Land Acquisition and Resettlement Plan

March 2020 (Draft)

Loan 3285-UZB: Northwest Region Power Transmission Line Project:

Guzar-Regar 500 kV Power Transmission Line Rehabilitation Project

This Land Acquisition and Resettlement Plan (LARP) was prepared by the Resettlement Unit Officer on behalf of National Electric Networks of Uzbekistan for the Asian Development Bank (ADB)

The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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.

Land Acquisition and Resettlement Plan ______

Document: Land Acquisition and Resettlement Plan (draft) Document Stage: Preliminary consultation project Date: March 2020

Republic of Uzbekistan: Northwest Region Power Transmission Line Project ADB Loan 3285-UZB

Guzar-Regar 500kV Power Transmission Line Rehabilitation Project

This Land Acquisition and Resettlement Plan (LARP) was prepared by the Resettlement Unit Officer on behalf of National Electric Networks of Uzbekistan for the Asian Development Bank (ADB)

ABBREVIATIONS

ADB – Asian Development Bank AH – affected household AP – affected person CCA – Complaints Coordinating Authority CoM – Cabinet of Ministers of Uzbekistan DDR – due diligence report DLARC – District Land Acquisition and Resettlement Commission DMS – detailed measurement survey EA – executing agency EMP – environmental management plan EPC – engineering, procurement and construction FGD – focus group discussion GFP – grievance focal point GRM – grievance redress mechanism Ha – hectare HHs – households IA – implementing agency IEE – initial environmental examination LAA – Land Allocation Act LAR – land acquisition and resettlement LARP – land acquisition and resettlement plan NENU – JSC “National Electric Networks of Uzbekistan” NENS – “National Electric Networks of Surkhandarya Region" NWRTLP – Northwest Region Power Transmission Line Project O&M – operation and maintenance PIC – Project Implementation Consultant PMU – project management unit RoW – right-of-way SAESP – “Sredazenergosetproject” JSC – Design Institute State Committee on Land Resources, Geodesy, SCLRGCSC – Cartography, and State Cadaster SPS – Safeguard Policy Statement 2009 ToR – terms of reference UNPN – JSC ”Uzbekistan National Power Networks” UZS – Uzbek Soum

EXCHANGE RATES (As of April 1, 2020) Currency - Soum (UZS) UZS 1.00 = $ 0.010525 $1.00 = UZS 9,555. 02 (ADB Book Rate)

NOTE in this report, i. “$” Means US dollars (USD) ii. UZS stands for Uzbek Soum

When preparing any country program or strategy, financing any project, or referring to or referencing a specific territory or geographical area in this document, the Asian Development Bank does not intend to make an assessment regarding any official or other status of the territory or area.

GLOSSARY

Affected persons Affected persons (APs) are the members of the affected households who experience full or partial, permanent or temporary physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It is not different from ‘displaced person’ defined in the SPS-2009. Affected household A household consists of one or more people who live in the same dwelling and share meals or living accommodations and may consist of a single family. In the project, the household is the unit for compensation and all the members of a household are considered as affected persons. Architectural A document containing a set of town-planning and architectural Planning requirements. To construct an object following documentation shall Assignments be submitted such as approved city-planning documentation, relevant decisions of state authorities, including requirements and conditions for the protection of historical and cultural monuments, the environment, legal rights and interests of third parties, persons for a specific land plot. Based on these documents, architectural planning assignment for construction is being developed (re-constructions) of the object. Compensation Payment for an asset to be acquired or affected by a project at replacement cost. Cut-off-date The date after which people will not be considered eligible for compensation, i.e., they are not included in the list of AHs as defined by the census. If the country expropriation law does not specify a cut- off date, usually, the cut-off date is the date of the detailed measurement survey which is based on the final engineering design. The validity of the cut-off date in ADB projects typically is three years. Dehkan farm A small farm that operates on a household plot. Please refer to the definition of the household plot below. Detailed With the aid of the approved detailed engineering design, this activity measurement involves the finalization and/or validation of the results of the survey (DMS) inventory of losses (IOL), the severity of impacts, and the list of AHs earlier done during RP preparation. The final cost of resettlement can be determined following the completion of the DMS. Economic Loss of land, assets, access to assets, income sources, or means of Displacement livelihoods, as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or access to legally designated parks and protected areas. Eminent domain The right of the state using its sovereign power to acquire land for public purposes. National law establishes which public agencies have the prerogative to exercise eminent domain. Entitlement The range of measures comprising the cost of compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration, which is due to AH, depending on the type and degree nature of their losses, to restore their social and economic base. All entitlements are given to all affected households as per the entitlement matrix. Hokimiyat The local government authority that interfaces between local

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communities and the government at the regional and national level. It has ultimate administrative and legal power over local populations residing within its jurisdiction. Household plot A plot of land allocated in the manner and amount established by law in addition to the residential household as inheritable lifetime possession to one of the family members for the production of agricultural products both for free sale and for the needs of the family. The construction of residential structures is not allowed. Illegal Households that are not registered their business, agriculture, residential and orchard and those who have no recognizable rights or claims to the land that they are occupying and includes people using private or state land without permission, permit or grant i.e. those people without legal lease to land and/or structures occupied or used by them. ADB’s SPS explicitly states that such people are entitled to compensation for their non-land assets. Income Restoration This is the re-establishment of sources of income and livelihood of the affected households. Land Acquisition The process whereby a person is compelled by a public agency to alienate all or part of the land s/he owns or possesses, to the ownership and possession of that agency, for the State purposes, in return for fair compensation. Land allocation The term used when land is being allocated out of the unproductive/ unsettled State Reserve Land or from the areas that are being used by the State Organization for the modernization/construction of a new substation, and transmission line towers as well as stringing the power cables. Land use rights According to Land Code (article 17) real persons (can have the land plot under the lifelong inheritable possession right and land parcel use transferred as a descent. This right is given to individual residential housing construction and collective gardening and vineyard (orchards), peasant farms. Juridical persons (enterprises, stores, and businesses) can possess land parcels according to the right to permanent possession, permanent use, temporary use, lease, and property. In the two above cases, when a person wants to sell the property (land and building), he will sell the building & structure, and subsequently, the land parcel sold as an attachment (right is sold). Makhalla A local level community-based organization recognized officially by the State that serves as the interface between state and community. It is responsible for facilitating a range of social support facilities and ensuring the internal social and cultural cohesiveness of its members and; local communities to elect Makhalla leaders. Massif A territory comprising a group of houses within the regional districts of Uzbekistan. In other words, it is an administrative division of the districts. In cities of Uzbekistan, this term is called as blocks. Physical Relocation, loss of residential land, or loss of shelter as a result of (i) displacement involuntary acquisition of property, or (ii) involuntary restrictions on land use or access to legally designated parks and protected areas. Private farm A legal entity engaged in agricultural activity with larger land plots. Farmland is managed by the head of the household and there are a number of criteria for a private farm, such as the availability of agricultural machinery, the agricultural education background of the head of the farm and others. The private farm is responsible to the Government for the execution of certain requirements on crop

production and other agricultural projects. Rehabilitation Additional support provided to AHs losing productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of pre-project living standards and quality of life. Relocation The physical relocation of an AH from her/his pre-project place of residence and/or business. Replacement Cost The term used to determine the value enough to replace affected assets and/or cover transaction costs necessary to replace the affected assets without depreciation for such assets as well as material advantage, taxes and/or travel expenses. Resettlement Means all social and economic impacts that are permanent or temporary and are (i) caused by the acquisition of land and other fixed assets, (ii) by change in the use of land, or (iii) restrictions imposed on land, as a result of a project. Resettlement Plan A time-bound action plan with budget setting out compensation and resettlement, entitlement, actions, responsibilities, monitoring, and evaluation. Safety zone The area below, and around, transmission lines in which activities and land use that are incompatible with the safe and efficient operation of the national electricity transmission network are avoided. The safety zone corridors do not restrict normal farming activities such as cropping, harvesting, grazing, plowing. Only incompatible activities, milking sheds, residential dwellings, and some major earthworks - primarily around the foundations of the transmission towers would be restricted. Severely Affected Affected households who will (i) lose 10% or more of their total Households productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the Project. Significant impact 200 people or more will experience major impacts, which are defined as; (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income-generating). Vulnerable Group Distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically, include: (i) female-headed households without support, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support.

Table of Contents

ABBREVIATIONS ...... i EXCHANGE RATES ...... ii NOTE ……………………………………………………………………………………………………..ii GLOSSARY ...... iii EXECUTIVE SUMMARY ...... ix 1. INTRODUCTION ...... 1 1.1. General Provisions ...... 1 1.2. Project Description ...... 1 1.3. Project Location ...... 1 1.3.1. Surkhandarya Region ...... 1 1.4. Approach and Methodology ...... 2 1.5. Current LARP Status ...... 3 1.6. LARP and Project Implementation Conditions ...... 3 2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ...... 5 2.1. Scope of Land Acquisition ...... 5 2.2. Methodology for Determining the Impact of the Project ...... 5 2.2.1. Census and Inventory of Losses ...... 6 2.3. Construction of Power Transmission Towers ...... 6 2.3.1. Permanent Land Acquisition for Power Transmission Towers ...... 6 2.3.2. Effects When Stringing Power Transmission Lines ...... 6 2.4. Loss of Trees and Forestry Vegetation ...... 7 2.5. Severity of Impact ...... 7 2.6. Legal Status of Land Tenure ...... 7 2.7. Impact on Ethnic Minorities ...... 7 2.8. Unexpected Impact ...... 8 3.SOCIO-ECONOMIC INFORMATION AND PROFILE ...... 9 3.1. Field Methodology ...... 9 3.2 Interest of the Affected Households in the Project ...... 9 3.3. Demography and Socio-economic Characteristics ...... 9 3.4. Household Amenities ...... 9 3.5. Access to Social Services ...... 10 3.6. Low-income AHs ...... 10 3.7. Occupational Patterns of the AHs...... 10 3.8. Gender Issues ...... 11 3.9. Vulnerable Households ...... 11

4. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 12 4.1. Consultations ...... 12 4.2. Disclosure of Information ...... 13 5. GRIEVANCE REDRESS MECHANISM ...... 14 5.1. General ...... 14 5.2. Existing complaint handling mechanism in Uzbekistan...... 14 5.3. Proposed project level GRM ...... 15 6. LEGAL FRAMEWORK ...... 17 6.1. Laws, Regulation, and Provision relating to LAR in Uzbekistan ...... 17 6.1.1. Constitution of the Republic of Uzbekistan ...... 19 6.1.2. Land code (30 April 1998) ...... 19 6.1.3. Civil Code (29 August 1996) ...... 20 6.1.4. Resolution of the Cabinet of Ministers No. PKM-146 (May 25, 2011) ...... 20 6.1.5. Resolution of the Cabinet of Ministers No. PKM 317 (September 21, 2016) 21 6.1.6. Decree of the President of the Republic of Uzbekistan No. PP- 3857 dated July 16, 2018 ...... 21 6.1.7. Decree of the President of Uzbekistan №5495 (1 August 2018) ...... 21 6.1.8. Law of Uzbekistan on Protection of Private property and Guarantees of Ownership rights 336 (22 September 2012) ...... 21 6.1.9. Presidential Order F-5491(3 August 2019) ...... 22 6.1.10. Resolution of Cabinet of Ministers № 1047 (26 December 2018) ...... 22 6.1.11. Presidential Decree No. PP-5491 (August 3, 2019) ...... 23 6.1.12. Resolution of the Cabinet of Ministers № 911 of November 16, 2019 ...... 23 6.1.13. Resolution of Cabinet of Ministers № 44 (15 February 2013)...... 25 6.1.14. Tax code ...... 26 6.1.15. Resolution of Cabinet of Ministers # 63(28.01.2019) ...... 26 6.1.16. Resolution of the President # 4555 (30.12.2019) ...... 27 6.1.16. Labor code and employment law ...... 28 6.1.17. Resolution of Cabinet of Ministers “About Approval of Rules of Protection of Power Supply Facilities” ...... 28 6.1.18. The National Construction Standards and Rules # KMK 2.10.08-97. “Land allocation standards for construction of 0.4 – 750 kV power networks” ...... 29 6.2. ADB Safeguards for Involuntary Resettlement ...... 29 6.3. Policy differences and reconciliation ...... 31 7. COMPENSATION, ASSISTANCE AND BENEFITS ...... 37 7.1. Eligibility for Compensation and Assistance ...... 37 7.2. Legalization and Registration of Lease/Ownership of land ...... 37 7.3. Compensation and Property Valuation ...... 38

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7.3.1. Land ...... 38 7.3.2. Facilities ...... 38 7.3.3. Crops and Trees ...... 38 7.3.4. Loss of Income / Livelihood ...... 38 7.3.5. Vulnerable Households ...... 39 7.4. Compensation Assessment Procedure ...... 39 8. INCOME RESTORATION ...... 43 8.1. AHs’ Income Restoration ...... 43 9. RELOCATION ...... 44 10. BUDGET AND RESETTLEMENT FUNDING ...... 46 10.1. Temporary Impact on Agricultural Land Holdings ...... 46 10.2. Permanent Land Acquisition ...... 46 10.3. Harvest Compensation ...... 46 10.4. Trees and Forestry Vegetation ...... 47 10.5. Consolidated Budget ...... 47 11. INSTITUTIONAL ARRANGEMENTS ...... 48 11.1. PMU of JSC "National Electric Networks of Uzbekistan" ...... 48 11.2. Office of Land and State Cadastre ...... 48 11.3. District khokimiyats of Surkhandarya region ...... 49 11.4. Community-based Organizations and Non-Governmental Organizations (NGOs) ...... 49 11.5. Independent Valuation Companies ...... 49 12. SCHEDULE OF LARP UPDATING AND IMPLEMENTATION ...... 51 13. MONITORING AND REPORTING ...... 53 ANNEX 1. Information on Land acquisition in surkhandarya region ...... 54 ANNEX 2. PROJECT INFORMATION Brochure ...... 56

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EXECUTIVE SUMMARY

Project Description

1. This project aims to improve export-import and development of the electricity industry between the governments of the Republic of Tajikistan and the Republic of Uzbekistan. It will restore the 63.36 km 500kV “Guzar-Regar” overhead line in the Surkhandarya region, Republic of Uzbekistan. The project is proposed to be funded from the savings from ADB Loan No. 3285- UZB Northwest Region Power Transmission Line Project.

Current LARP Status

2. This draft land acquisition and resettlement plan (LARP) was prepared based a project level census and socio-economic survey of the potentially affected persons and a detailed assessment study for the dismantling of the power line prepared by the Design Institute - JSC Sredazenergosetproekt. A detailed assessment study was carried out by the regional offices of “Uzdavyerloyikha” (State Research and Design Institute for Land Management) in the Surkhandarya region from January to March 2020. The LARP establishes principles and procedures to compensate for the possible loss of land, houses, buildings, crops and livelihoods during the implementation of the project in accordance with the ADB Safeguard Policy Statement (SPS, 2009) and related country land regulations, policies and guidelines as reflected in the approved LARPs under ADB Loan 3285. This document has been approved by the JSC “National Electric Networks of the Republic of Uzbekistan” (NENU). It will need to be updated subsequent to the detailed engineering design of the project. Commencement of physical works will be conditional to the full implementation of the LARP.

Scope of Land Acquisition and Resettlement

3. The corridor line for the 63.6 km power transmission lines will cover an area of about 382.5 ha. For the transmission towers, a permanent alienation of approximately 5.41 ha will be required. Another 377.7 ha will be needed temporarily. Most of the required land belongs to the state reserve, forest and other land. Table 1 summarizes information on the estimated general permanent and temporary land acquisition and requisition for the project. A total of 28 households are likely to be affected by the project, 21 will marginally lose a portion of their agricultural land while 7 will be displaced from their housing due to safety reasons. The loss of agricultural land varies between 0.01% and 0.33% of the total agricultural land area leased/owned by the affected households.

Table 1: Overview of the overall impact of land acquisition

Permanent Impact Temporary Impact Number Number of Self- of Number Suppor- Guyed of ting Region Power Affected Power Total Total

Trans- (ha) House- Trans- (ha) (ha) mission holds mission Towers Towers use of households Lands privateunder andotherlands (ha) Lands privateunder andotherlands (ha) State, reserve,forest State, reserve,forest use ofhouseholds (ha) Surkhandarya 28 147 5.41 2.48 2.93 377.7 171.15 206.55 28 region TOTAL 175 5.41 2.48 2.93 377.7 171.15 206.55 28

Socio-economic Profile of AHs

4. The field work methodology consisted of a project level census including an inventory of losses (IOL), of all 28 potentially affected households (AH) and a socio-economic survey (SES) of these AHs. The 28 AHs have an estimated 151 members with an average household size of 5.4.

5. The heads of all households, with the exception of one, are married. Young members (1-6 years) comprise 10% while older members (65 years old and above) comprise 2%. No households were identified as vulnerable following the definition of vulnerability used in the approved LARPs under ADB Loan 3285-UZB. All households will be assessed in terms of their vulnerability status during the updating of the LARP.

Information Disclosure, Consultation and Participation

6. During the preparation of the Project, consultations were held with AHs and APs. This is a continual activity that will be carried out throughout the project cycle. During the AH consultations, completion dates for data collection were reported. In addition to the Academy of Sciences, these public consultations were attended by representatives of relevant land management, public and state organizations. Detailed information on these meetings is presented in the main part of the report.

7. Meeting on disclosure explaining the final LARP will be organized for all the AHs and the relevant public and governmental organizations during the evaluation phase and LARP updating targeted by the 2nd quarter of 2020. A local language information brochure will be distributed to the AHs, relevant agencies and community organizations during the publicity meeting. The information sheet will describe the project information and land requirements for the project, the payment matrix, as well as the grievance redress mechanism and the schedule for the implementation of the LARP. This draft LARP and its update will be posted on the websites of NENU and ADB after concurrence by ADB and approval by NENU.

Grievance Redress Mechanism

8. The APs will have the right to file complaints and queries on any aspect of project implementation including land acquisition and resettlement issues, if any. The EA will ensure that grievances and complaints on any aspect of the project implementation are addressed in a timely and satisfactory manner. Complaints can be submitted to the mahalla, the council of farmers, or directly to NENU as the EA and the office (management) of the branch of NENU in Surkhandarya region. The National Electric Networks of Surkhandarya Region (NENS) which is Surkhandarya region branch of the NENU is the complaints receiving authority or is known as the Complaints Coordinating Authority (CCA). Upon receipt of a complaint, the Grievance Focal Point (GFP) will establish contact with the Project Management Unit (PMU) and the makhalla, as well as with other relevant authorities. The PMU will create a complaints handling group, the management of which will be carried out by one of the employees of the NENS appointed to handle complaints related to the project. All complaints will be resolved in 15 days, and in case additional information is required, the maximum period for satisfaction and closing of the complaint will be 30 days. The APs may access the country’s legal system at any stage of the GRM process for project related complaints using national GRM provisions. A minimum of two APs can also file complaints with the ADB Accountability Mechanism, if there has been a violation of ADB’s policy requirements.

