category A Category B Category C Category FI

Justification for Assigned Category ______

Screening Questions Yes No Remarks B. PROJECT SITING IS THE PROJECT AREA…

▪ DENSELY POPULATED?

▪ HEAVY WITH DEVELOPMENT ACTIVITIES? ▪ ADJACENT TO OR WITHIN ANY ENVIRONMENTALLY SENSITIVE AREAS?

• CULTURAL HERITAGE SITE

• PROTECTED AREA

• WETLAND

• MANGROVE

• ESTUARINE

• BUFFER ZONE OF PROTECTED AREA

• SPECIAL AREA FOR PROTECTING BIODIVERSITY

• BAY

B. POTENTIAL ENVIRONMENTAL IMPACTS WILL THE PROJECT CAUSE…

▪ impairment of historical/cultural monuments/areas and loss/damage to these sites?

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Screening Questions Yes No Remarks ▪ interference with other utilities and blocking of access to buildings; nuisance to neighboring areas due to noise, smell, and influx of insects, rodents, etc.?

▪ dislocation or involuntary resettlement of people?

▪ disproportionate impacts on the poor, women and children, Indigenous Peoples or other vulnerable groups?

▪ impairment of downstream water quality due to inadequate sewage treatment or release of untreated sewage?

▪ overflows and flooding of neighboring properties with raw sewage?

▪ environmental pollution due to inadequate sludge disposal or industrial waste discharges illegally disposed in sewers?

▪ noise and vibration due to blasting and other civil works?

▪ risks and vulnerabilities related to occupational health and safety due to physical, chemical,and biological hazards during project construction and operation?

▪ discharge of hazardous materials into sewers, resulting in damage to sewer system and danger to workers?

▪ inadequate buffer zone around pumping and treatment plants to alleviate noise and other possible nuisances, and protect facilities?

▪ road blocking and temporary flooding due to land excavation during the rainy season?

▪ noise and dust from construction activities?

▪ traffic disturbances due to construction material transport and wastes?

▪ temporary silt runoff due to construction?

▪ hazards to public health due to overflow flooding, and groundwater pollution due to failure of sewerage system?

▪ deterioration of water quality due to inadequate sludge disposal or direct discharge of untreated sewage water?

▪ contamination of surface and ground waters due to sludge disposal on land?

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Screening Questions Yes No Remarks ▪ health and safety hazards to workers from toxic gases and hazardous materials which maybe contained in confined areas, sewage flow and exposure to pathogens in untreated sewage and unstabilized sludge?

▪ large population increase during project construction and operation that causes increased burden on social infrastructure (such as sanitation system)?

▪ social conflicts between construction workers from other areas and community workers?

▪ risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during construction and operation?

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ANNEX 3: SITE SELECTION CRITERIA

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SITE SELECTION CRITERIA

1. ARIS Safeguards staff will apply the criterion provided below during the site selection process in order to screen and categorize potential sites from environmental and social aspects to ensure no site(s) fall in category A as per ADB SPS 2009.

2. This Criterion will be used to complement the ADB REA and IR/IP Checklists to screen and categorize program activities and is intended to focus on the ‘critical safeguards triggers’ during the site selection process.

Critical Safeguards Triggers for Site Selection Screening Question Response (YES/No) & Any Additional Remarks Is project activity to be conducted adjacent to or within any: ▪ Cultural Heritage Site1 ▪ Protected Area ▪ Wetland ▪ Mangrove ▪ Estuarine ▪ Buffer zone of protected area ▪ Special area for protecting biodiversity ▪ Bay

▪ Are 200 or more people expected to be relocated; ▪ Lose 10% or more of their productive or income generating assets?

Are there any indigenous people residing in the project area(s)?

Note: If response to any two of the screening questions above is YES, then in all likelihood the project is category A and must be screened out.

1 This will include any sites that may be considered as critical habitats, including: habitat for endangered or critically endangered species; areas having special significance for endemic or restricted-range species; sites critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or that are associated with key evolutionary processes, or provide key ecosystem services; and areas having biodiversity of significant social, economic, or cultural importance to local communities.

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ANNEX 4: OUTLINE OF AN IEE REPORT

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OUTLINE OF AN IEE REPORT

1. This outline is part of the ADB safeguard requirements for preparation of an IEE report. An IEE report is required for all environment category B projects being financed by ADB. Its level of detail and comprehensiveness is commensurate to the significance of potential environmental impacts and risks. A typical IEE may have a narrower scope than an EIA, depending on the nature of the project. The substantive aspects of the outline will guide the preparation of IEE reports, although not necessarily in the order shown.

2. The outline of the IEE report provided below is above and beyond the national requirements of the Kyrgyz republic. Based on the gaps identified above in Table II.3, since the RBL program is financed by the ADB, thus all ADB safeguard policy principles must be satisfied and the outline provided below must be followed for all environmental impact assessment reports that shall be prepared for acitivites under the RBL program to ensure any gaps between the national legislation and the ADB policy principles are filled.

A. Introduction

B. Policy, Legal, and Administrative Framework discusses the national and local legal and institutional frameworks within which the environmental assessment is carried out. It also identifies project-relevant international environmental agreements to which the country is a party.

C. Description of the Project describes (i) the proposed project; (ii) its major components; and (iii) its geographic, ecological, social, and temporal context, including any associated facility required by and for the project (for example, access roads, power plants, water supply, quarries and borrow pits, and spoil disposal). It normally includes drawings and maps showing the project’s layout and components, the project site, and the project's area of influence.

D. Description of the Environment (Baseline Data) describes relevant physical, biological, and socioeconomic conditions within the study area. It also looks at current and proposed development activities within the project's area of influence, including those not directly connected to the project. It indicates the accuracy, reliability, and sources of the data.

E. Anticipated Environmental Impacts and Mitigation Measures (i) predicts and assesses the project's likely positive and negative direct and indirect impacts to physical, biological, socioeconomic (including occupational health and safety, community health and safety, vulnerable groups and gender issues, and impacts on livelihoods through environmental media), and physical cultural resources in the project's area of influence, in quantitative terms, and to the extent possible; (ii) identifies mitigation measures and any residual negative impacts that cannot be mitigated; (iii) explores opportunities for enhancement; (iv) identifies and estimates the extent and quality of available data, key data gaps, and uncertainties associated with predictions and specifies topics that do not require further attention; and (v) examines global, trans-boundary, and cumulative impacts as appropriate.

F. Information Disclosure, Consultation, and Participation (i) describes the process undertaken during project design and preparation for engaging stakeholders, including information disclosure and consultation with affected people and other stakeholders;

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(ii) summarizes comments and concerns received from affected people and other stakeholders, and how these comments have been addressed in project design and mitigation measures, with special attention paid to the needs and concerns of vulnerable groups, including women, the poor, and indigenous peoples; and (iii) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination), and the process for carrying out consultation with affected people and facilitating their participation during project implementation.

G. Grievance Redress Mechanism describes the grievance redress framework (both informal and formal channels), setting out the time frame and mechanisms for resolving complaints about environmental performance.

H. Environmental Management Plan deals with the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate to the project’s impacts and risks):

(i) Mitigation: (a) identifies and summarizes anticipated significant adverse environmental impacts and risks; (b) describes each mitigation measure with technical details, including the type of impact to which it relates and the conditions under which it is required (for instance, continuously or in the event of contingencies), together with designs, equipment descriptions, and operating procedures, as appropriate; and (c) provides links to any other mitigation plans (for example, for involuntary resettlement, indigenous people, or emergency response) required for the project.

(ii) Monitoring: (a) describes monitoring measures with technical details, including parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits, and definition of thresholds that will signal the need for corrective actions; and (b) describes monitoring and reporting procedures to ensure early detection of conditions that necessitate mitigation measures and documents the progress and results of mitigation.

(iii) Implementation arrangements: (a) specifies the implementation schedule, showing phasing and coordination with overall project implementation; (b) describes institutional or organizational arrangements, namely, who is responsible for carrying out the mitigation and monitoring measures, which may include one or more of the following additional topics to strengthen environmental management capability: technical assistance programs, training programs, procurement of equipment and supplies related to environmental management and monitoring, and organizational changes; and

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(c) estimates capital and recurrent costs and describes sources of funds for implementing the environmental management plan.

(iv) Performance indicators: describes the desired outcomes as measurable events to the extent possible, such as performance indicators, targets, or acceptance criteria that can be tracked over defined time periods.

I. Conclusion and Recommendation provides the conclusions drawn from the assessment and provides recommendations.

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APPENDIX 12: LAND ACQUISITION & RESETTLEMENT POLICY FRAMEWORK

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Land Acquisition and Resettlement Policy Framework

June 2019

KGZ: Naryn Rural Water Supply and Sanitation Development Program

Prepared by the Kyrgyz Republic Community Development and Investment Agency (ARIS) for the Asian Development Bank.

