ACS – Acquisition and Compensation Scheme CSC – Construction Supervision Consultant AH – Affected Household AP – Affected Person CBO – Community Based Organization DGPS Differential Global Positioning System DMS – Detailed Measurement Survey RDRD – Road Development and Resettlement Division GoG – Government of Georgia GRCE – Grievance Redress Committee GRCN - Grievance Redress Commission IA – Implementing Agency IFI - International Financial Institution IP – Indigenous Peoples EMA – External Monitoring Agency km – Kilometre LAR – Land Acquisition and Resettlement LARC – Land Acquisition and Resettlement Commission LARF – Land Acquisition and Resettlement Framework RAP – Resettlement Action Plan M&E – Monitoring and Evaluation MFF – Multitranche Financing Facility MOF – Ministry of Finance MPR – Monthly Progress Report MRDI – Ministry of Regional Development and Infrastructure NAPR – National Agency of Public Registry NGO – Non-Governmental Organization OP 4.12 World Bank Involuntary Resettlement policy document

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Resettlement Action Plan PEMI – Persons Experiencing Major Impact PFR – Periodic Financing Request

PPR – Project Progress Report PPTA – Project Preparatory Technical Assistance PRRC – Property Rights Recognition Commission R&R – Resettlement and Rehabilitation RD – Roads Department RDMRDI – Roads Department of the Ministry of Regional Development and Infrastructure of Georgia RoW – Right of Way RU – Resettlement Unit SES – Socioeconomic survey ETCIC – Eurasian Transport Corridor and Investment Center WB - World Bank

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Resettlement Action Plan Contents

FINAL REPORT: APPENDIX J ...... 1 October 16, 2015 ...... 2 1 INTRODUCTION...... 16 2 CENSUS AND IMPACT ASSESSMENT ...... 20 2.2.1 Impact on Crops ...... 23 2.2.2 Impact on Trees ...... 23 2.2.3 Impact on Buildings/Structures ...... 24 2.2.4 Relocation Needs and Strategy ...... 24 2.2.5 Business Impacts...... 25 2.3.1 Impact on Employment and Agricultural Tenants ...... 25 2.3.2 Impact on Common Property Resources ...... 25 2.3.3 Severely Affected and Vulnerable Households ...... 25 3 SOCIOECONOMIC INFORMATION ...... 27 3.2.1 Demography ...... 27 3.2.2 AH Ethnicity ...... 27 3.2.3 Level of Education of APs ...... 27 3.3.1 Land Holding Status ...... 28 3.4.1 Major Economic Activities ...... 28 3.4.2 Annual Income of AHs ...... 28 3.4.3 Household Assets and Durables ...... 29 3.4.4 Prevalence of Debt...... 29 3.4.5 Access to Energy, Drinking Water and Civic Facilities ...... 29 3.4.6 Access to Health Centre, Schools and Road ...... 29 3.4.7 Cultural Values...... 29 4 LEGAL AND POLICY FRAMEWORK ...... 35 5 COMPENSATION ELIGIBILITY AND ENTITLEMENTS ...... 41 6 INSTITUTIONAL ARRANGEMENTS ...... 46 7 PUBLIC CONSULTATION, PARTICIPATION AND DOCUMENTS DISCLOSURE ...... 49 8 COMPLAINTS AND GRIEVANCES ...... 50 9 IMPLEMENTATION SCHEDULE ...... 54 10 COSTS AND BUDGET...... 56 10.2.1 Land Compensation ...... 56 10.2.2 Buildings and Structures Compensation ...... 56 10.2.3 Perennial plants compensation ...... 57 10.2.4 Business interruption compensation ...... 58 10.2.5 Crops compensation ...... 58 10.2.6 Allowances ...... 58 10.2.7 Administrative costs ...... 59 11 MONITORING AND EVALUATION ...... 61

Figures

Fig. 1 Project status

Fig.2 Project affected houses

Fig.3 Organizational chart

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Resettlement Action Plan Fig. 4 Redress and grievance

Appendices

Appendix 1 Land acquisition procedures

Appendix 2 Public consultations

Appendix 3 Evaluation of compensation rate

Appendix 4 Information leaflet

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Resettlement Action Plan GLOSSARY Beneficiary Community: All persons and households situated within the state owned or acquired property who voluntarily seek to avail and be part of the Project and represented by a community association duly recognized by the community residents, accredited by the local government, and legally registered with the appropriate institutions. Compensation: Payment in cash or in-kind of the replacement cost of the acquired assets. Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base. Improvements: Structures constructed (dwelling, fence, waiting sheds, animal pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization. Land Acquisition: The process whereby a person is compelled by a government agency to alienate all or part of the land a person owns or possesses to the ownership and possession of the government agency for public purpose in return for a consideration. Affected People (AP): Individuals affected by Project-related impacts. Affected Household (AH): All members of a household residing under one roof and operating as a single economic unit, who are adversely affected by the Project. It may consist of a single nuclear family or an extended family group. Rehabilitation: Compensatory measures provided under the Policy Framework on involuntary resettlement other than payment of the replacement cost of acquired assets. Relocation: The physical relocation of a AP/AH from her/his pre-Project place of residence. Replacement Cost: The value determined to be fair compensation for land based on its productive potential and location. The replacement cost of houses and structures (current fair market price of building materials and labour without depreciation or deductions for salvaged building material), and the market value of residential land, crops, trees, and other commodities. This includes all transaction costs such as taxes and land registration fees. Resettlement: All measures taken to mitigate any and all adverse impacts of the Project on AP’s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation of the damaged/removed infrastructure and installations. Sakrebulo: Representative body of local self-government. The middle level of local government consists of 67rayons (districts) and six cities in Georgia: Tbilisi, Kutaisi, Rustavi, Poti, Batumi and Sokhumi. The representative branch of rayon level is the rayon level Local Councils (Rayon Sakrebulo) and the executive branch is represented by Rayon Gamgeoba (Gamgebeli).The self- government level consists of settlements (self-governed cities) or groups of settlements (municipalities). Settlements could be villages, small towns (minimum 3,000 inhabitants) and cities (minimum 5,000 inhabitants). The representative and executive branches of self-government are represented accordingly by Local Council (Sakrebulo) and the Gamgebeli of municipal level. The exclusive responsibilities of self-government include land-use and territorial planning, zoning, construction permits and supervision, housing, and communal infrastructure development. Vulnerable groups – People who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status be more adversely affected by resettlement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related development benefits.

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Resettlement Action Plan EXECUTIVE SUMMARY

1. Bakurtsikhe-Gurjaani bypass road represents the component of Kakheti Regional Roads Improvement Project (KRRIP) funded by the Government of Georgia and the World Bank. The bypass road starts from Tbilisi- Bakurtsikhe-Lagodekhi and Bakurtsikhe-Telavi-Akhmeta cross road and ends at Bakurtsikhe-Telavi-Akhmeta road. The road mainly uses original road corridor built in the 1980s, but also envisages new realities. The main difference is that the new road will bypass those areas, which have been developed and used since the 1980s.

2. The road covers approximately 15 km road section in Kakheti region from Village Bakurtsikhe till Village Chumlaki, Gurjaani Region. This section is the part of Akhmeta - Telavi - Bakurtsikhe inter- country road, which is one of the main roads of Kakheti region. The road passes through densely populated areas and therefore the transit traffic in this area is intense with a high number of road accidents. The arrangement of bypass road that will connect Tbilisi-Bakurtsikhe-Lagodekhi-Azerbaijan international border road to Akhmeta-Telavi-Bakurtsikhe inter- country road bypassing the villages on Alazani Valley - Bakurtsikhe, Kolagi, Dzirkoki, Chandari, Vejini and Chumlaki and Gurjaani Region, is being planned (see. Figure 1).

3. The arrangement of two-lane bypass road with the circular intersections at 0 km (Chumlaki) and 15.6- km (Bakurtsikhe) in the beginning and end of the highway is being reviewed. The arrangement of circular intersection is also being planned on the main intersection near Gurjaani - at 9.6 km. The arrangement of another circular intersection (at 1.7 km) that will connect to Bakurtsikhe-Tsnori planned road is also envisaged in the future. The project also envisages the arrangement of 7 bridge crossings, including 1 railway bridge, 12 underpasses, pipes, supporting walls, shore protection and headworks. The roadway width is 2 x 3.5 m, with 0.5 m paved shoulders with overall width of 2.5 m. The pavement project implementation period shall be twenty years.

4. This resettlement action plan (RAP) meets the requirements of the relevant laws of Georgia, the WB Policy OP 4.12 on Involuntary Resettlement and the requirements of Land Acquisition and Resettlement Framework document SLRP III1. The resettlement plan has been developed based on the results of:

(a) detailed measurement works; (b) the property evaluation / field and documentary study and inventory of affected areas; (c) description of 100% of affected individuals in demographic survey; (d) socio-economic research of no less than 25% of affected families. 5. Total land area to be acquired is 199,171 sq. m of land from 491 plots. In terms of tenure the affected land plots are distributed in accordance with the following categories:

Category 1. 129 private land plots with full registration (62084 sq. m); Category 2. 275

private rightfully owned unregistered plots (130363 sq. m);

Category 3. 39 state owned plots illegally occupied by private users (6724 sq. m); Category 4. 48 state owned unused land plots of 233597 sq. m. 6. Category 3 land parcels, no compensation is paid for land but only for lost assets and

improvements (eg. Fences, crops, etc) and resettlement or livelihood restoration as

required.

7. Category 4 land parcels are not subject for compensation

8. Given the magnitude of environmental and social impacts (see Table E-1) the project

under this RAP has classified as category “A” by the World Bank. The project location

map is shown in Figure 1.1.

9. A summary of the project impact is represented in the following table

1 Insert link to RPF for SRLP III1http://www.georoad.ge/uploads/files/SLRP%20III%20RPF51.pdf P a g e | 9

Resettlement Action Plan 6. Category 3 land parcels, no compensation is paid for land but only for lost assets and improvements (eg. Fences, crops, etc) and resettlement or livelihood restoration as required.

7. Category 4 land parcels are not subject for compensation

8. Given the magnitude of environmental and social impacts (see Table E-1) the project under this RAP has classified as category “A” by the World Bank. The project location map is shown in Figure 1.1.

9. A summary of the project impact is represented in the following table :

Table E-1.Summary of the project impact

# Impact Unit Q-ty 1. Total Land parcels affected No 491 2. Total land Area to be acquired Sq. m 432768 3. Category 1. Private registered plots (Legalized) No 129 Sq. m 62084 4. Category 2. Private rightfully owned unregistered plots (legalizable) No 275 Sq. m 130363 5. Category 3. State Owned Plots Illegally Occupied by Private Users (Non legalizable) No 39 Sq. m 6724 6. Category 4. State Owned Plots Not Used by Private Users No 48 Sq. m 233597 7. Type 1. Private agricultural land No 366 Sq. m 180163 8. Type 2. Private non-agricultural residential land No 28 Sq. m 8469 9. Type 3. Private non-agricultural commercial land No 10 Sq. m 3815 10. Type 4. State owned agricultural land illegally used by private users No 36 Sq. m 5758 11. Type 5. State owned land illegally used by private users as residential No 2 Sq. m 322 12. Type 6. State owned land illegally used by private users as commercial No 1 Sq. m 644 13 Type 7. State owned land unused No 48 Sq. m 233597 14. Arable land for expected crop No 66688 15. Affected fruit Trees (additionally 693 unfruitful privately owned trees affected) Sq. m 18476

16. Residential buildings No 4 17. Supplementary facilities No 40

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Resettlement Action Plan

18. Commercial buildings No 3 18. Fences m 3851 19. Severely Affected Households (e.g. losing more than 10% of land) No 247 20. Vulnerable Households No 122 21. Resettled households No 4 22. AH with registered plots No 100 23. AH with legalizable plots No 241 24 AH illegally using State owned land No 36 25. AH with agricultural land plots No 334 26. AH with residential land plots (out of which 4 AH are physically displaced) No 30

27. AH with commercial land plots (out of which at 3 unused commercial buildings are No 5 affected)

28. Total AH No 350 29. Total Affected Persons by land loss No 1614 30 Total Affected persons by physical displacement No 18 31 Total Affected business (only loss of material assets) No 5

10. The project impact extends to 1614 peoples (788 male and 826 females). Further, 55 of the 122 vulnerable AHs are headed by women. Out of 350 AH 4 households (18 APs) will be resettled and 34 households loss part of residential land plots. Special attention will be given to the resettlement impact on women and other vulnerable groups during monitoring and evaluation of the RAP.

11. The legal and Resettlement policy framework for SRLPIII of the project on land acquisition and resettlement has been adopted to assist the APs and/or households for their lost land and assets, income and livelihood resources. Expropriation of land through eminent domain will not be applied unless approach for acquisition through negotiated settlement fails. Compensation eligibility is limited by a cut-off date as set for this project on the day of the AP Census finalization which is 4 March 2011.

12. APs entitled for compensation or at least rehabilitation assistance under the Project are

(i) all persons with registered or rightfully owned unregistered plots losing land

(ii) tenants and sharecroppers irrespective of formal registration,

(iii) owners of buildings, crops, plants or other objects attached to the land;

(iv) persons losing business, income, and salaries.

However, the census and socioeconomic survey did not identify any impacts on tenants, sharecroppers, businesses income or salaries. A summary entitlements matrix is included in table below:

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Resettlement Action Plan Table E-2.Compensation Entitlement Matrix

Type of Loss Application Definition of APs Compensation Entitlements

Land

Permanent loss AH losing agricultural land Owner with full land Cash compensation at full replacement cost of regardless of impact severity registration or replacement land of the same value of agricultural land land lost and at location acceptable to APs where feasible. The preferred option is cash compensation as the land-for-land option is not used since there are no state reserves of public agricultural land which was privatized during the land reform. If residual plots become unusable the project will acquire it in full if so the AP desires.

Owner/user of legalizable land These lands will be legalized and provided with cash compensation at full replacement cost. Non-legalizable agricultural AH losing non-legalizable land, will not be lands (squatters/encroachers) compensated for the value of the land. However, they will be compensated at replacement value for any loss of assets on the land built before the cut-off date. In cases where the affected land plot is the only one used by AH and provides main source of income, the AH will be compensated with a single self-relocation allowances in cash equal to 1 year of minimum subsistence income. The Roads Department will follow up the monitoring during one year period.

Non-Agricultural Land AH losing their Owner with full registration Cash compensation at full replacement cost commercial/residential land or replacement land of the same value of land lost and at location acceptable to APs where feasible. Legalizable land APs ownership right to project-affected parcel they possess will be legalized and provided with cash compensation at full replacement cost. Renter/Leaseholder Rental allowances in cash for 3 months.

Non-legalizable non- AH losing non-legalizable non-agricultural agricultural lands land, will not be compensated for the value (squatters/encroachers) of the land. However, they will be compensated at replacement value for any loss of assets on the land built before the cut-off date. In cases where the affected land plot is the

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Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements only land used for residence or providing main source of income, the AH will be compensated with a single self-relocation allowances in cash equal to 1 year of minimum subsistence income.

Buildings and Structures

Residential and non All AHs regardless of legal All impacts will be considered as full impacts residential ownership/ registration status disregarding the actual impact percentage. structures/assets (including legalizable, non- Impacts on residential and non-residential legalizable lands structures/assets built before the cut-off date (squatters/encroachers) will be compensated in cash at full replacement costs free of depreciation and transaction costs. Additionally, all such Ahs will receive allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months (see below)

Loss of Community Infrastructure/Common Property Resources

Loss of common Community/Public Assets Community/Government Reconstruction of the lost structure in property resources consultation with community and restoration of their functions

Loss of Income and Livelihood

Crops Standing crops affected or All AHs regardless of legal Crop compensation in cash at gross market loss of planned crop status (including legalizable value of actual or expected harvest. incomes* and Informal Settlers) Compensation for this item will be provided even in case if the crops were harvested

Trees Trees affected All AHs regardless of legal Cash compensation at market rate on the status (including legalizable basis of type, age, market price of product and Informal Settlers) and productive life of the trees. The project affected person is given the possibility to cut himself the trees in his ownership and use the wood. In case he is unable or denies to do so, the construction contractor will clean the area from the plants and store at the place allocated by the Municipality and later will transfer to the Municipality.

Business/Employment Business/employment loss All AHs regardless of legal Owner: (i). (permanent impact) cash status (including legalizable indemnity of 1 year net income; (ii) and Informal Settlers) (temporary impact) cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum subsistence

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Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements Income as only acceptable evidence. Permanent worker/employees: indemnity for lost wages equal to 3 months of minimum subsistence income and trainings on computer literacy or other to be implemented by the RD.

Allowances

Severe Impacts >10% income loss All severely affected AHs losing Agricultural income: Two-year yield from more than 10% of affected affected land agricultural land plot Non agriculture income: 1additional (including informal settlers) compensation for 3 months of minimum subsistence income.

Relocation/Shifting Transport/transition costs All AHs to be relocated Provision of allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income.

Vulnerable People AHs below poverty line, Allowance equivalent to 3 months of Allowances headed by Women, disabled minimum subsistence income** and or elderly employment priority in project-related work (persons with such ability) Follow up monitoring will be conducted by the RD.

Temporary Loss

Temporary impact All AHs Due compensation will be assessed and paid during construction based on this RAP during construction. All land required for temporary use is to be obtained by the civil works Contractor on voluntary basis (e.g., willing buyer-willing seller basis through an informed consent and power of choice on the part of land owner to agree or disagree with the temporary land acquisition). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored following use

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Resettlement Action Plan

Unforeseen Road Department and the construction resettlement impacts, contractor will address and if any mitigate/compensate unforeseen resettlement impact during the project in compliance with the stipulations of this RAP.

Accidental damage to properties during construction will be assessed and mitigated by the RD and the contractor as per the Environmental Management Plan and the construction contract.

*Income expected from crops on affected agricultural land permanently used for crop cultivation during the recent years. In case the land was permanently used for crop cultivation, but no crops have been planted (due to need of rest to this land or illness of the farmer or any justifiable reason) for the year, when the inventory of losses was conducted, the land parcel will be still considered as designed for crop cultivation and relevant compensations will be paid ** Minimum subsistence income to be calculated based on a 5-member family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at time of RAP approval 13. Ministry of Regional Development and Infrastructure (MRDI) is the executing agency (EA) of the Project on behalf of the Government of Georgia and the Roads Department of the MRDI (RDMRDI) is the implementing agency (IA). The World Bank (WB) will be financing the Project for civil works construction and construction supervision. RDMRDI is responsible for road construction as well as land acquisition and resettlement of the APs due to land acquisition and project construction. RDMRDI is assisted by a number of other government departments and private agencies in the design, construction and operation of the Project. The National Agency of Public Registry recognizes and further registers the right on property of the legal land owners under the effective legislation. The local government at Rayon and village levels are involved in the legalization of legalizable land parcels and subsequently land acquisition and resettlement of APs. The Ministry of Environmental Protection is responsible for environmental issues.

14. A grievance mechanism managed by MRDI will be available to allow APs appealing any disagreeable decision, practice or activity arising from land or other assets compensation. APs will be fully informed of their rights and of the procedures for addressing complaints.

15. All activities related to the land acquisition and resettlement have been scheduled to ensure that compensation is paid prior to displacement and commencement of civil works. Public consultation, internal monitoring and grievance redress will be undertaken on ongoing basis throughout the project duration.