Legal Framework

9. In preparing this LARP, the country’s relevant legal provisions and the latest Government decisions as well as ADB’s involuntary resettlement safeguard requirements from the Safeguard Policy Statement (SPS, 2009) have been used. The differences in the regulatory

x documents of the Government of Uzbekistan (GOU) and ADB were resolved as necessary. The most important mechanisms, in accordance with the results of the studies and consultations, to ensure protective measures in the context of this project are the policies for compensating for the allotted land in the absence of an acceptable option for providing land in return, transparent formulas for assessing the cost of land compensation and other tangible assets, timely payment compensation for APs affected by job loss and benefits for a small number of poor and vulnerable AP.

Entitlements and Compensation Strategy

10. Compensation eligibility will be limited by a cut-off date corresponding to the completion date of the data collection based on the last day of processing of the AH census data and loss record. Date of completion of data collection for the territory of Surkhandarya region - 10 March 2020 which may need to be updated based on the detailed engineering design. Households, which settle in the impacted areas and/or carry out any improvements on land that will be allotted for the project, after the date of completion of the data collection will not be eligible to receive compensation. However, they will receive an advance notice asking them to vacate the land and dismantle the affected buildings before the start of the project. Their dismantled facilities will not be confiscated and will not be subject to fines or compensation.

11. In accordance with the rehabilitation and resettlement measures proposed for the project, all affected households will be entitled to a combination of compensation packages and resettlement assistance depending on the nature of ownership rights on lost assets and scope of the impacts including socio-economic vulnerability of the displaced persons and measures to support livelihood restoration if livelihood impacts are envisaged. Unanticipated impacts will be mitigated in accordance with the policy principles of the LARP for this project. Compensation shall be paid before taking possession of the affected land.

Income Restoration

12. There is no income restoration issue in this project as the losses are marginal. Compensation at replacement cost will be provided for the losses. PMU and the IA (Surkhandarya branch of NENU) will be responsible for planning and implementing the support measures described above. For this purpose, the NENS will work closely with the mahalla, district khokimiyats, the Office of Land Resources and the State Cadastre and local labor authorities to effectively implement the income restoration strategy.

Relocation

13. 7 Households are proposed to be physically displaced from housing for safety reasons of overhead high-tension cables according to the relevant laws of the country, and not because of land acquisition by the project. They will be relocated and assisted per the legal provisions.

Resettlement Budget and Financing

14. The estimated LARP budget, based on the calculation of compensation payments for the loss of agricultural land, crops, relocation and replacement housing, is estimated at UZS 1,361,853,653, equivalent to US$ 142,526 using ADB’s Book Rate as of 1 April 2020. The cost of internal monitoring and evaluation, as well as updating and implementation of LARP will be included in the contractual package of services.

Institutional Arrangement

15. NENU will have overall responsibility for the implementation of LARP as the executive agency. It will be responsible for the ongoing management of LARP implementation. PMU of NENU will consist of a resettlement specialist who is responsible for planning, implementing and monitoring the LARP as well as for preparing the LARP implementation completion report. PMU will work closely with relevant state bodies and public organizations for implementing the LARP.

Implementation Schedule

16. The implementation of this LARP for the project will be planned after consideration and concurrence by ADB of the final LARP. All activities related to land acquisition and resettlement will be planned in such a way that compensation is paid before taking over the land and starting construction work. Consultations with the public, monitoring and consideration of complaints will be carried out periodically throughout the duration of the project. Construction will begin when compensation is fully paid. The completion of the LARP implementation will be documented in the LARP implementation completion report that shall be approved by ADB for the commencement of the civil works.

Monitoring and Reporting

17. Implementation of the LARP will be monitored by PMU of NENU. For this, the PMU will appoint a resettlement specialist. The resettlement specialist will conduct an internal monitoring of the LARP implementation on a regular basis in close collaboration with local khokimiyats and community and non-governmental organizations. The monitoring activities that start with the loan effectiveness will continue until the completion of all construction work. The PMU resettlement specialist will prepare semi-annual monitoring reports that will be submitted to ADB for review and posting on the ADB website. The PMU will disseminate relevant information from such reports to the affected individuals

18. Apart from the continual semi-annual monitoring report mandated by ADB’s SPS, the resettlement specialist will prepare a detailed LARP implementation completion report that will include detailed information on actual land acquisition and requisition, impacts, listing affected households and payment of compensation as well as relocation efforts, which shall be submitted to ADB. The LARP implementation completion report will be used by ADB and NENU as the basis for issuing notice of commencement of construction work to the EPC contractor.

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1. INTRODUCTION

1.1. General Provisions

1. This project aims to improve export-import and development of the electricity industry between the government of the Republic of Tajikistan and the Republic of Uzbekistan. It will restore the 63.36 km 500kV “Guzar-Regar” (L-507) overhead line in the Surkhandarya region, Republic of Uzbekistan. The project is proposed to be funded from the savings of ADB Loan No. 3285-UZB Northwest Region Power Transmission Line Project (NWRTLP) and will be implemented on a turnkey basis.

2. This draft land acquisition and resettlement Plan (LARP) has been prepared based on the preliminary alignment in the feasibility study to address all possible land acquisition and resettlement (LAR) issues that may arise due to the implementation of the project involving permanent land acquisition for the construction of transmission line (TL) towers and temporary land requisition for stringing the conductor cables of the TL. This project follows the lead of Loan 3285-UZB stated above and establishes principles and procedures to compensate for the loss of land, houses, buildings, crops and livelihoods during the implementation of the project in accordance with ADB’s Safeguard Policy Statement (SPS, 2009) and related country land regulations, policies and guidelines as provided for in the approved LARPs under ADB Loan 3285. This document has been approved by the Joint-Stock Company National Electric Networks of the Republic of Uzbekistan (NENU), which is the project executing agency (EA). This draft LARP will be updated upon availability of the detailed engineering design and subsequent to the conduct of a detailed measurement survey (DMS).

1.2. Project Description

3. The total investment cost of the project is estimated at US$ 25 million, including physical and non-physical components. The actual completion of the project is expected by the end of 2020. The project involves the commissioning of the high- voltage electricity transmission in order to ensure security of supply. The project components include:

(i) Reconstruction of power lines 500 kV 63.361 km long; (ii) Support for institutional development, capacity building and project management: including advisory services to improve operational safety, build capacity and manage the project, and oversee its implementation.

1.3. Project Location

1.3.1. Surkhandarya Region

4. Surkhandarya region is in the southern part of the Republic of Uzbekistan. The region includes 13 districts and 1 city comprising 109 urban-type settlements. The administrative center is the city of Termez with a population of approximately 145 thousand people. Surkhandarya region is in the south - the valley of the Amu Darya river. In the south, it borders with the Balkh province of Afghanistan, in the south-west with the Lebap region of Turkmenistan, in the north-west with the Kashkadarya region of the Republic of Uzbekistan, in the east with the Khatlon region of Tajikistan, in the north-east with Tursunzoda, Rudaki and Shakhrinav districts of the Republic of

1 The total length of the power line in the design documentation and the documentation for topographic survey may vary during the updating of the LARP. The exact extent will be estimated after the installation of landmarks for all supports.

Tajikistan, in the north from the Sughd region of the Republic of Tajikistan. Its area is 20,800 km², and the population is more than 2.5 million inhabitants, approximately 45% of the population living in urban areas, and 55% of the population living in rural and mountainous regions. The average population density in Surkhandarya is approximately 118 persons/km2. In the capital of the republic, the population density is 7,535 people/km2.

Figure 1.1: Route map of a 500 kV overhead power line Guzar - Regar (L-507) on a Google map

1.4. Approach and Methodology

5. In order to conduct a preliminary assessment of the LAR impact, the following measures were adopted:

i.An inventory of losses (IOL) identified the affected households (AH) and assessed the size and type of land as well as identified and surveyed the property of business entities and farms that will be affected by land acquisition. The IOL was carried out on the basis of a preliminary project design. ii.The AH/AP Census enumerated the potential project affected persons/households and collected information on their socio-economic status; iii.Consultations with relevant government agencies and the affected parties.

6. The IOL was carried out by the regional office of "Uzdavyerloyikha" (State Research and Design Institute of Land Management) in Surkhandarya region with professional surveyors in March 2020, who measured the area of the affected land allocation. The results of the IOL were verified and finalized by

2 the Resettlement Specialist of the Project Management Unit (PMU), which is the project’s implementing agency (IA).

7. After identifying a property proposed to be affected for land acquisition, a study was conducted of the socio-economic situation of land users in order to cover both informal and legal usership of land-property. In addition to the informal interviews, a questionnaire was administered based on cultural characteristics for registering accurate answers, which was used as a census tool. The questionnaire reflects the following aspects: (i) enumeration of a household members; (ii) the composition and socio-economic characteristics of the household (age, ethnic group, education, gender, etc.); ( iii ) the type of income earning activity and items of expenditure of the household; ( iv ) owned / occupied land and agricultural activities; ( v ) debts and assets; and ( vi ) preferences for compensation payments and assistance in restoring sources of income.

1.5. Current LARP Status

8. This LARP was prepared by PMU of NENU with ADB’s assistance, from January to April 2020 based on the preliminary alignment as followed by the feasibility study. The necessary survey for baseline data was based on the documentation for the dismantling of the power line prepared by the Design Institute - JSC “Sredazenergosetproekt”. A detailed assessment study was carried out by the regional offices of “Uzdavryerloyikha” (State Research and Design Institute for Land Management) in the Surkhandarya region from January to March 2020. Overall, previous LARPs prepared under the ADB Loan 3285-UZB were used for guidance in preparing this draft LARP.

9. This LARP will be updated and finalized through a detailed measurement survey (DMS) after the detailed design of the project becomes available. The updated LARP will include new field studies to confirm or identify additional AHs and APs, systematic consultation with AHs and APs, and dissemination of information to the APs on their entitlements and complaint handling mechanisms.

1.6. LARP and Project Implementation Conditions

10. This LARP complies with Uzbek law and ADB 's Safeguard Policy Statement (SPS, 2009). In accordance with Terms Cabinet № 911 (16.11.2019), №146 (25.05.2011) and № 317 (21.09.2016) Government Uzbekistan any land acquisition and removal of structures to be implemented only after the coordination values tenant land compensation and owner of facilities. Legislation of the Government of Uzbekistan (GOU) and resolutions on land allocation also require that construction work begins only after all compensation payments for land acquisition have been made.

11. ADB's involuntary resettlement safeguard also requires that project implementation follows the LARP implementation. The most important conditions are: (i) land acquisition is permitted only after all compensation payments have been made, and ( ii) the commencement for construction work follows the implementation of the updated or final LARP, as confirmed by a LARP implementation compliance report.

12. For “design and build”, “EPC” or “turnkey” contracts wherein the contractor is mobilized to complete the design before the LARP is finalized, ADB policy allows the awarding of contract provided that the contract expressly provides that the installation

3 and construction phase (and commencement thereof) is strictly conditional upon: (i) the final LARP based on the Project’s detailed design having been submitted to, and cleared by, ADB; and (ii) the Borrower having notified the contractor and ADB in writing that due consultation, compensation payments and other entitlements have been provided to affected people fully in accordance with the LARP. For this Project, this condition will be clearly indicated in the EPC contract and will be monitored closely.

13. For updating the LARP after the completion of the final detailed design for the power transmission lines, the newly re-organized NENU will require training. It is important that the detailed design is carried out by choosing such a reconstruction territory and a distribution route that can minimize the impact of land acquisition within the framework of this Project. Implementation of this Project in accordance with LARP will require compliance with the following key steps:

(i) NENU will update the LARP after completion of detailed design by the EPC contractor, which will strive to minimize land acquisition. An updated LARP will be prepared in consultation with the AHs. (ii) All field work associated with the construction of power transmission lines and other supporting field work can only be started after ADB has agreed on an updated LARP and all compensation payments in accordance with the updated LARP is completed. (iii) NENU will send to ADB a report on the completion of LARP implementation, in particular, on making compensation payments to the AHs. (iv) The LARP Compliance Report will be prepared by NENU, subject to verification by ADB, in order to confirm that all monetary compensation and other AH benefits have been fully paid in accordance with the LARP provisions. The report will be used by ADB as one of the conditions for the commencement of civil works.

14. The PMU will monitor the implementation of the LARP and prepare a report based on its results. For these purposes, the PMU will appoint a qualified and experienced resettlement specialist. The designated specialist will oversee the implementation of the LARP and prepare a report on compliance with the LARP before starting the construction works.

15. An information brochure in Uzbek/Russian with a brief description of the Project, selection criteria, and entitlement matrix and implementation schedule will be distributed to AHs and any other affected parties by representatives of NENU through the local authorities and the mahalla. Both the draft LARP and the updated LARP after the detailed design will be available on websites of NENU and ADB. This draft LARP includes a sample information brochure in English (Annex 2), to be further developed when the draft LARP is updated.

2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 16. This chapter discusses the scope of land acquisition and the consequent impacts of the project, and summarizes the main consequences in terms of loss of assets and affected households.

2.1. Scope of Land Acquisition

17. This project will require: (i) permanent land acquisition required for the construction of power transmission towers; and (ii) temporary land requisition for stringing power lines electric cables on power towers.

18. The corridor for the 63.36 km power lines will cover an estimated area of about 382.1 hectares, which is necessary for the construction of transmission lines and stringing tension wires. This quantum of land is a combination of 5.41 ha of permanent land acquisition and 377.7 ha of temporary requisition of land. These land acquisition and requisition are again divided between private land users and state reserve lands, as shown below in Table 2.1 and detailed in Annex 1. For the construction of power transmission towers line poles (28 self- supporting power transmission towers and 147 guyed power transmission towers), it is estimated that totally 5.41 ha of permanent land acquisition will be needed. The acquisition and requisition of land will affect a total of 28 households (151 persons), 21 of which will suffer temporary impacts during the construction, and 7 will suffer permanent impacts in the form of relocation due to the country’s relevant laws that prohibit housing underneath high tension cables.2 The relocatees will lose 100% of their residential plots totaling 1.05 ha of land. This quantum of land is not included in the project requirement because, they will be physically displaced not due to the project per se but due to a law’s requirements triggered by the project. The estimated impact by area and land use type is described in the following subsections.

Table 2.1: Overview of the overall impact of land acquisition

Permanent Impact (ha) Temporary Impact (ha)

ands ands L L

Region Total Total

(ha) (ha) (ha) (ha) (ha) (ha) Towers mission Towers ting Trans-Power Numberof Guyed use of households use of households Number of Affected Households Landsunder private Landsunder private Power Transmission State Reserve State Reserve Number of Self-Suppor- Surkhandarya 28 147 5.41 2.48 2.93 377.7 171.15 206.55 28 TOTAL 175 5.41 2.48 2.93 377.7 171.15 206.55 28

19. As stated above, the project will affect 28 households. Of these, while 7 will need to be relocated, 21 will lose land both permanently and temporarily. The percentage of land loss for the permanent impact varies from 0.01% to 0.33% relative to the land possessed by the households, detailed in Annex 1, Table A1.

2.2. Methodology for Determining the Impact of the Project

2 COM Resolution No. 1050 on the approval of the procedures for the protection of objects of electric grids, dated 28 Dec 2018; KMK-Standards and Norms 2.10.08.-97 on land acquisition for electric networks with a voltage of 0.4-750 kV.

2.2.1. Census and Inventory of Losses 20. The survey methodology is described in Chapter 3. The potential impacts of the Project was determined through the inventory of losses (IOL), during which exercise all real estate located in the corridors of the line was identified, measured, estimated, and registered, as well as the owners of these properties were established and their place of residence agreed with local authorities. In assessing potential property losses, the magnitude of the impact on AHs was determined from their sources of livelihood to their productivity. Estimates were made based on the results of the detailed evaluation study/loss inventory and information provided by APs on livelihood sources, income level and ownership of productive assets. Census and inventory losses were conducted from January to March 2020 based on the preliminary route for the transmission line.

2.3. Construction of Power Transmission Towers 21. In accordance with the results of the technical requirements provided by the design institute, the approximate number of power transmission towers is calculated in the amount of175. Of these, 147 are guyed towers and 28 are self-supporting towers. Guyed towers will be erected at a distance of 250-500 meters. Self-supporting towers will be erected at each angle of rotation of the power lines, where necessary.

2.3.1. Permanent Land Acquisition for Power Transmission Towers 22. Taking into account the length of the power transmission line, the size of the line corridors and the dimensions of the guyed and self-supporting towers, as well as the determination of the location of the line corridor, the likely impacts in three project districts are given in Table 2.2 and Table 2.3. The project will have an impact on 28 AHs. A complete list of AHs with an indication of individual effects on them is given in Annex 1, Table A1 and Table A2.

Table 2.2: Permanent land acquisition in Surkhandarya region

Permanent land acquisition ( ha ) Total Number of Number number self- of Number District from from state, reserve, forest of supporting guyed Total of AHs towers towers towers AHs and other lands

Altinsay 56 11 45 1.77 0.41 1.36 4 Denau 45 7 38 1.47 0.98 0.49 5 Sariosiyo 74 10 64 2.17 1.09 1.08 19 Subtotal 175 28 147 5.41 2.48 2.93 28

23. In addition to the permanent land acquisition quantum shown above comprising agricultural land, the project permanently displaces from housing 7 households. The land thus permanently affected is 1.05 ha. This land is not required for the project in any manner, but it is vacated for safety reasons in compliance with the law, as stated in para. 19. All these 7 housing structures are located in Sariosiyo district. Annex 1/Table A2 contains the land details of the 7 households.

2.3.2. Temporary Effects When Stringing Power Transmission Lines

24. Temporary impacts during the implementation of the project due to the need for temporary access to vehicles that will deliver finished steel structures, equipment, cables and engineering support systems, as well as building materials to the work sites are foreseen. The actual required area will be based on specifications prepared at the detailed design stage. The TL project requires temporary placement corridor width of 60 meters during the period of stringing power lines. Table 2.3 shows the district-wise details of the temporary land requisition

6 details totaling 377.7 ha of land, affecting 21 households and state reserve lands. Details can be found in Annex 1, Table A1 and Table A3. Table 2.3: Temporary Impact in Surkhandarya Region

Temporary land requisition (ha) Number of Power Number of Project districts from state, Transmission Towers Total From AHs reserve, forest AHs and other lands Altinsay 56 122.4 33.0 89.4 4 Denou 45 102.3 66.9 35.4 5 Sariosiyo 74 153.0 71.25 81.75 12 TOTAL 175 377.7 171.15 206.55 21

25. About 75% of the temporary distribution corridor will pass through the state reserve lands and 25% through the agricultural land of the AHs. The list of AHs with the corridor length is presented in Annexes 3 and 4.