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ABBREVIATIONS ADB – Asian Development Bank AH – affected household ARIS – Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency) DMS – detailed measurement survey DP – displaced people EA – executing agency GRG – grievance redress group GRM – grievance redress mechanism IoL – inventory of losses LAR – land acquisition and resettlement LARF – land acquisition and resettlement framework LARP – land acquisition and resettlement plan SES – socioeconomic survey WSS – water supply and sanitation

GLOSSARY aiyl aymak – administrative and territorial unit consisting of one or several villages where the local community executes local governance according to the constitution and laws of the Kyrgyz Republic displaced – in the context of involuntary resettlement, those who are person physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas detailed – with the aid of the approved detailed engineering design, the measurement activity involves the finalization and/or validation of the survey results of the inventory of losses, severity of impacts, and list of displaced persons compensation – payment in cash or in kind to replace losses of lands, housing, income, and other assets caused by the Program. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market rates, plus any transaction costs such as administrative charges, taxes, registration, and titling costs cut-off date – the date of completing the detailed measurement survey for which land and/or assets affected by the program are measured. The displaced persons will be informed of the cut-off date, and any people who settle in the program area after the cut-off date will not be entitled to compensation and assistance under the program. entitlements – a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc., which are due to the displaced

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persons, depending on the type and severity of their losses, to restore their economic and social base eligibility – any person who has settled in the program area before the cut-off date that suffers from (i) loss of shelter, (ii) loss of assets or ability to access such assets, permanently or temporarily, or (iii) loss of income sources or livelihood, regardless of relocation, will be entitled to compensation and/or assistance income – the re-establishment of sources of income and livelihood of restoration the affected households inventory of – the process where all fixed assets (i.e., lands used for losses residence, commerce, agriculture; dwelling units; kiosks, stalls and shops; secondary structures, such as fences, gates, trees, etc. with commercial value and sources of income and livelihood inside the program right-of-way (Program area) are identified, measured, their owners identified, their exact location determined, and their replacement costs calculated. Additionally, the severity of impact to the affected assets and the severity of impact to the livelihood and productive capacity of affected persons will be determined. land – the process whereby an individual, household, firm or acquisition private institution is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs rehabilitation – the additional support provided to displaced persons losing productive assets, incomes, employment, or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life relocation – the physical relocation of displaced person from her/his pre- Program place of residence and/or business replacement – the calculation of full replacement cost will be based on the cost following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments, if any resettlement – all measures taken to mitigate all adverse impacts of a Program on a displaced person’s property and/or livelihoods, including compensation, relocation (where relevant), and rehabilitation as needed land acquisition – a time-bound action plan with budget setting out and compensation and resettlement strategies, objectives, resettlement entitlement, actions, responsibilities, monitoring, and plan evaluation severely – affected households who will (i) lose 10% or more of their affected total productive land and/or assets, (ii) have to relocate; household and/or (iii) lose 10% or more of their total income sources due to the Program activities vulnerable – distinct groups of people who might suffer disproportionately groups or face the risk of being further marginalized by the effects of

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resettlement and specifically include: (i) female headed households with dependents, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) households with children and the elderly who are landless and with no other means of support, (v) landless households, and (vi) indigenous people or ethnic minorities

NOTE{S} In this report, "$" refers to United States dollars unless otherwise stated.

This land acquisition and resettlement policy framework 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. Your attention is directed to the “terms of use” section of this website.

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CONTENT

I. Introduction A. Program Concept, Objectives and Geographic Coverage B. Scope of the Land Acquisition and Resettlement Framework II. Screening of Program III. Legal Framework A. Land Acquisition and Resettlement in the Kyrgyz Republic B. Asian Development Bank Safeguard Policy Statement 2009 C. Comparison of Requirements of Asian Development Bank Safeguard Policy Statement 2009 with Kyrgyz Legislation on Resettlement Policy IV. Eligibility Criteria and Valuation Procedures for Affected Assets A. Compensation Eligibility and Entitlements V. Socioeconomic Information VI. Consultation, Participation, and Disclosure A. Consultation, Participation, and Disclosure B. Disclosure C. Participation of Women and Vulnerable Groups VII. Grievance Redress Mechanism A. Grievance Redress Mechanism B. Receiving Grievance VIII. Institutional Arrangements and Implementation IX. Compensation for Various Assets A. Compensation for Land B. Calculation of Crops and Fruit Trees Compensation Rate C. Compensation for Buildings and Structures D. Compensation for Community Assets E. Compensation for Loss of Businesses X. Implementation Schedule XI. Arrangements for Monitoring and Evaluation A. Overview B. Internal Monitoring

ANNEXES 1. Sample Land Acquisition and Resettlement Plan Outline 2. Checklist for the Rapid Involuntary Resettlement Assessment and Involuntary Resettlement Categorization

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PREAMBLE

This document is an update of the land acquisition and resettlement policy framework (LARF) prepared under the Asian Development Bank-Bank (ADB)-financed Naryn Rural Water Supply and Sanitation Development Program (the Program). The LARF was prepared by the Community Development and Investment Agency on 7 July 2016 and updated on March 2017 for World Bank-financed program. The current update of the LARF is based on relevant laws on land acquisition and resettlement in the Kyrgyz Republic and requirements of ADB’s Safeguard Policy Statement 2009. The LARF describes the likely impacts of the program, identifies anticipated groups of the displaced people, specifies the land acquisition and resettlement principles to be applied to the Program, outlines procedures for grievance management, and describes monitoring and reporting requirements. The LARF will serve as a gap-filling tool for the implementation of the program action plan (the gaps are also specified in the program safeguard system assessment.

The scope of the LARF applies to private landowners whose lands will be permanently or temporarily affected by the involuntary resettlement caused by the Program and land renters and land users who may not have the legal right over the used land, affected crops, trees, all affected non-land assets regardless of their legal status, affected businesses and employment. This LARF is not applicable to the state lands that are transferred from one state agency to another or used temporarily by a contractor during the construction works, unless third parties are affected by the transfer or use. State or local authorities owned structures affected by the Program will not be paid for by monetary compensation but will be restored during the works.

By adopting the framework, the executing agency and implementing agency expresses a commitment to (i) avoid and, where avoidance is not possible, minimize land acquisition and involuntary resettlement; and (ii) mitigate impacts in such a way that the affected people are able to maintain, restore or improve their livelihoods.

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I. INTRODUCTION

A. Program Concept, Objectives, and Geographic Coverage

1. The objective of the Naryn Rural Water Supply and Sanitation Development Program (the Program) is to assist the Kyrgyz Republic to (i) develop and rehabilitate water supply networks and related infrastructure; (ii) pilot of non-networked sanitation solutions; and (iii) establish of sustainable operational models, including development of local capacity and community-based operational management.

2. The results-based lending (RBL) program is expected to provide (i) safe drinking water to 100% of the population (around 64,000 inhabitants) in Naryn province; (ii) new connections for 30% of the population (30,000 population) who are currently not connected; and (iii) non-network solutions (group septic tanks) for 520 households and 22 social facilities (e.g., schools, kindergartens, and health centers).

3. The proposed RBL program is for the achievement of the following objectives: (i) decent living standards for each Kyrgyz citizen; (ii) improvement of health and quality of life; and (iii) reduced adverse environmental impact by 2026.1 The proposed program will support the implementation of the National Development Strategy of the Kyrgyz Republic (2018–2040) (the Strategy) by helping support the provision of improved water and sanitation systems in selected priority villages in Naryn oblast (province). The targeted outcome of the program is the improvement of inclusive and reliable access to safe water supply and sanitation (WSS) services in rural communities in the Naryn oblast.

4. RBL is a suitable modality for the program because (i) the government has formulated a broad ranging water strategy that includes special attention to providing clean water and sanitation to rural communities; (ii) an investment loan modality would have higher transaction costs with multiple, relatively small transactions for villages’ WSS schemes; (iii) the government has gained and demonstrated reasonable capacity through implementing investment activities in the sector, including with Asian Development Bank (ADB), European Bank for Reconstruction and Development, Islamic Development Bank, and the World Bank; (iv) using the government’s systems will provide incentives for the government to further improve its systems and enhance its ownership; (v) it will provide a platform for the government to coordinate the support of donors around a common set of agreed results, improving development coordination; and (vi) the modality enables ADB to disburse for results related not only to rehabilitation of water and sanitation systems, but also the institutional strengthening, and capacity development of the implementing agency (IA).

5. Alignment with ADB Strategic Priorities. The ADB’s Strategy 2030 identified addressing remaining poverty and reducing inequalities and promoting rural development and food security as two of its seven priorities. 2 The Program, in line with the ADB’s Strategy 2030 and ADB's country operational business plan for Kyrgyz Republic, 2019–2021,3 supports the government to promote social inclusion and development, particularly for vulnerable

1 Asian Development Bank (ADB). 2018. Concept Paper: Proposed Results-Based Loan, Grant and Technical Assistance Grant, Kyrgyz Republic: Naryn Rural Water Supply and Sanitation Development Program. Manila. 2 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 3 ADB. 2018. Country Operations Business Plan: Kyrgyz Republic, 2019–2021. Manila.

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communities of Naryn oblast; and build resilient communities by improving access to safe water and sanitation services.

6. At the impact level, the RBL program is aligned with the government’s goal of improving the health and quality of life of residents and reducing adverse environmental impact by 2026.4 The program’s outcome will be an enhanced, inclusive, and reliable access to safe water supply and improved sanitation facilities for rural communities in Naryn oblast, with a priority focus on 64,000 population.5

B. Scope of the Land Acquisition and Resettlement Framework

7. The land acquisition resettlement framework (LARF) provides guidelines for development of appropriate mitigation measures, including compensations for acquired land and assets and reparation of the damages due to temporary impacts of land acquisition and resettlement (LAR), caused by future Program activities whose exact locations are not known yet. The LARF is applicable to all ADB financed programs which may cause physical and/or economic displacement (involuntary resettlement (IR) category B only) of the Program affected persons such as: (i) relocation or loss of shelter; (ii) loss of land, assets, or access to them; and (iii) loss of income sources or means of subsistence.

8. Designs of subprojects at village level have not been prepared yet and the exact sites for rehabilitation and/or construction of reservoirs and other water and sanitation structures, have not been identified. The impacts will be known in detail at the stage of development of the design. At this stage, possibility of minor land acquisition, temporary restriction of access to the land during the construction period or permanent loss of assets, cannot be excluded. It needs to be noted that the RLB program does not fund involuntary resettlement category A programs.6 ADB Staff Guidance for Piloting Results-Based Lending for states that “ADB will refrain from including the activities that would be classified as category A for involuntary resettlement.”7

9. In case of any IR, a land acquisition and resettlement plan (LARP) will be developed. The LARP will define (i) the scale of impacts (temporary or permanent) on land use, access to the land, impact on buildings and structures and sources of income; (ii) in detail description of the legal framework applicable to the land acquisition; (iii) the mechanisms of compensation or/and assistance, resettlement procedures, eligibility criteria for compensation to the resettled population, methods of assessment; (iv) a matrix of entitlements and the right for compensation, describing the processes of implementation, disclosure, dissemination of information, and consultation procedures; (v) grievance mechanisms; (vi) compensation for affected land and assets including the LAR budget; and (vii) monitoring and evaluation arrangements. The outline of the LARP is presented in Annex 1.

