Social Monitoring Report

Draft Internal Monitoring Report December 2012

AZE: Road Network Development Program–Tranche 3

Prepared by AzerRoadServices for the Ministry of Transport, Republic of Azerbaijan and the Asian Development Bank.

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

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

REPUBLIC OF AZERBAIJAN

INTERNAL MONITORING REPORT

Road Network Development Program Masalli-Astara Motorway

Girdani-Kolatan (Section B) Kolatan-Astara (Section C)

December 2012 Table of Contents

I. BACKGROUND ...... 3 II. ACCOMPLISHMENTS ...... 3 A. Personnel Mobilization and Budget Allocation ...... 3 1. Personnel Mobilization ...... 3 2. Budget Allocation ...... 4 B. Delivery of Entitlements ...... 4 1. Girdani-Kolatan Section, Section B ...... 4 2. Kolatan- Astara Section, Section C ...... 6 C. Consultation and Grievance ...... 6 1. Public Consultations ...... 6 2. Grievance ...... 7 III. Random Visit to Villages ...... 7

List of Tables

Table 1: Unpaid Affected Persons, Section B ...... 5 Table 2: Unpaid Affected Persons, Section C ...... 6

I. BACKGROUND

1. This Internal Monitoring Report contains information on the extent of LAD and PIU’s activities related to the implementation of the Resettlement Plans for Sections B and C.

2. It contains information on the status on budget allocation and mobilization of resettlement personnel, progress of land acquisition and provision of other entitlements due the affected persons (APs) as of December 2012.

II. ACCOMPLISHMENTS

A. Personnel Mobilization and Budget Allocation

1. Personnel Mobilization

3. The Land Acquisition and Resettlement Plan (LARP) for the Masali-Astara road was prepared in 2007 as part of the Project Preparatory Technical Assistance (PPTA). The LARP was updated in 2009 for actual implementation. The updated LARP for Sections B and C was submitted in July 2009 and subsequently endorsed by the Government for implementation in October 2009.

4. Since the Government’s endorsement of LARP for Sections B and C, the Land Acquisition Department (LAD) under the Project Implementing Unit (PIU) has mobilized its Personnel and conducted a series of activities related to land acquisition, payment of compensation to and resettlement of Affected Persons (APs).

5 The LAD deputized two engineers to implement the LAR at Rayon levels of Lankaran and Astara, where the road Sections B and C are to be constructed. Mr. I. Ahmadov was deputized for Astara Rayon and Mr.Z. Mamadov toLankaran Rayon.

6. LAD personnel and other related Consultants participated in a World Bank sponsored training aimed at raising their knowledge on the Bank’s Social Safeguard Policy and related Azerbaijan laws sometime in October 2011 just in time for their mobilization.

7. The ARS staff were assisted by personnel from various line departments. Specifically, during the validation of Land Acquisition and Resettlement Plan, Heads of affected Municipalities, Representatives from Executive Power of affected villages were involved along with LAD representatives.

8. In the valuation of properties, a special commission was created composed of representatives from Ministry of Finance, the LAD, Municipalities and Executive Power at Rayon level.

9. The State Property Committee was also involved during the verification of land ownership to determine encumbered properties.

10. As of this date, only twenty two (22) APs in Section B have not yet received their compensation and 45 unpaid APs for Section C. The aggregate area for acquisition in Section B is 0.721 has while in Section C, 2.1816 has. It is expected that all cases pending in court will be resolved soon, in time for the start of civil works by March 2013.

2. Budget Allocation

11. The release of Resettlement fund was done periodically. After LAD personnel completed documentation of AP’s property, a request for funding was immediately sent to the Ministry of Finance. The Ministry then release the funds to AzerRoadService Open Joint-Stock Company (ARS). From ARS, the fund is immediately released through APs bank account.

12. The APs were compensated based on the total receivables (Compensation for land + Compensation for affected structures + other entitlements). There was no separate documentation on compensation received per type of loss.

B. Delivery of Entitlements

1. Girdani-Kolatan Section, Section B

13. As of this date, only twenty two (22) APs have not yet received their compensation. Eight (8) rejected the offered compensation and have sought the intervention of the court, seven (7) are either living abroad or their residence cannot be located, and the rest cannot show proof of ownership over the land. Refer to Table 1.

