Social Due Diligence Report

Project No. 43405-028 September 2020

Georgia: Urban Services Improvement Investment Program, Tranche 6

Construction of Water Supply System in (CHI-01) – Contract Amendment No. 5

Prepared by United Water Supply Company of LLC for the Ministry of Regional Development and Infrastructure of Georgia and the Asian Development Bank.

This social due diligence 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.

Social Due Diligence Report

Project No.: 43405-028 Georgia: Urban Services Improvement Investment Program, Tranche 6

CONSTRUCTION OF WATER SUPPLY SYSTEM IN CHIATURA (CHI-01)

Contract Amendment #5

Prepared for the Asian Development Bank

(ADB) By

“United Water Supply Company of Georgia” LLC

September 2020

This document is prepared by the “United Water Supply Company of Georgia” LLC for the Asian Development Bank in accordance to the Resettlement Framework requirement as described in ADB’s Safeguard Policy Statement (2009).

This Due Diligence 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.

ABBREVIATIONS

ADB - Asian Development Bank AP - Affected People EMP - Environmental Management Plan GRM - Grievance Redress Mechanism IPMO - Investment Project Management Office MRDI - Ministry of Regional Development and Infrastructure of Georgia MFF - Multi tranche Financing Facility NAPR - National Agency of Public Registry SDDR - Social Due Diligence Report RoW - Right of Way UWSCG - United Water Supply Company of Georgia WS - Water Supply System LAR - Land Acquisition and Resettlement LARP - Land Acquisition and Resettlement Plan

Contents 1. Introduction ...... 1 A. Project Background ...... 1 B. CHI-01 sub-project description ...... 1 C. Objectives of the Due Diligence Report ...... 8 D. Approach and Methodology ...... 8 II. FINDINGS OF SOCIAL DUE DILIGINCE ON LAND ACQUISITION AND RESETTLEMENT IN THE PROJECT ...... 9 A. Summary of Land Acquisition and Resettlement Impacts...... 9 B. Resettlement Policy and Provisions ...... 10 C. Preventive and Mitigation Measures Required During the Construction Activities 11 III. GRIEVANCE REDRESS MECHANIZM (GRM) ...... 11 IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 14 V. CONCLUSIONS OF DUE DILIGENCE ...... 16 Annex I: LETTER N 10089/1 ...... 18 Annex II: UWSGC’s Order #196, on Grievance Redress Mechanism, 30 October 2018 ...... 21 Annex III: COMPLAINTS LOG ...... 22 ANNEX IV: PHOTOSFROM PROPOSED SUBPROJECT LOCATIONS ...... 23 ANNEX 5: Photos of Announcement of the meeting, 9th September 2020 ...... 24 ANNEX VI: MoM OF PUBLIC CONSULTATION AND GRM DISCLOSURE ...... 27 ANNEX VII: PHOTOS OF PUBLIC CONSULTATION ...... 29 ANNEX VIII: ATTENDANCE LIST ...... 30 ANNEX IX: BULLETIN ...... 35 ANNEX X: LETTER OF ...... 36

I. Introduction

A. Project Background

1. The Urban Services Improvement Investment Program was developed as the Government’s response to the lack of adequate and/or safe water supply, sewerage and sanitation in urban areas of Georgia. This is intended to optimize social and economic development in selected urban areas through improved urban water and sanitation services and is financed by the ADB through its Multi-tranche Financing Facility. The Ministry of Regional Development and Infrastructure is the Executing Agency and the United Water Supply Company of Georgia, LLC is the Implementing Agency of the Investment Program. UWSCG is a 100% state-owned company.

2. The Investment Program will improve infrastructure through the development, design and implementation of a series of subprojects, each providing improvements in a particular sector (water supply and/or sewerage) in one town. Subprojects will rehabilitate existing infrastructure and/or create new and expanded infrastructure to meet the present and future demand. Water supply improvements will include source augmentation and head works, pumping systems, treatment facilities, transmission and distribution network; and, sewerage improvement works will include sewer network, pumping stations, main collectors and waste water treatment plants.

3. Construction of Water Supply System in Chiatura (CHI-01) sub-project1 is part of Urban Services Improvement Investment Program Tranche 6 (USIIP/T6) financed by Asian Development Bank (ADB).