10. The LARF contains measures to ensure that the displaced persons (DPs):

4 Government of Kyrgyz Republic, 2016 (footnote 15). 5 If more funds are mobilized during the program period, coverage will be expanded from 64,000 to 90,000 population (which is the estimated population of 43 villages in Naryn oblast identified by the government for ADB support). 6 ADB. 2018. Supplementary Staff Guidance for Piloting Results-Based Lending for Programs. Manila. The involuntary resettlement impacts of the activity are considered significant if 200 or more persons will experience major impacts, which are defined as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating). 7 Technical Appendix 9, para. 8 in RBL programs during the pilot phase (6 June 2013–5 June 2019).

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(i) are informed of their options of choice and rights related to the resettlement; (ii) participate in consultations on possible options for compensation, have the right of choice and are provided with technically and economically feasible alternatives of resettlement; and (iii) are provided with the prompt and effective compensation at full cost of replacement for the loss of assets related to implementation of the Program.

11. The LARF is based on the Kyrgyz Republic laws and regulations on LARs and ADB Safeguard Policy Statement 2009 (ADB SPS 2009) described in the following chapter.8

II. SCREENING OF PROGRAM ACTIVITIES

12. The first step in the process of preparing individual LARPs is the screening process to identify the land and areas that may result in resettlement impacts. The screening will be carried out in conjunction with ARIS staff, local government bodies (e.g. architecture, schools, and kindergartens) to identify the types and nature of potential impacts related to the activities proposed under the Program, and to provide adequate measures to address them.

13. The screening process will involve direct consultation in (simple language) with the DP(s) who will work with a safeguard specialist/consultant and local officials (architect, deputies of local keneshes, nongovernment organization representatives, and other stakeholders). During the consultations, resettlement-related entitlements will be explained to DPs. This will include description of grievance redress procedures and entitlement matrix. DPs will be provided with the opportunity to express their feedback and concerns.

14. It also ensures that the avoidance or minimization of resettlement is a key criterion when designing LARP activities under the Program.

15. Screening will be undertaken in accordance with established screening criteria and documented as a report on screening of potential social impacts,9 described in Annex 2.

16. Should the screening process show that land acquisition will be required, the next step will be census or inventory of all DPs individually reflecting their assets and income sources in order to set required compensation and other assistance. This activity should be carried out by the Community Development and Investment Agency (ARIS) specialist or consultant at the same time as the inventory and evaluation of all assets affected for each individual affected household (AHs) or DPs.

17. No design will be finalized unless it is clearly determined that every effort has been made to minimize resettlement impacts. If the screening will show the need for resettlement, the following step should be social and economic profiling and inventory of land reserves and assets to define the extent of required resettlement. Then, a LARP development under the subproject should be carried out.

18. If the screening process shows that there is no land acquisition, ARIS, as per the SPS 2009 requirements, will prepare a due diligence report due diligence report documenting that the Program will not affect private land or assets. The due diligence report will be reviewed and approved by ADB.

8 ADB. 2009. Safeguard Policy Statement. Manila. 9 The checklist for the rapid involuntary resettlement assessment.

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III. LEGAL FRAMEWORK

A. Land Acquisition and Resettlement in the Kyrgyz Republic

19. The legislative articles listed below regulate the issues of obtaining state ownership rights to privately owned parcels based on necessary public needs.

20. The main legal document regulating the citizen’ rights for land is the Constitution of the Kyrgyz Republic as of 2010, according to which land is under the state, municipal, private and other forms of ownership. (i) Article 12 a. In the Kyrgyz Republic, the variety of forms of ownership and their equal protection is guaranteed. b. Ownership is inviolable. None can be arbitrarily deprived of his property. Expropriation of property against the will of the owner is possible only through a court decision. c. Land, subsoil resources, air space, waters, and forests are an exclusive property of the Kyrgyz Republic; those are used for protection of the unified environmental system being a basis of life and livelihood of the Kyrgyz people and are under the special protection of the government. d. The extent and procedures used by owners to exercise their rights and ensure protection of those are regulated by the law. Below are the articles of the Land Code of the Kyrgyz Republic containing the most suitable issues on land use and land acquisition.10 (ii) Article 4. Ownership of Land. In accordance with the Constitution of the Kyrgyz Republic, land may be owned by the state, community, private, or have other forms of ownership. a. State-owned land shall include lands allocated to the state land users, lands of forest, water funds, lands of especially protected natural territories, lands of reserve stock, lands of frontier area, lands of the state fund of agricultural land, pastures of rural settlements, pastures in the zone of intensive use, as well as distant pastures, and other lands that have not been transferred in private or municipal ownership. b. State ownership shall also include lands of state livestock breeding, seed- growing, experimental farms, testing stations and areas, bases of education and scientific research institutions of agricultural profile formed on the lands of the state agricultural fund, except for the lands allocated as a land shares to the citizens residing and working in the given farms. c. The right of the state ownership to land shall be exercised by the Government of the Kyrgyz Republic on the entire territory of the republic and by the local state administrations within jurisdiction established by the Code. d. Lands within the borders of aiyl okmotu and towns or cities, belong to municipal ownership, except for land in private and state ownership. e. Management and disposal of lands in municipal ownership shall be exercised by: • the executive body local self-government within the borders of aiyl aimaks; and • local self-government body within the borders of cities. • Management of lands in the state ownership within the borders of aiyl

10 Government of the Kyrgyz Republic. 1999. Land Code of the Kyrgyz Republic. Bishkek.

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aymaks and towns shall be exercised by the bodies of local self- government in cases stipulated by the Code. • Pastures cannot be transferred to private ownership or lease. (iii) Article 7. Terms of utilization of land plots by land users a. The use of a land plot may be unlimited (without indication of term) or fixed term (temporary). b. The fixed term (temporary) use of the land plot including the conditions of the lease agreement shall be recognized the use of land limited in term up to 50 years. After expiration of the period, the period of use of the land plot may be prolonged subject to the agreement of parties. c. Land plots shall be provided to foreign individuals for fixed term (temporary) use only. d. As a rule, agricultural land of the state agricultural fund shall be granted for lease for the period of not less than 5 years. (iv) Article 35. Transfer of a land plot. Payment for transfer of a land plot (excerpt) a. An owner of a land plot or a land user may transfer his right to a land plot fully or partially to other individual or legal entity without any permission of state agencies unless otherwise provided by the Code, other legislative acts of the Kyrgyz Republic, and conditions of allocation of a land plot. b. Upon transfer of a right to land plot by the owner or land user to other individual or legal entity, the amount of payment for land plot shall be determined by the agreement of parties. (v) Article 53. Establishment of an easement a. An easement may be established by the agreement of parties (voluntary easement) or, if necessary, by decision of the authorized agency (involuntary easement). b. Encumbrance of land with an easement shall not deprive the landowner or land user to use and dispose his right to a land plot. (vi) Article 56. Purposes of establishment of an involuntary easement a. In cases provided by the Code and other legislation, an authorized agency may establish involuntary easement upon request of an interested party. b. The involuntary easement shall be established to provide: • access to a land plot if another access is impossible, extremely difficult, or requires incommensurate expenses; • laying and operation of electric transmission lines, communications, water supply, heat supply, reclamation, and other needs that may not be provided without establishment of the involuntary easement. (vii) Article 57. Indemnification of damages related to establishment of the involuntary easement. Fee for the involuntary easement (excerpt) Infliction of loss upon a landowner or land user by establishment of the involuntary easement shall be subject to indemnification by the person in whose interests the easement is established. (viii) Article 62. Termination of the title to a land plot The title to land plot shall terminate in the following cases: a. alienation of the right to land plot to another person; b. foreclosure of the land plot being in ownership or in use upon the claims of creditors in accordance with legislation; c. death of a landowner or land user in the absence of heirs; d. voluntary waiver of the rights to land plot by the landowner or land user; e. expiration of the term of the land use; f. termination of labor relations or equivalent relations, based on which the official

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land plot was allocated for use; g. impossibility of further use of the land plot caused by a natural disaster; h. withdrawal of the land plot on the grounds and in the procedure provided in Chapter 11 of the Code; i. disestablishment of the state or municipal land user, public association, social fund, and of a religious organization; j. withdrawal of citizenship of the Kyrgyz Republic of the owner of the agricultural land plot or land plot, except in case of mortgage housing construction; k. upon termination of the concession agreement, contract on mining concessions, production sharing agreements, as well as the termination of mineral rights; and l. termination of the agreement concluded in the framework of public-private partnership. (ix) Article 66. Grounds for withdrawal of the land plot (excerpt) Withdrawal of the land plot shall be allowed in the event of: a. utilization of a land plot in violation of its targeted use; b. withdrawal (redemption) of the land plot for the state and public needs in accordance with provisions of the Chapter; c. failure to use a land plot or part of the land plot allocated for agricultural production within 3 years; d. failure to use within the specified period a land plot allocated for non- agricultural production in accordance with the legislation of the Kyrgyz Republic; e. failure to pay land tax within the period established by the tax legislation; f. failure to pay insurance fees within the period established by the Law of the Kyrgyz Republic on Tariffs of Insurance Fees for the State Social Insurance; and g. termination (cancellation) the mineral rights by the state body on use of subsoil recourses in cases provided by the Law of the Kyrgyz Republic on Subsoil. The land plot may be withdrawn for satisfaction of the state and public needs subject to payment of the value of the right to land plot and indemnification of losses. (x) Article 68. Withdrawal (redemption) of the land plot for the State and Public needs (abstract from the Article) Upon calculation of the redemption price of the land plot, it shall include the market value of the right to land and of the buildings and structures located on the land, and the damages inflicted to the land owner or land user by termination of the right to land plot, including the losses connected with early termination of his obligations to third parties.

B. Asian Development Bank Safeguard Policy Statement 2009

21. Three important elements of ADB’s IR policy are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, considering the following basic principles: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning

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through a survey and/or census of DPs, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and indigenous peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism (GRM) to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of DPs and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all DPs through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically DPs with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas, provide them with legal and affordable access to land and resources, and in urban areas, provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner to ensure that people will maintain the same or better income and livelihood status. (vii) Ensure that DPs without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on DPs’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a LARP, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute IR as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant IR impacts, consider implementing the IR component of the project as a stand-alone operation.