16. The entire project alignment will be divided on some subsections and the project development will be arranged in phases. First phase will cover subsection 1 (0.0 - 5.0 km). The next - subsection 2 (5.0 - 10.0 km), and finaly - subsection 3 (10.0 - 15.6 km). After the finalization of delivery of all entitlements included in this Resettlement Action Plan (RAP) satisfying the WB Safeguards Policies requirements OP/BP 4.12, the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia (RDMRDI) as the Program Implementing Agency (IA) has to prepare Compliance Reports for each subsection.

17. Land acquisition and resettlement tasks under the project will be subject to monitoring. Monitoring will be the responsibility of RDMRDI. Internal monitoring will be carried out routinely by RDMRDI. The results will be communicated to the WB through the quarterly project implementation reports. External monitoring to be conducted by Social Safeguards Consultant will be carried out on a regular basis, and its results will be communicated to RDMRDI and WB through quarterly reports.

18. Bakurtsikhe-Gurjaani bypass road project RAP cumulative budget amounts 4 308 376.08 GEL (1854580.55 USD) P a g e | 15

Resettlement Action Plan 1 INTRODUCTION 1.1 Project Background 19. Bakurtsikhe-Gurjaani bypass road is the component of the Kakheti Regional Roads Improvement Project (KRRIP) funded by the Government of Georgia and the Word Bank. The bypass road starts from the crossing of Tbilisi- Bakurtsikhe- Lagodekhi and Bakurtsikhe-Telavi –Akhmeta roads and ends at the Bakurtsikhe-Telavi-Akhmeta road. The bypass road mainly uses the initial road route of the 1980s though it takes into account new realities as well. The main difference is that the new road bypasses the areas, which have been developed and used since the 1980s.

20. The road includes a section of about 15 km in the Kakheti Region from the village Bakurtsikhe to the village Chumlaki in Gurjaani District. This section is a part of the domestic Akhmeta-Telavi- Bakurtsikhe road that is one of the main roads of the Kakheti Region. The road passes through densely populated areas with high intensity of transit traffic and big number of road accidents on the above section. There is planned to arrange a bypass road that will connect the international highway Tbilisi- Bakurtsikhe-Lagodekhi-Azerbaijan border with the existing domestic Akhmeta-Telavi-Bakurtsikhe road bypassing the villages Bakurtsikhe, Kolagi, Dzirkoki, Chandari, Vejini and Chumlaki and the town of Gurjaani (see Fig. 1).

21. Total land area to be acquired is 199171 sq. m of land from 491 plots. In terms of tenure the affected land plots are distributed in accordance with the following categories:

Category 1. 129 private land plots with full registration (62084 sq. m); Category 2. 275

private rightfully owned unregistered plots (130363 sq. m); Category 3. 39 state owned plots illegally occupied by private users (6724 sq. m.) Category 4. 48 state owned unused land plots of 233597 sq. m

22. Category 3 land parcels, no compensation is paid for land but only for lost assets and improvements (e.g. fences, crops, etc) and resettlement or livelihood restoration as required. Category 4 land parcels are not subject to compensation

23. Given the magnitude of impacts the project under this RAP is classified as category “A” for resettlement. The project location map is shown in Figure 1.1.

24. The project impact extends to 1614 persons (788 male and 826 females). Further, 55 of the 122 vulnerable AHs are headed by women. Out of 350 AH 4 households (18 APs) will be resettled and 34 households loss residential land plots. Special attention will be given to the impact of resettlement on women and other vulnerable groups during monitoring and evaluation of the RAP.

25. The legal and policy framework of the project on land acquisition and resettlement has been adopted to assist the APs and/or households for their lost land and assets, income and livelihood resources. Expropriation of land through eminent domain will not be applied unless approach for acquisition through negotiated settlement fails.

26. Compensation eligibility is limited by a cut-off date as set for this project on the day of the finalization of the AP Census which is 4 March 2015. This Census covered an area of 199171 sq. m (491 parcel) along the proposed corridor. 14 February 2015 was considered as commencement date for the field survey works. The cut-off date was declared at the public meeting. In addition, each affected person was individually informed about the date of field survey on his land (measurements, inventory, census, socio-economic survey) by the representatives of Sakrebulo level self-government. Also each affected

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Resettlement Action Plan person was given the contact information for inquiry corrections/amendments of the data obtained during the field survey within 5 days.

27. The entire project alignment will be divided on some subsections and the project development will be arranged in phases. First phase will cover subsection 1 (0.0 - 5.0 km). The next - subsection 2 (5.0 - 10.0 km), and finaly subsection 3 (10.0 - 15.6 km). After the preparation of Resettlement Action Plan (RAP) satisfying the WB Safeguards Policies requirements OP/BP 4.12, the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia (RDMRDI), as the Program Implementing Agency (IA) has to prepare Compliance Reports for each subsection. 1.2 The Impacts Corridor 28. The route starts at the junction of the Tbilisi – Bakurtsikhe – Lagodekhi road and the Bakurtsikhe – Telavi – Akhmeta road and runs north-eastward from there for two kilometres. The route underpasses the existing disused railway line near Km 2 before turning ninety degrees to run north-westward parallel to the route of the existing road and disused railway line. In the vicinity of this curve the alignment is currently not traversable. Thereafter the route runs parallel to the disused railway line for approximately 6 km before turning away from the railway alignment to run approximately 1 km northwards, before looping around and through a built-up area before continuing north-westward to a major river crossing point at Km 13.7. There are two sections of obstruction in this built-up area (Km 9.5 to 10), one caused by buildings and the other by different miscellaneous structures. There is further obstruction by buildings at Km 13.2 before the river crossing. The route continues for a kilometre after the river crossing before converging with the existing Akhmeta-Telavi-Bakurtsikhe road and disused railway line, at Km 14.6.

29. The route traverses agricultural land except for the built-up areas noted. There is intensive vineyard cultivation on much of the agricultural land. The route is crossed by numerous minor roads running along a south-west to north-east axis, as well as several watercourses on the same axis (discharging to the north-east).

30. The general road cross section that shall be adopted is as follows:

- Number of lanes: 2 - Lane width: 3.50 m - Carriageway width: 7.00 m - Width of paved shoulder: 0.50 m - Width of unpaved shoulder: 2.00 m - Total road width: 12.00 m 31. Also, the project envisages arrangement of 7 bridge crossings, including 1 railway bridge, 12 underpasses, pipes, abutments, shore protection and regulatory structures.

32. The designed horizontal alignment shall be a smooth flowing alignment that matches the existing right of way as closely as possible. Horizontal and vertical curves shall be designed to comply with the Georgian geometric standards, for a design speed of 80 km/h.

33. Along the project road certain minor roads intersect the project road. These side road connections are dealt with by intersections, both grade separated and at grade.

1.3 Minimizing Land Acquisition and Resettlement 34. Due considerations have been given during the design of the road alignment and inter sections layout to minimize the adverse impacts of land acquisition and involuntary resettlement. Efforts have been put to incorporate best engineering solution in avoiding large scale land acquisition and resettlement. Following are the specific measures adopted for the selection of the route:

(i) Some sections of the road required improvement of geometric characteristics and involved realignment. Realignment for these sections has been well tuned on site to avoid most densely settled areas and agricultural lands. This specifically concerns the sections 0.0-0.7km, 7.2- 9.0km and 14.9-15.5km. (ii) Inter sections with local roads have been designed to avoid resettlement (iii) Designs of intersections were reviewed by resettlement specialists and the recommendations Pwere a g econsidered | 17

Resettlement Action Plan in the final design. In total the physical displacement of 38 households has been avoided through alignment redesign

1.4 RAP Preparation 35. The Resettlement Action Plan (RAP) has been prepared by Consultant, Roughton International Ltd, for RDMRDI. It meets the requirements of the relevant laws of Georgia, the World Bank and OP 4.12 Regulations and Resettlement Policy Framework of SLRPIII provided by RDMRDI.2 This Resettlement Plan has been developed based on the results of:

(a) detailed measurement works; (b) the property evaluation / field and documentary study and inventory of impacted areas; (c) description of 100% of impacted individuals in demographic survey; d) socio-economic survey of no less than 25% of impacted families.

Fig. 1. Location of the project

2 Include link to RPF2 http://www.georoad.ge/uploads/files/SLRP%20III%20RPF51.pdf

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Resettlement Action Plan 36. The process of development of this resettlement action plan provided for intensive consultations with all stakeholders conducted between 14 February 2015 and 4 March 2015 including the Gurjaani district authorities and potentially APs. The purpose of those consultations was to establish the impact scope and to develop the mitigation and countervailing measures. During the road route selection and technical project development the special focus was made on land acquisition and measures of minimizing the negative impact of involuntary resettlement. The best engineering solutions have been used in order to minimize the resettlement scale. In particular, the following measures have been implemented:

(A) The road route on each site was adjusted to the location to avoid passing through the densely populated areas; (B) The rod junctions at crossing with local roads were designed in consideration of the local needs and resettlement minimization principle; (C) the road intersection points have been checked by the resettlement and social development experts, and their recommendations were incorporated into the final project. 37. Before disbursement of the compensation funds to the APs as per the resettlement plan, it is necessary to recognize the legalized property rights and to complete the registration process as well as to ensure that all APs have signed the sale and purchase agreements, thus giving evidence that they agree with the amount of the compensation. If the AP does not sign a contract, the case will be referred to the competent court for expropriation proceedings, which will be implemented after the deposit of the compensation funds in special accounts. Escrow accounts will be opened also for those APs who are not in place and cannot be found out. If RD could not find those AP’s a special announcement will be published in local newspaper and exposed in the Gamgeoba (local municipality) office. By this announcement the AP’s will be given 3 months period for response (assuming that they can be outside of Georgia).

38. The permit on commencement of the activity (implementation of works) by the construction contractor in a specific plot or section of the road, will be issued only after the compensation for that land or road section has been paid and the entitlements in this RAP, including resettlement assistance have been implemented to those affected in that specific plot or road section.

39. After being approved by the World Bank and the Government of Georgia the sole responsibility for its implementation shall be borne by the Roads Department. This RAP can be updated from time to time, as needed, only in agreement between the WB and the Roads Department.

1.5 Conditions for Project Implementation 40. Based on the WB policy/practice, the approval of project implementation will be based on the following RAP-related conditions:

(i) Signing of Contract Award: Conditional to the approval of the RAP by WB and Government. RAP reflects final impacts, final AP lists and compensation rate at replacement cost approved by RD. (ii) Notice to Proceed to Contractors: Conditional to the full implementation of RAP entitlements before land take of plots or sections of road required for construction works (legalization of legalizable owners, and full delivery of compensation and rehabilitation allowances).

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Resettlement Action Plan 2 CENSUS AND IMPACT ASSESSMENT 2.1 Introduction 41. The impact assessment reflects the land, buildings, plants and other property losses for Bakurtsikhe- Gurjaani bypass road project. All losses and damages were recorded and assessed in the alienation strip specified by the project engineering design consultant.

42. Digital cadastral maps were collected through the National Agency of Public Registry. The road outline design was applied on the digital cadastral maps and the detailed land surveys have been made using DGPS on the site, aimed at identifying the affected land, specifying their cadastral data. Based on the detailed survey the census of 100% of the APs was conducted between February 14, 2015 and March 4, 2015. In addition, the random socioeconomic survey of 25% households on the project affected areas was held, aiming clarification of the socioeconomic conditions of the affected communities.

43. March 4, 2015, the date of commencement of the detailed surveying works and census of affected persons is considered to be the date of termination of the right to receive compensation. This Census covered an area of 199171 sq. m (491 parcel) along the proposed corridor and finalized on March 4, 2015.

2.2 Impact on Land, Other Assets and Income General Classification of affected land 44. Total land area to be acquired is 432768 sq. m of land from 491 plots. In terms of tenure the affected land plots are distributed in accordance with the following categories:

Category1. 129 private land plots with full registration (62084 sq. m,14.3% of total);

Category 2. 275 private rightfully owned unregistered plots (130363 sq. m, 30.1 % of total); Category 3. 39 state owned plots illegally occupied by private users (6724 sq. m 1.6% of total) Category 4. 48 state owned unused land plots of (233597 sq. m, 54.0% of total)

45. The land costs and compensation categories within the project area are determined by the land use factor. Figures on Land impacts are provided in accordance to the land classification and legal categories that are relevant to determine compensation rates and amounts due to their use modalities. The affected land has been classified by the following main types:

Type 1. Agriculture Private land (366 plot, 180163 sq. m)

Type 2. Private Non-agricultural residential land (28 plot, 8469 sq. m) Type 3.

Private non-agricultural commercial land (10 plots, 3815 sq. m)

Type 4. State owned agricultural land illegally used by private users (36 plots, 5758 sq. m) Type 5. State

owned land illegally used by private users as residential (2 plots, 322 sq. m)

Type 6. State owned land illegally used by private users as commercial (1 plots, 644 sq. m.) Type 7. State owned land unused (48 plots, 233597 sq. m)

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Resettlement Action Plan 46. The aggregated figures for the land parcels of different categories are given below in Table 2.1. and Table 2.2.

Table 2.1: Type of Land Ownership

Compensable Land

1 Category 1. Private registered plots (Legalized) No 129

Sq. m 62084

AH 100

2 Category 2. Private rightfully owned unregistered plots No 275 (Legalizable) Sq. m 130363

AH 241

Sub-total compensable land No 404

Sq. m 192447

Non- Compensable Land

3 Category 3. State Owned Illegally Occupied by Private No 39 Users (Non Legalizable) Sq. m 6724

AH 36

4 Category 4. State Owned Not Used by Private Users No 48

Sq. m 233597

AH 0

Sub-total non compensable land No 87

Sq. m 240321

Total No 491

Sq. m 432768

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Resettlement Action Plan Table 2.2: Type of Land Use

# Impact Unit

Compensable Land

1 Type 1. Private agricultural land Private agricultural land No 366 (legalized or legalizable) used

for annual crops and fruit tree Sq. m gardens 180163

AH 300

2 Type 2. Private non- agricultural Private land (legalized or No 28 residential land legalizable) used for residential

purposes (Out of 28 affected land plots 24 Sq. m losses only part of the yard, while residential houses are

affected on 4 land plots) 8469

AH 27

3 Type 3. Private non- Private land (legalized or No 10 agricultural commercial land legalizable) used for commercial purposes Sq. m 3815

AH 5

Sub-Total Compensable No 404

Sq. m 192447

4 Type 4. State owned agricultural State owned illegally occupied No 36 land illegally used by private by private users for users agricultural purposes Sq. m 5758

AH 34

5 Type 5. State owned land State owned illegally occupied No 2 illegally used by private users as by private users for residential residential purposes Sq. m

322

AH 2

6 Type 6. State owned land State owned illegally occupied No 1 illegally used by private users as by private users for commercial commercial purposes Sq. m 644

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Resettlement Action Plan

AH 0

7 Type 7. State owned land State owned land not used No 48 unused by anyone Sq. m 233597

AH 0

Sub-total non compensable No 87 land

Sq. m 240321

Total No 491

Sq. m 432768

2.2.1 Impact on Crops 47. Project impacts 152 agricultural parcels of land of 66688 sq. m which are used to grow crops, out of which 122 (80.3%) land plots ( 58060 sq. m) will lose more than 10% of land. It should be noted that from the beneficiary’s point of view the species of seed crops usually vary in different years by their economic effectiveness.

2.2.2 Impact on Trees 48. The project affects 18476 fruitful perennials (fruit trees and vineyards). The main impact falls on grapes (12313 root) and peaches (3102 trees). The project impact on perennial species by age groups is shown in the table below.

49. The project also affects 693 unfruitful privately owned trees, for which no compensation is envisaged but the wood remains in the owner's possession. Only fruit trees are considered having economic value.

Table 2.3: Affected fruitful perennials Age groups Species of fruits Total 5- 5-9 10-14 15-19 20-24 25+ 42 31 25 4 4 1 107 Apple 5 17 12 6 2 6 48 Pear 321 268 145 35 22 10 801 Plum/prune/cherry plum Cherry/sweat cherry/dogberry 394 113 31 3 4 5 550 7 7 4 2 3 1 24 Apple-quince 96 49 39 16 7 14 221 Fig 0 25 4 5 4 6 44 Persimmon 175 115 117 95 30 83 615 Walnuts 56 16 18 2 0 0 92 Hazelnuts 3166 852 1290 1096 574 3795 10773 Grapes (white)

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Resettlement Action Plan

103 325 728 204 160 20 1540 Grapes (black) 1581 793 161 518 27 22 3102 Peach/apricots 340 101 56 26 9 27 559 Other* Total 6286 2712 2630 2012 846 3990 18476

* Acacia, Capers, Pomegranate, Mulberry, Almond, Bay leaves, Olives, Medlar, Mushmala, Kiwi, Feijoa

2.2.3 Impact on Buildings/Structures 2.2.3.1 Type of Affected Structures 50. The project affects various types of buildings, which can be classified into the following categories for the purposes of the project: residential houses, auxiliary civil structures, commercial facilities and fences/walls. In particular, the project affects 4 houses, 40 auxiliary civil structures, 3 production/commercial non-functioning facilities, 114 fences (3851 m. total length).

Fig. 2 Project affected houses

51. In process of preparation of this Resettlement Action Plan all affected buildings were thoroughly surveyed and described. The detailed data about the buildings are shown in the Special Technical Annex. The following table shows the quantities of buildings/structures of different type:

Table 2.4: Impact on Buildings/Structures

Type of building/structure Q-ty Residential houses 4 Auxiliary civil structures 40 Production/commercial facilities 3 Fence 114 Total 161

2.2.4 Relocation Needs and Strategy 52. Gurjaani-Bakurtsikhe bypass road project requires relocation of 4 households.mpacts will be compensated in cash at full replacement costs free of depreciation and transaction costs. Additionally,

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Resettlement Action Plan affected families will receive allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months .

2.2.5 Business Impacts 53. The project affects individual assets (land, fence, non-operating facilities, etc.) belonging to 11 businesses. However, it does not directly impact their business activities. Noteworthy the enterprise “Optics” which provides the fiber-optic internet connection. Cables of this enterprise shall be relocated according to the engineering design of the project, which ensures its uninterrupted functionality during the construction of Bakurtsikhe- Gurjaani bypass road. Therefore, in frames of the project no impact on the profit of businesses and their employees’ wages is expected.

2.3 APs and Communities 54. The project affects 350 households with 1614 members, however only 4 households are physically displaced and 247 households will loss more than 10% of agricultural lands. The project will not impact on any community infrastructure and historical-cultural monuments.

2.3.1 Impact on Employment and Agricultural Tenants 55. Road construction will not affect any employees or agricultural tenants.

2.3.2 Impact on Common Property Resources 56. Road construction will not affect any community or public property.

2.3.3 Severely Affected and Vulnerable Households 57. Based on the field study carried out in the process of preparation of the resettlement plan Bakurtsikhe- Gurjaani bypass road project severely affects 289 agricultural parcels (each parcel lose more than 10% of its area). Total area of land to be transferred to the project is 158749sq.m.

58. Field study carried out in the process of preparation of the resettlement plan and contacts with the social protection agencies revealed the vulnerable households affected by the project.

59. Vulnerable households were identified by the following criteria: female headed household, the elderly (pension aged) person headed household, household with disabled person and household below the poverty line (registered by the social service agency). In the frames of the project a vulnerable household is the one which meets at least one of the above criteria. The Bakurtsikhe-Gurjaani bypass road project affects 122 vulnerable households (of which 3 will be physically displaced (elderly headed households and one of them woman headed) and 121 lose more than 10% of agricultural land.

2.4 Gender and Resettlement Impacts 60. The project affects 826 women. During the field study carried out in the process of preparation of this resettlement plan, the special focus was made to the study of gender issues through a random socioeconomic survey. The project will have a positive impact on gender, and civil works contracts will include provisions to encourage employment of women during implementation. Additionally, women headed households have been considered as vulnerable and special assistance was provided in the RAP entitlements. The findings obtained during the research related to gender issues are presented in the following section.

