Corrective Action Plan

Project Number: 49244-002 April 2021

Armenia: – Border Regional Road (M6 –) Improvement Project

Prepared by the “Road Department” State Non-Commercial Organization of the Ministry of Territorial Administration and Infrastructure of the Republic of Armenia for the Asian Development Bank.

This corrective action 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.

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. Corrective Action Plan (CAP)-3

September 2020

Armenia: M6 Vanadzor – Alaverdi – Georgian Border Interstate Road Rehabilitation and Improvement Project

(Km38+450 –Km90+190)

Project Number: 49244-002 Loan Number: 3449-ARM

Prepared by the “Road Department” SNCO, the Ministry of Territorial Administration and Infrastructure of the Republic of Armenia for the Asian Development Bank (ADB)

ABBREVIATIONS

ADB Asian Development Bank AH Affected Household AMD Armenian Dram CR Completion Report DMS Detailed Measurement Survey EA Executing Agency EIB European Investment Bank GRM Grievance Readdress Mechanism IA Implementing Agency LAR/LARP Land Acquisition and Resettlement (Plan) MTAI Ministry of Territorial Administration and Infrastructure PAP/AP (Project) Affected Person RA Republic of Armenia RD Road Department SNCO State Non-Commercial Organization SPS Safeguard Policy Statement

2 TABLE OF CONTENTS

ABBREVIATIONS ...... 2 1. INTRODUCTION ...... 5 1.1 PROJECT BACKGROUND ...... 5 1.2 SCOPE AND OBJECTIVES ...... 7 2. METHODOLOGY ...... 7 3. IMPACT ASSESSMENT ...... 8 3.1 IMPACT SUMMARY ...... 8 3.2 SOCIO-ECONOMIC PROFILE ...... 10 3.3 IMPACT ON LAND ...... 11 3.4 IMPACT ON STRUCTURES AND IMPROVEMENTS ...... 13 3.5 IMPACT ON BUSINESS ...... 15 3.6 IMPACT ON TREES AND BUSHES ...... 15 3.7 IMPACT ON CROPS ...... 17 4. RESETTLEMENT BUDGET ...... 18 4.1 COMPENSATION FOR LOSSES ...... 18 4.2 COMPENSATION FOR LOSS OF BUSINESS ...... 22 4.3 ALLOWANCES ...... 25 4.4 REGISTRATION COSTS ...... 25 5. CONSULTATION AND INFORMATION DISCLOSURE ...... 27 6. CAP IMPLEMENTATION ...... 27 7. CAP MONITORING ...... 28 ANNEX 1. DESCRIPTION OF DESIGN CHANGES (CHANGES TO LAR BOUNDARY) ...... 29 ANNEX 2. REQUEST AP FOR TEMPORARY COMPENSATION ...... 30

3 List of Tables Table 1: Breakdown of the Project per Lots and Communities ...... 5 Table 2: Impact Summary ...... 9 Table 3: Age Distribution of APs ...... 10 Table 4: Employment Status ...... 11 Table 5: Temporary Impact on Land ...... 11 Table 6: Permanent Impact on Land ...... 12 Table 7: Impact on Residential Structures ...... 13 Table 8: Impact on Non-residential Structures ...... 14 Table 9: Impact on Fences (Walls) ...... 14 Table 10: Impact on Other Improvements ...... 15 Table 11: Impact on Businesses ...... 15 Table 12: Impact on Fruit Trees and Bushes ...... 16 Table 13: Impact on Wood Trees ...... 16 Table 14: Impact on Decorative Bushes ...... 17 Table 15: Impact on Crops ...... 17 Table 16: Budget Summary ...... 18 Table 17: Compensation for Land ...... 18 Table 18: Compensation for Residential Structures ...... 19 Table 19: Compensation for Non-Residential Structures ...... 20 Table 20: Compensation for Fences ...... 21 Table 21: Compensation for Improvements ...... 21 Table 22: Compensation for Businesses ...... 22 Table 23: Compensation for Fruit Trees and Bushes ...... 23 Table 24: Compensation for Wood Trees ...... 24 Table 25: Compensation for Decorative Trees and Bushes ...... 24 Table 26: Compensation for Crops...... 24 Table 27: Compensation for Severe impact ...... 25 Table 28: Livelihood Restoration Allowance ...... 25 Table 29: Allowance for Transportation Costs ...... 25 Table 30: Compensation for Registration Costs ...... 26 Table 31: CAP Implementation and Monitoring Schedule ...... 28

List of Figures Figure 1: M6 CAP 3 Impacted Locations ...... 6

4 1. INTRODUCTION 1.1 PROJECT BACKGROUND 1. The Asian Development Bank (ADB) has agreed to co-finance the M6 Vanadzor-Alaverdi- Georgian Border Interstate Road Rehabilitation and Improvement Project (hereinafter: Project) with the European Investment Bank (EIB). Section 1 (Km0+000-Km38+450) is financed by EIB; and section 2 (Km38+450-Km91+190) is financed by ADB (ADB-financed road section). The ADB financed section has no extensive land acquisition impacts and is classified as Category B for Involuntary Resettlement.

2. The project road is about 90 km long connecting the city of Vanadzor with the Georgian border near the city of Bagratashen. The existing M6 road alignment runs along the narrow valley of the river Debed through 14 communities along the ADB financed road section.

3. 10 communities are affected by the project in the ADB financed section. The affected communities are located within the administrative territory of Lori and Tavush Marzes and involve: , Aygehat, Tumanyan, Aqori, , , , Alaverdi, and Archis. In terms of construction works the Project is divided into three road sections (Lots) which have separate Contractors. The breakdown of the Project road per Lots and communities is shown in the Table 1 below.

Table 1: Breakdown of the Project per Lots and Communities

Start Km- Length, Number of Lot Community Remarks End Km m Communities Aygehat Km 38+450 - Alaverdicity One community in Lot 1 9,690 Km 48+140 4 Lot 1 (Alaverdi) is Odzun in lot 2 as well, Tumanyan and one of 3 Haghpat communities in Lot Km 48+140 - 2 (Haghpat) is in Lot 2 14,160 Alaverdicity Km 62+300 3 Lot 3 as well. Aqori Haghpat Akhtala Shnogh 4 communities in Lot Artchis 3 are not affected by Km 62+300 - the project: , Lot 3 27,891 Neghots Km 90+191 Ayrum 9 Haghtanak, Ptghavan and Haghtanak Bagratashen Ptghavan Bagratashen The total number of 14 communities is Total 51,741 - 14 presented without double counting

5

Figure 1: M6 CAP 3 Impacted Locations

Lot 1

Lot 2 Lot 3

4. As the Project’s Executing Agency, the RA Ministry of Territorial Administration and Infrastructure (MTAI) is responsible for planning and implementation of the Land Acquisition and Resettlement Plan (LARP). The Road Department (RD) State Non-Commercial Organization (SNCO) acts as the Implementing Agency (IA) for the Project.