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(xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of DPs, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

C. Comparison of Requirements of Safeguard Policy Statement 2009 with Kyrgyz Legislation on Resettlement Policy

22. The main differences between the land laws of the Kyrgyz Republic and ADB SPS 2009 are outlined in the Table 1 below:

Table 1: Comparison of Land Acquisition and Resettlement Provisions between Asian Development Bank’s Safeguard Policy Statement and Kyrgyz Legislation ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs 1. Livelihood ADB Policy requires Notion of livelihood No Policy reconciliation needs. rehabilitation rehabilitation/ improvement of rehabilitation not Application already reconciled DP livelihood standards. sanctioned by national in previous ADB projects but to law. be formalized regarding indirect/livelihood impacts rehabilitation. 2. Compensation A. DPs with formal title have to A. DPs with formal title A. Same in principle/ entitlements be compensated for lost are compensated for lost application. No reconciliation land/other assets. land/other assets. needed B. DPs with formalizable title B/C. DPs with legalizable B/C. Critically different in have right to be compensated or no legal title. principle and application. for lost land and assets after Legalizable are not Application already reconciled the EAs helps them in distinguished and in previous ADB projects but legalizing their assets. considered non-legal as formal reconciliation on both C. DPs with no legal title are legalization is a burden counts through a decree for compensated for lost non-land of the DPs. Non-legal ADB projects is needed. assets. DPs have no right to be compensated for land and non-land assets. 3. Compensation A. Permanent loss of land. A. Permanent loss of A. Same in principle/ Replacement land as land. Cash application. Technical preferred option or cash compensation at market improvement of valuation compensation at full market rate or replacement land mechanisms/process needed. rate. At least for for legal/ legalizable legal/legalizable DPs. DPs. B. Replacement of leased B. Replacement of B. Same in principle. land. Based on replacement of leased land. Based on Application to be further lost income through cash lease replacement. improved. No reconciliation compensation of gross income needed but a method to replace x the remaining lease years or the lease in cash is needed. To through a replacement land be reflected through an lease instruction for ADB projects. C. Loss of structures/ C. Loss of C. Different in policy and buildings. Cash compensation structures/buildings. application. Informally at replacement cost for lost Cash compensation at reconciled in previous projects item free of depreciation, market rate deduced of but formal application transaction costs, other depreciation. reconciliation by a decree for deductions ADB projects needed.

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ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs D. Loss of indirectly affected D. Loss of indirectly D. The Kyrgyz Republic law is items. Non affected parts of an affected assets. Law is silent on this point. While no asset no longer usable after silent on how to reconciliation is needed the impact will have to be compensate when only point needs to be clearly compensated as well. part of the land is to be agreed and sanctioned through taken. a decree for ADB projects. E. Business losses. E. Loss of business. E. Same in principle but ADB Reimbursement of actual Cash compensation at does not consider opportunity losses + business re- market value for all cost. Application reconciliation establishment costs. For damages/ opportunity needed to define a clear application based on tax costs incurred. Burden of methodology and distinguish declared income for period of proving opportunity costs short- and long-term losses. business stoppage. In rests on the DP based absence of tax declaration on recognized based on maximum non- documented evidence taxable salary. but no clear methodology. F. Loss of wood/unproductive F. Loss of F. Same in principle, different in trees. Irrespective of legal land wood/unproductive trees. application. Already adjusted occupancy status Mandate in general for previous ADB projects but compensation at market rate. terms by the law but Application reconciliation is Application based on tree often not provide as needed through a decree for type/wood volume, or other leaving the salvaged ADB projects ensuring that also methods ensuring DPs’ timber to the DPs is cash compensation is provided rehabilitation. equated with by default. compensation. G. Loss of productive trees. G. Loss of productive G. Same in principle different in Compensation at replacement trees. Mandate by law application. Already adjusted cost based for application on but selectively applied for previous ADB projects. various methods: tree depending on situation. Application reconciliation reproduction cost, income lost Valuation standards needed through a decree for (x tree type x market value of differ from SPS ADB projects ensuring 1 year income x number of standards. systematic law implementation years needed to grow the tree and use of valuation standards to its full production). fitting SPS. H. Loss of crops. H. Loss of crops. H. As above. Compensation of crop in cash Mandated by law but at market price. selectively applied. I. Loss of jobs. Indemnity for I. Loss of jobs. I. Same in principle but different lost income ensuring DP’s Compensation for loss of in implementation. Application rehabilitation. Based for employment equal to 3 reconciliation needed through a application on stoppage period months average salary + decree for ADB projects up to a maximum of 12 severance pay worth at establishing mechanisms to months of declared salary least 2 months average asses temporary/permanent (formal employees) or salary. Compensation income loss indemnity of both minimum salary (informal provided by employer formal and informal employees employees.) Compensation and then reimbursed by and guaranteeing direct directly disbursed to DPs. EA. disbursement to the DPs.

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ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs 4. LAR Planning, A. Resettlement plan. LARP A. Resettlement plan. A. Partly different in principle assessment and preparation includes (i) There are no and application. No valuation of impacts assessment/DP requirements to prepare reconciliation needed as impacts census; (ii) definition of integrated and stand- law/regulation is silent on this entitlements, income/livelihood alone LARPs. LAR matter and SPS requirements restoration strategy, planning entails similar have been already applied in compliance & grievance but less previous ADB projects. Still, mechanisms, institutional extensive/simpler clear instructions regarding arrangements; (iii) consultation assessment/survey ADB projects ensuring the results; (iv) monitoring efforts than ADB policy, measurement of all impacts and schemes; (v) budget and as detailed below: the counting of all DP are implementation schedule. needed for mainstreaming LARP requires the following purposes. surveys: i. Measurement survey. i. Measurement survey. i. Detailed measurement Measures all affected items. Land and buildings surveys to be mainstreamed for impacts measured. Other all impacts. impacts identified but not measured. ii. DP census. Identifies all ii. DPs identification. ii. Detailed count of individuals DPs and establishes legitimate Identifies only legal DPs to be mainstreamed. beneficiaries based on legal status. iii. Socioeconomic survey. iii. Socioeconomic iii. The execution of the survey Provides background survey. No comparable is to be mainstreamed. information on DP’ requirements exist. socioeconomic features. iv. Valuation survey iv. Valuation survey iv. Valuation survey a) Land. If land market exists, a) Land. valued at a) Same in principle/application; based on a survey of recent market rate based on a transactions; without land transactions survey. market based on land Valuation includes productivity/ income; transaction costs/third party liabilities. b) Buildings and structures. b) Buildings and b) Already reconciled for Replacement cost of structures. Market value previous ADB projects but materials, labor and transport of materials, labor, Formal reconciliation needed. and special features of transport, and special building/structure without building features but discounting depreciation, discounted for salvaged materials and depreciation, salvaged transaction costs; materials or transaction costs. c) Trees/crops. Based on the c) Trees/crops. If c) Already reconciled for methodology detailed in compensated is provided previous ADB projects but section 2. based on the Formal reconciliation needed methodology detailed in (See 3.H above.) Detailed section 3.H or based on valuation for each tree based an agreed lump sum. on SPS requirements to be mainstreamed. 5. Procedural A. Information disclosure. A. Information A. Different in principle and mechanisms Resettlement-related disclosure. No disclosure application. Already reconciled documents to be timely requirement exists. for ADB projects. disclosed in the DPs’ language.

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ADB SPS (2009) and ADB Impact/Issue practice for application* Kyrgyz Republic Reconciliation Needs B. Public consultation. B. Public consultation. B. Same in principle but Meaningful public Matters of local different in application. Already consultations are to be held importance to be publicly reconciled for ADB projects. with the DPs. DPs should be discussed with local Better application needed. informed about their authorities. But no entitlements and options, as requirement to consult well as resettlement directly the DPs alternatives C. Grievance procedure. A C. Grievance C. Same in principle but GRM is to be established for Procedures. Each state different in application. Already each project. Information on agency/ministry should reconciled for ADB projects. GRM to be communicated to define a process for Better application needed. the DPs registering and reviewing the concerns and claims from citizens. D. Asset acquisition D. Asset acquisition D. Same in principle, but conditions. Property can be conditions. Property can unsystematic in application. acquired only after full be acquired only after full Application to be improved. compensation is paid to the compensation is paid to DPs DPs 6. Assistance to A. These DPs are to be A. No special A. Critically different in vulnerable and identified and special consideration is given to principle/ application. severely assistance is provided to these DPs. Permanent reconciliation affected DP restore/ improve their pre- through a decree for ADB project level of livelihoods. projects needed. ADB = Asian Development Bank, DP = displaced person, EA = executing agency, GRM = grievance redress mechanism, LAR = land acquisition and resettlement, LARP = land acquisition and resettlement plan, SPS = Safeguard Policy Statement. * As applied in ADB land acquisition and resettlement plans in the Kyrgyz Republic.

23. In case of differences between the laws of the Kyrgyz Republic and the requirements of ADB SPS 2009, the priority of ADB principles over the state legislation is a requirement for projects funded by ADB’s RBL modality. In this regard, the program team assisted the government in preparing safeguard related program actions as a part of the overall program action plan to address the identified weaknesses.

24. The following table specifies the existing gaps and activities to be taken to address these gaps. In addition, these activities are also specified in the program safeguard systems assessment report.