2.5 Summary of Impacts 61. A summary of Project impacts is included in Table 2.5 below.

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Resettlement Action Plan Table 2.5 Summary Impact on Land Acquisition and Resettlement

# Impact Unit Q-ty 1. Total Land parcels affected No 491 2. Total land Area to be acquired Sq. m 432768 3. Category 1. Private registered plots (Legalized) No 129 Sq. m 62084 4. Category 2. Private rightfully owned unregistered plots (legalizable) No 275 Sq. m 130363 5. Category 3. State Owned Illegally Occupied by Private Users (Non No legalizable) 39 Sq. m 6724 6. Category 4. State Owned Not Used by Private Users No 48 Sq. m 233597 7. Type 1. Private agricultural land No 366 Sq. m 180163 8. Type 2. Private non-agricultural residential land No 28 Sq. m 8469 9. Type 3. Private non-agricultural commercial land No 10 Sq. m 3815 10. Type 4. State owned agricultural land illegally used by private users No 36 Sq. m 5758 11. Type 5. State owned land illegally used by private users as residential No 2 Sq. m 322 12. Type 6. State owned land illegally used by private users as commercial No 1 Sq. m 644 13 Type 7. State owned land unused No 48 Sq. m 233597 14. Arable land for expected crop No 66688 15. Affected fruit Trees (additionally 693 unfruitful privately owned trees affected) Sq. m 18476

16. Residential buildings No 4 17. Supplementary facilities No 40 18. Commercial buildings No 3 18. Fences m 3851 19. Severely Affected Households (e.g. losing more than 10% of land) No 247 20. Vulnerable Households No 122 21. Resettled households No 4 22. AH with registered plots No 100 23. AH with legalizable plots No 241 24 AH illegally using State owned land No 36 25. AH with agricultural land plots No 334 26. AH with residential land plots (out of which 4 AH physically displaced) No 30 27. AH with commercial land plots (out of which 3 has affected unused No 5

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Resettlement Action Plan

commercial buildings) 28. Total AH No 350 29. Total Affected Persons by land loss No 1614 30 Total Affected persons by physical displacement No 18 31 Total Affected business (only loses of material assets) No 5

3 SOCIOECONOMIC INFORMATION 3.1 Introduction 62. In the process of preparation of the RAP the random socioeconomic study of affected households was carried out. The study covered 108 households, or 31% of the total number of households affected by the project. The objective of this study was to collect the general information about the socioeconomic conditions of the affected persons. In addition, the demographic census of 350 affected households was held.

3.2 Affected Population 3.2.1 Demography 63. Results of 100% demographic census of 350 project affected households are given in table below.

Table 3.1: Demographic Profile of APs Category Men Women Total

Children (under 15) 122 159 281

Adults (from 15 to 65) 552 551 1103

Elderly people (over 65 years old) 114 116 230

Total 788 826 1614

64. Project affected household on average include 4.6 members. 81% of households is headed by male with the average age of 57.4 years, while the remaining 19% households are headed by female with the average age of 61.7 years.

3.2.2 AH Ethnicity 65. All affected households are Georgian.

3.2.3 Level of Education of APs 66. The table below shows the distribution of the project affected persons by the education level.

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Resettlement Action Plan Table 3.2 Level of Education of APs

education

Total

Higher

Preschool education

education

Secondary

Basic

Pre kindergarden

Male 3,5% 1,9% 3,9% 31,1% 9,9% 50,3%

Female 1,2% 2,7% 4,1% 29,9% 11,8% 49,7%

Total 4,7% 4,6% 8,0% 61,0% 21,7% 100%

3.3 Agriculture and Land Resources 3.3.1 Land Holding Status 67. The project affected households own an average of 0.71 ha farming land and 0.08 ha residential yard. The project affected persons basically are engaged in plant-growing. However, 10% of them have cattle (an average of 1.6 animal per household), 14% have pigs (an average of 2.1 animals per household) and 67% have poultry (an average of 9.5 heads per household). Special measures are described in the Entitlement Matrix for people losing more than 10% of productive land.

3.4 Economy of AHs 3.4.1 Major Economic Activities 68. For the majority of the project affected households, 80%, the main economic activity is agriculture. In addition, 25% of these households carries out commercial activity and 30% is engaged in activities for daily pay.

3.4.2 Annual Income of AHs 69. The average income of the project affected households is 16,543 GEL annually. The income and expenses structure of these households are given in the table below.

Table 3.3 Income and Expenses Structure

Income Expenses Employment 28,6% Food and drinks 37,4% Agricultural products 54,7% Footwear/clothes 5,4% Not agrarian business 4,9% Household appliances 2,7% from property 0,5% Health care 10,6% Pension/subsidies 10,4% Education 2,3% Other 0,9% Communication 3,4% Electricity 2,5% Transport 9,7% Fuel 5,6% Recreation/culture 2,1% Agriculture 12,1% Other 6,2%

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Resettlement Action Plan

Total 100% Total 100%

3.4.3 Household Assets and Durables 70. The average age of buildings where the project affected persons live is 53 years, an average number of storeys - 1.9, plan area - 214 sq m, the main building mass - brick/stone and concrete, the average number of rooms 6- 7.The following table summarizes the ownership of different types of durable goods:

Table 3.4: Possession of Durable Goods Household % having Description such goods Radio 19% Bicycle 26% TV 99% Gas stove 90% Computer 58% Refrigerator 90% Washing machine 71% Bike 2% Motor car 64% Air Conditioner 3%

3.4.4 Prevalence of Debt 71. 63% of household respondents said that they have taken loans from various sources. 52% of them have taken loan from a bank (with the average rate - 1.47%/month, the average maturity - 25 months, the average amount - 7200 GEL), while the remaining 48% - from other sources (mainly from the relatives). To avoid the deterioration of livelihood of these APs, the impact will be monitored and additional assistance provided on “as needed” basis.

3.4.5 Access to Energy, Drinking Water and Civic Facilities 72. All houses have electricity. 93% of houses have natural gas and water pipelines. Only 27% of the houses have flush toilet, others have septic toilets. The main source of fuel for heating is wood (64% of households) and natural gas (36%).

3.4.6 Access to Health Centre, Schools and Road 73. All households have access to health facilities (the average distance of 1.3 km) and schools (average distance of 0.9 km). The houses of project affected persons have direct access to the roads, 69% - to local roads, 17% - to the secondary road and 14% - to the international road. The average distance from the center of a settlement where the project affected persons live to the secondary and international roads is 0.4 km.

3.4.7 Cultural Values 74. The project affected households first of all name the following most valuable for them cultural monuments: the churches - the St. Mary, the Holy Trinity, the Ascension, the All Saints, Kvirstkhveli, the Archangel, St. George, St. Barbara, St John the Baptist, Kashveti, Father David, Zetskhoveli; the museums of Nato Vachnadze, Ivane Beritashvili, John-Malkhaz Shalikashvili; the monument to Makharasvhili. None of the above cultural monuments are affected by the project. 75. Indirect Impact on Vendors and Planned Mitigation Measures

It is highlighted that income losses not directly attributable to project-related land taking are not covered by WB OP 4.12 on involuntary resettlement and not eligible for compensation under this RAP. However, such indirect effects may be identified through social assessment and mitigated by attentive project design or other special measures. P a g e | 29

Resettlement Action Plan

In the case of this project, there are no roadside businesses that will be directly impacted by project-related land take, but some of them could be indirectly affected by the reduction of number of costumers as s result of the bypass. For this reason, as a part of the ESIA study, all roadside businesses in area of interest were assessed.

According to the survey the list of businesses includes: 59 small shops, 15 car maintenance stations, 7 pharmacies, 5 large shops, 45 individuals selling small amount of fruit and vegetable and 7 small bakeries. In total 138 business units.

The interviews were carried out on August 2015. The number of respondents (sample size) for the survey was selected as follows:  30 vendors – Fruit and vegetable sellers (total number of outlets is 45) were interviewed (level of confidence 94%, sample error 6%);  25 small shops were interviewed (level of confidence 90%, sample error 7%);  7 car maintenance stations were interviewed (level of confidence 90%, sample error 8%)  3 large shops were interviewed (level of confidence 92%, sample error 7%)  4 pharmacies were interviewed (level of confidence 90%, sample error 8%)

According to the survey 65% of employed are female. For 70 % of respondents, road side trading is the only employment and source of income of the family (household). The composition of these families varies between 2 to 7 members.

According to the survey the car maintenance stations, pharmacies, small and large shops, are less prone to the change in the traffic flow. They will still serve the locals. It is expected that the traffic of tourists and holiday makers in this direction, including those going to Telavi and etc. will not change.

As per the shop owners, volume of sales is not dependent on the traffic flow and/or the season. Therefore, they think the effect of the traffic diversion on larger shops will be insignificant. Most of the small and large shops have been operating for more than 10 years. All respondents refused to specify their approximate daily income, except one vendor, the owner of a large shop in Bakurtsikhe. He said that his approximate daily turnover was 200-300 GEL. As mentioned by the interviewees, in recent years the number of customers decreased but the owners are still keen to preserve their businesses and pay small salaries to employees even when their income is minimum and hardly enough for paying off the taxes.

Thus, the survey revealed that 48 individual vendors (45 fruit and vegetable sellers and 3 selling bread) trade only from spring to autumn (May to October). Most of them are not operating in winter, or operate at very limited scale.

The attitude of these 48 individual vendors toward the project is dual. They agree that the road is necessary, and are happy that diversion of traffic will reduce the risk of car accidents, improve air and noise quality in the settlement, but at the same time fear that they will have to stop their business as the number of customers reduces. They sell own fruits, vegetables and bread directly in front of their houses and their income directly benefit from road users.

Most of them are skeptical that establishment of alternative businesses will be feasible in short term prospective. In their opinion this will be possible only in case of support from the State. The best solution suggested by the majority of individual vendors1 is the priority in job opportunities during road construction works.

To summarize, the survey confirmed that among all road side vendors, 48 individual vendors selling fruit, vegetables and bread are the most vulnerable to the possible change that may be incurred as result of proposed road project.

Measures to mitigate potential negative impact

1 In their opinion they or their family members must have priority during temporary employment. P a g e | 30

Resettlement Action Plan The RDMRDI is promptly ready to address this issue as suggested in the OP 4.122. The RDMRDI will deploy a Consultant to undertake social assessment, design measures to minimize and mitigate adverse economic.

The Consultant will survey these 48 individual vendors at mid-construction phase (and later on post construction phase). During the survey patterns similar to the baseline data3 (possessions and average monthly and/or annual consumption of HH and etc.) of the same 48 individual vendors will be collected and compared with already available baseline data.

The comparison analyses of the baseline data and data obtained during mid-construction survey will show difference and allow determination of change and trends of impact (negative and/or positive).

If negative impact trend is confirmed, the RDMRDI will conduct an additional survey to determine the areas (for rest and selling local goods) along the new road, where the local vendors will be allowed to sell their agricultural production.

The overall purpose of this activity is to minimize the negative impact on local population and increase their income with indirect benefit from the project.

2 OP 4.12 Section: Impact Covered, Footnote 5: "Where there are adverse indirect social or economic impacts, it is good practice for the borrower to undertake a social assessment and implement measures to minimize and mitigate adverse economic and social impacts, particularly upon poor and vulnerable groups. Other environmental, social, and economic impacts that do not result from land taking may be identified and addressed through environmental assessments and other project reports and instruments". 3 The survey results will serve as the baseline data. Although interviewees were reluctant to provide information on their daily income from the road side sales, the information on important patterns still have been obtained, such as composition of the household, gender, education and employment, possession of durable items, annual/monthly consumption patterns. P a g e | 31

Resettlement Action Plan 3.5 Gender issues 75. In the process of study of gender issues household member women of 25-65 age were surveyed (1 woman from a household, random selection out of those present. The women representing 84 households (67% households) expressed their opinion on gender issues.

76. To the question “Are you satisfied with the current situation of women in your village/town?” 30% of the women surveyed said that they are satisfied, 56% - dissatisfied, while the remaining 14% did not answer. 72% of dissatisfied women specified the hard work as the reason of dissatisfaction.

77. Women surveyed said that the persons responsible for the family budget in their families are: in 40% - men, in 15% - women and the rest did not answer this question. 13% of women said that their families are well-fed, 64% said that their families are well fed from time to time, 20% said that their families are poorly fed, while the remaining 3% did not answer the question about the family diet.

78. The interviewed women named the main health problem: among children - viral diseases, among adults - cardiovascular diseases. 97% of the surveyed women are aware of HIV/AIDS.

79. The women expressed their satisfaction with the possibility of making a variety of services as follows. Table 3.5:

Women Satisfaction by Services

Don’t Partially Satisfied Dissatisfied know/cannot satisfied assess Outpatient treatment 74% 12% 10% 4%

First-aid 76% 10% 10% 4% Purchase of drugs 65% 15% 17% 3%

Recreation and health-improvement 5% 4% 87% 4%

Taking a child to a preschool institution 88% 6% 2% 4% Taking a child to a school 98% 2% 0% 0% 80. The frequency of travel of surveyed women to various directions is given below. Table 3.6: Women Travel Frequency

Answers * Travel 1 2 3 4 5 6 7 Outside the region 1% 2% 2% 8% 18% 60% 9% To the region center 23% 12% 17% 33% 8% 7% 0%

Outpatient clinic/hospital 1% 1% 1% 14% 13% 62% 8%

Agrarian market 1`% 9% 15% 29% 10% 26% 11%

Other 4% 6% 6% 7% 4% 2% 71%

*) 1. everyday, 2 - sometimes in a week, 3 - at least once a week, 4 - 2-3 times a month; 5 - at least once a month, 6 - less than once a month, 7 –don’t know/no answer. 81. 52% of the women interviewed, said they are interested in getting jo b in the project, 4% are partially interested in it, 26% do not want to be employed in the project, while 12% don’t have an answer. 85%

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Resettlement Action Plan of women said that they have no social obstacle to start work in the project, while for the remaining 15% such obstacles exist (that shall be mainly due to the social restriction).

3.6 Assessment of Living Standards and Attitude towards the Project 82. The project affected persons were asked to make self-assessment of their current living standards. The following table summarizes self-assessments of the respondents.

Table 3.7: AP’s Assessment of Existing Living Standards Description Answer “Yes”

1- Irregular income 73% 2- Unsatisfactory food 73% 3- Lack of heating 32% 4- Lack of funds for children’s education 35% 5- Lack of funds for clothes 75%

83. The project affected persons were asked to express their attitude towards the road project. Overall, the attitude towards the project is positive (73 % assesses it positively). At the same time, the positive assessment of the road impact on the community level is relatively modest - 24%, which seems to be related to the substantial uncertainty in this respect (“I cannot assess” answers - 58%). Below are the actual survey data: the answers to the question “Your attitude towards the road project” are the following:

Table 3.7: AP’s Attitude towards the Project (General) Answer % 1 Strongly negative 1

2 Negative 9

3 Neither negative, nor positive 11

4 Positive 44

5 Strongly positive 29

6 Cannot assess 6

84. The answers to the question: “What do you think about the impact of the road project on the socioeconomic activity in your community?” were distributed as follows:

Table 3.8: Attitude to the Project (Community) Answer % 1 Strongly negative 1

2 Negative 2

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Resettlement Action Plan

3 Neither negative, nor positive 15

4 Positive 18

5 Strongly positive 6

6 Cannot assess 58

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Resettlement Action Plan 4 LEGAL AND POLICY FRAMEWORK 4.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement 85. In Georgia, the legislative acts given below regulate the issues of obtaining State ownership rights to privately owned land parcels based on the necessary public needs caused due to road constructions activities:

 The Constitution of Georgia, August 24, 1995 ( Last update 16 October 2013) The Civil Code of Georgia, June 26, 1997 (amend. 2000, 2002, 2003, 2004, 2005, 2006, 207, 2008, 2009, 2010, 2011, 2012, 2013, 2014)  The Law of Georgia on Cultural Heritage 8 May 2007 (amend. 2008, 2010, 2011, 2013, 2014)  The Law of Georgia on Notary Actions , December 4 2009 (amend. 2010, 2011,2012, 2013, 2014, 2015) Law on Public Health 27 June 2007 (amend. 2009, 2010, 2011, 2012, 2013, 2014, 2015)  The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996 (amend. 1997, 1998, 1999, 2000, 2003, 2004, 2007, 2010, 2012, 2014)  Law on Compensation of Land Substitute Costs and Damages due to Allocating Agricultural Land for Non- Agricultural Purposes 1997 (amend. 2005, 2006, 2007, 2009, 2010, 2011, 2013, 2014, 2015)  The Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal entities; 11 June 2007 (amend. 2007,2008,2009 2010, 2011, 2012) Law on state property 2010 (amend 2011, 2012,2013,2014)  The Law of Georgia on Public Register- No820 –IIs; December 19 of 2008; (amend.2009 2010, 2011, 2012, 2013, 2014, 2015)  The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999 (amend. 2005, 2007, 2010, 2013)  The Civil Procedural Code of Georgia, November 14, 1997(amend. 1998-2015)  The Law of Georgia on State property, June 21, 2010 86. Overall, the above laws/regulations provide that the principle of compensation at full replacement costs is reasonable and legally acceptable. The laws also identify the types of damages eligible to compensation and indicate that compensation is to be given both for loss of physical assets and for the loss of incomes. Finally, these laws place strong emphasis on consultation and notification to ensure that the APs participate in the process. Income loss due to loss of harvest and business closure will be compensated to cover net loss. The above-listed laws and regulations give the possibility of applying the following mechanisms for legal application of the property rights:

I. Obtaining the right of way without expropriation through the payment of due compensation (on the basis of negotiations or a court decision) prior to commencement of the activities. II. Expropriation which gives the possibility of obtaining permanent right to land and/or other real estate property on the basis of Eminent Domain Law and a court decision through the payment of due compensation. 87. Land will be acquired through eminent domain, first on the basis of negotiated settlement with individual affected entities. Should the negotiation fails, the expropriation process under the eminent domain will start and the expropriation procedures set out in the Law of Georgia “On the Rules for Expropriation of Ownership for Necessary Public Need” shall be applied.

88. Under the existing Law in Georgia and in accordance with the Law of Georgia “On the Rules for Expropriation of Ownership for Necessary Public Need” the expropriation shall be carried out based on

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Resettlement Action Plan the order of the Minister of Economy and Sustainable Development of Georgia and a court decision. The order of the Minister of Economy and Sustainable Development of Georgia will determine the case of public needs, and grant the expropriation entity rights to obtain land. Only the court shall determine a state body or local authorities and/or legal entity under the Public Law/Private Law to which the expropriation rights can be granted. The court decision should also include a detailed inventory of the assets to be expropriated and the provisions on the compensation payable to relevant land owners.

4.2 Involuntary Resettlement requirements under the World Bank Involuntary Resettlement Policy (OP 4.12) 89. Specific World Bank requirements concerning resettlement are contained in the Operational Policy (OP. 4.12) on Involuntary Resettlement that is based on the following principles:

o Involuntary resettlement should be avoided in all cases where feasible, and where it is not possible to avoid resettlement, it should be kept at a minimum; o Where it is necessary to carry out resettlement, it should be treated as a development programme providing efficient resources for a new investment to a displaced person; o Persons affected by resettlement shall be fully informed and shall have the opportunity to participate in procedures with a view to protecting and exercising the rights which they are entitled to; o Displaced persons shall be assisted in their efforts to improve their income and standards of living, or at least to restore them to and keep them at pre-displacement levels; o The obligation to assist displaced persons and to provide them with appropriate protection shall exist regardless of how they have acquired property and possession, i.e. regardless of their legality (thus, also when displaced persons have no legal basis and they are unlawful users); o Displaced persons shall be ensured full payment of replacement costs and a compensation for the property taken, in the amount which enables the compensation or replacement of the property taken with a new one.