5. The Project LARP covering the ADB financed section was prepared by the RA Ministry of Territorial Administration and Infrastructure (MTAI). The LARP was approved by the ADB and

6 RA Government in November 2017 and is available on the RD’s1 and ADB’s2 web-sites. 6. LARP implementation was divided into 3 Phases. Implementation of all 3 Phases have been completed and the respective Completion Reports (CRs) are approved by ADB. Consequently, the LAR-completed sections have been handed over to the contractors. So far, 8 CRs have been prepared and approved (CR of Phase 1 includes all 3 lots, subsequently for Phases 2 and 3 separate CRs were prepared for each lot). The CRs of Phases One, Two and Three were approved in May 2018, September 2018, and February 2019 respectively. Subsequently access was provided to the contractors. All completion reports are available at the RDs website.3 1.2 SCOPE AND OBJECTIVES 7. As specified in the LARP, the IA considers and prepares Corrective Action Plan(s) (CAP) for any unforeseen Land Acquisition and Resettlement (LAR) impact during the project implementation and compensate and/or provide rehabilitation allowance based on the provisions in the LARP Compensation Entitlements with ADB’s concurrence. 8. This third CAP is therefore prepared to present unforeseen impacts caused by unforeseen design changes and LAR boundary that emerged during project implementation. This relates to the impact of unforeseen design changes/realignments and the consequent additional LAR impacts that were not covered by the LARP initially in three of the affected communities/settlements, namely; Alaverdi town and Archis and Haghpat communities. The complete list of all cases with additional elaboration on each case is provided in ANNEX 1.

9. The contractors consequently have stopped construction activities in those locations where discrepancies are identified until LAR issues are taken care of and APs are compensated for any additional impact that was not foreseen in the project LARP.

10. As the design changes are very case specific and not interrelated, these are presented in a larger CAP. Having one CAP instead of many smaller ones would have made the overall picture of the additional impacts hard to follow and allows to create a better oversight on the unforeseen impact and consequent actions taken. These impacts and respective corrective actions envisaged to compensate and/or provide rehabilitation allowance based on the provisions in the LARP are presented in the following sub-sections of this plan. 2. METHODOLOGY 11. CAP-3 assesses the unforeseen Project impact and provides details on required compensation and restoration measures based on the final detailed road design. It is developed based on a thorough analysis of the impact of the project on the Affected People (APs) which served as a bases for preparation of compensation and rehabilitation measures. The impact assessment details loss of land, structures, improvements, trees and other assets located in the project affected area. The following activities were undertaken to make an inventory of all unforeseen resettlement impacts of the Project:

• Detailed Measurement Survey (DMS) – to measure the affected area of the lands, as well as the number and types of the affected assets.

1 https://armroad.am/en/safeguard/social-impact-and-resettlement 2 https://www.adb.org/projects/documents/arm-49244-002-rp 3 https://armroad.am/en/safeguard/social-impact-and-resettlement/monitoring-and-evaluation

7 • Inventory of Losses - to identify and evaluate the characteristics of the lands and other assets to be acquired. • Valuation of Replacement Cost of the Affected Assets as per LARP which is in harmony with RA legislations and ADB SPS - to identify the amount of compensation of lost assets, income and other livelihood sources and allowances for development of the CAP budget. All envisaged entitlements were addressed. • Census Survey - to identify the number and characteristics of Project Affected Households (AHs) and their members such as gender, ethnicity, education, employment status including also certain socioeconomic conditions, particularly the sources of livelihood of AHs. 12. The Census, Socioeconomic Survey along with the detailed measurement surveys and the valuation of affected assets were carried out in the period of June – September 2020. 13. Temporary impact on land involves damages for the cases when (a) public utilities planned to be located in the affected land plots such as sewerage, water pipeline etc. and (b) when the foundation of retaining wall is planned to be constructed on the affected part of the community owned land plots illegally used by the APs. These lands should be covered and returned to the user and can later be used as before.

14. The applied mechanisms of impact assessment and compensation for the temporary impacts are as follows

i. The private-owned land plots are subject for acquisition and compensation both for land and improvements (these cases actually considered as permanent impacts).

ii. For the illegally used affected land plots the compensation will be paid only for improvements done on the affected land by user such as trees, crops, fences etc.

3. IMPACT ASSESSMENT

3.1 IMPACT SUMMARY 15. The Project impact described in this CAP includes impact on land, structures, improvements on lands, trees and bushes, crops and adverse effects on businesses (entrepreneurship). The consequent compensation measures also include severe impact allowance for loss of agricultural income and compensation for residential relocation.

16. The unforeseen impacts affect 16 AHs that involve 60 APs. Out of the 16 AHs, 4 were already included in the LARP, 1 was included in both LARP and CAP 1 and the remaining 11 were new AHs. In terms of impact on land, 13 land plots are affected of which 6 land plots are private and the remaining ones are community owned. Temporary impact on land involved 1 private land plot and 4 community land plots.

8 Table 2: Impact Summary

AH Per AP Per AH without Absolute Plot Impact Size Type of Type of Double number of Impact Category Impact Impact Counting APs Remarks No. m² l.m No. No. No. No. No.

A. Impact on Land A1. Private land 6 733.43 - - 5 15 5 15 - (permanent loss) A2. Private land 1 67.26 - - 1 5 1 5 - (temporary loss) A3. Community land 3 352.55 - - 4 20 3 11 1 AH is included in A1. (permanent loss) A4. Community land 4 1,126.53 - - 7 32 5 23 2 AHs are included in A3, (temporary loss) B. Impact on Structures

B1. Residential structures 3 315.22 - 6 2 3 0 0 2 AHs are included in A1. 1 AHs are included in A1, B2. Non-Residential 1 AH is included in A2, 4 113.18 - 6 4 24 0 0 structures 1 AH is included in A3. 1 AH is included in A4. B3. Business structures 1 102.85 - 4 1 2 0 0 1 AH is included in A1. C. Impact on Fences 2 AHs are included in A1, C1. Fence 6 279.4 - - 6 24 0 0 1 AH is included in A3, 3 AHs are included in A4. D. Impact on Improvements 4 AHs are included in A1, D. Improvements 8 141.53 360.1 1 7 30 0 0 3 AHs are included in A4. E. Impact on Trees/Crops 4 AHs are included in A1, 1 AH is included in A2, E1. Fruit trees/bushes 11 - - 1049 13 53 0 0 3 AHs are included in A3, 5 AHs are included in A4. 1 AH is included in A1, E2. Wood trees 2 - - 17 2 14 0 0 1 AH is included in A2. E3. Decorative bushes 1 - - 6 1 2 0 0 The AH is included in A1. 1 AH is included in A1, E4. Crops 2 9 - - 2 11 0 0 1 AH is included in A4. F. Impact on Business F. Business without tax 1 - - - 2 6 2 6 - declaration G. Vulnerable and Severely Affected AHs 2 AHs are included in A1, G1. AHs losing more 1 AH is included in A2, than 10% of agricultural 6 - - - 8 36 0 0 1 AH is included in A3, income 4 AHs are included in A4 G2. Residential relocated 1 - - - 1 2 0 0 The AH is included in A1. AHs

G3. Vulnerable AHs 0 - - - 0 0 0 0 -

Total ------16 60 -

9 3.2 SOCIO-ECONOMIC PROFILE 17. A census survey was carried out with all AHs in exception of three, of which one household refused to participate,4 one household which was included in CAP-1, and one single owner who deceased.5 Consequently, the census covered 56 APs out of the total 60. The census was aimed to clarify the socioeconomic characteristics of these households including vulnerability levels in accordance with the LARP provisions.

