Uzbekistan: CAREC Corridor 2 Road Investment Program

Home , Beruniy (Tashkent Metro), Minor (Tashkent Metro), Nukus, Urgench

Technical Assistance Consultant’s Report

Project Number: 42107 September 2010

Prepared by IKS Group of Companies Tashkent, Uzbekistan

For The Republican Road Fund under the Ministry of Finance

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. ASIAN DEVELOPMENT BANK

GOVERNMENT OF THE REPUBLIC OF UZBEKISTAN

THE REPUBLICAN ROAD FUND UNDER THE MINISTRY OF FINANCE

CAREC Corridor 2 Road Investment Program FF ADB PPTA No. 7375-UZB II PROJECTS II & III NN VOLUME 1 AA LL

RR EE PP OO Submitted by: RR TT

Tashkent, September 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

LIST OF ABBREVIATIONS AND ACRONYMS USED

ADB Asian Development Bank AIFU Association of International Freight Forwarders of Uzbekistan AADT Average Annual Daily Traffic AOI Area of Influence CACOM Common Market in Central Asia CAREC Central Asia Regional Economic Cooperation CARs Central Asian Republics CIS Commonwealth of Independent States CSATTF Central and South Asia Transport and Trade Forum CSP Country Strategy and Programme EA Executing Agency EBRD European Bank for Reconstruction and Development EC European Commission ECO Economic Cooperation Organization ECOTA ECO Trade Agreement ESCAP Economic and Social Commission for Asia and the Pacific EU European Union EurAsEC Eurasian Economic Community GDP Gross Domestic Product GOU Government of Uzbekistan JSC Joint Stock Company IKS IKS Croup of Companies IMF International Monetary Fund JBIC Japan Bank for International Cooperation KfW Kreditanstalt für Wiederaufbau km kilometers mm millimeters MFF Multitranche Financing Facility MOF Ministry of Finance MOFER Ministry of Foreign Economic Relations, Investments and Trade MOI Ministry of Interior m Metre m3 Cubic metres m3/hr Cubic metres per hour mm Millimetres MPa Megapascal MV motor vehicle PCEs Passenger Car Equivalents PIA Project Impact Area pkm passenger kilometres PPTA Project Preparation Technical Assistance PFR Periodic Financing Request SJSC State Joint Stock Company SOE State Owned Enterprise sq. square

IKS GROUP OF COMPANIES i TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SSC State Stock Company SWOT Strengths–Weaknesses–Opportunities – Threats TA Technical Assistance TACIS Technical Assistance for CIS Countries t.km tonne kilometers TIR Transports Internationaux Routiers TOR Terms of Reference TRACECA Transport Corridor Europe-Caucasus-Asia UARRT Uzbek Agency for Road and River Transport UNECE United National Economic Commission for Europe US$ United States dollars USSR Union of Soviet Socialist Republics FSU Former Soviet Union UTY Uzbekistan Temir Yullari (Uzbek Railways) UZB Uzbekistan hp Horsepower ICB International competitive bidding JICA Japan International Cooperation Agency kg Kilogram SJSC State joint stock company tonnes/hr Tonnes per hour VAT Value added tax

IKS GROUP OF COMPANIES ii TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

TABLE OF CONTENTS SECTION 1: INTRODUCTION 1.1 General 1 1.2 Background 1 1.3 Project Rationale and Financing Modality 3 1.4 The Investment Program 4 1.4.1 Impact and Outcomes 4 1.4.2 Output 4 1.5 Other Administrative Matters 4

SECTION 2: A BRIEF OVERVIEW OF THE ECONOMY OF UZBEKISTAN AND THE PROJECT ROAD HINTERLAND, TRAFFIC COUNTS AND FINAL TRAFFIC FORECASTS 2.1 Introduction 5 2.2 General Background 5 2.3 Highlights of Recent Performance of Transport Sector of Uzbekistan 5 2.4 Assumptions as to Progress on Main Economic Indicators 6 2.5 Highlights of Accident Spots in A380 Corridor 6 2.6 Domestic Transport Demand 7 2.7 Factors Influencing International Trade along the Project Road 7 2.8 Domestic and Total Traffic 7 2.8.1 Background 7 2.8.2 Traffic Counts 8 2.9 International Traffic 8 2.10 Traffic Forecast over the Forecast Horizon 8

SECTION 3: ROAD DEVELOPMENT COMPONENT AND ROAD SUSTAINABILITY COMPONENT 3.1 Road Development Component 11 3.2 Road Sustainability Component of Projects 2 and 3 13 3.3 Transport Logistics Component, Project 3 13

SECTION 4: PRELIMINARY DESIGN AND COST OF ROAD RECONSTRUCTION FOR PROJECT 2 AND 3 4.1 Characteristics of the selected Sections of the Road 14 4.1.1 International Importance of Project Road A-380 14 4.2 Current Condition of the Road 16 4.3 Condition of the Road Bed 17 4.4 Condition of Pavement 18 4.5 Engineering Structures 18 4.6 Road Facilities Construction 19 4.7 Road Service 19 4.8 Alighnment 20 4.8.1. Main Parameters of the Designed Road 20 4.8.2 Roadbed 20 4.8.2.1 Type-1 (with the separated road bed) 20 4.8.2.2 Type-2 (with the single road bed) 20 4.8.3 Road Pavement 21 4.9 Bridges and pipes 22 4.9.1 Intersections & Junctions 22 4.9.2 Traffic Management and Road Facilities 22 4.9.3 Road Building Materials 23

IKS GROUP OF COMPANIES iii TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4.9.4 Engineering Utilities 24 4.10 Principle approach and methodology for approval of design options at the stage of feasibility study preparation 24 4.10.1 Category of Road, Number of Lanes and Pavement type 24 4.10.2 Road Alignment 24 4.10.3 Geological and Topographical Survey 25 4.10.4 Climate, Ground and Surface Waters, Soil Covering 26 4.10.5 Existing and Prospective Density and Composition of Traffic 26 4.10.6 Alignment 27 4.10.7 Vertical Alignment of the Road 27 4.10.8 Roadbed 27 4.10.9 Cross-Sections of the Road 27 4.10.10 Road pavement 28 4.10.11 Road Construction Materials 30 4.11 Methodology for determination of construction cost 30 4.12 Method for determination of work scope 32

SECTION 5: ECONOMIC ANALYSIS FOR PROJECT 2 AND 3 5.1 Economic Analysis of Road Works 39 5.2 Findings 40 5.3 Sensitivity Analyses 40 5.4 Set of pile-boring equipment 41 5.3 Customs inspection-screening equipment complex 41

SECTION 6: FINANCIAL MANAGEMENT ISSUES AND FINANING PLAN FOR PROJECT 2 AND 3 6.1 Financial management Assessment 43 6.1.1 Executive Summary 43 A. Introduction 44 B Project Description 44 C Country Issues 44 D Risk Analysis 45 E Executing Agency and Implementing Entities 47 F Funds Flow Arrangements 49 G Staffing 50 H Accounting Policies and Procedures 51 I Internal Audit 52 J External Audit 53 K Financial Reporting and Monitoring 53 L Information Systems 54 M Conclusions 54 N Financial and Other Covenants and Recommendations 54 O Financing Plan 55

SECTION 7: PRELIMINARY PROJECT IMPLEMENTATION ARRANGEMENTS FOR PROJECT 2 AND 3 7.1 The Executing Agency 57 7.2 Program Management Unit (PMU) 57 7.3 Main responsibilities of PMU 57 7.4 Consulting Services 58 7.5 Advance Contracting and Retroactive Financing 58 7.6 Implementation period 59

IKS GROUP OF COMPANIES iv TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 8: PROCUREMENT PLAN FOR PROJECT 2 AND 3 60

SECTION 9: PROJECT DESIGN AND MONITORING FRAMEWORK DESIGN AND MONITORING FRAMEWORK 61

LIST OF APPENDIXES APPENDIX 1: OVERALL ROAD INVESTMENT PLAN (CONSTRUCTION AND RECONSTRUCTION) APPENDIX 2: TRAFFIC COUNT AND OD ANALYSIS METHODOLOGY APPENDIX 3(A): VARIOUS CROSS SECTIONS APPENDIX 3(B): HORIZONTAL ALIGHNMENT APPENDIX 4: HDM IV INPUTS AND OPUTPUTS, EIRR AND NPV TABLES FOR ALL SECTIONS OF THE ROAD APPENDIX 5: FINANCIAL MANAGEMENT ASSESSMENT QUESTIONNAIRE APPENDIX 6: BUDGET FORMULATION AND APPROVAL PROCEDURES APPENDIX 7: RATES OF CONTRIBUTIONS TO THE REPUBLICAN ROAD FUND UNDER THE MINISTRY OF FINANCE APPENDIX 8: CHART OF ACCOUNTS (NATIONAL ACCOUNTING STANDARDS NO.21) APPENDIX 9: INVESTMENT PROGRAM IMPLEMENTATION STRUCTURE APPENDIX 10: DRAFT PREIODIC FINANCING REQUESTS APPENDIX 11: IMPLEMENTATION PLAN APPENDIX 12: PROCUREMENT PLAN AND TENTATIVE CONTRACT PACKAGES FOR PROJECT 2 & 3

FIGURES FIGURE 1.1 – UZBEKISTAN ROAD CORRIDORS FIGURE 2.1 – ALTERNATIVE ROUTE THROUGH CHIMKENT FIGURE 3.1 – PROJECT SECTIONS FIGURE 6.1 – THE ORGANIZATIONAL STRUCTURE OF THE REPUBLICAN ROAD FUND

IKS GROUP OF COMPANIES v TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 1: INTRODUCTION 1.1 General

1. Under a Contract signed between IKS Ltd. (the Consultant) and the Asian Development Bank (the Bank), IKS Ltd. undertook the Technical Assistance (TA) assessing the feasibility of rehabilitation and upgrading of Road A380 Guzar-Bukhara-Nukus-Beyneu. Out of about 1,200 km A380 highway, 300 km is being constructed and 900 km will be reconstructed during 2010–2014. ADB’s investment for reconstructing of A-380 highway will help the Government accelerate completion of the overall program. The Investment Program will cover about 222 km of A380 highway in the Karakalpakstan Republic and the Khorezm and Bukhara provinces. ADB’s Multitranche Financing Facility (MFF) with 3 tranches will be applied for the Investment Program.

2. In February, 2010 Consultant submitted the appraisal report of Tranche 1 and current appraisal report is for subsequent Tranches 2 and 3 that includes technical, economic, financial, environmental, and social assessments and PFRs for Tranches II and III.

3. The road A 380 links the area southeast of Karshi in Kashkadarya Oblast with Beyneu on the border of Kazakhstan. The route forms part of the Asian Highway being promoted by the Economic and Social Commission for Asia and the Pacific of the United Nations. (ESCAP). Should the feasibility of the proposed rehabilitation and upgrading works be confirmed, it is anticipated that a Loan Proposal for the foreign component of Project inputs would be presented to the Board of the ADB in the first quarter of 2011.

4. This Final Report commences with a discussion of the Impacts of the Project and rationale and financing modality of it. The output of the TA is also presented as are activities undertaken since 1 July 2010.

5. In Section 2, final traffic forecasts are shown for the sections of the road selected for upgrading following receipt of the latest information on border passages received from the State Customs committee in January 2010. Section 3 presents the development proposal indicating proposed physical investment and Technical Assistance interventions in support of the restructuring of the road subsector.

6. Section 4 presents a preliminary design and costs of the development proposal and associated TA activities.

7. The economic analysis is presented in Section 5. The preparation of safeguard analysis is discussed in Volumes II and III. The results of the administration of the relevant sections of the ADB’s Financial Management Assessment Questionnaire are presented in Section 6 along with the Financing Plan and Financial analysis of Project implementation activities and loan repayment. Implementation and procurement plans are discussed in Sections 7 and 8. The Report concludes with a discussion of the variables to be included in a benefit monitoring framework.

8. A series of appendices supports the Report.

1.2 Background

9. Uzbekistan’s major public roads, totaling 42,530 kilometres (km), are divided into international (3,626 km), national (16,909 km), and regional (local) roads (21,995 km). (Figures 1.1). In addition, there are about 140,000 km of urban, rural and departmental roads.

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure1.1

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

10. In general, despite a few missing links, the road network has good coverage and sufficient capacity to accommodate the moderately growing traffic demand. Most major corridors are dual carriageway and the current volume capacity ratios are relatively low. Part of the network is in poor condition and requires rehabilitation. The road quality is deteriorating because of a maintenance backlog. Poor signposting and road markings on some roads have been observed, thus raising road-safety concerns.

1.3 Project Rationale and Financing Modality

11. The Government’s primary objective in the transport sector is to improve the efficiency of international road corridors. It gives high priority to the improvement of A380 highway with the total length of 1,204 km running from Guzar to Dautata for completion by 2014. The highway is the main route between the northwest and southeast of Uzbekistan and serves as an increasingly important international corridor between Afghanistan (via Termez), Tajikistan, and Turkmenistan, and Kazakhstan and Russian Federation. The A380 highway is designated as CAREC Corridors 2 and 6 (overlap with each other in Uzbekistan) and part of Asian Highway, Transport Corridor Europe Caucasus Asia Corridor, and European Highways. The adjoining 84 km Kazakhstan section Aktau–Beyneu is under consideration for by ADB for approval in 2010. The Road Fund has budgeted $1.5 billion for the A380 during 2009–2014. The overall road sector investment plan for construction and reconstruction is in Appendix 1.

12. The pavement condition of the two lane A380 highway has deteriorated because of deferred maintenance and a traffic increase. With the expected growth of local and regional traffic, the reconstruction of this international road is technically justified. Out of about 1,200 km A380 highway, 300 km is completed or being constructed and 900 km will be reconstructed during 2009–2014. ADB’s investment for reconstructing A-380 highway will help the Government accelerate completion of the overall program.

13. The Investment Program will cover about 222 km of the A380 highway in the Karakalpakstan Republic and in Khorezm and Bukhara provinces. Financing will be provided via the MFF through 3 tranches for the Investment Program. The Loan Agreement for the first project (Project 1) of the Investment Program was signed in May 2010 and subsequent projects expected to be signed in first quarter of 2011. ADB signed an agreement with the Government on the financing of the Investment Program in the form of Financing Framework Agreement (FFA) for the MFF and a loan agreement for Tranche 1 in May 2010 and will sign loan agreements for each subsequent tranches.

14. A systematic approach to prioritizing road maintenance interventions and development planning would help the Government better assesses the real need for road maintenance and development. Although ad hoc surveys are undertaken, there is no network condition database for rural and local roads. This is urgently required. Only with comprehensive data can the extent of the maintenance backlog be quantified and a prioritized remedial maintenance program be developed. The enhancement of those practices as necessary and arrange appropriate training to ensure that sector staffs are proficient in their implementation.

15. The role of the Road Fund1 has been expanded since 2006. Revisiting the operations of the Road Fund and examining the effectiveness of the current operating, financing, and quality control procedures would be timely. New road law was adopted in August 2006 which introduced road tolling system providing a legal basis for improving sustainability of road management and operations. Government regulation needs to be issued for the implementation of the tolling system.

1 The Republican Road Fund, established under the Ministry of Finance (MOF) in 2003, is the government agency responsible for road investment planning, project implementation, and financial management of road construction and maintenance, and policy making. IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

16. The number of accidents from 2004-2008 is reported at about 11,000 per year and caused an average number of 2,145 fatalities per year. At about 15.4 fatalities per 10,000 vehicles, this rate is very high by developed countries’ standard but low for developing countries. There has been a coordinated effort for improving road safety. The restoration of the pavement on the A 380 is expected to reduce accident frequency.

1.4 The Investment Program

1.4.1 Impact and Outcomes

17. The expected impact of the Investment Program will be sustainable economic development as a result of the expected outcome of better connectivity and an efficient transport system along Uzbekistan section of CAREC Corridor 2 Road.

1.4.2 Output

A. Output of the Investment Program

18. The output of the Investment Program will be (i) about 222 km of reconstructed Uzbekistan section of CAREC Corridor 2 Road, (ii) improved transport logistics, and (iii) improved road sector sustainability.

B. Output of Projects 2 and 3

19. Projects 2 and 3 will have three major components: (i) road development component, (ii) road sector sustainability component and (iii) transport logistics component which is discussed more in Section 3 of this report.

1.5 Other Administrative Matters

20. The Road Fund has assisted the Consultant in the arrangement of meetings with various organizations and assisted a lot to coordinate with state authorities as State Customs Committee of the Republic of Uzbekistan and khokimiyats of Khorezm and Bukhara provinces and Karakalpakistan in collecting data on international trade and Dautata border, data on transit traffic and conducting public consultations on environmental and social issues with the various representatives of the local populations as well as conducting social surveys and making census of Displaced Persons. The Uzbekistan Resident Mission of ADB has facilitated the application for visas for International Team Members. The Consultant hereby registers its appreciation for this assistance so graciously given.

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 2: A BRIEF OVERVIEW OF THE ECONOMY OF UZBEKISTAN AND THE PROJECT ROAD HINTERLAND, TRAFFIC COUNTS AND FINAL TRAFFIC FORECASTS

2.1 Introduction

21. This brief overview of the economy of Uzbekistan and the area of influence of the roads is being presented for the purposes of preparing final traffic forecasts. It is anticipated that a Loan for Upgrading of the Project 2 and 3 would be negotiated in first quarter of 2011. It is assumed that all rehabilitation and upgrading works would take place starting in 2011 and 2012 with all rehabilitated and upgraded sections being open for traffic in 2015. Benefits are assumed to flow for 25 years after improvement entailing that forecasts of main indicators are carried out to 2039.

2.2 General Background

22. Although rich in resources, Uzbekistan’s distances from markets arising from its doubly landlocked status presented serious challenges to the fledgling nation following the breakup of the Former Soviet Union. Post 1991, GDP initially declined with the GOU following a cautious policy stance that resulted in Uzbekistan experiencing less economic shock than other CIS countries. It was also the first CIS country to exceed its 1991 GDP following independence.

23. Commodity (cotton, gold) and energy exports, and agriculture continue to dominate the economy. The high prices were maintained relatively speaking throughout 2008 and 2009 entailing that Uzbekistan suffered comparatively little during the global downswing of 2008 and 2009. The increasing remittances from Uzbeks working outside the Nation have also contributed to recent growth.

24. Recent high prices of cotton, gold and for energy products have entailed relatively high GDP growth rates in excess of 7 % pa between 2004 and 2009. Recognizing the exposure of the economy to global commodity price volatility, the GOU set up Uzbekistan Reconstruction and Development Fund in 2006 in order to help dampen the impact of external price swings on the economy. Over half of the intended UD$ 1.0 billion commitment to the fund has been made.

25. The Bank’s forecasts of GDP have been accepted as one of the indicators of future economic growth in the Uzbek economy.

2.3 Highlights of Recent Performance of Transport Sector of Uzbekistan

Table 2.1 shows the levels of activity characterizing the transport sector of Uzbekistan in the recent past. Table 2.1 Transport Volumes of Uzbekistan

Item 2006 2007 2008 2009 Goods transportation by type (millions of tonnes, growth 812.8 879.3/109.9 9676.2/100.9 1095.71/113.2 rates in percentage) Railway 50/109.2 58/116 62.9/108.4 65.7/104.5 Motor Transport 689.8/89.1 745.2/108.0 826.8/111.0 976.9/118.2 Air 0.01 0.01 0.01 0.01 Water - - - - Pipeline 73.0/102.8 76.1/104.2 76.4/100.4 53.1/69.5

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Passenger Transport by type (millions of passengers, 4192.4/106 4652.4/111 5260/113.2 5591.2/106.2 percentage) Railway 14.3/94.7 11.5/80.4 13/113.0 14/108.2 4043.6/106. 4507/111.5 5122.4/113.6 5575.7/108.8 Motor Transport 5 Air 1.0/111 1.2/120 1.5/125 1.5/101.0 Source: Uzbek State Statistics committee

2.4 Assumptions as to Progress on Main Economic Indicators

26. In the short term, the Bank is forecasting growth in GDP of 6.5 % in 2010.2 The Consultants have assumed growth rates throughout the first few years of the forecast period. Uzbekistan is uniquely placed with commodities such as chemicals and hydrocarbons likely to be in demand for years to come. Further, the strengthening of the financial sector, an ongoing effort, will reinforce these trends.

27. For purposes of the traffic forecast, the Consultant’s have assumed that GDP growth of 8.4 % will be possible in the shorter term. Rates of growth in passenger traffic are assumed to be driven by a product of population growth and per capita income growth.

28. GDP, population and GDP per capita forecasts at intervals over the forecast period are presented in Table 2.2

Table 2.2 Assumed Population and GDP Per Capita 2010-2033 by Five Year Intervals

GDP per Capita Year GDP (US$ billion) Population (million) (US$) 2010 11.0 27.6 399 2015 14.9 29.2 510 2020 19.2 30.8 622 2025 23.9 32.4 738 2030 29.1 34.1 853 2033 32.7 35.1 987 Note: GDP in constant 2004 prices. Sources: ADO 2007, Dautata 2009 traffic report and Consultant’s estimate.

2.5 Highlights of Accident Spots in A380 Corridor

Table 2.3 shows the location of accident locations along the A380 Corridor.

Table 2.3 Location of Accidents along the A380 Corridor Location of the Type of Road Recommendatio Highest Number of Oblast Accident and n for Road Reason Improvements Accidents 222-226 Increase the 255-256 Inadequate width of width of the 1. Bukhara 319-320 the overpass, overpass, install 216-217 pedestrian sidewalks curbs, construct 2017-208 sidewalks 2-3 Provide lighting, 51-52 Lack of lighting and construct road 2. Kashkadarya 73-74 road curbs curbs, fix other 57-58 deficiencies

2 Asian Development Bank Outlook 2009. IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

50-51 482 Construct road 538 curbs of 1st 3. Khorezm 482 Lack of road curbs category, fix other 538 deficiencies 482 Construct road Republic 834-835 curbs of 1st 4. Karakalpakst Lack of road curbs 690-691 category, fix other an deficiencies Source: Ministry of Interior.

2.6 Domestic Transport Demand

29. Income elasticities of demand characterizing the growth of freight traffic in the project area are likely to be significant, at least in the early years of the forecast period. Work in many countries of the world has shown that freight traffic tends to grow at a higher rate then GDP as a country is still moving up the economic chain. For purposes of this forecast, it has been assumed that freight traffic will grow faster than GDP in the early years of the forecast period. As regards passenger traffic, it is allowed to grow at the product of the rate of growth of population times the rate of growth of per capita GDP.

2.7 Factors Influencing International Trade along the Project Road

30. The A380 is classified as a Northwestern Route by Uzavtoyul, leading to Russia, Ukraine and Europe via Kazakhstan. Short to medium growth rates for the trading partners serviced by the Project Road, Kazakhstan, Ukraine and Russia, has indeed been high. High rates of growth are assumed at least during the early years of the forecast period as Kazakhstan and Ukraine become mature economies. The railway parallels the A380 and could provide for some diverted traffic. However, the improvement of the Shymkent-Kyzilorda road, due to take place in the next few years with World Bank and EU assistance, will carry most of this traffic away from the A380 Corridor.

2.8 Domestic and Total Traffic

2.8.1 Background

31. The summary details of the traffic counts and interview programme are given in Table 2.4.

Table 2.4 Summary Details of Traffic Count and OD Interview Programme Site Activity Location Detailed Location Date Staging of Counters, 1 Tashkent to Karshi 14.12.2009 Interviewers Karshi-Bukhara (km 2 OD Interviews Oblast Border 15.12.2009 151) Traffic Counts, OD Bukhara - After 3 Bukhara 16.12.2009 interviews Ghazli City (km 367) Traffic Counts, OD Bukhara – Border (km 4 Khorezm 17.12.2009 interviews 489) Traffic Counts, OD Urgench – 5 Karakalpakstan 18.12.2009 interviews Karakalpakstan Departure from 6 Staging to Nukus 19.12.2009 Nukus to Border Further details of the count and interview activities are given in Appendix 2.

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2.8.2 Traffic Counts

32. Classified traffic counts were carried out over nine hours on various sections of the Project Road away from the influence of towns and cities during December, 2009. International truck trips are identified separately. Expanded flows on the two sections of the Project Road are shown in Table 2.5.

Table 2.5 2009 Traffic Flows on Project Road Sections

Domestic International Section Buses Cars Other Total Trucks Trucks Jandar (A 380 km 367) 74 15 72 736 0 898 Beruni (A 380 km 628) 469 15 271 3250 276 4281 Source: Consultant’s Traffic Count – expanded flows are given.

33. An examination of the traffic count and O/D survey results indicates that the Beruni figure contains a large % of local traffic over all vehicle types which are local in both origin and destination, being dominated by trips between Urgench and Beruni. The traffic counts and O/D matrices show that Jandar figures are more representative of longer distance traffic through the corridor. Similarly, the rail traffic such as that between Urgench and Beyneu is comprised of goods traveling a long way outside Uzbekistan on the rail systems of the Former Soviet Union and, goods which are well suited to rail traffic. Hence, they are utilized in part as the basis of the traffic forecasts. Appendix 2 shows the details of the traffic study methodology.

2.9 International Traffic

34. Table 2.6 shows the tonnage and implied number of loaded and empty trucks passing through the Dautata Customs Post near the Kazakhstan Border between 2005 and 2009. The 2009 data was obtained at year end.

Table 2.6 Truck, Tonnage and Trade Value Flow through Dautata Customs Post Item 2005 2006 2007 2008 2009 Trucks per year 2866 2634 3512 4716 4330 Volume of goods/year (tonnes) 28,658 17,783 23,710 13,485 26,102 Value of Goods (US$ million) 50,985 22,154 29,539 21,938 40,892 Trucks per Day 11.9 7.2 9.6 12.9 11.9 Source: Uzbekistan Customs.

35. It can be seen that tonnage through the border post fell between in 2007 and 2008 compared to preceding years, but appears to have recovered according to 2009 data. The number of trucks currently passing the post is in excess of 10 per day. Despite the relatively small proportion of Uzbekistan traffic handled by the Dautata Post, (the Dautata Crossing only handles 0.27 % of total Uzbekistan border traffic) the A-380 is obviously a high quality international route with significant potential traffic on offer.

2.10 Traffic Forecast over the Forecast Horizon

36. Several sources of foreign going traffic have been identified in addition to that passing through the Dautata crossing. Firstly, rail traffic through the Nukus-Oasis Line has been estimated at some 2,776,565 mt per year in 2009. Previous discussions with the Marketing Office of UTY have indicated that small consignments make up about 35 % of tonnage on this line.

37. A second source of diverted traffic for the improved road is the alternative route through Chimkent (Figure 2.1) which is also grouped with the A 380 in the so called Northern IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT and Northwestern Routes. Discussions with a leading Uzbekistan trucking firm indicate that using the alternative Northern route is more costly because “informal” fees are levied at six Kazakh oblasts en route to Russia and the Ukraine as compared to two Kazakh oblast boundaries which are passed utilizing the A 380. Additional trucks could arise as a result of diversion.

38. However, despite the potential for diverted traffic, relatively little of it is expected to occur. The alternative road though Chimkent will capture most of the traffic going to Ukraine and Russia, particularly from Tashkent and environs. It is to be reconstructed by the EU and the World Bank over the next few years. In addition, the current rail traffic such as bulk commodities and other bulky items is ideally suited to rail and is very unlikely to transfer to road from rail.

39. Generated traffic has been assumed to total about 20% of the flow of forecast normal domestic traffic once all sections of the A 380 have been rehabilitated by 2014 and is in full operation by 2015. The convention is that the value of generated traffic benefits is valued at half the benefit accruing to existing traffic. Table 2.7 shows the representative traffic forecast for the A380 for selected years over the life of the pavement.

Table 2.7 Representative Final Traffic Forecasts - Average Annual Daily Traffic Year Domestic International Buses Cars Total Total Trucks Trucks (vehicles (passenger per day) car units) 2009 75 15 72 736 898 1,012 2014 111 37 113 1,158 1,420 1,622 2019 167 93 178 1,823 2,261 2,642 2024 250 231 279 2,757 3,617 4,377 2029 373 575 438 4,477 5,864 7,469 2034 559 1,431 686 7,016 9,682 13,252 2039 837 3,561 1,076 10,995 16,469 24,657 Source: Consultant’s estimate.

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure 2.1

IKS GROUP OF COMPANIES 10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 3: ROAD DEVELOPMENT COMPONENT AND ROAD SUSTAINABILITY COMPONENT

3.1 Road Development Component

40. The Government’s primary objective in the transport sector is to improve the efficiency of international road corridors. It gives high priority to the improvement of A380 highway with the total length of 1,204 km running from Guzar to Dautata for completion by 2014. The highway is the main route between the northwest and southeast of Uzbekistan and serves as an increasingly important international corridor between Afghanistan (via Termez), Tajikistan, and Turkmenistan, and Kazakhstan and Russian Federation. The A380 highway is designated as CAREC Corridors 2 and 6 (overlap with each other in Uzbekistan) and part of Asian Highway, Transport Corridor Europe Caucasus Asia Corridor, and European Highways. The adjoining 84 km Kazakhstan section Aktau–Beyneu is under consideration for by ADB for approval in 2010. The Road Fund has budgeted $1.5 billion for the A380 during 2009–2014.

41. The pavement condition of the 2-lane A380 highway has deteriorated because of deferred maintenance and a traffic increase. With the expected growth of local and regional traffic, the reconstruction of this international road is technically justified. Out of about 1,200 km A380 highway, 300 km is completed or being constructed and 900 km will be reconstructed during 2009–2014. ADB’s investment for reconstructing A-380 highway will help the Government accelerate completion of the overall program.

42. The Investment Program will cover about 222 km of the A380 highway in the Karakalpakstan Republic and in Khorezm and Bukhara provinces. Financing will be provided via the MFF through 3 tranches for the Investment Program. The first project (Project 1) of the Investment Program had already commenced in 2010 and the Loan Agreement had been signed in May 2010. The sections of highway are as follows (Figure 3.1):

(i) Section 1: Km 440–490 (50 km) in Khorezm region. (ii) Section 2: Km 355-440 (85 km) in Bukhara and Khorezm regions. (iii) Section 3: 315-355 (40km) in Bukhara region (iv) Section 4: Km 581-628 (47 km) in Karakalpakistan republic

43. Advisory support for procurement of contractors and recruitment of consultants had been provided under Project 1 and will be provided for Project 2 and 3 as well. An international procurement consultant will work in the program implementation unit (PMU) to strengthen its procurement capability. The contracts with procurement and safeguard team under Tranche 1 will be extended also for Projects 2 and 3 in case of satisfactory performance. Advisory support for project management and construction supervision will also be provided to assist PMU in managing, implementing, and supervising the overall project. The scope, objectives, and TORs of Constructions Supervision and Road Asset Management Support for Projects 2 and 3 shall be developed by PMU.

IKS Group of Companies 11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure 3.1

IKS GROUP OF COMPANIES 12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

3.2 Road Sustainability Component of Projects 2 and 3.

44. This component will primarily assist the Government strengthen road sustainability in Uzbekistan through improvement of road sector institutions, the introduction of competition leading to further commercialization of enterprises and eventually privatization, road sector planning, and budgeting system; and provision of road equipment to ensure timely and effective road maintenance program. This component will expand the ongoing work under the road sector sustainability of Loan 2403-UZB: CAREC Regional Road Project. The following subcomponents are envisaged:

(i) Community development program in Project 3. This subcomponent will minimize road externalities on gender and local community and target them as beneficiaries of the road development. Consulting services under this subcomponent will support capacity development for the Road Fund and the local communities living along the Investment Program road. It will also conduct needs assessment for developing the social and healthcare infrastructure and execute the corresponding actions. Proposed activities include the following: (i) Tree Planting – the support of tree planting groups by DP’s to revegetate lost trees along corridors, fence lines and canals. Funding would assist with seedling preparation, planting and maintenance; (ii) Community Road side facilities – small scale support funding for women’s groups to build and maintain (through charges) roadside toilet, water facilities. Areas could also include shaded areas suitable for market stalls to sell produce; a combined canteen/magazine/public toilet/shower/Paynet shop; (iii) Small scale vocational training – particularly for women and the poor – activities would include sewing workshop, hair- cutting, auto-mechanic and a tree nursery (iv) Dedicated community meeting building and shaded area.

(ii) Road asset management support in Project 3. This subcomponent will build upon the current studies and pilot of a road asset management system under Loan 2403-UZB: CAREC Regional Road Project as well as under Project 1 of this Investment Program. Based on the studies and pilot under that project, this subcomponent will support the implementation of a road asset management system, including procurement of necessary support facilities such as computer, software, automatic traffic counting device and related training program. It will also support the (a) establishment of an independent quality control system for road works; (b) development of road maintenance contracts; (c) reform of the road financing system to ensure that charges take into account road usage; (d) establishment of a road maintenance system for cement concrete road; and (e) establishment of a foundation for public-private partnerships (PPP) in the road sector and pilot of a PPP project if feasible.

(iii) Provision of Road Equipment in Project 2. The Project will finance the procurement of a set of road equipment to be managed by a Road Equipment Pool Company (REPC) “Transyulqurilish” that was established under Loan 2403-UZB: CAREC Regional Road Project. The company was set up as an independent commercially-operated state-owned enterprise. Under Loan 2403-UZB: CAREC Regional Road Project, the cost estimate of Boring equipment was underestimated and this equipment was not procured.

3.3 Transport Logistics Component, Project 3

45. This component will primarily assist the Government strengthen road sustainability in Uzbekistan through procurement of cross-border facility equipment. Considering huge investment had been committed to this road, the smooth passage of international trucks have to be ensured on the road and the cross border facility that will be procured under this component will ensure that overall objectives of the road are achieved.

IKS GROUP OF COMPANIES 13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 4: PRELIMINARY DESIGN AND COST OF ROAD RECONSTRUCTION FOR PROJECT 2 AND 3

4.1 Characteristics of the selected Sections of the Road

46. The length of public roads in the project area is 10442km (25% of the total length of the public road network), including 4002 km in Bukhara region; 2265km km in Horezm region and, 4175km in Karakalpakstan. Classification of road network is given in Table 4.1.

Table 4.1 Bukhara Khorezm Republic of Classification of common use region region Karakalpakstan public roads Length Length Length km % km % km % International 496 12,4 113 5 664 15,9 National 1482 37 895 39,5 1004 24 Local 2024 50,6 1257 55,5 2507 60,1 Total 4002 2265 4175

47. Public roads of common use going through the regions and having international importance are shown in Table 4.2.

Table 4.2 Name of road Region Length, km

-37 Samarkand-Ashgabat-Turkmenbashi Bukhara 153

-379 Navoi-Uchkuduk Bukhara 54

-380 Guzar-Bukhara-Nukus-Beineu Bukhara 289

-380 Guzar-Bukhara-Nukus-Beineu Horezm 113

-380 Guzar-Bukhara-Nukus-Beineu Karakalpakstan 652

-381 Nukus-Tashauz Karakalpakstan 12 Total: 1273

4.1.1 International Importance of Project Road A-380

48. The network of public roads of common use having international importance has being formed of 11 roads, shown in Table 4.3, which being the backbone network of the country, provide reliable regional, interregional and international transportation links.

IKS GROUP OF COMPANIES 14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.3 Length in Total Name of road Region regions, km length, km

Tashkent 56 -34 Tashkent-Dushanbe Sirdarya 94 160 Djizak 10 Samarkand 147 -37 Samarkand-Ashgabad- Bukhara 153 365 Turkmenbashi Navoi 65 -39 Almati-Bishkek-Termez Tashkent 65 Sirdarya 44 Djizak 98 Samarkand 98 658 Approach road to Hairaton Kashkadarya 180 Surhandarya 143 Surhandarya 30 Andijan 13 -41 Bishkek-Dushanbe-Termez 191 Surhandarya 178 -373 Tashkent-Osh Tashkent 136 Namangan 69 Fergana 104 404 Andijan 90 Approach road to airport Sergeli Tashkent 5 Fergana 45 -376 Kokand-Djizak Sirdarya 63 168 Djizak 60 -377 Samarkand-Aini Samarkand 37 37 Samarkand 57 -378 Samarkand-Karshi 138 Kashkadarya 81 Navoi 235 -379 Navoi-Uchkuduk 289 Bukhara 54 Kashkadarya 150 -380 Guzar-Bukhara-Nukus- Bukhara 289 1204 Beineu Horezm 113 Karakalpakstan 652 -381Nukus-Tashauz Karakalpakstan 12 12 Total: 3626

49. Project sections of road -380 Guzar-Bukhara-Nukus-Beineu are included into international transport corridors, such as -40, -63 Traceca-27, Traceca-28 and are important sections providing access to the north and the north-west regions of Uzbekistan and beyond, shown Table 4.4.

IKS GROUP OF COMPANIES 15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.4 - 40 Cale – Oostende – Gent – Liege – Ahen – Koln – Olpe – Giessen - Bad- Herzfeld –Herkezheisen – Eisenach – Erfurt – Gera – Chemnitz – Dresden – Garlic – Legnica – Vrozlow – Opole – Gliwice – Krakow – Pshemisl – Lvov – Rovno – Jitomir – Kiev – Kharkov – Lugansk – Volgograd – Astrakhan - Atirau - Kungrad - Nukus - Dashhovuz - Bukhara - Navoi - Samarkand - Djizak - Tashkent - Chimkent - Djambul - Almati - Sariazek – Taldi-Kurgan - Usharal - Tashkesken - Ayaguz - Georgievka – Ust-Kamenogorsk – Ridder (former Leninogorsk) – border of Russian Federation; - 63 Samarkand – Kurlin – Pogodaevo – Uralsk – Atirau - Beineu – Daut-ota – Nukus – Bukhara – Guzar; Traceca - Samarkand – Uchkuduk – Beineu; 27 Traceca - Samarkand – Bukhara – Beineu. 28

50. The Road, in general, forms the part of the east-west transport corridor, promoting efficient integration into international transport system in the north and the west-north direction to CIS countries and to Europe and, in the south-west and in the south directions to ports of the Persian Gulf and the Black Sea. In the eastern direction there is a possibility of integration with international route “Tashkent – Andijan – Osh – Saritash – Irkeshtam – Kashgar”, establishing reliable road communication connection between the Pacific coast of PRC and the regions of Central, South and West Asia. The area of the road possesses relatively developed system of infrastructure – railway lines and automobile roads, air transport.

51. Railway lines go through the directions of: Tashkent – Bukhara, Tashkent – Samarkand – Navoi – Uchkuduk – Nukus – Kungrad. In the project area, civil aviation is well developed and represented by international airports in Nukus, Urgench and Bukhara.

4.2 Current Condition of the Road

52. Total length of the project sections of road is 222km. Distribution of road length by regions is given in Table 4.5.

Table 4.5. Length by Regions Section, km-km regions, km Bukhara 124 315-439 Horezm 51 439-490 Republic of Karakalpakstan 47 581-628 Total: 222

53. Roadway at all sections of road has two lanes with asphalt-concrete surface. The first project section (315-490 km) starts in Bukhara region close to the town of Gazli (322 m) and finishes in Horezm region in the area of the village Tuprakkala (490 km).

315 322 367

IKS GROUP OF COMPANIES 16 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

384 400 440

54. The second project section (581-628 km) is located in the Republic of Karakalpakstan and goes through district centers Turtkul and Biruni.

55. The technical categories of individual sections and their length are presented in (Table 4.6). About 3% of the sections (in Bukhara region) are of technical category III, the remaining part is of technical category II.

Table 4.6

Regions Technical category Section, km-km Length, km

Bukhara III 315-322 7 II 322-439 117 Horezm II 439-490 51 Republic of II 581-628 47 Karakalpakstan Total: 222

4.3. Condition of the Road Bed

56. The road bed is mainly built of grounds from horizontal reserves. The slope ramp ratio is 1:1,5 and 1:2. Road sides are strengthened by sandy gravel. Longitudinal drainage is provided by means of putting road bed on the elevation that does not require construction of drain ditches. Moreover, on the sandy sections there is no necessity to provide water drainage.

57. On the sections 383-386 km, 394-397 km and 398-400 km in Bukhara regions, the lack of arrangements directed to sand stabilization and protection form sand drifts have resulted in the appearance of sand drifted areas. Design of a road bed is not tailored to sand drifting, and the presence of vegetation on the road sides, preventing movement of sand through a road bed, contributed to accumulation of big amounts of sand in the right-of-way. The presence of high sand hills in the road bed restricts the visibility in a plan view. The presence of shifting sand along the road, which facilitates the sandy dust during the wind, worsens the traffic safety.

IKS GROUP OF COMPANIES 17 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4.4. Condition of Pavement

58. Road way at all sections has two lanes with asphalt-concrete pavement. In connection with the fact that in 2006-2008, at sections 322-366km, 405-490km there were road rehabilitation works, the pavement is in satisfactory condition.

59. At the sections 315-322 km, 366-405 km there are cracks, fracturing pattern, corrugation, and tracing ruts.

4.5 Engineering Structures

60. There are 2 bridges at the section 315-439km in Bukhara region with the total length of 28 running meters. At the section 439-490 km in Horezm region there are no bridges. On the section 581-628 km in Republic Karakalpakstan there are 10 bridges with the total length of 291 running meters. The characteristics of bridges are given in Table 4.7

Table 4.7

Dimensions No Location of bridge, km Material of bridge Length of bridge of bridge

Bukhara region 1 322,6 Reinforced concrete 15,5 11,1 2 331,6 Reinforced concrete 11,86 10,6 Republic of Karakalpakstan

3 582,2 Reinforced concrete 18,5 11,6

4 590,7 Reinforced concrete 12,5 12

5 595,1 Reinforced concrete 33,2 9,9

6 595,5 Reinforced concrete 27,4 9,6

IKS GROUP OF COMPANIES 18 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

7 595,6 Reinforced concrete 60,6 10,1

8 605,1 Reinforced concrete 32 8,7

9 607,9 Reinforced concrete 17 8,9

10 610,6 Reinforced concrete 26,5 8

11 615,3 Reinforced concrete 35,9 9,5

12 619,2 Reinforced concrete 27,5 10,1

4.6 Road Facilities Construction

61. Technical aspects of traffic engineering include carriageway marking, road signs, road guards and retroleflective warning signs. Carriageway marking is made on sections 322-366 km and 405-490km. On other sections there is no carriageway marking. In the best case, there is only longitudinal marking. On section 439-470 km at some places side guards made of curved bars are installed in the locations of high banks. There is no road illumination at populated localities.

62. Bus stops, petrol stations, traffic safety posts, meal and trade facilities, and road repair points are located along the road. Communication lines, power supply lines, gas pipeline and water pipeline are located along the road. In two places, the railway line crosses the road, and in more than 20 places the road is crossed by other roads.

4.7 Road Service

63. In order to ensure required level of road service quality and its structures, the road service points are operational along the project section of the road (Table 8). Road service points are responsible for timely maintenance and running repair of the road sections.

Table 4.8

No Name of organization Location Section, km-km

1. Bukhara-Navoi SREPSAMGZ Bukhara region 2. RamitanRPREPDH Bukhara region 315-439 3. Gazli SPREPDH Bukhara region 4. Horezm SPREPDH Horezm region 439-490 5. Tuprakkali PREU Horezm region 6. North-west SREPSAMGZ Republic of Karakalpakstan 7. Tertkul RPREPDH Republic of Karakalpakstan 581-628 8. Ellikali RPREPDH Republic of Karakalpakstan 9. Biruni RPREPDH Republic of Karakalpakstan

IKS GROUP OF COMPANIES 19 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4.8 ALIGHNMENT

4.8.1 Main Parameters of the Designed Road:

Category of the road – I b; Number of lanes – 2 in each direction – 27, 5 m; Width of lanes – 3, 75 m; Width of road shoulders (sides) – 3, 75 m; Width of margin strips of road shoulders – 0, 75; Bank of the carriageway – 15 %; Bank of the road shoulders – 30 %; Designed speed of traffic – 120 km/h

64. The start of the alignment of the second section is 581 km, and the end of alignment is 628km of the road -380 Guzar-Bukhara-Nukus-Beineu. The total length of the second section is 47km. If the designed road is located on the section 581 – 628 km along the existing alignment, then it will involve additional land acquisition for construction of 4-lane carriageway, provision of traffic intersections, which will require demolition of a large number of living accommodations and non-residential premises, communications etc. Therefore, the design envisages bypass of the cities of Turtkul and Biruni of the Republic of Karakalpakstan. At that, the bypass will start at 586 km of the road and will rejoin the existing road at 645 km.

4.8.2 Roadbed

65. The values of the vertical road alignment elements are accepted in accordance with the requirements of norms and standards of ShNK 2.05.02-07. Maximum longitudinal grade - 20 , minimum radius of convex curves - 30000 , minimum radius of concave curves - 5000 . In the draft feasibility study for the road there are 2 types of vertical alignments of the road with the following parameters:

4.8.2.1 Type-1 (with the separated road bed)

Number of lanes – 2 each direction Width of lanes - 3,75 m Width of carriageway – 7,5 2 Width of road shoulders – 3,75 m Bank of carriageway – 15 / - Bank of outer road shoulder – 30 / Bank of inner road shoulder – 15 / Width of margin strips – 0,75 m Inclination of fill slope - 1:3 Inclination of outer cut slope – 1:4 Distance between edges of road bed of backwards directions – 12,5m and more

4.8.2.2 Type-2 (with the single road bed)

Number of lanes – 2 in each direction Width of lanes - 3,75 m Width of carriageway – 15 m Bank of carriageway – 15 / Bank of road shoulders – 30 / Width of margin strips – 0,75 m Width of central reserve – 2,6 m Inclination of fill slope - 1:3 Inclination of outer cut slopes – 1:4

66. The separated arrangement of a road bed for provision of traffic in the reverse directions was accepted on the basis of advantages of separation of directions:

IKS GROUP OF COMPANIES 20 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Simplification of the road rehabilitation technology; Z Noninterference from existing traffic flows during rehabilitation of road; Z Provision of combination of road with the relief and landscape; Z Use of existing road for passing traffic flow during the period of rehabilitation works without construction of temporary bypass road; Z Utilization of land improper for agricultural needs; Z Possibility of individual design of inclinations of rises and slopes on stiff terrain; Z Absence of necessity to construct separating bar along the road axis; Z Increase of traffic safety, prevention of blinding of drivers by headlights of on-coming vehicles; Z Decrease of road maintenance costs; Z Simplification of further road repair and maintenance works.

67. Separated arrangement of a road bed is envisaged on sections where there are no major obstacles for separation of directions. A single road bed is envisaged: Z At the places of traffic control service points and check points of appropriate services; Z In the area of Gazli; Z On the section 470-490 km, where it is envisaged to have single road bed with 4-lane carriageway, and a carriageway for 2-lane traffic had been already constructed; Z On the section 581-628 km with bypass of cities Turtkul and Biruni.

68. Minimum distance between edges of a road bed of the backwards directions was accepted as 12,5m and more, taking into account possible prospective increase of number of lanes till three in each direction. 4.8.3 Road Pavement 69. During design of the road pavement the meaning and the function of the road were taken into account, along with intensity of traffic, reliability and economical efficiency, provision of local building materials, climatic and soil and hydraulic conditions, and also maintenance and repair condition of the road. As a part of the Project it is envisaged to arrange cement-concrete pavement on the carriageway in both directions of traffic. At that, the existing asphalt-concrete pavement will be used as the subgrade.

70. Structure of road pavement for additionally constructed 2-lane carriageway, margin strips, combined acceleration-deceleration lanes, and also at passing bays, envisaged by the design include: Z Monolithic cement-concrete pavement with the thickness of 25cm made of sulphate resistant concrete mix M400 as per GOST 26633-91 Z Damp-proof course made of roll material PPA Z Surface course of subgrade made of crushed rock and sand mix, strengthened by sulphate resistance cement 6% as per RST Uz 23558-94, thickness 16 cm Z Base course made of crushed rock and sand mix as per RST Uz 25607-94, thickness 20 cm; Z Diaphragm made of local stone materials or cohesive soils with thickness of 20 cm.

71. Structure of road pavement if existing carriageway with asphalt-concrete pavement is used: Z Monolithic cement-concrete pavement with the thickness of 25 cm made of sulphate resistant concrete mix M-400 as per GOST 26633-91 Z Damp-proof course made of roll material PPA Z Surface course of subgrade made of crushed rock and sand mix, strengthened by sulphate resistance cement 6% as per RST Uz 23558-94, thickness 16 cm with inclusion of leveling course made of the same material.

IKS GROUP OF COMPANIES 21 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

72. Road shoulders are made of local stone materials. Reinforcement of road shoulders is envisaged to be made of crushed rock and sand mix with thickness of 12 cm.

4.9 BRIDGES AND PIPES

73. The project envisages construction of reinforced concrete pipes on the road with the diameter of 1,5 meters in the quantity of 21pieces, including: 1 piece at the section 315-355 km, and 20 pieces at the section 581-628 km. It is also envisaged to build 14 small and medium bridges, including: 2 bridges at section 315-355 km, 12 bridges at section 581-628 km.

4.9.1 Intersections & Junctions

74. The project envisages construction of interchange ramps, total 28, including sections: Z 315-355 km – 6 Z 355-440 km– 3 Z 440-490 km – 3 Z 581-628-km – 16

75. The length of the ramps will be 100 meters. Radius of curves at ramps are 25 m. Width of road bed – 8m, carriageway – 6m, road shoulders – 21,0 m.

76. Structure of road pavement of combined acceleration-deceleration lanes and ramps till the end of curves is the same as the accepted structure of designed carriageway. Construction of combined acceleration-deceleration lanes with the width of 3,75m is envisaged at interchange ramps. The length of stop ways is 100m, acceleration way – 180m, tow lanes – 80m.

4.9.2 Traffic Management and Road Facilities

77. Road facilities are in accordance with the requirements of ShNK 2.05.02-07 “Automobile roads". In order to regulate road traffic it is envisaged to install road signs, guard rails and carriageway market. Installation of road signs is envisaged in accordance with GOST 10807-78 “Road signs” and GOST 23457-86 “Technical facilities of traffic management”. In combination with road signs the road will have carriageway marking in accordance with GOST 23457-86.

78. Along the axis of central reserve on the section 470-490km it is envisaged to install metal guards, on the section 581-628 km with bypass of cities Turtkul and Biruni, and also in the places, where design provides for single road bed, there will be guards made of reinforced concrete blocks BDO-5.

79. Separate arrangement of road bed is envisaged on the sections, where there are no major obstacles for separation of directions. Single road bed is envisaged: Z In the locations of road control service points and check pints of appropriate services; Z In the area of Gazli; Z At the approach to 490km, where earlier there was envisaged single road bed; Z On the section 581-628 km. Z On other sections there will be installed metal guards – curved bar.

80. In the project it is envisaged to construct 20 U-turns of “pear” type with the radius of 30m, including section 315-355 – 6 U-turns, section 355-440 – 3 U-turns, section 440-490 – 3 U-turns, section 581- 628 – 8 U-turns. Structure of road pavement of U-turns is the same as the road pavement at the newly constructed road bed.

IKS GROUP OF COMPANIES 22 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

81. Structure of a road pavement of combined acceleration-deceleration lanes at U-turns are the same as the structure of adjoining to them traffic lanes.

4.9.3 Road Building Materials

82. Requirement in material resources under the project is determined based on existing norms. During rehabilitation there will be used developed, operational quarries of calcareous rocks, and crushed rocks and sand produced out of them at rock-crushing and screening plants. 83. In all quarries the crushed stone sand mix complies with all requirements of GOST and is appropriate for use. Aggregate inventory of operational quarries in Bukhara, Horezm regions and Republic of Karakalpakstan is more than 3010 thousand cubic meters, which will meet the requirements and there be no necessity to establish new quarries. At that, it is required to strengthen production bases of those quarries by means of installation of new rock crushing and screening plants. In Bukhara and Horezm regions there are 2 quarries with total reserve of 830 thousand and 260 thousand cubic meters, which will be sufficient for base layer of road pavement.

84. In the Republic of Karakalpakstan in the area of the road, there are four operational quarries with total reserve of 2920 thousand cubic meters. It is necessary to note that the length of transportation of concrete aggregates for all sections constitutes large distances, and this fact will significantly impact the cost of rehabilitation. It will be possible to avoid the increase of costs only by means of utilization of stabilized soils for road beds.

85. Table 4.9 shows the availability of concrete aggregates at enterpises TDEO “Karakalpakavtoyul”, TDEO “Bukharaavtoyul” and TDEO “Horezmavtoyul”.

Table 4.9

Capacity Location and Name of of quarry, No name of Name of material organization thousand quarry m3

TDEO “Karakalpakavtoyul” Crushed stone, crushed stone 1 Karatau Karatau RPREPDH 2000 sand mix 2 Kizilkala Ellikala RPREPDH crushed stone sand mix 170 3 Kazgansai Biruni RPREPDH crushed stone sand mix 100 4 Karauzak Karatau RPREPDH crushed stone sand mix 650 Subtotal: 2920 TDEO «Horezm» 1 Djumurtau Horezm SPREPDH Gravel sand mix 200 2 Tuprakkala Tuprakala SPREPDH Gravel sand mix 60 Subtotal: 260 TDEO «Bukharavtoyul» GUP 1Ziadin Crushed stone 750 «Bukhara» Severniy 2 Ramitan RPREPDH Gravel sand mix 80 collector Subtotal: 830 Total: 3010

IKS GROUP OF COMPANIES 23 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

86. Road bed of the project sections will be constructed of road side reserves and local soil or stone quarries. Cement-concrete mixes will be used for covering the structure of road pavement. Capacities for production of cement-concrete mixes by ancillary support productions of road enterprises taking into account complexes to be procured will be sufficient for meeting the demand for the road construction.

4.9.4 Engineering Utilities

87. For the first section from 315km to 355km there will be the following re-arrangement of engineering communications: High voltage line 110 kW - 2 High voltage line 35 kW - 2 Gas pipeline - 4 Water pipelines - 2

88. For the second section from 355km to 440 km there will be the following rearrangement of engineering communications: Water pipeline - 1

89. For the third section from 440 km to 490 km there will be the following rearrangement of engineering communications: High voltage line 35 kW - 3 Gas pipeline - 3 Water pipeline - 3

90. For the fourth section from 581 km to 628 km there will be the following rearrangement of engineering communications: High voltage line 110 kW - 3 High voltage line 35 kW - 6 High voltage line 10 kW - 8 Gas pipeline of high pressure - 2 Gas pipeline of medium pressure - 8 Water pipeline - 4

4.10 PRINCIPLE APPROACH AND METHODOLOGY FOR APPROVAL OF ENGINEERING DESIGN OPTIONS AT THE STAGE OF FEASIBILITY STUDY PREPARATION

4.10.1 Category of Road, Number of Lanes and Pavement type

91. The number of lanes (four lanes) and pavement type (cement-concrete) were adopted in accordance with the program for construction and reconstruction of road sections comprising Uzbekistan national road for 2009-2014, approved by the Presidential Decree No PP-1103 “On measures for reconstruction and development Uzbekistan national highway for 2009-2014” dated 22.04.2009. This program envisages a 4-lane section of the road with cement-concrete pavement at 228-628km of the road A380 Guzar-Bukhara-Nukus-Beineu.

92. The category of the road was established in accordance with ShNk standard 2.05.02- 07 “Automobile roads” (town planning norms and rules), approved by the State architectural committee of the Republic of Uzbekistan on 03.07.2008. According to ShNK 2.05.02-07 the road belongs to category Ib.

4.10.2 Road Alignment

93. The design envisages two types of road alignment: Z Arrangement of roadway on the single road bed; Z Arrangement of roadway on two separated road beds.

IKS GROUP OF COMPANIES 24 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

94. Separated arrangement of road bed is envisaged on the sections, where there are no major obstacles for separation of directions and allotted lands (barkhan sands) are not appropriate for agriculture.

95. Single road bed is envisaged Z At the locations of the structures of road control services and traffic control points of the relevant services (367km, 455km);

Z In the area of Gazli, where space-limited environment and existing engineering utilities do not permit separated arrangement of road beds (325-334km); Z At the section 470-490km, where in 2007-2008 there was built single road bed for 4-lane traffic, and the roadway was constructed for 2-lane traffic; Z At the section 581-628km with bypass of towns of Turtkul and Biruni owing to space-limited environment and availability of agricultural lands.

96. When the road bed is arranged separately, new road bed will be constructed on the right of the existing road bed, in case when nearby engineering utilities are located on the left side, and when engineering utilities are located on the right side. The road bed will be constructed on the left side. The detailed advantages of two separated road bed were described in previous sections of the report.

Table 4.10 Sections, Length, Type of road bed Location of road bed km-km km 315-325 10 Separated On the left of existing road bed 225-334 9 Single - 334-367 33 Separated On the left of existing road bed 367-368 1 Single - 368-439 71 Separated On the right of existing road bed 439-455 16 Separated On the left of existing road bed 455-456 1 Single - 456-470 14 Separated On the left of existing road bed 470-490 20 Single - 581-628 47 Single - Total - 222 km, including: 78 km – single; 144 km – separated

4.10.3 Geological and Topographical Survey

97. In the design there have been used materials of previously done geological and topographical surveys, reference materials, and preliminary results prepared by design institutes responsible for preparation of detailed design, including: Z Exploratory shafts with the depth of 3m were done along the existing and design road alignment, including bore holes with the depth of 6 m done along the designed alignment;

Z Quarries for loamy soils and sand-gravel aggregates or sand-lime aggregates were determined for construction of diaphragm with making bore holes at the quarries at the depth of 6m;

Z At the location of construction of the designed bridges, cross-overs and reconstruction of existing bridges there were made bore holes with the depth of 15m to determine the type, stratification depth and category of layers and their physical and mechanical properties;

IKS GROUP OF COMPANIES 25 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z The thickness of constructional layer of existing pavement surfacing was determined including determination of strength properties.

Z The section at 315-490 km is characterized by barkhan sands of Kyzyl-Kum desert with the deep occurrence of ground waters. The section at 581- 628 km is characterized by loamy soils and sandy-loam soils in the irrigated Amudarya river estuary.

4.10.4 Climate, Ground and Surface Waters, Soil Covering

98. The territory, through which the project section traverses, is located in the area of arid climate in the middle of the continent with the plenty of heat and sunshine, far away from mountain ranges, characterized by strongly continental climate, and extreme dryness. Indicators of monthly, annual temperatures, directions and speed of winds, and also characteristics of precipitation were received from meteorological stations Bukhara (Bukhara region), Urgench (Horezm region) and Nukus (Republic of Karakalpakstan). Average monthly temperature in July is 28,4 0, in January -8,2 0, annual 12,4 0, maximum -47 , minimum – 29 0.

99. The height of permanent cloak of snow is 5cm, duration – 16 days. Depth of soil freezing – 40cm. Amount of rain precipitation is 9.2cm, maximum daily amount of precipitation is 4.8cm. Main direction of winds - north-east, frequency - 36. Ground waters are absent within the limits of the road section 315-490 km. Ground waters at the section 581-628km are at the depth of 2-3m.

100. Surface watercourses are mainly the river Amudarya and its confluents in Turtkul, Ellikala and Biruni districts: channels of irrigation systems; and, collection-drainage networks. Seasonal surface waters precipitated in the form rain and snow, accumulated at lows at salt marshes. Soil covering is formed by the complex of sandy desert soils. The following soil differences can be mentioned: gray-brown desert soils, takyrs and washed-out soils, salt marshes, sandy gypsum soils of saxauls. Seismicity level, based on KMK 2.01.03-96 standard is 7 magnitude.

4.10.5 Existing and Prospective Density and Composition of Traffic

101. Analysis of data regarding traffic volume along the project sections for the recent 9 years shows that average annual traffic volume is 1500-1900 automobiles/day. Composition of traffic flow, on the average, is distributed as follows: Light vehicles - 17-18%; Trucks up to 3,5 t - 4-5%; Trucks 3,5-10 t - 25-26%; Trucks more than 10 t - 26-27%; Micro buses - 5-6%; Buses - 17-19%; Others - 3-4%.

102. In addition to the analysis of available data, the Consultants made also carried out traffic count at 367km and 628km of A-380. Traffic forecast for A380 is carried out for 25 years after completion of the Investment Program. Based on experience in many developing economies, the freight traffic for A380 is expected to increase at a slightly higher rate then the gross domestic product (GDP). For the passenger traffic, it is forecasted to increase at the product of the population and per capita GDP growth rates.

103. The design assumes with about 8000 passenger car unit (PCU) per day in 2030, the hourly traffic is estimated at about 1500 PCU. With 4-lane road in operation after the Investment Program completion, the road will be able to adequately accommodate the growing traffic up to 2030 and beyond.

IKS GROUP OF COMPANIES 26 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4.10.6 Alignment

104. Design of the road alignment is envisaged based on the condition of the minimum limit and change of the speed, provision of traffic safety and convenience of traffic. Main parameters of horizontal alignment were accepted in accordance with ShNK 2.05.02-07 standard “Automobile roads”. 105. Designed speed of the traffic was adopted depending on the category of road. For the road of category Ib design speed will be 120km/h. The lowest curve radius in horizontal alignment is 3000m.

4.10.7 Vertical Alignment of the Road

106. Vertical alignment of road is envisaged taking into account satisfaction of requirements stipulated for design category, strength of road bed, engineering geological and environmental conditions. Guiding points of reference for vertical alignment are envisaged in accordance with the requirements of ShNK 2.05.02-07 depending on the type of lower layer (sub-base) and taking into account relief and banks of a road bed. Designed speed of traffic for the purpose of design of vertical alignment elements was accepted as 120km/h.

107. Values of the vertical alignment elements were also adopted in accordance with the requirements of ShNK 2.05.02-07 and are: Z Maximum longitudinal grade – 4%; Z minimum radius of convex curves – 15000 m; Z minimum radius of concave curves– 5000 m: Z sight distance for vehicle stop – not less 250m

4.10.8 Roadbed

108. The road bed is envisaged in accordance with the requirements of ShNK 2.05.02-07 taking into account the height of fills (embankments), depth of cuts, engineering and geological conditions, provision of stability of road bed, utilization of existing road bed, and minimum impact on environmental conditions. Construction of a road bed will be done with the use of the sands from designed excavation hollows and road-side reserves.

109. Utilized roadside reserves will be subject to recultivation. It is envisaged to construct diaphragm above the road bed and at slopes with the thickness of 15/20cm made of cohesive soil/sand-lime aggregate from local quarries. Based on the climatic, ground, hydrological conditions and also taking into account the experience of road operation it is not envisaged to install longitudinal drainage.

4.10.9 Cross-Sections of the Road

110. Please see the typical cross-section of both types of roads together with other drawings in Appendix 3 of this report. It is designed 8 types of cross sections of a road: 1. Fill of road with separated arrangement of a road bed with the height of 2m. 2. Fill of road with separated arrangement of a road bed with the height of more than 2m. 3. Cut of road with separated arrangement of a road bed with the depth of 2m. 4. Cut of road with separated arrangement of a road bed with the depth of more than 2m. 5. Fill of road with single arrangement of a road bed with the height of up to 2m. 6. Fill of road with single arrangement of a road bed with the height of more than 2m. 7. Cut of road with single arrangement of a road bed with the depth of up to 2m.

IKS GROUP OF COMPANIES 27 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

8. Cut of road with single arrangement of a road bed with the depth of more than 2m. 111. Design values of geometrical elements of the road with separated arrangement of a road bed: Z Width of carriageway – 7,5 2 Z Width of lanes - 3,75 m Z Width of road shoulders – 3,75 m Z Width of margin strips – 0,75 m Z Bank of carriageway – 15 - Z Bank of outer road shoulder – 30 Z Bank of inner road shoulder – 15 Z Inclination of fill slopes up to 2m – 1:3 Z Inclination of fill slopes more than 2m – 1:2 Z Inclination of inner cut slopes – 1:3 Z Inclination of outer cur slopes – 1:4.

112. Distance between edges of road bed of backwards directions – 12,5m and more. Minimum distance between edges of a road bed of the backwards directions was accepted as 12,5m and more, taking into account possible prospective increase of number of lanes till three in each direction.

113. Design values of geometrical elements of the road with single arrangement of a road bed: Z Width of carriageway – 27,5 m Z Width of lanes – 3,75 m Z Width of road shoulders – 3,75 m Z Width of margin strips – 0,75 m Z Width of central reserve – 2,6 m Z Width of margin strip at central reserve – 1,0 m Z Bank of outer road shoulder – 15 /, lean-to Z Bank of road shoulder – 30 / Z Inclination of fill slopes up to 2 m – 1:3 Z Inclination of fill slopes more than 2m – 1:2 Z Inclination of inner cut slopes – 1:3 Z Inclination of outer cur slopes – 1:4.

114. When cuts (excavations) have the depth of more than 2 m, it is envisaged to arrange strips with the width of 3m before the outer cut slopes.

4.10.10 Road pavement

115. Design of a road pavement is envisaged in accordance with the requirements of ShNK 2.05.02-07 standard and departmental norms and rules MKN 44-2008 “Instructions for design of rigid road pavements”, approved by the State architectural and construction committee of the Republic of Uzbekistan on 26.12.2008 and approved by “Uzavtoyul” on 31.12.2008.

116. During design of the road pavement the following factors were taken into account:

IKS GROUP OF COMPANIES 28 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Density and composition of traffic Z Loads by types of vehicles Z Characteristics of the utilized construction materials Z Strength of existing road pavement Z Climatic and ground-hydrological conditions Z Reliability and economic efficiency Z Conditions of operations

117. In accordance with the requirements of ShNK 2.05.02-07 the load on single most loaded axle of a vehicle, for the purpose of calculation of the strength of road pavement, is accepted as 130kN (13tc), and the service life of a road pavement, based on the coating life of the material of the upper layer – cement-concrete pavement – is 25 years.

118. During strength calculation, the prospective density of traffic of vehicles of different types and brands (except for passenger light vehicles) was taken into account, this was related to equivalent density of design load impact on the most loaded lane of the carriageway.

119. The values of traffic loads: ground, environmental and climatic conditions; strength parameters of stone materials; and the strength of existing road pavement were examined. Standard loads, dimensions of the main construction elements – width and length of monolithic concrete slabs; thickness of base layers; center joints; transverse expansion joints; compression joints; the distance between them; and reinforcing of slabs and joints were then determined and designed

120. Calculation of the thickness of monolithic cement-concrete pavement was carried out considering the value and frequency of the total stress from vehicle loads and the temperature. Calculation of the thickness of subgrade was done on the condition of limit equilibrium at the shift of each layer of road pavement and road bed.

121. Structure of road pavement for additionally constructed 2-lane carriageway, margin strips, combined acceleration-deceleration lanes, and also at passing bays, envisaged by the design includes: Z Monolithic cement-concrete pavement with the thickness of 25cm made of sulphate resistant concrete mix M400 as per GOST 26633-91 Z Damp-proof course made of roll material PPA Z Surface course of subgrade made of crushed rock and sand mix, strengthened by sulphate resistance cement 6% as per RST Uz 23558-94, thickness 16 cm Z Base course made of crushed rock and sand mix as per RST Uz 25607-94, thickness 20 cm Z Diaphragm made of local stone materials or cohesive soils with thickness of 20/15cm

122. Structure of road pavement if existing carriageway with asphalt-concrete pavement is used: Z Monolithic cement-concrete pavement with the thickness of 25 cm made of sulphate resistant concrete mix M-400 as per GOST 26633-91 Z Damp-proof course made of roll material PPA Z Surface course of subgrade made of crushed rock and sand mix, strengthened by sulphate resistance cement 6% as per RST Uz 23558-94, thickness 16 cm with inclusion of leveling course made of the same material.

IKS GROUP OF COMPANIES 29 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Existing structure of a road pavement.

4.10.11 Road Construction Materials

123. Requirement in material resources under the project is determined based on existing norms. Road bed of the project section will be constructed with the utilization of roadside reserves and local ground and stone quarries. Materials from local quarries will be used for construction of diaphragm and added road shoulders.

124. Stone-sand aggregate for construction of sub-base and upper layer of road bed, and also fractional ballst for preparation of cement-concrete mixture will be delivered from Karatau quarry (Republic of Karakalpakstan) and quarry “Djingeldi” (Bukhara region). The details of the location of quarries are described in previous sections of the report.

125. Concrete of -400 and -100 grades will be produced by concrete plants installed every 30km of roads, on average. Reinforced concrete elements will be delivered from Urgench and Bukhara.

126. Technical water will be provided from water abstraction points of water pipeline located along main gas pipeline in the area of project sections. Delivery of cement is envisaged from Navoi cement plant (Navoi city), reinforcing bars from Bakabad metallurgical plant, rubber and nonrigid jointing from Angren (Tashkent region), film-froming materials, metal side guards – from Tashkent.

4.11 METHODOLOGY FOR DETERMINATION OF CONSTRUCTION COST

127. Cost of construction in current prices is determined for four project sections for each type of works and construction elements. In accordance with the existing normative the starting cost of the project in the current prices is calculated by resource method, based on calculation of costs in the projected current prices and tariffs for resources.

128. Calculation was done in officially used specialized software for determination of the project costs based on resource method. The basis for determination of cost was the following: Unit cost for power unit, bill of construction and installation quantities, resource cost estimates, specifications, existing cost estimate standards, and also factory prices for materials.

129. For the purposes of cost determination, the summary resource sheet was prepared, comprising local resource sheets, site resource sheets, and bill of materials. Local resource sheets are prepared for individual types of works and expenses on the bases of the determined work volumes. Site resource sheets combine data from local resource sheets. Summary resource sheets are prepared on the basis of the site resource sheets.

130. The following costs are determined using the resource method: Z labor costs of construction workers; Z operating costs for construction machines and equipment; Z costs of procurement of materials, structures and products including transportation and warehouse costs; Z other production costs; Z other expenses of the contractor; Z other expenses of the employer.

131. Table 4.10 below gives the costs of machines, materials and labor that are used in calculating cost estimate of civil works.

IKS GROUP OF COMPANIES 30 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.10 Cost of materials, constructions, as well as machines involed in construction Unit cost, Unit cost, ITEM Unit measu. sum USD Construction machines and mechanisms Standard Land grader 99 kvt. spare parts 39,718.00 26.06 Binder distributor 3500 lt. spare parts 25,539.47 16.76 Fork lift 5 t. spare parts 47,217.65 30.98 Cement truck 13 t. spare parts 14,857.00 9.75 Dumping trucks, payload up to 10 t. spare parts 10,261.32 6.73 Bulldozers 79 kvt spare parts 42,101.00 27.63 Bulldozers 96 kvt spare parts 42,101.00 27.63 Joint pourer spare parts 14,857.00 9.75 Rollers with trailer on pneumatic-tire wheels 25 t. spare parts 29,017.15 19.04 Smooth traveling road rollers 13 t. spare parts 30,569.25 20.06 Pneumatic traveling rollers 16 t. spare parts 29,017.15 19.04 Vibrating traveling rollers, more than 8 t. spare parts 54,815.00 35.97 Floor saw spare parts 72,274.00 47.42 Vehicles for mopping of filmforming materials spare parts 8,438.00 5.54 Flushing machine spare parts 36,242.54 23.78 Traveling road scraper, 8 m3 spare parts 26,334.00 17.28 Recycler spare parts 152,147.00 99.83 Crane excavators 1 m3 spare parts 66,406.00 43.57 Marking cars, up to 10 t. spare parts 11,641.06 7.64 Concrete paver SP-850 spare parts 258,668.00 169.73 Loader spare parts 49,169.51 32.26 Asphalt paver spare parts 71,884.00 47.17 Road measuring machine spare parts 2,500.00 1.64 Traveling pavement profiler 1500-2100 mm spare parts 173,565.00 113.89 Transportation oc cargos in dumpers up to 1 km t 447.66 0.29 Construction machines and products Road concrete mix type of M-2 t 62,742.00 41.17 Road concrete mix coarse granular t 58,529.00 38.40 Sulfate-resistant concrete 30 fraction 5-20 mm m3 148,069.38 97.16 Water m3 275.55 0.18 Mix coarse granular crushed stones t 58,956.00 38.69 Mix crushed stone sand fraction 0-70 mm m3 17,958.67 11.78 Sand-limestone mix m3 2,500.00 1.64 Portland cement -500 t 125,000.00 82.02 Crushed stone m3 21,404.23 14.04 Sand m3 1,500.00 0.98 Water m3 275.55 0.18 Bitumen BND-40/60 t 226,575.00 148.67 Bitument-polymer mastic t 226,575.00 148.67 Thermoplastic kg 3,500.00 2.30 Filmforming materials PM-100a t 2,200,000.00 1443.57 Armature 1 D 22 t 1,750,000.00 1148.29 Warning sign m3 275,218.00 180.59 Sign 12001200 pcs 35,144.00 23.06 Sign 900900 pcs 35,144.00 23.06

132. Costs for construction materials, products and structures are determined on the basis of resource sheets prepared in accordance with specifications with the use of the prices of manufacturing plants/suppliers including transportation and warehouse expenses.

133. The Average cost of various construction materials, products, and structures are determined on the basis of wholesale factory prices of manufacturing plants, supplying organizations, catalogues of the current prices for construction materials: and, issues by the State architectural and construction committee of Uzbekistan. The cost of machine-hour for utilization of machines and equipment is determined based on monitoring.

IKS GROUP OF COMPANIES 31 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4.12 METHOD FOR DETERMINATION OF WORK SCOPE

134. The scope of works is determined for four project sites for each type of work and structural elements:

A) Preparatory works Z Alignment of main axis of road Z Land acquisition Z Demolition of structures Z Relocation of engineering utilities

B) Road bed Z Planning of upper surface of road bed bottom Z Soil excavation by excavator Z Soil excavation and transportation by bulldozer/scraper Z Compaction of soils of fill and bottom of road bed at cuts by paving compactors Z Planning of surface of road bed and fill slopes

C) Road pavement Z Construction of diaphragm made of sand-lime aggregate above road bed and at slopes Z Excavation of soil by excavator Z Construction of sub-base of road bed of gravel-sand aggregate Z Loading and transportation by dumping trucks Z Construction of roadbase of gravel-sand aggregate strengthened with sulphate resistant cement by recycler Z Construction of added road shoulders Z Installation of water proofing layer Z Installation of cement-concrete coating M-400 made of sulphate resistant cement Z Maintenance of the upper layer of coating – installation of film-forming material Z Installation of water proofing layer made of roll material Z Covering with the layer of sand Z Construction of pin joints in cement-concrete coating Z Cutting deformation joints in hardened concrete to the depth of 25cm Z Filling in deformation joints with deformation gasket Z Filling in joint filler glue Z Cutting transverse and longitudinal joints in hardened concrete to the depth of 8.5cm Z Embedment into the joint of cord made of porous rubber d-15mm with filling in joint filler glue Z Reinforcing by roof framings above artificial structures and utilities. Strengthening of shoulders

D) Crossings and junctions, turns and technological cuts, stopping areas Z Scope of works is determined similar to road pavement.

IKS GROUP OF COMPANIES 32 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

E) Road facilities construction and road marking Z Installation of road signs Z Installation of retroleflective warning poles Z Installation of road guard rails Z Putting vertical and horizontal road marking

135. Based on above principles and approach the average unit cost per km has been calculated for different road sections with various parameters as indicated in Tables 6.1-6.4 and summary cost estimate indicated in Table 6.5:

IKS GROUP OF COMPANIES 33 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.11 Estimate of reconstruction of 1km of road Number of Total cost in utilized Item Scope Cost in USD machines USD and equipment I. Single road bed with the use of existing pavement 1 Road bed materials, m3 5192 648 transport, t 8930 4172 63579 equipment, machine-hour 1381 53733 10 wages, person-hour 2255 5026 2 Diaphragm materials, m3 4536 14454 transport, t 7802 16826 93147 equipment, machine-hour 1243 26813 10 wages, person-hour 8158 35055 3 Subbase materials, m3 2340 19391 transport, t 5071 91866 121036 equipment, machine-hour 269 8206 6 wages, person-hour 598 1573 4 Surface course materials, m3 3840 70124 transport, t 6658 131621 263602 equipment, machine-hour 678 60059 9 wages, person-hour 1290 1798 5 Concrete pavement materials, m3 4696 1005958 transport, t 11236 35730 1288396 equipment, machine-hour 3550 205778 15 wages, person-hour 13388 40930 6 Road shoulders materials, m3 7700 10822 transport, t 13244 28561 60745 equipment, machine-hour 521 19455 6 wages, person-hour 919 1907 7 Strengthening road shoulders materials, m3 953 6405 transport, t 1640 30168 45777 equipment, machine-hour 178 8039 4 wages, person-hour 422 1165 8 Road safety road signs materials, m3 0.13 69 transport, t 0.325 7 117 equipment, machine-hour 0.36 9 3 wages, person-hour 831 Road guards materials, m3 43 57903 transport, t 123 1731 68242 equipment, machine-hour 187 2770 4 wages, person-hour 1649 5839 road marking materials, m3 4067 1462 transport, t 0.375 0 2447 equipment, machine-hour 13 945 3 wages, person-hour 28 40 2007088

Note: All estimations do not include the cost of u-turns, crossings and junctions, artificial structures

IKS GROUP OF COMPANIES 34 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.12 Estimate of reconstruction of 1km of road Number of Total cost Item Scope Cost in USD utilized machines in USD and equipment II. Single road bed without use of existing pavement 1 Road bed materials, m3 5192 648 transport, t 8930 4172 63579 equipment, machine-hour 1381 53733 10 wages, person-hour 2255 5026 2 Diaphragm 0 materials, m3 4536 14454 transport, t 7802 16826 93147 equipment, machine-hour 1243 26813 10 wages, person-hour 8158 35055 3 Subbase 0 materials, m3 4740 31655 transport, t 8154 149970 197589 equipment, machine-hour 439 13396 6 wages, person-hour 975 2568 4 Surface course 0 materials, m3 3840 70124 transport, t 6658 131621 263602 equipment, machine-hour 678 60059 9 wages, person-hour 1290 1798 5 Concrete pavement 0 materials, m3 4696 1005958 transport, t 11236 35730 1288396 equipment, machine-hour 3550 205778 15 wages, person-hour 13388 40930 6 Road shoulders 0 materials, m3 7700 10822 transport, t 13244 28561 60745 equipment, machine-hour 521 19455 6 wages, person-hour 919 1907 7 Strengthening road shoulders 0 materials, m3 953 6405 transport, t 1640 30168 45777 equipment, machine-hour 178 8039 4 wages, person-hour 422 1165 8 Road safety 0 road signs 0 materials, m3 0.13 69 transport, t 0.325 7 117 equipment, machine-hour 0.36 9 3 wages, person-hour 831 Road guards 0 materials, m3 43 57903 transport, t 123 1731 68242 equipment, machine-hour 187 2770 4 wages, person-hour 1649 5839 road marking 0 materials, m3 4067 1462 transport, t 0.375 0 2447 equipment, machine-hour 13 945 3 wages, person-hour 28 40 9 Dismantling of pavement 0 materials, m3 00 transport, t 00 49277 equipment, machine-hour 4100 48197 4 wages, person-hour 271 1081 2132918

IKS GROUP OF COMPANIES 35 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.13 Estimate of reconstruction of 1km of road

Number of Total cost Item Scope Cost in USD utilized machines in USD and equipment

III. Separated road bed with the use of existing pavement 1 Road bed materials, m3 12800 1601 transport, t 22016 10272 135116 equipment, machine-hour 3426 110939 10 wages, person-hour 6076 12303 2 Diaphragm 0 materials, m3 10332 31110 transport, t 17771 38323 157640 equipment, machine-hour 2178 41275 10 wages, person-hour 13306 46932 3 Subbase 0 materials, m3 2780 18561 transport, t 4781 87941 113004 equipment, machine-hour 215 5455 6 wages, person-hour 477 1046 4 Surface course 0 materials, m3 3840 70124 transport, t 6658 131621 253293 equipment, machine-hour 678 50049 9 wages, person-hour 1290 1498 5 Concrete pavement 0 materials, m3 4545 980700 transport, t 10908 34786 1220234 equipment, machine-hour 3537 170946 16 wages, person-hour 13306 33802 6 Road shoulders 0 materials, m3 7700 10822 transport, t 13244 28561 57185 equipment, machine-hour 521 16213 6 wages, person-hour 919 1589 7 Strengthening road shoulders 0 materials, m3 1788 12010 transport, t 3075 56564 80558 equipment, machine-hour 279 10468 4 wages, person-hour 660 1517 8 Road safety 0 road signs 0 materials, m3 0.13 69 transport, t 0.325 7 117 equipment, machine-hour 0.36 9 3 wages, person-hour 831 Road guards 0 materials, m3 14 13112 transport, t 33 536 15595 equipment, machine-hour 46 737 4 wages, person-hour 349 1211 road marking 0 materials, m3 4067 1462 transport, t 0.375 0 2447 equipment, machine-hour 13 945 3 wages, person-hour 28 40 2035188

IKS GROUP OF COMPANIES 36 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.14 Estimate of reconstruction of 1km of road Number of Total cost in utilized Item Scope Cost in USD USD machines and equipment IV. Separated road bed without use of existing pavement 1 Road bed materials, m3 12800 1601 transport, t 22016 10272 135116 equipment, machine-hour 3426 110939 10 wages, person-hour 6076 12303 2 Diaphragm 0 materials, m3 10332 31110 transport, t 17771 38323 157640 equipment, machine-hour 2178 41275 10 wages, person-hour 13306 46932 3 Subbase 0 materials, m3 4765 31820 transport, t 8196 150756 193720 equipment, machine-hour 368 9352 6 wages, person-hour 817 1792 4 Surface course 0 materials, m3 3840 70124 transport, t 6658 131621 253293 equipment, machine-hour 678 50049 9 wages, person-hour 1290 1498 5 Concrete pavement 0 materials, m3 4696 1005958 transport, t 11236 35730 1247278 equipment, machine-hour 3537 171481 15 wages, person-hour 13306 34109 6 Road shoulders 0 materials, m3 7700 10822 transport, t 13244 28561 57185 equipment, machine-hour 521 16213 6 wages, person-hour 919 1589 7 Strengthening road shoulders 0 materials, m3 1788 12010 transport, t 3075 56564 80558 equipment, machine-hour 279 10468 4 wages, person-hour 660 1517 8 Road safety 0 road signs 0 materials, m3 0.13 69 transport, t 0.325 7 117 equipment, machine-hour 0.36 9 3 wages, person-hour 831 Road guards 0 materials, m3 14 13112 transport, t 33 536 15595 equipment, machine-hour 46 737 4 wages, person-hour 349 1211 road marking 0 materials, m3 4067 1462 transport, t 0.375 0 2447 equipment, machine-hour 13 945 3 wages, person-hour 28 40 9 Dismantling of pavement 0 materials, m3 00 transport, t 00 49277 equipment, machine-hour 4100 48197 4 wages, person-hour 271 1081 2192225

IKS GROUP OF COMPANIES 37 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.15 Consolidated cost estimate of major road construction works proposed under the project by sections Thousand USD km 315-355 km 355-440 km 440-490 km 581-628 Description of work and costs Volume of Volume of Volume of Volume of Cost Cost Cost Cost works works works works Road Bed Road Bed Arrangement, 40 4935,6 85 11212,5 50 3810,9 47 7468,6 Road Pavement Road Surfacing, 40 76422,5 85 163150,0 50 85615,0 47 85940,8 Engineering Structures Bridges, running meter 60 419,0 - - 9/288 6611,1 Pipe curvets, running meter - - - 20/600 2220,9 “Pipe” type interchange, running meter - - - 2/120 3212,9 Bridge over the railway, running meter - - - 2/120 3061,5 Road Furniture and Facilities Road signs, road guards and marking, running 40 656,7 85 1325,0 50 2114,7 47 2971,0 meter Bus stops, units 6 17,6 10 44,1 - 6 17,6 Engineering Utilities Rearrangement of gas pipeline, water course, - 190,2 - 460,9 - 38,6 - 3606,5 communications and power transmission lines Total: 82641,6 176192,6 91579,2 115111,0 Costs are provided without VAT.

IKS GROUP OF COMPANIES 38 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 5: ECONOMIC ANALYSIS FOR PROJECT 2 AND 3

5.1 Economic Analysis of Road Works

136. The Consultant’s economic analysis is carried out in two parts utilizing the costs presented in Table 5.1. Costs are expressed net of VAT, Customs Duties and excise tax. As regards the civil works and associated advisory services, an economic appraisal utilizing RED HDM-4 VOC has been prepared. Costs are summarized in Table 5.1.

Table 5.1 Project Capital and Maintenance Costs for Road works Works Cost Capital Works US$ 527.4 million including physical contingencies Routine Maintenance US$ 2777 per km Periodic 5 % of capital cost commencing in 2028 and continuing until the Maintenance conclusion of Project Source: Consultant’s estimate.

The details of the vehicle types and accessories are shown in outline in Table 5.2.

Table 5.2 Outline of Vehicle Types and Accessories to RED Analysis Input Type or Detail Vehicles Car Nexis II DOHC 150 Minibus Minibus GAS – 2217 and Minibus GAZ 22171 Sobol UAZ NP 37 and SAP NP 21 Trucks Kamaz – 4308 5t Kamaz 43118 10 t Kamaz 65117 14 t New Kamaz and Maz Articulated Trucks Tyre Types For Minibuses and Buses – Imports from Russia, Japan, Malaysia and Indonesia For medium and heavy buses – Imports from Russia and Thailand Fuel Uzbekistan sourced Lubricants Mix of imports Average Wages – Locally sourced Trucks Overheads Vehicle registration fees and annual license fees

137. In the RED analysis, the following benefit types have been identified:

(i) Vehicle Operating Cost (VOC) savings to existing users-Normal traffic benefits; (ii) Time value savings. A small portion of the travel times of travelers by car is work related. As they will benefit from reduced travel time, the savings over the life of the project are calculated taking into account the work trip ratio, vehicle occupancy and are based on an average income of $0.08/hour/passenger; (iii) Domestic generated traffic benefits which are assumed to equal 50 % of the benefit accruing to domestic users of the A 380. Domestic generated traffic is assumed to equal 20 % of the volume of existing traffic by 2015; and,

IKS GROUP OF COMPANIES 39 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

(iv) Road Accident Savings arising from expansion to 4 lanes from 2 lanes on certain sections of the road.

138. As regards the last type of benefit, the investment Program is targeting the reduction of traffic accidents from 150 (2008) to 75 per year (2016) due to safer road operating conditions. This is expected to generate substantial savings given the alarming road safety condition in Uzbekistan at present. Under the without-project scenario, accident and fatality rates were based on the actual traffic accident data available in the project area. The relative reduction in accident rates arising from upgrading to dual carriageway was estimated at 35 fatalities and 80 injuries annually.

139. In the absence of data from Uzbekistan, the values of $400,000 per fatality and $50,000 per injury accident were used to value benefits from traffic accident savings. These estimates are comparable to those in Romania ($497,000 per fatality and $59,000 per injury) and Croatia ($470,000 per fatality and $57,000 per injury). The comparison with Romania and Croatia was used to demonstrate that the estimates adopted are likely to be of the right order. Average values for developed European Union economies are much higher (in excess of Euro 1 million per fatality).3

5.2 Findings

140. The VOC-IRI equations calculated by RED-HDM-4 VOC were utilized in the calculation of benefits. The current International Roughness Index (IRI) of the km under consideration for rehabilitation is estimated to be 8 for the Khorezm Province Section (km 315-490) and 8 for the Karakalpakstan Province Section (km 581-628).

141. The input data to RED-HDM-4 VOC includes vehicle prices which have been calculated on the basis of Uzbekistan vehicle prices obtained from local dealers as of January 8, 2010 net of duties and tax. A world price for petroleum and lubricants has been calculated based on a price per barrel of US$ 70. Uzbekistan crew wages, mechanics charge and utilization rates have been adapted from previous studies carried out by the Consultant. The driver’s wages of commercial vehicles are included in the overhead figure utilized in RED-HDM-4 VOC.

142. The Road Fund and Uzavtoyal have decided to expand the right of way with replacement of the existing road bed with a concrete 4 lane road. Table 2.3 overleaf presents the EIRR calculation for the reconstruction of the whole section under reconstruction. The reconstruction is viable under the Consultant’s assumptions.

Table 5.3 presents the EIRR of the different Sections.

Table 5.3 EIRR of the Different Sections Whole Sections Road Km 315-355 355-440 440-490 581-628 EIRR (%) 16 16 16 17 15

5.3 Sensitivity Analyses

143. The Consultants have carried out sensitivity tests on costs and benefits. The following sensitivity analyses were run for the road as a whole and for the sections running from km 355-440 under Project 2, and from km 315-355 and km 581-628 sections in Project 3. Under the implementation schedule:

3 Feasibility Study for Arad-Timisoara Motorway, Scetauruote/BCEOM, 2007.

IKS GROUP OF COMPANIES 40 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

(i) Capital cost plus 20 %; (ii) Traffic benefits less 20 %; (iii) Only normal traffic benefits; (iv) Capital cost increased by 20 % and traffic reduced by 20 %;

144. The results of the analysis are shown in Table 5.4. The results remain viable under the assumptions. Table 5.4 Sensitivity Test Results IRR for the IRR for IRR for IRR for Sensitivity Test overall section Project 2 Project 3.1 Project 3.2 (%) (%) (%) (%) Base Case 16 16 16 15 Capital Costs Plus 20 % 14 14 14 14 Traffic benefits less 20 % 14 14 14 13 Only Normal Traffic 13 13 14 14 Benefits Capital Cost plus 20 % and Traffic reduced by 20 14 12 12 12 %

The EIRR and sensitivity analysis of each section of the road to be improved is shown in Appendix 4 together with basic data input to HDM software and its results.

5.4 Set of Pile-boring Equipment

145. Under the ongoing Loan 2403-UZB: CAREC Regional Road Project it was envisaged to procure set of pile boring machines, depth up to 50m, diameter 1.7m in the complex for road construction works on concrete paved roads. The cost for such equipment was estimated by consultants in the amount of 3,029,000.00 USD. However when the bids were opened in year 2008, the least evaluated responsive bid was 10,100,000.00 EURO that brings to the conclusion that the cost was underestimated in the first project.

146. Since this set of pile-boring equipment is important part of the complex for road construction works on concrete paved roads and is part of technological process Road Fund recommended to procure this equipment as well under the project and new cost was estimated at the price of 15 mln USD.

147. It has to be noted that economic appraisal of the equipment together with sensitivity analysis had been carried out in the feasibility study prepared under ADB PPTA No. 4889- UZB “Preparing the Regional Infrastructure (ROADS) Project”. The sensitivity analysis concluded that it would require an increase in the capital cost of the equipment of 107 % to render the acquisition of the equipment non-viable. A 33 % reduction in benefits would have the same impact. In our case the total cost increased only for 21.7%.

5.5 Customs Inspection-Screening Equipment Complex.

148. Project 3 includes under transport logistics component the procurement of customs inspection-screening complex to carry out nonintrusive inspection of road vehicles and bulky cargos.

149. In 2010 the State Customs Committee, at its own expense, is planning construction of customs terminal (post) ‘Daut-ata” (plateau Ustuyrt) in the Republic of Karakalpakstan. This terminal has “international” status, operating regime “twenty-four-hour” and is one of the strategically important facilities of the Republic. This customs terminal ensures border and customs control at project road A-380. Commissioning of customs terminal “Daut-ata” will

IKS GROUP OF COMPANIES 41 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT provide appropriate control of entrance and departure of people, road vehicles and freight goods, being transported along the road “Grate Silk Route” (Andijan-Tashkent-Nukus- Kungrad-Beineu) securing the exit to countries of CIS and Europe and vital post in the CAREC corridor.

150. In 2010, design and estimate documentation was developed for this terminal. Territory of the border checkpoint of “Daut-ata” is 2 hectares, the frames of the following buildings have been built: entry check points (2 units), box for deep freight vehicle searching, building for inspection and clearance of freight transport vehicles for departure, officer canteen, 4 open-air cages for tasks dogs and 1st floors of administration and on-site facilities.

151. According to preliminary estimation, completion of construction and installation works and commissioning are planned to be held in the second of 2010.

152. Provision to this customs terminal of inspection and examination complex to conduct nonintrusive inspection of road vehicles and bulky cargos will allow for minimum time (3-5 min), without opening and unloading of transportation means, to receive its image and image of transported goods with characteristics allowing identification of transported goods, design parts of transportation vehicle, to detect the items prohibited for transportation, and also to conduct approximate estimation of the number of transported goods. Such time saving benefit of the project is vital considering almost 1,5 bln USD investment for the road A380 that is also aimed to save time and increase speed after improvement.

IKS GROUP OF COMPANIES 42 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 6: FINANCIAL MANAGEMENT ISSUES AND FINANCING PLAN

6.1 FINANCIAL MANAGEMENT ASSESSMENT

6.1.1 Executive Summary

153. It is concluded that the Road Fund currently meets ADB’s minimum financial management requirements for EAs. The Road Fund has satisfactory financial management capability to (i) record required financial transactions and balances, (ii) provide regular and reliable financial statements and monitoring reports, (iii) safeguard the financial assets. A summary of FMA findings is in Table 6.1.

Table 6.1: Summary of the FMA Particulars Conclusions A. Executing Road Fund is a separate entity that is accountable to the Ministry of Finance Agency (MOF) of the Republic of Uzbekistan. Road Fund is well experienced in managing and implementing large scale projects. Currently it is implementing its first project with participation of international financial institutions/multinational development banks: ADB CAREC Regional Road Project approved in 2007 for $75.3 million.

B. Funds Flow Entities’ funds flow arrangements are reliable, predictable and secure. Road Arrangements Fund has enough capability to work under the proposed funds flow arrangements acceptable to ADB. The same funds flow arrangements as in CAREC Regional Road Project will be applied to CAREC Corridor 2 Road Investment Program.

C. Staffing Road Fund is well staffed with experienced financial specialists. Within the Road Fund, a project implementation unit (PIU) has been established to execute Loan 2403-UZB: CAREC Regional Road Project. Due to the anticipated work load under the MFF, the EA has issued an order to create a separate unit to implement the MFF. PMU is headed by current PIU director on temporary basis. EA has already appointed four key staff (procurement, engineering, financial management, and accounting). The PMU team will be assisted by individual consultants for procurement safeguard support. It is worth noting that current PIU has a very frequent staff turnover and neither current PIU specialists nor Road Fund financial staff has undergone trainings and workshops on ADB financial management procedures.

D. Accounting The Road Fund’s accounting policy is based on the Uzbekistan National Policies and Accounting Standards and Financial Reporting Regulations for State Budget Procedures Financed Organizations. Uzbekistan National Accounting Standards are progressively being modernized in accordance with International Accounting Standards. A separate accounting policy and financial management manual for the Regional Road Project PIU was expected to be established in accordance with requirements of ADB and the MOF of Uzbekistan, however, it hasn’t been done yet.

E. Internal Audit There is no internal audit unit within the structure of the Road Fund.

F. External Audit The Road Fund is audited annually by Chamber of Accounts. PIU is audited by independent external auditors on an annual basis in accordance with the International Standards on Auditing (ISA), which complies with the requirements of ADB.

G. Reporting and The Road Fund reports comply with the reporting requirements of the MOF, the Monitoring Ministry of Economy (MOE), the State Tax Committee, and other government bodies. Current PIU reports (Quarterly Progress Reports) have been submitted

IKS GROUP OF COMPANIES 43 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Particulars Conclusions to ADB on timely manner and in accordance with ADB requirements4.

H. Information The Road Fund and PIU operate accounting system “1S Accounting”. Reports Systems are prepared with help of the program and using spreadsheets. 1S Accounting is not costly and not complicated system, which well suits the requirements of the Project, although some reports cannot be automatically generated. Many ADB financed projects in the country are using this system. Source: PPTA consultants

A. Introduction

154. The purpose of the present financial management assessment (FMA) is to study the financial management capacity of the Republican Road Fund under the Ministry of Finance of the Republic of Uzbekistan (Road Fund), the Executing Agency for the implementation of the proposed ADB-financed Road Investment Program. The Road Fund is also the Executing Agency for ADB-financed Regional Road Project; Project Implementation Unit for Regional Road Project will assist and serve as a model for the proposed PMU for CAREC Corridor 2 Road Investment Program.

155. Within the framework of the FMA, the following were undertaken: review of the EAs’ structure and management framework with regards to financial management, assessment of the Road Funds resources, including its personnel, the sources of income, its information technology equipment and software, etc. Consequently, analyses of the EA accounting, reporting, auditing, internal control systems, information systems, and capacity of the personnel were carried out. Additional follow-up interviews, reviews of relevant national legislation and supporting documents were conducted.

156. The FMA is based on ADB’s Financial Management and Analysis of Projects (2005). The instrument used for assessment was ADB’s standard financial management assessment questionnaire (FMAQ), carried out in January 2010 and is in Appendix 5 and since then there was no any major change.

B. Project Description

157. The Investment Program will cover about 222 km of the A380 highway in the Karakalpakstan Republic and in Khorezm and Bukhara provinces. Financing will be provided via the MFF through 3 tranches for the Investment Program. The first project (Project 1) of the Investment Program has already commenced in 2010 and the Loan Agreement had been signed in March 2010. The sections of highway are as follows : (v) Section 1: Km 440–490 (50 km) in Khorezm region. (vi) Section 2: Km 355-440 (85 km) in Bukhara and Khorezm regions. (vii) Section 3: 315-355 (40km) in Bukhara region (viii) Section 4: Km 581-628 (47 km) in Karakalpakistan republic

C. Country Issues

158. The existing practices of financial management and reporting including budget preparation, allocation, accounting, reporting and auditing in Uzbekistan and the Road Fund for the proposed loan, have been summarized in the context of ADB’s loan requirements. Law on Budgetary System5 regulates the budgeting process in Uzbekistan. This law provides

4 ADB Loan 2403-UZB: CAREC Regional Road Project Loan Review Mission (26 November – 2 December 2009) Aide Memoire 5 Law of the Republic of Uzbekistan No. 158-II on Budgetary System dated 14 December 2000 and amended on 23 May 2005

IKS GROUP OF COMPANIES 44 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT the legal basis for preparation, review, approval and execution of the state budget. In the state budget, organizations are entitled to budgetary allocation through the provincial administrations, “state-trust-in funds” and “republican funds”. MOF prepares the draft budget after compiling all the draft budgets and submits it to “Cabinet of Ministers” (COM) for approval by September 15th. COM after reviewing it finally submits the budget to Oliy Majlis6. In case of Projects financed jointly with International Financial Institutions (IFI), PIU is responsible for providing forecasted project budget for the subsequent year to the MOE for approval in May of the current year. Structural chart on budget formulation and approval is presented in Appendix 6.

159. National accounting and financial reporting system rationalization in Uzbekistan started with, “State Program on Transition into International Accounting Standards (IASs)” in 1994. The legal basis of accounting and financial reporting was established by “Law of the Republic of Uzbekistan No. 279-1 on Accounting” dated 30 August 1996. Subsequently, National Accounting Standards (NAS) were formulated, which define the general accounting principles, roles and responsibilities of organizations, accounting practices and procedures, and financial reporting requirements in Uzbekistan.

160. In Uzbekistan in the early 90s, internal control revision departments of the government agencies were dismantled, partly because of ineffective operations of these departments, and partly because of the budgetary restrictions. The institution responsible for internal financial control is the Control and Revision Unit (CRU) of MOF. It is the organization that is closest in concept to Supreme Audit Institution. Control and monitoring on the compliance with budget discipline at republican and provincial levels is the main administrative task of the CRU.

D. Risk Analysis

161. During the implementation phase, the proposed project management unit might face some risks that can generally be divided in two main categories for the purpose of this review: (i) country level; and (ii) organization / project level. Weak public procurement legislation can be attributed as major country specific risk for the project. Moreover, all the contracts with foreign suppliers/consultants financed out of loan funds are subject to approval by the Ministry for Foreign Economic Relations, Investments and Trade of Uzbekistan. Practice shows that receipt of such approval takes long time and substantially affects the progress of works. Such delays may cause changes in contract prices which are valid for a specified period of time.

162. Experience of other externally financed projects in the country reveals that availability of counterpart funds is subject to seasonal or local fluctuations in revenue generation and control of cash flows. Therefore, a risk of counterpart fund releases exists, which can often be late or sometimes not disbursed at all. However, in case of Road Investment Program, it is not expected to face such delays in counterpart funding, since counterpart funds are distributed centrally by the Road Fund and cash contributions are not substantial (the Government will finance taxes, financial charges during construction and small part of contingencies). Nevertheless, written guaranties at MOF and Road Fund level are required to ensure the timely disbursement of funds.

163. Public procurement procedures and practices, legislative and institutional framework, and its control are found to be vulnerable in Uzbekistan. Even after one and a half decades some features of Soviet system of public procurement, which are characterized by absence of competitiveness, transparency and reliability, remain in the republic.

6 Parliament of the Republic of Uzbekistan

IKS GROUP OF COMPANIES 45 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

164. In the country, for ADB-financed projects, in general, foreign consultant is invited for the establishment of procedures and preparation of procurement documentation. On the basis of framework created by foreign expert project implementation units manage further procurement transactions. Furthermore, ADB makes procurement guidelines and manuals available, and regularly conducts training courses and seminars on procurement to the PIU staff, and the Government officials involved in the project implementation. Seminars on Project Implementation and Administration and Use of Consulting Services include trainings on appropriate procurement procedures. As a result, executing and implementing agencies personnel are found to be informed about ADB procurement requirements and guidelines.

Table 6.2

Risk Risk Risk-Mitigation Measures Assessment* Inherent Risk Written guarantees at MOF and Road Fund level are required to ensure the timely disbursement of counterpart funds 1. Country-specific Risks M Proposed institutional and procurement arrangements need to be stipulated in the Loan agreement.

Current PIU will assist newly established PMU in 2. Entity-specific Risks M implementing ADB financed project. Extensive training on ADB procedures shall be carried out. 3. Project-specific Risks N Overall Inherent Risk M Control Risk Organizational capacity augmentation with the 1. Implementing Entity M induction of new staff at the PMU is proposed to support the existing organizational structure Timely availability of counterpart funds will be 2. Funds Flow M ensured by implementing the proposed funds flow arrangements Dedicated accounting and financial management staff at PMU level is required. The minimum qualification required for such personnel are bachelors and masters in commerce and accounting with at least three years of work experience preferably on an externally agency funded project in Uzbekistan. 3. Staffing M Project management consultants shall assist the Road Fund to determine training needs of the new staff. It shall assist them to design and implement the training program especially for ADB financial reporting requirements and their integration into overall national financial reporting requirements as per NAS and other statutes. Accounting Policy should be drafted taking into 4. Accounting Policies and H account the national accounting standards and Procedures the requirements of ADB. Internal commission can be activated for PMU or an internal auditor should be appointed especially 5. Internal Audit N for PMU by the Road Fund, conditioned to the agreement by ADB and Road Fund.

IKS GROUP OF COMPANIES 46 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Risk Risk Risk-Mitigation Measures Assessment* Audit of the project accounts should be done in 6. External Audit M accordance with the International Standards on Auditing, by the Auditor acceptable to ABD. Project management unit will be required to 7. Reporting and Monitoring M report in accordance with ADB requirements with inherent adequate control mechanisms Program 1S-Accouting should be installed at 8. Information Systems M PMU for the project needs Overall Control Risk M * H – High, S – Substantial, M – Moderate, N – Negligible or Low. Source: PPTA consultants

E. Executing Agency and Implementing Entities

165. The Republican Road Fund under MOF is a Government fund, operated under Regulations issued by the President of Uzbekistan. In carrying out its activities, the Fund is accountable to the MOF. Funds’ main purpose, functions, its rights and obligations, and organizational arrangements were approved by the same resolution.

166. The Road Fund was instituted in 2003 by the Decree of the President of Uzbekistan. The purpose of the fund is to accumulate and effectively utilize funds for financing the projects for developing roads networks and their operations and maintenance. Main functions of the Fund consist of followings:

Formulating the annual and quarterly balance of income and expenditures of the Fund. The Road Fund develops and presents to the MOF drafts of the annual income and expenditures statements forecasts. Together with State Taxation Committee and State Customs Committee takes measures to ensure the full and timely receipt of contributions and fees of the Fund.

Together with MOE, MOF and SJSC “Uzavtoyul” approves the list of projects to be included in the state budget.

Verifies the design documentation of road construction and maintenance projects and is involved as a customer of the construction. As a part of this process, organizes competitive biddings and enters into agreement with contractors.

Based on budget, finances the projects and carries out financial and technical control.

167. In the Regulations, there are no restrictions on cooperation of the Road Fund with foreign partners.

168. Supreme management body of the entity is the Fund Management Board, members of which are appointed by the Resolution of the COM. Executive function of the Road Fund prepares the statements on income and expenditures of the Fund, which after approval by the Management Board is presented to the MOF. Fund is headed by executive director appointed by the COM.