B. CHI-01 sub-project description

4. Chiatura municipality from the north is bordered by , from the east – by municipality, from the south – by and from the west – by Tkibuli, Terjola and Zestaphoni municipalities.

5. This sub-project is located in Chiatura town. The Chiatura town is stretched on Chiatura plateau and narrow gorge of the river Kvirila at an elevation of 340-500m above the sea level. Geographically, Chiatura is located at 42o17’52” N and 43o17’56” E, about 220 km northwest of Tbilisi. Map 1 below represents the regional location of Chiatura.

1 The additional works in Avarioni & Safari areas are added to CHI-01 sub-project from 12 August 2020. 2

Map 1. Location of Chiatura town.

6. The CHI-01 initial project includes the construction and rehabilitation of the water supply network with various diameters and lengths of water pipes, construction of 7 new deep wells, 2 new reservoirs, 3 new pumping stations, rehabilitation of 6 existing reservoirs and 1 pumping station. For the construction of the well field (7 wells) and one reservoir UWSCG has prepared and implemented 2LARP.

7. Layout of the Water Supply network under CHI-01 main-project is presented in the figure 1 below.

2 https://www.adb.org/projects/documents/geo-43405-028-rp 3

Figure 1: Layout and coordinates of the Water Supply Network under CHI-01 main-project

8. Due to the need for 24-hour water supply in “Avarioni” and “Safari” areas of Chiatura, which was not envisaged by the initial project, it was decided to add “Section-2” to the on-going “Construction of water supply system in Chiatura” (CHI- 01) sub-project, which includes the construction of additional water supply system.

9. Section-2 Area “Construction of water supply system for Avarioni and Safari areas” is located in nearby of Chiatura at east part of the city and will be hereinafter named as Section-2 Area in rest of this SDDR below. Project area is inside the city limits and the site generally bounded by the following coordinates:

Table 1. Section-2 Area site coordinates

# X Y # X Y Network Area 6 361022,19 4683643,93 1 360781,88 4684489,15 7 361179,15 4683808,75 2 360621,57 4683776,79 8 361463,72 4683901,82 3 360822,73 4683803,58 9 361496,94 4684223,73 4 360871,05 4684075,25 Reservoir 360140,32 4683192,53 5 361042,79 4684044,20 P.Station 360889,08 4683652,64

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10. Figures 2 and 3 below show the location of Section-2 Area within the CHI-01 sub- project.

Figure 2: Location of Section-2 Area (Marked with Red)

Figure 3: Location of Section-2 Area in Chiatura (Marked as red & magenta lines)

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11. Most of the houses in the Section – 2 Area are in the form of apartments. The scheme is designed to provide water in 340 houses. To ensure 24*7 water supply, the sub-project envisages installation of new pumps on the territory of existing “Bisi” reservoir, which will receive water from mentioned reservoir and pump it to the proposed design reservoir for providing water to Pataridze and Sopromadze Streets (“Avarioni” and “Safari” area). The pump will convey water to design reservoir, from where water will flow to these streets by gravity.

The proposed work includes following items:

- Installation of two pumps (Q=36 m3/h, H = 200), one working & one stand by, with the electrical control panel, external lighting, surge control system within the registered red lines of existing “Bisi” reservoir; ; - Transmission main PE 100 pipe, PN 16, DN=180 mm, L =3925 m; - Water distribution network DN=63 mm PE100 PN10, L=500 m; DN=90mm PE100 PN10, L=300 m; DN=110 mm PE100 PN10, L=1525m; DN=160mm PE100 PN10, L=795m; DN=225 mm PE100 PN10, L=90m; - Design reservoir capacity=500 m3 with mechanical installation & external electrical lighting - Installation of 340 meters generally in apartments - Gate valve, Dismantling joint, air valve, hydraulic chambers - Magnetic bulk flow meter with signal transmitter connected to SCADA system - Level sensors with signal transmitter connected to SCADA & float level switches for reservoir, - SCADA panel type 2 for pumps and panel type 4 for reservoir

12. Implementation Period: It is estimated that the implementation of works will take about 6 months after finalization of the design and agreement on cost between employer & contractor.