18. According to the census results in terms of gender distribution, 26 individuals or 46.4% of all APs are male and 30 individuals or 53.6% are women. All of the APs are Armenians except for 1 person who has a Greek ethnicity.

19. The age distribution of the APs is presented in the following table. About 78.6% of the APs are aged younger than 56 years old.

Table 3: Age Distribution of APs

Age Number of APs %

0-5 4 7.1 6-15 5 8.9 16-25 11 19.6 26-35 8 14.3 36-45 8 14.3 46-55 8 14.3 56-65 6 10.7 66 and more 6 10.7 Total 56 100

20. 19 APs (33.9% of all APs) are employed with a monthly average income of about AMD 265,000. 12 out of 19 are employees engaged in public and private sector, 1 is active farming and animal husbandry activities for sale, 4 are sole entrepreneurs and 2 are self-employed. The average monthly income of the AHs was 163,125 drams.

21. There are 17 unemployed individuals among the APs of which 14 are seeking employment and 3 do not. None of the unemployed APs (who seek employment) have any additional income. These involve 7 AHs of which the average income is 132,571 AMD. On the other hand of the 3 unemployed APs (who do not seek employment), 1 is an individual with a second-degree disability who has additional income in the form of disability allowance and lives with other working HH members and 1 is engaged in other subsistence farming and animal husbandry activities without sale.

22. There were 6 pensioners with an average pension of AMD 39.333 per month. One of the pensioners has a second-degree disability and receives additional income in form of disability allowance. All of the pensioners lived with other working age HH members. 2 out of 6

4 These households refused to share personal information although they were informed on the purpose of the census and assured that the information would not be used for any other purposes. 5 The deceased AP was affected initially and was included in the by LARP. There were initially no heirs identified consequently the compensation was transferred to the escrow account. Nevertheless, the RD recently has identified family members of the AP who live abroad and is currently actively discussing the transfer of ownership. Yet if this is not solved in 3 months then the compensation will again be transferred to the court escrow account.

10 pensioners are members of the same AH.

Table 4: Employment Status

Employment Status No. % HH heads % Employed 19 33.9 7 53.8 Pensioner** 6 10.7 3 23.1 Pupil/Student 11 19.6 0 0 Unemployed (looking for job)** 14 25.0 1 7.7 Unemployed (not looking for job)** 3 5.4 2 15.4 Not applicable 3 5.4 0 0 Total 56 100.00 13* 100 *13 of the total 16 AHs participated in the census. As described in paragraph 17, 1 of the remaining 3 AHs refused to participate in the census, 1 AH was included in CAP-1, and 1 single owner deceased. ** The AHs with unemployed HH heads and pensioner HH heads do not meet vulnerability criteria.

23. A large number of the APs (38%) have completed secondary education. The second and third largest of the APs group obtained vocational education (18%) and higher education (16%).

24. There were no vulnerable AHs identified in accordance with the LARP criteria.

3.3 IMPACT ON LAND 25. 13 land plots are impacted of which 7 involved community lands in Alaverdi city and Haghpat communities and 6 privately owned land plots located Alaverdi city and Haghpat and Archis communities. The impact on land involves both permanent and temporary land impact. 9 are permanently and 4 are temporary affected land plots (one land plot has both permanent and temporary impact). On all plots fruit trees are cultivated and some improvements were made, all of which are reflected in the LAR impact budget.

Table 5: Temporary Impact on Land

Private land Community land Total Community Type of usage Affected Affected Affected Plots AHs Plots AHs Plots AHs Area Area Area No m² No No m² No No m² No Lot 1 Alaverdi Residential other - - - 1 25.6 1 1 25.6 1 Lot 2 Agricultural other - - - 1 431.15 2 1 431.15 2* Alaverdi Residential other 1 265.87 2 1 265.87 2 Commercial 1 67.26 1 - - - 1 67.26 1 Haghpat Industrial other - - - 1 403.91 2 1 403.91 2** Total lot 2 1 67.26 1 3 1100.93 6 4 1168.19 7 Total 1 67.26 1 4 1,126.53 7 5 1,193.79 8 * There are 2 AHs to be using 1 community land plot ** There are 2 community land plots with 2 AHs on each

11 26. In terms of temporary impact 5 land plots used/owned by 8 AHs with a total area of 1193.79 sq m. will suffer temporary impact. The impact on these land plots will be due to earth works after which the affected area can again be utilized. As described in ANNEX 1, embankment is needed to be carried out in three of the cases, regarding one of the cases a retaining wall needs to be constructed and subsequently back filling will be carried out and the remaining case involves placement of drainage pipe. Once these works are completed, the land will be brought to previous state and can be reused again. 27. The 5 temporary impacted land plots involve 4 community plots and 1 private plots located in Alaverdi and Haghpat respectively. The private land is commercial with garage and planted fruit and wood trees. According to the impact assessment definition, this is subject for permanent acquisition, but the AP specifically requested the RD not to carry out permanent expropriation of the land and so compensation for temporary impact has been done on the request of the AP (please see ANNEX 2). Out of 3 community lands 1 is agricultural and 2 are residential land plots of the category “other land plots”. These lands are located next to residential buildings of APs, where fruit trees are planted. The remaining land plot where there is both permanent and temporary impact is used by 2 APs and belongs to the category “Industrial - other land”. Here, the temporary impact involves impact on fruit trees.