169. The organizational structure of the Republican Road Fund is established by President Resolution No PP-299 dd. 09.03.06. described in Figure 6.1

IKS GROUP OF COMPANIES 47 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure6.1 Road Fund Management Board

Executive Director

Deputy Director – Deputy Director – Funds utilization Head of Revenue Head of Highways control department Forecast and Construction, (personnel - 12) Program Financing Reconstruction and Division Maintenance Strategy Implementation Division Legal Consultant (personnel - 1)

Department for Annual and Revenue Forecast Medium-Term Department Road construction (personnel - 7) Program Human Resources Development and Manager Contractors (personnel -1) Selection

Accounting Administrative Department Detailed Design (personnel - 4) Department Review (personnel - 3) Department

Department for Road Technical Construction Supervision of Programs Road Financing Construction, Department Reconstruction (personnel - 6) and Maintenance (personnel - 22) (personnel - 6)

IKS GROUP OF COMPANIES 48 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

F. Funds Flow Arrangements

170. The Road Fund’s income is generated from: (i) obligatory contributions made by local companies and fees paid at the registration of vehicles in local currency; and (ii) fees for entering the territory of Uzbekistan by vehicles from abroad in foreign currency. Rates of the collections and fees are set by the Presidents Resolution annually in December for upcoming year. Comparative data on types of the fees and collections for the last 4 years is provided in Appendix 7.

171. Contributions and fees to the fund are paid by entities monthly based on the estimates presented to the local Taxation administrations. Taxation administration on 1st of every month sends report to Road Fund on accrued and received income and accounts receivable and advances received.

172. During the last years revenue of the Road Fund has been increasing steadily. Information on the income for the last 4 years is provided in Table 6.3 . Table 6.3 Revenue of the Road Fund in million UZS 2010 Type of revenues 2006 2007 2008 2009 Forecast Compulsory contributions 237 302 336 480 636 Registration 16 25 42 28 78 Transit 14 19 16 12 12 Other 4 91422 ADB loan proceeds 0 0 0 0 14 Balance carried forward 79 23 83 36 51 Total Revenue 349 378 491 557 793 Annual increase 8% 30% 14% 42%

Source: The Road Fund 173. Funds expenditures are allocated through the following entities:

a. The Road Fund for design, construction and repairs of the roads of international importance

b. Single Customer Service of regional administrations for design, construction and repairs of the roads of local importance

c. SJSC “Uzavtoyul” for O&M and current repairs of the roads and for purchasing of the necessary equipment

174. At Road Fund all budgets are made based on allocated budget and forecasted income; and the information received from the Road Fund suggests that actual results of received income usually exceed the forecasts.

175. Taking into account the fund flow arrangement of CAREC Regional Road Project, the lessons learned from externally financed projects being implemented in Uzbekistan and consultations with Road Fund representatives appropriate funds flow arrangements for the Road Development Component and Equipment Procurement of Road Investment Program have been identified and given in Table 6.4.

IKS GROUP OF COMPANIES 49 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 6.4: Fund Flow of Road Development Component

ADB Ministry of Finance

Direct payment

Counterpart funds - Contractors Road Fund - National/Foreign Consultant PMU

Flow of funds Lending / Onlending Loan Repayment

176. For large scale contracts, payments are released directly by ADB. Whereas counterpart financing schedule is annually approved by the resolution of the COM. Based on this, Road Fund transfers counterpart funds to the accounts of contractors, suppliers and local consultants.

177. Imprest account had been established for the PMU for small expenses including PMU expenses.

178. During the implementation of previous projects, PMUs came across delays in counterpart funding in settlement of payment requests of the contractors and suppliers tendered at the local level. This is related to: (i) inappropriate practices of PMU in sending the request for funds to the MOF; (ii) unavailability of cash contributed at local levels, which came as a result of failure in assessment of the financial condition of local beneficiaries during the project preparation. However, as it was mentioned before government cash contributions under Road Investment Program are not substantial.

179. The MOF is experienced in managing foreign exchange risks. In case of Road Investment Program the Road Fund will transfer the loan repayment amount equivalent in Uzbek Sums to MOF and MOF will convert these funds on local Foreign Currency Exchange market of Uzbekistan into US Dollars.

G. Staffing

180. Road Fund had established PMU which is fully staffed as was envisaged under Project 1 for the Road Investment Program and the same team will implement the Project 2 and 3.

181. Project accounting and finance staff is expected to be trained in ADB procedures.

182. Usually, it is practiced to contract the PMU personnel for the duration of one year, which is prolonged for the subsequent year if the satisfactory performance of the staff is confirmed.

183. Preliminary organizational of the proposed project management unit is as follows:

IKS GROUP OF COMPANIES 50 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

HEAD OF PMU OF THE ROAD FUND

Road Procurement Engineer Specialist

Financial Monitoring Management Specialist Specialist

Accountant Legal Specialist

Translator/ Secretary/ Driver Interpreter Administrator

H. Accounting Policies and Procedures

184. Accounting System, Policies and Procedures. The Road Fund use accrual method of accounting in their regular and project operations, while PMU uses cash method of accounting. The accounting system of the Fund, as well as of all state and private legal entities in Uzbekistan, is based on the NAS, which has been developed based on IAS and the national accounting guidelines of the MOF. As it is practiced in other ADB financed projects, PMU and PIU shall develop project accounting manual in accordance with ADB and MOF requirements. The manual shall be updated annually to include project accounting policy changes issued by the MOF. The PMU shall follow the procedures stipulated in ADB’s Financial Management and Analysis for Projects (2005). Chart of accounts based on NAS 217 will be applied by the PMU, which is given in Appendix 8.

185. All reports and supporting documents on all transactions will be stored and retained by the project accountant until documents are inspected by state controlling agencies (Tax Inspection, MOF, Chamber of Accounts), after which documents are kept in archive.

186. Clear segregation of duties shall be implemented at PMU, and job descriptions should provide for that. The project manager is authorized to execute the project transactions. The project financial expert/accountant handles recording of the transactions. Depending on circumstances project accountant or office manager should bear the responsibility for the custody of assets per transaction. Payments are approved and made by project manager and accountant. In order to increase the transparency, practicing double checking system (i.e. requiring the documents to be signed by two persons) for bank reconciliations is found to

7 Decree of the MOF on Approval of the National Accounting Standard of the RU (NAS 21)

IKS GROUP OF COMPANIES 51 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT be the best alternative, since the number of PMU/PIU accounting personnel is limited in the case of non-revenue earning projects.

187. Budgeting System. The Road Funds and PMUs’ budgeting systems will be separate; also budget of the latter will be included in consolidated budget of the Road Fund. Budgeting procedures for public institutions is described above in part C. The project budgets will be prepared annually by the financial specialist in consultation with PMU head. PMU develops detailed budget that set annual physical and financial targets. The budget is to be presented to ADB, the Road Fund, MOE, which after approval, is submitted to MOF for final approval.

188. During the budget execution, actual expenditures are compared with planned expenditures on a monthly and quarterly basis, and report on analysis of variations is prepared. Significant variations need to be approved prior to the ascertainment of the fact. Project financial specialist and Monitoring Specialist will be responsible for budgeting, monitoring and controlling the execution of the budget.

189. Payments. All project payments are made with payrolls through bank transfer. In accordance with national accounting procedures, payroll shall be stamped (PAID) and assigned an accounting code. Payrolls prepared by the accountant are checked by the project manager.

190. Cash and Bank. PMU head and the project accountant shall be duly authorized signatories to all project-bank transactions. Cash is deposited to the project accounts leaving minimal amounts necessary for the office operations. For the proposed project, it is recommended to install accounting software “1S Accounting”, which allows to maintain the cashbook in the electronic system. Bank reconciliation is undertaken at the end of each month or at any time as, if necessary.

191. Safeguard over Assets. The Road Fund and PMU shall assure that sufficient controls are undertaken over project assets, and safeguards are undertaken to protect assets from fraud, waste and abuse. Annual physical inventory of all stocks and materials must be carried out as per the requirements of NAS. Fixed assets inventory is required every two years. Stock-taking is also practiced when chief accountant or office manager is replaced. Completed roads and road equipment are transferred to UzAvtoyul and Road Equipment Pool Company, respectively.

I. Internal Audit

192. As it is mentioned above, there is no internal audit unit in any government ministry or entity in Uzbekistan. Road Fund also does not have a department for conducting internal audit of either Funds or project operations in the future.

193. Control Revision Unit8 (CRU) of the MOF is the equivalent form of Supreme Audit Institution, which carries out internal audit of State entities once in a two-year period. CRU is mainly concerned with inspecting the compliance of the entities with budget rules and regulations. However, CRU does not conduct value-for-money analysis and department is not involved in identifying the gaps in internal control systems and strengthening them, which are the essential features of modern internal audit.

8 Discussed in more detail in Uzbekistan: Country Diagnostic Studies Review

IKS GROUP OF COMPANIES 52 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

J. External Audit

194. State agencies are not required to undergo external auditing, but the Road Fund is annually audited by the Chamber of Accounts of Uzbekistan. The PMU created under Road Fund will be subject to annual external audit. In other ADB financed projects, external auditors are selected based on competitive bidding process in accordance with ADB requirements9. For the Road Investment Program, external auditor shall be required to apply international standards on auditing. EA expects Terms of Reference (TOR) for auditing services to be prepared by the financial specialist of the PMU to be created at beginning of project implementation. The project is subject to central Government audit by MOF only at project completion, unless any major accountability issue is raised that would warrant it sooner.

195. PMU shall (i) maintain separate accounts for the Project, and (ii) have such accounts and related financial statements audited annually by independent auditors acceptable to ADB and in accordance with the provisions of the Loan Agreement to be signed and as specified in the ADB guidelines.

196. The SOE records will also be audited as part of the annual audit. PMU will submit to ADB certified copies of such audited accounts and financial statements, and the related reports of auditors, within 6 months of the close of every financial year.

K. Financial Reporting and Monitoring

197. Road Fund financial reporting follows the NAS procedures and requirements. The project financial statements should be prepared using a computerized accounting system and in spreadsheets and submitted to MOF, MOE and ADB on monthly, quarterly and annual basis. The quarterly project progress reports to be prepared following ADB formats highlight the physical accomplishments and financial progress. Spreadsheet analysis and reports are prepared to adapt to special and supplementary reporting requirements.

198. Types of the reports required by the ADB will be provided to the PMU together with ADB instructions and policies. List of the reports required by ADB, their frequency, due submitting dates are summarized in table 4 below. Table 6.5 Summary of Required Financial Reports to be submitted by PMU

Report Frequency Basis Duration Due date Every 6 months Project after expenditures Semiannual Annual Term of project commencement of forecast loan project Operation plan Annual Annual 12 months January 10 QP-01 Annual Quarterly 12 months January 10 Monthly, Monthly, Monthly, Project Quarterly, Quarterly, Quarterly, or Monthly expenditures report or Annually Annually Annually Audited annual June 30 of the Annual Annual Annual financial statements subsequent year Source: summary of ADB guidelines and instructions

9 There are more than 500 registered auditing firms in the country, including such multinationals as PWC, E&Y, Deloitte & Touche

IKS GROUP OF COMPANIES 53 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

L. Information Systems

199. The Road Fund and PMU operates accounting program 1S Accounting; however the system does not have all features of the contemporary management information system. For the PMU under Road Fund, it is proposed to make use of the same program, which has enough capacity to meet the requirements of the project. The system enables the PMU to (i) respond to operational and project-related queries pertaining to specific accounts, and (ii) prepare financial reports on the transactions that occurred in the reporting period. The accounting system is capable of generating financial reports for both external and internal use. For some types of reports, PMUs will make use of spreadsheets.

M. Conclusions

200. Overall, the FMA rated the Road Fund as an EA, and its financial management, reporting and monitoring systems satisfactory. Road Fund shall ensure the project unit to be adequately staffed with efficient and experienced personnel. Newly created PMU should pay special attention to train the project staff in procedural and reporting requirements of ADB. The Road Fund welcomes further training to enhance the staff professional capacity.

201. Accounting and financial reporting practices of the Road Fund are found to be reliable. Accounting policy of the PMU is to be established following both national and ADB regulations, which are not contradictory. Since in the case of non-revenue earning projects number of accounting and financial personnel is limited, reliability of the accounting documentation will be ensured by the current system of authentication that requires double signatures (i.e. signing by two persons) for the most of the accounting documents. As it is practiced with other PIUs operating in the country, Road Investment Program’s financial reporting will be computerized, and it will not necessitate any changes in Road Fund financial reporting system.

N. Financial and Other Covenants and Recommendations (i) Road Fund and MOF should ensure timely availability of counterpart funding as per project financing plan. (ii) Annual external audit of the project accounts should be done in accordance with the International Standards on Auditing, by the Auditor acceptable to ADB. (iii) An internal auditor should be appointed especially for PMU by the Road Fund for conducting internal audit of project funds and project operations. (iv) ADB training on Financial Management Procedures shall be conducted for PMU, PIU and Road Fund finance staff. (v) PMU financial management specialist, with assistance of PIU financial management specialist, shall develop project financial management and accounting manual in accordance with ADB and MOF requirements. Taking into account frequent personnel turnover in other PIUs, such manual will serve as guide for the new personnel. (vi) Program 1S-Accouting should be installed at PMU for the project needs. Since this program is not costly it can be financed out of contingencies allocated for PMU. PMU finance staff shall be trained to use this software. (vii) The Government shall ensure expedient review and approval of the contracts with foreign suppliers/consultants by the Ministry for Foreign Economic Relations, Investments and Trade of Uzbekistan within the deadlines set by the legislation. Expedient approval of the contracts with foreign suppliers/consultants will help to avoid delays in project implementation and change of contract prices (price

IKS GROUP OF COMPANIES 54 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

quotations are usually valid during a specified period of time and subject to change after such period). O. Financing Plan

202. The financing plan is shown below. The proposed ADB financing of $600 million which represents 81% of the total project cost was agreed in the FFA signed in March 2010 and will finance the direct and indirect foreign exchange cost. The Government will finance taxes, interest and other charges during construction and part of contingencies.

203. ADB will provide a loan of $600 million from ADB’s ADF and ordinary capital resources to help finance the civil works for the Project, equipment, and consulting services. ADF loan will have a term of 32 years including a grace period of 8 years, with an interest charged at the rate of 1.0% per annum during the grace period and 1.5% per annum thereafter. OCR loan will have a 24-year term, including a grace period of 4 years, an interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, and a commitment charge of 0.15% of the Loan per annum. Interest during construction and commitment charges for Tranche 2 (OCR loan) will be financed by ADB and capitalized into loan amount. The Government has provided ADB with (i) the reasons for its decision to borrow under ADF and ADB’s LIBOR-based lending facility; and (ii) an undertaking that these choices were its own independent decision, and not made in reliance on any communication or advice from ADB.

204. The Government will assume the foreign exchange risk.

Table 6.6 Investment Program Cost (mln US$) Tranche Total Item 1 (ADF) 2 (OCR) 3 (ADF) Cost Road Development Component Land Acquisition and Resettlement 0 0.2 1.6 1.8 Civil Works 91.6 176.2 197.8 465.6 Consulting Services Procurement and Safeguard Support 0.4 0.4 0.4 1.2 Construction Supervision 2.5 3.5 3.5 9.5 Project Appraisal for Tranche 3 0.4 0 0 0.4 Detailed Design 4.5 0 0 4.5 Transport Logistics Component Cross-border facility 0 0 5 5 Road Sustainability Component Equipment 0 15 0 15 Road Asset Management Support 1.8 0 1.2 3 Community Development 0.2 0 0.2 0.4 Recurrent costs 0.5 0.5 0.5 1.5 Taxes and duties 22.1 40.6 45.5 108.2 Total Base Cost 124 236.4 255.7 616.1 Physical and price contingencies 19.9 38.7 42.8 101.4 Financing charges during implementation 2.1 14 4.5 20.6 Total 146 289.1 303 738.1

IKS GROUP OF COMPANIES 55 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 6.7 Summary Financing Plan of the Investment Program (mln US$) ADB MFF Financier Total Tranche 1 Tranche 2 Tranche 3

Asian Development Bank 115 240 245 600 Government 31 49.1 58 138.1 Total 146 289.1 303 738.1

Table 6.8 Detailed Cost Estimates by Financier—Project 2($ million) ª Item ADB Government Total Road Development Land Acquisition and Resettlement 0.0 0.2 0.2 Civil Works 176.2 0.0 176.2 Consulting Services Procurement and Safeguard Support 0.4 0.0 0.4 Construction Supervision 3.5 0.0 3.5 Road Sustainability Equipment 15.0 0.0 15.0 Recurrent costs b 0.5 0.0 0.5 Taxes and duties 0 40.6 40.6 Total Base Cost 195.6 40.8 236.4 Physical and price contingencies c 30.4 8.3 38.7 Financing charges during implementation d 14.0 0.0 14.0 Total 240 49.1 289.1 a In mid-2009 prices. b Program Management Unit (PMU) expenses related to the Investment Program including: PMU staff salary, operational expenses, travel, training, and other eligible expenditures; excluding single social payment. c Physical is estimated at about 10% of the total base cost. Price contingencies estimated at about 5% include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges assuming tranche 2 is funded by OCR. Source: Estimate of Consultants

Table 6.9 Detailed Cost Estimates by Financier—Project 3 ($ million)ª Item ADB Government Total Road Development Land Acquisition and Resettlement 0.0 1.6 1.6 Civil Works 197.8 0.0 197.8 Consulting Services Procurement and Safeguard Support 0.4 0.0 0.4 Construction Supervision 3.5 0.0 3.5 Road Sustainability Equipment 5.0 0.0 5.0 Road Asset Management Support 1.2 0.0 1.2 Community Development 0.2 0.0 0.2 Recurrent costs b 0.5 0.0 0.5 Taxes and duties 0 45.5 45.5 Total Base Cost 208.6 47.1 255.8 Physical and price contingencies c 36.5 6.3 42.8 Financing charges during implementation d 0.0 4.5 4.5 Total 245.1 57.9 303 a In mid-2009 prices. b Program Management Unit (PMU) expenses related to the Investment Program including: PMU staff salary, operational expenses, travel, training, and other eligible expenditures; excluding single social payment. c Physical is estimated at about 10% of the total base cost. Price contingencies estimated at about 5% include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges assuming tranche 3 is funded by ADF. Source: Estimate of Consultants

IKS GROUP OF COMPANIES 56 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECCTION 7: PRELIMINARY PROJECT IMPLEMENTATION ARRANGEMENTS 7.1 The Executing Agency

205. The Republican Road Fund (the Road Fund) will be the executing agency (EA) for the Project. Program Management Unit (PMU) under the Road Fund was already established and former head of PIU for the loan 2403-UZB was assigned as head of PMU for newly established PMU. The Road Fund hired all necessary staff for PMU that was envisaged under Project 1 and the PMU is adequately staffed with qualified engineering, financial, administrative, and secretarial staff, and equipped with the necessary office space, equipment, and facilities.

7.2 Program Management Unit (PMU)

206. Head of PMU is responsible for implementation of the (i) Road Development Component, (ii) Advisory Support for Road Sustainability component and (iii) and procurement of Inspection-screening equipment under the transport logistics component. On item one the Head of PMU will directly supervise the Construction supervision consultants, on item two PMU will coordinate the work with contact officers of relevant departments of the Road Fund and on item three the work will be coordinated with the responsible department of state customs committee of Uzbekistan.

207. PMU established in the central office of the Republican Road Fund under the Ministry of finance as structural unit to implement the project. PMU is separate legal entity with its bank account and assisting EA in implementing the project to ensure Project completion successfully.

208. The proposed project implementation arrangements for Project 2 and 3 are in Appendix 9.

7.3 Main responsibilities of PMU

209. The main responsibilities of the PMU on implementing the Project are;

Planning the Project; Coordination of the Project – team up all the participants of the Project, (Government, Executing Agency, Implementing agency, Bank, Consultants, Suppliers and Construction companies) into one distinctly functioning unit; Staffing and planning of the Project – Hiring and training the appropriate staff; Project implementation – Management of all aspects of Project activities and implementation; Control on the management of the Project – application of control system on cost, schedules, technical quality of the work and reporting procedure as well as submitting the reports to the Bank on the activities in accordance with requirements of Loan and Project agreements and Bank’s rules; Management of procurement – ensure that all the requirements on inspection and testing indicated in various contracts are met; Communication with the Project – setting up the procedure of interaction and cooperation with other organizations and parties involved in the Project as well as with the Government departments of the Borrower; Regulating the conflict – resolution of disputes between the participants of the Project in accordance with the agreements and contracts; Management of changes – control on changes and functioning of the progress of the Project;

IKS GROUP OF COMPANIES 57 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Financial management of the Project – allocation of funds, cost control, support of effective system of accounting, preparation of financial reports for the Bank in accordance with Loan and Project agreement; Compliance with the covenants of Loan and Project agreement; Transferring and acceptance of the project – preparation of procedures and recourses for transferring it after its completion.

7.4 Consulting Services

210. All consultants will be selected in accordance with ADB’s Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers (2007 as amended from time to time) and the procurement plans for the projects.

211. The terms of reference for all consulting services shall be finalized in Final Report.

212. An estimated 402 person-months under Project 2 and 458 person-months under Project 3 of international and national of consulting services are required as detailed in the following:

Procurement and Safeguard Support Services (Project 2 and 3) - Individual consultants will be recruited for each project to help the PMU conduct procurement actions and advise the EA on implementation and monitoring of environment and social safeguard actions. A total of 10 person-months of international consultant inputs and 12 person-months of national consultants will be required intermittently over 24 months.

Construction Supervision (Project 2 and 3) - Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality: cost ratio of 80:20. Consulting services are expected to take place over 24 months (actual duration of service shall be in line with civil works schedule). The Consultant team will administer the construction contracts and ensure that the contractual clauses for both quality and specifications of work are complied with, and the works are constructed in accordance with the provisions of the construction contracts.

Road Asset Management Support (Project 3) - Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a quality:cost ratio of 80:20. The consultation service will be carried out over an 18-month period to help address concerns related to the financing of road works, to the way road information and data are collected, stored and processed, and to the approach by which maintenance options are identified and selected.

Community Development Program (Project 3) - An individual consultant or consultants will be recruited for 6 months on intermittent basis to facilitate the implementation of the community and gender action plan (CGAP) and address the identified needs of (i) capacity building on social and gender issues at Road Fund (ii) development of social infrastructure and business skills in Karakalpakistan; The consultant or consultants shall ensure the successful and timely implementation of the Gender Action Plan and prepare regular progress reports submitted to ADB and PMU in an agreed format.

7.5 Advance Contracting and Retroactive Financing

213. The Government may request (i) advance action for procuring civil works and goods, and (ii) retroactive financing of up to 20% of the loan amount provided that expenditures are in accordance with agreed procedures and were incurred during the 12 months before the signing of the Loan Agreements both for Project 2 and 3. The EA realizes that approval of the advanced contracting and retroactive financing does not commit ADB to provide

IKS GROUP OF COMPANIES 58 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT financing through the MFF. Draft periodic Financing Requests for Tranche 2 and 3 is attached in Appendix 10.

7.6 Implementation Period

214. The Program will be implemented over 5 years inclusive of procurement and construction activities and is expected to be completed by 31 June 2015 whereas physical construction of works shall be completed by the end of 2014. The implementation schedule for Projects 2 and 3 is in Appendix 11.

IKS GROUP OF COMPANIES 59 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 8: PROCUREMENT PLAN FOR PROJECTS 2 AND 3

215. Procurement of goods, civil works, and related services financed from the ADB loans will be done in accordance with ADB’s Procurement Guidelines (January 2007, as amended from time to time) and the procurement plans for the projects. The procurement plan for Project 2 and 3 is in Appendix 12. To ensure competitive bidding, international competitive bidding (ICB) contract packages will be adopted. ICB will be used for civil works over $3 million and goods over $1 million. National competitive bidding (NCB) for civil works could be conducted for contracts not exceeding $3 million. Civil works contracts will be procured through ICB using post-qualification. The EA is familiar with the ADB' Procurement Guidelines, has conducted both pre- and post-qualification following ADB's guidelines under Loan 2403. ADB’s prior review procedures will be followed. The Road Fund agreed to include the relevant sections of ADB’s Anticorruption Policy (1998) in all bidding and contractual documents.

216. Project 2 will only involve one ICB package for civil works and Project 3 will involve two ICB contracts. Should there be a need for NCB procurement, ADB and the Road Fund will review the Government’s procurement procedures to ensure consistency with ADB requirements before commencement of NCB procurement. Any necessary modifications or clarifications to the Government’s procedures will be reflected in the procurement plan.

IKS GROUP OF COMPANIES 60 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

SECTION 9: PROJECT DESIGN AND MONITORING FRAMEWORK DESIGN AND MONITORING FRAMEWORK Table 9.1 Data Design Assumptions Performance Targets/Indicators Sources/Reporting Summary and Risks Mechanisms Impact By 2020: Assumption

Sustainable Increased gross domestic product Statistical Review of Government sustains economic in Khorezm from about $800 million Uzbekistan policies conducive to development (2008 estimate) to $1.6 billion, economic growth and Bukhara from $1.3 billion (2008 remains committed to estimate) to $2.7 billion, and enhanced policy Karakalpakstan from $635 million reforms and regional (2008 estimate) to $1.3 billion integration

Increased external trade with Kazakhstan from about $900 million (2008) to $1.6 billion

Outcome By 2016: Assumptions

Better connectivity Increased average total traffic Statistical Review of Increased availability and an efficient volume from 5000 vpd in 2009 Uzbekistan and quality of transport system to 6000 vpd transport services along Uzbekistan following section of CAREC improvement of the Increased cross-border traffic Corridor 2 Road at Daudata Border Post from ADB’s project Investment Program 25 trucks/day (2008) to 50 completion report roads trucks/day and project performance Improved cross- evaluation report Reduced travel time from border procedures at Dautata to Bukhara from 10 to the border point 7 hours between Uzbekistan Periodic classified and Kazakhstan Reduced cross-border time traffic counts and from 2 hours to 20 minutes per accident data The Road Fund truck system continues constructing the Accident rate on A380 reduced remaining sections of from 150 accidents per year the A-380 as (2008 estimate) to 75 accidents scheduled at the same quality as the Road beneficiaries: 4.5 million Investment Program population; 5,000 women Risk

Inadequate financial resources for road maintenance

Outputs By 2015: Assumptions

1. Uzbekistan 222 km road sections Consultants’ Timely provision of section of CAREC constructed with pavement progress reports counterpart resources Corridor 2 road international roughness index and support for the constructed of less than 4m/km ADB review MFF missions Contractors procured through ICB perform in accordance with the contract provisions

2. Cross-border Scanner with the scanning facility operational capacity of 15-20 minutes per truck installed

IKS GROUP OF COMPANIES 61 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Data Design Assumptions Performance Targets/Indicators Sources/Reporting Summary and Risks Mechanisms

3. Road sector Sector-wide Assumptions sustainability The independent quality control strategy and plans for road works is improved Government is adopted by the Public private partnership committed to further Road Fund framework in place reform the road sector Pilot on CAREC Corridor 2 Road Section Road Fund is Road asset management committed to system implemented for continue improving its programming planning capacity Improved routine maintenance contract piloted Community and gender sensitive capacity building on highway utilization of communities planned and initiated.

1 set of road equipment purchased

Activities with Key Milestones Inputs

Tranche 1: 1. ADB MFF not 1.0 Road Development Component exceeding $600 1.1 Recruitment of construction supervision consultants by September 2010 million comprising 1.2 Award civil works contracts by September 2010 $360 million ADF 1.3 Completion of civil works by March 2012 and $240 OCR 1.4 Due-diligence for Tranche 3 completed by June 2011 2. Government 2.0 Road Sustainability Component counterpart budget 2.1 Recruitment of consultants by 1 January 2011 of $138 million 2.2 Consulting services for completed by 31 September 2012

Tranche 2: 1.1 Award civil works and procurement of goods contracts by July 2011 1.2 Completion of civil works and procurement of goods by 31 December 2014

Tranche 3: 1.1 Award civil works and procurement of goods contracts by April 2012 1.2 Completion of civil works and procurement of goods by 31 December 2014 1.3. Recruitment of consultants by 1 July 2012 1.4. Consulting services for completed by 31 December 2014

ADB = Asian Development Bank, ADF = Asian Development Fund, ICB = international competitive bidding, km = kilometer, OCR = ordinary capital resources, MFF = multitranche financing facility, UZB = Uzbekistan, vpd = vehicles per day.

IKS GROUP OF COMPANIES 62 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

DESIGN AND MONITORING FRAMEWORK FOR PROJECT 2 Table 9.2 Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms Impact By 2020: Assumption

Sustainable economic Increased gross domestic Statistical Review of Government sustains development product in Khorezm from Uzbekistan policies conducive to about $800 million (2008 economic growth and estimate) to $1.6 billion and remains committed to in Bukhara from about $1.3 enhanced policy billion (2008 estimate) to $2.7 reforms and regional billion integration Increased external trade with Kazakhstan from about $900 million (2008) to $1.6 billion

Outcome By 2015: Assumptions

Better connectivity Increased average total Statistical Review of Increased availability and an efficient traffic volume from Uzbekistan and quality of transport transport system 5000 vpd in 2009 to services following along Uzbekistan 6000 vpd improvement of the section of CAREC Investment Program Corridor 2 Road Accident rate on A380 ADB’s project roads reduced from 150 completion report accidents per year (2008 and project Improved cross-border estimate) to 120 performance facilities and evaluation report procedures at the Reduced travel time from border point between Dautata to Bukhara from Uzbekistan and 10 to 9 hours Periodic classified Kazakhstan traffic counts and Road beneficiaries: 1.5 accident data The Road Fund population system continues constructing the remaining sections of the A-380 as scheduled at the same quality as the Investment Program

Risk

Inadequate financial resources for road maintenance

Outputs By 2013: Assumptions

1. Uzbekistan section 85 km road sections Consultants reports Timely provision of of CAREC Corridor 2 constructed with counterpart resources road constructed pavement international and support for Project roughness index of less 2 than 4m/km Contractor procured through ICB perform in accordance with the contract provisions

IKS GROUP OF COMPANIES 63 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms 2. Road sector Sector-wide Assumptions sustainability strategy Access for private road Government is and plans adopted by constructing companies to committed to further the Road Fund high value road reform the road sector construction equipment Road Equipment Pool Company is committed to continue improving its planning capacity Activities with Key Milestones Inputs

1.0 Road Development Component 1. OCR loan of $240 1.1 Recruitment of construction supervision consultants by July 2011 million 1.2 Award civil works and procurement of goods contracts by July 2011 2. Government 1.3 Completion of civil works and procurement of goods by 31 December 2014 counterpart budget of 2.0 Road Sustainability Component $49.1 million 2.1 Recruitment of consultants by 1 January 2011 2.2 Consulting services completed by 31 September 2012 2.3 Award procurement of goods contracts by 31 May 2011

IKS GROUP OF COMPANIES 64 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

DESIGN AND MONITORING FRAMEWORK FOR PROJECT 3 Table 9.3 Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms Impact By 2020: Assumption

Sustainable economic Increased gross domestic Statistical Review of Government sustains development product in Karakalpakstan Uzbekistan policies conducive to from $635 million (2008 economic growth and estimate) to $1.3 billion remains committed to enhanced policy Increased external trade with reforms and regional Kazakhstan from about $900 integration million (2008) to $1.6 billion

Outcome By 2016: Assumptions

Better connectivity Increased average total Statistical Review of Increased availability and an efficient traffic volume from Uzbekistan and quality of transport transport system 5000 vpd in 2009 to services following along Uzbekistan 6000 vpd improvement of the section of CAREC Investment Program Corridor 2 Road Increased cross-border ADB’s project roads traffic at Daudata Border completion report Post from 25 trucks/day and project Improved cross-border (2008) to 50 trucks/day performance procedures at the evaluation report border point between Reduced travel time from Uzbekistan and Dautata to Bukhara from Kazakhstan 10 to 7 hours Periodic classified traffic counts and The Road Fund Reduced cross-border accident data continues constructing time from 2 hours to 20 system the remaining sections minutes per truck of the A-380 as scheduled at the same Accident rate on A380 quality as the reduced from Investment Program 150 accidents per year (2008 estimate) to 75 Risk accidents Inadequate financial resources for road maintenance

Outputs By 2014: Assumptions

1. Uzbekistan section 87 km road sections Consultants’ Timely provision of of CAREC Corridor 2 constructed with progress reports counterpart resources road constructed pavement international and support for the MFF roughness index of less ADB review Contractors procured than 4m/km missions through ICB perform in accordance with the contract provisions

IKS GROUP OF COMPANIES 65 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Data Design Performance Assumptions Sources/Reporting Summary Targets/Indicators and Risks Mechanisms 2. Road sector Scanner with the scanning State Customs sustainability strategy capacity of 15-20 minutes Committee shall and plans adopted by per truck installed complete the the Road Fund Sector-wide construction if the Daut- The independent quality Ata customs post on control for road works is time improved Public private partnership framework in place

Pilot on CAREC Corridor 2 Road Section Road asset management system implemented for programming Improved routine maintenance contract piloted Community and gender sensitive capacity building on highway utilization of communities planned and initiated.

Activities with Key Milestones Inputs

1.0 Road Development Component 1. ADF loan of $245 1.1 Award civil works contracts by April 2012 million 1.2 Completion of civil works and procurement of goods by 31 December 2014 2. Government 1.3. Consulting services completed by 31 December 2014 counterpart budget of 2.0 Road Sustainability Component $58 million 2.1 Award procurement of goods contracts by April 2012 2.1 Recruitment of consultants by 1 July 2012 2.2 Consulting services completed by 31 September 2012 ADB = Asian Development Bank, ADF = Asian Development Fund, ICB = international competitive bidding, km = kilometer, OCR = ordinary capital resources, MFF = multitranche financing facility, UZB = Uzbekistan, vpd = vehicles per day

IKS GROUP OF COMPANIES 66 TASHKENT,SEPTEMBER 2010 Appendixes Appendix 1

OVERALL ROAD INVESTMENT PLAN (CONSTRUCTION AND RECONSTRUCTION) TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

OVERALL ROAD INVESTMENT PLAN (CONSTRUCTION AND RECONSTRUCTION)

Road Length Total Costs Under Number Road Section Kilometers (km) Type (km) ($ million) construction Planned Funding I A-380 Guzar–Bukhara 965 1,486.36 1228–265 CC 37 66.6 2010–2011 Road Fund 2 Package 1 876–916 AC4013.8112010 ADB/Road Fund 3 Package 2 490–520 CC 30 41.472 2010–2011 ADB/Road Fund 4 Package 3 520–553 CC 33 51.605 2010–2011 ADB/Road Fund 5 Package 4 553–581 CC 28 41.87 2010–2011 ADB/Road Fund 6 Tranche 1, Package 1 440–490 CC 50 110 2010–2011 ADB/Road Fund 7 Tranche 2, Package 2 355–440 CC 85 187 2011–2012 ADB/Road Fund 8 Tranche 3, Package 3 315–355 CC 40 88 2011–2012 ADB/Road Fund 9 Tranche 3, Package 4 581–628 CC 47 103 2011–2013 ADB/Road Fund 10 265–315 CC 58 108.5 2013– 2014 Foreign investment 11 814–866 AC 52 88.4 2010–2011 Foreign investment 12 785–816, 772–776, AC 57 96.9 2010–2012 Foreign investment 743–765 13 686–743 AC 57 96.9 2012–2013 Foreign investment 14 628–686 AC 58 98.6 2013–2014 Foreign investment 15 916–1,204 AC 288 281.6 2010–2014 Foreign investment 16 Bukhara city ring road AC 5 12.1 2010 Road Fund

II Gulistan–Akhangaran 116 182.8 124–0 AC 24 35.6 2009 Road Fund 224–116 AC 92 147.2 2011 Road Fund III A-373 Tashkent–Osh 117 185.5 1208–274 AC 27 14.0 2013–2014 Foreign investment 2383–408 AC 25 35.0 2013–2014 Foreign investment 3108–118, 156–173 CC 27 56.7 2012–2013 Foreign investment 4118–156 CC 38 79.8 2013–2014 Foreign investment IV M-37 Samarkand–Ashgabat–Turkmenbashi 15 25.5 1331–336 AC 5 8.5 2009 Road Fund 2336–346 AC 10 17 2010 Road Fund

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Road Length Total Costs Under Number Road Section Kilometers (km) Type (km) ($ million) construction Planned Funding V M-39 Almaty–Bishkek– 195 351 Tashkent–Termez 1 1,310–1,340 AC 30 54 2010–2011 Foreign investment 2 1,275 1,310 AC 35 63 2010–2012 Foreign investment 3 1,255–1,275 AC 20 36 2010–2013 Foreign investment 4 1,240–1,255 AC 15 27 2010–2014 Foreign investment 5 1,340–1,410 AC 70 126 2010–2011 Road Fund 6 1,426–1,451 AC 25 45 2010–2012 Road Fund

VI A-378 Samarkand– 79 126 Karshi 16–85 AC 79 126 2011 Road Fund

VII 4P87 Guzar–Kukdala– 73 124.1 Chico 173–53 AC 20 34 2010 Road Fund 253–0 AC 53 90.1 2011 Road Fund

VllI Bridge construction: 98.6 1 Amudarya (Khorezm) 98.6 2013 Road Fund L681 m Total 1,560 2,579.86

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 Appendix 2

TRAFFIC COUNT AND OD ANALYSIS METHODOLOGY TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

TA 7375-UZB: CAREC CORRIDOR 2 ROAD INVESTMENT PROGRAM, Uzbekistan, Origin-destination survey Instructions to Counters

1.GENERAL INSTRUCTIONS

All counting staff should familiarise themselves with these instructions. If anything requires further clarification before or during the counting, do not hesitate to ask immediately your post supervisor who should be able to assist you.

Origin-Destination survey sites will be surveyed for 1 day outside exceptional events that could affect the traffic in the survey area.

The surveys and the counts will last for 10 hours (from 8:00 to 18:00). Counting will be performed in both directions and interviews only in one direction.

The following persons will be present at the survey location: A post supervisor responsible for the survey Police forces (to ensure safety and drivers cooperation) Counters (counting all vehicles on the road) 4 Interviewers

Shifts will be organised for the surveyors, counters and police forces.

You should have with you: A pen, A sufficient number of counting sheets, A clip board, These instructions.

2. SURVEY PROCEEDINGS

Vehicles on the road should be counted and classified according to the following list (see Annex A):

Z Passenger cars (included 4 wheels drive vehicles), Z Minibuses, Z Buses, Z Trucks up to 3.5 tons, Z Trucks 3.5–12 tons, Z Trucks greater than 12 tons, Z Articulated trucks, Z 2 wheelers, Z Agricultural vehicles Some vehicles will not be counted nor interviewed. These are:

Z Military vehicles Z Emergency vehicles (ambulances, fire engines, etc) Z Non motorised vehicles, Z Building site vehicles

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The general site layout is presented in the diagram below (for 1 way).

You should call on the post supervisor if you need to leave for a few minutes, he will replace you.

3. COUNTING FORM

An example of the counting form is attached to this document. The grey areas will be filled at the end of the shift. Do not fill them in during the shift. Before counting, the following information should be filled in advance for several sheets “station n°”, “Direction (from and to a city)”, “date”, “day” and “weather”, “Surveyor Name”. The post supervisor should give you the information required for the site identification. Before submitting the forms check that the site and the date have been entered on each sheet. Do not mix interviews from different days on the same sheet.

Counts will be performed by half-hour periods (8h00-8h30 then 8h30-9h00, etc). You will indicate the time period in the first column. The next one will be on the next line. If one line is not sufficient, use two lines indicating again the time period in the first column.

For each vehicle that will pass in front of you, you should fill the form as shown below.

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

COUNTING SHEET

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ANNEX A : Vehicle Classification

The vehicle classification will be as follows:

Z Passenger cars (included 4 wheels drive vehicles),

Z Minibuses,

Z Buses,

Z Trucks up to 3.5 tons,

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Trucks 3.5–12 tons,

Z Trucks greater than 12 tons,

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Articulated trucks,

Z 2 wheelers,

Z Agricultural vehicles

Don’t confuse wheels and axles. An axle is a set of 2*1 wheels or 2*2 wheels.

IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

TA 7375-UZB: CAREC CORRIDOR 2 ROAD INVESTMENT PROGRAM, Uzbekistan Origin-destination survey Instructions to supervisors

1. GENERAL INSTRUCTIONS

This note comes in addition to the instructions to interviewers and the instructions to counters, instructions that you must know perfectly. Origin-Destination survey sites will be surveyed for 1 weekday. The interviews will be carried out in one direction only. Where possible, there should not be exceptional events that may affect the traffic in the survey area.

The surveys will last for 10 hours (from 8h00 to 18h00) and the counts will last also 10 hours (from 8h00 to 18h00).

Counting will be performed in both directions and interviews only in one direction.

Will be present at the survey location:

A post supervisor responsible for the survey (yourself) Police forces (to ensure safety and drivers cooperation) The counters (counting all vehicles on the road) 4 interviewers

2. SURVEY PREPARATION

The survey preparation includes: informing the authorities, requesting authorisations site visit prior to the survey period recruiting and training the interviewers preparing copies of the forms and other documents (instructions, coding material) supplies (pens, clip- boards, table for counters, reflective jackets)

3. SITE ORGANISATION

Traffic control devices should be put in place according to police instructions. Police officers should be present at all OD survey sites to ensure safety and drivers cooperation.

Theses devices include: An information sign stating “Survey Station”, for example, Speed limit signs, forcing drivers to reduce their speed as they approach the station. These sins will depend on the legal speed limit of the road where the station is located (70 – 50 – 30 km/h on a road limited to 90 km/h for example) Cones to differentiate between the road and the survey area. The general site layout is presented in the diagram below.

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The police agent located before the site should direct 4 vehicles towards the interview area.. Police forces will direct a new set of 4 vehicles once all previous 4 vehicles have left the interview area.

Some vehicles will not be interviewed nor counted. These are: Military vehicles Emergency vehicles (ambulances, fire engines, etc) Non motorised vehicles, Building site vehicles

Some vehicles will be only counted: Agricultural vehicles 2 wheelers

And the vehicles counted and interviewed will be: Z Passenger cars (included 4 wheels drive vehicles), Z Minibuses, Z Buses, Z Trucks up to 3.5 tons, Z Trucks 3.5–12 tons, Z Trucks greater than 12 tons, Z Articulated trucks,

At the end of the surveys, you will ensure that the interview sheets have been filled appropriately. You will place the interview sheets and count sheets for one site and one direction only (at the end of each 10h: 08.00am to 18.00pm) in an envelope on which you will write:

The station n° and location

IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The survey direction (based on the cities presented for the stations) The date Any comments on the survey proceedings (interruption due to rain…)

4. ROLE OF THE POST SUPERVISOR DURING THE SURVEY

The Post supervisor should: Inform the interviewer about site location (station n°, direction, weather) Ensure the appropriate functioning of the survey site (sufficient forms, etc) Check frequently that forms are completed properly Check by comparing counts and surveys that enough vehicle of each category has been interviewed. It is essential that all vehicle categories are interviewed proportionately to their importance in the traffic. Replace an interviewer if necessary Take a decision if a difficulty arises

At the end of the day, you fill and sign a file to certify that each counter has worked a number of hours.

5. WHAT TO DO IF A PROBLEM OCCURS?

Despite the preparation, problems could occur: Important rain Departure of police forces in case of emergency Etc

During this interruption of interviews, the counting should carry on.

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 Appendix 3 (A)

VARIOUS CROSS SECTIONS

Appendix 3 (B)

HORIZONTAL ALIGHNMENT

Appendix 4

HDM IV INPUTS AND OPUTPUTS, EIRR AND NPV TABLES FOR ALL SECTIONS OF THE ROAD TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Basic Input Data to HDM software

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Output of the HDM Software

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 Appendix 5

Financial Management Assessment Questionnaire TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

FINANCIAL MANAGEMENT ASSESSMENT QUESTIONNAIRE

Topic Response Remarks

1. Implementing Agency

In accordance with the decree of the President UP-3292 dated 18.08.2003 and Resolution of the President PP-499 of 25.10.2006 the Republican Road 1.1 What is the entity’s legal status / Fund under the Ministry of Finance is registration? the government agency accumulating financial resources for financing of designing, construction, reconstruction, repair and maintenance of common use roads.

Currently Road Fund is implementing its first project with participation of 1.2 Has the entity implemented an international financial institutions externally-financed project in the /multinational development banks: past (if so, please provide details)? CAREC Regional Road Project approved in 2007 for $75.3 million.

In accordance with the Resolution of the President PP-499 dated 25.10.2006 the Republican Road Fund shall submit the report to the Republican Road Fund management Board, with the accounting and other reporting submitted to the 1.3 What are the statutory reporting Ministry of Finance and other authorized requirements for the entity? agencies. Standards for Road Fund’s reporting are stipulated in Financial Reporting Regulations for State Budget Financed Organizations established by Ministry of Finance Decree No 1865 dd. 13.10.2008.

In accordance with the Resolution of the President PP-499 dd. 25.10.2006 the Republican Road Fund under the 1.4 Is the governing body for the Ministry of Finance is a separate legal project independent? entity having its own seal entitled to act as an independent entity (perform payments, conclude contracts with contractors, etc.)

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

Yes. Organizational structure of the Road Fund is established by President 1.5 Is the organizational structure Resolution No PP-299 dd. 09.03.06. PIU appropriate for the needs of the and PMU were created as separate project? legal entities by order of Road Fund Director and report directly to him.

2. Funds Flow Arrangements

2.1 Describe (proposed) project funds The same funds flow arrangements as in Funds flow CAREC Regional Road Project will be arrangements flow arrangements, including a applied for CAREC Corridor 2 Road are presented chart and explanation of the flow of funds from ADB, government and Investment Program. in Section G other financiers. para 24.

2.2 Are the (proposed) arrangements to transfer the proceeds of the loan Yes. (from the government / Finance Ministry) to the entity satisfactory?

2.3 What have been the major problems in the past in receipt of No major problems. funds by the entity?

Imprest Account can be opened in any 2.4 In which bank will the Imprest commercial bank in Uzbekistan. PIU Account be opened? opened its Imprest Account with Turon Joint-Stock Commercial Bank.

2.5 Does the (proposed) project Specialists with adequate qualification implementing unit (PIU) have and experience in this area will be experience in the management of hired/have been hired to PMU. Current disbursements from ADB? PIU will assist PMU.

The Borrower (Ministry of Finance) has an experience in foreign exchange risks management. As in all projects Road 2.7 Does the entity have/need a Fund will transfer loan and interest capacity to manage foreign payments in Uzbek Sums to Ministry of exchange risks? Finance. Ministry of Finance converts these funds on local Foreign Currency Exchange market.

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

PIU provides the Road Fund, MOE and the Ministry of Finance with forecast for counterpart funds for the next year. MoF includes this amounts into target lists. The Government contribution is made in accordance with target list, to be annually agreed with the Ministry of 2.8 How are the counterpart funds Finance, the Ministry of Economy, the accessed? Ministry for Foreign Economic Relations, Investments and Trade and Steering Committee These funds are then included in the state budget and state budget is approved by the Cabinet of Ministers Decree. Based on this decree Road Fund has access to counterpart funds.

Road Fund performs the payment of 2.9 How are payments made from the counterpart funds in accordance with counterpart funds? approved budget from its accounts in Treasury directly to the suppliers.

2.10 If part of the project is implemented by communities or NGOs, does the PIU have the necessary reporting N/A and monitoring features built into its systems to track the use of project proceeds by such agencies?

2.11 Are the beneficiaries required to contribute to project costs? If beneficiaries have an option to contribute in kind (in the form of Not required labor), are proper guidelines formulated to record and value the labor contribution?

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

3. Staffing

3.1 What is the (proposed) Accounting department of Road Fund Organization organizational structure of the comprises 4 persons: Chief Accountant, chart of Road accounting department? Attach an Deputy Chief Accountant, Senior Fund is organization chart. Accountant and Senior Specialist. PMU presented in financial staff will comprise Financial Section F para Management Specialist and Accountant. 18.

Organization chart of PMU is presented in Section H para 32.

3.2 Identify the (proposed) accounts Accounting department of Road Fund: staff, including job title, responsibilities, educational - Chief Accountant: controls all foreign background and professional currency accounts, prepares financial experience. Attach job descriptions statements, monitors foreign liabilities. and CVs of key accounting staff. - Deputy Chief Accountant: performs cost accounting, reconciles invoices with payment orders, forecasts Road Fund’s administrative expenses.

- Senior Accountant: performs payroll, assets and liabilities accounting.

- Senior Specialist: prepares, executes and reconciles payment orders. Prepares reconciliation statements with suppliers.

PMU will have 1 Accountant who will maintain PMU’s all accounting records and prepare payment orders.

All current and proposed accounts staff have/will have higher education in finance or accounting and at least 3 years of professional experience.

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

3.3 Is the project finance and Yes. accounting function staffed adequately?

3.4 Is the finance and accounts staff Finance and accounts staff with adequately qualified and adequate qualification and experience experienced? will be hired on a competition basis.

3.5 Is the project accounts and finance This provision will be given special staff trained in ADB procedures? consideration when hiring finance and accounts staff.

3.6 What is the duration of the contract The contracts with all employees are with the finance and accounts termless and regulated by Labor Code staff? of Uzbekistan.

3.7 Indicate key positions not All key positions in Road Fund have contracted yet, and the estimated been contracted. PMU has appointed 4 date of appointment. key personnel.

3.10 Does the project have written Yes. position descriptions that clearly define duties, responsibilities, lines of supervision, and limits of authority for all of the officers, managers, and staff?

3.11 At what frequency are personnel In Road Fund personnel turnover is not Accounting transferred? substantial (frequency: 3-4 years on and financial occasional basis). management In current PIU the personnel turnover is manual shall very frequent. The original personnel be developed for PMU, such hired in 2007 was replaced almost manual will entirely (in average 3-4 changes in each serve as guide position from 2007). for the new personnel. (see Section K para v)

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

3.12 What is training policy for the Road Fund’s accounting staff regularly ADB training finance and accounting staff? participates in accounting courses of on Financial CIPAEN (Certification in Accounting Management recognized in all CIS countries). Procedures Every 3 years Road Fund’s accounting shall be conducted for staff is examined by MoF (examination PMU and committee includes members from Tax Road Fund Committee and other relevant finance staff authiroties). (see Section K Current PIU staff hasn’t participated in para iv). ADB training on financial management.

4. Accounting Policies and Procedures

4.1 Does the entity have an accounting Yes. Road Fund uses 1S accounting see Section K system that allows for the proper software which is found to comply the para vi recording of project financial existing guidelines and regulations of the transactions, including the Ministry of Finance and ADB. allocation of expenditures in accordance with the respective PIU also uses 1S, but it is not integrated components, disbursement to Road Fund’s system. categories, and sources of funds? PMU will also use 1S. Will the project use the entity accounting system?

4.2 Are controls in place concerning In place. the preparation and approval of transactions, ensuring that all transactions are correctly made and adequately explained?

4.3 Is the chart of accounts adequate National Accounting Standards 21 are to properly account for and report applied with the amendments, which on project activities and take into account ADB requirements, disbursement categories? ensure accounting transparency.

4.4 Are cost allocations to the various Yes funding sources made accurately and in accordance with established agreements?

4.5 Are the General Ledger and General ledger and subsidiary ledgers subsidiary ledgers reconciled and are periodically reconciled. in balance?

IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

4.6 Are all accounting and supporting In accordance with the Law of the documents retained on a Republic of Uzbekistan On Accounting. permanent basis in a defined system that allows authorized users easy access?

Segregation of Duties 4.7 Are the following functional In the Road Fund these functions are responsibilities performed by performed by different persons. The different units or persons: (i) following segregation of duties for PMU authorization to execute a is proposed: transaction; (ii) recording of the transaction; and (iii) custody of (i) project manager assets involved in the transaction? (ii) accountant

(iii) accountant, office-manager

4.8 Are the functions of ordering, In the Road Fund these functions are receiving, accounting for, and totally segregated and performed by paying for goods and services different units. In PIU these functions are appropriately segregated? not segregated and performed by the accountant. For PMU it is proposed that: depending on the operations functions to be segregated between project manager, accountant, procurement specialist and office-manager. 4.9 Are bank reconciliations prepared In the Road Fund bank reconciliations by someone other than those who are prepared by the same person who make or approve payments? prepares the payment orders. However, payment orders are approved by different persons.

In PIU bank reconciliations are prepared by accountant who prepares payment orders. Payment orders are approved by the same accountant and director.

For PMU it is proposed that: payments to be approved by the accountant. For bank reconciliation cross-check system should be applied, i.e. accountant and office-manager, accountant and procurement specialist, etc.

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

Budgeting system

4.10 Do budgets include physical and Yes. Revenues are budgeted in financial financial targets? terms, expenses are budgeted in terms of physical works to be performed (km to be constructed, units of equipment to be procured).

4.11 Are budgets prepared for all Yes. significant activities in sufficient detail to provide a meaningful tool with which to monitor subsequent performance?

4.12 Are actual expenditures compared Yes, undertaken on a monthly and to the budget with reasonable quarterly basis with explanations frequency, and explanations thereto. required for significant variations from the budget?

4.13 Are approvals for variations from In advance the budget required in advance or after the fact?

4.14 Who is responsible for preparation In the Road Fund – Revenue Forecast and approval of budgets? Department.

In PIU Monitoring Specialist is responsible for preparation of budgets. Budgets are prepared in coordination with Road Fund’s Revenue Forecast Department and approved by Road Fund management, MoF, Ministry of Economy, Ministry for Foreign Economic Relations, Trade and Investments and Project Steering Committee.

4.15 Are procedures in place to plan In place. project activities, collect information from the units in charge of the different components, and prepare the budgets?

IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

4.16 Are the project plans and budgets For procurement of equipment and of project activities realistic, based consulting services Monitoring Specialist on valid assumptions, and plans the budget based on expected developed by knowledgeable timing of tenders, approval of tenders individuals? and supply schedules. For civil works the Revenue Forecast Department of Road Fund assists PIU based on actual performance of similar works. Payments

4.17 Do invoice-processing procedures In Road Fund invoice-processing provide for: (i) Copies of purchase procedures provide for all theses orders and receiving reports to be procedures. obtained directly from issuing departments? (ii) Comparison of invoice quantities, prices and From 2009 Road Fund makes all its terms, with those indicated on the payments through Treasury under the purchase order and with records of MoF. Treasury department double- goods actually received? (iii) checks all the payments and compare to Comparison of invoice quantities contract terms, invoice amounts and etc. with those indicated on the receiving reports? (iv) Checking the accuracy of calculations? The proposal for PMU is:

(i) Accountant

(ii) Procurement specialist

(iii) office-manager

(iv) Procurement specialist and accountant

Additional adjustments will be made after the approval of the projects, budget and project implementation plan

4.18 Are all invoices stamped PAID, No. dated, reviewed and approved, and It is proposed to conduct payment clearly marked for account code procedures and account code assignment? assignment in accordance with the national standards (payment order). 4.19 Do controls exist for the preparation Verified by the top management. of the payroll and are changes to the payroll properly authorized?

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

Policies and procedures

4.20 What is the basis of accounting The accrual method is used in (e.g., cash, accrual)? accordance with national legislation in the Road Fund.

PIU uses cash accounting.

4.21 What accounting standards are National Accounting Standards. followed?

4.22 Does the project have an adequate No. policies and procedures manual to guide activities and ensure staff accountability?

4.23 Is the accounting policy and No. See Section K procedure manual updated for the para v project activities? It is necessary to develop accounting policy, which can be updated in accordance with newly introduced amendments to national legislation and ADB requirements

4.24 Do procedures exist to ensure that No. See Section K only authorized persons can alter para v or establish a new accounting It is proposed to reflect it in the proposed principle, policy or procedure to be financial management manual for used by the entity? PMU/PIU.

4.25 Are there written policies and Regulation on the Republican Road procedures covering all routine Fund under the Ministry of Finance of financial management and related the Republic of Uzbekistan (as administrative activities? executing agency) and Financial Reporting Regulations for State Budget Financed Organizations established by Ministry of Finance Decree 4.26 Do policies and procedures clearly No. This provision shall be reflected in See Section K define conflict of interest and the proposed financial management para v related party transactions (real and manual for PMU/PIU. apparent) and provide safeguards to protect the organization from them?

4.27 Are manuals distributed to Yes. appropriate personnel?

IKS GROUP OF COMPANIES 10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

Cash and Bank

4.28 Indicate names and positions of In Road Fund: authorized signatories in the bank accounts. 1. Chief Accountant 2. Deputy Chief Accountant 3. Director of Road Fund 4. Deputy Director of Road Fund

In PIU:

Project manager and Accountant

4.29 Does the organization maintain an Timely cashbook record keeping and adequate, up-to-date cashbook, observation of cash discipline in recording receipts and payments? compliance with the guidelines on cash transactions conduct.

4.30 Do controls exist for the collection, Yes timely deposit and recording of receipts at each collection location?

4.31 Are bank and cash reconciled on a On daily basis. monthly basis?

4.32 Are all unusual items on the bank N/A reconciliation reviewed and approved by a responsible official?

4.33 Are all receipts deposited on a The receipts and charges to the timely basis? Republican Road Fund shall be deposited within the prescribed period in accordance with the regulation on procedure for generation and expenditure of funds of the Republican Road Fund

Safeguard over Assets

4.34 Is there a system of adequate Yes safeguards to protect assets from fraud, waste and abuse?

4.35 Are subsidiary records of fixed Yes assets and stocks kept up to date and reconciled with control accounts?

IKS GROUP OF COMPANIES 11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

4.36 Are there periodic physical Yes, annually (or in case of replacement inventories of fixed assets and of official) stocks?

4.37 Are assets sufficiently covered by No insurance policies?

Other Offices and Implementing Entities

4.38 Are there any other regional offices Yes, regional territorial road or executing entities participating in maintenance entities of SJSC implementation? «Uzavtoyul»

4.39 Has the project established controls It shall be developed prior to the and procedures for flow of funds, commencement of project financial information, accountability, implementation and audits in relation to the other offices or entities?

4.40 Does information among the Yes different offices/implementing agencies flow in an accurate and timely fashion?

4.41 Are periodic reconciliations Yes, on a quarterly basis or as may be performed among the different required offices/implementing agencies?

Other

4.42 Has the project advised employees, Yes beneficiaries and other recipients to whom to report if they suspect fraud, waste or misuse of project resources or property?

IKS GROUP OF COMPANIES 12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

5. Internal Audit

5.1 Is there a internal audit department No. However, the Road Fund is audited The ongoing in the entity? by Control and Revision Unit (CRU). reforms in the CRU of MOF (the equivalent to a Ministry of Supreme Audit Institution), carries out Finance internal audit of State entities once in a include an two-year period. CRD is mainly Internal Audit concerned with inspecting the function in the compliance of the entities with budget Treasury rules and regulations. However, CRD (MOF). Also does not conduct value-for-money see Section K analysis and is not involved in identifying para iii. the gaps in internal control systems and strengthening them, which are the essential features of modern internal audit.

5.2 What are the qualifications and N/A experience of audit department staff?

5.3 To whom does the internal auditor N/A report?

5.4 Will the internal audit department N/A include the project in its work program?

5.5 Are actions taken on the internal N/A audit findings?

6. External Audit

6.1 Is the entity financial statement The audit of the Republican Road Fund audited regularly by an is conducted by the Accounting independent auditor? Who is the Chamber of the Republic of Uzbekistan auditor? in compliance with the national legislation

6.2 Are there any delays in audit of the In Road Fund: no. entity? When are the audit reports issued? In PIU the audit of 2008 was delayed due to delay in auditor’s recruitment. As a result the report was submitted in December 2009.

IKS GROUP OF COMPANIES 13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

6.3 Is the audit of the entity conducted The audit of the Republican Road Fund See Section K according to the International is conducted by the Accounting para ii Standards on Auditing? Chamber of the Republic of Uzbekistan in compliance with the national legislation. PIU audit is conducted according to the International Standards on Auditing.

6.4 Were there any major N/A accountability issues brought out in the audit report of the past three years?

6.5 Will the entity auditor audit the The auditor will be selected on a tender project accounts or will another basis to audit project financial auditor be appointed to audit the statements project financial statements?

6.6 Are there any recommendations No. All recommendations are being made by the auditors in prior audit implemented. reports or management letters that have not yet been implemented?

6.7 Is the project subject to any kind of Yes, Accounting Chamber of the audit from an independent Republic of Uzbekistan. governmental entity (e.g., the supreme audit institution) in addition to the external audit?

6.8 Has the project prepared Yes. acceptable terms of reference for an annual project audit?

7. Reporting and Monitoring

7.1 Are financial statements prepared In accordance with the national for the entity? In accordance with standards of the Republic of Uzbekistan. which accounting standards?

7.2 Are financial statements prepared During project implementation for for the implementing unit? superior management bodies and ADB.

7.3 What is the frequency of Depending on the form of reporting preparation of financial statements? timely monthly, quarterly, semi-annual Are the reports prepared in a timely and annual report are prepared or those fashion so as to useful to requested by the top management. management for decision making?

IKS GROUP OF COMPANIES 14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

7.4 Does the reporting system need to PIU’s reporting system is adapted to be adapted to report on the project report on project components. It is components? expected that PMU will use the same system.

7.5 Does the reporting system have the The reporting system is maintained by capacity to link the financial PIU’s monitoring specialist including information with the project's financial information and project’s physical progress? If separate physical progress. Project’s physical systems are used to gather and progress is monitored by the planning compile physical data, what department of the Road Fund. Financial controls are in place to reduce the information is monitored by the Ministry risk that the physical data may not of Finance. synchronize with the financial data?

7.6 Does the project have established No. financial management reporting responsibilities that specify what reports are to be prepared, what they are to contain, and how they are to be used?

7.7 Are financial management reports Yes, for planning and decisions making used by management? purposes.

7.8 Do the financial reports compare Yes. actual expenditures with budgeted and programmed allocations?

7.9 Are financial reports prepared Accounting data is prepared by 1S directly by the automated accounting software. Project reports are accounting system or are they prepared by spreadsheets. prepared by spreadsheets or some other means?

8. Information Systems

8.1 Is the financial management Yes system computerized?

8.2 Can the system produce the Yes necessary project financial reports?

8.3 Is the staff adequately trained to Yes, it is stipulated to carry out training maintain the system? programme courses for financial and accounting personnel.

IKS GROUP OF COMPANIES 15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Topic Response Remarks

8.4 Does the management organization Yes and processing system safeguard the confidentiality, integrity and availability of the data?

RSCG

IKS GROUP OF COMPANIES 16 TASHKENT,SEPTEMBER 2010 Appendix 6

Budget Formulation and Approval Procedures TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Budget Formulation and Approval Procedures

IKS GROUP OF COMPANIES TASHKENT,SEPTEMBER 2010 Appendix 7

Rates of Contributions to the Republican Road Fund under the Ministry of Finance TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Rates of Contributions to the Republican Road Fund under the Ministry of Finance Table 1. Compulsory contributions Rate (%)

Types of contributions and 2007- 2010 Basis 2006 2009 fees 2008 Forecast

Turnover less All entities, establishments and VAT and 1.5 1.5 1.5 1.5 organizations not listed below excise tax

Turnover less Warehousing, supplying entitities VAT and 1.0 1.0 1.0 1.0 excise tax

Commercial banks, credit unions, microfinancing Turnover less organizations, insurance VAT and 1.5 1.5 1.5 1.5 companies, auctions, show excise tax business

Construction companies, Turnover less research entities, design VAT and 1.5 1.5 1.5 1.5 institutes excise tax

Agriculture and farming entities Turnover 1.5 1.5 1.5 1.5

Turnover less Leasing companies VAT and 1.5 1.5 1.5 1.5 excise tax

Heat, water, gas supply entitites Turnover less and gas supplying branches of VAT and 1.5 1.5 1.5 1.5 Uztransgaz company excise tax

Table 2. Other fees Rate (%)

Types of contributions and 2007- 2010 Basis 2006 2009 fees 2008 Forecast

Fees paid by the owners of vehicles upon registration

Buses up to 40 seats and trucks Cost of the 20.0 20.0 20.0 20.0 with load capacity up to 20 tons vehicle

Cost of the All other vehicles 6.0 6.0 6.0 6.0 vehicle

Income from sales of property of Property sold 50.0 50.0 50.0 50.0 SJSC "Uzavtoyul"

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Rates of Collections of the Republican Road Fund under the Ministry of Finance for the Entrance and Transit of the Vehicles to the Territory of Uzbekistan Table 3. Rates in USD

2010 No Types of collections and fees 2006 2007-2009 Forecast

Fees for entering the territory of Uzbekistanby vehicle from foreign 1 400 400 400 countries, per vehicle (excl. countries mentioned under 2-5)

2 Fee for entering the territory of Uzbekistan by the truck or bus of Tadjikistan

per truck or bus 130 130 130

per one day after 8 days per truck or 50 50 50 bus

for transit of buses or trucks through the territory of Uzbekistan to third countries 90 90 90 (except CIS)

Fee for entering the territory of Uzbekistan 3 by the truck or bus of Kazahstan except 300 300 300 transit

Fee for entering the territory of Uzbekistan 4 300 300 300 by the truck or bus of Kyrgiz Republic*

Fee for entering the territory of Uzbekistan 5 130 130 130 by the truck or bus of Turkmenistan*

Trucks with load capactiy:

up to 10 tons 50 50 50

from 10 to 20 tons 100 100 100

more than 20 tons 150 150 150

Buses with passenger capacity of:

less than 12 seats 25 25 25

from 12 to 30 seats 50 50 50

more than 30 seats 100 100 100

Transit cars 30 30 30

Transit motorbikes 15 15 15

* if otherwise is stated by international agreements, international agreements shall apply

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 Appendix 8

Chart of Accounts (National Accounting Standards No.21) TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Chart of Accounts (National Accounting Standards No.21) Number of Name of Account Type Account PART I LONG-TERM ASSETS Section 1 FIXED ASSETS, INTANGIBLE & OTHER LONG-TERM ASSETS 0100 FIXED ASSETS A 1100 Land 0111 Land Improvements 0112 Long-term Leasehold Improvements 0120 Buildings and Facilities 0130 Machinery and Equipment 0140 Furniture and Office fixtures 0150 Computer equipment and techniques 0160 Vehicles 0170 Draft animals and Livestock 0180 Perennial Plants 0190 Other Fixed Assets 0199 Preserved Fixed Assets 0200 DEPRECIATION OF FIXED ASSETS CA 0211 Depreciation of Land Improvements 0210 Depreciation of Long-term Leasehold Improvements 0220 Depreciation of Buildings and Facilities 0230 Depreciation of Machinery and Equipment 0240 Depreciation of Furniture and Office fixtures 0250 Depreciation of Computer equipment and techniques 0260 Depreciation of Vehicles 0270 Depreciation of Draft Animals 0280 Depreciation of Perennial Plants 0290 Depreciation of Other Fixed Assets 0299 Depreciation of Fixed Assets Received on Long-term Rent

0300 FIXED ASSETS RECEIVED ON LONG-TERM RENT A

0310 Fixed Assets, Received on Long-term Rent 0400 INTANGIBLE ASSETS A 0410 Patents, Licenses and Know-how 0420 Trademarks, Trade signs & Industrial samples 0430 Software 0440 Rights to use land and natural resources 0450 Organization Costs 0460 Franchise fees 0470 Copyrights 0480 Goodwill 0490 Other Intangible Assets 0500 AMORTIZATION OF INTANGIBLE ASSETS CA 0510 Accumulated Amortization - Patents, Licenses and Know-how 0520 Accumulated Amortization - Trademarks, Trade signs & Industrial samples 0530 Accumulated Amortization - Software 0540 Accumulated Amortization - Rights to use land and natural resources 0550 Accumulated Amortization - Organization Costs

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of Account Type Account 0560 Accumulated Amortization - Franchise fees No of Name of account Type acc 0570 Accumulated Amortization - Copyrights 0590 Accumulated Amortization - Other Intangible Assets 0600 LONG-TERM INVESTMENTS A 0610 Securities 0620 Investments in Subsidiaries 0630 Investments in Subordinates 0640 Investments in enterprises with foreign capital 0690 Other Long-term Investments 0700 EQUIPMENT TO BE INSTALLED A 0710 Equipment to be installed - Local 0720 Equipment to be installed - Imported 0800 CAPITAL INVESTMENTS A 0810 Work in progress 0820 Acquisition of fixed assets 0830 Acquisition of intangible assets 0840 Formation of main herd 0850 Capital Investments in Land Improvements 0860 Capital Investments in Fixed Assets received on long-term rent 0890 Other Capital investments 0900 LONG-TERM RECEIVABLES AND DEFERRED CHARGES A 0910 Notes Receivable 0920 Long-term Rent Payments Receivable 0930 Personnel Long-term Receivables 0940 Other Long-term Receivables 0950 Deferred income tax on temporary differences 0960 Long-term Deferred Expenses on Discounts 0990 Other Long-term Deferred Expenses PART II CURRENT ASSETS Sction 2 INVENTORY 1000 RAW MATERIALS INVENTORY A 1010 Materials 1020 Purchased Semi-finished Goods and Components 1030 Fuel 1040 Spare Parts 1050 Construction Materials 1060 Packaging Materials 1070 Materials for Outside Processing 1080 Inventory and household fixings 1090 Other Materials 1100 ANIMALS FOR BREEDING A 1100 Animals for Growing 1120 Animals for Fattening 1200 1300

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of Account Type Account

1400 1500 PROVISION AND PURCHASE OF MATERIALS 1510 Provision and Purchase of Materials

Number of Name of Account Type Account

1600 DEVIATION IN COST OF MATERIALS A 1610 Deviation in Cost of Materials 1700 1800 1900

2000 MAIN PRODUCTION WORK IN PROCESS 2010 Main Production Work in Process 2100 TRANSFER OF IN PROCESS INVENTORY A 2110 Transfer of in process inventory 2200 2300 AUXILIARY PRODUCTION IN PROCESS A 2310 Auxiliary Production in Process 2400

2500 GENERAL PRODUCTION EXPENSES 2510 General Production Expenses 2600 DAMAGE IN PRODUCTION 2610 Damage in Production 2700 ATTENDANT ENTERPRISES A 2710 Attendant Enterprises 2800 FINISHED GOODS INVENTORY A

2810 Finished Goods in Warehouse 2820 Finished Goods in Exhibition 2830 Finished Goods submitted to commission 2900 GOODS A

2910 Goods in Warehouse 2920 Goods in Retail Trade 2930 Goods in Exhibition 2940 Items for Rent 2950 Full and Empty packaging 2960 Goods submitted to commission 2970 Goods in Transit 2980 Trading Estimate 2990 Other Goods Section 3 PREPAID EXPENSES AND DEFERRED EXPENSES - CURRENT PORTION

3000 3100 PREPAID EXPENSES A 3110 Prepaid Rent 3120 Prepaid Services 3190 Other Prepayments 3200 DEFERRED EXPENSES A

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of Account Type Account

3210 Deferred income tax on temporary differences 3220 Deferred Expenses on Discounts 3290 Other Deferred Expenses 3300 3400 3500 3600 3700 3800 No of acc Name of account Type 3900 Section 4 RECEIVABLES - CURRENT PORTION 4000 ACCOUNTS RECEIVABLE A 4010 Accounts Receivable form Customers 4020 Notes Receivable 4100 A ACCOUNTS RECEIVABLE FROM SUBDIVISIONS, SUBSIDIARIES AND SUBORDINATES

4110 Accounts Receivable from Subdivisions 4120 Accounts Receivable from Subsidiaries and Subordinates 4200 ADVANCES GIVEN TO PERSONNEL A 4210 Advances given for payroll 4220 Advances given for business-trips 4230 Advances for General Expenses 4290 Other Advances given to personnel 4300 ADVANCES GIVEN TO SUPPLIERS AND CONTRACTORS A 4310 Advances given to suppliers and contractors for inventory 4320 Advances given to suppliers and contractors for long-term assets 4330 Other Advances Given 4400 ADVANCE PAYMENTS TO BUDGET A 4410 Advance payments on taxes and fees to budget 4500 ADVANCE PAYMENTS TO STATE FUNDS FOR SPECIAL PURPOSE AND ON INSURANCE A

4510 Advance payments on insurance 4520 Advance payments to state funds for special purpose 4600 RECEIVABLES FROM FOUNDERS A

4610 Receivables from Founders 4700 RECEIVABLES FROM PERSONNEL ON OTHER TRANSACTIONS A 4710 Receivables for goods on credit 4720 Receivables on loans 4730 Receivables to cover material loss 4790 Receivables on other transactions 4800 OTHER RECEIVABLES A 4810 Long-term Rent Payments Receivable 4820 Short-term Rent Payments Receivables 4830 Interest Receivable 4840 Dividends Receivable 4850 Royalty Receivable 4860 Claims Receivable 4890 Other Receivables

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of Account Type Account

4900 ALLOWANCE FOR DOUBTFUL DEBTS CA 4910 Allowance for Doubtful Debts

Section 5 CASH, SHORT-TERM INVESTMENTS AND OTHER NON-CASH CURRENT ASSETS

5000 CASH A 5010 Cash in national currency 5020 Cash in foreign currency 5100 CASH ON SETTLEMENT ACCOUNT A 5110 Settlement account 5200 CASH IN FOREIGN CURRENCY ACCOUNTS A 5210 Foreign Currency Accounts Domestic 5220 Foreign Currency Accounts Abroad 5300 5400 5500 SPECIAL BANK ACCOUNTS A 5510 Letters of Credit 5520 Cash in Checking Account 5530 Other Special Accounts

5600 CASH EQUIVALENTS A 5610 Cash Equivalents 5700 CASH (TRANSFERS) IN TRANSIT A 5710 Cash (Transfers) in Transit 5800 SHORT-TERM INVESTMENTS A 5810 Securities 5830 Short-term loans receivable 5890 Other Current Investments 5900 Shortage and loss from deterioration of valuables and other current assets A 5910 Shortage and Loss from deterioration of valuables 5920 Other Current Assets PART III LIABILITIES

Section 6 SHORT-TERM LIABILITIES 6000 ACCOUNTS PAYABLE TO SUPPLIERS AND CONTRACTORS L 6010 Accounts Payable to Suppliers and Contractors 6020 Notes Payable ACCOUNTS PAYABLE 6100 L TO SUBDIVISIONS AND SUBORDINATES 6110 Accounts Payable to Subdivisions 6120 Accounts Payable to Subsidiaries and Subordinates 6200 DEFERRED LIABILITIES L 6210 Unearned Discounts CL 6220 Unearned Premiums 6230 Other Unearned Income 6240 Deferred Liabilities on Taxes and Obligatory payments 6250 Liabilities on Income Tax on Temporary Differences 6290 Other Deferred Liabilities 6300 ADVANCES RECEIVED L 6310 Advances Received from Customers

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of Account Type Account

6320 Advances Received from Subscribers to Stock 6390 Other Received Advances 6400 DEBT ON BUDGET PAYMENTS L 6410 Debt on Budget Payments (on types of taxes)

6500 INSURANCE DEBT AND DEBT ON PAYMENTS TO STATE FUNDS FOR SPECIAL PURPOSE L

6510 Insurance Debt 6520 Debt on payments to state funds for special purpose 6600 DEBT TO FOUNDERS L 6610 Dividends Payable 6620 Debt due to leaving founders 6700 SETTLEMENTS WITH PERSONNEL L 6710 Settlements with Personnel 6720 Escrow Salary

Number of Name of account Type Account

6800 SHORT-TERM CREDITS AND LOANS L 6810 Short-term Bank Credits 6820 Short-term Loans 6830 Bonds Payable - non-bank 6840 Notes Payable - non-bank 6900 OTHER PAYABLES L 6910 Short-term Rent Payable 6920 Accrued Interest 6930 Debt on Royalty 6940 Debt on Guaranties 6950 Long-term Liabilities - current portion 6960 Payable on Claims 6970 Debt due to employees Other Liabilities 6990 Section 7 LONG-TERM LIABILITIES 7000 ACCOUNTS PAYABLE TO SUPPLIERS AND CONTRACTORS L 7010 Accounts Payable to Suppliers and Contractors 7020 Notes Payable

7100 LONG-TERM LIABILITIES TO SUBDIVISIONS, SUBSIDIARIES AND SUBORDINATES L

7110 Long-term Liabilities to Subdivisions 7120 Long-term Liabilities to Subsidiaries and Subordinates

7200 DEFERRED LONG-TERM LIABILITIES L 7210 Deferred Discounts 7220 Deferred Premiums 7230 Other Deferred Incomes 7240 Deferred Liabilities on Taxes and Obligatory payments 7250 Deferred Income Tax Liability on temporary differences 7290 Other Deferred Long-term Liabilities

IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of account Type Account 7300 ADVANCES RECEIVED FROM CUSTOMERS - LONG-TERM PORTION L 7310 Advances Received from Customers - long-term portion 7400 7500 7600 7700 7800 LONG-TERM CREDITS AND LOANS L 7810 Long-term bank credits 7820 Long-term Loans 7830 Bonds Payable 7840 Notes Payable 7900 OTHER LONG-TERM LIABILITIES L

7910 Long-term Rent Payable 7920 Other Long-Term Liabilities PART IV OWNER'S EQUITY Section 8. CAPITAL, RETAINED EARNINGS AND RESERVES 8000 8100 8200 8300 CHARTERED CAPITAL L 8310 Common Stock 8320 Preferred Stock 8430 Donated Capital 8400 ADDITIONAL CAPITAL 8410 Revenues from Issuance 8420 Foreign Exchange difference in forming chartered capital 8500 RESERVE CAPITAL L 8510 Assets Revaluation Adjustment 8520 Reserve Capital fixed by Legislation 8530 Property Received on Gratis 8600 TREASURY STOCK CL 8610 Treasury Stock - Common 8620 Treasury Stock - Preferred 8700 RETAINED EARNINGS (NON-COVERED LOSS) L 8710 Retained Earnings (Non-covered Loss) for Reporting Period 8720 Retained Earnings for Prior Periods (Non-covered Loss) 8800 FUNDS RECEIVED FOR SPECIAL PURPOSES L 8810 Grants 8820 Subsidies 8830 Membership fees 8840 Tax Remissions for special purpose 8890 Other funds received for special purposes 8900 RESERVE OF FUTURE EXPENSES AND PAYMENTS L 8910 Reserve of Future Expenses and Payments

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of account Type Account

PART V FORMATION AND UTILIZATION OF FINANCIAL RESULTS Section 9. REVENUES AND EXPENSES 9000 REVENUES FROM MAIN BUSINESS T

9010 Revenues from Sale of Finished Goods 9020 Revenues from Sale of Goods 9030 Revenues from Sales of Works and Services 9040 Sales Return CL 9050 Discounts for Customers CL

9100 COST OF GOODS (WORKS, SERVICES) SOLD T

9110 Cost of Finished Goods Sold 9120 Cost of Goods Sold 9130 Cost of Works and Services Sold 9140 Acquisition/Purchase of Inventory in periodical accounting 9150 Inventory Adjustments in periodical accounting 9200 DISPOSAL OF FIXED AND OTHER ASSETS 9210 Disposal of fixed assets 9220 Disposal of other assets

Number of Name of account Type Account

9300 OTHER INCOME FROM MAIN BUSINESS T 9310 Gain from disposal of fixed assets 9320 Gain from disposal of other assets 9330 Paid fines, penalties and forfeits 9340 Income of previous years 9350 Income from short-term rent 9360 Income from writing off payables and depositor debt 9370 Income of attendant enterprises 9380 Financial Donations 9390 Other operating income 9400 PERIOD EXPENSES T 9410 Selling Expenses 9420 Administrative Expenses 9430 Other Operational Expenses 9440 Reporting Period Expenses excluded from taxable base in future

9500 INCOME FROM FINANCIAL ACTIVITY T 9510 Income from Royalty 9520 Income from Dividends 9530 Interest Income 9540 Income from differences in currency exchange (positive) 9550 Income from long-term rent 9560 Income from revaluation of securities 9570 Other Income from Financial Activity 9600 EXPENSES ON FINANCIAL ACTIVITY T

IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Number of Name of account Type Account

9610 Interest expenses 9620 Foreign Currency Exchange difference losses (negative) 9630 Expenses on Issue and Distribution of Securities 9690 Other Expenses on Financial Activity 9700 EXTRAORDINARY GAIN (LOSS) T 9710 Extraordinary Gain 9720 Extraordinary Loss 9800 UTILIZATION OF PROFIT FOR TAXATION AND FEES T 9810 Income Tax 9820 Fees and other mandatory deductions 9900 INCOME SUMMARY T 9910 Income Summary PART VI OFF-BALANCE ACCOUNTS 001 Fixed Assets on short-term rent (leased) OB 002 Inventory deposited in custody OB 003 Materials received for processing OB 004 Goods taken on commission OB 005 Equipment received for mounting OB 006 Forms under seal OB 007 Written-off bad debts OB 008 Security for debt and payment - received OB 009 Security for debt and payment - issued OB 010 Fixed Assets under long-term rent agreement OB 011 Property received under subsidy agreement OB 012 Expenses excluded from taxable base of the following periods OB 013 Temporary tax remissions (by types) OB 014 Inventory and household fixings in operation OB

Notes:

A - Assets Account CA - Contra Assets Account L - Liability & Owners Equity Account CL - Contra Liability & Owners Equity Account T - Temporary Account OB - Off-Balance Sheet Account

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 Appendix 9

INVESTMENT PROGRAM IMPLEMENTATION STRUCTURE TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

INVESTMENT PROGRAM IMPLEMENTATION STRUCTURE

Road Fund

Procurement PMU Team: Specialist PMU Director Engineering Procurement Financial Safeguard Team Management Accounting Results Monitoring Project Appraisal Legal Team Office Manager Secretary Interpreter Driver

Construction Civil works Road asset Community supervision contractors management development teams and support support Equipment consultants consultants suppliers

IKS GROUP OF COMPANIES TASHKENT,SEPTEMBER 2010 Appendix 10

DRAFT PREIODIC FINANCING REQUESTS TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

PERIODIC FINANCING REQUEST Date: ___ 2010 To: Asian Development Bank 6 ADB Avenue Mandaluyong City, Metro Manila ATTENTION: Director General Central and West Asia Department Fax No. +632 636 6318

Sir:

RE: UZB: CAREC Corridor 2 Road Investment Program: Periodic Financing Request #2

Please refer to the Framework Financing Agreement (FFA) for CAREC Corridor 2 Road Investment Program dated ______between Asian Development Bank (ADB) and the Republic of Uzbekistan. Expressions defined in the FFA shall have the same meanings herein. Pursuant to the provisions of the FFA, the Republic of Uzbekistan requests ADB to process this Periodic Financing Request (PFR) for a tranche, in the form of a loan from its Special Funds resources (i.e., the Asian Development Fund). The proposed financing amounts, terms, conditions, and financing plan are specified in Attachment A hereto. Descriptions of the project for which financing is hereby requested are set out in Attachments B to D.

By: REPUBLIC OF UZBEKISTAN

By: ___ Minister Ministry of Finance

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Attachment A Project Under the CAREC Corridor 2 Road Investment Program (Investment Description Program), the following activities are proposed for financing under this periodic financing request:

Road Development Component. This component will comprise civil works of about 85 km of the Uzbekistan Section of CAREC Corridor 2 Road (between Km 355 and 440 of A380 highway). Civil works for this component will not involve land acquisition but involve involuntary resettlement, and will not create significant environmental impacts. Such civil works are to achieve the four-lane international design standard within the existing right-of-way. In addition to the physical investments, this component will support implementation of Project 2 (and the Investment Program) through providing consulting services on: (i) procurement and environment and social safeguards; (ii) construction supervision.

Road Sector Sustainability Component. The Project will finance the procurement of a set of road equipment to be managed by a Road Equipment Pool Company (REPC) “Transyulqurilish” that was established under Loan 2403-UZB: CAREC Regional Road Project. The company was be set up as an independent commercially-operated state-owned enterprise. Under Loan 2403-UZB: CAREC Regional Road Project, the cost estimate of Boring equipment was underestimated and this equipment was not procured.

Cost Estimates and The total cost of Project 2, including taxes, duties, physical and price Financing Plan contingencies, interest and other charges, is estimated at $ 289 million equivalent. The summary of the investment plan for Project 2 is in Table 1. The proposed financing plan for Project 2 is summarized in Table 2. The detailed cost estimates by financiers and financing plan for Project 2 are in Attachment C.

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ATTACHMENT A Table 1: Summary Investment Plan for Project 2 ($ million) a

Item Total Road Development Land Acquisition and Resettlement 0.2 Civil Works 176.2 Consulting Services Procurement and Safeguard Support 0.4 Construction Supervision 3.5 Road Sustainability Equipment 15.0 Recurrent costsb 0.5 Taxes and duties 40.6 Total Base Cost 236.4 Physical and price contingenciesc 38.7 Financing charges during implementationd 14.0 Total 289.1 a In mid-2009 prices. b Program Management Unit (PMU) expenses related to the Investment Program including: PMU staff salary, operational expenses, travel, training, and other eligible expenditures; excluding single social payment. c Physical is estimated at about 10% of the total base cost. Price contingencies estimated at about 5% include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges assuming tranche 2 is funded by OCR. Source: Estimate of Consultants

Table 2: Summary Financing Plan for Project 2 ($ million) Financier Amount Asian Development Bank 240 Government 49.1 Total 289.1

Loan Amount and The request is for a loan of $240 million equivalent from ADB's ordinary Terms capital resources (OCR) will have a 24-year term, including a grace period of 4 years, an interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, and a commitment charge of 0.15% of the Loan per annum. Interest during construction and commitment charges will be financed by ADB and capitalized into loan amount. Period of Loan/ The physical implementation of Project 2 is expected to be completed by 28 Utilization November 2013 and the loan is expected to be closed on 30 May 2014.

Retroactive No retroactive financing is requested Financing

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Implementation The Road Fund under the Ministry of Finance (MOF) will be the executing Arrangements Agency for the Project. The Road Fund has established a Program Management Unit (PMU) to implement the Project. It has also appointed the PMU director and all necessary staff as it was envisaged under the Investment Program for the entire period of project implementation and PMU is equipped with the necessary office space, equipment, and facilities. Procurement All goods and services to be financed under Project 2 will be procured in and Consulting accordance with ADB’s Procurement Guidelines (2007, as amended from Services time to time). All consulting services to be financed under the Project 2 will be procured in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The procurement plan (including civil works, goods and services) is in Attachment D. Confirmation of The Government of Uzbekistan confirms that the understandings set out in Continuing the FFA have been adhered. Validity of and Adherence to Provisions of FFA, Previous Agreements, and the Design and Monitoring Framework

Readiness of • PMU already set up and operational. the Project for • Preparatory works, including advance actions for procurement of civil Implementation works and recruitment of consultants, are ongoing. • The detailed design for Project 2 was completed. • Counterpart funding is available.

Safeguards The environmental assessment and review framework, the land acquisition and resettlement framework and the ethnic minority planning framework are incorporated by reference in the FFA.

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ATTACHMENT B DESIGN AND MONITORING FRAMEWORK FOR PROJECT 2 Data Design Assumptions Performance Targets/Indicators Sources/Reporting Summary and Risks Mechanisms Impact By 2020: Assumption

Sustainable Increased gross domestic Statistical Review of Government sustains economic product in Khorezm from about Uzbekistan policies conducive to development $800 million (2008 estimate) to economic growth and $1.6 billion and in Bukhara remains committed to from about $1.3 billion (2008 enhanced policy reforms estimate) to $2.7 billion and regional integration Increased external trade with Kazakhstan from about $900 million (2008) to $1.6 billion

Outcome By 2015: Assumptions

Better connectivity Increased average total Statistical Review of Increased availability and and an efficient traffic volume from Uzbekistan quality of transport transport system 5000 vpd in 2009 to services following along Uzbekistan 6000 vpd improvement of the section of CAREC Investment Program Corridor 2 Road Accident rate on A380 ADB’s project roads reduced from 150 accidents completion report and per year (2008 estimate) to project performance Improved cross-border 120 evaluation report facilities and procedures at the border point Reduced travel time from between Uzbekistan and Dautata to Bukhara from 10 Periodic classified Kazakhstan to 9 hours traffic counts and accident data system The Road Fund Road beneficiaries: 1.5 continues constructing population the remaining sections of the A-380 as scheduled at the same quality as the Investment Program

Risk

Inadequate financial resources for road maintenance

Outputs By 2013: Assumptions

1. Uzbekistan section 85 km road sections Consultants reports Timely provision of of CAREC Corridor 2 constructed with pavement counterpart resources road constructed international roughness and support for Project 2 index of less than 4m/km Contractor procured through ICB perform in accordance with the contract provisions

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Data Design Assumptions Performance Targets/Indicators Sources/Reporting Summary and Risks Mechanisms 2. Road sector Sector-wide Assumptions sustainability strategy Access for private road Government is and plans adopted by constructing companies to committed to further the Road Fund high value road reform the road sector construction equipment Road Equipment Pool Company is committed to continue improving its planning capacity Activities with Key Milestones Inputs

1.0 Road Development Component 1. OCR loan of $240 1.1 Recruitment of construction supervision consultants by July 2011 million 1.2 Award civil works and procurement of goods contracts by July 2011 2. Government counterpart 1.3 Completion of civil works and procurement of goods by 31 December 2014 budget of $49 million 2.0 Road Sustainability Component 2.1 Recruitment of consultants by 1 January 2011 2.2 Consulting services completed by 31 September 2012

IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Attachment C

DETAILED COST ESTIMATES BY FINANCIER—PROJECT 2($ MILLION)ª

Item ADB Government Total Road Development Land Acquisition and Resettlement 0.0 0.2 0.2 Civil Works 176.2 0.0 176.2 Consulting Services Procurement and Safeguard Support 0.4 0.0 0.4 Construction Supervision 3.5 0.0 3.5 Road Sustainability Equipment 15.0 0.0 15.0 Recurrent costsb 0.5 0.0 0.5 Taxes and duties 0 40.6 40.6 Total Base Cost 195.6 40.8 236.4 Physical and price contingenciesc 30.4 8.3 38.7 Financing charges during implementationd 14.0 0.0 14.0 Total 240 49.1 289.1 a In mid-2009 prices. b Program Management Unit (PMU) expenses related to the Investment Program including: PMU staff salary, operational expenses, travel, training, and other eligible expenditures; excluding single social payment. c Physical is estimated at about 10% of the total base cost. Price contingencies estimated at about 5% include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges assuming tranche 2 is funded by OCR. Source: ADB

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Attachment D

PROCUREMENT PLAN AND TENTATIVE CONTRACT PACKAGES

Project Information Country Republic of Uzbekistan Name of Borrower Republic of Uzbekistan Project Name CAREC Corridor 2 Road Investment Program – Project 2 Loan Reference TBD Date of Effectiveness TBD Project Cost Amount ($ million) $289 million Of which ADB Loan Amount ($ million) $240 million Executing Agency Road Fund, Ministry of Finance Approval Date of Original Procurement Plan TBD Approval of Most Recent Procurement Plan TBD Publication for Local Advertisement TBD Period Covered by this Plan 5 October 2010 – 5 August 2012 CAREC = Central Asia Regional Economic Cooperation, TBD = to be determined. a The plan will be updated annually, on rolling 18-month basis, on the anniversary of the date of loan effectiveness.

Procurement Thresholds, Goods and Related Services, Works and Supply and Install Method Threshold International Competitive Bidding (works) > $3,000,000

Procurement Thresholds, Consultants Services Methods Threshold Quality- and Cost-Based Selection (QCBS) > $1,000,000 by Full Technical Proposal 1,000,000 by Simplified Technical Proposal $600,000 by Biodata Technical Proposal

Table D 1: List of Contract Packages in Excess of $100,000 Goods, Works, and Consulting Services Estimated Prior Contract Procurement Date of Ref Costs Review Comments Description Methods Advertisement ($ million) a Y/N Financed by 1. Civil Works 176.2 ICB TBD Y ADB Consulting QCBS and Financed by 2. 3.9 TBD Y Services individual ADB Financed by 3. Goods 15 ICB TBD Y ADB ADB = Asian Development Bank, ICB = international competitive bidding, N = no, QCBS = quality- and cost-based selection, UZB = Uzbekistan, Y = yes. a Cost estimates do not include taxes and duties, and physical contingencies. Sources: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table D 2: Proposed Detailed Contract Packaging

ADB Estimated Respon Contract Mode of Duration No Contract Contract Ref Unit Costs sible Description a Procurement (months) Objectio Starting Completion ($ million) Agency n Length A. Civil Works (km) 1 1 Jan 29 Apr. 28 Oct Road CWP 1 85 176.2 ICB 18 2011 2011 2013 Fund Total Civil 85 176.2 Works B. Road Set Sustainability (count) 1 Road Road 1 Jun. 1 Sept. Fund/Tr 1 15 QCBS 8 30 Apr. 2011 Equipment 2010 2010 ansyulq urilish Total 115 Equipment Person- Consulting C. month Services (total) 1 CSP-1: Procurement Extension of contracts under Project I 22 0.4 Individual 36 and safeguard support 2 CSP-2: 02 Mar. 30 May Road 27 Nov. 2014 Construction 438 3.5 QCBS 30 2011 2011 Fund supervision

Total Consulting 460 3.9 Services ADB = Asian Development Bank, CSP = consulting service package, CWP = civil works package, ICB = international competitive bidding, km = kilometer, QCBS = quality- and cost-based selection. a Cost estimates for civil works do not include taxes, physical, and price contingencies. Source: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

PERIODIC FINANCING REQUEST 3

Date: ___ 2010 To: Asian Development Bank 6 ADB Avenue Mandaluyong City, Metro Manila ATTENTION: Director General Central and West Asia Department Fax No. +632 636 6318

Sir:

RE: UZB: CAREC Corridor 2 Road Investment Program: Periodic Financing Request #3

By: REPUBLIC OF UZBEKISTAN

By: ___ Minister Ministry of Finance

IKS GROUP OF COMPANIES 10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ATTACHMENT A

Project Under the CAREC Corridor 2 Road Investment Program (Investment Description Program), the following activities are proposed for financing under this periodic financing request:

Road Development Component. This component will comprise civil works of about 87 km of the Uzbekistan Section of CAREC Corridor 2 Road (between Km 315-255 in section 1 and between Km 581-627 in section 2 of A380 highway). Civil works for this component will involve land acquisition and involuntary resettlement, but will not create significant environmental impacts. Such civil works are to achieve the four-lane international design standard within the existing right-of-way for Section 1 and Section 2 will be constructed as new bypass road to Beruni and Turtkul cities of Karakalpakistan. In addition to the physical investments, this component will support implementation of Project 3 (and the Investment Program) through providing consulting services on: (i) procurement and environment and social safeguards; (ii) construction supervision.

Road Sector Sustainability Component. This component will support consulting services and support pilot and capacity building activities to improve general road sector sustainability. This will also contribute to the Government's road sector policy framework. (i) Road asset management system. This subcomponent will expand a road asset management system introduced under Loan 2403-UZB and Project 1 of the Investment Program. It will support the implementation of the system, including procurement of necessary support facilities such as computer, software, automatic traffic counting device, and a related training program. It will also support establishing an independent quality control system for road works, developing road maintenance contracts, reforming the road financing system, establishing a road maintenance system for cement concrete road, and creating an enabling framework for public-private partnerships (PPP) in the road sector and pilot a PPP project if feasible. (ii) Community development program. This subcomponent will minimize road externalities on gender and local community and target them as beneficiaries of the road development. Consulting services under this subcomponent will support capacity development for the Road Fund and the local communities living along the Investment Program road. It will also conduct needs assessment for developing the social and healthcare infrastructure and execute the corresponding actions. Proposed activities include the following: (a) Tree Planting – the support of tree planting groups by DP’s to revegetate lost trees along corridors, fence lines and canals. Funding would assist with seedling preparation, planting and maintenance; (b) Community Road side facilities – small scale support funding for women’s groups to build and maintain (through charges) roadside toilet, water facilities. Areas could also include shaded areas suitable for market stalls to sell produce; a combined canteen/magazine/public toilet/shower/Paynet shop; (c) Small scale vocational training – particularly for women and the poor – activities would

IKS GROUP OF COMPANIES 11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

include sewing workshop, hair-cutting, auto-mechanic and a tree nursery (d) Dedicated community meeting building and shaded area.

Transport Logistics Component. This component will primarily assist the Government strengthen road sustainability in Uzbekistan through procurement of cross-border facility equipment. Considering huge investment had been committed to this road the smooth passage of international trucks have to be ensured on the road and the cross border facility that will be procured under this component will ensure that overall objectives of the road are achieved. Cost Estimates and The total cost of Project 3, including taxes, duties, physical and price Financing Plan contingencies, interest and other charges, is estimated at $ 303.1 million equivalent. The summary of the investment plan for Project 3 is in Table 1. The proposed financing plan for Project 3 is summarized in Table 2. The detailed cost estimates by financiers and financing plan for Project 3 are in Attachment C.

Table 1: Summary Investment Plan for Project 3 ($ million) a Item Total Road Development Land Acquisition and Resettlement 1.6 Civil Works 197.8 Consulting Services Procurement and Safeguard Support 0.4 Construction Supervision 3.5 Road Sustainability Equipment 5.0 Road Asset Management Support 1.2 Community Development 0.2 Recurrent costsb 0.5 Taxes and duties 45.5 Total Base Cost 255.7 Physical and price contingenciesc 42.8 Financing charges during implementationd 4.6 Total 303 a In mid-2009 prices. b Program Management Unit (PMU) expenses related to the Investment Program including: PMU staff salary, operational expenses, travel, training, and other eligible expenditures; excluding single social payment. c Physical is estimated at about 10% of the total base cost. Price contingencies estimated at about 5% include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges assuming tranche 3 is funded by ADF. Source: ADB Table 2: Summary Financing Plan for Project 3 ($ million) Financier Amount Asian Development Bank 245 Government 58 Total 303

IKS GROUP OF COMPANIES 12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Loan Amount and The request is for a loan of $245 million equivalent from ADB's Special Terms Funds resources (i.e. the Asian Development Fund (ADF)), with a term of 32 years, including a grace period of 8 years, an interest of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions as agreed in the FFA, and further supplemented under loan agreement. Period of Loan/ The physical implementation of Project 3 is expected to be completed by 30 Utilization October 2014 and the loan is expected to be closed on 30 April 2015.

Retroactive No retroactive financing is requested Financing Implementation The Road Fund under the Ministry of Finance (MOF) will be the executing Arrangements Agency for the Project. The Road Fund has established a Program Management Unit (PMU) to implement the Project. It has also appointed the PMU director and all necessary staff as it was envisaged under the Investment Program for the entire period of project implementation and PMU is equipped with the necessary office space, equipment, and facilities. Procurement All goods and services to be financed under Project 2 will be procured in and Consulting accordance with ADB’s Procurement Guidelines (2007, as amended from Services time to time). All consulting services to be financed under the Project 2 will be procured in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The procurement plan (including civil works, goods and services) is in Attachment D. Confirmation of The Government of Uzbekistan confirms that the understandings set out in Continuing the FFA have been adhered. Validity of and Adherence to Provisions of FFA, Previous Agreements, and the Design and Monitoring Framework

Readiness of • PMU already set up and operational. the Project for • Preparatory works, including advance actions for procurement of civil Implementation works and recruitment of consultants, are ongoing. • The detailed design for Project 3 was completed. • Counterpart funding is available.

Safeguards The environmental assessment and review framework, the land acquisition and resettlement framework and the ethnic minority planning framework are incorporated by reference in the FFA.

ATTACHMENT B IKS GROUP OF COMPANIES 13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

DESIGN AND MONITORING FRAMEWORK FOR PROJECT 3

Data Design Assumptions Performance Targets/Indicators Sources/Reporting Summary and Risks Mechanisms Impact By 2020: Assumption

Sustainable Increased gross domestic Statistical Review of Government sustains economic product in Karakalpakstan from Uzbekistan policies conducive to development $635 million (2008 estimate) to economic growth and $1.3 billion remains committed to enhanced policy reforms Increased external trade with and regional integration Kazakhstan from about $900 million (2008) to $1.6 billion

Outcome By 2016: Assumptions

Better connectivity Increased average total Statistical Review of Increased availability and and an efficient traffic volume from Uzbekistan quality of transport transport system 5000 vpd in 2009 to services following along Uzbekistan 6000 vpd improvement of the section of CAREC Investment Program Corridor 2 Road Increased cross-border ADB’s project roads traffic at Daudata Border completion report and Post from 25 trucks/day project performance Improved cross-border evaluation report (2008) to 50 trucks/day procedures at the border point between Reduced travel time from Uzbekistan and Dautata to Bukhara from 10 Periodic classified Kazakhstan to 7 hours traffic counts and accident data system The Road Fund Reduced cross-border time continues constructing from 2 hours to 20 minutes the remaining sections of per truck the A-380 as scheduled at the same quality as Accident rate on A380 the Investment Program reduced from 150 accidents per year (2008 estimate) to Risk 75 accidents Inadequate financial resources for road maintenance

Outputs By 2014: Assumptions

1. Uzbekistan 87 km road sections Consultants’ progress Timely provision of section of CAREC constructed with pavement reports counterpart resources Corridor 2 road international roughness and support for the MFF constructed index of less than 4m/km ADB review missions Contractors procured through ICB perform in accordance with the contract provisions

IKS GROUP OF COMPANIES 14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Data Design Assumptions Performance Targets/Indicators Sources/Reporting Summary and Risks Mechanisms 2. Road sector Scanner with the scanning State Customs sustainability capacity of 15-20 minutes Committee shall strategy and plans per truck installed complete the adopted by the Sector-wide construction if the Daut- Road Fund The independent quality Ata customs post on time control for road works is improved Public private partnership framework in place

Activities with Key Milestones Inputs

1.0 Road Development Component 1. ADF loan of $245 million 1.1 Award civil works contracts by April 2012 2. Government counterpart 1.2 Completion of civil works and procurement of goods by 31 December 2014 budget of $58.1 million 1.3. Consulting services completed by 31 December 2014 2.0 Road Sustainability Component 2.1 Award procurement of goods contracts by April 2012 2.1 Recruitment of consultants by 1 July 2012 2.2 Consulting services completed by 31 September 2012 ADB = Asian Development Bank, ADF = Asian Development Fund, ICB = international competitive bidding, km = kilometer, OCR = ordinary capital resources, MFF = multitranche financing facility, UZB = Uzbekistan, vpd = vehicles per day

IKS GROUP OF COMPANIES 15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Attachment C

DETAILED COST ESTIMATES BY FINANCIER—PROJECT 3($ MILLION)ª

Item ADB Government Total Road Development Land Acquisition and Resettlement 0.0 1.6 1.6 Civil Works 197.8 0.0 197.8 Consulting Services Procurement and Safeguard Support 0.4 0.0 0.4 Construction Supervision 3.5 0.0 3.5 Road Sustainability Equipment 5.0 0.0 5.0 Road Asset Management Support 1.2 0.0 1.2 Community Development 0.2 0.0 0.2 Recurrent costs b 0.5 0.0 0.5 Taxes and duties 0 45.5 45.5 Total Base Cost 208.6 47.1 255.8 Physical and price contingencies c 36.5 6.3 42.8 Financing charges during implementation d 0.0 4.5 4.5 Total 245.1 57.9 303 a In mid-2009 prices. b Program Management Unit (PMU) expenses related to the Investment Program including: PMU staff salary, operational expenses, travel, training, and other eligible expenditures; excluding single social payment. c Physical is estimated at about 10% of the total base cost. Price contingencies estimated at about 5% include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges assuming tranche 2 is funded by OCR. Source: ADB

IKS GROUP OF COMPANIES 16 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Attachment D

PROCUREMENT PLAN AND TENTATIVE CONTRACT PACKAGES FOR PROJECT 3

Project Information Country Republic of Uzbekistan Name of Borrower Republic of Uzbekistan Project Name CAREC Corridor 2 Road Investment Program – Project 3 Loan Reference TBD Date of Effectiveness TBD Project Cost Amount ($ million) $303.1 million Of which ADB Loan Amount ($ million) $245 million Executing Agency Road Fund, Ministry of Finance Approval Date of Original Procurement Plan TBD Approval of Most Recent Procurement Plan TBD Publication for Local Advertisement TBD Period Covered by this Plan 5 September 2010 – 5 August 2012 CAREC = Central Asia Regional Economic Cooperation, TBD = to be determined. a The plan will be updated annually, on rolling 18-month basis, on the anniversary of the date of loan effectiveness.

