East–West Highway (Khevi–Ubisa Section) Improvement Project: Resettlement Plan

Resettlement Plan

September 2018 Final

GEO: East–West Highway (Khevi–Ubisa Section) Improvement Project

E60 Highway Route, Section F2 (Khevi–Ubisa)

Prepared by the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia for the Asian Development Bank.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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

MINISTRY OF REGIONAL DEVELOPMENT AND INFRASTRUCTURE OF GEORGIA

ROADS DEPARTMENT

E60 HIGHWAY, SECTION F2 (KHEVI-UBISA)

LAND ACQUISITION AND RESETTLEMENT PLAN (LARP)

AUGUST 2018

CONTENTS

ABBREVIATIONS ...... 5 GLOSSARY OF TERMS ...... 7 EXECUTIVE SUMMARY ...... 9 1 INTRODUCTION ...... 15

1.1 FEATURES OF THE PROJECT ...... 15 1.2 THE IMPACT CORRIDOR AND FOOTPRINT ...... 16 1.3 LAR-RELATED PROJECT PROCESSING CONDITIONALITIES ...... 16 2 CENSUS AND IMPACT ASSESSMENT ...... 17

2.1 IMPACTS ASSESSMENT ...... 17 2.1.1 Land ...... 17 2.1.2 Crops ...... 18 2.1.3 Trees ...... 19 2.1.4 Impact on Structures ...... 20 2.1.5 Impact on Business ...... 20 2.1.6 Impact on Common Property ...... 21 2.1.7 Summary of Impact ...... 21 2.1.8 Economic significance of Project impacts on the APs livelihood ...... 22 2.2 AP’S CENSUS ...... 23 2.2.1 AH and AP affected by impacts on assets ...... 23 2.2.2 Resettlement Impacts ...... 23 2.2.3 Severely Affected AP ...... 23 2.2.4 Vulnerable People Households ...... 23 2.2.5 Indigenous Peoples ...... 25 2.2.6 Gender and Resettlement Impacts ...... 25 3 SOCIO-ECONOMIC INFORMATION ...... 27

3.1 METHODOLOGY ...... 27 3.2 GENERAL OVERVIEW ...... 27 3.3 SOCIO-ECONOMIC INFORMATION...... 27 3.3.1 Demography ...... 27 3.3.2 Education ...... 28 3.3.3 Occupation ...... 28 3.3.4 Income Sources of AHs ...... 29 3.3.5 Agriculture ...... 29 3.3.6 Community Services ...... 30 4 LEGAL AND POLICY FRAMEWORK ...... 31

4.1 GENERAL ...... 31 4.2 LEGAL FRAMEWORK ...... 31 4.2.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement ...... 31 4.2.2 ADB’s Policy on Involuntary Resettlement ...... 32 4.2.3 Synopsys of ADB Policy with Georgian Laws and Legislation ...... 33 4.2.4 Resettlement Policy Commitments for the Project ...... 34 4.2.5 Land Acquisition Process ...... 35 4.2.6 Expropriation ...... 36 4.2.7 Legalization ...... 37 4.3 COMPENSATION ELIGIBILITY AND ENTITLEMENTS ...... 37 4.3.1 Eligibility ...... 37 4.3.2 Definition of Entitlements ...... 37 4.3.3 Assistance for severely affected and Vulnerable AH ...... 42 4.3.4 Valuation and Compensation Rates ...... 42 4.3.4.1 Valuation of Land ...... 42 4.3.4.2 Valuation of Structures ...... 42 4.3.4.3 Valuation Method of Annual Crops ...... 43 4.3.4.4 Calculation methods of Compensation Costs for Perennials ...... 43 4.3.4.5 Methodology of valuation for business and job losses ...... 43

5 INSTITUTIONAL ARRANGEMENTS ...... 44

5.1 INTRODUCTION ...... 44 5.2 LAND ACQUISITION AND RESETTLEMENT ORGANIZATIONS ...... 44 5.2.1 RDMRDI of Georgia ...... 44 5.2.2 ETCIC ...... 45 5.2.3 Local Court LAR Team ...... 45 5.2.4 Local Governments ...... 46 5.3 LAND REGISTRATION ORGANIZATIONS ...... 46 5.3.1 Gamgeoba of Community ...... 46 5.3.2 Sakrebulo ...... 46 5.3.3 Property Rights Recognition Commission ...... 46 5.3.4 Local Registration Office ...... 47 5.4 OTHER ORGANIZATIONS AND AGENCIES ...... 47 5.4.1 Civil Works Contractor ...... 47 5.4.2 Consultants and Auditors ...... 47 5.4.3 Court of Georgia ...... 47 5.4.4 Ministry of Finance ...... 48 5.4.5 Ministry of Justice ...... 48 5.4.6 Ministry of Economy and Sustainable Development ...... 48 5.4.7 ADB ...... 48 5.4.8 Monitoring Agency...... 48 6 CONSULTATION AND PARTICIPATION ...... 50

6.1 OBJECTIVES OF PUBLIC INFORMATION AND CONSULTATION ...... 50 6.2 CONSULTATION DURING LARP PREPARATION AND IMPLEMENTATION ...... 50 6.3 PUBLIC INFORMATION BOOKLET ...... 51 6.4 DOCUMENTS DISCLOSURE ...... 51 7 GRIEVANCE REDRESS MECHANISM ...... 52

7.1 GRC RECORDS AND DOCUMENTATION ...... 55 7.2 SPECIAL RECOMMENDATIONS TO AP FOR LEGALIZATION PLOTS ...... 55 8 IMPLEMENTATION SCHEDULE ...... 56

8.1 GENERAL ...... 56 8.2 DETAILED DESIGN STAGE ...... 56 8.3 LARP APPROVAL AND INITIAL TASKS ...... 56 8.4 LARP IMPLEMENTATION STAGE ...... 57 8.5 LARP MONITORING STAGE ...... 58 8.6 IMPLEMENTATION SCHEDULE ...... 58 9 COSTS AND FINANCING ...... 61

9.1 COMPENSATION FOR LAND ...... 61 9.2 COMPENSATION OF STRUCTURES...... 61 9.3 COMPENSATION FOR HARVEST ...... 64 9.4 COMPENSATION FOR TREES ...... 65 9.5 RESETTLEMENT ASSISTANCE ...... 68 9.6 COMPENSATION FOR BUSINESSES ...... 68 9.7 RESETTLEMENT MANAGEMENT COST ...... 68 9.8 COST OF RESETTLEMENT ...... 69 10 MONITORING AND REPORTING...... 71

10.1 INTERNAL MONITORING ...... 71 10.2 EXTERNAL MONITORING ...... 71 10.3 POST IMPLEMENTATION EVALUATION ...... 72 ANNEXES ...... 74

ANNEX 1 LEGALIZATION OF PRIVATE OWNERSHIP OF LAND IN GEORGIA ...... 74 ANNEX 2 MINUTES OF MEETING BORITI ...... 80 ANNEX 3 MINUTES OF MEETINGS KHUNEVI ...... 88 ANNEX 4 MINUTES OF MEETINGS KHEVI...... 100

ANNEX 5 LIST OF PARTICIPANTS ON PUBLIC CONSULTATION ...... 108 ANNEX 6 SYNOPSIS OF SELECTED GEORGIA LAWS AND REGULATIONS ...... 112 ANNEX 7 PUBLIC CONSULTATION BOOKLET ...... 118 ANNEX 8 VALUATION METHODOLOGY ...... 126

List of Table TABLE 0-1 SUMMARY OF IMPACT ...... 9 TABLE 2-1 LAND BY USE AND LEGAL STATUS ...... 18 TABLE 2-2 IMPACT ON CROPS ...... 18 TABLE 2-3 IMPACT ON TREES ...... 19 TABLE 2-4 IMPACT ON STRUCTURES ...... 20 TABLE 2-5 SUMMARY OF IMPACTS ...... 21 TABLE 2-6 PROJECT IMPACT ...... 22 TABLE 2-7 RESETTLEMENT IMPACTS ...... 23 TABLE 2-8 VULNERABLE AHS ...... 25 TABLE 2-9 SUMMARY AH/APS ...... 25 TABLE 2-10 SUMMARY AH/AP BY IMPACT CATEGORY ...... 25 TABLE 3-1 CHARACTERISTICS OF APS ...... 28 TABLE 3-2 AGE AND SEX OF APS ...... 28 TABLE 3-3 EDUCATION LEVEL OF APS ...... 28 TABLE 3-4 OCCUPATION OF APS OVER 18 YEARS OLD ...... 29 TABLE 3-5 SOURCE OF INCOME AHS ...... 29 TABLE 3-6 MONTHLY INCOME OF APS ...... 29 TABLE 3-7 ANIMAL BREEDING AND HOUSEHOLDS ...... 29 TABLE 3-8 CROPS AND FAMILIES ...... 30 TABLE 3-9 AHS SELLING FARM PRODUCTS ...... 30 TABLE 3-10 AVERAGE DISTANCE FROM COMMUNITY SERVICES (KM) ...... 30 TABLE 4-1 COMPARISON OF GEORGIAN LAWS ON LAR AND ADB RESETTLEMENT POLICY, 2009 ...... 34 TABLE 4-2 ENTITLEMENT AND COMPENSATION MATRIX ...... 39 TABLE 6-1 CONSULTATIONS DURING LARP PREPARATION AND IMPLEMENTATION...... 51 TABLE 7-1 GRIEVANCE REDRESS COMMITTEE ...... 52 TABLE 7-2 GRIEVANCE REDRESS COMMISSION ...... 53 TABLE 7-3 GRIEVANCE RESOLUTION PROCESS ...... 54 TABLE 8-1 LARP IMPLEMENTATION SCHEDULE ...... 59 TABLE 9-1 COMPENSATION FOR LAND ...... 61 TABLE 9-2 COMPENSATION FOR STRUCTURES ...... 61 TABLE 9-3 COMPENSATION FOR HARVEST ...... 64 TABLE 9-4 COMPENSATION FOR TREES ...... 65 TABLE 9-5 RESETTLEMENT ASSISTANCE ...... 68 TABLE 9-6 COMPENSATION FOR BUSINESSES ...... 68 TABLE 9-7 RESETTLEMENT MANAGEMENT COST ...... 69 TABLE 9-8 RESETTLEMENT BUDGET ...... 69

LIST OF FIGURES

FIGURE 1 PROJECT ALIGNMENT ...... 15 FIGURE 2 LAR ORGANIZATION CHART ...... 49 FIGURE 3 GRIEVANCE ORGANIZATION CHART ...... 55

ABBREVIATIONS ACS Acquisition and compensation scheme ACM Acquisition and Compensation matrix ADB Asian Development Bank AH Affected Household AP Affected Person CBO Community based organization CSC Construction supervision consultant DD Detail Design DMS Detailed measurement survey EMA external monitoring agency ETCIC Eurasian Transport Corridor Investment Center ESIA Environmental and Social Impact Assessment EWHCIP East West Highway Corridor Improvement Project FS Feasibility Study GoG Government of Georgia GPS Global Positioning System GRCE Grievance Redress Committee GRCN Grievance Redress Commission GRM Grievance Redress Mechanism HH Household IA implementing agency IP indigenous peoples Km Kilometer LAR land acquisition and resettlement LARC land acquisition and resettlement commission MOES Ministry of Economic and Sustainable Development M&E monitoring and evaluation MTFF Multi Tranche Financial Facilities MOF Ministry of Finance MPR monthly progress report MRDI Ministry of Regional Development and Infrastructure NAPR National Agency of Public Registry PIB Public Information Booklet PR Public Relation PRRC Property Rights Recognition Commission NGO non-governmental organization

LARP Land acquisition and resettlement plan RD Roads Department of the Ministry of Regional Development and Infrastructure of Georgia

Right of way ROW Socioeconomic survey SES Safeguard Policy Statement SPS

In this report “$” refers to US dollars 1$=2.43 GEL (17th of May 2018) (https://www.nbg.gov.ge/index.php?m=582&lng=eng)

GLOSSARY OF TERMS Affected All members of a household residing under one roof and operating as a Household single economic unit, who are adversely affected by the Project. It may (AH) consist of a single nuclear family or an extended family group. Affected Individuals affected by Project-related impacts. People (AP) Eligibility Means any person(s) who at the cut-off-date was located within the area affected by the project, its sub-components, or other subproject parts thereof, and are affected by the project. Eligibility is irrespective of (a) formal legal rights to land, or (b) customary claim to land or asset, or (c) no recognizable legal right or claim to the land APs are occupying. Entitlement Means the range of measures comprising cash or kind compensation, relocation cost, rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to APs, depending on the type and degree nature of their losses, to restore their social and economic base. Land Means the process whereby a person is compelled by the Government acquisition through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the State in the implementation of the Project or any of its components in return for consideration. Replacement Means the method of valuing assets to replace the loss at market value, cost or its nearest equivalent, plus any transaction costs such as administrative charges, taxes, registration, and titling costs. Where national law does not meet this standard the replacement cost will be supplemented as necessary. Replacement cost is based on market value before the project or dispossession, whichever is higher. In the absence of functioning markets, a compensation structure is required that enables affected people to restore their livelihoods to levels at least equivalent to those maintained at the time of dispossession, displacement, or restricted access. For loos that cannot easily be valued or compensated for in monetary terms (e.g. access to public services, customers, and supplies; or to fishing, grazing, or forest areas), attempts are made to establish access to equivalent and culturally acceptable resources and earning opportunities. Rehabilitation Means the measures required to (i) restore access to public facilities, infrastructure, and services; (ii) cultural property and common property resources; (iii) mitigate loss of access to cultural sites, public services, water resources, grazing, or forest resources including establishment of access to equivalent and culturally acceptable resources and income- earning opportunities; and, (iv) restore the economic and social base of APs seriously affected by the loss of assets, incomes, and employment. All such people will be entitled to rehabilitation assistance measures for restoring incomes and living standards. Such measures must be determined in consultation with APs, including any APs whose rights might not be formally recognized. Resettlement Means full or partial, permanent or temporary physical displacement (relocation, loss of residential land/ or shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to parks and

protected areas. The definition applies to impacts experienced, regardless of whether it involves actual relocation. Land Means the time-bound action plan prepared to compensate and/or acquisition mitigate the impacts of resettlement. and resettlement plan Relocation Means the physical shifting of APs from his/her pre-project place or residence, place for work or business premises. Sakrebulo This is the representative body of local self-government. The middle level of local government consists of 67 municipalities and six cities in Georgia: Tbilisi, Kutaisi, Rustavi, Poti, Batumi and Sukhumi. The representative branch of municipality level is the municipality level Local Councils (Municipality Sakrebulo) and the executive branch is represented by Municipality 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. Severely include those AHs (i) losing 10% or more than 10% of their productive affected assets/income generating which is the total land holding of the AH household compared to the affected land by the project, (ii) physically displaced HH and (iii) households losing commercial/business establishments. Informal Non-legalizable AHs losing agricultural land plot, which is the only land Settlers plot owned by AH and provides main source of income for AH. Vulnerable Particularly disadvantaged Households who might suffer Households disproportionately or face the risk of being marginalized from the effects of land acquisition and resettlement. These are; (i) female-headed households with and/or without dependents; (ii) disabled household heads; (iii) poor households as defined by the official poverty line; (iv) elderly households with no means of support; (v) households without security of tenure; (vi) cultural or ethnic minorities; and (vii) refugees or internally displaced people.

EXECUTIVE SUMMARY

(i) This Land Acquisition and Resettlement Plan (LARP) has been prepared by the Road Department (RD) of the Ministry of Regional Development and Infrastructure (MRDI) of the Georgia for the 12. 5 km-long Khevi-Ubisa Road (the Project) which is expected to be financed under a proposed loan of the Asian Development Bank (ADB). MRDI is the Project’s executing agency (EA) and the RD is the implementing Agency (IA).

(ii) This LARP is a final implementation-ready document based on a final road alignment and final impact figures/implementation arrangements and fully reflects the provisions of relevant Georgian Laws and the provisions of the ADB Safeguards Policies Statement of 2009 (SPS 2009)..

(iii) Based on the impacts assessment carried out during LARP preparation and impact categories defined by SPS 2009 the Project is classified as category A for involuntary resettlement, and as category C for Indigenous Peoples (IP).

(iv) The impacts and the number of Affected People (AP) are summarized below in Table 0- 1.

Table 0-1 Summary of Impact N Impacts Unit Land Tenure Patterns 1. Total Land parcels affected № 374 2. Total land Area to be acquired Sq.m 479763 195 3. Category 1. Private Registered Plots-Agricultural № Sq.m 209972 29 4. Category 2. Private Registered Plots- Agricultural/residential № Sq.m 88675 13 5. Category 3. Private Registered Plots- Residential № Sq.m 26362 6 6. Category 4. Private Registered Plots- Industrial/commercial № Sq.m 8609 0 7. Category 5. Private Registered Plots-Pasture № Sq.m 0 105 8. Category 6. Private Legalizable Plots-Agricultural № Sq.m 109121 4 9. Category 7. Private Legalizable Plots- Agricultural/residential № Sq.m 14838 0 10. Category 8. Private Legalizable Plots- Residential № Sq.m 0 1 11. Category 9. Private Legalizable Plots- Industrial/commercial № Sq.m 185 0 12. Category 10. Private Legalizable Plots-Pasture № Sq.m 0 8 13. Category 11. Private Non Legalizable Plots-Agricultural № Sq.m 16653 0 14. Category 12. Private Non Legalizable Plots- Agricultural/residential № Sq.m 0 0 15. Category 13. Private Non Legalizable Plots- Residential № Sq.m 0 0 16. Category 14 Private Non Legalizable Plots- Industrial/commercial № Sq.m 0 0 17. Category 15. Private Non Legalizable Plots-Pasture № Sq.m 0 13 18. Category 16. State Owned Public Plots № Sq.m 5348 Agricultural Patterns 19. Corn Sq.m 47277

N Impacts Unit Land Tenure Patterns 20. Beans Sq.m 41157 21. Soybean Sq.m 9936 22. Pumpkin Sq.m 17785 23. Potatoes Sq.m 200 24. Cucumber Sq.m 240 25. Tomato Sq.m 330 26. Eggplant Sq.m 0 27. Strawberries Sq.m 2770 28. Garlic Sq.m 90 29. Onion Sq.m 0 30. Herbs Sq.m 25 31. Raspberries Sq.m 1200 32. Leeks Sq.m 30 33. Cabbage Sq.m 0 34. Oats Sq.m 100 35. Other vegetables Sq.m 1574 36. Affected Trees № 69346 Affected Structures 37. Residential houses № 52 38. Auxiliary buildings № 245 39. Commercial/Industrial Buildings № 5 40. Public buildings and structures № 5 Affected Households 41. Severely affected Households1 № 202 42. Vulnerable Households № 55 43. Resettled households № 52 44. AHs losing non-legalizable land plots № 7 45. AH losing Jobs № 6 46. Total AH № 213 47. Total Affected Persons № 887

(v) A grievance redress mechanism (GRM) is established during consultations to allow affected persons appealing any disagreeable decision, practice or activity arising from land or other assets compensation. The broad structure, procedure and function of GRM were discussed during the consultations meetings. In the course of public consultation meetings the APs were informed their rights and of the procedures for addressing complaints whether verbally or in writing. Grievance Redress Committees (GRCEs) was established before the start of LARP implementation at Municipality level (Kharagauli Municipality) and includes representatives of the mayor, of the village governments and of the APs (including a woman AP). Complaints resolution will be first attempted at Municipality level GRCE. If any aggrieved AP is unsatisfied with the GRCE decision at Municipality level, the complaint will be raised to the Resettlement Division of RDMRDI within 2 weeks after receiving the decision from GRCN. The grievance mechanism should not impede access to the country’s judicial or administrative remedies. Affected Persons can approach the court of law at any time and independent of grievance redress process.

1 Numbers and distribution (in terms of loss of percentage of income generating land/assets will be cross checked and adjusted during LARP implementation. Livelihood impacts on severely affected and vulnerable households will be fully identified during implementation and additional assistance provided if deemed appropriate from the perspective of compliance with SPS 2009.

(vi) An entitlements matrix is provided in Table 0-2. Table 0-2 Entitlement Matrix

Type of Loss Application Definition of AH/APs Compensation Entitlements Land Agricultural Land: AP losing Registered Cash compensation at full Permanent land loss, productive land Owner/Legal: replacement cost based on current access or damage. regardless of Owner with full market value. If the residual plot impact severity registration becomes unviable for cultivation, the project will acquire it if the owner so desire. Legalizable Owner: The ownership rights of these APs (APs with title will be recognized, the land formalization pending registered in NAPR and the APs and APs who are not provided with cash compensation at registered but full replacement cost. Registration legitimately use the land costs will be paid by the Project. and have residential land or agricultural plots adjacent to the residential land) Non-legal/Informal Non-legalizable APs losing Settler: agricultural land plot, which is the APs that are not only land plot owned by AH and legitimate land users or provides main source of income for squatters AH, will be compensated with one time allowances in cash equal to 1 year of minimum subsistence 2 allowance.... Agricultural Tenant Full Compensation of income of lost crops x the remaining years (up to 4 years) of lease. In case of tenancy no crop compensation will be given to the land owner. Non-Agricultural AP losing Registered Cash compensation at full Land their Owner/Legal: replacement cost. commercial/ (Owner with full residential registration) land Legalizable Owner: The ownership rights of these APs (The owners legalizable will be recognized, the land according to active registered in NAPR and the APs legislation) provided with cash compensation at full replacement cost. Registration costs will be paid by the Project.

Non-legal/Informal Non-legalizable APs losing land plot, Settler which is the only land plot used for (Without registration/valid residence or providing main source documents using land of income for AH, will be permanently.) compensated with one time self- relocation allowances in cash equal to 1 year of minimum subsistence allowance.

2 Minimum subsistence allowance: the amount will be checked and updated, if required, at the time of compensation, to reflect current rate.

Type of Loss Application Definition of AH/APs Compensation Entitlements Temporary Impact on N/A N/A Temporary land impacts will be land plot compensated based on the productive value of the plot during the period of impact and after their use will be re-established by the EA at the pre- impact productive conditions.. Buildings and Structures Residential and non- All AHs regardless of Cash compensation for residential their legal ownership/ building/structures losses at full structures/assets registration status replacement costs free of (including legalizable depreciation and transaction costs and Informal Settlers) Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Publ Community/Government Reconstruction of the lost property resources ic Assets resource/asset in consultation with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops All APs regardless of Crop compensation in cash at affected or legal status (including market rate by default at to gross affected legalizable and Informal crop value of expected harvest. agricultural land, Settlers) used permanently for crop cultivation. Trees Trees affected All APs regardless of Cash compensation at market rate legal status (including on the basis of type, age and legalizable and Informal productive value of the trees. (Based Settlers) on the expected yield of the tree, multiplied by the number of years required to grow a tree of equivalent productivity). Business/Employm Business/emplo All APs regardless of Owner: ent yment loss legal status (including (i) (permanent impact) cash legalizable and Informal indemnity of 1 year net income or in Settlers) the absence of income proof, One time minimum subsistence allowance in cash up to 12 months; (ii) (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 allowance for months of business stoppage; Permanent worker/employees: indemnity for lost wages equal to One time minimum subsistence allowance in cash for 3 months.Business income shall also cover all individual value-added activities beyond direct consumption/sale of agricultural produce (i.e. informal business activities at household level which are currently unaccounted for due to the lack of economic activity data for

Type of Loss Application Definition of AH/APs Compensation Entitlements the affected populations). There will be a verification process during the LARP implementation to fully account for such activities.

Allowances Severe Impacts >10% income All severely affected AHs Agricultural income: 1 additional loss including informal crop compensation for 1 year’s yield of settlers affected land and/or, for other incomes: an allowance covering 3 months of minimum subsistence. Relocation/Shifting Transport/transit All AHs to be relocated An allowance covering transport and ion costs livelihood expenses for the transitional period. (200 GEL as vehicle hire charge + minimum subsistence allowance x 3 months. Vulnerable People Particularly One time minimum subsistence Allowances disadvantaged allowance in cash for 3 months and Households who might employment priority in project- suffer disproportionately related jobs where feasible or face the risk of being Additional assistance in kind will be marginalized from the provided to facilitate relocation or effects of land transition – this may include acquisition and (logistics, relocation planning, resettlement. These are; assistance with replacement (i) female-headed housing search, as appropriate). households with and/or without dependents; (ii) disabled household heads; (iii) poor households as defined by the official poverty line; (iv) elderly households with no means of support; (v) households without security of tenure; (vi) cultural or ethnic minorities; and (vii) refugees or internally displaced people. Unforeseen impacts Impacts during All APs Due compensation to be assessed during construction, construction to and paid when the impacts are including temporary properties or identified based on the above impacts and impacts assets out of the provisions and on the requirements on livelihoods not corridor of of SPS 2009. otherwise assessed. impact or RoW Impacts related to Temporary or APs using affected Adequate livelihood assistance for spoil disposal areas permanent pasture lands loss of hay and grazing grounds, if and construction impacts any, will be assessed and provided camps. during implementation.

(vii) RDMRDI has lead responsibility for implementation of the Project as well acquisition of land and implementation of the LARP. RDMRDI is assisted by a number of other government departments and private agencies in the design, construction and operation of the Project. Pursuant to the active legislations, National Agency of Public Registry (NAPR) within the

Ministry of Justice is in charge of the recognition of ownership rights of rightful owners, registration of land ownership, with process verification and certification from village communities, Notaries, Property Rights Recognition Commission (PRRC), and Sakrebulo. Municipality NAPR is also responsible for registering transfer of acquired land from landowners to the RDMRDI. The local government at Municipality and Sakrebulo levels are involved in the legalization of legalizable land parcels and subsequently land acquisition and resettlement of APs. The Ministry of Natural Resources and Environmental Protection is responsible for environmental issues.