2.4. Loss of Trees and Forestry Vegetation

26. Along with the above-mentioned impacts of the construction of renewal of power transmission lines, there may be loss of trees and vegetation. The project sites visit by the environmental team and Google map confirm that there are no trees but forest vegetation on the state forest land that is proposed to be affected. The state forest land can often be planted areas, sometimes these are relatively new with just seedlings. The compensation amount for the trees in the budget table is just an estimate based on the compensation costs for trees which were paid in other similar projects. The exact types and number of affected trees will be determined during the updating/finalization of the LARP after the detailed engineering design.

2.5. Severity of Impact

27. The data analysis shows that the 21 affected households that are exposed to the project on account of their crop land will not experience much impact due to permanent land acquisition, as in percentage terms the impact is a maximum of 0.33% and a minimum of 0.01% (details in Annex 1, Table A1). Hence, there is no severity of impacts in the project. The details of land holding and the quantum of loss due to permanent land acquisition with percentage calculation of each of these 21 households can be found in Annex 1. The temporary requisition of land, depending on the time of the year when the project construction works take place, may be able to avoid affecting the agricultural activities. However, 7 households lose 100% of their residential plots totaling 1.05 ha due to mandatory relocation for safety reasons.

2.6. Legal Status of Land Tenure

28. Consultations with the affected households and the local administration show that all AHs legally occupy all the land that will be required for the Project. The details of land holding of all 28 households can be found in Annex 1. As the country does not offer private land ownership, legal landholding is lease-based, typically for up to 50 years but, as the government periodically redistributes land under an optimization program, the lease period may be reduced.

2.7. Impact on Ethnic Minorities

29. The entire country is not known to have ethnic minorities or indigenous people’s communities as defined in ADB’s SPS for operational purposes. Hence, the project has no ethnic minorities issues to address and no ethnicity related project impacts. Of course, in the border areas of the country there are people with ethnicities of neighboring countries, such as, ethnic Tajik, ethnic Kazakh, etc. But they are all Uzbeks and not a minority, which is a political

7 term. In the project area, generally, 80% people are of Uzbek ethnicity and 20% are of Tajik ethnicity.

2.8. Unexpected Impact

30. Apart from the marginal loss of agricultural land due to permanent land acquisition and the loss of housing structures of 7 households for safety reasons, no impacts on other structures and community facilities have been identified in this draft LARP. However, in the event that such impacts are identified during the LARP updating, the provisions of the entitlement matrix in the approved LARPs under Loan 3285 will be used to address such impacts.

3. SOCIO-ECONOMIC INFORMATION AND PROFILE

31. This section contains the results of a socio-economic study conducted in local communities with the goal of understanding the existing socio-economic conditions as well as the vulnerability of people and families potentially affected in the study areas.

3.1. Field Methodology

32. After obtaining the necessary location information, marking up fields and profile drawings, field work was carried out to generate data for preparing this draft document. The field methodology consisted of a 100% census and inventory of losses (IOL) of 28 affected households (AH) as well as a socio-economic survey (SES) covering all these households. The SES consisted of interviews, consultations and discussions with members of 28 AHs in Surkhandarya region.

A. Socio-Economic Profile

3.2. Interest of the Affected Households in the Project

33. Most of the impacted households, approximately 69% (19 AHs) expressed great interest in the project construction of the transmission lines. The remaining 31% did not consider it interesting for their households.

3.3. Demography and Socio-economic Characteristics

34. Age and civil status. The average age of the members of AHs 50-52 years. The heads of all households, with the exception of one, are married. A majority of the affected individuals (APs), as presented in Table 3.1, are between the ages of 26-40 years old, men 25% and women 31%. Young members (1-6 years) comprise 16% while older members (66 years old and above) comprise 3%.

Table 3.1: Members of AHs by age in Surkhandarya region

Male Female Total Age No. Percentage No. Percentage No. Percentage 1-6 years old 18 20.22 6 9.67 24 15.89 7-15 16 17.97 15 24.19 31 20.52 16-25 17 19.10 9 14.51 26 17.21 26-40 23 24.84 19 30.64 42 27.81 41-65 12 13.48 12 19.35 24 15.89 66 & above 3 3.37 1 1.61 4 2.64 Total 89 100% 62 100% 151 100%

35. The population of households. The 28 AHs in the three studied districts have a total of 151 members, as shown in Table 3.1. The average household size is 5.4. The maximum number of people in a household is 14 from the Sariasiya district. Traditions and customs of people in this region usually imply the presence of large families consisting of several generations. 3.4. Household Amenities

36. Water. Almost 65% of the AHs are connected to the water supply system, while the remaining 45% use water from wells for washing dishes, clothes and for drinking needs.

37. Electricity. All AHs have access to electricity. Electricity is mainly used for lighting, freezing, cooling and watching television.

38. Natural gas. 75% of the AHs do not have access to natural gas. For cooking they use wood. Only 25% of the AHs has access to natural gas through a central gas pipeline.

3.5. Access to Social Services

39. Education. The education system in Surkhandarya region is represented by 232 kindergartens, 613 comprehensive schools, 28 professional colleges and 8 academic lyceums. All 8 higher education institutions located in the city of Al-Tirmidhi and near Dena have an enrollment of over 9,450 students.

40. Health Services. Surkhandarya region has 28 hospitals with 5850 beds. Outpatient medical facilities include clinics and rural medical clinics. There are 261 clinics that can serve 19,000 people a day. The system of rural medical clinics was created to provide basic medical services to the rural population of the country.

B. Social Impacts on AHs

3.6. Low-income AHs 41. A national level poverty line, the subsistence level, and methodology for estimating the indicators have yet to be established by the national legislation in Uzbekistan. According to the existing methodology in Uzbekistan the “low-income families” are classified by makhalla committees as households where the monthly per capita income is less than the equivalent of 52.7% of minimum wage. On 30 December 2019, a Presidential Resolution No. PP-4555 was adopted titled “About Implementation Measures of the Law of the Republic of Uzbekistan About State Budget of the Republic of Uzbekistan for the year 2020”. This resolution fixed the minimum monthly wage in the amount of UZS 679,330 per month per person, applicable since 1 February 2020. Accordingly, the determined poverty line is UZS 358,007 per month per person (approximately US$ 1.25 per capita per day).

42. The socio-economic study gathered the average monthly household income and expenditure of the 7 households proposed to be physically displaced and worked out family- wise monthly per capita income of each of these families, shown below in Table 3.2. According to this information, the monthly per capita income is more than the poverty line of UZS 358,007 per month per person.

Table 3.2: Monthly Average Income of Family and Individual

Average Monthly Per Monthly Average APs Expenditure of Capita Income of Income of Family Family Familiy 1 Rakhmonov Iskanadar 3,515,000 2,300,000 439,375 2 Rakhmonov Sunnatilla 4,200,000 2,000,000 382,000 3 Mandonov Abdumajid 3,500,000 2,000,000 583,333 4 Ashurov Tokhir 2,000,000 1,500,000 500,000 5 Kuchkarov Tojiddin 3,000,000 3,000,000 500,000 6 Sharipov Bozor 1,000,000 1,000,000 1,000,000 7 Mukhammadova Zarina 2,000,000 2,000,000 500,000 Average: 2,869,167 1,966,667 567,451

3.7. Occupational Patterns of the AHs 43. Providing funds for co- existence. Thirty-nine percent of the members of AHs are involved in agriculture, 31% study or are younger members, 12.5% are involved in housekeeping and/or are seasonal workers, and 10.5% are involved in public service. Retired members of AHs comprise 3%. Only 6 family members of AHs are unemployed, and 1 family member of AHs is a labor migrant. Table 3.3 provides the occupational patterns of 7 households

10 to be relocated due to the project activities, which shows that 6 of the 7 household heads are engaged in government jobs and 1 household head is engaged in trade. Table 3.2 showed that none of them is a low-income household defined by the government.

Table 3.3: Occupational Pattern of the Households to be Displaced Government Seasonal # Name Trade Retired Total % Job Worker 1 Rakhmonov Iskanadar 1 1 14.3 % 2 Rakhmonov Sunnatilla 1 1 14.3 % 3 Mandonov Abdumajid 1 1 14.3 % 4 Ashurov Tokhir 1 1 14.3 % 5 Kuchkarov Tojiddin 1 1 14.3 % 6 Sharipov Bozor 1 1 14.3 % 7 Mukhammadova Zarina 1 1 14.3 % Total: 1 6 7 100 % headsAHsbe physically relocated

3.8. Gender Issues

44. Under the Project, there is no differentiation between households headed by men and households headed by women, since they will equally feel the effects of land acquisition, requisition, and relocation. When implementing the updated LARP, National Electric Networks of Uzbekistan JSC will adhere to the ADB Gender and Development Policy (1998) as a key strategy for promoting equality. As a Project Policy, in this LARP, the affected property of female-headed households will be assessed the same as the property of male-headed households, for example, compensation based on the cost of compensation, benefits, assistance indicated in the entitlement matrix of the present LARP.

3.9. Vulnerable Households

45. The approved LARPs of the ADB Loan 3285-UZB defines vulnerable groups as distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically, include: (i) female-headed households without support, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support.

46. This LARP adopts this definition of the vulnerable groups. The census exercise and socio-economic survey carried out for this project show that all 28 potentially project affected households (21 households marginally permanently losing agricultural lands and 7 households proposed to be physically displaced) are men-headed and there are no woman-headed households. (Actually, the last in the list of the households to be displaced is headed by a woman because the house is registered in her name, but her husband owns all the properties.) And, paras. 41-42 and Table 3.2 showed that there are no low-income households among the potentially displaced households. The socio-economic survey noted that 3 members in 2 AHs have disabilities, all APs are men. In addition, it was found that there are disabled children in 2 households, afflicted with cerebral cranial pressure problems. However, none of the potentially affected households fall in any of the four identifiers of vulnerable groups stated above. Therefore, it is confirmed that there are no vulnerable households among the potentially project affected households. It is noted that all AHs will be assessed in terms of their vulnerable status during the updating of the LARP.

4. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

4.1. Consultations

47. In order to engage with the community and enhance public understanding about the project and address the concerns and issues pertaining to the proposed project – compensation, rehabilitation and relocation, individual interviews, focus group discussions (FGD) and meetings were undertaken as part of the consultations with the affected persons and the relevant farmers in the project area. These were carried out during the census and socio- economic survey that were conducted as part of the project preparatory activities for the project. The opinion of the affected persons, community and their perceptions were obtained during these consultations. The consultations with the affected persons and other stakeholders will continue throughout the LARP implementation period.

48. The consultations were carried out to: (a) identify and assist AHs in addressing issues related to the preparation and implementation of the LARP; (b) obtain data on AHs preferences regarding the type and method of making compensation; ( c ) inform AHs and APs of the completion date of the LARP; and ( d ) minimize AHs’ concerns and ensure transparency of LARP activities. Information about consultations and participants is summarized in Table 4.1.

Table 4.1: Information on consultation meetings in the Surkhandarya region

Meetings (All on 25 Number of Venues Members February 2020) participants Affected households, representatives of the district 1 Altinsay district 4 hokimiyat and Uzdavyerloyiha, experts Affected households, representatives of the district 2 Denau District 5 hokimiyat and Uzdavyerloyiha, experts Affected households, representatives of the district 3 Sariosiyo district 19 hokimiyat and Uzdavyerloyiha, experts

49. During the consultation meetings, AHs raised important issues. Questions / requests related to land acquisition and resettlement, as well as compensation. Table 4.2 below presents the main questions raised and the answers provided to these questions.

Table 4.2: Key issues addressed during the consultation

Questions The answers In accordance with the preliminary draft of the location of the line corridor ( ROW ), Uzdavyerloiha has completed a series of land How will I know is if my land is affected surveys. If you are on the list according to the by the project? And what will be the scale land survey report, then the Project will of this impact? impact your land. However, the final AH list will be approved after land surveying. It is not possible to connect directly to power Can we use electricity from a new power lines. However, electricity will be distributed line? through substations in your area.

Questions The answers Compensation for the impact on agricultural land resulting from the construction of towers and the tension of the transmission line will be presented in In what form will compensation be made- monetary terms. When exposure to land plots in cash or in kind? of a housing stock, entrepreneurial activity, and garden of horticulture compensation may include options for land for land. The start date of the construction is When will the construction of power unknown. However, be sure that before the lines begin ? start of the construction process, all compensation will be paid in full. National Electric Networks of Uzbekistan JSC will instruct the contracting construction company that all work on agricultural land Is it possible that the construction time was carried out in accordance with the will coincide with the harvesting period? schedule of agricultural work. To do this, they will consult with the relevant departments of the regional/district khokimiyats. If crop damage cannot be avoided, NENU will If so, then as a bud e t compensated the assess the damage and compensate for the damaged crop? impact in accordance with the entitlement matrix. Compensation will be paid before any construction work begins. After receiving the When will the payments be paid? final design and confirming the total number of affected assets and AH, the PMU will develop a compensation payment plan.

4.2. Disclosure of Information

50. A promulgation meeting explaining the final LARP will be organized for all AHs and relevant government organizations during the LARP evaluation phase (preliminary period: II quarter of 20). The organized meeting will bring together all interested parties in order to explain and answer in detail all the questions raised, unresolved or emerging. A local language information brochure will be distributed to all AHs, relevant agencies and organizations during the publicity meeting. The information sheet will describe the project information and land requirements for the project, the payment matrix, as well as the grievance redress mechanism and the schedule for the implementation of LARP. The LARP project document and the final LARP will be posted on the website of NENU and ADB after approval by both ADB and NENU.

5. GRIEVANCE REDRESS MECHANISM 5.1. General 51. Consultation meetings were carried out with relevant stakeholders, including cadastral office, land use engineer, design engineers, transmission line operators of the project. As a result of discussions and consultations, a simple Grievance Redress Mechanism (GRM) is developed for the AHs who may have complaints or questions during the construction works.

52. The PMU through NENSUNPN branch and Contractors already established a simple and accessible grievance redress mechanism in a frame of previous sections of the NWRTLP which ensures some instruments and levels for grievance resolution and appeals process. PMU’s Safeguards Specialist, through a representative of the NENSPMU on the site will carry out monitoring of the project implementation and GRM. Thus, the same system will be applied in this project.

53. The primary goals of GRM are ensuring the receipt and timely redress of grievances and concerns submitted by the aggrieved project affected persons and resolve complaints at the project level and prevent escalation to the national courts or ADB Accountability Mechanism.

54. People will have the right to file complaints and queries on any aspect of land acquisition, compensation, and resettlement. The PMU will ensure that grievances and complaints on any point of the project implementation during the construction works are addressed in a timely and satisfactory manner.

5.2. Existing complaint handling mechanism in Uzbekistan

55. The existing complaints handling mechanism in the country is governed by the relevant law, according to which complaints can be submitted to makhalla, village assembly of citizens, farmer councils and, in the case of Loan 3285, directly to EA and Surkhandarya North- West Main Power Network (KMPN ) office (KMPN).. KMPN is the entry point for receiving a complaint, known as a Grievance Focal Point (GFP). Upon receipt of a complaint, the GFP will establish contact with the PMU, makhalla and makhalla and other relevant bodies. The PMU will establish a complaint handling team headed by one of the KMPN management staff designated for handling grievances of the project. All complaints will be resolved in 15 days, and in case additional details are required, a maximum of 30 days will be used to resolve and close the complaint. The project level GRM does not prevent any AH to approach the national/government legal system to resolve their complaints at any stage of the grievance redress process. The APs can address their complaints to the courts at any time and not only after using the GRM. AP can also vent their grievances in the ADB Accountability Mechanism. 56. The National law on the appeals of individuals and legal entities3 obliges state authorities to deal with requests and provides a clear framework to handle the case. This law has recently replaced previous law on the requests of citizens and gives the right for individuals and legal entities to file requests. The requests can be in the form of applications, proposals and complaints and submitted in three ways: oral, written and digital format.

57. Any citizen in Uzbekistan has several channels to air his/ her complaints.  Village (or Makhalla) level: - Physical visit to Makhalla Citizens’ Assembly Office to meet with Chair; - Call to President’s Virtual reception (tel. number is 1000 or 0-800-210-00-00) or send message to President’s Virtual reception online (www.pm.gov.uz); - Call to hotlines established at each district or regional Khokimiyat; - Send written complaint (letter) to district/regional Khokim/ line Ministry/President;

3 Republic of Uzbekistan Law on the appeals of individuals and legal entities (№ЗРУ-378, 03.12.2014).

- Attend meetings with district/regional Heads of Sectors on integrated socio-economic development of regions (4 sectors established in each district); - Attend meetings with the leadership of line ministries and agencies that have to regularly meet with citizens in rural areas. If a citizen is not satisfied with the reply provided by Makhalla Chair, or he has received an incomplete response, the citizen can apply to the upper level, specifically to District Khokimiyat.

 District level: - Physical visit to Khokimiyat on citizens reception days to meet with district Khokim or deputy Khokims - Call to hotlines established in each Khokimiyat - Physical visit to Public reception offices under President’s Virtual reception and established in each district nationwide - Call to President’s Virtual reception (tel. number is 1000 or 0-800-210-00-00) or send message to President’s Virtual reception online (www.pm.gov.uz) - Send written complaint (letter) to district Khokim/ line Ministry/President - Attend meetings with district/regional Heads of Sectors on integrated socio-economic development of regions (4 sectors established in each district) - Attend meetings with the leadership of line ministries and agencies that have to regularly meet with citizens in rural areas

If a citizen is not satisfied with the reply provided at the district level, or he has received an incomplete response, the citizen can apply to the upper level, specifically to Regional Khokimiyat.

 Regional level: - Physical visit to Khokimiyat on citizens reception days to meet with regional Khokim or deputy Khokims - Call to hotlines established in each Khokimiyat - Physical visit to Public reception offices under President’s Virtual reception and established in each regional center nationwide - Call to President’s Virtual reception (tel. number is 1000 or 0-800-210-00-00) or send message to President’s Virtual reception online (www.pm.gov.uz) - Send written complaint to a portal of the Ministry of Energy (http://cabinetpm2.gov.uz/) - Send written complaint (letter) to regional Khokim/ line Ministry/President - Attend meetings with regional Heads of Sectors on integrated socio-economic development of regions (4 sectors established in each district) - Attend meetings with the leadership of line ministries and agencies that have to regularly meet with citizens in rural areas.