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Table 2: Safeguard Policy Principles Triggered – Involuntary Resettlement and Indigenous Peoples Safeguard Policy Statement Principles Gaps of National System requirements/practice with ADB SPS principles and gap filling mechanisms Involuntary Resettlement: ADB SPS 2009 requirements Principle 1: Screen the project early on to • LAR planning, as per national regulations, entails similar determine past, present, and future involuntary but less extensive/simpler assessment/survey efforts than resettlement impacts and risks. Determine the ADB Policy. scope of resettlement planning through a survey • In practice, the IA, ARIS, follow WB social safeguards and/or census of DPs, including a gender requirements on projects which trigger involuntary analysis, related to resettlement impacts and resettlement. This screening usually is carried out jointly by risks. ARIS staff, local government bodies such as Department for Architecture, CDWUUs, schools, kindergartens representatives and other stakeholders) to identify the types and nature of potential adverse impacts and to provide adequate measures to avoid, minimize, and address them. However, there is no specialized staff (DMS, valuation, etc.) involved in screening and impact assessment process. • ARIS will conduct early screening for IR immediately after the scope of the project is finalized for each village with involvement of specializes staff (DMS specialists, valuator etc.) and based on the provisions of LARF prepared as a part of the PSSA. Principle 2: Carry our meaningful consultations • National regulations require that matters of local importance with affected persons, host communities, and to be publicly discussed with local authorities, but no concerned nongovernment organizations. Inform requirement to consult directly the DPs. Each state all displaced persons of their entitlements and agency/ministry should define a process for registering and resettlement options. Ensure their participation in reviewing the concerns and claims from citizens. planning, implementation, and monitoring and • The IA will apply the existing, currently used BFM specially evaluation of resettlement programs. Pay established and used for other donors financed projects. particular attention to the needs of vulnerable The BFM is exclusively used for the projects and program groups, especially those below the poverty line, managed by the IA and includes a GRM for any the landless, the elderly, women and children, and resettlement complaints. It is a process in which prompt, indigenous peoples, and those without legal title objective information is received and appeals, claims, to land, and ensure their participation in suggestions, complaints, requests, positive feedback etc. consultations. Establish a GRM to receive and related to all ARIS projects is considered and evaluated. resolve the affected persons’ concerns. Support The BMF is the part of the LARF developed for the program the social and cultural institutions of DPs and their and it will enable project beneficiaries and other citizens of host population. Where IR impacts and risks are the Kyrgyz Republic to provide feedback on the project. highly complex and sensitive, compensation, and resettlement decisions should be preceded by a social preparation phase. Principle 3: Improve, or at least restore, the • National regulations ensure the entitlement of DPs with livelihoods of all DPs through (i) land-based formal title to be compensated for lost land/other assets at resettlement strategies when affected livelihoods market cost, while non-legal DPs have no right to be are land based where possible or cash compensated for land and non-land assets. Notion of compensation at replacement value for land when livelihood rehabilitation not sanctioned by national law. the loss of land does not undermine livelihoods, • At the early stage of the project when the detailed design is (ii) prompt replacement of assets with access to not completed, the IR assessment was based on the field assets of equal or higher value, (iii) prompt visits, nature of the project, and discussions with the key compensation at full replacement cost for assets stakeholders from the local authorities. It is expected that that cannot be restored, and (iv) additional the impacts that are likely to be triggered will be minor and revenues and services through benefit sharing thus, the people’s livelihood will not be severely affected. schemes where possible. Nevertheless, the EA/IA will prepare a LARP in accordance with provisions of developed LARF and ensure that all requirements specified in this principle are fulfilled. Principle 4: Provide physically and economically • This principle might be partially triggered as no physical DPs with needed assistance, including the displacement and relocation of people is expected. following: (i) if there is relocation, secured tenure • The EA/IA will ensure that all economic impacts are to relocation land, better housing at resettlement properly assessed and compensated before the works

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Safeguard Policy Statement Principles Gaps of National System requirements/practice with ADB SPS principles and gap filling mechanisms sites with comparable access to employment and begin. In case of unforeseen physical relocation, this production opportunities, integration of resettled principle will be fully triggered. persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Principle 5: Improve the standards of living of the • No special consideration is given to vulnerable DPs. displaced poor and other vulnerable groups, • The proposed ADB financing will be aligned with the including women, to at least national minimum following impacts: (i) decent living standards for each standards. In rural areas provide them with legal Kyrgyz citizen achieved, and (ii) health, quality of life and affordable access to land and resources, and improved and adverse environmental impact reduced by in urban areas provide them with the relevant 2026.1 The program will have the following outcome: income sources and legal and affordable access improved inclusive and reliable access to safe WSS to adequate housing. services in rural communities in Naryn oblast. • The needs of vulnerable groups, such as those living below the poverty line, the landless, the elderly, women, children and those without a legal title to land will be determined during the LARP preparation in accordance with provisions defined by developed LARF and the principle will be followed as per the SPS 2009. Principle 6 and Principle 11: Establish • As per national legislation, the property can be acquired procedures in a transparent, consistent, and only after full compensation is paid to DPs equitable manner if land acquisition is through • At previous ARIS projects, the IR impact was insignificant. negotiated settlement to ensure that those people “The Ministry of Agriculture and Water Resources has a who enter into negotiated settlements will compensation matrix for damages during land acquisition, maintain the same or better income and livelihood crop loss, and cutting of fruit trees. When applied, rates status. current for the period of actual replacement must be used. The State Agency for Construction and Architecture under Pay compensation and provide other resettlement the Government of the Kyrgyz Republic, the construction entitlements before physical or economic departments have a schedule of rates for preparing displacement. Implement the resettlement plan estimates for construction projects, which the consultant under close supervision throughout project can use to assess costs for construction materials and implementation. labor.” 2017, RPF for Sustainable Rural Water Supply and Sanitation Development Project, page 26–27. However, the EA/IA did not have requirements on involvement of certified valuator previous projects. • For the program, the compensation for loss of land, assets and income (based on impact will be measured by the DMS, will follow the replacement cost principle as set in the SPS 2009. The compensation and provision of other resettlement entitlements should be paid before the physical works. • For the project, a certified valuator, trained and familiar with the SPS requirements, should be engaged. Principle 7: Ensure that DPs without titles to land • As mentioned, the national regulations ensure the or any recognizable legal rights to land are eligible entitlement of DPs with formal title to be compensated for for resettlement assistance and compensation for lost land/other assets, while non-legal DPs have no right to loss of non-land assets. be compensated for land and non-land assets. • The provision under this principle at other ARIS projects • was based on WB OP 4.12. • The requirement under Principle 7, will be provided as per the SPS 2009 based on the provisions of entitlement matrix defined in the prepared LARF of the program.

1 ADB. 2018. Draft Concept Paper. Manila. See the design and monitoring framework.

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Safeguard Policy Statement Principles Gaps of National System requirements/practice with ADB SPS principles and gap filling mechanisms Principle 8: Prepare a resettlement plan • There are no requirements in national legislation to prepare elaborating on DPs’ entitlements, the income and integrated and stand-alone LARPs. LAR planning entails livelihood restoration strategy, institutional similar but less extensive/ simpler assessment/survey arrangements, monitoring and reporting efforts than ADB policy. framework, budget, and time-bound • Preparation of the LARP as per ADB SPS 2009 implementation schedule. requirements based on the LARF provisions is required for the program. Principle 9: Disclose a draft resettlement plan, • No special disclosure requirements defined by national including documentation of the consultation legislation, though the matters of local importance to be process in a timely manner, before project publicly discussed/notified to local authorities, as well as appraisal, in an accessible place and a form and notification procedures as defined by legislation of language(s) understandable to affected persons registered right holders. and other stakeholders. Disclose the final • The EA/IA are committed to building public awareness resettlement plan and its updates to affected about the BFM and the GRM. The existing BFM includes persons and other stakeholders. the following commitments: (i) information on the BFM will be disseminated to all beneficiaries and people impacted by ARIS-managed projects via regular information channels (i.e., TV and radio companies, printed media, radio stations, news agencies, social media), as well as through the organization of meetings, roundtables, and public hearings on issues such as resettlement and compensation; (ii) the holding of working meetings at all stages of ARIS project implementation; and (iii) the organization of a BFM training module and other awareness sources through ARIS. • Awareness building campaigns will be conducted annually. They will be designed by the ARIS communications team to encourage the use of the BFM/GRM. Information on complaints received and resolved will be published. The campaigns will use local media (e.g., TV, newspaper, radio). When organizing and conducting these campaigns, special efforts shall be made to reach vulnerable groups. • The LARP will be disclosed on the EA/IA websites as well as on ADB’s website. The LAR-related information will be disseminated to DPs according the procedure defined by prepared LARF. Principle 10: Conceive and execute IR as part of • The principle will be partially triggered as significant IR a development project or program. Include the full impacts are not expected. The EA/IA needs to ensure costs of resettlement in the presentation of timely and sufficient resources for the payment of project’s costs and benefits. For a project with compensation to DPs. significant IR impacts, consider implementing the IR component of the project as a stand-alone operation. Principle 12: Monitor and assess resettlement • There are no requirements in national legislation on outcomes, their impacts on the standards of living monitoring and reporting of LAR-related procedures. of DPs, and whether the objectives of the • The EA/IA has established a functioning system for the resettlement plan have been achieved by taking monitoring of BFM effectiveness which is being used for into account the baseline conditions and the other ongoing projects. The following measures are being results of resettlement monitoring. Disclose taken to monitor whether the BFM is functioning as monitoring reports. intended: (i) During the social audits and open meetings, villagers discuss the effectiveness of the grievance handling system and gather suggestions on how to improve it. (ii) During regular supervision visits, the projects central office will assess the functioning of the grievance handling system. (iii) The project team and World Bank jointly review BFM monitoring data as part of regular implementation support missions. (iv) During the project implementation, a designated site person (technical specialist/engineer), monitors and

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Safeguard Policy Statement Principles Gaps of National System requirements/practice with ADB SPS principles and gap filling mechanisms reports to ARIS on all social and environmental issue on a daily basis. If an issue cannot be resolved, ARIS resettlement and/or environmental specialist visit the site and attend the issue. • To ensure the proper safeguards monitoring and reporting is carried out for the program, the internal monitoring mechanisms and reporting requirements are defined in the prepared LARF. Meantime, the designated safeguards staff to be hired by ARIS and supervision consultant will be responsible for the safeguards monitoring and reporting. Indigenous Peoples The program will not impact any indigenous peoples, as per definition of SPS and will be confirmed during the project implementation. ADB = Asian Development Bank, ARIS = Agentstvo Razvitya i Investirovanya Soobshestv (Community Development and Investment Agency), BFM = beneficiary feedback mechanism, CDWUU = community drinking water users’ union, DMS = detailed measurement survey, DP = displaced person, EA = executing agency, GRM = grievance redress mechanist, IA = implementing agency, IR = involuntary resettlement, LAR = land acquisition and resettlement, LARF = land acquisition and resettlement framework, LARP = land acquisition and resettlement plan, OP = operational plan, SPS = Safeguard Policy Statement, WB = World Bank.