(viii) The implementation schedule of the LARP will be integral part of the project implementation schedule. All activities related to LAR will be planned so as to ensure that compensation is paid prior to displacement and commencement of civil works. Public consultation, monitoring and grievance redress will be undertaken throughout the implementation of LARP and during construction. RDMRDI will monitor the progress of implementation of the LARP and will submit semiannual monitoring report to ADB. Monitoring reports will be disclosed to the APs semi-annually and will be disclosed in the website of ADB and RDMRDI. RDMRDI will monitor the progress of implementation of the LARP and semiannual monitoring report will be submitted by RDMRDI to ADB.

(ix) An additional 14 properties as identified in the EIA where project standards for future noise during operation of the road will not be met may also be required for inclusion to the LARP and this will be subject to a Corrective Action Plan. However, it should be noted that none of these properties would be required as part of construction process as they are located outside of the ROW.

1 INTRODUCTION

1. This Land Acquisition and Resettlement Plan (LARP) has been prepared by the Road Department (RD) of the Ministry of Regional Development and Infrastructure (MRDI) of the Republic of Georgia for the 12. 5 km-long Khevi-Ubisa Road (the Project) which is expected to be financed under a proposed loan of the Asian Development Bank (ADB). MRDI is the Project’s executing agency (EA) and the RD is the implementing Agency (IA).

2. This LARP is a final implementation-ready document based on a final road alignment and final impact figures/implementation arrangements and fully reflects the provisions of relevant Georgian Laws and the provisions of the ADB Safeguards Policies Update of 2009 (SPS 2009).

3. Based on the impacts assessment carried out during LARP preparation and impact categories defined by SPS 2009 the Project is classified as category A for involuntary resettlement. As there are no Indigenous Peoples affected by the construction of the road the Project is classified as category C for Indigenous Peoples (IP).

1.1 Features of the Project

4. The Project road is entirely located in the Imereti region and starts at the end of Section F1 of the corridor of Highway 60 at km 8+750. The total length of the Project is 12. 197 km. The Road runs across one municipality (Kharagauli) through the community of Khevi and four villages: Tsitskiuri, Khunevi, Vertkvichala and Boriti. The Project alignment map is in included below in table 1-2.

Figure 1 Project Alignment

5. The project will require a large disposal area which was found near Boriti, on a plateau. The area measures about 50 hectares, it is enough to contain the materials excavated for the road and will not require land acquisition as it is located in public land. Before starting construction the RD will work with the contractors to ensure that proper LAR due diligence

regarding the area is carried out. In case the use of the area or the construction of roads to access it will raise unexpected LAR issues a LARP addendum fitting the entitlement matrix included in this LARP will be prepared before ADB provides no-objection to start civil works.

1.2 The impact corridor and footprint

6. The length of the project is 12.2 Km, which pass through pass through mountainous area and very few flat area. The final design include construction of road with 35 bridges ( 8.300 m), 3 interchanges ( one shared with the F3 section and one with the F1); 13 tunnels ( 9.133mt) out of which 2 that have to be rehabilitated, 4 new single way and 7 double way other than necessary culverts for ensuring services and all other connected roads.

7. The average width of this roads ROW is 120 m. The total foot print of the road is 923.736 sq.m (tunnel excluded). The span length of bridges varies from 33 meters up to 1.360 meters.

1.3 LAR-related Project Processing Conditionalities

8. The LAR-related conditionalities for the processing and the implementation of the Project are as follows:

(i) Loan Signing: conditional to approval of this implementation-ready LARP by ADB and the Government of Georgia. (ii) Notice to proceed to contractors: conditional to: a) the full and proper implementation of the Final LARP with full satisfaction of the RD and ADB, and b) the execution of due-diligence action for disposal areas and, if necessary, the preparation and implementation of a LARP addendum acceptable to the RD and ADB 9. The preparation of an independent compliance report vouching for the above actions to be submitted to ADB.

2 CENSUS AND IMPACT ASSESSMENT

10. The base-line information on the impacts caused by the Project and on the identification/quantification of the AH/AP was gathered through survey and inventory activities in the field which started on 17 May 2018 and ended on 23 June 2018.

11. Following a preliminary identification of the impacts based on a survey of existing cadastral maps the LARP preparation team initiated a Detailed Measurement Survey (DMS) in the field. In the course of the implementation of the DMS each affected plot and asset was measured anew. Based on DMS measurements the data obtained through the preliminary cadastral survey where updated and corrected. Additional fine-tuning of the impact data was then done after the finalization of the detailed engineering design. This work was complemented by a survey of Public Registry records aiming at identifying the legal status of each affected asset.

12. In parallel with DMS activities all affected assets were valued by an accredited valuator. Land was valued at market value based on the comparative method. Buildings where valued at full replacement cost (without discount for depreciation and salvaged materials) based on cost of materials, transport of materials, labor and construction taxes and fees.

13. Also in parallel with the conduction of the DMS all AH/AP where identified, quantified and interviewed. In the course of the interviews each AH was censed in detail to obtain for a socio-economic profile of the AH and assess its specific impacts conditions. In the course of the census all AH were identified also in terms of the AP categories defined by the LARP. In order to fully understand impacts on livelihoods, particularly among severely affected and vulnerable groups, the socio-economic profiles will be updated during LARP implementation. Impacts on livelihood, including subsistence agriculture, will be fully assessed at that time and, if required, additional livelihood restoration will be provided. A report on the additional socioeconomic profiling and livelihood impacts will be provided to ADB and to the External Monitor prior to completion of LARP implementation or acceptance of compliance report. The additional socio-economic information will include, inter alia: (i) employment status and area of occupation for household heads; (ii) main source of income for households; and (iii) share of total consumption/income coming from agricultural activities, and especially subsistence agriculture.

14. The compensation eligibility cut-off-date for section F2 is considered to be May 17, 2018, which is the start of the DMS and AP census survey.

2.1 IMPACTS ASSESSMENT

2.1.1 Land

15. According to the survey results, mentioned road section will affect 479763 land plots. of these 361 Plots are under private property/use and 13 are public.

16. Based on use categories land losses and number of affected plots are subdivided as follows: a) agricultural land 335746 sq.m and 308 plots; b) agricultural/residential3 103513 sq.m and 33 plots; c) Residential 26362 sq.m and 13 plots; d) Industrial/Commercial 8794 sq.m and 7 plots; f) Public land 5348 sq.m and 13 plots.

17. Based on legal categories land losses and number of affected plots are subdivided as follows: a) legal 335919 sq.m 249.plots; b) legalizable 127191 sq.m and 117 plots; c) non- legal 16653 sq.m and 8 plots.

18. The information on land impacts by use and legal status is given in Table 2.1 below.

Table 2-1 Land by use and Legal status Land type by use Total Legal Legalizable Non Legal sq.m plots sq.m plots sq.m plots sq.m plots Agricultural 209972 195 109121 105 16653 8 335746 308 Agricultural/residential 88675 29 14838 4 0 0 103513 33 Residential 26362 13 0 0 0 0 26362 13 Industrial/commercial 8609 6 185 1 0 0 8794 7 Pasture 0 0 0 0 0 0 0 0 Public Plots 2301 6 3047 7 0 0 5348 13 Total 335919 249 127191 117 16653 8 479763 374

2.1.2 Crops

19. The project will affect 335746 sq.m of agricultural land. This area subdivided by crop and relative number of plots is as follows: a) beans sq.m 41157 on 62 plots, b) corn 47277sq.m 67 plots, c) pumpkin 17785 sq.m 15 plots and other vegetables. Detailed information is presented below table 2-2

Table 2-2 Impact on crops

Agricultural crop Area Number of plots

Corn 47277 67 Bean 41157 62 Soybean 9936 10 Pumpkin 17785 15 Potatoes 200 2 Cucumber 240 6 Tomato 330 6 Eggplant 0 0 Strawberries 2770 23 Garlic 90 3

3 This land category is the result of a divergence between land classification and land use which refelects the ongoing process of updating land registration records in Georgia. These are cases where the plot was not yet reclassified based on current use. For purposes of compensation these plots will be compensated as if they were residential.

Agricultural crop Area Number of plots

Onions 0 0 Herbs 25 2 Raspberries 1200 2 Leeks 30 1 Cabbage 0 0 Oats 100 1 Vegetables 1574 19 Total 122714

2.1.3 Trees

20. According to survey impact zone the Project will affect 69346 trees. Their type and age group is detailed in table 2-3 below.

Table 2-3 Impact on trees

Age of the tree Type of tree Seedlings Total number of tree 5-10 11-20 21+ <5 Cherry(sweet cherry) 412 836 258 89 1595 Peach 49 149 12 1 211 Walnut 186 242 285 329 1042 Quince 24 51 96 13 184 Pear 80 225 182 162 649 Plum (variety of plum) 454 611 297 56 1418 Mulberry 142 275 172 33 622 Hazelnut 756 1659 931 220 3566 Sour plum (cherry plum) 335 1138 515 96 2084 Apply 114 412 196 87 809 Vine 597 1249 4930 7073 13849 Fig 129 452 315 58 954 Lemon 0 1 0 0 1 Bay-tree 12 34 206 0 252 Barberries 8 29 9 2 48 Mildness 11 37 19 9 76 Loquat 3 3 2 0 8 Pomegranate 26 155 174 29 384 Persimmon 227 495 378 135 1235 Chestnut 3 7 4 4 18 Dogwood 7 17 3 0 27

Age of the tree Type of tree Seedlings Total number of tree 5-10 11-20 21+ <5 Raspberry 19709 12685 6986 0 39380 Currant 16 21 0 0 37 Jujube 18 17 6 1 42 Staphylea 41 296 209 143 689 Kiwi 1 1 0 0 2 Almond 1 0 1 0 2 Boxwood 0 1 0 0 1 Strawberry tree 0 1 0 0 1 Blackberry 148 11 0 0 159 Hawthorn 0 0 1 0 1 Total 69346

2.1.4 Impact on Structures

21. Under the impact of this project there are 307 buildings which will be demolished during the construction of the road. Of these 307 Buildings, 52 residential houses, 247 are auxiliary buildings and 5 are commercial buildings.

Table 2-4 Impact on Structures

Type of building Number No. of households

Residential 52 52 Auxiliary 245 38 Commercial/Industrial 5 5 Public Structures 5 0 Total 307

22. An additional 14 properties as identified in the EIA where project standards for future noise during operation of the road will not be met may also be required for inclusion to the LARP and this will be subject to a Corrective Action Plan. However, it should be noted that none of these properties would be required as part of construction process as they are located outside of the ROW.

2.1.5 Impact on Business

23. The AH affected by business losses are 3, the employees affected by loss of jobs are 6. In bakery and shop works only owner of the business.

Table 2-5 Business and employment impacts

N Type of business N of employees 1 Shop 0 2 Bakery 0 3 Restaurant 6

2.1.6 Impact on Common Property

24. Under the impact of the project there will be affected community center of the Khevi village and three football/basketball playground and auxiliary building of kinder garden in Boriti.

2.1.7 Summary of Impact

25. Table 2-5 below summarizes the Project Impacts.

Table 2-5 Summary of impacts

N Impacts Unit Land Tenure Patterns 48. Total Land parcels affected № 374 49. Total land Area to be acquired Sq.m 479763 195 50. Category 1. Private Registered Plots-Agricultural № Sq.m 209972 29 51. Category 2. Private Registered Plots- Agricultural/residential № Sq.m 88675 13 52. Category 3. Private Registered Plots- Residential № Sq.m 26362 6 53. Category 4. Private Registered Plots- Industrial/commercial № Sq.m 8609 0 54. Category 5. Private Registered Plots-Pasture № Sq.m 0 105 55. Category 6. Private Legalizable Plots-Agricultural № Sq.m 109121 4 56. Category 7. Private Legalizable Plots- Agricultural/residential № Sq.m 14838 0 57. Category 8. Private Legalizable Plots- Residential № Sq.m 0 1 58. Category 9. Private Legalizable Plots- Industrial/commercial № Sq.m 185 0 59. Category 10. Private Legalizable Plots-Pasture № Sq.m 0 8 60. Category 11. Private Non Legalizable Plots-Agricultural № Sq.m 16653 0 61. Category 12. Private Non Legalizable Plots- Agricultural/residential № Sq.m 0 0 62. Category 13. Private Non Legalizable Plots- Residential № Sq.m 0 0 63. Category 14 Private Non Legalizable Plots- Industrial/commercial № Sq.m 0 0 64. Category 15. Private Non Legalizable Plots-Pasture № Sq.m 0 13 65. Category 16. State Owned Public Plots № Sq.m 5348

N Impacts Unit Agricultural Patterns 66. Corn Sq.m 47277 67. Beans Sq.m 41157 68. Soybean Sq.m 9936 69. Pumpkin Sq.m 17785 70. Potatoes Sq.m 200 71. Cucumber Sq.m 240 72. Tomato Sq.m 330 73. Eggplant Sq.m 0 74. Strawberries Sq.m 2770 75. Garlic Sq.m 90 76. Onion Sq.m 0 77. Herbs Sq.m 25 78. Raspberries Sq.m 1200 79. Leeks Sq.m 30 80. Cabbage Sq.m 0 81. Oats Sq.m 100 82. Other vegetables Sq.m 1574 83. Affected Trees № 69346 Affected Structures 84. Residential houses № 52 85. Auxiliary buildings № 245 86. Commercial/Industrial Buildings № 5 87. Public buildings and structures № 5 Affected Households 88. Severely affected Households № 202 89. Vulnerable Households № 55 90. Resettled households № 52 91. AHs losing non-legalizable land plots № 7 92. AH losing Jobs № 6 93. Total AH № 213 94. Total Affected Persons № 887

2.1.8 Economic significance of Project impacts on the APs livelihood

26. Project will impact totally 374 land plots, from them 343 will be severally affected out which 285 will be fully acquired. Detailed information about impact is presented below in table Table 2-6 Project impact Impact level 10-24% 25-49% 50-74% 75-99% 100% No. of plots 23 22 11 2 285 % of plots 6% 6% 3% 1% 76%

27. Out of 213 families 202 is severely affected and out of them 51 relocated. Even though only 73 families have crops only 10 families indicated that they are selling corn. During socioeconomic survey only 20 families indicated as one of the income sources agriculture. Main income of the villages is wage salary or pension. Mentioned only 6 AHs indicated percentage of the income form agriculture and other activities.

2.2 AP’s census

2.2.1 AH and AP affected by impacts on assets

28. The Project will impact a total of 213 Households (AHs) and 887 individuals (APs). The AH losing agricultural land are 196 AH, those losing residential or agricultural/residential land are 31, those losing industrial/commercial land are 5. The number of public entities losing land is 13.

29. As per structure losses 51 AH will be losing a residential structure and 38 AH will lose auxiliary structures, 5 AH are losing commercial land. The Public entities losing structures are 4.

30. The AH losing crops are 73 and the AH losing trees are 193. For what concerns Business and employments the AH losing a commercial enterprise are 3 while those losing employment are 6.

2.2.2 Resettlement Impacts

31. The Project will require the resettlement of 52 AH. In the table 2-7 below is shown information about resettled AHs by villages.

Table 2-7 Resettlement Impacts

Village N of relocated families Boriti 1 Grigalati 9 Sakasria 12 Vertkvichala 11 Khevi 4 Khunevi 15 Total 52

2.2.3 Severely Affected AP

32. In all 202 AHs will be severely affected due to loss of more than 10% of income producing land or income.4

2.2.4 Vulnerable People Households

33. Vulnerable people are particularly disadvantaged households who might suffer disproportionately or face the risk of being marginalized from the effects of land acquisition

4 Numbers and distribution (in terms of loss of percentage of income generating land/assets will be cross checked and adjusted during LARP implementation. Livelihood impacts on severely affected and vulnerable households will be fully identified during implementation and additional assistance provided if deemed appropriate from the perspective of compliance with SPS 2009.

and resettlement. These are: (i) female-headed households with and/or without dependents; (ii) disabled household heads; (iii) poor households as defined by the official poverty line; (iv) elderly households with no means of support; (v) households without security of tenure; (vi) cultural or ethnic minorities; and (vii) refugees or internally displaced people. The vulnerable AHs affected by the Project are 55. These include 39 Poor AHs, 10 AHs with disabled persons, and 6 lonely pensioners. (Table 2.8).

Table 2-8 Vulnerable AHs Category of AHs AH Reconciliation x double counting Poor households receiving 39 subsidies Women headed 0 households Lonely pensioner 6 4 families (not included in 10 AHs) with disabled person are also below poverty line and included in category AHs with 10 Poor HH receiving subsidies disabled member Total vulnerable 55

2.2.5 Indigenous Peoples

34. An assessment of impact on indigenous peoples was undertaken in accordance with ADB’s Safeguard Requirements 3 of SPS 2009. The project will not affect People classifiable as IP under SPS 2009 and the Project will not trigger the ADB’s policy on IP.

2.2.6 Gender and Resettlement Impacts

35. The project impact extends to 429 male and 458 female Aps. The Impacts on AH and Aps are summarized in tables 2.7 and 2-8 below.

Table 2-9 Summary AH/APs

Particulars Quantity Total number of Ahs 213 Total number of Affected Persons 887 Male Affected Person 429 Female Affected Person 15458

Table 2-10 Summary AH/AP by Impact category

No. of AHs Impact Category Absolute (no Remarks Partial double counting) A. Land A1. Agricultural land 196 196 A2. Agricultural /residential; 31 10 21 HHs ae included in A1. A3. Residential 13 5 8 HHs ae included in A1. A4. Non-agricultural land 5 2 3 HHs ae included in A1. Sub-total (A) 245 213 B. Land tenure patterns All HHs are included in categories B1. Registered Owner 155 0 A1, A2, A3 or A4 All HHs are included in categories B2. Legalizable Owner 82 0 A1, A2, A3 or A4 All HHs are included in categories B3. Non-Legalizable Owner 7 0 A1, A2, A3 or A4

No. of AHs Impact Category Absolute (no Remarks Partial double counting) All HHs are included in categories B4.Agricultural Tenant 0 0 A1, A2, A3 or A4 Sub-total (B) 244 0 C. Crops /Trees All HHs are included in categories C1. Crops Losses 73 0 A1, A2, A3 or A4 All HHs are included in categories C2. Tree Losses 193 0 A1, A2, A3 or A4 Sub-total (C) 266 0 D. Permanent Structure All HHs are included in categories D1. Residential Structure 52 0 A1, A2, A3 or A4 All HHs are included in categories D2. Auxiliary Structure 38 0 A1, A2, A3 or A4 All HHs are included in categories D3. Commercial/Industrial 5 0 A1, A2, A3 or A4 Sub Total (D) 94 0 All HHs are included in categories E. Relocated AH 52 0 A1, A2, A3 or A4 All HHs are included in categories F. Vulnerable AH 55 0 A1, A2, A3 or A4 Total 213

3 SOCIO-ECONOMIC INFORMATION

3.1 Methodology

36. A socio-economic survey of the AHs available on site was conducted covering 177 households which is more than 80% of the total AHs covered in census. The objective of the socioeconomic survey was to gather general information on socioeconomic condition of the affected people.

3.2 General Overview

37. Imereti is one of the main historical, economic, cultural and educational regions of Georgia with an area of 6.6 thousand sq. km (11 % of Georgia) and a population of 700 thousand people (16 % of Georgian population).

38. The minor Imereti is divided into two parts: Upper (Zemo) and Lower (Kvemo) Imereti. Imereti Region in geographic terms is situated in the central part of Georgia. Imereti occupies a territory of approximately 6,552 km² (9.4 percent of Georgia area) and consists of 12 administrative district.

39. There are up to 542 settlements in the region of Imereti which: 10 cities and 529 villages. The population of Imereti is about 703,485 (16 percent of Georgia population) at density 107 people/km².

40. Settlements and villages traversed by the old and new road are part of Kharagauli municipality (with an area of 913, 9 km2) located in the geographical center of Georgia, in the south-eastern part of the Imereti Region.

41. The villages located in the Kharagauli municipality, near the highway are: Boriti, Khevi, Khunevi, Makatubani, Vertkvichala, and Sakasria. This villages are part of two administrative units, which are Khevi and Khunevi.

42. According the National Statistician Institute the population of Georgia decreased by 765.600 units that means a loss equal to the 17,1% in 5 years. The Imereti Region as population quantities is the second region, being the metropolitan/region area of Tbilisi the more populated containing almost one third of the entire population. The Imereti Region lost from 2013 to 2017 the 24, 7% of the residents and the loss was equal to 174.200 people, because of socio-economic conditions in region, people migrates in other cities of Georgia or aboard for work and education, which is not unusual in regions of Georgia.

3.3 SOCIO-ECONOMIC INFORMATION

43. The socioeconomic information of the affected population as per census and socioeconomic survey are here by disclosed.

3.3.1 Demography

44. The Census identifies that about 49% of the APs are female. The average family size is 4.19 members per household (Table 3-1)

Table 3-1 Characteristics of APs

Average number of family Number of interviewed members of interviewed Interviewed males Interviewed females household households 177 4 372 363

45. APs distribution by the age and sex is given in table 3-3 below. As it is shown below APs in age group from 15 to 25 is only 12% of the interviewed APs (735 person).

Table 3-2 Age and sex of APs

Name of Age Sex villages 0-14 15-19 20-24 25-64 Over 65 Male Female Amashuketi 3 0 0 2 3 4 4 Boriti 13 7 12 45 14 43 48 Boselati 2 0 1 2 1 4 Grigalati 13 1 0 36 4 29 25 Vertkvichala 34 10 5 67 15 62 69 Sakasria 14 2 10 56 23 52 53 Cickiuri 0 0 0 2 0 1 1 Khevi 33 10 9 89 15 82 74 Khunevi 29 4 17 102 31 98 85 Total 141 34 53 400 107 372 363

3.3.2 Education

46. The level of education in the area is particularly high since those of secondary education account for 40% of the interviewees followed by almost 24% of the population with a high level of education. Khunevi and Sakasria have the highest number of respondents with a high level of education. Probably at such a high level of education, local society does not offer sufficient employment opportunities that lead the young generation to migrate to other Georgian cities as well in other countries.

Table 3-3 Education level of APs

Incomplet No Non Nurser Primar Secondar Vocationa Incomplet Highe e Answe e y y y l e Higher r secondary r N 2 66 65 19 296 93 14 174 6 % 0% 9% 9% 3% 40% 13% 2% 24% 1%

3.3.3 Occupation

47. Unemployment among the AP's is the most characteristic element with a total percentage of almost 38% of unemployed APs.Then there are pensioners (20%), the private sector (14%) followed by the public sector (14%) and the self-employed (7%). Out of 735 APs is over 18 years old.

Table 3-4 Occupation of APs over 18 years old

Occupation Public Private Self No Farmer Unemployed Student Pensioner sector sector employed Answer N of APs 81 80 40 1 221 16 118 19 % of APs 14% 14% 7% 0% 38% 3% 20% 3%

3.3.4 Income Sources of AHs

In table 3-7 is shown sources of income of AHs, main source of income of families is wage salary and/or pension. Needs to be noted, that during the survey AHs were able to indicate several sources of family income.

Table 3-5 Source of Income AHs

Name of the village Source of Income

Self-

Own Own

work work

Monet Monet

Business Business

Pensions Pensions

Borrowing Borrowing

From Rent Rent From

Temporary Temporary

Agriculture Agriculture

Remittance Remittance

Wage salary salary Wage employment employment

N of AHs 89 5 0 19 1 20 3 110 1

48. 10 out of interviewed 177 AHs didn’t indicate monthly income of the families.

Table 3-6 Monthly Income of APs

Class of Monthly income Name of the UP to 299 From 300 to From 600 to From 1000 village from1500 over GEL 599 999 to 1499 Amashuketi 0 2 0 0 0 Boriti 2 8 3 2 4 Grigalati 3 3 2 2 3 Vertkvichala 3 14 4 2 4 Sakasria 7 11 2 8 2 Cickiuri 1 0 0 0 0 Khevi 6 9 4 2 9 Khunevi 9 18 9 3 6 Total 31 65 24 19 28 % 18% 37% 14% 11% 16%

3.3.5 Agriculture

49. Table 3-8 provides information on how many affected households are breeding.

Table 3-7 Animal breeding and households

Livestock Number of Families Cow, Ox and buffalo 63 Horse or donkey 0 Pigs 20 Sheep 3

Livestock Number of Families Chicken or Turkey 71 Other

50. Table 3-9 provides information on how many AHs grow one year harvest.

Table 3-8 Crops and families

Crops Number of Families Corn 126 Fruit 131 Potatoes 106 Vegetables 120 Walnut/Hazelnut 124 Grapes 128 Hay 24 Other 3

Table 3-9 AHs selling farm products

Product Sell Families Dairy product 9 Honey 8 Handmade items 1 Fruit 48 Corn 10 Nuts 35 Vegetables 8 Flour 4 Other 7

3.3.6 Community Services

In the table below is presented information about average distance to community center from AHs for each village. Table 3-10 Average distance from community services (Km)

Clinic/Ambulance/ School Kindergarten Health care Amashuketi 1.7 2.25 2.25 Boriti 1.48 1.40 1.40 Grigalati 10 0.87 0.87 Vertkvichala 4.17 1.04 1.2 Sakasria 3.4 1.62 2.1 Cickiuri 15 3 3 Khevi 15.53 106 1.08 Khunevi 3.24 0.91 0.91

4 LEGAL AND POLICY FRAMEWORK

4.1 General

51. The legal and policy framework of the Project is based on national laws and legislations related to Land Acquisition and Resettlement (LAR) in Georgia and ADB’s Safeguard Policy Statement 2009.Based on applicable laws and policies and ADB’s Policy requirement, project related LAR principles have been adopted.