Procurement Thresholds, Goods and Related Services, Works and Supply and Install Method Threshold International Competitive Bidding (works) > $3,000,000

Table D 1: List of Contract Packages in Excess of $100,000 Goods, Works, and Consulting Services Estimated Prior Contract Procurement Date of Ref Costs Review Comments Description Methods Advertisement ($ million) a Y/N Financed by 1. Civil Works 197.8 ICB TBD Y ADB Consulting QCBS and Financed by 2. 5.3 TBD Y Services individual ADB Financed by 3. Goods 5 ICB TBD Y ADB ADB = Asian Development Bank, ICB = international competitive bidding, N = no, QCBS = quality- and cost-based selection, UZB = Uzbekistan, Y = yes. a Cost estimates do not include taxes and duties, and physical contingencies. Sources: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 17 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table D2: Proposed Detailed Contract Packaging

ADB Estimated Contract Responsi Contract Mode of Duration No Contract Ref Unit Costs Completio ble Description a Procurement (months) Objectio Starting ($ million) n Agency n Length A. Civil Works (km) 1 Dec. 1 Mar. 29 Oct. 1 CWP3 40 86 ICB 32 Road Fund 2011 2012 2014 1 Dec. 1 Mar. 31 Dec. 2 CWP 4 47 111.8 ICB 34 Road Fund 2011 2012 2014 Total Civil 87 197.8 Works B. Road Set Sustainability (count) Road Cross-border 1 Mar. 1 Jun. 31 Dec. Fund/Custo 1 1 5 QCBS 6 facility 2012 2012 2012 ms Committee Total 15 Equipment Person- Consulting C. month Services (total) CSP-1: Procurement 1 22 0.4 Individual 30 Extension of contracts under Project I Road Fund and safeguard support CSP-2: 02 Mar. 30 May 27 Nov. 2 Construction 438 3.5 QCBS 30 Road Fund 2011 2011 2014 supervision CSP-3: Road asset 1 Dec. 1 Mar. 1 Sep. 3 56 1.2 QCBS 10 Road Fund management 2011 2012 2013 support CSP-4: Community 4 6 0.2 Individual 12 Extension of contracts under Project I Road Fund development program Total Consulting 522 5.3 Services ADB = Asian Development Bank, CSP = consulting service package, CWP = civil works package, ICB = international competitive bidding, km = kilometer, QCBS = quality- and cost-based selection. a Cost estimates for civil works do not include taxes, physical, and price contingencies. Source: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 18 TASHKENT,SEPTEMBER 2010 Appendix 11

IMPLEMENTATION PLAN ID TaskName 09 2010 2011 2012 2013 2014 2015 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 1 PROGRAM IMPLEMENTATION PLAN 05.01 30.06 2 PROCESSING OF PROJECT 2&3 31.03 21.04 3 Board approval 31.03 4 Loan signing 11.04 5 Loan effectiveness 21.04 6 CIVIL WORKS 05.01 30.06 7 IMPLEMENTATION - TRANCHE 2 01.10 30.05 8 Procurement - CWP-2 01.10 31.05 9 Procurement of Civil Works Contract 01.10 31.05 10 Procurement of Goods 01.10 31.05 11 Civil Works - CWP-2 31.05 27.11 12 Implementation (85km) 31.05 27.11 13 Disbursements 31.05 30.05 14 Goods Package (Delivery of Goods) 30.09 15 IMPLEMENTATION - TRANCHE 3 01.06 30.06 16 Procurement - CWP-3 and CWP-4 01.06 28.02 17 Procurement of Civil Works Contract 01.06 28.02 18 Procurement of Goods 01.06 28.02 19 Civil Works - CWP-3 01.03 30.04 20 Implementation (40km) 01.03 29.10 21 Disbursements 01.03 30.04 22 Civil Works - CWP-4 01.03 03.06 23 Implementation (47km) 01.03 29.12 24 Disbursements 01.03 30.06 25 Goods Package (Delivery of Goods) 01.12 26 SERVICES 05.01 27 Procurement and Safeguard Support (All Projects) 01.03 07.09

Task ExternalTasks ManualSummary

Project:UZB_MFF_CAREC Milestone ExternalMilestone Startonly Date:Tue01.01.02 Summary InactiveSummary Finishonly ProjectSummary ManualTask Deadline

Note:ProcurementandSafeguardSupportConsultantswillbeprocuredunderProject1andcontractsexpectedtobeextendedforProjects2and3. ID TaskName 09 2010 2011 2012 2013 2014 2015 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 28 Recruitment of Consultants (All Projects) 01.03 09.09 29 Implementation period (month) 10.09 07.09 30 Construction Supervision for Project 2 01.10 27.11 31 ADB approval of shortlist and RFP 01.10 32 EA receiving proposals 03.12 33 ADB approval of final ranking 05.02 34 ADB approval of notice to proceed 05.03 35 Consultants mobilization 30.05 36 Implementation period (month) 30.05 27.11 37 Construction Supervision for Project 3 01.06 30.06 38 ADB approval of shortlist and RFP 01.06 39 EA receiving proposals 03.09 40 ADB approval of final ranking 30.11 41 ADB approval of notice to proceed 05.01 42 Consultants mobilization 01.03 43 Implementation period (month) 01.03 29.12 44 Road Asset Management Support for Project 3 01.07 15.04 45 CSRN for Tranche 2 01.07 46 ADB approval of shortlist and RFP 01.09 47 EA receiving proposals 30.11 48 ADB approval of final ranking 15.01 49 ADB approval of notice to proceed 15.02 50 Consultants mobilization 15.03 51 Implementation period (month) 15.03 15.04 52 Community Development Program for Project 3 01.07 30.06 53 ADB approval of shortlist and RFP 01.07 54 EA receiving proposals 11.07

Task ExternalTasks ManualSummary

Project:UZB_MFF_CAREC Milestone ExternalMilestone Startonly Date:Tue01.01.02 Summary InactiveSummary Finishonly ProjectSummary ManualTask Deadline

Note:ProcurementandSafeguardSupportConsultantswillbeprocuredunderProject1andcontractsexpectedtobeextendedforProjects2and3. ID TaskName 09 2010 2011 2012 2013 2014 2015 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 55 ADB approval of final ranking 15.09 56 ADB approval of notice to proceed 30.10 57 Consultants mobilization 30.11 58 Implementation period (month) 30.11 30.06

Task ExternalTasks ManualSummary

Project:UZB_MFF_CAREC Milestone ExternalMilestone Startonly Date:Tue01.01.02 Summary InactiveSummary Finishonly ProjectSummary ManualTask Deadline

Note:ProcurementandSafeguardSupportConsultantswillbeprocuredunderProject1andcontractsexpectedtobeextendedforProjects2and3. Appendix 12

PROCUREMENT PLAN AND TENTATIVE CONTRACT PACKAGES FOR PROJECTS 2 & 3 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

PROCUREMENT PLAN AND TENTATIVE CONTRACT PACKAGES FOR PROJECT 2

Project Information Country Republic of Uzbekistan Name of Borrower Republic of Uzbekistan Project Name CAREC Corridor 2 Road Investment Program – Project 2 Loan Reference TBD Date of Effectiveness TBD Project Cost Amount ($ million) $289 million Of which ADB Loan Amount ($ million) $240 million Executing Agency Road Fund, Ministry of Finance Approval Date of Original Procurement Plan TBD Approval of Most Recent Procurement Plan TBD Publication for Local Advertisement TBD Period Covered by this Plan 5 September 2010 – 5 August 2012 CAREC = Central Asia Regional Economic Cooperation, TBD = to be determined. a The plan will be updated annually, on rolling 18-month basis, on the anniversary of the date of loan effectiveness.

Procurement Thresholds, Goods and Related Services, Works and Supply and Install

Method Threshold International Competitive Bidding (works) > $3,000,000

Procurement Thresholds, Consultants Services

Methods Threshold Quality- and Cost-Based Selection (QCBS) > $1,000,000 by Full Technical Proposal 1,000,000 by Simplified Technical Proposal $600,000 by Biodata Technical Proposal

Table 1: List of Contract Packages in Excess of $100,000 Goods, Works, and Consulting Services Estimated Prior Contract Costs Procurement Date of Ref Review Comments Description ($ million) Methods Advertisement a Y/N Financed by 1. Civil Works 176.2 ICB TBD Y ADB Consulting QCBS and Financed by 2. 3.9 TBD Y Services individual ADB Financed by 3. Goods 15 ICB TBD Y ADB ADB = Asian Development Bank, ICB = international competitive bidding, N = no, QCBS = quality- and cost-based selection, UZB = Uzbekistan, Y = yes. a Cost estimates do not include taxes and duties, and physical contingencies. Sources: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 2: Proposed Detailed Contract Packaging

Estimate ADB Mode of Respon Contract d Costs Duration No Contract Contract Ref Unit Procuremen sible Description ($ (months) Objecti Starting Completion a t Agency million) on Length A. Civil Works (km) 1 1 Jan 29 Apr. 28 Oct Road CWP 1 85 ICB 18 176.2 2011 2011 2013 Fund Total Civil 85 176.2 Works B. Road Set Sustainabilit (count) y 1 Road Road 1 Jun. 1 Sept. Fund/Tr 115QCBS8 30 Apr. 2011 Equipment 2010 2010 ansyulq urilish Total 115 Equipment Person Consulting C. -month Services (total) 1 CSP-1: Procurement Extension of contracts under Project I and 22 0.4 Individual 36 safeguard support 2 CSP-2: 02 Mar. 30 May Road 27 Nov. 2014 Construction 438 3.5 QCBS 30 2011 2011 Fund supervision

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

PROCUREMENT PLAN AND TENTATIVE CONTRACT PACKAGES FOR PROJECT 3

Procurement Thresholds, Goods and Related Services, Works and Supply and Install

Method Threshold International Competitive Bidding (works) > $3,000,000

Procurement Thresholds, Consultants Services

Methods Threshold Quality- and Cost-Based Selection (QCBS) > $1,000,000 by Full Technical Proposal 1,000,000 by Simplified Technical Proposal $600,000 by Biodata Technical Proposal

Table 3: List of Contract Packages in Excess of $100,000 Goods, Works, and Consulting Services Estimated Prior Contract Costs Procurement Date of Ref Review Comments Description ($ million) Methods Advertisement a Y/N Financed by 1. Civil Works 197.8 ICB TBD Y ADB Consulting QCBS and Financed by 2. 5.3 TBD Y Services individual ADB Financed by 3. Goods 5 ICB TBD Y ADB ADB = Asian Development Bank, ICB = international competitive bidding, N = no, QCBS = quality- and cost-based selection, UZB = Uzbekistan, Y = yes. a Cost estimates do not include taxes and duties, and physical contingencies. Sources: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4: Proposed Detailed Contract Packaging

Estimate ADB Mode of Contract Responsi Contract d Costs Duration No Contract Ref Unit Procuremen Completi ble Description ($ (months) Objecti Starting a t on Agency million) on Length A. Civil Works (km) 1 Dec. 1 Mar. 29 Oct. Road 1CWP34086ICB32 2011 2012 2014 Fund 1 Dec. 1 Mar. 31 Dec. Road 2CWP 447111.8ICB34 2011 2012 2014 Fund Total Civil 87 197.8 Works B. Road Set Sustainability (count) Road Cross-border 1 Mar. 1 Jun. 31 Dec. Fund/Custo 1 1 5QCBS6 facility 2012 2012 2012 ms Committee Total 15 Equipment Person Consulting C. -month Services (total) CSP-1: Procurement 1 22 0.4 Individual 30 Extension of contracts under Project I Road Fund and safeguard support CSP-2: 02 Mar. 30 May 27 Nov. 2 Construction 438 3.5 QCBS 30 Road Fund 2011 2011 2014 supervision CSP-3: Road asset 1 Dec. 1 Mar. 1 Sep. 3 56 1.2 QCBS 10 Road Fund management 2011 2012 2013 support CSP-4: Community 4 6 0.2 Individual 12 Extension of contracts under Project I Road Fund development program Total Consulting 522 5.3 Services ADB = Asian Development Bank, CSP = consulting service package, CWP = civil works package, ICB = international competitive bidding, km = kilometer, QCBS = quality- and cost-based selection. a Cost estimates for civil works do not include taxes, physical, and price contingencies. Source: Road Fund and ADB estimates.

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 ASIAN DEVELOPMENT BANK

GOVERNMENT OF THE REPUBLIC OF UZBEKISTAN

THE REPUBLICAN ROAD FUND UNDER THE MINISTRY OF FINANCE

CAREC Corridor 2 Road Investment Program ADB PPTA No. 7375-UZB FF Environmental Impact Assessment for Project III II VOLUME 2 NN AA LL

RR EE PP OO Submitted by: RR TT

Tashkent, September 2010 (QYLURQPHQWDO6DIHJXDUGV,QYHVWLJDWLRQ

(QYLURQPHQWDO,PSDFW$VVHVVPHQWIRU3URMHFW1HZ 7XUWNXOWR%HUXQL%\SDVV NP

6HSWHPEHU

$'%7$8=%&$5(&,,5RDG&RUULGRU,QYHVWPHQW 3URJUDP

3UHSDUHGE\ 7KH5HSXEOLF5RDG)XQGDQG8]EHNLVWDQ0LQLVWU\RI)LQDQFH TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

TABLE OF CONTENTS

Executive Summary……………………………………………………………………………… v 1 Introduction ...... 1 1.1. The Project...... 1 1.2. The Proponent and Purpose of the EIA...... 1 1.1.1 The Proponent...... 1 1.1.2 Purpose of the EIA ...... 2 1.2 Project Status and Documentation ...... 2 1.3 Extent and Boundaries of the EIA Study ...... 3 1.4 Content of the EIA and Methodology Applied ...... 4 1.5 Acknowledgement...... 4 1.6 Policy, Legal and Administrative Framework ...... 5 2 Description of the Project ...... 8 2.1 Type of Project and Category...... 8 2.2 Need for Project ...... 8 2.3 Location ...... 8 2.4 Size and Magnitude of Operation ...... 8 2.4.1 The Road...... 8 2.4.2 The Bridges ...... 10 2.5 Schedule For EIA Approval, EMP Implementation ...... 10 2.6 Project Layout and Components of the Work ...... 11 3 Description of the Environment...... 12 3.1 Physical Resources...... 12 3.1.1 Climate and Topography ...... 12 3.1.2 Air Quality and Noise ...... 12 3.1.3 Topography, Geology, Soils and Hydrology...... 12 3.1.4 Surface Water...... 13 3.1.5 Groundwater...... 13 3.1.6 Ecological Resources ...... 13 3.1.7 Flora and Fauna ...... 14 3.1.8 ESAs, Rare and Endangered Flora and Fauna...... 15 3.2 Economic Development ...... 15 3.2.1 Agricultural and Mineral Development ...... 15 3.2.2 Infrastructure and facilities...... 15 3.2.3 Transportation (road, rail air) ...... 16 3.2.4 Power Sources and Transmission ...... 16

IKS GROUP OF COMPANIES iTASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

3.2.5 Industries and Employment- ...... 16 3.3 Social and Cultural Development ...... 17 3.3.1 Population, Communities and Land Planning...... 17 3.3.2 Quality of Life Values...... 18 3.3.3 Socioeconomic Profile ...... 18 3.3.4 Public Health ...... 18 3.3.5 Education ...... 19 3.3.6 Recreational Resources and Development...... 20 3.3.7 Cultural Values ...... 20 3.4 Human Settlement in the RoW...... 20 3.4.1 People ...... 20 3.4.2 Landuse...... 20 3.5 Archaeological and Historical Treasures ...... 21 4 Analysis of Alternatives ...... 22 4.1 Alternative Solutions and Designs...... 22 4.1.1 The Preferred Alternative...... 25 5 Impacts, Mitigative and Monitoring Measures: The Preferred Option ...... 27 5.1 Per-Construction Period...... 27 5.1.1 Commitment to and Application of EIA Documents and Outputs...... 27 5.2 Construction Period...... 30 5.2.1 Air Quality and Noise ...... 30 5.2.2 Water Quality and Hazardous Materials...... 32 5.2.3 Soil Loss and Visual Intrusion...... 35 5.2.4 Health and Safety ...... 36 5.2.5 Inadequate Implementation Infrastructure...... 38 5.2.6 Loss of Cultural Treasures...... 38 5.3 Operating Period...... 39 5.3.1 Air Quality and Noise ...... 39 5.3.2 Water Quality and Hazardous Materials...... 43 5.3.3 Soil Loss, Erosion and Visual Intrusion...... 43 5.3.4 Implementation Infrastructure ...... 43 5.4 Irreversible and Irretrievable Impacts ...... 44 5.5 Cumulative Impacts and Mitigative Measures ...... 44 5.6 Other Potential Impacts (Based on ADB SPS 2009) ...... 44 5.7 Categorization of Impacts...... 46 5.7.1 Preconstruction Period ...... 46

IKS GROUP OF COMPANIES ii TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

5.7.2 Construction Period ...... 46 5.7.3 Operating Period ...... 46 5.8 Proposed Environmental Enhancements...... 46 5.9 Social Sector Impacts...... 47 5.9.1 Social Economic Conditions ...... 47 5.9.2 Poverty Impact...... 47 5.9.3 Resettlement ...... 47 6 Grievance Redress Mechanism...... 47 7 Information Disclosure, Consultation and Participation...... 48 7.1 Logistical Details ...... 48 7.2 People Delivering the Workshop and Information Disclosed ...... 48 7.3 Summary of Comments by Participants ...... 49 7.4 Summary of Reply by Workshop Team...... 49 7.5 Use of Consultation Results ...... 49 7.6 Follow Up Program ...... 49 8 The Environmental Management Plan ...... 49 8.1 The Environmental Mitigation Actions (EMiA)...... 50 8.2 The Environmental Monitoring Actions (EMoA) ...... 50 8.2.1 Construction and Operating Period Actions ...... 51 8.3 Performance Indicators ...... 52 8.4 Implementation Arrangements ...... 52 8.5 Institutional Capacity, Needs and Proposed Strengthening ...... 53 8.5.1 The Safeguards Team...... 53 9 Capital and Re-Occurring Mitigation and Monitoring Costs...... 54 9.1 Cost of Environmental Mitigation and Monitoring...... 54 9.2 Cost of Social Development Programs and Resettlement ...... 55 9.3 Social Development ...... 55 9.4 Resettlement...... 55 10 Conclusions and Recommendations...... 56 10.1 Conclusions ...... 56 10.2 Recommendations ...... 57

List of Tables Table 1. Description of MFF Road Tranche III Sections for Hwy A-380...... 2 Table 2. Indicative Tranche 3, Package 4 Implementation Schedule ...... 10 Table 3. Employment Indicators Turtkul, Beruni & Ellikkalla Districts ...... 17 Table 4. Income and Expenditure Indicators Per Households in Study Area...... 18

IKS GROUP OF COMPANIES iii TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

Table 5. Comparison of education among women and men in the project districts...... 20 Table 6. Summary of Land Use (by %) in Immediate Area of Bypass; Km 581-628 (in ha)...... 21 Table 7. Comparison of Alternatives ...... 23 Table 8. Traffic Projections for Km 581-626.1 of New Bypass, based on 01/’10 Traffic Survey ...... 39

Table 9. Noise (L10 & Leq) levels at 10 and 50 m for edge-of-pavement, 2.5m height: 0600-2400h...... 40 Table 10. Predicted air quality at five sensitive locations 100m distance of the bypass C/L...... 42 Table 11. Estimated Capital and Re-occurring Mitigation and Monitoring Costs for the..... 54

List of Figures and Maps

Figure 1. Uzbek. EIA document submission and approval process…………………………….7 Figure 2. Typical cross section for bypass road, for 2 and 3 m vertical alignment ...... 9 Figure 3. Canal to be crossed by project Road and riparian vegetation; ...... 15 Figure 4. Remnant lakes created by groundwater upwellings...... 33 Figure 5. Wetland in Ellikalla District, 10km from Kyzylkum Desert:...... 34 Figure 6. Structure of Project Implementation Team and Within that the PMU...... 38

Map 1. Centerline of preferred bypass alignment and options considered between Km 589-593...... 3 Map 2 Southern Karakalpakstan kallas and Bypass Alignment: Source: http://www.karakalpak.com/tourancient.html ...... 22 Map 3. The Selected Bypass (Option C.)...... 26

Annexes Annex A: Table 1-Environmental Management Plan: Mitigation Actions

Table 2-EnvironmentalManagement Plan: Monitoring Actions

Annex B: Newspaper Announcements Published in Local Newspapers in Nukus

Annex C: Consultation Brochures (consultation 1 and 2) that were distributed

Annex D: Consultation Meeting Minutes and Attendance Sheets

Annex E: Presentation Given in Turtkul and Beruni August 2-3 and August 27th, 2010.

IKS GROUP OF COMPANIES iv TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

List of Acronyms and Special Terms

Item Units Definition AADT No veh/day Average Annual Daily Traffic AP No. Affected Person (as in land or assets losses) CAREC Central Asia Regional Economic Cooperation C/L Center line of roadway; abbreviation 3 CO2 mg/cm Carbon dioxide COI m Corridor of Impact ( a width over the road centerline considered the direct impact width) CSC Construction Supervision Consultant dBA dBA unit A measure of audible (the ear) sound District District Administrative Region (in Russian-rayon) ESA Environmentally Sensitive Area EMiA EMP: Mitigation Measures Table EMoA EMP: Monitoring Measures Table EMP Environmental Management Plan FIDIC Fédération Internationale Des Ingénieurs-Conseils (Int’l Federation of Consulting Engineers)-Provide standard construction contract templates used around the world for international competitive bidding. Fly-over A road or bridge constructed to pass over an existing road permitting traffic to pass over the existing road Glavgosekoexpertiza The Environmental Assessment Department within Goskompriroda Goskompriroda Uzbek National Environmental Management Agency GRC Grievance Redress Committee KMK Abbrev. for any one of hundreds of Uzbekistan’s legal standards and rule (In Russian SNIP) Leq dBA General sound level occurring over a 24 hour period Lnight dBA Sound levels measured during the hours of darkness L10 dBA Sound level exceeded 10% of the time. LARAP Land Acquisition and Resettlement Action Plan, also RAP or LAR MFF Multi-tranche Financing Facility-a type of ADB loan 3 NO2 mg/m Nitrate or Nitrogen Dioxide PCU Passenger Car Unit ( a coefficient used to bring all vehicle types to the equivalent of passenger car counts, e.g. 1 articulated truck equals 3 PCUs PEIA Preliminary Environmental Assessment, Screening or Terms of Reference Document prepared as a 1st step of the Uzbek environmental assessment process PMU Program Management Unit, established to manage a single large project, such as this MFF PSIA Poverty and Social Impact Analysis Region Regional Administrative Region (in Russian Oblast) RRF Uzbekistan Republic Road Fund SP Subproject or section package ( road sections as packaged for the MFF) SPS ADB’s 2009 Safeguard Policy Statement; or new environmental and social safeguard standards ST Safeguards Team under the PMU CH mg/m3 Concentration of hydrocarbons in the air 3 TSP10 micrograms/m Suspended particulate matter , with particles 10 microns in size, and a danger to lungs Uzavtoyul Uzbekistan’s Road Maintenance & Operation Agency UZB Republic of Uzbekistan

IKS GROUP OF COMPANIES vTASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

EXECUTIVE SUMMARY

1. This project is Package 3.2 of the CAREC II Road Corridor Investment Program. It involves the construction of new 47 km section of the national highway A-380 around the towns of Turtkul and Beruni, in Karakalpakstan Autonomous Region or Uzbekistan. Both Uzbekistan and the ADB have classified this project as requiring a Category A environmental analysis, that is, needing a full environmental impact assessment (EIA). The assessment, including two full sets of consultations, was completed between June and September 2010, with field surveys completed in July and August. The Major conclusions and recommendations by Uzbekistan and its consultant are as follows.

2. For the pre-construction period (0.75 years), six mitigation-monitoring tasks were identified, all focusing on designing ways to avoid future impacts. Important actions will include integrating the environmental mitigation and monitoring steps into the bid documentation, and ensuring that adequate safeguard compliance monitoring and reporting is budgeted for the project. . RRF will ensure that the EIA and its EMP are translated into the project area’s local working language. Finally, RRF will lead the organization of a 1-day workshop to be held in Beruni, to address implementation of the EMP, compliance monitoring, enforcement and reporting.

3. The 47 km long road corridor will be along a new alignment through agricultural lands and settlement areas, and therefore will have important impacts, all manageable and addressed through the application of well known mitigative actions. This mitigative and monitoring actions focus on ensuring contractor good-housekeeping practices, construction dust and noise control, protection of small wetlands and lakes, and protection against erosion via rapid rehabilitation and revegetation of cleared areas. The monitoring of the storage, handling and disposal of petroleum products, according to Uzbekistan norms and internationally accepted standards will be strictly enforced. Field measurements will involve noise only. Air quality monitoring will; focus on reporting of dust and black smoke from the construction site.

4. Local villages expressed specific interest in undertaking replanting and revegetation work on sections of road passing through their areas. To that end the PMU will sign a number of contracts with villages to plant and maintain specific cleared area for a 3-year construction period. RRF views this as an excellent community-level economic benefit of the project. These contracts are scheduled to continue into the project operating period.

5. In total more than 200 people attended the two sets of consultation, representing around 20 different disciplines and service organizations. 25% of the participants were women. Issues raised were air quality and noise, safety associated with the new road and proper control of contractors. Participants also pointed out that without improved and some new feeder roads the new highway would be of little benefit to local people. Further, they expressed an interest in undertaking replanting and maintenance work, as contracted assignments.

6. Fourteen construction period (3 years) impacts and associated mitigative and monitoring measures were defined in detail in the environmental management plan provided as Annex A of the EIA. The RRF and its PMU will ensure credible, consistent and timely reporting of construction period mitigation and compliance monitoring actions. These data will be used in the semi-annual report to the ADB.

7. Five operating period mitigative and monitoring tasks (3.0 years) were also defined.

IKS GROUP OF COMPANIES vi TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

8. The amount of residual environmental damage due to the project will be directly related to how well the RRF meets its environmental responsibility, and how it uses the EMP and enforces the contractors’ mitigation obligations defined in the EMP (Annex A) If properly used, there should be few significant residual environmental effects.

9. The loss of local air quality and increase in noise along this new road as traffic volume builds will be important residual effects. Four sensitive sites have been identified and one or a number of noise reduction measures have been planned and budgeted. Noise measurements will be undertaken using a project noise meter and these data used to establish noise mitigation options. The most appropriate measure (earth berms with vegetation, barriers, insulating windows, speed controls) will be decided jointly between the PMU and the local officials acting on behalf of the settlements affected.

10. Mitigating air quality will involve measures such as limiting the speed through sensitive sites and encouraging better enforcement of road worthiness inspections, planting of vegetation barriers along A 380 will be attempted. It is hoped that with the vehicle fleet getting younger, emission equipment improving and better refined fuels, the emissions will be kept to an acceptable limit. New dwellings will not be permitted within a 50m wide zone beyond the edge of the road RoW. The purchase and use of portable tailpipe emission testing equipment will be discussed and a program may be launched depending on available funds and discussions within the government and ADB.

11. The following are recommendations and commitments made by RRF on behalf of Uzbekistan to implement the EIA’s Environmental Management Plan.

(i) RRF will recommend to the government that institutional capacity building within its own ranks and Uzavtoyul be initiated via a 1 day workshop; and that a Safeguards Team be established within the Program Management Unit before construction begins.

(ii) RRF will instruct its PMU and the CSC to carefully review the EIA and its EMP (EMiA and EMoA tables), and incorporate these two matrices into its contract with contractors as executable/ discrete pay items. Secondly RRF will assign the EMP compliance monitoring to a specific individual from the Safeguards Team of the PMU.

(iii) RRF recommends that the EMP including all mitigative and monitoring actions be implemented and completed, based on careful consultation with experts and local authorities, and that the basic intent of each set of measures remain unchanged.

(iv) RRF recommends that all required reporting as defined in the EMoA table be undertaken as specified and that this documentation be included in the semi- annual progress reporting to the ADB under the subheading Environmental Impact Mitigation and Monitoring.

(v) RRF will purchase a portable sound meter to monitor construction period noise as well as noise associated with the operating road to identify the best noise mitigation measures for at least the four sensitive sites identified by the consultant.

(vi) RRF recommends that the purchase and use of two portable tailpipe emission testing units by seriously considered, funding discussed internally and with ADB, and a emission abatement program launched along A-380, in association with appropriate enforcement ,already being applied on other roads.

IKS GROUP OF COMPANIES vii TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT POGRAM FINAL REPORT

12. Total estimated costs for environmental, mitigation and monitoring conducted over 6.5 years (intermittently) will be USD 166,200.00 plus a 10% contingency (Table 11). If, as is standard practice in most construction contracts, erosion control and revegetation of cleared areas and the construction or noise barriers, is included in the construction budget, the environmental safeguards costs will be reduced to USD 82,000.00 plus the 10% contingency.

(vii) RRF recommends that the USD 166,200 plus a 10% contingency budget identified for 6.5 year mitigation and monitoring period be adopted; with provision for reduction if revegetation and replanting and noise barrier construction are items already budgeted for in the construction contract.

13. If the actions defined in the EMP are followed and technically knowledgeable people implement them, all environmental requirements for this project will be met and no additional assessments will be needed.

IKS GROUP OF COMPANIES viii TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

1 Introduction

1.1. The Project 1. Tranche III of the MFF load project to improve national highway A 380 is being prepared by the Republic Road Fund (RRF). It has two components; a 40 km section from km 315 to 355 which is a category C sub-project (based on the ADB classification) and a new 47 km road, created as a bypass of Turtkul and Beruni in Karakalpakstan, a category A project. The bypass road begins at km 581 and follows the existing A-380 alignment for 5 km requiring widening within the existing RoW (Map 1). From km 586 to km 628 the new alignment makes a wide Northeast arc around Turtkul and Beruni ending at km 628, some 14 km East of the existing A-380.

2. Another 16 km-long project is being planned to link the end of the bypass to A 380 to the north towards Nukus. A 14 km feeder road is planned to go directly west from the end of the ADB-funded road to intersect with A380 at the existing km 625 and then continuing west to the new Amudarya River Bridge. Therefore, there will be interchanges at km 586, at km 625 of the existing A-380 and another where the northward extension meets A-380.

1.2. The Proponent and Purpose of the EIA

1.1.1 The Proponent 3. The Republic Road Fund (RRF) under the Ministry of Finance is the project proponent and will act as the overall technical and administrative authority for this MFF. It is the executing agency. Leading the day-to-day implementation of the bypass project will be a Program Management Unit (PMU) located within the RRF. The PMU will also incorporate all consulting services under the project, including assistance to the provinces and will oversee the conduct of feasibility studies by project consultants.

4. Responsibilities of the executing agency (RRF), beyond those delegated to the consultant include:

(i) overseeing the EIA, including submission to Glavgosekoexpertiza for government review, ensuring that all documentation is compliant with UZB and ADB requirements;

(ii) obtaining necessary permits and/or clearance, as required, from Goskompriroda and other relevant government agencies, ensuring that all necessary regulatory clearances are obtained before commencing any civil work; and,

(iii) submitting the final approved EIA, and its EMP and other documents to ADB , as necessary.

5. The RRF will implement the Tranche III package. That is, they form a PMU which will hire a CSC and also establish a Safeguards Team to oversee the planning and implementing of monitoring and mitigation measures during detailed design and construction of the bypass. The actual work during the construction period will be completed by the contractors. For the operating period the responsibility will be handed over to the Region-level Uzavtoyul. The PMU’s responsibilities will include:

(i) ensuring that EMP tasks including relevant mitigation and monitoring measures needing to be incorporated during the pre-construction stage are implemented;

(ii) ensuring that any EMP tasks including relevant mitigation and monitoring measures needing to be incorporated during the construction stage by the contractor are included in the bidding documents and are implemented;

IKS GROUP OF COMPANIES 1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

(iii) ensuring that contractors have access to the EIA reports of the projects, confirming that contractors understand their responsibilities to mitigate environmental problems associated with their construction activities;

(iv) investigating and reporting on environmental effects stemming from any design and construction changes added after the detailed design is completed, leading to unpredicted environmental impacts;

(v) submission to the ADB of semi-annual reports on implementing EMPs, including any emergency program;

(vi) submitting project environmental mitigation and monitoring completion report to ADB, three years after the start of the operating period of the project; and,

(vii) ensuring that EMP tasks including relevant mitigation and monitoring measures needing to be incorporated during the operating period are implemented.

1.1.2 Purpose of the EIA 6. ADB classified this project as requiring a full EIA since this is a new road, passing through new territory requiring a more intensive investigation than a simple upgrading. The EIA will identify the likely impacts during the planning, construction and operations of the bypass propose mitigative measures and suggest appropriate monitoring actions to ensure compliance. The EIA tasks lead to the completion of a plan that will specify ways to either eliminate any significant impacts or reduce them to acceptable levels, namely reducing them to within Uzbekistan standards and norms, and ADB’s requirements. The EIA will also identify the reporting and monitoring responsibilities such that for each mitigative action a person responsible is identified, and adequate reporting takes place.

1.2 Project Status and Documentation 7. The CAREC 2 project is the second in a series of projects to fully upgrade the country’s main N-S and E-W highway A-380. This upgrading includes not only roadwork, but also improvement to the management and maintenance capacity of the national and region-level road agencies. Since this CAREC 2 is designed as a Multi-tranche Financing Facility (MFF), an understanding of the nomenclature of components of this road improvement project is important. The MFF loan modality permits a government to proceed with a larger project via a number of separate loan packages, thereby adding flexibility and a longer timeframe for the delivery of preparatory materials. As such, this project consists of three tranches, and within these four work packages for the upgrading of Highway A-380 between Gazli and Urgench, located in Khorezm Region and The Republic of Karakalpakstan respectively (Table 1). It is Tranche III Package 3.2 (Table 1) for which this EIA was undertaken.

Table 1. Description of MFF Road Tranche III Sections for Hwy A-380 Tranche 3: Package 3.1: KM 315-355 Km 40 Tranche 3: Package 3.2: KM 581-628 Km 47 See Map 2 for details on location

8. Tranche 3 will have two sections, 3.1 and 3.2, with Package 3.1 comprising 40km between Km 315-355 and Package 3.2 between km 581-628 (47km). Civil works under No. 3.2 will include major bypasses for the towns of Turtkul and Beruni, requiring about 40 km of new highway, the construction of 12 new bridges across irrigation canals, and two railway fly-overs, triggering a complete environmental assessment.

9. A complete Feasibility Study has been prepared by the consultant and it is being used as a reference and baseline document for this EIA.

IKS GROUP OF COMPANIES 2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

1.3 Extent and Boundaries of the EIA Study 10. The EIA was initiated in June 2010 and extended into early September 2010, with some preliminary data collection taking place earlier in 2010. The EIA draft was submitted to the ADB in September 2010.

11. As shown on the map (Map 1), this project starts at km 581 and ends at km 628. The general corridor of impact will be a 200m wide centered over the road centerline for the entire 47 km. Since there will be up to 26 small sand and clay borrow pits and access roads established, 50 to 200m from the road edge, the corridor of impact in those areas will be increased to 400m centered over the road centerline. At the two large interchanges (Km 583 and 646) the corridor width will be extended to 250m in either side of the road centerline. Air and noise impact prediction limits will generally remain within a 100m except at sensitive sites such as residences and schools (km 620.4) where it will extend to the nearest sensitive receptor (e.g. a house or school).

12. Since the canals are all manufactured features no special environmental considerations will be given other than minimizing the disturbance of the shoreline riparian forest patches, which although created are now 60 years old and constitute ecologically important ecotopes (Figure 3). There are no natural flowing waters crossed. There are two unusual freshwater ponds and wet areas, some many hectares in size that the road must cross or pass very close to and for these their entire area was included in the assessment.

13. There are no protected or conservation areas and almost no culturally and historically significant sites within 5 km of either side of the 200 m wide corridor of impact for the entire 47 km project road. Guldursun Kalla, an ancient sandstone fort is located around 2.5 km East of the RoW, but with no direct access from the new road.

Map 1. Centerline of preferred bypass alignment and options considered.

IKS GROUP OF COMPANIES 3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

1.4 Content of the EIA and Methodology Applied 14. In addition to introductory and linking text, the EIA contains six key sections:

(i) Description of existing conditions with a focus on sensitive components of the environment

(ii) identification of Impacts during design, construction and operating periods

(iii) Specification of mitigative actions and monitoring follow-up for all significant effects likely to occur.

(iv) a record of consultation and information disclosure as well the follow up actions taken;

(v) the Environmental Management Plan (EMP) specifying all mitigative and monitoring actions, applying relevant public input as well specifying reporting requirements;

(vi) an EMP implementation schedule; and,

(vii) cost of completing these mitigative and monitoring actions over the design, construction and operating periods of the project.

15. This EIA required field collection of data on landuse and topographic features. A 7 day collection period was completed in two visits—with a complete survey of the road alignment in June and then again in August, including an additional 14 person-days.

16. Further, a Google Earth high resolution map of the corridor was completed as part of the resettlement plan inventory work and was also used for the EIA. The alignment was plotted on the Google earth map using GPS coordinates and then features on either side of the centerline recorded. It was during these and the field walking surveys that the two freshwater areas were identified and were examined in more detail.

17. All predictions of construction period impacts were based the consultants experience, field collections data from the RRF as well as consultation with people in the affected districts. Predictions of future noise were done through the application of nomograms, accounting for traffic volume, traffic composition , average speed and the ground cover within 50 -100 m of the roadside ( Chap. 4 Mulholland, 1981, Noise Assessment and Control). Air quality changes were estimated by inserting traffic volume composition, topographic, vehicle speed, pavement conditions, etc, into the CREDO model ( provided by Uzavtoyul) which then generated the air quality conditions at 4 locations for 2010, 2020 and 2030.

1.5 Acknowledgement 18. The project team consisted of Mr. Geza Teleki, International Environmental specialist and ecologist, Mr. Kudyar Kamolov, Water Resources Management Expert, Mr.Babajanov Kalon, air and noise modeling specialist and road planning engineer and Mr. Damir technical translator. Mr. Kamalov and Kalon were undertaking work intermittently since June 2010; with Mr Kamalov completing two field trips before Mr. Teleki arrived. The team spent parts of July and August in the field travelling the alignment and conducting two consultation sessions. District staff from both Turtkul and Beruni participated in the meeting and provided the minutes attached to this EIA. RRF and Uzavtoyul staff from Tashkent, Urgench, Nukus, Turtkul and Beruni also provided input as required. Specialist water resources and land management specialist in Turtkul were also consulted on surface water and wildlife conditions in the corridor. All Inputs to the EIA are gratefully acknowledged.

IKS GROUP OF COMPANIES 4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

1.6 Policy, Legal and Administrative Framework 19. Since Independence, many laws and regulations on environmental issues have been developed in Uzbekistan. The Law on Environmental Protection (1992) established a legal, economic and organizational framework for environment protection, ensuring sustainable development and defining principles, including the conduct of environmental studies1. The State Committee for Nature Protection (Goskompriroda) is a primary environmental regulatory agency, and reports directly to the Parliament. Goskompriroda is responsible for supervising, coordinating and implementing environmental protection and controlling the usage and renewal of natural resources at the central, region and district levels. The mandate of Goskompriroda is based on the Regulation on the State Environmental Committee of the Republic of Uzbekistan (1996).

20. The organizational structure of Goskompriroda consists of a central body in Tashkent, and provincial and district branches and agencies for scientific and technical support. In Tashkent, Goskompriroda consists of various authorities and departments. The authorities have responsibilities in the fields of protection of air, water and land resources. The departments have technical responsibilities related to environmental standards, environmental law, international relations, use of environmental funds, etc. Three remaining units deal with economics, publicity, EIA and ecological (environmental) review (State Ecological Expertise).

21. Goskompriroda, through its State Ecological Expertise Department (SEE) (Glavgosekoexpertiza) reviews (Figure 1), inter alia; environmental impact reports, promotes the use of low waste technologies, prepares and implements ecological regulations and standards, coordinates environmental programs and elaborates the structure for environmental monitoring and governance of nature reserves. It approves regulations proposed by the environmental committees at various levels and issues permits for pollutant emissions and may prohibit projects and construction works that do not comply with environmental legislation. Any EIAs or IEEs prepared as part of this project would need review and clearance by the SEE at the national level as well as Region-level officials.

22. In addition to the 1992 Law in Environmental Protection, Goskompriroda uses the following additional legal instruments to manage environmental issue related to road development:

Law on Protection and Management of Flora Approved in 26.12.07, 543-1

Law on Wildlife Protection and Management. Approved in December 26 1997Law on Protection and Management of Flora. Approved in December 26 1997// New Laws of the Republic of Uzbekistan. 18th Edition, p.207.

Law on Forest 770-1. Approved in 15.04.1999

Law on Introduction of Amendments into the Law on Nature Protection and On Specially Protected Environmental Areas. Approved in May 5-6 1994// New Laws of the Republic of Uzbekistan. 10th Edition, p.242. (Biodiversity)

Law on Atmospheric Air Pollution. 1999. Including ambient air quality standards, emission standards and Guidelines for Application (#469-1999).

Law on Water Pollution. 1999

1 At present Uzbekistan uses a more reactive, as opposed to preventative, approach to management of environmental impacts of development projects.

IKS GROUP OF COMPANIES 5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Law on Mineral Resources, October 23, 1994 (borrow areas and quarries)

Law on Ecology Security (Safety), 2005

Law on Health Safety and Environment, May 6, 1993 (Occupational Health and Safety).

KMK (Standard) 301012-2000, “Health Safety in construction ”

Rules and Norms developed by Road Research Institute in December 2008 on health protection while working in asphalt making plant and other quarries used in road construction

Law on Protection Archeological Monuments, October 13, 2009

23. Uzbekistan has a large set of specific standards or ‘KMKs’ that refer to the handling and disposal of specific wastes ranging from sewage to hazardous wastes. There is no umbrella regulation and RRF is consulting Goskompriroda for details regarding specific disposal, especially related to work camp waste and construction equipment and servicing waste oils, etc.

24. Uzbekistan has no biodiversity legislation per se, but it’s Law on Introduction of Amendments into the Law on Nature Protection and On Specially Protected Environmental Areas. Approved in May 5-6 1994// New Laws of the Republic of Uzbekistan. 10th Edition, p.242. (Biodiversity) implies the protection of biodiversity.

25. Uzbekistan’s Law on Ecological Expertise (Assessment) dated from May 25, 2002, No. 73-11 addresses Environmental Assessment and defines for which types of projects an EIA must be undertaken. Preparation of the review reports and approval of projects on environmental grounds is regulated by the Resolution of the Cabinet of Ministers No. 491 of 31 December 2001. Annex 1 of Resolution 491 defines four categories of projects and the associated environmental assessment requirements. Category I Projects require a preliminary EIA (PEIA) defining how and to what extent the required EIA will be conducted, followed by a complete EIA. Category I and II are undertaken and evaluated at the central level only.

26. Category II projects are completed in three stages by the State level agency, with the Region level agency actively involved. As with Category I projects, these environmental assessments involve three stages:

i. Stage 1. Draft Environmental Impact Statement (PEIS); ii. Stage 2. Environmental Impact Statement Preparation ; and iii. Stage 3. Statement on Environmental Consequences. 27. At Stage 3 Goskompriroda, working at both the state and region levels, defines the pollution limits the project is permitted to reach.

28. The assessment of Category I is under central jurisdiction with Glavgosekoexpertiza involvement. The Category I process is most similar to the ADB`s EIA.

29. Category IV project are exempted from any EIA requirements, other than the submission of a project description and proof of Category IV status.

30. Uzbekistan prescribes the maximum review period for Goskompriroda as 30 days review for Category I and II projects and 20 days for category III and 10 days for Category IV projects.

IKS GROUP OF COMPANIES 6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

31. The EA process in Uzbekistan needs further strengthening before sustainable development can be fully achieved. Some of these gaps were to be filled via training workshops and in particular a World Bank project completed in 2005.

Figure 1. Uzbek. EIA document submission and approval process

32. Unfortunately that training was not given to the Uzbekistan Road Operation and Management Agency (UZAVTOYUL) or RRF staff; therefore a large gap remains.

33. For this MFF, Tranche 3 (SP3.2) is a UZB Category II project and will require the three stage Uzbek process, or the ADB`s Category A EIA. The consultant is preparing the ADB-style EIA on behalf of UZB’s RRF.

34. UZB’s Glavgosekoexpertiza (Environmental Assessment Department) has the legislated responsibility to review and approve large environmental assessment at all stages of the development. It is the proponents responsibility to submit the preliminary as well the draft final EIA to Glavgosekoexpertiza for review and approval (Figure 1). The draft submission must be either accepted for review or rejected within 15 days. Once the EIA has been approved the proponent can move ahead with various permitting task, followed by the mobilization of the contractors (provided that resettlement issues have been fully dealt with).

IKS GROUP OF COMPANIES 7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2 Description of the Project

2.1 Type of Project and Category 35. The bypass is one of four road projects, the only one involving construction of a new road. As a new road through agriculture and some residential areas it is designated as a Category A project. Therefore, a full environmental impact assessment (EIA) is required.

2.2 Need for Project 36. Uzbekistan is involved in an ongoing program to upgrade its main national highway, A 380. Between km 581-628, A 380 passes through the Amudarya agricultural floodplain with large numbers of people concentrated on both sides of the roadway. It is the major throughway for Khorezm, Urgench and Nukus, the capitals of three provinces. Further, the road passes through the urban centers of Turtkul and Beruni, towns with populations of > 50,000 people. This area represents a major traffic bottleneck, reflected not only by congestion but an increasing risk of severe accidents for traffic travelling from and to Urgench as well as from Khorezm to Nukus and beyond. The government therefore considers this section as a key link in completing the A 380 upgrading.

2.3 Location 37. The new bypass is fully within southern Karakalpakstan in the Districts of Turtkul, Eli Kalla and Beruni. A centerline of the preferred and alternative alignments has been surveyed and is shown on Map1.

2.4 Size and Magnitude of Operation

2.4.1 The Road 38. Of the 47 km project length, the first five will involve a widening of A 380 by at least 7.5 meters plus paved shoulders (Figure 2). Widening will take place on both sides of the existing road. The side to be widened will depend on keeping the number of people affected and the number of trees to be removed to a minimum.

IKS GROUP OF COMPANIES 8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure 2. Typical cross section for bypass road, for 2 and 3 m vertical alignment

39. Sub-grade depths will vary between 2 and 3 meters with much of this materials coming from side-borrow2 areas.

40. The project will be undertaken by a single contractor with work starting at km 586 and moving through to km 628, over a three-year construction period. The road formation width will be between 30 and 31 meters. At least 30 cm of surface material will be removed from the area to excavated and stored for later use.

41. The excavated area will be compacted and a 1.2-2.4 m thick sub-base of sand applied. This material will come primarily from side borrow, i.e. simply taking material from the side of the alignment, creating two trenches on either side of the alignment. The sub base and other layers of the roadbed will be topped by 25cm of concrete, for a total depth of between 2 and 3 m. The road will be made entirely of concrete including concrete shoulders.

42. The general layout of the road is shown inFigure 2. Based on these dimensions and the total length of 47 km, more than 3 million m3 of earthworks materials will need to be

2 The consultant is urging that the practice of side borrowing be replaced with controlled borrow areas located at designated sites along the road. Uncontrolled side borrowing not only leads to added loss of roadside land, and a visually unattractive roadside zones, but erosion and dust during the winter windy season. Controlled borrow areas could be rehabilitated and converted to ponds.

IKS GROUP OF COMPANIES 9 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT moved and placed. In addition another 300,000 m3 of concrete will be used to surface the 47 km of roadway (not counting major interchanges).

43. More than 2.25 million m3 of sand will be used to prepare the base layer of the road and will be taken mostly side borrow, creating two trenches along the side of the alignment. Further. The geotechnical survey team identified around 20 material extraction sites all along the road alignments within 200m of the road formation, to be used for extraction of sand and clay.

44. Concrete will be produced using three new mobile batch plants to be located near worksites. These plants will have a minimum capacity to produce 5,000 m3 of concrete per day.

45. The construction sequence will be to begin construction of bridges soon after contractor mobilization, permitting the use of the new road as an access to the work site, instead of having to create a number of access roads. Existing roads crossing the alignment will also be used as access and materials transport ways. Therefore the bridge and road construction will be synchronized, with the bridge work moving ahead of the road construction which will start at km 581 and move northward to km 628. Short temporary access roads will have to be built to the various new borrow pits.

2.4.2 The Bridges 46. The project envisages construction of 12 reinforced concrete bridges over the many irrigation canals (there are no natural rivers) between Km 581 to 628. These bridges will be single-span structures requiring 50m long approach structures as well as piled foundations holding the reinforced concrete bridge deck. The bridges will 18m (3) and 42 m (9) in length. Some bridges will require a piled footing in the center of the canal. There will also be two rail fly-overs (railway bridges), located at km 588 and 616.

47. RRF plans to award the bridge work as well as the road work to one contractor, who in turn will subcontract to specialist bridge builders for this work. The contractor will nevertheless be responsible for all the work.

48. Each bridge will require a small staging area and as such temporary occupation of land. This has been addressed in the resettlement plan.

2.5 Schedule For EIA Approval, EMP Implementation 49. Environmental safeguards defined in the EIA document must be used in the detailed design, construction and operation of the project. To achieve this RRF has specified four actions that should ensure that environmental safeguard measures find their way into project design, construction and during the early years of the bypass’s operation (Table 2).

Table 2. Indicative Tranche 3, Package 4 Implementation Schedule No. Item Date 1 UZB Approval of Tranche III: Package 4 05/10 2 EIA approved by ADB and UZB 1/10/10 3 Environmental Mitigative Actions related to design and defined 15/10/10 in EIA EMP to be addressed and integrated into design 4 Detailed Design Completed and Approved: UZB 10/10 5 Detailed Design Completed And Approved by ADB 11/10 6 Preparation of Bid Documentation Package 4 11-12/10 7 Inclusion of Environmental clauses and/or EPM as specifications 12/10 in bid documentation; e.g. technical specifications 8 Deadline for bid submitted by bidders 01/02/11 9 Bid Review Period (2 months) 31/03/11

IKS GROUP OF COMPANIES 10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

10 Contract Awarded ( only one contractor and 1 contract) 15/04/11 11 Completion of Construction mitigation and monitoring Action 30/04/11 Plan 12 Compliance monitoring ( for all construction years) 01/05/11--

50. Mitigative measures during the pre-construction or design period (Table 1, Steps 1- 10) were designed to help prevent impacts from taking place. Therefore, RRF will be sure to implement as many measures as possible as they will be generally much less costly than post impact repair. The implementation schedule is discussed in detail in Section 8.4.

2.6 Project Layout and Components of the Work 51. The project layout will consist of an excavation width of approximately 32 m to a depth of around 30 cm for the entire 47 km length of the new alignment. There will also be intensive work at the 12 bridges crossing the area canals and two railway fly-overs. Further the sub-base material will require excavation along the roadsides, referred to as side- borrowing and the establishment of up to 26 small sand and clay borrow sites within 200m of the road RoW. This will effectively increase the corridor of impact to up to 200m on either side of the road work area.

52. Although not fully decided, construction work will likely proceed from km 581 to 628, while the bridge construction will precede the road construction so that the road can be built over the canals

53. Therefore, there will be three major components, construction of the road, bridges and interchanges. The Roads and interchanges will be covered under one contract and the bridges, likely under a second contract. There will be total workforce of over 500 people, living in 2-3 work camps as well as in the towns of Turtkul, Beruni and Buston. There will also be small worksites at each bridge. Two mobile concrete batch plants will be purchased, assembled and in operation, providing the more than 3 million m3 of concrete for the road surface and at least 500,000 m3 for the12 bridges and two railway fly-overs. To avoid wind and water erosion, a major activity throughout will be the immediate post- construction rehabilitation of ground disturbed.

54. The sub-base material for the road, totaling >2.25 million m3 of sand, will be taken from the side of the road and from a number of (up to 18 sites) designated borrow areas within 200m or the roadside3. Nearly all of these sites will be new, requiring access roads of some sort. Each site may be in operation for several months to a year.

55. Work will proceed from mid March through November, during the relatively warm months, six days a week, usually from 0800-17:00 or 0900-18:00, for 40 hours per week. The construction period will be three years starting in 2011 and completed sometime in late 2013.

3 The consultant has expressed concern over the uncontrolled practise of side borrowing and the use of many small borrow pits, since not only will it create a crater-like landscape but each borrow pit will require an access road and more destruction of land. According to the international consultant, large managed borrow sites with specific rehabilitation requirements and some side-borrowing where landscaping is required, is a more environmentally friendly approach, leading to fewer long term effects.

IKS GROUP OF COMPANIES 11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

3 Description of the Environment

3.1 Physical Resources

3.1.1 Climate and Topography 56. The project area has a southern temperate continental desert climate, with extremely hot summer temperatures exceeding 45o C and virtually no rain. December through February is the winter period with temperatures dropping below -15C, but more often around the freezing point or above 0o C. Temperatures begin to climb in March, accompanied by occasional rain4, with not more than 100-200 mm falling, sometimes accompanies by flash-flooding. In dry desert conditions of southern Turtkul district the daily temperature fluctuations can be as much as 30o C.

57. Much of the road corridor in Ellikkalla and Beruni runs through fertile irrigated farm land and as such temperatures and wind are reduced. There are also many planted windbreaks. In this areas annual precipitation remains at around 120 mm, of which 78 mm falls in October - March, and 42 mm - in April - September. Snow cover is, insignificant and amounts to about 7-10 cm

58. The topography is flat to mildly undulating with some small sand ridges occurring at several locations along the alignment. These elevated areas can best be described as 2-7m high vegetated hummocky mound scattered throughout the area of Ellikkalla and Beruni.

59. None if these conditions have any environmental implications or require and special engineering considerations.

3.1.2 Air Quality and Noise 60. Air quality along the alignment is what is to be expected for rural agricultural and low density rural residential land use. Ambient air quality, while not measured in the field was estimated using best-available field measurements taken by the provincial officials.. Specifically the Center for Hydrometeorology’s Ambient Air Quality Monitoring Unit for Khorezm and Karakalpakstan Regions reviewed measurements taken across the region in 2008 (the most recent) and provide a 2010 dataset (Table 10). Table 9 and Table 10 show that estimated noise and conditions for 2010 in the fours sensitive sites are well within the Uzbekistan KPK for ambient air quality standards for NO2, TSP, HC and CO2 levels. The 3 3 standards for rural residential are as follows: NO2 =0.85 mg/m , TSP=0.15 mg/m , HC=1.5 3 3 ug/m , and CO2=3.0 mg/m . The estimates made for all four sites had values well below 3 3 these standards. They were: 0.03mg/m for NO2, 0.10mg/m for TSP, 0.1 for CH and 0.04 for CO.

61. The literature describes noise levels in non mechanized rural agricultural areas as being in the 40-45 dBA range, and in some cases even lower. At night these levels drop to 40dBA or less. These are more or less the levels estimated using Uzavtoyul data (Table 9). The CREDO model results for the nearest receptor, namely the four small villages were 41dBA during the day and 38dBA during the night. Given the similarity of the traffic volumes applied to the four locations the estimated noise levels for 2010 were identical. Uzbekistan standards for noise in residential areas is 65dBA during the day and 55 dBA at night.

3.1.3 Topography, Geology, Soils and Hydrology 62. The project area is flat with few small hummocky hills, manifested as sand dunes in the desert section and fully vegetated hills in the Amudarya floodplain area of northern

4 The project area has recently experienced unusual precipitation as rain and snow in January, usually dry periods.

IKS GROUP OF COMPANIES 12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Turtkul, Ellikalla and Beruni Districts. On the sandy areas of road (km 581-589) loose - sandy soil 10-20 cm thick overlays the sand. This soil is dominated by sand (sandstone) of the particle with the inclusion of 2-5% clay impurities. From km 589-628 the alignment is dominated by soil and vegetation layer of gray-brown soil consisting of loam - sandy formations with thickness 0.2-0.3 m; the Amudarya floodplain deposit.

63. In respect to geomorphology the project area is associated with the south-western Kyzylkum desert area, as well as the right bank of alluvial-deltaic plain of the Amudarya River. In fact the alignment weaves into and out of these two formation several times.

3.1.4 Surface Water 64. The surface water in the project area is dominated by irrigation canals and two wet areas and small ponds formed by leaking irrigation canals and possibly minor groundwater upwellings5. There are two such wet areas within the road alignment located where the road from Beruni toward Elli Kalla crosses the alignment. These features appear and disappear with the changes in the water level of the Amudarya River, i.e. the result of irrigation and not natural features of the area.

65. That being said, these wet areas have been in existence for the past 60 years and provide a pleasant vegetation barriers in an otherwise barren landscape. The alignment was planned to avoid interfering with these features (albeit anthropogenic).

66. Other than the Amydarya, itself, there are no natural rivers in the project area.

3.1.5 Groundwater 67. The project area is rich in groundwater and has three distinct aquifers. There is a saline shallow aquifer located from 0.7-3. m below the surface and it is this layer that causes problems when Amudarya water is used for irrigation. As irrigation takes place, the saline water rises, causing soil salinization. For this reason there has been a great deal of dewatering of the shallow aquifer, via a network of drainage pipes located under the surface.

68. Some 50-70m down there is a deep aquifer of high quality fresh water. This is the water used for drinking purposes, although most families cannot afford wells going to that depth so must contend with the shallower less potable water.

69. There is a third aquifer some 7 m down, slightly better quality than the very shallow layer, and it this one that is more frequently used for consumption. All irrigation and watering for livestock comes from the Amudarya irrigation canals and the shallow aquifer.

70. The wet areas and small ponds discussed later in the EIA (Sect. 5.3-E), may obtain small amounts of their water from upwellings controlled by the Amudarya River water level, but mostly through leakage from irrigation canals.

3.1.6 Ecological Resources 71. The project corridor (48 km x 0.2km), consisting of approximately 960 ha of land, is a mixture of desert (10%), semi-desert(10 %), semi-desert grazing land ( 10%), cotton farming ( 48%), wet farming, including rice ( 5%), fruit orchards ( 4%) treed windrows (10%) and wetland–lake formations due to leakage of irrigation water about 3%. Settlements, small businesses and other structures are scattered throughout the area—but generally at a

5 These groundwater upwellings are highly unlikely since the groundwater conditions in the project areas consists of at least three aquifers with the first being saline and the second being 7 m down and used for potable water and a third being between 50m to 70m below surface. These wet areas are not saline and increase and decrease in size in relation to the water level in the Amudarya River.

IKS GROUP OF COMPANIES 13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT very low density. In one form or another, the entire area has been significantly altered through farming, grazing and irrigation.

72. The flooding due to irrigation (as well as groundwater upwelling) has created unusual freshwater wetland ecosystems, with both emergent and submerged aquatic vegetation as well as an assemblage of birds aquatic insects, amphibians and fish. These systems are partially dependent on the water level in the Amudarya River as more pumping into irrigation canals continues to keep water levels higher than the ground elevation, increasing the amount of leakage6.

3.1.7 Flora and Fauna 73. The flora of concern consists mainly of wind-rows and forest patches, planted at various times to prevent desertification, as the Kyzylkum Desert is only a few km away from the bypass alignment. Species assemblages are limited to mulberry, central Asian poplar, Russian olive, licorice, Asian cyprus or scrub cedar trees. Other forest patches exist but are located outside the specified project corridor. There are no Tugai Forest7 patches anywhere within the corridor of impact. However, the forests being established along the canals are beginning to resemble Tugai areas.

74. Ornamental shrubs and herbaceous species are weakly developed, including saksaul, white thorn, and other small arid and desert steppe plants.

75. A significant part of the alignment constitutes anthropogenic biotypes in the oases. Each biotype has its own characteristics, which determine the conditions for the existence of animals inhabiting it.

76. Over the whole alignment the wildlife community shaped by anthropogenic influences dominates. It is composed of mostly rodents, common birds and small mammals including the gray rats, house mice fox, jackal, steppe walker, weasel, spotted cat, magpie, gray crows and steppe agamas. There are also several lizards, geckos. Among snakes there is the whip snake, arrow snake, phoorsa and copperhead viper found in the dryer areas of the districts. Common migratory bird species include the grey dove, mynah, golden bee-eater, crested lark, hazel grouse, black eagle and the steppe kite. These are common along the canals.

77. Vegetation is most diverse in the Amudarya floodplain, mostly along the banks of the irrigation canals which are now over 60 years old. One could say that in some areas new Tugai forest areas are being established. These forest areas include licorice, tamarisk, willow, or reed grass meadow-bog (Figure 3) and provide habitat for this wildlife.

6 The literature points to upwelling and ancient lake formations as another source of the lakes, particularly since the lake water is fresh. 7 The Tugai Forest is endangered desert zone forest existing in the floodplain of the Amudarya and similar areas of Central Asia. The closest to the project area is the Baday-Tugai Forest State Nature Reserve in Karakalpakstan AR, but it is more than 60km north of km 628 in the western side of A-380.

IKS GROUP OF COMPANIES 14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure 3. Canal to be crossed by project bypass and riparian vegetation: km 605. Vegetation Established due to Canal

3.1.8 ESAs, Rare and Endangered Flora and Fauna 78. There were no Environmentally Sensitive Areas (ESA’s) or rare and endangered flora or fauna noted in the project corridor. This conclusion is based on a walking survey of much of the alignment and knowledge that more 85% of the alignment area is under cotton, corn or orchard cultivations for at least the past 40 years. There are areas within the project corridor that were not modified during the past agricultural activites. During the Soviet period, much of the area was drained of all wet areas and a network if drainage canals established. These operate to this day.

79. Further discussion with local ecological experts in both Turtkul and Byruni indicated that the area contained no ESA’s or areas needing biodiversity surveys. As described above, the habitats in the project corridor are very common throughout the alignment and as such the loss of some of this habitat will in no way degrade the biodiversity as observed during the field visits. The fact that the entire corridor has been drained, then irrigated, fertilized, with irrigation water leaking into depressions and creating wet areas also speaks to the low priority of any biodiversity survey.

3.2 Economic Development

3.2.1 Agricultural and Mineral Development 80. Beyond the 6 km of semi desert, used for goat and sheep grazing, the corridor through the Amudarya floodplain lands passes through intensively farmed lands, mostly cash crops such as cotton and corn, as well as fruit and melons. Turtkul, Ellikkalla and Beruni are well known for their excellent agricultural products, due to the plentiful water from the Amudarya.

3.2.2 Infrastructure and facilities 81. Outside the major centers, few towns have piped potable water or indoor toilet facilities. Water comes from wells and sewage is disposed of in pit privies and septic tanks. Larger towns dump sewage into water courses. Generally, towns along A-380 have

IKS GROUP OF COMPANIES 15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT electricity, but little else. This is particularly true the further north one goes, where basic household services do not exist and people live in very primitive conditions.

82. Communities directly affected by the new road are prosperous by Karakalpakstan standards, as they are in the irrigated Amudarya floodplain. Most dwelling have electricity but no indoor plumbing at all. More and more satellite dishes can be seen across the countryside of Turtkul, Ellikkalla and Beruni.

83. Potable water is obtained from wells tapping the 5-7m deep aquifer.

84. The road network is minimal, with most small communities being served by seasonal truck and tractor tracks. There are four to five paved roads that will intersect the new highway, and around 12-15 other smaller roads. .

85. The project road will have to cross 12 canals, each from 3-15m wide (Figure 3) and as such large scale bridge building will be undertaken.

3.2.3 Transportation (road, rail air) 86. There are three main surface modes of transport in Uzbekistan; road pipeline and rail. River transport also exists on the Amudarya. The network length of for road and rail system is: main roads (Uzavtoyul) 43,500 km and rail (UTY) 3,993 km. The rail system carries more than 80% of all freight. Rail transport services dominate the freight and passenger transport markets in term of tons of freight and passengers carried. Road however is the dominant mode used by people, accounting for 94 % of passenger movements. The long-haul of transport of goods is dominated by pipeline (for oil and gas) and the rest by rail .

87. In 2008 the total freight transportation for Khorezm Region was 30.5 million tons, freight handling and transport was 776.7 million tons/km. These figures suggest a growth of 4.8% and 14.8% respectively over 2007 figures. As for passenger indicators the total transportation was 291.5 million passengers or 11.6% more comparing to 2007 and turnover was 2.6 million of passengers/km or 20.6% more than in 2006. Karakalpakstan values were estimated to be about 60% of those recorded for Khorezm.

88. The total number of individuals involved in the transport sector in Karakalpakstan increased significantly from 2006. For passenger transport private sector enterprise involved 87%, and government 13%. For cargo, the private sector share is 46 %, while the government portion is 54%. These data suggest a significant increase in private entrepreneur involvement in the transport sector since 2006. These percentages did not change significantly for the 2009-2010 calendar year.

3.2.4 Power Sources and Transmission 89. Power for the project region is provided by the national power grid, which uses both fossil fuelled and hydroelectric power generation. Power is supplied via low and medium- voltage transmissions lines paralleling A 380. Despite this the rural areas of Karakalpakstan experience frequent power outages.

3.2.5 Industries and Employment- 90. As of 1 January 2010, 57.3% of the population of Beruni was of employable age (16-60 for men and 16-55 for women), and in Turtkul 54.7%, 49% of which are women. The employment rate is relatively high, representing 61.7% of employable-age population in Beruni and 60.6% in Turtkul. The percentage of people officially registered as unemployed in Beruni and Turtkul representing 4% and 2.4% of the employable-age population, respectively (Table 3). Aside from cotton manufacturing, production of wheat, silk, livestock, fruits and vegetables is also done in Turtkul District.

IKS GROUP OF COMPANIES 16 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 3. Employment Indicators Turtkul, Beruni & Ellikkalla Districts January 2010 District Name Employment Indicators Beruni Ellikkalla Turtkul Employable-Age Population 91200 95950 Employed 56300 58200 Officially registered People seeking 2376 3700 for Employment Provided with Employment 2283 2295 Receive unemployment subsidies n/a 213 Source: District Departments of Statistics, January 2010

91. Ellikalla has three large industry companies in operation; the Eltex textile complex, (Ellikalla Oltin Tolasi) stock company, Uzbekistan-Austria-Bangladesh joint venture and Univer, produced consumer goods. Further this district specializes in the production of cotton and wheat.

92. Beruni also has a solid industrial base. The Sulton Uwais area specializes in production of agricultural products. There are also cotton processing and spinning mills, an asphalt refinery, as well as other commercial services. The largest industry Eggar, a textile mill, contributes 60-65% of the district’s budget.

93. Average individual monthly wages during the January 2010 in Turtkul district was SUM 250,000. 00 per month; close to the average national indicator8.

94. As Uzbekistan does not officially have a poverty line, there are no data available to describe local standards of living. Based on consultant field observations, the households in the settlements affected by the alignment have few have motorized vehicles or tractors, and almost none have cars. In the towns, vehicle ownership is more common. Public buses and communal taxis are the main mode for getting in and out of market centers.

3.3 Social and Cultural Development

3.3.1 Population, Communities and Land Planning 95. Karakalpakstan is a sparsely populated area (7.5 people/km2). Within the three affected districts the density is about 28 people/km2. Within the 100m wide impact corridor it is about 18 people/km2. With a population of only 1.6 million and an out-migration rate of 4000-6000 people per year, the areas has a net population growth of only 1.25% per year; in an area covering more than 30% of the country (MSF, 2003). This out-migration has increased since 2003, due to the draught conditions and lack of appreciable government assistance. In the project area the average family size 6 people. According to the ADB Study on Women in UZB, “the traditional Uzbek family is characterized as complex, with more than one generation living together and is based on a patrilocal residence pattern and patriarchal authority structures on the basis of seniority...” The marginal income families in the project areas are found >5km distance from A 380, toward the boundary with the desert; and are large and live in poor conditions, are isolated and marginalized unemployed residents.

8 State statistics does not register incomes in informal sector, and excludes from reported average wages incomes in agriculture and small business sectors

IKS GROUP OF COMPANIES 17 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

96. The population of the project area of 465,000 makes up about 29 % of the AR’s population while the three districts account for only 5% of the land area. Aside from Nukus and Kungrad, the remainder of Karakalpakstan is sparsely populated and mostly arid steppes and desert.

3.3.2 Quality of Life Values 97. Average individual monthly wages during the January 2010 in Turtkul district was 250.000 UZS per month, close to the average national indicator9.

98. The average income in Beruni district in June 2010 was 163,280 UZS in and around 104,000 UZS in Ellikkalla and Turtkul cities (Table 1.8).The average monthly per capita income of marginal income households in Ellikalla was 72,480 UZS, which is around ½ the income of better off households. The figures for Beruni (80,710 UZS – marginal income and 201,900 UZS – better off) and Turtkul districts (75,440 UZS – marginal income and 158,020 UZS – better off) suggest more or less the same relationship (Table 4).

Table 4. Income and Expenditure Indicators Per Households in Study Area Percent Average Monthly per Capita Average Monthly per Marginal Expenditures, Capita Income, 000’s SUM income 000’s SUM Beruni district Marginal income 26.5 80.71 53.14 Better off 73.5 201.90 84.93 Average 163.28 74.80 Ellikkalla district Marginal income 53 72.48 69.61 Better off 47 146.89 132.27 Average 104.26 96.36 Turtkul district Marginal income 60 75.44 68.79 Better off 40 158.02 137.97 Average 104.77 93.36 Source: Consultants Household survey, June 2010. Marginal income is $2.15/day/person.

For the three districts the percentage of people with marginal income in relation to the total population is 46.4%. Therefore these three districts are considered vulnerable and extra caution and care is being taken to address the social disruption of the road. Should noise measurements point to significant problems, care will be take to fully compensate vulnerable families.

3.3.3 Socioeconomic Profile

3.3.4 Public Health 99. Public health in Karakalpakstan is rapidly deteriorating with the health agencies spending less than $ 6.50/person/year. As a result communicable pulmonary and cardiovascular diseases are on the rise. The notified incidence rate of pulmonary tuberculosis in Karakalpakstan in 2002 was 89 cases per 100,000 populations per year, with one of the highest rates of infection in Central Asia as well as in the region (e.g., Khorezm has 23 per 100,000 and the national average is 18 per 100,000 people). Rates of drug resistant forms of tuberculosis are also some of the highest recorded globally to date; 13% of new patients have multi-drug resistant tuberculosis. This has decreased significantly

9 State statistics does not register incomes in informal sector, and excludes from reported average wages incomes in agriculture and small business sectors

IKS GROUP OF COMPANIES 18 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT in Khorezm but not Karakalpakstan. Over the past 8 years, since these MSF data were assembled, conditions have improved, most noticeably in the project districts. Further north, little has changed. Cancer services, emergency health services, maternal and child health services, public health and disease prevention activities, to name but a few, are all in need of upgrade and support. Pilot projects to tackle the alarmingly high rates of infant deaths, acute respiratory infections, and diarrheal disease are ongoing, but will need substantial financial support to be expanded throughout Karakalpakstan. It is experiencing complex chronic health problems linked directly to the Aral Sea environmental disaster. Potential health threats include salinization of drinking water, dust storms and the presence of agricultural chemical pollutants in the environment and food chain. Two years of heavy Amudarya flows have begun to refill the eastern basin of the Aral Sea, reducing the severity of the salt laden dust storms, etc.

100. Outside the three project districts, which have marginally acceptable primary health care, health, facilities suffer from years of under-investment and in many rural hospitals lack even basic amenities such as washing facilities and clean toilets. Electricity to these clinics is unreliable with power shortages occurring frequently, including in winter, making operation of basic equipment and heating of the building very difficult.

101. The project districts are atypical of the data for the rest of Karakalpakstan as presented above. Turtkul District has 3 hospitals with 600 beds in total, 31 outpatient policlinics, 2 maternity hospitals, 21 rural medical centers, 249 doctors, 1007 other medical staff. This roughly works out to 830 people per doctor. Ellikkalla's medical services are far below Turtkul’s while Beruni’s is approaching Turtkul’s level of health services, but with a doctor patient ratio in the thousands. This is somewhat of an anomaly since Turtkul has the highest percentage of marginal income people (60%).

3.3.5 Education 102. IN 2010, the educational system of Beruni district is represented by 67 general schools with some 27889 enrolled students, 50 kindergartens with 1700 children and 8 extra-curricular educational organizations

103. Ellikalla District has 22831 students enrolled to 71 general education schools. Other educational institutions represented in the district are 6 professional colleges with 6611 students, 19 kindergartens with 1450 children.

104. In Turtkul District the educational system represented by 62 general schools with 29464 pupils, 26 kindergartens with 3050 places. There are 7 professional colleges with 8336 students and one academic Lyceum with 827 students. The coverage of the children of preschool age within the kindergarten system is 11.8%.

105. While rural educational facilities are rudimentary, literacy is well above 98% and equal access to education by gender is guaranteed by the constitution. In 1996, the literacy rate for women and men was almost equal. However, “some gaps remain between men and women at secondary and university levels of education”, and for those with a marginal income. “…disinvestments in higher education have continued since independence and enrolments in pre-school, secondary education, and higher education all declined in the early years of the transition.”10 .

106. According to World Bank’s (2001) Family Budget Survey, while cumulative enrolment at all education levels is higher for women than for men, the reduction in preschool program services have negatively affected marginal income earning women, forcing them to remain at home longer, to care for children.

10 Source: World Bank, Uzbekistan Living Standards Assessment, May 2003.

IKS GROUP OF COMPANIES 19 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

107. The household survey conducted by the consultant in July 2010 suggested that the overall education gap is narrowing between men and women (Table 5). However, beyond the vocational or high school (as reported in the 2001 survey), early 10% more men are getting higher education than women. This is most apparent in Beruni.

Table 5. Comparison of education among women and men in the project districts. Beruni Ellikkalla Turtkul Education Level Women Men Women Men Women Men No education 0.57 0.26 1.94 0.29 1.25 0.22 Incomplete basic 6.30 2.64 7.24 3.83 11.75 8.74 education Basic education 27.50 26.45 35.37 28.31 33.25 25.78 Vocational education 45.84 44.17 39.27 43.06 46.75 54.03 Higher education 16.33 22.22 10.30 16.22 5.00 9.86 Continuing receiving 3.15 3.96 5.84 8.25 2.00 1.34 education Source: Household Survey, June 2010

108. The Poverty and Social Impact Analysis (PSA) prepared by the consultant provides a detailed analysis of education in relation to income and household size and interested readers are urged to examine it.

3.3.6 Recreational Resources and Development 109. The main form of recreation is swimming, done in the canals and along the banks of the Amudarya, and to a lesser extent in the main river itself. The other recreational development focuses in the arts with ballet and classical music being extremely important activities.

3.3.7 Cultural Values 110. With an average family size varying between 4 and 6 and the average household size above 10, with often several generations living in large family dwelling, cultural values are centered on the family and inter-generational respect. Age is revered and family matriarchs and patriarchs rule. This condition plus the fact that most households remain rooted in agriculture and food self sufficiency has kept the area stable. For the young, aspiring to higher paying jobs, there is little opportunity in the project districts and as such there continues to be a net out migration.

111. The area is predominantly Muslim and as such cultural values have, for the time being, been retained.

3.4 Human Settlement in the Row

3.4.1 People 112. People in the three districts are predominantly Uzbek at around 66%, with the remaining being Kazakh, Tajik and Slavic (Russian, Belorussia and Ukrainian). These people are mostly farmers, with a secondary school education.

113. Interestingly, women headed households had incomes almost 10% higher than male headed households, yet were less educated then the men.

3.4.2 Landuse 114. Landuse in and on either side of the COI varies considerable, with the first 9 km in semi desert, sparsely vegetated goat and sheep grazing lands. The next section is a

IKS GROUP OF COMPANIES 20 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT mixture of irrigated cotton fields, other dry crops and some rice and orchards. In Beruni the focus in on rice, cotton and orchards, plus settlements.

Table 6. Summary of Land Use (by %) in Immediate Area of Bypass: Km 581-628 (in ha). Dry Ag. Land; Semi – Km. Grain, Barren Other Housing Desert (from- Orchard Cotton Corn, Veg. Land Grazing land grazing to) Etc., plus lands rice 581- 50000290 589 590- 10 7 10 10 50 12 1 610 611- 11 3 10 25 30 20 1 628 Source: Consultant Survey and Observations based in 2010 Google satellite images.

115. Overall the area has low population density, particularly along the road alignment, with the exception being the four small settlement areas bisected by the road.

3.5 Archaeological and Historical Treasures 116. There are more than 20 kallas, or ancient sand forts in the regions of the three project districts (Map 2), but focused in NE Ellikalla west of Buston. The kalla closest to the road is Guldrusun Kalla, 2 km from the RoW, with no road access. All others are more than 5 km distance from the road corridor. Therefore the future road will not impact on any known facilities.

117. Given the historical significance of the Ellikalla area, underscored by the many kallas located in an arc around the southern and western edge of the Kyzylkum Desert, all construction activity in Ellikalla District will require the use of an archeological expert to examine the road excavation width ahead of the construction activity. The Uzbek Law on the Protection of Archeological Treasures (2009) will need to be complied with. Should any potential sites be discovered, the engineer responsible will stop work, contact the CSC and the district staff responsible for archaeological and cultural monuments to get advice on how to proceed.

IKS GROUP OF COMPANIES 21 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Bypass Alignment Approx.

A 380

Map 2. Southern Karakalpakstan kallas and Bypass Alignment: Source: http://www.karakalpak.com/tourancient.html

4 Analysis of Alternatives

4.1 Alternative Solutions and Designs 118. The analysis of alternatives addressed two levels of decision making. First was the decision to focus on road transport to solve the future traffic and transportation problems on Hwy A 380. RRF and Uzavtoyul transport planners concluded that rail and air options were not possible since rail would require the construction of a new track, structure, etc, far exceeding budgets available for this work. Air transport was not discussed as it was impossible to meet the need in terms of passenger movements. The road transport solution was, without question, the best way to address future traffic congestion and bottlenecks in the Towns of Turtkul and Beruni.

119. The do-nothing option was not given much consideration as traffic counts indicated existing serious traffic bottle necks and safety issues as A 380 passed through the urban areas. Further, air pollution and noise levels were rapidly increasing to levels well beyond those permitted in urban areas and therefore the option of simply widening the existing road through Turtkul and Byruni would lead to unacceptable large numbers of affected people.

IKS GROUP OF COMPANIES 22 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The existing road from km 581-646 was causing significant traffic delays and opportunity cost losses.

Table 7. Comparison of Alternatives If construction of Km 581- Factor to project alignment 628 Sub-options between Unit Consider goes through (General Km 589-599 (see Map 1) existing road overview) Option Option Option C A: B (selected) ROW, hectares ha 156 282 77.4 73.2 70.8 Actual length of Road km 47 12.9 12.2 11.8 Alignment Total Cost SUM NA Not Available Removal of building No. 216 28 1 1 1 (residential houses), pieces Removal of facilities (non 3, plus a No. 26 00 0 residential school houses), pieces Installing round reinforced concrete pipes, No/m 55/1650 20/600 0 0 0 d – 1,5 m, pieces/running meter Construction of bridges with length 60 m, No/m 1/60 - 0 0 0 pieces/running meter Construction of bridges with length 32 m, No/m 6/182 - 0 0 0 pieces/running meter Construction of bridges with length 42 m, No/m - 3/126 0 0 0 pieces/running meter Construction of bridges with length 18 m, No/m 3/48 9/162 1/18 1/18 1/18 pieces/running meter Interchange of type No/m 5/300 2/120 1 1 1 “cloverleaf”, pieces/running

IKS GROUP OF COMPANIES 23 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

meter Interchange of type “pipe”, No/m 4/240 2/120 0 0 0 pieces/running meter Railway Crossings- No. 0 2 1 1 1 bridges Loss of Trees, primarily along field and road Scale 3 2 0 0 0 edges ( scale 0=none, 5=high Natural Environmental Habitat Loss ( Scale 1 2 1 1 0 scale 0=none, 5-very significant Loss of good agricultural land Scale 2 2 0 0 0 Scale: 0=none , 5 = very significant Loss of wetlands and small lakes. Scale 0 2.5 0 0 0 Scale 0=none, 5=very significant Groundwater Scale 0 1 0 0 0 losses ( 0-5) Future air and noise quality impact on Scale 3 3 1 1 1 settlements and sensitive features ( 0-5) Source: Republic Road Fund. 2009. Technical Economic Calculation (feasibility study) for Reconstruction of Road A-380, pg. 59, and consultant field observations July and August 2010.

120. The RRF then compared the widening of A-380 with the generic bypass (Table 7), focusing primarily on land requirements and resettlement, since it was well known that there would be few significant environmental issues. Widening the road through the towns of Turtkul and Beruni would require the resettlement of at least 216 families and the loss of at least 156 ha of productive agricultural and urban residential land. The bypass, while much longer, will require 282 ha, yet displace only 26 households, affect another 73, or a total of 576 people, and will require the relocation of one school. More than 60% of the land is unusable for agriculture. The RRF chose the corridor as this was the optimal area in terms of passing around more densely populate areas while at the same time providing access to the small communities around the periphery if the centers. Overall the bypass will be much costlier than the widening of the existing road but will take much less land-acquisition related negotiation and displace far fewer people. Consultation with local citizens

IKS GROUP OF COMPANIES 24 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT confirmed that no other options were feasible since other options were restricted to the west by habitation and the east by the kallas and the desert.

121. In an attempt to avoid productive agricultural land, reduce interference with existing wet areas, small ponds, thirdly to avoid having to encroach on any kallas (Map 2) and minimize cost, RRF and Uzavtoyul planners examined several optional alignments (Map 1 & Table 7) between km 586 and 599, as well as the as the option for widening the existing road through the urban centers.

122. For all option many trees (albeit all planted) will need to be cleared (the LARAP surveyors completed a full inventory of all trees lost with the preferred option), fortunately all fast-growing common species and easily replanted.

123. RRF selected the Option C aligned to miss all the kallas by at least 3 km and avoid affecting structures and residences. Much of the agricultural lands affected will be cotton and corn field and as such compensation and replacement would be relatively easy. The full inventory of all trees to be removed was completed by the LARAP survey team and will be provided to the environmental safeguards specialist as needed.

4.1.1 The Preferred Alternative 124. The preferred alternative is the bypass taking the straightest possible route to km 628, while avoiding residences, productive agricultural land and historical sites. Wetlands and small lakes were also avoided (Map 3). It will require the construction of 12 bridges to cross the irrigation canals as well as two rail bridges which will move trains over the road instead of level crossings.

125. Between km 589 and 619 the areas is a mixture if intensive agriculture, wet crops such as rice, a network of irrigation canals, some forest patches, archeological sites and of course settlements. Road planners selected the option that affected the least number of households and at the same time was an acceptable cost. Therefore the preferred alternative was Option C.

126. All further analysis was completed only for the preferred option.

IKS GROUP OF COMPANIES 25 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Map 3. The Selected Bypass (Option C.).

IKS GROUP OF COMPANIES 26 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

5 Impacts, Mitigative and Monitoring Measures: The Preferred Option 127. This project is one where serious impacts can take place if construction period monitoring is not continuous and consistent. The impact of the project operations on the natural environment will be minor since the area crossed has been carefully selected to minimize environmental, cultural or historical losses. However, air and noise impacts will be significant and have been carefully analyzed in Section. 5.3.

128. Large volumes of materials will be removed, replaced and transported, and water conveyances may need to be temporarily diverted, crossed and worked in. These conveyances provide essential irrigation water for 100s of farmers. Careful pre-planning and briefing of the contractor, followed by strict monitoring could avoid serious and potentially long term damage to the area11. Impact from this project will be mostly related to construction, but if not properly managed could extend far into the operating period of the new bypass.

5.1 Per-Construction Period 129. During this period most of the impacts relate to failure by the proponent to properly use the EIA documentation. This will be avoided through careful planning and environmentally friendly design considerations. In fact the recently completed Memorandum of Understanding-Fact Finding Document signed by the UZB and ADB defines significant environmental safeguard commitments (Sec. F para. 45 (v), (xvi) and para. 46 (v)) for RRF and firmly establishes the EIA and its EMP documentation as the central guiding specifications for environmental safeguard implementation and management for this MFF loan. Pre-construction measures are well represented. The six potential sources of impacts, the likely effects and mitigative actions identified in this EIA will be reflected in the detailed design period work and actions by RRF. These are:

5.1.1 Commitment to and Application of EIA Documents and Outputs A. Failure to Prevent/Avoid Project Impacts by Ignoring EIA Results 130. As part of the detailed design work, road planners, design engineers and other planners will make the final decisions regarding the specific road alignment. The preferred alignment (Option C) is the shortest distance, namely 47 km. The EIA defined a number of sensitive conditions, namely the small wet areas, the canal crossings, roadside borrow pits and sensitive settlement areas along the alignment. Designers and planners can avoid or minimize impacts at these locations by following the EIA recommendations and making adjustments to design specifications. Not following these guideline will result in costly and unnecessary degradation and mitigative actions. RRF will ensure that appropriate actions are taken done, bearing in mind budget limitations and road safety and construction efficiencies.

B. Preventative Measures To Control Dust And Noise As Defined In EIA Not Applied 131. An earthworks/excavation movement plan needs to be provided in the design documentation to a level that gives the contractor a framework to work with, such that the movement of materials, sources of materials and transportation protocol is defined, e.g. need to clean up public haul roads daily. Undoubtedly some of the materials will be transported by rail to a distribution area within the project corridor reducing the road transport distances etc. This needs to be a consideration in the earthworks/excavation plan. Failure to include these provisions in contract specifications will lead to costly

11 For example, there will be more than a dozen small borrow pits opened and side borrow taken to build the 2 m high sub grade base. All this area will be subject to rain and wind erosion (mostly wild) once the thin topsoil or mycrophytic crust is removed. Rapid and immediate restoration will minimise future problems

IKS GROUP OF COMPANIES 27 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT remedial actions and possible unnecessary negative effects on the residents in the project areas. RRF will prepare a guideline for contractors, specifying protocol for transporting of materials on public roads, operating timetables, operation of materials distribution sites and clean up. RRF will ensure that the successful contractor is made fully aware of these requirements and follows up with an implementation plan and set of actions for the construction period.

C. Future Erosion and Visual Intrusion from Poorly Planned and Managed Side Borrowing and Small Roadside Borrow Pits 132. Uzavtoyul has long had the practice of taking sub grade and fill material from the roadside anywhere where upgrading is needed. This has left roadsides looking like a cratered moonscape; visually unattractive and ideal for wind erosion and the encouragement of desertification.

133. Further, this project is presently planning to open up to 12-16 small borrow pits within 100-200 m of the road RoW. Most sites will require a temporary access road and removal of ground cover in an area usually around 0.75-1.0 ha. RRF recognized that serious environmental impacts could result so will define the following mitigative steps for the contractor. These will be monitored and reported on by the PMU and its Safeguards Due Diligence team (ST) throughout the construction period. Their reports will be included in the bi-annual report progress report required by ADB.

134. The process defined in the bid documentation and later to the contractor will be as follows:

135. For Side Borrow sites

136. Prior to starting any side borrow work, contractor will identify a storage site for groundcover material and remove these materials carefully, to a depth of no more than 30 cm, unless the material is Amudarya floodplain soil , where the fertile groundcover will be up to 75 cm deep.

(viii) The side borrow depth most be limited to no more than 2.5 meters, and immediately after it is no longer used, and necessary drainage and road shoulder structures have been put in place, the contractor needs to landscape the area leaving naturally rolling landscape, and fully covering the area with the stored ground cover and if inadequate, provision of extra material from an approved source.

(ix) Once each side borrow area has been rehabilitated the ST monitor will prepare a short note indication the date of rehabilitation and action taken. A dated digital photo of the area will also be taken.

(x) The ST monitor will be required to revisit the rehabilitated side borrow area at least 2x per and confirm that mitigative measures are working.

137. For Roadside Borrow Pits

(i) The roadside borrow pits have been marked on a map and their coordinate noted by the survey team, defining the road centerline. During that work the team attempted to place these borrow areas in locations with minimal safeguard issues. Before opening a new borrow pit, the contractor will be required a resurvey of the site to ensure that the borrow pit or the temporary access road will not lead to serious environmental losses. If there appear to be such situation alternate locations need to be found, working in close cooperation with the District and the Hokimiyat’s office.

IKS GROUP OF COMPANIES 28 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

(ii) Opening of the pit and the access road will require the removal and storage of groundcover, minimal disturbance of surrounding areas, establishment of an operating schedule that takes into consideration any settlements within 300m of the site, i.e. schedule of operations limiting noise and dust.

(iii) The temporary access road must be maintained to a level where dust and erosion are controlled continuously and illegal excavation is prevented.

(iv) The contractor will be required to keep a record of the m3 of material removed.

(v) Closer/restoration of the site and access road will require full rehabilitation to reduce erosion, safety issues and to repair the significant landscape degradation. Groundcover replacement and planting of vegetation will be required.

(vi) The ST monitors will be required to report closer and restoration of each site, including a dated photograph, using a GPS-equipped digital camera that will be provided as part of the ST team’s equipment. These short reports will also be included in the semi-annual report to the ADB.

D. EIA and EMP documentation not available to engineers preparing the bid documentation 138. There is a considerable history both inside and outside Uzbekistan of environmental assessment documentation never reaching the detailed design engineers, contractors or compliance monitoring people implementing the project. RRF is determined not to let this occur for this EIA and therefore will translate the EIA and its EMP into Russian, the EMP also into Uzbek, and distribute these as hard and soft copies to: the (i) PUI, (ii) PMU, (iii) Contract Supervision Consultant, (iv) Contractor, (v) District and (vi) Regional officials. A set of documents will also be placed in the Hokimiyat office and an announcement placed on the bulletin board announcing the availability of the EIA for viewing.

E. Mitigation and Monitoring Not Mandatory Since not Included as Environmental Clauses or a Covenant in Contracts 139. The EIA is an environmental statement by the RRF. RRF, representing Uzbekistan, has committed to implementing the measures defined in the EIA. For the measures proposed in the EIA’s mitigation (EMiP) and monitoring (EMoP) plans to be taken seriously, they must become legally binding through inclusion as environmental clauses in the loan agreement between UZB and the ADB as well as the specifications in the contract-bid documents. This will be achieved by either integrating the EMP (EMiP and EMoP) into the contract specifications as a clause, or using the EMP to prepare a construction-period environmental action plan, defining specific steps to be taken by the contractors and the government during the three project development periods. References to the EMP are already in place in the MFF loan agreement between UZB and ADB.

140. The PMU’s Safeguards Team (ST), assisted by the construction supervision Consultant (CSC) with likely an international consultant with responsibility for environmental mitigation and monitoring oversight, will help with this mitigative measure. It will be the CSC’s responsibility to establish specific pay-items for the environmental mitigation and monitoring activities, with payments made only after verification that each work component has been completed as prescribed. The bid documentation will also have separate environmental pay items defined. RRF will oversee this work to insure compliance.

F. Failure Of Safeguards Due To A Lack of Construction Compliance Inspection Services and Environmental Training 141. While the EMP and the environmental covenants can be very clear and specific, if there is no one knowledgeable to undertake compliance monitoring, inspection and regular

IKS GROUP OF COMPANIES 29 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT reporting, little of the EMP will be implemented or completed. Neither RRF or Uzavtoyul or the contractors have skills in environmental compliance inspection/monitoring and reporting. This is particularly true at the Region-level where RRF will be responsible for the all safeguard implementation and reporting.

142. The PMU, acting on behalf of the RRF will ensure that the EIA and its EMP is available to all interested stakeholders, and will organize and coordinate two meetings for managers, district and regional-level inspectors and contractors. The topics will include the management of environmental assessments, mitigation inspection, enforcement and reports, and will be held in Beruni and Ellikkalla.

143. The PMU’s ST will be active in ensuring that this compliance monitoring will take place.

5.2 Construction Period

5.2.1 Air Quality and Noise A. Dust from Improper Management of Earthworks Storage and Transport Operations 144. Large volumes of quarry rock, aggregate and sand will be transported and stored near the roadside. These operations and storage areas will be constantly exposed to the elements and will create primarily dust during the frequent windy conditions (sediment laden drainage water is not an issue since there is almost no rain). Dust management will be important and since there is plenty of water on the irrigation canals, dust control by watering, should not be a problem. RRF will provide a clause in the bid documentation requiring the contractor to manage dust on all haul roads, borrow pits and work sites. ST monitors will be required to check compliance. Properly loaded trucks with canopies preventing spillage onto the highway and blowing dust will be mandatory. Any spills on the haul roads will be cleaned up by the contractor within a 24-hour period.

145. Rock and large aggregate material will come from an existing large quarry (Karatau Mountain Quarry) located at km 690 along A 380. It is fully licensed and operates within UZB standards and norms. Much of this material will be transported by rail to several distribution locations along the corridor. Fortunately the railroad is parallel to the road corridor for much of the 47 km, thus transportation distances from these sites to the road will be short.

B. Noise and Air Pollution From Concrete Batch Plants Affecting Populated Areas 146. Since the entire roadway surface, including the shoulders will be made of concrete, large volumes will need to be produced close to the road work areas. RRF plans to acquire two new mobile concrete batch plants, dedicated to providing concrete for the road surfacing.

147. Despite the fact that these plants will be new and equipped with dust and noise suppression equipment, they will be noisy and create dust that will be of concern to area settlements. To avoid this, plant sites will be selected at least 300m downwind and 750m upwind of any residence or settlement. Noise suppression barriers and light baffles will be installed and all sites will need to be fully rehabilitated after abandonment or if the batch plant is moved. This restoration work will need to be completed within 1 week of a plant being moved and will involve bringing the site to pre-batch plant conditions. ST monitors will be required to report on the restoration, and include a short section plus photos with each bi-annual report going to the ADB.

IKS GROUP OF COMPANIES 30 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

148. Noise measurements and visual dust observations will be made 4X/day during one full operating day, each month during the first year of operations of these facilities at the distances defined in paragraph 148 and within 10m of the closest dwelling structure to the batch plant. If noise12 and dust levels are within UZB standards, this monitoring will be reduced to only 3X/year for the remaining construction period.

149. Dust suppression equipment will be purchased with the new batch plants.

150. All attempts will be made to locate the plants such that existing access road can be used. Otherwise, procedures as define above (Sect. 5.1, C (ii)) will be followed.

C. Construction Period Noise Pollution 151. Noise will be an overall minor construction period impact, since much of the work will take place in terrain with few population centers along the road alignment, with some exceptions. The alignment is planned to pass through the four small villages ; namely Soraby Dulmin Kala West ( km 620) including a school, Dulmin Kala East (km 617) Guldursun Kala at km 610 and Kaltaminor at km 600-601. All these areas have at least 10 residences within 100 of the future roadside.

152. The most intrusive noise will come from the pile driving at the bridges where noise spikes as high as 100 dBA will occur. There are two mitigative actions which will be required a) limitation of operating periods where the work is within 1 km of a settlement to 0700-1800 and b) making sure the all possible noise suppression measures are taken to limit the noise.

153. Overall mitigative measures to be applied will be to limit work in the four locations to the daylight hours of 0700-1800 six days a week for the following road sections: km 616- 612, km 609.5-611, km 601-603. Further, construction equipment such as trucks and heavy equipment will be required to have the factory specified exhaust and noise control equipment in operating order. Checking these conditions will be a required inspection item for the ST and will be based on comparison with manufacturer specifications. Prior to the commencement of construction in these areas, the contractor will be required to provide a full list of the heavy equipment to be used including age, model number and specifications.

154. Further, using the portable noise meter to be purchased as part of the mitigation work, measurements will be taken at each construction site. Where noise levels are continuously (15 minutes reading) 10dBA above the background level the contractor will be required to reduce the noise level to <10dBA above background by any means.

D. Construction Period Air Pollution 155. Construction period air pollution will be dust and emissions from operating machinery. Aggregate crushing will take place at the Karatau Mountain Quarry, which must operate within UZB standards. It is assumed that the new mobile concrete batch plants will have dust suppression technology installed and as such will help to control the dust plumes that usually arise as aggregate and sand are mixed with cement at the plant.

156. To reduce emissions in general, controls on vehicle idling and equipment maintenance will be imposed throughout construction period, with regular inspection and reporting by ST inspectors. Equipment and vehicles will be shut off if not in use more than 3 minutes and all will be maintained according to manufacturers’ specifications. Dust will be carefully and continuously managed. Air emissions will be monitored, with a focus on dust and visible black smoke from operating equipment. Any vehicle exhibiting these

12 Noise will need to be measured on site and this may require the purchase of a portable noise meter by the CSC for use by the ST. Average price of such meters including the calibration tool is $US 1,350.00.

IKS GROUP OF COMPANIES 31 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT conditions, usually due to poor maintenance, will be shut down and not permitted to operate again until a mechanics certificate of repair is submitted to the CSC. The ST will have authority to do this.

157. Any time dust is observed coming from a worksite, the contractor will be required to remedy the situation within 2 hours or face worksite shut down. These conditions and requirements will be enforced by the ST in the 4 road sections defined in (F) above.

158. Further any haul road used by the contractor where spills of clays and fines and other earthen materials are accumulated, the contractor must clear up the roadway each day and be sure that dust, soil, sand gravel and rock is not on any of these roads. Non- compliance will involve penalty payment equal to the cost of clean up by a privately hired contractor, or roughly SUM 650,000 per day of work plus a surcharge of another SUM 350,000 per day.

5.2.2 Water Quality and Hazardous Materials E. Contractor Work Sites Garbage And Sewage Contaminating The Land And Water Leading To Health Effects 159. It is uncertain if the contractor will use construction camps or billet the workers in the large towns (Turtkul, Buston and Beruni) along the road alignment. The following guideline is provided in the event that work camps are used. At each camp a strict waste management plan needs to be in force, including garbage, sewage and other wet waste processing. The requirement for waste disposal according to Uzbekistan standards will be specified in the Contract Conditions of Special Application, based on the FIDIC template. Sewage can be processed either by use of pit privies or composting toilets. For all other waste management the contractor will be required to enter into a contract with a local service provider and establish a regular disposal service for all solid wastes.

160. Failure by contractors to adhere to good housekeeping practices as defined in the contract Terms and Conditions and Conditions of Special Application and a lack of enforcement by the PMU, will lead to longer term contamination at construction camp sites all along the RoW. RRF does not intend to leave behind an unattractive corridor of impact as well as dissatisfied, skeptical and disappointed local people. The PMU's ST will be expected to undertake regular environmental compliance monitoring, using the EMP as their guide13. A monitoring checklist will be prepared as part of each monitoring cycle and a monitoring report will be submitted to Uzavtoyul and RRF at the end of the construction period. The monitoring report will be a simple checklist identify the volumes of waste produced each week and the disposal process applied. Non-compliance with these measures will result in deduction of amounts paid for a local service to deal with the waste, plus a SUM 1,000,000.00 fine. Three violations will result in RRF retaining an outside service to conduct the waste management for the remainder of the construction period, deducting that charge plus a daily fine of SUM100,000. These amounts will be deducted from the interim payments to the contractor.

F. Damage To Small Ponds And Wet Areas Along The Alignment 161. Geological records show that the Amudarya delta once covered a vast area including the area crossed by the alignment. It was an unusual inland delta since the elevation of the river and the Aral Sea was only a few meters apart, and as such created

13 Small quantity sewage and septic waste management from small work camps in desert conditions can be managed through simple aerobic settling ponds, where the liquid evaporates leaving the dry solids behind. These must be covered with a 30-40cm-thick layer of sand, although research has shown that generally aerosol dispersion of bacteria from fecal material is of concern only within a 70m radius of the site and less so in harsh dry desert conditions.

IKS GROUP OF COMPANIES 32 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT many lakes and wetland varying in size. These remained until the Soviet period when much of the area was drained and criss-crossed with irrigation canals and subsurface collector drains. Uzbekistan was turned into the cotton and irrigated crops center for the Soviet Union. The large lakes and wetlands were reduced to mostly remnants ranging in size from < 0.5 ha to 100ha.

Figure 4. Remnant ponds created by leakage from irrigation canals And slight Groundwater upwelling. Ellikkalla District, Karakalpakstan: Approx. location of road alignment shown. 162. Some of these lakes are unique as they exist in almost totally desert conditions (Figure 4), with desert vegetation not more than a few meters from the water’s edge, but always within 20-50 m of a large irrigation canal perched above ground level in an earthen canal. These areas are fed mostly be leakage from the irrigation canals, whose water levels sit from 1-3 m above the surface of the ground and as such lead to natural seepage into the surrounding depressions. Near these sites large expanses of reeds can be found, some with cattails 3m high (Figure 5). The larger ponds contain complete aquatic ecosystem from plants to insects, fish, herptiles and mammals. The alignment avoids all these formations but comes close to a two small ponds and crossed the corner of one reedy area.

163. Road planners were careful to avoid these formations but could not avoid coming very close to two in Ellikalla District. Where possible, ponds such as shown in Figure 4 are to be avoided and the contractor should not attempt to dewater or disturb these formations. Hydrogeology experts from the district (Buston) need to be consulted and a joint plan to cross these formation agreed to between the District official and the project’s chief engineer.

IKS GROUP OF COMPANIES 33 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Figure 5. Wet Area in Ellikalla District, 10km from Kyzylkum Desert: Approx. location of alignment shown. G. Spills of Petroleum Products During Storage and Handling 164. Tens of thousands of liters of diesel, petrol and other oils will be used during this work and fueling will be done at a contractor’s yard but mostly be several refueling trucks. Storage of these materials in the yard will be minimal beyond what is in the refueling trucks’ (there will likely be several) tanks. The storage of all petroleum products, consisting of petrol, diesel, and small quantities of oil and lubricants must comply with various UZB KMKs ,defined in the contract specifications. Further, all storage tanks must be surrounded by an impervious berm capable of easily containing the volume of at least one storage tank. The ADB recommendation that a 120% retained volume rule be applied will be examined in relation to relevant Uzbekistan KMKs.

165. The existing practice is to have a mobile fueling tanker that services equipment in the field. These will need to be fully equipped with spill prevention and automatic drip collection equipment.

166. Any spill clean up clean will require:

(i) Identification of the exact material spilled and estimated amount

(ii) Assurance that the spill has been contained through additional berms and barriers and pumps .

(iii) collection of all liquid petroleum products in drums for shipment to processing facilities.

(iv) Removal of all contaminated soil to secure area to be disposed of according to the Uzbekistan KMKs relating to disposal of hazardous materials.

(v) Rehabilitation of these areas by replacing topsoil and vegetation lost; and finally

(vi) Preparation of record of removal and paperwork of contaminated materials having been sent to proper treatment and/or disposal facility—filed with the Uzbekistan authority (Goskompriroda) .

167. If required, this work will be supervised by the PMU.

IKS GROUP OF COMPANIES 34 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

168. Further, any fueling area, other than with the trucks, must have properly operating fuel dispensing equipment in working order. The fueling area must have a system for collection of all drips and spills during the fueling process. Changing of oil must always involve collection of waste oil for recycling. To confirm this, the contractor will be required to document the number of liters of waste oil recycled each month and provide evidence that this was actually done. The ST will inspect these facilities and the waste oil collection system.

H. Damage to Irrigation System 169. The 47 km long new roadway will have to cross 12 major irrigation canals, a number of subsurface collectors and several wetlands. Contract specifications have defined exactly how work at, in or near irrigation canals is to proceed, thus requiring little further reinforcement in this EIA. The only area needing comment relates to timing. In some instances canal sections will need to be dewatered and/or diverted to permit work in or on the banks of the canals. In such cases consultation with the district officials will be mandatory so that any diversion does not affect the irrigation schedule.

5.2.3 Soil Loss and Visual Intrusion I. Wind and Rain Erosion Due To Poor or No Erosion Prevention Actions 170. Assuming that the work is undertaken as planned, the exposure of disturbed ground to the frequent wind and rare rain events should be relatively small. Removal of groundcover will involve between 180 and 200 ha of land (of a total of 940-960 ha of COI) some of it in previously disturbed roadside ground. All these sites will need to be stabilized, rehabilitated and revegetated as soon as construction is completed. Stabilization using reed mats and the planting of native vegetation will be undertaken according to advice of District Forestry Institutes as well as the Hokimiyats’ reforestation advisory teams. Poplar, mulberry, fruit trees and Russian olive are often used in these replanting. The resettlement study survey team recorded that local communities were eager to do the replanting themselves as long as they are given materials and appropriate payment for planting and maintenance. RRF considers this a valuable economic benefit of the project and will instruct the PMU to initiate discussions with the relevant Hokimiyats as identified in the LARAP during the community consultations, and complete as many contracts as needed to fully cover all areas of the alignment.

171. To prevent wind and water erosion, more general stabilization of all the disturbed areas will be undertaken as soon as all earthworks on any given stretch is completed. To reduce the risk of wind erosion and the considerable visual intrusion, landscaping of the areas badly degraded by the side borrowing will also be completed. In the 5-6 km section in the desert (km 581-586), revegetation with desert vegetation found locally will be attempted, including replanting with saksaul (Haloxylon spec.).

J. Erosion and Dust From Inadequate rehabilitation of Borrow Pits 172. Project planners and engineers propose to open up to 16 small (1-1.5ha area) borrow pits along the alignment, with most requiring a temporary access road. The contractor will need to follow a strict protocol as defined in the bid documentation and/or as specified in Sect. 5.1-C (ii) of this EIA. The ST will be required to conduct the compliance inspection and reporting as specified. Inadequate rehabilitation will result in a deduction from the payment to the contractor of an amount equal to having a private landscaper do this work plus a 50% penalty charge. RRF intends to include these details in the contract bid documentation.

173. As indicated in Sect. 5.1-C(ii), monitoring of the operation and rehabilitation of these pits will take place once when the site is opened to record proper storage of groundcover

IKS GROUP OF COMPANIES 35 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT and twice after closure to ensure adequate rehabilitation and restoration of the area (including a two photos).