5.3. Proposed project level GRM

58. The AHs will be afforded all possible ways to express their dissatisfaction at the project implementation stage, if any. As part of the proposed grievance redress mechanism, the AHs may appeal any decision, practice or activity related to land or other property valuation, allotment and compensation.

59. All AHs will be informed of the procedures that they can use to resolve complaints. Information on the project level GRM will be distributed through the LARP information brochure, which will be distributed to the AHs through the khokimiyat, mahalla or village gathering of citizens or the farmers’ association.

60. The PMU will create a simple mechanism for handling and resolving complaints. The GRM provides a range of ways and methods for resolving complaints and conducting appeals processes. The main objective of the project complaints handling and resolution mechanism is

15 the timely and convenient project level process for AHs resolution of complaints received from them. However, the grievance redress mechanism does not prevent AHs from accessing the country’s legal system at any stage of the grievance redress process. AHs can submit complaints to the courts at any time and not only after using the GRM. The following is a brief description of the GRM process.

61. Level 1 (Mahalla/Rural Assembly). According to the grievance redress mechanism, complaints can be submitted to the mahalla, rural gathering of citizens, the council of farmers or directly to IA. Mahalla/Rural gathering will try to resolve the complaint within 15 days. Unsolvable problems will be submitted to the contact person of the next level of the GRM process.

62. Level 2 (National Electric Networks of Surkhandarya region). National Electric Networks of Surkhandarya region (NENS) office Main Power Network [MPN] MPNwill be the place to receive complaints, acting as the GRM. NENS will contact the mahalla and local organizations such as the rural gathering of citizens, the council of farmers of which AH is a member, and will try to resolve the issue within 15 days.

63. Level 3 (Project Management Unit). The PMU will regularly (every week) and upon request, ask the NENS about complaints. Upon receipt of an unresolved complaint from the NENS, the PMU will immediately take the following actions:

(i) Inform the applicant within five days the status of the complaint resolution; (ii) Inform the ADB headquarters and representative office; (iii) It will create a complaints handling group including the Head of the PMU, representatives from NENU, the district khokimiyat, the cadastre and land administration, the mahalla or rural community of residents and/or the farmers' association and/or women's associations.

64. The team will be led by a senior PMU staff member appointed to manage project complaints

(i) The group will advise the plaintiff and collect information about the plaintiff's questions; (ii) The Panel will also engage independent appraisers (in the case of complaints in need of evaluation); (iii) All complaints will be examined within 15 days, and if additional information is needed, the consideration and resolution of the complaint will take a maximum of 30 days; (iv) If the complaint cannot be resolved by the project complaint review team, the PMU will inform ADB and the District Hokimiyat about this.

65. Level 4 (Regional Hokimiyat). If the complaint is not resolved within 30 days, the plaintiffs or their representatives can submit their complaint to the Regional Hokimiyat. The khokimiyat has 15 days to resolve the complaint.

66. The PMU will be responsible for registering complaints, taking steps to resolve the problem, recording the meetings, and preparing a report for each complaint. The report on the complaints process will be submitted to ADB through the quarterly report on the implementation of the project as well. The entire GRM process is a subject matter of the semi-annual resettlement monitoring reporting.

6. LEGAL FRAMEWORK

67. This section describes the laws and regulations of Uzbekistan on land allotment and resettlement, as well as ADB policies and principles on involuntary resettlement. The project will be guided by the approved policy framework and standards as provided in the approved updated LARPs from Loan 3285.

6.1. Laws, Regulation, and Provision relating to LAR in Uzbekistan

68. In Uzbekistan, a land expropriation takes place for the State and public needs under the Land Code (LC) and other legal documents. The expropriation in this context refers to the taking away of privately used land for a state and public purpose by the government with or without the lease holder’s consent subject to laws of eminent domain, which stipulates prompt and adequate compensation. Recent legal documents issued by the Presidential Decrees and the Cabinet of Ministers of Uzbekistan foresee to protect citizen’s and legal entities’ private ownership to land and for the building and structures. Collectively, these regulations provide a sound basis for acquiring land for the State and public purposes and for compensating land users a replacement cost at market values for the affected structures.

69. In Table 6.1 below the summary of legal documents used in the development of current land acquisition and resettlement plan is presented.

Table 6.1: Legal instruments applicable for Land acquisition and Resettlement

Legal Framework Functional Relationship to Resettlement Land acquisition and resettlement The Land Code (LC) dated 30 April 1998 Describes a condition for permanent land expropriation and temporary land acquisition The resolution of Cabinet of Ministers (CoM) Regulates resettlement compensations for “On Approval of the procedure of damages to affected buildings, structures, and plantings in citizens and legal persons in connection with the settlements. the withdrawal of land plots for state and public needs” dated on 29 May 2006 #97 Civil Code (CC) dated on 29 August 1996 Regulates general rules of property seizure, determination of property cost and rights for compensation, terms of rights termination The resolution of CoM “On measures to Regulates resettlement compensations for the improve the procedure for granting land plots income loss, the value of agricultural loss for urban development activities and other belonging to landowners, users, tenants in non-agricultural purposes” dated on 25 May case of land acquisition. Also, it regulates the 2011 #146 provision of land to land compensation in case of agricultural and forest relates losses. The resolution of CoM “On amending and It defines the procedure of registration of titled adding to some decrees of the Republic of and non-titled land users and real property Uzbekistan, aimed the further improvement of owners. It also establishes the process and registration of cadastral document on a real payment method for compensation in case of property” dated on 21 September 2016 # 317 land acquisition. Presidential resolution “On measures to Confirms that the resettlement costs are paid improve the effectiveness of training and based on assessment documents prepared by realizing projects with participation of IFI by their methodology. international financial institutions and foreign government financial organizations” dated on 16 July 2018 #3857

Legal Framework Functional Relationship to Resettlement Presidential Decree “On measures on major Defines that land expropriation can be improvement of the investment climate in the implemented only after meaningful consultation Republic of Uzbekistan" dated on 1 August with PAPs. 2018 #5495 Presidential Decree “On measures to improve It defines the source of the Resettlement the system of protection of rights and legal budget in investment projects. interests of subjects of entrepreneurship” dated 27 July 2018 # 5490 Presidential Order F-5491(3 August 2019) “On additional measures to provide unconditionally the property rights of citizens and business entities” The Law of Uzbekistan on Protection of The purpose of this Law is to regulate relations Private property and Guarantees of Ownership in the field of protection of private property and rights dated 22 September 2012 # 336 guarantees of property rights. It regulated the entitlement of property owners to full market value compensation in case of acquisition for the State needs. Implementation of Land acquisition and resettlement Presidential Decree “On measures on major Defines that land expropriation can be improvement of the investment climate in the implemented only after meaningful consultation Republic of Uzbekistan" dated on 1 August with PAPs. The resolution prohibits a land 2018 #5495 confiscation without the consent of the Republican Centralized Fund. The resolution of CoM “On the procedure for It defines the source of compensation the formation and use of funds of centralized payments based on the type of projects. funds for the compensation to affected Establishes Republican Centralized Fund individuals and legal entities for the (RCF) as the main body which is responsible expropriation of land for the state or public for the compensation payments to AHs. The needs” dated 26 December 2018 # 1047 Supervisory Board of RCF decides on the allocation of funds for compensation. Presidential Decree on Additional measures Residents of Uzbekistan are allowed to for social support of citizens and legalize ownership rights to their unregistered implementation of a latest public campaign on and non-titled residential structures until 1st the recognition of ownership rights to illegally May 2019. The Decree defines the conditions built residential structures dated on 20 April for legalization. 2018 # PF 5421 The resolution of CoM “Additional measures Annex 2 of the Resolution clarifies the for the implementation of modern and definition of land expropriation for the State transparent mechanisms of the provision of and public needs. Also, it regulates the land plots with long-life inherited possession allocation of land plots after the involuntary rights for individual housing” dated on 28 resettlement of physical and legal entities. The January 2019 #63 responsible authorities for the implementation of LAR are defined. Categorization of vulnerable groups The resolution of CoM “On approval of the Regulates the mechanism to the determination order of the appointment and payment of of vulnerable groups and their entitlements social allowances and material (financial) assistance to low-income families” dated on 15 February 2013 #44.

Legal Framework Functional Relationship to Resettlement Tax Code of Uzbekistan Regulates compensation for a vulnerable group of people regarding applying for discounts or exemption from property taxes, land tax, income tax, and other taxes Presidential Decree “About measures to Annex 2 of this Decree fixes exact amounts of implement the law “On the state budget of the all types of social allowances to be given to Republic of Uzbekistan for the year 2020” low-income families in Uzbekistan dated 30.12.2019 # PP-4555 Labor Code and Law on employment Regulates labor relations of individuals employed with labor contracts by enterprises, institutions, organizations of all type ownership forms, including contracted by individuals. Establishment of restrictions and safety zones The resolution of CoM “On the approval of the This resolution defines safety zones for power rules of protection of power transmission transmission lines both horizontally and facility objects dated 26.12.2018 # 1050 vertically. This resolution applies to all infrastructures and facilities in relation to power up to 500 kV KMK 2.10.08-97 – Land allocation norms for This set of norms regulates the land allocation power transmission lines 0.4 – 750 kV for the temporary and permanent period during the construction of transmission lines

6.1.1. Constitution of the Republic of Uzbekistan 70. The Constitution of the Republic of Uzbekistan (December 8, 1992) provides that:

 Everyone shall have the right to own property (Article 36). The economy of Uzbekistan, evolving towards market relations, is based on various forms of ownership. The state shall guarantee freedom of economic activity, entrepreneurship, and labor with due regard for the priority of consumers’ rights, equality and legal protection of all forms of ownership (Article 53);  An owner, at his discretion, shall possess, use and dispose of his property. The use of any property must not be harmful to the ecological environment nor shall it infringe on the rights and legally protected interests of citizens, juridical entities and the state (Article 54);  The land, its minerals, waters, fauna and flora, other natural resources shall constitute the national wealth and shall be rationally used and protected by the state (Article 55) 6.1.2. Land code (30 April 1998) 71. The Land Code (LC) is the primary regulatory framework for land-related matters in Uzbekistan. The LC regulates allocation, transfer, and sale of land plots, defines ownership and rights on the land. It describes responsibilities of different state authorities (Cabinet of Ministers, province, district, city Hokimiyat) in land management; rights and obligations of the land possessor, user, tenant, and owner; land category types, land acquisition, and compensation, resolution of land disputes and land protection. The LC also defines the terms of rights termination on the land plot, seizure and land acquisition of land plot for state and public needs, and conditions of confiscation of a land plot in violation of land legislation.  According to the new version of the Code, currently, the granted lands for the construction of infrastructure, business, and residential houses shall be carried out within the three years. After that, the land will be taken back by local municipalities.  The land can be given for temporary use as a short term period (up to three years) or long term (from three to ten years).

 The Code clearly defines (i.e., Article 23) that the land for construction of power transmission line shall be allocated out of the low quality agricultural or non-agricultural lands. The legal entity whom the land was allocated cannot use and take possession of the land until property deed has been issued. 6.1.3. Civil Code (29 August 1996) 72. The Civil Code (CC) defines the legal status of participants of public relations, the grounds, and procedure of implementation of property rights and other proprietary rights, rights of intellectual property, regulates the contractual and other obligations, as well as other property and related personal non-property relations. The CC defines general rules of property seizure, determination of property cost and rights for compensation, terms of rights termination. 73. The CC provides that: a person whose right has been violated may demand full compensation for damages unless the law or the contract provides compensation for losses in a smaller size (Article 14, Clause 1). The Civil Code (Article 14, Clause 2) also specifies that losses are understood as:  expenses that the person whose right is violated, made or must make to restore the violated right;  the loss of or damage to property;  the revenues that this person would have received under normal conditions of civil turnover if his right had not been violated (lost incomes).

74. According to article 14, Clause 3 “If the person has violated the law, revenues received as a result of this, the person whose rights were violated, has the right to demand compensation along with other losses, lost profits in the amount not less than such profits.” 6.1.4. Resolution of the Cabinet of Ministers No. PKM-146 (May 25, 2011) 75. This Resolution is aimed to improve the procedure of granting land plots, protect the rights of legal entities and individuals on land, and improve the architecture of settlements and the efficient use of their land for construction by the Land Code and the Town Planning Code. This resolution has approved two Regulations: (i) Regulation on the procedure for granting land for urban development and other non-agricultural purposes, (ii) Regulation on the method of compensation for landowners, users, tenants, and proprietors (in case of residential land), as well as losses of agriculture and forestry. 76. The Regulation on the method of compensation for landowners, users, tenants, and proprietors, as well as losses of agriculture and forestry, includes the following:  Compensation for losses of landowners, users, tenants, and proprietors (hereinafter AHs);  Compensation for losses of agriculture and forestry;  cost of irrigation and developing the equal new land plot in return for seized irrigated agricultural land;  Cost of fundamental improvement of grassland and pasture;  Scheme for determination of losses of land possessors, users, tenants, and owners, as well as damages of agriculture and forestry;  Coefficients on the location of seized land plots.

77. In this LARP, the entitlements and compensation for AHs per resolution #146 have been included. According to this resolution, AHs are entitled to the following compensations: - The cost of the land plot under the ownership of legal and physical entities - The cost of residential houses, structures, unfinished structures and structures that are not directly affected but unviable to use after land acquisition. - The cost of fruit trees, windbreak forests and other perennial plantations - The cost of not harvested agricultural crops - Agricultural income loss (in case of land for land development compensation provided to AHs, then agricultural income loss will not be provided) 78. Compensation for AHs is provided in case of: - Permanent acquisition of land - Redemption of land

- Temporary acquisition of land 6.1.5. Resolution of the Cabinet of Ministers No. PKM 317 (September 21, 2016) 79. The losses of land possessors, users, tenants, and owners, as well as losses in agriculture and forestry, should be compensated before granting of documents certifying rights on the land plot. The regulation also orders that demolition of the house or building shall be done only after agreeing on compensation and providing replacement premises. The replacement procedure is done according to the Resolution of CoM № 63 which is detailed in section 7.2.15 in this report. The regulation orders that compensation has to be paid before starting any construction work. AHs whose land plots are seized and to whom land plots are granted, in case of disagreement with a defined amount of losses, can appeal to the court. In Uzbekistan, no monetary compensation for land to land for the affected residential lands is foreseen. Therefore, replacement land will be allocated in agreement with the physical and legal entity whose land is being acquired. This agreement is regulated through the Resolution of CoM № 63. This resolution shall be implemented together with the Resolution of Cabinet of Ministers #317 dated 21 September 2016. 80. In resolution # 317, there is no indication that in case of the above-mentioned purposes AHs will also not be compensated. Based on this we consider that even though the land is being expropriated for public needs; still, the compensation for AHs shall be paid. By this resolution, the Government defined the procedure of legalization cadastral document of the titled and not titled (illegal) land users. The main requirements for the legalization of non-titled land users are to provide i) explanation of circumstances of unlawful use of land, ii) certificate from local self-governed bodies on possession of the last 15 years, iii) payment of land tax for the previous five years. This resolution updates the compensation mechanism of agricultural and forest-related losses. Therefore, in the calculation of compensation, this resolution shall be used together with Resolution of Cabinet of Ministers #146dated on 25 May 2011.

6.1.6. Decree of the President of the Republic of Uzbekistan No. PP- 3857 dated July 16, 2018 81. The resolution “On measures to improve the effectiveness of training and realizing projects with participation of international financial institutions and foreign government financial organizations” partly provides that payment of compensation for the land acquisition, demolition of houses, structures, plantings within the framework of projects with the participation of International Financial Institutions (IFIs). If it is agreed and stated in agreements, then the project implementation procedure will be followed by authorized bodies following the requirements of IFIs or Foreign Governmental Finance Organizations (FGFOs). This resolution gives to Executing Agencies to implement ADB’s LAR or other principles in case of discrepancies between national legislation and ADB policies.

6.1.7. Decree of the President of Uzbekistan №5495 (1 August 2018) 82. The decree “On measures on cardinal improvement of the investment climate in the Republic of Uzbekistan" regulates that the seizure of land for state and public needs is allowed only after an open discussion with interested parties whose land plots are confiscated. It also sets that demolition of residential, industrial premises, other structures, and structures belonging to individuals and legal entities and seizure of land is allowed after the full compensation of the market value of immovable property and losses caused to owners in connection with such seizure. 6.1.8. Law of Uzbekistan on Protection of Private property and Guarantees of Ownership rights 336 (22 September 2012) 83. The purpose of this Law is to regulate relations in the field of protection of private property and guarantees of property rights. It regulates the entitlement of property owners to full market value compensation in case of acquisition of the property and land for the State needs.

84. According to the Law, withdrawal of the property, including a privately owned land, in cases of nationalization and requisition, is carried out only after payment of full compensation to the owner at market value, as well as losses incurred to the owner in connection with such a withdrawal, unless otherwise provided by law. The owner has the right to appeal in court the decision on land expropriation, confiscation, and requisition of property in private ownership. According to Article 19, the Demolition of buildings and structures before the payment of full compensation is not allowed. 6.1.9. Presidential Order F-5491(3 August 2019) 85. The order “On additional measures to unconditionally provide guarantees of ownership rights of citizens and business entities” has been issued after a number of breaching the national legislation in connection with involuntary resettlement and land expropriation for the State needs by local authorities in Uzbekistan. The main requirements of the Order are the following:  All the Involuntary resettlement activities in connection with the expropriation for the public and the State needs must be consulted with the centralized fund that was established under the Cabinet of Ministers to compensate for the LAR activities.  LAR Implementation can be carried out only after meaningful consultation with PAPs (residents and business entities) and valuation of compensation, and payment of the value of demolished buildings at replacement cost  Inappropriate/illegal issuance of the administrative documents by the respective authorities to residents and business entities will be firstly compensated by the special budget of the local respective authorities and sooner the compensation will be reimbursed by the guilty person who issued that document.  Starting from August 5, 2019, all the LAR activities in connection with the expropriation for the public and the State needs shall be carried out in 3 stages. 1st stage includes that all the LAR documents shall be submitted to the Cabinet of Ministers (CoM), 2nd stage includes the issuance of conclusion by the responsible persons at CoM, and in 3rd stage, the prepared conclusions shall be submitted to the Prime Minister for review and issuance of final decisions.