4.2 Legal Framework

4.2.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement

52. 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 Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999 (amend. 2005, 2007, 2010, 2013, 2017) ▪ The Civil Code of Georgia, June 26, 1997 (amend. 2000, 2002, 2003, 2004, 2005, 2006, 207, 2008, 2009, 2010, 2011, 2012, 2013, 2014,2015, 2016) ▪ 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, 2016) ▪ 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, 2016) ▪ The Law of Georgia on Public Register- No820 –IIs; December 19 of 2008; (amended 2009 2010, 2011, 2012, 2013, 2014, 2015) ▪ In frames of national project, the Law of Legal Power of Land Parcels Systemic and Sporadic Registration and Improvement of Quality of Cadastral Data. June 17 of 2016. (amended December 14 2016) ▪ The Civil Procedural Code of Georgia, November 14, 1997(amend. 1998-2015) ▪ The Law of Georgia on State property, June 21, 2010 ▪ Labor Code, May 25, 2006 ▪ Tax Code, January 2005 ▪ Law on Entrepreneurship, October 28, 1994

53. The existing Laws provide that compensation for lost assets, including land, structures, trees and standing crops, should be based on the current market price without depreciation. Overall the above laws/regulations provide that the principle of replacement cost compensating at market value 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:

1) Obtaining the right on way without expropriation through the payment of due compensation (on the basis of a contract of agreement or a court decision) prior to commencement of the activities. 2) Expropriation which gives the possibility of obtaining permanent right to land and/or other real estate property on the basis of Eminent Domain Law or a court decision through the payment of due compensation.

54. RDMRDI for construction of the project road will acquire private land under eminent domain through agreement wherever possible, based on meaningful consultation with APs. Compensation rates will be based on market price surveys and will not be subject of negotiation with Aps. The land buyer will offer adequate and fair price for land and/or other assets. If the contract fails, the expropriation process under the eminent domain will start. Under the existing Law in Georgia, the president will issue an order for expropriation based on the request from relevant state agencies. Relevant regional court will assess the presidential order and determine the case of public needs, and grant the expropriation entity rights to obtain land. The court will also appoint a third party to assess the market value of lost assets and determine the compensation payable to relevant land owners accordingly to the value of assets thus found.

4.2.2 ADB’s Policy on Involuntary Resettlement

55. Three important elements of ADB’s involuntary resettlement policy are: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles:

(i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible

or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a land acquisition and resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.2.3 Synopsys of ADB Policy with Georgian Laws and Legislation

56. Overall, the legislation of Georgia adequately reflects the major provisions of the ADB Safeguards Policy Statement 2009 but a few differences are to be noted. The most significant of these differences is that under Georgian legislation/regulation, 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 ADB policy 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). Because of this, ADB policy complements 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, in addition, the legislation of Georgia does not require any specific measure regarding the need to prepare LARP based on extensive public consultations. The differences between Georgia law/regulation and ADB policy are outlined in Table 4-1.

Table 4-1 Comparison of Georgian Laws On LAR and ADB Resettlement Policy, 2009

Georgia Laws and Regulations ADB Involuntary Resettlement Policy Land compensation only for titled landowners. In Lack of title should not be a bar to compensation practice legalizable land owners are also and/or rehabilitation. Non-titled landowners receive compensated after they register their ownership rehabilitation assistance. with the NAPR. Only registered houses/buildings are All Affected houses/buildings are compensated for compensated for damages/demolition caused by buildings damages/demolition caused by a project. a project Crop losses compensation provided to landowners Crop losses compensation provided only to and sharecrop/lease tenants whether registered or registered Landowners not LARP Land Acquisition Committee is the only pre- Complaints & grievances are resolved informally litigation final authority to decide disputes and through community participation in the Grievance address complaints regarding quantification and Redress Committees (GRC), Local governments, assessment of compensation for the affected and NGO and/or local-level community based assets. organizations (CBOs). Information on quantification, affected items value Decisions regarding LAR are discussed only assets, entitlements, and compensation/financial between the landowners and the Land Acquisition assistance amounts are to be disclosed to the APs Authorities. prior to appraisal Loss of income is considered for compensation ADB policy requires rehabilitation for but no provision for income/livelihood income/livelihood, severe losses, and for expenses rehabilitation, allowances for severely affected or incurred by the APs during the relocation process. vulnerable APs, or resettlement expenses. There is provision for consultation with APs but Public consultation and participation is the integral there is no specific plan for public consultation part of ADB’s policy which is a continuous process under the Georgian laws at conception, preparation, implementation and finally at post implementation period

57. To reconcile the gaps between Georgia laws/regulations and ADB Policy (ADB’s SPS 2009), RDMRDI has adopted this policy for the Project, ensuring compensation at full replacement cost of all items, the rehabilitation of informal settlers, and the provision of subsidies or allowances for AHs those will be relocated, suffer business losses, or will be severely affected.

4.2.4 Resettlement Policy Commitments for the Project

58. The resettlement policy for the project has been designed to (a) cover all APs irrespective of their title to land, (b) provide replacement cost compensation for lost assets, and (c) restore or enhance the livelihoods of all categories of APs. The households/persons affected by the project interventions will receive cash compensation for land and other assets at full replacement cost as per market price at the time of dispossession. Additional measures will be taken to ensure minimum disruption during the project construction period. Physically and economically affected households will receive due compensation, relocation assistance, and allowances in accordance with the following guidelines and policy which are also part of

the Land Acquisition and Resettlement Framework5 of the Program and the Georgian laws on land acquisition and ADB’s SPS 2009:

➢ Land acquisition, and other involuntary resettlement impacts will be avoided or minimized exploring all viable alternative project designs. ➢ Where unavoidable, APs will be assisted in improving or at least regaining their pre- program standard of living. ➢ Land will be acquired through a contract agreement to the extent possible. Expropriation process will be sought only as the last resort when all possibilities of negotiation fail. ➢ Vulnerable and severely APs will be provided special assistance. ➢ Non-titled APs (e.g., informal dwellers or squatters, APs without registration details) will receive a livelihood allowance in lieu of land compensation and will be fully compensated for losses other than land. ➢ Legalizable APs (APs possessing ownership documents but with title formalization pending, as well as APs who are not registered but have residential land or agricultural plots adjacent to the residential land) will be legalized and fully compensated for land losses. ➢ Provision of income restoration and rehabilitation compensation will be made. ➢ The final LARP will be disclosed to the APs in the local language which is Georgian. ➢ Payment of compensation, resettlement assistance and rehabilitation measures the rates set in this LARP will be fully provided prior to the contractor taking physical acquisition of the land and prior to the commencement of any construction activities on a particular package. ➢ Compensation will be provided at least at the rates detailed in this LARP although some modification in excess will be possible during the discussions preceding the signing of the contract ➢ Complaints will be reviewed using the existing grievance redress mechanisms. ➢ For projects that entail large-scale involuntary resettlement, land acquisition and resettlement plans must be prepared and made available to the public. It is desirable that the land acquisition and resettlement plan include elements laid out in the ADB Safeguard Policy Statement (SPS, 2009) ➢ Appropriate participation of affected people must be promoted in planning, implementation, and monitoring of land acquisition and resettlement plans. ➢ Preference should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. ➢ Provide support for the transition period (between displacement and livelihood restoration. ➢ In preparing a land acquisition and resettlement plan, consultations must be held with the affected people and their communities based on sufficient information made available to them in advance. When consultations are held, explanations must be given in a form, manner, and language that are understandable to the affected people.

4.2.5 Land Acquisition Process

59. Complete and accurate registration of private land as per current laws governing land acquisition in Georgia is the precondition for proceeding with acquisition of private land by agencies requiring land for land based infrastructure development. To construct the Project RDMRDI will acquire private land under the law of eminent domain wherever possible through the establishment of an agreement with the APs. Compensation rates will be based on market price surveys in case of land and on a methodically calculated assessment of replacement costs for structures. Negotiations (if any) with APs will not determine the base compensation rates. The land buyer will offer adequate and fair price for land and/or other assets. RDMRDI

will ensure that the process of land acquisition with the APs openly address the risks of asymmetry of information and bargaining power of the parties involved in such transactions. Only in case the there is no agreement to land acquisition, expropriation will be sought.

60. Following the ACM, LARC, assisted by LAR Team at local level will offer to each of the APs the compensation rates defined in this LARP. Upon successful settlement, Land Acquisition Agreements will be signed with legalized/titled owners of acquired land parcels and Agreement of Entitlement with the non-titled APs. Any grievances of the APs will be resolved through approved grievance redress mechanism of the Project.

61. In case an AP does not accept the rates defined in this LARP even after attempts to resolve through the grievance redressing mechanism exercise, RDMRDI will seek concurrence of the appropriate authority in the management for proceeding with Expropriation Process under the eminent domain for acquisition of the land through Local Courts.

62. The detail design consultant has prepared fresh maps of the acquired plots with geometric details required for legalization. RDMRDI will provide these maps to the concerned legalizable owners. The process will be followed by endorsement of these maps and ownership documents by the Sakrebulo and finally getting them registered in the local registration office prior to the receipt of the project compensation. A detailed procedure of legalization of legalizable owners is provided in Annex 1.

63. Compensation for the properties affected by the project will not be acquired through negotiated settlements, but on systematic evaluation process based on clear technical parameters.

4.2.6 Expropriation

64. Acquisition of land through expropriation will be pursued under the project only in extreme cases when negotiations between APs and RDMRDI fail. Should the contract proposal fail, the expropriation process will commence by undertaking the procedures set out in the Law of Georgia “On the Rules for Expropriation of Ownership for Necessary Public Need” shall be applied. It is noted that under Georgian law, negotiation is seen as an alternative to expropriation, whereas under ADB and EBRD policy negotiation under threat of expropriation still qualifies as involuntary resettlement.

65. Pursuant to the Law of Georgia “On the Rules for Expropriation of Ownership for Necessary Public Need” the expropriation shall be carried out based on 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. Under no condition would the RD occupy the required 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.

66. The entire expropriation process, from the moment in which expropriation proceedings are initiated to the moment in which the expropriation injunction from the court is obtained, may last between 3 to 6 months.

4.2.7 Legalization

67. The RD will provide technical assistance to APs qualifying as legitimate possessors of project affected land parcels. These APs will be assisted free of charge in the process of legalization of private ownership rights to project affected assets, followed with the registration of ownership title. Following, the AP will alienate project affected land parcel to the RDMRDI for road project purposes in return for fair compensation amount calculated according to the unit rate determined in the approved LARPs.

68. The entire legalization process for one plot may last between 1 week and 6 months.

4.3 Compensation Eligibility and Entitlements

4.3.1 Eligibility

69. 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.

70. Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day of the beginning of the AP Census and DMS. In the case of this Project the cut-off date has been set on the 1 May 2018. 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 sanction.

4.3.2 Definition of Entitlements

71. Agricultural land impacts will be compensated at full replacement cost. When 10% or more of total agricultural land owned by AP is acquired, AP (owners, leaseholders and sharecroppers) will get an additional allowance for severe impacts equal to 2 additional crop compensation or 3 months income at minimum subsistence (in case if crop compensation is not applicable). Legalizable APs will be legalized and paid as titled owners. APs who are not registered but have residential land or agricultural plots adjacent to the residential land will be fully compensated but not legalized. APs that are not legitimate land users or squatters will be compensated with one time allowances in cash equal to a minimum monthly subsistence allowance for a period of 12 months If the remaining part of a particular plot becomes inaccessible or unviable for cultivation or for any use after the acquisition, then the remaining land will be acquired, if the owners/user so requests..

72. Non-agricultural land (Residential/commercial land). Titled settlers will be compensated at full replacement cost free of depreciation. Legalizable settlers will be legalized, registered in NAPR and compensated as titled APs. Non-titled and non-legalizable land users will be compensated with a one-time allowance in cash equal to minimum subsistence allowance for 1 year.

73. Houses, buildings, and structures will be compensated in cash at full replacement cost free of deductions for depreciation, and transaction costs irrespective of the registration status of the affected land. In case of partial impacts and unwillingness of the owner to relocate, compensation will cover only the affected portion of a building and its full rehabilitation to previous use. Full compensation will be paid if partial impacts imperil the viability of the whole building. Construction materials remaining after the demolition of the structures will be deemed as ownership of the AH.

74. Crops: Cash compensation at current market rates for the gross value of 1 year’s harvest by default. Crop compensation will be paid both to landowners and tenants based on their specific sharecropping agreements.

75. Trees: Cash compensation at market price of income from tree based on type, age, tree-productivity for the number of years needed to regrow the tree at the productive stage when it was cut.

76. Businesses: If business is lost permanently cash indemnity of 1 year net income or in the absence of income proof, one time minimum subsistence allowance in cash for one year. In case of 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 allowance for months of business stoppage; .

77. Agricultural Tenant: if agricultural tenants are affected, it will be compensated in the form of assistance equivalent to 1 year of cash return from the land under tenancy as per recorded proof, or in its absence, official minimum subsistence allowance for 1 year.

78. Loss of wages/employment: if employees loss their wages due to the project interventions, they will be compensated with equivalent to actual wage for 3 months or in case of absence of tax declaration official minimum subsistence allowance for 3 months.

79. Relocation/Shifting Allowance: Physically displaced households forced to relocate will receive a relocation subsidy comprising an allowance of 200 GEL covering transport expenses, plus an allowance equivalent to 3 months of minimum subsistence income to cover livelihood expenses for transitional period.

80. Community Structures and Public Utilities: Will be fully replaced or rehabilitated so as to satisfy their pre-project functions.

81.Vulnerable people Livelihood: Vulnerable AH (particularly disadvantaged Households who might suffer disproportionately or face the risk of being marginalized from the effects of land acquisition and resettlement. These are; (i) female-headed households with and/or without dependents; (ii) disabled household heads; (iii) poor households as defined by the official poverty line; (iv) elderly households with no means of support; (v) households without security of tenure; (vi) cultural or ethnic minorities; and (vii) refugees or internally displaced people.) will receive an allowance equivalent to 3 months of minimum subsistence.

82. Tasks under the Project will be implemented according to a compensation eligibility and entitlements framework in line with both Georgia laws and regulation and ADB Policy (SPS 2009). A summary entitlements matrix is included in Table 4-3 below.

Table 4-2 Entitlement and compensation matrix

Type of Loss Application Definition of AH/APs Compensation Entitlements Land Agricultural Land: AP losing Registered Cash compensation at full Permanent land loss, productive land Owner/Legal: replacement cost based on current access or damage. regardless of Owner with full market value. If the residual plot impact severity registration becomes unviable for cultivation, the project will acquire it if the owner so desire. Legalizable Owner: The ownership rights of these APs (APs with title will be recognized, the land formalization pending registered in NAPR and the APs and APs who are not provided with cash compensation at registered but full replacement cost. Registration legitimately use the land costs will be paid by the Project. and have residential land or agricultural plots adjacent to the residential land) Non-legal/Informal Non-legalizable APs losing Settler: agricultural land plot, which is the APs that are not only land plot owned by AH and legitimate land users or provides main source of income for squatters AH, will be compensated with one time allowances in cash equal to 1 year of minimum subsistence 5 allowance.... Agricultural Tenant Full Compensation of income of lost crops x the remaining years (up to 4 years) of lease. In case of tenancy no crop compensation will be given to the land owner. Non-Agricultural AP losing Registered Cash compensation at full Land their Owner/Legal: replacement cost. commercial/ (Owner with full residential registration) land Legalizable Owner: The ownership rights of these APs (The owners legalizable will be recognized, the land according to active registered in NAPR and the APs legislation) provided with cash compensation at full replacement cost. Registration costs will be paid by the Project.

5 Minimum subsistence allowance: the amount will be checked and updated, if required, at the time of compensation, to reflect current rate.

Type of Loss Application Definition of AH/APs Compensation Entitlements to 1 year of minimum subsistence allowance. Temporary Impact on N/A N/A Temporary land impacts will be land plot compensated based on the productive value of the plot during the period of impact and after their use will be re-established by the EA at the pre- impact productive conditions.. Buildings and Structures Residential and non- All AHs regardless of Cash compensation for residential their legal ownership/ building/structures losses at full structures/assets registration status replacement costs free of (including legalizable depreciation and transaction costs and Informal Settlers) Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Publ Community/Government Reconstruction of the lost property resources ic Assets resource/asset in consultation with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops All APs regardless of Crop compensation in cash at affected or legal status (including market rate by default at to gross affected legalizable and Informal crop value of expected harvest. agricultural land, Settlers) used permanently for crop cultivation. Trees Trees affected All APs regardless of Cash compensation at market rate legal status (including on the basis of type, age and legalizable and Informal productive value of the trees. (Based Settlers) on the expected yield of the tree, multiplied by the number of years required to grow a tree of equivalent productivity). Business/Employme Business/emplo All APs regardless of Owner: nt yment loss legal status (including (i) (permanent impact) cash legalizable and Informal indemnity of 1 year net income or in Settlers) the absence of income proof, One time minimum subsistence allowance in cash up to 12 months; (ii) (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 allowance for months of business stoppage; Permanent worker/employees: indemnity for lost wages equal to One time minimum subsistence allowance in cash for 3 months.Business income shall also cover all individual value-added activities beyond direct consumption/sale of agricultural produce (i.e. informal business

Type of Loss Application Definition of AH/APs Compensation Entitlements activities at household level which are currently unaccounted for due to the lack of economic activity data for the affected populations). There will be a verification process during the LARP implementation to fully account for such activities.

Allowances Severe Impacts >10% income All severely affected AHs Agricultural income: 1 additional loss including informal crop compensation for 1 year’s yield of settlers affected land or, for other incomes: an allowance covering 3 months of minimum subsistence. Relocation/Shifting Transport/transit All AHs to be relocated An allowance covering transport and ion costs livelihood expenses for the transitional period. (200 GEL as vehicle hire charge + minimum subsistence allowance x 3 months. Vulnerable People Particularly One time minimum subsistence Allowances disadvantaged allowance in cash for 3 months and Households who might employment priority in project- suffer disproportionately related jobs where feasible or face the risk of being Additional assistance in kind will be marginalized from the provided to facilitate relocation or effects of land transition – this may include acquisition and (logistics, relocation planning, resettlement. These are; assistance with replacement (i) female-headed housing search, as appropriate. households with and/or without dependents; (ii) disabled household heads; (iii) poor households as defined by the official poverty line; (iv) elderly households with no means of support; (v) households without security of tenure; (vi) cultural or ethnic minorities; and (vii) refugees or internally displaced people. Unforeseen impacts Impacts during All APs Due compensation to be assessed during construction, construction to and paid when the impacts are including temporary properties or identified based on the above impacts and impacts assets out of the provisions and on the requirements on livelihoods not corridor of of SPS 2009. otherwise assessed. impact or RoW Impacts related to Temporary or APs using affected Adequate livelihood assistance for spoil disposal areas permanent pasture lands taken for loss of hay and grazing grounds, if and construction impacts spoil disposal areas or any, will be assessed and provided camps. construction camps. during implementation.

4.3.3 Assistance for severely affected and Vulnerable AH

83. Vulnerable households are households who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may 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.

84. Below poverty line, women headed households, households with members with disabilities or lonely pensioner is considered as vulnerable. The vulnerable household requires special assistance for resettlement.

85. Vulnerable AHs are entitled to an allowance equivalent to 3 months of minimum subsistence and employment priority in project-related jobs. AHs are considered as vulnerable in case they are registered as poor in the local social services or are women-headed. In absence of an official minimum subsistence, these figures are taken from the Government of Georgia Statistics Department data on minimum subsistence income for a family of 5 people.

86. Severely AH will receive an allowance equivalent to 3 months minimum subsistence.

4.3.4 Valuation and Compensation Rates

87. The Valuation methodology of compensation rates for the different affected assets is detailed in the next paragraphs. Detailed information about compensation rates is given in Annex 8.

4.3.4.1 Valuation of Land

88. To determine compensation to be given to the land owners, market and income methods were addressed. Since there are almost no agricultural land transactions, and the registered transactions do not reflect the real agreements, which is common for peripheries where due to low tax culture and attempt to reduce the taxes agreements register lower prices in comparison with real transactions, - income methods have been applied.

89. It must be noted, that the National Agency of Public Registry has no or very limited information regarding sale and purchase of lands within Kharagauli region, and specifically lands adjacent to the highway. This is explained by lack of free land plot due to particularity of relief of the region (steep), and most importantly, the lands have been shared among traditional population (families) of the region; such plots are being inherited by the next generations.

90. Detailed information about valuation methods of land is given in annex 8.

4.3.4.2 Valuation of Structures

91. Replacement cost of houses/buildings was determined based on construction type, cost of materials, transportation, types of construction, land preparation, labor, and other construction costs at current rates. No deduction for depreciation and transaction costs will be applied.

4.3.4.3 Valuation Method of Annual Crops

92. Market value of annual crops has been determined 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.

4.3.4.4 Calculation methods of Compensation Costs for Perennials

93. Fruit trees will be compensated differently if they are productive or not yet productive. Productive trees will be compensated based on the future income lost for the years needed to re-grow a tree at the same age/production potential in which was cut. Productive trees will be compensated based on price of seedling plus income of productive tree for the years needed to grow up from the 1 year seedling. In the price of seeding is also included cost of fertilizers, water and other expanses. Non-productive/Wood trees will be compensated based on the value of the investment made to grow the tree to the age in which the tree was cut. Detailed information about compensation rates is given in Annex 8.

4.3.4.5 Methodology of valuation for business and job losses

94.Business: If business is lost permanently cash indemnity of 1 year net income or in the absence of income proof, one time minimum subsistence allowance in cash up to 12 months; In cases where Aps have paid tax based on flat tax rate will receive compensation equal to 12 months minimum subsistence allowance. Business income shall also cover all individual value-added activities beyond direct consumption/sale of agricultural produce (i.e. informal business activities at household level which are currently unaccounted for due to the lack of economic activity data for the affected populations). There will be a verification process during the LARP implementation to fully account for such activities.

95. In case of 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 allowance for months of business stoppage;

96. Permanent worker/employees: Indemnity for lost wages equal to actual wage for 3 month or in case of absence of tax declaration, one time minimum subsistence allowance in cash for 3 months.

5 INSTITUTIONAL ARRANGEMENTS

5.1 Introduction

97. 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 and the RD is the implementing Agency (IA). RD has overall responsibility for which includes preparation, implementation and financing of all LAR tasks and cross-agency coordination. RD will exercise its functions through its existing resettlement division (RDRD) which will be responsible for the general management of the planning and implementation of all LAR tasks. The Regional RD offices will assist the activities of the RDRD with one dedicated officer who will facilitate the communication between the RDRD, the local governments and the APs and assist in implementing LAR tasks related to the local administration. 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.

98. The specific role and responsibility of each State Agency participating in the given project is detailed below.

5.2 Land Acquisition and Resettlement Organizations

5.2.1 RDMRDI of Georgia

99. RDMRDI has the overall responsibility of design, land acquisition and resettlement, construction, construction monitoring and supervision of the Project. This also includes financing and executing land acquisition and resettlement tasks and cross-agency coordination. RDMRDI will exercise its functions through its existing Resettlement Division (RD), which is subdivision of the Roads Development and Resettlement Division (RDRD), and LAR Commission.

100. A Resettlement Division (RD) under the RDRD headed by a Head of the division and staffed with other personnel having specific experience and skills in LAR is responsible for LAR activities related to the project. RD is responsible for all technical work to accomplish all LAR preparation and implementation tasks and coordination within the RDMRDI, as well as at central and local government levels.

101. As for the monitoring and management resettlements 9 officials are assigned to the central office of RD. This project will be monitored by 2 officials of the central unit.

102. LAR Commission (LARC) within RDMRDI has the authority to finally endorse all LAR related decisions and actions (i.e. approval of LARP, initiation of compensation payments etc.). LARC sits for reviewing issues for decision on as and when necessary basis. LARC will oversee and monitor implementation of the LARP to ensure that all APs are duly compensated and that mitigating measures are instituted by the Civil Works Contractor as a result of

temporary impacts. It is also the final pre-litigation authority to provide decision on grievances those cannot be resolved at the regional level. LARC will ensure that the Project is implemented in accordance with the ADB policy requirements and the approved LARP. A Grievance Redress Committee (GRC) at the Gamgeoba level will be working to resolve the grievances of APs as a means of reducing grievances and avoiding expropriation process for acquisition of land.

103. The structure of the LARC includes experienced and skilled experts of economics and law, who simultaneously take responsible positions in RDMRDI. In case of need, on the basis of agreement with RDMRDI management and LARC the structure can be expanded inviting professionals of different sectors in response of the volume of LAR work for a project. The core team of the LARC is represented by RD, which is supplemented by legal experts, financial experts, engineers and the like from other departments of RDMRDI.

104. The specific tasks of the RD will be to (i) establish LARC capacity at the regional level offices of the RDMRDI; (ii) ensure proper internal monitoring; and (iii) hire, following ADB policy recommendation the external monitoring agency; (iv) conduct all technical work to accomplish all LAR preparation and implementation tasks; (v) maintain the coordination of all land acquisition and resettlement related activities within the RDMRDI, as well as at central and local government levels; and (vi) provide all necessary documentation to ensure the prompt allocation of land acquisition and resettlement budgets to the APs.

5.2.2 ETCIC

105. Eurasian Transport Corridor Investment Center (ETCIC) as Legal Entity of Public Law, has been established pursuant to Presidents order #161, dated April 21, 2000. ETCIC provides financial management for ADB projects, receiving appropriate funds directly from the Ministry of Finance Georgia on project's account and disburses to APs following requisition from RD, RDMRDI. ETCIC will review, scrutinize and transfer the amount of compensation and allowances in the bank account of APs mentioned in the Compensation and Allowance Ledger prepared, confirmed and produced by resettlement unit for each AP.

5.2.3 Local Court LAR Team

106. Local Court LAR Team will assist the central LARC and provide assistance to APs in the process of legalization of legalizable owners. Based on the RDMRDI's LARC decision and the LARP prices, the offer of acquisition of land parcels shall be undertaken. If an AP agrees on the acquisition he/she will confirm such agreement in writing by signing the Sales/Acquisition Agreement that will be registered with the Public Registry. This agreement will serve as the basis for compensation payment processing and release. If agreement is not reached between the AP and the LAR Team, the later will inform the LARC, which will take decision to start expropriation.

107. Kutaisi team of RD will be responsible on implementation of the project. The team of Kutaisi is composed by 2 senior officials and 2 consultants, out of them 2 will be assigned to the project.