Table 6: Permanent Impact on Land

Private Land Community Land Total Affected Affected Affected Plots AHs Plots AHs Plots AHs Community Type of usage Area Area Area No. m² No. No m² No No m² No Lot 1 Residential 4 643.05 3 1 25.56 1 5 668.61 4 Alaverdi Residential other - - - 1 226.95 1 1 226.95 1 Total lot 1 4 643.05 3 2 252.51 2 6 895.56 4 Lot 2 Commercial 1 54.40 1 - - - 1 54.40 1 Alaverdi Industrial other - - - 1 100.04 2 1 100.04 2 Haghpat Total lot 2 1 54.40 1 1 100.04 2 2 154.44 3 Lot 3 Hydroelectric plant 1 35.98 1 - - - 1 35.98 1 Artchis maintenance Total lot 3 1 35.98 1 - - - 1 35.98 1 Grand total 6 733.43 5 3 353 4 9 1,085.98 8

28. In terms of permanent land impact 9 land plots with a total size of 1085.98 sq m. were impacted permanently of which 3 involved community lands and 6 privately owned land plots. The 9 permanently affected community land plots are located in Alaverdi city and Haghpat and Artchis communities and are used by 8 AHs.

29. Of the permanently affected private land plots 1 is residential land that is used as a garden, 3 involve plots with affected residential buildings and support structures, 1 is commercial land were fruit trees are planted and 1 land is used for hydroelectric plant maintenance and has a guard house and trees on it. Of the 3 community land plots with permanent impact; 1 is residential and 1 “residential other” category lands which are used by 2 AHs. These two lands are located next to residential buildings of APs, where fruit trees are planted. One industrial other land with fruit trees is used by 2 AHs.

12 3.4 IMPACT ON STRUCTURES AND IMPROVEMENTS 30. In total 16 structures are affected which involves 6 residential structures with affected 3 main houses and their supporting structures, 6 non-residential structures and 4 business structures (the complete list of residential and non-residential buildings is provided in the following tables). The affected structures involved both illegal (non-registered) and legal structures. Out of 16 structures 10 are legal (6 residential and 4 business structures) on private land plots and will be compensated at replacement cost plus 15%, 6 non-residential structures are illegal, out of which 3 are on private lands and will be compensated at replacement cost, and 3 on community land plots for which the legalization cost6 will be deducted from replacement cost (see Table 19). From 3 illegal non-residential structures on community lands 1 involves a pigsty, 1 a closet and 1 a pool which serves a reservoir for watering the orchard. In order to legalize these 3 structures, the APs have been informed about the procedures to purchase the land plots from community through auction and were properly guided during consultations that all required legal and technical assistances will be provided to them by the RD to apply for legalization. All 2 AHs illegally using these 3 structures did not wish and were not interested in legalization of the structures.

31. Six residential structures are affected that are located on 5 affected land plots. All six residential structures are legal and are located on private land plots. The residential structures include a residential house of 299.92sq m. and other supporting structures which together with the house cover an area of 315.22 sq m. 3 of these structures are residential houses belonging to 2 AHs. 1 of the AHs with impacted residential house will be relocated and other who is deceased and will therefore not be relocated.

Table 7: Impact on Residential Structures

Legal status Plots Structure Total AHs Name Material of land No No m² No Lot 1 A. House Private Residential house Stone 3 3 299.92 2* B. Supporting Structures Platform Stone 1 1 10.26 1 Private Boiler house Stone 1 2.52 1 1 Hencoop Stone 1 2.52 Subtotal B. - 2 3 15.3 2 Total A+B (without double counting) - 5 6 315.22 2 * There is 1 AH with 2 private land plots. 1 of the AHs with impacted residential house will be relocated and other who is deceased and will physically not be relocated.

32. The total impact on non-residential structures involves 10 structures that are located on 5 land plots. These cover an area of 2136 sq m., of which 142.65 sq m. involves legal structures and the remaining 73.35 sq m. are illegal structures. 1 of the cases of impact on non- residential structures involved a pigsty constructed on community land. The impact on business structures involved a car-wash, a non-operating office, a catering facility and a shed. All businesses are included in one building. The car-wash is used by family member of the owner and the catering facility is used by women to prepare food.

6 The legalization cost for 3 structures amounts to 1.5%, 3.7% and 7% of total replacement cost.

13 Table 8: Impact on Non-residential Structures

Legal status Type of Plots Structure Legal Illegal Total AHs Material of land Structure No No m² m² m² No Lot 1 A. Non Residential Structures Community Pigsty Stone 1 1 - 45.28 45.28 1 Total Lot 1 1 1 - 45.28 45.28 1 Lot 2 A. Non Residential Structures Private Garage Stone 1 1 39.8 - 39.8 1 Closet Stone 1 - 5.5 5.5 Community 1 1 Pool Stone 1 - 6 6 Subtotal A. 2 3 39.8 11.5 51.30 2 B. Business Structures Car-wash Stone 1 19.4 - 19.4 Non-operating Stone 1 23.9 - 23.9 Private office 1 1 Catering facility Metal/stone 1 24.3 - 24.3 Shed Metal 1 35.25 - 35.25 Subtotal B. 1 4 102.85 - 102.85 1 Total Lot 2 3 7 142.65 11.5 154.15 3 Lot 3 A. Non Residential Structures Guard house Stone 1 - 11.07 11.07 Private 1 1 Shed Metal/stone 1 - 5.53 5.53 Total Lot 3 1 2 - 16.60 16.60 1 Grand total 5 10 142.65 73.38 216.03 5 Table 9: Impact on Fences (Walls)

Item: Plots Area AHs Material Affected Fence No. m² No. Lot 1 river stone 37 Private land 1 1 basalt stone 32.2 Community land river stone 3 60 3 Total lot 1 (without double counting) 4 129.2 3* Lot 2 Community land river stone 1 115.2 2** Lot 3 Private land r/f concrete 1 35 1 Grand total 6 279.4 6 * There is 1 AH to be using both Private and community land plots ** There are 2 AHs to be using one community land plot

33. In total 6 stone fences with a total span of 279.4 sq m. will be impacted. This belong to 6 different AHs. There are cases where the land plot is used by the same household and a case where the same household uses two land plots. Three of the fences were stone fences located on community land with temporary loss and can be reconstructed.

14 34. In addition to the above mentioned also other improvements - which belong to 7 AHs - will be impacted. These include metal fences, a retaining wall made of concrete, piping etc. which are specified in the following table.

Table 10: Impact on Other Improvements

Legal Status of Affected Plots Area Length AHs Material No. Land Improvements No. m² l.m. No. Lot 1 Pipe d=50mm metal 1 - 30 - 1 Private land Railing metal 1 - 8 - 1 Fence wood 1 - 6 - Community land Fence metal wire 1 - 10 - 1 Total lot 1 4 - 54 - 2 Lot 2 Private land Retaining wall r/f concrete 1 136 - - 1 Pipe d=50mm metal 1 - 150 - 2 Community land Fence metal wire 2 - 140 - 3 Door metal 1 - - 1 1 Total lot 2 3 136 290.00 1 4 Lot 3 Fence metal wire/tube - 16.1 - Private land 1 1 Area Concrete 5.53 - - Total lot 3 1 5.53 16.1 - 1 Grand total 8 141.53 360.1 1 7

3.5 IMPACT ON BUSINESS 35. In total 2 AHs will permanently lose 2 businesses. Both businesses are without tax declaration. Businesses are located on one land plot. The affected businesses involved a car-wash and catering facility.