90. The given Policies contain the obligation to provide support and assistance in the course of the compensation and resettlement process, during and after the resettlement process and also included in the Entitlement Matrix (see below).

91. Assistance during the compensation and resettlement process shall include:

o Assistance during the relocation of personal belongings; o Maintenance, transport, and/or sale of materials from the old facility; o Transport of household members with medical assistance where required; and o Assistance with the entering into possession of new real property. 92. As part of the quoted World Bank Policies, particular attention is paid to vulnerable groups of the population. These are groups of people who, under the impact of the Project, by virtue of gender, ethnicity, age, physical or mental disability, economic status, or social status may be more adversely affected by resettlement caused by the Project than other population groups, or who may be limited in their ability to claim or take advantage of resettlement assistance.

93. Consistent with paragraph 16 of OP 4.12, the following categories of persons will be qualified for compensation based on land ownership: a) Persons who have legal, formal rights on land (including legal title or customary and statutory rights of occupancy recognized under the Law), b) Persons who do not have formal legal rights on land at the time the census begins but have a claim to such land or assets provided that such claims are recognized under the national law or become recognized through a process identified in the resettlement and compensation plan, c) Persons who have no claim to land they are occupying or using.

94. Persons covered under a) and b) above are to be provided compensation for land they lose, and other assistance in accordance with the policy. Persons covered under c) above are to be provided with resettlement assistance in lieu of compensation for the land they occupy or use, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy or use the project area prior to a cut-off date established by the P a g e | 36

Resettlement Action Plan appropriate authorities and acceptable to the Bank (4 March 2015). All persons included in a), b) or c) above are to be provided with compensation for loss of assets other than land.

4.3 Comparison of Georgian Laws and Procedures on Land Acquisition and Resettlement and WB’s OP 4.12 requirements on Involuntary Resettlement 95. Overall, the legislation of Georgia adequately reflects the major provisions of the WB OP 4.12, but a few differences are to be noted. The most significant difference is that under Georgian legislation the emphasis is put on the definition of formal property rights and on how the acquisition of properties for public purposes is to be implemented and compensated while in the case of OP 4.12 emphasis is put both on the compensation of rightfully owned affected assets and on the general rehabilitation of the livelihood of affected People (AP) and Households (AH).

96. Because of this, the Bank’s safeguards policy on Involuntary Resettlement complement the Georgian legislation/regulation with additional requirements related to (i) the economic rehabilitation of all AP/AH (including those who do not have legal/formal rights on assets acquired by a project); (ii) the provision of indemnities for loss of business and income, (iii) and the provision of special allowances covering AP/AH expenses during the resettlement process or covering the special needs of severely affected or vulnerable AP/AHs. Also, under Georgian law negotiation is seen as an alternative to expropriation, whereas under OP 4.12 negotiation under threat of expropriation still qualifies as involuntary resettlement. In addition, the legislation of Georgia does not require any specific measure regarding the need to prepare RAPs based on extensive public consultations.

97. The differences between Georgia law/regulation and WB policy are outlined in the Table below: Table 4.1:

Comparison of Georgian Laws on LAR and WB’s OP 4.12

Georgia Laws and Regulations WB OP 4.12 Bridging Measure?? Land compensation only for titled Lack of title should not be a bar to According Entitlement matrix: landowners. In practice legalizable compensation and/or rehabilitation. Non- Owners with full land land owners are also compensated titled landowners receive rehabilitation. registration and owners/users of after they are issued with the legalizable land will be necessary papers provided with cash compensation at full replacement cost. Non- legalizable agricultural land users (squatters/encroachers) will not be compensated for the value of the land. However, they will be compensated at replacement value for any loss

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of assets on the land built before the cut-off date.

Only registered houses/buildings are All affected houses/buildings are compensated According Entitlement matrix: compensated for damages/demolition for buildings damages/demolition caused by a All AHs regardless of legal caused by a project project ownership/ registration status (including legalizable and Informal Settlers) will be compensated in cash at full replacement costs free of depreciation and transaction costs. Additionally, all such Ahs will receive allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months

Crop losses compensation provided Crop losses compensation provided to According Entitlement matrix: only to registered landowners. landowners and sharecroppers/lease tenants For all AHs regardless of legal and any informal users, whether registered or status (including legalizable and not Informal Settlers) crop will be compensated in cash at gross market value of actual or expected harvest

Land Acquisition Committee in RDMRDI Complaints & grievances are resolved Complaints & grievances will is the only pre-litigation final authority informally through community participation in be resolved informally through to decide disputes and address the Grievance Redress Committees (GRC), community participation as complaints regarding quantification Local governments, and NGO and/or local-level described in the RAP and assessment of compensation for community based organizations (CBOs). the affected assets.

Decisions regarding land acquisition PAPs are to be fully informed and have the PAPs will be fully informed and and resettlement are discussed only opportunity to participate in procedures with a have the opportunity to between the landowners and the Land view to protecting and exercising the rights participate in procedures with Acquisition Authorities. which they are entitled to in line with the above a view to protecting and stated provisions of OP 4.12. exercising the rights as described in the RAP

No provision for income/livelihood WB policy requires rehabilitation for Rehabilitation for rehabilitation, allowances for severely income/livelihood, severe losses, and for income/livelihood, severe losses, affected or vulnerable APs, or expenses incurred by the APs during the and for expenses incurred by resettlement expenses. relocation process. the APs during the relocation process will be provided according to Entitlement matrix.

No specific plan for public Public consultation and participation is a Public consultation and consultation is provided under the continuous process at conception, preparation, participation will be a Georgian laws implementation and post continuous process as

implementation. described in the RAP

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Resettlement Action Plan 98. To reconcile the gaps between Georgia laws/regulations and WB’s OP 4.12 the RDMRDI has drafted this RAP for the Project, ensuring compensation at replacement cost of all items, the rehabilitation of informal settlers, and the provision of subsidies or allowances for AHs that may be relocated, suffer business losses, or may be severely affected.

4.4 Principles and Procedures of Land Acquisition 99. The overarching objective of the Project in relation to land and asset acquisition is to assist the project affected populations (PAPs) in restoring their livelihoods at least to the level equal to the pre-project level. Specific principles that apply include:

 Construct the road to avoid residential areas wherever possible to minimize physical relocation of people, and select alignments that minimise acquisition of privately or publicly held productive land;  Adopt design standards that minimise the need to impose land use restrictions on adjoining areas;  Develop fair and transparent procedures, as defined in the Entitlement Matrix in this RAP to determine compensation for (i) temporary loss of land/ assets during construction; (ii) permanent acquisition of land and assets; and (iii) restrictions on use of land that may be applied to areas adjoining the corridor;  Acquire land (or right to use land) through negotiated agreements and with the use of the power of eminent domain only as a last resort. Even if PAPs agree to negotiate and reach an agreement, they are still covered under this RAP and WB due diligence requirement.  Upon completion of construction, restore land as best as possible to its original condition in the event of temporary disruption so as to enable landowners/users/lessees to resume their pre-project activities;  Keep affected people and communities fully informed about the project, the process that will be followed to acquire and compensate for land, and their related rights and avenues for redress.  Ensure that grievances PAPs may have will be redressed adequately and that solutions in line with principles laid out in this RAP be employed;  All PAPs, without regard to legal status of property, will receive support of various kinds, as per the principles set out in the Entitlement Matrix, to assist them in their efforts to maintain their livelihoods and standards of living prevailing prior to the Project. Those who illegally own land will not be compensated for loss of land, but will receive compensation for loss of other assets which had been established on their own finance, and for loss of income such that they are also assisted in their efforts to maintain their livelihoods. PAPs will be notified of the project implementation schedule and consulted regarding the principles of land acquisition and loss of or damage to assets.  Damages to assets, such as standing crops, trees, fences and kiosks, and loss of income, including loss of harvest, will be minimized, and where inevitable, will be compensated without regard to legal status of ownership according to the Entitlement Matrix provided in this RAP.  The contractor is responsible for repairing any accidental damage of property to non-acquired assets. 100. Marketing research was conducted during RAP preparation to assess the prevailing market prices of land, construction materials for affected structures, crops and other relevant items, and was used to determine compensation. This will additionally ensure that the market prices plus any transaction costs will allow PAPs to purchase replacement land.

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Resettlement Action Plan 101. Loss of income and assets will be compensated on replacement value, which includes market value plus taxes and transaction costs, and without tax, depreciation or any other deduction.

102. The final RAP will be submitted to and cleared by the Bank prior to the execution of civil works for relevant sections.

103. The details of land acquisition procedure will be spelled out in the RAP, inclusive of the following:

 Initial consultation with PAP to notify the project and its impact  Census, geographic survey and socioeconomic survey of PAP  Determination of PAP and types/ scale of impact  Development of compensation package and drafting of RAP  Consultation with PAP  Negotiation with PAP and payment of compensation  If the negotiation with PAP fail, the applicable legislation of property expropriation will be used.  Compensation/rehabilitation measures will be implemented before land take for project purposes. 104. According to the applicable land acquisition legislation of Georgia, the complete and accurate registration of privately owned land is a necessary prerequisite for the acquisition of land required for the project by the organizations implementing the necessary infrastructural projects. The Roads Department of the Ministry of Regional Development and Infrastructure of Georgia, will acquire privately owned land through negotiations, as far as possible, based on the informal consultations with the affected persons (including those lacking the legal title of the land). During the negotiations, the adequate and fair price of the land and/or other assets will be offered.

105. The Roads Department of the Ministry of Regional Development and Infrastructure of Georgia, will ensure the open process of negotiations with the affected persons, and will do its best endeavors to succeed. Just in case, if the negotiations fail, the applicable legislation of property expropriation land will be used for the expropriation of land.

106. The Land Acquisition and Resettlement working group of the Roads Department which is assisted by the district Land Acquisition and Resettlement team will hold talks with the affected persons about compensation. In the case of successful negotiations, sale and purchase agreements will be signed with the legalized owners of purchased parcels of land, while the entitlement agreement on assets and income compensation/rehabilitation will be signed with the affected persons. All complaints of the relocation affected persons will be determined by the grievance mechanism provided by the project (see section 8 below)

107. In the case of failed negotiations despite the grievance mechanism involved, the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia will petition the district court for the expropriation process.

108. The Roads Department of the Ministry of Regional Development and Infrastructure of Georgia will provide new maps and drawings with cadastral, and legal details, which are necessary for the legalization to interested owners subject to legalization. This process will be continued by the local administration which will verify the ownership certificates according to those maps and the land will be finally registered at the regional registry office of the National Agency of Public Register before the issuance of the project compensation. Procedures of land acquisition for the project are included in Appendix 1.

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Resettlement Action Plan 5 COMPENSATION ELIGIBILITY AND ENTITLEMENTS 5.1 Compensation Matrix 109. LAR tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with both Georgia laws and regulation and WB OP 4.12. A summary entitlements matrix is included in Table 2 below.

Table 5.1: Compensation Matrix Type of Loss Application Definition of APs Compensation Entitlements

Land

Permanent of AH losing agricultural land Owner with full registration Cash compensation in cash at full los regardless of impact severity replacement cost or replacement land of s agricultural land same value of land lost and at location acceptable to APs where feasible. The preferred option is cash compensation as the land-for-land option is not used since there are no state reserves of public agricultural land which was privatized during the land reform. If residual plots become unusable the project will acquire it in full if so the AP desires.

Legalizable Owner These AP will be legalized and provided with cash compensation at full replacement cost.

Non-legalizable owners Non-legalizable APs losing agricultural land (squatters/encroachers) plot, which is the only land plot owned by AH and provides main source of income for AH, will be compensated with a single self- relocation allowances in cash equal to 1 year of minimum subsistence income.

Non-Agricultural Land AH losing their Owner with full registration Cash compensation at full replacement cost commercial/ residential or replacement land of the same value of land land lost and at location acceptable to APs where feasible.

Legalizable Owner APs will be legalized and provided with cash compensation at full replacement cost.

Renter/Leaseholder Rental allowances in cash for 3 months.

Non-legalizable owners Non-legalizable APs losing land plot, which is (squatters/encroachers) the only land plot used for residence or providing main source of income for AH, will be compensated with a single self-relocation allowances in cash equal to 1 year of minimum subsistence income.

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Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements

Buildings and Structures

Residential and non All AHs regardless of legal All impacts will be considered as full impacts residential ownership/ registration status disregarding the actual impact percentage. structures/assets (including legalizable and Impacts will be compensated in cash at full Informal Settlers) replacement costs free of depreciation and transaction costs. Additionally, all such AHs will receive allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months (see below)

Loss of Community Infrastructure/Common Property Resources

Loss of common Community/Public Assets Community/Government Reconstruction of the lost structure in property resources consultation with community and restoration of their functions

Loss of Income and Livelihood

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Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements

Allowances

Severe Impacts >10% income loss All severely affected AHs losing Agricultural income: Two-year yield from more than 10% of affected affected land agricultural land plot Non agriculture income: 1 additional (including informal settlers) compensation for 3 months of minimum subsistence income.

Physical Resettlement Transport/transition costs All AHs to be relocated Provision of allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income.

Vulnerable People AHs below poverty line, Allowance equivalent to 3 months of Allowances headed by Women, disabled or minimum subsistence income** and elderly employment priority in project-related work (persons with such ability)

Temporary Loss

Unforeseen Road Department and the construction resettlement impacts, contractor will address and if any mitigate/compensate unforeseen resettlement impact during project

Resettlement Action Plan 5.2 Eligibility 110. APs entitled for compensation or at least rehabilitation provisions under the Project are:

 All APs losing land either covered by legal title/traditional land rights, legalizable, or without legal status;  Tenants and sharecroppers whether registered or not;  Owners of buildings, crops, plants, or other objects attached to the land; and  APs losing business, income, and salaries. 111. Compensation eligibility is limited by a cut-off date established as March 4, 2015. APs who settle in the affected areas after the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice, requested to vacate premises and dismantle affected structures prior to project implementation. Their dismantled structures materials will not be confiscated and they will not pay any fine or suffer any.

5.3 Definition of Entitlements 112. Entitlement provisions for APs losing land, houses, and income and rehabilitation subsidies will include provisions for permanent or temporary land losses, buildings losses, crops and trees losses, a relocation subsidy, and a business losses allowance based on tax declarations and/or existing minimum market rates. These entitlements are detailed below:

 Agricultural land impacts will be compensated at replacement value either with replacement plots of the same value of the land lost and at location acceptable to APs where feasible, or in cash free of transaction costs at current market rates or (if no land markets are active) based on the reproduction cost of the affected land. The preferred option is cash compensation as the land-for- land option is not common since there are no state reserves of public agricultural land, which was privatized during the land reform. When >10% of project affected agricultural land plot is affected, AP (owners, leaseholders and sharecroppers) will get an additional allowance for severe impacts equal to the market value of a 2 year’s gross yield of the land lost. In case of severe impact on other income, the APs will be paid additional compensation corresponding to 3 months of minimum subsistence income. Transaction taxes/fees will be paid by the EA or waived. Legalizable APs will be legalized and paid as titled owners. Non-legalizable APs losing agricultural land plot, which is the only land plot owned by AH and provides main source of income for AH, will be compensated with one time self-relocation allowances in cash equal to 1 year of minimum subsistence income. Residual non-affected sections of a plot that becomes inaccessible or unviable to use after acquisition will also be compensated.  Non agricultural land (Residential/commercial land). Legal settlers will be compensated at replacement rate either with replacement plots of the same value as plots affected and at location acceptable to APs where feasible, or in cash at current market rates, free of transaction cost. The cash at market rates option has been selected for the Program. Renters/leaseholders will receive a 3 months rent allowance. Non-legalizable APs losing land plot, which is the only land plot used for residence or providing main source of income for AH, will be compensated with one time self- relocation allowances in cash equal to 1 year of minimum subsistence income. This allowance is to be calculated based on a 5-member family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at the time of RAP approval.  Houses, buildings, and structures: Compensation for houses falling within the land acquisition corridor will be provided cash compensation at replacement cost based on cost of construction material, labour, transport of materials and specific features of the buildings free of deductions for

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Resettlement Action Plan depreciation, transaction costs or salvaged materials. All relevant APs are entitled to this provision by default irrespective of the registration status of the affected item.  Crops: Cash compensation at current market rates for the gross value of 1 year’s harvest by default3. Crop compensation will be paid both to landowners and tenants based on their specific sharecropping agreements.  Trees: Cash compensation at market rate based on type, age and productivity of trees. Businesses: If business is lost permanently it will be compensated in cash equal to a 1-year income based on tax declaration or, if unavailable, based on the official minimum subsistence income. Temporary business losses will be compensated in cash for the business interruption period based on tax declaration or, if unavailable, official minimum subsistence income for 3 months. The construction company is responsible for the temporary damages/impacts occurred during the construction.  Affected business workers/employees: Indemnity for lost wages for the period of business interruption up to a maximum of 3 months.  Relocation allowance: APs forced to relocate will receive a relocation subsidy sufficient to cover transport costs and living expenses for 3 months.  Vulnerable People Allowance: Vulnerable people (APs below poverty line and women or elder headed households without any other bread-winner member of family) will be given an allowance corresponding to 3 months of minimum subsistence income and other members of such AHs will have priority in employment in project-related jobs. The allowance is to be calculated based on a 5- member family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at the time of RAP approval. Also, the impact will be monitored and additional assistance provided on “as needed” basis.  Severe Impacts Allowance: APs losing >10% of agricultural land or >10% of non-agricultural income will receive a severe impacts allowance. When >10% of an AP agricultural land is affected, AP (owners, leaseholders and sharecroppers) will get an additional allowance for severe impacts equal to the market value of a 2 year’s gross yield of the land lost. In case if this value is less than 3 months subsidence minimum, than the severely affected APs will receive allowance equal to 3 months minimum subsidence. For cases of severe impact on non- agricultural income (from business, renting/leasing etc.), the APs will be paid additional compensation corresponding to 3 months of minimum subsistence income. This allowance is to be calculated based on a minimum subsistence income for 5-member family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia at the time of RAP approval. Also, the impact will be monitored and additional assistance provided on “as needed” basis. This is in line with the RPF for SLRP III.  Community Structures and Public Utilities: Will be fully replaced or rehabilitated so as to satisfy their pre- project functions.  Temporary impact during construction: All land required for temporary use is to be obtained by the civil works Contractor through voluntary negotiations (e.g., willing buyer-willing seller basis). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored

3Compensation by default means that crop compensation will be paid irrespective of whether the crops were already harvested or not at the time of impact. This covers also compensations for income expected from crops on Affected agricultural land permanently used for crop cultivation during the recent years. In case the land was permanently used for crop cultivation, but no crops have been planted (due to need of rest to this land or illness ofthe farmer or any justifiable reason) for the year, when the inventory of losses was conducted, the land parcel still will be considered as designed for crop cultivation and relevant compensations will be paid

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5.4 Assessment of Compensation Unit Values 113. The methodology for assessing unit compensation values of different items is as follows:

(i) Agricultural Land will be valued at replacement rates according to two different methodologies depending on whether active land markets in affected areas exist or not. a. Where active land markets exist land will be compensated at replacement rate based on a survey of land sales in the year before the impact survey. b. Where active land markets do not exist land will be compensated based on the reproduction cost of a plot with equal features, access and productivity to the plot lost (see Appendix 3). (ii) Houses/buildings will be valued at replacement value based on construction type, cost of materials, type of construction, labour, transport and other construction costs. No deduction for depreciation and transaction costs will be applied. (iii) Annual crops will be valued at net market rates at the farm gate for the first year crop. In the eventuality that more than one-year compensation is due to the APs the crops after the first will be compensated at gross market value. (iv) Trees will be valued according to different methodologies depending whether the tree lost is a wood tree or a productive tree. a. Wood trees will be valued based on age category (a. seedling; b. medium growth and c. full growth) and wood value and volume. b. Fruit/productive trees will be valued based on age (a. seedling; b. adult-not fruit bearing; and c. fruit bearing). Stage (a) and (b) trees will be compensated based on the value of the investment made; stage (c) trees will be compensated at net market value of 1 year income x number of years needed to grow a new fully productive tree. 114. The unit compensation rates was assessed by the authorized independent evaluator based on clear and transparent methodologies. The assessed compensation rates will then be verified and certified by the resettlement division in RDMRDI. Short methodology description is given in RAP, a detailed report of the independent appraiser (in Georgian) is submitted to the RD, assessed by head of Resettlement and Environmental protection division and a certified specialist in asset valuation.