5.2.4 Local Governments

108. Local administration especially at local 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 Local Court LAR Teams which will have designated officials from the local administration (Sakrebulo; Gamgebeli) and representatives of each affected village/community administration (representatives of all affected community/village).

5.3 Land Registration Organizations

109. Government agencies active at various levels in the process of legalization of privately owned land parcels are described hereunder.

5.3.1 Gamgeoba of Community

110. Community level Gamgeoba is the executive branch of self-government headed by Gamgebeli. Gamgebeli has the primary role in the process of legalization and registration of land parcels. Gamgebeli confirms ownership of affected land plots, parameters of land plots and endorses the cadastral maps and related data prepared for case of legalization7. Gamgebeli plays important role for legalization of non-rightful owners (owners in possession before the enactment of current law on privatization of land in Georgia without prior permission of the government). Gamgeoba has power to authorize details of the occupied land parcel and verify its usage pattern as the first hand verification and authorization for further consideration in the Property Rights Registration Commission (PRRC) as a basic step for registration with the Public Registry. Neighbors of applicants for legalization have roles in the authorization process.

5.3.2 Sakrebulo

111. Sakrebulo is the representative branch of self-government at local level. Sakrebulo has now less involvement in the process of legalization of legalizable land plots. However, local Sakrebulo assists the PRRC in the process of authorization of application of non-rightful owners.

5.3.3 Property Rights Recognition Commission

112. Under the Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal entities in 2007, the Government of Georgia has established the PRRC (Property Rights Recognition Commission) at the local level for recognition of ownership rights of non-rightful owners for registration. PRRC verifies and authorizes application of ownership for registration with the NAPR. PRRC authorizes application of only those APs, who are not registered but have residential land or agricultural plots adjacent to the residential land (“non-rightful land owners”, according to definition of Georgian regulations).

5.3.4 Local Registration Office

113. NAPR is in charge of the registration of land ownership and its transfer through acquisition agreement from landowners to the RDMRDI. Local Archives are now transferred in the possession of the Local Registration Offices of the NAPR. Local Archive is used for cross verification of ownership document and validity of physical possession of land by persons seeking registration as legalizable owner, in the case, owner does not have available documentation proving ownership rights on the adjacent land plot or in case there is any doubt regarding the plot.

114. Local Registration Office of the NAPR is the local level authority for executing registration of land parcels in the name of the applicants based on package of application documents provided by rightful owners (APs possessing ownership documents but with title formalization pending) or by non-rightful owners after receiving appropriate certificate from PRRC as the case may be. The owners submit both soft copy and hard copy of plot maps with geometric details for record in the Local and Central NAPR. Local NAPR is involved in the updating and implementation of LARP.

5.4 Other Organizations and Agencies

5.4.1 Civil Works Contractor

115. Civil Works Contractor to be appointed by the RDMRDI to undertake the construction will be responsible for mitigating impacts resulting from the construction activities. Based on the LARP and the Technical Design, the parcel of land that will be identified and acquired as part of road ROW will be demarcated to clearly delineate it from the remaining non-acquired parts. The construction activities shall be monitored closely by the RDMRDI to ensure compliance to the temporary mitigating measures.

5.4.2 Consultants and Auditors

116. Design Consultant: RDMRDI has been supported by the detailed design consultant to prepare LARP. The design consultant has an international social development and resettlement specialist and a national resettlement / social specialist for finalizing LARP for each construction stage. The design consultant has hired a survey and independent audit agency for land acquisition and resettlement survey and documentation including census, socioeconomic survey, inventory of losses, and valuation of land and assets for replacement value. LARP has been prepared based on findings of the surveys following the final alignment as per detailed engineering design.

117. Construction Supervision Consultant: Construction supervision consultant (CSC) will have land acquisition and resettlement specialists to oversee all resettlement related issues that may arise during the construction works.

5.4.3 Court of Georgia

118. The Court of Georgia shall be the last resort for issues and concerns regarding the implementation of the LARP. In case there is no agreement between the RDRD and the APs

concerning the acquisition of private properties, the RDMRDI with the mandate for expropriation based on existing legislations will submit to the Court a request for expropriation. Upon its approval and following prescribed procedure, RDMRDI will then take over the concerned property after having been given by the Court the right of the Expropriator. Review of specific cases starts at local courts.

119. Furthermore, in cases where complaints and grievances regarding LARP implementation and compensation are not solved at the various levels as prescribed in the agreed Grievance Redress Mechanism, the APs will have the right to appeal the case to the court. Supreme court of Georgia as a last resort. Its decision shall be final and executor.

5.4.4 Ministry of Finance

120. The budgets for the implementation of LARP will be provided to RDMRDI by the Ministry of Finance following its official approval. The LARP budget will be allocated on the accounts of ETCIC that is responsible for the financial management of the project.

5.4.5 Ministry of Justice

121. 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 acquisition agreement from landowners to the Road Department.

5.4.6 Ministry of Economy and Sustainable Development

122. Ministry of Economy and Sustainable Development (MOESD) issues a decree confirming necessity for expropriation and assigning RD as an entity that can be granted the right for expropriation. Decision on the expropriation will be resolved in about 1 month.

5.4.7 ADB

123. Besides supervising the Project periodically, ADB will review LARP and External and Internal Monitor’s compliance reports, and provide clearance to contract awards signing and initiation of civil works.

5.4.8 Monitoring Agency

124. RDMRDI will appoint an independent external monitoring agency (EMA) for external monitoring and ex-post evaluation of the LARP implementation. External monitoring covers all aspects of LARP implementation, starting from legalization and finishing with payment of all compensation and rehabilitation allowances before starting civil works. The external monitoring will be executed by the hired company or person.

125. An organization chart showing all the concerned institutions to be involved in the LAR activities is depicted in the following Figure:

Figure 2 LAR Organization Chart

6 CONSULTATION AND PARTICIPATION

126. In the course of LARP preparation and implementation the AP have been and will be consulted and informed through a continuous process involving collective AP meetings, discussions with individual Aps and the provision of printed materials.

6.1 Objectives of Public Information and Consultation

127. Information dissemination to APs and involved agencies is an important part of LARP preparation and implementation. Consultation with APs and ensuring their active participation will reduce the potential conflicts and minimize the risk of project delays. To ensure that local authorities, as well as representatives of APs, will be included in the planning and decision- making processes, RDMRDI and Consultant will continue a dialogue with rayon and municipality authorities and NGOs, as relevant, during the entire project implementation process to ensure: • Make the people aware about: the road corridor, project features, potential loss and implementation arrangements, eligibility and entitlement, grievance procedures and mechanism, land registration process, disclosure and implementation schedule • Fully sharing information about the proposed subproject components and LARP activities with the APs; • Obtaining information about the needs and priorities of PAPs, as well as receiving information about their reactions to proposed policies and activities; • That APs are fully informed about the decisions that will directly affect their incomes and living standards, and that they will have the opportunity to participate in activities and decision-making about issues that will directly affect them; • APs are given contact information of project responsible persons from local authorities/RD that will provide timely sufficient feedback to their inquiries • Obtaining the cooperation and participation of the APs and communities in activities necessary for resettlement planning and implementation; • Transparency in all activities related to land acquisition and resettlement.

6.2 Consultation during LARP Preparation and Implementation

128. Public consultation and participation plan to involve the stakeholders, especially the people either directly benefiting from, or affected by the subprojects were involved. All communications are conducted in Georgian language for involved and engaged parties in the project area.

129. Community consultations were arranged at various locations through public meetings in the month of May 2018 during the detailed design study and during final LARP preparation which involved both men and women participants. Consultations were carried out through presentations and open discussions. The contents of the presentations included various aspects such as project/design features, movie of the new road, core policy principles, project impacts and losses, eligibility and entitlements, future plan of action, concerns and appeals from the people. All these information on projects were shared with the people and their feedbacks were collected.

Table 6-1 Consultations during LARP Preparation and Implementation

N Name of Date of Consultation Number of Number of Number of % of directly the village Participant female male impacted participants participants participants 1 Boriti 23.05.2018 32 7 25 96% 2 Khunevi 23.05.2018 52 16 36 79% 3 Khevi 23.05.2018 24 10 14 53% 4 Boriti 17.07.2018 25 6 19 100% 5 Khunevi 17.07.2018 34 9 25 94% 6 Khevi 17.07.2018 20 9 11 92%

130. Minutes of meetings with the matter discussed during public consultations in presented in Annex 2, Annex 3 and Annex 4.

6.3 Public Information Booklet

131. To ensure that APs, their representatives, and local government agencies in subproject areas fully understand the details of the LARP process, and are also informed about the compensation and rehabilitation packages applicable to the Project, a Public Information Booklet (PIB) was prepared by the consultant.

132. This PIB was distributed to all PAPs and communities in the subproject area. The PIB is translated into Georgian. The general contents of the PIB will include the following:

133. Brief description of the project, implementation schedule;

• Project impacts, entitlements and rights of APs; • Institutions responsible for resettlement and time-frame (schedule); • Information dissemination to and consultations with APs and stakeholders; • What to do if APs have a question or a problem; • Outline of the grievance redress procedure; and • Requirements for monitoring and evaluation, including independent monitoring.

6.4 Documents Disclosure

134. A Copy of the final LARP in English will be disclosed on ADB’s website while a copy of the final LARP in Georgian will be disclosed on the RD website and at RD offices. The LARP in Georgian will also be disclosed to the APs at the relevant Municipality buildings.

135. The Information booklet in English will be included in an appendix of this LARP and of the LARP in Georgian. The information booklet will also be sent to all Aps by registered mail once the LARP is finalized.

7 GRIEVANCE REDRESS MECHANISM

136. A grievance mechanism is available to allow an AP appealing any decision on which they disagree, practice or activity arising from land or other assets compensation. A Grievance Redress Committee (GRC) was established at community level in each local Gamgeoba to solve complaints and grievance informally through community participation. The GRCs includes representatives from RDMRDI, local Gamgeoba APs, women APs (if any) and local NGO’s. The grievance resolution process is presented in the flow diagram below. APs were informed during first public consultations about their rights and of the procedures for addressing complaints whether verbally or in writing to Grievance Redress Committees (GRCEs) under the project at Municipality level such as at Kharagauli with due representation from respective affected villages, including the representatives of Mayor, representative from APs and representative of women APs. 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 7-1.

137. The GRM consist of project-specific systems established at the municipal level and regular system established at RDMRDI. Before approval of LARP from MRDI, Grievance Redress Committee (GRCE) established at municipal level as a project-specific instrument, 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.

138. Grievance Redress Commission (GRCN) 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 Implementing Agency - IA). The GRCN is involved at the Stage 2 of grievance resolution process. The Order shall 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.

139. 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 each affected Municipality (village/community authority). The GRCE includes representatives of Municipal LAR Teams and local communities. The RD representative in the Municipal LAR Team coordinate the GRCE formation. He/she will then be responsible for the coordination of GRC activities and organizing meetings (Convener).

140. GRCEs was established at the community level for the project with an office order from the RD.

Table 7-1 Grievance Redress Committee

# Grievance Redress Committee Position Name of the Representative of Member GRCE and Contact Details 1 Coordinator of ADB projects Member Archil Jorbenadze (ETCIC, MRDI) 2 Representative of Resettlement Convenor Shota Batsikadze Division at RD 4 Boriti Village

# Grievance Redress Committee Position Name of the Representative of Member GRCE and Contact Details 4.i Representative of Mayor in the Member Badri Barbakadze territory unit of Boriti 4.ii Representative of APs Boriti village Member Zurab Barbakadze 4.iii Representative of Women APs Member Khatuna Jobadze 4.iv Representative of APs in Boriti Member Giorgi Tsikarishvili village 5 Khunevi Village 5.i Representative of Mayor in the Member Kakhaber Lomidze Khunevi territory unit 5.ii Representative of APs in Khunevi Member Merab Lomidze village 5.iii Representative of Women APs in Member Mzia Lomidze Khunevi village 6 Khevi Village 6.i Representative of the Mayor in Member Gela Kopadze Khevi territory unit 6.ii Representative of APs in Khevi Member Besarion Grigalashvili Village 6.iii Representative of Women APs of Member Nino Kakhidze Khevi Village

141. Grievance Redress Commission with the order N224 is completed with 17 member, 2 secretary and 3 not permanent members without right of vote. List of the member Is presented below in table

Table 7-2 Grievance redress commission

N Name of Member Position 1. Irakli Karseladze Head of commission 2. Aleksandre Tevdoradze Deputy Head of the Commission 3. Levan Kupatashvili Member of commission 4. Giorgi Tsereteli Member of commission 5. Koba Gabunia Member of commission 6. Salome Tsurtsumia Member of commission 7. Pikria Kvernadze Member of commission 8. Davit Sajaia Member of commission 9. Giorgi Eragia Member of commission 10. Nodar Agniashvili Member of commission 11. Mikheil Ujmajuridze Member of commission 12. Nino Mtsuravishvili Member of commission 13. Gia Sopadze Member of commission 14. Akaki Mshvidobadze Member of commission 15. Davit Kaladze Member of commission 16. Davit Getsadze Member of commission 17. Pavle Gamkelidze Member of commission 18. Girogi Tsagareli Not permanent member of commission 19. Mariam Begiashvili Not permanent member of commission 20. Archil Jorbenadze Not permanent member of commission

142. Representative of the Resettlement Division 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 of all mentioned stakeholders.

143. The Contact Person collects and records the grievances, informs all members of the Committee and the management of RD 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 the grievance is resolved at the stage 1, the Contact Person records the fact of closing the grievance in his 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.).

144. 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.

Table 7-3 Grievance Resolution Process

Steps Process Step 1 At the negotiation level, if any grievances arise, solutions acceptable to both local’s LAR Team and the APs will be sought. If any aggrieved AP is not satisfied with the solutions, the next option will be to lodge grievances to the GRC Step 2 • If the grievance is not solved at the previous level, the rayon level LAR representative will assist the aggrieved APs to formally lodge the grievances with the respective GRCE at Rayon level. The aggrieved APs will lodge the complaint if there is failure of negotiation at village level and 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 village office and produce evidence in support of his/her claim. The member secretary will note down the statements of the complainant and document all proof. • The decisions will be issued by the Convenor and signed by other members of the GRCE. The case record will be communicated to the complainant AP by the LAR Team at the village level. The grievance redress at this stage shall be completed within 4 weeks Step 3 If any aggrieved AP is unsatisfied with the GRCE decision at Rayon level, the next option will be to lodge grievances to the Grievance Redress Commission (GRCN) at the Resettlement Division at RDMRDI at the national level within 2 weeks after receiving the decision from GRCE. The complainants, must produce documents supporting his/her claim. The GRCN will review the GRCE hearing records and convey its decisions to the aggrieved APs within 4 weeks after receiving the complaint. Step 4 If a grievance redress system fail to satisfy the aggrieved APs, they can pursue further action by submitting their case to the appropriate court of law (Local Court).In case, if the ruling by the court is below the market price assessed through the open market survey earlier, RDMRDI will provide additional funds to ensure that compensation provided reflects full replacement cost.

7.1 GRC Records and Documentation

145. RD of RDMRDI headquarters will keep record of complaints received for its use as well as for review by ADB policy during regular supervisions Figure 3 Grievance Organization Chart

7.2 Special Recommendations to AP for Legalization Plots

146. It is likely that many land parcels to be acquired are not registered or not properly registered. AP who occupies plots that are not owned by others or the state and that are legitimately used by them but have not been registered under the privatization process may be legalized. The legalization process is in progress and will be completed soon. Only after legalization these AP can be compensated.

147. The Roads Dept. and local governments of project areas are already assisting the APs by preparing accurate land parcel maps with geometric descriptions which will be provided to them. However in order to do so in the best possible way the Project authorities need the APs collaboration. As soon as the documentation is available register your land parcels to avoid complexity and delays in land acquisition and receipt of compensation. To facilitate, the cost of registration of land parcels has been included the replacement cost of land

8 IMPLEMENTATION SCHEDULE

8.1 General

148. The time bound implementation schedule of the LARP has been prepared in consultation with the RDMRDI. All activities related to LAR have been planned to ensure that compensation will be paid prior to displacement and commencement of civil works construction. The most important acquisition activity, relating to the privatization process in Georgia, is the legalization of legalizable owners of the identified land parcels for acquisition. The titled and non-titled but legalizable owners of land parcels to be acquired have been identified in the survey.

149. The presented document is final LARP. RDMRDI has reviewed and approved this document including compensation package and compensation rates and forwarded to the ADB for approval. Tasks for the RAP are divided into (i) Final Preparation including LARP approval various Initial tasks including legalization of legalizable APs and signing of contracts with APs. (ii) LARP implementation including processing and making payment of compensation and allowances and (iii) evaluation of implementation. Public consultation, internal monitoring and grievance redress will be undertaken intermittently throughout the project duration. The LAR milestones include (i) approval of LARP, (ii) signing of contract awards, (iii) letter to proceed for civil works construction and (iv) start of physical civil works. A post –implementation evaluation will be carried out after completion of LARP implementation.

8.2 Detailed Design Stage

150. Setting up relevant institutions for the LAR activities is in progress. Final LARP based on the detailed design has been prepared and will be submitted for approval of ADB and RDMRDI. The detailed and final LARP includes final impact assessment, detailed measurement surveys, preparation of individual parcel maps, and legalization of legalizable owners and updating of compensation rates etc. The final LARP upon the approval LARP will be disclosed. The pre implementation LAR activities during this detailed design stage are as below which are under progress: • Establishment of LAR Institutions; • Legalization of legalizable parcels • Updating of LAR Budgets • Confirmation of updated impact data and of compensation amounts; • Approval of LARP by ADB and Government and subsequent disclosure

8.3 LARP Approval and Initial Tasks

151. The Resettlement Division of the RD under RDMRDI sets up relevant institutions and line up ETCIC (Eurasian Transport Corridor Investment Center), LARC, Working Group/LAR Team, GRC and the like for the Project. Upon completion of the LARP from the detail design consultant, the RD reviews and approves the document including compensation rates. RD will submit the approved LARP to ADB for approval. Meanwhile, RD will implement actions for legalization of legalizable owners listed in the ACS (Acquisition and Compensation scheme) of LARP (ACS-I) at the field level. All arrangements will be set for signing the contract agreement with the APs and the process will be executed for land purchase and compensation

agreements. The capacity building exercise will be enhanced during this stage. Representatives of the APs and NGOs may be involved in LAR training at this stage. After completion of legalization of all legalizable owners of land parcels under LARP, RDMRDI will award civil works contracts (signing of contract awards). The initial LAR activities will be the following:

(i) Establishment of LAR Institutions and GRM; (ii) Legalization of Rightful owners of land parcels; (iii) Agreement with APs and signing contract agreements; (iv) Updating of LAR Budgets and ACS; (v) Confirmation of updated impact data and of compensation amounts; (vi) Approval of LARP by ADB and Government.

8.4 LARP Implementation stage

152. Payment of compensation and allowances under LARP will commence after a number of preparatory tasks have been completed. These tasks are: (i) Signing of contracts with APs (ii) Disclosure and consultation (iii) Capacity building training of LAR institutions, APs and NGOs (iv) Grievance resolution (v) Requisition to ETCIC for payment of compensation and allowances (vi) Transfer of compensation and allowance to APs' bank account and registration of land in PR on RDMRDI name (vii) Relocation of affected structures/ assets (viii) Compliance review and reporting (ix) Notice to proceed for Civil works construction (x) Monitoring

153. Upon the approval of detailed/final LARP, all the arrangements for fixing the compensation and the disbursement needs to be done which includes issuance of Identity cards (IDs), payment of all eligible compensation and assistance; initiation of rehabilitation measures; site preparation for delivering the site to contractors for construction and finally commencement of the civil work. Following task will be undertaken during the LARP implementation stage: • Signing of contracts with APs • Grievance resolution • Requisition to ETCIS for payment of compensation and allowances • Transfer of compensation and allowance to APs' bank account and registration of land in NAPR on RDMRDI name • Execution of eventual expropriation cases if required and if applicable • Compliance review and reporting • Notice to proceed for Civil works construction

8.5 LARP Monitoring Stage

154. Monitoring of the LARP implementation will be done simultaneously and will be reported in the form of a semi-annual monitoring report.

8.6 Implementation Schedule

155. This is a tentative schedule for LARP implementation for the section-2 road section. However, phase wise implementation mechanism may be followed in order to start the civil work in the completed section and to simultaneously proceed with the implementation of LARP for other sections. The schedule can be adjusted during detailed design. The tentative implementation Schedule is provided in Table 8.1.

Table 8-1 LARP Implementation Schedule

2018 2019 LARP May Jun July Aug. Sep. Oct. Nov. Dec. Jan Feb Mar Apr Tasks 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Preparation LARP surveys/valu ation

AP Consultation

LARP Finalized

ADB final review and approval of LARP Government approval Disclosure

Loan agreement Contract signing Implementation Legalization of land plots AP agreements signing Allocation of LAR budget Transfer of budget to ETCIC Transfer of budget to AP bank account

2018 2019 LARP May Jun July Aug. Sep. Oct. Nov. Dec. Jan Feb Mar Apr Tasks 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Compensation deposit in ETCIC account x unsolved cases Grievance resolution

Court proceedings in case of expropriation Relocation of affected structures Compliance report By EMA NOLfrom ADB to start civil works Start of physical construction

Internal Monitoring External Monitoring

9 COSTS AND FINANCING

156. All LARPs preparation and implementation costs, including cost of compensation and resettlement administration, will be considered in the project budget. Road Department is responsible for finding the project related funding.

157. Land compensation value has been provided by independent evaluator. Land plots have been divided in 4 categories based on their location and usage.

158. The compensation cost of structures are determined by considering all costs necessary for construction of the same building, current market prices. • All LARPs should contain the information about the budget, including: • Unit compensation rates for all affected items and allowances by indicating methodologies. • A cost table for all compensation expenses including external monitoring and contingencies; • LARP implementation costs.

9.1 Compensation for Land Table 9-1 Compensation for land

Price per 1 m2 Compensation Area (GEL) (GEL) I Commercial land plots 25 8404 210100 II Residential 15 159968 2399520 III Agricultural 6 286710 1720260 III State and Non legalizable land 0 24030 0 Total 479112 4329880

9.2 Compensation of Structures

159. The compensation cost of structures are determined by considering all costs necessary for construction of the same building, current market prices. Total compensation for the structures is 10,241,250GEL. Table 9-2 Compensation for Structures

# N of Buildings Total Compensation

1 1 1895 2 4 10785 3 1 16405 4 1 15390 5 1 7425 6 8 265350

# N of Buildings Total Compensation

7 1 13605 8 2 149075 9 5 301185 10 2 12110 11 2 14570 12 3 16405 13 1 11485 14 2 14615 15 2 11960 16 3 8310 17 1 9420 18 2 25420 19 5 220560 20 4 162735 21 1 318595 22 3 234375 23 3 112825 24 3 190645 25 3 347190 26 3 174010 27 1 8915 28 1 16160 29 1 10975 30 6 212535 31 5 202590 32 1 48200 33 2 430285 34 4 32040 35 5 292320 36 1 56835 37 3 104,025.00 38 5 350800 39 6 185780 40 2 4680 41 6 139985 42 1 1835 43 4 198555 44 2 90250 45 2 4280

# N of Buildings Total Compensation

46 1 1535 47 5 217630 48 3 15565 49 4 19660 50 1 14150 51 2 63315 52 2 6080 53 1 36105 54 3 48650 55 7 153365 56 5 148930 57 5 222780 58 2 9375 59 10 176885 60 1 2225 61 3 54055 62 5 136770 63 3 112205 64 9 253895 65 6 273980 66 4 156580 67 1 32900 68 8 161920 69 2 32515 70 2 8060 71 2 25395 72 3 29545 73 8 269030 74 6 189455 75 1 3010 76 7 237445 77 9 237865 78 3 136300 79 1 128980 80 3 157390 81 1 132495 82 2 64925 83 3 109145 84 4 248580

# N of Buildings Total Compensation

85 1 13540 86 5 212885 87 1 5185 88 1 4395 89 1 7585 90 1 48070 91 3 101850 92 2 12090 93 2 9765 94 1 10640 95 10 215315 96 3 100350 97 1 37845 98 1 22760 99 1 52895 307 10,241,250

9.3 Compensation for Harvest

160. All affected persons will be paid compensation for harvest with full market rate. Detailed information about crop compensation is presented below. Table 9-3 Compensation For harvest

Compensation of agricultural Agricultural crop Area Compensation crops harvest per 1 Ha, GEL Corn 4000 47277 18911 Bean 4000 41157 16463 Soybean 2200 0 Pumpkin 3500 17785 6225 Potatoes 15600 200 312 Cucumber 10500 240 252 Tomato 16000 230 368 Eggplant 5000 0 0 Strawberries 5200 2670 1388 Garlic 8000 90 72 Onions 18000 0 0 Herbs 5000 25 13 Raspberries 35000 1200 4200

Compensation of agricultural Agricultural crop Area Compensation crops harvest per 1 Ha, GEL Leeks 5000 30 15 Cabbage 6600 0 0 Oats 1250 100 13 Vegetables 5000 1424 712 Total 111004 48943

9.4 Compensation for Trees

161. Value of perennials was determined according to their age. Price of fruit trees was calculated by multiplying the market price of annual harvest to that number of years that is needed for growing new tree planting up to the age of the existing fruit trees.

162. Productive trees will be compensated based on price of seedling plus income of productive tree for the years needed to grow up from the 1 year seedling. In the price of seeding is also included cost of fertilizers, water and other expanses.