13. Land Requirements:

a. Two pumps (one working & one stand by) will be installed on the territory of existing “Bisi” reservoir within the registered red lines of the land owned and used by UWSCG since 2011y. Figure 4 below shows the area of existing “Bisi” reservoir.

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Figure 4. Territory of existing “Bisi” reservoir

b. The new 500 m3 Reservoir will be constructed on Government land with cadastral code: 38.11.31.558 – 940 m2, which is not used by local population formally or informally, for agricultural or other purposes. UWSCG already began appropriate procedures for the registration of the reservoir area under the ownership of the company.

c. Figure 5 below shows the area of the new design reservoir.

Figure 5. Territory of the Design Reservoir

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d. The transmission pipe and distribution network lines will be laid along the public roads. Figure 6 below shows the area for the construction of the pipelines.

Figure 6. Territory of the Design pipelines

Table 2. Pipe Lengths, Pressure and Diameters breakdown

Pipe Length Pipe Pipe Material, Pressure and Diameter [m] Transmission Main PE 100, PN 16, DN=180 mm 3925 Distribution Network PE 100, PN 10, DN=110 mm 3210

14. Railway and vehicle main roads are available within the Chiatura municipality. Country-significant Gomi-Sachkhere-Zestaponi car road, as well as Zestaponi- Sachkhere railway main road, cross Chiatura town. The internal roads connecting Chiatura and the surrounding villages are well developed, however most of them require surface rehabilitation. As part of the town internal transportation, buses and cableways provide service, which connect most of its areas with the center. A ground car road is provided from the central vehicle road to the industrial area that crosses the railway line located next to it.

15. No additional access to site is required for construction of new design reservoir. Site is accessible via Chiatura City roads and Chiatura-Usakhelo-Karbouli road. In case of damage of the access road during the construction of the water supply network, the contractor will ensure the full restoration of the damaged sections due to the fact that the construction of the transmission line is envisaged on above mentioned road according to the sup-project and restoration of this road is under the obligation of the contractor.

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C. Objectives of the Due Diligence Report

16. The primary objective of this DDR is to:

a. Screen the planned activities under the proposed sub-project (Section- 2 Area) and confirm the absence of LAR impacts, or necessity of preparing LARP

b. Identify the magnitude of impact on the land and to verify its status that whether private owned, or used land is being affected. Type and extent of loss of land assets, loss of livelihood, loss of common property resources and its impact on social infrastructure is to be assessed.

c. Review preliminary information on potential land use, method of valuation of land, structure and other assets, eligibility criteria for availing benefits, baseline socio-economic characteristics, the institutional arrangement for delivering the entitlements and mechanism for resolving grievances and monitoring.

d. Review the existing Legal Framework based on which the property needs to be acquired (if any) and to compare that the ADB Safeguard Policy Statement-2009 designed by ADB to protect the rights of the affected persons and communities have been followed or not.

17. Description of public consultation and people’s participation processes, Institutional framework for the implementation of the GRM are part of this DDR.

D. Approach and Methodology

18. The proposed due diligence report is mainly prepared based on the field visits (please see chapter IV) and review of available project related documents and conduct reconnaissance to collect and assess the baseline conditions of the area In particular, the following documents were reviewed:

a. Applicable laws and regulations of Georgia; b. ADB Safeguard Policy Statement 2009; c. Project “Construction of Water Supply System in Chiatura” d. Contractual Obligations e. Environmental Review and Assessment Framework (ERAF); f. Resettlement Framework of USIIP (LARF) g. Other specific Environmental and Social Evaluations as applicable.

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19. Regulatory review was conducted in order to understand the applicable legislation, regulatory frameworks and procedures.

20. Review of available data on land use and its ownership in the impacted sub-project area was carried out. There were no limitations of data collected and all land title documents were available. There is also no population cultivating the proposed land for construction of Reservoir and water supply network.

II. FINDINGS OF SOCIAL DUE DILIGINCE ON LAND ACQUISITION AND RESETTLEMENT IN THE PROJECT

A. Summary of Land Acquisition and Resettlement Impacts

21. Section-2 - “Construction of water supply system for Avarioni & Safari areas” comprise of construction water supply systems in Avarioni and Safari areas of Chiatura city. The details about the planned activities under the Section-2 Area sub-project are provided in the paragraph 11.