86. In general, this Order fully complies with the ADB’s SPS 2009 on Safeguard Requirements - Involuntary resettlement in regard to public consultation, compensation at replacement cost and provision of relocation costs. This Order clearly states that all the inappropriate documents that made property owners as illegal owners will be compensated as well. However, one discrepancy includes that property owner without any document (squatter) is not subject to compensation. 6.1.10. Resolution of Cabinet of Ministers № 1047 (26 December 2018) 87. This full name of the resolution is called “On the procedure for the formation and use of funds of centralized funds for the compensation to affected individuals and legal entities for the expropriation of land for the state and public needs.” This resolution appoints Republican Centralized Fund (RCF) under the Cabinet of Ministers for calculation and distribution of compensation during the involuntary resettlements to affected households and affected entities. Involuntary resettlement can be done only for the public and the state needs. RCF will be responsible for the Governmental level and internationally funded projects. This resolution sets the procedure of compensation payments to affected physical and legal entities. The Supervisory Board under RCF has the right to decide, and the decisions are compulsory to execute. The Board will also monitor the allocation of funds to AHs during the resettlement implementation period. Local managing bodies (i.e., Hokimiyats) should start the process by inquiring to RCF on the distribution of necessary funds for LAR. The Board will review this application, and the appropriate decisions will be accepted. Regional Hokimiyats issue the Decree on the allocation of compensation based on the RCF’s decision. The Decree serves as a legal instrument to provide compensation to affected physical and legal entities.

6.1.11. Presidential Decree No. PP-5491 (August 3, 2019) 88. The decree announced a one-time nationwide campaign for recognition of the ownership rights to the residential premises that were built illegally or built without proper documentation. The campaign ended on May 1, 2019. 89. To be eligible for the campaign and legalize ownership right to an illegally built or without a building permit structure following conditions shall be fulfilled:  The building should be built before the adoption of this Decree;  Aland plot or part of the land plot is not located on land which cannot be realized for housing purposes. These lands include the safety zones, protected areas, military zones;  Shall meet requirements of urban planning norms and rules, as well as its possession will not violate the rights and legally protected interests of other persons or pose a threat to the lives and health of citizens.  specific cases in which the non-titled buildings cannot be recognized by the Cabinet of Ministers of the Republic of Uzbekistan. 90. Recognition of the non-titled rights to buildings is carried out by the decision of the Hokim of the district (city) on the recommendation of the Commission after paying a one-time fee in the amount of five times minimum wages. 91. After legalization, the owner is granted a lifelong inheritable possession right to the land plot (part of the plot) on which the building was erected. The size of the legalized land shall not exceed the limits established by law. The legalization will be carried out without imposing a fine to the owner that was foreseen by Article 121 of the Tax Code of the Republic of Uzbekistan (see 5.2.12 Tax code). 6.1.12. Resolution of the Cabinet of Ministers № 911 of November 16, 2019 92. On November 16, 2019, the Cabinet of Ministers approved the “Regulation on the procedure for the seizure of land and the provision of compensation to owners of real estate located on the seized land." This Regulation defines the procedure for the seizure of land for state and public needs. The regulation applies if the land is in the possession, use or temporary use of individuals or legal entities (individual entrepreneurs, citizens of Uzbekistan, foreign citizens, business entities, NGOs) and does not apply to land owned (physical right of private ownership) by physical and legal entities. In this regard, it is not clear whether this provision applies only to lands that will be privatized in accordance with the Law on the Privatization of Non-Agricultural Land No. 552 (August 13, 2019).This key document relating to the LAR provides for the introduction of new rules regarding the procedure for compensation for land acquisition for public use and replaces Cabinet Resolution No. 97 (May 29, 2006). To date, the process was not transparent and did not have adequate protection for property owners. This rule applies to cases where land occupied by real estate is property on the basis of rights of permanent or temporary use. 93. The document clearly defines the term “state and public needs”, which, among other things, includes the implementation of investment projects aimed at improving infrastructure facilities, including the construction and reconstruction of energy systems and power lines. 94. In accordance with the procedure introduced in the document, land acquisition is allowed subject to both of the following conditions: (i) the owner / user / tenant expressly gives his consent and (ii) the project is approved by the local Council of People's Deputies, or the investment project is specifically mentioned in the Decree of the President or the Resolution of the Cabinet of Ministers. 95. According to this resolution, both local municipalities (khokimiyats) and investors can initiate the seizure of land in accordance with the procedures provided for in the rules. An open discussion is held with the representatives of the khokimiyat, investors and owners if land acquisition is necessary. A preliminary assessment of losses will be carried out by the khokimiyat or cadastral authorities. The Regulation mentions that “a complete list of real estate objects located on the site should be prepared, as well as other information relating to real estate”. Trees and standing crops are not mentioned as a subject of assessment and additional compensation, therefore Cabinet of Ministers Resolution No. 146 (05/25/2011) will be applied to compensate for these assets. Kengashs of people's deputies will consider the benefits and costs of land grabbing, and if there are sufficient resources, as well as if the benefits and costs

23 are exceeded, a decision will be taken to seize the land. The property that will be confiscated will be evaluated at the expense of the initiator. When 75% of the owners give their consent to the seizure of land, the initiator has the right to go to court to receive a binding order to sell the remaining portion of the 25% of the owners. In such cases, compensation should be determined by a court decision and not by an agreement on compensation. This procedure, in any case, guarantees the full cost of replacement. New items that are part of the compensation for confiscation must be provided within 2 years, otherwise fines are imposed for each day of delay. The demolition of real estate is permitted only after full compensation to its owner, as provided for in the compensation agreement (or by a court decision in the event of a dispute). The khokimiyats are not authorized to make decisions on the seizure of land. The khokimiyat or investor and owners, and this agreement is notarized. The initiator and the owner of the property must enter into an appropriate compensation agreement subject to notarization. The agreement should include the type(s) of compensation, its size and terms of payment and / or provision of other compensatory measures. Demolition of real estate without agreed compensation is not permitted. 96. After providing the agreed compensation to the owners: (i) the real estate / property is issued by the owner (ii) the draft resolution on the demolition is sent by the khokimiyats to the justice authorities to issue an opinion. The decision on the demolition of real estate is adopted only if there is a positive opinion of the justice authorities. (iii) The transfer of real estate located on the seized land to another person is allowed only with the written consent of the initiator after signing the Agreement or in case of termination of the Agreement (in the manner provided for by the Agreement, with the consent of the parties or in court). (iv) The owner who has acquired the property subject to demolition is the assignee of the rights and obligations of the previous owner arising from the Agreement concluded in accordance with this Regulation. (v) Monitoring the implementation of legal requirements for the seizure of land, the demolition of real estate, the resettlement of citizens, as well as the provision of compensation is carried out by prosecution authorities. (vi) The owner, by agreement with the initiator / investor, now has the right to carry out the demolition of property / structures at his own expense with the subsequent removal of all materials (recyclables) and construction waste , as well as with proper cleaning of the territory for the construction needs. 97. This procedure takes effect on January 1, 2020. It is also important to note that in case of untimely or incomplete provision of compensation by the project initiator, the khokimiyat must provide compensation with a subsequent appeal to the court with a request to recover compensation from the perpetrators. 98. The ability to store recyclables is a very important issue for displaced households (as they can use lifesaving equipment to build new homes). Previous Ordinance No. 97 (May 25, 2006) determined that all rescue equipment is the property of the investor (after compensation has been fully provided by the displaced AH). However, even with this strict requirement, most of the projects supported by international financial organizations in Uzbekistan (including projects funded by ADB) allowed displaced APs to save salvation as an additional measure of protection. During this LARP preparation, the issue of rescue materials was addressed by NENU in the light of the new Regulation No. 911. The new option/privilege provided by the relocated AH allows that, by agreement with NENU, AH will have the right to carry out the demolition of property/facilities at its own expense with the further removal of all materials and construction waste and with appropriate cleaning of the territory for the needs of construction. With the exception of the economic burden for AHs related to the complete “proper cleaning” of the area, several issues should be considered: (i) There is no definition in the Regulation “proper cleaning”. This may be an obstacle to the implementation of the project. (ii) Construction waste management issues are very important. Cleaning up residential yards can result in hundreds of tons of waste being thrown into neighboring areas instead of relatively remote designated areas. Therefore, this process should only be controlled by the Contractor. (iii) The Regulation does not contain specific time frames for the self-destruction of houses. In practice, people will not be able to meet the construction schedule, and the Contractor will wait until AHs clears everything.Based on Decree No. 911 and after considering the problems mentioned above, NANU will allow people to begin the process of self-destruction in order to obtain recyclables at least two weeks before the Contractor begins cleaning the

24 territory. The AG will also be able to collect rescue funds from their previous sites even during demolition (but during non-working hours of construction work). 99. This resolution defines the procedure for the appointment and payment of benefits for the mahalla for: a) low-income families with children under the age of 14, b) benefits for parents with low incomes for caring for a child until they reach the age of two and with; ) allowance for low-income families. In accordance with this resolution, the following types of families are eligible for benefits: • Families where the average monthly income does not exceed 52.7% of the minimum wage per person over the past three months (Along with the income that family members receive officially, members of the makhalla committee must also take into account additional factors, including land availability, employment status of family members and the presence of people in need of care); • Lost parents and children in the care of relatives; • Families in which one or both parents are disabled; • a widow raising two or more children under the age of 14 years living separately from other relatives; • a family with children with disabilities; • mothers or fathers raising children in a single-parent family. In this case, the fact of raising the child by the mother (father) in an incomplete family created by the mahalla; • families in which one or both parents are unemployed, who are registered with state employment agencies (regional and city departments of the Ministry of Employment and Labor Relations) as job seekers; • single pensioners. 6.1.13. Resolution of Cabinet of Ministers № 44 (15 February 2013) 100. This resolution determines the procedure for the appointment and payment of Makhalla allowances for a) low-income families with children under the age of 14 years, b) allowances for low-income parents for childcare until the age of two years and c) allowance for low-income families. According to this resolution the following types of families are entitled to benefits:  families where the average monthly total income4 does not exceed 1.5 minimal wages per person during the last three months. Along with incomes household members gain officially, additional factors are also to be considered by makhalla committee members, including the availability of land, employment status of family members, and presence of persons in need of care;  the preferential rights for makhalla allowances have families who have lost both parents and children involved in family education;  families where one or both parents are disabled children;  widow(er), raising two or more children under the age of 14, living separately from other relatives;  family with disabled children;  mothers or fathers who are bringing up the children in a single-parent family. In this case the fact of a child-rearing mother (father) in an incomplete family established by makhalla;  families in which one or both parents are unemployed who have been registered at state employment bodies (regional and city departments of the Ministry of Employment and Labor Relations) as job-seekers;  single retired persons. 101. The amount of allowances is determined by the Ministry of Finance of the Republic of Uzbekistan according to calculations submitted by the People’s Bank. According to the

4 The total family income are considered as earnings in the form of wages, property income, income of an individual entrepreneur, the amount of money from family members working abroad or doing business, pensions, scholarships and allowances (described in this explanation), other than the allowance or financial assistance received by the family, income from running a personal dekhkan farm and other incomes established by the legislation of the Republic of Uzbekistan.

25 interpretation of this Resolution by the Ministry of Finance5, the amount of financial assistance can be from 1.5 times up to three times of minimum wage6. The maximum duration of giving an allowance is up to six months. 102. The family, recognized by the citizens' assembly as the family in need, has the right to receive only one type of allowance or financial aid. 6.1.14. Tax code 103. The Tax Code (TC) is a regulatory framework for taxation related matters of individuals and legal entities. This law regulates compensation for a vulnerable group of people regarding applying for discounts or exemption from property taxes, income tax and other taxes stipulated in this TC. 104. By article 121, the use of entire land plot or expanding the territory without documents or illegally is subject for sanctions in the amount equivalent to:  Four times of land taxes for legal entities  Three times of land taxes for physical bodies According to the Presidential Decree 5421, this fine is not applied during the campaign period till 1st May 2019.

6.1.15. Resolution of Cabinet of Ministers # 63(28.01.2019) 105. The resolution of CoM “Additional measures for the implementation of modern and transparent mechanisms of a provision of land plots with long-life inherited possession rights for individual housing”. Annex 2 of this resolution defines the procedure for the provision of land for the State and public needs.

The state needs7 – provision of land plot for the needs of:

- the needs of defense and state security, the creation of protected natural territories, the creation and functioning of free economic zones; - fulfillment of obligations arising from international treaties of the Republic of Uzbekistan; - discovery and development of mineral deposits; - construction (reconstruction) of roads and railways, airports, airfields, air navigation, and aero technical centers, railway facilities, bridges, subways, tunnels, energy systems and power lines, communication lines, space activities, trunk pipelines, engineering, and communications networks ; - execution of master plans for settlements in the construction of facilities at the expense of the State budget of the Republic of Uzbekistan, as well as in other cases provided for by the legislation of the Republic of Uzbekistan; Public needs - the need for construction of: - automobile motorways and pedestrian walkways to buildings and structures, territories belonging to legal entities, regardless of legal forms, as well as individuals; - engineering communications to buildings and structures, territories belonging to legal entities, regardless of their legal form, as well as to individuals; - irrigation canals and other water arteries, reservoirs designed to supply water to the population, green spaces, and crops; - state educational and medical institutions, boarding schools, houses of mercy, as well as in the framework of public-private partnerships;

5 https://www.mf.uz/uz/news/2615.html 6 Since August 2019 the minimal wage was set at 223,000 UZS per month, thus the low-income line has been set at 334,500 UZS (35 USD) per month per person. Based on this methodology the official low-income line (as nominal indicator) is about 1.2 USD per day per capita. 7 Note: According to this resolution, land for the construction of TL for the section 1 is considered as allocation of land for the State needs.

- areas, as well as recreation parks, alleys, boulevards, recreation areas, lakes, reservoirs, ponds and other recreational facilities financed from the State budget of the Republic of Uzbekistan and funds of state organizations formed from sources not prohibited by law; - affordable residential buildings for typical projects in rural areas and cities as part of targeted programs. 106. It clearly defines what kind of organizations is eligible to get land in the frame of the State and public needs. According to the Resolution, there are 15 stages for a procedure for the provision of land for the State and public needs. 107. In case of allocated land is under the ownership of the legal or physical entity, the provision of a land plot for state and public needs for the interested organization is carried out only after the acquisition (procurement) of the land plot from the physical and legal entities in the established order. The decree on land acquisition is regulated through the Presidential Order #5495, which regulates that the seizure of land for state and public needs is allowed only after an open discussion with interested parties whose land plots are confiscated. It also sets that demolition of residential, industrial premises, other structures, and structures belonging to individuals and legal entities and seizure of land is allowed after the full compensation of the market value of immovable property and losses caused to owners in connection with such seizure. 108. The size of the land plot to be offered as a replacement for the acquired land due to the public and state needs is agreed with the owner of the affected land plot. In Uzbekistan, all the lands are to be allocated on the electronic platform by participating in the auctions. According to this resolution, affected households are exempted from the participation in auctions and land will be given by the Hokimiyats directly. A procedure for land allocation without auctions is done through an application to be submitted by the affected household to Hokimiyat. Hokimiyat then offers to AHs a suitable land. If AHs agree with the replaced land plot, then they shall declare their agreement by writing manually agreement letter 6.1.16. Resolution of the President # 4555 (30.12.2019) 109. This resolution is issued to approve and implement the law “On the State Budget for the year 2020”. It describes budget incomes and expenditures in 2020, spheres and amounts of the state duget spending, roles of different central and local government bodies in the process of state implementation of state budget parameters and other issues related to budgeting. 110. The resolution fixes the following minimum amounts which are considered effective since 1 February 2020.  minimum wage — 679,330 UZS/month;  basic amount for pensions calculation — 238,610 UZS/month;  minimum pension amount— 466,680 UZS/month;  allowance to disabled people who are disabled since childhood — 466,680 UZS;  minimum amount of allowances for elderly and incapable people who do not have necessary work experience — 286,390 UZS/month. 111. Annex 2 of the resolution fixes amounts of allowances amounts for families with children under the age of 14, child care allowances until the child reaches the age of two and financial assistances to low-income families. The Annex 2 parameters are given in the below table. Table 6.2. Financial aid and allowances amounts fixed in Annex 2 of the Repolution of the President of Uzbekistan #4555

Type of allowances and financial aid Amount (UZS)

1. Allowances for families up to age14 including: families with one child 131, 000 families with two children 217,000 families with three and more children 304,000 2. Childcare allowance up to 2 years 434,000

from 326,000 3. Allowance to low income families to 653,000 One-time financial aid to low income families in from 434,000 4. Karakalpak Republic and Surkhandarya province to 1,085,000 6.1.16. Labor code and employment law 112. These two documents are central legislation regulating labor relations of individuals employed with labor contracts by enterprises, institutions, organizations of all type ownership forms, including contracted by individuals. These legislations are considering interests of employees and employers provide the efficient function of the labor market, just and secure labor conditions, protection of labor rights and employees health, promote the growth of labor productivity, an increase of work quality, rising on this matter welfare and social livelihood level of the population. 113. Both ADB policy and the Uzbek law provide for the indemnification of APs who lose a job because of land/assets acquisition under a public interest project. The two, however, differ substantially on how the matter is conceptualized and resolved in practice. ADB policy compounds the case as an income rehabilitation issue and thus requires that the actual job income lost by the APs is fully reimbursed to them. This approach covers temporary and permanent job losses and is generally implemented through an allowance providing the APs their declared monthly salary (what should be substantiated by the supporting documents) for the number of months of business stoppage up to a maximum of 12 months which is the benchmark for permanent job loss. For informal permanent jobs without declared salaries, the approach is the same but based on the national minimum wage. To guarantee proper policy application the payment of the job loss allowances are to be directly disbursed to the APs by the project proponent. 114. The national legislation, instead, limits the matter to the payment as mandated by the Labor Code of fixed employment termination indemnities due by an employer to his employees and to the obligation of the project proponent to reimburse the employer of the cost of those indemnities mandate by the Civil Code. Such an approach excludes from job loss compensation informal employees without a declared salary, applies only to permanently affected jobs and does not automatically guarantee that the APs receive their job termination dues8. 6.1.17. Resolution of Cabinet of Ministers “About Approval of Rules of Protection of Power Supply Facilities” 115. The Resolution with the reference number 1050 dated 26.12.2018 is the legal text which regulates issues related to Right of Ways of power supply facilities. The resolution says that in case of agricultural land plot that is located on the right of way of power supply facilities including transformers, networks, substations etc., repair works on such power supply facilities can be implemented in a season when there is no crop on the land. If agricultural crops are damaged due to emergency repair works on power supply facilities, such crops must be compensated. 116. According to this resolution land plots of users located within the right of way of existing power supply facilities cannot be acquired permanently. In case such lands are needed to be acquired, then the requirements of the government resolution No.97, dated 29.05.2006 and No.146, dated 25.05.2011 shall be triggered, i.e. full compensation shall be paid due to land acquisition and before the land acquisition. 117. Land users whose lands are located in the right of way of power supply facilities do not have rights to construct structures, facilities, houses, plant trees or bushes which can disrupt the safe operation of the power facilities or block access to them. In such cases, a power supply company can apply to local administration with a request to demolish such facilities or plantings. No compensation is paid in this case.