5.2.4 Health and Safety 174. Environmental health and safety is only as good as the stewardship shown by the agencies responsible. Occupational health and safety (OHS) as well as Community Health and Safety(CHS) measures must:

be relevant to the intended recipients (stakeholders); provide valid and comparable measures; be consistently presented over time in an unbiased fashion; and be used and acted upon if no-compliance is found.

175. Uzbekistan includes health and safety requirements at all work sites in order to prevent the compromising of health and safety. Occupational health and safety in Uzbekistan is underpinned by The Labor Health Protection Law (1994) and the Occupational Safety in Construction of Road KMK 3.01.02-2000. As well there are another 10 laws regulations and standards, dealing with occupational and community health as related to roads. RRF will apply these, as required. RRF does not consider it necessary to add text from health and safety specification from other jurisdiction since its standards are equal to international standards. In the interest of satisfying ADB`s requirements additional aspects of both occupational health and safety as well as community health and safety will be included in contract document and later enforced with the operators of the new road.

176. OHS and CHS related to this project, deals with construction activities involving the workforce (possibly in work camps)and their conditions as well as the impact on the community in terms of safety, access restrictions etc.

177. During the operation of the road, CHS issues will dominate and deal with safety issues since the new road will pass through or near four small villages and will intersect many small rural roads.

178. Uzbekistan includes health and safety requirements at all work sites in order to prevent the compromising of health and safety. It will be apply these to all components of this road project. RRF does not consider it necessary to add text from health and safety specification from other jurisdiction since its standards are equal to international standards. In the interest of satisfying ADB`s requirements additional aspects of both occupational health and safety as well as community health and safety will be included in contract document and later enforced with the operators of the new road.

K. Occupations Health and Safety 179. During the construction period workers will have to operate heavy vehicles and machinery, such as portable concrete batch plants, large pile driving equipment,, etec.. Large amounts of materials will be excavated and moved. Contractors will be required to provide a safe working environment for all workers. This will include:

Safe Access to the work site Proper lighting at the construction site Proper training with equipment—on some cases requiring operator licenses; Ventilation in closed areas, e.g. repair garages First aid and basic emergency services Proper safety equipment including hard hats and shoes and safety vests Controlled noise levels exposure to 85 dBA, for no more than 8 hours per day Ensure structural safety of work areas, e.g. the bridges to be built

IKS GROUP OF COMPANIES 36 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

RRF will make certain that these elements of OHS are incorporated into construction contracts with the successful bidders. Compliance will be verified with relevant contract clauses being available for ADB audit.

Details of these and other measures are described in detail on the World Bank website at http://www.ifc.org/ifcext/sustainability.nsf/AttachmentsByTitle/gui_EHSGuidelines2007_GeneralEHS_2/$FILE/2+ Occupational+Health+and+Safety.pdf L. Community Health and Safety 180. Community health and safety impacts involve any degradation of quality of life in the communities directly affected by the road project. A number of key measures to be considered as the construction work begins include adoption of best transport safety practices across all aspects of construction activity with the goal of preventing traffic accidents and minimizing injuries suffered by project personnel and the public. During the construction period, measures to be included by the contractor in compliance with Uzbekistan’s Road Safety Regulation are:

Emphasizing safety aspects among drivers Improving driving skills and requiring licensing of drivers Adopting limits for trip duration and arranging driver rosters to avoid overtiredness Avoiding dangerous routes and times of day to reduce the risk of accidents Minimizing pedestrian interaction with construction vehicles Collaboration with local communities and responsible authorities to improve signage, visibility and overall safety of roads, particularly along stretches located near schools or other locations where children may be present. Collaborating with local communities on education about traffic and pedestrian safety (e.g. school education campaigns) Coordination with emergency responders to ensure that appropriate first aid is provided in the event of accidents Using locally sourced materials, whenever possible, to minimize transport distances. Locating associated facilities such as worker camps close to project sites and arranging worker bus transport to minimizing external traffic Distribute information of infection, communicable diseases as well insect- born disease and provide advice if issues arise

Further, CHS issued during construction will also involve noise and dust as well as access problems when construction restricts movement. To address this RRF will require the contractors to always provide adequate alternate traffic movements, manage dust through watering and sweeping, and manage traffic at any construction site that interferes with main roads used by local communities. Operating period CHS measures will involve the provision of standard marked crosswalk areas with amber flashing lights in the four village crossed, well marked intersections and adequate speed limit signage.

Issues related to communicable diseases are full addressed in the resettlement plan and related documents being prepared as part of this project, and as such are not repeated here.

181. Further details on CHS can be found by clicking on the following website

IKS GROUP OF COMPANIES 37 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT http://www.ifc.org/ifcext/sustainability.nsf/AttachmentsByTitle/gui_EHSGuidelines2007_GeneralEHS_3/$FILE/3+ Community+Health+and+Safety.pdf

5.2.5 Inadequate Implementation Infrastructure M. Inadequate compliance monitoring and reporting 182. The value of the EIA and its EMP depends almost totally on credible and consistent compliance monitoring, reporting and enforcement of requirements. A weak process or marginally committed administration will, as a worst case, lead to failed impact mitigation and monitoring program or unacceptable and unreliable results.

183. RRF will not permit this to happen and has included in its staffing plan for the PMU, a qualified Safeguard team (ST), and will also retain international environmental expertise within the Construction Supervision Consultant (CSC) (Figure 6). RRF is fully committed to ensuring that the contractor meets all EIA requirements and undertakes all mitigative actions. RRF is fully ready to penalize the contractor to the extent specified in this EIA should none compliance items not be rectified in the time specified in this EIA and/or by the ST.

184. Prior to the start of construction RRF will announce the appointment of the ST within the PMU and the involvement of the international specialist working with the CSC.

Project Implementation Team PIU Team: Procurement Financial Management PIU Director Engineering Results Monitoring Legal

Project Project Management Unit Loan 2403-UZB CAREC Regional Contractors Consultants: Road Project Project Management Including Int’l. Team Safeguards Spec.

Construction Supervision Team

Safeguards-Due-diligence Team (ST)

Figure 6. Structure of Project Implementation Team and Within that the PMU

5.2.6 Loss of Cultural Treasures N. Loss of Archaeological and Cultural Treasures 185. The project area, particularly in Ellikalla District is dotted with ancient kallas (forts) dating back over 1000 years. It is possible that new sites could be unearthed during construction. To be sure that such new sites are not destroyed the contractor, prior to

IKS GROUP OF COMPANIES 38 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT working in each District, will meet with local officials and discuss the likelihood of any finds14. If any archeological remains are unearthed, the work must stop immediately and the discovery reported to the Hokimiyat and the CSC chief. A plan to conserve the site will be prepared and no work is to continue until the plan has been approved and certified by the PMU.

5.3 Operating Period 186. Road traffic along the bypass is expected to increase rapidly as soon as the new bridge across the Amudarya to Urgench is completed (now 35% complete). The new alignment will pass through mostly small rural settlements and agricultural lands, and as such any change in air quality and noise will be very noticeable for some distances around the road corridor. Local air and noise conditions will be affected significantly. Since the vast majority of hazardous and toxic materials continue to be transported by train the risk of a road transport spill on A 380 is not significant. Five operating period impacts are discussed in detail as follows.

5.3.1 Air Quality and Noise A. Noise and Vibration Disturbance Due To Increases In Traffic 187. The traffic projected for the bypass for 2020 through 2030 will be 3,075 and 7975 AADT respectively (Table 8), up from 988 AADT for the existing condition.

Table 8. Traffic Projections for Km 581-626.1 of New Bypass, based on 01/’10 Traffic Survey

Articu- Inter- Total Ge ne r- Year Passenger Minibus Autobus Small Medium Heavy lated national (minus ated Total Total Ge ne r- Car truck truck truck truck truck ated) Traffic Traffic Traffic Coeff for PCU 1 1 1.2 1.5 2 3 3 2.5 1.13 0.2 AADT PCU 2010 810 40 40 10 50 19 4 17 988 988 1121 2020 2100 103 103 26 128 49 11 43 2562 512 3075 3489 2030 5447 266 266 67 333 126 30 111 6645 1329 7975 9051

Composition S, M Trucks Autobus, H. Artic. Uzb. Int't (%) &Minibuses Trucks Trucks Trucks Pass. Car Traffic growth %/Yr 2010 10.0 5.9 0.45 1.67 82.0 Local traffic 10 2020 10.0 5.9 0.45 1.67 82.0 International Truck 10 2030 10.0 5.9 0.45 1.67 82.0 Summary Traffic Forecast Year Total Total Year AADT (PCU) 2009 898 1019 2010 988 1121 2015 1909 2167 2020 3075 3489 2025 4952 5620 2030 7975 9051

188. Daytime noise levels in 2020 and 2030 (Table 9) will exceed the UZB standard at the 10m distance by up to 15 dBA, and will be within 50-54dBA during the night at 50m15 distance of the pavement16. Inside the 50m contour, noise levels at night (calculated) will exceed the 55 dBA standard. At night, passing vehicles will result in temporary noise spikes of as much as 20 dBA (when adding the 10dBA perceived night-noise correction) raising the noise levels to around 74 dBA and higher if loud trucks pass, disturbing people

14 All must be done in compliance with the Uzb. Law on Protection of Archaeological Monument, Oct. 2009 15 A 380 traffic at night has been observed to decrease by as much as 75 %, therefore reducing traffic to 65-75 vehicles per hour in ,e.g., 2020. 16 the perceived night noise correction of +10dBA (an internationally accepted factor) is applied in this case.

IKS GROUP OF COMPANIES 39 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT and animals within the 50m contour. This disturbance will reduce with time as people get accustomed to the road operation. No estimated noise levels will be detrimental to health or hearing.

189. These predicted noise levels, even at 100m from the pavement edge, will be > 30dBA above the pre-project noise levels (rural residential and rural agriculture equal 42-45 dBA). Road traffic noise will be a significant impact on the local villages and settlements in the project corridor.

Table 9. Noise (L10 & Leq) levels at 10 and 50 m for edge-of-pavement, 2.5m height: 0600-2400h. Estimated L (dBA) and L 10 eq Correct. Location Along (dBA) 50m soft Year AADT/d Nearest UZB Std. New Alignment 10 m 10 m ground - Receptor (L ) (Leq) 10dBA 10 (50m) L10/Leq Km 2010 988A 61 58 41/38 Yes 601.5:Kaltamin 2020 3075 69 66 49/46 Yes Maximum or E. & W. 2030 7975 73 70 53/50 Yes Permitted in Km 2010 988 61 58 41/38 Yes residential 610:Guldrursun 2020 3075 69 66 49/46 Yes area: Kalla 2030 7975 73 70 53/50 Yes Day=65d 2010 988 61 58 41/38 Yes Km BA, 617.5:Sartoby 2020 3075 69 66 49/46 Yes Night= Dulmin Kalla E 2030 7975 73 70 53/50 Yes 55dBA Km 620.4: 2010 988 61 58 41/38 Yes KMK Sartoby Dulmin 2020 3075 69 66 49/46 Yes 12.01.08- Kalla W. ( & Yes 2030 7975 73 70 53/50 1996 school) A This value is an estimate, assuming the road is in place in 2010; instead of the approx. actual shown in Table 10.

Mitigative actions to reduce the noise levels will be taken for at least all the dwellings within the 100m wide corridor of impact. This will include the planting of dense vegetation on 2-3m high earthen berms created from the waste materials or from other sources. Any topographic features along the road will be used as natural barriers. Noise barriers along the 4 sensitive areas will be discussed with Hokimiyat officials to decide what type of noise attenuation will be acceptable, with berms and barriers being the recommended measures by the consultant (http://www.fhwa.dot.gov/environment/noise/noise_barriers/design_construction/design/index.cfm) noise insulating windows for nearby dwelling will also be offered.

190. Based on the predictions (Table 9), noise mitigation will be required at the 4 sites, but the extent is uncertain until actual measurements have been taken.

191. The noise meters will be used to measure actual noise levels and calculate L10, Leq, and Lnight at the 4 sensitive areas, according to international methods. Based on exceedences of these standards, the type and extent of mitigation will be defined.

192. Night time speed limits of 90 km/h will also be posted in these sensitive areas, since lower vehicle speeds will reduce the noise level.

IKS GROUP OF COMPANIES 40 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. Degradation Of Local Air Quality With Increase In Road Traffic 193. Existing air quality in the vicinity of A 380 is unpolluted as there is very little if any traffic, with much of the alignment passing across fields and open spaces. At present (2010) there is no significant difference in the air quality among the four sensitive sites.

194. The new traffic volumes of AADT 3,075 by 2020 and AADT 7,975 by 2030 will result in a significant degradation in air quality in the project Airshed (within 100 m of the road centerline) over existing conditions (very minor traffic volume of 300 PCUs/day). Based on historical data and traffic volume information collected in January 2010 (Table 8 Table 10), 2020 and 2030 air quality conditions, the five key parameters will be dramatically affected (Table 10). Increases over existing condition will be: for NO2 44 times, for TSP, 30 times, for THC 50% higher and CO2 90 times higher than 2010 conditions. By 2020 all parameters measured will be significantly above Uzbekistan’s national standard. By 2030, with traffic volume more than doubled over 2020, a further increase in local air pollution is predicted. Several technological changes to the Uzbekistan vehicle fleet will help to significantly reduce emissions. These will be a) mandatory use of catalytic converters, since lead has been banned from all petrol since 2004. Catalytic converters reduce major pollutants by 90%. B) The fuel used in Uzbekistan will be refined using ever improving method, therefore lowering emission volumes; in particular for diesel fuel used by 20% of the traffic. Finally, C) the maintenance and emission compliance certification program will be more widely applied.

195. Negative effect need to be weighed against the benefits of reduced emission in the urban areas of Turtkul and Beruni starting in 2020. Through the urban areas air pollution will remain at 2010 levels, even by 2020. The new road is likely to attract 20% additional AADTs per day. This diversion will be mostly from the railway, much of it freight hauling and a more environmentally friendly mode of transport. This means that to the switch from rail to road transport along the new road will marginally decrease any carbon saving to reduced congestion.

196. The new road, on its own, will contribute minimally to air quality improvement as it is located between much longer stretches of poor quality road. Any travel time and fuel savings generated by the improved sections will be dampened by the slower movement on the unimproved sections. Only when the entire A380 is upgrade will a real time/fuel saving, coupled with CO2 and carbon emission savings be realized.

IKS GROUP OF COMPANIES 41 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 10. Predicted air quality at five sensitive locations 100m distance of the bypass C/L Air Quality Parameters: Avg. 24hr Location Year AADT contin. Conc. Along New Alignment Units No./d NO2 TSP CH CO mg/m3 mg/m3 ug/m3 mg/m3 2010B 350A 0.03 0.10 1.0 0.04 Km 601.5:Kaltaminor E. & 2020 3075 1.33 0.30 1.56 3.6 W. 2030 7975 10.03 0.85 1.98 8.9 2010 350 0.03 0.10 1.0 0.04 Km 610:Guldrursun Kalla 2020 3075 1.33 0.30 1.56 3.6 2030 7975 10.03 0.85 1.98 8.9 2010 350 0.03 0.10 1.0 0.04 Km 617.5:Sartoby Dulmin 2020 3075 1.33 0.25 1.56 3.8 Kalla E 2030 7975 10.03 0.85 1.98 8.9 2010 350 0.03 0.10 1.0 0.04 Km 620.4: Sartoby Dulmin 2020 3075 1.33 0.25 1.56 3.6 Kalla W. ( & school) 2030 7975 10.03 0.85 1.98 8.9 Uzbekistan KMK: (24hr Contin.): KMK 0.085 0.15 1.5 3.0 A This value assumes minimally low traffic volume in vicinity of the new alignment located on open agricultural land. B. Basis for 2010 data: Review of Ambient Air pollution and emissions in cities and across the areas of activity of Uzgidromet (Uzbek Weather Station Service) of the Republic of Uzbekistan for 2008. Prepared by the Center for Hydro Meteorology Service under the Cabinet of Ministries of the Republic of Uzbekistan. Service Unit for Monitoring of Ambient Air, Surface Water and Soil. Page 36, 37. 116. 117). Values for 2020, 2030 estimated using the CREDO pollution prediction model.

197. The consultant also observed that posted (very infrequently) speed limits of 90- 100kph on A-380 are nearly always exceeded by 30-40 kph, accompanied with rapid deceleration and accelerations. This pattern dramatically increases the emissions per km travelled (by more than 15%) per trip. Without speed limit enforcement this pattern will continue and may only get worse as the road is improved. The consultant noted that more signage will be key to helping with speed limit enforcement. The average saving in travel time coupled with better emission technology and other improvements mentioned, will result in net CO2 and hydrocarbon emissions remaining at or below 2010 levels.

198. To help with reduction in CO2 and TSP, RRF will require roadside plantings to begin as soon as possible after completion of work in a section of road. These planting will include woody plants, shrubs and trees.

199. Finally, RRF in consultation with Uzavtoyul will explore the recommendation of the consultant to to have RRF undertake mobile tailpipe emission testing for both petrol and diesel vehicles, and to purchase two such units17 (price between $4,000-7,000 each), for use on A-380. Uzbekistan already has this equipment in use and has established standards and a set of fines. The consultant recommended that a requirement to withhold vehicle registration until emission levels are in compliance with the standard, be implemented. These measures will be discussed within the government and appropriate measures taken. These actions will help to further mitigate the rise in emissions along the road.

17 One unit required for testing of petrol-powered vehicles and the second for diesel vehicles and trucks.

IKS GROUP OF COMPANIES 42 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

5.3.2 Water Quality and Hazardous Materials C. Spill Of Hazardous And Toxic Material 200. Over the past 10 years spills along A 380 have not been recorded, mostly because there is such a small volume of these materials shipped by road. Most hazardous and toxic materials are shipped by rail, and therefore only minor road-based spills of less than 4000 L or 25 tons are due to truck accidents. When checked in late 2009 and again in July 2010, there were no records over the past three years of collisions involving the spills of hazardous or toxic materials anywhere along A 380. The risk of a spill is extremely low; on the order of 1 accident with a spill every 10 years. Assuming more or less the same future traffic composition as shown in the traffic projections (Table 8), the risk of a spill by 2030 should stay the same as now, since improvements in shipment methods, enforcement of mandatory safety procedures, improved labeling of hazardous shipment, and a further modal shift to rail, will balance the increased truck volume.

201. At present neither RRF nor UZOVTOYUL keep reliable accident records or have a written accidental spill protocol. This is in contrast with the national rail operator UTY which not only has a spill database but a spill management protocol and procedure.

202. RRF supports the consultant’s recommendation that once the traffic volume of trucks doubles and the movements of hazardous and toxic materials increase significantly, a specific spill contingency plan will be prepared and that provincial offices will be trained to respond to spills. When the time comes, UTY will be approached for assistance in development of a plan and with training. They have decades of experience.

5.3.3 Soil Loss, Erosion and Visual Intrusion D. Degraded Former Revegetated and Rehabilitated Areas 203. Unless villages contracted to plant and maintain the revegetation and tree planting areas continue to do their work, it is highly likely that plants will die and much of the past work will be wasted. For this reason it will be essential that the maintenance contracts with local villages remain in force for at least three years into the operating period of the road. RRF will ensure that these contracts or a specific maintenance program is maintained. ST auditors will be required to check the status of replanted and revegetated areas two times per year for the first three operating years.

5.3.4 Implementation Infrastructure E. Failure To Complete And Deliver The Construction Mitigation /Monitoring Completion Report 204. The contractor, in cooperation with the PMU’s CSC is required to prepare a Mitigation/Monitoring Completion Report (see Sect. 5.2(K)), which must be submitted to RRF who then pass it on to Uzavtoyul’s unit which will operate the road. Uzavtoyul will then follow up with mitigative measures such as further revegetation initiated by the contractor18 and undertake measures such as air and noise mitigation as defined in the EMP. RRF and its PMU are committed to making certain that the contractor carries out this task.

205. Other measures to continue into the operating period will include the confirmation of the record of the decommissioning of any work areas, work camp sites including waste dumps, etc and the sealing/securing of wells newly dug for use during the construction period.

18 RRF will require the PMU to extend the contract of the villages who participated in the revegetation program for three years into the operating period of the road, in order to ensure proper maintenance and the survival of the plantings.

IKS GROUP OF COMPANIES 43 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

5.4 Irreversible and Irretrievable Impacts 206. With care and planning, as defined in this EIA and its EMP, no irreversible or significant irretrievable effects are anticipated.

5.5 Cumulative Impacts and Mitigative Measures 207. The chances that the road will invite in-migration triggering cumulative effects is highly unlikely as 100% of the land along both sides of the alignment is privately owned and village and commune committees will ensure that this does not happen. The owners may sell and development happens, but this cannot be controlled by the project. The consultant suggested that roadside landuse zoning be considered and RRF will consult with Uzavtoyol on the practicality of such an approach.

208. No other cumulative impacts are anticipated as this is a open access road link for a single highway across Uzbekistan There are up to 15 at-grade road crossing and other smaller roads all along the alignment. No other activity that could lead to cumulative negative impacts is envisioned. There is a plan by Uzbekistan to continue the bypass to reconnect with the existing A 380, but little is known of this at present. There is also a plan to build a feeder road going west from the ADB funded bypass at km 628 to the new Amudarya River Bridge. Neither of these projects would trigger cumulative impacts as they will be separated by time and physical location. These associated works should have full EIAs, but are not subject to ADB requirements.

5.6 Other Potential Impacts (Based on ADB SPS 2009) 209. ADB’s SPS 2009 identifies ten other components of the environmental and potential environmental impacts which must be checked with every EIA. Impacts (i) through (v) deal with wildlife and therefore the following facts in support of the conclusions reached need to be underscored.

210. The road corridor is an significantly disturbed areas with all pristine habitat obliterated in the 1950 and since then systematically maintained to be an intensively uses cash crop zone, with massive application of pesticides, herbicides and disposal of all sort of chemicals. The use of chemicals ended with the collapse of the Soviet period, but the maintenance of a cashcrop agriculture are fuelwood windbreak system continues. Uzbekistan’s Red book indicated that there are no threatened or endangered species in the project area.

211. There certainly is wildlife in the project areas, but comprised of the common species assemblage as identified in the EIA, and verified by local people. The road construction will have marginal impact on these species as they are widespread. Even if there is some mortality the species health, recruitment and survival will not be affected. There are 100s of thousands of hectares of similar habitat and only 980ha will be used for the road. Impact on widely distributed common species as listed in the EIA will remain insignificant. The conditions potentially impacted could be:

(i) Biodiversity Conservation and Sustainable Natural Resource Management

212. This is not relevant in the context of this EIA as all areas traversed have received long term and continuous disruption and anthropogenic changes. The special Tugai Forest is located >100km to the north of the project and completely outside the zone of influence.

(ii) Modified Habitats

213. The entire area has seen major changes over the decades, beginning with the massive dewatering of the lake and wetland systems in northern Turtkul District as well as Ellikkalla and Southern Beruni districts during the early Soviet era. Requirement for cotton

IKS GROUP OF COMPANIES 44 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT production converted much of the area into irrigated fields. Since then a more diversified agriculture has flourished and has been maintained in a more or less steady state. The project is not expected to further modify the habitat around the road, other than increasing noise and local air pollution from the new traffic.

(iii) Natural Habitats

214. Undisturbed natural habitat does not exist in this study corridor.

(iv) Critical Habitats

215. Critical habitat as related to any species does not exist in the project area. The irrigation canals, many built about 60years ago, have created quite diverse forests along their shores and which are now de-facto critical habitats, i.e. the only forested areas for wildlife to exist (para. 12, 72, 77 and Figure 3). These will be marginally disturbed by the bridge crossings.

(v) Legally Protected Areas

216. There are no such areas in the project corridor of impact

(vi) Invasive Alien Species

217. Alien invasive species exist such as the Russian olive tree, but their spread will not be changed in any way by the project. In fact the clearing of some windbreaks will require removal of Russian olive clumps, to be replaced with local species. While invasive, the Russian olive makes an excellent windbreak and provides food and shelter for small mammals and birds.

218. Other potential actions leading to impacts could also involve:

(vii) Management and Use of Renewable Resources

219. The only renewable resource used extensively is water, both surface and groundwater. This is managed through district plans with a focus on management of Amudarya water extraction. Trees are used for firewood but all are planted and operated as fuel wood plantations by individual villages.

(viii) Pollution Prevention & Abatement, Wastes &Hazardous Materials

220. These two potential impacts are addressed in detail earlier in this EIA

(ix) Pesticide Use and Management

221. Pesticides are not used on this project. The management of roadside vegetation is done by manual trimming, with the cut materials used as animal fodder.

(x) Greenhouse Gas Emissions

222. Unquestionably, greenhouse gas emissions will continue to grow as long as internal combustion engines are used and there is no sign that Uzbekistan will change very soon. In 2010 Karakalpakstan experienced a fuel crisis with the price per liter rocketing to over SUM 4500/L (as compared to 1600/L in Urgench). This has reduced the amount of traffic somewhat but will be a short lived condition. Vehicle ownership is growing, and fortunately the fleet is getting younger and the fuel refining improving, thus reducing the overall

IKS GROUP OF COMPANIES 45 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT pollution load per liter of fuel consumed. The rapid increase in the use of catalytic converters19 is also making a significant difference.

223. The fuel crisis had caused some conversion to LPG, but given the lack of LPG filling stations this conversion is not significant.

224. The problem is with the heavy vehicles, trucks and buses which remain old, high emission sources, operate without rigid enforcement, and are not subject to an old vehicle retirement program.

225. The bypass will reduce net emissions as there traffic will move unobstructed with no stop-and-go situation as found along the present A-380 in Turtkul and Beruni ( see Air pollution discussion Sect. 5.3.1.

(xi) Health and Safety

226. A separate section (Sect. 5.2.4) addressing both occupational health and safety as well as community health and safety has been included in this EIA.

5.7 Categorization of Impacts

5.7.1 Preconstruction Period 227. Six sources of impacts and impacts are identified. Of these A, B, D, E and F are of equal importance with C following close behind. C is considered less important since it can be repaired at a later time. If any of the other items are not addressed a negative ripple effect can damage the entire safeguard process and value of the EIA.

5.7.2 Construction Period 228. Fourteen important construction period impact are identified. Of these A-E, G, I, J and M are considered priority impacts since if not acted on during the construction period could lead to more permanent damage and environmental degradation. F,H,K, L and N could be considered the second tier effects since even if unaddressed they will end after the construction period is over, leaving little if any damage behind.

5.7.3 Operating Period 229. Five impacts are identified as possible during the operating period. Impact A and B are considered a priority and in fact are the two most important impacts with the greatest potential impact duration and magnitude of all of impacts listed in the EMP. Operating period traffic noise and air pollution, if left unaddressed will remain a long term and chronic issue for four small communities and beyond—along the road alignment as the population grows. Impacts C, D and E are less important although D addressing maintenance of construction period mitigative measures such as revegetation is essential since failure to maintain will reverse any good done during the construction period.

5.8 Proposed Environmental Enhancements 230. Many of the kallas are unique adobe structure at least a thousand year old and of considerable historical significance for the region, yet lack adequate access or facilities. As a way of adding value to the project it might be economically useful to upgrade the access roads, provide signage and interpretative plaques and materials for several of the largest sites closest to the new road. Site operations could be handled by the local communities and revenues collected from tourists.

19 Uzbekistan banned the use of leaded petrol in 2004.

IKS GROUP OF COMPANIES 46 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

231. The consultant recommended that a pilot project be initiated for Guldursun Kalla, located in Ellikkalla District just 3 km from the new road. It is a large and interesting site (Map 3).

5.9 Social Sector Impacts

5.9.1 Social Economic Conditions 232. In comparison with all other areas of Karakalpakstan, the three project districts are considerably wealthier than their neighbours. However, the Region is still 15-18 % less income than the rest of the country.. The national marginal wage is USD2.15/day and the percentages of wage earners at that level in the three districts are: 26.5 % Beruni, 53% Ellikalla, and 60% Turtkul. This is compared with a 20% national average.

233. The poverty and social analysis did not point to any specific mitigative measures to reestablish livelihoods or other compensation related specifically to socioeconomic loss. All compensation is defined in the Land Acquisition and Resettlement Action Plan (LARAP).

234. Any residences located within 50m of the edge-of-pavement will be compensated, either through relocation, noise barriers, noise insulating windows or some other mutually agreed to action. The mitigative measure will be based on actual noise measurements taken using the following three indicators: L10, Leq and Lnight.

5.9.2 Poverty Impact 235. The LARAP contains special provisions for the marginal income and vulnerable people, in relation to monitory compensation for loss of land/structure or fixed assets. The LARAP also includes opportunity cost compensation, e.g. lost crop yields, and payments to cover growing years to first useable yield, etc.

5.9.3 Resettlement 236. A full LARAP has been prepared by the consultant. It is available from RRF and the project PMU. That report identified a total of 576 affected people (APs) or 90 households. To date the Inventory of Losses survey has been completed for all affected people. Of the total 576 APs, 180 or 25 households will have to relocate. A total of 95.55 ha of mostly agricultural and residential land will be expropriated. Five small businesses will also have to be moved. An entitlement, compensation matrix, defining optional measures for compensating APs suffering varying types of losses and an implementation timetable has also been approved by the government of Uzbekistan.

237. At this time, not a single AP is being relocated due to environmental issues.

6 Grievance Redress Mechanism 238. ADB requires that RRF establish and maintain a grievance redress mechanism to receive, facilitate and resolve grievances of affected people concerning the delivery of environmental safeguards at the project level, as defined in the assessment documents (primarily the EMP). The grievance redress mechanism will be scaled to the risks and impacts of the project.

239. The RRF’s PMU, in cooperation with the regions and impacted Districts, will establish Grievance Redress Committees (GRCs) at both levels. At the region level these will be comprised of the Khakim’s representative, a representative of RRF and one member from the Region Environment Department. One member of the committee will be a woman. One person on the committee will be identified as the point of contact for any grievance claim. At the district level it will consist of a government official and two no-government members, one being a woman. GRCs established in each District affected by the road will

IKS GROUP OF COMPANIES 47 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT be the most important. The GRCs will be in place before the start of the construction period.

240. Grievances can be filed in writing or orally with the GRC’s district-level contact person. The committee will have 15 days to respond with a resolution. If unsatisfied with the decision the complainant will be able to resubmit the grievance with the region GRC for final resolution, and at the same time submit a copy of the letter to the ADB project officer in charge. The region GRC will have a further 15 days to provide a decision, and if no ruling is forthcoming the grievance will be automatically decided in favour of the complainant and all compensation will be provided, within 30 days of that decision.

241. To be effective the composition and operation of the GRC will be made known to the regions and districts in the project area via a letter as part of the implementation of the EMP. The GRCs composition and availability will also be posted at all Hokimiyat offices. This will be in addition to the fully translated EIA going to the regions and districts, as promised at the consultation sessions.

7 Information Disclosure, Consultation and Participation 242. Two sets of consultations were held in Turtkul and Beruni, Karakalpakstan. The first set focused on introducing the project to all people attending, specifying an implementation timetable, defining the alignment and work to be done and anouncing a second set of consultations.

243. The presentations (See Annex D) were delivered using PowerPoint slides in Russian, while the delivery was in Uzbek (standard procedure in Uzbekistan). Sessions were held on August 2-3 and then on August 27th. Attendance at the first two meetings was 50 and 61, and the second session 42 . All major professions, political organizations as well as womens groups were represented (see Annex D for a listing). During the all three sessions women attending were 15 and 12 and 8 respectively.

244. During the August 27th meeting there were fewer people, despite invitations going to 75 people. The second session focused in describing the potential impacts identified and the mitigative actions to be undertaken as well as the implementation timetable for these actions. This session also defined when, where, how and to whom the completed and translated EIA and its EMP would be made available. A new brochure and map was distributed showing the new alignment in relation to all roads and settlements.

245. During both sets of sessions, the presentation on environmental safeguards was approximately 45 minutes long, followed by an open question and answer period lasting from 30 minutes to one hour. New presentation was prepared for the second meeting held on August 27th, 2010.

7.1 Logistical Details 246. Consultations were announced in the local newspaper one week before the consultation dates (See Annex B). Consultations were held in the District office meeting halls in both Beruni and Turtkul, and for the second session only in Turtkul. For the second session transportation was provided for anyone interested in attending from Turtkul. A total of 20 people were bused to the Turtkul District Office.

7.2 People Delivering the Workshop and Information Disclosed 247. The session was delivered in Uzbek, using a slide presentation (text in Russian) by the national environmental specialist (slide presentations are provided as Annex E).

IKS GROUP OF COMPANIES 48 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

7.3 Summary of Comments by Participants 248. Generally there was no objection to the project, but concerns were raised. Participant comments were few, but focused on proper monitoring of the contractor during construction, the protection of the wetlands and lakes in the Ellikalla District and the interest of the villages along the road to undertaken roadside replanting and maintenance as contracted assignments with the RRF. Further there were concerns about air and noise levels after the road was in operation and that appropriate mitigative actions would be required.

249. During the second round of consultations, participants focused in engineering questions with one question regarding the replacement of trees lost to the project.

250. No other specific environmental issue were raised (See Annex D).

7.4 Summary of Reply by Workshop Team 251. The national environmental specialist and other members of the consultant team as well as the officials assembled considered the village proposals for community-based maintenance an excellent idea and followed up with meetings at village offices. Other suggestions were acknowledged and follow up actions were to be reported on during the second set of consultations.

252. Replies to the issues raised is recorded in the table on the record of the meeting but generally reference was made to other materials already prepared, including an inventory of all trees lost ( found in the LARAP).

7.5 Use of Consultation Results 253. The consultant has incorporated all recommendations from the consultation in the EIA and its EMP. These two recommendations were close monitoring of the contractor’s work and provision of contracts to villages for roadside replanting and maintenance.

254. A detailed plan for noise mitigation is defined in the EIA and its EMP. This involves field measurements of noise during the operating period, provision of noise attenuation measures for at least five sensitive sites and possible more. Measures being considered are earthen berms with vegetation plantings, noise barriers and noise insulating windows. Decisions on which measures to apply, and where will be based on field measurement and consultation between the RRF, its PMU and the villages concerned. Speed limits at night and other measures were also identified by the consultant and considered important by stakeholders.

7.6 Follow Up Program 255. The consultant followed up with village level meetings (4 to date) to further identify interest in village-based roadside revegetation programs. All villages contacted were interested in participating. The consultant estimated that 6 villages would be ready to participate. Contracts would be 3-year performance and results-base assignments, such that payment and continuation would be based on the survival rate of the plantings at the end of each year.

256. The EMP contains specific items regarding each of the concerns raised by the participants at the consultation sessions.

8 The Environmental Management Plan 257. The EMP identifies the mitigation and compliance monitoring requirements, including specifying how, when, where and by whom, the mitigation and monitoring is to be carried out during the three key phases of the project; the preconstruction or planning and

IKS GROUP OF COMPANIES 49 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT design period, the construction period and the operating period. The mitigation and monitoring actions will be implemented by (i) RRF during the pre-construction period and its (ii) PMU during the construction period, and (iii) Uzavtoyul during the operating period. All actions are defined in detail in the EMP’s Mitigation (EMiP) and Monitoring (EMoP), found in Annex A, Tables 1-2. Both tables are self explanatory and have been prepared such that they can be used as environmental clauses in the contract documentation and as monitoring checklists. The action items in the EIA text, the EMiP and EMoP are fully cross referenced.

8.1 The Environmental Mitigation Actions (EMiA) 258. Key actions listed in the EMiA (Annex A, Table 1) for the preconstruction period (six actions) include the need to make planning decisions to ensure that rail is used for the transport of rock and aggregate, to specify mitigation requirements for contractors in the bid documentation, and to set in place a guideline for side borrowing and roadside borrow pit operations and rehabilitation. Another measure focuses on making certain that EIA and EMP documentation is properly translated and distributed to all key stakeholders20. As well, measures are defined to ensure that adequate compliance inspection staff is deployed during the construction period.

259. During construction, mitigative measures (14 actions) focus in ensuring that contractors undertake all their work in an environmentally responsible manner, properly disposing of wastes, controlling the use of fuels and lubricants, revegetating/rehabilitating any sites cleared during construction, protecting irrigation systems during road and bridge construction, being aware of the value of the remnant lakes and wetlands and protecting them be avoiding and minimizing construction in these sites.

260. A number of mitigative measures to reduce noise and air quality degradation during construction are specified; particularly for the four sensitive located defined in the EIA. These actions include limiting working hours, dust control, vehicle maintenance, and sound baffles and being aware that construction dust must be managed as it can travel long distance. RRF will be the lead for this work, with its PMU and CSC completing the mitigative and monitoring actions.

261. The five operating period mitigative actions focus on ensuring that key mitigative measures are carried over from the construction period into the operating period and that a spill contingency protocol and plan be considered after 2030 when traffic volumes begin to rise above 10,000 PCUs/day. Uzavtoyul will be in charge of the safeguard actions during the program’s operating period.

262. As this is a new road, both air and noise levels will increase very significantly over existing conditions (Table 10) although likely within Uzbekistan standards for roadsides. Measures including vegetated berms, noise barriers, noise insulating windows as well as speed limit control in sensitive areas are a number of actions to be taken, in consultation with district officials. The consultant has also recommended the use of portable tailpipe emission testing equipment as an enforcement tool.

8.2 The Environmental Monitoring Actions (EMoA) 263. The EMoA (Annex A, Table 2) lays out the monitoring and reporting requirements that RRF is committed to overseeing during the same three project phases as shown in the EMiP. The EMoA defines five pre-construction period monitoring actions, eleven construction period actions and five operating period monitoring requirements; in parallel

20 This may seem an unnecessary point, but the consultant pointed out that in their experience over many projects this simple action is frequently overlooked, short-circuiting the entire environmental management process

IKS GROUP OF COMPANIES 50 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT with the EMoA. Most important during the pre construction period will be the consistent and regular actions dealing with compliance of RRF’s road design team, ensuring that preconstruction engineering actions to avoid/limit environmental impacts are implemented, followed by careful compliance monitoring of the contractors. Verification that EIA documentation has been translated and distributed will be another important task.

264. During the project design period, monitoring (Annex A, Table 2) will focus on confirming RRP’s commitment to arranging and participating in training programs on environmental assessment, mitigation and monitoring methods and reporting. Secondly the contract documentation will be examined by the CSC staff to verify that appropriate environmental safeguards have been added as contract specifications.

8.2.1 Construction and Operating Period Actions 265. The EMoA table defined 14 construction period monitoring tasks. These tasks will deal mostly with compliance monitoring of the following construction-related actions:

consultation with local community people prior to initiation of work that affects their livelihoods, e.g. access restriction and traffic congestion , noise management; execution and management of revegetation program; handling and delivery of construction materials; handling and storage of petroleum products; dust and construction air quality management at construction sites; and general good housekeeping activities by the contractor at all construction sites. 266. Monitoring during the operational period will concentrate on assuring that the mitigative measures implemented during the construction period are fully implemented and maintained.

267. A portable sound meter will be purchased for use during the construction and the operating period. During construction the meter will be used to measure sound at construction sites and contractor yards. If sound is more than 10dBA above background levels for any averaged 15 minute interval, the contractor will be required to reduce the noise level buy any means. During the operating period the meter readings will determine the extent and level of noise mitigation required for residence and facilities impacted by excessive noise

268. The recommendation of the consultant to purchase and use two portable tailpipe emission testing units for use during the operating period will be discussed within RRF, Uzavtoyul and with ADB to establish the procedures and funding to implement such a program along A-380.

269. RRF will instruct it PMU, the CSC and Uzavtoyul that the monitoring timetable included as column 4 in both the EMiA and EMoA tables will need to be adhered to. Key timetable elements are:

During the design period, monitoring will take place once, just before the bids are released and will be completed by RRF staff. All monitoring will be completed before the start of the construction period. During the construction period monitoring will be every 3-4 months, based on a timetable prepared by the RRF and its PMU, and/or as specified in the EMoP, using the EIA as a baseline document, for the 3-year construction period. This will be in addition to the daily construction inspection. Construction period monitoring must be completed at the time the contractor signs off on the work.

IKS GROUP OF COMPANIES 51 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Operational period monitoring will be once or twice a year, depending on the requirements, for a three year period, with work done mostly by Uzavtoyul, or its consultant. Noise measurements will likely not start until year 3 or 4 of operations, and may in fact take place even later when traffic volumes begin to build, as in 2020.

8.3 Performance Indicators 270. The single most important indicator used to assess whether the EIA and its EMP has been useful is the extent of change of the environmental conditions from pre construction to the operation of the road. The target is acceptable21 change and this should be achievable if measures defined in the EMP are complied with. Column 5 of the EMoA table defines the required reporting for each pair of mitigation-monitoring activities. Another indicator of performance will be timely and credible reports or checklist recording compliance and follow up actions taken by the ST. The consultant suggests that this report be prepared as a monitoring checklist consisting of all mitigation-monitoring actions and the compliance statements as defined in the EMP, then used as the basis for the safeguards section of the semi-annual progress report to the ADB. Non compliance will be acted on by RRF or PMU within four working days of non-compliance being reported.

271. Compliant noise levels, controlled dust levels and air quality during construction and operations, adhering to national norms and standards will also be important specific indicators.

272. If tailpipe emission testing does take place another excellent indicator will be the steady reduction in emission levels due to better maintenance and fuel and the use of catalytic converters.

273. Proper ST monitoring and consistent report, establishing a clear record of timely environmental mitigation and monitoring associated with periodic due diligence inspection, will be the best record of how effective the EIA was/is. RRF will strive to deliver this level of environmental governance.

8.4 Implementation Arrangements 274. Implementation arrangements for environmental safeguard measures are critical to completing a fully compliant set of mitigation and monitoring actions. As soon as possible after the EIA has been approved, RRF and its PMU will examine it carefully and prepare a chart defining who is responsible for the submission of compliance monitoring reporting during all three stages of the project. Essential actions will be:

(i) during the detailed design stage, the EIA results need to be examined for guidance in helping engineers design-out and prevent environmental impacts. For this to occur the RRF will ensure that all EIA documentation, particularly Environmental Management Plan( EMP) are translated into the local language and distributed to all stakeholders, namely the Design team, Program Management Unit(PMU), Region and District officials as well as the Contract Supervision Consultant(CSC);

(ii) during the bid document preparation, environmental clauses reflecting the environmental impacts and mitigative measures defined in the EIA documentation, must be inserted; and,

21 In the context of this EIA, acceptable means remaining within Uzbekistan standards and norms and within ADB basic guidelines on environmentally acceptable change—as defined in SPS-2009

IKS GROUP OF COMPANIES 52 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

(iii) As the construction is about to begin, the contractor, working closely with the PMU and its CSC, must prepare an action plan for implementing the mitigative measures defined in the EIA’s EMP.

(iv) RRF will insure that safeguard inspectors are on the job at the start of the construction period and the regular monitoring and reporting as required in the EMoA table is undertaken

8.5 Institutional Capacity, Needs and Proposed Strengthening 275. Uzbekistan established its EA law in 2000. It has been implemented on a limited basis and is poorly understood outside Tashkent and a few of the other major centers. Environmental capacity needs considerable strengthening22. In 2003 the World Bank funded a broad ranging study to examine and provide a plan for strengthening the country’s environmental agency, delivering some training, helping to identify and fill in regulatory gaps, and clearing up confusing overlaps in jurisdiction. The benefits of this work were not felt by the road transport sector, as they were not included in the training.

276. The RRF’s staff has some expertise in the biophysical sciences, such a hydrology, soils engineering and meteorology but lacks the integrative skills of ecology and environmental management, or for that matter the experience needed to undertake most forms of environmental assessment.

277. The 2000 legislation states that all new projects require an environmental study, beginning with a screening; its detail depending on which of four categories a project was placed in. To date, most projects have not received full EIAs and UZB continues to lack technical skills in this area. This means that the RRF and UZOVTOYUL will need considerable upgrading if they hope to be able to implement the EMP for this study and the ones to come in the future. The RRF and its PMU plus Uzavtoyul must be able to plan, undertake and deliver:

Environmental Screening Studies Initial Environmental Examinations; Environmental Assessments including Environmental Management Plan design and preparation Undertake compliance monitoring and reporting. 278. The RRF recognizes this weakness and will, as a first step set in place a PMU with an environmental Safeguards Team, including an environmental specialist to help with program-related environmental matters. Secondly, RRF will organize one day workshop in Beruni on environmental management and assessment for its provincial management and technical staff, as it is applied by the ADB and in Uzbekistan. RRF or its PMU and CSC will organize the workshop and will require that successful contractors also participate in the workshop. The focus of the workshop will be on EMiA and EMoA interpretation, implementation and reporting. RRF may request an international consultant prepare and deliver such a training session.

8.5.1 The Safeguards Team 279. RRF will staff a Safeguards Team (ST) within the Program Management Unit established to manage this MFF Loan. This unit will have two social sector specialists and one environmental safeguards specialist, assigned to assist with all mitigation and monitoring functions of the MFF Loan tranches. They will be assisted by international

22 Strength in specific fields such as air pollution, noise pollution, hydrology, forestry, etc. is excellent. It is the integrative skills required to undertake manage and follow-up environmental assessments that is only now being developed.

IKS GROUP OF COMPANIES 53 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT specialists, retained either by the CSC or independently (Figure 6). The ST staffing, as defined in the recently (early 2010) signed agreement between UZB and ADB, is to be for 12 person months over a 3-year period, i.e. intermittently, in order to cover the three construction years and three operating year monitoring commitment.

9 Capital and Re-Occurring Mitigation and Monitoring Costs

9.1 Cost of Environmental Mitigation and Monitoring 280. The pre-construction costs will focus on preparatory work for the construction period as well as the training workshop. Total costs are estimated to be around USD 22,500, with the largest amount going to the 1-day training session in Beruni.

281. Proper construction site and work camp ‘good housekeeping’ are considered part of the contractors’ operating costs and will not have a separate environmental budget item. Compliance monitoring of contractors’ worksites and work camps will be undertaken and a special budget item of USD 3,000 established for quarterly inspection and reporting during the 3-year construction period. This is included in the reoccurring costs shown in Table 11. There is also a capital expenditure for a portable noise meter and construction of 1000m2 of earthen noise barriers. In addition, another USD 30,000 is included for construction period revegetation and replanting contracts with villages (Table 11). The total estimated cost will be $71,700.

Due to the need to renew contracts with villages to maintain revegetation areas , purchase if noise insulating windows, as well as two mobile tailpipe emission testing units, plus other mitigation related to noise management at the four sensitive site means that the costs during the Operating period will be slightly higher than for the other two. Operating period costs will equal around $72,000. The total estimated costs over the 6.5 years mitigation and monitoring period would likely be around $ 166,000.

Table 11. Estimated Capital and Re-occurring Mitigation and Monitoring Costs for the 6.75 year mitigation and monitoring period. Item Unit Cost Duration Cost ( USD) PRE-CONSTRUCTION PERIOD 0.75 Yrs Capital Costs Training: EIA, Mitigation, monitoring & 1.5 reporting 1 Loc. days 18,500 Prep of construction period due diligence 4,000 materials and distribution (5 tasks). See EMP Pre Construction Period Total 22,500 CONSTRUCTION PERIOD 3 Yrs. Capital Costs Portable Noise meter (incl. calibrator) 1 one 1,700 Contracts with villages to revegetate and maintain replanting/revegetation areas ( 5- $5,000/for 3 for 3 6 contracts)** years/ village years 30,000 Construction of noise reduction measures (berms) at five sites** $15/m2 1,000m2 15,000

Re-occurring costs Mitigation and Monitoring (11 actions over 25,000

IKS GROUP OF COMPANIES 54 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Item Unit Cost Duration Cost ( USD) 3 years). See EMP

Construction Period Total OPERATING PERIOD 3 Yrs. 71,700 Capital Costs Renewal of contracts with villages to manage revegetation areas for another 3 $5,000/for 3 for 3 years** years/ village years 30,000 Noise insulating windows for 30 $100/wdw 100 wnd 10,000 residences** Tailpipe emission analyzers: 1 petro), 1- 5,000 2 10,000 deisel Training for use of equipment 1 Loc. 1 day 1,000 Re-occurring costs Following up on mitigation and monitoring actions taken during construction period (5 actions over 3 years). See EMP 21,000 Operating Period Total 72,000 Total Estimate 166,200 Contingency 10% Not included in the total 16,600 ** It is likely that this cost ($85,000) will be a part of the engineering construction costs and therefore will be subtracted from the total environmental costs. 282. It is standard procedures to include the cost of rehabilitation and revegetation of cleared areas, borrow pits and side borrow areas and noise barriers, and noise berms as pay items in the construction contract, and not as separate environmental items. Should this be the case for this project, the environmental mitigation and monitoring costs will be reduced to USD 82,000, not including the 10% contingency. However, such a reduction will only be made once it is confirmed that costs for compliant rehabilitation and maintenance of these areas is specifically included in the construction contract. RRF will ensure that this happens.

9.2 Cost of Social Development Programs and Resettlement

9.3 Social Development 283. As expressed by both the households interviewed during the SE survey as well as by the participants at the consultation sessions, without upgrading and improvement to feeder roads, linking the bypass to local communities, there will be little benefit derived from the new road. To address this RRF and Uzavtoyul are preparing a feeder road upgrading plan for the three districts.

284. Considerable benefits will be gained by contracting villages to undertake the revegetation/replanting and maintenance work and possibly the building of earthen noise barriers/berms along the four sensitive sections of the bypass.

9.4 Resettlement 285. The full cost of the land acquisition and resettlement associated with the project will be around $1,334,200.00, including a 10% contingency. This total includes compensation for resettlement, restoration and replacement of all fixed assets as well as other items like trees, orchards, and mulberry trees for silk production. Special allowances were also included for vulnerable people, such as disabled and pensioners affected (for details please see the Resettlement Plan).

IKS GROUP OF COMPANIES 55 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

10 Conclusions and Recommendations

10.1 Conclusions 286. For the pre-construction period five mitigation-monitoring tasks were identified, all focusing on designing ways to avoid future impacts. Important actions will include integrating the environmental mitigation and monitoring steps into the bid documentation, and ensuring that adequate safeguard compliance monitoring and reporting is budgeted for the project. . RRF will ensure that the EIA and its EMP are translated into the project area’s local working language. Finally, RRF will lead the organization of a 1-day workshop to be held in Beruni, to address implementation of the EMP, compliance monitoring, enforcement and reporting.

287. The 47 km long road corridor will be along a new alignment through agricultural lands and settlement areas, and therefore will have important impacts, all manageable and addressed through the application of well known mitigative actions. This mitigative and monitoring actions focus on ensuring contractor good-housekeeping practices, construction dust and noise control, protection of small wetlands and lakes, and protection against erosion via rapid rehabilitation and revegetation of cleared areas. The monitoring of the storage, handling and disposal of petroleum products, according to Uzbekistan norms and internationally accepted standards will be strictly enforced. Field measurements during construction will involve sound only. Air quality monitoring will; focus on reporting of visible dust and black smoke from the construction site.

288. Local villages expressed specific interest in undertaking replanting and revegetation work on sections of road passing through their areas. To that end the PMU will sign a number of contracts with villages to plant and maintain specific cleared area for a 3-year construction period. RRF views this as an excellent community-level economic benefit of the project. This program will be extended into the operating period.

289. The 14 construction period impacts and mitigative measures (EMiA-Annex A) are summarized in this EIA and defined in detail in the EMP .

290. Credible, consistent and timely reporting of construction period mitigation and compliance monitoring actions prepared such that these data will be included in the semi- annual report to the ADB.

291. The amount of residual environmental damage due to the project will be directly related to how well the RRF meets its environmental responsibility, and how it uses the EMP and enforces the contractors’ mitigation obligations defined in the EMP. If properly used, there should be few significant residual environmental effects.

292. Two residual effects will be clear: the loss of local air quality and increase in noise along this new road. Four sensitive sites have been identified and one or a number of noise reduction measures have been planned and budgeted. Noise measurements will be undertaken using a project noise meter and these data used to establish noise mitigation options. The most appropriate measure under consideration will be earth berms with vegetation, barriers, insulating windows and speed controls. The best measure(s) to be applied will be decided jointly between the PMU and the local officials acting on behalf of the settlements affected, and using the noise data collected.

293. Mitigating air quality will be much more difficult and measures such as limiting the speed through sensitive sites and encouraging better enforcement of road worthiness inspections, planting of vegetation barriers along A 380 will be attempted. It is hoped that with the vehicle fleet getting younger, emission equipment improving and better refined fuels, the emissions will be kept to an acceptable limit. New dwellings will not be permitted within a 50m wide zone beyond the edge of the road RoW.

IKS GROUP OF COMPANIES 56 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

294. The purchase and use of portable tailpipe emission testing equipment will be discussed and a program may be launched depending on available funds and discussions within the government and ADB.

295. Total estimated costs for environmental, mitigation and monitoring conducted over six years will be USD 166,200.00 minus a contingency (Table 11). If, as is standard practice in most construction contracts, erosion control and revegetation of cleared areas and the construction or noise barriers, is included in the construction budget, the environmental safeguards costs will be reduced to USD 82,000.00 for the 6.5 year period, plus a 10% continency.

296. If the actions defined in the EMP are followed and technically knowledgeable people implement them, all environmental requirements for this project will be met and no additional assessments will be needed.

10.2 Recommendations 297. RRF will recommend to the government that institutional capacity building within its own ranks and Uzavtoyul be initiated via a 1 day workshop; and that a Safeguards Team be established within the Program Management Unit before construction begins.

298. RRF will instruct its PMU and the CSC to carefully review the EIA and its EMiP and EMoP, and incorporate these two matrices into its contract with contractors as executable/ discrete pay items. Secondly RRF will assign the EMP (EMiA and EMoA) compliance monitoring to a specific individual from the Safeguards Team of the PMU.

299. RRF recommends that the EMP including all mitigative and monitoring actions be implemented and completed, based on careful consultation with experts and local authorities.

300. RRF recommends that all required reporting as defined in the EMP be undertaken as specified and that this documentation be included in the semi-annual progress reporting to the ADB under the subheading Environmental Impact Mitigation and Monitoring.

301. RRF will purchase a portable sound meter to monitor construction period noise as well as noise associated with the operating road to identify the best noise mitigation measures for at least the four sensitive sites identified by the consultant.

302. RRF recommends that the purchase and use of two portable tailpipe emission testing units by seriously considered, and that funding be discussed internally and with ADB, and a emission abatement program launched along A-380, in association with an appropriate enforcement system already in use elsewhere in the country.

303. RRF recommends that the USD 166,200 budget ( plus a 10% contingency) identified for 6.5 year mitigation and monitoring period be adopted; with provision for reduction if revegetation and replanting and noise barrier construction are items already budgeted for in the construction contract.

IKS GROUP OF COMPANIES 57 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT Annexes

Annex A: Table 1-Environmental Management Plan: Mitigation Actions

Table 2-Environmental Management Plan: Monitoring Actions

Annex B: Newspaper Announcements Published in Local Newspapers in Nukus

Annex C: Consultation Brochures (consultation 1 and 2) that were distributed

Annex D: Consultation Meeting Minutes and Attendance Sheets

Annex E: Presentation Given in Turtkul and Beruni August 2-3 and August 27th, 2010.

IKS GROUP OF COMPANIES Page A-1 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ANNEX A: THE ENVIRONMENTAL MANGEMENT PLAN (EMP)

Table A-1: Environmental Mitigation Actions (EMiA).

2 Environmental Mitigative Measures Location Time Frame Responsibility Impact/Issue: as listed Implementation Supervision in EIA 1. PRE-CONSTRUCTION PERIOD Commitment to and Application of EIA Documents and Output As part of the detailed design work, road planners, design engineers and other planners will make the final decisions regarding the specific road alignment. The preferred alignment (Option C) is the shortest distance, namely 47 A) Failure to km. The EIA defined a number of sensitive conditions, prevent/avoid project namely the small wet areas the canal crossings, roadside impacts by ignoring EIA During project RRF, its PMU borrow pits and sensitive settlement areas along the NA PIU results alignment. Designers and planners can avoid or minimize design period and consultants impacts at these locations by following the EIA recommendations and making adjustments to design specifications. RRF will ensure that this is done, bearing in mind budget limitations and road safety and construction efficiencies.

Design construction in such a way that avoids the B) Environmental construction if any new access roads and plan to bring bulk safeguard measures for materials to the site by rail and then truck, in an prevention of impacts environmentally friendly manner. During project RRF its PMU due unacceptable RRF will prepare a guideline for contractors that will NA PIU design period and consultants transportation methods specify: protocol for transporting of materials on public defined in the EIA not roads, operating timetables, operation of materials implemented distribution sites and clean up. This report or checklist will be available for inspection by ADB. Uzavtoyul has long had the practice of taking sub grade and fill material from the roadside anywhere where C) Methodology for Side upgrading is needed. This has left roadsides looking like a Borrowing and use of cratered moonscape, visually unattractive and ideal for Small Roadside Borrow wind erosion, fueling desertification. Pits, as defined in EIA, During project RRF its PMU not used by proponent Further, this project is presently planning to open up to NA PIU design period and consultants or contract, leading to twelve small borrow pits within 100-200 m of the road RoW. negative effects Most sites will require a temporary access road and removal of ground cover in an area usually around 0.75-1.0 ha. RRF recognized that serious environmental impacts could result, so has defined a-4-step guide for side borrowing and a 6-step rehabilitation process for roadside borrow pits. RRF will ensure that the EIA, its EMP and all parts of the safeguards documentation is translated into at least D) No distribution of EIA Russian and will be distributed in both hard and soft copies and EMP to the following stakeholders: District office and Prior to the start of RRF, its PMU documentation- the (i) PUI, (ii) PMU, (iii) Contract Supervision Consultant, PIU contractor construction period and CSC translated into local (iv) Contractor, (v) District and (vi) Regional officials. A set language of documents will also be placed in the Hokimiyat office and an announcement placed on the bulletin board announcing the availability of the EIA for viewing. Prepare environmental contract clauses for contractors’ contract Terms and conditions and Conditions of Special Application section of standard documentation—using the E) Failure to include EMP and monitoring plan as guides. environmental clauses in contract and/or Prepare an environmental loan covenant that binds Before RRF, its PMU covenants in loan Uzavtoyul/Road Fund to implement the EMP and monitor NA construction PIU and consultants agreements, defining according to the Monitoring Plan and to show proof that the begins mitigative and work has been completed, via bi-annual reporting. monitoring actions In defining the “bill of quantities” provide specific environmental items against which interim payments can be tagged—and withheld for non-compliance The PMU, acting on behalf of the RRF will ensure that the F) No provision for EIA and its EMP is available to all interested stakeholders, construction period and will organize and coordinate two meetings for Before safeguard inspection managers, district and regional-level inspectors and RRF, its PMU NA construction PIU services, leading to contractors. The topics will include the management of and consultants begins collapse of safeguard environmental assessments, mitigation inspection, measures enforcement and reports, and will be held in Beruni and Ellikkalla. 2. CONSTRUCTION PERIOD Air Quality and Noise Large volumes of quarry rock, aggregate and sand will be Contractor Within the area A) Excessive transported and stored near the roadwork. These Construction Supv. where existing ballast Contractor construction related dust operations and storage areas will be constantly exposed to period Engineer, is located the elements and will create primarily dust during the PMU and

IKS GROUP OF COMPANIES Page A-2 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2 Environmental Mitigative Measures Location Time Frame Responsibility Impact/Issue: as listed Implementation Supervision in EIA frequent windy conditions. Three primary mitigative oblast-level measures will be: (i) Dust management will be important inspectors and since there is plenty of water in the irrigation canals, dust control by watering, should not be a problem. RRF will provide a clause in the bid documentation requiring the contractor to manage dust on all haul roads, borrow pits and work sites. ST monitors will be required to check compliance. (ii) Properly loaded trucks with canopies preventing spillage onto the highway and blowing dust will be mandatory. (iii) Any spills on the haul roads will be cleaned up by the contractor within a 24-hour period. RRF plans to acquire two new mobile concrete batch plants, dedicated to providing concrete for the road surfacing. These plants will be new and equipped with dust and noise suppression equipment, but will still be noisy and Contractor B) noise and air create dust that will be of concern to area settlements. To Supv. pollution from concrete avoid this, plant sites will be selected at least 300m Anywhere along the Construction Engineer, batch plants downwind and 750m upwind of any residence or Contractor new alignment Period PMU and settlement. Noise suppression barriers and light baffles will oblast-level be installed and all sites will need to be fully rehabilitated inspectors after abandonment or if the batch plant is moved. This restoration work will need to be completed within 1 week of a plant being moved and will involve bringing the site to pre-batch plant operations conditions The alignment will pass through the 4 villages; namely Soraby Dulmin Kala West ( km 620) including a school, S. Dulmin Kala East (km 617) Guldursun Kala at km 610 and Kaltaminor East and West `at km 600-601. All these areas have 10-15 residences within 100-200m of the future roadside. Soraby Dulmin Kala The most intrusive noise will come from the pile driving at West (km 620) including a school, S. C) excessive the bridges where noise spikes as high as 100 dBA will RRF and its Dulmin Kala East (km Construction construction period occur. There are two mitigative actions which will be Contractor PMU and 617) Guldursun Kala period noise required a) limitation of operating periods where the work is CSC within 1 km of a settlement to 0700-1800 and b) making at km 610 and sure the all possible noise suppression measures are taken Kaltaminor East and to limit the noise. West `at km 600-601.

The indicator applied will be the maximum L10 noise level measured over a period of not less than 15 minutes when the construction site is operating. All attempts will be made to keep the measurement no more than 10dBA above background levels.

Construction period air pollution will be dust and emissions from operating machinery. Aggregate crushing will take place at the Karatau Mountain Quarry, which must operate within UZB standards. It is assumed that the new mobile concrete batch plants will have dust suppression technology installed and as such will help to control the dust plumes that usually arise as aggregate and sand are mixed with cement at the plant. To reduce emissions in general, controls on vehicle idling and equipment maintenance will be imposed throughout At all work sites construction period, with regular inspection and reporting where construction by CSC inspectors. Equipment and vehicles will be shut off equipment is if not in use more than 3 minutes and all will be maintained operating, especially: D) Excessive Soraby Dulmin Kala according to manufacturers’ specifications. Dust will be Construction construction-period air West ( km 620) carefully and continuously managed. Air emissions will be Throughout the Supv. pollution namely dust including a school, S. Contractor monitored, with a focus on dust and visible black smoke construction period Engineer and and emissions from Dulmin Kala East (km from operating equipment. Any vehicle exhibiting these PMU construction vehicles conditions, usually due to poor maintenance, will be shut 617) Guldursun Kala down and not permitted to operate again until a mechanic’s at km 610 and certificate of repair is submitted to the CSC. The ST will Kaltaminor East and have authority to do this. West `at km 600-601 The contractor will be required to remedy any observed/reported dust problem within 2 hours or face worksite shut down. These conditions and requirements will be enforced by the ST at all worksites. Further any road used by the contractor where spills are accumulated, the contractor must clear up the roadway each day and be sure that dust, soil, sand gravel and rock is not on any of these roads. Non-compliance will involve penalty payment equal to the cost of clean up by a privately hired contractor, or roughly SUM 650,000 per day of work plus a penalty of another SUM 350,000 per day. Water Quality and Hazardous Materials E) Failure to adhere to All waste at construction camps must be regularly Any construction site RRF‘s Throughout the construction related processed and properly disposed of. At each camp a strict or activity which is Contractor Construction construction period good housekeeping waste management plan needs to be in force, including the responsibility of Supv.

IKS GROUP OF COMPANIES Page A-3 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2 Environmental Mitigative Measures Location Time Frame Responsibility Impact/Issue: as listed Implementation Supervision in EIA practices, including solid garbage, sewage and other wet waste processing. the contractor Engineer- and sanitary waste Sewage can be processed either by use of pit privies or PMU management, leading to composting toilets. For all other waste management the sewage and solid waste contractor will be required to enter into a contract with a contamination of local service provider and establish a regular disposal construction camps service. Failure by contractors to adhere to good housekeeping practices as defined in the contract Terms and Conditions and Conditions of Special Application and a lack of enforcement by the PMU, will lead to longer term contamination at construction camp sites all along the RoW. Generally unattractive corridor of impact as well as dissatisfied, sceptical and disappointed local people will be left behind. Two of these ponds and wet areas are located in Ellikalla Contractor District, along the alignment. Contractors working with the Supv. F) Loss or degradation Contractor and CSC must consult District official and agree on a plan to At wetland and lake Engineer, of small wet areas and Throughout the Construction- cross these features. RRP is ready to realign the road to sites in Ellikalla PMU and man-made ponds along construction period period avoid interference or permanently disrupt surface or District oblast-level alignment inspectors groundwater movement. Govt. inspectors The storage of all petroleum products must comply with the various UZB KMKs. Each storage tank must be surrounded by an impervious berm capable of containing the volume of at least one storage tank. G) Inadequate storages and handling of Further any fueling area must have properly operating fuel All construction Yards Throughout petroleum products by dispensing equipment in working order, i.e., not leaking. and with contractor’s PMU Contractor construction period contractor and supplier The fueling area must have a system for collection of all fuelling equipment resulting in spills drips and spills during the fueling process. Changing of oil must always involve collection of waste oil for recycling. The contractor will be required to document the number of liters of waste oil recycled each week and provide evidence (waybill) that this was actually done. The 47 km long new roadway will have to cross 12 major Contractor irrigation canals, a number of subsurface collectors and Supv. Contractor and several wetlands. Contract specifications have defined Engineer, H) Damaged to Irrigation At any water Throughout the Construction- exactly how work at, in or near irrigation canals is to PMU and Systems crossing/canal sites construction period period proceed, thus requiring little further reinforcement in this oblast-level inspectors EIA. Govt. inspectors Soil Loss Erosion and Visual Intrusion Removal of groundcover will involve between 180 and 200 ha of land (of a total of 940-960 ha of COI) some of it in disturbed roadside lands. All of this area will need to be stabilized, rehabilitated and revegetated as soon as Contractor I) Wind and rain erosion construction is completed. Stabilization using reed mats All construction sites Supv. due to poor or no and the planting of native vegetation will be undertaken where there is Engineer, erosion prevention Throughout the according to advice of District Forestry Institutes as well as groundcover Contractor PMU and actions at worksites, construction period the Hokimiyats’ reforestation advisory teams. Poplar, removed from the oblast-level leading to erosion and mulberry and Russian olive are often used in these ground surface Govt. possible dust replanting. To prevent wind and water erosion, more inspectors general stabilization of all the disturbed areas will be undertaken as the work proceeds and as soon as work on any given stretch is completed. The use of at least 12 new small borrow pits plus the practice of side borrowing to obtain subgrade material, will result on large areas with groundcover removed and subject to wind and water erosion and a visually Immediately after J) Side borrow and All side borrow areas unattractive roadside. To mitigate this, the contractor will site abandoned or borrow pits left to erode and roadside borrow PMU Contractor be required to follow strict protocol for opening, operating earthworks are and act as safety hazard pits and access roads and rehabilitating such sites. The EIA provides these complete specifications in Sections 5.1-C (i) and (ii). This protocol, which includes access roads, will be strictly enforced by the ST. Health and Safety Occupational Health and Safety RRF will make certain that these elements of OHS are K) Injury and health incorporated into construction contracts with the successful At all times during Throughout the PMU and problems due to lack of bidders. Compliance will be verified with relevant contract the construction Contractor construction area RRF OHS guidelines clauses being available for ADB audit. RRF will use the Period World Bank/IFC guidelines to supplement national standards Community Health and Safety RRF will require the contractors to always provide At four village adequate alternate traffic movements, manage dust locations any L) Injury, health through watering and sweeping, and manage traffic at any PMU and intersections and At all times during degradation and loss of construction site that interferes with main roads used by RRF working generally where there the construction Contractor life due to poor or no local communities. Operating period CHS measures will closely with could be accidents— Period CHS practices involve the provision of standard marked crosswalk areas the Police based on projected with amber flashing lights in the four village crossed, well traffic marked intersections and adequate speed limit signage.

IKS GROUP OF COMPANIES Page A-4 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2 Environmental Mitigative Measures Location Time Frame Responsibility Impact/Issue: as listed Implementation Supervision in EIA Implementation Infrastructure The value of the EIA and its EMP depends almost totally on credible and consistent compliance monitoring, reporting and enforcement of requirements. A weak process or marginally committed administration will lead to failed impact mitigation and monitoring program or unacceptable and unreliable results.

M) General Failure of RRF has included in its staffing plan for the PMU, a The entire Throughout the EMP and resulting PMU Contractor Safeguard team (ST), and will also retain international construction area construction period environmental damage environmental expertise within the CSC. RRF is fully committed to ensuring that the contract meets all EIA requirements and undertakes all mitigative actions. Should none compliance items not be rectified in the time specified in this EIA or by the ST, RRF will penalize the contractor to the extent specified in this EIA and as defined by law.

Archaeological/Cultural Treasures Ellikalla District is dotted with ancient kallas (forts) dating ElliKalla District At start of Work in RRF/PMU and Contractor back over 1000 years. It is possible that new sites could be this district District Officials unearthed during construction. To be sure that such new sites are not destroyed the contractor, prior to working in N) Loss of each District, will meet with local officials and discuss the archeological/cultural likelihood of any finds23. If any archeological remains are sites and/or artefacts unearthed, the work must stop immediately and the discovery reported to the Hokimiyat and the CSC chief. A plan to conserve the site will be prepared and no work is to continue until the plan has been approved and certified by the PMU. 3. OPERATIONAL STAGE Air Quality and Noise As a minimum, at the five sensitive sited defined in item 2 (G) above, and in consultation with local Hokimiyat, construct noise berms, and or barriers. Secondly limit A) Noise and vibration Within Year 1 of speed limit at night to 90 km/hr. Five sites as defined disturbance due to the start of the RRF Uzavtoyul in 2 (G) above. increases in traffic Residences within 100m of the road will be offered sound operating period insulating windows. Vibration will not be an issue along this road. The consultant has recommended that Uzavtoyul purchase 1 or two portable exhaust emission analyzers for petroleum and diesel engines (3 to 4 well known brands available), and undertake a testing program along this new road. Test failure will require vehicle owners to surrender their B) Degradation of local registration to police and provide certificate of repair within Within Year 1 of air quality due to 10 days or receive a large fine (based on Uzb. Norms and Minimum five sites as the start of the RRF Uzavtoyul increases in traffic along standards), but should be at least SUM 500,000. Further defined in 2(G) above operating period alignment RRF will encourage Uzavtoyul and police to enforce speed limits and vehicle inspection, requiring vehicles >10 years old to have annual emissions tests and to require all heavy vehicles, including large trucks and buses to have emission control devices installed.

At present neither UZOVTOYUL, Traffic Police nor the RRF keep reliable accident records or has a written accidental spill protocol. This in contrast to the national rail operator Need for plan will UTY which not only has a spill database but a spill be around 2020 C) Possible hazardous management protocol and procedure. when traffic NA Uzavtoyul Uzavtoyul Or toxic materials spill, The consultant recommended that once the traffic volume volumes exceed of trucks doubles and the movement of hazardous and 10,000 PCEs per toxic materials increase significantly a specific spill day contingency plan is prepared and that provincial offices be trained responding to spills. Soil Loss, Erosion and Visual Intrusion D) Erosion and RRF will insure that contracts with villages undertaking this Degradation at work during the construction period will be contracted for 3- All revegetated sites, revegetated and years into the operating period of the road, to insure that particularly side For years 1-3 into RRF Uzavtoyul rehabilitated cleared the planting survive as best as possible and receive proper borrow locations and operating period areas, side borrow sites maintenance . borrow pits and borrow pits Implementation Infrastructure E) Contractors do not The contractor is required to prepare a NA Mitigation report Contractor with Uzavtoyul in

23 All must be done in compliance with the Uzb. Law on Protection of Archaeological Monument, Oct. 2009

IKS GROUP OF COMPANIES Page A-5 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2 Environmental Mitigative Measures Location Time Frame Responsibility Impact/Issue: as listed Implementation Supervision in EIA prepare Mitigation Mitigation/Monitoring Completion Report, which must be completed before help from RRF’s cooperation Completion report and submitted to RRF for transfer to Uzavtoyul’s unit which will contractor received PMU and later with RRF`s PMU fails to provide a operate the road, in order that they can follow up with final payment and with operating PMU Operating stage mitigative measures such as revegetation, initiated by the implementation unit of Uzavtoyul mitigation timetable for contractors. Should this not take place, the entire EMP and schedule when responsible for Uzavtoyul’s operating monitoring program is in jeopardy. RRF and its PMU is operations begin that section unit to follow ,leading to committed to making certain that the contractor carries out stop in mitigation and this task and will provide guidance monitoring actions Measures to continue into the operating period will be the maintenance of revegetation areas and confirmation of the record of the decommissioning of any work areas, work camp sites including waste dumps, etc and the sealing/securing of wells newly dug for use during the construction period. The RRP will ensure that this happens Note: numbering for each impact in column 1 is cross referenced to EIA text as well as the monitoring plan (EMoP) PMU-Program Management Unit CSC-Construction Supervision Consultant RRF-Republic Road Fund ST- Safeguards Team within the PMU PCE-passenger car equivalents UTY-Uzbekistan Railway Authority

IKS GROUP OF COMPANIES Page A-6 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table A-2: The Environmental Monitoring Actions (EMoA) Report-ing Required ITEM Monitoring Details Timing Executing Unit Responsib Reporting ility 1. PRE-CONSTRUCTION (DESIGN) PERIOD: all written confirmations & reports submitted to RRF’s PMU: available for ADB compliance audit Commitment to and Application of EIA Documents and Outputs A) Checking design for Prior to the completion if the design work the integration of environmental PMU and their consultant will complete an audit Prior to the end RRF and the CSC considerations; i.e. working to ensure that environmentally sound design and None of the detailed RRF or PMU within RoW, materials haul construction measures have been integrated in design work restrictions the detailed design and bid documentation

B) Materials management RRF to ensure that guidelines for contractor has Prior to the end RRF and the CSC RRF plan been prepared and is included in bid None of detailed or PMU documentation design work RRF to confirm that guidelines for opening, Prior to the end C) Side borrowing and Use operating and rehabilitation of these sites, as RRF and the CSC Insert Guidelines of detailed RRF of roadside borrow pits defined in the EIA are incorporated into the bid or PMU design work documentation in some way PIU to check that documents are in place at the (i) PUI, (ii) PMU, (iii) Contract Supervision D) Distribution of translated Consultant, (iv) Contractor, (v) District and (vi) Document Prior to the end RRF and the CSC EIA and EMP to project RRF Regional officials. A set of documents will also distribution record of detailed or PMU stakeholders be placed in the Hokimiyat office and an available design work announcement placed on the bulletin board announcing the availability of the EIA for viewing. E) Environmental RRF, with the help of the Supv. Consultant, is to Prior to bids and specifications for contractor provide draft environmental clauses and signing of Loan Clauses included RRF, and their bid documents, Env. specifications based on the EMP, for inclusion in Agreement RRF in bid documents consultant(s) clauses for contracts and bid documents and the Loan Agreement; or Use between ADB & Loan Covenant the EMP as the reference document RRF RRF to certify that a qualified safeguards team F) Construction period Statement that has been included in the PMU and that the CSC Near end of Pre- safeguards inspection not safeguard staff has an experience environmental safeguards construction RRF RRF specified in bid have been specialist participating in the project monitoring period documentation retained activities for the construction period G) Mitigation and Sign-off by RRF that mitigation and monitoring A mitigation and Before Monitoring Implementation timetable has been prepared and will become a monitoring RRF and its PMU RRF groundbreaking Timetable part of contractual activities timetable 2. CONSTRUCTION PERIOD -prepare and use a monitoring checklist Air Quality and Noise Undertake, as part of the construction inspection, regular confirmation that earthworks are handled Every day, A) Dust from Earthworks Contractor and in an environmentally acceptable manner and Week inspection throughout the transport and storage RRF or PMU RRF dust control is undertaken at all time, including reports construction monitoring inspectors the use of tarpaulins by trucks hauling fine period materials. Safeguard monitor to report on location of batch plant and advise PMU head if non compliant. Insure that proper noise suppression and light baffling is in place. Inspect batch plant site after abandonment and Plant site rehabilitation inspection and As well, noise measurements via a portable closing report, B) Dust and Noise from PMU and noise meter to be taken 4X/day for one day a plus monthly At start of plant RRF Batch plant locations Contractor month every two months of operation. If levels noise and dust are found acceptable, noise measurements can observation be terminated. At the same time visual records observation on dust from the plant must be recorded. These measurements must be taken at 10m distance from the source and at the nearest receptor. PMU inspectors to confirm that work times in the five sensitive areas (EMiA 2(G)) is restricted to 0700-1800 and that construction vehicles have Inspection been properly maintained and have checklist Throughout the C) Construction Period manufacturer installed noise suppression confirming PMU and construction RRF Noise Control equipment in operation ( e.g., mufflers). operating hours safeguard monitor period PMU will inspect contractor’s equipment fleet and equipment maintenance record to insure there will be no maintenance unnecessarily noise equipment in operation at the sensitive sites.

IKS GROUP OF COMPANIES Page A-7 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Report-ing Required ITEM Monitoring Details Timing Executing Unit Responsib Reporting ility PMU inspectors to document that contractors vehicles do not idle for more than 3 minutes when not in use. Monitor to record dust Air pollution suppression and haul road cleaning by monitoring Inspection as contractor. Monitor is to report any visible black checklist for dust part of the D) Monitoring construction smoke from equipment or contractor yard. Non- and black smoke Contractor and weekly RRF period air pollution compliance and/or failure to clean up spilled , compliance with PMU inspectors construction materials or dust on roads will be reported, and idling rule and inspection the contractor charged for services of others to equipment clean up in the range of SUM 1,000,000/day. maintenance PMU will work with the traffic police to enforce these fines. Water Quality and Hazardous Materials Undertake regular good housekeeping tasks as defined in the EMP and provide monthly E)Land and surface water monitoring checklist to RRF’s PMU. Every day contamination and health Monitoring Contractor and Use the EMiA as the basis for the checklist. throughout impacts from inadequate checklist report PMU Safeguard RRF Non-compliance will result in PMU retaining construction Construction-related good by ST monitor others to do this work and costs will be deducted period housekeeping at a rate of SUM 1,100,000. per day of non compliance Any time work is PMU monitors will confirm that prior to work in a Contractor and F) Damage to remnant Record of such needed in a wetland area or near a pond, the district officials PMU Safeguard RRF ponds and wet areas meeting wetland or are consulted and a acceptable plan is followed monitor in/around a lake Waste oil collection receipts Inspector to document compliance with relevant and observations Inspection as G) haz. material spills due Uzbek KPKs re fuel storage and handling. on fuel storage part of the to unacceptable storage Secondly inspection that fuel dispensing does Contractor and and dispensing ( weekly RRF and handling of petroleum not lead to leaks and drips on ground. Third PMU inspectors no chronic leaks construction products requiring contractor to provide receipts of waste and ground inspection oil collection for recycling contamination in yards) The PMU or its CSC will ensure that guidelines when working around and in irrigation canals, as Documentation defined in the construction contracts, are showing that At any time work Contractor and H) Damage to Irrigation followed. Further, the contractor and PMU will consultation with at a canal/bridge PMU Safeguard RRF System consult with district officials before an diversions districts occurred starts and during monitor or temporary changes to the flow in the canals prior to work in the work are to be initiated as part of the bridge irrigation canals construction work Soil Loss, Erosion and Visual Intrusion PMU to confirm that contracts with villages to replant and maintain exposed construction areas Signed contract in their areas have been signed and that they documents. And At start of PMU, contractor I) Poor erosion protection have been given the proper materials, equipment monthly construction and Safeguard RRF and revegetation measures and any needed training. Contracts are to be inspection period monitor performance based and for the full construction checklist period. The PMU inspectors will ensure that the A compliance contractor has properly prepared the side borrow checklist Inspection as and borrow pit areas for revegetation. Secondly confirming proper part of the J) Poor rehabilitation of the contracts with villages who will undertaken site preparation, Contractor and weekly RRF disturbed ground the replanting and maintenance will be contractual PMU inspectors construction inspected, ensuring that they are in order that arrangements inspection that materials and necessary equipment has and compliant been provided rehabilitation Health and Safety Occupational Health and Safety K) Injury and health At all times during RRF to keep on file relevant contract clauses Throughout the problems due to lack of OHS the construction Contractor PMU and RRF demonstrating the insertion of these into the construction area guidelines contract documents; available for ADB audit. Period Community Health and Safety RRF to provide a listing of amber cross walks, L) Injury, health degradation flashing lights, signage and other safety features At all times during PMU and RRF Throughout the and loss of life due to poor planned for the road. Secondly a checklist of the construction Contractor working closely construction area or no CHS practices management of traffic disruption will also be Period with the Police requested of the contractor. Implementation Infrastructure Contractor must list, in tabular form, all mitigative M) Contractor’s final At end of actions completed, their timing and location, and Monitoring report na construction Contractor RRF then indicate their status as % completed and the submission Period need for any future action(s). Archeological and Cultural Treasures Contractor will acknowledge in writing as start of work, procedure to be taken in areas where there RRF and N) Destruction of could be arch. Treasures and RRF will confirm that At start of any District Ellikall District Contractor and PMU Archeological Treasures before work begins in EliKalla District that the work in that District Governmen contractor completed a meeting with local officials t sensitive arch. sites

IKS GROUP OF COMPANIES Page A-8 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Report-ing Required ITEM Monitoring Details Timing Executing Unit Responsib Reporting ility

3. OPERATIONAL PERIOD – Update and continue to use checklist Air Quality and Noise Confirm that at the five sites defined in EMiA 2(G), noise abatement measures have and are being taken and that these involve one or A) Noise Due to Increased several of the following: construction of Written record of During year 1 of RRF and Uzavtoyul Traffic vegetated earth berms, noise barrier, noise actions operating period Uzavtoyul insulating windows for residences within 100m Confirm that any such action is based on consultation with Hokimiyat. RRF will consult with Uzavtoyul on posting lower Short night-time speed limits along the 5 sensitive B) Air quality degradation documentation on sections of the road. Enforcement of vehicle RRF or consultant Uzavtoyul due to increased traffic progress of these fitness inspection by police will be encouraged initiatives by RRF and Uzavtoyul. RRF to confirm that steps to preparing and spill C) Inadequate contingency plan are in place and that UTY has At start of RRF, with help management of haz. None Uzavtoyul been consulted to advise on how best to achieve operating period from UTY material spill this as they have years of experience Implementation Infrastructure At the time of commissioning the contractor must D) Degraded mitigation confirm in writing that mitigative actions as measure resulting from defined in the EMP, At the time of Before upgraded Contractor and Uzavtoyul incomplete contractor’s commissioning the contractor must confirm and road opens Uzavtoyul monitoring report any other legally binding environment document, have been completed as recorded. RRF or a contractor will complete an inspection of roadside revegetation sites, using the data Annual Inspection Annually for E) die off and degraded collected during the construction period, and reports for first 3 three operating RRF or consultant Uzavtoyul revegetation areas enumerate the survival rate and define a further operating years years planting program to replant those materials that have not survived 1. At the end of the construction period and before the final payment is approved, it is critical that an inspection of high use areas, such as waste facilities, machinery service areas, waste disposal sites, quarries, fabrication yards, be made to confirm that proper decommissioning has taken place

IKS GROUP OF COMPANIES Page A-9 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ANNEX B Newspaper Advertisements for Consultation Sessions August 2-3 and 27th. Note: Original announcements reduced 50-60% to fit page

IKS GROUP OF COMPANIES Page A-10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Brochure Distributed for August 2-3 session. English version shown, but Russian version was distributed

IKS GROUP OF COMPANIES Page A-11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Brochures distributed for August 27th session (fully translated to Russian)

IKS GROUP OF COMPANIES Page A-12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Annex D Record Of Consultation And Information Sessions Plus Attendance List

MINUTE OF ENVIRONMENTAL PUBLIC CONSULTATION AND INFORMATION SESSION ON ADB TECHNICAL ASSISTANCE PROJECT 1st Set: Turtkul, Karakalpakstan Technical Assistance Project ADB 7375-UZB

1 Meeting location:

Hokimiyat of Turtkul district, the Republic of Karakalpakstan

2 Meeting date:

4 August 2010, 10.00

3. Project:

Technical Assistance Project ADB 7375-UZB

4 List of Special Government Participants:

Ruzimbay Seitov, First deputy Khokim of Turtkul district, Kalbay Tegenov, Chairman of the State Construction Committee of the Republic of Karakalpakstan, Mr. Allabergenov, the first deputy chairman of Ellikala District khokim.

5 Presentation given by:

National Environment Protection Specialist

6 Environmental consultant presentation content:

Introduction and public consultation and information sharing of Environment Protection and Social issues related to construction of bypass in Turtkul, starting from 584 km and joining the national highway A-380 at 628 km.. A-380 Project sections include 581-628 km (Tranche 3). The environmental presentation in English is attached as the part this Annex.

7 Comments of participants.

The participants presented their view on construction of bypass in Turtkul. While being positive towards initiating project capacities building, participants expressed their views to suggest additional steps to be undertaken to increase to effectiveness of the project performance.

In this way:

Anvar Sultanov, deputy district council of Turtkul concerned compensation due to removal of facilitates and raised the question if the people are provided with the equivalent land that now they possess.

The chairman of Kelteminor Rural Council, Hudayberdenov Kurbumurod, asked if the planting trees is possible only after bypass construction or before and during the civil works and who will provide the approval,

Sotimov Holmurat raised the point regarded the compensation for the removal of facilities.

Khanlieva Meredsultan, a delegate from a farming company of Keltemiminar rural council asked on the impact of the road on the nearest houses under construction and potential operation of the road.

IKS GROUP OF COMPANIES Page A-14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

8 Follow up actions. Issue raised: Approach to addressing the including real and issue as suggested at perceived Agreed to action session; including how, when environmental and by whom issues

compensation due to removal of facilitates the project envisages the Road Fund with District and raised the compensation for the damage to khokimiyat and Bureau question if the people the people for any damage and for technical inventory of are provided with the removals, the immovable property equivalent land that . now they possess

if planting of trees is Planting of trees is possible only possible only after after bypass construction bypass construction The consultant also followed up District khokimiyat, State or before and during and met with the interested Nature Committee and the civil works and council and added this issue as RRF who will provide the a mitigative action under approval revegetation

the project envisages the compensation for the damage to the compensation for the people for any damage and the removal of removals. A full resettlement RRF facilities plan is being prepared and it will include compensation measures for each affected person

the project envisages the impact of the road on actions during the construction the nearest houses noise barriers, noise-attenuating District khokimiyat, State under construction devices and filters. Noise Nature Committee and and potential management is included in the RRF operation of the road EIA and its environmental management plan.

9 Complete List of Attendees (including Name, home village/town and Occupation): Total number of attendee – 50 people

The original full list (in Uzbek) of participants is attached. Inside the list is the following information

The heading of Uzbek Original File of Attendance List says that this is

“The list of attendees of Consultation and Information Session on EIA and Land Acquisition and Resettlement Plan, construction of Bypass based on A-380 Road Improvement Program: Km. 581-628 conducted on August 4, 2010 in Turtkul District of the Republic of Karakalpakstan”.

The original Uzbek Attendance Signature Table headings are:

IKS GROUP OF COMPANIES Page A-15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Name Name of organization and position 1 2 The organizations represented at the consultation are as follows:

Name and the Location of Organization Number of people Turtkul oblast khokimiyat 3 Turtkul Oblast and District Administration on Road Construction 2 and Operation Road design organization 1 Oblast and District Nature Protection Committee 1 District Electrical Power Organizations 2 District community Organizations as KAMOLOT, ECOSAN 3 Water economy Organizations 3 District Land Cadastre 2 Secondary Schools 3 Colleges (pedagogical, bank, economic, acad lyseum) 5 District Women Committee 3 Makhalya Committee 6 District Entrepreneurship Committee 4 TV, Newspaper 2 Other, including Ministry for Emergency 10

IKS GROUP OF COMPANIES Page A-16 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

MINUTE OF ENVIRONMENTAL PUBLIC CONSULTATION AND INFORMATION SESSION ON ADB TECHNICAL ASSISTANCE PROJECT 1st Set: Beruni-Ellikkala Technical Assistance Project ADB 7375-UZB 1 Meeting location:

Beruni District Khomiyat, Republic Karakalpakstan, Uzbekistan

2 Meeting date:

3 August 2010, 10.00

3. Project:

Technical Assistance Project ADB 7375-UZB

4 List of Special Government Participants:

Oibek Hozhamuratov - First Khokim Deputy, Beruni district 5 Presentation given by:

National Environment Protection Specialist

6 Environmental consultant presentation content:

7 Comments of participants.

Norbaev Umrbek, member of the Rural Mahallya Council, Ellikkalla District stressed the point that during the course of the construction the surface water as the wetland will be created and what impact it will produce on the environment.

Abduramanova Sayera, resident of center district Buston, Ellikalla district, street Navoy 32 pointed if after completion of the bypass construction would it be possible to plant decorative and fruit bearing trees along the road.

10 Follow Up Actions. Issue Raised: Approach to Addressing the Issue including real and as suggested at Session; including Agreed to Action perceived how, when and by whom environmental issues Oblast Committee for Environment Protection During the course of the According to the existing arrangements in collaboration with construction the surface a contractor who wins the tender will technical supervision of water as the wetland will be granted with force to decide what to RRF, technical be created and what undertake in a specific case. supervision of impact it will produce on Consultant incorporated this concern khokimiyat and State the environment into EIA as one mitigative action Committee for Architecture and

IKS GROUP OF COMPANIES Page A-17 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Construction

According to the existing arrangements After completion of the RRF in collaboration of an operating company will be granted bypass construction technical supervision with force to decide what to undertake would it be possible to with khokimiyat and in a specific case. Consultant also plant decorative and fruit State Committee for met with interested district officials and bearing trees along the Architecture and incorporation their wishes in the road Construction environmental assessment

11 Complete List of Attendees (including Name, home village/town and Occupation): Total number of participants – 61 people, including

The original full list (in Uzbek) of participants is attached. Inside the list is the following information:

The heading of Uzbek Original File of Attendance List says that this is

“The list of attendees of Consultation and Information Session on EIA and Land Acquisition and Resettlement Plan, A-380 Road Improvement Program, conducted on August 3, 2010 in Beruni and Ellikkala district of the Republic of Karakalpakstan”.

The original Uzbek meeting attendance table headings are:

Name Name of organization and position

1 2

The organizations and type of people attending are as follows:

Name and the Location of Organization Number of people Beruni district hokimiyat 3 Beruni Oblast and District Administration on Road Construction and 2 Operation Road design organization 1 Secondary Schools 2 Colleges (Economic, pedagogy) 6 District Women Committee 15 Makhalya Committee 3 District Entrepreneurship Committee 3 Medical organizations 3 Water economy companies 3 Electro grid companies 2 Other ( nursery school teachers, architects, irrigation specialists, bus drivers 19 and labourers

IKS GROUP OF COMPANIES Page A-18 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Consultation August 27, 2010 MINUTE OF ENVIRONMENTAL PUBLIC CONSULTATION AND INFORMATION SESSION ON ADB TECHNICAL ASSISTANCE PROJECT Technical Assistance Project ADB 7375-UZB

1 Meeting location: Hokimiyat of Turtkul District, the Republic of Karakalpakstan

2 Meeting date: 27 August 2010, 10.00

3. Project: Technical Assistance Project ADB 7375-UZB

4 List of Special Government Participants: Ruzimbay Seitov, First Deputy Khokim of Turtkul District, Anvar Kodirov, Khokim Assistant of Tutrkul District, Khodicha Ibadullaeva, Deputy Khokim - Chairman of Women Committee, Muhtar Kamolbaev– Chief Architect of Turtkul Khokimiat

5 Presentation given by: National Environment Protection Specialist, Consultant

6 Environmental consultant presentation content:

Introduction and public consultation and information sharing of Environment Protection (K.Kamalov) issues related to construction of bypass in Turtkul, starting from 581 km and ending at 628 km of the newly designed national highway A-380. A-380 Project sections include 581-628 km (Tranche 3). The presentation for Kudiyar’s part (in Russian and English) is attached as the part of this minutes.

7 Comments of participants (this can be a summary or individual comments-see example). The participants presented their view on construction of bypass in Turtkul. While being positive towards initiating project capacities building, participants expressed their views to suggest additional steps to be undertaken to increase to effectiveness of the project performance.

In this way:

Muhtar Kamolbaev, Chief Architect of Turtkul Khokimiat raised the question concerning the reason of construction cement and concrete surface road rather than asphalt and concrete road.

Kodiberdy Durdiev – Architect of Turtkul District, - at what way and level the designed alignment crosses the existing alignment.

Sharibay Bekchanov – Head of Land Resources Ellikkala District – how to pay back the compensation for cutting of mulberry and fruit trees that is supposed to be removed.

8. Follow up actions.

Issue raised: Approach to addressing the including real and issue as suggested at perceived Agreed to action session; including how, when environmental and by whom issues the reason of the durability and service life of Republican Road construction cement the cement and concrete Fund and Design and concrete surface road is longer than Organization

IKS GROUP OF COMPANIES Page A-19 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

surface road rather asphalt and concrete road. For than asphalt and that reason it was decided to concrete road. construct this type of road pavement at what way and It will depend on the economic level the designed significance and technical Republican Road alignment crosses category of the existing road. It Fund and Design the existing will include bridges, overpasses Organization alignment. and is subject to be solved by the specific design project. how to pay back the In this case an inventory record compensation for of trees affected is conducted Republican Road cutting of mulberry along the construction and the Fund and District and fruit trees that is special norm document Khokimiyat supposed to be identifies the cost of these trees removed to be included into the project.

9. Complete List of Attendees See attached list with signatures

Total number of attendee – 42 people. The original complete list (in Uzbek) of participants is attached.

The heading of Uzbek Original File of Attendance List says that this is

“The list of attendees of Consultation and Information Session on EIA and Land Acquisition and Resettlement Plan, construction of Bypass based on A-380 Road Improvement Program: Km. 581-628 conducted on August 27, 2010 in Turtkul District of the Republic of Karakalpakstan”.

The original Uzbek table headings are: Name Name of organization and position

Range of participant disciplines Name and the Location of Organization Number of people Turtkul, Beruni and Ellikkala District Khokimiyats 7 Turtkul Beruni Ellikkala District Administration on Road Construction 3 and Operation Road Design Organization 1 District Nature Protection Committee 2 District Electrical Power Organizations 2 District Community Organizations as KAMOLOT, ECOSAN 2 Water Economy Organizations 2 District Land Cadastre 6 Secondary Schools 2 Colleges (pedagogical, bank, economic, acad. lyceum) 2 District Women Committee 2 Mahallya Committee 3 District Entrepreneurship Committee 2 Newspaper 1 Other 5

IKS GROUP OF COMPANIES Page A-20 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Attendance Lists: Both Sessions Aug. 2-3 Beruni and Ellikalla Session

IKS GROUP OF COMPANIES Page A-21 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-22 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-23 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Turtkul Session

IKS GROUP OF COMPANIES Page A-24 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-25 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-26 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

August 27th Session Attendance List

IKS GROUP OF COMPANIES Page A-27 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-28 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-29 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Annex E

Presentation Material for 1st and 2nd Consultation Sessions August 2-3 Presentation:

IKS GROUP OF COMPANIES Page A-30 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-31 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-32 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-33 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

August 27th Presentation:

IKS GROUP OF COMPANIES Page A-34 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-35 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-36 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES Page A-37 TASHKENT,SEPTEMBER 2010 ASIAN DEVELOPMENT BANK

GOVERNMENT OF THE REPUBLIC OF UZBEKISTAN

THE REPUBLICAN ROAD FUND UNDER THE MINISTRY OF FINANCE

CAREC Corridor 2 Road Investment Program FF ADB PPTA No. 7375-UZB VOLUME 3 (Part A) II Land Acquisition and Resettlement Plans NN for Projects 2 & 3 AA LL

RR EE PP OO Submitted by: RR TT

Tashkent, September 2010 Resettlement Planning Document Project 2: Km 355 – Km 440

Project Number: TA 7375-UZB

October 2010 ver.4a

UZBEKISTAN: CAREC Corridor 2 Road Investment Program

Prepared by the Uzbekistan Republican Road Fund under the Ministry of Finance 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. TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

TABLE OF CONTENTS

I. Executive Summary ...... 1 A. Project Scope ...... 1 B. Summary of Impacts ...... 1 C. Entitlements ...... 2 II. Project Description ...... 3 A. General Description ...... 3 B. Description of Project 2 - A380 Highway between Km355 and Km440 ...... 4 C. Alternatives Considered ...... 5 III. Scope of Land Acquisition and Resettlement ...... 6 A. Potential Impacts ...... 6 B. Scope of Land Acquisition and Resettlement ...... 7 C. Summary of Key Impacts ...... 8 IV. Socioeconomic Information and Profile ...... 9 A. Poverty and Socio-Economic Assessment (PSA) ...... 9 B. Project Census ...... 10 C. Gender and Ethnic Minority Issues ...... 11 V. Information Disclosure, Consultation, and Participation ...... 12 A. Project Stakeholders...... 12 B. Information and Consultation Mechanisms ...... 12 C. LARP Preparation ...... 13 D. Summary of Project Consultations ...... 14 E. Further Information Disclosure ...... 15 VI. Grievance Redress Mechanisms...... 16 A. General Principles ...... 16 B. Grievance Coordination ...... 16 C. Grievance Procedures ...... 16 VII. Legal Framework ...... 18 A. Relevant Provisions for Involuntary Resettlement in Uzbekistan ...... 18 B. ADB’s Policy on Involuntary Resettlement ...... 19 C. Comparison of Uzbek and ADB IR Laws, Regulations and Procedures ...... 20 D. Actions Made to Address the Gaps ...... 21 E. Principles and Policies for the Project ...... 21 VIII. Entitlements, Assistance and Benefits ...... 23 A. Entitlements to Compensation ...... 23 B. Formalization of Title/Registration...... 23 C. Calculation of Compensation ...... 23 D. The Valuation Process...... 27 E. Entitlements Matrix ...... 28

IKS GROUP OF COMPANIES i TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IX. Relocation of Housing and Settlements ...... 29 X. Income Restoration and Rehabilitation ...... 30 A. Special Assistance to Vulnerable Groups ...... 30 B. Opportunities to derive development benefits ...... 30 C. Other costs ...... 31 XI. Resettlement Budget and Financing Plan ...... 32 A. Responsibilities ...... 32 B. Budget Summary ...... 33 XII. Institutional Arrangements ...... 34 A. Republican Road Fund (Road Fund) – PMU ...... 34 B. Design Institute (DI) ...... 34 C. Regional and District SCLRGCSC ...... 34 D. Province/District Governments ...... 35 A. Pre-Resettlement Activities ...... 37 B. Implementation Phase ...... 38 C. Post Resettlement Implementation Phase ...... 38 XIV. Monitoring and Reporting ...... 40 A. Internal Monitoring ...... 40 B. External Monitoring ...... 41

Tables Table 1: Summary of Impacts – Project 2 ...... 2 Table 2: LAR Entitlement Summary ('000 Sum)...... 2 Table 3: Summary of Impacts – Project 2 ...... 8 Table 4: Socio-Economic Data - Project 2 ...... 11 Table 5: Summary of Grievance Procedure ...... 17 Table 6: Land Required for Project 2 ...... 24 Table 7: Land Preparation Costs – Project 3.2 ...... 24 Table 8: Business and Worker Compensation ('000 Sum) ...... 25 Table 9: Structure Unit Costs ('000Sum/m2) ...... 25 Table 10: Compensation for Structures ('000 Sum) ...... 26 Table 11: Trees and Garden Compensation ('000 Sum) ...... 26 Table 12: Community Asset Costs ...... 26 Table 13: Entitlement Matrix for Project 2 ...... 28 Table 14: Compensation for Vulnerable groups ('000 Sum) ...... 30 Table 15: Other Costs (‘000 Sum) ...... 31 Table 16: LAR Entitlement Summary ('000 Sum)...... 33

IKS GROUP OF COMPANIES ii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Annexes A Census and Socio Economic Survey Forms B Results of Census C Information Brochure D Community Consultations - Summaries, Minutes, Attendance E Legal Summaries F Additional map (Google map with DPs on)

ABBREVIATIONS AB Affected Business AC Asphaltic Concrete ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome APs Affected Persons CAREC Central Asia Regional Economic Cooperation CoM Council of Ministers CSS Country Safeguard System D/PLARC District/Provincial Land Acquisition and Resettlement Commission DI Design Institute DP Displaced Person EA Executing Agency EMA External Monitoring Agency EMP Ethnic Minority Plan (See IPP) FGD Focus Group Discussions GAP Gender Action Plan GFP Grievance Focal Point GRC Grievance Redress Committee Ha Hectares HH Households HIV Human Immunodeficiency Virus IA Implementing Agency IMA Internal Monitoring Agency Km Kilometre LAR Land Acquisition and Resettlement LC Land Code MFF Multi-Tranche Financing Facility PMU Project Management Unit PSA Poverty & Socio-Economic Assessment RP Resettlement Plan RRF / RF Republican Road Fund under Ministry of Finance of Uzbekistan SPS Safeguard Policy Statement TA Technical Assistance USD United States Dollar Uzbekistan Republic of Uzbekistan

IKS GROUP OF COMPANIES iii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

CURRENCY EQUIVALENTS

(as 31 August, 2010) Currency Unit – sum (SUM) SUM1.00 = $0.00065 $1.00 = SUM1,613

NOTE

In this report, i. "$" refers to United States dollars (USD) ii. Sum refers to Uzbekistan Sum

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.

IKS GROUP OF COMPANIES iv TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Glossary of Terms Term used to describe all people that are affected by the project impacts. In the context of a Affected LARP it refers to those that are economically or physically displaced by the project. It is Persons increasingly being replaced by the term “Displaced Person” following ADB Safeguard Policy 2009 – but is still in common use in the field. means payment in cash or kind for an asset to be acquired or affected by a project at Compensation replacement cost at current market value. means the date after which people will NOT be considered eligible for compensation i.e. they Cut-off-date are not included in the list of APs as defined by the census. Normally, the cut-off date is the date of the detailed measurement survey. Sometimes referred to as Affected Persons (APs). In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, Displaced or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, Persons 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. Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of Economic (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to Displacement legally designated parks and protected areas.

mean those people who move into the project area after the cut-off date and are therefore Encroachers not eligible for compensation or other rehabilitation measures provided by the project. means the range of measures comprising cash or kind compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation Entitlement which are due to /business restoration which are due to APs, depending on the type and degree nature of their losses, to restore their social and economic base. Inventory of means the pre-appraisal inventory of assets as a preliminary record of affected or lost assets. losses means the process whereby a person is compelled by a public agency to alienate all or part of Land the land s/he owns or possesses, to the ownership and possession of that agency, for public acquisition purposes, in return for fair compensation. A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is Meaningful undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and Consultation responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. means 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 Non-titled people without legal title to land and/or structures occupied or used by them. ADB’s policy explicitly states that such people cannot be denied compensation. Official government statistics for share of people living under poverty line is not available. Poor The method used to determine poverty, was based on the World Bank's under 2.15 $ per person per month measure. This figure was calculated with respect to climate conditions and other set of factors. The local equivalent was calculated based on the official exchange rate. Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition Physical of land, or (ii) involuntary restrictions on land use or on access to legally designated parks Displacement and protected areas. Replacement means the method of valuing assets to replace the loss at current market value, or its cost nearest equivalent, and is the amount of cash or kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged.

means 200 people or more will experience major impacts, which are defined as; (i) being Significant physically displaced from housing, or (ii) losing ten per cent or more of their productive impact assets (income generating). means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and includes; (i) female-headed households with dependents; (ii) disabled household heads; (iii) poor households (within the meaning given Vulnerable previously); (iv) landless; (v) elderly households with no means of support; (vi) households without security of tenure; (vii) ethnic minorities; and (viii) marginal farmers (with landholdings of five acres or less).

IKS GROUP OF COMPANIES v TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

MAP 1: LOCATION OF PROJECT 2 WITHIN THE WHOLE CAREC 2 PROJECT

IKS GROUP OF COMPANIES vi TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

I. EXECUTIVE SUMMARY

1. This Land and Resettlement Plan (LARP) has been developed by the Republican Road Fund for Project 3.2 of the Uzbekistan CAREC 2 Road Project. It follows the format, and includes the required information, as specified in the ADB Safeguard Policy Statement, 2009. It is based on surveys carried out in July and August 2010 under the PPTA.

2. Although the data provided by this LARP is adequate, final alignment during detailed design will require a brief review and confirmation of impacts. To ensure that impact data is updated based on the final design and a guarantee that the DP’s are fully compensated or rehabilitated before their land is taken, two basic project implementation conditions related to this LARP have been established:

(i) Contract awards for Civil Works construction will be approved only after the RP has been reviewed and confirmed/amended following final detailed design.

(ii) ADB letter of no-objection to contractors’ mobilization for the initiation of civil works construction will be conditional on the full implementation of the DP compensation/rehabilitation program detailed in this RP as confirmed or amended after the post-detailed design review.

3. The main objective of this LARP is to provide an effective guideline to the Republican Road Fund (RRF) and the project management team to implement land acquisition and compensation along sound planning principles; the requirements of the prevailing legal norms of Uzbekistan; and, in compliance with the guidelines of the ADB.