IV. ELIGIBILITY CRITERIA AND VALUATION PROCEDURES FOR AFFECTED ASSETS

A. Compensation Eligibility and Entitlements

25. The involuntary withdrawal of land results in relocation or loss of shelter; and loss of assets or access to assets or loss of income sources or means of livelihood, whether or not the DPs must move to another location or not. SPS 2009 suggests the following three criteria for eligibility: (i) all DPs losing land covered by legal title and/or traditional land rights, legalizable land, or land without legal status; (ii) tenants and sharecroppers whether registered or not; (iii) owners of buildings, crops, plants, or other objects attached to the land; and (iv) DPs losing business, income, and salaries.

26. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in (i), (ii), (iii), or (iv) above are to be provided with compensation for loss of assets other than land.

27. It is therefore clear that all program affected persons irrespective of their status or whether they have formal titles, legal rights or not, squatters, or otherwise encroaching illegally on land, are eligible for some kind of assistance if they occupied the land or had use of it, before the entitlement cut-off date.

28. In case of differences between the laws of the Kyrgyz Republic and the requirements of ADB SPS 2009, the principles and procedures of SPS 2009 should be applied.

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Program Impact Category Asset Affected Compensation Guide

Temporary acquisition Landowner Land • Rental for land based on market tariffs for the assessed duration of of land for works and temporary impact taking into account the rates as of the current period, construction restoration of land and all assets located on the land in the previous condition. Informal user Land • Restoration, replacement or compensation of all non-land assets damaged or removed. No compensation for land is envisaged. • In the case of loss of income, compensation in the amount of confirmed lost income shall be paid.

Permanent acquisition Landowner Land • Replacement land of equivalent market value as priority option within of land for works, the acreage and fertility if feasible. In case of unavailability of land, cash construction or as part compensation at market rate and replacement value will be paid, of first sanitary including fees for registration and re-registration of rights. protection area • If the remainder of the plot is not economically viable, the entire plot will be purchased upon the owner’s request. Informal user Land • Land compensation is not envisaged. However, if a land plot was used as a means of subsistence, then such means will be restored.

All DPs Assets • Compensation in cash for assets attached on the affected land at replacement value. Farmer with land title Owner Crops • In addition to land compensation, the DP will be allowed to take standing crop and receive a cash compensation at highest market value for loss of 1 year of agricultural harvest or according to the rates of the Ministry of Agriculture and Land Reclamation of the Kyrgyz Republic , whichever is higher. • For temporary use of land, when sowing time is lost, compensation will be paid for lost harvest based on market value of previous crop.

Formal tenant farmer Tenant Crops • Allowed to take standing crop and cash compensation for loss of and informal farmer agricultural harvest for 1 year, or according to the rates of the Ministry of Agriculture and Land Reclamation of the Kyrgyz Republic, whichever higher at highest market rate • For temporary use of land, when sowing time is lost, compensation will be paid for lost harvest based on market value of previous crop. Fruit tree owner Owner Fruit tree • Price of a sapling and cash compensation for the value of the harvest regardless on the legal multiplied by number of years it will take for the sapling to reach status of land where maturity three is planted Non-fruit trees • Timber or cash equal to timber value

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Program Impact Category Asset Affected Compensation Guide

Permanent acquisition Owner of structure Any structure • Replacement with structure of equivalent value or compensation in cash of legal structure including fence, at replacement value and the right for usable materials sanitation structure, etc. Permanent acquisition Owner of structure Any structure • Replacement with structure of equivalent value or compensation in cash of illegal structure including house, at replacement value and the right for usable materials fence, sanitation structure, etc.

Restriction of access to Tenant or house owner Section of residential • Recovery of lands to its initial condition houses compound • In-kind compensation for affected person’s need such as alternative car temporarily affected parking facility or access to house • Disturbance allowance set on the basis of minimum wage for each affected by works week (7 days) of disturbance calculated on a pro rata basis (a specific formulation of the allowance would be established in the relevant LARP). Vendors or business Owner of business Temporary loss of • Cash compensation of estimated business loss assessed from records entrepreneur business due to of preceding 3 months or equivalent business (if no records). works. • Disturbance allowance equivalent to 7 days of business profit, or, if the disturbance is longer, disturbance allowance is paid for the assessed disturbance period

Loss of income Business owner All DPs regardless of Owner: /employment Unregistered business their legal status • Permanent impact. Cash indemnity of 1-year net income or in the Loss of employment absence of income proof, or in cases where DPs have paid tax based on a flat rate, they will receive compensation equal to 1 week to 12 months minimum national salary (depending on time needed to restore business operation • Temporary impact. Cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum national salary for months of business stoppage • Permanent worker/employees. Indemnity for lost wages equal to actual wage for 3 months or, in case of absence of tax declaration, one-time minimum national salary in cash for 3 months. For all the above, some acceptable official documents need to be presented, i.e., salary payment document, financial statement.

Severe Impacts Physical relocation or All severely affected Agricultural income: 1 additional crop compensation for 1 year’s yield of loss of >10% of households including affected land or an allowance covering 3 months of minimum national salary, productive assets informal settlers whichever is higher, or, for other incomes: an allowance covering 3 months of minimum national salary

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Program Impact Category Asset Affected Compensation Guide

Livelihood restoration DPs losing more than All severely affected Agricultural livelihood restoration: Two times annual harvest yields (at 10% of their agricultural households AHs verified market rates) for all types of crops (inclusive of fodder) and trees productive assets including informal from the area affected by the land take, for all severely affected settlers households. If the amount is less than 3 months minimum national salary, 3 months minimum national salary will be paid instead. DPs losing more than All severely affected Non-agricultural livelihood restoration: A livelihood restoration package 10% of their non- households including of 3 months of minimum national salary agricultural productive informal settlers assets Relocation/Shifting Transport/transition All AHs to be An allowance covering transport and livelihood expenses for the transitional costs relocated period

Vulnerability allowance Identified on the basis of Any land or assets In addition to compensation for assets lost, a vulnerability allowance set social assistance affected. to be one year of supplemental social assistance payments such as payments (disability government disability payments, pensioners, widows, female-headed payments, pensioners, households, and registered poor households. widows, female-headed 1. Support rendered in removal and transportation of salvageable households, and materials. registered poor 2. Special attention will be paid to the livelihood restoration of households) as vulnerable households. determined by the The packages will be determined and described in the LARP/s legislature of the Kyrgyz Republic and ADB SPS 2009 requirements Loss of common Community/public assets Community/local • Reconstruction of the loss of resource/asset in consultation with property resources authority/government community and restoration of their functions

Unforeseen impacts Impacts during All DPs • Due compensation to be assessed and paid when the impacts are during construction, construction to identified based on the above provisions and on the requirements of including temporary properties or assets out ADB SPS 2009 impacts and impacts on of the corridor of impact livelihoods not or RoW otherwise assessed. ADB = Asian Development Bank, AH = affected household, DP = displaced person, LARP = land acquisition and resettlement, ROW = right-of-way, SPS = Safeguard Policy Statement.

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V. SOCIOECONOMIC INFORMATION

29. The impact assessment for the Program will be carried out based on the detailed design. The information on the affected land plots will contain (i) names of affected people, (ii) owners and tenants, (iii) designated use of plots, (iv) size of land plot, and (v) proportion of the land subject to acquisition against total area of the land plot.

30. The socioeconomic information of the DPs will be gender disaggregated and gathered through structured survey. Other background information on the affected communities, such as demographics, employment, education, livelihoods profile, etc. will be collected from the local authorities. Based on the results of the impact assessment and consultations with the DPs, the LARP will be developed. The example outline of the LARP is provided in Annex 1.

31. The following procedures need to be implemented to complete the impact assessment at the detailed design stage: (i) establishing the exact boundaries of RoW; (ii) DMS and valuation of all affected assets by the surveyor and valuers; and (iii) census of all DPs, including socioeconomic profile, gender-disaggregated data.

32. The results of DMS will produce (i) number, ownership and type of affected land plots; (ii) type and area of crops affected; (iii) number, ownership type of the structures that will be affected; (iv) type of construction materials used; and (v) other assets such as utility connections, etc.

33. Valuation company, together with ARIS, will conduct socioeconomic survey of the DPs that will include, among others, (i) household level data broken down by age, education, employment, and gender; (ii) family incomes and its sources; (iii) assets inventory including land, crops, and trees; (iv) access to social services such as schools, hospitals, and churches; and (v) vulnerability status of the household. The census will identify the loss of income from businesses and potential displacement of workers employed by the affected business shops. Special attention will be paid to identifying the vulnerable households. The results of the impact assessment will be the base for compensation and livelihoods rehabilitation measures for the DPs.

VI. CONSULTATION, PARTICIPATION, AND DISCLOSURE

A. Consultation, Participation, and Disclosure

34. The program will promote public consultations and meaningful engagement with affected people and other stakeholders that involve information exchange and decision making during the LARP preparation and implementation process. The objectives of the consultations are to (i) identify and help DPs’ concerns and views with regards to the preparation and implementation of the LARP; (ii) address DPs’ concerns and ensure transparency of LARP planning process; and (iii) help avoiding unnecessary and costly delays to the program implementation.

35. As per ADB’ policy requirements, the DPs have to be meaningfully consulted and provided with opportunities to participate in the planning and implementation of LARP. The DPs must also be informed in an appropriate and timely manner on their rights and entitlements, results of the planning process, as well as the key timelines and procedures for registering and resolving grievances under the LARP. The public consultations should be carried out by ARIS throughout the LARP preparation process.

36. The ARIS will conduct at least one consultation meeting with the DPs in each Program village before the finalization and approval of the LARP. During the consultation with Program

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communities, the following information will be presented to the DPs and other stakeholders: the Program scope, description of the permanent and temporary impacts, timelines, entitlements, valuation procedure, implementation arrangements, monitoring and reporting arrangements, and grievance review procedures. The minutes of all consultation meetings, including scanned participants’ signatures and photographs, will be prepared and included in the LARP.

B. Disclosure

37. The information leaflet describing the rights and entitlements of the DPs under the LARP needs to be distributed among the DPs in a language understandable to them. Following its approval, the LARP will be disclosed on ARIS, EA, and ADB websites in English and Russian languages.

