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Land Acquisition and Resettlement Plan Implementation Verification Report August 2014 UZB: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program – Project 2 Prepared by the Engineer «SAMBO Engineering Co., Ltd». This land acquisition and resettlement plan implementation verification report 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. 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. CONTENTS LIST OF TABLES ....................................................................................................................... 3 ABBREVIATIONS ....................................................................................................................... 4 I. INTRODUCTION ................................................................................................................. 5 1.1 Background .................................................................................................................. 5 1.2 Project description ........................................................................................................ 5 1.3 Status of Project Implementation .................................................................................. 6 1.4 Land Acquisition and Resettlement Plan (LARP) .......................................................... 6 1.5 Land Acquisition and Resettlement Plan (LARP) Implementation ................................. 7 1.6 Scope of Work of verification of LARP Implementation ................................................. 7 1.7 Methods Adopted for Initial Verification ......................................................................... 7 II. PROCESSING AND IMPLEMENTATION OF LARP ............................................................ 8 2.1 Land Acquisition and Resettlement Plan (LARP) .......................................................... 8 2.2 LARP Implementation ................................................................................................... 8 2.3 Acquisition and Resettlement Impact ............................................................................ 8 III. PROGRESS ON COMPENSATION DISTRIBUTION ..................................................... 10 3.1 Calculation of compensation ....................................................................................... 10 3.1.1 Entitlements to Compensation ................................................................................. 10 3.1.2 Compensation for Structures ................................................................................... 10 3.1.3 Livelihood and Relocation Allowances. ................................................................... 10 3.2 Status of compensation .............................................................................................. 10 3.2.1 Compensation for Land ........................................................................................... 10 3.2.2 Progress on compensation ...................................................................................... 10 3.3 Compensation Budget Status ..................................................................................... 11 3.4 Site Clearance ............................................................................................................ 12 3.5 Summary of Major Activities Completed ..................................................................... 12 Conclusion ................................................................................................................................ 13 Annex 1 Confirmation document of compensation paid to Project Affected Persons ................. 14 Page 2 from 29 LIST OF TABLES Table 1 Summary of Acquisition and Resettlement Impacts base on Final LARP ....................... 9 Table 2 Breakdown of Compensation Budget Status ................................................................ 12 Table 3 Summary of Major LARP Activities Completed ............................................................. 12 Page 3 from 29 ABBREVIATIONS AB Affected Business AC Asphaltic Concrete ADB Asian Development Bank AH Affected Household AP Affected Person CAREC Central Asia Regional Economic Cooperation CSS Country Safeguard System D/PLARC District/Provincial Land Acquisition and Resettlement Commission DI Design Institute DP Displaced Person EA Executing Agency EMA External Monitoring Agency GFP Grievance Focal Point GRC Grievance Redress Committee Ha Hectares HH Households IA Implementing Agency Km Kilometre LAR Land Acquisition and Resettlement MF F Multi-Tranche Financing Facility PMU Project Management Unit RP Resettlement Plan RRF / RF Republican Road Fund under Ministry of Finance of Uzbekistan SPS Safeguard Policy Statement TA Technical Assistance CURRENCY EQUIVALENTS (as of February 25, 2014, day of preparation of LARP Implementation report) Currency Unit – sum (SUM) SUM1.00 = $0.0004 $1.00 = SUM 2,229 In this report, i. "$" refers to United States dollars (USD) ii. Sum refers to Uzbekistan Sum Page 4 from 29 I. INTRODUCTION 1.1 Background 1. This verification report of LARP implementation has been developed by the Engineer «SAMBO Engineering Co., Ltd» for the Asian Development Bank (ADB) for Project 2 of the Uzbekistan CAREC 2 Road Project. It follows the format, and includes the required information, as specified in the ADB Implementation verification guidelines. 2. ADB guidelines require monitoring and verification on physical and financial targets and delivery of entitlement to the affected people under the resettlement plan of the project. Such monitoring and verification activities need to be carried out by the Executing Agencies (EAs). Generally, NGOs, Independent Consultants etc. can be hired as third party for such verification. 3. This verification report has been prepared in order to conduct initial verification of the compensation and resettlement activities carried out under the Project 2 of the Uzbekistan CAREC 2 Road Project, section Km 355 – Km 440 (85 km). 1.2 Project description 4. The Uzbekistan CAREC 2 project will comprise approximately 222 km reconstructed road section of the A380 highway, and improved planning, project management, logistics, road asset management, and community facilities. The relevant A380 sections are located in Bukhara, Khorezm Provinces and the Republic of Karakalpakstan. 5. The project is financed through ADB’s Multi-tranche Financing Facility (MFF) with 3 tranches being applied for the Investment Program. Project 2 comprises approximately 85 km reconstructed section of the A380 highway (between Km 355 and Km 440) and procured road construction and maintenance equipment. 6. In April 2011 the Board of Directors of ADB approved the second tranche of the multi tranche financing facility for CAREC Corridor 2 “Road Investment Program” in the amount of USD 240,0 million. 7. The total amount of the project cost is 290.2 million USD, including USD 240.0 million (tranche II) through Ordinary Capital Resources (OCR) of the Asian Development Bank, and the contribution of the Republic of Uzbekistan in the amount of 50.2 million USD. 8. Loan Agreement № 2746-UZB (CAREC Corridor 2 Road Investment Program) signed on April 12, 2011 and came into force from the same date. The loan closing date is December 31, 2015. 9. Project 2 comprises the reconstruction of the current 2 lane asphaltic concrete (AC) road section between Km 355 and Km 440 (85 km) Highway A-380 "Guzar-Bukhara-Nukus- Beyneu" into a new 4 lanes, grade separated, dual carriageway, and concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 2 within the overall CAREC 2 Project. 10. Instructions from the Road Design Institute (DI) indicate that the road pavement and shoulder will be 14 m wide for each carriageway. The majority of the dual carriageway will also comprise an easement of 7m along each side of the road. Specific section drawings provided by the DI (such as in turning areas and curves) allow for a 50m easement. 11. According to the LARP prepared by IKS in September 2010, the Project 2 is categorized as a “B” project. The project involves activities that acquired land that affected 4 households. 12. The proposed highway generally follows the existing A380 alignment, which is serviced by a small number of cafes, shops, garages, auto and tire repair facilities and provincial road control posts. The newly proposed carriageway is sometimes aligned to north, and sometimes south of the existing, based on a number of overall design criteria. Page 5 from 29 1.3 Status of Project Implementation 13. After signing the loan agreement, international tender auctions on determining the construction company were started. On June 1, 2011, an advertisement posted through mass media on carrying out international retender. Technical bid opening of the construction companies on reconstruction of the highway A-380 Guzar-Bukhara-Nukus- Beyneu on the site 355-440 km was held on July 12, 2011. Evaluation of technical bids finished and on September 8, 2011 approval received from ADB. On September 21, 2011 opening financial bids of the companies