5.5 Expropriation and Legalization 115. Acquisition of land through expropriation will be pursued under the Program only in extreme cases when negotiations between APs and RDMRDI fail.In these cases, however, RDMRDI will not occupy the needed plots until: (i) the proper judicial process as defined by the law is initiated; (ii) a court injunction has been obtained and properly communicated to the APs; and (iii) the compensation/rehabilitation amounts are deposited in an escrow account. No land acquisition will take place until the compensation/rehabilitation amounts envisaged in the approved RAP are deposited in an escrow account in a treasury (project account/ or the EA’s account). The deposited funds will be paid to PAP upon the court decision on expropriation or in case if the PAP decides to drop the case and sign the agreement with the RDMRDI.

116. APs who do not have proper registration or titles but are rightfully owners of the plots they lose, will be legalized and registered in the land records. After this is done they will receive full compensation as the legal APs.

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Resettlement Action Plan 6 INSTITUTIONAL ARRANGEMENTS 117. The compensation/rehabilitation program described in this RAP involves distinct processes and dynamics and different actors. The Road Department of the Ministry of Regional Development and Infrastructure of Georgia (RDMRDI) will be the Executing Agency (EA) having the lead responsibility for road construction, as well as the implementation of the RPF and subsequently this RAP. RDMRDI with the assistance of the consultants will develop and implement the RAP for each project based on the policy and procedures set out in the RPF for SLRP III (link)4. In addition to the RDMRDI, a number of other government departments and private agents will play an instrumental role in the design, construction and operation of the project. Pursuant to the active legislation, the Ministry of Natural Resources and Environmental Protection is responsible for environmental issues. The Ministry of Justice is responsible for legal matters regarding land ownership, and National Agency of Public Registry (NAPR) within the Ministry of Justice is in charge of the registration of land ownership and its transfer through purchase agreement from landowners to the Road Department. The local government at Sakrebulo and village level will also be involved. The role of each of these actors is detailed below.

6.1 RDMRDI 118. RDMRDI has overall responsibility for the MFF. This includes preparation, implementation and financing of all LAR tasks and cross-agency coordination. RDMRDI will exercise its functions through its existing resettlement division (RRDRD) which will be responsible for the general management of the planning and implementation of all RAP tasks. Roads Department will timely provide feedback on all inquiries PAPs might have regarding the project. Contact information for PAPs : RDMRDI , The Land Acquisition and Resettlement Division, №12, Al. Kazbegi ave., Tbilisi; Tel.

119. RRDRD. The RRDRD staffed with a sufficient number of LAR specialists, will be tasked with all LAR coordination tasks at central and local government level and will be responsible for: (i) screening the projects and ensuring that the RAP are properly prepared and sent to WB for review, (ii) supervising the consultants that prepare the RAP and assist in it implementation; (iii) establishing needed LAR capacity at each regional level office where LAR is relevant; (iv) ensuring proper internal monitoring; and (v) hire, following WB recommendation the external monitoring agency. RDRD will also provide all needed documentation to ensure the prompt allocation of LAR budgets to the APs and will maintain the coordination of all LAR related activities. Two specialists will work on the present RAP implementation - specialist from RRDRD and specialist from Gurjaani Municipality. RRDRD will provide all the neccassry equipment, materials, transport means and technical support to these specialists.

120. Local RDMRDI Offices. The Regional RDMRDI offices will assist the activities of the RRDRD with one dedicated officer who will facilitate the communication between the RRDRD, the local governments and the APs and assist in implementing LAR tasks related to the local administration.

6.2 Consultants 121. Different types of consultants will be involved in RAP tasks:

a) PPTA consultants: These include international and/or local LAR capacity and needed survey

4 http://www.georoad.ge/uploads/files/SLRP%20III%20RPF51.pdf

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Resettlement Action Plan teams to carry out field-surveys and prepare the needed RAP. b) Design consultants: These will include international and local LAR capacity and needed survey teams to carry out the same activities for updating/finalizing the RAP of first tranche based on the detailed engineering design and will also prepare RAP. c) Supervision consultants: These include international and local LAR capacity and needed survey teams and will assist in overall Project supervision. d) Social Safeguards Consultant (SSC): This consultant will be hired to conduct the external monitoring and evaluation of the RAP implementation. In the absence of a supervision consultant, the SSC will continue to carry out the external monitoring and evaluation for all the RAPs. e) Independent Asset valuators: These include accredited private firms to be hired by the PPTA or Design consultants to carry out the evaluation of affected assets.

6.3 Local Governments 122. Local government especially at Sakrebulo level has direct jurisdiction for land administration, valuation, verification and acquisition. To confirm the surveys and the asset valuations carried out by the LAR consultants RDMRDI through its consultants will establish in Sakrebulo where RAPs are to be implemented a Sakrebulo Level LAR team which will have designated officials from the Sakrebulo administration. The LAR team at Sakrebulo level will have close coordination with the village administration for the LAR activities. Effective inter-agency coordination at Sakrebulo and village level will be assigned to the regional level RDMRDI.

6.4 Other Agencies and Institutions 123. Several other institutions will participate to LAR preparation/implementation of LAR tasks (see Figure 1 below). These are:

(i) Ministry of Finance. RAP implementation budgets will be provided to RDMRDI by the Ministry of Finance following the official approval of the final RAP. (ii) Ministry of Justice. The Ministry of Justice is responsible for legal matters regarding land ownership, and National Agency of Public Registry within the Ministry of Justice is in charge of land registration and transfer ownership rights through purchase agreement from landowners to the Road Department. (iii) Local Courts. In case of expropriation issues, RDMRDI will have to rely on the Gurjaani Rayon Court which based on due legal process will have to review the expropriation cases, carry out a hearing and decide whether the land can be expropriated and at what price. In order to expedite the expropriation process RDMRI will negotiate with the courts a fast-tracked action plan. (iv) WB. Besides regular supervision of the project activities, the WB also reviews this RAP and clear contract awards signing and initiation of civil works to all subprojects with RAPs developed.

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Resettlement Action Plan

Fig. 3: Organizational chart

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Resettlement Action Plan 7 PUBLIC CONSULTATION, PARTICIPATION AND DOCUMENTS DISCLOSURE 124. Concerned officials of centre, district/Sakrebulo, municipalities and villages/Sakrebulo have been informed about the Project, and their assistance was solicited to conduct the inventory of affected assets and the Census of APs and the DMS. Also, prior to the finalization of the RAP and its submission to Project authorities, the APs will be thoroughly informed on the results of the Census and DMS, and their preferences on compensation or other resettlement assistance will be given due consideration. The processes and mechanisms ensuring the active involvement of APs and other stakeholders was detailed (see appendix 2 with date, list of participants, and minutes of consultation meetings).

125. Georgian and English versions of the RAP will be disclosed on the RDMRDI website and at RDMRDI head office. The RAP in Georgian will also be disclosed at the Gurjaani municipality office and at local governments’ offices. . The English version will be disclosed on the WB website prior of starting of the Project implementation. A pamphlet in Georgian, summarizing compensation eligibility and entitlement provisions, will be sent to all AP/AHs before the initiation of the compensation/rehabilitation process and before signing contract awards. The consultation process will be continued throughout the civil works and the road operational period.

126. In the process of preparation of this RAP, public consultations with the Gurjaani public representatives (both on the municipal level and on the level of affected territorial authorities) were held, on February 10-13, 2015 at which issues related to the Gurjaani bypass road project were addressed. The Gurjaani region administration, representatives of the different strata of the community and local media took part in the meeting held at the municipal level. The consultant of Social Safety of Resettlement Department of Environmental Protection Agency of Roads Department of the Ministry of Regional Development and Infrastructure of Georgia, the head of Resettlement Department of Resettlement and Environmental Protection Agency and the specialist of Resettlement and Environmental Protection Agency attended the meeting held at the municipal level. The project affected persons were invited to participate in the meetings held at the territorial authorities level.

127. A total of 174 persons took part in the public consultations. Public consultations were held in the following order:

- February 10, 2015 - Meeting at the Gurjaani municipality (47 participants); - February 12, 2015 - Meeting with representatives of the territorial authorities Bakurtsikhe and Kolagi (51 participants); - February 12, 2015 - Meeting with representatives of the territorial authorities Vejini, Dzirkok and Chandari (31 participants); - February 13, 2015 - Meeting with representatives of the territorial authorities of the town of Gurjaani and village Gurjaani (27 participants); - February 13, 2015 - Meeting with representatives of the territorial authorities Chumlaki and Akhasheni (18 participants). 128. At the meetings the public representatives were informed about the main features of the engineering design of the project, the basic principles of land acquisition and resettlement according to the project framework; they also received answers to their questions. At the end of the meetings held at the territorial authorities level the attendees were interviewed by groups in order to identify the public opinion on various issues related to the project (see Appendix 2).APs participated in the meetings held at Sakrebulo level. The meeting held in Gurjaani Municipality was also attended by the public representatives of Gurjaani Rayon. The meeting participants were informed about the commencement date (14 February 2015) of field survey (field measurements, inventory and socio-economic survey). In total 137 APs participated in the meetings. APs have been individually informed about the date of field survey on their land plots by the representatives of Sakrebulo level local authorities.

129. Consultations with APs have been also conducted individually during the field survey works on their land plots.

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Resettlement Action Plan 8 COMPLAINTS AND GRIEVANCES 130. A grievance mechanism will be available to allow an AP appealing any disagreeable decision, practice or activity arising from land or other assets compensation and also with social safeguard issues. APs will be fully informed of their rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey and during the whole process of project implementation. Care will always be taken to prevent grievances rather than going through a redress process. This can be obtained through careful LAR design and implementation, by ensuring full participation and consultation with the APs, and by establishing extensive communication and coordination between the affected communities, the EA, and local governments in general. Complaint & Grievances will be addressed through the process described below in Table 3.

131. The GRM consist of project-specific systems established at the municipal level and regular system established at RDMRDI. Grievance Redress Committee (GRCE) established at municipal level as a project-specific instrument, is functional for the whole period of the project implementation. Grievance Redress Commission (GRCN) is formed as an informal structure within the RDMRDI to ensure grievance review, resolution and record.

132. Grievance Redress Commission (GRCN) is formed by the order of the Head of RDMRDI as a permanently functional informal structure, engaging personnel of RDMRDI from all departments having regard to the LAR issues and complaint resolution. This includes top management, Safeguard or LAR Units, Legal Departments, PR department and other relevant departments (depending on specific structure of the IA). The GRCN is involved at the Stage 2 of grievance resolution process. The Order is also state that if necessary representative of local authorities, NGOs, auditors, APs and any other persons or entities can be included in the commission as its members.

133. A Grievance Redress Committee (GRCE) is an informal, project-specific grievance redress mechanism, established to administer the grievances at Stage 1. This informal body will be established at community level in Gurjaani Municipality (village/community authority). The GRCE shall include representatives of Municipal LAR Teams and local communities. The RDMRDI representative in the Municipal LAR Team shall coordinate the GRCE formation. He/she will then be responsible for the coordination of GRCE activities and organizing meetings (Convener). In addition, GRCE shall comprise village Rtsmunebuli or his/her representative, representatives of APs, women APs (if any), and appropriate local NGOs to allow voices of the affected communities to be heard and ensure a participatory decision-making process.

134. GRCEs will be established at the Gurjaani municipality level with an office in accordance to the order from the RDMRDI with provision of 7 members of following composition:

(i) Representative of Resettlement Unit of IA : Convener; Contact Person

(ii) Representative Rayon LAR team : Member Secretary

(iii) Representative of Gamgebeli of Gurjaani rayon : Member

(iv) Representative of Aps : Member

(v) Representative of NGO : Member

(vi) Representative of Civil Works Contractor : Member

(vii) LAR Specialist of Supervision Consultants : Member

135. Representative of the Resettlement Unit of IA is coordinating the work of the Committee and at the same time he/she is nominated as a contact person for collecting the grievances and handling grievance log. The local authorities at the municipal level, civil works Contractor, Supervising Company (Engineer), as well as APs (through informal meetings) are informed about the contact person and his contact details are available in offices for all mentioned stakeholders. P a g e | 50

Resettlement Action Plan 136. The Contact Person collects and records the grievances, informs all members of the Committee and the management of RDMRDI regarding the essence of the problem, engages the relevant stakeholders in discussions with the applicant of grievance, handles the process of negotiation with AP at the stage 1 of the grievance resolution. The Contact Person prepares the minutes of meetings and ensures signatures. In case if the grievance is resolved at the stage 1, the Contact Person records the fact of closing the grievance in Grievance Log and informs RDMRDI management about this in written. If the complainants are not satisfied with the GRC decisions, they can always use the procedures of Stage 2 of grievance resolution process. In that case the Contact Person helps the AP in lodging an official complaint (the plaintiff should be informed of his/her rights and obligations, rules and procedures of making a complaint, format of complaint, terms of complaint submission, etc).

137. The APs should be informed about the available GRM. This could be achieved through implementing information campaigns, distributing brochures (e.g. Communication Plan), keeping all focal points up-to-date & maintaining regular communication with them, allowing multiple entry points for complaints, introducing forms for ease of reporting complaints (see Table. 8.1).

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Resettlement Action Plan Table 8.1: Grievance Resolution Process

Steps Action level Process Step 1 Negotiations with APs The complaint is informally reviewed by the grievance redress committee (GRCE), which takes all necessary measures to resolve the dispute amicably. Contact: GRCE, Gurjaani municipality, local liaison consultant; Access: in person, by writing, by phones; Expected maximum response times: 3 days

Step 2 GRC Resolution If the grievance is not solved during the negotiations, the GRCE will assist the aggrieved APs to formally lodge the grievances to the GRCE. The aggrieved APs shall submit their complaints to the GRCE within 1 week after completion of the negotiations at the village level. The aggrieved AP shall produce documents supporting his/her claim. The GRCE member secretary will review the complaint and prepare a Case File for GRCE hearing and resolution. A formal hearing will be held with the GRCE at a date fixed by the GRCE member secretary in consultation with Convenor and the aggrieved APs. On the date of hearing, the aggrieved AP will appear before the GRCE at the Gamgeoba office for consideration of grievance. The member secretary will note down the statements of the complainant and document all details of the claim. The decisions from majority of the members will be considered final from the GRCE at Stage 1 and will be issued by the Convenor and signed by other members of the GRCE. The case record will be updated and the decision will be communicated to the complainant AP. Contact: GRCE, Gurjaani municipality, local liaison consultant Access: in person, by writing, by phones; Expected maximum response times: 10 days.

Step 3 Decision from central If any aggrieved AP is unsatisfied with the GRCE decision, the next RDMRDI option will be to lodge grievances to the RDMRDI at the national level. The RDMRDI shall review the complaint in compliance with the procedures specified in the Administrative Code of Georgia. GRC should assist the plaintiff in lodging an official complaint (the plaintiff should be informed of his/her rights and obligations, rules and procedures of making a complaint, format of complaint, terms of complaint submission, etc). The plaintiff shall be informed of the decision. Contact: GRC, RDMRDI, social safeguard consultant; Access: by writing; Expected maximum response times: 2 weeks.

Step 4 Court decision If the RDMRDI decision fails to satisfy the aggrieved APs, they can pursue further action by submitting their case to the appropriate court of law (Rayon Court). The aggrieved AP can take a legal action not only about the amount of compensation but also any other issues, e.g. occupation of their land by the contractor without their consent, damage or loss of their property, restrictions on the use of land/assets, etc. Contact: Court; Access: by writing ; Expected maximum response times: unknown.

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Resettlement Action Plan 138. RU of RDMRDI headquarters will keep record of complaints received for its use as well as for review by the WB during regular supervisions.

Acquisition Court

Failed

Road Department

Failed Complaint Payment

Grievance Commission

Failed

Negotiators Succeeded negotiations Execution of

Project Affected person

Fig. 4. Redress and grievance

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Resettlement Action Plan 9 IMPLEMENTATION SCHEDULE 139. The time schedule for the implementation of this RAP has been prepared by the Ministry of Regional Development and Infrastructure Ministry in consultation with the Roads Department. All activities related to the RAP implementation have been planned so as to ensure payment of compensation before the relocation and beginning of construction operations.

140. The legal status of the project affected land was determined as a result of the activity related to the acquisition and resettlement study and through searching the ownership certificates. In frames of this research the land owners having the documents certifying the title of the land to be purchased, and those without such documents, but subject legalization were identified.

141. This RAP is final. The tasks of land acquisition and resettlement plan are divided as follows:

 Final preparation, that includes the approval of the plan, different initial tasks, such as legalization of the affected landowners subject to legalization and signing agreements with them;  The plan implementation, that includes the finalization of the agreements, claiming corresponding compensation and payment of allowances and compensations;  Implementation assessment. Public consultations, internal monitoring and grievance will be conducted periodically during the project. 142. At the same time, the main stages of the RAP implementation are:

 approval of land acquisition and resettlement plan;  signing agreements;  notification on the consent of the beginning of construction operations;  start of construction operations. 143. Further evaluation of the project implementation will be carried out on completion of the activity provided by this plan.

144. The Resettlement Administration of the RDMRD will establish appropriate institutions, the Land Acquisition and Resettlement Commission, the working group/LAR team, the grievance commission, other necessary units.

145. The implementation timetable is given in the following table.

Table 9.1: Implementation Timetable

Months

Events 1 2 3 4 5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Completion of RAP preparation

Public consultations/ongoi ng engagement’s

RAP review and approval

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Resettlement Action Plan

RAP disclosure

Construction contract

RAP budget allocation

Land legalization

Assets acquisition : stage 1

Assets acquisition: stage 2

Assets acquisition: stage 3

Transfer to the accounts of PAPs

Depositing in special cases

Grievance

Legal proceeding in court

Relocation of PAPs

Internal monitoring

External monitoring

Start of construction operations

146. Construction works will start after completion of the preparatory work. These objectives are:

 execution of agreements with affected persons;  information dissemination and consultations;  grievance;  transfer of compensation and assistance to bank accounts of affected persons;  registration of land demarcated for the project on behalf of the Roads Department;  compliance and reporting review;  notification of start of the construction operations; ;  monitoring. Construction company also will have obligation under its contract to compensate any damage/loss to PAPs even in case if there is no actual resettlement but the loss/inconvenience happens during the works.