Table 11: Impact on Businesses

Without tax Land plot AHs No Description declaration No No No Lot 2 1 Car-wash 1 1 1 2 Catering facility 1 1 Total 2 1 2 3.6 IMPACT ON TREES AND BUSHES 36. A total of 1049 fruit trees and 630 bushes were impacted. Almost all of the trees 1025 were already fruit bearing and the remaining involved seedlings and not yet productive trees. The impact on trees and bushes affected 13 AHs. The trees and bushes were located on 11 affected land plots. Most affected fruit trees are figs, plums and cornels, and from fruit bushes are raspberries and dewberries.

15 Table 12: Impact on Fruit Trees and Bushes

Seedling Not yet productive Fruit-Bearing Total Type Trees No. Trees No. Trees No. Trees No. A. Fruit Bushes Raspberry - - 480 480 Currant - - 50 50 Dewberry - - 100 100 Subtotal A. - - 630 630 B. Fruit Trees Cherry - - 7 7 Guelder-rose - - 9 9 Peach - - 11 11 Medlar - - 3 3 Walnuts - - 22 22 Fig - - 83 83 Mulberry 1 - 45 46 Grapes - - 17 17 Apple - - 14 14 Date - - 10 10 Apricot - - 15 15 Persimmon 4 - 10 14 Cornel - - 43 43 Plum 2 14 67 83 Quince 1 1 13 15 Pear - - 8 8 Hazelnut - 1 18 19 Oleaster - - 3 3 Subtotal B. 8 16 395 419 Total A+B 8 16 1025 1049

37. Next to fruit trees and bushes, 17 wood trees are impacted. All of these were planted on private lands which were owned by 2 AHs. These primarily involved Acacias.

Table 13: Impact on Wood Trees

Legal Small (0-13cm) Medium (13-22cm) Total Type of status of Trees Plots Trees Plots Trees Plots AHs wood tree land No. Nօ․ No. Nօ․ No. Nօ․ No. Lot 1 Private Ailanthus 1 1 - - 1 1 1 Lot 2 Ulmus 1 1 - - 1 Private 1 1 Acacia - - 15 1 15 Total Lot 2 1 1 15 1 16 1 1 Grand total 2 2 15 1 17 2 2

38. The impact on decorative bushes was limited to 6 decorative bushes which were located on a private land plot in Lot 1.

16 Table 14: Impact on Decorative Bushes

Legal Status of Affected decorative Large Land bushes Trees No. Plots No. AHs No. Lot 1 Lilac 3 Private 1 1 Noble rose 3 Total 6 1 1

3.7 IMPACT ON CROPS 39. There is relatively limited impact on crops as only two land plots were impacted. The impact on crops involved impact on decorative flowers and strawberries on two separate land plots.

Table 15: Impact on Crops

Plots Area AHs Legal status of land Type of Crops No. m² No. Lot 1 Private Decorative flowers 1 3 1 Lot 2 Community Strawberry 1 6 1 Total 2 9 2

17 4. RESETTLEMENT BUDGET

4.1 COMPENSATION FOR LOSSES 40. The total cost for the compensations in this CAP involves 187,340,673.35 AMD (equal to 386,269 USD). The payments will be made from the 2020 state budget envisaged for budget lines 4823 and 4861 of the 11007 event of the 1049 “Armenia-Georgia Border Regional Road (M6 Vanadzor-Bagratashen) Improvement Project coordination and management” program. The compensation to be paid was calculated based on LARP provisions and is in harmony with the Project LARP entitlements and ADB safeguard policy.

Table 16: Budget Summary

Item Total/AMD Compensation for private and community lands 2,439,670.95 (Including 15% surcharge) Compensation for buildings 114,001,841.80 Compensation for fences 6,572,333.00 Compensation for improvements 7,423,565.00 Compensation for transportation 282,000.00 Compensation for fruit trees and bushes 48,082,774.60 Compensation for wood trees 139,020.00 Compensation for decorative trees 10,200.00 Compensation for crops 9,528.00 Compensation for businesses 1,632,000.00 Allowances to Severely AHs losing more than 10% of agricultural income 5,352,740.00 Allowances to Severely Affected AHs to be relocated 408,000.00 Livelihood restoration allowance 68,000.00 State registration and notarial services (alienation) and expense for cadastral 919,000.00 drawing registration-registration services for all lands Total (AMD) 187,340,673.35 Total (USD)* 386,269.43

41. The total compensation for land accounted for 2,439,670 AMD. The compensation for the legal owner (both private and community owners) was calculated as the market value plus 15% which is in accordance with the RA Law on Eminent Domain and the Project LARP.

42. Land compensation for community lands (with non legalizible land users) is provided to the affected communities which are represented by the Heads of the Communities. In a case, where structures, trees, crops and other improvements on community land plots are made by the APs and not by the community, then the compensation for such impacts is provided to the APs. In total there are 7 illegal user AHs on community land plots.

Table 17: Compensation for Land

Total Affected Average Unit Plots Total Cost Compensation Community Type of usage Area Price (including 15%) No. m² AMD AMD AMD Lot 1 Private land

18 Total Affected Average Unit Plots Total Cost Compensation Community Type of usage Area Price (including 15%) No. m² AMD AMD AMD Residential 4 643.05 1,860.00 1,196,073.00 1,375,483.95 Community land Residential 1 25.56 1,860.00 47,541.60 54,672.84 Alaverdi Residential other 1 226.95 1,340.00 304,113.00 349,729.95 Subtotal 2 252.51 - 351,654.60 404,402.79 Total lot 1 6 895.56 - 1,547,727.60 1,779,886.74 Lot 2 Private land Alaverdi Commercial 1 54.4 7,500.00 408,000.00 469,200.00 Haghpat Community land Industrial other 1 100.04 1,020.00 102,040.80 117,346.92 Total lot 2 2 154.44 - 510,040.80 586,546.92 Lot 3 Private land Hydroelectric plant 1 35.98 1,770.00 63,684.60 73,237.29 Artchis maintenance Total lot 3 1 35.98 - 63,684.60 73,237.29 Grand total 9 1,085.98 - 2,121,453.00 2,439,670.95

43. Regarding illegal structures, the AHs that constructed those on community lands, will be compensated with the amount equal to replacement cost of the illegal structure minus the legalization costs. All residential structures regardless of their legal status will be compensated as full replacement cost plus 15%. Illegal structures on private land are valuated and are compensated with full (100%) replacement cost. In terms of legal structures on private lands, in accordance with the LARP entitlement, loss of legal buildings will be compensated as full replacement cost of the building plus 15% extra charge.