22. As it was already mentioned all components (pumps, reservoir, pipelines) of the Section-2 Area sub-project will be constructed on land owned and used by UWSCG, Government land, that is not used for agricultural or other purposes and public roads, so there is no need for acquisition of private land and other private properties of the population nor involuntary resettlement, physical or economic displacement of the population is involved. No temporary impact on the private lands are envisaged by the sub-project.

23. The actual usage of state land has been verified in the field, as a result of site visits and visual inspection of land plots.

24. The components of the CHI-01 sub-project are described in Paragraph 8-15 above and are to be constructed on the land owned and used by UWSCG, Government land, which is not used by the local population for agricultural, or other purposes (formally or informally) and public roads, so there is no need for LAR or LARP procedures. The process of excluding the project area from the ownership of the Agency of the State Property under the Ministry of Economy and Sustainable Development of Georgia and handing it over the property of UWSG has already been started (Please see Annex 1 – Letters from the Acting Director of UWSG to the Minister of Regional Development and Infrastructure on mediation with the Agency of the State Property for the transfer of the Project territory to UWSCG). The 940 m2 land with the cadastral code 38.11.31.558 is registered separately as the state owned for further transfer.

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25. As this DDRs confirms, the pipeline will be constructed on public roads, there shall be no actual usage of private lands. This was verified in the field, as a result of site visits and visual inspection of land plots.

26. Baseline study revealed that local stakeholders, around 340 households receive the water from the Margins Factory, the quality of the water is poor and it is not potable. Local residents use the water for household purposes but not for drinking. They get water every day, in the morning from 8 a.m. to 12 p.m. and in the evening from 7 p.m. to 9 p.m. Due to the low pressure and damaged pipes, the residents living above the second floor do not get water in the apartments and they collect it in the yard.

Table 3: Location and Ownership of Land Affected in Sub-project

Cadastral N Owner Note code The pump room will be in the 1 38.10.31.081 UWSCG existing premises of “Bisi” reservoir Letter N 10089/1 31-07-2020 of the Acting Director of UWSCG to the State 2 38.11.31.558 Minister of Regional Development land and Infrastructure (Please see Annex 1)

B. Resettlement Policy and Provisions

27. The legal framework and principles adopted for addressing resettlement issues in the subproject have been guided by the Asian Development Bank SPS 2009 and the 3Resettlement Framework (RF) adopted for the USIIP.

28. The objectives of ADB's SPS (2009) with regard to involuntary resettlement are: (i) to avoid involuntary resettlement wherever possible; (ii) to minimize involuntary resettlement by exploring project and design alternatives; (iii) to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre- project levels; and (iv) to improve the standards of living of the displaced poor and other vulnerable groups.

29. The objective of the Resettlement Framework is to provide guidance in the preparation and implementation of land acquisition and resettlement (LAR) tasks for the projects under each tranche USIIP and to establish the necessary covenants to ensure this complies with the ADB’s Safeguards Policy Statement (2009) and procedures for MFFs and relevant Georgian legislation. This RF sets

3 The link of disclosed RF - https://www.adb.org/sites/default/files/project-document/62519/43405-01- georfab.pdf 11

out the procedures for the preparation of LAR tasks for projects under the Investment Program and sets the objectives, principles, compensation eligibility and entitlement criteria, legal and institutional frameworks, participation and consultation procedures and grievance redress mechanisms to be employed to compensate, resettle and rehabilitate the living standards of Affected Families (AF) and Affected Persons/People (AP.) RF also sets out the steps for preparing Resettlement Plans (RPs) in case they are needed.

C. Preventive and Mitigation Measures Required During the Construction Activities

30. Construction and Supervision Company will develop safety measures to ensure compliance of all the safety measures for workers and possible passersby population. Construction and Supervision Company HSE specialist will permanently supervise all demolishment and construction activities.

31. The project is implemented on the state owned territory and not private one. There is no need of private owned land usage for this purpose. Spoil disposal and waste management issues will be managed and regulated according to IEE document.