A. Project Scope

4. Project 2 comprises the new alignment and construction of a 2 lane asphaltic concrete (AC) road section between KM355 and Km440 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 2 within the overall CAREC 2 Project.

B. Summary of Impacts

5. Table 1 shows a summary of the key assets that will be acquired and displaced persons. The table shows those entities where families are resident (and will be physically displaced) and where families reside elsewhere in Gazli or Bukhara (and will be economically displaced).

6. Five households, comprising 22 people, will be severely impacted. 1 household (10 people) will have its residence destroyed. The remaining DP’s will have 100% of their productive assets removed as their businesses will be destroyed.

IKS GROUP OF COMPANIES 1 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1: Summary of Impacts – Project 2 Structures Land Workers Displaced Persons Lost Physically Economic KM ID Total Lost % m2 MFMF KM 359 n/a 0.1 0.1 100% 1 100 - KM 362 n/a 0.1 0.1 100% 1 100 - KM 366.8 R23662 0.05 0.05 100% 1 21 - 1 KM 367 R23661 0.15 0.15 100% 2 474 5 3 2 KM 372.6 R23731 0.2 0.2 100% 1 200 4 3 1 KM 376.3 R23771 0.26 0.16 62% 2 105 - 6 4 KM 381 R23811 0.18 0.18 100% 1 126 - 2 Totals 1.04 0.94 90% 9 4618 9 6 4 9 3

C. Entitlements

7. The complete budget for LAR activities on Project 2 is shown in Table 2. It indicates a total budget of 280,559,000 Sum ($173,936).

Table 2: LAR Entitlement Summary ('000 Sum) ‘000 Sum US$ Land Preparation Costs* 135,000 83,695

Compensation Business Loss 10,002 6,201 Worker Compensation 12,900 7,998 Structural Loss 212,480 131,730 Agricultural Production 9,000 5,580

Support for Vulnerable Households Livelihood Allowance 2,032 1,260 Relocation Allowance 640 397

Other Costs Community Education 4,000 2,480 Resettlement Consultant PMU** 33,873 21,000 Resettlement Consultant – Supervision** 33,873 21,000 Mahalla Committees 4,000 2,480

Sub- Total 255,054 158,124

Contingency (10%) 25,505 15,812

TOTAL 280,559 173,936 *Land preparation cost will be covered by Social Infrastructure Development program of the district mayor’s office. **Costs will be covered by the Procurement and Safeguard consultants’ package of the project which’s been already identified.

IKS GROUP OF COMPANIES 2 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

II. PROJECT DESCRIPTION

8. This section provides a general description of the project, its components and the alternatives considered to avoid or minimize resettlement.

A. General Description

1. Background

9. Uzbekistan is a key transit point for Central Asian countries looking to trade among themselves, as well as with the rest of Asia and Europe. Central Asia Regional Economic Cooperation (CAREC) has a strategy and action plan to develop six transport corridors, which will improve connectivity and cut transport costs.1

10. The proposed investment program targets the Uzbekistan section of CAREC Corridor 2 - the A380 highway, which connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. Another highway investment now under preparation in Kazakhstan (supported by the Asian Development Bank [ADB]) will connect Beyneu (a town on the border with Uzbekistan) with Uzbekistan’s A380 highway and the port of Aktau in the Caspian Sea. The two highways, when completed, will provide Uzbekistan and other Central Asian countries direct access to the Caspian Sea, and thereafter to South Asia and the Black Sea (via road corridors being built in Armenia, Azerbaijan, and Georgia). The investment program has strong links to CAREC Corridor 6, which reaches the so-called Ring Road in Afghanistan and thereafter the main ports in Pakistan and Iran.

11. Railways used to dominate the freight market in the region, but their market share has fallen from 90% in 1997 to 57% in 2009. Increased motorization, a greater number of private road hauling companies, and shorter transport hauls of manufactured goods have lifted road freight traffic. A road sector strategy and road map is in place, which prioritizes the 1,200 km A380 highway. The adjoining road in Kazakhstan (between Beyneu and Aktau) will add impetus to regional connectivity and increase the viability of the investment program road.

12. A National Road Development Program for 2009–20142 has been prepared. It is consistent with the sector strategy and road map and is estimated to cost $2.6 billion - of which $1.6 billion is directed at the A380 highway. The investment program will contribute to this program. Other investments cover rural and urban roads. The investment involves mainly the reconstruction of existing networks, although some green field projects are also envisaged.

13. The proposed investment program will have an impact on sustainable economic development. The outcome will be better transport connectivity and efficiency, and institutional effectiveness.

1 ADB. 2008. CAREC Transport and Trade Facilitation Strategy and Action Plan. Manila. 2 Resolution of the President of the Republic of Uzbekistan PP-1103 dated 22 April 2009.

IKS GROUP OF COMPANIES 3 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

2. The Uzbekistan CAREC 2 Project

14. The Uzbekistan CAREC 2 project will comprise approximately 222 km reconstructed road section of the A380 highway, and improved planning, project management, logistics, road asset management, and community facilities. The relevant A380 sections are located in Bukhara, Khorezm Provinces and the Republic of Karakapakalstan. The project is financed through ADB’s Multi-tranche Financing Facility (MFF) with 3 tranches being applied for the Investment Program. The first tranche (Project 1) commenced in 2010, with subsequent tranches to follow as they are prepared. The Executing Agency (EA) for the Project is the Republican Road Fund (RRF) under the Ministry of Finance.

15. The investment is split into three separate projects.3

16. Project 1 consists of approximately 50 km reconstructed section of the A380 highway (between Km440 and Km490). This section does not involve land acquisition or involuntary resettlement, nor lead to significant environmental impacts. The investment will convert the existing road section into a four-lane international design road within the existing right-of-way. This project also includes road sector sustainability, community development and road asset management activities. Project 1 is currently under implementation.

17. Project 2 comprises approximately 85 km reconstructed section of the A380 highway (between Km355 and Km440) and procured road construction and maintenance equipment.

18. Project 3 comprises 2 sections – the first is approximately 40 km reconstructed road section of the A380 highway between Km315 and Km355. The second section is the construction of 47 km of a new alignment between Km581 and Km628 bypassing the towns of Turtkul, Beruniy and Buston. The project will also strengthen logistics by improving cross- border facilities and shortening the cross-border processing time. This project will also expand the community development program and institutional capacity.

19. This document relates to the land and resettlement preparation activities for Project 2 – the reconstruction of the A380 Highway between Km355 and Km440.

B. Description of Project 2 - A380 Highway between Km355 and Km440

20. Project 2 comprises the reconstruction of the current 2 lane asphaltic concrete (AC) road section between KM355 and Km440 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 2 within the overall CAREC 2 Project.

21. Instructions from the Road Design Institute (DI) indicate that the road pavement and shoulder will be 14m wide for each carriageway. The majority of the dual carriageway will also comprise an easement of 7m along each side of the road. Specific section drawings provided by the DI (such as in turning areas and curves) allow for a 50m easement.

3 ADB, 2010. Report & Recommendation to the President - Proposed Multi-tranche Financing Facility, Republic of Uzbekistan: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program

IKS GROUP OF COMPANIES 4 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

22. The proposed highway generally follows the existing A380 alignment, which is serviced by a small number of cafes, shops, garages, auto and tyre repair facilities and provincial road control posts. The newly proposed carriageway is sometimes aligned to north, and sometimes south of the existing based on a number of overall design criteria (see “Alternatives Considered”)

C. Alternatives Considered

23. The DI has designed the proposed highway within the constraints of several criteria.

24. International Standards - According to the Resolution PP-1103 of the President of the Republic (April 22, 2009), international roads of category 1, have to be adjusted to comply with international standards and norms through construction and reconstruction of four lane roads. Additionally, all curves have to comprise a minimum 3000m radius to reduce cornering forces.

25. International Gas Pipeline – The existing Uzbekistan international gas pipeline corridor generally follows the existing A380. It is a significant high-value asset. The new road alignment avoids the easement, or crosses it at 90 degrees, ensuring that it minimizes any expense or complications that may be encountered.

26. Other Key Infrastructure – The proposed road design tries to avoid all significant telecom, water, electricity, check-point and cell-phone infrastructure where possible. Where this has been impossible to avoid, plans are in-place for all assets to be restored to before- project status during construction.

27. Existing Businesses and Households – Where possible, businesses, households and temporary structures have been avoided in the designs provided by the DI. This follows existing Uzbekistan Law that requires the minimization of all impacts. Given the significant criteria that the DI has to consider already – pavement, corner radius, gas pipeline etc – some impacts on private assets have been unavoidable. These will be the subject of this Land and Resettlement Plan (LARP).

IKS GROUP OF COMPANIES 5 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

28. This section discusses the projects potential impacts, the scope of land acquisition and summarizes the key effects in terms of assets acquired and displaced persons.

A. Potential Impacts

29. The widening of the existing road corridor to accommodate a grade/barrier-separated dual carriageway will result in a small number of impacts on existing private assets. Furthermore, the addition of wider sections to accommodate slow down lanes for u-turns and entry/exit of joining roads has been designed at existing road junctions – where often there are already cafes and shops. Nonetheless, impacts have been minimized.

30. The census of impacts was undertaken over the period 19th-25th July, 2010 – following the project cut-off date of 19th July. Impacts were assessed based on drawings provided by the Design Institute. Road corridor widths were indicated in pen on the supplied drawings and confirmed by the RRF following a letter from the appraisal consultants on 10th July. This indicated that all corridor widths were to comprise a 28m road (pavement, verge and embankment) and an impact area of a further 7m on either side.

31. Apart from the private land that is to be acquired, there are a few other impacts to be considered.

1. Abandoned Structures

32. There are 2 structures that appear abandoned. All efforts to establish a title, owner or conduct an interview were unsuccessful. They are located on the north side of the existing road at Kms 359 & 362. They are untitled and are generally dilapidated mud brick construction, missing windows and roofing, and with no floors. They are occasionally used as refuges by herders in the area during periods of high wind, or to shelter when their animal herds are feeding nearby. Their replacement cost has been included in the total costing, in the case that the subsequent RP update (or cadastral office) is able to locate an owner.

2. Non-Operational Structures/Businesses

33. There are 2 structures that are non-operating businesses. One is located at Km381, and is still under construction – although that has been discontinued and appeared abandoned at the first visit. Subsequent research has indicated that it has a title and an owner.

34. The other entity is an old café (R23771), currently used by the owners as a residence as they tend to nearby herds. It is very dilapidated - missing windows and roofing. It is included in the DP’s described below.

3. Herders

35. A small number (3-6) of herders were observed along the corridor during the initial project reconnaissance and later during the census period. It is not expected that construction will have major impacts on their grazing lands – as these consist of the vast desert hinterland.

36. Some herders have temporary shelters near to the road, with only one that was within the proposed design corridor. This temporary shelter was moved prior to the survey.

IKS GROUP OF COMPANIES 6 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

37. When available, herders were questioned regarding impacts to their activities and livelihood. They were concerned about their ability to move animals across the corridor and access to the highway for transport to town; these have been summarized in the consultation section, and addressed in the LARP recommendations.

4. Wells

38. Three wells were observed to fall within the proposed road corridor. They were reported by officials to be inoperable. These fall within the scope of public assets (such as power and telecom lines) and will be replaced during construction.

39. Water provision for grazers and emergency use was raised during consultations and impact assessment, and measures to address this issue are contained in the Rp recommendations and community development plan.

5. Bus Shelters

40. There are at least 3 bus shelters that will be demolished during project construction. These fall within the scope of public assets (such as power and telecom lines) and will be replaced during construction. The provision of additional bus / emergency shelters is included in the community development and gender action plans.

41. Water provision for grazers and emergency use was raised during consultations and impact assessment, and measures to address this issue are contained in the LARP recommendations.

6. Temporary Structures - Business

42. At least 2 businesses have transportable sheds within the proposed alignment (KM 431.9 and 432.0). These will be relocated to the temporary road during construction (with no business interruption) then relocated to within the titled boundaries of the businesses at the completion of project construction by the contractor. There will be no cost to the businesses, and no business interruption. These businesses have not been assessed as AP’s.

B. Scope of Land Acquisition and Resettlement

43. The Project will generally follow the existing right-of-way. Hence, land acquisition is relatively minimal. However, a total of 0.94Ha of land needs to be acquired permanently (including that of the abandoned and non-operating entities). There are 4 separate operating business entities that will be demolished during construction or will have substantial impacts. Only one entity – the ex-café at Km376.3 is a also a residence. During construction, additional land may be used temporarily for camps and borrow pits, however the Design Institute indicates that this land is desert and without any title.

44. The displaced entities, indicating their location and id/survey number, are:

Km366.8 – (R23662) – South - Consists of a small, untitled, concrete block tyre repair facility. Owned by an employee of the shop/café at Km367, it will be fully demolished.

Km367.0 - (R23661) – South - Consists of a modern, well-constructed concrete block café and shop complex, together with an adjacent temporary road side drink stall. No staff sleeping areas were reported. All facilities will be completely destroyed.

IKS GROUP OF COMPANIES 7 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Km372.6 – (R23731) – North - Is a café, gardens and auto repair facility (including pits). The café is of block construction and open air design. The gardens are well-developed providing both amenity and some fruit/vegetable planting. All will be destroyed.

Km 376.3 – (R23771) – South - Is a café and gardens to the south side of the road. The café is generally in poor condition, and doesn’t appear to be operational. It is however used as a residence for the family who also conducts herding nearby. Gardens are mainly in the form of a shade / wind break with some minimal vegetable planting. The structures and gardens will be fully demolished.

Km381.0 – (R23811) – North – Is a large mud-brick café still under construction. There are no fittings (windows, doors) or gardens. It is non-operational

C. Summary of Key Impacts

45. Table 3 shows a summary of the key assets that will be acquired and displaced persons. The table shows those entities where families are resident (and will be physically displaced) and where families reside elsewhere in Gazli or Bukhara (and will be economically displaced).

46. Five (5) households, comprising 22 people, will be severely impacted. One (1) household (10 people) will have its residence destroyed. The remaining DP’s will have 100% of their productive assets destroyed as their business premises will be destroyed.

Table 3: Summary of Impacts – Project 2 Structures Land Workers Displaced Persons Lost Physically Economic KM ID Total Lost % m2 MFMF KM 359 n/a 0.1 0.1 100% 1 100 - KM 362 n/a 0.1 0.1 100% 1 100 - KM 366.8 R23662 0.05 0.05 100% 1 21 - 1 KM 367 R23661 0.15 0.15 100% 2 474 5 3 2 KM 372.6 R23731 0.2 0.2 100% 1 200 4 3 1 KM 376.3 R23771 0.26 0.16 62% 2 105 - 6 4 KM 381 R23811 0.18 0.18 100% 1 126 - 2 Totals 1.04 0.94 90% 9 4618 9 6 4 9 3

IKS GROUP OF COMPANIES 8 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IV. SOCIOECONOMIC INFORMATION AND PROFILE

47. This section outlines the results of the social impact assessment and the household survey conducted during the DP census.

A. Poverty and Socio-Economic Assessment (PSA)

48. Project 2 is almost wholly with Romitan District in Bukhara Province.4 Few people live along this section of the A380, and mainly comprise café/shop owners and their families, some employees, Government check point staff and nomadic herders. The road is used by these people for access to hospital, emergency and service facilities in Gazli and Bukhara. In addition many café/shop owners reside in Bukhara.

49. The road is also used by people from Bukhara Province for travel to mining and economic activities across the desert and for business and education in Khorezm and Karakalpakstan. The region is host to significant gas and gold reserves.

50. Given that the LARP census would survey a significant number of the population immediately adjacent to the road section (the remaining population is difficult to access), the social and economic survey was undertaken in Gazli and Bukhara. The survey was administered to a statistically significant number of the base population. The impact survey section was also conducted on road users (bus, truck, taxi’s and private vehicles). The results are outlined in the Project Poverty and Socio-Economic Assessment (PSA).

51. The project area is contained within Romitan District, of Bukhara Province. Bukhara province region is located in the west of the central part of Uzbekistan. About 70% of the population lives in the countryside and 30% live in cities. Romitan consists of 1,300 km2 divided into 38 mahallas. The key feeder town for the project is Gazli.

52. As of 1 January 2010, the population of Romitan district was 114,606, with 6% residing in Gazli town. There are 2 Makhallas in Gazly with 56% of town population living in Gazly MAC and 44% in Baynalminal MAC. 51.25% of the population are women. There is negative local growth, which is due to a high rate of out-going migration.

53. Education - There is adequate schooling in Gazli, however this does not extend to the project area due to its remoteness. There are no colleges or academic lyceums, as well as any brunches of Higher Education Institutions. Survey respondents indicated that the education situation contributes significantly to the out-migration.

54. Healthcare - Gazly has 1 hospital with 40 beds. There is also one Polyclinic for adults and children with the capacity to serve 100 people a day. There are few private pharmacies in the town. In case of serious diseases, people attend the central regional hospital or specialized hospitals in Bukhara. Survey respondents indicated that the proposed road upgrade will assist in improved and rapid connection for people in the remote areas of Romitan to access the health facilities of Gazli.

4 A small section is located within Khorezm Province but contains no AP’s

IKS GROUP OF COMPANIES 9 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

55. Utilities – All of the DP’s had access to electricity, gas and telephone. There was no centralized water supply, instead households relied on wells and water carting. Gazli town has similar levels of service, with only 43% of households connected toa reticulated water supply. B. Project Census

56. The project census was undertaken over the period 19th-25th July, 2010 – following the project cut-off date of 19th July. It comprised a standard household questionnaire (as used in the PSA) and an impact questionnaire. Respondents were sometimes loathe to provide answers due to the nature of their business tenure. In other cases, owners were absent and non-contactable, with workers unwilling to provide information.

1. Population

57. Of the 3 operating and 2 non-operating entities affected by the project, all were able to provide partial or complete household socio-economic data. There were 22 people across 5 households, resulting in an average household size of 4.4. Of these, 32% were women and 68% men – or approximately 2:1. There were no female-headed households.

58. Only one DP is losing both its business structure and residence (R23771). The remaining households are only losing their productive asset (café, tyre repair etc) as their residences are located elsewhere outside the corridor. The physically displaced household has 10 people comprising 6 males and 4 females. The household has 6 children.

2. Education

59. All respondent households reported that all family members had either completed secondary school, or were still at school. Of those finishing secondary school, 33% had gone on to college, with only 8% continuing to higher education. Twice as many men as women attended college or university – corresponding to their relative population distribution 2:1.

60. Over 45% of family members were children attending pre-school to secondary school. In the physically displaced household (R23771), of the 6 children, 4 attend school, and the remainder are pre-school age.

3. Employment

61. Across all surveyed households, 25% of adults were employed, while 58% considered themselves to be unemployed. About 50% of households reported income emanating from family members working away from home or abroad (and were not accounted in household numbers). 17% of the adult household population were pensioners. No-one reported any disabled household members.

62. Many households were unwilling to provide financial information for the survey. However, of those that did, average income was 523,000 Sum per month, equating to an average of 3,470 Sum per person per day – right on the poverty line outlined in the PSA.

4. Household Income

63. The average monthly household income was 524,000 Sum, equating to an average of 3,174 Sum per person per day. This figure is below the $2.15 (3,440 Sum) poverty line established by the World Bank and other development organizations in Uzbekistan as the minimum amount required per person per day to purchase basic food necessities.

IKS GROUP OF COMPANIES 10 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

64. Two households, R23811 and R23771 fall below the established poverty line and will be eligible for livelihood allowances.

65. Table 4 summarizes the census socio-economic data. A detailed summary of the DP’s socio-economic situation is also shown in Annex B.

Table 4: Socio-Economic Data - Project 2 HH members Education Occupation Employed

APs M F '000

Total Yes No Higher- School Female head Female Total Income Total College disabled education pensioner University Pre-school Secondary

R23661 1 1 R23662 32 5 11 13 2 570 R23811 2 2 22150* R23731 31 4 12 1 4 600 R23771 64 10 42 4112775* Total 15 7 0 22 8 3 1 Average 524

* Denotes vulnerable household

C. Gender and Ethnic Minority Issues

66. No female headed households will be adversely impacted by the project activities. Women indicated that the road improvements will be favorable, with improved access to medical facilities and business services in Gazli and Bukhara. Other gender sensitive activities (such as toilet and water point provision) have been included in the updated Gender Activity Plan.

67. There are no indigenous persons (as defined by the ADB Safeguard policy 2009) inhabiting the project area. Some ethnic minorities such as Turkmen and Kazakhs comprise some employees and herders – but do not consider themselves significantly separate from the general population to warrant the trigger of the IP safeguards. Their comments and concerns have been incorporated into the consultation summaries, and reflected in the RP recommendations.

IKS GROUP OF COMPANIES 11 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

V. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

68. This section outlines the consultation and participation processes that have already been undertaken to prepare the LARP and those that are required during its update and implementation.

69. The Project has promoted meaningful public and stakeholders’ participation in consultations and focus groups. It began early in the project cycle and has been continued throughout the RP preparation. Plans are in place for it to continue through the RP update and implementation. The process has provided timely disclosure of relevant information to stakeholders through a project brochure, with follow up FGD’s and face to face meetings to ensure it is fully understood. Meetings have been undertaken at all levels, so that power differentials do not create feelings of coercion and intimidation. Particular attention has been paid to the poorer DP’s in the process so that they are more comfortable with the process and feel included.

70. The key objectives of the consultations were to: (a) identify and help address DP concerns related to the preparation and implementation of the RP; (b) determine DP preferences for the type and delivery of compensation; (c) minimize DP apprehensions and ensure transparency in RP activities; and, (d) help avoid unnecessary and costly project development delays.

A. Project Stakeholders

71. The project consists of a number of stakeholders, all of whom will have some involvement in the RP process and mitigation of impacts. These were identified early in the RP process and targeted through a series of consultations. They include: Displaced Persons, businesses and institutions. Local officials from District and Province Hokiamat and include cadastral, road, environment, economic and rural committee members. Land and resettlement Committee members (LARC). Women’s Groups at district and mahalla level. Transport representatives – taxi, bus and truck drivers, owners and companies. Representatives from education and medical centers who will benefit from the improved road. Commercial representatives – businesses, chambers of commerce.

72. Women and Vulnerable Groups - have been fully included in the consultation and implementation process. They have had representation at meetings at Province, District and mahalla level; women and ethnic minorities have had separate meetings during FGD’s and the census process; and their numerous concerns and ideas have been reflected in the LARP recommendations and the updated GAP.

B. Information and Consultation Mechanisms

73. A number of mechanisms are being used to undertake information dissemination and meaningful public consultation. These include:

74. Public Consultations – These are the formal public information campaigns undertaken in the Province Hokimiyat. They include environmental, social and resettlement presentations. The meeting is widely advertised in the media. Attendance is normally

IKS GROUP OF COMPANIES 12 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Government agencies, informed and mobile AP’s and concerned citizens. Due to the distance from project sites, many of the poorer AP’s find it difficult or impossible to attend. An attendance list for all consultations is contained in Annex D.

75. Socio-Economic Survey – The survey conducted for the PSA included a brief overview of the project and elicited comments on impacts. Each respondent was provided with contact details for any follow up questions. This ensured that the basic project concept was made widely known throughout the project affected areas.

76. Project Census – Like the PSA survey, the project census was also used as an information exchange with AP’s. A more detailed outline of the project was provided to AP’s at the beginning of each survey in the form of the Public Information Brochure, and a verbal Q&A with the interviewer.

77. Public Information Brochure – A 10-page, Public Information Brochure was developed outlining details of the project, its location, potential impacts, agreed entitlements and compensation for AP’s, the project implementation timeline, the grievance redress mechanism and answers to frequently asked questions. It was distributed to every affected household/business during the AP census, and was available at the FGD’s for other interested parties. It will be updated as the project progresses, incorporating new questions and more details on the implementation process. The Public Information brochure is contained in Annex C

78. In-Depth Interviews - are a follow-up from the official public consultations and are targeted at specific groups of stakeholders who may not have attended. They also target stakeholders who may not be aware that they are and should be involved in the project, and who would otherwise not be involved in the formal consultation or census process. For this project they include trucking/transport association representatives, women’s groups, education and medical institutions, and chambers of commerce. The interviews mainly assessed these groups’ views on the potential project impacts (positive and negative), mitigation measures and suggestions for improvement.

79. Focus Group Discussions – are a follow-up from the AP census, and focused directly at the AP’s – in particular the less powerful and poorer AP’s who may not have the resources to attend the official public consultations due to distance, time and cost. The FGD format includes a detailed presentation of the LARP process, separate discussions with women (using a female interviewer and female translator), confirmation of census figures and entitlements, and a detailed Q&A session. The sessions are normally conducted in the local community (to reduce distance) and where possible, without outside influence (from Hokiamat, rural committee members or nearby farmer/landlords) so as to reduce any feelings of intimidation or coercion.

C. LARP Preparation

80. The formal project public consultation meeting for Project 2 was conducted in Febraury 2010 and included environmental, social and LAR presentations. An attendance list and minutes of the meeting are included in Annex D.

81. The In-depth interviews for Project 2 were undertaken in the Romitan Hokimiyat on the 5th August. This also served as an updated Project consultation – as it was combined with the presentations for the adjoining Project 3.1 (km315-355). 30 people attended including representatives of the hokimiyat and its departments, organizations of city infrastructure, makhallas and health care organizations and education. An attendance list and meeting minutes are contained in Annex D.

IKS GROUP OF COMPANIES 13 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

82. The key comments provided from these meetings included: Building new bus-stops and repairing the existing ones. Establishment of common bus station in Gazli and Bukhara, unified for buses traveling across all routes. Allocation of additional funds at local administration for rehabilitation of existing feeder roads. Construction of smaller roads linking rural settlements to major roads. Ensuring the renewal of road security measures, signs and traffic lights particularly near schools Compulsory construction of special parking areas near each business Impose better control over gas stations to improve the quality of fuel sold. Replacement of road signs and special marks at near school roads. Increasing awareness among the road user on the norms of road use. Provision of safety measures (water/shelter) on remote stretches of the road.

83. Detailed discussions were held with business owners during the census. Additionally, a number of employees were briefed on the project in the process of owner identification. Their comments have been included in the overall project comments outlined in Annex D

84. A combined “Town meeting” and Focus Group Discussion was held in Gazli Township on the 5th August, 2010 to elicit comments from DP’s in Projects 2 and 3.1. This was necessary as the Romitan Hokimiyat is over 100 kms away. A small number of DP’s attended, including 1 from Project 2. Representatives of some businesses and the local women’s committee were also present. Discussion mainly consisted of details of the road alignment; the issue of viability of the assets that would remain; and the method of valuing business assets and transactions. An attendance list and meeting minutes are contained in Annex D.

85. 280 Road users were surveyed during the preparation of the PSA and asked to outline any issues for the proposed road improvement. Their comments have been included in the overall project comments outlined in Annex D.

86. Three nomadic herders were interviewed prior to the FGD on the 4th August. Although none have assets located within the project corridor, the project will have some impact on their operations. Their concerns included: Ability for their animals to cross the dual carriageway to grazing areas without impeding, or being injured by traffic. Access to the highway to catch buses and transport to townships. Impact on water points, wells and dilapidated buildings that currently act as temporary shelters. These concerns have been addressed in the community action plan.

D. Summary of Project Consultations

87. The key issues raised during the extensive consultation process can be summarized as: In order to take advantage of the improved highway, feeder roads need to be improved as well. Businesses should be placed to allow parking areas accessible form the road. There should be improved road safety measures including signs, line marking, safety points (water/shelter) and barriers.

IKS GROUP OF COMPANIES 14 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

There should be improved bus shelters and access points.

E. Further Information Disclosure

88. Further information disclosure will occur once approval of the RP has been obtained by the RRF and the ADB – expected by mid-October.

89. The updated Project Information Booklet and summary RP (translated into Uzbek) will be distributed in mid-October to each DP to provide additional information on the implementation arrangement, payment schedule, and assistance provided to specific groups and complaints resolution options.

90. The full RP (translated into Uzbek) will be distributed to each Mahalla for display and reference by all AP’s. An index sheets outlining each DP, their GPS coordinates, maps, assets and entitlements will also be on available for review. All DP’s have been informed of this, and understand that they will be able to provide comments or grievances through the normal channels.

91. The full RP (translated to Uzbek and English) will be disclosed on the RRF PMU and ADB website.

92. In conjunction with the detailed engineering design, and following Loan negotiations, it will be necessary for the Safeguards Team to update and finalize the LARP. They will need to undertake a final visit to the field to ascertain correct alignments and corridor widths, and confirm the details of the LARP – including asset impacts, entitlements and grievances. Details of the updated implementation timeline, procedures and activities; entitlement matrix; and, grievance procedures will be provided at that time to each DP. The updated LARP (in English) will be disclosed on the ADB website, and prior to any resettlement activities.

93. Women and Vulnerable DP’s - During LARP implementation, the PMU will assign a staff to: Inform in advance the DPs, including women-headed households and vulnerable groups, to begin moving at least 180 days prior to demolition of their structures; Ensure that all resettlement payments are made prior to the announcement That all resettlement procedures have been undertaken prior to construction commencing; Persuade housewives to be with their husband when receiving payment for compensation and assistance from the Hokimiyat; Involve women of affected households and vulnerable groups in the locality in addressing the unanticipated social and environmental impacts during Project implementation through the GAP. With the consent of the DPs, ensure that the names of both spouses will be reflected in the re-registration of the transferred land titles.

IKS GROUP OF COMPANIES 15 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VI. GRIEVANCE REDRESS MECHANISMS

94. This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances.

A. General Principles

95. ADB requires that a grievance redress mechanism is established and maintained. It should be designed to efficiently receive and facilitate the resolution of affected peoples’ concerns and grievances about project levels social and environmental issues. The grievance redress mechanism should be scaled to the risks and impacts of the project. It should address affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people.

96. The grievance redress process has been widely disseminated to all AP’s during project consultations, FGD’s and the LARP census. It was contained in the Information Brochure handed to each affected household / business during the census.

97. The following mechanism has been updated and improved to reflect practical issues raised and encountered during the last round of focus group discussions. It has updated in the Project LARF and will also be disseminated to all AP’s during the LARP disclosure in October 2010 and the confirmation and update procedures prior to project finalization. Copies of the process and the complaint forms will be posted at the Mahalla offices and the District GFP.

B. Grievance Coordination

98. A Grievance Focal Point (GFP) has been established at the Ramitan Khokiamat to coordinate and address all complaints and concerns arising from the project. The contact details are:

Khakimov Furkat, Deputy Mayor. Ramitan district mayor’s office. Tel: 8365 552 12 32

99. The GFP will be assisted and supported by members of the Province Land and Resettlement Committee (PLARC) who will maintain a register of complaints, keep track of their status and report to the Director of PMU. They will regularly track complaints received, actions taken and the status of resolution. Complaint forms will be distributed to the heads of local Mahalla’s and the District GFP to facilitate recording of complaints.

C. Grievance Procedures

100. Affected persons have been informed that they should ask any questions or discuss grievances with their community head or the District GFP by phone or in person; or to project staff visiting the area.

101. If these questions/grievances are not answered within 1 week, it should be prepared in writing (using the assistance of the local community leader or school if necessary). AP’s have also been told that national and international project staff will also assist them with writing a grievance if necessary.

IKS GROUP OF COMPANIES 16 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

102. Written complaints can be faxed, sent or delivered to the Grievance Focal Points where they will be registered as being received. The District GFP will have 1 week to deliver a resolution to the AP.

103. In the event that a satisfactory answer cannot be provided, the AP may lodge the complaint with the Land Acquisition and Resettlement Committee (LARC) of the Province Khokimiyat and receive a reply within 15 days.

104. Affected Persons will have the right to take the dispute to the District court of law if they do not accept the Province Khokimiyat’s decision. All court costs (preparation and representation) will be paid for by the project – no matter the outcome.

105. Table 5 outlines a summary of the grievance resolution process.

Table 5: Summary of Grievance Procedure Stages in Response Handling Required Activities Verbally responds to questions and or complaints.

If no response within 1 week, or response is unsatisfactory, AP Mahalla Head or District GFD prepares a grievance in writing (utilise standard forms where possible).

Registers the written complaint and attempts to solve it. If complaint is not resolved in one week, it is passed by the GFD to the Province District GFD LARC for resolution.

Registers the written complaint and attempts to resolve it with the AP Regional Land and within 2 weeks. Resettlement Committee (LARC) If a solution is not reached, the LARC refers it to the RRF PMU

Assists in the activities of the GFD and LARC in the resolution of complaints.

Makes a decision within 2 weeks.

In the event that the District and Province are not able to resolve the Road Fund PMU dispute within the elapsed time, the RRF PIU will have a further 2 weeks to resolve the issue.

If the decision is still unacceptable to the AP, they may take it before the District Court, with all costs paid for by the project.

The District court hears the case and makes a final decision, that is District Court of Law binding on all parties.

IKS GROUP OF COMPANIES 17 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VII. LEGAL FRAMEWORK

106. This section describes National and Local Laws and the gaps with ADB Policy.

A. Relevant Provisions for Involuntary Resettlement in Uzbekistan

107. There are no laws or legislation in Uzbekistan that specifically address matters related to involuntary resettlement. Rather land acquisition is governed by the following laws and resolutions:

The Land Code - approved by the Law of the Republic of Uzbekistan from 30.04.1998, taking the changes of 2003-2004 into account;

The Civil Code of Republic of Uzbekistan from 1996, taking the changes of 2004- 2008 into account;

Law of the Republic of Uzbekistan on “State Cadastre” N171-II from 15.12.2000

Law of the Republic of Uzbekistan on “State land Cadastre” N666-I from 28.08.1998 taking the changes of 2002-2004 into account

Cabinet of Ministers Resolution on “Approval of Regulation on the order of legalization of seizure and allocation of land plots for non-agricultural needs in the Republic of Uzbekistan” No. 248, 27 May 1992

Cabinet of Ministers Resolution on “Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan” 246 from 25.05.1992;

Cabinet of Minister Resolution on “Order of realization into private property of objects of trade and public services together with land plots, where they are located, and land plots into life inheritance tenure” 126 from 11.04.1995, taking the changes of CoM Resolution 202 from 30.04.1999 into account;

Cabinet of Minister Resolution “On approval of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management” 223 from 16.06.1995;

Cabinet of Minister Resolution “On approval of the regulation on the order of identification of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management” 282 from 15.06.1992;

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan #97 dated 29.05.2006 “On order of compensation of citizens’ and legal entities’ losses due to land plots acquisition for state and public needs”

108. Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land. They do not provide for “land for land” or cash compensation as land is a state owned asset. A brief account of legislation pertaining to compensation and the provision of land is given in Annex E.

IKS GROUP OF COMPANIES 18 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. ADB’s Policy on Involuntary Resettlement

109. The ADB policy on involuntary resettlement is detailed as “Safeguard 2” in the ADB Safeguard Policy Statement (SPS) of June 2009. It emphasizes ADB’s efforts to assist DMCs to pursue environmentally sustainable and inclusive economic growth. In addition, ADB is committed to ensuring the social and environmental sustainability of the projects it supports.

110. In this context, the goal of the safeguards is to promote the sustainability of project outcomes by protecting the environment and people from projects’ potential adverse impacts.

111. The objectives of ADB’s safeguards are to: (i) avoid adverse impacts of projects on the environment and affected people, where possible; (ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and (iii) help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

112. ADB Safeguard Requirement 2: “Involuntary Resettlement” is detailed in Appendix 2 of the SPS and included in Annex E of this LARP. The ADB is in the process of updating its “Handbook on Resettlement – A Guide to Good Practice” (2003) however the basic principles and practical implementation procedures are still valid.

113. The key principles of ADB’s Involuntary Resettlement Policy and procedures relevant to the LARP are:5

5 These are paraphrased and summarised for discussion. The full text of the ADB policy is in the Annex

IKS GROUP OF COMPANIES 19 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

o better housing at resettlement sites with comparable access to employment and production opportunities o integration of resettled persons economically and socially into their host communities, and o extension of project benefits to host communities; Provide DP’s with transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; Provide civic infrastructure and community services, as required. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated 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. Prepare a resettlement plan elaborating displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons.

C. Comparison of Uzbek and ADB IR Laws, Regulations and Procedures

114. The main variations between Uzbekistan laws/regulation and ADB Safeguards policy are outlined in Annex E. Any key differences have been resolved in favor of ADB policy, particularly in areas where practices are less subject to independent oversight.

115. Comparison of the Uzbekistan LAR Policy with the ADB Involuntary Resettlement Safeguard Policy indicates that key elements of the ADB Policy are present - particularly those related to valuation of immovable property. The ADB’s principle of avoidance or minimization of resettlement is reflected in Uzbekistan Legislation.

116. The key policy difference regards DP’s without title, or registration (businesses and structures). In order to remedy this, Uzbekistan has ensured that all land, businesses and structures will be registered prior to resettlement, at no cost to the DP, and then transferred or compensated under the relevant entitlement.

117. Overall, Uzbekistan’s Country Safeguard System (CSS) is approaching that of ADB’s Social Safeguard Policy. The main area of concern is the application of laws in practice before and during construction – where differences have been noted in the field. This is mainly an issue of information dissemination to those responsible for implementation at the district and province level. This has been addressed in the information dissemination

IKS GROUP OF COMPANIES 20 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT activities during preparation, and will be a core area for the monitoring activities during the LARP update and implementation.

D. Actions Made to Address the Gaps

118. In February 2010, the RRF agreed to adopt a Land Acquisition and Resettlement Framework (LARF) for the Project that incorporates both Uzbekistan’s laws and procedures and the Resettlement Policies of the ADB. The Framework applies to all persons whose private land status is affected permanently or temporarily due to the Project, including purchase and temporary use during construction. It also applies to people whose use of state land, sanctioned or not, changes as a result of the investment. The Framework does not apply to State land that is transferred from one authority to another, or used for the reconstruction, unless third parties are adversely affected by the transfer or use.

119. The document ensures that: (a) compensation is provided at replacement cost for houses and buildings and at market value for all items,(b) non-titled APs are given livelihood rehabilitation, and (c) the provision of subsidies or allowances for APs suffering business losses or severe impacts and APs who are vulnerable.

120. A revised LARF has been prepared incorporating the changes and improved understanding gained during the preparation of this LARP. It is expected that it will be adopted by the RRF and ADB in October 2010.

E. Principles and Policies for the Project

121. The ADB policy has no reference for valuing entitlements except for the general principle that DPs should be at least as well off after the project as before it. In other words, valuation of their property and assets should be at the replacement value. The Bank’s practices also recognize this principle to ensure protection of interests and the well-being of the DPs.

122. The LARP sets eligibility and entitlement provisions establishing compensation rates in accordance with guidelines from the Land Code of the RU.

123. The following principles for the compensation/rehabilitation of families affected by the Project were explained to the DP’s and stakeholders during consultations:

IKS GROUP OF COMPANIES 21 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

All construction over public right’s of way – footpaths, canals, driveways and roads will be undertaken rapidly and without undue delay to avoid inconvenience to business and residences. Detailed seminars and consultations will be available for all affected households to keep them informed of the process. Representatives of affected households will be invited to participate in the Khokimiyat valuation meetings. A defined grievance procedure has been established. When a land owner or user does not agree with a decision regarding compensation or change of the ownership or land use (lease), it may not be exercised before the dispute is resolved judicially. In addition, any person who feels that they are in any way worse off can take their grievance to the highest level, at the cost of the project. Those people who face significant impacts (>10% of their land being resumed and/or physically displaced from housing) will receive additional support, assistance and compensation. Vulnerable groups, including female-headed households, the poor, disabled, or families with significant numbers of elderly members will receive additional support, assistance and compensation to ensure that they are not severely affected. DP’s may use and exercise their rights to a land plot and make necessary expenditures in compliance with its purpose after notification on acquisition for public needs until compensation is agreed. However, there will be no entitlement to additional compensation based on these improvements. If a land plot becomes unviable due to acquisition then the whole land plot will be compensated.

IKS GROUP OF COMPANIES 22 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VIII. ENTITLEMENTS, ASSISTANCE AND BENEFITS

124. This section outlines DP’s entitlements and eligibility and describes all resettlement assistance measures including an entitlement matrix. It also specifies all assistance to vulnerable groups, including women, and other special groups; and outlines opportunities for affected persons to derive appropriate development benefits from the project.

A. Entitlements to Compensation

125. The following groups of affected persons (APs) are included in the LARF and also will be addressed in this Land Acquisition and Resettlement Plan (LARP) for Project 2:

• All DPs losing land either with legal title, lease holding land rights or without legal status; • Owners of buildings, crops, plants, or other objects attached to the land; and, • DPs permanently losing business, income, and salaries.

B. Formalization of Title/Registration

126. To enable the Project to compensate unregistered land users under Uzbekistan laws, representatives from the District Cadastral Offices have advised affected land users to register or update the registration of their lands and structures. Under the LARP those who have unregistered land or structures will be registered free of charge prior to compensation. This will be facilitated by the RRF.

127. DP’s who have already paid for registration after project identification (November 2009), and feel that this was unjust, can elect to document their case to the grievance committee providing proof of date and amount charged. If found to contravene ADB policy, charges will be refunded by the EA.

128. The assets/structures on the affected plots of land users without titles have been evaluated by exactly the same criteria as those with titles.

C. Calculation of Compensation

129. This section will outline how compensation has been calculated for each component of the RP, and a summary of that calculation.

1. Land

130. Compensation for the land will be on a “land for land” basis, with land being provided to owners by the District Hokimiyat following assessment by the LARC. Such land will be of equal value/productivity in a nearby location and with comparable associated services/ facilities, or compensation to provide such services. Transaction cost, registration fees, if any, will be borne by the project.

131. For DPs using land without a formal lease, their total land used (leased and without lease) will be formally combined into a single lease, without cost to the DP. The land will then be transferred under normal processes.

132. A total of 0.94 of a hectare of land is required for Project 2. Most DP’s will lose 100% of their land. Land is generally arid or desert. It is expected that replacement land will be

IKS GROUP OF COMPANIES 23 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT provided behind the existing lands, outside the new corridor. Table 6 shows a summary of the land required.

Table 6 - Land Required for Project 2 Land Survey Km Total Acquired % n/a 359.0 0.1 0.1 100% n/a 362.0 0.1 0.1 100% R23662 366.8 0.05 0.05 100% R23661 367.0 0.15 0.15 100% R23731 372.6 0.2 0.2 100% R23771 376.3 0.26 0.16 62% R23811 381.0 0.18 0.18 100% Total 1.04 0.94 90%

133. Land Preparation – costs include survey and titling, realignment of water supply and gas mains to land parcels, and the general preparation of the site for construction. As the result of construction works it is expected that 5 business structures will demolished. According to the DI the funds have already been envisaged for the above mentioned facilities.

134. The realignment of the communal and communication facilities to land parcels and construction of access roads in complex will cost 20 million Sum per house. Survey and titling will cost 700,000 Sum per house. For project 2 these equate to 135,000,000 Sum or $ 83,695. A breakdown of these costs is shown in Table 7.

Table 7 : Land Preparation Costs – Project 3.2 Sum / Item Units ’000 Sum US$ Unit Survey and Title 5 700 35,000 21,699 Communal and site 5 20,000 100,000 61,996 preparation cost. Total 135,000 83,695

2. Businesses

135. All operating businesses will receive compensation for 6 months loss of business income. Income will be calculated based on tax declarations, imputed earnings or average income in this area. The owner has the right to alter this amount if delay or hardship is encountered, through formal application to the grievance process.

136. Unregistered businesses will first be registered at no cost. They will then receive compensation as per other businesses. If they cannot provide proof of business income, then average income of similar businesses in the area will be used to calculate compensation.

137. Workers – Compensation for workers will be based on stated (or average) wage rates (including fixed by oral agreement with employer) multiplied by 6 months.

138. Table 8 outlines a summary of business and worker compensation. Four businesses are operating entities earning income. They employ a total of 11 workers. Businesses will be

IKS GROUP OF COMPANIES 24 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT compensated 10,002,000 Sum ($3,248). Workers will receive 12,900,000 Sum ($4,750) in lost wages and benefits.

Table 8: Business and Worker Compensation ('000 Sum) Workers Monthly Business Compensation Survey Km Average Income Salary per month Salary Bus Worker R23662 366.8 167 1 150 1,002 900 R23661 367.0 800 5 250 4,800 7,500 R23731 372.6 500 4 150 3,000 3,600 R23771 376.3 200 1 150 1,200 900 10,002 12,900 Total 11 USD 7,998

3. Structures

139. All assets (registered or not) will be valued through calculating the real replacement cost based on cost of materials, type of construction, labor, transport and other construction costs. No deductions will be applied for depreciation or transaction costs. The cost of reconnection to lost water, electricity, gas and telephone connections will be included in the compensation (the new land sites are assumed to have similar services available). Salvaged materials will be allowed to be taken away by the DPs prior to demolition at no charge.

140. Table 9 shows the per unit cost for the relevant structures in the project area. Buildings unit costs have been estimated based on the average construction and roofing material used. Basic mud brick structures normally consist of barns or unfinished buildings. When they are painted and prepared for improved use – they are categorized here as improved mud brick. With facilities, refers to structures that also have gardens, awnings and other relevant facilities. Concrete block structures are either basic (assessed as at lock-up stage only) or improved (including ceiling, floors, kitchen and bathroom facilities. All unit costs include relevant utility connections for that type of structure.

Table 9 : Structure Unit Costs ('000Sum/m2) Basic 50 Mud Brick Improved 90 W/facilities 130 Basic 160 Concrete Block Improved 300

*all prices include relevant utility re-connections

141. Table 10 shows the compensation for all buildings. Buildings costs have been estimated by using the relevant unit cost multiplied by the total square meters of the building. Building 1 is normally the primary business premises (eg café) or residence. Other buildings are included in subsequent columns. Total building replacement cost for all DP’s is 212,480,000 Sum ($131,730)

IKS GROUP OF COMPANIES 25 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 10: Compensation for Structures ('000 Sum) Primary Other Structure Value Compensation Structure Structure Survey Km M2 Unit M2 Unit 1 2 359.0 100 50 5,000 5,000 362.0 100 50 5,000 5,000 R23662 366.8 21 90 1,890 1,890 R23661 367.0 450 300 24 90 135,000 2,160 137,160 R23731 372.6 200 160 32,000 32,000 R23771 376.3 80 160 25 90 12,800 2,250 15,050 R23811 381.0 126 130 16,380 16,380 Total 212,480 USD 131,730

4. Gardens and Trees

142. Only two household businesses had gardens and trees – R23771 and R23731. Their vegetable plots, trees and garden areas were valued at 4,500,000 Sum each based on similar calculations in nearby districts. This equates to a total of 9,000,000 Sum ($5,580). Table 11 summarizes the compensation payable.

Table 11: Trees and Garden Compensation ('000 Sum) Survey Km Trees and Garden Total R23731 372.6 4,500 4,500 R23771 376.3 4,500 4,500 Total 9,000 USD 5,580

5. Community Assets

2. The RP has to take account of the costs involved in replacing community infrastructure. This includes re-establishing or constructing intersections with existing roads; water, gas, electricity, irrigation and telephone infrastructure; civic buildings and community facilities (wells etc). Table 12 outlines the details of all community assets that will need replacing and the agency that will undertake that work at their own cost.

Table 12 : Community Asset Costs ’000 Items US$ Agency Sum Water Mains 37,000 22,938 Road Fund Gas Mains 624,000 386,856 Road Fund Electricity Mains 60,000 37,197 Road Fund Telephone Lines 28,000 17,358 Road Fund No Canals canals Wells No data Total 749,000 464,349

IKS GROUP OF COMPANIES 26 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

D. The Valuation Process

143. Asset Valuation - Initial asset (buildings, crops, trees, businesses) valuation has been undertaken by the Safeguards team. It will be verified and certified first by the RF Social and Land Acquisition sub-Unit and then by the District LARC. The Road Fund has agreed to fund independent valuations for all assets. These will be included in the LARP as they become available.

144. If the DP agrees with the valuation, then this will be used as the basis of negotiation between the leaseholder and the local authorities. If the DP disagrees with the valuation, Uzbek Law (Cabinet of Ministers Resolution N97 dated May 2006) allows for them to utilize an independent valuer at their own cost. In conformance with ADB requirements, this cost will now be paid by the RRF. They also have recourse to the grievance committee if agreement cannot be reached.

145. Land for Land - The District LARC decides on the assignment of alternative land plots. Given the lack of complexity in this project and the large extent of land available, the allocation will most likely be adjacent to the existing plot and realigned with the new corridor. Associated infrastructure requirements - service roads, drainage, sanitation, water supply, irrigation and electricity facilities – will be provided as part of site-preparation costs. All relocation activities will be carried out with the consent and cooperation of the displaced people and the local authority will be instrumental in carrying out resettlement activities as scheduled.

IKS GROUP OF COMPANIES 27 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

E. Entitlements Matrix

146. Table 13 outlines the complete entitlements matrix for the project.

Table 13: Entitlement Matrix for Project 2 Type of Specification Affected People Compensation Entitlements Loss Cash compensation at full replacement rate for affected structure/fixed assets free of salvageable materials, depreciation and transaction costs. Salvageable material will be allowed to be taken away by owner at no cost. Owners Housing Full or partial Cost of replacing water, electricity, gas and phone (with/without and loss of connections will be included in the compensation. house or building Structures structures registration) For partial impacts, cash compensation at replacement rates to restore remaining structure.

Unaffected portions of the structure will also be compensated if they become unviable after impact occurs All APs (including The full cost of seedling, cost of preparation of a garden Trees non-titled land Trees affected and lost profit at annual income multiplied by the owners) number of years till the trees gain fruiting Cash compensation equal to 6 month's income where Temporary/ loss is permanent. Business/ permanent Business Owner Employment loss of Compensation is estimated on the basis of tax business or declarations, imputed earnings or average income in employment this area. Indemnity for lost wages for the period of business Worker/employees interruption (including fixed by oral agreement with employer) for a period of 6 months. Compensation for lost rent paid in advance plus cash compensation equal to 6 month’s income if loss is permanent. Tenants of affected buildings Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area. 1 additional allowance equal to 3 months at $35 per family member per month. Vulnerable AP: AP Livelihood below poverty line Priority for employment in project-related jobs, training opportunities, self-employment and wage employment assistance

All DPs affected by Provision of US$100 cash compensation to cover relocation transport expenses to new locations. Transport Cost Relocation / transitional House owners and livelihood costs Will receive 3 months salary (based on wage receipts or tenants who are agreements) to allow time off for work to relocate employed Loss or Community damage to Rehabilitation/replacement of affected structures/utilities assets public (i.e. mosques, footbridges, roads, schools, health infrastructure centres, etc.) to pre-Program level and utilities

IKS GROUP OF COMPANIES 28 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IX. RELOCATION OF HOUSING AND SETTLEMENTS

147. This section describes the options for relocating housing and the activities that will be conducted to assist the process.

148. The District LARC is currently assessing options for relocation of all DP’s. It is expected that in all cases they will be reallocated land immediately behind their current plots. In all cases this land is desert. There are no other alternatives currently being considered.

149. Further details regarding relocation will be forthcoming as the DLARC finalizes is allocation processes. In particular the revised LARP will need to briefly outline:

(i) alternative relocation sites considered; (ii) justification for selected sites, including details about location, environmental assessment of sites, and development needs; (iii) timetables for site preparation and transfer; (iv) legal arrangements to regularize tenure and transfer titles to resettled persons; (v) measures to assist displaced persons with their transfer and establishment at new sites;

IKS GROUP OF COMPANIES 29 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

X. INCOME RESTORATION AND REHABILITATION

150. This section briefly describes programs for restoring and enhancing income of vulnerable groups, particularly women and the disabled.

A. Special Assistance to Vulnerable Groups

151. Livelihood Allowance - For those DP’s who are vulnerable – female-headed, poor, or face significant hardship due to elderly or disabled family members – an allowance of $35 per household member for three months will be paid. This equates to 169,365 Sum per household member. 2 families have been assessed as vulnerable, comprising a total of 12 people. Total livelihood allowances are 2,032,380 Sum ($1,260).

152. Relocation Allowance – All DP’s who will have to move from their house will receive a relocation allowance of 160,000 Sum per household. As 4 operating businesses / residences are relocating, this equates to a total payment of 640,000 Sum ($397).

153. Salary Support during relocation – All DP’s who have employment (formal or otherwise) will receive up to 3 months’ salary to cover the time taken to relocate. This will be based on documents from employer or wage receipts. At present, no DP’s have indicated that they will require salary support.

154. Table 14 outlines the summary of benefits

Table 14: Compensation for Vulnerable groups ('000 Sum) Households People Rate Total Allowance Type '000 Sum '000 Sum Poverty 2 12 Female Headed - - Livelihood Disabled - - Elderly - - Sub-Total 2 12 169 2,032 (without double counting) Relocation Businesses 4 n/a 160 640 Salary -- - - Support Total 2,672 USD 1,657

B. Opportunities to derive development benefits

155. Priority Work Placement – All DP’s and project stakeholders, such as herders will receive priority entitlement to work in construction crews and for rehabilitation efforts (such as tree replanting). These standards will be incorporated in construction contracts and details included in progress reports.

IKS GROUP OF COMPANIES 30 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Other costs

156. Other costs to be provided under the LARP include those of the Mahalla committees, safeguards consultants and the External Monitoring agency. Table 15 outlines the expected costs of providing these services and the agency responsible for payment. The total amount payable is 75,746 Sum ($46,960).

Table 15 : Other Costs (‘000 Sum) Responsible Items Amount Agency Community Education a 4,000 District khakimiyat Resettlement Consultant PMUb 33,873 PMU Resettlement Consultant – Supervision 33,873 Construction Mahalla Committees c 4,000 District khakimiyat Total 75,746 USD 46,960 a This cost will be paid by EA from LARP budget b This cost is envisaged under Procurement and Safeguard consultant package of the project c This cost will be paid by EA from LARP budget

IKS GROUP OF COMPANIES 31 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XI. RESETTLEMENT BUDGET AND FINANCING PLAN

Note: the following figures are consultant's estimates calculated based on the interviews and survey in the field. They are preliminary costs and can be increased or reduced based on the Independent Valuation Company's report and cost estimates.

157. This section provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation.

A. Responsibilities

158. In order to ensure that sufficient funds are available for LAR tasks, the Road Fund will have to allocate 100% of the cost of compensation at replacement cost and expected allowances estimated in each LARP plus contingencies before LARP implementation. As the EA, Road Fund will be responsible for timely allocating the funds to implement the LARPs. Allocations will be reviewed bi-annually based on budget requirements indicated in the LARPs.

159. The EA will be responsible for including LAR funds for project activities in each fiscal years government budget. The budget for LARPs will be disbursed by RRF via the Province LAR committee to the District LAR Committee which will in turn distribute the compensation to DPs.

160. The EA will be responsible to allocate adequate budget for the Safeguard Team to conduct their tasks and responsibilities during the Program's activities. This will be funded via the Procurement and Safeguard Support package.

IKS GROUP OF COMPANIES 32 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. Budget Summary

161. The complete budget for LAR activities on Project 2 is shown in Table 16. It indicates a total budget of 280,559,000 Sum ($173,936).

Table 16: LAR Entitlement Summary ('000 Sum) ‘000 Sum US$ Land Preparation Costs* 135,000 83,695

Compensation Business Loss 10,002 6,201 Worker Compensation 12,900 7,998 Structural Loss 212,480 131,730 Agricultural Production 9,000 5,580

Support for Vulnerable Households Livelihood Allowance 2,032 1,260 Relocation Allowance 640 397

Other Costs Community Education 4,000 2,480 Resettlement Consultant PMU** 33,873 21,000 Resettlement Consultant – Supervision** 33,873 21,000 Mahalla Committees 4,000 2,480

Sub- Total 255,054 158,124

Contingency (10%) 25,505 15,812

IKS GROUP OF COMPANIES 33 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XII. INSTITUTIONAL ARRANGEMENTS

162. The main institutions that will be involved in LAR activities are Republican Road Fund/ Road Fund as executing agency (EA), Safeguard Team, Design Institute (DI), Project Consultants (PC), Provincial (Province) and District (District ) and municipal towns authorities, Goskomzemgeocadastre (State Committee on Land Resources, Geodesy, Cartography and State Cadastre (SCLRGCSC) at district level.

A. Republican Road Fund (Road Fund) – PMU

163. The Road Fund will have overall responsibility for all aspects of the program. The Program Management Unit (PMU) within Road Fund will be responsible for the day to day management of the Program including cross-agency coordination, and via the Safeguard Team (ST) for LARP implementation and monitoring the compensation and disbursement.

164. The Safeguard Team (ST) under PMU will be directly involved in all LAR related planning, implementation, inter-agency coordination, monitoring and reporting. They will receive supports from the Project Appraisal Consultants (PAC) of the Program and benefit from inputs from the Design Institute (DI), district/municipal executive powers and SCLRGCSC as appropriate. The Safeguard Team in collaboration with the DI will review the LARPs.

165. If required, an NGO or impact assessment or valuation teams will be hired for on-site impact surveys or monitoring assistance.

B. Design Institute (DI)

166. The Design Institute will be in charge of elaborating the design and construction documents for the project. It will collaborate and work closely with the PMU/ Safeguard Team and PAC to: (i) look for measures and alternatives to avoid and minimize land acquisition and resettlement impacts; (ii) assemble all documents required for compensation; (iii) carry out topographic surveys of the expropriated land and replacement lands; (iv) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces differentiating the land use patterns in the areas being occupied to serve as a base for the selection of compensation land; (v) Conduct land marking and pegging of the land assigned for temporary use and permanent occupation of acquired land.

C. Regional and District SCLRGCSC

167. This is a permanent committee at Provincial and District level. However it plays an enhanced role throughout implementation. It is responsible for: i) identifying land losses incurred by land owners and land users plus agricultural output losses; ii) determining the degree and area of land restitution, including removal and temporary storage of productive soil layer; iii) determining the need for protective sanitary and water protection zones around constructions; iv) preparing proposals on allocation of land plots of equal value under land for land;

IKS GROUP OF COMPANIES 34 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

v) investigating alternatives to acquiring currently used land through developing unused land; vi) approving the Implementation Act and the attached plan; vii) Amending government edicts on land use and land ownership as well as other cadastre documents.

D. Province/District Governments

168. Local government agencies involved in the LARP review and implementation are Province (Province) and District (District) Executive Authorities who will form the Province Commission on Land Acquisition and District Evaluation Commissions. These will form a provincial land acquisition and resettlement committee (PLARC) which will undertake the following: (i) outline locations of constructions and structures affected by the project; (ii) select land for construction sites; (iii) prepare and approve legislation for the right (title) to use land plots and; (iv) approves the Act for the right to use the land plot.

169. In addition to permanent members, the Commission may include representatives of Road Fund, as well as affected legal entities and individuals.

170. The PLARC will also estimate losses of land owners and land users in accordance with ADB specifications in addition to losses resulting from land acquisition based on data provided by the Design institute. The Commission will prepare Acts for the right to specific plots of land specifying the acquired land area and losses and allowances as determined under the LARF entitlement matrix.

171. It is proposed that Land Acquisition and Valuation Committee as part of the PLARC composed of the following members:

(i) Road Fund PMU (ii) Provincial/District Department of Uzavtoyul (state joint stock company) (iii) Provincial/District Department f SCLRGCSC (iv) Provincial/District Department of Agriculture and Water Resources (v) Provincial/District of Environmental Protection (vi) Organizations to which the alienated land has been transferred for use (Road Fund as EA, PMU/ST and DI). (vii) Makhalas leaders, NGO, Dehkan Association (as relevant) (viii) Representatives of the affected people

172. All affected legal parties and individual persons (or their legal representatives) will have representation on the committee. Besides state organizations and structures, NGO’s, Farmer’s and Dehkan Associations (FDEA) and Mahalla authorities will be involved in resettlement activities to ensure the legal rights and interests of land users who are subject to land acquisition and resettlement.

173. Some members of the PLARC will form a Grievance Redress Committees (GRC) and will be established at provincial and district level. It comprises members of the PMU/ ST, leaders of affected Mahallas and local government/ Hokimiyat.

IKS GROUP OF COMPANIES 35 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Asian Republican Road Development Fund as Executing Figure 1: Project Implementation Diagram Bank Agency

Program Management Unit (PMU) Safeguard Team (ST) (Oversees LAR planning, implementation, and monitoring)

Reporting Supervision Information Exchange Consultants Monitoring

Design Road Construction Contractors Institute

External Monitoring Agency

District SCLRGCSC Regional/District (including Land Grievance Redress Acquisition and Valuation Committee Committee and Land Acquisition and Resettlement Committee)

IKS GROUP OF COMPANIES 36 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XIII. IMPLEMENTATION SCHEDULE

174. This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities synchronized with the project schedule of civil works construction.

A. Pre-Resettlement Activities

175. The PMU will undertake a brief verification of the RP based on the alignment finalized by the detailed design. Any modifications to the RP will be made, and verified with the PMU and the ADB prior to any LAR activities commencing.

176. The revised LARP will have to include the full details of all land and resettlement arrangements, including verification of asset viability by the DP’s. It is expected that this can take place prior to loan approval by ADB.

177. The Design Institute in charge of elaborating the design and construction documents for the road construction subproject, will assist the PIU to: (i) assemble all required documents; (ii) carry out topographic surveys of the expropriated and compensation lands; (iii) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces; (iv) establish layouts of the lands proposed as option for compensation; (v) conduct the land marking and the pegging of the lands assigned for temporary use and permanent occupation and of the compensation lands.

178. The DP’s will sign a document signifying their satisfaction on the compliance of RRF on the agreement. The PMU Social/Resettlement Specialist will guide the RRF in preparing a pro-forma document to be used for the settlement of obligation in the purchase of affected land and/or materials for all structures.

179. Disbursement of cash will follow the approval of budgets for cash compensation. The RP Team will inform the DPs of the schedule of fund release. They will also advise the APs to produce acceptable legal documents pertaining to their identification for claiming the compensation. It is the main responsibility of RRF to ensure that all the compensations and entitlements have been paid to and settled with DPs prior to their resettlement.

180. All resettlement activities will be completed prior to clearing the construction sites. The RRF will initiate the following steps in releasing the cash compensation and entitlements to DPs: The Resettlement Team will advise the DPs of the fund release schedules. The Resettlement Team shall then advise the DPs to produce the necessary legal documents for their identification in claiming the compensation and entitlements due to them. The Resettlement Team will arrange for receipt of the resettlement compensation from the RRF and disburse it directly to DPs on presentation of identification. The Resettlement Team will arrange for district hokimiyat to issue new title directly to DPs on presentation of identification. The Resettlement Team will require the DPs to sign a document indicating the receipt of their compensation and entitlements. The DP’s will then begin their process of rebuilding and relocation.

IKS GROUP OF COMPANIES 37 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The Resettlement Team will require the DPs to sign a document indicating completion of their LAR activities, indicating that they have no further claims. This will be summarized by the RRF and forwarded to ADB as part of no- objections for commencement of construction.

181. As a condition to approve the civil works contract award both the RP in English and in Russian and the information booklet will be updated, re-approved by ADB and re- disclosed to the affected communities.

B. Implementation Phase

182. The project loan is expected to be approved in March 2011 and the loan is expected to be effective by April 2011. Construction is set to start at the end of July 2011.

183. A schedule for implementation is presented in Figure 3.

C. Post Resettlement Implementation Phase

184. Monitoring of resettlement activities and the compliance of the project policies by the RP Team on behalf of RRF, as set out in this framework, are the items for this phase. This is because the internal monitoring which is the responsibility of the RP Team will be the basis for RRF requesting from ADB its “no objection” for the mobilization of construction contractors. ADB will also conduct a mid-term evaluation to ensure that there are no adverse involuntary resettlement effects.

IKS GROUP OF COMPANIES 38 TASHKENT,OCTOBER 2010 TA 7573-UZB: CAREC CORRIDOR 2 ROAD INVESTMENT PROGRAM FINAL REPORT

IKS/GROUP 39 TASHKENT, OCTOBER 2010

TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XIV. Monitoring and Reporting

185. This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

186. The primary objective of monitoring is to identify as early as possible the activities achieved and the cause(s) of constraints so that the arrangements in the LARP implementation can be adjusted. Monitoring is important because LARP implementation is often the critical path for any project where civil works is involved, due to issues on land acquisition, compensation and resettlement that may cause delay in civil works. The early identification of the causes of delay will enable the RRF (with support from the supervision consultants), to prepare the mitigating measures during LARP implementation.

187. LAR tasks will be monitored internally and externally. Internal monitoring (IM) will be carried out by both the Safeguards Team of the PMU and the Supervision Consultant (SC). In conjunction with District Hokiamats. External monitoring (EM) will be assigned to an Independent Monitoring Agency (IMA) hired by the RRF and approved by ADB from among local consultants or NGOs. The IMA will be mobilized prior to LARP implementation.

A. Internal Monitoring

188. All activities in LAR are time bounded. Internal monitoring (IM) will be carried out by the PMU Safeguards Team with the assistance of the supervision consultant safeguard tema and the LARC in the District Hokiamat. Process indicators will relate to implementation outputs and deliverables. These will be collected directly from the field, and will be reported monthly to the PMU to assess the LARP implementation progress and adjust the work plan if necessary. These reports will be quarterly consolidated in the supervision reports for ADB.

189. . Specific IM benchmarks will be: (i) Information campaign and consultation with APs; (ii) Status of land acquisition and payments on land compensation; (iii) Compensation for affected structures and other assets; (iv) Relocation of APs; (v) Payments for loss of income; (vi) Selection and distribution of replacement land areas; (vii) Income restoration activities; and (viii) ensure the gender mitigation measures are adhered to during the internal monitoring and reporting process.

190. The above information will be collected by the Project Supervision consultants who will monitor the day-to-day resettlement activities of the project through the following instruments:

(i) review of census information for all DPs (ii) consultation and informal interviews with DPs (iii) key informant interviews; and (iv) Public community meetings.

191. Upon the completion of civil works, the PMU will prepare a post-LARP implementation evaluation report that will assess both the permanent and temporary land

IKS GROUP OF COMPANIES 40 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT acquisition activities and impacts of the Project focusing on the restoration of impacted lands and conditions of DPs especially those who were identified as vulnerable.

192. In addition, the PMU will update the LARF and particularly the Uzbekistan/ADB safeguards policy matrix, with a view to aligning Uzbekistan’s CSS and reducing LARP reporting requirements.

B. External Monitoring

193. To ensure that negotiated settlements in the Project comply with ADB SPS 2009 requirements, the PMU will hire an external monitor to document the negotiation and settlement processes. The EM will observe the consultations conducted with DPs and the compensation payments negotiations. The EM will verify if the consultations are conducted in a free and transparent manner and that the compensation provided is based on replacement costs of land and other assets affected. They will submit a report on the observations and the evaluation. The EM will come from an independent organization, such as an academic or research institute, a nongovernment organization or consulting firm with experience in resettlement monitoring and evaluation.

194. External monitoring (EM) will be carried out on an ongoing basis, and its results communicated to the PMU and ADB by quarterly reports. Indicators for EM tasks include:

(i) Review and verify internal monitoring reports prepared by PMU, (ii) Review of the socio-economic and census and inventory of losses baseline information of pre-displaced persons; (iii) Identification and selection of impact indicators; (iv) Impact assessment through formal and informal surveys with the affected persons; (v) Consult APs, officials, community leaders for preparing review report; (vi) Assess the resettlement efficiency, effectiveness, impact and sustainability, drawing lessons for future resettlement policy formulation and planning; (vii) Ensure the gender mitigation measures are implemented.

195. The EMA will also assess the situation of affected vulnerable groups such as female-headed households, disabled/elderly, the landless and families below the poverty line. The following will be considered as the basic indicators in monitoring and evaluating the project:

(i) Socio-economic conditions of APs in the post-resettlement period; (ii) Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc. (iii) Changes in housing and income levels; (iv) Rehabilitation of squatters, severely affected people, and different vulnerable groups; (v) Valuation of property; (vi) Ability to replace lost assets; (vii) Disbursement of compensation and other entitlements; (viii) Level of satisfaction of APs in the post resettlement period; (ix) Quality and frequency of consultation and disclosure; and (x) Conduct of grievance procedures.

196. Internal and external monitoring and reporting will continue until all LAR activities have been completed. External monitoring reports will be disclosed on the Project/ADB website.

IKS GROUP OF COMPANIES 41 TASHKENT,OCTOBER 2010 Annexes Annex A

Census and Socio Economic Survey Forms Annex A

Orchard Farm Survey

Title of the farm Name of the farmer Home address Distance to the district center km 1 Total area of the orchards (ha) Including fruit bearing 2Trees -Apple tree -Apricot - 3 Garden planting year -age of trees 4 Size of the garden -width ) -length ) 5 Planting scheme -distance between rows (m) -the distance between the trees in the row (m) 6 The total number of trees (pcs) -number of trees died in % -land usage index 7 Bonitet score *

Economic performance of the farm

Years 2010 Apple tree 2007 2008 2009 Fruit bearing area (ha) Yield (centner/ha) Gross harvest (tons) Production costs. (million soums) -incl. salaries Average price per tonne of (000’ sum) Product cost (million) Profit +, loss-(million) Rate of profitability (%) Apricot Fruit bearing area (ha) Yield (centner/ha) Gross harvest (tons) Production costs. (million soums) -incl. salaries Average price per tonne of (000’ sum) Product cost (million) Profit +, loss-(million) Rate of profitability (%) Income from intercroppings in the garden Forage crops (million sums) Melons and watermelons and potatoes (million) Profit +, loss of crops (million sums) Total revenue (million sums) Total income +, loss-(million sums) Number of employees (persons) Including permanent ones

Land acquisition in 2010.

The length of the road crossing the garden (m) Including via Apple trees apricot trees width of the road (m) Area total (ha) Including via Apple trees apricot trees

Signature of officials Date

*) indicators shall comply with the regional cadastre and tax departments **) indicators shall comply with the District Department of the State Property Committee, the remaining indicators shall comply with) the regional Department of statistics, farms and dehkan farms report to. Business Ownership TypeofBusiness Registered ValueifBusinessSold IncomeperYear ExpenditureperYear ProfitperYear

Workers Number FullTimeEquivalent AvgSalary Total

Tenants RentPaidpermonth UntilWhen?

MitigationMeasures

Commentonpotential Relocationand/or Compensation requirements. Asian Development Bank CAREC 2 – Resettlement Census (Ver 2)

Questionnaire ID: |R |___ |___|___|___|___| Type/Project/AP# Dateofsurvey Location Rayon Mahalla Nameofsurveyor HouseholdName

Survey Houses DoHousesurvey Garden DoGardenSurvey Farm DoFarmsurvey HowmanyTypes? Numberoffarmsurveys DoTree Trees Survey Business DobusinessSurvey

Assumefulldemolitionifwithin21m ofCL;or50moncurve.Nopartial Buildings demolition AllBuildings Building1 Building2 Building3 Present? WillbeDemolished? Use Res,Bus,Animal,Tool,WC,Other RBATWO RBATWO RBATWO YearBuilt Ownership? Concrete,Sand,Gravel,Wood,Earth, ConstructionFoundation Other CSGWEO CSGWEO CSGWEO ConstructionWall Wood,Brick,Clay,Concrete,Other WBCLCoO WBCLCoO WBCLCoO ConstructionRoof Wood,Tile,Straw,Clay,Slate,Other WTStCSlO FITSO FITSO Floor Wood,Clay,Concrete,Others WClCoO WClCoO WClCoO OverallCondition 0=Uninhabitable>3=Perfect 0123 0123 0123 EstimatedReplacement Cost '000Soum Size Length metres Width metres

Services WaterPipe Y/N Gas Length m m Telecom Y/N AccessRoad Length m m Electricity Y/N Well Length m # Asian Development Bank QuestionnaireID:|R|___|___|___|___|___|

Type/Project/AP# Household Questionnaire Dateofsurvey Location Oblast Rayon Y N Mahalla ReceiveMahallaAssistance? Nameofsurveyor HouseholdName

Household Employment

Relationship Gender Age HighestEducationAttained Personnel Disabled Retired ExtraJob? SelfEmployed Student Unemployed Fulltime Seasonal BusinessOwner 1 Head MF 0123456789101112CUPG 2 MF 0123456789101112CUPG 3 MF 0123456789101112CUPG 4 MF 0123456789101112CUPG 5 MF 0123456789101112CUPG 6 MF 0123456789101112CUPG 7 MF 0123456789101112CUPG 8 MF 0123456789101112CUPG 9 MF 0123456789101112CUPG 10 MF 0123456789101112CUPG 11 MF 0123456789101112CUPG 12 MF 0123456789101112CUPG Ethnicity Uzbek Kazakh Tajik Karakalpak Turkmen Slavic Kyrgyz Other Y N Doyouconsideryourselfpartofaminority?

Doyouconsideryourselfdisadvantagedbecauseofthis?

Howmanyotherhouseholdsinyourminoritydoyouknow?

ProjectImpact Y N NA AftertheGovernmentcompletestheworkdoyouthinkyour householdwillgetbetteraccesstotransportservicesandroads? Y N NA DoesAccesstoimprovedroadsincreasevalueofhousing? Afterworkshavebeencompletedwillyouhavebetter…. Y N NA BusinessOpportunity? Tradeforagriculture? accesstohealthcare? accesstoeducation? accesstoconsumer products?

listinorder1 Howshouldtheroadauthorityinvestinroads? 5 rehabilitateexistingroad Constructnewroad Improvebusesandbusstops Increasepublictransportfrequency improvepublictransportcoverage/routes

Annex B

Results of Census

Annex C

Information Brochure PROJECT INFORMATION BOOKLET CAREC Corridor 2 Road Investment Program

Republican Road Fund, Government of Uzbekistan And funded by the Asian Development Bank

INFORMATION for land owners and users on their entitlements and compensation in land acquisition for public needs

HIGHWAY SECTIONS: Project 2: Km 355 – Km 440 Project 3.1: Km 315 – Km 355 Project 3.2: Turtkul Bypass - Km 581 – Km 628

Revised July 14, 2010

1. General Project Information

1. The Government of Uzbekistan recognizes the importance of Highway A-380. According to the Resolution PP-1103 of the President of the Republic (April 22, 2009), international roads of category 1, have to be adjusted to comply with international standards and norms through construction and reconstruction of four lane roads. This will allow for the growth of traffic volumes, improve efficiency of road transportation, and contribute to employment generation. Overall, this will improve the economy of the local area.

2. The CAREC 2 project is the second in a series of projects to fully upgrade the country’s highway A-380. As such, this project consists of four work packages for the upgrading of Highway A-380 between Bukhara oblast and the Republic of Karakalpakstan:

Project 1 – km440 to km490 Project 2 - km355 to km440 Project 3 - km315 to km355 Project 4 - Turtkul Bypass from km581-km626

3. All road sections within the project will be up-graded from a two-lane asphalt road to a four lane concrete-asphalt highway. In addition a new road will bypass Turtkul, Buston and Biruni. The project is undertaken by the Republic Road Fund (RRF) under the Ministry of Finance and financed in collaboration with Asian Development Bank.

4. Construction work for Project 1 has already begun. Construction work for the project in your area is expected to begin in July 2011 for project 2 and April 2012 for projects 3 and 4. It is envisaged that there will be the need to resume land to enable the road to be constructed. To compensate and/or rehabilitate these losses the provisions of relevant Uzbekistan laws and of the Asian Development Bank (ADB) Policy on Involuntary Resettlement will be adopted. This includes the preparation of a Resettlement Plan (RP) providing data on impacts and affected families and indicating in detail how the impacts will be compensated or rehabilitated. The RP in Uzbek and Russian will be available for perusal to anyone interested both at the Rayon and Oblast Offices of the Road Authority.

5. Every effort will be made to ensure that land acquisition is minimized. The upgrading of the road may however require that some people will lose land and/or structures. The project will ensure that no person will be disadvantaged as a result of road construction and arrangements have been made to ensure that people affected will receive full compensation for any land or buildings affected, together with entitlements for lost income, removal costs (if necessary) and inconvenience.

6. This booklet summarizing the provisions of the RP is given to all the families whose land, trees, crops or other assets and incomes are affected by this project. The objective of this booklet is to inform them of the essential compensation and rehabilitation policy included in the RP and of a number of basic issues relative to how the Compensation and Rehabilitation program for the Project will operate.

This information brochure is prepared in order to help you. 2. Preparatory Actions for Land Acquisition for Public Needs

7. The first step in this procedure is the conduct of field surveys of the land plots to be acquired in order to understand the condition of the land, the real assets (buildings and structures) on it and to define the actual borders and areas of the land plots to be acquired.

8. It is mandatory that the resettlement team interview every affected household in order to clarify the data on the present owner or land user. This is to ensure that all impacts are compensated, irrespective of title. The resettlement team will be handing you this brochure as they begin their work. It is important that you fully and honestly explain all your land and assets, its uses and information about your family. This is so that they can accurately assess the entitlements and compensation due you.

9. The Republic Road fund has declared a cut-off date of 19th July 2010. If anybody encroaches into the project area, begins new activities, or builds structures, they will not be entitled to compensation or any other form of resettlement assistance.

3. Project Timetable

10. Project construction is likely to commence in July 2011 for project 2 and April 2012 for projects 3 and 4. You might see people in the area from April 2011 however, because detailed technical surveys will need to be conducted in order to design the roads. Once the construction contractors know exactly where the route will go, the Resettlement Team of the RRF will come and talk to each person who will have roads crossing their land, and explain the likely things that will happen in more detail. A brief list at present is:

Project 2 Project 3 & 4 Resettlement Team develop Resettlement Plan July 2010 July 2010 Resettlement Team comes to review Resettlement Plan March 2011 March 2011 Resettlement Team comes to pay compensation due June 2011 June 2011 Construction commences July 2011 April 2012 Construction Finishes December 2014 December 2014

4. Principles for Compensation and Rehabilitation

11. Principles for the compensation/rehabilitation of families affected by the Project:

a. The cut-off date for identifying affected lands, families and people is 19 July, 2010 when the resettlement survey was begun and any affected people along the proposed project routes were informed. b. The route of the road will minimize the need for acquisition of houses or agricultural land. c. There will be some permanent acquisition of land and buildings. Identification, compensation and assistance will be provided prior to any construction commencing. d. All affected persons (identified before the cut-off date) will receive compensation, even if they are without title or formal recognition. This includes any temporary residential structures, informal agricultural activities or temporary business use. e. All construction through agricultural land will be timed to minimize any impacts on the income and activities of adjoining land parcels. f. All construction over public right’s of way – footpaths, driveways and roads will be undertaken rapidly and without undue delay to avoid inconvenience to business and residences. g. Detailed seminars and consultations will be available for all affected households to keep them informed of the process. Representatives of affected households will be invited to participate in the Khokimiyat valuation meetings. h. A defined grievance procedure has been established. When a land owner or user does not agree with a decision regarding compensation or change of the ownership or land use (lease), it may not be exercised before the dispute is resolved judicially. In addition, any person who feels that they are in any way worse off can take their grievance to the highest level, at the cost of the project. i. Those people who face significant impacts (>10% of their land being resumed) will receive additional support, assistance and compensation. j. Vulnerable groups, including female-headed households, the poor, disabled, or families with significant numbers of elderly members will receive additional support, assistance and compensation to ensure that they are not severely affected. k. You may use and exercise your rights to a land plot and make necessary expenditures in compliance with its purpose after notification on acquisition for public needs until you agree on the amount of compensation. However, you will not be entitled to additional compensation based on these improvements. l. If after acquisition of a part of your land plot for public needs you cannot use the remaining part of the land for its former purpose, then the whole land plot will be compensated.

5. Compensation Entitlements

12. All families residing in affected areas and holding affected assets or incomes before the eligibility cut-off date for the project 19 July, 2010 (the date of the impact survey) will be entitled to compensation and/or rehabilitation for their losses. This provision includes all owners, Dekhan farmers, sharecroppers, leaseholders and land users as detailed in table 1 below.

13. Valuation of assets will be undertaken by your district Khokim valuation Committee in association with the Republican Road Fund under the Finance Ministry of the Republic of Uzbekistan as Executing Agency.

Type of Loss Specification Affected People Compensation Entitlements Land for land compensation with plots of equal value/productivity, comparable location and services ( or compensation to provide such services) to plots lost with registration and transfer charges if any to Permanent All land losses Farmer/Titleholder be borne by the project; loss of Arable independent of impact or Cash compensation at full replacement Land severity cost

Unaffected portions of a plot will also be compensated if they become unviable after impact occurs. Transfer of lease to other plots of equal value/productivity of plots lost or Leaseholder Cash equivalent to the net income from the (registered or not) land calculated on the basis of the market value of annual production of affected land for the remaining lease years (up to maximum 10 years).

Cash compensation equal to market value Sharecroppers of the lost harvest share once (temporary (registered or not) impact) or twice (permanent impact)

Cash indemnity corresponding to their Agricultural salary in cash and in kind for the remaining workers part of the agricultural year/or contractual losing their contract period.

1 rehabilitation allowance equal to 1 year's Non-titled net income from the affected land (in cultivators addition to lost crop compensation) for land use loss.

Additional 1 severe impact allowance equal to the net provisions for income from annual crop production Farmer/Titleholder severe impacts (inclusive of winter and summer crop in Leaseholder (> 10% of land addition to standing crop compensation) loss) and the waiving of taxes and fees

1 severe impact allowance equal to the net Sharecroppers income from their annual share of harvest (registered or not) lost (additional to standard crop compensation)

Land for land compensation through provision of a plot comparable in value/location to the plot lost including services (or compensation to provide such services) to plots lost with registration Residential/ and transfer charges if any to be borne by Titleholder and Commercial the project; Land or Cash compensation at full replacement cost

Unaffected portions of a plot will also be compensated if they become unviable after impact occurs.

Non-titled owners Provision of a new plot or a plot to lease Cash compensation at replacement rate for Owners affected structure/fixed assets free of Housing and Full/partial loss of (with/without salvageable materials, depreciation and Structures structures house or building transaction costs. Salvageable material will be allowed to be Type of Loss Specification Affected People Compensation Entitlements taken away. For partial impacts, cash compensation at replacement rates to restore remaining structure. Cost of lost/ rehabilitation of water and electricity connections will be registration) included in the compensation.

Unaffected portions of the structure will also be compensated if they become unviable after impact occurs

Compensation of income lost as a result of the loss of the tenancy of houses, buildings and structures plus new lease Tenant/Leaseholder or cash compensation for the remaining period of the lease.

Cash compensation equivalent to the gross income from All APs (including the crop calculated at the market value of the total annual Standing non-titled land produce from affected land. To be paid both to landowners Crops Crops affected owners and tenants based on their specific sharecropping agreements.

Cash compensation shall reflect income replacement.

Fruit trees will be valued at market value multiplied on the number of years until the end of fruiting period; All APs (including Or Trees Trees affected non-titled land in case of granting the land plot ,the owners) compensation of full cost of seedling, cost of preparation of a garden and lost profit at annual income multiplied the number of years till the trees gain fruiting period will be paid

(i) Cash compensation equal to 6 month's income, if loss is Temporary/ permanent; Business/ permanent loss of (ii) cash compensation for the period of business Business Owner Employment business or interruption, if loss is temporary. employment Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area.

Indemnity for lost wages for the period of business Worker/employees interruption (including fixed by oral agreement with employer) up to a maximum of 6 months.

Compensation for lost rent paid in advance plus cash compensation equal to 6 month’s income if loss is permanent. Tenants of affected buildings: Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area.

1 additional allowance equal to 3 months at $35 per family member per month (based on Mahalla economic assistance level) Vulnerable AP: AP Livelihood below poverty line Priority for employment in project-related jobs, training opportunities, self-employment and wage employment assistance Transport Cost / All APs affected by Provision of cash compensation to cover transport Relocation transitional relocation expenses to the new locations. livelihood costs

Additional livelihood expenses for up to three months House owners and when the impacts are severe ( based on documents tenants confirming the income of household members) but no less than 1 minimum salary per member

Community Loss or damage to Rehabilitation/replacement of affected structures/utilities assets Public infrastructure (i.e. mosques, footbridges, roads, schools, health centres, and utilities etc.) to pre-Program level

6. Grievance and Redress Mechanism

14. If you have any questions about the project, you can ask any member of the project team to take your enquiry back to the Rayon Road Authority or the Republican Road Fund in Tashkent, since various team members will be visiting this area off and on throughout the project duration of approximately 2.5 years.

15. The project wants to ensure that you receive full compensation if you are affected by road rehabilitation. If you feel that you have not received full and fair compensation, then you may complain to your local Rayon grievance and redress committee.

16. If you cannot reach a settlement with the Rayon Grievance and redress committee, then you may lodge a complaint to Oblast Khokimiyat via the provincial land acquisition and resettlement committee (PLARC) and get a reply within 15 days.

17. If the Oblast PLARC decision is unacceptable to you, then you may approach the appropriate court of law for a resolution to your dispute. Any costs for representation that you may incur will be borne by the RRF.

Contact Details are below:

Khakimov Furkat, Deputy Mayor. Ramitan district mayor’s office. Tel: 8365 552 12 32 SOME BASIC QUESTIONS RELATED TO THE IMPACTS COMPENSATION AND REHABILITATION PROGRAM FOR THE PROJECT

A. Do you need to have a land use certificate in order to be compensated or rehabilitated for some project impact on your property? No. As long as you were cultivating the affected land before 19 July 2010, a lack of a land use certificate (for instance you are a tenant) will not prevent you from receiving at least rehabilitation assistance in form of crop compensation. If you are a tenant such rehabilitation will have to be shared with the holder of the land-use certificate based on your contract.

B. Does Compensation apply to your house or structures? Yes. New structures will be provided within existing boundaries, or at a new location, or compensation will be paid.

C. What about my crops and trees? Your affected crops and trees will also be compensated at current market value. Compensation for crops will be based on the anticipated harvest at market value, while compensation for trees will be based on the type, age and productivity of each tree affected.

D. Can anybody in my community claim compensation or rehabilitation? No. The entitled affected families are only those who were residing in project affected areas and had affected assets at the time the impacts assessment and the affected people census were carried out (19 – 25 July, 2010). Anybody who encroaches into the area after the cut-off-date will not be entitled to compensation or any other form of resettlement assistance.

E. Do we need to vacate and clear the affected properties immediately after they have been identified as needed by the project? No. Clearing the affected areas will only take place AFTER the compensation or rehabilitation for affected land or other lost assets and the appropriate subsidies have been provided to you. Following this, you will be given 3 months’ notice prior to contractors coming to the site for construction. They will clear the land. You need do nothing further until after construction ceases.

F. If there is any disagreement regarding the way the compensation policy is set up in the RP has been implemented or any other issue relative to the compensation and rehabilitation program for the project do I have the right to complain, and if so how and where? Yes. Any AF may file a complaint or grievance. Complaints may be filed at the district Road Authority offices. The district office is obliged to reply and explain the decision within 15 days from the date the complaint was received. If you are unsatisfied or have no reply from the local office, grievances can then be lodged to the project Resettlement Team via the Oblast Khokimiyat. The Resettlement Team will issue the final decision within 30 days. Finally there will be always final recourse through Uzbekistan’s Republican Supreme Court. However, every effort will be made to avoid this. However, should you as an affected person, want to pursue legal recourse, the Project will ensure that full assistance is given to you to prepare a case.

G. Can I decide on whether I move to another plot of land (like for like) or receive cash compensation? Yes. You can decide what style of compensation to receive. If you wish replacement assets, potential “like for like” land and/or houses will be suggested by the Provincial Land Acquisition and Resettlement Committee (PLARC). You have the ability to choose what you like, or revert to cash. H. If land that I use for cultivating a crop that is not titled (I don’t have legal right) and is within the construction area – what will happen? Your land will be formalised by the Oblast Khokimiyat, and you will still receive compensation in the form of replacement land or cash. A lack of title is not a barrier.

I. Our roadside café and gas station are subject to demolishing. We are losing business and jobs. What compensation shall we receive? You will receive (i) Cash compensation equal to 6 month's income, if loss is permanent; or (ii) cash compensation for the period of business interruption, if loss is temporary. Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area. Your workers and employees will receive lost wages for the period of business interruption (including fixed by oral agreement with employer) up to a maximum of 6 months. Tenants of affected buildings will receive compensation for lost rent paid in advance plus cash compensation equal to 6 month’s income if loss is permanent.

J. We haven’t got documents for roadside land plots where our temporary kiosks (stalls) are located to sell honey and refreshments to passing motorists and commuters. Does it mean that we will not receive any compensation? No. You will receive compensation as if your business was a legal entity.

K. In the case of temporarily affected land, in what condition will lands be returned to land users after civil works and burrow pit arrangement? These lands, irrespective of their ownership (private or public) will be restored to original status at the end of the construction period. Annex D

Community Consultants – Summaries, Minutes, Attendance

! " #"# " ! #" # $ " %

##& '

() (* !

! ++# #

, " () R " .# /" ./" # 0 / .## # R# 1 " #" 2 " 3" " # # "" #"# " . " # 4# 1 "#

5# 11 6

' 5 / . " " # "4#" . # #1 " " "" "

5 1 1 # # 1 "# 6

$%# " # $ !#& ' . 2 7 #" 1 '& " .# .# '8 8 " 4#" #. " ' & #. " " 9. # : 7 " " : "# # ; #" . <

= " # "# 1 6

. 2 #" 1 " .# .#

5 " 1 / #

,1 #1 . 6

'(M >" ? "

*(M #" .

+(M 0 " "

,(M (

,1 # " # . #" 1 . #6

'%- &

Z " 2 5 " "# 4# . Z # " " " """ . # # Z 5 .# M " .# 9 " Z 2 .# .

Z # "2 Z A " # # Z 5 " # . " 1 1 # " "" "1 " 3 .

Z " "" " # " Z > "" Z A "# ! 2 1 .# / .# #

*% ! .&

Z ." "

Z *" 3 #" " " 3 " . " #" . Z 4# Z ."".#

Z , 1 . " 1 1 Z * . 4# ## 4# " " # # .#

Z " # . " " " " "" Z ) # # " " " " #" . Z A "# "" .# ##" " #

/+%0 .&

Z " #" 1.# 2 # . "# 2# 1 Z > " 31 Z " #B Z " #.. 1 # . # Z 1

Z > " 1 .#3 3 " Z " #. " " " # " Z . . "" " Z C #"## Z " 1 " 1 1 # " 1

Z D 1 # 2 # 1 " " # # . * . " . 1 R " " 1 1 2" " " # " #" " # Z # . "" # ." 31 Z " " . " . " # " " " Z A# ## # # . #

Z 5 ""## " " " " .# Z A# " " 1 # # . ! # 2 " # "4#"

1 ,%/. &

Z 2 . Z 5 " # " "E1 9 " "" . )# " Z "#. .# " " " " 9 # " " "" "# " Z ." " 1 # . " " " 1 " Z > 4# .#3 " " #"

Z A " " "# Z * . 9 #"# " " " # "" # 1 1 ." " " #"

Z 5 "" /# Z " Z 5 . #. " 1 " . #. # " . Z " "# #

)# 1.#3 2 . ".# # .# " # " # " . 2 #" # /

" #" 2 1 2 " 1 # 1 "# # " #"# " " " # " #" " 2 .

(

#" ".# " #" .#3 . " 3 4# # " " 3"

#0 .

" #. .#3. .# 1 2 .#3 "" "1 " #" " # #./"" " #" 1 # " #" 31 1 * "" "B # " 1 # #

Uzbekistan: CAREC Corridor 2 Road Investment Program Romitan District August 5, 2010 List of participants In-depth/Structured interviews

Contacts Name Organization/position Signature (phone/address) 1 Tursunova Muhayoy Secretary of Zarafshon Mahalla committee 55-2-26-93 2 Ochilova Nadejda Methodologist at department of culture 55-2-11-58 3 Hotamova Nafisa Secretary of Navoiy Mahalla committee 55-2-22-17 4 Nafasov Otabek Volunteer at Navoiy Mahalla 590-74-98 5 Mavlonov Zohirbek Specialist of national bureau of cadastre of Romitan district 303-10-34 6 Sharipova Umida Secondary school 3 775-08-36 7 Fazilova Elmira Secondary school 3 458-2042 8 Saidmurodova Nilufar Secondary school 3 55-2-31-62 9 Juraeva Sitora Children's polyclinic/nurse 55-2-13-15 10 Bakhadirova Malikabonu Children's polyclinic/nurse 55-2-32-68 11 Atoeva Feruza Children's polyclinic/nurse 55-2-35-81 12 Fatullaeva Zarnigor Children's polyclinic/nurse 55-2-19-68 13 Narzieva Sitora Children's polyclinic/nurse 593-42-12 14 Tojieva Rano Children's polyclinic/nurse 127-37-31 15 Ahrorova Madina Children's polyclinic/nurse 733-91-16 16 Bafoeva Nigina Children's polyclinic/nurse 683-91-88 17 Togaeva Zulfiya Central polylinic/nurse 55-224-33 18 Sohibova Dilorom Central polylinic/nurse 55-2-32-57 19 Kenjaeva Shahodat Central polylinic/nurse 55-215-38 20 Shodieva Shahnoza Central polylinic/nurse 55-2-38-70 21 Savurova Sarvinoz Central polylinic/nurse 778-58-78 22 Safarova Feruza Children's polyclinic/nurse 327-27-77 23 Jamolova Gulbakhor Children's polyclinic/nurse 129-36-59 24 Asrorova Zarnigor Children's polyclinic/nurse 626-56-21 25 Asadova Zukhra Children's polyclinic/nurse ------26 Rasulov Navruz Hokimiyat of district 55-2-13-05 27 Atoev Ulugbek Head of labor union 55-2-12-89 28 Sharipova Nargiza Diagnostics center 55-2-1538 29 Safarova Zebuniso Sanitation and epidemiology center 55-2-25-79 30 Khudoykulova Mokhigul Diagnostics center 450-46-09 Annex E

Legal Summaries 2 $ 3 !4

' 5 # 1 .E ! # . 2 /" E " " 3 /"E " # . # 23 ((

5 # # " " "$ " % " " " $ "" " # " % # $ % # "4# $ % # " # "" " " 1 #" # " # "3 $

*" /" ## # " A " # # 9 "# " "# " " " 8 # #"# 1 " "# "" ! " # " # "# # . #" .1 1 " # 1 # # " "# . " " " " # " R"" *# " "## # " # D # " "2 " " # . " . " & " # $ % 3. 1 " . 1 . " " " # 1 # $ % " 1 "" 4# #$ % " # "" " . $ % # " # . "1 . 7 " " " " 1 " "# 1 6$ % " "# # " . # 1 " . "" #" # " " " "# 2 /" . "# E $ % # "#" " " # E $ % " " #"# "# " 4# : " # . # "# 1 # # 1 . "" # " # . 1 "# " . "" 4# # ; A " # " 4# . "4# # # 1 1 . " # < # " 1 # " ! . . " " 3 ' . " R " # 1 .# 3.# " # '' A " "# "# "# " . /" "" . " # $%# . " A " # " ' " 2"# # /" "# #" /"R" . , /" 1 " # " " # " /" 3 ' " . " " " " # " # ## /" '8 ( #" " " 1 ./" . " . ""# . " # A " #."!#/#.! #15!6389 *83:;3*::<O ##5 ( . >#! P # > R # #. " . " 1 1 . " " " #" ( #. "= " . ( #. " C!. 5 " 76 " #" #.# #"# #./"" :6 " # ! " #$ % # 1 #" " " . ! <6 A " "" " 1 " # " #$ %.# #"# 5" . " # " 1 . 6 " " " # " " 1 $ # %1 # ! 1 " " '6 5" " # # #.# #"# # # . " # " " 2 " 1 "1 " R # 9" " # 5 # R " . " ' 6 " #" #.# #"# $2" # # ! % # 1 " #" 1 # " 1 " " #" " . 1 #.# #"# 9 1 . " "$" % " " # #" #" " " " '6 2 " " . " #" ( #. "= 5 " 1 " -( "#.15!6 '3 -"#! #15!6%*::+&3

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

' '@9 1 1 .#1 # # 1 . "4# 1 ' '88 1 . 1 . " # . " . 1 . 1 # 1 1 . . " # "# 1 " '8 *:< 1 "" 1 " . "4# " ." #" 1 # "" " 1 . 1 4# # . #" " 1 " 1 "4# . . "# " # '& *'* " #" " # 9 1 #" " #"# # #"" "# " 1 .# '7 # # ! .# #. " #" R21 . 1 . 5 1 # # ! .# . " #" . " ! . "# " " . # . " # . " #" 5 1 # # ! .# 1 . " ! #" " " ! +3 "A /.15!6

': #. " 4# # # . # 1 1 9#D #" " . 1 9 # 1 . #5 # " "# "" # "" " 1 # ( OB ! " # #. " " ./" 1 1 " .# P3' 7 ''8'<<&P #" " "# # "## "## # "# #. " C!. $A" C!. * # " " " . B 3'< '7 7 ( I# "'<8 73'&7% '; 5 " 1 " # $ 2 # (OB ! " # #. " " ./" 1 1 " . # P3' 7 ''8'<<&% '< " #. " " ! 1 "4# . 1 1 #"# #" # 1 " # #"# " #" $ "# % "" " :8';7> " . $.# " #" # % # . # " 1 /# " # 1 1 # /" . 5 # " # . ## 1 " # # . > . ) $ # % ' 5* > # "? * $*>?*% 1 . ( $(% # " # 5 *>?* B. 5 *>?* .# " #> $>% "#15!62 $ (->

2 $ 1- 6

+ #. ""# AR "# AR# . 1 B. ? #"# 5 # " "# 2

"1 . 3 * "> 1 . . > " " ! " " " " " 1 # 1 .# 3. #

+3 # 1 " > " # . . . "4# " . "# # " "# # # "" /""E C 1 . C # . " " 4# # "" 1

#9.# .# " "# #9.# 91 " " ""$ #% # > " # . /" # " " # C .# 1 . 9 " /"" " C .# . "

" 1 .# " . # "# ""$ 1 " . "" )# " #% #" " # # 'J . # " " #" ." . " " " " #" . "

5 3 1 1 " . #" 1 " #" 1 # .1 " " " 9 " +" 1 # C 1 . " 1" .

" 1 # ""M A# ." "## E" 9 " " " "" "E # . 2 $ 1- 6

" "> " " ! A# . 1 ""# " " #" " " #" 1 " 1 ""# " #"

5A# ." 9 C 1 " " A) " 1 # " " " ## " !+" " " 1 " "9" . 1# " AR " .1 # /"

D 2 . " # /" "# # B "# # $#" 1 " %1 . . /"1 " ""

"# # . #" 5> ?1 "# .1 AR 4# # " . 1 " C!. > 1 # . # # 1 #

. " " " " " # " R " ""

*# " "## 51 # # " *" "## # #" " "## # # C # ## " " #"# > "# " 4#

AR1 # 5 " " A)1 . "#" +" " " # 1 1 .1 " " " C" " " ? # 2 $ 1- 6

C " " A) " # AR " > . ## # # . # "# " !AR # /"5 1 " " # #

A " # " 4# . " " " C " # " #" # " " 1 ( 1 # 4# . " 1 "AR "

4# 2 " /" " "$K 2 2 4# +?B " %2 .# . 1 . " > /"1 " " (C # 1 . # #" *# (C* # 5 1 # "# > ## # "# ## /"

/" " "$K % + " + #>1 "1 " 1 . /" " 3 " " /" . 1 .

/" " . 1 9" 1 >1 .# # # +> 4# + " 4# 1 #. A) 1 #. A) 1 ""# . " " 1

/" 1 1 /" " +B5 " " " " # " #>. "# # " " 2 $ 1- 6

( #" " + A > "# " #

A) " 1 AR1 .#./" C 9# 1 $ % " " " AR" ." # # /" > " " /"1 . .# #? " " #

> 1 " > >1 # AR1 .#./" . # " . # " $ # % # # 1" /" > " A A AR 1 # , # 1 #

#."!#/#.! #15!6389 *83:;3*::<O ##5 ( . >#! P # > R # #. " . " 1 1 . " " " #" ( #. "= " . ( #. " C!. 5 " 76 " #" #.# #"# #./"" :6 " # ! " #$ % # 1 #" " " . ! <6 A " "" " 1 " # " #$ %.# #"# 5" . " # " 1 . 6 " " " # " " 1 $ # %1 # ! 1 " " '6 5" " # # #.# #"# # # . " # " " 2 " 1 "1 " R # 9" " # 5 # R " . " ' 6 " #" #.# #"# $2" # # ! % # 1 " #" 1 # " 1 " " #" " . 1 #.# #"# 9 1 . " "$" % " " # #" #" " " " '6 2 " " . " #" ( #. "= 5 " 1 " Relevant Legal Codes of the Uzbekistan

1. Land Code of Republic of Uzbekistan (2003).

1. According to the Article 16 of the Land Code of the Republic of Uzbekistan, land is a state property, and considered to be national wealth and protected by the state.

2. Article 17 provides rights of legal entities and individuals for land plots on the basis of constant possession, constant and temporary use, lease and property.

3. Article 23 regulates the assignment of the land plots. Assignment (realization) of land plots is only made after the specific issuance of a legislative order by the Cabinet of Ministers, provincial, Tashkent, districts and cities hokimiyats via a recognized legislative order.

4. Lands which are not suitable for agricultural purposes or are of low-quality are assigned for construction of industrial enterprises, housing projects, railway, automobile, water and air transport, electric transmission lines, communications and pipelines and for other nonagricultural purposes.

5. It is forbidden to take possession of or use the given (realized) land plots before appropriate the land surveying authority has defined the plot borders and issued documents identifying rights for this plot.

6. Article 35 establishes that the right of entities and individuals for land plots is subject to state registration by local authority and that the appropriate documentation must to be completed within 10 days of the appropriate documents being submitted.

7. Article 37 defines conditions for reclaiming/acquiring land for public needs. Such land acquisition should be carried out with the agreement of landowners or with the concurrence of land user and lease holder after consultation with the district or province hokim or CoM. In case of disagreement with landowner, landuser and leaseholder, the decision can be appealed in court.

8. Article 41 ensures the rights for land plots and establishes, that removed rights of land owners, landusers, leaseholders and owners of land plots are subject to reinstating in legislative order. Losses caused by the infringement of rights of landowners, landusers, leaseholders and owners of plots (including lost profits) are subject to full compensation. Compensation for land acquisition for state and public needs is regulated by Article 86.

9. Article 80 defines environmental requirements regarding location, design, construction and operation of objects, buildings and constructions with reference to environmental protection legislation. Where new construction or rehabilitation and/or the introduction of new technologies have a negative impact on the condition of land, land protection activities shall be provided and carried out (as defined by reputable environmental experts). The construction/rehabilitation of buildings or the introduction of new technologies without appropriate environmental safeguards is forbidden.

10. Article 86 defines procedures of compensation to landowners, landusers, leaseholders and owners of plots. Landowners, landusers, leaseholders and owners of plots will be compensated in full (including lost profits) where there is: acquisition, reclamation or temporary occupation of lands; Limitation of land use rights in connection with assignment of conservation, sanitary and protection zones around state reservations, wildlife preserves, national recreation areas, natural monuments, cultural-historical monuments, water reservoirs, water supply sources, resorts, along rivers, canals, water escapes, roads, transmission lines, communication and electrical lines; Deterioration of lands caused by construction and operation of reservoirs, canals, ponds and other objects; the emittance of harmful or noxious substances by legal entities or individuals which cause crop damage and/or decreases in crop yields.

Compensation allocated under such circumstances will be paid by the offending enterprises, organizations and agencies, to the owners/users that use the affected plots.

11. Article 91 provides for the requisition of illegally occupied lands. State acquisition of such lands will be done without compensation and the cost of returning the land to its original condition will be borne by the occupier. Such reclamation will be conducted after agreement between the occupiers and the local authority or under a court order.

2. Civil Code (1996/1997).

12. Article 187 states that a person who is not the owner of property but who has in good faith, openly, and uninterruptedly possessed as his own immovable property for fifteen years shall acquire ownership of this property.

13. Article 199 states that the alienation of property from an owner shall only be allowed by the procedure provided by legislative acts. If property is possessed by a person who is prohibited from owning this property under law, the right of ownership for this property shall be terminated by the procedure of a court with compensation.

14. Article 206 states that termination of the right of ownership in connection with a decision of state body to acquire land and chattels shall only be conducted with due accord to the appropriate legislative acts and the owner shall be provided with property of equal value or be given full compensation for lost assets. In case of disagreement with a decision entailing termination of the right of ownership, acquisition shall not be made before a court decision on the dispute.

15. Article 212 pertains to illegal construction on land not allocated for this purpose and/or without the necessary permits. Anyone erecting structures under such circumstances does not have the right of ownership nor the right to dispose of the building.

16. An unauthorized building must be demolished at the constructor’s expense following a legal petition by a person whose rights have been violated. The right of ownership to an unauthorized building on land not belonging to the constructor may be recognized by a court on the condition that the given parcel shall be granted to this person under established procedures for both the land and the construction. The right of ownership to an unauthorized building will not be recognized if the granting of such rights violates the rights and interests of other persons or creates a threat to the life and health of citizens.