Table 9-4 Compensation for Trees

Plants Age group Cost (Gel) Quantity Compensation Seedling (<5) 35 412 14420 Cerry(Sweet 5-10 75 836 62700 cherry) 11-20 117 258 30186 21+ 75 89 6675 Seedling (<5) 27 49 1323 5-10 85 149 12665 Peach 11-20 216 12 2592 21+ 137 1 137 Seedling (<5) 80 186 14880 5-10 535 242 129470 Walnut 11-20 1235 285 351975 21+ 1510 329 496790 Seedling (<5) 20 24 480 5-10 83 51 4233 Quince 11-20 162 96 15552 21+ 109 13 1417 Seedling (<5) 33 80 2640 5-10 122 225 27450 Pear 11-20 416 182 75712 21+ 269 162 43578 Seedling (<5) 26 454 11804 Pulm (Veriety of 5-10 46 611 28106 plum) 11-20 88 297 26136 21+ 60 56 3360 Mulberry Seedling (<5) 26 142 3692

Plants Age group Cost (Gel) Quantity Compensation 5-10 58 275 15950 11-20 89 172 15308 21+ 58 33 1914 Seedling (<5) 30 756 22680 5-10 75 1659 124425 Hazelnut 11-20 90 931 83790 21+ 55 220 12100 Seedling (<5) 23 335 7705 Sour plum(Cerry 5-10 45 1138 51210 plum) 11-20 143 515 73645 21+ 73 96 7008 Seedling (<5) 22 114 2508 5-10 109 412 44908 Apple 11-20 298 196 58408 21+ 172 87 14964 Seedling (<5) 23 597 13731 5-10 31 1249 38719 Vine 11-20 40 4930 197200 21+ 23 7073 162679 Seedling (<5) 29 129 3741 5-10 66 452 29832 Fig 11-20 192 315 60480 21+ 129 58 7482 Seedling (<5) 27 0 0 5-10 72 1 72 Lemon 11-20 163 0 0 21+ 95 0 0 Seedling (<5) 15 12 180 5-10 29 34 986 Bay-tree 11-20 29 206 5974 21+ 15 0 0 Seedling (<5) 31 8 248 5-10 49 29 1421 Barberries 11-20 66 9 594 21+ 49 2 98 Seedling (<5) 23 11 253 5-10 67 37 2479 Mildness 11-20 130 19 2470 21+ 67 9 603 Seedling (<5) 29 3 87 5-10 88 3 264 Loquat 11-20 172 2 344 21+ 88 0 0 Seedling (<5) 20 227 4540 5-10 44 495 21780 Persimmon 11-20 128 378 48384 21+ 86 135 11610 Seedling (<5) 39 26 1014 Pomegrante 5-10 88 155 13640 11-20 256 174 44544

Plants Age group Cost (Gel) Quantity Compensation 21+ 172 29 4988 Seedling (<5) 112 3 336 5-10 357 7 2499 Chestnut 11-20 1057 4 4228 21+ 847 4 3388 Seedling (<5) 17 7 119 5-10 24 17 408 Dodwood 11-20 31 3 93 21+ 24 0 0 Seedling (<3) 3 19709 59127 Raspberry 3-10 10 12685 126850 10+ 7 6986 48902 Seedling (<5) 14 16 224 5-10 18 21 378 Currant 11-20 22.5 0 0 21+ 18 0 0 Seedling (<5) 16 41 656 5-10 50 296 14800 Staphylea 11-20 80 209 16720 21+ 65 143 9295 Seedling (<5) 30 18 540 5-10 140 17 2380 Jujube 11-20 550 6 3300 21+ 445 1 445 Seedling (<5) 24 1 24 5-10 45 1 45 Kiwi 11-20 129 0 0 21+ 87 0 0 Seedling (<5) 70 1 70 5-10 280 0 0 Almond 11-20 430 1 430 21+ 400 0 0 Seedling (<5) 30 0 0 5-10 120 1 120 Boxwood 11-20 200 0 0 21+ 750 0 0 Seedling (<5) 15 0 0 5-10 25 1 25 Strawberry tree 11-20 50 0 0 21+ 80 0 0 Seedling (<3) 10 148 1480 Blackberry 3-10 35 11 385 10+ 20 0 0 Seedling (<5) 2 0 0 5-10 4 0 0 Hawthorn 11-20 6 1 6 21+ 6 0 0 Total 69346 2882206

9.5 Resettlement Assistance

163. Three types of assistance are provided for the affected families: I. Assistance for strongly affected households: assistance for such households amounts to three month minimum subsistence wage for a family with 5 members (344.8* Gel x 3 months). II. Assistance for socially vulnerable families: assistance for such families is three month minimum subsistence wage for a family with 5 members (344.8 Gel x 3 months). III. Assistance for relocation/shifting: assistance for such families is three month minimum subsistence wage for a family with 5 members - (344.8 Gel x 3 months), plus 200 Gel for transportation.

164. Information about detailed calculation of assistance is given in the table 9.8

Table 9-5 Resettlement Assistance

Assistance Unit price (Gel) Number Total compensation Severe affected households 1034.4 193 199639.2 Socially vulnerable families 1034.4 55 56892 Relocation/Shifting 1234.4 52 64188.8

Total 3303.2 320720

* 344.8 GEL is a subsistence minimum for a family with 5 members of June 2018. http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng

9.6 Compensation for Businesses

165. Detailed information about business loses is given in table below.

Table 9-6 Compensation for Businesses

Compensation for Compensation for N Type of business N of employees business lose employees 1 Shop 0 4137.6 0 2 Bakery 0 4137.6 0 3 Restaurant 6 35270 13500

9.7 Resettlement management cost

166. Roads Department will need to employ one independent monitoring agency for external monitoring of LARP implementation for a period of 2 months (unless construction supervision consultant is not hired during implementation of LARP). Miscellaneous expenses have been kept

as a provision to cover the administrative cost as may be incurred during implementation of the LARP. Details of the LARP implementation management cost is given in Table 9-6

167. Cost of external monitoring shown in table blew is only for external monitoring phase two. Because phase one monitoring will be done by RDMRI employees.

Table 9-7 Resettlement management cost

Unit Quantity Unit cost Total cost Cost for external monitoring Months 24 4,000 96,000 Various administrative expenses Months 24 1,000 24,000 Total 120,000

9.8 Cost of resettlement

168. The budget of Land acquisition and resettlement plan covers: proper compensation, resettlement allowance and unexpected costs, which is 10% of the total cost. Table 9-8 Resettlement Budget

Total cost Name Unit cost Amount (Gel) Land parcels Various 479112 4329880 Structures Various 307 10241250 Fences and gates Various - 109061 Other assets Various - 65083 Trees Various 69346 2882206 Crop Various 111004 48943 Bossiness - 3 57047 Subsistence minimum for 3 Severe impact allowance6 193 199639 months (344.8x3) Subsistence minimum for 3 Relocation/Shifting months (344.8x3)+ Transportation 52 64119 allowance cost (200 Gel ) Subsistence minimum for 3 Vulnerability allowance 55 56892 months (344.8x3) External and Internal - 120000 monitoring Sum 18174119.8 Contingencies 20% 3634823.96 Total 21808943.76

6 This estimated amount is based on the 3-month subsistence minimum flat-rate allowance. Individual allowanced will be calculated based on annual yields from affected parcels of land; if annual yield is less than the 3-month subsistence allowance, the flat-rate allowance will be paid. The severity allowance will account for both agricultural and non-agricultural incomes.

Total cost of resettlement in USD-8974874. Official exchange rate for 17th of May 1 USD=2.43 GEL ( https://www.nbg.gov.ge/index.php?m=582&lng=eng ).

10 MONITORING AND REPORTING

169. LAR tasks requests both internal and external monitoring of the project.

10.1 Internal Monitoring

170. 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 ADB through the quarterly semiannually 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 LARP implementation, and to adjust the work program, if necessary. The monthly reports will be quarterly consolidated in the standard supervision reports to the ADB. Specific monitoring benchmarks will include: ➢ Timeliness, information campaign, quality of information and consultation with APs; ➢ Status of land acquisition and payments on land compensation; ➢ Compensation for affected structures and other assets; ➢ Relocation of APs; ➢ Payments for loss of income; ➢ Selection and distribution of replacement land areas; and ➢ Income restoration activities

171. Results of income restoration activities and compensation provided in terms of measuring extent to which affected livelihoods were restored, identifying gaps, which affected livelihoods were not satisfactory restored.

172. 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: ➢ Review of census information for all APs; ➢ Consultation and informal interviews with APs; ➢ In-depth case studies; ➢ Sample survey of APs; ➢ Key informant interviews; and ➢ Community public meetings.

10.2 External Monitoring

173. 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.

174. Phase One. This external Monitoring phase will be carried out by independent monitoring agency in parallel with the implementation of a LARP and will be concluded after the LARP 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.

175. 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 LARP. LARP implementation monitoring will entail the following tasks: (a) review of LARP/Information pamphlet disclosure; (b) review of action taken by the PIU to compensate the APs with particular attention to the way this action fits LARP stipulations; (c) review all compensation tallies; (d) verify whether the compensation is provided thoroughly to all APs and in the amounts defined in the RP 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 complaints & grievances case; (h) carry out an AP satisfaction survey with a 20% sample of the APs and 100% of vulnerable and severely affected households. The SSC will prepare the Compliance Report immediately after the completion of LARP implementation. The Compliance report will include well-argued sections on the following: ➢ Assessment of the way the compensation has been carried out in relation to RP stipulations; ➢ Verification that all APs were compensated in the amounts stipulated in the RP; ➢ Review and assessment of adequate livelihood restoration of severely affected households ➢ Review of complaint and grievance cases and of their solution; ➢ Assessment of the rehabilitation program for vulnerable Aps; ➢ Assessment of the satisfaction of the Aps; ➢ Lesson learned to be applied to the next projects, and; ➢ General assessment of LARP implementation and recommendations to RDMRDI.

176. Phase Two. Within one year from the completion of the LARP, the whole construction will be assessed. The supervision consultant will hire phase two external monitoring agency/consultant. (The cost for EMA for 12 months has already included to total cost of the supervision consultant.)

177. The following are main indicators for the investigations to be carried out in this external Monitoring phase: ➢ Socio-economic conditions of the APs in the post-resettlement period; ➢ Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc.; ➢ Changes in housing and income levels; ➢ Rehabilitation of informal settlers; ➢ Effectiveness of property valuation for rehabilitation purposes; ➢ Effectiveness of Grievance procedures; ➢ Level of satisfaction of APs in the post resettlement period.

10.3 Post Implementation Evaluation

178. Post implementation Evaluation will have two task for LARP: 1) Task 1 179. The frets task will be the preparation of a Compliance Report ( CR) at the end of the compensation process. The objective of the CR will be to vouch for the proper implementation in the LARP for all affected impacts and Aps based on the impact assessment figures, compensation rates and procedures set up in the document. The CR will be prepared immediately after the

conclusion of the compensation process by an independent monitoring agency consultant. A CR proving full compliance with the LARP will be the condition for the provision by ADB on no objection to start civil works in the road section with impacts. The CR will entail the following activities: a) Through comparison of the impacts/AP figures provided by the LARP with the compensation tallies will have to match; b) a reconciliation of differences between figures in the LARP and figures in the compensation tallies in case of changes in impact figures and AP number due to modification in project design or errors in the PARP; c) an analysis of eventual complains and of their solution; d) an AP satisfaction survey to be carried out through interviews with the APs; e) a set of recommendation for the preparation and implementation of future LARPs 2) Task 2 180. Task two will entail the preparation of an Evaluation Report assessing the degree to which the compensation program for the project managed to maintain the pre-project standards of living and incomes of the Aps. The report will be prepared one year after the conclusion of the compensation program by an independent Monitoring agency and will be based on a comparison of the data and living standards of the Aps before and after the compensation program.

ANNEXES

Annex 1 Legalization of private ownership of land in Georgia

A. INTRODUCTION

Correct and accurate initial registration of ownership rights is the necessary condition for undertaking voluntary acquisition or mandatory expropriation of real property. Pursuant to article 312 of the Civil Code of Georgia the records at the Public Registry are considered accurate until their inaccuracy is not proved. Therefore, throughout the presumption of the article 312 of the Civil Code of Georgia the inaccurate data available at the Public Registry shall be corrected with precise data. Therefore, landowners shall carry out precise demarcation and legalization of his/her land parcel(s) through proper procedure. The land owners have to apply to the Public Registry with necessary documents as proof of the ownership and description of land, Cadastral Map with precise survey data and documents verifying ownership right (Receive-Delivery Act, or Registration Certificate, or the extract from the land distribution list issued by the local self- government body, or the statement on the landowner’s registration as a tax payer in 1992-2001 years).

After the disintegration of the Soviet Union, all land in Georgia came under the state ownership. The Government of Georgia (GOG) started privatization of land in 2004 as an essential part of the economic reform in the country. The GOG applies various methods to privatize state-owned property including competitive bidding, auctions, lease, redemption and direct sale. However, lands under private occupation with traditional rights are being legalized through registration with National Agency for Public Registry (NAPR) of the Ministry of Justice. The pattern of privately owned lands in Georgia is determined by allocation of land plots after the independence from Soviet system. In the Soviet times the agricultural lands were used by collective farms financed by the State. During the privatization process the lands of collective farms were divided into small parcels and distributed among households who no longer receive agricultural subsidy from the State.

B. STATUS ON REGISTRATION ON PURE LAND AND REALITY IN PRESENT SITUATION

The registration for pure land (land parcel without having structure) has not been -stopped. However, in practice, most of the owners are not initiating any new land registration for the pure land because; (i) there is no requirement for them for new registration as buying and selling of pure land is not so prevalent in present situation (ii) these owners are using their respective plots based on the mutual understanding among the neighbors.

In reality, some of these land parcels and owners can still be converted into legal owners provided the initiation for land registration for pure land is taken by the owners. These cases under the current situation are considered as Legalizable Owners. Currently, there is no problem associated with urban and residential plots. Also, there is some cases pending in the court related to land registration, which needs to be addressed. The current ownership of land can be broadly categorized as follows: (i) Legal Owner/ Title Holder: Owners and users of land having their title registered in the Public Registry. (ii) Legalizable Owner:

a. Rightful Owners – the owners with old document proof although not having registration in the Public Registry under the Laws of Georgia on Privatization of State-owned Agricultural Land, (July 8, 2005) and The Law of Georgia on Public Register (No820 –Iis; December 19 of 2008); (the current legislation). b. Non-rightful owners - unauthorized land users having right to legalize landownership rights provided by the current legislation. The legalization of landownership rights, under the current legislation is allowed for following cases: - The state owned agricultural or non-agricultural land plot with residential house or supporting structures on it - occupied by the physical or legal person without permission before the current law came in force in 2007. - Land plot occupied by person without permission is adjacent to the land parcel rightfully owned or used by this person, taking into account that the illegally occupied land parcel should be of less area than the legally owned adjacent land parcel. However, there are certain restrictions on privatization of land7 (attachment-2). (iii) Non-Legalizable Landowners: Illegal/Squatters having no right to legalize landownership rights under the current legislation. Persons having no document of possessing the land in concern before the enactment of the current law in 2007 are not legalizable.

Legalization of Rightful Landownership rights is executed directly by Local Court Registration Offices of NAPR. The applicants should submit old documents proofing the ownership rights and precise cadastral maps of the land plot and structures on it.

Legalization of Non-rightful Landownership rights is authorized by Property Recognition Commission (in each municipality) through reviewing the application documents, evaluating eligibility against the restriction lists given in the law and local land use development plans. In case of positive decision and upon payment by the applicant of relevant amount of money to a special account, if applicable, the Commission issues certificate on ownership right. Based on that certificate the Local Registration Office of NAPR will register the ownership rights on land plot and structures.

C. NATIONAL SURVEY

In 2003-2004, USAID, along with some International Donors carried out a national level survey of land all over Georgia. These donors started the mapping of land for whole of Georgia. The mapping was done through an independent survey by physical verification of the land parcels and consultation with the owners. The positive aspect of the USAID survey was that it recognized the plots. However, the ownership details and the parcel boundary were not demarcated on the ground by the survey. Also, the details of ownership were not updated because most of the people do not initiate any registration for pure land. Therefore, there is a difference between the USAID

7 According to the Law of Georgia On Privatization of Agricultural Land Existing in State Ownership (Article 2, Clause 3), the following categories of State-owned lands are not subject to privatization: (a) Pasturelands other than those leased out before the enactment of this law which under the act issued by the competent state or local government (self-government authority) are duly allotted to the buildings and premises located thereon which are the private property of individuals or legal entities or the property of the state; (b) Cattle transfer routes; (c) The first zone (zone of strict regime) in sanitary protection area around water supply units; (d) Lands of forest funds, which are used for agricultural purposes; (e) Recreational lands; (f) Lands occupied with historical, cultural, natural and cult-religious monuments; (g) Lands of protected territories; (h) Agricultural lands that are used by the Budget-funded institutions and legal persons of public law in form of usufruct. The lands indicated in b, c, d and e may be privatized only if significant projects are implemented, on which government of Georgia, based on the suggestion of the Ministry of Economic Development of Georgia, shall take special decision. At the same time the land indicated in c may be privatized if the conditions of sanitary protection are met. (26.10.2007).

survey and the map exiting during the privatization process (Local Map/Archives) regarding the issues related to the exact ownership, boundary of each plot and its due recognition.

D. LAND ACQUISITION AND RESETTLEMENT SURVEYS AND DOCUMENTATION FOR THE PROJECT

As the land acquisition and resettlement (LAR) activities at the feasibility study (FS) level were based on tentative alignments and existing imprecise cadastral maps, and since there was no detail estimate of losses and ownership at FS, fresh land acquisition and resettlement surveys have been being carried out through detail measurement survey, valuation survey, census survey and socioeconomic survey. The road alignment as per final engineering design is being superimposed on the updated cadastral map of Registered land plots obtained from local NAPR and aerial photo (ortho-photo) of concerned area. Each of the affected Registered land plots in the project right of way are being identified along with its dimensions on the ortho-photo. The affected plots are being listed up and cadastral details collected from Local Courts NAPR, and local government offices as applicable.

Based on this, the survey team proceeded to the sites for field survey which included identification of each plot and verification of the details shown in the National Survey Map (National Cadaster Map) and the reality on the ground. The verification survey process includes title searching through review of available documents and discussions with the owners about land parcel boundary and further discussion with the local government, the representative of the NAPR (local archives are currently transferred to NAPR local offices) for its cross verification. Based on these methods final details of each parcel and ownership will be confirmed. This will help to identify the legal owners, the legalizable owners (rightful and non-rightful) and the illegal occupants of state owned land. The list of various categories of ownership will be recorded with the help of local government.

The FS noted that some of the owners of affected land parcels have the land documents (old documents) as proof of ownership obtained during the post-soviet period. These land owners did not Register their land parcels in the local registration office as it was not mandatory for them. As general estimation registered land owners in Georgia constitute 10-15% of all the legalizable pool of land owners/users.

E. H.1 - REGISTRATION OF RIGHTFUL OWNERS

Recognition of ownership rights in relation with the rightfully owned/used land plot is executed through registration of ownership right directly in the Public Registry. For that purpose, the applicant has to submit: (i) Documents confirming rightful ownership of the land plot (annex 3). (ii) Precise cadastral maps of the land plot. (iii) Document confirming payment of the fee for the property recognition (51 Gel). (iv) Identification documents of the applicant.

The process and procedure for registration of Rightful Owners needs complete the steps described as follows: Step 1 Preparation of fresh and precise cadastral map by the owners through private agencies. The map will include all the dimensions of plots and geometrical details. The cost of preparation of map ranges from 0.06 GEL to 0.10 GEL per sqm of land to be recognized. The duration for preparation

of map will be approximately a week time. However, within the project frame, the consultant will prepare precise cadastral maps for the affected land plots and these maps along with required land descriptions will be given to the legalizable and other land owners free of charge. Step 2 In case the owner does not have available ownership proving documentation (annex-3) or in case there is any doubt regarding the plot, the owner has to apply to the local community level self-government (Sakrebulo and Gamgeoba) and local NAPR Office (where Archives are kept) for the proof and cross verification of the land details. Step 3 After the verification from NAPR local Office, the owners will take the endorsement from the community municipal office (Gamgeoba).. Step 4 Following the authorization from Gamgebeli the owners will approach to the Local Registration Office of the NAPR. The owners will provide all the above proof to the registration office. The registration office will verify the completeness of all required application documents. The owners have to submit both the soft copy and hard copy of the plot maps along with its coordinates for record in the Public Registry office. The registration process will take 4 working days in normal situation and the property recognition fee will be 51 GEL per registration. In case of urgency, the owners have to pay 150 GEL to get the registration done in one working day and 200 GEL, if the registration needs to be done immediately. However, the registration office for affected legalizable owners will not charge the urgency cost and will be able to complete each case in maximum 6 days. after the finalization of registration, the Public Registry office will compile the land records and will update the cadastral details. The updated details will be sent to the central Public Registry for centralized record. In case, there remains further dispute related to ownership, the case may be referred to the court. The project authority may estimate the price of that particular land and may deposit the amount in the State Budget allocated for the Project.. The payment to the real owner will be executed from the State Budget according to the court decision upon confirmation by the Roads Department as LARP implementing agency. The case will be resolved in the Local Court.

F. H.2 - REGISTRATION OF NON-RIGHTFUL OWNERS

For recognition of the ownership rights on non-rightfully owned land plot the owner/user should submit to Property Recognition Commission application letter through the Office of Sakrebulo with the following supplementary documentation: (i) Document confirming the fact of non-rightful ownership/use of the land plot (see annex 3) or attestation of witness (neighbors etc.). (ii) Precise cadastral maps of the land plot (iii) Information needed for determination of the fee for property recognition (iv) Copies of the identification documents of the applicant

The process and procedure for registration of Non-Rightful Owners needs the following steps as described below:

Step1 Preparation of fresh and precise cadastral map by the owners through private agencies. The map will include all the dimensions of plots and geometrical details. The cost of preparation of map ranges from 0.06 GEL to 0.10 GEL per sq.m of land to be recognized. The duration for preparation of map will be approximately a week time. However, within the project frame, the consultant will prepare precise cadastral maps for the affected land plots and these maps along with required land descriptions will be given to the legalizable and other land owners free of charge. Step 2 The map and its details will be authorized and the land usage pattern will be verified by the neighbors. The community local administration (Gamgeoba) may also certify the authorization. Step 3 Following the authorization from the neighbors, the same has to be notarized. Cost of notarial confirmation of neighbors witness will be 15 GEL for each case. Step 4 The land owner/user will approach to the Property Recognition Commission through Office of Sakrebulo with a package of documents confirming eligibility for legalization of the land plot according to the current legislation. This includes ownership documents (see annex-3) related to the adjacent land plots owned by the applicant rightfully. Step 5 In case if, the owner does not have available documentation proving ownership rights on the adjacent land plot or in case there is any doubt regarding the plot, the owner will apply to the local NAPR Archives for the proof and cross verification of the land details. Step 6 after the verification, the Office of Sakrebulo will endorse the application and authorize the case for recognition. Step 7 Following the authorization from Sakrebulo, the owners will approach to the Property Recognition Commission. The owners will provide all the above proof to the Commission. The Commission will verify the documents, make physical verification and organize an open disclosure meeting on site with prior notice to the concerned community peoples. If the documents are clear and the land is free from any dispute from anybody, then the Commission will notify the applicant to deposit payment for the land (if applicable). after payment, or if the payment is not applicable, the commission will issue certificate on ownership right to the owners. Step 8 Based on the above steps, the owners will go to the Public Registry at their respective village/municipality for registration. The owners have to submit both the soft copy and hard copy of the plot maps along with its coordinates. The registration process will take 4 working days in normal situation and the property recognition fee will be 51 GEL per registration. In case of urgency, the owners have to pay 150 GEL to get the registration done in one working day and 200 GEL, if the registration needs to be done immediately. However, the registration office for affected legalizable owners will not charge the urgency cost and will be able to complete each case in maximum 6 days. after the finalization of registration, the Public Registry office will compile the land records and will update the cadastral details. The updated details will be sent to the central Public Registry for centralized record.

In case there are remains and further dispute related to ownership; the case may be referred to the court. The project authority may estimate the price of that particular land and may deposit the amount in the State Budget allocated for the Project. The payment to the real owner will be executed from the State

Budget according to the court decision upon confirmation by the Road Department as LARP implementing agency.

Actions at Detail Design

The most important issue for timely acquisition of land is the coordination between the Roads Department and the respective municipality level administration (municipal Gamgeoba and PRRC). These issues have been identified and brought to the notice of concerned stakeholders by the DD consultant, through consultation and review of existing process of privatization. The Consultant during the process obtained full cooperation process from the concerned registration services and local government offices. Services of an experienced survey and audit agency have been utilized to identify the current owners (users) of affected land parcels as per final engineering design of the road.

All the legalizable owners (rightful and non-rightful) have been identified through extensive title search. Fresh and precise maps of land parcels (with standard coordinates) and geometric details will be provided to the legalizable owners in CD-ROM and printed copies. A generic instruction leaflet has been distributed to the affected persons on the process of legalization of legalizable land parcels. The survey agency is also counseling the AP persons on the process and its urgency for timely receipt of compensation for their acquired land. All legalizable owners will be provided with the detailed cadastral maps and case-specific instructions on further steps for legalization.

The registration will be completed for the legalizable owners during the implementation of LARP and prior to the disbursement of compensation. The cost involved in the registration process will be reimbursed from the Project during LARP preparation and implementation. The affected legalizable owners have to initiate the land registration at their own cost in the beginning with such assurance from the Roads Department.

Annex 2 Minutes of Meeting Boriti

Minutes of Meetings

KHEVI-UBISA-SHORAPANI-ARGVETA (E60 HIGHWAY ROUTE) SECTION F2

Boriti 23.05.2018 10:00 AM

Chairman of the meeting: Lorenzo Carapellese, IRD Engineering Secretary of the meeting: Elene Mgaloblishvili, Social Specialist of Gamma Consulting Ltd

Attendees: Representatives of Roads Department of Georgia (Mikheil Ujmajuridze, Mariam Begiashvili, Archil Jorbenadze, Maka Kvakhadze, Vasil Bazadze), Governor of Imereti region and Mayor of Kharagauli municipality, representatives of the affected villages and APs, representative of IRD (Lorenzo Carapellese), representatives of Gamma Consulting Ltd (Elene Mgaloblishvili). List of attendees is enclosed Agenda: 1. Information about the project mean RoW 2. Land registration and legalization process 3. Grievance Redress mechanism 4. Discussion with Stakeholders.

