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

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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

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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 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

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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 , 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 was held. According to the results of financial proposals, contract for constructing was awarded Kukdong Engineering & Construction Co. LTD (Korea). 14. On November 17, 2011 contract between Republican Road Fund and Kukdong Engineering & Construction Co. LTD (Korea) was signed and was submitted to MFERIT (Ministry of Foreign Economic Relations, Investments and Trade) for consideration. MFERIT registered the contract on March 27, 2012. 15. The Contract with Kukdong Engineering & Construction Co. LTD (Korea) was terminated. Re-tender for civil works was announced on January 29, 2013. 16. New contract in the amount of USD 175.22 million for the construction of 85 km of A-380 road was signed with POSCO Engineering Co., Ltd on 24 December 2013. The contract was submitted to MFERIT for registration on January 10, 2014. Comments were received from MFERIT on February 14, 2014 and registered by MFERIT on May 07, 2014. Advance payment amounting 26.2 mln. USD was paid to the company and the Notice to proceed was given to the Contractor on May 23, 2014. Currently, the contractor is in the process of mobilizing resources.

1.4 Land Acquisition and Resettlement Plan (LARP)

17. The widening of the existing road corridor to accommodate a grade / barrier separated dual carriageway was resulted in a small number of impacts on existing private assets. The addition of wider sections to accommodate slow down lanes for u-turns and entry/exit of joining roads has been designed at existing road junctions –where often there are cafes and shops. Nonetheless, impacts have been minimized. 18. As the result Land acquisition and resettlement plan upon the Project was prepared on October 2010. 19. According to the LARP data there are 4 business structures affected by the Project implementation.1 Total buildings replacement cost (compensation for structures) for all AP’s was estimated at the amount of UZS 201 999 440 (US$ 90 623.3). No Livelihood and Relocation allowance need to be paid to the AP. 20. Total LARP cost is UZS 201 999 440 or US$90 623.3. 21. The LARP 2011 indicated that update LARP should be prepared if detailed design will change and generate different set of impacts. But update LARP was not required, because the detail design has been finalized without generating any additional impact or change the impacts explained in the LARP 2010.

1 After finalizing design project affected 2 households, the summary of LARP including the compensations was provided to them on February 10, 2011. Regarding others they voluntarily waived their right for compensation. For confirmation see Annex I; Page 6 from 29

1.5 Land Acquisition and Resettlement Plan (LARP) Implementation

22. LARP implementation was prepared on February 2014. Total costs for implementing LARP was around UZS 201 999 440 or equal to around US$90 623.3. 23. The RRF closely worked with Regional Khokimiat and Regional Land Cadaster Committee to fully implementation the LARP especially to adequate and equal pay compensation to AHs. 24. Compensation for loss structures is adequate and paid in time. LARP activities for this project can be considered to be successfully completed.

1.6 Scope of Work of verification of LARP Implementation

25. The Scope of work included the following tasks:

i. Monitoring Land Acquisition and Resettlement Plan (LARP) implementation progress; ii. Evaluate LARP progress and achievement of LARP objectives; iii. Formulate necessary measure to resolve problems and improve resettlement implementation.

1.7 Methods Adopted for Initial Verification

26. The approaches and methods adopted for the task of initial verification include:

i. Review of final LARP (October 2010) and LAPR Implementation (February 2014), ii. Tables of progress report submitted by the Resettlement Specialist of the Design, iii. Review of official documents related to acquisition and compensation from the project offices provided by the project officials (e.g. minutes of compensation fixation committee, official documents signed by the titleholders after receiving compensation etc).

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II. PROCESSING AND IMPLEMENTATION OF LARP

2.1 Land Acquisition and Resettlement Plan (LARP)

27. Land acquisition and resettlement plan upon the Project was prepared on October 2010. The LARP 2011 indicated that update LARP should be prepared if detailed design will change and generate different set of impacts. But update LARP was not required, because the detail design has been finalized without generating any additional impact or change the impacts explained in the LARP 2010. 28. Total LARP cost is UZS 201 999 440 or equal to around US$90 623.3. 29. LARP preparation included:

i. Road alignment survey; ii. Collection of cadastral maps coming under the alignment on the alignment map; iii. Hundred percent census of census of the affected land and structures; iv. Consultation with the owners affected assets, technical verification of the extent of effect and measurement and calculation; v. Socio-economic profile of the affected families.