3. Compensation Valuation Methods in Uzbekistan

17. If the land is alienated for public needs, land of equal value should be provided to individuals who have right of ownership/use. Where such land allocation is not possible, the land owner/land user will be paid the value of the plot. The value of land plots is calculated according to market value in accordance with Resolution of the CoM “On realization procedure to private property of trade and public services objects along with land plots, where they are located and land plots in lifelong inheritable tenure” 126 from 11.04.1995” and temporal instruction of calculation of normative value of agricultural lands of agricultural manufactures in the Republic of Uzbekistan (Decree of the Chairman of Uzbekistan State Committee for land resources, geodesy, cartography and state cadastre, approved by the Order of Chairman of the Committee 19 from 16.02.2006 and registered in Ministry of Justice on 19.04.2006 1563).

18. These acts allow for cost estimation of prevailing market values (appendix 3 to the Resolution of CoM “On realization procedure to private property of trade and public services objects along with land plots, where they are located and land plots in lifelong inheritable tenure” 126 from 11.04.1995).

19. In cases of land alienation for state and public needs, enterprises, agencies and organizations whose the land is acquired shall be provided with the new structures for living, production and other purposes on new lands in compensation for impounded structures and shall receive full compensation for all other losses (including lost profit), according to article 37, 41, 86 of the Land Code.

20. Cost estimation of compensation for immovable property (buildings, constructions, perennial and annual planting) is undertaken by the valuation committee of hokimiyat, with all juridical and individual persons whose property was alienated during Project implementation being involved. The amount of compensation should be mutually agreed with all effected persons and households. Information on land and asset values is provided by the Rayon Land and Cadastre Committee and is based on Bonitet (formula for determining soil fertility).

21. The State Committee on Land Resources, Geodesy, Cartography and State Cadastre (SCLRGCSC) is, with the Cabinet of Ministers (CM), the main unit for the implementation of the land code and related resolutions. The SCLRGCSC has departments at Oblast and Rayon level. The rayon departments of the SCLRGCSC play a main role in the attribution of farm land to farmers and farm cooperatives through the Land and Resettlement Committees (LARC). Annex F

Additional map (Google map with DPs on)

Resettlement Planning Document Project 3.1: Km 315 – Km 355

Project Number: TA 7375-UZB

October 2010 ver.4a

UZBEKISTAN: CAREC Corridor 2 Road Investment Program

Prepared by the Uzbekistan Republican Road Fund under the Ministry of Finance of Uzbekistan for the Asian Development Bank (ADB).

TABLE OF CONTENTS

I. Executive Summary ...... 1 A. Project Scope ...... 1 B. Summary of Impacts...... 1 C. Entitlements ...... 2 II. Project Description ...... 4 A. General Description ...... 4 B. Description of Project 3.1 - A380 Highway between Km315 and Km355 ...... 5 C. Alternatives Considered ...... 6 III. Scope of Land Acquisition and Resettlement ...... 7 A. Potential Impacts ...... 7 B. Scope of Land Acquisition and Resettlement ...... 8 C. Summary of Key Impacts ...... 9 IV. Socioeconomic Information and Profile ...... 11 A. Poverty and Socio-Economic Assessment (PSA) ...... 11 B. Project Census ...... 12 C. Gender and Ethnic Minority Issues ...... 13 V. Information Disclosure, Consultation, and Participation ...... 14 A. Project Stakeholders ...... 14 B. Information and Consultation Mechanisms ...... 14 C. LARP Preparation ...... 15 D. Summary of Project Consultations...... 16 E. Further Information Disclosure ...... 17 VI. Grievance Redress Mechanisms ...... 18 A. General Principles ...... 18 B. Grievance Coordination ...... 18 C. Grievance Procedures ...... 18 VII. Legal Framework ...... 20 A. Relevant Provisions for Involuntary Resettlement in Uzbekistan ...... 20 B. ADB’s Policy on Involuntary Resettlement ...... 21 C. Comparison of Uzbek and ADB IR Laws, Regulations and Procedures ...... 22 D. Actions Made to Address the Gaps ...... 23 E. Principles and Policies for the Project ...... 23 VIII. Entitlements, Assistance and Benefits ...... 25 A. Entitlements to Compensation ...... 25 B. Formalization of Title/Registration ...... 25 C. Calculation of Compensation ...... 25 D. The Valuation Process ...... 29 E. Entitlements Matrix ...... 30

IKS GROUP OF COMPANIES i TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IX. Relocation of Housing and Settlements ...... 31 X. Income Restoration and Rehabilitation ...... 32 A. Special Assistance to Vulnerable Groups ...... 32 B. Opportunities to derive development benefits ...... 32 C. Other costs ...... 33 XI. Resettlement Budget and Financing Plan ...... 34 A. Responsibilities ...... 34 B. Budget Summary...... 34 XII. Institutional Arrangements ...... 36 A. Republican Road Fund (Road Fund) – PMU ...... 36 B. Design Institute (DI)...... 36 C. Regional and District SCLRGCSC ...... 36 D. Province/District Governments ...... 37 A. Pre-Resettlement Activities...... 39 B. Implementation Phase ...... 40 C. Post Resettlement Implementation Phase ...... 40 XIV. Monitoring and Reporting ...... 42 A. Internal Monitoring ...... 42 B. External Monitoring ...... 43

Tables

Table 1: Summary of Impacts – Project 3.1...... 2 Table 2: LAR Entitlement Summary ('000 Sum) ...... 3 Table 3: Summary of Impacts – Project 3.1...... 10 Table 4: Socio-Economic Data - Project 3.1 ...... 13 Table 5: Summary of Grievance Procedure ...... 19 Table 6: Land Required for Project 3.1...... 26 Table 7 : Land Preparation Costs – Project 3.1 ...... 26 Table 8: Business and Worker Compensation ('000 Sum) ...... 27 Table 9: Structure Unit Costs ('000Sum/m2) ...... 27 Table 11: Trees and Garden Compensation ('000 Sum) ...... 28 Table 12: Community Asset Costs ...... 29 Table 13: Entitlement Matrix for Project 3.1 ...... 30 Table 14: Compensation for Vulnerable groups ('000 Sum) ...... 32 Table 15 : Other Costs (‘000 Sum) ...... 33 Table 16: LAR Entitlement Summary ('000 Sum) ...... 35

IKS GROUP OF COMPANIES ii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Annexes A Census and Socio Economic Survey B Results of Census C Information Brochure D Community Consultations - Summaries, Minutes, Attendance E Legal Summaries F Additional maps (Gazli city bypass scheme and google map with DPs on)

IKS GROUP OF COMPANIES iii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ABBREVIATIONS AB Affected Business AC Asphaltic Concrete ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome APs Affected Persons CAREC Central Asia Regional Economic Cooperation CoM Council of Ministers CSS Country Safeguard System D/PLARC District/Provincial Land Acquisition and Resettlement Commission DI Design Institute DP Displaced Person EA Executing Agency EMA External Monitoring Agency EMP Ethnic Minority Plan (See IPP) FGD Focus Group Discussions GAP Gender Action Plan GFP Grievance Focal Point GRC Grievance Redress Committee Ha Hectares HH Households HIV Human Immunodeficiency Virus IA Implementing Agency IMA Internal Monitoring Agency IPP Indigenous Peoples Plan ISA Initial Social Assessment Km Kilometre LAR Land Acquisition and Resettlement LC Land Code MFF Multi-Tranche Financing Facility PMU Project Management Unit PSA Poverty & Socio-Economic Assessment RP Resettlement Plan RRF / RF Republican Road Fund under Ministry of Finance of Uzbekistan RU Republic of Uzbekistan SES Socio-Economic Survey SPS Safeguard Policy Statement SRP Short Resettlement Plan TA Technical Assistance USD United States Dollar Uzbekistan Republic of Uzbekistan

IKS GROUP OF COMPANIES iv TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

CURRENCY EQUIVALENTS

(at 31 August, 2010) Currency Unit – sum (SUM) SUM1.00 = $0.00065 $1.00 = SUM1,613

NOTE

In this report, i. "$" refers to United States dollars (USD) ii. Sum refers to Uzbekistan Sum

IKS GROUP OF COMPANIES v TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Compensation means payment in cash or kind for an asset to be acquired or affected by a project at replacement cost at current market value. means the date after which people will NOT be considered eligible for compensation i.e. they Cut-off-date are not included in the list of APs as defined by the census. Normally, the cut-off date is the date of the detailed measurement survey. Sometimes referred to as Affected Persons (APs). In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, Displaced or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, Persons 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. Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of Economic (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to Displacement legally designated parks and protected areas.

mean those people who move into the project area after the cut-off date and are therefore not Encroachers eligible for compensation or other rehabilitation measures provided by the project. means the range of measures comprising cash or kind compensation, relocation cost, Entitlement income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration which are due to APs, depending on the type and degree nature of their losses, to restore their social and economic base. Inventory of means the pre-appraisal inventory of assets as a preliminary record of affected or lost assets. losses

Land means the process whereby a person is compelled by a public agency to alienate all or part of acquisition the land s/he owns or possesses, to the ownership and possession of that agency, for public purposes, in return for fair compensation. A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is Meaningful undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and Consultation responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. means those who have no recognizable rights or claims to the land that they are occupying Non-titled and includes people using private or state land without permission, permit or grant i.e. those people without legal title to land and/or structures occupied or used by them. ADB’s policy explicitly states that such people cannot be denied compensation. Official government statistics for share of people living under poverty line is not available. The method used to determine poverty, was based on the World Bank's under 2.15 $ per person Poor per month measure. This figure was calculated with respect to climate conditions and other set of factors. The local equivalent was calculated based on the official exchange rate.

Physical Relocation, loss of residential land, or loss of shelter as a result of (i)involuntary acquisition of Displacement land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Replacement means the method of valuing assets to replace the loss at current market value, or its nearest cost equivalent, and is the amount of cash or kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged.

Significant means 200 people or more will experience major impacts, which are defined as; (i) being physically displaced from housing, or (ii) losing ten per cent or more of their productive assets impact (income generating). means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and includes; (i) female-headed households with dependents; Vulnerable (ii) disabled household heads; (iii) poor households (within the meaning given previously); (iv) landless; (v) elderly households with no means of support; (vi) households without security of tenure; (vii) ethnic minorities; and (viii) marginal farmers (with landholdings of five acres or less).

IKS GROUP OF COMPANIES vi TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

MAP 1. SHOWING THE LOCATION OF THE PORJECT 3.1 WITHIN THE WHOLE CAREC 2 PROJECT

IKS GROUP OF COMPANIES vii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

I. EXECUTIVE SUMMARY

1. This Land and Resettlement Plan (LARP) has been developed by the Republican Road Fund for Project 3.1 of the Uzbekistan CAREC 2 Road Project. It follows the format, and includes the required information, as specified in the ADB Safeguard Policy Statement, 2009. It is based on surveys carried out in July and August 2010 under the PPTA.

(i) Contract awards for Civil Works construction will be approved only after the RP has been reviewed and confirmed/amended following final detailed design.

A. Project Scope

4. Project 3.1 comprises the re-construction and widening of the existing A380 (a 2 lane asphaltic concrete (AC) road section) between KM315 and Km355 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 3.1 within the overall CAREC 2 Project.

B. Summary of Impacts

6. There are 14 separate affected households. 12 have identifiable ownership (the land users could be interviewed or identified). 2 have been considered abandoned.

7. Seven (7) households, comprising 41 people, will be severely impacted. Two (2) households, comprising 11 people, will lose their residences (which are part of the business premises). A further 5 households (30 people) will lose their main income producing business premises.

IKS GROUP OF COMPANIES 1 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1: Summary of Impacts – Project 3.1 Affected Structures Displaced Persons Land Workers Households Lost Physically Economic KM ID Total Lost % m2 MFMF Corrals --- -14- - 322.6 R13226 0.21 0.06 29% - - - 4 2 323.1 R13231 0.41 0.2 49% 3 740 18 4 2 323.2 R13232 0.27 0.21 78% 2 204 3 2 1 323.5 R13233 0.32 0.32 100% 2 250 32 323.6 R13234 0.16 0.16 100% 1 70 3 4 2 323.7 R13235 0.1 0.1 100% 1 130 - 323.7 R13236 0.06 0.06 100% 1 24 - 325.1 R13251 0.55 0.53 96% 7 955 7 3 2 325.3 R13252 0.68 0.38 56% 2 224 15 2 3 325.3 R13253 0.1 0.1 100% 3 190 3 2 5 325.4 R13254 0.6 0.5 83% 2 480 7 5 2 345.0 R13412 0.6 0.4 67% - - - 62 352.0 R13522 1.1 0.5 45% 1 50 - 3 4 352.0 R13521 0.33 0.33 100% 2 160 -22

Totals 14 5.49 3.85 70% 40 3332 60 13 9 27 20

= Severely Impacted

C. Entitlements

8. The complete budget for LAR activities on Project 3.2 is shown in Table 2. It indicates a total budget of 921,112,000 Sum or US$571,055.

IKS GROUP OF COMPANIES 2 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 2: LAR Entitlement Summary ('000 Sum) ‘000 Sum US$ Land Preparation Costs* 248,000 154,000

Compensation Business Loss 37,200 23,063 Worker Compensation 52,320 32,436 Structural Loss 623,459 386,521 Agricultural Production 43,643 27,057 Community Assets (Utilities etc)** 3,446,000 2,136,398

Support for Vulnerable Households Livelihood Allowance 7,113 4,410 Relocation Allowance 1,120 694

Other Costs Community Education 4,000 2,480 Resettlement Consultant PMU*** 33,873 21,000 Resettlement Consultant – Supervision*** 33,873 21,000 External Monitor 64,520 40,000 Mahalla Committees 4,000 2,480

Sub- Total 837,375 519,141

Contingency (10%) 83,737 51,914

TOTAL 921,112 571,055 *Land preparation cost will be covered by Social Infrastructure Development program of the district mayor’s office. **Community Assets (utilities etc) cost have already been included into the cost of the road. ***Costs will be covered by the Procurement and Safeguard consultants’ package of the project which’s been already identified.

IKS GROUP OF COMPANIES 3 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

II. PROJECT DESCRIPTION

9. This section provides a general description of the project, its components and the alternatives considered to avoid or minimize resettlement.

A. General Description

1. Background

10. Uzbekistan is a key transit point for Central Asian countries looking to trade among themselves, as well as with the rest of Asia and Europe. Central Asia Regional Economic Cooperation (CAREC) has a strategy and action plan to develop six transport corridors, which will improve connectivity and cut transport costs.1

11. The proposed investment program targets the Uzbekistan section of CAREC Corridor 2 - the A380 highway, which connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. Another highway investment now under preparation in Kazakhstan (supported by the Asian Development Bank [ADB]) will connect Beyneu (a town on the border with Uzbekistan) with Uzbekistan’s A380 highway and the port of Aktau in the Caspian Sea. The two highways, when completed, will provide Uzbekistan and other Central Asian countries direct access to the Caspian Sea, and thereafter to South Asia and the Black Sea (via road corridors being built in Armenia, Azerbaijan, and Georgia). The investment program has strong links to CAREC Corridor 6, which reaches the so-called RingRoad in Afghanistan and thereafter the main ports in Pakistan and Iran.

12. Railways used to dominate the freight market in the region, but their market share has fallen from 90% in 1997 to 57% in 2009. Increased motorization, a greater number of private road hauling companies, and shorter transport hauls of manufactured goods have lifted road freight traffic. A road sector strategy and road map is in place, which prioritizes the 1,200 km A380 highway. The adjoining road in Kazakhstan (between Beyneu and Aktau) will add impetus to regional connectivity and increase the viability of the investment program road.

13. A National Road Development Program for 2009–20142has been prepared. It is consistent with the sector strategy and road map and is estimated to cost $2.6 billion - of which $1.6 billion is directed at the A380 highway. The investment program will contribute to this program. Other investments cover rural and urban roads. The investment involves mainly the reconstruction of existing networks, although some green field projects are also envisaged.

14. The proposed investment program will have an impact on sustainable economic development. The outcome will be better transport connectivity and efficiency, and institutional effectiveness.

2. The Uzbekistan CAREC 2 Project

15. The Uzbekistan CAREC 2 project will comprise approximately 222 km reconstructed road section of the A380 highway, and improved planning, project management, logistics, road asset management, and community facilities. The relevant A380 sections are located in

1ADB 2008. CAREC Transport and Trade Facilitation Strategy and Action Plan. Manila. 2Resolution of the President of the Republic of Uzbekistan PP-1103 dated 22 April 2009.

IKS GROUP OF COMPANIES 4 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Bukhara, Khorezm Provinces and the Autonomous Republic of Karakapakalstan. The project is financed through ADB’s Multi-tranche Financing Facility (MFF) with 3 tranches being applied for the Investment Program. The first tranche (Project 1) commenced in 2010, with subsequent tranches to follow as they are prepared. The Executing Agency (EA) for the Project is the Republican Road Fund (RRF) under the Ministry of Finance.

16. The investment is split into three separate projects.3

17. Project 1 consists of approximately 50 km reconstructed section of the A380 highway (between Km440 and Km490). This section does not involve land acquisition or involuntary resettlement, nor lead to significant environmental impacts. The investment will convert the existing road section into a four-lane international design road within the existing right-of-way. This project also includes road sector sustainability, community development and road asset management activities. Project 1 is currently under implementation.

18. Project 2 comprises approximately 85 km reconstructed section of the A380 highway (between Km355 and Km440) and procured road construction and maintenance equipment.

19. Project 3 comprises 2 sections – the first is approximately 40 km reconstructed road section of the A380 highway between Km315 and Km355. The second section is the construction of 47 km of a new alignment between Km581 and Km628 bypassing the towns of Turtkul, Beruniy and Buston. The project will also strengthen logistics by improving cross- border facilities and shortening the cross-border processing time. This project will also expand the community development program and institutional capacity.

20. This document relates to the land and resettlement preparation activities for Project 3.1–the reconstruction of the A380 Highway between Km315 and Km355.

B. Description of Project 3.1 - A380 Highway between Km315 and Km355

21. Project 3.1 comprises the reconstruction of the current 2 lane asphaltic concrete (AC) road section between KM315 and Km355 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 3.1 within the overall CAREC 2 Project.

22. Instructions from the Road Design Institute (DI) indicate that the road pavement and shoulder will be 14m wide for each carriageway. The majority of the dual carriageway will also comprise an easement of 7m along each side of the road. Specific section drawings provided by the DI (such as in turning areas and curves) allow for a 50m easement.

23. The proposed highway generally follows the existing A380 alignment, which is serviced by a small number of cafes, shops, garages, auto and tyre repair facilities and provincial road control posts. The newly proposed carriageway is sometimes aligned to north, and sometimes south of the existing based on a number of overall design criteria (see “Alternatives Considered”). There will be a new alignment bypassing to the north, the current highway café’s in Gazli (between Km321 and 323).

3ADB, 2010.Report & Recommendation to the President - Proposed Multi-tranche Financing Facility, Republic of Uzbekistan: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program

IKS GROUP OF COMPANIES 5 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Alternatives Considered

24. The DI has designed the proposed highway within the constraints of several criteria.

25. International Standards - According to the Resolution PP-1103 of the President of the Republic (April 22, 2009), international roads of category 1, have to be adjusted to comply with international standards and norms through construction and reconstruction of four lane roads. Additionally, all curves have to comprise a minimum 3000m radius to reduce cornering forces.

26. International Gas Pipeline – The existing Uzbekistan international gas pipeline corridor generally follows the existing A380. It is a significant high-value asset. The new road alignment avoids the easement ensuring that it minimizes any expense or complications that may be encountered.

27. Other Key Infrastructure – The proposed road design tries to avoid all significant telecom, water, electricity, check-point and cell-phone infrastructure where possible. Where this has been impossible to avoid, plans are in-place for all assets to be restored to before- project status during construction.

28. Existing Businesses and Households –Where possible, businesses, households and temporary structures have been avoided in the designs provided by the DI. This follows existing Uzbekistan Law that requires the minimization of all impacts. Given the significant criteria that the DI has to consider already – pavement, corner radius, gas pipeline etc – some impacts on private assets have been unavoidable. These will be the subject of this Land and Resettlement Plan (LARP).

IKS GROUP OF COMPANIES 6 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

29. This section discusses the projects potential impacts, the scope of land acquisition and summarizes the key effects in terms of assets acquired and displaced persons.

A. Potential Impacts

30. The widening of the existing road corridor to accommodate a grade/barrier-separated dual carriageway will result in a small number of impacts on existing private assets. Furthermore, the addition of wider sections to accommodate slow down lanes for u-turns and entry/exit of joining roads has been designed at existing road junctions – where often there are already cafes and shops. Nonetheless, impacts have been minimized.

31. The census of impacts was undertaken over the period 19th-25th July, 2010 – following the project cut-off date of 19th July. Impacts were assessed based on drawings provided by the Design Institute. Road corridor widths were indicated in pen on the supplied drawings and confirmed by the RRF following a letter from the appraisal consultants on 10th July. This indicated that all corridor widths were to comprise a 28m road (pavement, verge and embankment) and an impact area of a further 7m on either side.

32. Apart from the private land that is to be acquired, there are a few other impacts to be considered.

1. Abandoned Structures

33. There is 1 structure that appears abandoned. All efforts to establish a title, owner or conduct an interview were unsuccessful. It is located on the south side of the road at Km323.6. It appears to be an old house / magasin and is extremely dilapidated, missing windows and roofing. It will be completely demolished by the project. It’s replacement cost has been included in the total costing, in the case that the subsequent LARP update (or cadastral office) is able to locate an owner.

2. Non-Operational Structures/Businesses

34. There are 3 structures that are dilapidated, non-operating, former businesses. They appeared abandoned at first visit, but subsequent research has indicated that they still have a title and an owner. They consist of the following:

Km323.5 - South Side (R13233) Abandoned Café. Will be completely removed. Km323.7 - North Side (R13235) Abandoned auto repair and service center. Not operational. Will lose all structures and land. Km352.0 – South Side (R13521) Non-operating Gas Station. It will lose all land and structures.

35. Apart from the Gas Station (km352) the structures are extremely dilapidated - missing windows and roofing. They appear to be occasionally used as refuges by herders and itinerant workers in the area but the owners (if any) and squatters were unable to be interviewed. The cost of replacing the structures has been included in the total costing, in the case that the subsequent LARP update (or cadastral office) is able to locate an owner. Business turnover, and social impacts / economic displacement was considered to be zero.

IKS GROUP OF COMPANIES 7 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

3. Animal Corrals

36. A small number of animal corrals were located in the path of the new alignment to the north of Gazli.

37. At Km 322.6 - Eight corrals will be impacted. At Km 323.3 there are a further six corrals set back and parallel to existing road. They are all temporary structures, with no title. They will be moved to a nearby area, away from the new alignment, by the contractor as part of the construction. Allowances will be paid for relocation.

4. Herders

38. Two or three herders were observed along the corridor during the initial project reconnaissance. They had moved / been removed prior to the census period. It is not expected that construction will have major impacts on their grazing lands – as these consist of the vast desert hinterland.

39. Some herders have temporary shelters near to the road or use existing abandoned structures. When available, herders were questioned regarding impacts to their activities and livelihood. They were concerned about their ability to move animals across the corridor and access to the highway for transport to town; these have been summarized in the consultation section, and addressed in the LARP recommendations.

5. Bus Shelters

40. There are at least 3 bus shelters that will be demolished during project construction. These fall within the scope of public assets (such as power and telecom lines) and will be replaced during construction. Water provision for grazers and emergency use was raised during consultations and impact assessment, and measures to address this issue are contained in the LARP recommendations. The provision of additional bus / emergency shelters is included in the community development and gender action plans.

6. Temporary Structures - Business

41. At least 3 businesses have transportable sheds within the proposed alignment through Gazli. These will be relocated to within the titled boundaries of the businesses during project construction by the contractor. These businesses have not been assessed as DP’s.

B. Scope of Land Acquisition and Resettlement

42. The Project will generally follow the existing right-of-way. Hence, land acquisition is relatively minimal. However, a total of 3.85Ha of land needs to be acquired permanently (including that of the abandoned and non-operating entities). There are 10 separate business entities that will be demolished during construction or will have substantial impacts. Four businesses are also the homes of the owners (indicated in the text below). During construction, additional land may be used temporarily for camps and borrow pits, however the Design Institute indicates that this land is desert and without any title.

43. The displaced entities, indicating their location and id/survey number, are:

Km322.6 – (R13226) - South Side – Auto repair shop. Losing 600m2 of land only. No structural loss. Owner and family also reside in this structure. Km323.1 - (R13231) - North Side Substantial Café. All structures and gardens to be removed. Losing 50% of land. Owner and family also reside in this structure.

IKS GROUP OF COMPANIES 8 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Km323.2 - (R13232) North Side - An Auto Repair shop. All structures to be removed. Losing 78% of its land. Km323.6 - (R13234) South Side - Truck Repair. All land and structures will be lost. Km325.1- (R13251) North Side - Substantial Café, Garden, Auto repair with garage, glasshouses and gardens. All land and assets will be completely removed. Owner and family also reside in this structure. Km325.3 - (R13252) North Side - Café & Garden with auto area, accommodation and toilet. Garden and auto area only will be affected. Owner and family also reside in this structure. Owner has indicated that he would prefer to keep cafe structure, and obtain more land to the side and rear in exchange for the .38Ha lost. Km325.3 - (R13253) South side - Auto Repair facility. Operational, with accommodation, pits and service centre. Will lose 100% of structures and land.. Km325.4 - (R13254) North side - Gas Station and Café in good condition. Corridor will remove gas station building, café and gardens, in addition to 83% of the land title. Km345.0 – (R13412) North Side – Substantial café – Appeared abandoned on first visit. Only gardens and parking area will be removed; structures will remain. Auto ramp on south side of road will also go. Km352.0 – (R13522) - North Side – Substantial café with gardens, and auto repair pit. Gardens and structures will be completely removed. Will lose 45% of existing land. C. Summary of Key Impacts

44. Table 3 shows a summary of the key assets that will be acquired and displaced persons. The table shows those entities where families are resident (and will be physically displaced) and where families reside elsewhere in Gazli or Bukhara (and will be economically displaced).

45. Apart from the 14 corral owners, there are 14 separate affected households. 12 have identifiable ownership (the land users could be interviewed or identified). 2 have been considered abandoned.

46. Seven (7) households, comprising 41 people, will be severely impacted. Two (2) households, comprising 11 people, will lose their residences (which are part of the business premises). A further 5 households (30 people) will lose their main income producing business premises.

IKS GROUP OF COMPANIES 9 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 3: Summary of Impacts – Project 3.1 Affected Structures Displaced Persons Land Workers Households Lost Physically Economic KM ID Total Lost % m2 MFMF Corrals -- --14-- 322.6 R13221 0.21 0.06 29% - - - 4 2 323.1 R13231 0.41 0.2 49% 3 740 18 4 2 323.2 R13232 0.27 0.21 78% 2 204 3 2 1 323.5 R13233 0.32 0.32 100% 3 250 32 323.6 R13234 0.16 0.16 100% 1 70 3 4 2 323.7 R13235 0.1 0.1 100% 1 130 - 323.7 R13236 0.06 0.06 100% 1 24 - 325.1 R13251 0.55 0.53 96% 7 955 7 3 2 325.3 R13252 0.68 0.38 56% 2 224 15 2 3 325.3 R13253 0.1 0.1 100% 3 190 3 2 5 325.4 R13254 0.6 0.5 83% 2 480 7 5 2 345.0 R13412 0.6 0.4 67% - - - 62 352.0 R13522 1.1 0.5 45% 1 50 - 3 4 352.0 R13521 0.33 0.33 100% 2 160 - 22 Totals 14 5.49 3.85 70% 40 3332 60 13 9 27 20

= Severely Impacted

IKS GROUP OF COMPANIES 10 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IV. SOCIOECONOMIC INFORMATION AND PROFILE

47. This section outlines the results of the social impact assessment and the household survey conducted during the DP census.

A. Poverty and Socio-Economic Assessment (PSA)

48. Project 3.1 is wholly with Romitan District in Bukhara Province. Few people live along this section of the A380, and mainly comprise café/shop owners and their families, some employees, Government check point staff and nomadic herders. The road is used by these people for access to hospital, emergency and service facilities in Gazli and Bukhara. In addition many café/shop owners reside in Bukhara or nearby Gazli.

50. Given that the LARP census would survey a significant number of the population immediately adjacent to the road section (the remaining population is difficult to access), the social and economic survey was undertaken in Gazli town and Bukhara. The survey was administered to a statistically significant number of the base population. The impact survey section was also conducted on road users (bus, truck, taxi’s and private vehicles). The results are outlined in the Project Poverty and Socio-Economic Assessment (PSA).

51. The project area is contained within Romitan District, of Bukhara Province. Bukhara province is located in the west of the central part of Uzbekistan. About 70% of the population lives in the countryside and 30% live in cities. Romitan consists of 1,300 km2 divided into 38 mahallas. The key feeder town for the project is Gazli.

54. Healthcare – Gazli has 1 hospital with 40 beds. There is also one Polyclinic for adults and children with the capacity to serve 100 people a day. There are few private pharmacies in the town. In case of serious diseases, people attend the central regional hospital or specialized hospitals in Bukhara. Survey respondents indicated that the proposed road upgrade will assist in improved and rapid connection for people in the remote areas of Romitan to access the health facilities of Gazli.

55. Utilities – All of the DP’s had access to electricity, gas and telephone. There was no centralized water supply; instead households relied on wells and water carting. Gazli town has similar levels of service, with only 43% of households connected to a reticulated water supply.

IKS GROUP OF COMPANIES 11 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. Project Census

1. Population

57. Of the 14 entities affected by the project, only 12 were able to provide partial or complete household socio-economic data. Amongst this group there were 69 people across 12 households, resulting in an average household size of 5.8. Of these, 42% were women and 58% men – or approximate male:female ratio of 1.4:1. There were no female-headed households.

2. Education

58. All respondent households reported that all family members had either completed secondary school, or were still at school. Of those finishing secondary school, 27% had gone on to college, with only 9% continuing to higher education. Men and women attended college or university relatively equally – corresponding to their relative population distribution of 1.4:1.

59. Only 5 households had children (total of 10 children) attending pre-school to secondary school. A further 6 children in 3 households were attending higher education.

3. Employment

60. Across all surveyed households, 52% of adults were employed, while 33% considered themselves to be unemployed, and the remainder (15%) are pensioners. About 50% of households reported income emanating from family members working away from home or abroad (and were not accounted in household numbers). No-one reported any disabled household members.

4. Household Income

61. Many households were unwilling to provide financial information for the survey. However, of the eight (8) households that did, average monthly income was 877,500 Sum, equating to an average of 5,100 Sum per person per day – about 1.5 times the poverty line established in the Project Socio Economic Analysis (PSA) from studies by the World Bank and other development organizations in Uzbekistan as the minimum amount required per person per day to purchase basic food necessities.

62. Five (5) households, fall below the established poverty line and will be eligible for livelihood allowances. Three (3) households (one of which is also poor) have pensioners. This means that a total of 7 households will be eligible for livelihood assistance.

63. Table 4 summarizes the census socio-economic data. A detailed summary of the DP’s socio-economic situation is also shown in Annex B.

IKS GROUP OF COMPANIES 12 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4: Socio-Economic Data - Project 3.1 HH Education Occupation members Employed APs

MF '000 Total Yes No Higher School College Female head Female Total Income Total disabled education pensioner University Secondary Pre-school

R13231* 4 2 6 3 2 1 2 500 R13232* 2 1 3 2 1 1 2 1150 R13252 23 512 1 1 2 1 R13253* 2 5 7 4 2 1 1 1 2 610 R13251 3 2 5 1 1 3 4 1 2530 R13254* 5 2 7 2 3 2 2 2 1 1090 R13234* 4 2 6 5 1 4 2 350 R13233* 3 2 5 2 1 2 2 220 R13226 4 2 6 R13522 3 4 7 R13412* 6 2 8 1 1 1 3 2 570 R13521 2 2 4 Average 877.5 Totals 40 29 0 69 21 9 3 5 5 6 17 11 5 0 * denotes vulnerable household

C. Gender and Ethnic Minority Issues

64. No female headed households will be adversely impacted by the project activities. Women interviewed indicated that the road improvements will be favorable, with improved access to medical facilities and business services in Gazli and Bukhara. Other gender sensitive activities (such as toilet and water point provision) have been included in the updated Gender Activity Plan.

65. There are no indigenous persons (as defined by the ADB Safeguard policy 2009) inhabiting the project area. Some ethnic minorities such as Turkmen and Kazaks comprise some employees and herders – but are not considered significantly separate from the general population to warrant the trigger of the IP safeguards. Their comments and concerns have been incorporated into the consultation summaries, and reflected in the LARP recommendations.

IKS GROUP OF COMPANIES 13 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

V. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

66. This section outlines the consultation and participation processes that have already been undertaken to prepare the LARP and those that are required during its update and implementation.

67. The Project has promoted meaningful public and stakeholders’ participation in consultations and focus groups. It began early in the project cycle and has been continued throughout the LARP preparation. Plans are in place for it to continue through the LARP update and implementation. The process has provided timely disclosure of relevant information to stakeholders through a project brochure, with follow up FGD’s and face to face meetings to ensure it is fully understood. Meetings have been undertaken at all levels, so that power differentials do not create feelings of coercion and intimidation. Particular attention has been paid to the poorer AP’s in the process so that they are more comfortable with the process and feel included.

68. The key objectives of the consultations were to: (a) identify and help address AP concerns related to the preparation and implementation of the LARP; (b)determine AP preferences for the type and delivery of compensation; (c) minimize AP apprehensions and ensure transparency in LARP activities; and, (d) help avoid unnecessary and costly project development delays.

A. Project Stakeholders

69. The project consists of a number of stakeholders, all of whom will have some involvement in the LARP process and mitigation of impacts. These were identified early in the LARP process and targeted through a series of consultations. They include:

Displaced Persons, businesses and institutions. Local officials from District and Province Hokiamat and include cadastral, road, environment, economic and rural committee members. Land and resettlement Committee members (LARC). Women’s Groups at district and mahalla level. Transport representatives – taxi, bus and truck drivers, owners and companies. Representatives from education and medical centers who will benefit from the improved road. Commercial representatives – businesses, chambers of commerce.

70. Women and Vulnerable Groups - have been fully included in the consultation and implementation process. They have had representation at meetings at Province, District and mahalla level; women and ethnic minorities have had separate meetings during FGD’s and the census process; and their numerous concerns and ideas have been reflected in the LARP recommendations and the updated GAP.

B. Information and Consultation Mechanisms

71. A number of mechanisms are being used to undertake information dissemination and meaningful public consultation. These include:

72. Public Consultations – These are the formal public information campaigns undertaken in the Province Hokiamat. They include environmental, social and resettlement presentations. The meeting is widely advertised in the media. Attendance is normally Government agencies, informed and mobile AP’s and concerned citizens. Due to the

IKS GROUP OF COMPANIES 14 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT distance from project sites, many of the poorer DP’s find it difficult or impossible to attend. An attendance list for all consultations is contained in Annex D.

73. Socio-Economic Survey – The survey conducted for the PSA included a brief overview of the project and elicited comments on impacts. Each respondent was provided with contact details for any follow up questions. This ensured that the basic project concept was made widely known throughout the project affected areas.

74. Project Census – Like the PSA survey, the project census was also used as an information exchange with AP’s. A more detailed outline of the project was provided to AP’s at the beginning of each survey in the form of the Public Information Brochure, and a verbal Q&A with the interviewer.

75. Public Information Brochure – A 10-page, Public Information Brochure was developed outlining details of the project, its location, potential impacts, agreed entitlements and compensation for AP’s, the project implementation timeline, the grievance redress mechanism and answers to frequently asked questions. It was distributed to every affected household/business during the AP census, and was available at the FGD’s for other interested parties. It will be updated as the project progresses, incorporating new questions and more details on the implementation process. The Public Information brochure is contained in Annex C

76. In-Depth Interviews - are a follow-up from the official public consultations and are targeted at specific groups of stakeholders who may not have attended. They also target stakeholders who may not be aware that they are and should be involved in the project, and who would otherwise not be involved in the formal consultation or census process. For this project they include trucking/transport association representatives, women’s groups, education and medical institutions, and chambers of commerce. The interviews mainly assessed these groups’ views on the potential project impacts (positive and negative), mitigation measures and suggestions for improvement.

77. Focus Group Discussions–are a follow-up from the AP census, and focused directly at the AP’s – in particular the less powerful and poorer AP’s who may not have the resources to attend the official public consultations due to distance, time and cost. The FGD format includes a detailed presentation of the LARP process, separate discussions with women (using a female interviewer and female translator), confirmation of census figures and entitlements, and a detailed Q&A session. The sessions are normally conducted in the local community (to reduce distance) and where possible, without outside influence (from Hokiamat, rural committee members or nearby farmer/landlords) so as to reduce any feelings of intimidation or coercion.

C. LARP Preparation

78. The formal project public consultation meeting for Project 3.1 was conducted on August 5 and included environmental, social and LAR presentations. An attendance list and minutes of the meeting are included in Annex D.

79. The In-depth interviews for Project 3.1 were undertaken in the Romitam Hokimiyat on the 5thAugust. This also served as an updated Project consultation – as it was combined with the presentations for the adjoining Project 2 (km355-420). 30 people attended including representatives of the hokimiyat and its departments, organizations of city infrastructure, makhallas and health care organizations and education. An attendance list and meeting minutes are contained in Annex D.

IKS GROUP OF COMPANIES 15 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

. The key comments provided from these meetings included: Building new bus-stops and repairing the existing ones. Establishment of common bus station in Gazli and Bukhara, unified for buses traveling across all routes. Allocation of additional funds at local administration for rehabilitation of existing feeder roads. Construction of smaller roads linking rural settlements to major roads. Ensuring the renewal of road security measures, signs and traffic lights particularly near schools Compulsory construction of special parking areas near each business Impose better control over gas stations to improve the quality of fuel sold. Replacement of road signs and special marks at near school roads. Increasing awareness among the road user on the norms of road use. Provision of safety measures (water/shelter) on remote stretches of the road.

80. Detailed discussions were held with business owners during the census. Additionally, a number of employees were briefed on the project in the process of owner identification. Their comments have been included in the overall project comments outlined in Annex D

81. A combined “Town meeting” and Focus Group Discussion was held in Gazli Township on the 5th August, 2010 to elicit comments from AP’s in Projects 2 and 3.1. This was necessary as the Romitan Hokiamat is over 100 kms away. A small number of AP’s attended, including 3 from Project 3.1. Representatives of some businesses and the local women’s committee were also present. Discussion mainly consisted of details of the road alignment; the issue of viability of the assets that would remain; and the method of valuing business assets and transactions. An attendance list and meeting minutes are contained in Annex D.

82. Two Hundred and Eight (280) road users were surveyed during the preparation of the PSA and asked to outline any issues for the proposed road improvement. Their comments have been included in the overall project comments outlined in Annex D.

83. Three nomadic herders were interviewed prior to the FGD on the 4th August. Although none have assets located within the project corridor, the project will have some impact on their operations. Their concerns included: Ability for their animals to cross the dual carriageway to grazing areas without impeding, or being injured by traffic. Access to the highway to catch buses and transport to townships. Impact on water points, wells and dilapidated buildings that currently act as temporary shelters. These concerns have been addressed in the community action plan.

D. Summary of Project Consultations

84. The key issues raised during the extensive consultation process can be summarized as: In order to take advantage of the improved highway, feeder roads need to be improved as well. Businesses should be placed to allow parking areas accessible form the road. There should be improved road safety measures including signs, line marking, safety points (water/shelter) and barriers. There should be improved bus shelters and access points.

IKS GROUP OF COMPANIES 16 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

E. Further Information Disclosure

85. Further information disclosure will occur once approval of the LARP has been obtained by the RRF and the ADB – expected by mid-October.

86. The updated Project Information Booklet and summary LARP (translated into Uzbek) will be distributed in mid-October to each DP to provide additional information on the implementation arrangement, payment schedule, and assistance provided to specific groups and complaints resolution options.

87. The full LARP (translated to Uzbek) will be distributed to each Mahalla for display and reference by all AP’s. An index sheets outlining each DP, their GPS coordinates, maps, assets and entitlements will also be on available for review. All DP’s have been informed of this, and understand that they will be able to provide comments or grievances through the normal channels.

88. The full LARP (translated to Uzbek and English) will be disclosed on the RRF PMU and ADB website.

89. In conjunction with the detailed engineering design, and following Loan negotiations, it will be necessary for the Safeguards Team to update and finalize the LARP. They will need to undertake a final visit to the field to ascertain correct alignments and corridor widths, and confirm the details of the LARP – including asset impacts, entitlements and grievances. Details of the updated implementation timeline, procedures and activities; entitlement matrix; and, grievance procedures will be provided at that time to each DP.The updated LARP (in English) will be disclosed on the ADB website, and prior to any resettlement activities.

90. Women and Vulnerable DP’s - During LARP implementation, the PMU will assign a staff to: Inform in advance the DPs, including women-headed households and vulnerable groups, to begin moving at least 180 days prior to demolition of their structures; Ensure that all resettlement payments are made prior to the announcement That all resettlement procedures have been undertaken prior to construction commencing; Persuade housewives to be with their husband when receiving payment for compensation and assistance from the Hokiamat; Involve women of affected households and vulnerable groups in the locality in addressing the unanticipated social and environmental impacts during Project implementation through the GAP. With the consent of the DPs, ensure that the names of both spouses will be reflected in the re-registration of the transferred land titles.

IKS GROUP OF COMPANIES 17 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VI. GRIEVANCE REDRESS MECHANISMS

91. This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances.

A. General Principles

92. ADB requires that a grievance redress mechanism is established and maintained. It should be designed to efficiently receive and facilitate the resolution of affected peoples’ concerns and grievances about project levels social and environmental issues. The grievance redress mechanism should be scaled to the risks and impacts of the project. It should address affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people.

93. The grievance redress process has been widely disseminated to all AP’s during project consultations, FGD’s and the LARP census. It was contained in the Information Brochure handed to each affected household / business during the census.

94. The following mechanism has been updated and improved to reflect practical issues raised and encountered during the last round of focus group discussions. It has updated in the Project LARF and will also be disseminated to all AP’s during the LARP disclosure in October 2010 and the confirmation and update procedures prior to project finalization. Copies of the process and the complaint forms will be posted at the Mahalla offices and the District GFP.

B. Grievance Coordination

95. A Grievance Focal Point (GFP) has been established at the Romitan Khokimiyat to coordinate and address all complaints and concerns arising from the project. The contact details are:

Khakimov Furkat, Deputy Mayor Ramitan district mayor’s office, Tel: 8365 552 12 32.

96. The GFP will be assisted and supported by members of the Province Land and Resettlement Committee (PLARC) who will maintain a register of complaints, keep track of their status and report to the Director of RFF PIU. They will regularly track complaints received, actions taken and the status of resolution. Complaint forms will be distributed to the heads of local Mahalla’s and the District GFP to facilitate recording of complaints.

C. Grievance Procedures

97. Affected persons have been informed that they should ask any questions or discuss grievances with their community head or the District GFP by phone or in person; or to project staff visiting the area.

98. If these questions/grievances are not answered within 1 week, it should be prepared in writing (using the assistance of the local community leader or school if necessary). AP’s have also been told that national and international project staff will also assist them with writing a grievance if necessary.

IKS GROUP OF COMPANIES 18 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

99. Written complaints can be faxed, sent or delivered to the Grievance Focal Points where they will be registered as being received. The District GFP will have 1 week to deliver a resolution to the AP.

100. In the event that a satisfactory answer cannot be provided, the AP may lodge the complaint to Land Acquisition and Resettlement Committee (LARC) of the Province Khokimiyat and receive a reply within 15 days.

101. Affected Persons will have the right to take the dispute to the District court of law if they do not accept the Province Khokimiyat’s decision. All court costs (preparation and representation) will be paid for by the project – no matter the outcome.

102. Table 5 outlines a summary of the grievance resolution process.

Table 5: Summary of Grievance Procedure Stages in Response Handling Required Activities Verbally responds to questions and or complaints.

If no response within 1 week, or response is unsatisfactory, AP Mahalla Heador District GFD prepares a grievance in writing (utilise standard forms where possible).

Registers the written complaint and attempts to solve it. Ifcomplaint is not resolved in one week, it is passed by the GFD tothe Province District GFD LARC for resolution.

Regional Land and Registers the written complaint and attempts to resolve it with the AP Resettlement Committee within 2 weeks. (LARC) If a solution is not reached, the LARC refers it to the RRF PIU Assists in the activities of the GFD and LARC in the resolution of complaints.

Makes a decision within 2 weeks.

In the event that the District and Province are not able to resolve the Regional Road Fund PIU dispute within the elapsed time, the RRF PIU will have a further 2 weeks to resolve the issue.

If the decision is still unacceptable to the AP, they may take it before the District Court, with all costs paid for by the project.

The District court hears the case and makes a final decision, that is District Court of Law binding on all parties.

IKS GROUP OF COMPANIES 19 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VII. LEGAL FRAMEWORK

103. This section describes National and Local Laws and the gaps with ADB Policy.

A. Relevant Provisions for Involuntary Resettlement in Uzbekistan

104. There are no laws or legislation in Uzbekistan that specifically address matters related to involuntary resettlement. Rather land acquisition is governed by the following laws and resolutions:

The Land Code - approved by the Law of the Republic of Uzbekistan from30.04.1998, taking the changes of 2003-2004 into account;

The Civil Code of Republic of Uzbekistan from 1996, taking the changes of 2004- 2008 into account;

Law of the Republic of Uzbekistan on “State Cadastre” N171-II from 15.12.2000

Law of the Republic of Uzbekistan on “State land Cadastre” N666-I from28.08.1998 taking the changes of 2002-2004 into account

Cabinet of Ministers Resolution on “Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan” 246 from25.05.1992;

105. Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land. They do not provide for “land for land” or cash compensation as land is a state owned asset. A brief account of legislation pertaining to compensation and the provision of land is given in Annex E.

IKS GROUP OF COMPANIES 20 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. ADB’s Policy on Involuntary Resettlement

106. The ADB policy on involuntary resettlement is detailed as “Safeguard 2” in the ADB Safeguard Policy Statement (SPS) of June 2009. It emphasizes ADB’s efforts to assist DMCs to pursue environmentally sustainable and inclusive economic growth. In addition, ADB is committed to ensuring the social and environmental sustainability of the projects it supports.

107. In this context, the goal of the safeguards is to promote the sustainability of project outcomes by protecting the environment and people from projects’ potential adverse impacts.

108. The objectives of ADB’s safeguards are to: (i) avoid adverse impacts of projects on the environment and affected people, where possible; (ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and (iii) help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

109. ADB Safeguard Requirement 2: “Involuntary Resettlement” is detailed in Appendix 2 of the SPS and included in Annex E of this LARP. The ADB is in the process of updating its “Handbook on Resettlement – A Guide to Good Practice” (2003) however the basic principles and practical implementation procedures are still valid.

110. The key principles of ADB’s Involuntary Resettlement Policy and procedures relevant to the LARP are:4

Assess past and current involuntary resettlement risks Undertake meaningful consultation and participation of all DP’s Pay particular attention to 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 Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Improve, or at least restore, the livelihoods of all displaced persons through o land-based resettlement strategies when affected livelihoods are land based where possible o prompt replacement of assets with access to assets of equal or higher value, o prompt compensation at full replacement cost for assets that cannot be restored, and o additional revenues and services through benefit sharing schemes where possible. Provide DP’s with o secured tenure to relocation land, o better housing at resettlement sites with comparable access to employment and production opportunities

4These are paraphrased and summarised for discussion. The full text of the ADB policy is in the Annex

IKS GROUP OF COMPANIES 21 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

o integration of resettled persons economically and socially into their host communities, and o extension of project benefits to host communities; Provide DP’s with transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; Provide civic infrastructure and community services, as required. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated 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. Prepare a resettlement plan elaborating displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons.

C. Comparison of Uzbek and ADB IR Laws, Regulations and Procedures

111. The main variations between Uzbekistan laws/regulation and ADB Safeguards policy are outlined in Annex E. Any key differences have been resolved in favor of ADB policy, particularly in areas where practices are less subject to independent oversight.

112. Comparison of the Uzbekistan LAR Policy with the ADB Involuntary Resettlement Safeguard Policy indicates that key elements of the ADB Policy are present - particularly those related to valuation of immovable property. The ADB’s principle of avoidance or minimization of resettlement is reflected in Uzbekistan Legislation.

113. The key policy difference regards DP’s without title, or registration (businesses and structures). In order to remedy this, Uzbekistan has ensured that all land, businesses and structures will be registered prior to resettlement, at no cost to the DP, and then transferred or compensated under the relevant entitlement.

114. Overall, Uzbekistan’s Country Safeguard System (CSS) is approaching that of ADB’s Social Safeguard Policy. The main area of concern is the application of laws in practice before and during construction – where differences have been noted in the field. This is mainly an issue of information dissemination to those responsible for implementation at the district and province level. This has been addressed in the information dissemination activities during preparation, and will be a core area for the monitoring activitiesduring the LARP update and implementation.

IKS GROUP OF COMPANIES 22 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

D. Actions Made to Address the Gaps

115. In February 2010, the RRF agreed to adopt a Land Acquisition and Resettlement Framework (LARF) for the Project that incorporates both Uzbekistan’s laws and procedures and the Resettlement Policies of the ADB. The Framework applies to all persons whose private land status is affected permanently or temporarily due to the Project, including purchase and temporary use during construction. It also applies to people whose use of state land, sanctioned or not, changes as a result of the investment. The Framework does not apply to State land that is transferred from one authority to another, or used for the reconstruction, unless third parties are adversely affected by the transfer or use.

116. The document ensures that: (a) compensation is provided at replacement cost for houses and buildings and at market value for all items,(b) non-titled APs are given livelihood rehabilitation, and (c) the provision of subsidies or allowances for APs suffering business losses or severe impacts and APs who are vulnerable.

117. A revised LARF has been prepared incorporating the changes and improved understanding gained during the preparation of this LARP. It is expected that it will be adopted by the RRF and ADB in October 2010.

E. Principles and Policies for the Project

118. The ADB policy has no reference for valuing entitlements except for the general principle that DPs should be at least as well off after the project as before it. In other words, valuation of their property and assets should be at the replacement value. The Bank’s practices also recognize this principle to ensure protection of interests and the well-being of the DPs.

119. The LARP sets eligibility and entitlement provisions establishing compensation rates in accordance with guidelines from the Land Code of the RU.

120. The following principles for the compensation/rehabilitation of families affected by the Project were explained to the DP’s and stakeholders during consultations:

The cut-off date for identifying affected lands, families and people is 19 July, 2010 when the resettlement survey was begun and any affected people along the proposed project routes were informed. The route of the road minimizes the need for acquisition of houses or agricultural land. There will be some permanent acquisition of land and buildings. Identification, compensation and assistance will be provided prior to any construction commencing. All affected persons (identified before the cut-off date) will receive compensation, even if they are without title or formal recognition. This includes any temporary residential structures, informal agricultural activities or temporary business use. All construction through agricultural land will be timed to minimize any impacts on the income and activities of adjoining land parcels. All construction over public right’s of way – footpaths, canals, driveways and roads will be undertaken rapidly and without undue delay to avoid inconvenience to business and residences. Detailed seminars and consultations will be available for all affected households to keep them informed of the process. Representatives of affected households will be invited to participate in the Khokimiyat valuation meetings.

IKS GROUP OF COMPANIES 23 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

A defined grievance procedure has been established. When a land owner or user does not agree with a decision regarding compensation or change of the ownership or land use (lease), it may not be exercised before the dispute is resolved judicially. In addition, any person who feels that they are in any way worse off can take their grievance to the highest level, at the cost of the project. Those people who face significant impacts (>10% of their land being resumed and/or physically displaced from housing) will receive additional support, assistance and compensation. Vulnerable groups, including female-headed households, the poor, disabled, or families with significant numbers of elderly members will receive additional support, assistance and compensation to ensure that they are not severely affected. DP’s may use and exercise their rights to a land plot and make necessary expenditures in compliance with its purpose after notification on acquisition for public needs until compensation is agreed. However, there will be no entitlement to additional compensation based on these improvements. If a land plot becomes unviable due to acquisition then the whole land plot will be compensated.

IKS GROUP OF COMPANIES 24 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VIII. ENTITLEMENTS, ASSISTANCE AND BENEFITS

121. This section outlines DP’s entitlements and eligibility and describes all resettlement assistance measures including an entitlement matrix. It also specifies all assistance to vulnerable groups, including women, and other special groups; and outlines opportunities for affected persons to derive appropriate development benefits from the project.

A. Entitlements to Compensation

122. The following groups of affected persons (APs) are included in the LARF and also will be addressed in this Land Acquisition and Resettlement Plan (LARP) for Project 3.1:

B. Formalization of Title/Registration

123. To enable the Project to compensate unregistered land users under Uzbekistan laws, representatives from the District Cadastral Offices have advised affected land users to register or update the registration of their lands and structures. Under the LARP those who have unregistered land or structures will be registered free of charge prior to compensation. This will be facilitated by the RRF.

124. DP’s who have already paid for registration after project identification (November 2009), and feel that this was unjust, can elect to document their case to the grievance committee providing proof of date and amount charged. If found to contravene ADB policy, charges will be refunded by the EA.

125. The assets/structures on the affected plots of land users without titles have been evaluated by exactly the same criteria as those with titles.

C. Calculation of Compensation

126. This section will outline how compensation has been calculated for each component of the RP, and a summary of that calculation.

1. Land

127. Compensation for the land will be on a “land for land” basis, with land being provided to owners by the District Hokimiyat following assessment by the LARC. Such land will be of equal value/productivity in a nearby location and with comparable associated services/ facilities, or compensation to provide such services. Transaction cost, registration fees, if any, will be borne by the project.

128. For DPs using land without a formal lease, their total land used (leased and without lease) will be formally combined into a single lease, without cost to the DP. The land will then be transferred under normal processes.

129. A total of 3.85 of a hectare of land is required for Project 3.1. Six (6) DP’s will lose 100% of their land. Average land lost is 70% of total holdings. Land is generally arid or desert. It is expected that replacement land will be provided behind the existing lands, outside the new corridor. Table 6 shows a summary of the land required.

IKS GROUP OF COMPANIES 25 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 6 - Land Required for Project 3.1 Land Survey Km Total Acquired % R13226 322.6 0.21 0.06 29% R13231 323.1 0.41 0.2 49% R13232 323.2 0.27 0.21 78% R13233 323.5 0.32 0.32 100% R13234 323.6 0.16 0.16 100% R13235 323.7 0.1 0.1 100% R13236 323.7 0.06 0.06 100% R13251 325.1 0.55 0.53 96% R13252 325.3 0.68 0.38 56% R13253 325.3 0.1 0.1 100% R13254 325.4 0.6 0.5 83% R13412 345.0 0.6 0.4 67% R13522 352.0 1.1 0.5 45% R13521 352.0 0.33 0.33 100% Total 5.49 3.85 70%

130. Land Preparation – costs include survey and titling, realignment of water supply and gas mains to land parcels, and the general preparation of the site for construction. As the result of construction works it is expected that 5 business structures will demolished. According to the DI the funds have already been envisaged for the above mentioned facilities.

131. The realignment of the communal and communication facilities to land parcels and construction of access roads in complex will cost 20 million Sum per house. Survey and titling will cost 700,000 Sum per house. For project 2 these equate to 248,000,000 Sum or $154,000. A breakdown of these costs is shown in Table 7.

Table 7 : Land Preparation Costs – Project 3.1 Sum / Item Units ’000 Sum US$ Unit Survey and Title 12 700 8,400 5,208 Communal and site 12 20,000 240,000 148,792 preparation cost. Total 248,000 154,000

2. Businesses

132. All operating businesses will receive compensation for 6 months loss of business income. Income will be calculated based on tax declarations, imputed earnings or average income in this area. The owner has the right to alter this amount if delay or hardship is encountered, through formal application to the grievance process.

133. Unregistered businesses will first be registered at no cost. They will then receive compensation as per other businesses. If they cannot provide proof of business income, then average income of similar businesses in the area will be used to calculate compensation.

IKS GROUP OF COMPANIES 26 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

134. Workers – Compensation for workers will be based on stated (or average) wage rates (including fixed by oral agreement with employer) multiplied by 6 months.

135. Table 8 outlines a summary of business and worker compensation. Seven (7) businesses are operating entities earning income. They employ a total of 56 workers. Businesses will be compensated 37,200,000 Sum ($23,063). Workers will receive 52,320,000 Sum ($32,436) in lost wages and benefits.

Table 8: Business and Worker Compensation ('000 Sum)

Workers Monthly Business Compensation Survey Km Average Income Salary per month SalaryBusWorker R13231 323.1 1,000 18 250 6,000 27,000 R13232 323.2 800 3 150 4,800 2,700 R13234 323.6 600 3 200 3,600 3,600 R13251 325.1 2,000 7 150 12,000 6,300 R13252 325.3 500 15 60 3,000 5,400 R13253 325.3 500 3 80 3,000 1,440 R13254 325.4 800 7 140 4,800 5,880 56 Sum 37,200 52,320 Total USD 23,063 32,436

3. Structures

136. All assets (registered or not) will be valued through calculating the real replacement cost based on cost of materials, type of construction, labor, transport and other construction costs. No deductions will be applied for depreciation or transaction costs. The cost of reconnection to lost water, electricity, gas and telephone connections will be included in the compensation (the new land sites are assumed to have similar services available). Salvaged materials will be allowed to be taken away by the DPs prior to demolition at no charge.

137. Table 9 shows the per unit cost for the relevant structures in the project area. Buildings unit costs have been estimated based on the average construction and roofing material used. Basic mud brick structures normally consist of barns or unfinished buildings. When they are painted and prepared for improved use – they are categorized here as improved mud brick. With facilities, refers to structures that also have gardens, awnings and other relevant facilities. Concrete block structures are either basic (assessed as at lock-up stage only) or improved (including ceiling, floors, kitchen and bathroom facilities. All unit costs include relevant utility connections for that type of structure.

Table 9 : Structure Unit Costs ('000Sum/m2) Basic 36 Mud Brick Improved 60 W/facilities 130 Basic 180 Concrete Block Improved 225

Specialised Fuel Station 500 all prices include relevant utility re-connections

IKS GROUP OF COMPANIES 27 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

138. Table 10 shows the compensation for all buildings. Buildings costs have been estimated by using the relevant unit cost multiplied by the total square meters of the building. Building 1 is normally the primary business premises (eg café) or residence. Other buildings are included in subsequent columns. Total building replacement cost for all DP’s is 623,459,000 Sum ($386,521)

Table 10: Compensation for Structures ('000 Sum) Primary Key Other Compen- Structure Value Survey Structure Structures Structures sation M2 ppm M2 ppm m2 ppm 1 2 3 R13231 300 180 200 225 240 130 54,000 45,000 31,200 130,200 R13232 144 130 60 60 18,720 3,600 - 22,320 R13233 150 225 100 60 33,750 6,000 - 39,750 R13234 70 80 5,600 - - 5,600 R13235 130 120 15,600 - - 15,600 R13236 24 60 1,440 - - 1,440 R13251 525 225 60 160 370 60 118,125 9,600 22,200 149,925 R13252 84 225 140 160 18,900 22,400 - 41,300 R13253 90 225 16 500 84 36 20,250 8,000 3,024 31,274 R13254 400 225 80 500 90,000 40,000 - 130,000 R13522 50 225 11,250 - - 11,250 R13521 80 500 80 60 40,000 4,800 - 44,800 Total 623,459 USD 386,521

4. Gardens and Trees

139. Only four (4) household / businesses have gardens and trees. Their vegetable plots, trees and garden areas were valued based on similar calculations in nearby districts. This equates to a total of 43,643,000 Sum ($27,057). Table 11 summarizes the compensation payable.

Table 11: Trees and Garden Compensation ('000 Sum) Survey Km Trees & Garden Total R13234 323.6 884 884 R13251 325.1 20,000 20,000 R13252 325.3 12,885 12,885 R13254 325.4 9,874 9,874 Total 43,643 USD 27,057

5. Community Assets

140. The RP has to take account of the costs involved in replacing community infrastructure. This includes re-establishing or constructing intersections with existing roads; water, gas, electricity, irrigation and telephone infrastructure; civic buildings and community facilities (wells etc). Total Community Asset replacement cost is 3,446,000 Sum

IKS GROUP OF COMPANIES 28 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

($2,136,398). Table 12 outlines the details of all community assets that will need replacing and the agency that will undertake that work at their own cost.

Table 12 : Community Asset Costs Items ’000 Sum US$ Agency Water Mains 80,000 49,597 Road Fund Gas Mains 3,300,000 2,045,877 Road Fund Electricity Mains 66,000 40,917 Road Fund Telephone Lines Not affected Canals No canals Wells No data Total 3,446,000 2,136,398

D. The Valuation Process

141. Asset Valuation - Initial asset (buildings, businesses) valuation has been undertaken by the Safeguards team. It will be verified and certified first by the RF Social and Land Acquisition sub-Unit and then by the District LARC. If the DP agrees with the valuation, then this will be used as the basis of negotiation between the owners and the local authorities. If the DP disagrees with the valuation, Uzbek Law (Cabinet of Ministers Resolution N97 dated May 2006) allows for them to utilize an independent valuer at their own cost. In conformance with ADB requirements, this cost will now be paid by the RRF.

142. Land for Land – The District LARC decides on the assignment of alternative land plots. Given the lack of complexity in this project and the large extent of land available, the allocation will most likely be adjacent to the existing plot and realigned with the new corridor. Associated infrastructure requirements - service roads, drainage, sanitation, water supply, irrigation and electricity facilities – will be provided as part of site-preparation costs. All relocation activities will be carried out with the consent and cooperation of the displaced people and the local authority will be instrumental in carrying out resettlement activities as scheduled.

143. Unviable Land – In some cases the business becomes unviable due to significant land acquisition. In these cases the DP has been contacted in the first instance to assess their views. Businesses are well able to assess this impact. The District LARC is responsible for negotiating with groups of DP’s on the best way to reallocate lands. DP’s may also develop their own methods for reallocating land and present this to the LARC.

IKS GROUP OF COMPANIES 29 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

E. Entitlements Matrix

144. Table 13 outlines the complete entitlements matrix for the project.

Table 13: Entitlement Matrix for Project 3.1 Type of Specification Affected People Compensation Entitlements Loss Cash compensation at full replacement rate for affected structure/fixed assets free of salvageable materials, depreciation and transaction costs. Salvageable material will be allowed to be taken away by owner at no cost. Owners Full or partial Cost of replacing water, electricity, gas and phone Housing (with/without loss of connections will be included in the compensation. and house or building structures Structures registration) For partial impacts, cash compensation at replacement rates to restore remaining structure.

Unaffected portions of the structure will also be compensated if they become unviable after impact occurs

All APs (including The full cost of seedling, cost of preparation of a Trees Trees affected non-titled land garden and lost profit at annual income multiplied owners) by the number of years till the trees gain fruiting Cash compensation equal to 6 month's income Temporary/ where loss is permanent. permanent Business/ loss of Business Owner Employment Compensation is estimated on the basis of tax business or declarations, imputed earnings or average income employment in this area.

Indemnity for lost wages for the period of business Worker/employees interruption (including fixed by oral agreement with employer) for a period of 6 months.

Compensation for lost rent paid in advance plus cash compensation equal to 6 month’s income if loss is permanent. Tenants of affected buildings Compensation is estimated on the basis of tax declarations, imputed earnings or average income in this area.

1 additional allowance equal to 3 months at $35 per family member per month. Vulnerable AP: AP Livelihood below poverty line Priority for employment in project-related jobs, training opportunities, self-employment and wage employment assistance

All DPs affected by Provision of US$100 cash compensationto cover Transport Cost relocation transport expenses to new locations. / transitional Relocation livelihood House owners and Will receive 3 months salary (based on wage costs tenants who are receipts or agreements) to allow time off for work employed to relocate

Loss or Rehabilitation/replacement of affected Community damage to structures/utilities (i.e. mosques, footbridges, assets public roads, schools, health centres, etc.) to pre- infrastructure Program level and utilities

IKS GROUP OF COMPANIES 30 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IX. RELOCATION OF HOUSING AND SETTLEMENTS

145. This section describes the options for relocating housing and the activities that will be conducted to assist the process.

146. The District LARC is currently assessing options for relocation of businesses. It is expected that they will just be moved back from the new alignment onto land which is currently desert. There are no other alternatives currently being considered.

147. Further details regarding relocation will be forthcoming as the DLARC finalizes is allocation processes. In particular the revised LARP will outline:

IKS GROUP OF COMPANIES 31 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

X. INCOME RESTORATION AND REHABILITATION

148. This section briefly describes programs for restoring and enhancing income of vulnerable groups, particularly women and the disabled.

A. Special Assistance to Vulnerable Groups

149. Livelihood Allowance - For those DP’s who are vulnerable – female-headed, poor, or face significant hardship due to elderly or disabled family members – an allowance of $35 per household member for three months will be paid. This equates to 169,365 Sum per household member. Seven (7) families have been assessed as vulnerable, comprising a total of 42 people. Total livelihood allowances are 7,113,330 Sum ($4,410).

150. Relocation Allowance – All DP’s who will have to move from their house will receive a relocation allowance of 160,000 Sum per household. As 7 operating businesses / residences are relocating, this equates to a total payment of 1,120,000 Sum ($694).

151. Salary Support during relocation – All DP’s who have employment (formal or otherwise) will receive up to 3 months’ salary to cover the time taken to relocate. This will be based on documents from employer or wage receipts. At present, no DP’s have indicated that they will require salary support.

Table 14 outlines the summary of benefits.

Table 14: Compensation for Vulnerable groups ('000 Sum) Households People Rate Total Allowance Type '000 Sum '000 Sum Poverty 5 32 Female Headed - - Disabled - - Livelihood Elderly 3 17 Sub-Total 7 42 169 7,113 (without double counting) Residence & Business 2 11 Businesses 5 30 Relocation Sub Total 7 42 160 1,120 (without double counting) Salary Support ---- Total 8,233 USD 5,104

B. Opportunities to derive development benefits

152. Priority Work Placement – All DP’s and project stakeholders, such as corral owners and herders will receive priority entitlement to work in construction crews and for rehabilitation efforts (such as tree replanting). These standards will be incorporated in construction contracts and details included in progress reports.

IKS GROUP OF COMPANIES 32 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Other costs

153. Other costs to be provided under the LARP include those of the Mahalla committees, safeguards consultants and the External Monitoring agency. Table 15 outlines the expected costs of providing these services and the agency responsible for payment. The total amount payable is 140,266 Sum ($87,518)

Table 15 : Other Costs (‘000 Sum) Items Amount Responsible Agency Community Education a 4,000 District khakimiyat Resettlement Consultant PMUb 33,873 PMU Resettlement Consultant – Supervision 33,873 Construction External Monitor d 64,520 PMU Mahalla Committees e 4,000 District khakimiyat Total 140,266 USD 87,518 a This cost will be paid by EA from LARP budget b This cost is envisaged under Procurement and Safeguard consultant package of the project c This cost is envisaged under Procurement and Safeguard consultant package of the project d This will be paid by PMU (contingency expenses) e This cost will be paid by EA from LARP budget

IKS GROUP OF COMPANIES 33 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XI. RESETTLEMENT BUDGET AND FINANCING PLAN

154. This section provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation.

A. Responsibilities

155. In order to ensure that sufficient funds are available for LAR tasks, the Road Fund will have to allocate 100% of the cost of compensation at replacement cost and expected allowances estimated in each LARP plus contingencies before LARP implementation. As the EA, Road Fund will be responsible for timely allocating the funds to implement the LARPs. Allocations will be reviewed bi-annually based on budget requirements indicated in the LARPs.

156. The EA will be responsible for including LAR funds for project activities in each fiscal years government budget. The budget for LARPs will be disbursed by RRF via the Province LAR committee to the District LAR Committee which will in turn distribute the compensation to DPs.

157. The EA will be responsible to allocate adequate budget for the Safeguard Team to conduct their tasks and responsibilities during the Program's activities. This will be funded via Procurement and Safeguard Support package.

B. Budget Summary

158. The complete budget for LAR activities on Project 3.2 is shown in Table 16. It indicates a total budget of 921,112,000 Sum or US$571,055.

IKS GROUP OF COMPANIES 34 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 16: LAR Entitlement Summary ('000 Sum) ‘000 Sum US$ Land Preparation Costs* 248,000 154,000

Compensation Business Loss 37,200 23,063 Worker Compensation 52,320 32,436 Structural Loss 623,459 386,521 Agricultural Production 43,643 27,057 Community Assets (Utilities etc)** 3,446,000 2,136,398

Support for Vulnerable Households Livelihood Allowance 7,113 4,410 Relocation Allowance 1,120 694

Sub- Total 837,375 519,141

Contingency (10%) 83,737 51,914

IKS GROUP OF COMPANIES 35 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XII. INSTITUTIONAL ARRANGEMENTS

159. The main institutions that will be involved in LAR activities are Republican Road Fund/ Road Fund as executing agency (EA), Safeguard Team, Design Institute (DI), Project Consultants (PC), Provincial (Province) and District (District ) and municipal towns authorities, Goskomzemgeocadastre (State Committee on Land Resources, Geodesy, Cartography and State Cadastre (SCLRGCSC) at district level.

A. Republican Road Fund (Road Fund) – PMU

160. The Road Fund will have overall responsibility for all aspects of the program. The Program Management Unit (PMU) within Road Fund will be responsible for the day to day management of the Program including cross-agency coordination, and via the Safeguard Team (ST) for LARP implementation and monitoring the compensation and disbursement.

161. The Safeguard Team (ST) under PMU will be directly involved in all LAR related planning, implementation, inter-agency coordination, monitoring and reporting. They will receive supports from the Project Appraisal Consultants (PAC) of the Program and benefit from inputs from the Design Institute (DI), district/municipal executive powers and SCLRGCSC as appropriate. The Safeguard Team in collaboration with the DI will review the LARPs.

162. If required, an NGO or impact assessment or valuation teams will be hired for on-site impact surveys or monitoring assistance.

B. Design Institute (DI)

163. The Design Institute will be in charge of elaborating the design and construction documents for the project. It will collaborate and work closely with the PMU/ Safeguard Team and PAC to: (i) look for measures and alternatives to avoid and minimize land acquisition and resettlement impacts; (ii) assemble all documents required for compensation; (iii) carry out topographic surveys of the expropriated land and replacement lands; (iv) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces differentiating the land use patterns in the areas being occupied to serve as a base for the selection of compensation land; (v) Conduct land marking and pegging of the land assigned for temporary use and permanent occupation of acquired land.

C. Regional and District SCLRGCSC

164. This is a permanent committee at Provincial and District level. However it plays an enhanced role throughout implementation. It is responsible for: i) identifying land losses incurred by land owners and land users plus agricultural output losses; ii) determining the degree and area of land restitution, including removal and temporary storage of productive soil layer; iii) determining the need for protective sanitary and water protection zones around constructions; iv) preparing proposals on allocation of land plots of equal value under land for land;

IKS GROUP OF COMPANIES 36 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

D. Province/District Governments

165. Local government agencies involved in the LARP review and implementation are Province (Province) and District (District) Executive Authorities who will form the Province Commission on Land Acquisition and District Evaluation Commissions. These will form a provincial land acquisition and resettlement committee (PLARC) which will undertake the following: (i) outline locations of constructions and structures affected by the project; (ii) select land for construction sites; (iii) prepare and approve legislation for the right (title) to use land plots and; (iv) approves the Act for the right to use the land plot.

166. In addition to permanent members, the Commission may include representatives of Road Fund, as well as affected legal entities and individuals.

167. The PLARC will also estimate losses of land owners and land users in accordance with ADB specifications in addition to losses resulting from land acquisition based on data provided by the Design institute. The Commission will prepare Acts for the right to specific plots of land specifying the acquired land area and losses and allowances as determined under the LARF entitlement matrix.

168. It is proposed that Land Acquisition and Valuation Committee as part of the PLARC composed of the following members:

169. All affected legal parties and individual persons (or their legal representatives) will have representation on the committee. Besides state organizations and structures, NGO’s, Farmer’s and Dehkan Associations (FDEA) and Mahalla authorities will be involved in resettlement activities to ensure the legal rights and interests of land users who are subject to land acquisition and resettlement.

170. Some members of the PLARC will form a Grievance Redress Committees (GRC) and will be established at provincial and district level. It comprises members of the PMU/ ST, leaders of affected Mahallas and local government/ Hokimiyat.

IKS GROUP OF COMPANIES 37 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Asian Republican Road Development Fund as Executing Figure 1: Project Implementation Diagram Bank Agency

Program Management Unit (PMU) Safeguard Team (ST) (Oversees LAR planning, implementation, and monitoring)

Reporting Supervision Information Exchange Monitoring Consultants

Design Road Construction Contractors Institute

External Monitoring Agency

District SCLRGCSC (including Land Acquisition and Valuation Regional/District Committee and Land Grievance Redress Acquisition and C itt Resettlement Committee)

IKS GROUP OF COMPANIES 38 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XIII. Implementation Schedule

171. This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities synchronized with the project schedule of civil works construction.

A. Pre-Resettlement Activities

172. The PIU will undertake a brief verification of the RP based on the alignment finalized by the detailed design. Any modifications to the RP will be made, and verified with the PMU and the ADB prior to any LAR activities commencing.

173. The revised LARP will have to include the full details of all land and resettlement arrangements, including verification of asset viability by the DP’s. It is expected that this can take place prior to loan approval by ADB.

174. The Design Institute in charge of elaborating the design and construction documents for the road construction subproject will assist the PIU to: (iii) assemble all required documents; (iv) carry out topographic surveys of the expropriated and compensation lands; (v) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces; (vi) establish layouts of the lands proposed as option for compensation; (vii) conduct the land marking and the pegging of the lands assigned for temporary use and permanent occupation and of the compensation lands.

175. The DP’s will sign a document signifying their satisfaction on the compliance of RRF on the agreement. The PIU Social/Resettlement Specialist will guide the RRF in preparing a pro-forma document to be used for the settlement of obligation in the purchase of affected land and/or materials for all structures.

176. Disbursement of cash will follow the approval of budgets for cash compensation. The RP Team will inform the DPs of the schedule of fund release. They will also advise the APs to produce acceptable legal documents pertaining to their identification for claiming the compensation. It is the main responsibility of RRF to ensure that all the compensations and entitlements have been paid to and settled with DPs prior to their resettlement.

177. All resettlement activities will be completed prior to clearing the construction sites. The RRF will initiate the following steps in releasing the cash compensation and entitlements to DPs: The Resettlement Team will advise the DPs of the fund release schedules. The Resettlement Team shall then advise the DPs to produce the necessary legal documents for their identification in claiming the compensation and entitlements due to them. The Resettlement Team will arrange for receipt of the resettlement compensation from the Ministry of Finance and disburse it directly to DPs on presentation of identification. The Resettlement Team will arrange for district hokiamat to issue new title directly to DPs on presentation of identification. The Resettlement Team will require the DPs to sign a document indicating the receipt of their compensation and entitlements. The DP’s will then begin their process of rebuilding and relocation. The Resettlement Team will require the DPs to sign a document indicating

IKS GROUP OF COMPANIES 39 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

completion of their LAR activities, indicating that they have no further claims. This will be summarized by the RRF and forwarded to ADB as part of no- objections for commencement of construction.

178. As a condition to approve the civil works contract award both the RP in English and in Russian and the information booklet will be updated, re-approved by ADB and re-disclosed to the affected communities.

B. Implementation Phase

179. The project loan is expected to be approved in March 2011 and the loan is expected to be effective by April 2011. Construction is set to start at the end of July 2011.

180. A schedule for implementation is presented in Figure 2.

C. Post Resettlement Implementation Phase

181. Monitoring of resettlement activities and the compliance of the project policies by the RP Team on behalf of RRF, as set out in this framework, are the items for this phase. This is because the internal monitoring which is the responsibility of the RP Team will be the basis for RRF requesting from ADB its “no objection” for the mobilization of construction contractors. ADB will also conduct a mid-term evaluation to ensure that there are no adverse involuntary resettlement effects.

IKS GROUP OF COMPANIES 40 TASHKENT,OCTOBER 2010 TA 7573-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS – GROUP OF COMPANIES 41 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XIV. MONITORING AND REPORTING

182. This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

183. The primary objective of monitoring is to identify as early as possible the activities achieved and the cause(s) of constraints so that the arrangements in the LARP implementation can be adjusted. Monitoring is important because LARP implementation is often the critical path for any project where civil works is involved, due to issues on land acquisition, compensation and resettlement that may cause delay in civil works. The early identification of the causes of delay will enable the RRF (with support from the supervision consultants), to prepare the mitigating measures during LARP implementation.

184. LAR tasks will be monitored internally and externally. Internal monitoring (IM) will be carried out by both the Safeguards Team of the PMU and the Supervision Consultant (SC).In conjunction with District Hokiamats. External monitoring (EM) will be assigned to an Independent Monitoring Agency (IMA) hired by the RRF and approved by ADB from among local consultants or NGOs. The IMA will be mobilized prior to LARP implementation.

A. Internal Monitoring

185. All activities in LAR are time bounded. Internal monitoring (IM) will be carried out by the PMU Safeguards Team with the assistance of the supervision consultant safeguard tem and the LARC in the District Hokiamat. Process indicators will relate to implementation outputs and deliverables. These will be collected directly from the field, and will be reported monthly to the PMU to assess the LARP implementation progress and adjust the work plan if necessary. These reports will be quarterly consolidated in the supervision reports for ADB.

. Specific IM benchmarks will be: (i) Information campaign and consultation with APs; (ii) Status of land acquisition and payments on land compensation; (iii) Compensation for affected structures and other assets; (iv) Relocation of APs; (v) Payments for loss of income; (vi) Selection and distribution of replacement land areas; (vii) Income restoration activities; and (viii) ensure the gender mitigation measures are adhered to during the internal monitoring and reporting process.

186. The above information will be collected by the Project Supervision consultants who will monitor the day-to-day resettlement activities of the project through the following instruments:

(i) review of census information for all DPs (ii) consultation and informal interviews with DPs (iii) key informant interviews; and (iv) Public community meetings.

187. Upon the completion of civil works, the PMU will prepare a post-LARP implementation evaluation report that will assess both the permanent and temporary land acquisition activities and impacts of the Project focusing on the restoration of impacted lands and conditions of DPs especially those who were identified as vulnerable.

IKS GROUP OF COMPANIES 42 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

188. In addition, the PMU will update the LARF and particularly the Uzbekistan/ADB safeguards policy matrix, with a view to aligning Uzbekistan’s CSS and reducing LARP reporting requirements.

B. External Monitoring

189. To ensure that negotiated settlements in the Project comply with ADB SPS2009 requirements, the PMU will hire an external monitor to document the negotiation and settlement processes. The EM will observe the consultations conducted with DPs and the compensation payments negotiations. The EM will verify if the consultations are conducted in a free and transparent manner and that the compensation provided is based on replacement costs of land and other assets affected. They will submit a report on the observations and the evaluation. The EM will come from an independent organization, such as an academic or research institute, a nongovernment organization or consulting firm with experience in resettlement monitoring and evaluation.

190. External monitoring (EM) will be carried out on an ongoing basis, and its results communicated to the PMU and ADB by quarterly reports. Indicators for EM tasks include:

191. The EMA will also assess the situation of affected vulnerable groups such as female- headed households, disabled/elderly, the landless and families below the poverty line. The following will be considered as the basic indicators in monitoring and evaluating the project:

192. Internal and external monitoring and reporting will continue until all LAR activities have been completed. External monitoring reports will be disclosed on the Project/ADB website.

IKS GROUP OF COMPANIES 43 TASHKENT,OCTOBER 2010 Annexes Annex A

Census and Socio Economic Survey Forms Annex A

Orchard Farm Survey

Economic performance of the farm

Land acquisition in 2010.

The length of the road crossing the garden (m) Including via Apple trees apricot trees width of the road (m) Area total (ha) Including via Apple trees apricot trees

Signature of officials Date

Workers Number FullTimeEquivalent AvgSalary Total

Tenants RentPaidpermonth UntilWhen?

MitigationMeasures

Commentonpotential Relocationand/or Compensation requirements. Asian Development Bank CAREC 2 – Resettlement Census (Ver 2)

Questionnaire ID: |R |___ |___|___|___|___| Type/Project/AP# Dateofsurvey Location Rayon Mahalla Nameofsurveyor HouseholdName

Survey Houses DoHousesurvey Garden DoGardenSurvey Farm DoFarmsurvey HowmanyTypes? Numberoffarmsurveys DoTree Trees Survey Business DobusinessSurvey

Services WaterPipe Y/N Gas Length m m Telecom Y/N AccessRoad Length m m Electricity Y/N Well Length m # Asian Development Bank QuestionnaireID:|R|___|___|___|___|___|

Type/Project/AP# Household Questionnaire Dateofsurvey Location Oblast Rayon Y N Mahalla ReceiveMahallaAssistance? Nameofsurveyor HouseholdName

Household Employment

Doyouconsideryourselfdisadvantagedbecauseofthis?

Howmanyotherhouseholdsinyourminoritydoyouknow?

listinorder1 Howshouldtheroadauthorityinvestinroads? 5 rehabilitateexistingroad Constructnewroad Improvebusesandbusstops Increasepublictransportfrequency improvepublictransportcoverage/routes

Annex B

Results of Census

Annex C

Information Brochure PROJECT INFORMATION BOOKLET CAREC Corridor 2 Road Investment Program

Republican Road Fund, Government of Uzbekistan And funded by the Asian Development Bank

INFORMATION for land owners and users on their entitlements and compensation in land acquisition for public needs

HIGHWAY SECTIONS: Project 2: Km 355 – Km 440 Project 3.1: Km 315 – Km 355 Project 3.2: Turtkul Bypass - Km 581 – Km 628

Revised July 14, 2010

1. General Project Information

Project 1 – km440 to km490 Project 2 - km355 to km440 Project 3 - km315 to km355 Project 4 - Turtkul Bypass from km581-km626

This information brochure is prepared in order to help you. 2. Preparatory Actions for Land Acquisition for Public Needs

3. Project Timetable

4. Principles for Compensation and Rehabilitation

11. Principles for the compensation/rehabilitation of families affected by the Project:

5. Compensation Entitlements

Cash compensation equal to market value Sharecroppers of the lost harvest share once (temporary (registered or not) impact) or twice (permanent impact)

Cash indemnity corresponding to their Agricultural salary in cash and in kind for the remaining workers part of the agricultural year/or contractual losing their contract period.

1 rehabilitation allowance equal to 1 year's Non-titled net income from the affected land (in cultivators addition to lost crop compensation) for land use loss.

1 severe impact allowance equal to the net Sharecroppers income from their annual share of harvest (registered or not) lost (additional to standard crop compensation)

Unaffected portions of a plot will also be compensated if they become unviable after impact occurs.

Unaffected portions of the structure will also be compensated if they become unviable after impact occurs

Compensation of income lost as a result of the loss of the tenancy of houses, buildings and structures plus new lease Tenant/Leaseholder or cash compensation for the remaining period of the lease.

Cash compensation shall reflect income replacement.

Indemnity for lost wages for the period of business Worker/employees interruption (including fixed by oral agreement with employer) up to a maximum of 6 months.

6. Grievance and Redress Mechanism

Contact Details are below:

Khakimov Furkat, Deputy Mayor Ramitan district mayor’s office, Tel: 8365 552 12 32 SOME BASIC QUESTIONS RELATED TO THE IMPACTS COMPENSATION AND REHABILITATION PROGRAM FOR THE PROJECT

B. Does Compensation apply to your house or structures? Yes. New structures will be provided within existing boundaries, or at a new location, or compensation will be paid.

Community Consultants – Summaries, Minutes, Attendance Annex D REPORT

On FGD/Structured Interviews

Romitan district

Topic: "CAREC Corridor 2 Road Investment Program".

Attendees: 30 people, representatives of hokimiyat and its departments, organizations of city infrastructure, makhallas and health care organizations and education institutes (list is attached).

Date: August 5, 2010

Place: Romitan district hokimiyat

Facilitators: M.Bakhadirov and M.Shagazatova

Observer: N.Nurmukhamedov

Facilitator, M.Bakhadirov, opened the meeting and informed meeting’ participants about the project objectives and purposes of the meeting. He also provided information to major stakeholders about the household and road users’ surveys that were conducted to examine the socio-economic situation and issues rose concerning the road infrastructure and transportation services. Also problems that can arise for people due to the poor quality of the roads were also discussed.

The purposes of meeting and interviews were to identify:

1. The major problems related to the road and transport services, causes, consequences of the problems and proposals identified as a result of group work 2. Priorities of the investments in road sector development and transport service according to the needs of local stakeholders.

The following priorities for the Investments were identified through the group works and discussions:

Priority (in terms of number Code Areas of investment in water supply and sanitation of votes) 1 Rehabilitation of existing road 26 2 Construction of new roads 15 Improvement of facilities of bus stations and bus 3 14 stops for passengers 4 Increased frequency of public transport means 10 Improvement of public transport coverage/betther 5 7 routes 6 Improvement of road maintenance services 3 7 Improvement of road safety and security measures 3 8 Reduced Carbon emission 9 Key conepts identified as a result of discussions and voting were:

Rehabilitation of existing road Construction of new roads Improvement of facilities of bus stations and bus stops for passengers

Then meeting participants were divided into the major stakeholders groups.

Following groups were established:

1 group – Representatives of Local Governance

2 group – Representatives of Educational establishments.

3 group – Representatives of Healthcare sector

4 group – Representatives of Mahallas

Following Issues, their likely causes and the possible outcomes were presented by the groups:

Team 1 (Local Governance)

Issues:

Z Poor condition of existing roads. These roads, especially in country side, require being repaired. Z In some villages and rural localities, there are no roads designed for cars. At some places, access on car is hardly possible through dusty paths. Z The need for bus station – a common gathering point for busses that travel to several regional and/or other city desitionations. Z Existing bus stops need to be repaired.

Causes:

Z Poor treatment and irregular maintenance of existing roads. Z Distant location and limited population of some rural settlements. Z Transportation of passengers is carried out by private car owners who run the transportation process not in accordance with any location or time-table.

Effects:

Z Increased maintenance cost of vehicles due to poor condition of roads. Z Limited access to remote areas. Z Difficulty in organizing travel. Exessive time and money spent on transport. People have to arrange their trips with the bus drivers over the phone to determine the time and spot to join the bus on its route. Team 2 (Educational establishments)

Issues:

Z Absence of pavements specially designed for pedestrials alongside the roads Z Special roads signs - such as presence of children - are not in place nearby the schools and other education establishments. Z Poor quality of the gasoline sold. Z Absence of common bus station.

Causes:

Z Former road signs and marks were removed and not been replaced with the new ones Z Shortage and bad quality of fuel supplied and limited quality control mechanism of fuel supplying businesses.

Effects:

Z Increased risk and vulnerability of children attending schools and colleges to traffic accidents. Z Bad fuel results in increased transport mean maintenance costs and increased amount of carbon emissions. Z Difficulty in accessing buses due to unspecified travel schedule.

TEAM 3 (Healthcare sector)

Issues:

Z In addition to construction of new bus stops, already existing ones should be repaired so that it prevents passenders from direct sunlight exposure and wind. Z Lack of pavement side-walks for pedestrians. Z Increased amounts of CO2. Z Increasing rubbish thrown around the road by the road users. Z Roads are very narrow.

Causes:

Z Limited maintenance of roads as well as bus-stops or other near-road facilities over the last several years. Z Increasing number of cars and poor condition of old vehicles in terms of engines and fuel processing. Z In availability of garbage collection points across the road. Z Underdeveloped road use culture. Z Roads are designed several decades earlier, where the traffic flow was sufficiently less than what it is today.

Effects:

Z While waiting for transport means to arrive for long period, in summer, people are exposed to sun and heating which can result in serious health problems. Similar problem is applicable to winter’s cold climate as well, when excessive cold and precipitation may result in sicknesses such as cold and flu. Z Pedestrians are vulnerable to higher risk of road accident due to absence of pavement side-walks. Z Increased level of carbon emissions and other gases processed by vehicles may lead to various allergic and oncological deseases. Z Due to transport issues student and adults are suffer being late for their duties and from spending large portion of their time on road. Z There are piles of ash accumulated across the road at some sections initiating the spread of infections and threatening the ecology if burned. Z During emergency cases or when patient suffers serious health problems, late hospitalizating the patient, due to extra time spent on road, can lead to serious consequences.

GROUP 4 (Mahallas)

Issues:

Z Condition of existing roads need to be improved. Z There are no direct routes to market and medical college; some towns and/or districts all are accessible via Bukhara city only. Z Presence of number of illegally built temporary entities at very close distance to road carrying trade activities and/or serving food to road users are increasing the risk of having trtaffic accident on that particular section of road. Z Absence of companies owned and regulated by the state, providing transportation services across several localities within and among districts. Z Limited quantity of bus-stops and poor condition of its construction

Causes:

Z Distant maintenance of some road sections, particularly the inner roads Z Shops, food serving establishments and/or other structures are located close to road causing risk of accidents due to narrow width of road and absence of specially designed appendices to roads for such shops.

Effect:

Z The risk of the road accidents and injuries happening. Z Increasing time spend and money on the road. Z Traveling by public transport means which serve big number of population are not comfortable. Z Inconvenient and difficult routes.

PROPOSALS:

Local Governance:

Building new bus-stops, repairing the existing ones. Establishment of common bus station, unified for buses traveling across all routes. Allocation of additional funds at local administration for rehabilitation of existing roads. Construction of smaller linking rural settlements to major roads.

Mahalla proposals:

Reconstruction of existing roads with the expansion of the corridor width. Ensuring the renewal of road security measures, signs and traffic lights. Assigning separate areas for structures located at too close distance to road. Compulsory construction of special parking slots next to every food serving establishments

Education group proposals:

Construction of common bus station. Reconstruction of bus-stations. Impose better control over the gas-station to improve the quality of fuel sold. Replacement of road signs and special marks at near-school roads.

Proposals of Healthcare institutions:

Increasing number of bus-stops by additionally building new ones. Repairing existing bus-stops in accordance with construction norms and procedures and subject to climate conditions. Constuction of new roads should maintain construction of side-walks as well. Strict control of vehicles on CO2 emission should apply. Increasing awareness among the road user on the norms of road use. Uzbekistan: CAREC Corridor 2 Road Investment Program Romitan District August 5, 2010 List of participants In-depth/Structured interviews Contacts Name Organization/position Signature (phone/address) 1Tursunova Muhayoy Secretary of Zarafshon Mahalla committee 55-2-26-93 2 Ochilova Nadejda Methodologist at department of culture 55-2-11-58 3 Hotamova Nafisa Secretary of Navoiy Mahalla committee 55-2-22-17 4 Nafasov Otabek Volunteer at Navoiy Mahalla 590-74-98 5 Mavlonov Zohirbek Specialist of national bureau of cadastre of Romitan district 303-10-34 6 Sharipova Umida Secondary school 3 775-08-36 7 Fazilova Elmira Secondary school 3 458-2042 8 Saidmurodova Nilufar Secondary school 3 55-2-31-62 9 Juraeva Sitora Children's polyclinic/nurse 55-2-13-15 10 Bakhadirova Malikabonu Children's polyclinic/nurse 55-2-32-68 11 Atoeva Feruza Children's polyclinic/nurse 55-2-35-81 12 Fatullaeva Zarnigor Children's polyclinic/nurse 55-2-19-68 13 Narzieva Sitora Children's polyclinic/nurse 593-42-12 14 Tojieva Rano Children's polyclinic/nurse 127-37-31 15 Ahrorova Madina Children's polyclinic/nurse 733-91-16 16 Bafoeva Nigina Children's polyclinic/nurse 683-91-88 17 Togaeva Zulfiya Central polylinic/nurse 55-224-33 18 Sohibova Dilorom Central polylinic/nurse 55-2-32-57 19 Kenjaeva Shahodat Central polylinic/nurse 55-215-38 20 Shodieva Shahnoza Central polylinic/nurse 55-2-38-70 21 Savurova Sarvinoz Central polylinic/nurse 778-58-78 22 Safarova Feruza Children's polyclinic/nurse 327-27-77 23 Jamolova Gulbakhor Children's polyclinic/nurse 129-36-59 24 Asrorova Zarnigor Children's polyclinic/nurse 626-56-21 25 Asadova Zukhra Children's polyclinic/nurse ------26 Rasulov Navruz Hokimiyat of district 55-2-13-05 27 Atoev Ulugbek Head of labor union 55-2-12-89 28 Sharipova Nargiza Diagnostics center 55-2-1538 29 Safarova Zebuniso Sanitation and epidemiology center 55-2-25-79 30 Khudoykulova Mokhigul Diagnostics center 450-46-09 Annex E

Legal Summaries Annex E ADB Resettlement Policy

A. Objectives

1. 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.

B. Scope and Triggers

2. 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.

C. Policy Principles

3. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

4. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

5. Improve, or at least restore, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

6. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 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. 7. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

8. 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.

9. 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.

10. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

11. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

12. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

13. 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. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan 97 dated 29.05.2006 “On order of compensation of citizens and legal entities losses due to their land plots acquisition for state and public needs”

Point 2: of the Resolution. Land or it’s part is resumed for the state and public needs only by the consent of or agreement with the land owner, tenant by the decision of district or city mayor, Council of Ministers of the Republic of Karakalpakistan, regional mayor offices and Cabinet of Ministers of the Republic of Uzbekistan and Tashkent city mayor.

Point 6: Illegally constructed houses, buildings and structures are not subject to compensation.

Point 7: In case of land allotment of the resumed land to enterprises, organizations and entities the payment of compensation, provision of houses (flats) and provision of temporary houses as well as full coverage of relocation costs are done by these entities, organizations and enterprises.

Point 9: District mayor office creates commission which defines the amount and type of compensation for demolished houses (flats), buildings, structures and plantations. The commission is headed by the district deputy mayor and consists of the following members: representative of financial and other departments of the mayor office, state inspector on monitoring over land usage and protection, representatives of mahalla committees, land owner (land user, tenant) whose land is resumed, representatives of the entities, organizations and enterprises whom the land plot is allotted and other representatives at mayor offices discretion.

Point 10: Technical status valuation of houses, buildings and structures and definition of plantations value on the resumed land is done by the district department on land resources and state cadastre at the expense of applicant. At landowners discontent with cadastre’s valuations he/she can apply to independent licensed valuers. The independent valuer’s service payment is done by the applicant.

Point 12: All construction materials left after demolishing of houses, buildings and structures (except unauthorized ones) on the resumed land plot will go to constructor or landowner paying full compensation for the owner. In separate cases the construction materials can be given to the owner of the demolished houses, buildings and structures at his/her will and by the decision of relevant district (city) mayor. In this case the commission must define the value of the construction materials at market prices taking into consideration depreciation.

Point 13: Exact dates and order of compensation payment is defined by the decision of the Council of Ministers of the Republic of Karakalpakistan, regional and Tashkent city mayors with payment of compensation prior to demolishing. Relevant Legal Codes of the Uzbekistan

1. Land Code of Republic of Uzbekistan (2003).

1. According to the Article 16 of the Land Code of the Republic of Uzbekistan, land is a state property, and considered to be national wealth and protected by the state.

2. Article 17 provides rights of legal entities and individuals for land plots on the basis of constant possession, constant and temporary use, lease and property.

Compensation allocated under such circumstances will be paid by the offending enterprises, organizations and agencies, to the owners/users that use the affected plots.

2. Civil Code (1996/1997).

3. Compensation Valuation Methods in Uzbekistan

ADB Resettlement Policy RU Law Remarks/Resolution

National legislation does not provide for public consultation. DP’s are involved in discussions DP’s should be involved in with Oblast and Government meaningful consultation This RP provides for meaningful officials consultation and extensive information dissemination.

Preference will be given to land- Since the Land is owned by state, based resettlement strategies for Land code does not recognize Practice is in conformance. displaced persons whose individual ownership of land, but livelihoods are land-based. only permits use of land.

Non-titled land users will receive Lack of title should not be a bar to either rehabilitation assistance equal compensation or rehabilitation. People apply for registration for a to the land improvements they have secured tenure to relocation land. particular land use. undertaken after they register it accordingly at Project cost; or, Untitled land owners are eligible for Untitled land use is ineligible for compensation for improvements to compensation Equivalent land titled similar to those the land, at full replacement cost. with title.

All houses/buildings are All buildings compensated at current All houses/buildings/shops which compensated for damage or replacement cost (not market value). are registered under Land Code demolition caused by a project are valued at the respective irrespective of the status of formal Unregistered buildings will be regional / district level. title. registered at project cost, prior to compensation Unregistered buildings are not liable for compensation

Prompt replacement of assets with All buildings are compensated at better housing at resettlement sites current replacement cost (not market with comparable access to Buildings are compensated at value). employment and production replacement value. opportunities. 100% of payments to be made prior Payments are not made during to resettlement. Pay compensation and provide construction other resettlement entitlements Resettlement to be completed prior to before physical or economic road construction beginning. displacement.

Titled and non-titled owners will Crop losses compensation to be Construction waits for harvest. If receive full compensation for all provided to landowners and unable to wait then crops are losses of trees and standing crops. sharecroppers/lease tenants compensated. No compensation whether registered or not. unless titled land Untitled land will be registered at no cost to allow compensation to be paid.

A commission will assess value of All losses are at replacement cost – in DPs should be compensated for all agricultural land; loss of crop/tree the case of land, crops, trees etc this their losses at replacement cost. . income; and market value for is based on prevailing market rates. lands appropriated ADB Resettlement Policy RU Law Remarks/Resolution

In compliance. All LAR activities, compensation, finalization of DPs should be timely Compensation will occur prior to relocation, construction of compensated. construction of works replacement assets will occur prior to construction.

The DPs should be compensated and/or assisted, so that their RU law has social policies for all ADB Policy is followed using economic or social future is citizens. No specific policy livelihood allowances and generally as favorable as it would directed at DP’s income/social restoration activities have been without the Project.

Where fees and taxes have been charged due to initial project Assess past and current involuntary Only the current IR situation is preparation (such as title and resettlement risks assessed, whether legal or not. registration charges), these will be repaid by the project following formal application to grievance committee

Pay particular attention to vulnerable groups especially those The LARP and GAP will include below the poverty line, the landless, All DP’s are treated equally under schemes and benefits targeted at the elderly, women and children, Uzbek Law vulnerable groups. and Indigenous Peoples, and those without legal title to land

Establish a grievance redress Resettlement has a standard mechanism to receive and facilitate mechanism to address Conforms. resolution of the affected persons’ grievances. concerns.

Support the social and cultural The RP will ensure that kinship institutions of displaced persons Social and cultural institutions are groups, social facilities and cultural and their host population. provided for under normal RU institutions are maintained throughout Provide civic infrastructure and planning LARP implementation. community services, as required.

Provide DP’s with transitional support and development The proactive policy of the ADB will assistance, such as land No specific policy. Covered under be followed where possible with development, credit facilities, RU social policies activities contained in the GAP. training, or employment opportunities.

Improve the standards of living of RU policy relates to compensation . ADB policy is to ensure that all DP’s the displaced poor and other only. Living standard improvement are brought up to minimum standards vulnerable groups, including applies to all citizens. DP’s are not through the project. This relates to women, to at least national specifically targeted land, housing and livelihood. minimum standards. ADB Resettlement Policy RU Law Remarks/Resolution

Develop procedures in a transparent, consistent, and equitable manner. Policies are in conformance. RU policy ensures that all negotiations are conducted in an Ensure coercion or power Monitoring will ensure that these equitable and transparent manner differentials do not adversely policies are followed. impact DP’s negotiations or grievances

Retain qualified and experienced If project has significant impacts external experts or qualified NGOs (>200 people displaced), external to verify monitoring information for All monitoring to be undertaken by monitoring will be incorporated to projects with significant impacts PMU safeguards team as well as verify LARP progress. and risks. by safeguard team in the Construction Supervision PMU Safeguards Team will provide Implement the resettlement plan Consultants close supervision of LARP throughout under close supervision throughout implementation. project implementation.

If a project has significant adverse impacts (>200 persons permanently resettled) a detailed management Normal IR processes apply. No A full LARP with detailed plan to restore the livelihood of difference with significant adverse management plans will be developed affected persons to at least pre- impacts if project impacts are severe. project level or better will be prepared

If project is significant, the borrower/client will prepare a LARP will be updated upon final supplementary resettlement plan, No LARP is normally required. No design and incorporation of final field or a revised resettlement plan, additional plans are required review and submitted to ADB prior to and will submit it to ADB for review resettlement occurring. before any contracts are awarded.

Project implementation in areas where there is resettlement will not Project implementation can NOT Policies are in conformance. proceed until detailed planning take place prior to full LAR being documents are formulated, completed disclosed and approved.

Monitor and assess resettlement outcomes, their impacts on the No monitoring of livelihoods of DP LARP includes a detailed monitoring standards of living of displaced is undertaken plan persons.

ADB Policy is followed. DP’s will not be subject to any fees Untitled/unregistered owners (registration, title) or transfer costs receive no compensation or are Any DP’s charged fees because of due to the project or LAR activities charged fees to register land prior the project will be reimbursed if to IR demonstrated through the Grievance Procedure. ADB Resettlement Policy RU Law Remarks/Resolution

Law indicates that Rayon LARC Rayon LARC will determine valuation DP’s will not be subject to any fees responsible for setting unit costs based on unit costs. (valuation) for their property due to and valuations at their own cost. the project or LAR activities If DP does not agree, DP to pay If DP’s disagree with valuation, RRF for an independent valuation. will pay for independent valuation. Annex F

Additional map (Gazly city baypass scheme and Google map with DPs on )

Resettlement Planning Document Project 3.2: Km 581 – Km 628

Project Number: TA 7375-UZB

October 2010 ver.3a

UZBEKISTAN: CAREC Corridor 2 Road Investment Program

Prepared by the Uzbekistan Republican Road Fund Under the Ministry of Finance of Uzbekistan For the Asian Development Bank (ADB).