32. The proposed sub-project is part of the CHI-01 project and all project specific documentation apply to the sub-project. Contractor shall follow the plans and procedures developed for CHI-01 project during implementation of construction activities of the sub-project. It means that all preventive and mitigation measures described in Environmental and Social Management Plan and Occupational Health and Safety Management Plan shall implemented.

33. During construction, all necessary measures will be taken to avoid temporary impacts such as loss of access leading to livelihoods or any other types. III. GRIEVANCE REDRESS MECHANIZM (GRM)

34. For the effective implementation of a GRM system under the USIIP, UWSCG issued special order (#122) on 30 April 2014 further replaced on October 2018 by Order # 196 (Annex 2) on the “Establishment of GRM within the Framework of the Asian Development Bank Funded Projects” signed by the head of UWSCG, that gives clear instructions to every involved stakeholder how to act when affected people are impacted by the project.

35. Any 4affected person can apply at a UWSCG local service centre (UWSCG has 53 service centers and 8 Regional Branches across Georgia, in different municipalities) through different ways, either by going to the service centre,

4 Affected Person (AP) in this case is any resident from beneficiary communities and not the LAR affected person.

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sending a letter to the service centre, or calling a hotline. The operators of the service centre can respond by going directly to the affected person if they are disabled to get the written grievance from them. Than AP’s complaints are registered by the operator of the service center and AP get queue number (see figure 4 below).

Figure 4: AP gets queue registration number at Local Service center (on the example of Service Center)

36. It should be mentioned also that complaints log is available at each construction site and any affective person may fill the compliant log. (Please see Annex 3) and submit to the contractor directly.

37. At first stage of grievance redress, an authorized representative of Customers Relations Division/Customers Service Office of local Service Center/Regional Branch of United Water Supply Company of Georgia, LLC, be obliged to familiarize himself/herself with the content of the complaint, to register the complaint in the form approved by Annex 3 of this report and to submit it to Grievance Redress Committee (hereinafter the Committee), which will consider the submitted complaint within the two weeks period.

38. The Committee envisaged by the Point 2 of the Order #196 will be approved with the following composition:

a. Head (Regional Branch Manager/Service Center Director) of respective territorial unit of United Water Supply Company of Georgia, LLC – Committee Chairman; b. Representative of Projects Management Department of United Water Supply Company of Georgia, LLC – Committee Member; 13

c. Representative of Environmental Protection and Permits Department of United Water Supply Company of Georgia, LLC – Committee Member; d. Representative of construction company implementing project/subproject – Committee Member; e. Representative of supervision company of project/subproject – Committee Member; f. Representative/Commissioner of the respective municipality – Committee Member; g. Environmental Specialist of the Asian Development Bank Program – Committee Member; h. Representative of respective territorial unit of United Water Supply Company of Georgia, LLC – Committee Secretary. 39. In case the problem raised in the complaint is not solved within the two weeks periods at the first stage of grievance redress, the individual concern can address the GRM Commission established by Point 5 of this Order, which will make decision within two weeks period.

40. To promptly and effectively review and solve the complaint of the individual concerned, the Grievance Redress Commission (hereinafter the Commission) be established with the following composition:

i. Director of United Water Supply Company of Georgia, LLC – Commission Chairman; j. Deputy Director on Technical Issues of United Water Supply Company of Georgia, LLC – Commission Member; k. Deputy Director on Financial Issues of United Water Supply Company of Georgia, LLC – Commission Member; l. Deputy Director on Commercial Issues of United Water Supply Company of Georgia, LLC – Commission Member; m. Head of Legal Department of United Water Supply Company of Georgia, LLC – Commission Member; n. Head of Environmental Protection and Permits Department of United Water

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Supply Company of Georgia, LLC – Commission Member; o. Head of Communications Office of Director’s Apparatus of United Water Supply Company of Georgia, LLC – Commission Member; p. Head of Projects Management Department of United Water Supply Company of Georgia, LLC – Commission Member; q. Head of Construction Supervision Department of United Water Supply Company of Georgia, LLC – Commission Member; r. Representative of Environmental Protection and Permits Department of United Water Supply Company of Georgia, LLC – Commission Secretary. 41. Heads of self-governing units be required to define a representative who is employed in local self-governance in the field of social matters.