Elene Mgaloblishvili introduce to the attendees information about project and companies and institutions that are responsible for design and implementation.

Mr. Lorenzo Carapellese described the aliment and main difficulties to avoid natural and cultural important premise. He also underlined the cooperation of the local people to our team and workers all along the RoW.

Elene Mgaloblishvili described process of land registration, legalization and grievance redress mechanism.

Elene Mgaloblishvili represented movies about the project and commented it. After presentation of the project the desiccation was open, quotation and comments are shown below.

During the discussion the officials of the Road Departments intervened giving explanation and suggestion on the legalization process and technical procedures, also providing assistance on registration of their land plots.

Annex 1 Questions from attendees Authors of comments and Content of comments and suggestions Response suggestions 1. There are some families whose plots of land are In case if land plot is not registered we not registered and we have some problems will make cadastral drawings for you. with documentation. What will be the Next step is to take these drawings to procedures in such situation Public Agency. If there will not be any documents which prove ownership of Tsikarishvili land plots, case will be send to Lasha commission. If land will be registered owner will be compensated in full replenishment cost. If not owner will be compensated for actives on land such is trees, structures and etc. 2. What will happen with the part of land plots In the buffer is included safety distance which will not be acquired? What if they will be that will prevent any damage during the Ucha Zumbadze damaged during construction? works, in case some damage will occur they will be compensated. 3. Design provided access roads as much as possible, where it was not possible What if plot of land or a house will be left without Ucha Zumbadze access road, what will happen in such situation; property was included in buffer and they will be acquired.

4. Kurtanidze Anzori Unit price of land plot will be evaluated Land plots with trees and structures will have by type of land. Land plots with same same price as empty land. type will have same price, but trees and crops also will be compensated. 5. Cost of perennial plants is determined in Barbakadze Zaza accordance with their age and productivity. Price of fruit trees will be calculated by multiplying of the average How trees will be evaluated? annual harvest market price to those years that is essential for growing the new perennial seedling to the same age of existing trees. 6. Nemsadze Maro Structures will be cash compensated at replacement cost. Replacement cost calculation considers market cost of the materials to build a replacement structure with an area and quality How will be calculated price of buildings? similar to or better than those. The lost structures will be compensated at replacement cost, taking into account current prices on materials, transportation, workforce etc. 7. Barbakadze Besik The government of Georgia is getting the loan from ADB to finance this project What is the source of financing this project? civil works. However, the RAP expenses are paid from national budget.

Annex 2 List of attendees

ი ი, ხი ხ/ი შ იი N ი Full Name Place of living Place of work Phone Number

1. Boriti Self-employed 599 88 49 17 Barbakadze Besik (masc.) Assistant of the representative of 2. Boriti 551 12 99 01 Barbakadze Zurab (masc.) the Mayor in Boriti community

3. Paksashvili Vazha (masc.) Boriti Pensioner 599 20 60 52

4. Nemsadze Maro (fem.) Sakasria Housewife 24 25 92 (local)

5. Kurtanidze Anzori (masc.) Sakasria Unemployed 551 60 65 04

6. Tabatadze Natalia (fem.) Sakasria Housewife 598 53 96 58

7. Tsikarishvili Gulnazi (fem.) Sakasria Housewife 599 65 16 16

8. Barbakadze Tamaz (masc.) Boriti Guard 592 28 08 54

9. Barbakadze Mamuka (masc.) Sakasria Unemployed 598 70 97 53

Tsikarishvili Lasha (masc.) Sakasria 10. Unemployed 555 68 48 61

11. Tsikarishvili Mamia (masc.) Sakasria Unemployed 599 40 75 21

12. Tsikarishvili Zaza (masc.) Sakasria Unemployed 577 68 40 41

13. Kurtanidze Zviad (masc.) Boriti Unemployed 577 31 89 79

14. Tsikarishvili Koba (masc.) Sakasria Unemployed 555 56 57 18

Zumbadze Ucha (masc.) Boriti 15. Unemployed 557 45 65 44

16. Tsikarishvili Ivane (masc.) Sakasria Unemployed 579 13 91 01

Jobadze Khatuna (fem.) Boriti Representative of 17. 595 36 01 42 the Mayor

18. Dalakishvili Grigol (masc.) Kutaisi Acting Governor 598 77 02 17

ი ი, ხი ხ/ი შ იი N Full Name Place of living Place of work ი Phone Number

Mayor of 19. Topuridze Nikoloz (masc.) Kharagauli 595 42 77 77 Kharagauli

Specialist of a 20. Gogoladze Shorena (fem.) Boriti 557 27 02 37 Cultural Center

21. Barbakadze Spartak (masc.) Boriti Handicraftsman 558 79 30 76

22. Jinchvelashvili Giorgi (masc.) Kutaisi Imereti Governor’s 595 94 14 41 office

23. Paksashvili Iamze (fem.) Boriti Doctor, Deputy 593 57 23 27

24. Giorgadze Nugzar (masc.) Boriti Sole trader 555 57 60 04

25. Barbakadze Zaza (masc.) Boriti Unemployed 599 20 17 30

26. Tsikarishvili Demuri (masc.) Pensioner 555 24 18 99 Sakasria

27. Barbakadze Teimuraz (masc.) Sakasria Unemployed 790 12 11 53

28. Tsikarishvili Murman (masc.) Sakasria Guard 593 64 12 35

29. Kapanadze Besik (masc.) Boriti Unemployed 593 50 60 33

30. Bazadze Vasil (masc.) Kutaisi Roads Department 595 21 90 71

31. Kvakhadze Medea (fem.) Kutaisi Roads Department 595 21 99 01

32. Cheishvili Davit (masc.) Kutaisi Roads Department 591 15 21 15

Annex 3 Pictures

Annex 3 Minutes of Meetings Khunevi KHEVI-UBISA-SHORAPANI-ARGVETA (E60 HIGHWAY ROUTE) SECTION F2

Khunevi 23.05.2018 1:00 PM

Chairman of the meeting: Lorenzo Carapellese, IRD Engineering Secretary of the meeting: Elene Mgaloblishvili, Social Specialist of Gamma Consulting Ltd

Agenda: 1. Information about the project mean RoW 2. Land registration and legalization process 3. Grievance Redress mechanism 4. Discussion with Stakeholders.

Elene Mgaloblishvili introduce to the attendees information about project and companies and institutions that are responsible for design and implementation.

Elene Mgaloblishvili described process of land registration, legalization and grievance redress mechanism.

Elene Mgaloblishvili represented movies about the project and commented it. After presentation of the project the desiccation was open, quotation and comments are shown below.

Annex 1 Questions from attendees Authors of comments and Content of comments and suggestions Response suggestions 1. What we will need to do if land plot is registered In case of register land you will need Maro on diseased person? What will happen in such to provide document proving legacy. Lursmanashvili case and what will be the procedures of In case of not registered land plot we registration? will provide cadastral maps. 2. A person has some productive nut trees on a plot, Compensation of trees will be Lomidze Zurab which is not legalizable. How will these trees be provided not depending legal status compensated; of land plot. 3. At present the research/evaluation process of identification of market rate for land compensation is underway. Evaluation methodology implies identification of market price on the basis of data on executed transactions related to land Bliadze Mamuka What is the land compensation price? sale/purchase; Final individual compensation will be presented to each AH by the representative of RD. However the rates of price (per sq.m) for different types of land will be disclosed earlier on public consultation. 4. Gogoladze Tengiz For those of us, who does not have a new For everyone who needs new registration on the lands, shall we do it ourselves registration we will provide cadastral or will you help us? drawings and help to register lends. 5. Kapanadze Zurab The civil works contractor contract will envisages the prioritized employment Will the Project facilitate employment? of the locals and RD and local authorities will take care that these provisions are met. 6. Chaduneli Enver In any case, crop compensation for 1 How will be compensated annual crop? Do we year will be given to APs in cash at have possibility to harvest crops this year? market rate by default at the gross crop value of expected harvest.

Annex 2 List of attendees

ი ი, ხი ხ/ი შ იი N Full Name Place of living Place of work ი Phone Number Unemployed, 1. Khunevi 571 12 07 29 Lomidze Givi (masc.) vulnerable

2. Vertkvichala Pensioner 593 48 43 86 Mumladze Jemali (masc.)

3. Gogoladze Temuri (masc.) Vertkvichala Pensioner 551 10 60 66

4. Tsitskishvili Murtazi (masc.) Vertkvichala Pensioner 599 14 33 68

5. Tsitskishvili Temuri (masc.) Vertkvichala Pensioner 558 91 63 42

6. Lomidze Eteri (fem.) Khunevi Pensioner 598 55 66 94

7. Lomidze Zurab (masc.) Khunevi Pensioner 599 50 12 93

8. Lomidze Elguja (masc.) Khunevi Unemployed 555 12 12 38

9. Lomidze Temuri (masc.) Khunevi Pensioner 555 39 32 06

10. Barbakadze Eteri (fem.) Vertkvichala Pensioner 551 33 02 32

11. Gelashvili Tengiz (masc.) Khunevi Pensioner 591 26 70 80

12. Gelashvili Giorgi (masc.) Khunevi Pensioner 558 60 72 80

13. Kapanadze Zurab (masc.) Khunevi Unemployed 555 63 36 96

14. Lomidze Davit (masc.) Khunevi Unemployed 577 17 95 84

Lursmanashvili Mariam (fem.) Vertkvila 15. Pensioner 555 30 69 25

16. Bliadze Mamuka (masc.) Vertkvila Unemployed 558 74 60 14

Bliadze Grigol (masc.) Vertkvichala 17. Unemployed 558 88 00 20

18. Bliadze Archil (masc.) Vertkvichala Teacher 577 66 30 83

ი ი, ხი ხ/ი შ იი N Full Name Place of living Place of work ი Phone Number Unemployed, 1. Khunevi 571 12 07 29 Lomidze Givi (masc.) vulnerable

2. Vertkvichala Pensioner 593 48 43 86 Mumladze Jemali (masc.)

3. Gogoladze Temuri (masc.) Vertkvichala Pensioner 551 10 60 66

19. Gogoladze Zurab (masc.) Vertkvichala Driver 555 18 87 96

20. Lomidze Merab (masc.) Khunevi Pensioner 555 77 47 14

21. Lomidze Gela (masc.) Vertkvila Unemployed 598 33 36 83

22. Bliadze Akaki (masc.) Vertkvila Unemployed 591 54 54 96

23. Chaduneli Enver (masc.) Vertkvila Unemployed 555 75 04 06

24. Gogoladze Tengiz (masc.) Vertkvila Unemployed 598 96 50 69

School director, 25. Abashidze Lena (fem.) Vertkvila 577 97 74 93 Deputy

26. Osadze Nana (fem.) Kindergarten 571 60 90 18 Vertkvila

27. Machitidze Luiza (fem.) Vertkvichala Housewife 771 06 96 65

28. Lomizde Jambul (masc.) Khunevi Self-employed 593 76 74 24

29. Gamtsemlidze Nato (fem.) Khunevi Librarian 577 67 15 18

30. Lomizde Natela (fem.) Khunevi Housewife 599 05 16 53

31. Mumladze Nadejda (fem.) Vertkvichala Teacher 577 67 15 08

32. Paksashvili Ucha (masc.) Vertkvichala Self-employed 557 15 72 72

33. Lomidze Gela (masc.) Khunevi Unemployed 593 55 47 59

34. Tsitskishvili Alexander (masc.) Vertkvichala Farmer 599 90 83 88

35. Nozadze Natalia (fem.) Vertkvichala Housewife 593 73 94 92

ი ი, ხი ხ/ი შ იი N Full Name Place of living Place of work ი Phone Number Unemployed, 1. Khunevi 571 12 07 29 Lomidze Givi (masc.) vulnerable

2. Vertkvichala Pensioner 593 48 43 86 Mumladze Jemali (masc.)

3. Gogoladze Temuri (masc.) Vertkvichala Pensioner 551 10 60 66

36. Sakhvadze Vepxia (masc.) Vertkvichala Handicraftsman 558 28 91 06

37. Lomidze Mamuka (masc.) Khunevi Unemployed 551 15 67 15

38. Lomidze Tamazi (masc.) Khunevi Sole trader 599 15 75 63

39. Lomidze Malkhaz (masc.) Khunevi Patrol police 577 77 41 16

40. Tsitsvidze Eliso (fem.) Vertkvichala Housewife 558 32 64 32

41. Tsitskishvili Natela (fem.) Vertkvila Housewife 558 99 23 95

42. Bliadze Vladimer (masc.) Vertkvichala Unemployed 557 91 13 22

43. Kozashvili Eliko (fem.) Vertkvichala Pensioner 557 91 13 22

44. Bliadze Zviad (masc.) Vertkvichala Trader, Farmer 599 71 13 04

45. Gogoladze Gia (masc.) Vertkvila Sole trader 555 16 43 26

46. Lomidze Zaza (masc.) Khunevi Unemployed 599 26 06 31

47. Akhalkatsi Eka (masc.) Vertkvila Teacher 577 67 15 17

48. Gelashvili Rostomi (masc.) Khunevi Unemployed 557 30 99 09

49. Tsikarishvili Nino (fem.) Vertkvila Housewife 599 67 80 68

Representative of 50. Lomidze Kakha (masc.) Khunevi 557 29 49 44 the Mayor

Roads 51. Bazadze Vasil (masc.) Kutaisi 595 21 90 71 Department

Roads 52. Kvakhadze Medea (fem.) Kutaisi 595 21 99 01 Department

Annex 3 Pictures

Annex 4 Minutes of Meetings Khevi

Minutes of Meetings

KHEVI-UBISA-SHORAPANI-ARGVETA (E60 HIGHWAY ROUTE) SECTION F2

Khevi 23.05.2018 4:00 PM

Chairman of the meeting: Lorenzo Carapellese, IRD Engineering Secretary of the meeting: Elene Mgaloblishvili, Social Specialist of Gamma Consulting Ltd

Agenda: 1. Information about the project mean RoW 2. Land registration and legalization process 3. Grievance Redress mechanism 4. Discussion with Stakeholders.

Elene Mgaloblishvili introduce to the attendees information about project and companies and institutions that are responsible for design and implementation.

Mr. Lorenzo Carapellese described the alignement and main difficulties to avoid natural and cultural important premise. He also underlined the cooperation of the local people to our team and workers all along the RoW.

Elene Mgaloblishvili described process of land registration, legalization and grievance redress mechanism.

Elene Mgaloblishvili represented movies about the project and commented it. After presentation of the project the desiccation was open, quotation and comments are shown below.

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Annex 1 Questions from attendees Authors of comments and Content of comments and suggestions Response suggestions 1. How will the existing road be connected to a new In this section of this project will be Grigalashvili Natela highway; made 3 interchange for connecting. 2. When the new highway is constructed, who will Roads Department and Municipality Bogveradze Davit take care of the maintenance of the existing road; will take care on existing road. 3. Construction of a bridge is envisaged over my plot Land plots under bridge will be Bogveradze Davit) of land. Will I be able to use it during and after acquired. construction of the highway; 4. Grigalashvili Compensation for trees, crops and Klimenti I have 20 years old trees along the road and they structures will be provided, not are not registered. What will happen in this case; depending on legal status of land. 5. Tengiz Grigalashvili For this part of this project will be The plots of lands were evaluated in the scope of made new evaluation. Unit prices of F-1. Will be the same for F-2? land plots will be presented after evaluation process will be finished. 6. Dvalishvili Nino In case if land plot is not registered Who is paying registration fees? RD will provide cadastral drawings. Registration of land plot is free. 7. Grigalashvili On the sites where the Project Besarion envisages such damages, the infrastructure will be moved after Will be the local roads and infrastructure finishing the construction period. damaged during project implementation and then In case of unforeseen damage RD restored? will impose control over the civil works company to ensure rehabilitation of all damaged infrastructure.

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Annex 2 List of attendees

ი ი, ხი ხ/ი შ იი N ი Full Name Place of living Place of work Phone Number

Ministry of 1. Betkhoshvili Natia (fem.) Grigalati 577 39 33 95 Defence

2. Grigalashvili Natela (fem.) Grigalati LTD “Ibolia” 599 14 20 02

Assistant of the 3. Grigalashvili Besarion (masc.) Grigalati representative of 599 25 30 71 the Mayor

4. Grigalashvili Klimenti (masc.) Khevi Unemployed 593 94 97 47

5. Grigalashvili Davit (masc.) Khevi LTD “Ibolia” 593 13 75 18

6. Barbakadze Avtandil (masc.) Grigalati Unemployed 551 16 36 22

7. Kakhidze Nino (fem.) Khevi Kindergarten 595 50 62 69

8. Grigalashvili Nugzar (masc.) Grigalati Sole trader 557 63 89 11

9. Grigalashvili Enver (masc.) Grigalati Guard 599 29 62 13

10. Grigalashvili Gela (masc.) Grigalati Restaurant 593 32 32 51

11. Nozadze Grigol (masc.) Tbilisi LTD “Fountain 571 77 73 72

Georgia”

12. Nozadze Shorena (fem.) Tbilisi Housewife 599 53 10 07

13. Dvalishvili nino (fem.) Grigalati Housewife 557 51 32 32

14. Grigalashvili Lia (fem.) Grigalati Cleaning lady 568 65 45 61

15. Bogveradze Davit (masc.) Grigalati Ferro Factory 591 63 47 30

16. Grigalashvili Irina (fem.) Khevi Housewife 551 44 55 09

17. Tsomaia Nona (fem.) Khevi Housewife 593 12 77 00

18. Grigalashvili Nunu (fem.) Khevi Pensioner 599 58 04 41

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ი ი, ხი ხ/ი შ იი N Full Name Place of living Place of work ი Phone Number

Ministry of 1. Betkhoshvili Natia (fem.) Grigalati 577 39 33 95 Defence

19. Grigalashvili Gramiton (masc.) Grigalati Pensioner 599 28 15 95

20. Grigalashvili Imeda (masc.) Grigalati Unemployed 558 30 51 81

21. Grigalashvili Anzor (masc.) Grigalati Unemployed 593 52 06 75

22. Grigalashvili Merab (masc.) Grigalati Pensioner 599 74 06 97

23. Grigalashvili Tatiana (fem.) Grigalati Pensioner 790 11 16 13

24. Grigalashvili Tengiz (masc.) Grigalati Pensioner 593 95 22 04

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Annex 3 Pictures

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Annex 5 List of participants on public consultation AP Female/ Place of N Full Name (1.Yes Place of work Phone Number E-mail Male living 2. NO) Location: Khevi Date: 23.05.2018 Number of Participants: 24 Ministry of Betkhoshvili Natia 1 Female Grigalati 577 39 33 95 - 1 Defence Grigalashvili 1 Female Grigalati 599 14 20 02 - 2 Natela LTD “Ibolia” Assistant of the Grigalashvili 1 male Grigalati representative of 599 25 30 71 - Besarion 3 the Mayor Grigalashvili 2 Male Khevi Unemployed - 4 Klimenti 5 Grigalashvili Davit 1 male Khevi LTD “Ibolia” 593 13 75 18 - Barbakadze 1 male Grigalati Unemployed 551 16 36 22 - 6 Avtandil 7 Kakhidze Nino 1 Female Khevi Kindergarten 595 50 62 69 - Grigalashvili 1 male Grigalati Sole trader 557 63 89 11 - 8 Nugzar 9 Grigalashvili Enver 1 male Grigalati Guard 599 29 62 13 - 10 Grigalashvili Gela 1 male Grigalati Restaurant 593 32 32 51 - Nozadze Grigol 1 male Tbilisi LTD “Fountain 571 77 73 72 - 11 Georgia” 12 Nozadze Shorena 1 Female Tbilisi Housewife 599 53 10 07 - 13 Dvalishvili nino 1 Female Grigalati Housewife 557 51 32 32 - 14 Grigalashvili Lia 1 Female Grigalati Cleaning lady 568 65 45 61 - 15 Bogveradze Davit 1 Male Grigalati Ferro Factory 591 63 47 30 - 16 Grigalashvili Irina 1 Female Khevi Housewife 551 44 55 09 - 17 Tsomaia Nona 1 Female Khevi Housewife 593 12 77 00 - 18 Grigalashvili Nunu 1 Female Khevi Pensioner 599 58 04 41 - Grigalashvili 1 Male Grigalati Pensioner 599 28 15 95 - 19 Gramiton 20 Grigalashvili Imeda 1 Male Grigalati Unemployed 558 30 51 81 - 21 Grigalashvili Anzor 1 Male Grigalati Unemployed 593 52 06 75 - 22 Grigalashvili Merab 1 Male Grigalati Pensioner 599 74 06 97 - Grigalashvili 1 Female Grigalati Pensioner 790 11 16 13 - 23 Tatiana Grigalashvili 1 Male Grigalati Pensioner 593 95 22 04 - 24 Tengiz Location: Khunevi Date: 23.05.2018 Number of Participants: 52 Unemployed, Lomidze Givi 1 Male Khunevi 571 12 07 29 - 25 vulnerable Vertkvicha Mumladze Jemali 1 Male Pensioner 593 48 43 86 - 26 la Vertkvicha Gogoladze Temuri 1 Male Pensioner 551 10 60 66 - 27 la Tsitskishvili Vertkvicha 1 Male Pensioner 599 14 33 68 - 28 Murtazi la Vertkvicha Tsitskishvili Temuri 1 Male Pensioner 558 91 63 42 - 29 la 30 Lomidze Eteri 1 Female Khunevi Pensioner 598 55 66 94 - 31 Lomidze Zurab 1 Male Khunevi Pensioner 599 50 12 93 - 32 Lomidze Elguja 1 Male Khunevi Unemployed 555 12 12 38 - 33 Lomidze Temuri 1 Male Khunevi Pensioner 555 39 32 06 - Vertkvicha Barbakadze Eteri 1 Female Pensioner 551 33 02 32 - 34 la 35 Gelashvili Tengiz 1 Male Khunevi Pensioner 591 26 70 80 - 36 Gelashvili Giorgi 1 Male Khunevi Pensioner 558 60 72 80 - 37 Kapanadze Zurab 1 Male Khunevi Unemployed 555 63 36 96 - 38 Lomidze Davit 1 Male Khunevi Unemployed 577 17 95 84 - Lursmanashvili 1 Female Vertkvila Pensioner 555 30 69 25 - 39 Mariam 40 Bliadze Mamuka 1 Male Vertkvila Unemployed 558 74 60 14 - Vertkvicha Bliadze Grigol 1 Male Unemployed 558 88 00 20 - 41 la Vertkvicha Bliadze Archil 1 Male Teacher 577 66 30 83 - 42 la

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AP Female/ Place of N Full Name (1.Yes Place of work Phone Number E-mail Male living 2. NO) Vertkvicha Gogoladze Zurab 1 Male Driver 555 18 87 96 - 43 la 44 Lomidze Merab 1 Male Khunevi Pensioner 555 77 47 14 - 45 Lomidze Gela 1 Male Vertkvila Unemployed 598 33 36 83 - 46 Bliadze Akaki 1 Male Vertkvila Unemployed 591 54 54 96 - 47 Chaduneli Enver 1 Male Vertkvila Unemployed 555 75 04 06 - 48 Gogoladze Tengiz 1 Male Vertkvila Unemployed 598 96 50 69 - School director, Abashidze Lena 2 Female Vertkvila 577 97 74 93 - 49 Deputy Osadze Nana 1 Female Vertkvila Kindergarten 571 60 90 18 - 50 (fem.) Vertkvicha Machitidze Luiza 2 Female Housewife 771 06 96 65 - 51 la 52 Lomizde Jambul 1 Male Khunevi Self-employed 593 76 74 24 - Gamtsemlidze 1 Female Khunevi Librarian 577 67 15 18 - 53 Nato 54 Lomizde Natela 2 Female Khunevi Housewife 599 05 16 53 - Mumladze Vertkvicha 1 Female Teacher 577 67 15 08 - 55 Nadejda la Vertkvicha Paksashvili Ucha 1 Male Self-employed 557 15 72 72 - 56 la 57 Lomidze Gela 1 Male Khunevi Unemployed 593 55 47 59 - Tsitskishvili Vertkvicha 2 Male Farmer 599 90 83 88 - 58 Alexander la Vertkvicha Nozadze Natalia 1 Female Housewife 593 73 94 92 - 59 la Vertkvicha Sakhvadze Vepxia 1 Male Handicraftsman 558 28 91 06 - 60 la 61 Lomidze Mamuka 1 Male Unemployed 551 15 67 15 - 62 Lomidze Tamazi 1 Male Khunevi Sole trader 599 15 75 63 - 63 Lomidze Malkhaz 1 Male Khunevi Patrol police 577 77 41 16 - Vertkvicha Tsitsvidze Eliso 2 Female Housewife 558 32 64 32 - 64 la 65 Tsitskishvili Natela 1 Female Vertkvila Housewife 558 99 23 95 - Vertkvicha Bliadze Vladimer 1 Male Unemployed 557 91 13 22 - 66 la Vertkvicha Kozashvili Eliko 1 Female Pensioner 557 91 13 22 - 67 la Vertkvicha Bliadze Zviad 2 Male Trader, Farmer 599 71 13 04 - 68 la 69 Gogoladze Gia 2 Male Vertkvila Sole trader 555 16 43 26 - 70 Lomidze Zaza 1 Male Khunevi Unemployed 599 26 06 31 - 71 Akhalkatsi Eka 1 Male Vertkvila Teacher 577 67 15 17 - 72 Gelashvili Rostomi 2 Male Khunevi Unemployed 557 30 99 09 - 73 Tsikarishvili Nino 1 Female Vertkvila Housewife 599 67 80 68 - Representative of Lomidze Kakha 2 Male Khunevi 557 29 49 44 - 74 the Mayor Roads Bazadze Vasil 2 Male Kutaisi 595 21 90 71 - 75 Department Roads Kvakhadze Medea 2 Female Kutaisi 595 21 99 01 - 76 Department Location: Boriti Date: 23.05.2018 Number of Participants: 32 77 Barbakadze Besik 2 Male Boriti Self-employed 599 88 49 17 Assistant of the representative of Barbakadze Zurab 2 Male Boriti 551 12 99 01 the Mayor in 78 Boriti community 79 Paksashvili Vazha 1 Male Boriti Pensioner 599 20 60 52 80 Nemsadze Maro 1 Female Sakasria Housewife 24 25 92 (local) 81 Kurtanidze Anzori 1 Male Sakasria Unemployed 551 60 65 04 82 Tabatadze Natalia 1 Female Sakasria Housewife 598 53 96 58 Tsikarishvili 1 Female Sakasria Housewife 599 65 16 16 83 Gulnazi Barbakadze 2 Male Boriti Guard 592 28 08 54 84 Tamaz Barbakadze 1 Male Sakasria Unemployed 598 70 97 53 85 Mamuka 86 Tsikarishvili Lasha 1 Male Sakasria Unemployed 555 68 48 61