8Based on the Labor Code of 1996, last amended on 2015 (Article 67) loss of employment is to be compensated with 2 months average salary plus a severance pay of a maximum of 1 month average salary depending on the length of the employment lost. Also according to the Civil Code (Article 14) all losses (including real damage, lost incomes) are to be compensated.

6.1.18. The National Construction Standards and Rules # KMK 2.10.08-97. “Land allocation standards for construction of 0.4 – 750 kV power networks” 118. Adopted on 22.05.1997 by the State Architecture and Construction Committee of Uzbekistan. This document specifies width of land strips and size of land plots to be temporarily and permanently allocated for construction of 0.4 – 750 kV power supply lines, transmission towers, transformer substations and switchyards. The document is intended for design and cost estimates development purposes. 119. The document specify the following formula to determine land plots required permanently for double column transmission towers: F = n (F0 + f) where F0 – land area to be occupied by tower, n – number of towers, f – 1 or 1.5 meter (depending on soil type) land strip area around a tower. For tricycle towers the following formula shall be applied: F = η π R2 where R – 1.5 meter radius circle around tower column, η – number of columns, The document mentions that lands required for installation of 1.0 kV line towers and towers of communication lines shall not be acquired from land owners and land users. 120. As per the document, width of land strips allocated temporarily for installation of power lines varies from 8 meters for 0.4 kV lines up to 32 meters for double-chain 220 kV lines. Land areas to be allocated for construction of switchyards and substations vary from 50 m2 to 25 hectares. The document mentions that based on conditions and methods of construction land allocation requirements can be fixed individually for each project. 121. Based on this document, a 15-meter wide land strip for a temporary period of three years will be allocated to NENU for construction power transmission towers and stringing power transmission lines. Civil works contractor(s) will clean the corridor before the start of construction works, therefore all the structures, houses, crops and trees are subject to demolition and cleaning.

6.2. ADB Safeguards for Involuntary Resettlement

122. ADB adopted its Safeguard Policy Statement (SPS) in 2009 including safeguard requirements for environment, involuntary resettlement, and indigenous people. The objectives of the Involuntary Resettlement Safeguard policy is to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre- project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. 123. The involuntary resettlement safeguards cover physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. The three essential elements of ADB’s SPS are: (i) compensation at replacement cost for lost assets, livelihood, and income prior to displacement; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. The SPS gives special attention to poor and vulnerable households to ensure their improved well-being as a result of project interventions. 124. The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. The calculation of full replacement cost will be based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments if any. Where market conditions are absent or in a formative stage, the borrower/client will consult with the displaced persons and host populations to obtain adequate information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and district, and other related information. The borrower/client will also collect baseline data on housing, house types, and construction materials. Qualified and experienced experts will undertake the valuation of acquired assets. In applying this method of valuation, depreciation of structures and assets should not be taken into account. The following are the basic policy principles of ADB’s SPS, 2009:

(i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and census of displaced persons, including gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate the resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (a) land- based resettlement strategies when affected livelihoods are land-based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (b) prompt replacement of assets with access to assets of equal or higher value, (c) immediate compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit-sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (a) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (b) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (c) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through a negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a final resettlement plan, including documentation of the consultation process promptly, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

(xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.3. Policy differences and reconciliation 125. A summary comparison between the Uzbekistan law and regulation and ADB policies, and reconciliation provisions to fill the gaps is presented in Table 6.2 below:

Table 6.2. Comparison of ADB resettlement safeguards with Uzbekistan law and regulation for land acquisition and resettlement NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK SOCIAL SAFEGUARDS REQUIREMENTS The legal and policy The analysis of national ADB Safeguard framework of the project is legislation shows that Policy Statement based on national laws and Uzbekistan is adopted Involuntary (2009) legislation related to land a number of Resettlement acquisition and presidential decrees compensation policy in and governmental Uzbekistan, that are resolution that fits described in Table 7.2 policies of SPS 2009 ADB carry out project screening and categorization at the earliest stage of project According to legislation, preparation ADB’s SPS 2009 will Categorization there is no categorization in when sufficient be used. Resettlement documents. information is available for this purpose. Type of project categorizations is A, B, C, FI.  APs with A. APs with the formal title A. Same in the formal title is compensated for lost principle/application. has to be land/other assets. No reconciliation compensated for needed. lost land/other B. APs with legalizable assets. or no legal title can be B. Same in Compensation  APs with legalized per Presidential principle/application. entitlements the legalizable Decree #5421. Only lands No reconciliation title have the of residential houses that needed. right to be are located in safety zones, compensated for safety zones, protected C. Per Resolution of lost land and areas, military zones cannot CoM #3857, in case of assets after the be legalized. discrepancies between EAs help them in International Financial

NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK legalizing their C. APs with non- Institution in terms of assets. legalizable titles considered payment of non-titled as legalization is compensation for the C. APs with no a burden of the APs. Non- land acquisition then legal title are legal APs have no right to IFI policies prevail. So compensated for be compensated for land ADB policy will be used lost non-land and non-land assets. assets. Compensation A. Permanent A. Permanent loss of land. A. Same in loss of land. Replacement land for legal principle/application for Replacement APs. legal APs. land as a Reconciliation needed preferred option both for principle and or cash application to allow the compensation at compensation of all full market rate. non-land losses of At least for legalizable and non- legal/legalizable legal APs, which shall APs. be covenanted. B. Replacement of leased B. Replacement land. Based on lease B. Same in principle. of leased land. replacement and Application to be Based on the compensation in cash all further improved. No replacement of losses including lost reconciliation needed. lost income income. To be reflected through through cash instruction for ADB compensation of projects. gross income x the remaining lease years or a replacement land lease. C. No reconciliation of C. Loss of C. Loss of principles and structures/ structures/buildings. Cash application needed. buildings. Cash compensation at market However, it is required compensation at cost for a lost item free of the establishment of a replacement cost depreciation, transaction protocol allowing the for a lost item costs, and other deductions. compensation of free of structures/ building at depreciation, replacement cost, transaction when the salvageable costs, and other materials remain with deductions. the developer or landowner provides full reimbursement to the owner. It is hoped that this can be formalized without legal reform but only a Decree for ADB projects or through the inclusion of additional safeguard covenants into the loan

NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK agreements which are equivalent of the international treaty or agreement. D. Loss of indirectly D. Loss of indirectly affected D. No reconciliation of affected items. assets. Law requires that all principles and Not affected losses including lost application needed. parts of an asset incomes are to be no longer usable compensated to all legal after impact will APs. have to be compensated as well.

E. Business E. Same in principle losses. E. Loss of business. Cash but ADB does not Reimbursement compensation at market consider opportunity of actual losses value for all cost. Application + business re- damages/opportunity costs reconciliation needed establishment incurred. The burden of to define a clear costs. For an proving opportunity costs methodology and application rest on the AP based on distinguish short- and based on tax recognized documented long-term losses. declared income evidence but no clear for a period of methodology. business stoppage. In the absence of a tax declaration based on maximum non- F. Same in principle, taxable salary. different in application. Already adjusted for F. Loss of trees: F. Loss of unproductive and previous ADB projects i) Unproductive. productive trees. but Application Irrespective of Unproductive as well as reconciliation shall be legal land productive trees affected by covenanted ensuring occupancy a public project are to be systematic law status compensated according to implementation, and compensation at the independent valuator's also cash market rate. report, but with no right to compensation is Application- have felled trees. provided by default, based on tree ensuring and use of type/ wood valuation standards volume or other fitting SPS 2009. methods ensuring AP rehabilitation. ii) Productive. Compensation at replacement cost based for application on various methods:

NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK tree reproduction cost, income lost (x tree type x market value of 1-year income x full production years lost). G. No reconciliation for G. Loss of crops. Loss of a policy is needed, but G. Loss of crops. crops to be compensated. shall be covenanted to Compensation of There are two forms of ensure that crops are crop in cash at compensation of loss of compensated at the market price. crops: i) compensation of moment close as much uncompleted agriculture as possible to the date production and ii) of calculation lost compensation of lost income. income by multiplying four (years) average income for the last three years. Involuntary Land Acquisition Resettlement Plan. There Partly different in Resettlement and are no requirements to principle and Planning, Resettlement prepare integrated and application. No assessment, Plan (LARP). stand-alone LARP. LAR reconciliation needed and valuation LARP planning entails similar but as law/regulation is of impacts preparation less extensive/simpler silent on this matter includes: assessment/survey efforts and SPS (2009) a) impacts than ADB Policy, as detailed requirements have assessment/AP below: been already applied in census; i. Measurement survey. previous ADB projects. b) definition of Land and buildings impacts Still, clear instructions entitlements, measured. Other impacts regarding ADB projects income/livelihood identified but not measured; ensuring the restoration ii. APs Identification. measurement of all strategy, Identifies only legal APs; impacts and the compliance & iii. Socio-economic survey. counting of all AP are grievance No comparable needed for mainstream redress requirements exist; purposes. mechanisms, iv. Valuation survey; i. Detailed institutional a) Land: valued at a market Measurement Surveys arrangements; rate based on a transactions to be mainstreamed for c) consultations survey. The valuation all impacts; results; includes transaction ii. Detailed count of d) monitoring costs/third party liabilities; individuals to be schemes; b) Buildings and structures. mainstreamed; e) budget and Replacement cost but the iii. The execution of the implementation salvageable materials survey is to be schedule. remain with the developer or mainstreamed; LARP requires landowner provide full iv. Valuation survey the following reimbursement to the a) The land is not surveys: owner; valued because of i. Measurement c) Trees/crops. Based on compensation land to survey. the methodology detailed in land; there is only Measures all section Compensation F. measuring land area affected items. and G. and valuation of land ii. AP Census. quality (productivity/soil

NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK Identifies all APs quality) to compensate and establishes land to equal land; legitimate b) Already reconciled beneficiaries for previous ADB based on legal projects. status. iii. Socio- economic survey. Provides background information on AP’ socio- economic features. iv. Valuation survey a) Land: If land market exist based on a survey of recent transactions; without land market based on land productivity/ income;

b) Buildings and structures. The replacement cost of materials, labor and transport and special features of building/structure without discounting depreciation, salvageable materials, and transaction costs; c) Trees/crops. Based on the methodology detailed in section Compensation.

Procedural A. Information A. Information disclosure. A. Different in principle mechanisms disclosure. No disclosure requirement and application. Resettlement- exists. Already reconciled for related ADB projects. documents to be timely disclosed

NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK in the AP language. B. Same in principle B. Public B. Public consultations. but different in consultations. Matters of local importance application. This is Meaningful to be publicly discussed with already reconciled for public local authorities. But no ADB projects. consultations are requirement to consult the to be held with APs directly. the APs. APs should be informed about their entitlements and options, as well as resettlement alternatives. C. No reconciliation is C. Grievance Procedures. needed. C. Grievance Each state agency/ministry procedure. A must follow to detail Grievance instructions (approved by Redress the government) on Mechanism registering and reviewing (GRM) is to be the concerns and claims established for from citizens. each project. Information on GRM to be communicated to D. Same in principle, the APs. but unsystematic in the D. Asset acquisition application. Application D. Asset conditions. Property can to be improved. acquisition only be acquired after full conditions. compensation is paid to APs. Property can be acquired only after full compensation is paid to the APs. Assistance to A. These APs A. There are no special A. According to vulnerable and are to be laws or regulations for Resolution #165 of severely identified, and livelihood restoration due to Cabinet of Ministers for affected AP special land acquisition and families living in assistance is to involuntary resettlement Surkhandarya in need be provided to impact. and who are not restore/ improve However, there are a officially registered as their pre-project number of legislative low-income families level of documents related to social can be given one-time livelihoods. support and livelihood financial allowance improvement measures amounting of 2 to 5 considered by the times of minimum government of Uzbekistan wage. Based on these to consider social norms, in this project,

NATIONAL UZBEK HARMONIZED ASPECT ADB REGULATIONS FRAMEWORK allowances and needy we can allocate one- families through Cabinet of time allowance Ministers resolutions (#350 amounting of 5 times of dated 12 December 2012, minimum wage. #44 dated 15 December 2013, and #165 dated 30.03.2017) and to consider disabled people through the Law on social protection of disabled people (#422-XII, 18 November 1991). According to the Presidential Decree #4555 dated 30.12 2019, the exact amount of all types of social allowances to low-income families within Uzbekistan is given

Thus, support of vulnerable groups of the population is provided on the regular base by the Government on central and local levels and does not require additional payments in connection with the project implementation.

7. COMPENSATION, ASSISTANCE AND BENEFITS

126. This chapter describes in detail the rights and types of compensation payments for property that is under the influence of the project.

7.1. Eligibility for Compensation and Assistance

127. Compensation eligibility will be limited by a cut-off date comprising the completion date of the data collection based on the last day of processing of the AH census data and loss record. The data collection completion date for the Surkhandarya region is March 10, 2020. Affected households located in affected areas and/or making any land improvements for the project will not be eligible for compensation. However, they will receive an advance notice asking them to vacate the land and dismantle the affected buildings before the start of the project. These dismantled buildings will not be confiscated and will not be subject to fines or compensation. Besides, in sections where there will be a change in alignment during the final detailed design, a new cut-off date will be determined.

7.2. Legalization and Registration of Lease/Ownership of land

128. The inventory of losses exercise established that no AH is unofficially using their assets and no AH exists without registering their land ownership /usership. However, at the time of the LARP update after the detailed engineering design and the DMS exercise, if it is found that unregistered land users are affected and claim compensation, the Cadastre and Land Administration will advise such affected land users to register or renew registration of their

37 land. According to the LARP, unregistered lands will be legalized and registered before compensation is paid. NENU will identify and list all AHs whose lands must be legalized and/or registered. To facilitate the legalization process, the PMU will make a request with a list of such affected households to the local Hokimiyat. The local khokimiyat will instruct the cadastre and land administration to assist the AHs in legalizing/registering their land. The Office of Cadastre and Land Resources will conduct an assessment and inventory of the land and buildings of each AH to prepare land lease/ownership documents.

7.3. Compensation and Property Valuation

129. This section describes the types of compensation payments for property that is being affected by the project.

7.3.1. Land

130. The compensation method for agricultural land, which exists in Uzbekistan, is based on compensation on the principle of "land for land". However, in situations where there is only marginal loss of land, the Government may calculate the cash compensation for the permanently acquired land. 131. For this power line, compensation for the loss of agricultural land is based on cash. This approach was chosen not only because the negative impacts are so small as to justify both logistically and economically for replacement plots, but also because it is preferable for the AHs themselves. 132. Compensation for the irretrievable loss of ownership of the affected agricultural land will be paid in the amount of four times the average net income over the past 3 years (from the impacted annual crop). 133. If A land lease becomes partially or completely unprofitable, land plots that are not affected by the project will also be compensated. This issue will be considered by the Office of the Cadastre and Land Resources and in case of disputes will be resolved with the participation of the local Hokimiyat and the Department of Agriculture and Water Resources. 134. Operating costs, registration costs, if any, will be borne by NENU.

7.3.2. Facilities

135. Buildings and structures (registered or not) will be compensated at replacement cost and without considering depreciation. In relation to partial impacts (walls, building fences, etc.), monetary compensation will be paid in the amount of replacement cost so as to be able to replace such structures. The unaffected parts of a structure will also be compensated, should they become unsuitable or unviable.

7.3.3. Crops and Trees

136. Loss income from crops planted on the affected land will be compensated in monetary value at replacement cost based on average net income computed based on the average income over the past 3 years multiplied to construction period years to restore the lands for an affected portion of land. The results of the reports of the Design Institute Uzdavyerloyiha are used as a reference to pay compensation for crop loss to AHs in this LARP. Loss of income from fruits trees and timber trees will be compensated in monetary value based on the market value of wood. Fruit trees were evaluated based on the average annual income for the past 3 years multiplied by the remaining productive life of the fruit-bearing trees. In the case of loss of timber trees, compensation will be based on the market value of their dry wood volume.

7.3.4. Loss of Income / Livelihood

137. Loss of income/livelihood will be compensated for the period of business interruption.This will be calculated based on the estimated average monthly income in the past

3 years multiplied by the number of months of business interruption. Workers from the affected businesses will be paid for lost wages for the duration of business interruption up to 12 months. In case of agricultural workers losing their employment as a result of land acquisition, monetary compensation will correspond to their salary (in monetary value and in-kind) for the remaining part of the agricultural year or contractual period whichever is higher.

7.3.5. Vulnerable Households

138. Vulnerable households, including women, headed households without support, lowincome household, a household headed by elderly with no support and household headed physically challenged people will be provided with a one-time additional allowance equivalent to 5 times of minimum wage. Additionally, members of vulnerable households will also be prioritized in project-related employment. Since 1 February 2020 the minimum wage is set at 679,330 UZS per month, thus the financial aid allowance is determined by the Presidential Decree #4555 of 30 December 2019 for the 2020. The makhallas and village assembly of citizens have a record of all households in the communities and will be tapped in identifying and certifying vulnerable households. As discussed earlier, though, the preminary socio-economic survey did not identify any household in this project that qualifies as a vulnerable household.

7.4. Compensation Assessment Procedure

139. All compensation payments for assets and income losses will be calculated at replacement cost. The LARP sets eligibility and entitlement provisions establishing compensation rates in accordance with the requirements of the Government of Uzbekistan (PKM No. 911; PKM No. 146, PKM No. 317) and ADB (SPS 2009).

140. Compensation for affected structures is based on the results of the market estimation of the cost of the specified object, including all the related payments(cost of materials, type of construction, labor costs, transportation), depreciation and transaction costs and relocation costs. The cost of reconnecting water, electricity, gas and telephone will also be included in the compensation (new plots of land should have similar services). Suitable residual AH materials may be collected free of charge.

141. The calculation of compensation of affected assets is calculated by an independent valuation company hired for this project. The results of the independent valuation company for the valuation of structures is used as a reference to pay compensation to the AHs in this LARP.

142. All types of compensation and assistance to be provided during the implementation of the project are summarized in the entitlement matrix below (see Table 7.1).

Table 7.1: Entitlement Matrix Specific- Affected Type Entitlement ations HHs A. Impact on Land A.1. Permanent All AHs, 1. Monetary Compensation at replacement cost by Agricult land losses Leaseholder providing compensation for loss of land use rights 9 ural caused by s with equivalent to 4 years of the net average income of the past 3 years (of the affected annual crops.); land tower 2. Unaffected portions of an affected arable plot will constructio Lifelong inheritable also be compensated if the same becomes n unviable after impact. possession/ 3. Transaction cost, registration fee, related to new permanent plot allotted will be borne by UNPN.