42. In case the problem raised in the complaint is not solved within two weeks at the second stage of grievance redress, the individual concerned can address the Permanent Representative of the Asian Development Bank to Georgia at the following address: Tbilisi, #1, G. Tabidze Street, Tel: +995 32 225 06 19.

43. CHI-01 Project has already established GRC practice, which will continue with Section -2Area. The Grievance registration and record keeping procedures are responsibility of Girogi Chigaldze, social officer of Construction Contractor. He initiates investigation process together with site engineers.

44. The team of investigators of the grievance is headed by the Engineer of Supervision Company, Kakha Kharebava (mobile: 599657575). If the issue cannot be solved at the site, social safeguard expert of the Supervision company, Ketevan Chubabria (mobile: 599986697) steps in a process and starts the procedures defined by GRC.

IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

45. Numerous meeting and consultation took place for implementation of CHI-01 initial project and the corresponding information, MoMs and reports were delivered to the Employer.

46. The request for implementation of the CHI-01 sub-project Section -2 has been initiated by the Local Government of Chiatura (the official letter is presented in annex X). The series of discussion started in the first quarter of 2020 and succeeded to the approval of implementation by UWSCG and ADB. 15

47. During the baseline study on July-August 2020 the Social Team of the Project conducted Door-to-Door consultations. The team met with representatives of 340 households and introduced the proposed activities envisaged by the Project. The team was composed of Social safeguard specialists of the Contractor and the Engineer; team leaders of the Contractor and the Engineer; Residential engineer of the Engineer. The team met residents in groups in the yards of the buildings and then continue walking through the apartments. No person appeared to be against the sub-project, they unanimously expressed the positive attitude towards planned activities. Since they really want the sub-project to be launched in the near future, the main question was the timing of the planned actions.

48. On 9th of September, 2020 public consultation of Avarioni and Safari residents was organized. The purpose of the event was familiarization of local community with the Project, namely, introducing the amendment N5 to the Project dated August 12, 2020, which aims construction of water supply system in Safari and Avarioini area and disclosure of Grievance and Readdress Mechanism.

49. Representatives of UWSCG visited the area, met with head of communities and informed them about the upcoming event, they also posted the announcement of the meeting at several locations, mainly, at people gathering sites (please see Annex 5). The post implied the purpose of the meeting, time and location.

50. The event started at a scheduled time. Due to the COVID19 pandemic, organizers of the event avoided indoor meeting and for outdoor meeting playground area was chosen. The meeting was attended by representative of UWSCG, the Engineer, Construction Contractor, local municipality and community, of which 27 are women and 24 are men. The purpose of the meeting was informing local communities on the progress of the Project, upcoming activities and disclosure of the GRM.

51. During the meeting local community was informed about to the purpose and status of the project the amendments to the project dated August 12, 2020, which will positively affect their households, namely, they will get 24-hours high quality water supply. Detailed information was given on Grievance Redress Mechanism; the rights of the stakeholders to speak up on their concerns and issues related to the project; the mechanism of registration of the complaints and steps of complaints investigations and resolutions. The minutes of the meeting, signed list of participants and main questions/request from the local residents are provided in Annexes 6, 7, 8 of this report.

52. The community expressed their positive attitude towards the Project, they showed willingness to implement the project.

53. Local communities were provided with the Project presentations and the Bulletin (please see Annex 9), which contained brief information of the project and contact information of Project Staff responsible for communication with stakeholders. The Bulletin was elaborated by Social Safeguard Specialist of the Engineer.

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V. CONCLUSIONS OF DUE DILIGENCE

54. The presented Due Diligence Report describes resettlement assessment of CHI- 01 sub-project, Section – 2 Area and focus on impact in terms of involuntary resettlement.

55. As a result of the review of available documents, plans and references and field verification it can be concluded that for construction of transmission mains and water supply network for Avarioni & Safari areas there will be no need for LAR and consequently LARP procedures according the fact that the construction activities are envisaged on the public roads.

56. Only UWSCG’s Land will be impacted for the installation of pumps under the CHI- 01 sub-project Section-2. As the land is used by UWSCG (“Bisi” Reservoir) since 2011y, no LAR is required in the sub-project.