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AP Female/ Place of N Full Name (1.Yes Place of work Phone Number E-mail Male living 2. NO) 87 Tsikarishvili Mamia 1 Male Sakasria Unemployed 599 40 75 21 88 Tsikarishvili Zaza 2 Male Sakasria Unemployed 89 Kurtanidze Zviad 1 Male Boriti Unemployed 577 31 89 79 90 Tsikarishvili Koba 1 Male Sakasria Unemployed 555 56 57 18 91 Zumbadze Ucha 1 Male Boriti Unemployed 557 45 65 44 92 Tsikarishvili Ivane 1 Male Sakasria Unemployed 579 13 91 01 Representative of Jobadze Khatuna 1 Female Boriti 595 36 01 42 93 the Mayor 94 Dalakishvili Grigol 2 Male Kutaisi Acting Governor 598 77 02 17 Kharagaul Mayor of Topuridze Nikoloz 2 Male 595 42 77 77 95 i Kharagauli Gogoladze Specialist of a 2 Female Boriti 557 27 02 37 96 Shorena Cultural Center Barbakadze 1 Male Boriti Handicraftsman 558 79 30 76 97 Spartak Jinchvelashvili Imereti 2 Male Kutaisi 595 94 14 41 98 Giorgi Governor’s office 99 Paksashvili Iamze 2 Female Boriti Doctor, Deputy 593 57 23 27 100 Giorgadze Nugzar 2 Male Boriti Sole trader 555 57 60 04 101 Barbakadze Zaza 1 Male Boriti Unemployed 599 20 17 30 Tsikarishvili 1 Male Sakasria Pensioner 555 24 18 99 102 Demuri Barbakadze 2 Male Sakasria Unemployed 790 12 11 53 103 Teimuraz Tsikarishvili 1 Male Sakasria Guard 593 64 12 35 104 Murman 105 Kapanadze Besik 2 Male Boriti Unemployed 593 50 60 33 Roads Bazadze Vasil 2 Male Kutaisi 595 21 90 71 106 Department Roads Kvakhadze Medea 2 Female Kutaisi 595 21 99 01 107 Department Roads Cheishvili Davit 2 Male Kutaisi 591 15 21 15 108 Department Location: Khevi Date: 17.07.2018 Number of Participants: 20 Macharashvili 1 Female Khevi Teacher 577671563 109 Khatuna - 110 GrigalaShvili Lia 1 Female Khevi Housekeeper 568654561 - Grigalashvili 1 Male Khevi Self employed 557638911 111 Nugzar - Khachidze 1 Female Khevi Teacher 595671504 112 Ekaterine - 113 Grigalashvili Irina 1 Female Khavi Housewife 551445509 - 114 Grigalashvili Elza 1 Female Khevi Housewife 592029301 - 115 Nozadze Shorena 1 Female Khavi Housewife 599531007 - Grigalashvili Lela 1 Female Khavi JCS” Rustavi 577035376 116 Azot” - Zestafonis fero Bogveradze Davit 1 Male Khavi shenadnobiqarxa 591634730 117 na - 118 Grigalashvili Imeda 1 Male Khavi Unemployr 558305181 - 119 Grigalashvili Enveri 1 Male Khavi Daraji 599296213 - 120 Grigalashvili sergo 1 Male Khavi Unemployr 599354742 - 121 Kopadze Noe 1 Male Khavi Pensioner 595457683 - Grigalashvili 1 Male khevi Unemployr 597018222 122 Nikoloz - 123 Lomidze Guladi 1 Male Khavi Unemployr 555218168 - Meris Grigalashvili 1 Male Grigalati warmomadgenlis 599253071 Besarion 124 asistenti - 125 Kakhidze nino 1 Female Grigalati Sabavshvo bagi 593263196 - Grigalashvili 1 Male Grigalati Umushevari 599740697 126 Merabi - Grigalashvili [email protected] 1 Male Grigalati Shps biznesi 599501235

127 Mamuka [email protected] betchoshvilinatia@ Betchvoshvili Natia 1 Female Grigalati Kompania magTi 599125402 128 gmail.com

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AP Female/ Place of N Full Name (1.Yes Place of work Phone Number E-mail Male living 2. NO) Location: Khunevi Date: 17.07.2018 Number of Participants: 34 Vertkvicha 577127862 Khachidze Zaira 1 Female Teacher 129 la 577671523 - Vertkvicha Lomidze Merabi 1 Female Pensioner 555774714 130 la - Cicqishvili Vertkvicha 1 Male Pensioner 558916342 131 Temuri la - 132 Lomidze gurmeni 1 Male Khunevi Pensioner 558161359 - 133 Lomidze Temuri 1 Male Khunevi Pensioner 555393206 - Kapanadze 1 Male Khunevi Unemployer 555393206 134 Zurabi - Vertkvicha Bliadze Mamuka 1 Male Unemployer 558746014 135 la - Nozadze- Vertkvicha 1 Female Unemployer 593739492 136 Lomidze Maka la - Vertkvicha Bliadze Vladimeri 1 Male Unemployer 557911322 137 la - mzia.gigauri1@gm Gigauri Mzia 1 Female Khunevi pedagogi 577671518 138 ail.com Lomidze 1 Male Khunevi Unemployer 593354824 139 malkhazi - Tkhebuchava Vertkhvich 1 Female Teacher 592810055 140 Darejani ala - 141 Lomidze NaTela 1 Female Khunevi Housewife 599051653 - Cicqishvili Vertkvicha 1 Female Housewife 559972395 142 naTela la - Gamcemlidze 1 Female Khunevi bibliotekari 577671518 143 Nato - Lomidze 1 Male Khunevi Unemployer 593276073 144 Vaxtangi - 145 Lomidze Roini 1 Male Khunevi xelosani 593557728 - Maglaferidze 1 Female Khunevi Housewife 558786501 146 manana - 147 Lomidze Vasil 1 Male Khunevi Pensioner 558577410 - Gogoladze Vertkhvich 1 Male Unemployer 551106066 148 Temuri ala - Vertkhvich Kulturis saxlis Bluashvili Temuri 1 Male 551331231 149 ala xelmdzgvaneli - 150 Lomidze Daviti 1 Male Khevi Xaragaulis meria 555744716 - Cicqishvili Vertkhvich 1 Male Pensioner 599143368 151 Murtazi ala - Gogoladze Vertkhvich 1 Male magazia 598965069 152 Tengizi ala - 153 Lomidze Zurab 1 Male Khunevi Pensioner 599401293 - Vertkhvich Saxvadze Vefxia 1 Male Unemployer 559289106 154 ala - 155 Lomidze Gocha 1 Male Khunevi Unemployer 599957982 - Gogoladze Vertkhvich 1 Male Mdzgoliu 555188796 156 Zurabi ala - 157 Lomidze Zaza 1 Male Khunevi Unemployer 599260631 - Adam.beriashvili@ Lomidze Giorgi 1 Male Khunevi Unemployer 595097900 158 gmail.com 159 Lomidze Tamazi 1 Male Khunevi metsarme 599157563 - Getsaman Chaduneli Anzori 2 Male xelosani 555289588 160 ia - Vertkhvich Bliadze Nino 1 Female Housewife 555169960 161 ala - Meris Lomidze Vertkhvich 2 Male warmomadzgenel 557294944 KaKhaber ala 162 i - Location: Boriti Date: 17.07.2018 Number of Participants: 25 Barbaqadze Spartakbarbaqadze 1 Male Boriti mSenebloba 558793076 163 Spartaki @gmail.com 164 Tsiqarishvili Zaza 1 Male Sakasria Unemployer 557684041 - Gamgeblis Barbaqadze Badri 2 Male BoriTI 557522738 165 asistenti -

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AP Female/ Place of N Full Name (1.Yes Place of work Phone Number E-mail Male living 2. NO) Barbaqadze 1 Male BoriTi Unemployer 558272923 166 Jambuli - Xaragaulis Lsikharishvili@mail Tsiqarishvili Giorgi 1 Male Sakasria 593602860 167 sapatrulo .ru Amashuk Pakhsashvili revazi 1 Male Pensioner 557307947 168 heti - ekaterineuriadmyop Uriadmyofeli Eka 1 Female Sakasria Teacher 595856703 169 [email protected] 170 Kurtanidze Zviadi 1 Male Boriti Self employer 577318979 - Tsiqarishvili Unemployer,Pens 1 Female Sakasria 555241899 171 Demuri ioner - Tsiqarishvili 1 Male Sakasria Unemployer 593641235 172 murmani - 173 Barbaqadze Giorgi 1 Male Sakasria Pensioner 577920472 - Giorgibarbaqadze Barbaqadze Giorgi 1 Male Sakasria Tv imedi 577920472 174 @gmail.com Tsiqarishvili 1 Male Sakhasria Unemployer 595289953 175 Tengizi - Barbaqadze 1 Male Sakasria Unemployer 577920472 176 Teimuraz - 177 Tsiqarishvili gurami 1 Male Sakasria Unemployer 595210474 - 178 Zurabi 1 Male Sakasria Unemployer 599377309 - Tsiqarishvili 1 Male Sakasria Unemployer 599377309 179 Mamuka - 180 Tsiqarishvili Mamia 1 Male Sakasria Unemployer 599407521 - 181 Bregadze Mayvala 1 Female Sakasria Housewife 599557648 - Teabliadze77@gm Bliadze Tea 1 Female Sakasria Teacher 577671619 182 ail.com 183 Txelidze Zurab 1 Male Sakasria moswavle 593316341 - 184 Lomidze Mzia 1 Female Sakasria Housewife 551757353 - 185 Rusadze Amiran 1 Male Sakasria Unemployer 599265228 - Gogoladze Kulturis centris 2 Female Boriti 557270237 186 Shorena specialisti - 187 Khachidze Joni 1 Male Boriti Unemployer 599852618 -

Annex 6 Synopsis of SELECTED GEORGIA LAWS AND REGULATIONS A. The Constitution of Georgia

The Constitution determines the essence of private ownership and defines presumption of inviolability however also regulates the issues related to compensation and expropriation of land and immovable property for necessary public need. The Constitution of Georgia ensures the publicity of information. Pursuant to the Article 21 of the Constitution of Georgia “the right of ownership and inheritance is declared and secured”. Nobody is eligible cancel the universal right of ownership and legacy. Throughout of the necessary public need or if the urgent necessity has emerged, the Article 21.3 of the Constitution allows the expropriation of the private ownership however, only according to the Court Decision or under the rules identified in the organic law8 on basis of the appropriate and fair reimbursement.

Other articles of the Constitution of Georgia also create legislative basis in respect with Land Acquisition and resettlement issues. These considers the State actions for expropriation of land for urgent public need, i.e. exercising the right of expropriation (power of eminent domain), also information disclosure and public consultations, protection of cultural heritage and grievance redress related to land acquisition and resettlement of population.

8 In the hierarchy of the laws the Organic Law stands between the Constitution and other laws, what highlights the significant importance of the latest.

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The Constitution ensures the right of a citizen to live in safe and healthy environment and use natural and cultural environment. The State undertakes environment protection measures to secure safe environment for people. People have the right to obtain "full, true and timely information" in regard with their work place and residential environment. The Article 42 of the Constitution makes the citizens eligible to claim, in particular protects them and encourages appealing to the court for protection of their rights and freedom.

B. Civil Code of Georgia

The Civil Code of Georgia regulates private civil relationships and evolves property rights, obligations, family law and the law on inheritance. Those regulations of the Civil Code that describes ownership right to property and considers right to build, servitude and other rights directly apply to the given project.

Ownership Rights

The ownership right entitles its beneficiary to freely possess and use property. It may be limited under the legislation or contractual basis. Ownership on the land parcel gives implicit right to land owner to implement construction activities if it is not restricted by any agreement or law. Alienation of real property is not limited under the Civil Code of Georgia. Pursuant to the article 183 of the Civil Code of Georgia “in order to purchase real property the agreement shall be made in a written format and the ownership right shall be registered on the name of the buyer at the Public Register”. The agreement - based on which one person purchases and the other sells the real property may be notarized. The agreement also may be proved by the person identified under the law (Article 69 of the Civil Code of Georgia). Presently the agreement of sales transaction of real property may be proved by the representative of the Public Register. The presumption of veracity and completeness of entries operate with respect to the Public Register, pursuant to the paragraph 1, Article 312 “an entry in the Public Register shall be deemed to be accurate until its inaccuracy is proven Right to Build.

The owner is allowed to transfer a land plot to another person in temporary usage for charge or free of charge. The transferee obtains the right to build a building/construction on or under the land plot, as well as to assign and transfer this right under inheritance or tenancy, borrowing or renting. The construction right may cover such part of a land plot that is not necessary for the actual construction but allows a better use of the facility constructed on the basis of the construction permit. Termination of the construction right requires consent from the landowner. Based on the Article 180 of this Code, if a land parcel lacks the access to public roads that are necessary for its adequate use, the other owner may claim from a neighbor to tolerate the use of his land parcel by the owner for the purpose of providing the necessary access. The mentioned article may be used for road construction, though the determination of necessary right of way is rather complicated procedure and in case of road construction evolves the obligations to prove the existence of the elements of such rights. In case of necessary right of way, the implementer of road project shall have the right to undertake road construction notwithstanding the owner’s will.

Right of Servitude

This right shall also be noted that according to the Civil Code of Georgia means the restriction imposed onto a land parcel or real property in favor of the owner (beneficiary) of another land parcel or real property. The Beneficiary is granted the right to use land parcel under restriction with some conditions and /or restricts undertaking specific activities or prohibits land owner to exercise some rights against this land parcel. However, in regard with this project, terms and conditions for transfer of any right (among them ownership, construction, necessary right of way

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or servitude) shall be defined against each land parcel in accordance to the identified rule and on the basis of the agreement entered between the land owner and the party holding appropriate right to act so. This agreement shall be registered at the Public Register.

C. Law of Georgia on the Protection of Cultural Heritage

In addition to the Constitution of Georgia affirming the State's obligation to protect cultural heritage and requiring each citizen to care for, protect and preserve cultural heritage the Law of Georgia on Protection of Cultural Heritage defines the legislative principals for protection of existing cultural heritages in Georgia.

According to the Law, State protection of cultural heritage is undertaken by the Ministry of Culture, Monuments Protection and Sport, Ministry of Justice of Georgia, local self- government bodies, as well as other State Institutions, Public and Legal Persons of Private Law; On the territories of Abkhazia and Adjara autonomous republics the corresponding bodies of Abkhazia and Adjara autonomous republics within the scope of authority defined under the legislation of Georgia. It is worth to be mentioned that the State and local self- government bodies exercise their authorities in the sphere of protection of cultural heritage in accordance to the Constitutional Agreement between the State and the Orthodox Church of Georgia. The Ministry of Culture, Monuments Protection and Sports of Georgia provides general coordination and manages the activities undertaken in this sphere. In respect with the ownership rights, the Law identifies some differentiations. Namely, the alienation of the State-owned land parcel - located within the zone of State-owned monument, considered as cultural valuables, or located within archeologically protected area - with the right to possess and use the Law considers the agreement with the Ministry of Culture, Monuments Protection and Sports with the terms and conditions of protecting and care being identified ahead. On the other hand, the Law directly restricts alienation of the monuments under private ownership that can only be alienated under the right to possess, and use and with the terms and conditions to care-and protect.

D. The Law of Georgia on Notary Actions

The stated law defines the types of notary actions and rule of their implementation. Also the law defines which institutions and authorized persons except the Notaries have right to conduct Notary actions within the territory of Georgia and beyond it. On the basis of the Article 42 of the Law the local self-governments have right to implement Notary actions related to inheritance, accuracy of the copy to the original document, proving the fact that a citizen is alive, proving the fact of a citizen’s certain location. Rural population often apply to local self- governments to conduct certain notary actions. Especially, when it is required to identify a person and a document, or the notary actions are required to replace the deceased head of the household with a new member. This rule is often utilized in registration of the land parcels when as the owner of the land parcel the other member of the household is registered in place of the deceased member. The representatives of the Consulates of Georgia (consuls) also other key persons at the Consulates are eligible to conduct notary actions on behalf of the State of Georgia beyond the territory of the country. (Article 43). Citizens being abroad may apply to the Consulate of Georgia in the county of their location.

E. The Law of Georgia on Privatization of State-owned Agricultural Land

The Law regulates the privatization of State-owned agricultural land. On the basis of this law the leased or non-leased State-owned agricultural land subject to privatization. However, the

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categories of agricultural lands listed below do not subject to privatization: - grazing lands except the grazing lands which before law enactment were leased; grazing lands attached to existing structures being under ownership of legal and/or physical persons or state ownership in accordance to the rule refined by the Law; - Cattle-driving routs; - water fund land, except fish breeding artificial ponds and the lands of common water use category utilized as agricultural lands in accordance to the Law of Georgia on Water. - Forest fund land used under agricultural designation; - Recreation lands; - Lands allocated to Historical monuments, nature and religious monuments; - Land of protected areas; - Agricultural lands assigned as reform land in Adjara Autonomous republic; - Agricultural lands being used by Budgetary Institutions and legal entities of public law in the form of usufruct. Privatization of the two categories (forest fund and recreation land) of agricultural land is still allowed, although only for development of resort-recreation infrastructure in accordance to the decision of the Government of Georgia.

F. The Law of Georgia on Ownership to Agricultural Land

The current law is completely different from the initial version adopted in 1996. The changes made in this law in different times (among them the amendments on the basis of the Law # 389 as of July 14, 2000) have significantly changed its initial format and simplified to maximum extend the procedures regulated by this Law.

Article 3.1. Defines that "a land parcel with or without household structure that is registered at the public register and used for cattle-breeding and plant cultivation produces is considered as an agricultural land parcel" with existing household and additional structures or without them. Also the share of a member of household community within the shared hay fields, grazing lands or forestry areas and the part of the agricultural land that may be the object "of separate ownership right" (Article 3.2).

The same Law determines that the ownership right to agricultural land is granted to the State, citizen of Georgia, household (komli) and legal person registered in accordance to the legislation of Georgia, which carries out his activities in agricultural sphere. Besides, the Law declares the State, private and community ownership right to grazing lands in the high mountain regions (Article 43). Also, according to the limitations determined under this law, a foreigner and legal person registered abroad held ownership right only to the bequeathed agricultural land parcels and foreigners also in case when as citizens of Georgia they reasonably possessed agricultural land parcels. Besides, it is worth to be considered that foreigners and legal persons registered abroad are obliged to alienate privately owned agricultural land parcels to the citizen of Georgia, Komli and/or legal person registered in Georgia according to the legislation of Georgia within six months period since they obtained private ownership to the given land parcel. Besides, in case this legal requirement is neglected, private ownership to the agricultural land parcels privately owned by foreigners and legal persons registered abroad shall be taken away under the Court Decision and in return of due compensation. (The standards identified by the Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need shall also be exercised in given case).

According to Articles 6 and 8, acquisition of agricultural land is allowed on the basis of ordinary

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rules and general restrictions. Ordinary rule considers land alienation without any permits and other limitations, and general restrictions consider land alienation only on the basis of the consent of co-owner of shared property. In case of agricultural land acquisition the lessee has the priority right to purchase the land. (Article10). Alienation is restricted if the area after this action will be less than 5 hectares (Article 9).

The Law defines Tax sanctions if land has not been cultivated for 2 years and for non-payment of land tax and non-transmission to the other person in lease condition. In such cases the law does not directly state any type of penalty and only refers that in described cases shall be exercised the sanctions under the Tax legislation (Article 20).

G. Law of Georgia on Registration of Rights to Immovable Property

The Law defines the rules, terms and conditions for registration of rights to immovable property (things), rights and obligations of the subjects participating in registration procedures. The goal of this Law is to declare and verify ownership rights for immovable property (things) within the territory of Georgia (so as some other rights out of subjective, guarantee and liability relationships) through registration of these rights into the Public Register. The Law describes the rules set for organization and functioning of Public Register. Pursuant to the Law ownership right to real property, mortgage, right to build, usufruct, servitude, lease, sub-lease, rent, sub-rent, lending subject to registration (Article 13.2).

This law ensures successful process of expropriation and obtaining of necessary right of way since in case of purchasing immovable property from an owner, it is required that land and real property is registered into the public register to provide legal validity to the sales agreement. Pursuant to the active legislation of Georgia, acquisition (purchase) of private property is legally valid and ownership rights are declared only after its registration into the Public Registry.

H. The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need

The Law of Georgia of “Rules for Expropriation of Ownership for Necessary Public Need” (July, 23, 1999) specified the expropriation procedures, liabilities and implements the rules. The Rules for Expropriation of the ownership which has a possible usage in Georgia in some occasions including Road construction will be issued Regional (civil) Court verdict on the basis of the Presidential Decree.

According to the Constitution of Georgia the expropriation of the property in the process of construction of the magisterial motor road is permitted for necessary public need. The process of Expropriation is to be undertaken only by the Court Decision of the President of Georgia and corresponding instances. Expropriation is undertaking by means of compensation payment which is to be corresponding to market value and honest. The State of Georgia has a constitutional right to carry out acquisition property through Expropriation instead of payment of legislative compensation (Clause 21).

I. Procedural Civil Code of Georgia

The general courts of Georgia consider the cases according to the rules identified under the Procedural Civil Code of Georgia. The requirements of the procedural law are exercised during the lawsuit, during implementation of separate procedural actions or execution of the court decision. The Procedural Civil Code of Georgia also regulates those cases when determination of the

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defendant is impossible. This may be important for the Project in the cases when the landowner is not found and correspondingly ownership to his/her land parcel cannot be obtained in legally valid manner, i.e. it is impossible to enter corresponding agreement with the landowner or him/her cannot sign other type of document. The above-listed laws and regulations give the possibility of applying the following three mechanisms for legal application of the property rights: • Obtaining the road 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; • Expropriation which gives the possibility of obtaining permanent right to land and/or necessary road on the basis of Eminent Domain Law or a court decision through the payment of due compensation; • Expropriation of private properties for urgent public necessity, which gives the possibility of obtaining permanent rights on land and/or necessary road for the purpose of national security or accident prevention. Expropriation is to be made on the basis of the Presidential Decree on Expropriation through the payment of due compensation to affected people. If applied adequately the above listed mechanisms can ensure the appropriate consideration of lawful interests of all parties and the due observation of the existing legislations.

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Annex 7 Public Consultation Booklet

E60 HIGHWAY, SECTION F2 (KHEVI-UBISA)

Public Consultation Booklet

Introduction This Leaflet is an instrument to disclose to the APs the compensation policy/procedures developed in the Land Acquisition and resettlement Plan (LARP) for the project. Land Acquisition and Resettlement Plan (LARP) has been prepared by the Road Department (RD) of the Ministry of Regional Development and Infrastructure (MRDI) of the Georgia for the 12. 5 km-long Khevi-Ubisa Road (the Project) which is expected to be financed under a proposed loan of the Asian Development Bank (ADB). MRDI is the Project’s executing agency (EA) and the RD is the implementing Agency (IA). The LARP prepared by RDMRDI is a final implementation-ready document based on a final road alignment and final impact figures/implementation arrangements and fully reflects the provisions of relevant Georgian Laws and the provisions of the ADB Safeguards Policies Update of 2009 (SPS 2009). The Project road is entirely located in the Imereti region and starts at the end of Section F1 of the corridor of Highway 60 at km 8+750. The total length of the Project is 12. 197 km. The Road runs across one municipality (Kharagauli) through the community of Khevi and four villages: Tsitskiuri, Khunevi, Vertkvichala and Boriti. The length of the project is 12.2 Km, which pass through pass through mountainous area and very few flat area. The final design include construction of road with 35 bridges ( 8.300 m), 3 interchanges ( one shared with the F3 section and one with the F1); 13 tunnels ( 9.133mt) out of which 2 that have to be rehabilitated, 4 new single way and 7 double way other than necessary culverts for ensuring services and all other connected roads. The average width of this roads ROW is 120 m. The total foot print of the road is 923.736 sq.m (tunnel excluded). The span length of bridges varies from 33 meters up to 1.360 meters.