9 Based on the Tax authority information

Specific- Affected Type Entitlement ations HHs possession 4. Independent Valuation Companies will be engaged (hereinafter only in cases where AHs disagree with as All AHs) compensation rates determined by Surkhandarya branch of Uzdavyerloyiha Land Use Planning Institute. Temporary All AHs 1. Monetary Compensation at replacement cost by land losses providing compensation for loss of land use rights caused by equivalent to temporary period years of the net average income10 of the past 3 years (of the tower affected annual crops.); constructio 2. Unaffected portions of an affected arable plot will n and also be compensated if the same becomes transmissio unviable after impact. n line 3. Independent Valuation Companies will be engaged stringing only in cases where AHs disagree with compensation rates determined by Surkhandarya branch of Uzdavyerloyiha Land Use Planning Institute. A.2. Land Loss All AHs 1. Land for land compensation through the provision Reside of a land plot comparable in value/location to the ntial plot lost including services (or compensation to provide such services) to plots lost with registration land and transfer charges if any to be borne by the project; OR

2. Unaffected portions of a plot will also be compensated if they become unviable after the impact occurs. 3. All mandatory fees for registering the land, completion of required house design, surveys, acquiring permission for construction under the AHs name and any other related costs will be paid by UNPN. B. Impact on Structures Reside Full or All AHs 1. Monetary compensation at full replacement rate ntial / partial loss for affected structure/fixed assets free of Busine of salvageable materials, depreciation and transaction costs. OR ss structures 2. In case of partial impacts on structures (structure structur wall, fences, etc.), monetary compensation at es replacement rates to restore the remaining structure. 3. Unaffected portions of the structure will also be compensated at replacement value if they become unviable after impact. 4. Monetary Compensation at replacement cost to be determined by the Independent Valuator and cost of valuation shall be paid by UE.

10 Based on the Tax authority information

Specific- Affected Type Entitlement ations HHs C. Impact on Crops and Trees Agricult Loss of All AHs 1 Monetary compensation at replacement cost for ure crops primary (and secondary crops if any) on affected land, land-based on 1 year of production costs (inputs) plus an allowance equivalent to 1-year average orchar net income based on the average income over the d past 3 years. 2 Monetary compensation at replacement cost will be determined by Uzdavyerloyiha Institute. 3 Independent valuator will be engaged only in cases where AHs disagree with monetary compensation rates determined by Uzdavyerloyiha Loss of fruit All AHs 1. Monetary compensation for fruit trees will be based trees (including on the average annual income for the past 3 years the non- multiplied by the remaining productive life of the fruit-bearing trees. leased 2. Production costs (inputs) of trees till to cut date. landowner) 3. Monetary Compensation at replacement cost to be determined by the Independent Valuator and cost of valuation shall be paid by UE. 4. Felled trees will be kept by the AHs. Loss of All AHs 1. Monetary compensation for timber trees will be timber compensated based on the market value of dry trees wood volume. OR Production costs (inputs) of trees till to cut date.

2. Monetary compensation at full replacement rate for affected 3. Felled trees will be kept by the AHs. D. Impact on Income and Livelihood Employ Loss of Agricultural 1. Monetary indemnity corresponding to their salary ment employmen workers (in monetary value and in-kind11 benefit) for the from t from losing their remaining part of the agricultural year/or contractual period whichever is higher in monetary affecte affected contract value. d agricultural agricult land ural land

E. Vulnerable Households Vulner Low-income households, 1. Financial aid allowance is equivalent to be paid as able female-headed one time5 times of minimal wage given a lump Affecte households with fewer sum amount as fixed by at once. According to the Presidential Decree # PP- 4555 dated 30.12.2019 d than 2 adult income- = 653,000 UZS per AHs. Plus, 50,000 UZS as House earners, HHs with additional financial aid amount paid monthly to low income families according to the resolution of the

11 Products which workers used to receive as payment and/or additional benefit for on-farm work such as wheat, rice, hay etc.

Specific- Affected Type Entitlement ations HHs holds disabled family members) Cabinet of Ministers # 866 dated 14.10.2019. Total4086, financial aid allowance equal to 653for families in need is set 406,000 – 1,014,000 UZS + 50,000 UZS = 703,000 UZS per AHs. 2. Priority for employment in project-related jobs, training opportunities, self-employment, and wage employment assistance. F. Impact on Community Structures and Assets Comm Loss or Community- 1. Rehabilitation/replacement of affected unity damage to owned structures/utilities (i.e. footbridges, roads, Structu public Assets communication lines, water pipelines, power transmission lines, etc.) to pre-Project level. res and infrastructu Assets re and utility G. Any unanticipated Impacts Any unanticipated impacts identified during the Project implementation will be compensated in full at replacement rate, subject to independent valuation methodology.

8. INCOME RESTORATION

143. The income restoration plan includes improving the livelihood of the AHs, whose income would be adversely affected by the project, at a level not worse, and possibly better, than before the project began. According to ADB’s SPS, an AH whose productive assets would have suffered 10% or more, will be eligible for assistance and support in restoring their income.

8.1. AHs’ Income Restoration

144. Under this project, the AHs do not have significant losses in terms of productive assets (agricultural, pasture or fruit trees and vegetable lands). The analysis of the assets inventory data show that the maximum loss in percentage is 0.33% of total production assets. In this context, additional measures to restore the income of the AH will not be needed but, compensation for the losses recommended in the entitlement matrix will be followed.

145. Compensation at replacement cost. In this project, 21 households will be marginally but permanently affected by the loss of productive lands. Therefore, compensation at replacement cost for affected lands will be provided.

9. RELOCATION

146. As stated earlier, 7 households will lose their housing structures due to safety reasons and will need to be relocated. Relocation of affected households shall be implemented and compensated strictly according to the national legal texts of the Republic of Uzbekistan. The basic legal document regulating relocation issues in Uzbekistan is the Resolution of the Cabinet of Ministers "About Additional Measures to Guarantee Property Rights of Individual Persons and Legal Entities and to Improve Procedures of Land Acquisition and Compensations". 147. This resolution with the reference number 911 was adopted on 16.11.2019 and became effective on 01.01.2020. It sets out procedures for payment of compensation to individuals and legal entities in case of acquisition of residential lands for public needs and investment projects. This regulation deals with residential land plots, houses, building and structures of individuals and legal entities. The regulation does not apply to privatized residential land plots. 148. The following are the general principles and procedures of the resolution to be followed for the acquisition of residential land of the identified 7 households (Annex 1, Table A2).  Acquisition of land shall be carried out with land user’s agreement, based on the resolution of Councils of People’s Deputies as well as resolutions of the President and Cabinet of Ministers of Uzbekistan.  Based on such resolutions local Hokimiyats shall issue their resolutions for demolition of real estate facilities standing on the land acquired to be acquired. Resolutions of Hokimiyats shall be reviewed and approved by local justice departments.  Compensation agreement must be prepared and signed by the initiator of land acquisition and the land user. Agreement shall be effective after official notary certification. Structures existing on the acquired land can be demolished only after full payment of compensation indicated in the compensation agreement.  Compensation agreement shall include conditions and amounts of relocation including hiring of temporary living space, missed profit, times frame of compensation payments, other compensation and relocation conditions which will be agreed by land user and initiator of land acquisition.  Compensation amounts including relocation costs shall be evaluated by a licensed valuation firm. Initiator of land acquisition shall pay for the hiring of a valuation firm.  Demolition of real estate facilities, both with formal title or without, due to land acquisition is allowed only after full compensation of the facilities and losses at market value.  In case if lands are acquired for public needs by local Hokimiyats, compensation shall be paid from the fund of the National Fund for Land Acquisition and Resettlement Compensation.  If lands are acquired for investments project then the investor organization will be responsible for payment of compensation, provision of houses or apartments, and temporary housing, as well as the reimbursement of all relocation costs.  Local Hokimiyats shall disclose land acquisition and resettlement related resolutions, dates and venue of consultations with APs, consultations minutes and other related information on their web sites and/or on mass media.  Land users may appeal to a court of law on resolution of district/town Hokim on demolition and estimation of the value of residential, manufacturing, and other-purpose buildings, facilities, and plantings to be demolished. 149. The following components shall be compensated due to land acquisition and demolition of real estate properties: i. market value of real estate facilities; ii. market value of land use right; iii. relocation costs;

iv. cost of temporary renting of other real estate facilities; v. loss of profit; vi. other costs and damages incurred due to land acquisition. 150. The following types of compensations can be provided for land acquisition and demolishing real estate properties: i. cash compensation; ii. “land for land” compensation iii. other equivalent real estate properties; iv. other types of compensation which can be agreed in compensation agreement. 151. In case of “land for land” compensation, a similar size land plot in the same district (town) shall be provided to AP. The resolution does not specify how far a compensation land shall be located from present location. 152. Salvage materials from the demolished real estate facilities can be taken by owner in case these facilities are demolished at the expense of the owner. This issue shall be agreed between owner of the facilities and the initiator of land acquisition. 153. Local Hokimiyats shall continually inform Cabinet of Ministers about the land acquisition process, payment of compensations including relocation, demolishing of real estate facilities and implementation of construction works on the acquired land. 154. The affected structures in the resettlement budget table have been estimated based on the market value by an independent valuation company, used in a similar project.

10. BUDGET AND RESETTLEMENT FUNDING

155. This section contains a detailed budget for all resettlement activities, including all compensation payments, assistance costs, and LARP implementation costs.

156. To ensure that sufficient funds are available for the tasks of LAR, NENU will allocate 100% of the funds for compensation of replacement costs and expected benefits according to the calculations in each LARP plus unforeseen expenses prior to the implementation of the LARP. PMU will be responsible for the timely allocation of funds for the implementation of each LARP. The PMU will compensate for the loss of property and other expenses in accordance with the social assistance standards established in the LARP and reflected in the entitlement matrix.

157. Detailed compensation information for each category is presented in the following subsections. The compensation costs listed are approximate and indicative, taken from other similar project under the same ADB loan. The resettlement budget shall be updated after the detailed engineering design becomes available and confirmed by a licensed valuation firm and by requesting tax/income reports before payment of compensation and assessment of actual impact.

9.1. Temporary Impact on Agricultural Land Holdings

158. Compensation for the temporary loss of the right to use the affected agricultural land is calculated according to the following formula:

Compensation = Total area of land affected (ha) x net profit (average net profit for the last 3 years)

159. Data for calculating compensation come from affected farmers and other secondary sources. For calculation, the average net profit is used. However, during compensation payments, farmers will need to provide a tax return.

9.2. Permanent Land Acquisition

160. Permanent land acquisition is required for the construction of transmission line towers. Compensation for the permanent loss of land use rights is calculated using the following formula:

Compensation = total area of affected land (ha) x net profit based on average earnings over the past three years x 4.

9.3. Harvest Compensation

161. The PMU will take on responsibilities to minimize and prevent the negative impact on to the AHs. So, the beginning of all construction works will be planned to be initiated at the time of completion of harvesting. In case this condition cannot be observed and there is a need to immediately begin the construction work, the PMU shall compensate for crop losses (primary and auxiliary crops) from the affected lands based on the following formula:

Compensation = (total area of the affected crop) x (1 year of production costs per 1 ha) + (1 year of average net profit from 1 ha based on the average for the last 3 years).

162. The amount of compensation shall cover all expenses for sowing and caring for the crop (tillage, oil and gas, chemical fertilizers, seeds, labor costs, organization of irrigation, etc.) as well as lost profits.

9.4. Trees and Forestry Vegetation

163. The loss of trees, if any and forestry vegetation will be compensated based on the evaluation report of an independent evaluation company. The exact number, types and compensation amounts for loss of trees and forestry vegetation will be determined during updating/finalization of this LARP. As of this time, it is noted that no affected trees were found but only forest vegetation on potentially affected state land was found. The proposed budget is indicative, based on a similar previous LARP and not based on any actuals. As stated above, the valuation report shall finalize this.

9.6. Consolidated Budget

164. The preliminary budget estimate for implementing this LARP is UZS 1,361,853,653, approximately USD 142,526 converted using the ADB Book Rate as of 1 April 2020. The budget items are shown below in Table 9.1.

Table 9.1: Consolidated Estimated Budget

Cost Estimate, Cost Estimate, № Description UZS USD (A) Direct Cost 1 Temporary impacts (Crops) 114,006,480 11,931 2 Trees and forest vegetation 38,002,168 3,977 Building and structures 3 replacement and allied costs for 1,197,068,040 125,281 relocation Subtotal (A) 1,349,076,688 141,189 (B) Indirect cost 1 Reimbursement of Valuation fee 7,999,455 837 Consultations, GRM 2 4,777,510 500 administration (lump sum) Subtotal (B) 12,776,965 1,337 Grand Total 1,361,853,653 142,526

11. INSTITUTIONAL ARRANGEMENTS

165. This section provides a comprehensive assessment of institutional capacity and resource potential for the preparation, implementation, and monitoring of resettlement activities, and describes additional measures necessary to increase institutional capacity. It describes the organizational procedures for making payments, as well as the progress of implementation, including how the preparation, approval and implementation of the relocation process will be related to the award of contracts and the start of construction work on the project.

166. NENU – the EA, will bear overall responsibility for the implementation of the LARP and will provide the entire budget for the implementation of the LARP. There are other relevant government agencies that will also be involved in land allotment and resettlement (LAR) activities, such as the local khokimiyats of the Surkhandarya region and the branches / divisions of the National Cadaster Committee.

10.1. PMU of JSC "National Electric Networks of Uzbekistan"

167. JSC "National Electric Networks of Uzbekistan" will have a common responsibility for all aspects of the program. The Project Management Unit (PMU) of NENU as the implementing agency will be responsible for the day-to-day management of the project, including interagency coordination, as well as for the implementation of LARP and monitoring of compensations and payments through the in-house Resettlement Specialist (RS).

168. RS of the PMU will be directly involved in all aspects of planning, implementation, interagency coordination, monitoring and reporting related to land acquisition and resettlement. The RS will, if necessary, be supported by the relevant project consultants, as well as information from the Design Institute, executive district/city and the Department of Land Resources and State Cadastre.

169. The “National Electric Networks of Surkhandarya region” (NENS) is one of the branch networks of the JSC “National Electric Networks of Uzbekistan”, responsible for the transmission of electricity and the maintenance of high voltage power lines and substations in the southern region of Uzbekistan. The JSC "National Electric Network of Uzbekistan" is a joint- stock company, responsible for sustained and regular power supply to consumers, as well as the maintenance of the high voltage power supply national networks in constant proper technical operation. NENU has fourteen regional branches. Through its branches, electricity is transferred from the power station to the regional energy systems.

170. NENS will be the starting point for the receipt of the complaint under the GRM process by acting as the contact body dealing with complaints. In addition, NENS will provide on-site monitoring of LARP implementation and assist the PMU in implementing the LARP activities.

10.2. Office of Land and State Cadastre

171. This is a permanent government body at the district and city levels which plays an increased role throughout the implementation of the project. It is responsible for: (i) identification of land losses by landowners and land users, as well as losses of agricultural production; (ii) determining the extent and area of land restitution, including the removal and temporary storage of the productive soil layer; (iii) determining the need for sanitary protection zones and water protection zones around structures; (iv) preparation of proposals for the allocation of equal value lands based on the principle of "land for land”; (v) research on land allotment alternatives currently used by developing unused lands;

(vi) approval of the Enactment Act; (vii) amending government orders on land use and land ownership, as well as other cadastre documents.

10.3. District khokimiyats of Surkhandarya region

172. District khokimiyats will actively participate in the consideration and implementation of LARP and establishment of a Land Allocation and Evaluation Commission. They will participate in the establishment of District Land Allocation and Resettlement Commission (DLARC) with the following functions: (i) indicate the location of buildings and structures affected by the project; (ii) select land for construction sites; (iii) prepare and approve legislative acts on the right (lease) to use land plots and; (iv) approve resolutions on land use rights.

173. In addition to the permanent members, the Commission may include representatives of NENU as well as affected persons including legal entities and individuals. The Land Allocation and Assessment Commission, as part of the District Land Allocation and Resettlement Commission is expected to consist of the following members: (i) NENU (ii) Local Department of Agriculture and Water; (iii) Local Environmental Protection Agency; (iv) Uzbekistan Farmers Council; (v) Chairmen of the Mahalla Committees; and, (vi) Representatives of APs

10.4. Community-based Organizations and Non-Governmental Organizations (NGOs)

174. The Farmer and Farm Associations (FFA) and the Mahalla Committees will be involved in relocation activities to ensure the rights and interests of the affected households. Implementing the LARP will require close coordination with local Mahalla committees and farmer associations. This coordination will help NENU in the following: (i) Dissemination of information related to LARP; (ii) Verification of timely payment of compensation to relocated households; (iii) Receive early warning of complaints from relocated households; (iv) Checking whether relocated vulnerable families have been identified in accordance with the requirements set forth in this LARP; and (v) Obtaining information on any unplanned consequences, if any, that affect the displaced households.

175. Community-based organizations and NGOs will ensure that vulnerable households, if any, receive adequate support in accordance with the national social support program.

10.5. Independent Valuation Companies

176. Independent valuation companies are accredited private companies with a valid valuation license. These companies will be involved in estimating the replacement cost of the affected assets.

177. Figure 10.1 below illustrates the institutional and project implementation mechanisms for this project.

Figure 10.1: Project Implementation Chart

Cabinet of Ministers JSC «NENU» ADB

Surkhandarya Internal PMU region monitoring

Regional and District Office of Land NENU Resources and State Cadastre (including the Committee on Land Allocation and Assessment and the Independent Affected Committee on Land Valuation households Allocation and Company (if Resettlement) AH does not agree)

Farmer Councils, Mahalla Committees

Consultation Information exchange Reporting

12. SCHEDULE OF LARP UPDATING AND IMPLEMENTATION

178. This section provides a detailed implementation timeline for all key land acquisition and resettlement activities, linked to the project schedule for the construction work.