44. There are 6 residential structures impacted including a residential house for which the compensation equals to 78,909,943 AMD. Residential structures will be compensated with an amount equal to the full replacement cost free of depreciation and salvaged materials and decrement of transaction costs plus 15%.

Table 18: Compensation for Residential Structures

Total Average Legal Structure Total Total Cost Compensation Unit Price status Name Material (including 15%) of land No m² AMD/m² AMD AMD Lot 1 A. House Private Residential house Stone 3 299.92 225,083.52 67,507,048.00 77,633,105.20 B. Supporting Structures Platform Stone 1 10.26 55,900.00 573,534.00 659,564.10 Private Boiler house Stone 1 2.52 106,500.00 268,380.00 308,637.00 Hencoop Stone 1 2.52 106,500.00 268,380.00 308,637.00 Subtotal B. - 3 15.3 - 1,110,294.00 1,276,838.10 Total A+B - 6 315.22 - 68,617,342.00 78,909,943.30

19

45. In terms of structures, there are 10 non-residential structures impacted of which the total compensation equaled to 35,091,898 AMD. These included both legal and illegal structures on privately owned lands and illegal structures on community lands.

Table 19: Compensation for Non-Residential Structures

Average Total Cost Legaliz Total Legal Type of Structu Plots Legal Illegal Total Unit (Replacement ation Compensat status of Structu Material re sq.m sq.m sq.m. Price cost) cost ion land re No No AMD/m² AMD AMD AMD Lot 1 A. Non Residential Structures Commun Pigsty Stone 1 1 - 45.28 45.28 110,700 5,012,496 76,976 4,935,520 ity Total lot 1 1 1 - 45.28 45.28 - 5,012,496 76,976 4,935,520 Lot 2 A. Non Residential Structures Private Garage Stone 1 1 39.8 - 39.8 110,700 4,405,860 - 5,066,739 Commun Closet Stone 1 - 5.5 5.5 45,100 248,050 9,350 238,700 1 ity Pool Stone 1 - 6 6 24,000 144,000 10,200 133,800 Subtotal A. 2 3 39.80 11.5 51.30 - 4,797,910 19,550 5,439,239 B. Business Structures Car- Stone 1 19.4 - 19.4 315,250 6,115,850 - 7,033,227.5 wash Non- operatin Stone 1 23.9 - 23.9 169,750 4,057,025 - 4,665,578.75 Private g office 1 Catering Metal/ 1 24.3 - 24.3 315,250 7,660,575 - 8,809,661.25 facility stone Shed Metal 1 35.25 - 35.25 65,000 2,291,250 - 2,634,937.50 Subtotal B. 1 4 102.85 - 102.85 - 20,124,700 - 23,143,405 Total lot 2 3 7 142.65 11.5 154.15 - 24,922,610 28,661,001.5 Lot 3 A. Non Residential Structures Guard Stone 1 - 11.07 11.07 117,100 1,296,297 - 1,296,297 house Private 1 Metal/ Shed 1 - 5.53 5.53 36,000 199,080 - 199,080 stone Total lot 3 1 2 - 16.60 16.60 - 1,495,377 - 1,495,377 Grand total 5 10 142.65 73.38 216.03 - 31,430,483 76,976 35,091,898.5

46. Adjacent improvements such as stone fences on private lands will similarly to residential structures be compensated with an amount equal to the full replacement cost free of depreciation plus 15%. In total 6 fences with a total covered area of 279.4 sq m. meters is affected. The total compensation for affected fences involves 6,572,333 AMD.

20 Table 20: Compensation for Fences

Total Cost Total Legalization Item: Plots Area Unit Price (Replacement Compensation Material cost Affected Fence cost) (including 15%) No. m² AMD/m AMD AMD AMD Lot 1 river stone 37 20,800.00 769,600.00 - 885,040.00 Private land 1 basalt stone 32.2 29,100.00 937,020.00 - 1,077,573.00 Community land river stone 3 60 20,800.00 1,248,000.00 60,720.00 1,187,280.00 Total lot 1 4 129.2 - 2,954,620.00 60,720.00 3,149,893.00 Lot 2 Community land river stone 1 115.2 20,800.00 2,396,160.00 198,720.00 2,197,440.00 Lot 3 Private land r/f concrete 1 35 35,000.00 1,225,000.00 - 1,225,000.00 Grand total 6 279.4 - 6,575,780.00 259,440.00 6,572,333.00

47. Any other improvements on the affected properties will be compensated with an amount equal to replacement cost which adds to 7,423,565 AMD.

Table 21: Compensation for Improvements

Legal Status of Affected Plots Area Length Unit Price Compensation Material No. Land Improvements No. m² m AMD AMD Lot 1 Pipe d=50mm metal 1 - 30 - 3,500.00 105,000.00 Private land Railing metal 1 - 8 - 4,500.00 36,000.00 Fence wood 1 - 6 - 4,000.00 24,000.00 Community land Fence metal wire 1 - 10 - 3,300.00 33,000.00 Total lot 1 4 - 54 - - 198,000.00 Lot 2 Private land Retaining wall r/f concrete 1 136 - - 45,000.00 6,120,000.00 Pipe d=50mm metal 1 - 150 - 3,500.00 525,000.00 Community land Fence metal wire 2 - 140 - 3,300.00 462,000.00 Door metal 1 - - 1 15,000.00 15,000.00 Total lot 2 3 136 290.00 1 - 7,122,000.00 Lot 3 metal Fence - 16.1 - 4,200.00 67,620.00 Private land wire/tube 1 Area Concrete 5.53 - - 6,500.00 35,945.00 Total lot 3 1 5.53 16.1 - - 103,565.00 Grand total 8 141.53 360.1 1 - 7,423,565.00

48. Compensation for fruit trees and lost harvest from bushes is at market value based on type, age and productive value of the trees. The total compensation for the impacted productive bushes and trees amounted to 48,082,774.60 AMD (Bushes 825,217.60) + (Fruit trees 47,257,557). Further detailed breakdown of the compensation for productive trees and bushes is presented in the Table 23.

21 4.2 COMPENSATION FOR LOSS OF BUSINESS 49. In accordance with LARP provisions, in absence of tax declaration, permanent losses caused by stoppage of business (entrepreneurship) will be compensated in cash equal to a 1-year net minimum monthly salary. Two businesses were affected by the project which will together receive a total compensation equal to 1,632,000 AMD.