C. Participation of Women and Vulnerable Groups

38. In line with ADB policy requirements, the measures will be taken to ensure the women and vulnerable people are able to participate in the consultation meetings and other LARP planning activities.

39. As part of the LARP preparation process, the vulnerable, and severely affected people will be identified through census and socioeconomic survey and ARIS will ensure that they are informed of the consultations’ dates and venues. The meetings with vulnerable groups will be carried out that ensure they are aware of their rights, entitlements, and details on the existing GRM and grievances redress procedures. The vulnerable groups will be also consulted about their preferred options for livelihood stabilization and rehabilitation assistance as appropriate.

VII. GRIEVANCES REDRESS PROCESS

A. Grievance Redress Mechanism (Beneficiary Feedback Mechanism)

40. ARIS uses the beneficiary feedback mechanism (BFM) which is an information system for management of grievances put forward by the Program affected persons or any other person from the Program communities.

41. The main objective of the BFM is obtaining prompt, objective information, evaluating and reviewing grievances (applications, proposals, complaints, requests, positive feedbacks) at all stages of program implementation. In addition, the BFM strengthens communication with program beneficiaries, provides channels for feedback, identifies and address issues, and increases transparency and accountability. The tools and approaches used for dissemination of information about the BFM are as follows: (i) presentation of information by the BFM specialists to local authorities, aiyl okmotu, deputies of the local kenesh; (ii) presentation of information at public hearings, trainings conducted by ARIS staff, the BFM team conducts an entire information campaign in the communities; (iii) banners of BFM are displaced at social facilities (schools, kindergartens, health posts); (iv) banners in district administrative buildings; and (v) BFM section at the official program website.

42. All grievances and appeals received from citizens are delivered to the corporate system for further processing and follow-up.

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B. Channels for Submitting Grievances

1. Hotline: +996(550)70-05-22, (calls are 1. Grievances are recorded in the BMF received around the clock, the logbook under incoming correspondence conversation will be recorded); and are considered if the following 2. WhatsApp: +996(770)70-05-22, (instant information is present: messaging system for mobile devices with • full name; voice and video support); • address of registration and residence or 3. Social networks (Facebook МОС АРИС); telephone number; 4. Web-site address: www.aris.kg. • content of the grievance; and 5. Verbal or written grievance received • other reference information. during the on-site working meetings; 6. Incoming correspondence via courier to If a grievance lacks any of the above data, it ARIS reception; is recorded in the logbook under incoming 7. Incoming correspondence by e-mail: correspondence of the BFM and the results [email protected] of the grievance will be published in the 8. CO ARIS tel.: +996 (312) 301805 media at the local level, on ARIS website, or (reception) made public at the session of the aiyl kanesh. 9. CO ARIS address: 102 Bokonbayeva St., Bishkek, Kyrgyz Republic 2. Grievances are entered into the BFM configuration in the 1C system for analysis and monitoring. 3. Grievances may be submitted anonymously. Confidentiality shall be insured in all cases.

C. Receiving Grievances

43. When receiving a grievance, the following points are determined: (i) type of grievance; (ii) category of the grievance; (iii) persons responsible for review and execution of the grievance; (iv) deadline for grievance resolving; and (v) agreed actions.

44. After the type of action is determined, the BFM specialist registers details regarding the actions in the incoming correspondence journal, and then in the BFM configuration of the 1C system.

45. The applicant will receive a notification by the BFM specialist by phone or through other BFM channels: (i) full name of the executor (Program officer) to whom the grievance was forwarded; and (ii) deadline for execution (minimum 10 days, maximum 30 days from the registration date). (iii) The deadline and actions are determined in accordance with the ARIS instructions for handling the grievance.

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46. Notification. Notification will be registered in the outgoing correspondence logbook. The BFM specialist will assist the applicant at all stages of his grievance and ensure that his grievance is properly handled.

47. In case the affected person is not satisfied with the decision resulting from the consideration of grievance, the person has the right to appeal. Appeal claim is considered by the special ARIS review committee on consideration of appeals. ARIS executive director will form the review committee for consideration of appeals from the Program managers and heads of departments, who will conduct hearings of appeal. The appeals review committee will consist of 15–17 persons, of which, two are BFM members and two are persons independent from the Program implementation units and the Government of the Kyrgyz Republic.

48. After review of the appeal, if the citizen or beneficiary is unsatisfied with the solution, the person has the right to appeal the decision in a judicial procedure. General information on reported grievances (reference number, type of a grievance), their status and evolving problems will be included in regular Program reports submitted.

VIII. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION

No. Responsible Party Activities

1 Ministry of Finance In case of lack of replacement land, the Government of the Kyrgyz Republic will pay compensation for land and assets of DPs as stipulated in the LARP. 2 Municipalities of Naryn, • Inform stakeholders in each aiyl okmotu Kockor, Jumgal, Ak-Tala, • Fulfill the compensation and applicable allowances At-Bashy provisions as per the entitlement matrix • Provide DPs with land plots as part of compensatory replacement if feasible • Grievance redress in the course of LARP implementation 3 ARIS Program Safeguards • Consultations with DPs Specialist • Identification of DPs, examination of documents of entitlement and list of affected assets • Preparation of LARP and DPs allowing for the fact that all expenses for acquisition of land and resettlement will be included in the budgets of the Ministry of Finance • Disclosure of information about LARP and DPs • Conduction of socioeconomic survey of DPs

Monitoring: • Submission of information about LARF/LARP and DPs to ADB • Grievance management 4 DMS Consultant • Measure each asset to be acquired by the Program (with the presence of the DP and local authorities’ representative • Document and classify all measurements for the analysis of impact • Prepare the DMS data for the valuation and calculation of compensation

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No. Responsible Party Activities

5 Valuation Consultant • Check the DMS data and calculate a replacement cost for each measured asset • Calculate the compensation amount for each DP based on cost for individual assets and contribute to the preparation of the resettlement budget. Calculation of compensation based on a replacement cost of the affected assets as per ADB SPS 2009 ADB = Asian Development Bank, DP = displaced person, DMS = detailed measurement survey, LAR = land acquisition and resettlement, LARF = land acquisition and resettlement framework, SPS = Safeguard Policy Statement.

IX. COMPENSATION FOR VARIOUS ASSETS

A. Compensation for Land

49. In the event of permanent land acquisition of titled land, the first premise is provision of the replacement land. In case where no alternative land is available within a reasonable distance such as to minimize disruption to other aspects of socioeconomic life, cash compensation at full replacement cost will be paid.

50. In addition, the DP will be compensated for any improvements made to the land based on current market labor, equipment, and materials costs (for example, irrigation structures). . 51. Where the land lost is only a small proportion of total land owned by the DP, but renders the remaining land as unusable, the compensation provided should be calculated based on the total land affected (i.e., the actual land lost plus the remaining unusable land).

52. Where land is temporarily acquired, standing crop will be compensated at fully matured market rate or government rate according to the rate established by the Ministry of Agriculture, whichever is higher. If the land is rented, compensation for crops will be paid to the renter/land user/sharecropper. Compensation will be also paid for loss of horticultural crops. Aside from the payment for standing crop, the program will ensure that the land is returned to its original form, so it is suitable to resume its former use.

B. Calculation of Crops and Fruit Trees Compensation Rate

53. The current prices for the crops will be determined by taking into account the rate recommended by the Ministry of Agriculture and the highest market price, whichever is higher. Where land is rented, if crop is or has been grown, the compensation calculation will be based on the previous year’s revenue.

54. Where land is rented, the owner will also get compensation for the loss of rent for the entire agricultural season.

55. Where land is owned, aside from the replacement land or cash compensation for land, the owner will also get compensation for loss of crops for the entire agricultural season.

56. Prices for the crop currently or earlier cultivated on the affected land will be used to calculate the compensation amount. In addition, DPs will be encouraged to harvest their produce

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before loss of land. In order to ensure that this is possible, and that appropriate market prices are received for yields, there needs to be sufficient consultations beforehand, so that harvesting can be properly planned.

57. The value of the labor invested in preparing agricultural land will be compensated at the average wage in the community for the same period of time. The rate used for land compensation should be updated to reflect values at the time compensation is paid.

58. Fruit trees will be compensated to the owner by estimating the value of a seedling of a fruit tree considering the number of years needed to grow the tree to full maturity, and the cost of fruit crop produced by the tree within the indicated period.

C. Compensation for Buildings and Structures

59. The preferred option is to provide alternate structures (huts, storage facilities etc.) of same or improved quality where possible.

60. The second option is provision of cash compensation at full replacement cost. Replacement cost will be based on: (i) measurements of structures and detail of materials used; (ii) prices of these items collected at different local markets; (iii) costs for transportation and delivery of these items to acquired/ replacement land or building site; (iv) estimates of construction of new buildings including labor required; and (v) any associated taxes, registration fees. (vi) No deduction for depreciation and salvage materials can be made.

61. Compensation will be made for structures that are (i) abandoned because of relocation or resettlement of an individual/household or (ii) acquired, damaged, destroyed or became unusable for owners as a result of Program activities.

D. Compensation for Community Assets

62. Monetary compensation will not be provided for community assets identified through the socioeconomic survey. In such cases, compensation will be provided in kind and new facilities will be constructed or partially affected facilities will be repaired during the Program implementation.

E. Compensation for Loss of Businesses

63. Compensation will be paid for the lost income and production during the construction period (time lag between losing the business/stopping the business activities and re- establishment). This will be estimated based on the daily or monthly income of the affected parties.

X. IMPLEMENTATION SCHEDULE

64. The activities involving land acquisition or loss, lack of or restriction to access to homes, fields, businesses, etc. will include compensations and other assistance required for relocation and preparation of land to be resided by DPs, providing them, if needed, with proper living conditions including services such as electricity, water, access to health, schools, and other

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services. Taking of land and related assets may take place only after compensation has been paid and where applicable, resettlement sites and moving allowances have been provided to DPs.