147. Further evaluation of implementation will be made a year after the RAP implementation.

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Resettlement Action Plan 10 COSTS AND BUDGET 10.1 Introduction 148. The tentative costs of the Resettlement Plan implementation is the total of the due compensation and benefits costs, the administrative costs and contingencies. The implementation administrative expenses include the administrative expenses related to the implementation of the Resettlement Plan. The contingencies (10% of total value) are also included in the budget to take account of changes in the costs in the negotiation phase.

149. In case of the excessive estimate of costs the Roads Department shall timely ensure the attraction of extra funds. The Roads Department in coordination with the Ministry of Finance will be responsible for taking into account of the resettlement plan costs when drawing up the annual budget in advance.

150. Below are given the estimates related to the expenses of the different types of resettlement plan by both the entitlement and compensation rates.

151. The methodological principles for determining compensation rates are set out in Appendix 5.

10.2 Budget 10.2.1 Land Compensation 152. The amount of compensation for the land was established in consideration of location of the affected areas (the Gurjaani Municipality, the designed road route). The land is divided into three types: agricultural (non-irrigated arable), household plots and industrial/commercial land. The following table shows the amount of land compensation.

Table 10.1: Land compensation

Type of land Compensated area Compensation rate Compensation (GEL) (sq. m) (GEL/sq. m)

Agricultural 180163 3.3 594537.90

Household plot 8469 5.61 47511.09

Industrial/commercial 3815 11.88 45322.20

Total land compensation 687371.19

10.2.2 Buildings and Structures Compensation 153. The compensation for buildings and structures is calculated on the basis of current value of the materials, construction operations and other costs required for construction of similar buildings less the depreciation. The buildings are evaluated individually and the amount of their compensation rate is given in the technical appendix. The following table shows the aggregate amount of compensation for buildings and structures.

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Resettlement Action Plan Table 10.2: Compensation for buildings/structures

Type Quantity Compensation (GEL)

Residential houses 4 487411.00

Auxiliary household facilities 40 150505.00

Industrial/commercial structures 3 644363.00

Fences 114 224364.19

Total buildings and structures compensation 1506643.2

10.2.3 Perennial plants compensation 154. The compensation amount for fruit-bearing perennials was calculated according to the compensation rates and quantity of affected trees established on the basis of the inventory performed in the frames of preparation of this resettlement plan (see Appendix 5 and Section 2.2.). The calculation results are given in the following table:

Table 10.3: Compensation for Fruit-bearing perennials

Age group Total Species (GEL) 5- 5-9 10-14 15-19 20-24 25+

Apple 1470 3100 5000 800 320 80 10770

Pear 225 1530 3600 1800 520 1560 9235

Plum/prune/cherry plum 5778 18760 18850 4025 1210 550 49173

Sweet

cherry/cherry/dogberry 7486 9040 4960 420 248 310 22464

Apple-quince 273 735 480 240 360 120 2208

Figs 1440 3430 5460 2240 490 980 14040

Persimmons 0 1750 560 700 280 420 3710

Walnuts 6125 11500 35100 38000 12000 33200 135925

Hazelnuts 560 832 2520 208 0 0 4120

Grapes (white) 66486 34080 135450 115080 43050 284625 678771

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Resettlement Action Plan

Grapes (black) 2781 17875 98280 27540 16000 2000 164476

Peach/apricot’s 55335 79300 32200 103600 2160 1760 274355

Other 11220 11110 4928 2288 522 1566 31634

Total 159179 193042 347388 296941 77160 327171 1 400 881

10.2.4 Business interruption compensation 155. No business interruption takes place in frames of this project. Consequently, no compensation for the lost profit of businesses and loss of salaries of persons employed thereof is not provided by this resettlement plan.

10.2.5 Crops compensation 156. Crops compensation is conducted according to the estimates made on the basis of the productivity figures of the past years of various cultures, arable land use structure and (farm gate) prices obtained for Gurjaani municipality. Based on those estimates the compensation rate of the expected one-year crop of the non-perennials was determined of 0.24 GEL/sq. m. The following table shows the amount of crop compensation for the resettlement plan.

Table 10.4: Crops compensation

Quantity Compensation Compensation rate (GEL) (sq. m) (GEL/sq. m)

Implied harvest land 66 688 0.24 16005.12

Total crops compensation 16005.12

10.2.6 Allowances 157. The resettlement plan stipulates issuance of the following allowances:

- Severe impact (2-year implied crops of non-perennials)

- Relocation/replacement (3-month minimum subsistence income for a family of 5 members)

- Vulnerability (3-month minimum subsistence income for a family of 5 members)

According to official data, the living wage for a family of 5 members for this resettlement plan was considered at 310.1 GEL (July 2015, http://www.geostat.ge/ ); therefore, 310.1 X 3 months equals 930.3 GEL. The allowance for the severe impact - 0.24 X2 = 0.48 GEL/sq. m (see. Section 9.2.5).

158. The following tables present the allowance amounts:

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Resettlement Action Plan Table 10.5: Amounts of allowances

Severely Compensation Compensation affected rate (GEL) area (sq. m) (GEL/sq. m)

Severe impact 158749 0.48 76199.52

Number of Compensation Compensation families rate (GEL) (GEL/sq. m)

Relocation/replacement 4 930.3 3721.2

Vulnerability 181 930.3 168384.3

Sub Total 185 930.3 172105.5

Total allowances 248305.02

10.2.7 Administrative costs 159. The budget also provides a certain amount for external monitoring and minor administrative expenses. The amount of administrative costs is presented in the following table:

Table 10.6: Administrative costs

Unit (Month) Unit cost Costs

(GEL) (GEL)

External monitoring expenses 5 4000 20000

Aadministrative expenses 5 7500 37500

Total allowances 57500

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Resettlement Action Plan 10.3 Aggregated budget 160. The aggregate budget of this resettlement plan amounts to 4 339 231.08 GEL and is presented in the following table:

N Budgetary item Amount (GEL) Amount

(USD)

Compensations

1 Land compensation 687 371.19

2 Buildings and structures compensation 1 506 643.20

3 Fruit-trees compensation 1 400 881.00

4 Crops compensation 16 005.12

Total compensations 3 610 900.51

Allowances

5 Severe impact allowance 76 199.52

6 Replacement/relocation allowance 3 721.20

7 Vulnerable allowance 168 384.30

Total allowances 248 305.02

Total resettlement plan costs 3 859 205.53

Administrative costs

9 External monitoring agency 20 000.00

10 Minor administrative costs 37 500.00

11 Legalization and Registration fees 28050

Total administrative costs 85 500.00

Total costs 3 944 755.53

Contingencies (10%) 394 475.55

Gross total 4 339 231.08 1 867 862.37

161. All funds provided for by the Resettlement Plan, which are needed for compensation and allowances, will be allocated by the Government of Georgia. The Roads Department of the Ministry of Regional Development and Infrastructure of Georgia provides the distribution of funds allocated for the implementation of the resettlement plan. P a g e | 60

Resettlement Action Plan 11 MONITORING AND EVALUATION 162. LAR tasks under the Project will be subjected to both internal and external monitoring. Internal monitoring will be conducted by RDRD/RDMRDI. External monitoring will be assigned to SSC to be hired by RDMRDI and approved by WB.

11.1 Internal Monitoring 163. Internal monitoring will be carried out routinely by RDRD/RDMRDI either directly or through the services of a consultant. The results will be communicated to WB through the quarterly project implementation reports. Indicators for the internal monitoring will be those related to process and immediate outputs and results. This information will be collected directly from regional RDMRDI level and reported monthly to RDRD/RDMRDI to assess the progress and results of RAP implementation, and to adjust the work program, if necessary. The monthly reports will be quarterly consolidated in the standard supervision reports to WB. Specific monitoring benchmarks will be:

(i) Information campaign and consultation with APs; (ii) Status of land acquisition and payments on land compensation; (iii) Compensation for affected structures and other assets; (iv) Relocation of APs; (v) Payments for loss of income; (vi) Selection and distribution of replacement land areas; 164. The above information will be collected by RDRD/RDMRDI which is responsible for monitoring the day-to-day resettlement activities of the project through the following instruments:

a) Review of census information for all APs; b) Consultation and informal interviews with APs; c) In-depth case studies; d) Sample survey of APs; e) Key informant interviews; and f) Community public meetings.

11.2 External Monitoring 165. External monitoring will be carried out by the SSC for the project activities. Indicators for External Monitoring tasks will be carried out in two phases.

166. Phase One. This external Monitoring phase will be carried out in parallel with the implementation of a RAP and will be concluded after the RAP is fully implemented by the preparation of a compliance report. An acceptable Compliance Report will be condition to start the implementation of physical civil works for the project.

167. During this phase the SSC will i) do the investigations and define the indicators needed for phase two activities and ii) closely monitor the implementation of the RAP. RAP implementation monitoring will entail the following tasks: (a) review of RAP/Information pamphlet disclosure; (b) review of action taken by the IA to compensate the APs with particular attention to the way this action fits RAP stipulations; (c) review all compensation tallies; (d) verify whether the compensation is provided thoroughly to all APs and in the amounts defined in the RAP and in the AP contracts; (e) asses the satisfaction of the APs with the information campaign and with the compensation/rehabilitation package offered to them; (f) review the legalization process and assess its effectiveness; (g) review

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Resettlement Action Plan complaints & grievance cases; (h) carry out an AP satisfaction survey with a 20% sample of the APs. The SSC will prepare the Compliance Report immediately after the completion of RAP implementation. The Compliance report will include well argued sections on the following:

(i) Assessment of the way the compensation has been carried out in relation to RP stipulations; (ii) Verification that all APs were compensated in the amounts stipulated in the RAP (iii) Review of complaint and grievance cases and of their solution (iv) Assessment of the rehabilitation program for vulnerable APs (v) Assessment of the satisfaction of the APs (vi) Lesson learned to be applied to the next projects, and; (vii) General assessment of RAP implementation and recommendations to WB regarding the provision of No Objection Letter to start the civil works. 168. Phase Two. Within one year from the completion, the whole of RAP implementation will be assessed. The following are main indicators for the investigations to be carried out in this external Monitoring phase:

(i) Socio-economic conditions of the APs in the post-resettlement period; (ii) Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc.; (iii) Changes in housing and income levels; (iv) Rehabilitation of informal settlers; (v) Effectiveness of property valuation for rehabilitation purposes; (vi) Effectiveness of Grievance procedures; (vii) Level of satisfaction of APs in the post resettlement period; (viii) Road safety conditions.

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Resettlement Action Plan

Appendices

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Resettlement Action Plan Appendix 1

Land acquisition procedures

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Resettlement Action Plan 1. Introduction

Correct and accurate registration of the ownership rights is a necessary provision for voluntary acquisition or obligatory expropriation of the property. Under Article 312 of the Civil Code of Georgia the Public Registry records are considered accurate unless their inaccuracy is proved. Under Article 312 of the Civil Code of Georgia the inaccurate data available at the Public Registry must be replaced by the accurate data. Thus, the landowners must ensure demarcation and legalization of their lands through the appropriate procedures. The landowners must appeal to the Public Registry and present all necessary documents confirming their rights of ownership and providing description of their lands; the landowners must also have cadastral map with accurate measurement drawings and documents confirming their rights of ownership (delivery-acceptance statement, a registration certificate, an extract from the land allocation list issued by the local government bodies or a certificate on owner's registration as a taxpayer in 1992-2001). The land in the personal ownership is legalized through its registration at the National Agency of Public Registry within the Ministry of Justice of Georgia. The land in the private ownership in Georgia is determined by the privatization of land plots after gaining independence from the Soviet Union. 2. Current Process of Land Registration

Registration of an empty land (a land without any facility on it) has not been terminated. Although, practical majority of the owners do not initiate new registration of the lands since they are not required to provide a new registration as the land sale or purchase is not actual in the existing circumstances. However, it should be noted that these owners continue using their lands on the basis of mutual understanding among the neighbours. Actually, these lands and landowners may become the legal owners again. In current situation these cases are classified as the owners subject to legalization. Under the acting legislation of Georgia, the owners can be divided into the following categories: (i) a legal owner / an owner with a certificate:

The landowners and users with the ownership rights registered at the Public registry; (ii) an owner subject to legalization:

Lawful owners: The owners who have a land ownership certificate but have no ownership rights registered at the Public Registry in compliance with the acting legislation. Unlawful owners: Unlawful landowners with the right to legalize the land ownership right in compliance with the acting legislation (the Law of Georgia on Recognition of the Ownership Rights on the Lands Owned (used) by the Physical and Legal Entities under the Private Law; 2007). For this category registration of the land ownership right is legally allowed in the following cases: - State owned agricultural and non-agricultural land plots with the residential houses or buildings on it which are arbitrarily occupied by a physical or legal entity before 2007 when the current law entered into force.

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Resettlement Action Plan - arbitrarily occupied land adjacent to the land plot owned or lawfully owned by the physical or legal entity providing that the area of arbitrarily occupied land is less than the legally occupied land area.

- certain exceptional restrictions are provided by the current legislation that prohibit land legalization (e.g. a land

plot on the territory of protected area, forest).5

(iii) Owners whose rights on the land are not subject to legalization:

The persons who have arbitrarily occupied the land and are not entitled to legalize the ownership of the land under the current law (the Law of Georgia on Recognition of the Ownership Rights on the Lands owned (used) by the Physical and Legal Entities under Private Law; 2007). In particular, persons, who have no documents certifying the ownership or use of the land before the entry into the force of this law in 2007, can not legalize their right of land ownership. The right of ownership of the land shall be legalized differently for lawful and unlawful owners as described below, although in both cases the legalization process is completed by the registration of ownership rights. The rights of the landowners are registered by the National Agency of Public Registry. The Agency issues an abstract of registration of the ownership on the land plot and facilities on it and appropriate cadastral maps. Lawful ownership rights are legalized by the regional registration office of the National Agency of Public Registry. Applicants must submit old documents confirming their ownership rights and also the cadastral maps of the land plots and buildings located on it. Legalization of the unlawful ownership right shall be authorized by the Ownership Rights Recognition Commission in municipality after reviewing the application and its compliance with the acting regulations. In case of a positive decision the Commission shall issue an ownership right certificate. On the basis of this certificate the regional registration office within the National Agency of Public Registry shall register the right of ownership on the land and buildings located on it.

5 Under the Law of Georgia on State Owned Agricultural Land (paragraph 2, Article 3) the following categories of the state owned land plots shall not be subject to privatization: (a) pastures, unless they are leased before the entry into the force of this Law that is issued by an authorized state or local government (self-government) and is appropriately allocated for the facilities and buildings representing private property of the individuals or legal entities, or the state property; (b) the cattle crossing point on the road; (c) the first zone (the zone of strict regime) around the water supply units on the sanitary protection territory; (d) the forest fund land which is used for agricultural purposes; (e) recreational zone lands; (f) lands which are occupied with historical, cultural, natural and religious monuments; (g) protected areas; (h) agricultural lands which are used by the institutions financed from the State Budget and by the legal entities under the public law. The land plots defined in (b-e) sub-paragraphs may be privatized only in case of implementation of important projects decision on which is adopted by the Government of Georgia on the basis of the recommendation of the Ministry of Economy and Sustainable Development of Georgia. At the same time, the land indicated in sub-paragraph (c) may be privatized only in case it complies with the sanitary protection conditions (26.10.2007).

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Resettlement Action Plan 3. The project land acquisition and resettlement studies and documentation

During the RAP preparation process detailed measurement surveys (DMS), evaluations, inventory and social and economic studies were carried out. According to the final engineering design the road alignment is displayed (superimposition) on the aerial images (orthophotos) of the project area and on the renewed cadastral maps of the registered lands obtained from the regional offices of the National Agency of Public Registry. Within the RoW each affected registered land plot is identified The affected land plots are described in detail and relevant cadastral data are collected. On the basis of these data the survey team has started works of field studies including identification of each land plot and verification of the details displayed on the national cadastral map. The verification process includes the study to identify the ownership by examination of available documents and consultation with the owners as well as further discussions with a local self-government and representatives of the National Agency of Public Registry. By applying these methods final details of each land plot and owner is specified. This will help in determining the legal owners, the owners subject to legalization (lawful and unlawful) and the persons illegally occupying the state owned land plots. Once the compensation of the land/property affected by resettlement is completed, the purchased land will be transferred (registered) to the Roads Department of Georgia and the rest land will be allocated to the owners affected by the project. This registration represents the change in the ownership after the purchase. If the road alignment divides the land into several parts a new cadastral map will be composed for each part and separate registration will be required for these parts of the land. 4. The registration process of the owners who are subject to legalization

4.1. Registration of lawful owners

The ownership right on the land in lawful ownership (use) is recognized by registering the ownership right at the Public Registry. To confirm the request on recognition of the ownership right the interested person must submit:  a document certifying lawful ownership (use) of the land;

 a cadastral measurement drawing of the land plot;

 a document certifying payment of the fee of recognition of the ownership right;

 ID documents of the interested person;

 other documents as provided by the legislation of Georgia.

The process and procedure for registration of the owners subject to legalization require the following stages: Stage 1: Preparation of new and accurate cadastral maps (measurement drawings) by owner. The maps must include dimensions and cadastral details of the land plots. Under the project a consultant prepares accurate measurement drawings for the owner of the affected land and submits to the landowner free of charge. Stage 2: If the owner has no appropriate documents certifying his/her right of ownership, or if there is any doubt regarding the land plot, the owner must apply to the regional archive (the Regional Representation Archive within the National Agency of Public registry) for the documents regarding the details of the land and the documents certifying the right of ownership.

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Resettlement Action Plan Stage 3: After obtaining and verifying the documents certifying the ownership the landowners will be provided with the ownership certificate from the municipality. Stage 4: With the obtained certificate the landowners apply to the regional office of the National Agency of Public Registry. The landowners will submit the above-stated certificate to the local office of the National Agency of Public Registry. The National Agency of Public Registry will verify the completeness of all the necessary application documents. For the Public Registry records the landowners must submit electronic and printed versions of the cadastral maps of land plots showing coordinates. If the documents comply with the requirements determined by the law, the Agency will issue the abstract from registration of ownership of the land and the property located on it, and an appropriate cadastral map. If the ownership issue is disputable the case may be filed to the court. The opinion regarding the right of ownership will be made on the basis of the court decision. 4.2. Registration of unlawful land users

A request on recognition of the right of ownership of the arbitrarily occupied land is reviewed on the basis of the submission of an application in writing to the Commission. In order to confirm the request on recognition of the right of ownership of the arbitrarily occupied land an interested person must submit the following documents:  a document and/or a witness statement certifying occupation of the land;

 a cadastral measurement drawing of the land;

 information to identify the fee for ownership right recognition ;

 the copies of the ID documents of the interested person.

The ownership registration process and procedure include the following stages: Stage 1: Preparation of new and accurate cadastral maps (measurement drawings) issued by the licensed surveyor. The maps must include dimensions and cadastral details of the land plots. Under the project a consultant prepares accurate measurement drawings of the affected land and submits to the land user free of charge. Stage 2: The map and the fact and nature of using the land plot will be witnessed by the neighbour. Stage 3: The neighbour’s statement confirming the possession/use of the land plot must be certified by a notary. Stage 4: During recognition of the ownership the land users must submit the package of documents to the Commission that proves the right of legalization of the land in accordance with the Law of Georgia of 2007 on Recognition of the Ownership Rights on the Lands Owned (Used) by the Physical and Legal Entities under the Private Law. Namely it includes the documents certifying ownership of the lawful owners of the plots adjacent to the land that is subject to legalization, which is a necessary condition for legalization of the arbitrarily occupied land. If the owner does not have the documents certifying ownership, or if there is any doubt regarding the land plot, the owner must apply to the regional archive (the local archive of the National Agency of Public Registry) in order to obtain the evidence of ownership and detailed information on the land.