Table 1: Unpaid Affected Persons, Section B

Village Number of Reason for not being paid Remarks Unpaid APs Luvasar 4 Rejected the compensation Brought to court for offered resolution Qurunba 4  The residence of two  Deposited the APs cannot be located money to the bank  1 AP is dead and no one knows the heir  1 rejected the offered  Brought to court compensation for resolution Suruk 2  Rejected the offered  Brought to court compensation for resolution Mognojoba 1  Living outside the  Brought to court country for resolution Shikakaran 2  Living outside the  Brought to court country for resolution Hirkan 3  2 are not appointed as  Brought to court heir for resolution  1 residence cannot be located Haftoni 2  1 rejected offered  Brought to court compensation for resolution  1 cannot be located  Deposited to bank Talish 1  Lack of documents  Brought to court for resolution Laj 3  Rejected offered  Brought to court compensation for resolution

2. Kolatan- Astara Section, Section C

14. There are remaining 45 unpaid APs in Section C. Land acquisition for 30 APs in Shiyakaran is on-going. There was a design realignment made in this section; hence land acquisition was delayed. The rest of the APs have rejected the offered compensation and sought the intervention of the court. Refer to Table 2.

Table 2: Unpaid Affected Persons, Section C

Village Number of Unpaid Reason for not Remarks APs being paid Shiyakaran 30  On-going land  There was a acquisition realignment made from Km 46+000 – Km 52 + 445 Kakalos 1  Rejected offered  Brought to court for compensation resolution BalacaShahagaci 2  Residence cannot  Brought to court for be located resolution Shahagaci 5  Rejected offered  Brought to court for compensation resolution Archivan 7  Residence cannot  Brought to court for be located resolution

15. The list of Unpaid APs for Sections B and C is attached as Annex A.

16. APs who can meet the minimum qualification will be given priority for project- related jobs once civil works commence.

C. Consultation and Grievance

1. Public Consultations

17. For Section B, Five (5) consultation meetings involving the 16 affected villages were conducted. The meetings were held in the villages Sapnakaran, Yuxarı Nüvədi, Kosalar, Moqonojoba, Lüvasar, Şəhlaküçə, Haftoni, TalışlıHirkan, Daşdaliqcar, Mamusta, Şiyəkəran, Kakalos, Pensər and Kolatan villages of Lenkaran rayon.

18. For Section C, One (1) consultation meeting involving the only affected village was conducted. The meeting was held in the village of Shahagaci in the Astararayon.

19. Both these meetings happened during thefirst week of August 2007. During the meeting, a presentation in Azeri was made detailing the Project andcompensation policies that would be adopted with affected persons. Maps of all the impactedlots were presented. The disclosure booklet explaining the compensation policy in the2 Resettlement Framework was made available. A question and answer session followed thepresentation. 20. In August 2012, a new set of information booklet containing project description and entitlement of APs were distributed to all affected municipalities. The head of the Municipality was tasked to distribute the booklet to all affected APs within his jurisdiction.

2. Grievance

21. Grievances raised by APs relates to amount of compensation for affected assets. APs with grievance approached their village officials to present the issue. The Village Official immediately arranges a meeting between the aggrieved AP and the Rayon LAR Commission. Since most of the issues pertain to compensation which was determined and approved by ARS, the cases were elevated to court for immediate resolution.

III. Random Visit to Villages

22. A random visit to affected villages was conducted to further validate the information on compensated affected households and also determine the views of local officials on the compensation rate.

23. Among the villages visited were Kolatan and Shiyekaran in Astara and Dasdaligcar in Lankaran.

24. In Shiyekaran, Mr. NacafovFiruz, Head of Municipality was interviewed and provided the following information: The twelve (12) affected families in Shiyekaran already received their compensation and are ready to relocate. Of the 103 affected lots, only 30 are unpaid. The claimants inherited the lots and are having difficulty in producing appropriate documents of ownership. The eight (8) hectares affected municipal lands also remain unpaid because of delayed documentation by the State Committee on Land. When asked on the reactions of the affected households regarding the rate of compensation, Mr. Firuz said that all affected households agreed and received the compensation and nobody complained.

Photo 1: Mr.NacafovFiruz, Head of Municipality, Shiyecaran providing information on Compensated Affected Households 25. In Dasdaligcar, the Municipal representative cannot provide information on the affected families as he is newly appointed.

Photo 2 Visit to the Office of the newly appointed Municipal Representative, Dasdaligcar

26. Visited also Kokolos, unfortunately the Municipal Official in-charge of compensating the affected families is out and nobody among the Officials present is competent to provide information on the affected households.