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RP789 V6 Public Disclosure Authorized RESETTLEMENT ACTION PLAN Public Disclosure Authorized for the Corridor Highway project Component 1 - Corridor X, The M 1 Road from Nis to border with FYR of Macedonia (E 75) Section: LOT 6 Tunnel Manajle - Vladicin Han Public Disclosure Authorized Public Disclosure Authorized April, 2014 1 Executive Summary ............................................................................................................. 4 Chapter I – Introduction ........................................................................................................ 7 Chapter II – Legal Framework and Resettlement Policy Provisions .................................. 10 Chapter III – Expropriation and Compensation Payment ................................................... 13 Chapter IV – Social Impact Assessment and Baseline Socio-economic Characteristics ... 16 Demographic characteristics ............................................................................................. 18 Employment status and income ....................................................................................... 19 Households with expropriation of structures ................................................................. 23 Summary of Social Impact Assessment and Baseline Socio-economic Characteristics 28 Chapter V: Implementation Arrangements ....................................................................... 30 Annex I Tables from households survey ............................................................................ 40 Annex II Entitlement Matrix ............................................................................................... 43 Annex III - Inventory of Project Affected Persons Annex IV Comparative review of compensation rates and selling prices of land in different municipalities and regions in Serbia Annex V - Brochure distributed to PAPs 2 ABBREVIATIONS CLEIA CORRIDOR LEVEL ENVIRONMENTAL IMPACT ASSESMENT CSW CENTER FOR SOCIAL WORK. EIA ENVIRONMENTAL IMPACT ASSESMENT GC GRIEVANCE COMISSION KS D.O.O KORIDORI SRBIJE DRUSTVO S OGRANICENOM ODGOVORNOSĆU KS LCC KORIDORI SRBIJE LIMITED LIABILITY COMPANY MOE MINISTRY OF ENVIRONMENTAL PROTECTION PAP PROJECT AFFECTED PERSON PERS PUBLIC ENTERPRISE ROADS OF SERBIA RPF RESETTLEMENT POLICY FRAMEWORK RSD REPUBLIC SERBIA DINARS SIA SOCIAL IMPACT ASSESSMENT 3 Executive Summary I. This RAP relates to LOT 6 Tunnel Manajle - Vladicin Han section of E-75. The purpose of this RAP is to set out an action plan for expropriation and payment of compensation and assist the PAPs in their efforts to resettle and rehabilitate and improve their standards of living or at least be restored to the pre-displacement levels. This RAP is based on the provisions imposed in the Resettlement Policy Framework (RPF) adopted for this project, which is in line with the Involuntary Resettlement Operational policy of the World Bank. Social impact assessment (SIA) for the Section LOT 6 Tunnel Manajle - Vladicin Han was carried out based on the Resettlement Policy Framework. The analysis was accomplished through households surveys based on results as well as other information gathered from municipality and other relevant sources. II. Total number of proposal for expropriation on LOT 6 is 318. The number of owners is different, as more than one person might be co-owner of the land or structure. Additionally, some of the owners used to give authorization to the relatives (heir or someone with whom he/she shares property) to sign contract on expropriation. Regarding the total number of structures, the exact number will be available on the end of compensation procedure, after the structures on each parcel have been assessed by the expert. Municipality cadaster does not have full evidence of all building structures on the parcel, because a great part of buildings in Serbia were built without a building permit and are not legalized. Due to this situation, the final number of all structures will be known after the expert gives assessment of the value of the building structures. III. The length of this Section is 6 km and is administratively covered by the municipality of Vladicin Han. The total expropriated area amounts to 49,09 hectares. The average space of the expropriated parcels on LOT 6 is around 1.500 m2. Up to the end of March of 2014.259 PAPs (81,4%) have received compensation and 32 PAPs (10,1%) are expected to receive compensation until end May. 27 PAPs have entered court procedure not accepting the offer compensation due to the amount. IV. The total number of surveyed households is 52, i.e.16,4% of the total number of proposals for expropriation. The basic socio-economic and demographic markers of the surveyed owners are as follows. Almost half of the surveyed householders are more than 60 years old. The rate of the woman householders is around 22%. The percentage of single member households is very low for the rural areas (8.1%) 4 as well as the old age households i.e. without members younger than 65 (8.1% total; one member 5.4% and two members 2.7%). The average income per capita is around 8.600 RSD. The most prominent source of income is pension, and more than one half of surveyed householders have pension (51.4%), as well as 37% of householders spouse or some other member of household. Around one quarter of surveyed are employed, and the same percent are unemployed or performed occasional work with contract or in grey economy. It is estimated that at least 30% of adult population work in grey economy, although that number can be even higher if we take into account those who beside permanent job or pension have additional work, often unregistered. Regarding poverty line, which is in Serbia officially set on 8800 RSD for the first member of household and 5000 RSD for every other member, one-third of surveyed households (33.3%) are below poverty line. All surveyed households live in housing structure that they own. The average surface area of housing premise is 100 m2. V. From a total of 15 households with expropriated of structures that responded and participated in the survey, 12 households were owners of building structures for housing, while buildings in other three households are used for agricultural work and on seasonal occasions. All buildings have an area over 100m2 except one which area is 62m2. Most of the buildings were built or renovated in the last 30 years and all but one are equipped with the basic installation. They are all made of solid building materials. According to the methodology for building structures valuating, compensation rate for the building structures is much higher than their actual market value. Therefore, besides buying new residential building, owners will be in position to spend the rest of the compensation for some other purposes. Most of the surveyed households said that in addition to purchasing a new residential buildings, will use the rest of the money for education, start-up businesses etc. VI. Public consultation with PAPs is organized as continuous process containing two main forms. The first form is public meeting that have been organized in several occasions, during which citizens whose property was envisaged to be affected due to the construction of Highway commented on the process of expropriation and pointed out existing and potential issues. The second form of cooperation with PAPs has been everyday communication during expropriation process, either by phone or visits on the request of PAP or in the municipal office by making the appointment. Koridori Srbije has in each municipality the representative from local office who is responsible for the permanent cooperation with expropriated households. The task of this representative is to register all the complaints of these households, to facilitate their cooperation with municipal authorities and to 5 inform the KS team about all problems during the expropriation process. Koridori Srbije has delegated representatives from every municipality to provide daily assistance and guidance as well as cooperation with households under the impact of expropriation. The main task was to collect grievances and remarks from the PAPs, to facilitate in a most efficient manner the relationship between PAPs and Municipality and further with the team from Koridori Srbije. VII. In the Business Plan of PERS for the year 2013. and 2014. , the designated and allocated funds exclusively for expropriation/land acquisition on the E 75 Vladicin Han – Donji Neradovac is in the amount of 600.000.000,oo RSD and covers compensation for all entitlements. VIII. An external monitoring and Concurrent evaluation is facilitated through the Contract for Consultants Services between Koridori Srbije and JV: Ove ARUP & Partners International Limited/UK (Leader); ARUP doo. (JV member); and Institute Kirilo Savic a.d/Serbia (JV members). IX. During the implementation of the RAP, permanent communication on daily base between PAPs and the local representative of Koridori Srbije will be maintained. 6 Chapter I – Introduction Background 1. The Government of the Republic of Serbia is currently developing the core road infrastructure on Corridor X with the assistance of International financial institutions. As part of this core road network improvement, the World Bank is assisting the construction of 35 Km of motorways consisting of three (3) sections along E75 and E80 motorways. These three sections include Grabovnica - Grdelica (5.6 Km) and Vladicin Han-Donji Neradovac (26.3 Km) on E75 Motorway to FYR of Macedonia and Dimitrovgrad