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Resettlement Action Plan Stage 5: After obtaining and verifying the documents certifying the ownership the landowners will be provided with the ownership certificate from the local government body (the municipality) on the plot adjacent to the land that is subject to legalization. Stage 6: After compiling the package of documents the landowners apply to the regional Commission of recognition of the ownership right. The owners will submit the above-stated package of documents to the Commission. If the submitted package of documents complies with the requirements determined by the law, the Commission will issue a certificate of the right of ownership and a certified cadastral measurement drawing that, among other cadastral data, should include the borders and area of the plot of land on which the right of ownership is recognized and the buildings located on it. Accordingly, the owners may complete the registration at the Public Registry. Stage 7: After obtaining a certificate on the ownership right from the Ownership Recognition Commission the landowners apply to the regional office of the National Agency of Public Registry. The landowners submit the above-stated certifying documents to the local office of the National Agency of Public registry. The National Agency of Public registry verifies the completeness of all necessary application documents. For the Public registry records the landowners must submit electronic and printout versions of the maps of the plots together with their coordinates. If the documents comply with the requirements determined by the law the Agency will issue an abstract from the registration of ownership of the land and the property located on it, and an appropriate cadastral plan. If the issue related to ownership is disputable the case may be filed to court. The opinion regarding the right of ownership shall be prepared on the basis of the court decision.

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Resettlement Action Plan Appendix 2

Public Consultations

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Resettlement Action Plan The Photos of the Meetings

The meeting at Gurjaani Municipality

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Resettlement Action Plan

The meeting with Bakurtsikhe and Kolagi territorial unit representatives

The meeting with Vejini, Dzirkoki and Chandari territorial unit representatives

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Resettlement Action Plan

The meeting with Gurjaani town and Gurjaani village territorial unit representatives

The meeting with Chumlaki and Akhasheni territorial unit representatives

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Resettlement Action Plan Protocol №1 of the public consultations and the discussions with the focus groups

Name of the project: Gurjaani bypass road Number of participants: 51 Village: Bakurtsikhe, Kolagi District: Gurjaani Region: Kakheti

Distance from Tbilisi: 100 km. Date: 12.02.2015 Time: 12:00

The discussion topics The participants’ opinions, remarks and proposals

What is general attitude towards the project? Are Attitude is not uniform people informed on the proposed project?

Do local people support the implementation of the It is acceptable for most of them. Those who are affected by the proposed project? project are more concerned.

Did local people raise any critical issue or problem The critical issues are as follows: regarding the project? 1. The problem of the left over plots of land;

2. Whether or not to continue works for harvesting crops of the current year.

Do you want any certain criterion to be considered They cannot specify. during the designing, construction and exploitation stages of the project?

Do you have any problem regarding the existing Car accidents (the cars are rushing into the house yards, etc.) road?

What kind of vehicles drive on the project road? Any kind, including those coming from abroad (Iran, Turkey, etc.)

In what intervals does public transport move on 10-15 times a day the project road?

What is an average monthly income? They cannot specify.

How much do you spend a month for 30-50 GEL.

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

transportation?

Do you sell your agricultural products on the They sell products in small quantities; basically they consume market? If yes, how do you transport them? How the products themselves. Grapes and peach are sold. much is spent for transportation out of the total agricultural expenses?

Will the proposed project reduce the number of car Car accidents are very frequent in the centre (on accidents and provide better transportation system? Bakurtsikhe square). They hope that the situation will be improved.

Is the territory commercially developed? Yes

Is it a production zone? No

General social and economic condition: name the Agricultural crops (grapes, fruit). types of economic activities that are developed here, the type of land use, harvesting and growing the agricultural crops (seasonal), types of the crops, etc.

Accessibility to the forest areas and to using the Local people do not use forest; they buy the wood in other forest (if any) places.

The source of the drinking water The water supply system, according to the schedule in Bakurtsikhe

Is there the deficit of water in the region necessary for There is a deficit of water in summer. human consumption?

Was the land purchased previously? If yes, There were no cases of purchasing the land for projects. according to which procedure was the purchase performed and what was the compensation package?

The protected areas (national park, protected No such places. forests, religiously sensitive places, historical or archaeological places) (if any).

The health status – are there any hospitals and what The cases of illness increased (e.g. oncology, is their general condition? Is any disease spread in cardiovascular diseases). There is no AIDS. the given district and are you P a g e | 75

Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

informed on AIDS?

The level of poverty: is the district poor, very poor By our own evaluation 80% of the people are poor, 70% of or wealthy? them is in the social registration list.

Education: educated, non-educated, etc. Mainly people have secondary and secondary vocational education, 20% of them has higher education.

Employment / unemployment / part-time People are basically employed at their own farms. employment

Migration (if any) – to and from the district Mainly youngsters go to Tbilisi for studies and for work; some of them (10-15%) go abroad (Turkey) for work.

If resettlement is necessary for the expansion of the They prefer the place where they live now. road where would you like to move?

What mechanisms are available for the relocation of No such facilities are affected by the project. religious facility (facilities)? Where might it (they) be relocated?

Preferable type of compensation (in cash or in There is no uniform approach to this issue. Some people prefer nature)? in nature compensation, and some of them – in cash.

How will they benefit from the They cannot specify yet. implementation of the project?

What type of damage may a project cause? Pollution of the environment, noise. People also talk about the vibration problems.

Which other social organizations (NGOs / state- There are some organizations in the district, but not in the funded organizations / civil communities) operate in village. the district? Name them.

Did this consultation assist you? Do you have any Yes other remarks?

Is there any expectation that local people will They expect to be employed on the construction works.

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

participate in the implementation of the project? The local people would not like if employees are brought from other regions.

Other issues which were not discussed. No such issues.

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Resettlement Action Plan Protocol №2 of the public consultations and the discussions with the focus groups

Name of the project: Gurjaani bypass road Number of participants: 31 Village: Vejini, Dzirkoki, Chandari District: Gurjaani Region: Kakheti

Distance from Tbilisi: 108 km. Date: 12.02.2015 Time: 15:00

The discussion topics The participants’ opinions, remarks and proposals

What is general attitude towards the project? Are Generally they evaluate it positively. people informed on the proposed project?

Do local people support the implementation of the They basically support, although they raise the issue of proposed project? compensation for removed lands as well.

Did local people raise any critical issue or problem It is critical moment that they do not have documents on the regarding the project? lands and vineyards of their ancestors. They require resolution of this issue.

Do you want any certain criterion to be considered No. during the designing, construction and exploitation stages of the project?

Do you have any problem regarding the existing No remarks. road?

What kind of vehicles drive on the project road? All types of vehicles (including tractors and cartages).

In what intervals does public transport move on Once in 10-15 minutes the project road?

What is an average monthly income? Cannot evaluate.

How much do you spend a month for 100 GEL.

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

transportation?

Do you sell your agricultural products on the Grapes, peach and other fruit according to seasons. market? If yes, how do you transport them? How much is spent for transportation out of the total agricultural expenses?

Will the proposed project reduce the number of car It will reduce the number of car accidents. accidents and provide better transportation system?

Is the territory commercially developed? The number of shops is enough.

Is it a production zone? There is one wine factory in these three local government units (Chandari)

General social and economic condition: name the Basic activity is farming on their own plots of land, vineyards, types of economic activities that are developed here, growing peach / nectarine, corn, beans, water- melons, melons, the type of land use, harvesting and growing the vegetables. agricultural crops (seasonal), types of the crops, etc.

Accessibility to the forest areas and to using the There is no local forest so they bring woods from the distant forest (if any) places.

The source of the drinking water Schedule: Once in two days, for 40 minutes.

Is there the deficit of water in the region necessary There is a deficit; it is especially difficult during the seasons. for human consumption?

Was the land purchased previously? If yes, Land has not been purchased before. according to which procedure was the purchase performed and what was the compensation package?

The protected areas (national park, protected No. forests, religiously sensitive places, historical or archaeological places) (if any).

The health status – are there any hospitals and what The cases of digestive tract, cardiovascular, oncology diseases is their general condition? Is any disease spread in have increased. No cases of AIDS. the given district and are you P a g e | 79

Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

informed on AIDS?

The level of poverty: is the district poor, very poor 10% has food to eat, the rest of them are hungry. or wealthy?

Education: educated, non-educated, etc. 30-40% of them has higher education, 10% has technical education and the rest of them have secondary education.

Employment / unemployment / part-time They are concerned with unemployment. employment

Migration (if any) – to and from the district Youngsters mainly go to Tbilisi, some of them go abroad.

If resettlement is necessary for the expansion of the It will not happen in their district. road where would you like to move?

What mechanisms are available for the relocation of No. religious facility (facilities)? Where might it (they) be relocated?

Preferable type of compensation (in cash or in In cash payment. nature)?

How will they benefit from the Transportation will become easier; there will not be the implementation of the project? vibration.

What type of damage may a project cause? They do not think there will be any damage.

Which other social organizations (NGOs / state- There are not any of them in the local government body, funded organizations / civil communities) operate in although there are some in Gurjaani. the district? Name them.

Did this consultation assist you? Do you have any It was useful. other remarks?

Is there any expectation that local people will Of course they would like, but they would not like if people participate in the implementation of the project? from other districts are employed.

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

Other issues which were not discussed. Cannot specify.

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Resettlement Action Plan Protocol №3 of the public consultations and the discussions with the focus groups

Name of the project: Gurjaani bypass road Number of participants: 27 Village: Gurjaani town, Gurjaani village District: Gurjaani Region: Kakheti

Distance from Tbilisi: 117 km. Date: 13.02.2015 Time: 12:00

The discussion topics The participants’ opinions, remarks and proposals

What is general attitude towards the project? Generally it is useful. Are people informed on the proposed project?

Do local people support the They support it, but few of them are sceptical about the issue. implementation of the proposed project?

Did local people raise any critical issue or Reaching roads; roads going through the valleys (e.g. Kotena). problem regarding the project?

Do you want any certain criterion to be Zoning should be considered in terms of viniculture. They prefer considered during the designing, construction the old road. and exploitation stages of the project?

Do you have any problem regarding the existing The old road is preferable because it will have less impact on the road? cultivable lands.

What kind of vehicles drive on the project road? All types of vehicles.

In what intervals does public transport move on Mini-buses and the transit transport of the district. the project road?

What is an average monthly income? They cannot specify.

How much do you spend a month for 50 GEL.

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

transportation?

Do you sell your agricultural products on the They sell water-melon. market? If yes, how do you transport them? How much is spent for transportation out of the total agricultural expenses?

Will the proposed project reduce the number of There are many car accidents with casualty. car accidents and provide better transportation system?

Is the territory commercially developed? It is well developed.

Is it a production zone? Now there are 5 wine factories.

General social and economic condition: name Farming, trade. the types of economic activities that are developed here, the type of land use, harvesting and growing the agricultural crops (seasonal), types of the crops, etc.

Accessibility to the forest areas and to using the The use of forest includes the use of the woods for heating. forest (if any)

The source of the drinking water 70% is water supply system, and the rest is (artesian) wells, springs.

Is there the deficit of water in the region There is no deficit for drinking water. necessary for human consumption?

Was the land purchased previously? If yes, They recall such case from the Soviet Union times (allocation of the according to which procedure was the relocation lands) purchase performed and what was the compensation package?

The protected areas (national park, protected There is a protected territory “Inazod” which is a hunting area. forests, religiously sensitive places, historical or archaeological places) (if any).

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

The health status – are there any hospitals and Heart attacks are frequent. There are no cases of IADS. what is their general condition? Is any disease spread in the given district and are you informed on AIDS?

The level of poverty: is the district poor, very There is a high level of poverty. poor or wealthy?

Education: educated, non-educated, etc. 60% of them have higher education.

Employment / unemployment / part-time They basically work at their farms. employment

Migration (if any) – to and from the district They go to Tbilisi and abroad (most of them).

If resettlement is necessary for the expansion of They prefer to stay at their living places. the road where would you like to move?

What mechanisms are available for the It will not happen. relocation of religious facility (facilities)? Where might it (they) be relocated?

Preferable type of compensation (in cash or in In cash, but by fair value. nature)?

How will they benefit from the Their evaluation is positive; they think that the town will not be so implementation of the project? loaded.

What type of damage may a project cause? They do not know.

Which other social organizations (NGOs / state- They are at Gurjaani town. funded organizations / civil communities) operate in the district? Name them.

Did this consultation assist you? Do you have It was useful. any other remarks?

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals

will participate in the implementation of the use local resources (human resources, equipment). project?

Other issues which were not discussed. They cannot specify.

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Resettlement Action Plan Protocol №4 of the public consultations and the discussions with the focus groups

Name of the project: Gurjaani bypass road Number of participants: 18 Village: Chumlaki, Akhasheni District: Gurjaani Region: Kakheti

Distance from Tbilisi: 120 km. Date: 13.02.2015 Time: 15:00

The discussion topics The participants’ opinions, remarks and proposals What is general attitude towards the project? Are They like it. people informed on the proposed project? Do local people support the implementation of the They support it proposed project? Did local people raise any critical issue or problem 1. The issue of certifying the ownership rights; regarding the project? 2. The issue of compensation packages (they doubt that they will be paid less). Do you want any certain criterion to be No. considered during the designing, construction and exploitation stages of the project?

Do you have any problem regarding the existing Car accidents. road? What kind of vehicles drive on the project road? All types of vehicles.

In what intervals does public transport move on the Once in 30 minutes. project road? What is an average monthly income? They cannot specify. How much do you spend a month for 60-70 GEL. transportation? Do you sell your agricultural products on the On the wholesale market and in Tbilisi. market? If yes, how do you transport them? How much is spent for transportation out of the total agricultural expenses?

Will the proposed project reduce the number of That will reduce it. car accidents and provide better transportation system?

Is the territory commercially developed? The shops are more than enough. Is it a production zone? There are 2 wine factories. General social and economic condition: name the Agriculture, (gardening), vineyard, peach. types of economic activities that are

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Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals developed here, the type of land use, harvesting and growing the agricultural crops (seasonal), types of the crops, etc. Accessibility to the forest areas and to using the They use the forest for woods, but there are almost no trees left in forest (if any) the forest. The source of the drinking water The village depends on the well. The water supply system is out of order. Is there the deficit of water in the region necessary There is a deficit of water. for human consumption? Was the land purchased previously? If yes, No. according to which procedure was the purchase performed and what was the compensation package?

The protected areas (national park, protected No. forests, religiously sensitive places, historical or archaeological places) (if any). The health status – are there any hospitals and Heart attack, high blood pressure, liver diseases (hepatitis). There what is their general condition? Is any disease are no cases of AIDS. spread in the given district and are you informed on AIDS?

The level of poverty: is the district poor, very poor It is represented “well”. or wealthy? Education: educated, non-educated, etc. 25-30% of the people have higher education, the rest of them have secondary education. Employment / unemployment / part-time It is also represented “well”. employment Migration (if any) – to and from the district Middle-age people go to Tbilisi. The young people go for studies and for work (even abroad). If resettlement is necessary for the expansion of They would like to stay at their living places. the road where would you like to move? What mechanisms are available for the relocation It will not happen. of religious facility (facilities)? Where might it (they) be relocated? Preferable type of compensation (in cash or in In cash payment. nature)? How will they benefit from the There is no uniform attitude. They think that reduction of implementation of the project? vibration is good. On the other hand they do not have their documents in order and they fear whether the compensation will be adequate.

What type of damage may a project cause? Generally, they evaluate it positively. Which other social organizations (NGOs / state- There are not. They are in Gurjaani. funded organizations / civil communities) operate in the district? Name them.

Did this consultation assist you? Do you have any It was useful. They expect additional information to be provided in other remarks? the future. P a g e | 87

Resettlement Action Plan

The discussion topics The participants’ opinions, remarks and proposals Is there any expectation that local people will They would like to work, but during the season they are participate in the implementation of the occupied with harvesting their crops. project?

Other issues which were not discussed. The issue of current year’s harvest. (The participants have been infomed that this year harvest on affected lands will be compensated)

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Resettlement Action Plan Appendix 3

Evaluation of the Compensation Rate

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Resettlement Action Plan 1. Introduction This annex includes brief description of the compensation rates evaluation methodology. The compensation rates are evaluated on the basis of the road design determined by the engineering design consultant of Gurjaani bypass road, the aerial photo data analysis in the GIS system, the official statistical data, the information found in the scientific literature and internet sources6, also on the basis of the data of previously implemented projects and the data of the field observations carried out under the current project. Compensation rates have been calculated by the certified independent evaluator and are detailed in his report. 2. Facilities

The compensation rate of the constructions / buildings was evaluated individually for each building / construction according to the current market prices of the construction type, cost of the materials, labour cost, transport and other building expenses without deducting transaction and amortization costs.

3. Perennial plants

The cost of the perennial plants will be determined according to their types and age. During the calculation of the cost of the fruit trees annual harvest, wholesale market price and the growing expenses will be taken into consideration. Final calculation of the fruit trees compensation rate will be conducted by the formula:

C = (P * V –M)* L

Where:

C–is the compensation amount for the perennial plant;

V – is an average harvest of the perennial plant per tree per year ; P – is a market price per 1 kg. of the fruit; M – is an average expenses per tree (including costs of tree maintenance and harvesting/lodging) per year;

L – years of compensation of a perennial plant.

6 1. Georgian agriculture census , Geostat, 2005; 2. Georgian agriculture. Statistical collection 2013.Geostat, 2014. 3. National Bank of Georgia; http//:www.nbg.gov.ge 4. The catalogue “word and work”; www.makler.ge 5. Prices of construction resources, the building evaluators union. 6. G. Agladze, “Georgian Fruit-growing”; Book III(1973), Book IV (1978). 7. Geostat, http://www.geostat.ge.

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Resettlement Action Plan Relevant data have been obtained from the official statistics, appropriate scientific literature7 and field survey results.

The compensation rates for the fruit trees calculated according to the above-stated formula are given below in the table:

Compensation rates for perennial plants (GEL/tree)

Age category Fruit 5- 5-9 10-14 15-19 20-24 25+

Apple 35 100 200 200 80 80

Pear 45 90 300 300 260 260

Plum /prune/wild plum 18 70 130 115 55 55

Wild cherry/cherry/ dogberry 19 80 160 140 62 62

Quince 39 105 120 120 120 120

Fig 15 70 140 140 70 70

Persimmon/kaki 15 70 140 140 70 70

Walnuts 35 100 300 400 400 400

Nuts 10 52 140 104 80 80

Grapes (white) 21 40 105 105 75 75

Grapes (black) 27 55 135 135 100 100

Peach / apricot / Prunusarmeniaca 35 100 200 200 80 80

Others 33 110 88 88 58 58

7 1. Geostat, http://www.geostat.ge 2. . G. Agladze, “Georgian Fruit-growing”; Book III(1973), Book IV (1978).

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Resettlement Action Plan 4. One-year plants harvest Crops compensation is conducted according to the estimates made on the basis of the productivity figures of the past years of various cultures, arable land use structure and (farm gate) prices obtained for Gurjaani municipality

The compensation rate was determined on the basis of the land yield analysis. The yield analysis includes the structure of using the land, multi-year average harvests and the market price. Relevant data was obtained on the basis of the official statistics8 for Gurjaani municipality and the fieldwork carried out in the project affected area. The results of the yield calculations of the agricultural (arable) land in Gurjaani municipality are given in the table below:

The use and yield of arable lands In Gurjaani Municipality

Structure (%) Productivity (t/ Price Income hectare) (GEL/t) (GEL/hectare)

Wheat 35,8 1.63 496.63 288.92

Corn 16,3 2.38 503.75 195.42

Potato 5,6 5.50 577.98 178.02

Sunflower 25,1 0.60 1254.11 188.87

Beans 1.5 0.78 1587.74 18.58

Vegetables 9,6 5.06 887.07 430.90

Garden products 4,3 16.50 1443.40 1024.09

Food crops 1,7 3.24 1350.61 74.39

Total: 100 - - 2399.2

8 1. Georgian agriculture census , Geostat, 2005; 2. Georgian agriculture. Statistical collection 2013.Geostat, 2014. 3. Geostat, http://www.geostat.ge 4. Data request to Geostat .