2.2 LARP Implementation

30. LARP implementation was prepared on February 2014. Total costs for implementing LARP was around UZS 201 999 440 or equal to around US$90 623.3. 31. LARP implementation preparation included all activities on the following:

i. Monitoring the progress on LARP activity; Status of implementation of LARP schedule; ii. Progress on providing compensations. Procedure of providing compensation to the affected persons for lost structures; iii. Efficiency of Grievance Redress Mechanism; iv. Efficiency of Consultation with the owners affected assets and disclosure of information.

2.3 Acquisition and Resettlement Impact

32. Based on the LARP the total acquisition impact in the project area includes:

i. A total of 0.53 of a hectare of land is required for Project 2; ii. There are 4 business structures affected by the Project implementation: After finalizing design project affected 2 households, the summary of LARP including the compensations was provided to them on February 10, 2011. Regarding others they will receive their compensation by land, i.e. they will get land to land; iii. AP’s lose, on average, 46.5% of their land; iv. Land is generally arid or desert.

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Table 1 Summary of Acquisition and Resettlement Impacts base on Final LARP

Compensation Status of Name and ID Land, ha Number Vulnerable # Km Affected Property for Property compensation Note number of worker People Total Acquired % ( UZS) The payment was carried out in the following way: 1) UZS 76 559 000 is Operated Café with R23731 paid on 20.02.2014-- total land lost 200 and 1 Aslonov 372.6 0.20 0.16 80% 2 4 None 187 000 000 Paid in full m , and structure 2) UZS 93 500 000 -is Sulaymon 2 160 m paid on 27.12.2013; 3) ) UZS 16 941 000 is amount of construction materials remained in owner’s disposal R23771 A tottering building voluntarily waived their right for 2 Mirzaev 376.3 0.26 0.06 23% with total land lost - None 0 2 compensation* Fayoz 62m Non-operating R23811 voluntarily waived their right for 3 381.0 0.18 0.01 6% business with total - None 0 Ashurov Olim 2 compensation* land lost 100 m The payment was carried out in the following way: Abandoned 1) UZS7 500 000 is business structure R24317 paid on 21.06.2012 -- total land taken 300 and 4 Murodov 432.3 0.50 0.30 60% 2 - None 14 999 440 Paid in full m out of the 500 2) UZS 7 215 000 -is Tulkin 2 2 m and 21 m paid on 26.07.2012; structure lost 3) ) UZS 284 440 is amount of construction materials remained in owner’s disposal

TOTAL 85 km 1.14 0.53 46,5% - - - 201 999 440

USD US$90 623.3 *No compensation will be paid to these owners as they voluntarily waived their right for compensation for their assets. For confirmation see Annex I.

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III. PROGRESS ON COMPENSATION DISTRIBUTION

3.1 Calculation of compensation

33. The compensation described in the LARP includes calculation of compensation as follow:

3.1.1 Entitlements to Compensation

34. The following groups of affected persons (APs) are included in the LARF and also addressed in Land Acquisition and Resettlement Plan (LARP) for Project 2:

i. All APs losing land either with legal title, lease holding land rights or without legal status; ii. Owners of buildings, crops, plants, or other objects attached to the land; and, iii. APs permanently losing business, income, and salaries.

3.1.2 Compensation for Structures

35. All assets (registered or not) were valued by independent evaluation firms through calculating the real replacement cost based on cost of materials, type of construction, labor, transport and other construction costs. No deductions were applied for depreciation or transaction costs. The cost of reconnection to lost water, electricity, gas and telephone connections were included in the compensation (the new land sites were assumed to have similar services available). Salvaged materials were allowed to be taken away by the APs prior to demolition at no charge. 36. The compensation for all buildings based on assessment of local cadastral services is in table below. Total buildings replacement cost for all AP’s is UZS 201 999 440 (US$90 623.3). 37. Description of Affected Assets based on Final LARP Implementation is presented in Table 1 (See section II).

3.1.3 Livelihood and Relocation Allowances.

38. No Livelihood and Relocation allowance need to be paid to the AP.

3.2 Status of compensation

3.2.1 Compensation for Land

39. The area of the land required and the cost of the compensation for registration to the land were decided by the Committee under the Hokim of the region. The quality and the facilities of new land which provided by the Hokimiyat were the same quality in a nearby location and with comparable associated services/facilities, or compensation to provide such services.

3.2.2 Progress on compensation

40. Summary information on Compensations is presented in Table 1 (See section II). 41. The affected persons, owner of the Café, Aslonov Sulaymon (ID R23731), located on km 372.6 submitted documents of his business to RRF for compensation. In January 2013 RRF transferred compensation to Sulaymon Aslonov’s account. (see Annex I). He provided confirmation letter to getting compensation sum. 42. Owner of the ex-gas station, Mr. Murodov Tulkin (R24317), located on the km 432.3, have submitted all the documents for compensation and got compensation as well. He provided confirmation letter to getting compensation. 43. The owner of the Non-operating truck repair, Mirzayev Fayoz (ID R23771), located on km 376.3 as well as the owner of non-operating café, Ashurov Olim (ID R23811), located on km 381 voluntarily waived their right for compensation for their assets No compensation will be paid to these owners. For confirmation see Annex I.