Project Alignment

Resettlement Policy Commitments for the Project

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The resettlement policy for the project has been designed to (a) cover all APs irrespective of their title to land, (b) provide replacement cost compensation for lost assets, and (c) restore or enhance the livelihoods of all categories of APs. The households/persons affected by the project interventions will receive cash compensation for land and other assets at full replacement cost as per market price at the time of dispossession. Additional measures will be taken to ensure minimum disruption during the project construction period. Physically and economically affected households will receive due compensation, relocation assistance, and allowances in accordance with the following guidelines and policy which are also part of the Land Acquisition and Resettlement Framework of the Program and the Georgian laws on land acquisition and ADB’s SPS 2009:

➢ Land acquisition, and other involuntary resettlement impacts will be avoided or minimized exploring all viable alternative project designs. ➢ Where unavoidable, a time-bound LARP will be prepared and APs will be assisted in improving or at least regaining their pre-program standard of living. ➢ Land will be acquired through a contract agreement to the extent possible. Expropriation process will be sought only as the last resort when all possibilities of negotiation fail. ➢ Vulnerable and severely APs will be provided special assistance. ➢ Non-titled APs (e.g., informal dwellers or squatters, APs without registration details) will receive a livelihood allowance in lieu of land compensation and will be fully compensated for losses other than land. ➢ Legalizable APs (APs possessing ownership documents but with title formalization pending, as well as APs who are not registered but have residential land or agricultural plots adjacent to the residential land) will be legalized and fully compensated for land losses. ➢ Provision of income restoration and rehabilitation compensation will be made. ➢ The LARP will be disclosed to the APs in the local language which is Georgian. ➢ Payment of compensation, resettlement assistance and rehabilitation measures the rates set in this LARP will be fully provided prior to the contractor taking physical acquisition of the land and prior to the commencement of any construction activities on a particular package. ➢ Compensation will be provided at least at the rates detailed in this LARP although some modification in excess will be possible during the discussions preceding the signing of the contract ➢ Complaints will be reviewed using the existing grievance redress mechanisms. ➢ For projects that entail large-scale involuntary resettlement, resettlement action plans must be prepared and made available to the public. It is desirable that the resettlement action plan include elements laid out in the ADB’s SPS 2009. ➢ Appropriate participation of affected people must be promoted in planning, implementation, and monitoring of resettlement action plans. ➢ Preference should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. ➢ Provide support for the transition period (between displacement and livelihood restoration.

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➢ In preparing a resettlement action plan, consultations must be held with the affected people and their communities based on sufficient information made available to them in advance. When consultations are held, explanations must be given in a form, manner, and language that are understandable to the affected people.

Compensation Eligibility and Entitlements

APs entitled for compensation or at least rehabilitation provisions under the Project are:

Tasks under the Project will be implemented according to the following compensation eligibility and entitlements framework in line with both Georgia laws and regulation and ADB Policy (SPS 2009). A summary entitlements matrix is included in Table below.

Entitlement and compensation matrix Type of Loss Application Definition of AH/APs Compensation Entitlements Land Agricultural AP losing Registered Cash compensation at full replacement Land: productive Owner/Legal: cost based on current market value. If Permanent land land Owner with full the residual plot becomes unviable for loss, access or regardless of registration cultivation, the project will acquire it if the damage. impact owner so desire. severity Legalizable Owner: The ownership rights of these APs will (APs with title be recognized, the land registered in formalization pending NAPR and the APs provided with cash and APs who are not compensation at full replacement cost. registered but legitimately use the land and have residential land or agricultural plots adjacent to the residential land) Non-legal/Informal Non-legalizable APs losing agricultural Settler: land plot will be compensated with one APs that are not time allowances in cash equal to a legitimate land users or minimum monthly subsistence squatters allowance for a 5 member family for a minimum of 3 month to a maximum period of 12 months. Agricultural Tenant Full Compensation of income of lost crops x the remaining years (up to 4 years) of lease. In case of tenancy no crop compensation will be given to the land owner.

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Type of Loss Application Definition of AH/APs Compensation Entitlements Non-Agricultural AP losing Registered Cash compensation at full replacement Land their Owner/Legal: cost. commerci (Owner with full al/ registration) residential Legalizable Owner: The ownership rights of these APs will land (The owners legalizable be recognized, the land registered in according to active NAPR and the APs provided with cash legislation) compensation at full replacement cost.

Non-legal/Informal Non-legalizable APs losing land plot, Settler which is the only land plot used for (Without registration/valid residence or providing main source of documents using land income for AH, will be compensated with permanently.) one time allowances in cash equal to a minimum monthly subsistence allowance for a 5 members family for a minimum of 3 month to a maximum period of 12 months. Temporary Impact N/A N/A Temporary loos of land plot will be on land plot compensated as above indicated. Buildings and Structures Residential and All AHs regardless of Cash compensation for non-residential their legal ownership/ building/structures losses at full structures/assets registration status replacement costs free of depreciation (including legalizable and transaction costs and Informal Settlers) Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Pu Community/Governmen Reconstruction of the lost property blic Assets t resource/asset in consultation with resources community and restoration of their functions Loss of Income and Livelihood Crops Standing All APs regardless of Crop compensation in cash at market crops affected legal status (including rate by default at to gross crop value of or affected legalizable and Informal expected harvest. agricultural Settlers) land, used permanently for crop cultivation. Trees Trees affected All APs regardless of Cash compensation at market rate on legal status (including the basis of type, age and productive legalizable and Informal value of the trees. (based on the Settlers) expected yield of the tree, multiplied by the number of years required to grow a tree of equivalent productivity). Business/Emplo Business/empl All APs regardless of Owner: yment oyment loss legal status (including (i) (permanent impact) cash indemnity of legalizable and Informal 1 year net income or in the absence of Settlers) income proof, One time minimum subsistence covering one year income corresponding to the actual moths of activity in the year. In cases where Aps have paid tax based on flat tax rate will receive compensation equal to 12 months minimum subsistence allowance.

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Type of Loss Application Definition of AH/APs Compensation Entitlements (ii) (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 allowance for months of business stoppage; Permanent worker/employees: indemnity for lost wages equal to actual wage for 3 month or in case of absence of tax declaration, one time minimum subsistence allowance in cash for 3 months. Allowances Severe Impacts >10% income All severely affected Agricultural income: 1 additional crop loss AHs including informal compensation for 1 year’s yield of affected settlers land or, for other incomes: an allowance covering 3 months of minimum subsistence. Relocation/Shifti Transport/tran All AHs to be relocated An allowance covering transport and ng sition costs livelihood expenses for the transitional period. (200 GEL as vehicle hire charge + minimum subsistence allowance x 3 months. Vulnerable AHs below poverty line, One time minimum subsistence People headed by Women, allowance in cash for 3 months and Allowances headed by disables and employment priority in project-related refugees households jobs where feasible Unforeseen Impacts during All APs Due compensation to be assessed and impacts during construction to paid when the impacts are identified construction, properties or based on the above provisions and on including assets out of the requirements of SPS 2009. temporary the corridor of impacts. impact or RoW

Compensation Rates The table below specifies the compensation rates for affected items. Details are provided in the LARP. Compensation rates

Compensation rate Unit (GEL) Land Sq m Agricultural 6 Residential 15 Commercial/Industrial 25 Trees Tree 2-1510 Crop sq m 0.2-3.5 Buildings sq m Residential Evaluated individually Supplementary Facility Evaluated individually Fence/Wall Evaluated individually

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Grievance Redress Mechanism A grievance mechanism will be available to allow an AP appealing any decision on which they disagree, 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 whether verbally or in writing during consultation, survey, and time of compensation. 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.

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, 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.

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 Implementing Agency - IA). The GRCN is involved at the Stage 2 of grievance resolution process. The Order shall 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.

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 each affected Municipality (village/community authority). The GRCE shall include representatives of Municipal LAR Teams and local communities. The RD representative in the Municipal LAR Team shall coordinate the GRCE formation. He/she will then be responsible for the coordination of GRC activities and organizing meetings (Convener)..

If considered necessary, GRCEs will be established at the community level with an office order from the RD 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) Gamgebeli – concerned Gamgeoba (village level) : 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

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,

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Supervising Company (Engineer), as well as APs (through informal meetings) are informed about the contact person and his contact details are available in offices of all mentioned stakeholders.

The Contact Person collects and records the grievances, informs all members of the Committee and the management of RD 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 the grievance is resolved at the stage 1, the Contact Person records the fact of closing the grievance in his 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.).

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.

Grievance Resolution Process Steps Process Step 1 At the negotiation level, if any grievances arise, solutions acceptable to both local’s LAR Team and the APs will be sought. If any aggrieved AP is not satisfied with the solutions, the next option will be to lodge grievances to the GRC Step 2 • If the grievance is not solved at the previous level, the rayon level LAR representative will assist the aggrieved APs to formally lodge the grievances with the respective GRCE at Rayon level. The aggrieved APs will lodge the complaint if there is failure of negotiation at village level and 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 village office and produce evidence in support of his/her claim. The member secretary will note down the statements of the complainant and document all proof. • The decisions will be issued by the Convenor and signed by other members of the GRCE. The case record will be communicated to the complainant AP by the LAR Team at the village level. The grievance redress at this stage shall be completed within 4 weeks Step 3 If any aggrieved AP is unsatisfied with the GRCE decision at Rayon level, the next option will be to lodge grievances to the Grievance Redress Commission (GRCN) at the Resettlement Division at RDMRDI at the national level within 2 weeks after receiving the decision from GRCE. The complainants, must produce documents supporting his/her claim. The GRCN will review the GRCE hearing records and convey its decisions to the aggrieved APs within 4 weeks after receiving the complaint. Step 4 If a grievance redress system fail to satisfy the aggrieved APs, they can pursue further action by submitting their case to the appropriate court of law (Local Court).In case, if the ruling by the court is below the market price assessed through the open market survey earlier, RDMRDI will provide additional funds to ensure that compensation provided reflects full replacement cost.

Contact Information

Ministry of Regional Development and Infrastructure of Georgia - Roads Department Deputy Head of the Resettlement Division (RDMRDI)- Nino Mtsuravishvili

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Tel: +995 595 026 688

Complaints and Grievance Submission Form # Name, Last name

Contact Information ฀ Mail: Please indicate the postal address: ______Please indicate the ______preferable means of ______communication (Mail, ______Telephone, E-mail) ฀ Telephone: ______

฀ E-mail:______

The language ฀ Georgian desirable for the ฀ English communication ฀ Russian

Describe the grievance/claim: What is the complaint about? What is the claim?

Date of Negotiation: Resolution of Negotiation:

What is the basis of your claim?

Signature: ______Date: ______

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Annex 8 Valuation Methodology

I. Land Valuation Assessment Methodology

The relevant land plots are located in Imereti. Namely, kharagauli region, and between villages Grigalati and Boriti. It must be noted, that the National Agency of Public Registry has no or very limited information regarding sale and purchase of lands within Kharagauli region, and specifically lands adjacent to the highway. This is explained by lack of free land plot due to particularity of relief of the region (steep), and most importantly, the lands have been shared among traditional population (families) of the region; such plots are being inherited by the next generations.

To determine compensation to be given to the land owners, market and income methods were addressed. Since there are almost no residential and agricultural land transactions, and the registered transactions do not reflect the real agreements, which is common for peripheries where due to low tax culture and attempt to reduce the taxes agreements register lower prices in comparison with real transactions, - income methods have been applied.

Functionality of the land plots to be assessed are non-agricultural/commercial, residential and agricultural land plots. Other than that, the plots do not have essential differences, therefore we considered segmentation of lands into three categories appropriate, namely:

Type I – Land plots used/usable for commercial purposes; Type II – Land plots used for residential purposes; Type III – Land plots used for agricultural purposes.

Market method – comparison of the land to be assessed with the similar object market value of which is known already (it has been sold or a similar action has taken place). Following actions were conducted while using this method: • Obtaining, analysis and classification of market data allowing identification of prices for the similar property; • Determination of comparison elements, allowing comparison of the property with similar objects (analogues); • Determination of nature and quality of differences of selected comparison elements; • Correction of prices set for comparison elements; • Correction of all prices of analogues in regards to property to be assessed in accordance with set comparison elements; • Determination of market price of the land plot after adjustment of corrected prices of analogues.

Corrections are made in line with comparison element, in the following sequence: • Transfer of property rights to realty; • Financial conditions; • Selling conditions; • Expenses related to selling; • Dynamics of market sales (date of sales); • Location; • Physical characteristics;

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• Economical characteristics; • Use; • Existance of real estate.

Income method – while applying this method, the appraisers determine current value from owning a real estate using future revenues.

This method, as much as others, require broad market research. Specific data being evaluated by the appraiser are: expected general income form the property, possible general losses is the property is not used, expected annual operational expenses.

After costs and incomes have been established, the flows demonstrate net volume of operational income, which transforms into current value in the process of following capitalization. Capitalization norms and factors used for capitalization of income, derive from research of operation and income rates of analogous properties.

Methods - Two methods can be utilized in line with the income capitalization, namely: - Direct Capitalization; and

- Discounted cash flow analysis.

Discounted cash flow analysis (method)

Method Analysis of discounted cash flow is a modeling technique that is based on clear assumptions, which, in turn, are based on perspective incomes and costs of business or property, and are used as an acceptable instrument within the approaches in terms of incomes.

1 n Calculation MV= NOI1 / (1+i) + FV / (1+i) formula sadac: MV – market value; 1 NOI 1 – net operation income for each ( ) period; FV – future value after selling (reversion) the property i – discount rate; n – ownership period; 1 – indication of each period (number).

Calculation of Market Value using Market Method for Type I Land Plot

As mentioned above, market (or sale) comparison method has been applied in order to identify values for land plot types I and II, which includes comparison of objects to be assessed with othe properties market value of which is already known (land sale and acquisition have taken place, i.e. it happened recently or is announced for sale).

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In order to assess land plots, market segment has to be analyzed, including contracts and applications prepared for submission on similar land plots that are located in within the region.

Additionally, information regarding sales and already implemented transactions within the territory to be assessed – is scarce. In order to determine market value, data on most similar analogues have been used in the process of assessment. Source of information is provided within table №1.

Table A 1

Price of Address, location Area Purpose transaction/prop Source of information of real estate osal unit, m2/GEL

Land plot of Non- Dziruli, near the 1.0 m2– 26,22 GEL www.myhome.ge 2577.00 m2 agricultural highway, next to ID: 8114830 Gulf gas station 24.07.2018 Cadastral code:: 32.16.35.009 Land plot of Non- Dziruli, near the 1.0 m2. – 73.0 www.myhome.ge 980.00 m2 agricultural highway, next to GEL ID: 8114833 Gulf gas station 24.07.2018 Cadastral code: 32.16.35.008 Public Registry Agency Non- Kharagauli, Ubisa Purchase agreement of Land plot of agricultural, 1.0 m2 53.40 village, near the – 2017, July 7 2400.00 m2 building with GEL central highway area 125 m2 Cadastral code: 36.03.42.002 Public Registry Agency Agricultural, Kharagauli, Purchase agreement of Land plot of usable for Vertkvichala 1.0 m2 11.80 – 2017, February 14 595.00 m2 commercial village, near the GEL purposes central highway Cadastral code: 36.08.37.202

Table A 2 Determination of value for property type I within zone of influence (in GEL, unit 1.00 m2).

N Comparison elements Analogue N1 Analogue N2 Analogue N3 Analogue N4

Area m2 2577 980 2400 595 1 Price of 1 m2 (GEL) 26,22 73,00 35,40 11,80

Transfer of property Full Full Full Full rights 2 Correction 0% 0% 0% 0% Corrected price 26,22 73 35,4 11,8

3 Financing conditions Typical Typical Typical Typical

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N Comparison elements Analogue N1 Analogue N2 Analogue N3 Analogue N4

Correction 0% 0% 0% 0% Corrected price 26,22 73 35,4 11,8 Selling conditions Proposal Proposal Historical fact Historical fact 4 Correction -5% -5% 0% 0% Corrected price 24,909 69,35 35,40 11,80

Expenses to be paid after No No No No acquisition 5 Correction 0% 0% 0% 0% Corrected price 24,909 69,35 35,40 11,80

Market conditions (time) 2017 November 2018 May 2017 July 2017 February

6 Correction 0% 0% 0% 10% Corrected price 24,909 69,35 35,40 12,98

Location Analogue Analogue Analogue Analogue 6,1 Correction 0% 0% 0% 0% Corrected price 24,91 69,35 35,40 12,98

Access road Analogue Analogue Analogue Analogue

6,2 Correction 0% 0% 0% 0% Corrected price 24,91 69,35 35,40 12,98 7 Physical characteristics Area Medium Medium Medium Small 7,1 Correction 0% 0% 0% -5% Corrected price 24,91 69,35 35,40 12,33

Communications Analogue Analogue Analogue Analogue 7,3 Correction 0% 0% 0% 0% Corrected price 24,91 69,35 35,40 12,33 Restrictions (servitude, None None None None etc.) 7,4 Correction 0% 0% 0% 0% Corrected price 24,91 69,35 35,40 12,33

Economical Analogue Analogue Analogue Analogue Characteristics 8 Correction 0% 0% 0% 0% Corrected price 24,91 69,35 35,40 12,33

Purpose Analogue Analogue Analogue Analogue 9 0% 0% 0% 0% 24,91 69,35 35,40 12,33 Two buildings Other components of Analogue Permanent structure with total area of Analogue sale 125m2 10 Correction 0% -45% -30% 0% Corrected price 24,91 38,14 24,78 12,33

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Determination of Land Compensation Costs

As a result of reviewing analogs and studying corrected prices, the value of the evaluated land plots has been determined by calculating the average weighted rate. While agreeing the results of corrected prices, the more significant share will be given to the analogues that are the most comparable with the evaluated object and which required the less corrections.

The market value of the evaluated land plots (using the average weighted rate) was calculated with the following formula:

n n Vwa = ∑ Pi * ( Ri / ∑ R) i=1 i =1

Vwa - average weighted rate;

Pi – Corrected price of each analog. ∑ R – Sum of rated weight of corrected prices of comparable analogs Ri – Rated weight of corrected price of each comparable object.

Therefore, results of calculation of the market value of the evaluated object (land plots) obtained using the average weighted rate is given in Table №3.

Table A 3

Name Pi Ri Vi Corrected price of analogue №1 24,91 1,5 6,79 Corrected price of analogue №2 38,14 1,5 10,40 Corrected price of analogue №3 24,78 1 4,51 Corrected price of analogue №4 12,33 1,5 3,36 ∑ R 5,5 Vwa 25,06

Corrected market value of evaluated 1 sq.m 25.0 land plot in GEL (rounded)

Thus, the value of 1 sq.m of land plot type I used / usable for commercial purposes is 25.0 (twenty five) GEL.

Based on the value of the land plot type I, the value of the land plot type II was calculated. Namely, through multiplying the market value (25.0 GEL) to the distinctive coefficient between the prices of such land plots in the same and neighboring areas, on the market of lands buy- sell market.

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Table A 4

Calculation of the compensation costs of land plots according to their types and purposes

Type Purpose Basic cost Correction Compensation of 1 sq.m coefficient cost of 1 sq.m land plot, land plot, GEL GEL

Land plots used/usable for I 1 25 commercial purposes

Used for homestead purposes II 0.6 15 25.0

Calculation of the Market Value of the Land Plot with Revenue Method

Revenue approach is considered to be the most acceptable option for land plots of type III (lands used for agricultural purposes). Most part of the dislocation to be evaluated is covered by mountain-meadow and forest soils. The soil extends from 1100 to 1500 m above sea level. The most widely distributed and highly cultivated agricultural crops in the respective dislocation are raspberry / blackberry (berry crops), maize and beans, the possible annual revenue of which is taken as unchanged forecast revenue. Out of which, raspberry - 0.33 ha, maize - 0.33 ha and beans - 0.33 ha.

"Discounted cash flows analysis is a method of financial modeling based on unequivocal assumptions about the income and expenditure of the property or the financial entity."

The basic parameters of financial modeling we have discussed are:

Forecast Period:

9 years;

Reversion Date:

10th year;

Amount of income by years:

Unchanged.

Amount of annual revenue:

The possible yield from 1 ha area and wholesale prices of maize and beans within the dislocation under study was determiend on the basis of the results of the analysis of specialists, the survey of the owners, the analysis of various sources and the results of inspection, which is based on the data on cultivation and market values. In particular, the expected revenue as a result of harvest of maize from 0.33 hectares is 1350 GEL, revenue as

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a result of harvest of raspberry from the same area - 11000 GEL, and revenue as a result of harvest of beans from the same area - 1330 GEL.

Losses due to absence of harvest

For the purpose of this method it is assumed, that there are no problems related to absence of harvest.

Expenditure:

The appraiser only substracted land tax, which for 1 ha of arable land within this region is 61.0 GEL.

Costs:

For soil preparation, seed material, and other costs 1200 GEL per 1 ha was determined.

Discount rate (ratio):

The discounted ratio was calculated by the appraiser using method of cumulative arrangement.

According to cumulative technics, capitalization rate assessment is carried out by adding risk- free rates and certain risk-factors, like macroeconomic risks (country risk), real estate risks, and property-specific risks.

Using this method, the rate is determined as follows:

Risk-free rate /inclusive of country-specific risk + Real estate risk premium + Liquidity risk premium + Property-specific risk premium.

Capitalization ratio calculation is provided below: Table A 5 Calculation of capitalization ratio

Risk type Rate Risk-free rate /inclusive of country-specific risk 9% Real estate risk premium 1% Liquidity risk premium 5% Property-specific risk premium 5% Capitalisation rate: 20%

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Table A 6 Value assessment

Period 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Potential full 13680 13680 13680 13680 13680 13680 13680 13680 13680 13680 income

Vacancies and non-payment of rent

Losses - 0 0 0 0 0 0 0 0 0 0

Ratio of absence - 0 0 0 0 0 0 0 0 0 0 of harvest (%)

Effective total = 13680 13680 13680 13680 13680 13680 13680 13680 13680 13680 income

Expenditure

Operation costs 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 and reserves

Operation costs - (%)

Reserves (%) - 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

Permanent - costs

Property, and - 0 0 0 0 0 0 0 0 0 0 land taxes

Total taxes = 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500

Net operation = 8180,0 8180,0 8180,0 8180,0 8180,0 8180,0 8180,0 8180,0 8180,0 8180,0 income

Discount ratio 20% 20% 20% 20% 20% 20% 20% 20% 20% (rate)

Net operation 6816,7 6816,7 6816,7 6816,7 6816,7 5680,6 4733,8 3944,8 3287,4 discounted income

Reversion cost 54533,33

Reversion discounted cost 8807,44

Market value 60537,312

Market value 61000 (rounded up)

Therefore, market value for 1 ha of land plots used for agricultural purposes, type III within zone of influence was determined to be 61 000.0 GEL. Consequently, rounded up value of 1 m2 is 6.0 (six) GEL.

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Therefore, value of 1 m2 was determined as follows:

Table A 7

Compensation Type Land purpose value of 1 m2

I Land plots used/usable for commercial purposes 25

II Land plots used for resindential purposes 15

III Land plots used for agricultural purposes 6.0

II. Buildings Valuation.

Buildings have been valued at replacement cost based on the direct and indirect costs at market value necessary for the construction of a comparable building i.e. what construction of a building of similar parameters would cost today. No deductions were made for amortization. The parameters for calculating the direct and indirect costs are the following as applicable to individual cases.

a. Direct costs include: (i) Salaries of workers; (ii) Purchase of construction materials; (iii) Preparatory expenses; (iv) Rent or purchase of equipment; (v) Profit and overhead expenses of the constructor; (vi) Expenses incurred to ensure safety measures during the construction/repair; (vii) The cost of arranging temporary structures; (viii) Temporary communications (electricity, water, gas supply etc.); (ix) Warehouse costs; (x) Transportation costs; (xi) Other costs

b Indirect costs include: (i) Cost of professional services: 1. Compensation of the architect/designer; 2. Compensation for engineering services; 3. Legal expenses; 4. Compensation for valuator’s services; 5. Other expenses (ii) Expenses incurred to receive permits; (iii) Insurance costs; (iv) Financing %;

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(v) Guarantee necessary to secure the contract implementation by the contractor building the new building; (vi) Other expenses III. Compensations for Annual Crops.

This item has been valued at market ha, area of affected crops and current gross market values of the crop. The details are given in a table A 5.

Compensation for affected annual crops have been calculated by lost income method, which is derived based on the data on productivity of each specie and current market price of 1kg product. Data on productivity of different annual crops within the project regyon is statistical data published by National Statistics Office of Georgia and from the sourcebooks prepared by agrotechnical scientists and accepted by the Ministry of Agriculture of Georgia.

Table A 8 Example of compensation rates for annual crops

Crop Market price of Productivity per Compensation Crops Unit unit of crops, 1 ha Price (GEL) per 1 GEL ha Potato tone 26 600 15600 Cabbage tone 22 300 6600 Beans kg 800 5 4000 Garlic kg 1600 5 8000 Other vegetables - - - 5000

IV. Calculation methods of Compensation Costs for Perennials

Determination method of the loss revenue has been used for identification of compensation value of the perennial plants during the period that is essential for growing the analogue seedling to the corresponding age of the existing plants.

Cost of perennial plants is determined in accordance with their age. Price of fruit trees will be calculated by multiplying of the annual harvest market price to those years that is essential for growing the new perennial seedling to the same age of existing trees.

The cost of compensation depends on the age, the expected yield, the cost of the harvest, number of compensation years, the cost of planting and the estimated cost to get the harvest, which varies from 15 to 30 percent of the fully acceptable funds. Data is taken from scientific papers, Internet and sector specialists and reacts to different types of plant reactions in the climatic conditions of the region.

Example of compensation rates of perennials is shown in table A 6 below.

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Table A 9 Compensation rates of trees

Gel

(Gel)

Plants

year,kg

Age group

Numberof

seedling with seedling

adultperennial

for per yearfor per (Gel)

Fullproductivity per

compensationyears

Costof harvest unit,

consideringthe cost

Costof seedling, G

Harvestcompensation Totalcompensation for Seedling (<5) 5 2 5 4 8,0 35 Cherry (sweet 5-10 5 2 5 10 20,0 75 cherry) 11-20 5 2 5 16 32,0 117 21+ 5 2 5 10 20,0 75 Seedling (<5) 6 1,5 5 4 6,0 27 5-10 6 1,5 5 15 22,5 85 Peach 11-20 6 1,5 5 40 60,0 216 21+ 6 1,5 5 25 37,5 137 Seedling (<5) 10 5 5 4 20,0 80 5-10 10 5 10 15 75,0 535 Walnut 11-20 10 5 10 30 150 1235 21+ 10 5 10 40 200 1510

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