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Resettlement Action Plan On the basis of these calculations the compensation rates of one-year plant crops is 0.24 GEL/m2.

5. Land The study of data on land purchase occurred over the past year in Gurjaani Municipality (obtained from the Public Registry) showed that the land market in Gurjaani Municipality is undeveloped. Thus, considering the RPF requirements, the capitalization method was used to evaluate the compensation rate for land, according to which

Q=Y/i

where Q is the value of asset ( in this case- land) Y – is the operational profit , i–is the capitalization rate. In case of agricultural land

Y= 2399.20 -570,22=1828,78 GEL/Ha

wheher 2399,20 is the income per 1 ha (see the previous paragraph) 570,22 volume of operational costs identified through the survey of cost of agricultural works in Gurjaani Municipality. i=5.55% was considered as the capitalization rate which is the refinansing rate of Georgian National Bank corrected by the premium for agricultural business risks. The compensation rate for the agricultural land calculated on the basis of the capitalization method is 3,30 GEL/m2. For evaluating the non-agricultural lands the relative coefficients method was applied.

The conducted survey showed that relative coefficients value towards the agricultural land in Gurjaani Municipality is - 1.7 for residential land and 3.6 for commercial land. As a result of the calculations the following compensation rates were determined for Gurjaani municipality: residential land - 5.61 GEL/m2, commercial land – 11.88 GEL/m2.

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Resettlement Action Plan Appendix 4

Informative leaflet

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Resettlement Action Plan The Project of Bakurtsikhe-Gurjaani Bypass Road

Informative Leaflet Resettlement Action Plan

1. Introduction

Bakurtsikhe-Gurjaani bypass road is a component of the Kakheti Regional Roads Improvement Project (KRRIP) financed by the Government of Georgia and the World Bank.

The bypass road starts from the crossing of the Tbilisi-Bakurtsikhe-Akhmeta and Bakurtsikhe-Telavi-Akhmeta roads and ends at the Bakurtsikhe-Telavi-Akhmeta road. The bypass road mainly uses the initial road passage of 1980s, although new ones as well. The basic difference is that a new road will bypass the areas which were developed and used after 1980s.

The road includes approximately 15 km. section of the road in Kakheti region from the village Bakurtsikhe to the village Chumlaki, Gurjaani district. This section is the part of the internal state road of Akhmeta-Telavi- Bakurtsikhe, which is one of the main roads of Kakheti region. The road runs through the heavily-populated areas and the transit traffic is very intensive on the above-mentioned section due to which the number of car accidents is high. Construction of the bypass road is planned, which will connect Tbilisi-Bakurtsikhe- Lagodekhi-Azerbaijan border international road to Akhmeta-Telavi- Bakurtsikhe existing internal state road, bypassing the villages Bakurtsikhe, Kolagi, Dzirkoki, Chandari, Vejini and Chumlaki and Gurjaani town located on the Alazani valley.

Construction of a two-line entrance road is also considered with a circle crossroads at the beginning and at the end of the highway on 0 km. (Bakurtsikhe) and 15.6 km. (Chumlaki). Construction of the circle crossroads is also planned at the main crossing near Gurjaani – on 9.6 km. Later, construction of another circle crossroads is also considered (on 1.7 km.) to connect to the planned Bakurtsikhe-Tsnori road. The project also includes construction of 7 bridge overpasses, including 1 railway bridge, 12 underpasses, pipes, support walls, embankment protection and regulation facilities. The width of the traffic way is 2x3.5 m, with 0.5 covering side-strokes, total width of the side-strokes is 2.5 m; the project timeframe for the covering is 20 years.

The project location of Bakurtsikhe-Gurjaani entrance road is given on the drawing below.

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Resettlement Action Plan

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Resettlement Action Plan 2. The principles of the resettlement policy

In terms of alienation of the land and the property the most significant goal of the project is to help the persons affected by the project and restore their living conditions at least to the degree they had before the project. Specific goals include the following:

- The road must be constructed in such a way to bypass the populated areas as much as possible in order to avoid physical relocation of people; the selected direction of the road must require to the lowest possible extent the use of the harvested land that is in private or public ownership.

- The project designing standards must be applied that must minimize introduction of restrictions on the use of land on the adjacent territories.

- Fair and transparent procedures must be developed for determining the compensation according to the explanatory table of the present resettlement policy framework for the following cases: (i) temporary loss of the land and property during the construction process; (ii) permanent loss of the land and property; (iii) introduction of the restrictions on the use of land adjacent to the road.

- The use of land (or the right to use the land) on the basis of the agreement reached by negotiations, in the extreme cases by the application of the right of “Involuntary Alienation of the Private Property for the Public Needs”.

- Restoration of the land to its initial condition as much as possible after the construction is completed in order to enable the landowners / land users / lessees to totally resume the activities which they conducted before the project was launched.

- Informing people and communities affected by the project as much as possible regarding the project and the procedures associated with the land use and the compensations; to determine their rights and mechanisms to satisfy their complaints regarding these issues.

- Ensuring proper review of the complaints of the persons affected by the project and to resolve these complaints in compliance with the principles determined by the present resettlement policy framework.

- Irrespective of the legal status of their property the persons affected by the project will be provided with different types of support according to the principles determined by the present resettlement policy framework, in order to maintain the source of their living and help them to restore the living conditions they had before the implementation of the project. The compensations for losing the lands will not be given to the persons who unlawfully own the land, although they will receive the compensation for losing other assets, which they had acquired with their own money, and for losing the income, which was their source of living. The applicable measures will be determined in detail on the basis of the description and the social and economic review, which will be carried out in the process of development of the resettlement action plan.

- The persons affected by the project must be notified regarding the schedule of implementation of the project and must be provided with consultation on the principles of the use of land, and the damage to or losing the property.

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Resettlement Action Plan - the damage to the property, such as sown land, trees, fences and booths, as well as the lost crops, if necessary, will be compensated according to the explanatory schedule of this framework document irrespective of the legal status of the ownership;

As stated above, due to the fact that there is an inconsistency between the World Bank Resettlement Policy (OP 4.12) and the legislation of Georgia in force and the expropriation practice, any asset required under the project will be purchased in accordance with the principles and procedures determined by the present resettlement action plan (RAP); in addition:

- compensations for losing the income and the property will be given in net amount – without deducting taxes, depreciation costs and other deductible amounts;

- the compensation / rehabilitation measures will be taken according to the progress of the construction works, but before starting the construction works on a certain section.

3. Entitlement

3.1. General Description

Under the project the land acquisition and resettlement measures will be carried out in accordance with compensation rights and compliance rules developed according to the legislation and standards of Georgia as well as the World Bank policy.

General description of the entitlement is given in the table below:

Entitlement Matrix

Type of Loss Application Definition of APs Compensation Entitlements

Land

Permanent of AH losing agricultural land Owner with full registration Cash compensation in cash at full los regardless of impact severity replacement cost or replacement land of s agricultural land the same value of land lost and at location acceptable to APs where feasible. The preferred option is cash compensation as the land-for-land option is not used since there are no state reserves of public agricultural land which was privatized during the land reform. If residual plots become unusable the project will acquire it in full if so the AP desires.

Legalizable Owner These AP will be legalized and provided with cash compensation at full replacement cost.

Non-legalizable owners Non-legalizable APs losing agricultural land (squatters/encroachers) plot, which is the only land plot owned by AH and provides main source of

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Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements income for AH, will be compensated with a single self-relocation allowances in cash equal to 1 year of minimum subsistence income.

Legalizable Owner APs will be legalized and provided with cash compensation at full replacement cost.

Renter/Leaseholder Rental allowances in cash for 3 months.

Non-legalizable owners Non-legalizable APs losing land plot, which is (squatters/encroachers) the only land plot used for residence or providing main source of income for AH, will be compensated with a single self- relocation allowances in cash equal to 1 year of minimum subsistence income.

Buildings and Structures

Residential and non All AHs regardless of legal All impacts will be considered as full impacts residential ownership/ registration status disregarding the actual impact percentage. structures/assets (including legalizable and Impacts will be compensated in cash at full Informal Settlers) replacement costs free of depreciation and transaction costs. Additionally, all such Ahs will receive allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months (see below)

Loss of Community Infrastructure/Common Property Resources

Loss of common Community/Public Assets Community/Government Reconstruction of the lost structure in property resources consultation with community and restoration of their functions

Loss of Income and Livelihood

Crops Standing crops affected or All AHs regardless of legal Crop compensation in cash at gross market loss of planned crop status (including legalizable and value of actual or expected harvest. incomes* Informal Settlers) Compensation for this item will be provided even in case if the crops were harvested

Trees Trees affected All AHs regardless of legal Cash compensation at market rate on the status (including legalizable and basis of type, age, market price of product Informal Settlers) and productive life of the trees.

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Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements The project affected person is given the possibility to cut himself the trees in his ownership and use the wood. In case he is unable or denies to do so, the construction contractor will clean the area from the plants and store at the place allocated by the Municipality and later will transfer to the Municipality.

Business/Employment Business/employment loss All AHs regardless of legal Owner: (i). (permanent impact) cash status (including legalizable and indemnity of 1 year net income; (ii) Informal Settlers) (temporary impact) cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum subsistence income. Permanent worker/employees: indemnity for lost wages equal to 3 months of minimum subsistence income and trainings on computer literacy or other.

Allowances

Severe Impacts >10% income loss All severely affected AHs losing Agricultural income: Two-year yield from more than 10% of affected affected land agricultural land plot (including Non agriculture income: 1 additional informal settlers) compensation for 3 months of minimum subsistence income.

Temporary Loss

Temporary impact All AHs Due compensation will be assessed and paid during construction based on this RPF during construction. All land required for temporary use is to be obtained by the civil works Contractor on voluntary basis (e.g., willing buyer-willing seller basis through an informed consent and power of choice on the part of land P a g e | 100

Resettlement Action Plan

Type of Loss Application Definition of APs Compensation Entitlements owner to agree or disagree with the temporary land acquisition). The maximum period for temporary use is defined as 2 years. Compensation rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands. It is also required that lands (or other assets) be fully cleared and restored following use

Unforeseen Road Department and the construction resettlement impacts, contractor will address and if any mitigate/compensate unforeseen resettlement impact during project

3.2. Authority to receive compensations

The persons affected by the project who are authorized to receive the compensation or at least rehabilitation conditions under the project are as follows:

 all the persons affected by the project who lose the land with lawful registration / with a traditional right on the land, the land that is subject to legalization or the land with no legal status;

 tenants or lessees despite whether they are registered or not;

 the owners of facilities, crops, harvests and other objects located on the land;

 the persons affected by the project who lose business, income or salary.

The authority to receive compensation is determined by the cut-off date, which is 4 March 2015 for the project that is the day when registration of the persons affected by the project was started. The persons affected by the project who settle on the affected territories after the cut-off date, shall not be authorized to receive compensation. However they will be preliminarily notified to leave the buildings and to dismantle the affected facilities before starting the project. The materials of the dismantled facilities will not be seized and no fine or sanction will be imposed on them.

3.3 Rights to compensation

The compensation payments and rehabilitation subsidies for losing lands, houses and incomes, determined for the persons affected by the project, include compensation for temporary or permanent loss of the lands, loss of the buildings and constructions, crops and harvests, and compensation for the loss of incomes from the

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Resettlement Action Plan business on the basis of tax return form and/or simultaneously paid money. The rights to compensation are listed below in detail:

- Effect on the agricultural land will be compensated on the basis of the relocation cost, or by giving a plot of land with the equivalent cost to the lost land on the location acceptable for the affected person where possible, or the monetary compensation will be given in the amount of the market price without paying the transaction costs or (if there are no current land markets) on the basis of the cost of reproduction of the affected land. Monetary compensation at the market rates was selected for the project. When more than 10% of the agricultural land of the persons affected by the project is affected, the affected persons (owners, lessees) will receive an additional allowance for severe effect which will be equivalent to the market price of the total crops for 2 years from the lost land. If other type of income is severely affected, the persons affected by the project will receive additional compensation which will be equivalent to the 3 months’ minimum subsistence income. The land of the affected persons, who have legal basis for legalisation of the land (the owners who are subject to legalisation), will be legalised and provided with compensation as legal owners. The affected persons, who are not subject to legalisation, will receive only a single payment for self-resettlement that will be equivalent to 1 years’ minimum subsistence income. Compensation will be also given for the part of the residential plot of land which was not affected, but became inaccessible or unprofitable after the purchase.

- Non-agricultural land (residential / commercial area). Legal residents will receive compensation in the amount of the replacement cost, or a replacement land will be given to them at the equivalent cost of the lost land at the location acceptable for them when it is possible, or they will receive monetary compensation at the current market price without transaction, taxes and depreciation costs. The monetary compensation at the market rates is selected for the programme. The tenants / lessees will receive a monetary allowance in the amount of 3 months’ rent fee.

- Houses, buildings and constructions. In order to react on the possible damage incurred by discomfort and vibration caused by the traffic the compensation determined by this paragraph will be given fully for the whole building despite the degree of its damage. Compensation will be given in cash considering the replacement cost without the transaction and amortization costs or the cost of the left over materials. The leftover materials from the buildings/constructions will be also given to the affected families which they must use at their discretion and remove from the construction site within the timeframe agreed with the contracting constructor. All appropriate persons affected by the project are entitled to exercise this right irrespective of the registration status of the affected object.

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Resettlement Action Plan - Crops: monetary compensation at the current market price will be automatically given in the amount of the cost of the crops for 1 year.9 The compensation for crops will be given to the landowners and the lessees on the basis of their specific share agreements. - Trees: Compensation will be given in cash taking into consideration the market rates on the basis of the type, age and fruitfulness of the trees. The wood of the fruit-bearing and non-bearing trees in private ownership will also be given to the owners.

- Business: In case of permanent loss of the business the compensation will be given in the amount of 1 year’s profit on the basis of the tax return, or in case of its absence the compensation will be given on the basis of the official minimum subsistence income. In case of temporary loss of the business the monetary compensation will be given for the period of suspension of the business. The profit will be calculated on the basis of the tax return, or in case of its absence, on the basis of the official minimum subsistence income.

- The business employees / hired employees affected by the project: compensation of the lost salaries will be given taking into consideration the period of suspension of the business, at least for about 3 months.

- Relocation subsidy: the affected persons, who have to relocate, will be provided with the subsidy in the amount of 3 months’ minimum subsistence income that will be enough to cover transportation and living expenses during 3 months.

- Allowance for the vulnerable people: vulnerable people (families under the poverty line, headed by woman or elderly person, or families with no providers) will be provided with the allowance in the amount of 3 months’ minimum subsistence income. This allowance must be calculated on the basis of a 5-member family and monthly renewable indicators, which will be indicated by the National Statistics Office of Georgia by the time of approval of the RAP.

- Allowance in case of severe effect: persons affected by the project, who lose more than 10% of their agricultural land or more than 10% of their agricultural income, will be provided with the allowance for severe effect. When more than 10% of the agricultural land of the affected person is affected, the persons affected by the project (owners, lessees) will receive an additional allowance equivalent to the market price of the crops harvested 2 years on the lost land. In case of severe effect on other types of income, the persons affected by the project will be provided with an additional compensation in the amount of 3 months’ minimum subsistence income. This allowance must be calculated on the basis of a

9 Automatic compensation means that compensation for the crops will be given despite whether the crops were harvested at the time of the effect or not. It will also include compensation for the income that is expected from the crops harvested on the affected agricultural land permanently used for harvesting during the previous years. If the land had been permanently used for harvesting the crops, but during the year when the loss accounted it was not used properly (in order to rest the land or due to the illness of the farmer or any other justified reason) this plot of land will still be considered as useful for harvesting and appropriate compensation will be paid.

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Resettlement Action Plan 5-member family and monthly renewable indicators, which will be indicated by the National Statistics Office of Georgia by the time of approval of the RAP.

- Construction and utilities in the common / community ownership: such assets will be fully relocated and rehabilitated by properly restoring their functions that they had before the project.

4. Grievance Review and resolution

The grievance resolution mechanisms will be in place during the implementation of the resettlement plan that will enable the persons affected by the project to protest against any decision, practice, application or action related to the payment of compensation for the land or other assets that are unacceptable to them. The persons affected by the project will be provided with complete information (in writing or verbal) on their rights and also on how to use the complaint submission and review mechanism during the consultation, studies or compensation payment period.

Attention will be paid primarily to avoiding the complaints. It may be achieved by careful planning and proper implementation of the land acquisition and resettlement measures and by full participation of the affected persons in consultations, by ensuring long-term communication and coordination between the affected communities and, generally, the self- government bodies. The grievance and complaints must be satisfied according to the process determined in the table below:

Grievance Resolution Process

Steps Action level Process Step 1 Negotiations with APs The complaint is informally reviewed by the grievance redress committee (GRCE), which takes all necessary measures to resolve the dispute amicably. Contact: GRCE, Gurjaani municipality, local liaison consultant; Access: in person; , by writing, by phones Expected maximum response times: 3 days

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Resettlement Action Plan Step 3 Decision from central If any aggrieved AP is unsatisfied with the GRCE decision, the next RDMRDI option will be to lodge grievances to the RDMRDI at the national level. The RDMRDI shall review the complaint in compliance with the procedures specified in the Administrative Code of Georgia. GRC should assist the plaintiff in lodging an official complaint (the plaintiff should be informed of his/her rights and obligations, rules and procedures of making a complaint, format of complaint, terms of complaint submission, etc). The plaintiff shall be informed of the decision. Contact: GRC, RDMRDI, social safeguard consultant; Access: by writing; Expected maximum response times: 2 weeks.

The template of the claims and remarks application is given in the Annex to the present leaflet.

5. Compensation and allowance rates

The compensation rates of various assets were evaluated according to the following principle:

- The agricultural land was evaluated at the resettlement rate. As there is no active land market on the territory affected by the project, the compensation for the lands was evaluated on the basis of productivity of the lands; - The compensation rates for the houses / buildings were evaluated individually for each building / construction according to the current market price of the type of building, cost of materials, labour costs, transportation and other building expenses. Transaction and amortization costs were not deducted; - The compensation rate for the annual crops was determined for the plant species according to their price on the field and their fruitfulness; - The fruit-bearing trees were evaluated according to their types, age and fruitfulness; - The allowance rates were determined according to the principles specified by the RAP and the official data of the minimum subsistence income of the 5-member family published by the date of approval of the RAP. The compensation and allowance rates were evaluated by an authorized independent appraiser. The evaluated compensation rates were verified and approved by the Roads Department.

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Resettlement Action Plan Application form for claims and remarks First name, surname,

Contact information Please specify Address:

Phone number: E-mail:

Description of an incident or a claim: What happened? Where did it happen? To whom it happened? What is the outcome of the problem?

The date of the incident / claim:

How can this problem be solved in your opinion?

Signature: Date:

Information for advice, please apply to

The Roads Department,

The Land Acquisition and Resettlement Division, №12, Al. Kazbegi ave., Tbilisi Tel:

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Resettlement Action Plan

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