TABLE OF CONTENTS I. Executive Summary ...... 1 A. Project Scope...... 1 B. Summary of Impacts ...... 1 C. Entitlements ...... 3 II. Project Description ...... 4 A. General Description ...... 4 B. Description of Project 3.2 - A380 Highway between Km581 and Km626.2 ...... 5 C. Alternatives Considered ...... 6 III. Scope of Land Acquisition and Resettlement ...... 8 A. Potential Impacts ...... 8 B. Scope of Land Acquisition ...... 9 C. Scope of Structural Losses ...... 10 D. Scope of Crop Losses ...... 10 E. Scope of Resettlement ...... 11 F. Impact on the Vulnerable ...... 12 G. Severe and Significant Impacts ...... 13 H. Summary of Key Impacts ...... 14 IV. Socioeconomic Information and Profile ...... 15 A. Poverty and Socio-Economic Assessment (PSA) ...... 15 B. Project Census ...... 18 C. Gender and Ethnic Minority Issues ...... 21 V. Information Disclosure, Consultation, and Participation ...... 22 A. Project Stakeholders ...... 22 B. Information and Consultation Mechanisms ...... 22 C. LARP Preparation ...... 23 D. Summary of Project Consultations ...... 25 E. Further Information Disclosure ...... 25 VI. Grievance Redress Mechanisms ...... 27 A. General Principles ...... 27 B. Grievance Coordination...... 27 C. Grievance Procedures ...... 27 VII. Legal Framework ...... 29 D. Relevant Provisions for Involuntary Resettlement in Uzbekistan ...... 29 E. ADB’s Policy on Involuntary Resettlement ...... 29 F. Comparison of Uzbek and ADB IR Laws, Regulations and Procedures ...... 31 G. Actions Made to Address the Gaps...... 31 H. Principles and Policies for the Project ...... 32 VIII. Entitlements, Assistance and Benefits ...... 34 A. Entitlements to Compensation...... 34

IKS GROUP OF COMPANIES iTASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. Formalization of Title/Registration ...... 34 C. Calculation of Compensation ...... 34 D. The Valuation Process...... 42 E. Entitlements Matrix...... 42 IX. Relocation of Housing and Settlements ...... 46 X. Income Restoration and Rehabilitation ...... 48 A. Special Assistance to Vulnerable Groups ...... 48 B. Opportunities to derive development benefits...... 49 XI. Resettlement Budget and Financing Plan ...... 51 A. Responsibilities ...... 51 B. Budget Summary ...... 52 XII. Institutional Arrangements ...... 53 A. Republican Road Fund (Road Fund) – PMU ...... 53 B. Design Institute (DI) ...... 53 C. Regional and District SCLRGCSC ...... 53 D. Province/District Governments ...... 54 XIII. Implementation Schedule ...... 56 A. Pre-Resettlement Activities ...... 56 B. Implementation Phase ...... 57 C. Post Resettlement Implementation Phase ...... 57 XIV. Monitoring and Reporting ...... 59 A. Internal Monitoring ...... 59 B. External Monitoring ...... 60

IKS GROUP OF COMPANIES ii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Tables

Table 1: Summary of Displaced Persons ...... 2 Table 2 : Severe Impacts ...... 2 Table 3: LAR Entitlement Summary ('000 Sum) ...... 3 Table 4 : Summary of Impacts ...... 9 Table 5 : Summary of Structural Losses ...... 10 Table 8 : Summary of DP Impacts ...... 12 Table 9 : Vulnerable Households ...... 12 Table 10 : Severe Impacts ...... 13 Table 11: Summary of Displaced Persons ...... 14 Table 12: Income and Expenditure ...... 17 Table 13: Ethnicity in Project Area ...... 17 Table 14: Comparison of DP Census with Project Area Survey ...... 18 Table 15 : Summary of DP Impacts ...... 19 Table 16 : Population Data ...... 19 Table 17: Socio Economic Data – Households ...... 19 Table 18: Education - Highest Level Achieved ...... 20 Table 19 : Occupation (Total Adults) ...... 20 Table 20: Average Monthly Income (‘000 Sum) ...... 21 Table 21: Grievance Resolution Process ...... 28 Table 22 : Land Required for Project 3.2 ...... 35 Table 23 : Land Preparation Costs – Project 3.2 ...... 35 Table 24: Business and Worker Compensation ('000 Sum) ...... 36 Table 26: Calculation of Compensation for Structures (‘000 Sum) ...... 37 Table 27: Compensation for Crop Losses ('000 Sum) ...... 39 Table 28 : Community Asset Costs ...... 42 Table 29: Entitlement Matrix ...... 43 Table 31 : Other Costs (‘000 Sum) ...... 50 Table 32: LAR Entitlement Summary ('000 Sum) ...... 52

IKS GROUP OF COMPANIES iii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Annexes

A Census and Socio Economic Survey Forms B List of Displaced Persons C Information Brochure D Community Consultations - Summaries, Minutes, Attendance E Legal Summaries F Detailed Compensation Table – All DP’s G Detailed Agricultural Compensation Calculations H Additional Maps

Abbreviations

AB Affected Business AC Asphaltic Concrete ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome APs Affected Persons CAREC Central Asia Regional Economic Cooperation CoM Council of Ministers CSS Country Safeguard System D/PLARC District/Provincial Land Acquisition and Resettlement Commission DI Design Institute DP Displaced Person EA Executing Agency EMA External Monitoring Agency EMP Ethnic Minority Plan (See IPP) FGD Focus Group Discussions GAP Gender Action Plan GFP Grievance Focal Point GRC Grievance Redress Committee Ha Hectares HH Households HIV Human Immunodeficiency Virus IA Implementing Agency IMA Internal Monitoring Agency IPP Indigenous Peoples Plan ISA Initial Social Assessment Km Kilometre LAR Land Acquisition and Resettlement LC Land Code MFF Multi-Tranche Financing Facility PMU Project Management Unit PSA Poverty & Socio-Economic Assessment RP Resettlement Plan RRF / RF Republican Road Fund under Ministry of Finance of Uzbekistan

IKS GROUP OF COMPANIES iv TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

RU Republic of Uzbekistan SES Socio-Economic Survey SPS Safeguard Policy Statement SRP Short Resettlement Plan TA Technical Assistance USD United States Dollar Uzbekistan Republic of Uzbekistan

IKS GROUP OF COMPANIES vTASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

CURRENCY EQUIVALENTS (as of August 31, 2010) Currency Unit – sum (SUM) SUM1.00 = $0.00065 $1.00 = SUM1,613

NOTE In this report, i. "$" refers to United States dollars (USD) ii. Sum refers to Uzbekistan Sum

IKS GROUP OF COMPANIES vi TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Glossary of Terms Term used to describe all people that are affected by the project impacts. In the context of a Affected LARP it refers to those that are economically or physically displaced by the project. It is Persons increasingly being replaced by the term “Displaced Person” following ADB Safeguard Policy 2009 – but is still in common use in the field. Means payment in cash or kind for an asset to be acquired or affected by a project at Compensation replacement cost at current market value. Means the date after which people will NOT be considered eligible for compensation i.e. they Cut-off-date are not included in the list of APs as defined by the census. Normally, the cut-off date is the date of the detailed measurement survey. Sometimes referred to as Affected Persons (APs). In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, Displaced or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, Persons 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. Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of Economic (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to Displacement legally designated parks and protected areas.

Mean those people who move into the project area after the cut-off date and are therefore not Encroachers eligible for compensation or other rehabilitation measures provided by the project. means the range of measures comprising cash or kind compensation, relocation cost, income Entitlement rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration which are due to APs, depending on the type and degree nature of their losses, to restore their social and economic base. Inventory of Means the pre-appraisal inventory of assets as a preliminary record of affected or lost assets. losses

Land Means the process whereby a person is compelled by a public agency to alienate all or part of acquisition the land s/he owns or possesses, to the ownership and possession of that agency, for public purposes, in return for fair compensation. A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is Meaningful undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and Consultation responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. means those who have no recognizable rights or claims to the land that they are occupying Non-titled and includes people using private or state land without permission, permit or grant i.e. those people without legal title to land and/or structures occupied or used by them. ADB’s policy explicitly states that such people cannot be denied compensation. Official government statistics for share of people living under poverty line is not available. The method used to determine poverty, was based on the World Bank's under 2.15 $ per person Poor per month measure. This figure was calculated with respect to climate conditions and other set of factors. The local equivalent was calculated based on the official exchange rate.

Physical Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition Displacement of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Replacement Means the method of valuing assets to replace the loss at current market value, or its nearest cost equivalent, and is the amount of cash or kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged.

Significant means 200 people or more will experience major impacts, which are defined as; (i) being impact physically displaced from housing, or (ii) losing ten per cent or more of their productive assets (income generating). means any people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and includes; (i) female-headed households with dependents; Vulnerable (ii) disabled household heads; (iii) poor households (within the meaning given previously); (iv) landless; (v) elderly households with no means of support; (vi) households without security of tenure; (vii) ethnic minorities; and (viii) marginal farmers (with landholdings of five acres or less).

IKS GROUP OF COMPANIES vii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS GROUP OF COMPANIES viii TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

I. EXECUTIVE SUMMARY

(i) Contract awards for Civil Works construction will be approved only after the RP has been reviewed and confirmed/amended following final detailed design.

A. Project Scope

4. Project 3.2 comprises the new alignment and construction of a 2 lane asphaltic concrete (AC) road section between KM581 and Km628 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the scheme of the designed road. More detailed maps of high population areas along the route are contained in Annex H.

B. Summary of Impacts

5. The proposed road realignment will impact 500 people in 74 households. 58 Households are considered to be vulnerable (either poor, containing disabled or elderly members or female-headed). There are 270 people in 44 households who are considered to be severely impacted, losing 10% or more of their productive assets. 280 people in 47 households are significantly impacted due to losing either their residence or more than 10% of their productive assets. Table 1 summarizes the key impacts of the project.

IKS GROUP OF COMPANIES 1 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1: Summary of Displaced Persons People HH's Entities Farms 212 23 Households 274 59 Household Business 4 1 Business 10 4 Total DP’s 500 74 Total People Male 260 Female 240 Physically Displaced Male 65 Female 60 Total Physically Displaced 125 22 Vulnerable Below poverty 279 44 Female Headed 68 13 Elderly 253 29 Disabled 49 8 Total Vulnerable* 411 58 Severely Impacted* 270 44 Significantly Impacted* 280 47 * - without double counting

6. Significant Impacts - The involuntary resettlement impacts of an ADB-supported project are considered significant if 200 or more persons 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). Table 2 outlines the number of households who have one or both of the impacts described. A total of 47 households, containing 280 people face significant residential structure or productive asset loss due to the construction of the road. Project 3.2 is considered to have significant impacts.

Table 2 : Severe Impacts Losing Asset Loss Significant Category Residence >10% Impact* HH DP HH DP HH DP Farm --318318 Household 21 121 41 252 43 258 HH Business 14 - -1 4 Business ------Total 22 125 48 270 47 280 * Without double counting

IKS GROUP OF COMPANIES 2 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Entitlements

7. The complete budget for LAR activities on Project 3.2 is shown in Table 3. It indicates a total budget of 1,637,618,000 Sum or US$1,015,262.

Table 3: LAR Entitlement Summary ('000 Sum) ‘000 Sum US$ Land Preparation Costs* 1,578,200 978,424

Compensation Business Loss 2,010 1,246 Worker Compensation 1,800 1,116 Structural Loss 812,564 503,759 Agricultural Production 455,761 282,555 Community Assets (Utilities etc)** 3,848,340 2,385,827 Community Assets (School Toilet and fencing) 8,240 5,171

Support for Vulnerable Households Livelihood Allowance 69,609 43,155 Relocation Allowance 3,840 2,380 Severe Impact Allowance 62,400 38,686 Salary Support 00

Sub- Total (PMU Costs only) 1,488,744 922,966

Contingency (10%) 148,874 92,297

Total 1,637,618 1,015,262 *Land preparation cost will be covered by Social Infrastructure Development program of the district mayor’s office. **Community Assets (utilities etc) cost have already been included into the cost of the road. ***Costs will be covered by the Procurement and Safeguard consultants’ package of the project which’s been already identified. ****Funds for this have already been envisaged.

IKS GROUP OF COMPANIES 3 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

II. PROJECT DESCRIPTION

8. This section provides a general description of the project, its components and the alternatives considered to avoid or minimize resettlement.

A. General Description

9. The Project Road section 3.2 is part of the Multi-Tranche Finance Facility for Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program.

1. Background

11. The proposed investment program targets the Uzbekistan section of CAREC Corridor 2 - the A380 highway, which connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. Another highway investment now under preparation in Kazakhstan (supported by the Asian Development Bank [ADB]) will connect Beyneu (a town on the border with Uzbekistan) with Uzbekistan’s A380 highway and the port of Aktau in the Caspian Sea. The two highways, when completed, will provide Uzbekistan and other Central Asian countries direct access to the Caspian Sea, and thereafter to South Asia and the Black Sea (via road corridors being built in Armenia, Azerbaijan, and Georgia). The investment program has strong links to CAREC Corridor 6, which reaches the so-called Ring Road in Afghanistan and thereafter the main ports in Pakistan and Iran.

13. A National Road Development Program for 2009–20142 has been prepared. It is consistent with the sector strategy and road map and is estimated to cost $2.6 billion - of which $1.5 billion is directed at the A380 highway. The investment program will contribute to this program. Other investments cover rural and urban roads. The investment involves mainly the reconstruction of existing networks, although some green field projects are also envisaged.

14. The proposed investment program will have an impact on sustainable economic development. The outcome will be better transport connectivity and efficiency, and institutional effectiveness.

2. The Uzbekistan CAREC 2 Project

1 ADB. 2008. CAREC Transport and Trade Facilitation Strategy and Action Plan. Manila. 2 Resolution of the President of the Republic of Uzbekistan PP-1103 dated 22 April 2009.

IKS GROUP OF COMPANIES 4 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

16. The investment is split into three separate projects.3

18. Project 2 comprises approximately 85 km reconstructed section of the A380 highway (between Km355 and Km440) and procured road construction and maintenance equipment.

19. Project 3 comprises 2 sections – the first is approximately 40 km reconstructed road section of the A380 highway between Km315 and Km355. The second section is the construction of 47 km of a new alignment between Km581 and Km626.2 bypassing the towns of Turtkul, Beruniy and Buston. The project will also strengthen logistics by improving cross- border facilities and shortening the cross-border processing time. This project will also expand the community development program and institutional capacity.

20. This document relates to the land and resettlement preparation activities for Project 3.2 – the reconstruction of the A380 Highway between Km581 and Km628.

B. Description of Project 3.2 - A380 Highway between Km 581 and Km 626.2

21. Project 3.2 comprises the new alignment and construction of a 2 lane asphaltic concrete (AC) road section between KM581 and Km628 into a new 4 lane, grade separated, dual carriageway, concrete pavement. The design has allowed for regular turning areas across the separating grade. Map 1 outlines the location of Project 3.2 within the overall CAREC 2 Project. More detailed maps of high population areas along the route are contained in Annex H.

22. Instructions from the Road Design Institute (DI) indicate that the road pavement and shoulder will be 25m wide. The majority of the dual carriageway will also comprise an easement of 7m along each side of the road. Specific section drawings provided by the DI (such as in turning areas and curves) allow for a 30-50m easement.

23. The proposed new highway deviates north into the desert from the existing A-380 at Km582, avoiding Turtkul city. The road then begins to head west, predominantly through farm land and low density population areas; further avoiding the built up areas of Buston and Beruniy. The ADB-funded portion of the new alignment ends at Km626.2. The final 40km of road, reconnecting it to the A380 will be funded completely by Uzbekistan. This will require a due diligence LARP to be prepared by the Road Fund to ensure that the associated project also complies with ADB policy.

IKS GROUP OF COMPANIES 5 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Alternatives Considered

24. The DI has designed the proposed highway within the constraints of several criteria.

26. International Gas Pipeline – The existing Uzbekistan international gas pipeline corridor is near the new alignment. It is a significant high-value asset. The new road alignment avoids the easement ensuring that it minimizes any expense or complications that may be encountered. The design institute indicates that the current road alignment in this section (km594-608) was negotiated over 10 years ago during construction of the gas pipeline, and is unable to be altered in any way.

27. Train Lines – Design criteria indicate that level crossing at train lines must be between 90 and 110o. There are two crossings on the proposed alignment. The designers have incorporated curves in the design (minimum radius 3000m) to ensure this criterion is achieved.

28. Other Key Infrastructure – The proposed road design tries to avoid all significant telecom, water supply, water canal, electricity, check-point and cell-phone infrastructure where possible. Where this has been impossible to avoid, plans are in-place for all assets to be restored to before-project status during construction.

29. Environmental Concerns – such as wetlands have been avoided where possible due to their environmental value, and the cost of construction.

30. Existing Businesses and Households – Where possible, businesses, households and temporary structures have been avoided in the designs provided by the DI. This follows existing Uzbekistan Law that requires the minimization of all impacts. Given the significant criteria that the DI has to consider already – pavement, corner radius, railway, gas pipeline etc. – some impacts on private assets have been unavoidable. These will be the subject of this Land and Resettlement Plan (LARP).

31. Sight Lines – The design institute has designed curved sections with a standard 100 meter corridor to allow for enhanced sight lines for motorists. In order to minimize impacts however, they have revised sections through areas with significant household numbers to a design minimum, ensuring that there is adequate safety and minimum household impact.

32. Map 2 outlines the three alternatives considered by the Design Institute.

IKS GROUP OF COMPANIES 6 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Map 2. Three options considered by the Design Institute

IKS GROUP OF COMPANIES 7 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

33. This section discusses the projects potential impacts, the scope of land acquisition and summarizes the key effects in terms of assets acquired and displaced persons.

34. The project cut-off date was established on the 19th July. It was advertised in the local newspaper and communicated to all potential DP’s and local mahallas. This means the any improvements, additional infrastructure constructed, or new DP’s settling into the area after this date will NOT be considered eligible for compensation i.e. they are not included in the list of DPs as defined by the census.

A. Potential Impacts

35. The realignment of the road corridor will result in a number of impacts on existing private assets. Furthermore, the addition of wider sections to accommodate numerous curves and other design criteria, have added to the impacts. Nonetheless, impacts have been minimized.

36. The census of impacts was undertaken over the period 19th-25th July, 2010 – following the project cut-off date of 19th July. Impacts were assessed based on drawings provided by the Design Institute. Road corridor widths were indicated in pen on the supplied drawings and confirmed by the RRF following a letter from the appraisal consultants on 10th July. This indicated that all corridor widths were to comprise a 28m road (pavement, verge and embankment) and an easement of a further 7m on either side. Sections that would require a 100m corridor easement, such as curves, were outlined in the letter. A further clarification by the DI on 25th September reduced the design width on certain curves. The impacts outlined in this LARP are based on this final information.

37. Apart from the private land that is to be acquired, there are a few other impacts to be considered.

1. Abandoned Structures

38. There are several abandoned structures without occupants or title that will be removed during project construction. They are generally dilapidated mud brick construction, missing windows and roofing, and with no floors. They have not been included in the LAR list.

2. Bus Shelters

39. There are at least 3 bus shelters that will be demolished during project construction. These fall within the scope of public assets (such as parks, canals, power and telecom lines) and will be replaced during construction. The provision of additional shelters and associated public transport infrastructure is included in the project proposal.

3. School

40. There is one school that lies within one of the curves where there is an indicative 100m easement. Although final design may obviate the need for any major impact, currently 2 toilet blocks and a shed will require demolishing and 2.3 Ha of land will be resumed. The school is only a few years old and adjoins unused land where replacement buildings could be constructed.

41. The toilets will be rebuilt elsewhere on the school grounds prior to demolishing, to avoid interruption. Additional safety measures will be put in place such as fencing, road crossings and bus shelters. A tree planting program will be funded by the project, and implemented by the school community to provide a green barrier between the school grounds and the road.

IKS GROUP OF COMPANIES 8 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. Scope of Land Acquisition

42. Apart from the impacts listed earlier, the road corridor will permanently affect 23 farms, 47 households, household business and 4 businesses. The design institute indicates that there will be no temporary impacts on private land – confining all construction to within the corridor and to desert areas. Table 4 summarizes the land impacts of the proposed project.

Table 4 : Summary of Impacts Asset Household Land Losing Significant Loss Category Residence >10% Impact* HH DP's Total Acquire % HH DP HH DP HH DP Farm 23 212 2,587.9 77.8 3% - - 3 18 3 18 Household 47 274 32.1 11.1 35% 21 121 41 252 43 258 HH Business 14 - - -14--14 Business 4 10 0.9 0.2 22% ------Total 75 500 2,620.9 89.1 3% 22 125 48 270 47 280 * Without double counting

1. Farms

43. The proposed road will be constructed across 23 farms, comprising 212 people. A total of 77.8 Ha of land will be acquired. Three (3) farms are losing more than 10% of their land. No farms will lose any of their structures or houses. Therefore a total of 3 farms (18 people) will be significantly impacted.

44. Generally the farms comprise cotton or wheat crops. Only 1 farm contains mulberry trees for silk worms. Wind break and construction trees will be lost along many fence lines and will require replanting. Numerous canals and irrigation channels will be crossed and require piping or bridges to restore agricultural flows.

2. Households

45. The proposed road will be constructed across 47 household plots comprising 274 people and requiring 11.1 Ha of land. Some householders land is untitled, and will require formalization prior to transfer.

46. Twenty-one (21) households, containing 121 people, will lose their primary residence. Forty-one (41) households, comprising 252 people, will lose more than 10% of their assets. Without double counting, a total of 43 households (258 people) will therefore be significantly impacted.

47. Household plots mainly comprise a residential structure, one or more sheds and a plot of land for small-scale, subsistence agricultural production. The plots mainly comprise small rice paddies, with significant areas also being devoted to vegetable, fruit and forage (for animal) production. Wind break and construction trees will be lost along many fence lines and will require replanting through proposed community tree planting schemes under the environmental safeguards plan. Numerous irrigation channels will be crossed and require piping or bridges to restore agricultural flows.

48. Viability - In many cases, plots will be cut in half, or lose a significant percentage of total land. This may make them unviable. Under the LARF entitlements, unviable plots will

IKS GROUP OF COMPANIES 9 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT require 100% acquisition. However, unviable portions of land also can be combined and used in restoring other parcels. This “jigsaw” is still being assessed by the District LARC’s in consultation with the DP’s. Until that time, this LARP only assesses total land lost through construction.

3. Household Business

49. There is 1 business that is also the primary residence of the owner and her family (total 4 members). Their structure will be completely demolished. There is no additional land, with the total land comprising only the building footprint (0.03Ha). This household will be significantly impacted due to loss of residence and more than 10% of productive assets.

4. Businesses

50. A total of 4 businesses will be affected by the proposed road – 2 fuel stations and 2 non-operating, partially demolished shops. The fuel stations will only have land impacts and lose 0.05 Ha between them – minimally affecting the large parking area in front of the stations themselves. Both shops will be completely destroyed. A total of 0.2 Ha land will be resumed from the 4 businesses. No business will lose its residential structure. No business will suffer greater than 10% loss of its productive assets - two are non-operational (have never operated); and the land resumed in the gas stations is the access driveway from the highway and does not affect business productivity.

51. Workers - A total of 2 workers will have their employment interrupted during resettlement of the businesses.

C. Scope of Structural Losses

52. A total of 22 houses, 25 cow sheds, 11 other buildings, and 2 business structures will be completely removed due to the proposed road construction. These structures belong to 24 separate households comprising 135 people. A summary of structural losses is shown in Table 5.

Table 5 : Summary of Structural Losses Structural Loss Category Primary Secondary Total M2 M2 DPs M2 Farms ------Households 21 5,587 36 4,132 21 121 9,719 HH Business 1153- - 1 4 153 Business - - 2 270 2 10 270 Total 22 5,740 38 4,402 24 135 10,142 * - without double counting

53. Viability - The totals do not include households that may become unviable due to loss of their subsistence land plots, as they may be able to be allocated land from adjoining properties by the District LARC.

D. Scope of Crop Losses

54. The proposed road will affect a number of crops, plantations and pastoral farmland. A total of 88.55 Ha of farm land will be acquired by the project, comprising 71.45 Ha of irrigated farm land, 10.5 Ha of Irrigated household garden land, and 6.6 Ha of pasture land.

IKS GROUP OF COMPANIES 10 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

55. Irrigated land comprises approximately 67.6 hectares of crop lands which mainly consists of cotton and wheat, with small amounts of rice and silage (maize). Orchards (consisting of mulberry trees for silk worms) totaling 2.65 Ha will be destroyed, together with 1.2 Ha of construction tree plantation. Ten point five (10.5) Ha of subsistence household productive gardens (considered irrigated land), which comprise mixed-use rice, wheat, vegetables, trees and silage, will also be destroyed.

56. The proposed alignment will also permanently acquire 6.6 Ha of pasture land. A summary of crop losses is shown in Table 6.

Table 6 : Impact on Crops (Ha) Irrigated Lands Crops Plantations Category Pasture Rice Total Grand Total Grand Silage Wheat Cotton Total Irrig. Timber Orchard Farmers 10.42 56.45 0.13 0.60 67.60 2.65 1.20 71.45 6.60 78.05 Subsistence ------10.50 - 10.50 Total 10.42 56.45 0.13 0.60 67.60 2.65 1.20 81.95 6.60 88.55

57. Table 7 outlines the impact of crop loss on farmer and subsistence households. A total of 68 households, comprising 556 people will lose some agricultural land. This mostly consists of irrigated crops and garden.

Table 7 : Impact on Agricultural Producers Crops/Garden Timber Orchard Total* Category Ha Ha Ha Ha HH DP lost HH DP lost HH DP lost HH DP lost Farmers 23 212 67.60 2 15 1.20 1 7 2.65 23 212 71.45 Households 45 344 10.50 ------45 344 10.50 Total 68 556 78.10 2 15 1.20 1 7 2.65 68 556 81.95 * = without double counting

E. Scope of Resettlement

58. Total Displaced Persons – There will be a total of 74 separate households impacted by the proposed road – comprising 46 household plots, 23 farms and 1 household business and 4 businesses. This equates to 500 people being displaced, comprising 260 males and 240 females. Table 8 summarizes the DP’s.

59. Physically Displaced Persons – 22 households are being physically displaced – i.e. losing their homes and having to move and rebuild. These displaced households comprise 21 subsistence households and 1 residential business. This equates to 125 people, comprising 65 men and 60 women. Table 8 outlines the physically displaced.

IKS GROUP OF COMPANIES 11 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 8 : Summary of DP Impacts Physically Economically Displaced- Category Displaced Displaced TOTAL HH M F Total HH M F Total HH M F Total Farm 0 0 0 0 23 108 104 212 23 108 104 212 Household 21 63 58 121 25 81 72 153 46 144 130 274 HH Business 1 2 2 4 0 0 0 0 1 2 2 4 Business 0 0 0 0 4 6 4 10 4 6 4 10 Total 22 65 60 125 52 195 180 375 74 260 240 500

F. Impact on the Vulnerable

60. One of the key safeguard policies is that vulnerable DP’s will attract additional support to ensure that they are not severely affected, and that they are assisted to be resettled to at least national minimum standards. Vulnerable households include those that are poor, female headed, or contain disabled persons or pensioners. Each household satisfying the vulnerable criteria will receive additional entitlements to ensure that they are adequately supported through the LAR process.

61. Table 9 summarizes the number of vulnerable households amongst the DP’s surveyed. The road project will impact 58 vulnerable households including 17 farms and 40 subsistence households and 1 residential business. These families comprise 411 members.

62. Female Headed Households – The road project will impact 13 female headed households – 1 running a household business, 1 a farm and the remaining 11 are subsistence households. These families comprise 68 members.

63. Elderly – The road project will impact 29 households with elderly people including 11 farms and 18 subsistence households. These families comprise 253 members.

64. Disabled - The road project will impact 8 households with disabled people including 2 farms and 6 subsistence households. These families comprise 49 members.

65. Low Income Households – Poverty is difficult to define as a unified methodology for estimating a national poverty line has not yet been adopted in Uzbekistan, instead low income terminology has been used. World Bank’s $ 2.15 per capita per day – or 3,440 SUM criteria as of 2005-2006 was used to define low income families. Based on these criteria, the road project will impact 44 poor households including 8 farms, 35 subsistence households and 1 residential business. These families comprise 279 members.

Table 9 : Vulnerable Households Female Low Total Elderly Disabled ategory Headed Income Vulnerable* HH DP's HH DP's HH DP's HH DP's HH DP's Farm 1 5 11 127 2 18 8 57 17 165 Household 11 59 18 126 6 31 35 218 40 242 HH Business 1 4 - - - - 1 4 1 4 Business ------Total 13 68 29 253 8 49 44 279 58 411 * = Without double counting

IKS GROUP OF COMPANIES 12 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

G. Severe and Significant Impacts

66. Severely impacted households are farms and subsistence households that are losing more than 10% of their land. Those that are severely impacted receive an additional entitlement (based on their crop loss) to ensure that they can maintain their livelihood despite the severity of the impact imposed on them by the project. Of the 23 farms, 3 are severely impacted. 41 of the 47 households are also severely impacted. Therefore a total of 44 households are severely impacted, consisting of 270 people.

67. The involuntary resettlement impacts of an ADB-supported project are considered significant if 200 or more persons 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). Table 10 outlines the number of households who have one or both of the impacts described. A total of 47 households, containing 280 people face significant residential structure or productive asset loss due to the construction of the road.

68. Project 3.2 is considered to have significant impacts

Table 10 : Severe Impacts Asset Losing Significant Category Loss Residence >10% Impact* HH DP HH DP HH DP Farm - - 3 18 3 18 Household 21 121 41 252 43 258 HH 14--14 Business Business ------Total 22 125 48 270 47 280 * Without double counting

IKS GROUP OF COMPANIES 13 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

H. Summary of Key Impacts

69. Table 11 summarizes the key impacts of the project.

Table 11: Summary of Displaced Persons People HH's Entities Farms 212 23 Households 274 59 Household Business 41 Business 10 4 Total DP’s 500 74 Total People Male 260 Female 240 Physically Displaced Male 65 Female 60 Total Physically Displaced 125 22 Vulnerable Below poverty 279 44 Female Headed 68 13 Elderly 253 29 Disabled 49 8 Total Vulnerable* 411 58 Severely Impacted* 270 44 Significantly Impacted* 280 47 * - without double counting

IKS GROUP OF COMPANIES 14 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IV. SOCIOECONOMIC INFORMATION AND PROFILE

70. This section outlines the results of the social impact assessment and the census survey.

71. Project 3.2 spans three districts – Turtkul, Ellikkala and Beruniy wholly within the Republic of Karakalpakstan. Karakalpakstan is legally an autonomous Republic; however in practice it has the same status as an Uzbek province, with the same laws (as regards LAR).4

72. The ADB outlined in 2001 5 that: “Karakalpakstan, which is near the Aral Sea, has 1.5 million people including a rural population of 1.1 million, 50-70 percent of whom are estimated to be poor, and 20 percent severely poor (which is double the national average). In 1998, Karakalpakstan had the fourth lowest average per capita income among the 13 regions and one of the highest infant mortality rates. It has one of the highest unemployment rates in the country, particularly among the youth and in the rural areas. More than 40 percent of the population do not have access to safe drinking water. Quality of life indicators have worsened considerably, particularly in the environmentally affected areas of western and northern Uzbekistan, which are near the Aral Sea.

73. More recent figures from the World Bank6 and MSF7 support the Provincial poverty rate as over 50-55%, particularly in rural areas. Although the project is located in the east of Karakalpakstan away from the Aral Sea, the impact from the Aral Sea disaster is still felt.

74. There is no unified poverty line defined for Uzbekistan. Instead, the PSA defined the poverty level as 3,440 SUM ($2.15) per person per day based on World Bank criteria.

A. Poverty and Socio-Economic Assessment (PSA)

75. A Poverty and Socio-Economic Analysis was undertaken in July 2010 to specifically understand socio-economic issues that face the project-impact population. The project population was defined as those living in the three districts of Turtkul, Ellikkala and Beruniy. The goal of the PSA was to evaluate the economic, social and cultural factors affecting the project 3.2. It developed proposals for the mitigation/elimination of negative impacts and risks on specific social groups, particularly vulnerable groups such as low-income families, women and children, etc. As the project involves new construction, special emphasis in the PSA was placed on reviewing the current situation relating to access to the road, level of transport services, including their reliability and accessibility for all consumers.

76. A full profile of the poverty and socio-economic situation in the project area is contained in the PSA. A summary is presented here.

1. Population

77. The 2010 total population of Turtkul, Beruniy and Ellikkala Districts was 464,353 people. Urban population comprises 31.4% and 68.6 % are considered rural. The total number of the households was 73,238, with more than 40% contained in Turtkul district and

4 Letter from Minister of Justice of Karakalpaks, August 5, 2010. 5 Supporting Innovative Poverty Reduction In Karakalpakstan, ADB JFPR-UZB 35447, 2001 6 Welfare Improving Strategy of Uzbekistan, WB, 2007 7 Karakalpakstan: A Population In Danger, MSF 2007.

IKS GROUP OF COMPANIES 15 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT about 25% in Ellikkala. Average household size across the three districts is 6.34 persons. Average population density is 29.4 people / km2 with the highest density in Beruniy district (40.8) and the lowest in Turtkul (23.4). There is a relatively high population growth rate across the region due to high birth rates and a low mortality rate.

2. Employment

78. Over 54% of the population is at an employable age (16-60 for men and 16-55 for women). The employment rate is relatively high, representing 61.7% of employable-age population in Beruniy and 60.6% in Turtkul. The percentage of people officially registered as unemployed in Beruniy and Turtkul represents 4% and 2.4% of the employable-age population, respectively. The average monthly salary in Turtkul was 250,000 SUM, comparable to the national average.

3. Education

79. According to official data all school age children attend school from kindergarten to Year 10. The three districts have over 200 general schools and 95 Kindergartens, with more than 80,200 and 6,200 children enrolled respectively. There are over 20 lyceums and colleges in the area.

80. More than 90% of all adults in the three districts have completed school, with little difference between the poor and non-poor numbers. More than 45% of people continue to vocational education and 25% to higher education, with the poor participating at a lower rate than the non-poor. Approximately 8% of all people have never finished school, and less than 1.5% have never attended school.

4. Health Care

81. There is 1 general hospital in each district, and an additional specialist infectious disease hospital and a maternity hospital in Turtkul. There is a rural medical centre in each Mahalla across the region in addition to numerous private health and dental clinics. There are a total of 685 doctors registered to work within the three districts.

5. Income and Expenditure

82. Income - The average monthly per capita income was 163,280 SUM in Beruniy district and approximately 104,000 SUM in Ellikkala and Turtkul – averaging 124,000SUM per month across the three districts. Amongst the poor (those defined as earning less than 3440 SUM per person per day) average monthly per capita income was 72,480 SUM – less than half of that of the non-poor.

83. Expenditure - Average monthly per capita expenditure was over 87,000 SUM across all households with poor households averaging less than half of the expenditure of non-poor households.

84. Table 12 outlines income and expenditure for the three districts, disaggregated for both poor and non-poor households.

IKS GROUP OF COMPANIES 16 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 12: Income and Expenditure Average Monthly Average Monthly per Category per Capita Income, Capita Expenditures, 000’s UZS 000’s UZS Beruniy district Poor 80.71 53.14 Non-poor 201.90 84.93 Total 163.28 74.80 Ellikkala district Poor 72.48 69.61 Non-poor 146.89 132.27 Total 104.26 96.36 Turtkul district Poor 75.44 68.79 Non-poor 158.02 137.97 Total 104.77 93.36 3-District Average 124.645 87.848

85. Income Source - The major source of income across the three districts was “marketing own agricultural produce”, “agricultural labour” and “remittances from abroad”. Amongst the poor, the structure of income is different with salaries being less prevalent than social transfers. Overall, a low portion of all households’ income was from pensions and social welfare.

86. Seasonal Fluctuation - Approximately 75% of all survey respondents indicated significant seasonal fluctuations amongst income, even those in wage employment. The majority of those reporting a fluctuation indicated that income was higher in summer than in winter.

6. Ethnicity

87. According to survey results, the ethnic composition of the population in the sub-project area is heterogeneous with majority (67%) Uzbek Representatives of other ethnicities such as Kazakhs (19%), Turkmens (8%) and Karakalpaks (6%) are also present. Table 13 outlines the ethnicity across the project area.

Table 13: Ethnicity in Project Area Uzbek Kazakh Turkmen Karakalpaks Other Total 105962 42068 15842 9681 2464 176017 Turtkul 60.2% 23.9% 9.0% 5.5% 1.4% 101956 12468 9221 5974 260 129880 Ellikkala 78.5% 9.6% 7.1% 4.6% 0.2% 102920 33246 11294 10181 1432 159073 Beruniy 64.7% 20.9% 7.1% 6.4% 0.9% 310838 87783 36357 25836 4156 464970 Total 67% 19% 8% 6% 1% 100%

88. According to the household survey, poverty and other social indicators (education of household head, number of children, employment) have little correlation with ethnicity. Instead, poverty is equally prevalent across each ethnicity. However, due to the sample size, it is difficult to draw definitive conclusions.

IKS GROUP OF COMPANIES 17 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

7. Gender

89. The total number of women across the project area is 231,600 (49.8%). According to the survey results, female to male ratio in Beruniy district is 0.91; in Ellikkala - 1.05; and, in Turtkul – 0.89.

90. There are numerous differences between male and female participation in employment and education. The higher education level of women is lower compared with those of men; and this difference is considerably higher in Beruniy and Ellikkala districts. This corresponds to a considerable disadvantage in the labour market and reflected in lower levels of income earned by women. None of the female headed households surveyed undertook entrepreneurial activities, compared to over 10% of male headed households.

B. Project Census

91. The project census was undertaken over the period 19th-25th July, 2010 – following the project cut-off date of 19th July. It comprised a standard household questionnaire (as used in the PSA) and an impact questionnaire. A comparison of significant socio-economic results between the project area and the displaced households is shown in table 14

Table 14: Comparison of DP Census with Project Area Survey DP's Project Area Males 260 233370 Females 240 231600 Total 500 464970

M:F Ratio 1.08 1.01 Female Headed 16% 5%

Secondary Education 60% 90% College 21% 45% Higher 3% 25%

92. There is a slightly higher ratio of males to females in the DP population (1.08) compared to the project area (1.01). Female- headed households were also more prevalent. (16% as compared to 5%).

IKS GROUP OF COMPANIES 18 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

1. Population

93. There are 500 people in 74 households who will be displaced by the project. This consists of 260 males and 240 females. Table 15 outlines the distribution of DP’s by household category.

Table 15 : Summary of DP Impacts Displaced - Total Category HH M F Total Farm 23 108 104 212 Household 46 144 130 274 HH Business 1 2 2 4 Business 4 6 4 10 Total 74 260 240 500

94. The project will impact 168 children, 296 adults and 36 elderly people. Table 16 outlines the distribution of these categories across household types.

Table 16 : Population Data Category Child Adult Elderly Total Farm 74 123 15 212 Household 91 162 21 274 HH Business 3 1 0 4 Business 0 10 0 10 Total 168 296 36 500

2. Socio-Economy

95. There are 13 female headed households impacted by the project that contain 68 people. There are 36 pensioners in 29 households who will be affected by the project. Eight (8) households contain one disabled person resulting in a total of 8 disabled persons being impacted by the project. Forty-four (44) households, containing 279 people are considered to be below the poverty line. Table 17 outlines the household distribution of these socio- economic criteria.

Table 17: Socio Economic Data – Households Female Elderly Disabled Poor Category Headed HH DP's HH DP's HH DP's HH DP's Farm 1 5 15 11 127 2 2 18 8 57 Household 11 59 21 18 126 6 6 31 35 218 HH Business 1 4 0 0 0 0 0 0 1 4 Business 0 0 0 0 0 0 0 0 - 0 Total 13 68 36 29 253 8 8 49 44 279

IKS GROUP OF COMPANIES 19 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

3. Education

96. Education levels of DP’s were significantly less than the average with only 61% of adults older than school age having completed secondary school compared to over 90% across the project area. This disparity worsened at higher education levels, with less than 20% and 7% of DP adults completing college and higher education (respectively), compared to 45% and 25% across the project area.

97. Interestingly, more business and subsistence households reported adult members completing secondary school than farm households. However at college and higher education levels, this ratio was reversed. Three times as many adults from farms have attended college than subsistence households; and 7 times as many adults from farms have attended higher education than subsistence households. Table 18 outlines the education of displaced households.

Table 18 - Education - Highest Level Achieved Secondary College Higher Category M F Total %* M F Total %* M F Total %* Farm 37 32 69 50% 21 23 44 32% 15 5 20 14% Household 68 66 134 73% 13 11 24 13% 2 1 3 2% HH Business 0 1 1 100% 0 0 0 0% 0 0 0 0% Business n/a n/a n/a n/a n/a n/a n/a n/a n/a Total 105 99 204 61% 34 34 68 20% 17 6 23 7% * - as a percent of total adults greater than secondary school age

4. Employment / Occupation

98. A significant number of DP’s of working age described themselves as unemployed (30%) with 48% describing themselves as fully employed. The remainder were elderly (11%); on pensions due to injury or disability (2%) or were full time post-secondary students (9%). Table 19 outlines the occupation /employment of all adults.

Table 19 : Occupation (Total Adults) employed unemployed Pensio- Disab- Category student Total M F%*M F%* ner led Farm 9 46 39 62% 14 13 20% 15 2 138 Household 20 40 26 36% 33 37 38% 21 6 183 HH Business 0 0 0 0% 0 1 100% 0 0 1 Business 0 5 5 100% 0 0 0% 0 0 10 Total 29 91 70 48% 47 51 30% 36 8 332

5. Income

99. Table 20 shows the average household monthly income across each category, and disaggregated by income type (businesses did not provide their income). The average total income across all households was 851,000 Sum per month, ranging from 300,000 Sum for the residential business to an average farm household income of 1,667,000 Sum. Farming households on average earned 4 times as much income as subsistence farmers.

100. The largest component of income in all categories of households was the sale of livestock and agriculture produce. Wages comprised about 1/3 of subsistence household

IKS GROUP OF COMPANIES 20 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT incomes, and was mainly comprised of laboring for nearby farms. Farming family wages were often comprised of salaried paid for by the farming company.

101. Table 20 also shows the average per person per day income for each of the 3 household categories. On a per capita basis, a farm household member earns roughly five times the income of a subsistence household member. Based on the poverty line established earlier (3,440 Sum per person per day), farmers are well above the threshold, while most subsistence households fall well below. Average PPD income across all DP’s was substantially lower than the poverty threshold.

Table 20: Average Monthly Income (‘000 Sum) Avg. Income

Category month ppd* Agric Sales Sales Other Wages Income L'Stock Pensions Allowances

Farm 216 215 222 771 746 1,094 1,667 7.863 Household 150 142 111 112 223 305 455 1.661 HH Business - - - 300 - - 300 0.300 Average 178 153 163 365 345 603 851 1.737 * - In Sum - per person per day; less than 3,440 Sum has been set as the poverty line

6. Ethnicity

102. All DP’s described themselves as Uzbek. This is despite the fact that their ethnic backgrounds were different. Over 30% of total DP’s were observed to be of Kazakh heritage, with a further 34% Turkmen. No respondents reported feeling any discrimination due to their ethnicity (or perceived ethnicity), nor did any feel part of a wider ethnic group.

C. Gender and Ethnic Minority Issues

103. Thirteen (13) female-headed households will be adversely impacted by the project activities. Women indicated that the road improvements will be favorable, with improved access to medical facilities and markets in nearby towns. It is expected that there will be a commensurate increase in public transport along the new corridor which will aid in their access to the perceived project benefits.

104. There are no indigenous persons (as defined by the ADB Safeguard policy 2009) inhabiting the project area. Displaced persons with an ethnic heritage such as Turkmen and Kazakhs comprise approximately 64% of the DP’s – but they are not considered (by themselves) to be significantly separate from the general population to warrant the trigger of the IP safeguards. Their comments and concerns have been incorporated into the consultation summaries, and reflected in the LARP recommendations.

IKS GROUP OF COMPANIES 21 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

V. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

105. This section outlines the consultation and participation processes that have already been undertaken to prepare the LARP and those that are required during its update and implementation.

106. The Project has promoted meaningful public and stakeholders’ participation in consultations and focus groups. It began early in the project cycle and has been continued throughout the LARP preparation. Plans are in place for it to continue through the LARP update and implementation. The process has provided timely disclosure of relevant information to stakeholders through a project brochure, with follow up FGD’s and face to face meetings to ensure it is fully understood. Meetings have been undertaken at all levels, so that power differentials do not create feelings of coercion and intimidation. Particular attention has been paid to the poorer DP’s in the process so that they are more comfortable with the process and feel included.

107. The key objectives of the consultations were to: (a) identify and help address DP concerns related to the preparation and implementation of the LARP; (b) determine DP preferences for the type and delivery of compensation; (c) minimize DP apprehensions and ensure transparency in LARP activities; and, (d) help avoid unnecessary and costly project development delays.

A. Project Stakeholders

108. The project consists of a number of stakeholders, all of whom will have some involvement in the LARP process and mitigation of impacts. These were identified early in the LARP process and targeted through a series of consultations. They include: Displaced Persons, businesses and institutions. Local officials from District and Province Hokimiyat and include cadastral, road, environment, economic and rural committee members. Land and resettlement Committee members (LARC). Women’s Groups at district and mahalla level. Transport representatives – taxi, bus and truck drivers, owners and companies. Representatives from education and medical centers who will benefit from the improved road. Commercial representatives – businesses, chambers of commerce. 109. Women and Vulnerable Groups - have been fully included in the consultation and implementation process. They have had representation at meetings at Province, District and mahalla level; women and ethnic minorities have had separate meetings during FGD’s and the census process; and their numerous concerns and ideas have been reflected in the LARP recommendations and the updated GAP.

B. Information and Consultation Mechanisms

110. A number of mechanisms are being used to undertake information dissemination and meaningful public consultation. These include:

111. Public Consultations – These are the formal public information campaigns undertaken in the District Hokimiyats. They include environmental, social and resettlement presentations. The meeting is widely advertised in the media. Attendance is normally Government agencies, informed and mobile DP’s and concerned citizens. Due to the distance from project sites, many of the poorer DP’s find it difficult or impossible to attend. An attendance list for all consultations is contained in Annex D.

IKS GROUP OF COMPANIES 22 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

112. Socio-Economic Survey – The survey conducted for the PSA included a brief overview of the project and elicited comments on impacts. Each respondent was provided with contact details for any follow up questions. This ensured that the basic project concept was made widely known throughout the project affected areas.

113. Project Census – Like the PSA survey, the project census was also used as an information exchange with DP’s. A more detailed outline of the project was provided to DP’s at the beginning of each survey in the form of the Public Information Brochure, and a verbal Q&A with the interviewer.

114. Public Information Brochure – A 10-page, Public Information Brochure was developed outlining details of the project, its location, potential impacts, agreed entitlements and compensation for DP’s, the project implementation timeline, the grievance redress mechanism and answers to frequently asked questions. It was distributed to every affected household/business during the DP census, and was available at the FGD’s for other interested parties. It will be updated as the project progresses, incorporating new questions and more details on the implementation process. The Public Information brochure is contained in Annex C

115. In-Depth Interviews - are a follow-up from the official public consultations and are targeted at specific groups of stakeholders who may not have attended. They also target stakeholders who may not be aware that they are and should be involved in the project, and who would otherwise not be involved in the formal consultation or census process. For this project they include trucking/transport association representatives, women’s groups, education and medical institutions, and chambers of commerce. The interviews mainly assessed these groups’ views on the potential project impacts (positive and negative), mitigation measures and suggestions for improvement.

116. Focus Group Discussions – are a follow-up from the DP census, and focused directly at the DP’s – in particular the less powerful and poorer DP’s who may not have the resources to attend the official public consultations due to distance, time and cost. The FGD format includes a detailed presentation of the LARP process, separate discussions with women (using a female interviewer and female translator), confirmation of census figures and entitlements, and a detailed Q&A session. The sessions are normally conducted in the local community (to reduce distance) and where possible, without outside influence (from Hokimiyat, rural committee members or nearby farmer/landlords) so as to reduce any feelings of intimidation or coercion.

C. LARP Preparation

117. The formal project public consultation meeting for Project 3.2 was conducted on August 3-4 and included environmental, social and LAR presentations. An attendance list and minutes of the meeting are included in Annex D.

118. The In-depth interviews for Project 3.2 were undertaken in the Turtkul and Beruniy Hokimiyats on August 3-4. Attendees included (54 in Beruniy & Ellikkala and 52 in Turtkul) representatives of Local administration - Hokimiyat and its departments, farmers and entrepreneurs, medical establishments, education institutes, Mahalla assemblies of citizens, organizations responsible for road maintenance and NGOs and an attendance list and meeting minutes are contained in Annex D.

IKS GROUP OF COMPANIES 23 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

119. The key comments provided from these meetings included: In Beruniy and Ellikkala - The proper maintenance of the existing roads is not in place. - Most of the cafes and other food-serving facilities are located very close to the road. - Safety of the roads and safety signs are not properly placed, in some sections. - Local roads need to be rehabilitated. - Existing bus route web is not sufficient enough to cover all populated areas. - Crossings of roads by animals (cattle) are not regulated. There are no especially designed places for these purposes. - It was experienced that construction and rehabilitation of the roads caused destruction of the plants and the land quality alongside the road. - Limited number of car repair shops alongside the major roads. - Road safety issues. Particularly, road signs are not in place. - During the rehabilitation of existing roads, land along the road was extensively used, worsening the soil quality. - Limited network of the bus routes. - Lack of the assigned bus stops. - Lack of the secured sidewalks for pedestrians. - Safety of the roads and transport means is not guaranteed. - Absence of the medical services, providing first aid, along the road. - Lack of the Gasoline Stations along the new and existing roads. - Lack of Funds for the proper maintenance of the roads - Road deterioration before the due date caused by non-proper exploitation and poor maintenance.

In Turtkul - Poor road infrastructure is contributing factor to slowing the progress of development and creation of new employment opportunities for the local population. - Limited number of transport means connecting to region and district centers and other cities. - Transportation within region is not stable without exact specific time-table. - There is limited number of bus stops. - Condition of road surface on certain sections of the road is poor. - Repetitive (1-2 times a year) maintenance of roads is required due to the open-piped water flowing next to the road in summertime and gathered around it at some sections. - There is a need to assign separate crossings along the highway designed for people and animal migration. - There are limited of the safety signs indicating presence of the educational institutions, “Children crossing the road”. - There is no centralized water supply along the road. - Lack of the secured sidewalks for pedestrians. - Limited number of bus-stop and other facilities across the inter-city roads. - Absence of camping and other facilities located close to roads for freight forwarders and other road users. - There are only 2 auto-stations in Turtkul district, while there is a need for more. - Existing roads are not wide enough to effectively serve today’s capacity of road users. - Roads are not equipped with places or additional lanes for parking or stops.

120. Detailed discussions were held with business owners during the census. Additionally, a number of employees were briefed on the project in the process of owner identification. Their comments have been included in the overall project comments outlined in Annex D

IKS GROUP OF COMPANIES 24 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

121. Four (4) Focus Group Discussions (FGD’s) were held with 4 major communities (comprising 80%) of the DP population on the 9th and 10th of August 2010. The groups were briefed in detail about the project and their entitlements; comments and concerns were raised, census data was verified; and women met separately to identify concerns and issues. A summary of the meetings is contained in Annex D

122. The key issues raised at the FGD’s include: Relocation: Staying in their micro-district (makhalla) and maintaining relationships with relatives and neighbors is a high priority. Compensation funds: funds should be secure and accessible; training and support is needed to access and manage their funds. Housing: families prefer to engage a local building master and manage construction of homes themselves, with sufficient time and resources to ensure new homes are ready with all utilities connected before they have to relocate. Replacement land should be equivalent, fertile and suitable for production. Fair processes should be adhered to, and no cost imposition passed on to affected people. The grievance procedure must be followed. Employment during construction: Local people are given training and employment opportunities throughout the project, including construction work (houses, road works); cooking for construction crews; tree supply, installation and maintenance. Employment post-construction: Training and micro-enterprises are established. Business opportunities identified included a sewing workshop, barber, auto- mechanic and a tree nursery. Road safety should include pedestrian crossings, pedestrian sanctuaries, speed limits and warning signs to allow safe crossing, especially for children going to school. Road-side facilities should include shaded areas suitable for market stalls to sell produce; a combined canteen/magazine/public toilet/shower/Paynet shop. Environmental impacts: dust and pollution should be mitigated with tree planting on both sides of the road corridor. Mahalla requested a shaded outdoor meeting square.

123. Two Hundred and Eighty (280) road users were surveyed during the preparation of the PSA and asked to outline any issues for the proposed road improvement. Their comments are summarized in Annex D.

D. Summary of Project Consultations

124. The key issues raised during the extensive consultation process can be summarized as: Ensuring that full and fair processes for LAR are carried out in practice as per ADB/Uzbekistan Policy. There should be an emphasis on improving safety and services along the major corridor, particularly as it passes through villages. DP’s wish to maintain their social capital by remaining close to current neighbors and community facilities.

E. Further Information Disclosure

125. Further information disclosure will occur once approval of the LARP has been obtained by the RRF and the ADB – expected by mid-October.

126. The updated Project Information Booklet and summary LARP (translated into Uzbek) will be distributed in mid-October to each DP to provide additional information on the

IKS GROUP OF COMPANIES 25 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT implementation arrangement, payment schedule, and assistance provided to specific groups and complaints resolution options.

127. The full LARP (translated to Uzbek) will be distributed to each Mahalla for display and reference by all DP’s. An index sheets outlining each DP, their GPS coordinates, maps, assets and entitlements will also be on available for review. All DP’s have been informed of this, and understand that they will be able to provide comments or grievances through the normal channels.

128. The full LARP (translated to Uzbek and English) will be disclosed on the RRF PMU and ADB website.

129. In conjunction with the detailed engineering design, and following Loan negotiations, it will be necessary for the Safeguards Team to update and finalize the LARP. They will need to undertake a final visit to the field to ascertain correct alignments and corridor widths, and confirm the details of the LARP – including asset impacts, entitlements and grievances. Details of the updated implementation timeline, procedures and activities; entitlement matrix; and, grievance procedures will be provided at that time to each DP. The updated LARP (in English) will be disclosed on the ADB website, and prior to any resettlement activities.

130. Women and Vulnerable DP’s - During LARP implementation, the PMU will assign a staff to: Inform in advance the DPs, including women-headed households and vulnerable groups, to begin moving at least 180 days prior to demolition of their structures; Ensure that all resettlement payments are made prior to the announcement That all resettlement procedures have been undertaken prior to construction commencing; Persuade housewives to be with their husband when receiving payment for compensation and assistance from the Hokimiyat; Involve women of affected households and vulnerable groups in the locality in addressing the unanticipated social and environmental impacts during Project implementation through the GAP. With the consent of the DPs, ensure that the names of both spouses will be reflected in the re-registration of the transferred land titles.

IKS GROUP OF COMPANIES 26 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VI. GRIEVANCE REDRESS MECHANISMS

131. This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances.

A. General Principles

132. ADB requires that a grievance redress mechanism is established and maintained. It should be designed to efficiently receive and facilitate the resolution of affected peoples’ concerns and grievances about project levels social and environmental issues. The grievance redress mechanism should be scaled to the risks and impacts of the project. It should address affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the displaced people.

133. The grievance redress process has been widely disseminated to all DP’s during project consultations, FGD’s and the LARP census. It was contained in the Information Brochure handed to each displaced household / business during the census.

134. The following mechanism has been updated and improved to reflect practical issues raised and encountered during the last round of focus group discussions. It has updated in the Project LARF and will also be disseminated to all DP’s during the LARP disclosure in October 2010 and the confirmation and update procedures prior to project finalization. Copies of the process and the complaint forms will be posted at the Mahalla offices and the District GFP.

B. Grievance Coordination

135. A Grievance Focal Point (GFP) has been established at each District Hokimiyat (Turtkul, Ellikkala and Beruniy) to coordinate and address all complaints and concerns arising from the project. The contact details are:

Turtkul District Elikkala District Beruniy District Mayor’s Office. Mayor’s Office Mayor’s Office. Seitov Ruzinbay Alimov Boltaboy, Tajimuradov Aybek, Aminovich, Deputy Mayor. Deputy Mayor. Deputy Mayor. l: 8361 585 18 90 l: 8361 524 95 35 Tel: 8361 532 21 44

136. The GFP will be assisted and supported by members of the Provincial Land and Resettlement Committee (PLARC) who will maintain a register of complaints, keep track of their status and report to the Director of PMU. They will regularly track complaints received, actions taken and the status of resolution. Complaint forms will be distributed to the heads of local Mahalla’s and the District GFP to facilitate recording of complaints.

C. Grievance Procedures

137. Displaced persons have been informed that they should ask any questions or discuss grievances with their community head or the District GFP by phone or in person; or to project staff visiting the area.

138. If these questions/grievances are not answered within 1 week, it should be prepared in writing (using the assistance of the local community leader or school if necessary). DP’s have

IKS GROUP OF COMPANIES 27 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT also been told that national and international project staff will also assist them with writing a grievance if necessary.

139. Written complaints can be faxed, sent or delivered to the Grievance Focal Points where they will be registered as being received. The District GFP will have 1 week to deliver a resolution to the DP.

140. In the event that a satisfactory answer cannot be provided, the DP may lodge the complaint with the Land Acquisition and Resettlement Committee (LARC) of the Provincial Hokimiyat and receive a reply within 15 days.

141. Displaced Persons will have the right to take the dispute to the District court of law if they do not accept the Provincial Hokimiyat’s decision. All court costs (preparation and representation) will be paid for by the project – no matter the outcome.

142. Table 21 outlines a summary of the grievance resolution process.

Table 21: Grievance Resolution Process Stages in Response Required Activities Handling Verbally responds to questions and or complaints. Mahalla Head or District If no response within 1 week, or response is GFD unsatisfactory, DP prepares a grievance in writing (utilise standard forms where possible). Registers the written complaint and attempts to solve it. District GFD If complaint is not resolved in one week, it is passed by the GFD to the Province LARC for resolution. Registers the written complaint and attempts to resolve Regional Land and it with the DP within 2 weeks. Resettlement Committee (LARC) If a solution is not reached, the LARC refers it to the RRF PIU Assists in the activities of the GFD and LARC in the resolution of complaints.

Makes a decision within 2 weeks.

In the event that the District and Province are not able to Road Fund/PMU resolve the dispute within the elapsed time, the RRF PIU will have a further 2 weeks to resolve the issue.

If the decision is still unacceptable to the DP, they may take it before the District Court, with all costs paid for by the project. The District court hears the case and makes a final District Court of Law decision that is binding on all parties.

IKS GROUP OF COMPANIES 28 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VII. LEGAL FRAMEWORK

143. This section describes National and Local Laws and the gaps with ADB Policy.

D. Relevant Provisions for Involuntary Resettlement in Uzbekistan

144. There are no laws or legislation in Uzbekistan that specifically address matters related to involuntary resettlement. Rather land acquisition is governed by the following laws and resolutions:

The Land Code - approved by the Law of the Republic of Uzbekistan from 30.04.1998, taking the changes of 2003-2004 into account;

The Civil Code of Republic of Uzbekistan from 1996, taking the changes of 2004- 2008 into account;

Law of the Republic of Uzbekistan on “State Cadastre” N171-II from 15.12.2000

Law of the Republic of Uzbekistan on “State land Cadastre” N666-I from 28.08.1998 taking the changes of 2002-2004 into account

Cabinet of Ministers Resolution on “Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan” 246 from 25.05.1992;

145. Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land. They do not provide for “land for land” or cash compensation as land is a state owned asset. A brief account of legislation pertaining to compensation and the provision of land is given in Annex E.

E. ADB’s Policy on Involuntary Resettlement

146. The ADB policy on involuntary resettlement is detailed as “Safeguard 2” in the ADB Safeguard Policy Statement (SPS) of June 2009. It emphasizes ADB’s efforts to assist DMCs

IKS GROUP OF COMPANIES 29 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT to pursue environmentally sustainable and inclusive economic growth. In addition, ADB is committed to ensuring the social and environmental sustainability of the projects it supports.

147. In this context, the goal of the safeguards is to promote the sustainability of project outcomes by protecting the environment and people from projects’ potential adverse impacts.

148. The objectives of ADB’s safeguards are to: (i) avoid adverse impacts of projects on the environment and displaced people, where possible; (ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and displaced people when avoidance is not possible; and (iii) Help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

149. ADB Safeguard Requirement 2: “Involuntary Resettlement” is detailed in Appendix 2 of the SPS and included in Annex E of this LARP. The ADB is in the process of updating its “Handbook on Resettlement – A Guide to Good Practice” (2003) however the basic principles and practical implementation procedures are still valid.

150. The key principles of ADB’s Involuntary Resettlement Policy and procedures relevant to the LARP are:8

Assess past and current involuntary resettlement risks Undertake meaningful consultation and participation of all DP’s Pay particular attention to 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 Establish a grievance redress mechanism to receive and facilitate resolution of the displaced persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Improve, or at least restore, the livelihoods of all displaced persons through o land-based resettlement strategies when displaced livelihoods are land based where possible o prompt replacement of assets with access to assets of equal or higher value, o prompt compensation at full replacement cost for assets that cannot be restored, and o Additional revenues and services through benefit sharing schemes where possible. Provide DP’s with o secured tenure to relocation land, o better housing at resettlement sites with comparable access to employment and production opportunities o integration of resettled persons economically and socially into their host communities, and o extension of project benefits to host communities; Provide DP’s with transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; Provide civic infrastructure and community services, as required.

8 These are paraphrased and summarised for discussion. The full text of the ADB policy is in the Annex F

IKS GROUP OF COMPANIES 30 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated 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. Prepare a resettlement plan elaborating displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to displaced persons and other stakeholders. Disclose the final resettlement plan and its updates to displaced persons and other stakeholders. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons.

F. Comparison of Uzbek and ADB IR Laws, Regulations and Procedures

151. The main variations between Uzbekistan laws/regulation and ADB Safeguards policy are outlined in Annex E. Any key differences have been resolved in favor of ADB policy, particularly in areas where practices are less subject to independent oversight.

152. Comparison of the Uzbekistan LAR Policy with the ADB Involuntary Resettlement Safeguard Policy indicates that key elements of the ADB Policy are present - particularly those related to valuation of immovable property. The ADB’s principle of avoidance or minimization of resettlement is reflected in Uzbekistan Legislation.

153. The key policy difference regards DP’s without title, or registration (businesses and structures). In order to remedy this, Uzbekistan has ensured that all land, businesses and structures will be registered prior to resettlement, at no cost to the DP, and then transferred or compensated under the relevant entitlement.

154. Overall, Uzbekistan’s Country Safeguard System (CSS) is approaching that of ADB’s Social Safeguard Policy. The main area of concern is the application of laws in practice before and during construction – where differences have been noted in the field. This is mainly an issue of information dissemination to those responsible for implementation at the district and province level. This has been addressed in the information dissemination activities during preparation, and will be a core area for the monitoring activities during the LARP update and implementation.

G. Actions Made to Address the Gaps

155. In February 2010, the RRF agreed to adopt a Land Acquisition and Resettlement Framework (LARF) for the Project that incorporates both Uzbekistan’s laws and procedures and the Resettlement Policies of the ADB. The Framework applies to all persons whose private land status is affected permanently or temporarily due to the Project, including purchase and temporary use during construction. It also applies to people whose use of state land, sanctioned or not, changes as a result of the investment. The Framework does not

IKS GROUP OF COMPANIES 31 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT apply to State land that is transferred from one authority to another, or used for the reconstruction, unless third parties are adversely affected by the transfer or use.

156. The document ensures that: (a) compensation is provided at replacement cost for houses and buildings and at market value for all items,(b) non-titled DPs are given livelihood rehabilitation, and (c) the provision of subsidies or allowances for DPs suffering business losses or severe impacts and DPs who are vulnerable.

157. A revised LARF has been prepared incorporating the changes and improved understanding gained during the preparation of this LARP. It is expected that it will be adopted by the RRF and ADB in October 2010.

H. Principles and Policies for the Project

158. The ADB policy has no reference for valuing entitlements except for the general principle that DPs should be at least as well off after the project as before it. In other words, valuation of their property and assets should be at the replacement value. The Bank’s practices also recognize this principle to ensure protection of interests and the well-being of the DPs.

159. The LARP sets eligibility and entitlement provisions establishing compensation rates in accordance with guidelines from the Land Code of the RU. The following principles for the compensation/rehabilitation of families displaced by the Project were explained to the DP’s and stakeholders during consultations: The cut-off date for identifying affected lands, families and people is 19 July, 2010 when the resettlement survey was begun and any displaced people along the proposed project routes were informed. The route of the road minimizes the need for acquisition of houses or agricultural land. There will be some permanent acquisition of land and buildings. Identification, compensation and assistance will be provided prior to any construction commencing. All displaced persons (identified before the cut-off date) will receive compensation, even if they are without title or formal recognition. This includes any temporary residential structures, informal agricultural activities or temporary business use. All construction through agricultural land will be timed to minimize any impacts on the income and activities of adjoining land parcels. All construction over public rights of way – footpaths, canals, driveways and roads will be undertaken rapidly and without undue delay to avoid inconvenience to business and residences. Detailed seminars and consultations will be available for all displaced households to keep them informed of the process. Representatives of displaced households will be invited to participate in the Hokimiyat valuation meetings. A defined grievance procedure has been established. When a land owner or user does not agree with a decision regarding compensation or change of the ownership or land use (lease), it may not be exercised before the dispute is resolved judicially. In addition, any person who feels that they are in any way worse off can take their grievance to the highest level, at the cost of the project. Those people who face significant impacts (>10% of their land being resumed and/or physically displaced from housing) will receive additional support, assistance and compensation.

IKS GROUP OF COMPANIES 32 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Vulnerable groups, including female-headed households, the poor, disabled, or families with significant numbers of elderly members will receive additional support, assistance and compensation to ensure that they are not severely affected. DP’s may use and exercise their rights to a land plot and make necessary expenditures in compliance with its purpose after notification on acquisition for public needs until compensation is agreed. However, there will be no entitlement to additional compensation based on these improvements. If a land plot becomes unviable due to acquisition then the whole land plot will be compensated.

IKS GROUP OF COMPANIES 33 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VIII. ENTITLEMENTS, ASSISTANCE AND BENEFITS

160. This section outlines DP’s entitlements and eligibility and describes all resettlement assistance measures including an entitlement matrix. It also specifies all assistance to vulnerable groups, including women, and other special groups; and outlines opportunities for displaced persons to derive appropriate development benefits from the project.

A. Entitlements to Compensation

161. The following groups of displaced persons (DPs) are included in the LARF and also will be addressed in this Land Acquisition and Resettlement Plan (LARP) for Project 3.2:

• All DPs losing land either with or without legal lease, land rights or legal status; • Owners and users of buildings, crops, plants, or other objects attached to the land whether registered or not; and, • DPs permanently losing business, income, and salaries.

B. Formalization of Title/Registration

162. To enable the Project to compensate unregistered land users under Uzbekistan laws, representatives from the District Cadastral Offices have advised displaced land users to register or update the registration of their lands and structures. Under the LARP those who have unregistered land or structures will be registered free of charge prior to compensation. This will be facilitated by the RRF.

163. DP’s who have already paid for registration after project identification (November 2009), and feel that this was unjust, can elect to document their case to the grievance committee providing proof of date and amount charged. If found to contravene ADB policy, charges will be refunded by the EA.

164. The assets/structures on the affected plots of land users without lease/registration have been evaluated by exactly the same criteria as those with a formal lease.

C. Calculation of Compensation

165. This section details the entitlements for compensation and the details of the calculations used. A summary table of all impacts, unit costs used for calculations and total compensation calculated for each DP is shown in Annex F.

1. Land

166. Compensation for land will be on a “land for land” basis, with land being provided to owners by the District Hokimiyat following assessment by the LARC. Such land will be of equal value/productivity in a nearby location and with comparable associated services/ facilities, or compensation to provide such services. Transaction cost, registration fees, if any, will be borne by the project.

167. For DPs using land without a formal lease, their total land used (leased and without lease) will be formally combined into a single lease, without cost to the DP. The land will then be transferred under normal processes.

168. A total of 89.1 hectares of land is required for Project 3.2. Seventy Five (75) households will lose land. While most land will be acquired from farms, the impact will be greatest on subsistence farmers who will lose on average 35% of their holdings. Forty-eight

IKS GROUP OF COMPANIES 34 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

(48) households will lose more than 10% of their land, consisting of three farms, four businesses and 41 subsistence households. Table 22 shows a summary of the land required.

Table 22 : Land Required for Project 3.2 Household Land Loss >10% Category HH DP's Total Acquired % HH DP Farm 23 212 2,587.9 77.8 3% 3 18 Household 47 274 32.1 11.1 35% 41 252 HH Business 1 4 - - - - - Business 4 10 0.9 0.2 22% 4 10 Total 75 500 2,620.9 89.1 3% 48 280

169. Land Preparation – costs include survey and titling, realignment of water supply and gas mains to land parcels, and the general preparation of the site for construction. As the result of construction works it is expected that 22 residences and 4 businesses will be demolished and relocated, requiring land preparation. According to the DI, the funds have already been set aside for this activity.

170. The realignment of the communal and communication facilities to land parcels and construction of access roads will cost 20 million Sum per house/business. Survey and titling will cost 700,000 Sum per house/business. For project 3.2 these equate to 1.578 Billion Sum or $978,424. A breakdown of these costs is shown in Table 23.

Table 23 : Land Preparation Costs – Project 3.2 Item Units Sum/Unit ’000 Sum US$ Survey and Title 26 700 18,200 11,283 Communal and site preparation cost. 26 60,000 1,560,000 967,141 Total 1,578,200 978,424

2. Businesses

171. All operating businesses will receive compensation for 6 months loss of business income. Income will be calculated based on tax declarations, imputed earnings or average income in this area. The owner has the right to alter this amount if delay or hardship is encountered, through formal application to the grievance process.

172. Unregistered businesses will first be registered at no cost. They will then receive compensation as per other businesses. If they cannot provide proof of business income, then average income of similar businesses in the area will be used to calculate compensation.

173. Workers – Compensation for workers will be based on stated wage rates. If fixed by oral agreement with employer, they will be assessed based on average rates for the area. Compensation will be for 6 months.

174. Table 24 outlines a summary of business and worker compensation. There are 4 businesses and 1 household based business. The 4 businesses comprise 2 shops and 2 gas stations. Both shops are empty shells, and are non-operational. Both gas stations reported no income due to a lack of fuel supplies in the region. In any case, their operations will not be affected as they are only losing a small portion of their access driveway from the main road. This access will be maintained during construction.

IKS GROUP OF COMPANIES 35 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

175. The household business earns 335,000 Sum per month and employs 2 staff at 150,000 Sum per month. The household business will be compensated 2,010,000 Sum ($1,246). The workers will be compensated 900,000 Sum each, totaling 1,800,000 Sum ($1,116).

Table 24: Business and Worker Compensation ('000 Sum) Workers Business Compensation Monthly Salary Average Income Survey Km Salary Bus Worker per month R32008 Shop Non Functional 0 0 R32010 Fuel Station No Income Loss 0 0 R32013 Shop Non Functional 0 0 R32012 Fuel Station No Income Loss 0 0 Household 335 2 150 2,010 1,800 R32104 Business 2 Sum 2,010 1,800 Total USD 1,246 1,116

3. Structures

176. All assets (registered or not) will be valued through calculating the real replacement cost based on cost of materials, type of construction, labor, transport and other construction costs. No deductions will be applied for depreciation or transaction costs. The cost of reconnection to lost water, electricity, gas and telephone connections will be included in the compensation (the new land sites are assumed to have similar services available). Salvaged materials will be allowed to be taken away by the DPs prior to demolition at no charge.

177. Table 25 shows the per unit cost for the relevant structures in the project area. Buildings unit costs have been estimated based on the average construction and roofing material used. Basic mud brick structures normally consist of barns or unfinished buildings. When they are painted and prepared for improved use – they are categorized here as improved mud brick. “With facilities”, refers to structures that also have gardens, awnings, floors, kitchen and bathroom facilities and generally refer to the main residential premises found in the area. Concrete block structures are either basic (assessed as at lock-up stage only) or improved (including ceiling, floors, kitchen and bathroom facilities). All unit costs include relevant utility connections for that type of structure.

Table 25 : Structure Unit Costs ('000Sum/m2) Basic 20 Mud Brick Improved 35 W/facilities 135 Basic 180 Concrete Block Improved 225 Specialised Fuel Station 500 * all prices include relevant utility re-connections * Where unit prices differ from this table, this is due to individual independent valuations

178. A total of 31 households will lose some structures, of which 22 will lose their primary residence (or household business). A total of 60 structures will be demolished. Table 26

IKS GROUP OF COMPANIES 36 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT shows the compensation for all buildings. Buildings costs have been estimated by using the relevant unit cost multiplied by the total square meters of the building. “Residence” refers to the primary residence of a household if it is lost. “Shed or business” refers to either a business structure or main shed. “Other” consists of ancillary sheds. Total building replacement cost for all DP’s is 812,564,000 Sum ($503,759).

Table 26: Calculation of Compensation for Structures (‘000 Sum) Area by Unit Cost Structure Value Survey Residence Shed /Bus Other Shed or Total Residence Other m2 ppm m2 ppm m2 ppm Business Sum R32008 - - 120 60 7,200 7,200 R32013 - - 150 173 25,950 25,950 R32026 120 93 25 20 11,160 500 11,660 R32028 299 135 169 25 40,365 4,225 44,590 R32029 273 128 195 20 34,944 3,900 38,844 R32032 117 20 2,340 2,340 R32033 225 139 255 20 31,275 5,100 36,375 R32034 60 20 1,200 1,200 R32035 156 171 182 20 26,676 3,640 30,316 R32043 300 82 200 20 40 35 24,600 4,000 1,400 30,000 R32045 120 311 66 25 208 30 37,320 1,650 6,240 45,210 R32047 157 107 74 25 16,799 1,850 18,649 R32049 225 83 45 25 18,675 1,125 19,800 R32050 400 97 176 20 38,800 3,520 42,320 R32070 288 135 240 15 24 35 38,880 3,600 840 43,320 R32082 105 110 42 20 18 35 11,550 840 630 13,020 R32088 684 130 88,920 - - 88,920 R32089 330 110 112 20 36,300 2,240 38,540 R32090 132 110 44 20 16 35 14,520 880 560 15,960 R32094 306 110 35 20 33,660 700 34,360 R32100 144 110 45 20 28 35 15,840 900 980 17,720 R32104 153 98 14,994 14,994 R32105 480 124 7,666 7,666 R32106 380 135 80 20 60 35 51,300 1,600 2,100 55,000 R32109 500 105 400 20 32 35 52,500 8,000 1,120 61,620 R32110 323 130 41,990 - 41,990 R32112 120 110 13,200 13,200 R32130 425 20 8,500 8,500 R32135 20 25 500 500 R32138 15 20 36 35 300 1,260 1,560 R32141 20 20 24 35 400 840 1,240 * Note that where prices deviate from table of unit costs, this is due to independent Sum 812,564 valuations being obtained $ 503,759

IKS GROUP OF COMPANIES 37 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4. Agricultural Production

179. Agricultural production has been calculated for all farms and subsistence households and provides values for crops, trees, orchards and gardens. Calculations have been made on historical production combined with prevailing market rates.

180. Standing Crops - Annual crops (whether or not on titled land) that cannot be harvested will be valued at full market rate as determined by purchase prices in the local market. Assessment will take account of more than 1 crop on a particular parcel in a year.

181. Fruit and Construction Trees – Compensation for trees will be done based on type and productivity. Fruit non-productive trees (young trees) will be compensated for seedlings and for plantation costs of the seedlings. Compensation for productive trees will be calculated based on the age of the tree and future loss of profit till the end of the tree’s productivity period. Compensation for trees used for production of merchantable wood will based on the price difference between the current status of the tree and the age when it reaches the merchantable wood period i.e. loss of future profit from this tree is compensated.

5. Calculation Process

182. The complete tables are shown in Annex G. The process to calculate the production and its value is outlined here, and summarized in the annex.

183. Firstly, total crops and plantations are identified for each farm (Annex G Table 1). This defines total area of agricultural crops, perennial plants and crops repeated after harvest of a winter crops (wheat). Then the land that is to be alienated is calculated including the type of production it contains (Annex G Table 2). The average percentage of irrigated land seizure from 23 farms totals 4.7% of the total fixed irrigated area. However, on individual farms it varies from 0.1% to 33.1%.

184. In order to better use irrigated land after the wheat harvest (in June), many farmers are producing a second crop in the main fodder crops and rice. Therefore it is necessary to add revenue and profits derived from “re-seeding crops” (Annex G Table 3). These indicators are needed to compensate for crop losses and to calculate the cost of new land.

185. Orchards are calculated based on average yields over the past three years; the area of removal; and, market prices of the year is determined by the average annual cost of crop harvest (Annex G Table 4). Estimated payment is determined by multiplying the estimated period of fruiting on the average annual price of crop harvest. The period of longevity and fruiting of different tree species is identified from the "Handbook of norms and standards for advance planning industries of agro-industrial complex" developed by the State Agriculture Committee of Uzbekistan (1986).

186. Mulberry plantations (leaves for silk worm production) is estimated at the cost of production from 1 ha and standard length for future production (Annex G Table 5). Prices for mulberry leaves were found in the market. The operating period is defined from the "Handbook of norms and standards for long-term planning industries agro-industrial complex" 1986.

187. Poplar plantations (for construction timber) (Annex G Table 6). is calculated by taking the difference between the market value cost of trees at the age of timber and the estimated cost for the current period surveyed. Average market value of wood at the age of commercial timber is defined as$30 thousand Sum.

IKS GROUP OF COMPANIES 38 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

188. Crop profit and costs (Annex G Table 7) are determined from the actual acreage in 2010 and the average yield over the past three years, 2008-2010. Output value is calculated for cotton and wheat on the basis of sticker purchase price approved by the Ministry of Finance of the Republic of Uzbekistan in 2010. For other agricultural products, prices are taken from prevailing markets in Karakalpakstan in the current year. The profit is calculated based on the cost of production and cost forecast. The economic performance of wheat is added to the cost and production and profits earned from re-sowing.

189. The total land to be seized, together with the identified crops (Annex G tables 2-6), is combined with the profit data in table 7 to provide a figure of average productivity for irrigated land (Annex G Table 8). The total compensation is then determined for the harvest from these lands (Annex Table 9).

190. Annex G table 10 calculates the cost needed to prepare land to its current state of irrigation so that that can also be compensated. It is determined based on the reference rates adopted by the Council of Ministers of the Republic of Karakalpakstan on 30 June 1995, depending on the yield of the land. The cost of compensation is calculated by multiplying the area of land seized by the base rate. To that value is added net income from the table number 8 obtained by 4 years. Funds for the development of the land is transferred to the special accounts of the Council of Ministers of the Republic of Karakalpakstan. Part of the funds in the amount of 10% paid into a special account of the Ministry of Agriculture and Water Resources of the Republic of Uzbekistan.

191. Pasture land (ie non-irrigated) is calculated similarly to irrigated land and is based on rates for a specific area of pasture (Annex G Table 11).

192. Subsistence households have small crop, garden and tree plantations. By questioning the owners of the household and measuring the crops, annual and perennial crops in the defined area to be seized, the gross harvest of agricultural crop production is calculated from the average yield for each crop (from district averages). The cost of production is calculated from market prices prevailing in 2010. Compensation for orchards and vineyards, and other fruit trees, and poplar is defined similarly as for farms listed in the tables 4, 5 and 6. (Annex G Table 12).

193. Table 27 provides details of crop compensation to be paid based on the calculations shown in the tables in Annex G. The total compensation payable for each DP is calculated by adding the annual crop production, the tree and compensation (development plus remaining production) and redevelopment costs. The annual tree and fruit crop production is also shown, as this is used to calculate compensation for the severe impact allowance (if any) for each farm / garden.

194. The total compensation payable for agricultural production is 455,761,000 Sum ($282,555).

Table 27: Compensation for Crop Losses ('000 Sum) Trees Annual Fruit Annual Survey Crops (Total Tree (Total Fruit Redev Total Comp) Crop Comp) Crop R3029 394 49 443 R32011 19 19 R32018 9,587 1,734 11,321 R32036 4,224 1,551 5,775 R32042 3,074 15,904 379 3,551 22,529 R32052 8,445 3,420 11,865

IKS GROUP OF COMPANIES 39 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 27: Compensation for Crop Losses ('000 Sum) Trees Annual Fruit Annual Survey Crops (Total Tree (Total Fruit Redev Total Comp) Crop Comp) Crop R32053 383 57 440 R32062 8,791 1,077 9,868 R32065 4,223 3,104 7,327 R32073 2,223 2,215 4,438 R32074 114 48 162 R32075 21,533 10,425 31,958 R32095 14,778 13,859 28,637 R32096 1,254 1,107 2,361 R32097 4,425 3,074 7,499 R32107 2,111 1,361 3,472 R32111 41,226 982 11,161 52,387 R32113 1,651 769 2,420 R32115 2,362 1,554 3,916 R32119 3,848 2,855 6,703 R32121 3,669 560 112 3,772 8,001 R32122 236 198 434 R32123 1,016 462 1,478 R32130 41 270 6 311 R32028 230 2,517 503 6,126 146 8,873 R32029 448 3,019 604 8,281 197 11,748 R32034 177 113 23 788 19 1,078 R32035 231 2,229 446 1,337 32 3,797 R32032 354 768 18 1,122 R32033 1,057 2,823 565 3,832 91 7,712 R32043 244 120 24 1,772 42 2,136 R32044 465 100 20 5,713 136 6,278 R32045 122 200 40 1,177 28 1,499 R32047 97 35 7 4,500 107 4,632 R32048 28 120 3 148 R32049 930 1,000 200 561 13 2,491 R32050 120 24 400 10 520 R32051 40 40 R32132 330 66 1,200 29 1,530 R32133 432 4,490 107 4,922 R32057 1,314 1,000 200 2,314 R32058 29 1,000 200 1,029 R32140 45 45 R32134 158 158 R32059 189 189 R32068 306 306 R32135 889 1,928 46 2,817 R32070 495 1,200 240 15,613 372 17,308

IKS GROUP OF COMPANIES 40 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 27: Compensation for Crop Losses ('000 Sum) Trees Annual Fruit Annual Survey Crops (Total Tree (Total Fruit Redev Total Comp) Crop Comp) Crop R32082 52 - 1,976 47 2,028 R32083 82 488 98 362 9 932 R32084 40 - 1,740 41 1,780 R32085 134 397 79 5,372 128 5,903 R32088 715 2,526 505 8,488 202 11,729 R32141 1,139 2,329 466 12,261 292 15,729 R32089 334 595 119 2,468 59 3,397 R32090 869 1,710 342 5,760 137 8,339 R32092 1,068 450 90 6,750 161 8,268 R32094 3,689 1,000 200 5,200 124 9,889 R32100 870 1,020 204 4,460 106 6,350 R32138 513 1,560 312 225 5 2,298 R32145 864 173 864 R32146 698 380 76 1,925 46 3,003 R32147 690 3,914 783 1,274 30 5,878 R32106 4 1,454 291 9,844 234 11,302 R32108 740 740 R32109 1,653 3,126 625 16,948 404 21,727 R32110 431 486 97 3,213 77 4,130 R32112 2,230 624 125 22,165 528 25,019 Sum 455,761 US$ 282,555

6. Community Assets

195. The RP has to take account of the costs involved in replacing community infrastructure. This includes re-establishing or constructing intersections with existing roads; water, gas, electricity, irrigation and telephone infrastructure; civic buildings and community facilities (wells etc). Table 28 outlines the details of all community assets that will need replacing and the agency that will undertake that work at their own cost.

196. Community structures will be fully replaced or rehabilitated to maintain their pre-project functions. In the case of community infrastructure for elderly or children, additional safety measures will be put in place.

197. There is one school that will lose toilet blocks. The cost of rebuilding has been calculated using indicative rates from rebuilding houses and outlined in Table 28. It assumes that equipment and fittings will be salvaged and re-used in the reconstruction. 198. The total cost of Community Asset Replacement is 3,848,340,000 Sum ($2,385,827).

IKS GROUP OF COMPANIES 41 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 28 : Community Asset Costs Items Description ’000 Sum US$ Agency Road Water Mains 250,000 154,990 Fund Road Gas Mains 3,000,000 1,859,888 Fund Road Electricity Mains 590,000 365,778 Fund Telephone Lines n/a n/a Canals n/a n/a Wells n/a n/a School Toilets 124 m2 @35000/m 4,340 2,691 Trees, safety Road School Fencing fencing / crossings, 4,000 2,480 Fund /Safety and noise barriers Total 3,848,340 2,385,827

D. The Valuation Process

199. Asset Valuation - Initial asset (buildings, crops, trees, businesses) valuation has been undertaken by the Safeguards team. It will be verified and certified first by the RF Social and Land Acquisition sub-Unit and then by the District LARC. If the DP agrees with the valuation, then this will be used as the basis of negotiation between the owners and the local authorities. If the DP disagrees with the valuation, Uzbek Law (Cabinet of Ministers Resolution N97 dated May 2006) allows for them to utilize an independent valuer at their own cost. In conformance with ADB requirements, this cost will now be paid by the RRF.

200. Land for Land - The District LARC decides on the assignment of alternative land plots. Given the complexity in this project and the lack of readily available land this process is still being undertaken. Associated infrastructure requirements - service roads, drainage, sanitation, water supply, irrigation and electricity facilities – will be provided as part of site- preparation costs. All relocation activities will be carried out with the consent and cooperation of the displaced people and the local authority will be instrumental in carrying out resettlement activities as scheduled.

201. Unviable Land – In some cases the business, residence or farm becomes unviable due to significant land acquisition. In these cases the DP has been contacted in the first instance to assess their views. Farmers and businesses are well able to assess this impact. Those with housing plots are already vulnerable. The remaining land may be used to supplement adjacent DP’s losing less land. The District LARC is responsible for negotiating with groups of DP’s on the best way to reallocate lands. DP’s may also develop their own methods for reallocating land and present this to the LARC.

E. Entitlements Matrix

202. Table 29 outlines the complete entitlements matrix for the project.

IKS GROUP OF COMPANIES 42 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 29: Entitlement Matrix Type of Specification Displaced People Compensation Entitlements Loss Land for land compensation with plots of equal value/productivity, comparable location and services ( or compensation to provide such services) to plots lost with registration Farmer/Titleholder and transfer charges if any to be borne by the project;

Unaffected portions of a plot will also All land be compensated if they become losses unviable after impact occurs. independent Leaseholder Transfer of lease to other plots of of impact (registered or not) equal value/productivity of plots lost severity Permanent Cash indemnity corresponding to their loss of Agricultural workers salary in cash and in kind for the Arable Land losing their contract remaining part of the agricultural year/or contractual period.

1 rehabilitation allowance equal to 1 Non-titled year's net income from the affected cultivators land (in addition to lost crop compensation) for land use loss. Additional 1 severe impact allowance equal to provisions for Farmer/Titleholder the net income from annual crop severe Leaseholder and production (inclusive of winter and impacts Residential Garden summer crop in addition to standing (> 10% of crop compensation) and the waiving of land taxes and fees loss) Land for land compensation through provision of a plot comparable in value/location to the plot lost including services (or compensation to provide such services) to plots lost with Residential/ Titleholder registration and transfer charges if any Commercial to be borne by the project; Land Unaffected portions of a plot will also be compensated if they become unviable after impact occurs. Provision of a new plot of equivalent Non-titled owners size and improved value Cash compensation at full replacement rate for affected Owners structure/fixed assets free of Housing Full or partial (with/without salvageable materials, depreciation and loss of house or building and transaction costs. Salvageable Structures structures registration) material will be allowed to be taken away by owner at no cost.

IKS GROUP OF COMPANIES 43 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 29: Entitlement Matrix Type of Specification Displaced People Compensation Entitlements Loss Cost of replacing water, electricity, gas and phone connections will be included in the compensation.

For partial impacts, cash compensation at replacement rates to restore remaining structure.

Unaffected portions of the structure will also be compensated if they become unviable after impact occurs Compensation of income lost as a result of the loss of the tenancy of Tenant/Leaseholder houses, buildings and structures plus new lease or cash compensation for the remaining period of the lease.

All DPs (including Cash compensation equivalent to the Standing Crops non-titled land gross income from the crop calculated Crops affected owners at the market value of the total annual produce from affected land. The full cost of seedling, cost of All DPs (including preparation of a garden and lost profit Trees Trees non-titled land at annual income multiplied by the affected owners) number of years till the trees gain fruiting Cash compensation equal to 6 month's income where loss is Temporary/ permanent. permanent Business/ loss of Business Owner Employment Compensation is estimated on the business or basis of tax declarations, imputed employment earnings or average income in this area. Indemnity for lost wages for the period of business interruption (including Worker/employees fixed by oral agreement with employer) for a period of 6 months.

1 additional allowance equal to 3 Vulnerable DP: DP Livelihood months at $35 per family member per below poverty line month.

IKS GROUP OF COMPANIES 44 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 29: Entitlement Matrix Type of Specification Displaced People Compensation Entitlements Loss

Priority for employment in project- related jobs, training opportunities, self-employment and wage employment assistance

Provision of up to US$100 cash All DPs affected by Transport compensation to cover transport relocation Cost / expenses to new locations. Relocation transitional livelihood House owners and Will receive 3 months’ salary (based costs tenants who are on wage receipts or agreements) to employed allow time off for work to relocate Loss or Rehabilitation/replacement of affected damage to Community structures/utilities (i.e. mosques, public assets footbridges, roads, schools, health infrastructure centers, etc.) to pre-Program level and utilities

IKS GROUP OF COMPANIES 45 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IX. RELOCATION OF HOUSING AND SETTLEMENTS

203. This section describes the options for relocating housing and the activities that will be conducted to assist the process.

204. The District LARC is currently assessing options for relocation of land plots, structures and farmland. The “jigsaw” is a complex one, particularly as most of the land adjoins desert areas that take a long time to return to agriculture.

205. Alternatives that are being considered include utilizing unused alienated land from some plots to supplement land of adjacent plots, so that they return to full capacity. Some farmers have indicated that they would gladly return some adjacent land to the state so that it could be used to house displaced households. Until such time that the DLARC is able to rationalize this assessment, it is difficult to know where each DP will be relocated. The over- riding principle of the process is that DP’s will remain in very near locale to their current land, so that they retain their systems of social capital.

206. Many farmers and households are actively planning and proposing alternatives to the DLARC. This has been facilitated through the extensive public consultation process. In particular, the focus group discussions with communities outlined and encouraged the idea of proactively developing potential alternatives for relocation.

207. Further details regarding relocation will be forthcoming as the DLARC finalizes is allocation processes:

Final Alignment - After receiving the final project corridors (expected end of October 2010), the process for replacement land’s selection and identification can be started. The district’s land acquisition and resettlement committee (LARC) with technical guidance from the Engineering and Safeguard Team of PMU will select and identify the replacement lands with equal value/ productivity in a nearby location and with comparable associated facilities/ services. The selection and identification process is subject to evaluation by the independent external monitoring agency (EMA).

Safeguard Team establishment - The PMU has to establish the safeguard team as soon as possible and appoint required staff with adequate background, skill and experience to ensure the quality of preparation and implementation of LARP documents.

DP registration - Formalization of DP’s identification need be given to each displaced household. This can be in form of special cards or a letter issued by the responsible agencies (District LARC and Road Fund).

External Monitoring Agency - The EA is responsible for the selection of an independent monitoring agency (EMA). The EMA must be selected from among qualified organizations / persons in Uzbekistan.

Cadastral Specialist – A cadastral specialist will work with and provide support to district cadastral offices. It is suggested that the proposed specialist work closely with the PMU safeguard team, the DLARC and the appointed EMA. This specialist would assist the district LARC with a more timely completion of the task.

208. The Land Reallocation should include the following process:

IKS GROUP OF COMPANIES 46 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Identification of all physically and economically displaced households, their leased land and connected services. Also identification of lands that are used but remain unleased. Draft outline of the process to combine all the land a DP uses (leased and unleased) into one “lease”, so that they are eligible for “land for land” compensation. Preliminary identification of appropriate land parcels for “land for land” reallocation prior to discussions with DP’s. Conduct of discussions with all DP’s (farmers, households and businesses) regarding alternatives for where they may be moved. Note that this must only be undertaken with the supervision of the EMA. Preparation of a draft “implementable land re-allocation plan” outlining proposed new land parcels for each DP; any voluntary land contributions from farmers; land preparation requirements (cost and locations of water, gas, roads etc); associated maps and, a draft agreement for each DP (containing lease number, total land size, new location and services/facilities to be provided) signed by the LARC, DP and EMA. Note that this plan should be fully implementable, subject only to final detailed design of the project.

IKS GROUP OF COMPANIES 47 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

X. INCOME RESTORATION AND REHABILITATION

209. This section briefly describes programs for restoring and enhancing income of vulnerable groups, particularly women and the disabled. It proposes training programs.

A. Special Assistance to Vulnerable Groups

210. ADB guidelines and the LARF provide for additional payments to be paid to vulnerable households. These payments are in the form of livelihood, relocation and severe impact allowances. They are summarized in Table 30.

Table 30: Compensation for Vulnerable Groups ('000 Sum) Households People Rate Total Allowance Type '000 '000 Sum Sum Poverty 44 279 Female Headed 13 68 Disabled 8 49 Livelihood Elderly 29 253 Sub Total 58 411 169 69,609 (without double counting) Residence & 22 125 Business Businesses 2 10 Relocation Sub Total 24 135 160 3,840 (without double counting) Farms and Severe Impact 44 Varies* 62,400 Households Salary Support - --- Total 135,849 USD 84,221 Sever Impact allowance for HH losing >10% productive land. Allowance is payment of an extra years crop (crop, tree, fruit) loss. Calculations based on agricultural loss in Annex G.

211. Livelihood Allowance - For those DP’s who are vulnerable – female-headed, poor, or face significant hardship due to elderly or disabled family members – an allowance of 169,365 Sum ($35) for three months will be paid for each household member. There are 58 vulnerable households containing 411 people. Total livelihood allowances are 69,609,015 Sum ($43,155).

212. Relocation Allowance – All DP’s who will have to move from their house will receive a relocation allowance based on where the DP is moving, to allow self-relocation. Maximum compensation payable is 160,000 Sum per household. As 24 households and businesses are relocating their residences, this equates to a total payment of 3,840,000Sum ($2,381).

213. Salary Support during relocation – All DP’s who have employment (formal or otherwise) will receive up to 3 months’ salary to cover the time taken to relocate. This will be based on documents from employer or wage receipts. At this stage there is no indication that this will be required.

IKS GROUP OF COMPANIES 48 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

214. Severe Impact Allowance – For farmers and houses with crops/gardens, a severe impact allowance will be paid if more than 10% of their land is acquired. This will be equal to 1 year’s crop value whether or not the standing crop has been harvested and paid. The project will have severe impacts on 41 households and 3 farms, requiring an additional 62,400,000 Sum ($38,686) to be paid.

215. Maintenance of Social Capital - The LARC will relocate all DP’s within the immediate area so as to maintain kinship groups and other forms of social capital.

B. Opportunities to derive development benefits

216. Development benefits will be provided under the community capacity building component of the project and from within the project budget.

1. Community Development Component

217. This subcomponent valued at US$200,000, will minimize road externalities on gender and local community and target them as beneficiaries of the road development. Consulting services under this subcomponent will support capacity development for the Road Fund and the local communities living along the Investment Program road. It will also conduct needs assessment for developing the social and healthcare infrastructure and execute the corresponding actions:

218. Priority Work Placement – All DP’s and project stakeholders, such as herders will receive priority entitlement to work in construction crews and for rehabilitation efforts (such as tree replanting). These standards will be incorporated in construction contracts and details included in progress reports.

219. Tree Planting – the support of tree planting groups by DP’s to revegetate lost trees along corridors, fence lines and canals. Funding would assist with seedling preparation, planting and maintenance.

220. Community Road side facilities – Small scale support funding for women’s groups to build and maintain (through charges) roadside toilet, water facilities. Areas could also include shaded areas suitable for market stalls to sell produce; a combined canteen/magazine/public toilet/shower/Paynet shop.

221. Small scale vocational training – particularly for women and the poor – activities would include sewing workshop, hair-cutting, auto-mechanic and a tree nursery.

222. Dedicated community meeting building and shaded area is constructed.

2. Other Project Costs

223. In addition, other costs to be provided under the LARP include those of the Mahalla committees, safeguards consultants and the External Monitoring agency. Table 31 outlines the expected costs of providing these services and the agency responsible for payment. The total amount payable is 462,866,000 Sum ($286,960)

IKS GROUP OF COMPANIES 49 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 31 : Other Costs (‘000 Sum) Items Amount Responsible Agency Community Education a 4000 District khakimiyat Resettlement Consultant PMUb 33873 PMU Resettlement Consultant – Supervision 33873 Construction External Monitor d 64520 PMU Mahalla Committees e 4000 District khakimiyat Community Development Component 322,600 PMU Total 462,866 USD 286,960 a This cost will be paid by EA from LARP budget b This cost is envisaged under Procurement and Safeguard consultant package of the project c This cost is envisaged under Procurement and Safeguard consultant package of the project d This will be paid by PMU (contingency expenses) e This cost will be paid by EA from LARP budget

IKS GROUP OF COMPANIES 50 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XI. RESETTLEMENT BUDGET AND FINANCING PLAN

224. This section provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation.

A. Responsibilities

225. In order to ensure that sufficient funds are available for LAR tasks, the Road Fund will have to allocate 100% of the cost of compensation at replacement cost and expected allowances estimated in each LARP plus contingencies before LARP implementation. As the EA, Road Fund will be responsible for timely allocating the funds to implement the LARPs. Allocations will be reviewed bi-annually based on budget requirements indicated in the LARPs.

226. The EA will be responsible for including LAR funds for project activities in each fiscal years government budget. The budget for LARPs will be disbursed by RRF via the Province LAR committee to the District LAR Committee which will in turn distribute the compensation to DPs.

227. The EA will be responsible to allocate adequate budget for the Safeguard Team to conduct their tasks and responsibilities during the Program's activities. This will be funded via Procurement and Safeguard Support package.

IKS GROUP OF COMPANIES 51 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

B. Budget Summary

228. The complete budget for LAR activities on Project 3.2 is shown in Table 32. It indicates a total budget of 1,637,618,000 Sum or US$1,015,262.

Table 32: LAR Entitlement Summary ('000 Sum) ‘000 Sum US$ Land Preparation Costs* 1,578,200 978,424

Support for Vulnerable Households Livelihood Allowance 69,609 43,155 Relocation Allowance 3,840 2,380 Severe Impact Allowance 62,400 38,686 Salary Support 00

Sub-Total (PMU Costs only) 1,488,744 922,966

Contingency (10%) 148,874 92,297

IKS GROUP OF COMPANIES 52 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XII. INSTITUTIONAL ARRANGEMENTS

229. The main institutions that will be involved in LAR activities are Republican Road Fund/ Road Fund as executing agency (EA), Safeguard Team, Design Institute (DI), Project Consultants (PC), Provincial (Province) and District (District ) and municipal towns authorities, Goskomzemgeocadastre (State Committee on Land Resources, Geodesy, Cartography and State Cadastre (SCLRGCSC) at district level.

A. Republican Road Fund (Road Fund) – PMU

230. The Road Fund will have overall responsibility for all aspects of the program. The Program Management Unit (PMU) within Road Fund will be responsible for the day to day management of the Program including cross-agency coordination, and via the Safeguard Team (ST) for LARP implementation and monitoring the compensation and disbursement.

231. The Safeguard Team (ST) under PMU will be directly involved in all LAR related planning, implementation, inter-agency coordination, monitoring and reporting. They will receive supports from the Project Appraisal Consultants (PAC) of the Program and benefit from inputs from the Design Institute (DI), district/municipal executive powers and SCLRGCSC as appropriate. The Safeguard Team in collaboration with the DI will review the LARPs.

232. If required, an NGO or impact assessment or valuation teams will be hired for on-site impact surveys or monitoring assistance.

B. Design Institute (DI)

233. The Design Institute will be in charge of elaborating the design and construction documents for the project. It will collaborate and work closely with the PMU/ Safeguard Team and PAC to: (i) look for measures and alternatives to avoid and minimize land acquisition and resettlement impacts; (ii) assemble all documents required for compensation; (iii) carry out topographic surveys of the expropriated land and replacement lands; (iv) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces differentiating the land use patterns in the areas being occupied to serve as a base for the selection of compensation land; (v) Conduct land marking and pegging of the land assigned for temporary use and permanent occupation of acquired land.

C. Regional and District SCLRGCSC

234. This is a permanent committee at Provincial and District level. However it plays an enhanced role throughout implementation. It is responsible for: i) identifying land losses incurred by land owners and land users plus agricultural output losses; ii) determining the degree and area of land restitution, including removal and temporary storage of productive soil layer; iii) determining the need for protective sanitary and water protection zones around constructions; iv) preparing proposals on allocation of land plots of equal value under land for land; v) investigating alternatives to acquiring currently used land through developing unused land; vi) approving the Implementation Act and the attached plan; vii) Amending government edicts on land use and land ownership as well as other cadastre documents.

IKS GROUP OF COMPANIES 53 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

D. Province/District Governments

235. Local government agencies involved in the LARP review and implementation are Province (Province) and District (District) Executive Authorities who will form the Province Commission on Land Acquisition and District Evaluation Commissions. These will form a provincial land acquisition and resettlement committee (PLARC) which will undertake the following: (i) outline locations of constructions and structures affected by the project; (ii) select land for construction sites; (iii) prepare and approve legislation for the right (title) to use land plots and; (iv) approves the Act for the right to use the land plot.

236. In addition to permanent members, the Commission may include representatives of Road Fund, as well as affected legal entities and individuals.

237. The PLARC will also estimate losses of land owners and land users in accordance with ADB specifications in addition to losses resulting from land acquisition based on data provided by the Design institute. The Commission will prepare Acts for the right to specific plots of land specifying the acquired land area and losses and allowances as determined under the LARF entitlement matrix.

238. It is proposed that Land Acquisition and Valuation Committee as part of the PLARC composed of the following members:

239. All affected legal parties and individual persons (or their legal representatives) will have representation on the committee. Besides state organizations and structures, NGO’s, Farmer’s and Dehkan Associations (FDEA) and Mahalla authorities will be involved in resettlement activities to ensure the legal rights and interests of land users who are subject to land acquisition and resettlement.

240. Some members of the PLARC will form a Grievance Redress Committees (GRC) and will be established at provincial and district level. It comprises members of the PMU/ ST, leaders of affected Mahallas and local government/ Hokimiyat.

IKS GROUP OF COMPANIES 54 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Asian Republican Road Development Fund as Executing Figure 1: Project Implementation Diagram Bank Agency

Program Management Unit (PMU) Safeguard Team (ST) (Oversees LAR planning, implementation, and monitoring)

Reporting Supervision Information Exchange Consultants Monitoring

Design Road Construction Contractors Institute

External Monitoring Agency

District SCLRGCSC (including Land Acquisition and Valuation Regional/District Committee and Land Grievance Redress Acquisition and Citt Resettlement Committee)

IKS GROUP OF COMPANIES 55 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XIII. IMPLEMENTATION SCHEDULE

241. This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities synchronized with the project schedule of civil works construction.

A. Pre-Resettlement Activities

242. The PIU will undertake a brief verification of the RP based on the alignment finalized by the detailed design. Any modifications to the RP will be made, and verified with the PMU and the ADB prior to any LAR activities commencing.

243. The revised LARP will have to include the full details of all land and resettlement arrangements, including verification of asset viability by the DP’s. It is expected that this can take place prior to loan approval by ADB.

244. The Design Institute in charge of elaborating the design and construction documents for the road construction subproject will assist the PIU to: (iii) assemble all required documents; (iv) carry out topographic surveys of the expropriated and compensation lands; (v) elaborate layouts indicating the location of the worksites and the permanent infrastructures and the perimeter of the required surfaces; (vi) establish layouts of the lands proposed as option for compensation; (vii) Conduct the land marking and the pegging of the lands assigned for temporary use and permanent occupation and of the compensation lands.

245. The DP’s will sign a document signifying their satisfaction on the compliance of RRF on the agreement. The PIU Social/Resettlement Specialist will guide the RRF in preparing a pro- forma document to be used for the settlement of obligation in the purchase of affected land and/or materials for all structures.

246. Disbursement of cash will follow the approval of budgets for cash compensation. The RP Team will inform the DPs of the schedule of fund release. They will also advise the DPs to produce acceptable legal documents pertaining to their identification for claiming the compensation. It is the main responsibility of RRF to ensure that all the compensations and entitlements have been paid to and settled with DPs prior to their resettlement.

247. All resettlement activities will be completed prior to clearing the construction sites. The RRF will initiate the following steps in releasing the cash compensation and entitlements to DPs: The Resettlement Team will advise the DPs of the fund release schedules. The Resettlement Team shall then advise the DPs to produce the necessary legal documents for their identification in claiming the compensation and entitlements due to them. The Resettlement Team will arrange for receipt of the resettlement compensation from the Ministry of Finance and disburse it directly to DPs on presentation of identification. The Resettlement Team will arrange for district Hokimiyat to issue new title directly to DPs on presentation of identification. The Resettlement Team will require the DPs to sign a document indicating the receipt of their compensation and entitlements. The DP’s will then begin their process of rebuilding and relocation. The Resettlement Team will require the DPs to sign a document indicating

IKS GROUP OF COMPANIES 56 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

completion of their LAR activities, indicating that they have no further claims. This will be summarized by the RRF and forwarded to ADB as part of no- objections for commencement of construction.

248. As a condition to approve the civil works contract award both the RP in English and in Russian and the information booklet will be updated, re-approved by ADB and re-disclosed to the affected communities.

B. Implementation Phase

249. The project loan is expected to be approved in March 2011 and the loan is expected to be effective by April 2011. Construction is set to start at the end of July 2011. An implementation schedule is outlined in Figure II.

C. Post Resettlement Implementation Phase

250. Monitoring of resettlement activities and the compliance of the project policies by the RP Team on behalf of RRF, as set out in this framework, are the items for this phase. This is because the internal monitoring which is the responsibility of the RP Team will be the basis for RRF requesting from ADB its “no objection” for the mobilization of construction contractors. ADB will also conduct a mid-term evaluation to ensure that there are no adverse involuntary resettlement effects.

IKS GROUP OF COMPANIES 57 TASHKENT,OCTOBER 2010 TA 7573-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IKS – GROUP OF COMPANIES 58 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

XIV. MONITORING AND REPORTING

251. This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of displaced persons in the monitoring process. This section will also describe reporting procedures.

252. The primary objective of monitoring is to identify as early as possible the activities achieved and the cause(s) of constraints so that the arrangements in the LARP implementation can be adjusted. Monitoring is important because LARP implementation is often the critical path for any project where civil works is involved, due to issues on land acquisition, compensation and resettlement that may cause delay in civil works. The early identification of the causes of delay will enable the RRF (with support from the supervision consultants), to prepare the mitigating measures during LARP implementation.

253. LAR tasks will be monitored internally and externally. Internal monitoring (IM) will be carried out by both the Safeguards Team of the PMU and the Supervision Consultant (SC). In conjunction with District Hokimiyat. External monitoring (EM) will be assigned to an Independent Monitoring Agency (IMA) hired by the RRF and approved by ADB from among local consultants or NGOs. The IMA will be mobilized prior to LARP implementation.

A. Internal Monitoring

254. All activities in LAR are time bounded. Internal monitoring (IM) will be carried out by the PMU Safeguards Team with the assistance of the supervision consultant safeguard team and the LARC in the District Hokimiyat. Process indicators will relate to implementation outputs and deliverables. These will be collected directly from the field, and will be reported monthly to the PMU to assess the LARP implementation progress and adjust the work plan if necessary. These reports will be quarterly consolidated in the supervision reports for ADB.