Table 22: Compensation for Businesses

Total compensation Income Net monthly Business Total including registration months income costs No No AMD AMD AMD

2 12 68,000.00 7 816,000.00 1,632,000.00

7 The RA Law on Minimum Monthly Wage (66-N), adopted on December 17, 2003. The first clause of this law (which specifies the rate of the minimum monthly wage) was revised in November 2019 (223-N) due to which the applied minimum wage rate increased from 55,000 AMD to 68,000 AMD. The applicable rate of minimum monthly wage remains unchanged since 2019. Link: https://www.arlis.am/DocumentView.aspx?docID=137616

22 Table 23: Compensation for Fruit Trees and Bushes

Seedling Not yet productive Fruit-Bearing Total Years to Total Total Total Annual Unit re-grow to Type Trees Unit Cost Compensatio Trees Unit Cost Compensatio Trees Unit Cost Compensatio Trees Compensation yield cost productive n n n level AMD/tr AMD/tr AMD/ AMD/tr No. AMD No. AMD No kg No AMD No. AMD ee ee kg ee Fruit Bushes Raspberry ------480 0.2 840 3 788.22 378,345.60 480 378,345.60 Currant ------50 6 600 3 7,613 380,650 50 380,650 Dewberry ------100 0.2 630 3 662.22 66,222 100 66,222 Subtotal A. ------630 - - - - 825,217.60 630 825,217.60 Fruit Trees Cherry ------7 20 320 4 32,660 228,620 7 228,620 Guelder-rose ------9 30 250 6 54,960 494,640 9 494,640 Peach ------11 40 330 3 42,811 470,921 11 470,921 Medlar ------3 30 300 5 54,610 163,830 3 163,830 Walnuts ------22 30 1240 6 240,596 5,293,112 22 5,293,112 Fig ------83 40 800 4 137,440 11,407,520 83 11,407,520 Mulberry 1 41,730 41,730 - - - 45 90 420 4 160,140 7,206,300 46 7,248,030 Grapes ------17 25 330 4 40,690 691,730 17 691,730 Apple ------14 50 350 6 114,960 1,609,440 14 1,609,440 Date ------10 20 800 7 126,450 1,264,500 10 1,264,500 Apricot ------15 80 480 6 242,680 3,640,200 15 3,640,200 Persimmon 4 46,930 187,720 - - - 10 50 840 5 221,610 2,216,100 14 2,403,820 Cornel ------43 20 480 4 46,460 1,997,780 43 1,997,780 Plum 2 17,885 35,770 14 34,010 476,140 67 30 310 4 44,760 2,998,920 83 3,510,830 Quince 1 47,600 47,600 1 93,440 93,440 13 25 850 6 139,280 1,810,640 15 1,951,680 Pear ------8 60 720 6 269,660 2,157,280 8 2,157,280 Hazelnut - - - 1 120,896 120,896 18 20 1060 6 144,596 2,602,728 19 2,723,624 Oleaster ------3 40 530 5 117,110 351,330 3 351,330 Subtotal B. 8 - 312,820 16 - 690,476 395 - - - - 46,605,591 419 47,257,557 Total A+B 8 - 312,820 16 - 690,476 1025 - - - - 47,430,808.60 1049 48,082,774.60

50. 17 wood trees are impacted of which the total compensation equals to 139,020 AMD. Wood trees are categorized and valued according to the following groups (a. small trees; b. medium trees and c. big trees). The affected wood trees primarily were medium sized trees.

Table 24: Compensation for Wood Trees

Legal Type of Small (0-13cm) Medium (13-22cm) Total status wood Trees Unit price Compensation Trees Unit price Compensation Trees Compensation of land tree No. AMD/ tree AMD No. AMD/ tree AMD No. AMD Lot 1 Private Ailanthus 1 2,310 2,310 - - - 1 2,310 Lot 2 Ulmus 1 2,310 2,310 - - - 1 2,310 Private Acacia - - - 15 8,960 134,400 15 134,400 Total lot 2 1 - 2,310 15 - 134,400 16 136,710 Grand total 2 - 4,620 15 - 134,400 17 139,020

51. The total compensation for the 6 affected decorative trees and bushes equals to 10,200 AMD. In accordance to the LARP methodology, decorative trees and bushes are categorized and valued according to the following groups (a. small trees; b. medium trees and c. big trees) based on the type of tree and indicators such as: timber volume, height of the tree etc.

Table 25: Compensation for Decorative Trees and Bushes

Large Type of land Affected decorative bushes Trees Unit price Compensation No. AMD/ tree AMD Lot 1 Lilac 3 2,500 7,500.00 Private Noble rose 3 900 2,700.00 Total 6 - 10,200

52. As indicated the impact with regard to crops was rather limited. The total compensation for crops equaled to 9,528 AMD.

Table 26: Compensation for Crops

Annual Total Unit price Total Plots Price Area Legal status Type of Productivity Loss per m² Compensation of land Crops No. kg/ m² AMD/m² m² Kg AMD AMD Lot 1 Decorative Private 1 1 2,180 3 3 2,180 6,540 flowers Lot 2 Community Strawberry 1 0.6 830 6 3.6 498 2,988 Total 2 - - 9 6.6 - 9,528

4.3 ALLOWANCES 53. 8 AHs have lost more than 10% of their agricultural income due to the additional impact of the project as a results all 8 will receive severe impact allowance as envisaged in the project LARP entitlement. Also one AH that will be relocated will receive rehabilitation allowance for severe impacts equal to monthly minimum salary for 6 months which sums up to 408,000 AMD. The total cost for the severe impact allowances is 5,760,740 AMD.

Table 27: Compensation for Severe impact

Plots AHs Unit cost* Compensation Community Category No. No. AMD AMD Lot 1 Severely AHs losing more than 10% of 2 2 322,075 644,150 Alaverdi agricultural income Severely Affected AHs to be relocated 1 1 408,000 408,000 Total lot 1 3 3 - 1,052,150 Lot 2 Alaverdi Severely AHs losing more than 10% of 3 5 859,608 4,298,040 Haghpat agricultural income 1 1 410,550 410,550 Total lot 2 4 6 - 4,708,590 Grand total (without double counting) 7 9 - 5,760,740 * The allowances were calculated individually for each AH. The unit costs in this table represent the average amounts. **There are 2 community land plots with 2 AHs on each

54. Additionally, a livelihood allowance equal to one-month minimum salary is provided to the AH that will need to be physically relocated. Livelihood restoration allowance envisaged for this AH will equal to 68,000 AMD.

Table 28: Livelihood Restoration Allowance

Livelihood restoration AHs Unit Rate Total Lot 1 allowance No AMD AMD Total 1 68,000.00 68,000.00

55. Relocation allowance is envisaged for those AHs that need to relocate their assets. This is calculated taking into account the costs that will be incurred for the transportation of movable assets in accordance to LARP provisions. Transportation costs are determined according to the average cost of such services offered by several freight shipping organizations available in the market. The calculation allows the APs to move their property within a 20 km radius.