3.3 Compensation Budget Status

44. Compensation for loss structures is adequate and paid in time taking into account the following.

i. Two owners of business structures (ID 23731; R24317) have already been paid the compensation; ii. Two owners of business structures (ID R23771; ID R23811) will not receive any compensation. They voluntarily waived their right for compensation for their assets; iii. Total LARP cost is US$ 90 623.3.

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Table 2 Breakdown of Compensation Budget Status Amount Item Potential Changes UZS US$ Land Preparation Costs* 0,000 0,000 Compensation Business Loss 0,000 0,000

Worker Compensation 0,000 0,000 The final price was determined based on the survey of the Loss of Structures 201 999 440 90 623.3 consulting company OOO “Baholash kolsalting Servis” and Order of local Hokimiyat Support for Vulnerable Households Livelihood Allowance 0,000 0,000 Relocation Allowance 0,000 0,000

Sub- Total 0,000 0,000

TOTAL 201 999 440 90 623.3

3.4 Site Clearance

45. On average, the affected building/structures in project area are partially affected. Affected structures in the project area are demolished / removed.

3.5 Summary of Major Activities Completed

46. Table below shows the summary of competed LARP activities in project implementation:

Table 3 Summary of Major LARP Activities Completed # Activities Status 1 Identification of Assets to be Affected by the project Completed 2 Formation of Compensation Fixation Commission Completed 3 Notification to Affected Families Completed 4 Valuation of affected assets and other loss for compensation Completed 5 Compensation for structures / land Completed 6 Ownership transfer Completed 7 Site clearance Completed

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Conclusion

47. The verification of LARP implementation Report showed the following outputs: i. The RRF closely worked with Regional Khokimiat and Regional Land Cadaster Committee to fully implementation the LARP especially to adequate and equal pay compensation to Ahs; ii. Compensation for loss structures is adequate and paid in time; iii. LARP activities for this project can be considered to be successfully completed.

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Annex 1 Confirmation document of compensation paid to Project Affected Persons

Payment lists to Murodov, Murodov’s confirmation letter of getting compensation

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ACT

« 8 » July 2012 District

Hereby members of appointed working commission, based on khokim resolution # 729 from May 29, 2012 year, in Buhoro region,, constitutes an act thaton the highway A- 380 “Guzar- Nukus- Kungrat- Beyney”,on the reconstruction object in 355-440 kilometer spacing, in Buhoro region, Romitan district, on the territory of “Qizilravot” RCA ,Murodov Tulkin Ortikovich’s property Automobile fuel filling station (AFFS) branch felled under destruction, further was assigned to be paid caused damage compensation cost in 15 000 000 sum. For today, the estimated total value of the Automobile fuel filling station branch (AFFS) 15 000 000 sum (fifteen mln. sum) was deducted.

Based on khokim resolution # 729 from May 29, 2012 year, in, Buhoro region, Romitan district from the assigned 15 000 000 sum compensation, the Republican Road Fund had made a 50% prepayment of total value, that accounts to 7 500 000 sum.

During destructing process, the following usable building materials were released, which would be left at Murodov Tulkin Ortikovich’s discretion.

Name of material Unit of measure Quantity Cost Total Value Slab Piece 2 69000 138 000 Block Piece 586 40 23 440 Steel door Piece 1 80000 80 000 Window Piece 1 43000 43 000 Total Piece 284 440

Taking into account the obsoleteness of all usable building materials, they were estimated at a market value 184 440 sum.

From the above pointed sum of compensation, from the total value of 15 000 000 sum the Republican Road Fund had made a 50% prepayment, that accounts to 7500 000 sum, and released after destruction process building materials costing 284 440 sum, the rest part of compensation 7 215 sum should be paid by Republican Road Fund.

This act was signed by following members of appointed commission.

Khakimov F. Kh. Kurbonov N.

Umurov S. G. Farmonov D.

Khodiev E. J. Rozikov I. K.

Maksudov S.S Khamroev U.

Khamroev I.B. Jamolov A.

Murodov T. Muhsinov T.