57. The area, which is selected for construction of new reservoir is under ownership of the Government of Georgia. The process of excluding the project area from the ownership of the Agency of the State Property under the Ministry of Economy and Sustainable Development of Georgia and handing it over the property of UWSCG has already been started. The Acting Director of UWSCG sent letter N 10089/1 dated 31/07/2020 to the Minister of Regional Development and Infrastructure on mediation with the Agency of the State Property for the transfer of the Project territory to UWSCG.

58. The land considered for sub-project activities is state owned, which is not occupied or used by private person. No temporary impact on private land is envisaged by the sub-project.

59. On 9th of September, 2020 public consultation of Avarioni and Safari residents was organized. The purpose of the event was familiarization of local community with the Project, namely, introducing the amendment to the Project dated August 12, 2020, which aims construction of water supply system in Safari and Avarioini area and disclosure of Grievance and Readdress Mechanism. The community expressed their positive attitude towards the Project, they showed willingness to implement the project.

60. Information on progress of works envisaged by the project will be disseminated in affected communities, so the interested public will be informed and made aware of ongoing and planned construction works of the project. Means of communication will be announcements posted on information boards at local municipalities and gathering points of local communities; meetings at local municipalities and public areas of local communities; press releases for media; besides, Contractor and Engineer have social safeguard specialists on board, who are responsible to update beneficiaries on upcoming activities etc. 17

61. Construction and Supervision Company will develop safety measures to ensure compliance of all the safety measures for workers and possible passers by population. Construction and Supervision Company HSE specialist will permanently supervise all demolishment and construction activities.

62. During construction, all necessary measures will be taken to avoid temporary impacts such as loss of access leading to livelihoods or any other types.

63. As it was already mentioned above there is no involuntary resettlement involved in the CHI-01 Section-2Area sub-project, meantime, the implementation of the Project will give long term benefits to local population. There should in fact be positive benefits through major improvements in quality of life for individual and overall public health once the water Supply and wastewater systems are in operation. The project will stimulate economic growth, directly generate new job opportunities, improve river water quality and the treated wastewater and good quality of surface water is a prerequisite for tourism development.

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Annex I: LETTER N 10089/1 19

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Translation in English Letter No. 10089/1 30/07/2020 To: Mrs. Maia TskitishviliMinister of Regional Development and Infrastructure of Georgia

Dear Mrs. Maia We would like to inform you that the United Water Supply Company of Georgia Ltd (hereinafter referred to as the "Company") is implementing the "Chiatura Water Supply System Rehabilitation Project" within the framework of the Asian Development Bank's Urban Services Improvement Investment Program, under the framework of which a new reservoir is planned to be built. In order to connect "Avarion" and "Safari" settlements to the water supply network. For the construction of the reservoir provided for by the specified project, the company needs a plot of 940 sq. from the state agricultural land plot of 25987 sq. m (Cadastral code N38.11.31.529) in the village of Perevisi, Chiatura municipality. Based on the above, please petition the LEPL "National Agency for State Property" to implement

• Allocation of 940 sq. m. land plot in accordance with the attached cadastral planning / dimensional drawing (by separating it) from the state agricultural land plot in the village of Perevisi, Chiatura municipality, 25987 sq. m., registered with cadastral code N38. 11.31.529

• Due to the necessary public needs for the mentioned land plot (940 sq.m.) (by constructing a new reservoir the company will provide water supply to the so-called "Avarioni" and "Sapari" settlements) change of the intended purpose (agricultural) for non-agricultural purposes and after registering the change in the public register, making a contribution to the capital of the company.