Table 29: Allowance for Transportation Costs

Type of allowance for Trips required Unit rate Total Compensation transportation assets No. AMD AMD Lot 1 Aygehat Small gabarits 8 35,250 282,000

4.4 REGISTRATION COSTS 56. All registration costs have been covered by the RD. Registration costs were calculated for each property separately. The total registration costs equaled to 919,000 AMD. This included

25 expenses related to a) notary services and any payments of state taxes, b) state taxes to the state cadastral registration body, and c) taxes related to the registration of ownership rights and compensation.

Table 30: Compensation for Registration Costs

Cadastral expenses Notary expenses Court expenses Community Total (AMD) (AMD) (AMD) (AMD) Lot 1 Alaverdi 417,000 241,000 24,000 682,000 Lot 2 Alaverdi 35,000 20,000 4,000 59,000 Haghpat 61,000 20,000 4,000 85,000 Total lot 2 96,000 40,000 8,000 144,000 Lot 3 Artchis 61,000 28,000 4,000 93,000 Grand total 574,000 309,000 36,000 919,000

26 5. CONSULTATION AND INFORMATION DISCLOSURE

58. All consultation and information disclosure elements envisaged in the LARP and ADB policy were implemented during DMS. Each AH was consulted taking into account regulations related to COVID19.

59. In terms of notification and consultation of APs, during the individual meetings and consultations was disclosed the information on the compensation entitlements of the APs, the already established and functioning Grievance Readdress Mechanism (GRM) system, the schedules and procedures for the implementation of the CAP, obligations and documents required for the signing of acquisition contract etc. The information brochure was provided to all APs as well.

60. The heads of affected communities will once again be informed on the stages and schedule of CAP implementation process. The approved final CAP will also be disclosed to the APs and community members.

61. The details on GRM with contact details was already posted in all community administration offices upon start of LARP implementation. The well-functioning GRM system and close communication line with the APs allowed detection of the unforeseen impact and prevention of uncompensated impact.

62. The notification procedure defined by the “RA Law on alienation of the property for public and state purposes” will be implemented. Acquisition contracts together with cover letters will be prepared and delivered to the APs before the deadline defined by the Law and Eminent Domain Decree. Particularly the APs will receive the following notifications as defined by the Law:

• Notification of signed/not signed protocols (according to the Article 7 of the Law), • Notification of draft acquisition contracts and agreements on affected assets, • Notification on depositing the compensation amount to court deposit, where applicable, • Notification of the start of expropriation (court) proceeding, where applicable.

6. CAP IMPLEMENTATION

63. The RD conducted the DMS in the affected locations to clarify the impact. An Eminent Domain decree will be adopted by the RA Government regarding the affected properties described in this CAP. Already a draft with the list of affected land plots is sent to the government for approval and adoption and the decree is expected in October 2020.

64. The signing of the agreements are ongoing, and as soon as ADB’s no objection is obtained with regard to this CAP, then during three working days the agreements and contracts can be signed with the APs. CAP implementation is expected to take about 1 week in total.

65. The APs will then be compensated in accordance with the LARP entitlement matrix. All necessary expropriations will be carried out in accordance with the LARP provisions and APs will receive full compensations accordingly.

66. The compensation amount will be transferred to the bank accounts specified by the APs. Opening of new bank accounts will be carried out as needed. In case of the one deceased

27 AP; as there are no heirs known, once the eminent domain will be adopted, in accordance with the RA legislation after a 3-month period the expropriation of the land plot that belonged to the deceased AP will be initiated through a legal process.

Table 31: CAP Implementation and Monitoring Schedule

N Action Start, date End, date 1 GoA decree on Eminent Domain and its coming into force 04-Sep-20 28-Dec-20 2 1. Preparation and signing of property description protocols 3 Preparation of description protocols 17-Aug-20 24-Aug-20 4 Signing of description protocols 24-Aug-20 26-Aug-20 5 The notification of property description protocols for all land plots 22-Sep-20 29-Sep-20 6 2. Agreement/contract signing 7 Preparation of draft agreement contracts 19-Apr-21 23-Apr-21 8 The notification of draft agreement contracts 26-Apr-21 30-Apr-21 9 The signing of agreement contracts 03-May-21 30-July-21 10 3. Transferring the compensation to deposit account 11 Transfer of compensation amount to the APs account 2-Aug-21 16-Aug-21 12 4. Monitoring and reporting

13 Involvement of EMIC/individual consultant 9-Aug-21 27-Aug-21

14 Preparation and submission to ADB of compliance report of CAP-3 30-Aug-21 03-Sep-21

67. The contractor has planned to complete the construction activities in a time period of 1.5 months. 7. CAP MONITORING

68. The CAP implementation will be monitored both internally and externally. The RD and Supervision Consultant/Engineer will be responsible for the internal monitoring. The project is categorized as category B in terms of IR for which external monitoring is not required, however, it has been defined by the LARP that an External Monitoring Individual Consultant (EMIC) will be engaged for LARP implementation monitoring purpose.

69. The procurement process with regard to the services of the EMIC is finalized. The EMIC was hired by the RD since March 29, 2021 and will be responsible for preparation of compliance report confirming implementation of this CAP in full. Moreover, the EMIC will conduct external monitoring of 8 completion report (CR) for each LARP implementation phase.

28 ANNEX 1. DESCRIPTION OF DESIGN CHANGES (CHANGES TO LAR BOUNDARY)

Location Chainage Chainage Type of ID Community Ownership LOT Description of Design Changes (left, right) start finish affection 1 Alaverdi left 47+525 47+540 Community Permanent 1 A retaining wall needs to be constructed 2 Alaverdi left 47+540 47+580 Private Permanent 1 A retaining wall needs to be constructed 3 Alaverdi left 47+580 47+630 Community Permanent 1 A retaining wall needs to be constructed 4 Alaverdi left 47+630 47+685 Private Permanent 1 A retaining wall needs to be constructed 5 Alaverdi left 47+685 47+695 Private Permanent 1 A retaining wall needs to be constructed 6 Alaverdi left 47+705 47+720 Private Permanent 1 A retaining wall needs to be constructed 7 Alaverdi left 48+120 48+150 Community Temporary 1 Embankment is needed to be carried out 8 Alaverdi left 50+350 50+395 Community Temporary 2 Embankment is needed to be carried out Demolition of structures located next to the 9 Alaverdi right 50+630 50+650 Private Permanent 2 bridge is needed to ensure safety standards. 10 Alaverdi left 53+850 53+900 Community Temporary 2 An embankment needs to be carried out 11 Haghpat left 56+215 56+228 Private Temporary 2 Main water pips for rains need to laid Temporary A retaining wall needs to be constructed after 12 Haghpat right 61+710 61+760 Community and 2 which back filling will be carried out Permanent 13 Artchis right 76+445 76+465 Private Permanent 3 The right side of the bridge is widened