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To the Khokim of Romiton District From Tulqin Murodov

Confirmation letter

By the present letter I would like to confirm that I have got compensation amount at UZS 15 000 0002 (fifteen million Uzbek sum) for the belonging to me building of Oil Station which located in Romiton district “Qizil Ravot” Farmer Resident’s Unit and have no objection for demolish of the building and re-construction of A-380 Bukhara-Guzor- Nukus-auto- road. I write this letter personally and in fully conscious.

September 4, 2012

Tulqin Murodov

2 Consultant’s remark: the total amount of compensation is UZS 14 999 440. The compensation amount indicated in confirmation letter is 15 000 000 (rounded amount of compensation). The difference is UZS 560, i.e. US$ 0.2. Page 17 from 29

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Payments of Aslanov Sulaymon

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ACT

“ 23 ” December 2013 district

Hereby members of appointed working commission, based on khokim resolution # 752 from December07, 2012 year, in Buhoro region, Jondor district, constitutes an act that on the highway A- 380 “Guzar- Buhoro- Nukus- Beyney”, on the reconstruction object in 355-440 kilometer spacing, Aslonov Sulaymon Farmonovich property felled under destruction in Buhoro region, Jondor district, on the territory of Lolo QFY canteen building was assigned to be paid caused damage compensation cost in 187 000 000 sum based on the calculation of “ BAHOLASH KONSALTING SERVIS” Ltd., 05.12.2013 year of establishment, reg.numb.686/12- 13. For today, the estimated total value of the canteen building 187 000 000 sum (one hundred eighty-seven million) was deducted.

Based on khokim resolution # 729 from 07December 2013 year, in Jondor district, Buhoro region, from the assigned187 000 000 sum compensation, the Republican Road Fund had made a 50% prepayment of total value, that accounts to 93 500 000 sum.

During destructing process of the building, the following usable building materials were released, and estimated by “BAHOLASH KONSALTING SERVIS” Ltd. on 20.12.2013 year, reg. numb. 712/12-13, at 16 941 000 sum.

# Name of material Unit of Quantity Cost per Unit Total Value measure 1 Slate Piece 313 15000 4 695 000 2 Wooden beams Piece 69 34000 2 346 000 3 Burnt brick Piece 49000 150 7 350 000 4 Foundation FC Piece 75 34000 2 550 000 block Total 16 941 000

The materials were left to Aslonov Sulaymon Farmonovich’s discretion.

From the above pointed sum of compensation, the total value of 187 000 000 sum the Republican Road Fund had made a 50% prepayment, that accounts to 93 500 000 sum, and the cost of building materials, released after destruction process is16 941 000 sum, the rest part of compensation 76 559 000soum should paid by Republican Road Fund.

This act was signed by following members of appointed commission.

Signatories:

First Deputy of Khakim in Jondor District I. Ergashev HeadofJondor DistrictDepartment of “Earth resources and State Cadaster” E. Mukumov Chief Architect of the district G. Rabiev District Department Head of “Planning of land, registration and real estate cadaster service” T. Usmonov Page 22 from 29

Director of UC JondorgazBrach ofGarbGazSupply A.Avezov Head of regional electricity networks B.Khaetov Lolo QFY B. Jumaev Owner of the canteen building T. Murodov

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Confirmation letter

I am Aslonov Sulaymon, owner of affected structures, which were affected based on #1331 dated 3th May 2010 Decree of the President of the Republic of Uzbekistan. I have got whole (100%) sum of compensation provided by Republican Road Fund. Nowadays rest of my café is operating. Four employers in my café continue their work. I have no objection to Republican Road Fund.

Aslonov Sulaymon 24.02.2014

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Waive letter from Mirzaev Faez

To K.N. Rakhimov The Khokim of Romiton District From Fayoz Mirzaev Puu-ota Farmers Resident Unit Resident of Dukki

Declaration

By the present letter I want to inform you that the under reconstruction of road A-380 Guzor- Bukhara-Nukus-Beyneu, which is going through Jondor district. Part of the café buildings which belong to me is located on376 km of the road and going to be destroyed. I will not request any compensation for destroyed part of buildings. I have read and listen this letter. FayozMirzaev 1 August 2012

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Waive letter from Ashurov Olim

To the Head of the Republican Road Fund Mr. J. M. Shukurov From resident of Qoraqolpoq village of Mirshod Olimovich Ashurov, Waive letter

In 2004 my father had built café near to A-380 road, on 381 km. Nowadays my father is in business travel in Russia. By the present letter I would like to explain that I had demolished the building along the road and prepared space for A-380 Bukhara-Guzor- Nukus-auto-road construction. I have no claim to any kind of compensation provided by the State and have no objection to road construction. All this actions I do by the consent of my father Ashurov Olim. I write this letter personally and in fully conscious. М. Olim 08-02-14

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