Table 11.1: Stages of LARP Activities

Stage Event Responsible The timing

A LARP PREPARATION Resettlement expert through January- April, 1. LARP Preparation technical assistance and 2020 specialist of NENU Submission of the project to ADB Resettlement expert as part of 2. and the Government of Uzbekistan technical assistance, ADB and April, 2020 for comments and approval NENU

3. AH disclosures NENU April - May 2020

EPC MOBILIZATION AND B DETAILED DESIGN III Quarter 2020 PREPARATION C LARP IMPLEMENTATION After completion LARP update after final detailed and approval of 4. NENU/PIC design decision the detailed design After the completion and 5. Compensation plan preparation NENU/PIC approval of updated LARP by ADB Before Public consultations and information 6. NENU/PIC/Contractor Compensation to disclosure on LAR activities AHs Prior to awarding a contract for any 7. Compensations to AH NENU construction work that entails land acquisition It should begin at Monitoring to assess the the same implementation of LARP within the 8. NENU time, when the AP filing of the report on LARP will receive implementation compensation. 9. Construction Started After paying all compensation D MONITORING Before submitting Internal 10. NENU a monitoring Monitoring: AH Dissemination report Every six months Preparing and submission during the 11. NENU Monitoring Reports to ADB implementation of the project

AH=affected household; EPC=Engineering, Procurement and Construction; NENU=JSC (Joint Stock Company) National Electric Networks of Uzbekistan; PIC=Project Implementation Consultant

13. MONITORING AND REPORTING

179. While effective institutional arrangements can facilitate implementation, effective monitoring will ensure compliance with the progress and pace of implementation, as originally planned. Monitoring is important to ensure the effective implementation of LARP, timely identification of unforeseen consequences associated with land acquisition activities and the adoption of appropriate measures on them.

180. The internal monitoring of LARP implementation will be carried out by NENU. For this, the PMU will appoint a Resettlement Specialist in charge. Implementation of monitoring will be carried out in close coordination with the local khokimiyats and community and non- governmental organizations. Internal monitoring will be carried out in parallel with the implementation of the project, and at different stages, respectively. By monitoring, NENU will be able to provide:

(i) in the event that there are any unforeseen social risks and consequences during the construction, implementation or operation of the Project that were not considered by the LARP , immediately inform ADB about the occurrence of such risks or impacts, with a detailed description of the event and a proposal for a plan and corrective actions; and (ii) report any actual or potential violations of the measures and requirements set forth in the LARP as soon as they become aware of the violation

181. Indices of internal monitoring will be associated with immediate actions to implement LARP and its interim and final results. This information will be collected directly on the ground and from the district land services and cadastre. The information will be used to evaluate the progress and results of the LARP implementation and adjust the work program, if necessary. Quarterly reports will be included in the standard supervision reports submitted to ADB. These monitoring activities will continue until the completion of all construction works and constantly provide semi-annual reports. These reports shall be submitted by EA to ADB. The PMU will disseminate relevant information from such reports to the APs. Specific interim monitoring steps will include:

(i) AH disclosures; (ii) Status of land acquisition and compensation payments for land; (iii) Compensation for affected structures and other assets; (iv) Relocation of AHs; (v) Payments for the loss of assets;

182. It is noted that the IR Policy Principle #12 of ADB’s SPS says "Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved ...... " Therefore, the semiannual monitoring report that should start from loan effectiveness, shall include reporting on the evaluation as well. A separate evaluation report will not be required.

183. Apart from the semi-annual monitoring report mandated by ADB’s SPS, upon completion of the LARP’s implementation, the resettlement specialist of the PMU will prepare and the EA will submit to ADB a LARP implementation completion report indicating the completion of compensation payment to the 28 AHs (including 7 households for relocation). This LARP implementation completion report is subject to possible verification by ADB, which shall be the basis for issuing notice of commencement of construction works to the site preparation contractor.

ANNEX 1. INFORMATION ON LAND ACQUISITION IN SURKHANDARYA REGION Table A1: Scope of land acquisition and Requisition of the project in Surkhandarya Region Permanent Temporary Total land land % of № Names Farmers land area (ha) acquisition Loss Requisition (ha) Altinsay district 1. Nodir Golib 363.50 0.14 0.04 10.50 2. Diyorbek kelajak sari 372.00 0.13 0.04 12.00 3. Askarsoy chorvalari 303.20 0.08 0.03 4.80 4. Rahmonberdi Chorvalari 66.25 0.06 0.09 5.70 Total: 1104.95 0.41 33.00 Denov district 1. Kafolat-sarkor-denov 1607.00 0.17 0.01 13.80 2. Hamidbek Samirbek 650.00 0.32 0.05 19.80 3. Yuldoshov Shamsiddin 447.00 0.10 0.02 9.30 4. Qodirov Ahmad Fayzulaevich 805.00 0.22 0.03 9.30 5. Ziyorat Saitov 468.00 0.17 0.04 14.70 Total: 3977.00 0.98 66.90 Sariasia district 1. Temurov Fakhriddin 2179.00 0.31 0.01 16.50 2. Zokir Guliston 2759.00 0.06 0.002 2.70 3. Ali akbar nurmuhammad obod 12.20 0.04 0.33 1.20 4. Xabib Ermoniy 528.50 0.05 0.009 4.50 5. Shohruh Barlos 64.30 0.03 0.05 2.10 6. Jasurbek Habibzoda Chorvasi 440.20 0.05 0.01 4.80 7. Zuxriddin Ikbol 73.90 0.14 0.19 9.00 8. Hsor Kuchkorlari 458.40 0.08 0.02 7.50 9. Kuldoshali Davir 100.00 0.09 0.09 7.50 10. Barakat 13.60 0.03 0.22 0.75 11. Imkon 590.70 0.05 0.008 5.70 12. Jahongir Sulton Sunatbek 166.90 0.16 0.09 9.00 Total: 7386.70 1.09 71.25 Total in the region: 12468.65 2.48 171.15 Table A2: Land Acquisition in Surkhandarya Region Leading to Relocation Permanent Temporary Total land land % of № Names Farmers land area (ha) acquisition Loss acquisition (ha) Sariasia district 1 Rakhmonov Iskandar 0.14 0.14 100% - 2 Rakhmanov Sunatilla 0.16 0.16 100% - 3 Mandonov Abdumajit 0.12 0.12 100% - 4 Ashurov Toxir 0.20 0.20 100% - 5 Kucharov Tojiddin 0.30 0.30 100% - 6 Sharipov Bozor 0.08 0.08 100% - 7 Mukhammadova Zarina 0.05 0.05 100% - Total: 1.05 1.05 Table A3: Land Requisition of Surkhandarya region – State Lands Permanent allotment of Temporary allotment of Name district reserve lands reserve lands 1 Altinsay District 1.36 89.40 2 Denov District 0.49 35.40 3 Sariasia District 1.08 81.75 Total in the region: 2.93 206.55

ANNEX 2. PROJECT INFORMATION BROCHURE

A. Introduction and Project Description

1. A Draft Land Acquisition and Resettlement Plan (LARP) has been prepared for the project, "Guzar-Regar 500kV Power Transmission Line Rehabilitation Project” under the ADB Loan 3285 Northwest Region Power Transmission Line Project. This project aims to improve export-import and development of the electricity industry between the governments of the Republic of Tajikistan and the Republic of Uzbekistan. It will restore the 63.36 km 500kV “Guzar-Regar” overhead line in the Surkhandarya region, Republic of Uzbekistan.

2. The Project's scope includes two components, such as (i) reconstruction of power lines 500 kV 63.36 km long; and (ii) support for institutional development, capacity building and project management: including advisory services to improve operational safety, build capacity and manage the project, and oversee its implementation. The Project will have both permanent and temporary impacts in terms of land acquisition. Permanent land acquisition includes loss of marginal land permanently required for the transmission line towers and poles construction and the loss of land underneath housing structures for safety reasons. There may not be permanent loss of trees due to the project. Temporary land requisition includes loss of land required during construction which may cause loss of crops for one season due to the construction of transmission line towers and poles.

3. The draft LARP is based on a feasibility study and preliminary lines route alignment. This LARP is in its draft form at the moment as it is based on preliminary surveys. Land for permanent acquisition has been identified and the sites have been finalized. Similarly, the line route for the transmission route is almost final subject to minor modification during the detailed and final design. Exact route alignment lines are not detailed and final at this stage. Therefore, assessment has been done based on the inventory survey which is walkover surveys. The executive agency will be responsible for finalizing the route alignment prior the construction and the impacts will be updated accordingly. Temporary impacts in terms of loss of crops for the transmission line will be actually known during the final survey and prior to construction. A "design and build” contractor will be mobilized to complete the design before the LARP is finalized.

B. Impact on Land Acquisition and Involuntary Resettlement (Feasibility Stage)

4. The impact of the project in terms of land acquisition is limited to three districts such as Altinsay, Denov, and Sariyosio in Surkhandarya region. Assets inventory and census and socio- economic survey were carried out based on the feasibility study. A total of 5.41 hectares of land will be acquired permanently for the project, of which 2.48 ha is classified as arable/crop land of private users and 2.93 ha is state forest land. Similarly, 377.7 hectares of land is likely to be impacted temporarily due to the construction right of way of transmission line towers and poles, of which 171.15 ha is arable/crop land of private users and 206.55 ha of land is classified as state reserve land. A total of 7 households will be physically displaced due to safety reasons for the high-tension overhead cables, their land totaling 1.05 ha. The project may not have impact in terms of loss of trees. The crops being cultivated may be affected for a period of one season during construction of the transmission line.

5. The total number of affected households, as recorded during the census exercise is 28, which consist of 21 households permanently marginally losing land as well as losing land temporarily, and 7 households that will be physically displaced. The total number of affected persons is approximately 151 (89 males and 62 females). The number of severely affected households is 7 for physical displacement due to permanent land acquisition. According to the definition of vulnerability adopted by the project, there are no vulnerable affected households.

C. Consultation and Disclosure

6. Consultations were carried out with stakeholders during the census and socio- economic survey and assets inventory exercise as part of the project preparation. Consultations will be continued throughout the project cycle. Additional rounds of consultations with APs will be required while updating of LARP during detailed design and during LARP implementation. The next rounds of consultations will occur during detailed design and when compensation and assistance are provided.

7. Copy of the draft LARP (full report) will also be translated into the Uzbek language and will be made available at district level especially in the Khokimyat upon approval. The detailed report will be available for the APs as and when asked for. Copy of the draft LARP will be disclosed on ADB’s website upon approval. The same procedure will also be followed during the disclosure of updated/final LARP during detailed design.

D. Grievance Redress Mechanism

8. A grievance mechanism will be established to allow affected persons appealing any disagreeable decision, practice or activity arising from land or other assets compensation. Affected persons will be fully informed of their rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey, and time of compensation. Care will always be taken to prevent grievances rather than going through a redress process. The grievance mechanism should not impede access to the country’s judicial or administrative remedies. Affected persons can approach the country’s court of law at any time and independent of grievance redress process.

E. Legal Framework, Compensation Eligibility and Entitlement

9. The legal and policy framework of the Project is based on national laws and legislations related to land acquisition and compensation policy in Uzbekistan and ADB’s Safeguard Policy Statement 2009 (SPS). APs entitled for compensation under the project are:

(i) All APs losing land either covered by legal title/traditional land rights, legalizable, or without legal status; (ii) Owners of buildings, crops, plants, or other objects attached to the land; and (iii) APs losing business, income, and salaries.

10. It is noted that eligibility for compensation is limited by a cut-off date. APs who settle in the affected areas after the established cut-off date will not be eligible for compensation. Compensation will be paid at replacement cost. Based on the analysis of applicable laws and policies and ADB’s involuntary resettlement policy requirement, the following entitlement matrix for compensation has been proposed.

Entitlements Matrix Specific- Affected Type Entitlement ations HHs A. Impact on Land A.1. Permanent All AHs, 1. Monetary Compensation at replacement cost by Agricult land losses Leaseholder providing compensation for loss of land use rights ural caused by equivalent to 4 years of the net average income of the past 3 years (of the affected annual crops.);

Specific- Affected Type Entitlement ations HHs land tower s with 2. Unaffected portions of an affected arable plot will constructio also be compensated if the same becomes unviable n Lifelong after impact. inheritable 3. Transaction cost, registration fee, related to new possession/ plot allotted will be borne by UNPN. permanent 4. Independent Valuation Companies will be engaged only in cases where AHs disagree with possession compensation rates determined by Surkhandarya (hereinafter branch of Uzdavyerloyiha Land Use Planning as All AHs) Institute. Temporary All AHs 1. Monetary Compensation at replacement cost by land losses providing compensation for loss of land use rights caused by equivalent to temporary period years of the net average income of the past 3 years (of the affected tower annual crops.); constructio 2. Unaffected portions of an affected arable plot will n and also be compensated if the same becomes unviable transmissio after impact. n line 3. Independent Valuation Companies will be engaged stringing only in cases where AHs disagree with compensation rates determined by Surkhandarya branch of Uzdavyerloyiha Land Use Planning Institute. A.2. Land Loss All AHs 1. Land for land compensation through the provision of Reside a land plot comparable in value/location to the plot ntial lost including services (or compensation to provide such services) to plots lost with registration and land transfer charges if any to be borne by the project; OR 2. Unaffected portions of a plot will also be compensated if they become unviable after the impact occurs. 3. All mandatory fees for registering the land, completion of required house design, surveys, acquiring permission for construction under the AHs name and any other related costs will be paid by UNPN. B. Impact on Structures Reside Full or All AHs 1. Monetary compensation at full replacement rate for ntial / partial loss affected structure/fixed assets free of salvageable Busine of materials, depreciation and transaction costs. OR 2. In case of partial impacts on structures (structure ss structures wall, fences, etc.), monetary compensation at structur replacement rates to restore the remaining es structure. 3. Unaffected portions of the structure will also be compensated at replacement value if they become unviable after impact. 4. Monetary Compensation at replacement cost to be determined by the Independent Valuator and cost of valuation shall be paid by UE.

Specific- Affected Type Entitlement ations HHs C. Impact on Crops and Trees Agricult Loss of All AHs 1 Monetary compensation at replacement cost for ure crops primary (and secondary crops if any) on affected land, land-based on 1 year of production costs (inputs) plus an allowance equivalent to 1-year average net orchar income based on the average income over the past d 3 years. 2 Monetary compensation at replacement cost will be determined by Uzdavyerloyiha Institute. 3 Independent valuator will be engaged only in cases where AHs disagree with monetary compensation rates determined by Uzdavyerloyiha Loss of fruit All AHs 1. Monetary compensation for fruit trees will be based trees (including on the average annual income for the past 3 years the non- multiplied by the remaining productive life of the fruit-bearing trees. leased 2. Production costs (inputs) of trees till to cut date. landowner) 3. Monetary Compensation at replacement cost to be determined by the Independent Valuator and cost of valuation shall be paid by UE. 4. Felled trees will be kept by the AHs. Loss of All AHs 1. Monetary compensation for timber trees will be timber compensated based on the market value of dry trees wood volume. OR Production costs (inputs) of trees till to cut date.

1. Monetary compensation at full replacement rate for affected 2. Felled trees will be kept by the AHs. D. Impact on Income and Livelihood Employ Loss of Agricultural 1. Monetary indemnity corresponding to their salary (in ment employmen workers monetary value and in-kind12 benefit) for the from t from losing their remaining part of the agricultural year/or contractual period whichever is higher in monetary value. affecte affected contract d agricultural agricult land ural land

E. Vulnerable Households Vulner Low-income households, 1 Financial aid allowance is equivalent to be paid as able female-headed one time5 times of minimal wage given a lump sum Affecte households with fewer amount as fixed by at once. According to the Presidential Decree # PP- 4555 dated 30.12.2019 = d than 2 adult income- 653,000 UZS per AHs. Plus, 50,000 UZS as House earners, HHs with additional financial aid amount paid monthly to low holds disabled family members) income families according to the resolution of the Cabinet of Ministers # 866 dated 14.10.2019.

12 Products which workers used to receive as payment and/or additional benefit for on-farm work such as wheat, rice, hay etc.

Specific- Affected Type Entitlement ations HHs Total4086, financial aid allowance equal to 653for families in need is set 406,000 – 1,014,000 UZS + 50,000 UZS = 703,000 UZS per AHs. 2. Priority for employment in project-related jobs, training opportunities, self-employment, and wage employment assistance. F. Impact on Community Structures and Assets Comm Loss or Community- 1. Rehabilitation/replacement of affected unity damage to owned structures/utilities (i.e. footbridges, roads, Structu public Assets communication lines, water pipelines, power transmission lines, etc.) to pre-Project level. res and infrastructu Assets re and utility G. Any unanticipated Impacts Any unanticipated impacts identified during the Project implementation will be compensated in full at replacement rate, subject to independent valuation methodology.

F. Institutional Arrangements and Implementation Schedule

11. JSC “National Electric Networks of Uzbekistan” (NENU) will have overall responsibility for the implementation of LARP as the executive agency. The PMU of NENU will consist of a resettlement specialist who is responsible for planning, implementing and monitoring the LARP as well as for preparing the LARP implementation completion report. PMU will work closely with relevant state bodies and public organizations for implementing the LARP, including the Design Institute, the Department of Land Resources and State Cadastre, as well as the National Electric Networks of Surkhandarya region.

G. Implementation Schedule (Tentative)

12. The implementation of this LARP will be planned after consideration and concurrence by ADB of the final LARP. All activities related to land acquisition and resettlement will be planned in such a way that compensation is paid before taking over the land and starting construction work. Consultations with the public, monitoring and consideration of complaints will be carried out periodically throughout the duration of the project. Construction will begin when compensation is fully paid. The completion of the LARP implementation will be documented in the LARP implementation completion report that shall be approved by ADB for the commencement of the civil works. This being a linear project, it might be difficult to complete the implementation of resettlement activities for the entire line section and right of way at one time which might delay the civil work construction, therefore, a phase wise approach can be adopted for civil work construction. Construction can be initiated in the section where compensation is paid. Moreover, construction can only start once all the compensation is paid and resettlement is done. The following implementation schedule is proposed.

Stage Activities Responsible The timing A LARP PREPARATION Resettlement expert through technical 1 LARP Preparation January- April, 2020 assistance and specialist of NENU

Stage Activities Responsible The timing Submission of the project to ADB Resettlement expert as part 2 and the Government of Uzbekistan of technical assistance, April, 2020 for comments and approval ADB and NENU

3 AH disclosures NENU April - May 2020

EPC MOBILIZATION AND B DETAILED DESIGN III Quarter 2020 PREPARATION C LARP IMPLEMENTATION After completion and LARP update after final detailed 4 NENU/PIC approval of the detailed design decision design After the completion 5 Compensation plan preparation NENU/PIC and approval of updated LARP by ADB Public consultations and Before Compensation 6 information disclosure on LAR NENU/PIC/Contractor to AHs activities Prior to awarding a contract for any 7 Compensations to AH NENU construction work that entails land acquisition Monitoring to assess the It should begin at the implementation of LARP within the same time, when the 8 NENU filing of the report on LARP AP will receive implementation compensation. 9 Construction Started After paying all compensation D MONITORING Internal Before submitting a 10 NENU Monitoring: AH Dissemination monitoring report Every six months Preparing and submission during the 11 NENU Monitoring Reports to ADB implementation of the project