Appendix: 2 sheets, 1 digital version Regards, David Chanturia Deputy Director 21

Annex II: UWSGC’s Order #196, on Grievance Redress Mechanism, 30 October 2018

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Annex III: COMPLAINTS LOG

COMPLAINTS LOG

საჩივრების რეგისტრაცია N Date / Location Complainant/ Date Details of Investigation / Resolution თარიღი/მდებარეობა of Contact Complaint Mitigation Status* Action მოსაჩივრე/საკონტა საჩივრის პრობლემის ქტო დეტალები შინაარსი პრობლემის გადაწყვეტის შესწავლა სტატუსი /შემარბილებელი ღონისძიებები

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ANNEX IV: PHOTOSFROM PROPOSED SUBPROJECT LOCATIONS

Photo 1: State owned area selected for construction of new reservoir

Photo 2: The area of new water network

Photo 3: The area of new water network

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ANNEX 5: Photos of Announcement of the meeting, 9th September 2020

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ANNEX VI: MoM OF PUBLIC CONSULTATION AND GRM DISCLOSURE

Project: Construction Water Supply System of Chiaura CHI-01. Section-2 Area “Construction of water supply system for Avarioni and Safari areas” Subject: Introduction of the Project and Project related activities. GRM Disclosure Date-Time: 2020 /09/09 14:00 – 15:30 p.m. Location: Playground area of Safari and Avarioni area

Issued: 2020 /09/13 Attendance: See annex VI – Attendance list

Description of the event The event was planned one week prior the scheduled date. Organization process of the event was headed by the local staff of UWSCG. The residents of Safari and Avarioni were informed by different means of information. Representatives of UWSCG visited the area, met with head of communities and informed them about the upcoming event, they also posted the announcement of the meeting at several locations, mainly, at people gathering sites. The post implied the purpose of the meeting, time and location.

The event started at a scheduled time. Due to the COVID19 pandemic, organizers of the event avoided indoor meeting and for outdoor meeting playground area was chosen.The meeting was attended by representative of UWSCG, the Engineer, Construction Contractor, local municipality and community. The purpose of the meeting was informing to local communities on the progress of the Project, upcoming activities and disclosure of the GRM. Meeting was opened by Social Safeguard Specialist of the Engineer. She briefly introduced the audience to the purpose and status of the project and informed them about the amendments to the project dated August 12, 2020, which will positively affect their households, namely, they will get 24-hours high quality water supply. She also explained in details Grievance Redress Mechanism, highlighted the rights of the stakeholders to speak up on their concerns and issues related to the project; outlined the mechanism of registration of the complaints and steps of complaints investigations and resolutions. UWSCG representatives spoke about the importance of the project for the development of the region and provided the community with technical details.

The community expressed their positive attitude towards the Project, they showed willingness to implement the project. Local communities were provided with the Project presentations and the Bulletin, which contained brief information of the project and contact information of Project Staff responsible for communication with stakeholders. Questions:

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Residents of Safara and Avarioni area asked the following questions: 1. When will the construction activities start? 2. When will the resident get water? 3. What will be the quality of water? 4. Will the result of upcoming election effect implementation of the Project? 5. Who are the persons in charge of communication with local residents? Answers: Questions of the residents were responded by representatives of UWSCG and the Engineer. 1. Implementation of the Area-2 Section will commence at the end of September, 2020. 2. In month February, 2021 the residents of Safara and Avarioni area will be supplied with 24-hours high quality water. 3. The quality of water will satisfy the requirements of local legislation of drinking water. 4. The project will be implemented and completed successfully, and the results of the upcoming elections will not have any impact on it. 5. Project staff working on social issues will be responsible for liaising with local communities, and their contact information are indicated in the bulletins that are distributed to you.

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ANNEX VII: PHOTOS OF PUBLIC CONSULTATION

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ANNEX VIII: ATTENDANCE LIST

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ANNEX IX: BULLETIN

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ANNEX X: LETTER OF CHIATURA MUNICIPALITY

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Translation of Chiatura Municipality letter

Att: Grigol Mandaria, Director of United Water Supply Company of Georgia

Mr. Grigol,

As you are aware, Ministry of Regional Development and Infrastructure and United Water Supply Company are currently implementing a crucial and vital project of ensuring 24-h water supply in Chiatura Municipality. A new and modern system for 24-h water supply is being actively constructed. A large part of population now has continuous water supply but the current project does not include 340 customers from Sopromadze and Pataridze Streets.

Considering the abovementioned and the fact that the population on Sopromadze and Pataridze Streets receives only technical water on intermittent basis, and bearing in mind the public interest, please, include these 340 customers in the current Chiatura water supply project.

Respectfully,

Givi Modebadze

Mayor Chiatura Municipality City Hall