65. The measures to ensure compliance with the LARF will be included in the LARPs that will be prepared for each subproject involving land and other assets acquisition. A LARP will include implementation schedule to address resettlement, including all stages of the Program starting from preparation to completion of works. How these activities are linked to the implementation of the overall subproject must also be agreed between the parties (ARIS, aiyl okmotu, contractors, and DPs). Draft and final LARPs will be disclosed in accessible manner at public places. The LARPs will be disclosed at ARIS, EA, and ADB websites.

66. The timing mechanism of these measures would ensure that no individual or affected household would be displaced (economically or physically) due to civil works activity before compensation is paid and resettlement sites with adequate facilities are prepared and provided for the affected DPs/AHs. Construction works cannot be launched until a complete implementation of the LARP is executed.

67. Compensation will be paid to DPs after his or her written agreement.

XI. ARRANGEMENTS FOR MONITORING AND EVALUATION

A. Overview

68. The key objective of the monitoring is to regularly report the progress with the LARP implementation and identify as early as possible the reasons that may prevent the LARP from effective implementation. The monitoring is essential because the LARP implementation often stands on the critical path of the Program where construction works are involved and when land acquisition, payment of compensation, and relocation of people may delay the works. The timely identification of the causes of delays enables ARIS to make necessary adjustments to the LARP implementation and develop corrective measures as appropriate. For category B projects (IR category A projects are not funded by the Program), the ARIS will undertake the internal monitoring to be performed on a semi-annual basis.

B. Internal Monitoring

69. The internal monitoring will be carried out routinely by ARIS either in-house or with the support of the supervision consultant. The main aim of the internal monitoring is to monitor the process of LARP implementation such as the compensation process, grievance mechanism, and effectiveness of LARP implementation procedure. The results will be communicated to ADB through the Quarterly Program Implementation Reports and Semi-Annual Social Monitoring Reports as per ADB requirements. Indicators for the internal monitoring will be those related to the screening for impact procedure, LARP implementation processes, immediate outputs and results which allow for the assessment of the progress and results of LARP implementation, and the adjustment of the work program, if necessary. Specific monitoring targets will be to verify/check: (i) the number of AHs with legal ownership; (ii) the number of AHs with legalizable land and assets; (iii) the number of AHs without legal or legalizable status; (iv) the affected/remaining part of the land; (v) affected buildings, structures, businesses; (vi) loss of income and employment;

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(vii) allowances for severity and vulnerability; (viii) full compensation paid on time; (ix) relocation of movable businesses; (x) the GRM logbook entries; (xi) number, nature and substance of complains; (xii) number of grievances resolved at the program level; (xiii) number of grievances forwarded/resolved at other grievance resolution levels; (xiv) the number, type of consultations with DPs/host communities, and other relevant stakeholders held; and (xv) public consultations activities documented and included in draft LARP.

70. The above information will be collected by the ARIS which is responsible for monitoring the day-to-day resettlement activities of the Program through one or more following instruments: (i) review of census information for all AHs; (ii) consultation and informal interviews with DPs; (iii) sample survey of AHs; (iv) focus group discussions; and (v) community consultation meetings.

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ANNEX 1: SAMPLE LAND ACQUISITION AND RESETTLEMENT PLAN OUTLINE

A. Executive Summary This section provides a concise statement of program scope, key survey findings, entitlements, and recommended actions.

B. Program Description This section provides a general description of the program, discusses program components that result in land acquisition, involuntary resettlement, or both, and identify the program area. It also describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified data and provide a rationale for the final decision.

C. Scope of Land Acquisition and Resettlement This section: • discusses the program’s potential impacts, and includes maps of the areas or zone of impact of program components or activities; • describes the scope of land acquisition (provide maps) and explains why it is necessary for the main investment program; • summarizes the key effects in terms of assets acquired and displaced persons; and • provides details of common property resources that will be acquired.

D. Socioeconomic Information and Profile This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including: • define, identify, and enumerate the people and communities to be affected; • describe the likely impacts of land and asset acquisition on the people and communities affected taking social, cultural, and economic parameters into account; • discuss the program’s impacts on the poor, indigenous and/or ethnic minorities, and other vulnerable groups; and • identify gender and resettlement impacts, and the socioeconomic situation, impacts, needs, and priorities of women.

E. Information Disclosure, Consultation, and Participation This section: • identifies program stakeholders, especially primary stakeholders; • describes the consultation and participation mechanisms to be used during the different stages of the program cycle; • describes the activities undertaken to disseminate program and resettlement information during program design and preparation for engaging stakeholders; • summarizes the results of consultations with affected persons (including host communities), and discusses how concerns raised and recommendations made were addressed in the resettlement plan; • confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and • describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during program implementation.

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F. Grievance Redress Mechanisms This section describes mechanism to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive.

G. Legal Framework This section: • describes national and local laws and regulations that apply to the program and identify gaps between local laws and ADB policy requirements; and discuss how any gaps will be addressed; • describes the legal and policy commitments from the executing agency for all types of displaced persons; • outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided. • Describes the land acquisition process and prepare a schedule for meeting key procedural requirements.

H. Entitlements, Assistance, and Benefits This section: • defines displaced persons’ entitlements and eligibility, and describes all resettlement assistance measures (includes an entitlement matrix); • specifies all assistance to vulnerable groups, including women, and other special groups; and • outlines opportunities for affected persons to derive appropriate development benefits from the program.

I. Relocation of Housing and Settlements This section: • describes options for relocating housing and other structures, including replacement housing, replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified); • describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs; • provides timetables for site preparation and transfer; • describes the legal arrangements to regularize tenure and transfer titles to resettled persons; • outlines measures to assist displaced persons with their transfer and establishment at new sites; • describes plans to provide civic infrastructure; and • explains how integration with host population will be carried out.

J. Livelihoods Restoration and Rehabilitation This section: • identifies livelihood risks and prepare disaggregated tables based on demographic data and livelihood sources; • describes income restoration programs, including multiple options for restoring all types of livelihoods (examples include induced benefit sharing, revenues sharing

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arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets); • outline measures to provide social safety net through social insurance and/or program special funds; • describes special measures to support vulnerable groups; • explains gender considerations; and • describes training programs.

K. Resettlement Budget and Financing Plan This section: • provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation; • describes the flow of funds (the annual resettlement budget should show the budget scheduled expenditure for key items; • includes a justification for all assumptions made in calculating compensation rates and other cost estimates (taking into account both physical and cost contingencies), plus replacement costs; and • includes information about the source of funding for the resettlement plan budget.

L. Institutional Arrangements This section: • describes institutional arrangement responsibilities and mechanisms for carrying out the measures of the resettlement plan; • includes institutional capacity building program, including technical assistance, if required; • describes role of nongovernment organizations, if involved, and organizations of affected persons in resettlement planning and management; and • describes how women’s groups will be involved in resettlement planning and management.

M. Implementation Schedule This section includes a detailed, time bound implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the program schedule of civil works construction and provide land acquisition process and timeline.

N. Monitoring and Reporting This section describes the mechanisms and benchmarks appropriate to the program for monitoring and evaluating the implementation of the resettlement plan, it specifies arrangements for participation of affected persons in the monitoring process.

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ANNEX 2: CHECKLIST FOR THE RAPID INVOLUNTARY RESETTLEMENT ASSESSMENT AND INVOLUNTARY RESETTLEMENT CATEGORIZATION

A. Instructions (i) The project team completes and submits the form to the Safeguards Division (SDSS) for endorsement by SDSS Director, and for approval by the Chief Compliance Officer (CCO). (ii) The classification of a project is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by SDSS Director and by the CCO. The old form is attached for reference. (iii) In addition, the project team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A projects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or environmental impacts.

B. Project Data

Country/Project No./Project Title : Department/ Division : Processing Stage : Modality : [ ] Project Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ ] Other financing modalities:

C. Involuntary Resettlement Category

[ ] New [ ] Recategorization ― Previous Category [ ]

Category A Category B Category C Category FI

D. Comments ARIS Project Team Comments: SDSS Comments:

E. Approval Proposed by: Reviewed by:

Project Team Leader Social Safeguard Specialist, SDCC/SDSS

Date: Date:

Endorsed by:

Social Development Specialist Director, SDSS

Date: Date:

Endorsed by: Approved by: Highly Complex and Sensitive Director Chief Compliance Officer Project Date: Date:

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Not Yes No Remarks Involuntary Acquisition of Land known

1. Will there be any land acquisition?

2. Is the site for land acquisition known? 3. Is the ownership status and current usage of land to be acquired, known? 4. Will easement be utilized within an existing Right of Way (ROW)?

5. Will there be loss of homes and residential land due to land acquisition? 6. Will there be loss of agricultural and other productive assets due to land acquisition?

7. Will there be losses of crops, trees, and fixed assets due to land acquisition?

8. Will there be loss of businesses or enterprises due to land acquisition?

9. Will there be loss of income sources and means of livelihoods due to land acquisition? 10. Will people lose access to natural resources, communal facilities and services?

11. If land use is changed, will it have an adverse impact on social and economic activities?

12. Will access to land and resources owned communally or by the state be restricted? Information on Displaced Persons: 13. Any estimates of the likely number of persons that will be displaced by the Program? [] No [] Yes, If yes, approximately how many? 14. Are any of them poor, female-heads of households, or vulnerable to poverty risks? [] No [] Yes 15. Are any displaced persons from indigenous or ethnic minority groups? [] No [] yes If yes, which group and the population size.

16. Any other adverse effects on private and community land and assets? If yes, please list and describe.

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APPENDIX 13: SUGGESTED LOAN COVENANT

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SUGGESTED LOAN COVENANT

The Borrower shall ensure, or cause the Program Implementing Agency (Community Development and Investment Agency, or ARIS) to ensure that before any activities are approved for financing under the Program, the following conditions are met relating to limiting asbestos use under the prohibited investment activities provided in Appendix 5 of the Asian Development Bank Safeguard Policy Statement 2009 (ADB SPS 2009): (a) an assessment is conducted on the existing structures that need to be demolished or removed to evaluate the risk of asbestos presence; and (b) a screening of procurement procedures be conducted to ensure that asbestos- containing materials are not used or financed under the Program (except for the purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20% as provided under the prohibited investment activities provided in Appendix 5 of the ADB SPS 2009).