255. Specific IM benchmarks will be: (i) Information campaign and consultation with DPs; (ii) Status of land acquisition and payments on land compensation; (iii) Compensation for affected structures and other assets; (iv) Relocation of DPs; (v) Payments for loss of income; (vi) Selection and distribution of replacement land areas; (vii) Income restoration activities; and (viii) Ensure the gender mitigation measures are adhered to during the internal monitoring and reporting process.

256. The above information will be collected by the Project Supervision consultants who will monitor the day-to-day resettlement activities of the project through the following instruments:

(i) review of census information for all DPs (ii) consultation and informal interviews with DPs (iii) key informant interviews; and (iv) Public community meetings.

257. Upon the completion of civil works, the PMU will prepare a post-LARP implementation evaluation report that will assess both the permanent and temporary land acquisition activities and impacts of the Project focusing on the restoration of impacted lands and conditions of DPs especially those who were identified as vulnerable.

IKS GROUP OF COMPANIES 59 TASHKENT,OCTOBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

258. In addition, the PMU will update the LARF and particularly the Uzbekistan/ADB safeguards policy matrix, with a view to aligning Uzbekistan’s CSS and reducing LARP reporting requirements.

B. External Monitoring

259. To ensure that negotiated settlements in the Project comply with ADB SPS 2009 requirements, the PMU will hire an external monitor to document the negotiation and settlement processes. The EM will observe the consultations conducted with DPs and the compensation payments negotiations. The EM will verify if the consultations are conducted in a free and transparent manner and that the compensation provided is based on replacement costs of land and other assets affected. They will submit a report on the observations and the evaluation. The EM will come from an independent organization, such as an academic or research institute, a nongovernment organization or consulting firm with experience in resettlement monitoring and evaluation.

260. External monitoring (EM) will be carried out on an ongoing basis, and its results communicated to the PMU and ADB by quarterly reports. Indicators for EM tasks include:

(i) Review and verify internal monitoring reports prepared by PMU, (ii) Review of the socio-economic and census and inventory of losses baseline information of pre-displaced persons; (iii) Identification and selection of impact indicators; (iv) Impact assessment through formal and informal surveys with the displaced persons; (v) Consult DPs, officials, community leaders for preparing review report; (vi) Assess the resettlement efficiency, effectiveness, impact and sustainability, drawing lessons for future resettlement policy formulation and planning; (vii) Ensure the gender mitigation measures are implemented.

261. The EMA will also assess the situation of displaced vulnerable groups such as female- headed households, disabled/elderly, the landless and families below the poverty line. The following will be considered as the basic indicators in monitoring and evaluating the project:

(i) Socio-economic conditions of DPs in the post-resettlement period; (ii) Communications and reactions from DPs on entitlements, compensation, options, alternative developments and relocation timetables etc. (iii) Changes in housing and income levels; (iv) Rehabilitation of squatters, severely displaced people, and different vulnerable groups; (v) Valuation of property; (vi) Ability to replace lost assets; (vii) Disbursement of compensation and other entitlements; (viii) Level of satisfaction of DPs in the post resettlement period; (ix) Quality and frequency of consultation and disclosure; and (x) Conduct of grievance procedures.

262. Internal and external monitoring and reporting will continue until all LAR activities have been completed. External monitoring reports will be disclosed on the Project/ADB website.

IKS GROUP OF COMPANIES 60 TASHKENT,OCTOBER 2010 Annexes Annex A

Census and Socio Economic Survey Forms Annex A

Survey - farm - preparation of resettlement plan under the ADB project Title of farm, ______Name of farmer Home address Total farm area (ha) Distance to the district center*

2007 2008 2009 Forecast 2010 Sown area total (ha) Including wheat cotton

Yield (centner/ha) wheat cotton rice

Gross harvest (tons) wheat cotton rice Repeated cropping (ha) Yield (centner/ha) Gross harvest (tons) Price of 1 ton (000’ sum) Economic indicators for 2009 wheat cotton vegetables curcurbitaceous The cost of production (millions) Including wages Cost of production (million) The average price of 1 ton (000 sum) Profit +, loss-(million) Profitability (%) Average number of workers Including permanent ones

Land aquisition Length __ __ (m), passing through the crops Width: ______road (m) Land area alianiated (ha) Affected workers (persons)

Signature of officials Date File "Crops Orchard Farm Survey

Economic performance of the farm

Land acquisition in 2010.

The length of the road crossing the garden (m) Including via Apple trees apricot trees width of the road (m) Area total (ha) Including via Apple trees apricot trees

Signature of officials Date

*) indicators shall comply with the regional cadastre and tax departments **) indicators shall comply with the District Department of the State Property Committee, the remaining indicators shall comply with) the regional Department of statistics, farms and dehkan farms report to. Asian Development Bank QuestionnaireID:|R|___|___|___|___|___|

Type/Project/AP# Household Questionnaire Dateofsurvey Location Oblast Rayon Y N Mahalla ReceiveMahallaAssistance? Nameofsurveyor HouseholdName

Household Employment

Doyouconsideryourselfdisadvantagedbecauseofthis?

Howmanyotherhouseholdsinyourminoritydoyouknow?

listinorder1 Howshouldtheroadauthorityinvestinroads? 5 rehabilitateexistingroad Constructnewroad Improvebusesandbusstops Increasepublictransportfrequency improvepublictransportcoverage/routes

Business Ownership TypeofBusiness Registered ValueifBusinessSold IncomeperYear ExpenditureperYear ProfitperYear

Workers Number FullTimeEquivalent AvgSalary Total

Tenants RentPaidpermonth UntilWhen?

MitigationMeasures

Commentonpotential Relocationand/or Compensation requirements. Annex B

List of Displaced Persons Annex B List of affected persons

ID Title of the farm and km Name Address number business

Ap8 581 Polvon shop Turtkul, Ok Boshli OAC AP9 581.7 Abdullaev Ismail Ibragim Buhgalter Turtkul, Ok Boshli OAC AP10 582.3 Davron Yuldashev gas station Turtkul, Ok Boshli OAC AP11 582.4 Matnazirov Yuldosh Yuldos Uhzbek Turtkul, Ok Boshli OAC AP13 582.5 Turebekob Aybek shop Turtkul, Ok Boshli OAC AP12 583.1 Nematjon Turtkul Ltd gas station Turtkul, Ok Boshli OAC AP18 585.7 Ametov Jumanazar Turtkulli Donier Turtkul, Ok Boshli OAC AP26 599.4 Karataeva Zuhra Abajan Durdiev OAC Ap130 600 Kaltasheva Bibigul Kaltaminor OAC (Elamanov OAC) AP28 600 Bayramov Jumamurod Kaltaminor OAC (Elamanov OAC) AP29 600.1 Chaklieva Oguljon Kaltaminor OAC (Elamanov OAC) AP34 600.2 Haltashev Holnazar Kaltaminor OAC (Elamanov OAC) AP35 600.2 Saparov Gichgeldi Kaltaminor OAC (Elamanov OAC) AP32 600.3 Atamuradov Hakmurod Kaltaminor OAC (Elamanov OAC) AP33 600.3 Atamuradov Allonur Kaltaminor OAC (Elamanov OAC) AP36 600.4 Kakabaeva Gulnihon Kurban Nazarbuh Elamanov OAC AP42 600.7 Halieva Meretsultan Nursultan Kaltaminor OAC AP43 601.8 Allaberdiev Ilyos Kaltaminor OAC (Elamanov OAC) AP44 601.8 Gushabaeva Guloim Kaltaminor OAC (Elamanov OAC) AP45 601.8 Berkliev Gechgeldi Kaltaminor OAC (Elamanov OAC) AP47 601.9 Amansatova Dastagul Kaltaminor OAC (Elamanov OAC) AP48 601.9 Berdiklicheva Saparbay Kaltaminor OAC (Elamanov OAC) AP49 601.9 Nursatova Sapargul Kaltaminor OAC (Elamanov OAC) AP50 602 Berdiklicheva Sapargul Kaltaminor OAC (Elamanov OAC) AP51 602.1 Shaliev Meretdurdi Kaltaminor OAC (Elamanov OAC) AP132 602.2 Arazdurdieva Z. Kaltaminor OAC (Elamanov OAC) AP133 602.2 Satliklichev Davlet Kaltaminor OAC (Elamanov OAC) AP52 602.2 Bayramtaganova Aysara Toza Aqqa Elamanov OAC AP53 602.6 Tagankilichev Ashir Meret Kilich Elamanov OAC AP57 603.5 Taylakov Kaltaminor OAC (Elamanov OAC) AP58 603.5 Elamanov Jalal Kaltaminor OAC (Elamanov OAC) AP140 603.5 Khamraev Kalandar Kaltaminor OAC (Elamanov OAC) AP134 603.5 Kurbannazar Jumanazarov Kaltaminor OAC (Elamanov OAC) AP59 608.6 Sherimbetov Kamol Ellik Kala, Guldursun OAC AP62 608.7 Bekchanov Bazarbay Jumaniyaz Bakkol Ellik Kala, Guldursun OAC AP65 609.9 Rdjaboy Kuliev Radjaboy Kuliev Ellik Kala, Guldursun OAC AP68 610 Kurbanov Ellik Kala, Guldursun OAC AP135 610 Razzakova Raima Ellik Kala, Guldursun OAC AP73 610.7 Kulimbetov J Mardon Kulimmat Ellik Kala, Navoi OAC AP70 610.2 Karimov Hudaybergan Ellik Kala, Guldursun OAC AP74 611.075 Shamanov Doston Latif Sart Turtkul, Namuna AP75 611.375 Shavkat Aitov Aitov Shavkat Turtkul, Namuna AP82 617.3 Kenjaboy Urazbaev Ellik Kala, Sarabi OAC AP83 617.4 Reimov Temirbek Ellik Kala, Sarabi OAC AP84 617.6 Kenjaev Holjon Ellik Kala, Sarabi OAC AP85 617.7 Kenjanov Ramiddin Ellik Kala, Sarabi OAC AP88 618.2 Nurmahanov Ungarbay Ellik Kala, Sarabi OAC Jarkinbaev (Nurmahanov's AP141 Ellik Kala, Sarabi OAC brother) AP89 618.3 Kultimuratova Zulayhon Ellik Kala, Sarabi OAC (Dumankala) AP90 618.4 Kuresbaev Jumakul Ellik Kala, Sarabi OAC (Dumankala) AP92 618.5 Kutpanaev U. Ellik Kala, Sarabi OAC AP94 618.9 Usupov Shavkat Ellik Kala, Sarabi OAC AP95 618.95 Ibragimov H. Khurshid Ellik Kala, Sarabi OAC AP96 619.3 Kenjaev Ibodilla Furkat Ellik Kala, Sarabi OAC AP97 619.55 Turaev Safarboy Sarabiy Bunyod Ellik Kala, Sarabi OAC AP100 620.15 Kenjaev Tuhtaboy Ellik Kala, Sarabi OAC AP138 620.15 Hudayberganov Otahon Ellik Kala, Sarabi OAC (Dumankala) AP145 620.15 Ramanova Sapargul Ellik Kala, Sarabi OAC (Dumankala) AP146 620.15 Karimov Islam Ellik Kala, Sarabi OAC (Dumankala) AP147 620.15 Egamberdieva Gavhar Ellik Kala, Sarabi OAC (Dumankala) AP104 620.3 Sagdullaeva Marifat shop Ellik Kala, Sarabi OAC (Dumankala) AP105 620.4 school Ellik Kala, Sarabi OAC (Dumankala) AP106 620.45 Otajonov Hudaybergan Ellik Kala, Sarabi OAC (Dumankala) AP107 620.5 Aminov Kadam Turkiston Durdonasi Ellik Kala, Sarabi OAC AP108 620.6 Otajonova Ambar Ellik Kala, Sarabi OAC AP109 620.7 Otajonova Nurmamat Ellik Kala, Sarabi OAC (Dumankala) AP110 620.7 Kabulov Kadam Ellik Kala, Sarabi OAC (Dumankala) AP111 620.75 Gafur Boltaev Gafur Baltaev Ellik Kala, Sarabi OAC AP112 620.79 Alimov Muso Ellik Kala, Sarabi OAC (Dumankala) AP113 621 Sapaev Kudratilla Sariohun Ellik Kala, Sarabi OAC AP115 621.4 Saparboy Rahimov Saparboy Rahimov Ellik Kala, Sarabi OAC AP119 623.2 Karamitdinov Jarlkop Karamitdin Jarlkop Beruniy AP121 624.4 Masharipov Imam Pahtachi Beruniy, Jumaniyozov mahalla AP122 624.7 Rahimov Shavkat Rahim Bobo Beruniy, Jumaniyozov mahalla AP123 625.75 Ashirov Hudoer Ashirov Radjaboy Berumiy, Sarlkop OAC Annex C

Information Brochure PROJECT INFORMATION BOOKLET CAREC Corridor 2 Road Investment Program

Republican Road Fund, Government of Uzbekistan And funded by the Asian Development Bank

INFORMATION for land owners and users on their entitlements and compensation in land acquisition for public needs

HIGHWAY SECTIONS: Project 2: Km 355 – Km 440 Project 3.1: Km 315 – Km 355 Project 3.2: Turtkul Bypass - Km 581 – Km 628

Revised July 14, 2010

1. General Project Information

Project 1 – km440 to km490 Project 2 - km355 to km440 Project 3 - km315 to km355 Project 4 - Turtkul Bypass from km581-km626

This information brochure is prepared in order to help you. 2. Preparatory Actions for Land Acquisition for Public Needs

3. Project Timetable

4. Principles for Compensation and Rehabilitation

11. Principles for the compensation/rehabilitation of families affected by the Project:

5. Compensation Entitlements

Cash compensation equal to market value Sharecroppers of the lost harvest share once (temporary (registered or not) impact) or twice (permanent impact)

Cash indemnity corresponding to their Agricultural salary in cash and in kind for the remaining workers part of the agricultural year/or contractual losing their contract period.

1 rehabilitation allowance equal to 1 year's Non-titled net income from the affected land (in cultivators addition to lost crop compensation) for land use loss.

1 severe impact allowance equal to the net Sharecroppers income from their annual share of harvest (registered or not) lost (additional to standard crop compensation)

Unaffected portions of a plot will also be compensated if they become unviable after impact occurs.

Unaffected portions of the structure will also be compensated if they become unviable after impact occurs

Compensation of income lost as a result of the loss of the tenancy of houses, buildings and structures plus new lease Tenant/Leaseholder or cash compensation for the remaining period of the lease.

Cash compensation shall reflect income replacement.

Indemnity for lost wages for the period of business Worker/employees interruption (including fixed by oral agreement with employer) up to a maximum of 6 months.

6. Grievance and Redress Mechanism

Contact Details are below:

B. Does Compensation apply to your house or structures? Yes. New structures will be provided within existing boundaries, or at a new location, or compensation will be paid.

Community Consultants – Summaries, Minutes, Attendance Annex D List of attendees and summaries of the Focus Group Discussion Uzbekistan: CAREC Corridor 2 Road Investment Program Beruniy and Ellikkala Districts August 3, 2010 List of participants In-depth/Structured interviews

Name Organization/position Contacts (phone/address) 1 Ashirov D. Chief accountant at Ashirov farm Sarkop Mahalla 524-85-58 2 Dashanova N.S. Referent of Uzb. NDP Bakhodirhon kv 102- 4 3 Hojamurodov O. Deputy Hokim of Beruniy district Hietobod mahalla 4 Kurbonbabaeva Nasiba Specialist of Kamolot Alpomish, 54 / 524-26-80 5 Kuchkorov O. Beruniy Tehgorpark Ozod str, 298 75 78 6 Rahimov Shavkat Rahimbobo farm Sarkop mahalla 7 Reymova Lida Consultant at Ibn Sino Mahalla Committee G.Gulyam, 71 8 Abdurakhmonov Umar Ellikala district Architecture department Buston Nurimbekov str, 36 9 Isamiddinov Bazarboy Head of Ellikala SZIKN Toshkent str. 37, Buston city 10 Rozigimova Hurshida Consultant at mahalla Akchakul mahalla 11 Jumaniyazova Roza Consultant at mahalla Buston U.Abdulla 2 12 Abdurakhmonova S. Specialist Buston A.Navoyi 32 13 Jarlekanov S. Sarkop farmer Beruniy Sarkop 14 Matchanov S. Head of mahalla community Beruniy district 15 Atajanov M. Deputy director of professional college Elikalla district 16 Abdurakhmanov O. Teacher at college Buston Abdulla str, 16 17 Seyulaev Sentarbey Master at college Buston Mukimiy, 13 18 Shiribaev Murod Head of department at college Ellikala mahalla 19 Primov Aibek Teacher at college Buston Rashidov str Jumanazarov Specialist at the registration bureau of 20 Buston Kishchinok Abdurakhmon businessmen inspection 21 Matyakubova Gulchekhra Doctor, Beruniy DSENT Beruniy Sirdaryo str, 7 22 Koklonov Bakhrom Driver of Buston Transport Services Beruniy 201/2 23 Masharinov Imam Director of Pahtachi Farm Beruniy Sarkenofi br. 12 24 Uysupov Gulimboy Volunteer at mahalla assembly of citizens Sh.Hakikat 12 Volunteer at Horazm mahalla assembly of 25 Ibragimov Farkhad Kam 9/6 citizens 26 Sutlimurodov Urazmat DSENM Specialist Guliston makhallya 27 Matchanov Otaboy Head of Environment Department Jumaniyazov mahalla 28 Yangibaev Kuchkar Secretary of mahalla committee Mevazor 29 Doschanov Azamat Secretary of Navoiy mahalla committee Berdak, 1 30 Sanarov Hursand Buston specialist of land resources Ellikala district 31 Sadullaeva Hamida Secretary of mahalla committee Ozod 10/1 32 Ernazarov Salim Volunteer at A.Temur mahalla Rashanov 54 33 Bekmambetov Shamsiddin Secretary of mahalla committee Duschanov 17 34 Arbinov Kahramon Secretary of mahalla committee Masharipov tupic 35 Ravshanova Dilbar Doctor, DSENM Shabbaz 8 36 Ischanov Maksud Volunteer at Markaziy mahalla committee Navoiy 16 37 Maytupoev Maksud Secretary of mahalla committee Ellikala district 38 Madamonov Bakhadir Head of Vodokanal Kurbonov 2/8 39 Masharipov Bakhodir Ovul assembly of citizens Shobbos OAC 40 Babodjonov Mashmat R.Ravshanov 41 Jumaboev Karimboy Beruniy 38 42 Saidkomolov Sulton Oromgoh 27 43 Nurimov Haytboy Ishchilar 5 44 Rashokopv Maksud Hietobod 45 Hujamurotov Ihlos Hietobod 46 Yuldosheva Oypara Jumaniyazov 49 Head of economic department of district 47 Madjanov Ravshan Uchkun 10 Hokimiyat 48 Saparbaeva M Consultant of mahalla committee Navoiy mahalla 49 Olimov Utkurbek Entrepreneur Buston city 50 Narbaev Ulugbek Saribiy mahalla 51 Majanov Umid Teacher of school 25 Saribiy mahalla 52 Majanov Pulat Teacher of 2 school Saribiy mahalla 53 Abdullaev Egambergen Head of electricity department Makhtumkuli 17 54 Yarakeev Komiljon Beruniy RUAD Ozod mahalla Turtkul District August 4, 2010

List of participants In-depth/Structured interviews

Name Organization/position Contact (phone/address) 1 Bekturdieva N Office manager Parmonov, 22 2 Todjiev Davron Specialist of inspection Str Galaba 14 3 Razzakov Zafarbek Head of mahalla committee Kirkiz kattapul 4 Hudayberdiev G Head of Keltemir mahalla Ya.Ilamakov 5 Sharipov Pirnapas Teacher of school #43 Shurakhat 6 Ramanov Ismail Fond of Nuroniy 532 27 79 7 Khudoybergenov Sattor Djalaproekt Mustakillik 65 8 Aknazarov Oybek Chief specialist at KRMHHKJF Rashidov str 9 Uyldashev Rozum Teacher at high school Radjapov 10 533- 11-80 10 Uyldashev Umid Inspector of electricity department Radjapov 11 Latipova Guzal District HDP Gagarin # 138 12 Razzakov Egamberdi Shurhokhon mahalla 13 Unusova Kurbonbibi Specialist of department Nazarov k. 47 14 Cherepaeva Nadejda District Hokimiyat Kurbanov, 50 15 Uysupov Madier Specialist of avtotehhizmat Nukus 20/2 16 Kurbanbaev Turtkul Bektemir Galaba 32 17 Atamurodov Alisher Anvar Transport company LTD Niyazenbekov 39 18 Uynusov Azamat City department of architecture Saidov 14 19 Shoistov Isobek District hokimiyat Pahtachi mahalla 20 Boltaev Jumaboy Head of Akbashli mahalla 21 Jiyanbaev Shukhrat District inspection Ayni 11 22 Khudaybergenov Alimboy District inspection Gulyam 5 23 Khasanov Ravshan District inspection Boltabaev 56 District head of Kamolot – youth 24 Babaniyazova Shahlo Setnizov 13 movement 25 Turumbetov Mahsit Accountant at college Durdiev 41 26 Abaev Mardon Teacher Kirk shosse 8 27 Kadirov Anvar Turtkul farmer Buza bugon 28 Matnazarov Umid District Hokimiyat 29 Allaberdiev Mukhtar Head of Miskin mahalla Akkamish OAC 30 Ashirov Kurbonturdi Miskin makhalla Akkamish OAC 31 Matchanov Shavkat Miskin makhalla Akkamish OAC 32 Avezmatov kholmurad Miskin makhalla Akkamish OAC 33 Soyliev Sardor Miskin makhalla Akkamish OAC 34 Muratov hokim District hokimiyat Turtkul 35 Masharipov U. Television 36 Sultanova Nasiba Director of kindergatern 6 37 Karimova Uylduz Director of kindergatern 2 38 Uyldasheva M. Director of kindergatern 29 39 Radjanbaeva Umida Director of kindergatern 4 40 Matyakubova Gulnora Director of kindergatern 3 41 Khallieva R. Director of Nukusotil farm 42 Soburov Islom Turtkul director of THPGFDK Specialist of economic department, 43 Kurbanov K. district hokimiyat 44 A.Sultanov 45 Allabergenov R. Deputy of hokim, district hokimiyat Specialist at the department of land 46 Bekchanov Sh. resources 47 Isamadinov B. Specialist at cadastre department Head of Architecture committee of 48 Utegenov K. Karakalpakstan AR 49 Aykubov Sh. Republican Road Fund 50 Karimov T. ADB consultant 51 Nuhollieva T. Head of mahalla committee 52 Jurabek H. Agro firm 796 25 56 Summary of the In-depth interviews

In Beruniy and Ellikkala districts

Topic: "CAREC Corridor 2 Road Investment Program".

Attendees: 54 people, representatives of hokimiyats and its departments, “Uzavtoyul” and other branches organizations providing road maintenance services, organizations of city infrastructure, representatives Mahalla assemblies of citizens, residents and public organizations.

Date: August 3, 2010

Place: Beruniy Hokimiyat

Facilitators: M.Bakhadirov and M.Shagazatova

Facilitator, M.Bakhadirov, opened the meeting and informed meeting’ participants about the project objectives and purpose of the meeting. He informed major stakeholder representatives about the population surveys that were conducted to examine the socio- economic situation of in the district and the problems that arise for people due to the poor quality of the roads.

The purpose of meeting and interviews was:

1. To identify the major problems related to the road and transport services, causes and consequences of the problems identified as a result of group work 2. To identify the local needs and priorities of the investments in road sector development and transport service.

The following priorities for the Investments were identified through the group works and discussions:

Areas of investment in water supply and Priority (in terms of sanitation number of votes) 1 Rehabilitation of existing road 25 2 Construction of new roads 25 Improvement of facilities of bus stations and bus 3 12 stops for passengers 4 Increased frequency of public transport means 9 Improvement of public transport coverage/betther 5 3 routes 6 Improvement of road maintenance services 10 7 Improvement of road safety and security measures 26 8 Reduced Carbon emission 5

Amongst these, three key issues were identified by the participants as of the highest priority:

Improvement of road safety and security measures Rehabilitation of existing roads Construction of new roads.

Then, all meeting participants were divided into the major stakeholders groups. Following groups were established:

Group 1 – Representatives of Mahalla Committees and their residents

Group 2 – Representatives of Social Infrastructure Organizations.

Group 3 – Representatives of Local Government

Group 4 – Representatives of SME and Farmers

Group 5 – Specialists of Uzavtoyul

Followed by discussions each group presented its findings:

Team 1(Mahallas)

Issues:

Z The proper maintenance of the existing roads is not in place. Z Most of the cafes and other food-serving facilities are located very close to the road. Z Safety of the roads and safety signs are not properly placed, in some sections. Z Inner roads’ poor quality. Z Existing bus route web is not sufficient enough to cover all populated areas. Z Non-regulated crossings of the road by cattle.

Causes:

Z Maintenance system (financing and employees) is not properly functioning. Z Lack of the proper mechanism in planning, placement and licensing the business along the road. Z Trees are planted not in accordance with the traffic regulation, blocking visibility of the traffic signs. Z Lack of control by State Traffic Control Authorities and Road Maintenance services. Z Lack of assigned crossings for cattle.

Effects:

Z Increased number of traffic accidents. Z Deterioration of the soil. Z Increased travel time. Z Worsening of the ecological situation alongside the road.

Team 2 (Local Governance)

Problems:

Z Construction of the roads goes on the expense of destruction of the plants and the land quality alongside the road. Z Bad quality of the existing roads. Z Lack of car repair shops alongside the major roads. Z Road safety issues, particularly, Road Signs are not in place. Z During the rehabilitation of existing roads, soil along the road was extensively, thus worsening the land quality.

Cause:

Z Lack of the plants along the road causes additional pollution. Z Lack of financial resources allocated for the road maintenance. Z Most of the car repair shops are located in the district centers. Z Poor maintenance of road safety signs and road marking.

Effect:

Z The increase number of traffic accidents and injuries Z Quality and productivity of the land alongside of the road are considerably affected

TEAM 3 (Education sector and Health)

Issues:

Z Lack of the safety signs indicating presence of the educational institutions such as “Children crossing the road” Z Limited network of the bus routes. Z Lack of the assigned bus stops. Z Lack of the secured sidewalks for pedestrians.

Causes:

Z Lack of the proper control on the road safety and traffic security measures.

Effects:

Z Increased risk of the injuries and traffic accidents; Z Children have to walking long distance to reach educational institutions, which increases the chances of getting sick; Z Due to Lack of the proper sidewalks children are walking on the road and under the risk of being injured.

TEAM 4 (Farmers and SME)

Problems:

Z Safety of the roads and transport means. Z Local roads which provide access to the National and International roads are in bad conditions. Z Absence of the medical services, providing first aid, along the road.

Causes:

Z Absence of the specially assigned crossings for the cattle over the highway. Z Lack of financial resources for the regular maintenance and reconstruction of the local/inner roads under local administration funds. Republican Road Fund and Uzavtoyul do not provide financing or maintenance for these.

Effects:

Z High risk of the road accidents and injuries Z Damage of transport means and high costs of the maintenace

TEAM 5 (Representatives of Road Maintenance organizations)

Problems:

Z Lack of the Gasoline Stations along the new and existing roads. Z Lack of Funds for the proper maintenance of the roads Z Road deterioration before the due date

Causes:

Z Squatter development of the open water collectors along the roads, which is significantly deteriorating the road quality.

Effects:

Z Deterioration of the roads which require more often maintenance procedures and results in overspending of the financial resources.

PROPOSALS:

Local Governance group:

Establishment of the special task committee under the local administration, responsible for the ecological issues related to the construction of new road and reconstruction of the existing roads. Allocation of the resources by Republican Road Fund for the proper maintenance of the existing and new roads (regional and local). Create favorable business opportunities for the entrepreneurs who are willing to develop their business alongside the road. Special measures should be taken in order to ensure re-cultivations of the lands across the roads.

Mahalla group proposals:

The mechanism of proper road maintenance should be carefully considered. Equipping the existing roads with traffic lane dividers. Ensure clear visibility of the road signs and traffic lights. Capacity building for the Road Maintenance organizations. Increasing awareness among the population.

Education and Health group:

Proper planning of the road system, security lanes, sidewalks and pedestrian areas. Ensuring the availability of necessary Road signs and traffic lights near the Educational Institutions, especially the schools. Extension and proper planning of the bus routes in accordance with the local population demand.

Proposals of representatives of Road Maintenance organizations:

Proper planning of all necessary infrastructures along the new road, which will best serve the passengers’ needs and demands of the local population. Increasing public awareness on the negative effects of the improper use of the roads. Proper planning and resources allocation for the maintenance of local and regional roads. Summary of the In-depth interviews

In Beruniy and Ellikkala districts

Topic: "CAREC Corridor 2 Road Investment Program".

Attendees: 52 people, representatives of local hokimiyat and its departments, “Uzavtoyul” and other branches of organizations providing road maintenance services, organizations of city infrastructure, schools, medical establishments, Mahalla Assemblies of Citizens as well as its residents and other public organizations (list is attached).

Date: August 4, 2010

Place: Turtkul district hokimiyat

Facilitators: M.Bakhadirov and M.Shagazatova

Observer: N.Nurmukhamedov

Facilitator, M.Bakhadirov, opened the meeting and informed meeting’ participants about the project objectives and purpose of the meeting. He informed major stakeholders representatives about the population surveys were conducted to examine the socio-economic situation of in the district and the problems that arise for people due to the poor quality of the roads.

The purpose of meeting and Interviews was:

3. To identify the major problems related to the road and transport services, causes and consequences of the problems identified as a result of group work 4. To identify the local priorities of the investments in road sector development and transport service.

The following priorities for the Investments were identified through the group works and discussions:

Areas of investment in water supply and Priority (in terms of sanitation number of votes) 1 Rehabilitation of existing road 6 2 Construction of new roads 39 Improvement of facilities of bus stations and bus 39 3 stops for passengers 4 Increased frequency of public transport means 21 Improvement of public transport coverage/betther 6 5 routes 6 Improvement of road maintenance services 42 7 Improvement of road safety and security measures 33 8 Reduced Carbon emission 21

Top three issues raised by the participants were:

Improvement of road maintenance services Improvement of facilities of bus stations and bus stops for passengers Construction of new roads

All meeting participants were then divided into the major stakeholders groups. Groups were established were as follows:

Group 1 – representatives of the Mahalla Committees, and their residents

Group 2 – Representatives of Local Government

Group 3– Representatives of Social Infrastructure Organizations.

Group 4 – Specialists of Avtoyul and other road maintenance organizations

Group 5 – Representatives of youth movements, NGOs

Following issues, their likely causes and the possible outcomes were presented by the groups:

Team 1 (Mahallas)

Issues:

Z Poor road infrastructure is contributing factor to slowing the progress of development and creation of new employment opportunities for the local population. Z Limited number of transport means connecting to region and district centers and other cities. Z Transportation within region is not stable without exact specific timing Z Limited number of bus stops. Z Poor condition of road surface on certain sections of the road. Z Repetitive (1-2 times a year) maintenance of roads is required due to the open-piped water flowing next to the road in summertime and gathered around it at some sections.

Causes:

Z Limited number of factories and large companies operating in the district, perhaps as a result of limited road infrastructure. Z There are no proper planned transport routes and insufficient coverage by the state agency providing transportation services; these are rather provided by private vehicle owners. Z Transportation services provided by owners of private vehicles are not carefully regulated. Z Water leakages and in pipes and canals, independently (without permission) built next to the road by the local population. Z Inconformity of the construction with the required state construction norms and procedures.

Effects:

Z Due to the lack of large companies operating in the district, particularly in Ovuls (rural areas), employment opportunities are less developed. Z Increased difficulty and travel time. Z Safety of the road and road users is under threat of accidents due to its poor surface.

Team 2 (Local Governance)

Issues:

Z Since it is planned to put fences along the Highway at populated areas, there will be a need for the assigned crossings for the people and cattle. Z After construction of the new road, the existing section will have speed limits and lose its Highway status. Z As a result of the construction of new road, it is expected that the traffic flow will drop significantly.

Causes:

Z Preference of the new road over the existing one by road users: private cars as well as the freights and trucks. Z Bearing in mind the security issues related to the road and high speed of vehicles using the Highway, it is planned that the road will be fenced across the populated localities creating the difficulties for people and cattle in crossing the road freely at any sections.

Effects:

Z Additional difficulties created for herdsmen and others who frequently cross the road, unless convenient crossing points are created at necessary points. Z As a result of decline in traffic, demand for the goods and services offered by small business across the road would significantly drop.

TEAM 3 (Education sector and Healthcare)

Issues:

Z Lack of the safety signs indicating presence of the educational institutions, “Children crossing the road”. Z Lack of centralized water supply along the road. Z Lack of the secured sidewalks for pedestrians.

Causes:

Z Lack of the proper control of road safety and traffic security measures. Z Limited development of the road Infrastructure.

Effects:

Z Increased risk of the injuries and traffic accidents. Z Due to the lack of the proper sidewalks, children have to walking on the road and under the risk of being injured. Z The lack of the water decreases the opportunities for planting and watering trees and the development of business.

TEAM 4 (Representatives of Road Maintenance organizations)

Issues:

Z Roads within and across the city require reconstruction. Z Limited number of bus-stop and other facilities across the inter-city roads. Z Absence of camping and other facilities located close to roads for freight forwarders and other road users. Z There are only 2 auto-stations in Turtkul district, while there is a need for more.

Causes:

Z Limited finances assigned for the road maintenance. Z Lack of supply of raw materials and mixes such as concrete. Z Technical and technological base of agencies responsible for road maintenance should be upgraded.

Effects:

Z Construction of new road will result in fewer burdens on the existing roads. Z Additional facilities alongside the roads, when created, would especially benefit for long-distance drivers. Z Construction of new road will create additional business opportunities for small businesses and will extend employment possibilities

GROUP 5 (Representatives of NGOs)

Issues:

Z Existing roads are not wide enough to effectively serve today’s capacity of road users. Z Roads should be repaired. Z Roads are not equipped with places or additional lanes for parking or stops. Z There are no traffic signs, special crossing for pedestrians and markings at certain sections of the road.

Causes:

Z Roads are designed about 50 years ago and therefore are not capable of handling today’s transport and freight flow. Z State of local and inner roads has not been reviewed for more than several years. Z Necessary consideration is not paid to the maintenance by the relevant road administration.

Effect:

Z Any stops on road, whether by transport means or other forces, can block it to traffic. Z There are no almost no separate lanes specially designed for pedestrials. Z Road users whether passenger or the drivers as well as the pedestrials are vulnerable to the risk of having traffic accidents.

PROPOSALS:

Local Governance:

Additional business incentives and opportunities should be created for entrepreneurs located to expand the near-road facilities. Crossing of the road by people and/or cattle should be done only via the specially designed places for these purposes.

Mahalla proposal:

Creation of favorable conditions for the development of road facilities: camping, restaurants and hotels. Ensure that all road signs and marks are properly placed. To create a regular examination. Strict control over the private companies or physical entities providing transportation services.

Education and Health group proposals:

Placing additional road signs near schools and other educational institutes. Creation of convenient conditions, such as provision centralized water supplies for establishment of road facilities. This also will prevent from harming the quality of the road caused by open canals next to roads self-made by the people.

Road maintenance and administration group proposals:

Road construction should be developed with the parallel with the development of road facilities. Mechanism that sustains proper road maintenance, on-time supply of raw materials and financing should be developed. Inclusion of the construction of bus stations, bus-stops and rehabilitation of existing ones into the annual rehabilitation and accomplishment plan of local authorities.

Non-governmental Organizations group proposals:

Increase public awareness among the population via organization of workshops, and seminars. In addition to the rehabilitation of the road, simultaneously develop the lanes for pedestrians

Creation of parking slots for cars, especially nearby the stations and food serving establishments. FOCUS GROUP CONSULTATIONS FOR AFFECTED PEOPLES

Facilitator: Andrew McIntyre Women’s consultation: Louise Duff Translator: Indira Khudayshukurova

Objectives

The objectives of the focus group consultations were to: To ensure affected people understood ADB policy, their entitlements and the grievance procedure; To enable affected people to discuss their concerns and needs as a community; To enable affected people to contribute to the project design, mitigation measures and implementation procedures; To ensure women, the vulnerable and disadvantaged members of the community had opportunity to understand the policy and process, address their concerns and contribute to solutions.

Agenda

1. Sign attendance sheet 2. Welcome and introduction 3. Distribution of ADB policy brochures and briefing on key principles of ADB Resettlement Policy, composition of compensation entitlements and Grievance Procedure 4. Women’s group consultation 5. Confirmation of land holdings and assets 6. Question time 7. Conclusion

Briefing

The briefing at each of four Focus Groups covered the following:

General principles: No affected person will be worse off at the completion of the project; their standard of living will be equal or better. Householders are not required to pay any costs associated with the project, including valuation, survey and legal fees; No displacement will occur until all compensation and relocation entitlements have been provided in full.

Land: Adequate and appropriate replacement land and structures or cash compensation will be provided at full replacement costs; Compensation will be provided for both titled and untitled land; Secure tenure will be provided for resettlement sites; If a percentage of land is affected by the project but their full holding becomes unviable as a result, land-for-land compensation will be provided for the full holding; Compensatory land will be of the same quality, and if not will be improved, or income support will be provided for the improvement period.

Housing: A house with the same size and subsidiary structure will be built for them, or alternately they may elect to receive compensation and manage the construction process themselves; Compensation for houses will be valued full replacement cost including market value, transaction and construction costs, and costs associated with transition to the new home and restoration of assets (e.g. transport, loss of salary). All utilities including water, gas, electricity and communications will be connected equal to their current access prior to relocation; They will receive 6 months notice prior to relocation;

Crops and Trees: Loss of crop production will be valued and compensated for a period of one year. If more than 10% of productive land is lost, crops will be compensated for a period of two years.

Additional Elements of the compensation package: Hardship payment of $35 per person per month for 3 months for households below the poverty line; Loss of income during relocation period; Living costs during construction period; Training and employment opportunities; Community facilities.

Grievance Procedure: Seek help to document all grievances in writing; Work collectively with others in the community sharing the same grievance; Provide a copy to the Khokimiyat, and keep two additional copies; The Khokimiyat must respond in writing within one month; A Resettlement Monitor will visit them periodically throughout the project and copy of the grievance should be provided to the Monitor; If grievances are not adequately addressed, affected peoples have the right to have their grievance heard in court.

Framework for Women’s Consultation:

What are the bad things about the road project and resettlement for you, your family and your community? How will it affect you? What are your worries and difficulties? What are your needs for successful resettlement? What are your top priorities?

What are the impacts on your children? What are their special needs?

What are the good things about the road project? How will it benefit you?

What ideas do you have for the design of the road to meet your needs?

What are your preferences for relocation? What distance from your current site is acceptable? Can you identify any suitable sites for relocation?

What are your preferences for construction of new homes and payment of compensation?

Can you identify opportunities for training and employment that will build on your existing skills?

What community facilities do you need?

What are your concerns about the process and how can it be improved? Key Outcomes

Minutes of each meeting are provided overleaf. The key outcomes are as follows:

The women’s top priorities are: 1. Relocation: Staying in their micro-district (makhalla) and maintaining relationships with relatives and neighbors is a high priority. 2. Compensation funds: funds should be secure and accessible; training and support is needed to access and manage their funds. 3. Housing: families prefer to engage a local building master and manage construction of homes themselves, with sufficient time and resources to ensure new homes are ready with all utilities connected before they have to relocate. 4. Replacement land should be equivalent, fertile and suitable for production. 5. Fair processes should be adhered to, and no cost imposition passed on to affected people. The grievance procedure must be followed. 6. Employment during construction: Local people are given training and employment opportunities throughout the project, including construction work (houses, road works); cooking for construction crews; tree supply, installation and maintenance. 7. Employment post-construction: Training and micro-enterprises are established. Business opportunities identified included a sewing workshop, barber, auto-mechanic and a tree nursery. 8. Road safety should include pedestrian crossings, pedestrian sanctuaries, speed limits and warning signs to allow safe crossing, especially for children going to school. 9. Road-side facilities should include shaded areas suitable for market stalls to sell produce; a combined canteen/magazine/public toilet/shower/Paynet shop. 10. Environmental impacts: dust and pollution should be mitigated with tree planting on both sides of the road corridor. MINUTES OF FOCUS GROUP CONSULTATION 1

Date: Monday 9 August 2010 Time: 10 am – 12 noon Location: Turtkul district Attendees:

Based on these people’s physical appearance and language the translator advised this group are Turkmen.

Full group discussion

Some affected people (AP) are concerned that when their trees were assessed they didn’t count them all, especially young trees.

Copies of the Resettlement Plan should be provided to the Chief of the Women’s Council and the Chief of the Farmers Union.

Women’s consultation

Perceived negative impacts and concerns

They want to stay as close as possible to their community, with a strong preference to remain inside their Makhalla. They are not against the road development, but they don’t want it to interfere with their quality of life. Their households are based on their gardens and fruit trees. Relocation sites must be fertile land suitable for production. They are worried about losing fruit trees, and the time it will take for new trees to reach productive age. The women know of places inside the Makhalla that are suitable, but these were not identified due to time constraints. There are rumors families will have to move from their houses with no payment of compensation and nowhere to go. They are very worried about this. There are concerns about dust and pollution from the road. The local school to 9th grade is in the neighboring Makhalla, approximately 500m away. Children walk on their own to school. There is concern about safety for children crossing the road. The women are not concerned about anti-social behaviors such as prostitution and alcohol consumption increasing due to the project. They believe that raising their children with strong values through their families and schools addresses this potential. Usually farmers have bank accounts, subsistence households do not and will have to open them. They do not have experience using banks. They are wondering if they will be able to access cash at anytime from the bank (sometimes a problem in Uzbekistan). The women are concerned the money paid in advance for compensation will not last throughout the transition period until full production and livelihood is returned. They wanted to know more about the grievance procedure – who should they tell if there is a problem?

When appropriate, elements of ADB policy that addressed these concerns were repeated.

Positive impacts, ideas and solutions

The women perceive there will be more employment opportunities associated with the road development, and specified canteens, mechanic shops and barbers. They anticipate being able to sell garden produce more easily;

Road Design: Road-side services should include showers, toilets, small shop (magazine). These should be all in one place in a populated area. They need an area on the road-side suitable for small market stalls to sell goods and produce. This area should have a suitable width for the stalls, shade, and a road-side verge suitable for cars to stop. The project design should include tree planting along both sides of the road corridor to mitigate dust and pollution and provide shade. Tree species should include Poplar, fruit trees (apricots, apples, jizza) and “archa” – fir trees. The women also want to plant flowers on the road, which is quite common in Uzbek townships. Their ideal minimum planting strip is 5 m, maximum 20 m. The road design should include a pedestrian crossing and signs warning to slow down for children crossing.

Access to Compensation: They need assistance with establishing bank accounts and training and support to access their funds.

Housing: Families usually manage construction of their own homes and would prefer this to having homes built for them. They manage funds for home construction in two installments, the first for constructing the shell, the second for fit-out. They pay a local master builder to lead the construction project. It takes one month to construct the shell. There is then 3 months drying time prior to fit- out. While they are not experts, the group agreed a standard price for construction of the shell only for a five-room house is 25 million soum. The costs for the fit-out include 5000 soum per square meter for labor, 4000 soum per square meter for laying the floor, materials and fittings extra. The family provides food for the builders and laborers at a cost of approximately 9000 soum (not sure if this is per person per day, per team per day/week?).

Land: Women in this group reported the minimum amount of land they need to live is 0.6 hectares.

Training and Employment: They would like training for themselves and their children in hair-dressing, auto- mechanical trades, cooking, customer service and how to establish and manage small businesses to service passing traffic. The women would like their families to be contracted to propagate trees from cuttings and plant them. They have experience and skills to do this, but not facilities to work on a large scale. A purpose built facility would improve their capacity.

Community Facilities: The community facility they need the most is an open-air shaded square for meeting, with a roof, floor, water and toilet, built to the traditional Mahalla design.

Process and Grievances: Nothing raised. MINUTES OF FOCUS GROUP CONSULTATION 2

Date: Monday 9 August 2010 Time: 3 – 5 PM Location: Turtkul district

Attendees: A small group of the same people who attended the morning meeting.

As this group had already received the briefing and women’s consultation, this meeting was used for further full group discussion. Points raised were as follows:

Housing issues: Building a new house is not a problem. The main issue is the size a productivity of the land. A disabled and retired man was planning to build a house for his son on his land, which is 0.4 hectares. He wanted to know if he would have enough land to build this second house, and if he should wait for the relocation to be complete. He was advised he would have the same amount of land, and it would be best to wait until after the relocation to build the new home. The group gave rough estimates for construction costs for houses: 50 million soum total for a new five bedroom house; 86 million soum for a two-storey, 6 bedroom house.

MINUTES OF FOCUS GROUP CONSULTATION 3

Date: Tuesday 10 August Time: 8.30 am – 11 am Location: Ellik Kala district, Nurmuhanov’s house

Attendees:

Based on these people’s physical appearance and language the translator advised this group are from the Kazach ethic minority.

Full group discussion

Additional land may be required for the road project that is not included on the maps, for example land required to excavate base soil, or for canal over-passes. Telecommunications should be connected to new houses prior to relocation.

Women’s consultation

Perceived negative impacts and concerns

The women in this group are afraid they have spent many years constructing and improving their homes and land, and they are very worried about the time it will take to reach the same standard in their new location. They re very attached to their homes. They described their level of anxiety as “very worried,” they are “not sleeping,” they are “suffering nervous diseases,” they are “crazy with worry.” Elements of ADB Policy that addressed their concerns were re-iterated. Children are afraid because they were born in these houses and they are scared about the resettlement. Children walk to schools themselves. Children and their parents are worried about crossing the road. There is a fear that it will be impossible to cross the road, especially for small children in grade one and two at school. None of the women in this group have household bank accounts. They do not know about banking. Some do not have title for their houses. They hope the new land will have better conditions for agriculture. There are very limited employment opportunities for this community, including employment for young men. They described their sons as “roaming around with nothing to do.”

Proposed solutions to concerns

Housing: The women want true compensation to enable them to construct houses to the same standard as their current homes. They want good locations, and some say in the location. All of the families in this group are related, their children also have strong relationships, and staying together as a community is very important to them. Most women want their families to receive cash compensation and to manage construction themselves. Some women in difficult circumstances want houses built for them. There are skilled builders in their community they can hire to lead their construction projects. One woman had planned to build houses for her four sons on her current holding, and wants sufficient land to build these homes and keep her family together. The compensation calculation needs to include an allowance for inflation.

Road safety: They need crossings and warning signs to make safer crossings for children. The option of a pedestrian sanctuary in the middle of the road was discussed. The children need training to cross the road safely – this could be provided by the school.

Employment and Training: The participants require training to manage their compensation funds. They are relying on the road to improve their income. The employment opportunities they identified for their sons included construction and barbers. Families have the skills and wish to be contracted to plant trees along the road corridor.

Community Facilities: This group walk one hour to reach a doctor and identified a need for healthcare services/facilities.

Access to Compensation Funds: The women reported they only use cash, they have no experience with banking and would prefer cash money. These women reported they manage the household funds and wish for bank accounts to be made in their names. This was not cross-referenced with their husbands. MINUTES OF FOCUS GROUP CONSULTATION 4

Date: Tuesday 10 August 2010 Time: 2 pm – 4 pm Location: Ellik Kala district, in the newly built school building Attendees:

Full group discussion

A copy of the Resettlement Plan should be exhibited at the school. One participant is concerned about compensation for his unregistered business. This couple describe themselves as disadvantaged in that the wife has a back injury and cannot do gardening work, and the husband is sick and has had his disability pension cancelled.

Women’s consultation Negative impacts and concerns

One woman advised that women in this group finished school in year 8, their lives revolve around gardening, childcare and home-making, they had difficulty understanding the ADB policy and they were grateful for this opportunity to understand and have their concerns and ideas heard. Participants in this group expressed their disadvantage: one married woman and each of her five children suffer anaemia, which she said is quite common in this district; one is a divorced mother with three children, her husband is in jail; one woman’s husband is disabled; one woman is a widow with six children. These women do not have jobs, they support themselves through their garden and trees. Some children feel it will be better when they move to new houses, some are in doubt. A representative from Nukus Cadastral did some surveys and requested 20-20,000 soum from each household to cover petrol expenses. This has not been documented as a grievance. There is a rumour that one woman’s property has been valued at 20 million soum and this is insufficient compensation for replacement costs. None of these families have bamk accounts.

Ideas and solutions

Housing: They want to manage construction themselves, as they feel houses supplied by the government will not meet their design preferences.

Employment Opportunities: These women sew clothes for themselves but do not have facilities to sew collectively and increase production. They proposed a sewing workshop and training to enable them to manage a micro-enterprise. During construction they want to cook for construction crews and plant trees in the road corridor. They have children at college who want to defer their studies to work in construction during the project. One husband is a fitter and turner, another is a welder, they want to work in construction during the project.

Community Facilities: The respondents requested a canteen/magazine/Paynet shop on the new road. At present they have to travel to Buston to get credit for mobile phones. Annex E

Legal Summaries Annex E ADB Resettlement Policy

A. Objectives

B. Scope and Triggers

C. Policy Principles

8. 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.

12. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

Point 6: Illegally constructed houses, buildings and structures are not subject to compensation.

1. Land Code of Republic of Uzbekistan (2003).

1. According to the Article 16 of the Land Code of the Republic of Uzbekistan, land is a state property, and considered to be national wealth and protected by the state.

2. Article 17 provides rights of legal entities and individuals for land plots on the basis of constant possession, constant and temporary use, lease and property.

Compensation allocated under such circumstances will be paid by the offending enterprises, organizations and agencies, to the owners/users that use the affected plots.

2. Civil Code (1996/1997).

3. Compensation Valuation Methods in Uzbekistan

ADB Resettlement Policy RU Law Remarks/Resolution

Establish a grievance redress Resettlement has a standard mechanism to receive and facilitate mechanism to address Conforms. resolution of the affected persons’ grievances. concerns.

Monitor and assess resettlement outcomes, their impacts on the No monitoring of livelihoods of DP LARP includes a detailed monitoring standards of living of displaced is undertaken plan persons.

Detailed Compensation Table – All DP’s Project 3.2 Household Income Land Agriculture Survey Km Name Cat HH FH Dsbl'd Total Acquired % Crops Trees Tree Crop Fruit Fruit Crop Redev Ap8 581 Polvon B 0 0 0.0336 0.01 30% 0 0 AP9 581.7 Abdullaev Ismail F 11 1122 41 0.4 1% 394 0 0 49 AP10 582.3 Davron Yuldashev B 0 0 0.245 0.037 15% 0 0 AP11 582.4 Matnazirov Yuldosh F 5 297 50 0.18 0% 0 0 0 19 AP13 582.5 Turebekob Aybek B 0 0 0.045 0.045 100% 0 0 AP12 583.1 Nematjon Turtkul Ltd B 0 0 0.6 0.1125 19% 0 0 AP18 585.7 Ametov Jumanazar F 16 2520 120 10.4 9% 9587 0 0 1734 AP26 599.4 Karataeva Zuhra H 1 Y 120 0.36 0.36 100% 0 0 0 0 Ap130 600 Kaltasheva Bibigul H 8 Y Y 470 0.5 0.06 12% 41 0 270 6 AP28 600 Bayramov Jumamurod H 9 603 0.89 0.57 64% 230 2517 503.4 6126 146 AP29 600.1 Chaklieva Oguljon H 5 Y 607 0.45 0.33 73% 448 3019 603.8 8281 197 AP34 600.2 Haltashev Holnazar H 5 100 0.6 0.06 10% 177 113 22.6 788 19 AP35 600.2 Saparov Gichgeldi H 4 250 0.35 0.26 74% 231 2229 445.8 1337 32 AP32 600.3 Atamuradov Hakmurod H 6 1145 0.72 0.12 17% 354 0 768 18 AP33 600.3 Atamuradov Allonur H 5 230 0.65 0.5 77% 1057 2823 564.6 3832 91 AP36 600.4 Kakabaeva Gulnihon F 8 500 78.1 3.3 4% 4224 0 0 1551 AP42 600.7 Halieva Meretsultan F 5 1170 62 3.8 6% 3074 0 15904 379 3551 AP43 601.8 Allaberdiev Ilyos H 4 0 0.42 0.08 19% 244 120 24 1772 42 AP44 601.8 Gushabaeva Guloim H 6 Y 540 0.4 0.11 28% 465 100 20 5713 136 AP45 601.8 Berkliev Gechgeldi H 5 86 0.24 0.038 16% 122 200 40 1177 28 AP47 601.9 Amansatova Dastagul H 1 Y Y 94 0.32 0.11 34% 97 35 7 4500 107 AP48 601.9 Berdiklicheva Saparbay H 8 300 0.32 0.045 14% 28 0 120 3 AP49 601.9 Nursatova Sapargul H 8 Y Y 331 0.24 0.065 27% 930 1000 200 561 13 AP50 602 Berdiklicheva Sapargul H 5 Y 208 0.24 0.15 63% 120 24 400 10 AP51 602.1 Shaliev Meretdurdi H 4 150 0.12 0.09 75% 40 0 0 AP132 602.2 Arazdurdieva Z. H 4 250 0.18 0.02 11% 330 66 1200 29 AP133 602.2 Satliklichev Davlet H 11 226 0.28 0.225 80% 432 0 4490 107 AP52 602.2 Bayramtaganova Aysara F 5 Y 1250 40.5 6 15% 8445 0 0 3420 AP53 602.6 Tagankilichev Ashir F 11 1352 35 0.41 1% 383 0 0 57 AP57 603.5 Taylakov H 9 520 0.48 0.215 45% 1314 1000 200 0 AP58 603.5 Elamanov Jalal H 5 Y 420 0.36 0.12 33% 29 1000 200 0 AP140 603.5 Khamraev Kalandar H 8 140 0.4 0.19 48% 45 0 0 AP134 603.5 Kurbannazar Jumanazarov H 8 400 5 0.812 16% 158 0 0 AP59 608.6 Sherimbetov Kamol H 5 380 0.4 0.025 6% 189 0 0 AP62 608.7 Bekchanov Bazarbay F 7 Y 1080 103 8.22 8% 8791 0 0 1077 AP65 609.9 Rdjaboy Kuliev F 7 1980 96 1.5 2% 4223 0 0 3104 AP68 610 Kurbanov H 2 25 0.15 0.03 20% 306 0 0 AP135 610 Razzakova Raima H 8 Y 289 0.57 0.112 20% 889 0 1928 46 AP73 610.7 Kulimbetov J F 8 400 60 0.735 1% 2223 0 0 2215 AP70 610.2 Karimov Hudaybergan H 5 489 0.68 0.58 85% 495 1200 240 15613 372 AP74 611.075 Shamanov Doston F 4 200 311 0.1 0% 114 0 0 48 AP75 611.375 Shavkat Aitov F 6 400 74 15 20% 21533 0 0 10425 Payments Structure & Type Structure Value Business Compensation Allowances Severe Impact M2 ppm M2 ppm m2 ppm Res 2 3 Avg Inc. Wrkr W $ Structure Agr Bus Worker Severe L'hd Reloc >10% House Total 0 0 120 60 7200 does not function 7200 0 0 0 0 0 0 443 0186300 0 00000 000 0 0000 000 0 19 0 847 0 0 0 0 0 150 173 25950 does not function 25950 0000 000 00 000 0 0000 000 0 11321 00000 120 93 25 20 11160 500 11660 0 0 169 161 0 1 1 425 20 8500 8500 311 47 1355 0808 299 135 169 25 40365 4225 44590 8873 879 1524 161 9 9 9 273 128 195 20 34944 3900 38844 11748 1249 847 161 5 5 5 60 20 1200 1200 1078 0 847 0000 156 171 182 20 26676 3640 30316 3797 709 677 161 4 4 4 117 20 2340 2340 1122 372 00606 225 139 255 20 31275 5100 36375 7712 1713 847 161 5 5 5 0 5775 0 1355 0 0 0 0 22529 00000 300 82 200 20 40 35 24600 4000 1400 30000 2136 310 677 161 4 4 4 0 6278 621 1016 0606 120 311 66 25 208 30 37320 1650 6240 45210 1499 190 847 161 5 5 5 157 107 74 25 16799 1850 18649 4632 211 169 161 1 1 1 0148 3113550808 225 83 45 25 18675 1125 19800 2491 1143 1355 161 8 8 8 400 97 176 20 38800 3520 42320 520 34 847 161 5 5 5 040 406770404 0 1530 95 677 0404 0 4922 539 1863 0 11 0 11 011865 84458470505 0440 00000 0 2314 1514 1524 0909 0 1029 229 847 0 5 0 5 045 4513550808 0 158 158 1355 0808 0 189 0 847 0 0 0 0 9868 0 1186 0 0 0 07327 00000 0306 3063390202 20 25 500 500 2817 935 1355 0 8 0 8 0 4438 0 1355 0 0 0 288 135 240 15 24 35 38880 3600 840 43320 17308 1107 847 161 5 5 5 0162 0677000 0 31958 21533 1016 0606 Project 3.2 Household Income Land Agriculture Survey Km Name Cat HH FH Dsbl'd Total Acquired % Crops Trees Tree Crop Fruit Fruit Crop Redev AP82 617.3 Kenjaboy Urazbaev H 3 Y 319 0.3 0.26 87% 52 0 1976 47 AP83 617.4 Reimov Temirbek H 6 310 0.6 0.05 8% 82 488 97.6 362 9 AP84 617.6 Kenjaev Holjon H 4 234 0.7 0.26 37% 40 0 1740 41 AP85 617.7 Kenjanov Ramiddin H 6 440 0.375 0.23 61% 134 397 79.4 5372 128 AP88 618.2 Nurmahanov Ungarbay H 6 410 1.2 0.4 33% 715 2526 505.2 8488 202 AP141 Jarkinbaev (Nurmahanov's bro H 5 370 1.25 0.59 47% 1139 2329 465.8 12261 292 AP89 618.3 Kultimuratova Zulayhon H 6 Y 185 1 0.3 30% 334 595 119 2468 59 AP90 618.4 Kuresbaev Jumakul H 8 70 1.1 0.385 35% 869 1710 342 5760 137 AP92 618.5 Kutpanaev U. H 4 120 0.52 0.148 28% 1068 450 90 6750 161 AP94 618.9 Usupov Shavkat H 5 407 1 0.07 7% 3689 1000 200 5200 124 AP95 618.95 Ibragimov H. F 11 2644 275 3.5 1% 14778 0 0 13859 AP96 619.3 Kenjaev Ibodilla F 11 Y 4360 17 0.59 3% 1254 0 0 1107 AP97 619.55 Turaev Safarboy F 20 3450 73 2.89 4% 4425 0 0 3074 AP100 620.15 Kenjaev Tuhtaboy H 7 357 0.35 0.35 100% 870 1020 204 4460 106 AP138 620.15 Hudayberganov Otahon H 6 220 0.7 0.2 29% 513 1560 312 225 5 AP145 620.15 Ramanova Sapargul H 7 Y 50 0.2 0.1 50% 864 172.8 0 AP146 620.15 Karimov Islam H 8 550 0.3 0.05 17% 698 380 76 1925 46 AP147 620.15 Egamberdieva Gavhar H 6 500 0.2 0.08 40% 690 3914 782.8 1274 30 AP104 620.3 Sagdullaeva Marifat BH 4 Y 300 0 0 0 0 AP105 620.4 school H 0 0 2.3 0.3 13% 0 0 AP106 620.45 Otajonov Hudaybergan H 7 649 1.2 0.55 46% 4 1454 290.8 9844 234 AP107 620.5 Aminov Kadam F 5 300 42 3 7% 2111 0 0 1361 AP108 620.6 Otajonova Ambar H 4 Y 245 1.1 0.25 23% 740 0 0 AP109 620.7 Otajonova Nurmamat H 15 Y 590 1 0.66 66% 1653 3126 625.2 16948 404 AP110 620.7 Kabulov Kadam H 6 600 1 0.45 45% 431 486 97.2 3213 77 AP111 620.75 Gafur Boltaev F 7 1550 22 2.645 12% 0 0 41226 982 11161 AP112 620.79 Alimov Muso H 6 270 0.4 0.18 45% 2230 624 124.8 22165 528 AP113 621 Sapaev Kudratilla F 6 2000 41 1.39 3% 1651 0 0 769 AP115 621.4 Saparboy Rahimov F 12 3200 83 1.94 2% 2362 0 0 1554 AP119 623.2 Karamitdinov Jarlkop F 6 2000 320 8.6 3% 3848 0 0 2855 AP121 624.4 Masharipov Imam F 10 755 76 1.93 3% 3669 560 112 0 3772 AP122 624.7 Rahimov Shavkat F 16 1710 188.3 0.28 0% 236 0 0 198 AP123 625.75 Ashirov Hudoer F 15 4100 380 0.95 0% 1016 0 0 462

Total (000' sums) Total (000' $) Payments Structure & Type Structure Value Business CompensationAllowances Severe Impact M2 ppm M2 ppm m2 ppm Res 2 3 Avg Inc. Wrkr W $ Structure Agr Bus Worker Severe L'hd Reloc >10% House Total 105 110 42 20 18 35 11550 840 630 13020 2028 99 508 161 3 3 3 0 0 932 0 1016 0000 0 0 0 1780 81 677 0404 0 0 0 5903 341 1016 0606 684 130 88920 0 0 88920 11729 1422 1016 161 6 6 6 20 20 24 35 400 840 1240 15729 1897 847 0505 330 110 112 20 36300 2240 38540 3397 512 1016 161 6 6 6 132 110 44 20 16 35 14520 880 560 15960 8339 1348 1355 161 8 8 8 0 8268 1319 677 0404 306 110 35 20 33660 700 34360 9889 0 847 161 0 5 5 0 28637 00000 0 2361 0 1863 0 0 0 0 7499 00000 144 110 45 20 28 35 15840 900 980 17720 6350 1180 1186 161 7 7 7 15 20 36 35 300 1260 1560 2298 830 1016 0606 0 864 173 1186 0707 0 3003 820 1355 0808 0 5878 1503 1016 0606 153 98 14994 335 2 150 14994 0 2010 1800 0 677 161 0 4 4 480 124 7666 7666 0 00000 380 135 80 20 60 35 51300 1600 2100 55000 11302 529 1186 161 7 7 7 0 3472 0 847 0 0 0 0740 7406770404 500 105 400 20 32 35 52500 8000 1120 61620 21727 2682 2540 161 15 15 15 323 130 41990 0 41990 4130 605 1016 161 6 6 6 0 52387 982 00707 120 110 13200 13200 25019 2883 1016 161 6 6 6 0 2420 00000 0 3916 00000 0 6703 00000 0 8001 0 1694 0 0 0 0434 00000 0 1478 00000

812564 455761 2010 1800 62400 59616 3549 503.8 282.6 1.2 1.1 38.7 37.0 2.2 Annex G

Detailed Agricultural Compensation Calculations Table 1

Allocation of agricultural crops and gardens in 2010 by farming company Name of Soil yield Area Incl CropIncluding gardens mulberry Total used Reseeding, hect. questionnaire farming company class on balance irrigated- area Wheat cotton maize rice melons silage (tree) rice silage total (bonitet point) hect hect maize hect hect hect maize Turkul rayon 1 R 32009 Ibrahim Accountant 50 68 68 41 15 26 41 3 2 5 2 R 32011 Uzbek Yoldash 40 50 50 0 3 R 32018 Turtkul Doniyorov Northay 40 120 55 55 9 46 55 4 R 32036 Kurbannazar Accountant 55 78 78 72 19 53 72 5 R 32042 Nursultan 70 62 62 47 19 28 15 62 2 2 6 R 32052 Toza-Akka 50 41 41 41 10 31 41 5 5 7 R 32053 Meretkilych 50 35 35 35 35 35 8 R 32074 Latif Sart 65 311 134 128 17 111 128 9 R 32075 Shaukat Aitov 68 74 74 74 74 74 Total 839 597 493 89 404 0 0 0 0 0 15 508 10 2 12 Ellikala rayon 1 R 32062 Jumanyyaz Bakkal 45 50 50 50 10 40 50 2 2 2 R 32065 Kuliev Radzhapbay 45 96 96 85 13 72 85 13 13 3 R 32073 Mardon Kumelat 65 60 60 55 30 25 55 20 3 23 4 R 32095 Khurshid 51 275 55 52 9 28 15 52 9 9 5 R 32096 Furkat 45 17 17 10 1 5 1 3 10 1 1 6 R 32097 Sarbi Biniet 60 73 73 54 16 38 54 0 7 R 32107 Turkiston Durdonasi 38 42 42 42 26 16 42 0 8 R 32111 Ghafur Baltaev 52 8 8 8 8 0 9 R 32113 Sari Ohun 40 41 41 34 8 26 34 3 3 10 R 32115 Safarbay Rakhimov 51 83 83 49 12 36 1 2 51 11112 Total 745 525 431 125 286 15 1 1 3 10 0 441 46 17 63 Beruniy rayon 1 R 32119 Karamiddin Zharlkop 45 320 218 120 70 50 120 2 R 32121 Pahtachi 45 76 25 15 5 2 8 0.2 15.2 3 R 32122 Rahim-bobo 35 188 60 46 2 22 10 6 6 46 4 R 32123 Ashirov Radzhibay 40 380 70 53 15 38 53 22 4 Total 964 373 234 17 130 0 65 8 14 0 0.2 234.2 2 2 4 Grand Total 2548 1495 1158 231 820 15 66 9 17 10 15.2 1183.2 58 21 79 Table 2

Permanent land alienation in farming companies Area Incl CropIncluding gardens mulberry Total Lands to be alienated (permament) hectares questionnaire on balance irrigated- area Wheat cotton maize rie melons silage (tree) used Wheat cotton rice silage Crop Gard mulberry Total Pastures total hect hect hect maize hect hect hect maize area ens (tree) irrigated- Turtkul district hect hect 1 R 32009 68 68 41 15 26 41 0.35 0.35 0.35 0.35 2 R 32011 50 50 0 3 R 32018 120 55 55 9 46 55 1.8 8.6 10.4 10.4 10.4 4 R 32036 78 78 72 19 53 72 3.3 3.3 3.3 3.3 5 R 32042 62 62 47 19 28 15 62 1.3 1.5 2.8 1 3.8 3.8 6 R 32052 41 41 41 10 31 41 6 6 6 6 7 R 32053 35 35 35 35 35 0.41 0.41 0.41 0.41 8 R 32074 311 134 28 17 111 128 0.1 0.1 0.1 0.1 9 R 32075 74 74 74 74 74 15 15 15 15 Total 839 597 393 89 404 0 0 0 0 0 15 508 3.1 35.26 0 38.36 01.039.36 39.36 Ellikkal District 1 R 32062 50 50 50 10 40 50 8.22 8.22 8.22 8.22 2 R 32065 96 96 85 13 72 85 0.5 1.5 2 2 2 3 R 32073 60 60 55 30 25 55 0.74 0.74 0.74 0.74 4 R 32095 275 55 52 9 28 15 52 3.5 3.5 3.5 3.5 5 R 32096 17 17 10 1 5 1 3 10 0.3 0.3 0.6 0.6 0.6 6 R 32097 73 73 54 16 38 54 2.89 2.89 2.89 2.89 7 R 32107 42 42 42 26 16 42 2 1 333 8 R 32111 88 8 8 0 2.645 2.645 2.645 9 R 32113 41 41 34 8 26 34 1.39 1.39 1.39 1.39 10 R 32115 83 83 49 12 36 1 2 51 1.94 1.94 1.94 1.94 Total 745 525 431 125 286 15 1 1 3 10 441 7.04 17.24 0 24.28 2.645 0 26.925 0 26.925 Beruny district 1 R 32119 320 218 120 70 50 120 3.0 3 3 5.6 8.6 2 R 32121 76 25 15 5 2 8 0.2 15.2 0.13 0.6 0.73 0.2 0.93 1 1.93 3 R 32122 188 60 46 2 22 10 6 6 46 0.28 0.28 0.28 0.28 4 R 32123 380 70 53 15 38 53 0.95 0.95 0.95 0.95 Total 964 373 234 17 130 0 65 8 14 0 0.2 234.2 0.28 3.95 0.13 0.6 4.96 0 0.2 5.16 6.6 11.76 Grand Total 2548 1495 1058 231 820 15 66 9 17 10 15.2 1183.2 10.42 56.45 0.13 0.6 67.6 2.645 1.2 71.445 6.6 78.045 By farming industry Uzbek Yoldash (R 32011) land alienation amounting to 0.18 hectares will be held on unused lands Agricultural production and it's cost by type of bussiness of the Affected Persons on the lands after collection of winter wheat harvest

Rice Silage corn and green fodder Crop Average Total Price Cost Unit cost Cost Profit Including economic Crop Average Total Price Cost Unit cost Farming area output harvest per 1 of of 1 ton total total per 1ha efficiency area output harvest per 1 of of 1 ton company hect ton production hect ton production ton / ha ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. % ton / ha ton sum, ths. sum, ths. sum, ths. Turtkul district 134.0 12 850 10200 610 7320 2880 960.0 39.3442623 2 15 30 180 5400 130 2 3 4 523.6 7.2 850 6120 620 4464 1656 828.0 37.09677419 653.5 17.5 850 14875 615 10762.5 4112.5 822.5 38.21138211 7 8 9 Total 10 3.4 36.7 850 31195 614.3 22546.5 8648.5 864.9 38.35850354 2 15 30 180 5400 130 Ellikkala district 1 2 16.5 33 180 5940 130 2 13 3.6 46.8 850 39780 620 29016 10764 828.0 37.09677419 3 20 3.7 74 850 62900 630 46620 16280 814.0 34.92063492 3 17.5 52.5 180 9450 125 4 9 4.0 36 850 30600 645 23220 7380 820.0 31.78294574 5 1 15.1 15.1 180 2718 130 6 7 8 9 3 3.5 10.5 850 8925 615 6457.5 2467.5 822.5 38.21138211 10 1 4.2 4.2 850 3570 650 2730 840 840.0 30.76923077 11 17.5 192.5 180 34650 125 Total 46 3.7 171.5 145775 630.0 108043.5 37731.5 820.3 34.92250806 17 17.2 293.1 180 52758 Beruny district 1 2 3 4 2 3.5 7 850 5950 615 4305 1645 822.5 38.21138211 2 18.1 36.2 180 6516 115 Total 2 3.5 7 850 5950 615 4305 1645 822.5 38.21138211 2 18.1 36.2 180 6516 115 Grand total 58 3.7 215.2 182920 626.8 134895 48025 828.0 21 17.1 359.3 180 64674 Agricultural production and it's cost by type of bussiness of the Affected Persons on the lands after collection of Table 3 winter wheat harvest Silage corn and green fodder Total plantation after collection of wheat harvest Cost Profit Including economic Crop Average Total Price Cost Unit cost Cost Profit Including economic Farming total total per 1ha efficiency area output harvest per 1 of of 1 ton total total per 1ha efficiency company hect ton production sum, ths. sum, ths. sum, ths. % ton / ha ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. % 000 1 3900 1500 750 38.46153846 5 13305 9573 3732 746.4 39.0 2 3 4 5 2 6120 4464 1656 828.0 37.1 6 5 14875 10763 4112.5 822.5 38.2 7 8 9 Total 3900 1500 750 38.46153846 12 34300 24800 9500.5 791.7 38.3

1 4290 1650 825 38.46153846 2 5940 4290 1650 825.0 38.5 2 13 39780 29016 10764 828.0 37.1 3 6562.5 2887.5 962.5 44 23 72350 53183 19167.5 833.4 36.0 4 9 30600 23220 7380 820.0 31.8 5 1963 755 755 38.46153846 1 2718 1963 755 755.0 38.5 6 7 8 9 3 8925 6458 2467.5 822.5 38.2 10 24062.5 10587.5 962.5 44 12 38220 26793 11427.5 952.3 42.7 Total 36878 15880 934.1176471 43.06090352 63 198533 144922 53612 851.0 37.0

1 2 3 4 4163 2353 1176.5 56.52173913 4 12466 8468 3998 999.5 47.2 Total 4163 2353 1176.5 56.52173913 4 12466 8468 3998 999.5 47.2 Grand total 44941 19733 939.6666667 43.90868027 79 245299 178189 67110 849.5 37.7 Table 4 Characteristics of the fruit-bearing garden to be affected and compensation estimates farm company "Ghafoor Baltaev" R 32111, Ellikkala district (rayon) Unit Area of Garden ha 8.0 1. These include: fruit-bearing 8.0 2. Bonitet score 52 Garden 1982 3. age of trees years 22 Type of trees and productivity Pear Year of garden's foundation ha 3 yeild tonne/ha 5.0 croppage ton 15 price per 1 ton 000' sums 900 cost of output 000' sums 13500 Apricot Area ha 3 yeild tonne/ha 3.3 croppage ton 10 price per 1 ton 000' sums 400 cost of output 000' sums 4000 Apple 4. Area ha 2 yeild tonne/ha 5.0 croppage ton 10 price per 1 ton 000' sums 700 cost of output 000' sums 7000 Total Area ha 8 yeild tonne/ha 4.4 croppage ton 35 price per 1 ton 000' sums 700.0 cost of output 000' sums 24500 cost of production 000' sums 16350 Profit, total 000' sums 8150 Profit per 1 ha 000' sums 1019 Economic efficiency (profitablity) % 49.8 Land area subject for aquistion, of which ha 2.645 Apricot ha 1.545 Apple ha 1.100 Average annual loss of crop Apricot ton 5.1 5 Apple ton 5.5 Average annual cost of crop losses Apricot 000' sums 2039 Apple 000' sums 3850 Total 000' sums 5889 Duration of fruiting period years 7 6 Calculated Compensation 000' sums 41226 Including lost profits (earnings) 000' sums 7131 Table 5 Compensation estimates for acquisition of part of lands with mulberry Farm titled "Nursultan" (R 32042) of the Turtkul district Unit 1. Area of Mulberry ha 15.0 2. Yield grade (bonitet point) Year of plantation’s foundation 1984 3. - Age of trees years 26 Output of instant leaf from produced leaf-bearing branches % 35-40 Output of leaf from hectare ton 7.1 Production prepared (leaf) ton 106.5 Price per 1 ton thous.sum 160 4 Production cost thous.sum 17040 Cost of production for output thous.sum 11560 Profit thous.sum 5480 Profit from 1 ha thous.sum 365.3 Profitability % 47.4 Area of acquisition ha 1.0 Average annual production cost of 1 ha thous.sum 1136 Duration of use (operational period) years 40 5 Period of further use years 14 Estimated compensation thous.sum 15904 Including, lost profits thous.sum 5115

Table 6 Compensation estimates for acquisition of part of lands with trees (poplar) Farm company "Pahtachi" (R 32121) Beruny Distrcict Unit 1. Number ha 0.2 2. Bonitet score 45 Year of planting trees 2002-2008 -age of trees years from 2 to 8 years -number of trees pieces 200 3. Age of trees for receiving merchantable wood years 10-12 years Diametre of low part of trunk mm 150-170 Cost of one tree at age of merchantable wood thous.sum 30 ,0 Number of trees subject to acquisition pieces 40 Land area ha 0.2 Average commercial price of one tree thous.sum 16.0 4 Loss of profit of one tree thous.sum 14.0 thous.sum Estimated compensation (40 14 =560 thousand.sumthous.sum 560 Total loss of profit per 1 year (5 years) thous.sum 112 Table 7

Economic indicators of farms affected

Wheat Cotton Farming Crop Average Total Price Cost Unit cost Cost Profit Including economic Crop Average Total Price Cost Unit cost area output harvest per 1 of of 1 ton total total per 1ha efficiency area output harvest per 1 of of 1 ton company hect ton production hect ton production ton / ha ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. % ton / ha ton sum, ths. sum, ths. sum, ths. Turtkul district 1 15 2.7 40.5 237 9599 220 8910 689 46 7.7 26 2.5 65.0 450 29250 455 2 3 9 3.0 27.0 237 6399 215 5805 594 66 10.2 46 2.1 96.6 460 44436 475 4 19 3.0 57.0 240 13680 208 11856 1824 96 15.4 53 2.5 132.5 512 67840 480 5 19 2.9 55.1 237 13059 205 11295.5 1763 93 15.6 28 2.7 75.6 435 32886 405 6 10 2.7 27.0 237 6399 201 5427 972 97 17.9 31 2.5 77.5 563 43633 520 7 35 2.2 77.0 425 32725 450 8 17 3.0 51.0 245 12495 208 10608 1887 111 17.8 111 2.6 288.6 440 126984 410 9 74 2.9 214.6 495 106227 450 Total 89 2.9 257.6 239 61630 209 53902 7729 87 14.3 404 2.5 1027.4 471 483981 447 Ellikkala district 1 10 2.3 23.0 237 5451 211 4853 598 60 12.3 40 2.3 92.0 465 42780 475 2 13 3.3 42.9 282 12098 225 9653 2445 188 25.3 72 3.0 216.0 495 106920 450 3 30 2.5 75.0 237 17775 210 15750 2025 68 12.9 25 3.0 75.0 501 37575 435 4 9 3.2 28.8 257 7402 215 6192 1210 134 19.5 28 3.2 89.6 396 35482 365 5 1 3.0 3.0 240 720 206 618 102 102 16.5 5 1.5 7.5 495 3713 550 6 16 2.8 44.8 237 10618 201 9005 1613 101 17.9104 38 2.9 110.2 528 58186 450 7 26 2.1 54.6 237 12940 195 10647 2293 88 21.5385 16 2.6 41.6 429 17846 400 8 9 8 4.6 36.8 320 11776 230 8464 3312 414 39.1304 26 2.7 70.2 440 30888 400 10 12 2.2 26.4 210 5544 190 5016 528 44 10.5263 36 2.7 97.2 451 43837 390 Total 125 2.7 335.3 251 84323 209 70197 14126 113 20.1231 286 2.8 799.3 472 377226 429 Beruny district 1 70 2.2 154.0 583 89782 490 2 3 2 3.1 6.2 272 1686 224 1389 298 149 21.4 22 2.5 55.0 418 22990 400 4 15 2.0 30.0 210 6300 205 6150 150 10 2.4 38 1.9 72.2 563 40649 515 Total 17 2.1 36.2 221 7986.4 208 7538.8 447.6 26 5.9 130 2.2 281.2 546 153421 479 Grand total 231 2.7 629.1 245 153940 209 131638 22302.2 97 16.9 820 2.6 2108 481 1014627 444 Table 7

Maize Farming Cost Profit Including economic Crop Average Total Price Cost Unit cost Cost Profit Including economic Crop Average total total per 1ha efficiency area output harvest per 1 of of 1 ton total total per 1ha efficiency area output company hect ton production hect sum, ths. sum, ths. sum, ths. % ton / ha ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. % ton / ha

1 29575 -325 -13 -1.1 2 3 45885 -1449 -32 -3.2 4 63600 4240 80 6.7 5 30618 2268 81 7.4 6 40300 3333 108 8.3 7 34650 -1925 -55 -5.6 8 118326 8658 78 7.3 9 96570 9657 131 10.0 Total 459524 24456.5 61 5.322138

1 43700 -920 -23 -2.1 2 97200 9720 135 10.0 3 32625 4950 198 15.2 4 32704 2778 99 8.5 15 5.2 78 450 35100 320 24960 10140 676 40.6 5 4125 -413 -83 -10.0 14 6 49590 8596 226 17.3 7 16640 1206 75 7.3 8 9 28080 2808 108 10.0 10 37908 5929 165 15.6 Total 342572 34654.3 121 10.11592 15 5.2 78 450 35100 320 24960 10140 676 40.6 1 4

1 75460 14322 205 19.0 50 5.5 2 5 7.0 3 22000 990 45 4.5 10 6.4 4 37183 3466 91 9.3 Total 134643 18778 144 13.9 65 5.8 Grand total 936739 77888.4 95 8.3 15 5.2 78 450 35100 320 24960 10140 676 40.6 66 5.7 Table 7

Rice Melon&Watermelon Farming Total Price Cost Unit cost Cost Profit Including economic CropAverage Total Price Cost Unit cost Cost Profit harvest per 1 of of 1 ton total total per 1ha efficiency area output harvest per 1 of of 1 ton total total company ton production hect ton production ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. % ton / ha ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths.

1 2 3 4 5 6 7 8 9 Total

1 2 3 4 5 4 900 3600 650 2600 1000 1000 38.5 6 7 8 9 10 1 9.1 9.1 250 2275 180 1638 637 Total 4 900 3600 650 2600 1000 1000 38.5 1 9.1 9.1 250 2275 180 1638 637

1 275 900 247500 670 184250 63250 1265 34.3 2 35 900 31500 680 23800 7700 1540 32.4 2 10.7 21.4 250 5350 185 3959 1391 3 64 900 57600 675 43200 14400 1440 33.3 6 9.5 57 250 14250 182 10374 3876 4 Total 374 900 336600 672 251250 85350 1313.07692 34.0 8 9.8 78.4 250 19600 182.8 14333 5267 Grand total 378 900 340200 672 253850 86350 1308.33333 34.0 9 9.7 87.5 250 21875 182.5 15971 5904 Table 7

Corn for silo and green fodder Total Farming Including economic Crop Average Total Price Cost Unit cost Cost Profit Including economic Crop Cost Cost Profit Including per 1 ha efficiency area output harvest per 1 of of 1 ton total total per 1 ha efficiency area of total total per 1 ha company hect ton production hect production sum, ths. % ton / ha ton sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. % sum, ths. sum, ths. sum, ths. sum, ths.

1 41 38849 38485 364 9 2 0 3 55 50835 51690 -855 -16 4 72 81520 75456 6064 84 5 47 45945 41914 4031 86 6 41 50032 45727 4305 105 7 35 32725 34650 -1925 -55 8 128 139479 128934 10545 82 9 74 106227 96570 9657 131 Total 493 545611 513426 32185 65

1 50 48231 48553 -322 -6 2 85 119018 106853 12165 143 3 55 55350 48375 6975 127 4 52 77983 63856 14127 272 5 3 22 66 190 12540 145 9570 2970 990 31.0344828 10 20573 16913 3660 366 6 54 68803 58595 10208 189 7 42 30787 27287 3500 83 8 0 9 34 42664 36544 6120 180 10 637 38.8888889 49 51656 44562 7094 145 Total 637 38.8888889 3 22 66 190 12540 145 9570 2970 990 31.0344828 431 515065 451537 63527 147

1 120 337282 259710 77572 646 2 696 35.1351351 8 25 200 190 38000 150 30000 8000 1000 26.6666667 15 74850 57759 17091 1139 3 646 37.3626374 6 24 144 190 27360 150 21600 5760 960 26.6666667 46 123886 98563 25324 551 4 53 46949 43333 3616 68 Total 658 36.7473662 14 24.6 344 190 65360 150 51600 13760 983 26.6666667 234 582967 459365 123602 528 Grand total 656 36.9670027 17 24.1 410 190 77900 149 61170 16730 984 27.3500082 ### 1643642 1424328 219315 189 Table 7

Reseeding Wheat incl. reseeding Grand total Farming economic Cost Cost Profit Crop Cost Including Cost Profit Including Cost . Cost Profit Including economic efficiency of total total area of per 1 ha total total per 1 ha of 1 total total per 1ha efficiency company production hect production production % sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. sum, ths. %

1 0.9 13305 9573 3732 15 22904 1527 18483 4421 295 52154 1272.03659 48058 4096 100 8.5 2 3 -1.7 9 6399 711 5805 594 66 50835 924.272727 51690 -855 -16 -1.7 4 8.0 19 13680 720 11856 1824 96 81520 1132.22222 75456 6064 84 8.0 5 9.6 6120 4464 1656 19 19179 1009 15760 3419 180 52065 1107.75957 46378 5687 121 12.3 6 9.4 14875 10763 4113 10 21274 2127 16190 5085 508 64907 1583.08537 56490 8417 205 14.9 7 -5.6 0 0 0 32725 935 34650 -1925 -55 -5.6 8 8.2 17 12495 735 10608 1887 111 139479 1089.67969 128934 10545 82 8.2 9 10.0 0 0 0 106227 1435.5 96570 9657 131 10.0 Total 6.3 34300 24800 9501 89 95930 1078 78701 17229 579911 1176.28945 538225 41686 85 7.7 579911 538225 1 -0.7 5940 4290 1650 10 11391 1139 9143 2248 225 54171 1083.42 52843 1328 27 2.5 2 11.4 39780 29016 10764 13 51878 3991 38669 13209 1016 158798 1868.20941 135869 22929 270 16.9 3 14.4 72350 53183 19168 30 90125 3004 68933 21193 706 127700 2321.81818 101558 26143 475 25.7 4 22.1 30600 23220 7380 9 38002 4222 29412 8590 954 108583 2088.13846 87076 21507 414 24.7 5 21.6 2718 1963 755 1 3438 3438 2581 857 857 23291 2329.05 18876 4415 441 23.4 6 17.4 16 10618 664 9005 1613 101 68803 1274.13333 58595 10208 189 17.4 7 12.8 26 12940 498 10647 2293 88 30787 733.014286 27287 3500 83 12.8 8 9 16.7 8925 6458 2468 8 20701 2588 14922 5780 722 51589 1517.32353 43002 8588 253 20.0 10 15.9 38220 26793 11428 12 43764 3647 31809 11956 996 89876 1834.20816 18522 71355 Total 14.1 198533 144922 53612 125 282856 2263 215119 67737 713598 1655.67865 543626 169972 31.3

1 29.9 0 0 0 337282 2810.68333 259710 77572 646 29.9 2 29.6 0 0 0 74850 4990 57759 17091 1139 29.6 3 25.7 2 1686 843 1389 298 149 123886 2693.18261 98563 25324 551 25.7 4 8.3 12466 8468 3998 15 18766 1251 14618 4148 277 89876 1834.20816 71355 18522 378 26.0 Total 26.9 12466 8468 3998 17 20452 1203 16007 4446 625895 1452.19165 596459 29436 68 4.9 Grand total 15.4 245299 178189 67110 231 399239 1728 309827 89412 1919403 1678310 241093 Table 8 Calculation of profit on the resumed farmlands

Profit from 1 ha (Sum, Acquisition area (permanent), ha Name of thousand) questionnaire farming company Wheat cotton rice silage Total Crop Gardens mulberry- Poplar Wheat cotton rice silage corn area maize Turtkul district 1 R 32009 Ibrahim Accountant 0.35 0.35 295 2 R 32011 Uzbek Yoldash 3 R 32018 Turtkul Doniyorov Northay 1.8 8.6 10.4 66 4 R 32036 Kurbannazar Accountant 3.3 3.3 96 80 5 R 32042 Nursultan 1.3 1.5 2.8 1 180 81 6 R 32052 Toza-Akka 6 6 508 108 7 R 32053 Meretkilych 0.41 0.41 8 R 32074 Latif Sart 0.1 0.1 111 78 9 R 32075 Shaukat Aitov 15 15 131 Total 3.1 35.3 0 38.36 0 1.0 Ellikkala district 1 R 32062 Jumanyyaz Bakkal 8.22 8.22 225 2 R 32065 Kuliev Radzhapbay 0.5 1.5 2 1016 135 3 R 32073 Mardon Kumelat 0.74 0.74 706 198 4 R 32095 Khurshid 3.5 3.5 954 99 5 R 32096 Furkat 0.3 0.3 0.6 857 6 R 32097 Sarbi Biniet 2.89 2.89 101 226 7 R 32107 Turkiston Durdonasi 2 1 3 88 75 8 R 32111 Ghafur Baltaev 0 2.645 9 R 32113 Sari Ohun 1.39 1.39 722 108 10 R 32115 Safarbay Rakhimov 1.94 1.94 996 165 Total 7.04 17.2 0 24.28 2.645 0 Beruny district 1 R 32119 Karamiddin Zharlkop 3.0 3 205 2 R 32121 Pahtachi 0.13 0.6 0.73 0.2 1540 1000 3 R 32122 Rahim-bobo 0.28 0.28 149 45 4 R 32123 Ashirov Radzhibay 0.95 0.95 277 91 Total 0.28 3.95 0.13 0.6 4.96 0 0 Grand total 10.42 56.5 0.13 0.6 67.6 2.645 1 Table 8 Calculation of profit on the resumed farmlands

Profit from 1 ha (Sum, Profit from acquired area (Sum, thousand) Name of thousand) questionnaire farming company Gardens mulberry- Poplar Wheat cotton rice silage Gardens mulberry Poplar Total maize Turtkul district 1 R 32009 Ibrahim Accountant 2 R 32011 Uzbek Yoldash 3 R 32018 Turtkul Doniyorov Northay 119 119 4 R 32036 Kurbannazar Accountant 264 264 5 R 32042 Nursultan 234 122 365 720 6 R 32052 Toza-Akka 645 645 7 R 32053 Meretkilych 0 8 R 32074 Latif Sart 88 9 R 32075 Shaukat Aitov 1958 1958 Total 365.3 353 2996 0 0 0 365 0 3714 Ellikkala district 1 R 32062 Jumanyyaz Bakkal 2 R 32065 Kuliev Radzhapbay 508 203 711 3 R 32073 Mardon Kumelat 523 523 4 R 32095 Khurshid 3340 3340 5 R 32096 Furkat 257 257 6 R 32097 Sarbi Biniet 654 654 7 R 32107 Turkiston Durdonasi 176 75 252 8 R 32111 Ghafur Baltaev 1019 2695.3 2695 9 R 32113 Sari Ohun 150 150 10 R 32115 Safarbay Rakhimov 320 320 Total 4805 1401 0 0 2695 0 0 8901 Beruny district 1 R 32119 Karamiddin Zharlkop 614 614 2 R 32121 Pahtachi 112 200 600 112 912 3 R 32122 Rahim-bobo 42 42 4 R 32123 Ashirov Radzhibay 87 87 Total 42 700 200 600 0 0 112 1654 Grand total 5199.1 5097.5 200.2 600 2695.3 365 112 14269 Table 9 Calculation of compensation for the crops from the resumed arable lands

Name of Land alienated (permanent), hectares

questionnaire farming company Wheat cotton rice silage Total Crop Gardens Mulberry Poplar Irrigated corn area (tree) total Turtkul district hect 1 R 32009 Ibrahim Accountant 0.35 0.35 0.35 2 R 32011 Uzbek Yoldash 0 3 R 32018 Turtkul Doniyorov Northay 1.8 8.6 10.4 10.4 4 R 32036 Kurbannazar Accountant 3.3 3.3 3.3 5 R 32042 Nursultan 1.3 1.5 2.8 1 3.8 6 R 32052 Toza-Akka 66 6 7 R 32053 Meretkilych 0.41 0.41 0.41 8 R 32074 Latif Sart 0.1 0.1 0.1 9 R 32075 Shaukat Aitov 15 15 15 Total 3.1 35.26 0 38.36 0 1.0 39.36 Ellikkala district 1 R 32062 Jumanyyaz Bakkal 8.22 8.22 8.22 2 R 32065 Kuliev Radzhapbay 0.5 1.5 2 2 3 R 32073 Mardon Kumelat 0.74 0.74 0.74 4 R 32095 Khurshid 3.5 3.5 3.5 5 R 32096 Furkat 0.3 0.3 0.6 0.6 6 R 32097 Sarbi Biniet 2.89 2.89 2.89 7 R 32107 Turkiston Durdonasi 21 3.0 3 8 R 32111 Ghafur Baltaev 0 2.645 2.645 9 R 32113 Sari Ohun 1.39 1.39 1.39 10 R 32115 Safarbay Rakhimov 1.94 1.94 1.94 Total 7.04 17.24 0 24.28 2.645 0 26.925 Beruny district 1 R 32119 Karamiddin Zharlkop 3.0 3 3 2 R 32121 Pahtachi 0.13 0.6 0.73 0.2 0.93 3 R 32122 Rahim-bobo 0.28 0.28 0.28 4 R 32123 Ashirov Radzhibay 0.95 0.95 0.95 Total 0.28 3.95 0.13 0.6 4.96 0 0 0.2 5.16 Grand total 10.42 56.5 0.13 0.6 67.6 2.645 1 0.2 71.445 Table 9 Calculation of compensat Calculation of compensation for the crops from the resumed arable lands

Compensation to farmers for crop Name of Cost of production from 1 hect (thousand sum) losses (thousand sum) questionnaire farming company Wheat cotton rice silage Gardens Mulberry Poplar Wheat cotton rice silage Total Crop maize (tree) corn area Turtkul district hect 1 R 32009 Ibrahim Accountant 1527 1125 394 394 2 R 32011 Uzbek Yoldash 3 R 32018 Turtkul Doniyorov Northay 711 966 1280 8308 9587 4 R 32036 Kurbannazar Accountant 720 1280 4224 4224 5 R 32042 Nursultan 1009 1175 1312 1762 3074 6 R 32052 Toza-Akka 2127 1408 8445 8445 7 R 32053 Meretkilych 935 383 383 8 R 32074 Latif Sart 735 1144 114 114 9 R 32075 Shaukat Aitov 1436 21533 21533 Total 1078 2592 45162 47754 Ellikkala district 1 R 32062 Jumanyyaz Bakkal 1139 1070 8791 8791 2 R 32065 Kuliev Radzhapbay 3991 1485 1995 2228 4223 3 R 32073 Mardon Kumelat 3004 1503 2223 2223 4 R 32095 Khurshid 4222 1267 14778 14778 5 R 32096 Furkat 3438 743 1031 223 1254 6 R 32097 Sarbi Biniet 664 1531 4425 4425 7 R 32107 Turkiston Durdonasi 498 1115 995 1115 2111 8 R 32111 Ghafur Baltaev 0 9 R 32113 Sari Ohun 2588 1188 1651 1651 10 R 32115 Safarbay Rakhimov 3647 1218 2362 2362 Total 21024 20796 41819 Beruny district 1 R 32119 Karamiddin Zharlkop 1283 3848 3848 2 R 32121 Pahtachi 6300 4750 819 2850 3669 3 R 32122 Rahim-bobo 843 1045 236 236 4 R 32123 Ashirov Radzhibay 1251 1070 1016 1016 Total 1203 236 4864 819 2850 8769 Grand total 1728 23852 70822 819 2850 98343 Table 9 Calculation of compensat Calculation of compensation for the crops from the resumed arable lands

Compensation to farmers for crop losses Name of Land Severy Lvhd Total (thousand sum) questionnaire farming company Gardens Mulberry Poplar Planting Total improvement loss allowance compens (tree) total 000' sums >10% 000' sums 000' sums Turtkul district 1 R 32009 Ibrahim Accountant 394 49 1863 2306 2 R 32011 Uzbek Yoldash 0 19 847 866 3 R 32018 Turtkul Doniyorov Northay 9587 1734 11321 4 R 32036 Kurbannazar Accountant 4224 1551 1355 7130 5 R 32042 Nursultan 15904 15904 18978 3551 22529 6 R 32052 Toza-Akka 8445 3420 8445 847.0 21157 7 R 32053 Meretkilych 383 57 440 8 R 32074 Latif Sart 114 48 677 839 9 R 32075 Shaukat Aitov 21533 10425 21533 1016 54507 Total 15904 15904 63658 20854 29978 6605 121095 Ellikkala district 1 R 32062 Jumanyyaz Bakkal 8791 1077 1186 11054 2 R 32065 Kuliev Radzhapbay 4223 3104 7327 3 R 32073 Mardon Kumelat 2223 2215 1355 5793 4 R 32095 Khurshid 14778 13859 28637 5 R 32096 Furkat 1254 1107 1863 4224 6 R 32097 Sarbi Biniet 4425 3074 7499 7 R 32107 Turkiston Durdonasi 2111 1361 847 4319 8 R 32111 Ghafur Baltaev 41226 41226 41226 11161 982 53369 9 R 32113 Sari Ohun 1651 769 2420 10 R 32115 Safarbay Rakhimov 2362 1554 3916 Total 41226 41226 83045 39281 982 5251 128559 Beruny district 1 R 32119 Karamiddin Zharlkop 3848 2853 0 6701 2 R 32121 Pahtachi 560 560 4229 3772 0 1694 9695 3 R 32122 Rahim-bobo 236 198 0 434 4 R 32123 Ashirov Radzhibay 1016 462 0 1478 Total 560 560 9329 7285 0 1694 18308 Grand total 41226 15904 560 57690 156033 67420 30960 13550 267963 ble 10 Calculation of agricultural profit loss at permanent land acquisition of the arable lands ( Resolution N 149/7 of the Council of Ministers of the Republic of Karakalpakistan dated 30.06.1995) base net annual profit net profit allianated Compensation cost for Total cost of compensation Title of the Bonitet rates for 4 years land area agricultural losses for agricultural losses farm score 000' sums on the resumed calculated at base including the net income ha rates land 000' Uzb sums 000' Uzb sums in 1995 prices in 2010 prices Turtkul District 1 R 32009 Ibrahim Accountant 50 140 0.35 49 49 2 R 32011 Uzbek Yoldash 30 104 0.18 19 19 3 R 32018 Turtkul Doniyorov Northay 40 121 119 475 10.4 1258 1734 4 R 32036 Kurbannazar Accountant 55 150 264 1056 3.3 495 1551 5 R 32042 Nursultan 70 176 720 2882 3.8 669 3551 6 R 32052 Toza-Akka 50 140 645 2580 6 840 3420 7 R 32053 Meretkilych 50 140 0 0 0.41 57 57 8 R 32074 Latif Sart 65 168 8 31 0.1 17 48 9 R 32075 Shaukat Aitov 68 173 1958 7830 15 2595 10425 Total 3714 14854 39.54 5999 20853 Ellikkala District 1 R 32062 Jumanyyaz Bakkal 45 131 8.22 1077 1077 2 R 32065 Kuliev Radzhapbay 45 131 711 2842 2 262 3104 3 R 32073 Mardon Kumelat 65 168 523 2091 0.74 124 2215 4 R 32095 Khurshid 51 142 3340 13362 3.5 497 13859 5 R 32096 Furkat 45 131 257 1028 0.6 79 1107 6 R 32097 Sarbi Biniet 60 159 654 2615 2.89 460 3074 7 R 32107 Turkiston Durdonasi 38 118 252 1007 3 354 1361 8 R 32111 Ghafur Baltaev 52 144 2695 10780 2.645 381 11161 9 R 32113 Sari Ohun 40 121 150 600 1.39 168 769 10 R 32115 Safarbay Rakhimov 51 142 320 1278 1.94 275 1554 Total 8901 35604 26.925 3677 39281 Berunii District 1 R 32119 Karamiddin Zharlkop 45 131 614 2455 3 393 2848 2 R 32121 Pahtachi 45 131 912 3649 0.93 122 3771 3 R 32122 Rahim-bobo 35 113 42 167 0.28 32 198 4 R 32123 Ashirov Radzhibay 40 121 87 347 0.95 115 462 Total 1654 6617 5.16 661 7279 Grand Total 14269 57075 71.625 10337 67413 Table 11 Calculation of compensation for resumed pasture lands

basic rates area of the Cost Title of farm at 1995 prices land aqisition of compensation of agriculture produciton loses 000' sums per 1 ha of pasture land ha UZS, ths.

R 32119 Karamiddin Zharkol 1.125 5.6 6.3 R 32121 Pahtash 1.125 1.0 1.1 Total 6.6 7.4 Table 12 Compensation for the loss of crops, plantations and constructions of the households land (ha) Compensation for the loss of crops Severy loss Lvhd Houses and Relocation Total ID and plantations (000' sums) of land allowance other allowance compensation number total resumed % crops garden poplar Total (more than 10%) structures 000' sums urtkul district 1 Ap130 0.36 0.06 17 41 270 311 47 1356 8500 10214 2 AP28 0.89 0.57 64 230 6126 2517 8873 879 1524 44590 161.3 56027 3 AP29 0.45 0.33 73 448 8281 3019 11748 1249 847 38844 161.3 52849 4 AP32 0.72 0.12 17 354 768 1122 372 2340 3834 5 AP26 169.4 11660 161.3 11991 6 AP33 0.65 0.5 77 1057 3832 2823 7712 1713 847 36375 161.3 46808 7 AP34 0.60 0.06 10 177 788 113 1078 847 1200 3125 8 AP35 0.35 0.26 74 231 1337 2229 3797 709 677 30316 161.3 35660 9 AP43 0.42 0.08 19 244 1772 120 2136 310 677 30000 161.3 33284 10 AP44 0.40 0.11 28 465 5713 100 6278 621 1016 7915 11 AP45 0.24 0.038 16 122 1177 200 1499 190 847 45210 161.3 47907 12 AP47 0.32 0.11 34 97 4500 35 4632 211 169 18649 161.3 23822 13 AP48 0.32 0.045 14 28 120 148 31 1355 1534 14 AP49 0.24 0.065 27 930 561 1000 2491 1143 1355 19800 161.3 24950 15 AP50 0.24 0.15 63 400 120 520 34 847 42320 161.3 43882 16 AP51 0.12 0.09 75 40 40 40 677 757 17 AP132 0.18 0.02 11 1200 330 1530 95 677 2302 18 AP133 0.28 0.225 80 432 4490 4922 539 1863 7324 19 AP57 0.48 0.215 45 1314 1000 2314 1514 1524 5352 20 AP58 0.36 0.12 33 29 1000 1029 229 847 2105 21 AP140 0.40 0.19 48 45 45 45 1355 1445 22 AP134 5.00 0.812 16 158 158 158 1355 1671 13.02 4.17 32 6442 41335 14606 62383 10129 20831.4 329804 1613 424760 Ellik Kala district 1 AP59 0.40 0.025 6 189 189 847 1036 2 AP68 0.15 0.03 20 306 306 306 339 951 3 AP135 0.57 0.112 20 889 1928 2817 935 1355 500 5607 4 AP70 0.68 0.58 85 495 15613 1200 17308 1107 847 43320 161.3 62743 5 AP82 0.30 0.26 87 52 1976 2028 99 508 13020 161.3 15816 6 AP83 0.60 0.05 8 82 362 488 932 1016 1948 Table 13 Values of affected houses and other structures ID year House Cowshed Other structures Total num builtSize constr material psmp valueSize psmp Value Size psmp Value compens ber length width 2 foun roof 000' s 000' sums l w 2 000' s 000' sums l w 2 000' s 000' sums 000' sums Turtkul district 1 AP26 1990 12 10 120 93 11160 5 5 25 20 500 11660 2 Ap130 25 17 425 20 8500 8500 3 AP28 1988 23 13 299 135 40365 13 13 169 25 4225 44590 4 AP29 1988 21 13 273 128 34944 15 13 195 20 3900 38844 5 AP32 9 13 117 20 2340 2340 6 AP33 2001 15 15 225 139 31275 15 17 255 20 5100 36375 7 AP34 1990 12 5 60 20 1200 1200 8 AP35 2009 12 13 156 171 26676 14 13 182 20 3640 30316 9 AP43 1970 20 15 300 82 24600 20 10 200 20 4000 10 4 40 35 1400 30000 10 AP45 12 10 120 311 37320 12 5.5 66 25 1650 16 13 208 30 6240 45210 11 AP47 13.3 11.8 157 107 16799 12.3 6 73.8 25 1850 18649 12 AP49 1988 15 15 225 83 18675 9 5 45 25 1125 19800 13 AP50 1989 20 20 400 97 38800 11 16 176 20 3520 42320 Total 10 280614 13 41550 2 248 7640 329804 Ellik Kala district 1 AP135 5 4 20 25 500 500 2 AP70 1980 16 18 288 135 38880 15 16 240 15 3600 4 6 24 35 840 43320 3 AP82 2006 14 7.5 105 110 11550 7 6 42 20 840 3 6 18 35 630 13020 4 AP88 1983 36 19 684 130 88920 88920 5 AP141 0 0 0 5 4 20 20 400 6 4 24 35 840 1240 6 AP89 1994 22 15 330 110 36300 14 8 112 20 2240 38540 7 AP90 1987 12 11 132 110 14520 11 4 44 20 880 4 4 16 35 560 15960 8 AP94 1991 18 17 306 110 33660 7 5 35 20 700 34360 9 AP100 1998 12 12 144 110 15840 15 3 45 20 900 7 4 28 35 980 17720 10 AP138 0 5 3 15 20 300 9 4 36 35 1260 1560 11 AP106 1992 19 20 380 135 51300 4 20 80 20 1600 5 12 60 35 2100 55000 12 AP109 1972 25 20 500 105 52500 20 20 400 20 8000 8 4 32 35 1120 61620 13 AP110 1991 19 17 323 130 41990 41990 14 AP112 1999 12 10 120 110 13200 13200 Total 11 398660 11 1053 19960 8 238 8330 426950 27 Gtotal 21 679274 24 1053 61510 10 486 15970 756754 Average 32346 2563 1228 Note: Calculation of houses' and other constructions' values was done based on following characteristics: size of constructions, contruction materials used for foundation, wall, roof and floor and other parameters. Calculation of values of the demolished houses and constructions done by Turtkul cadaster department was taken into account as well. land (ha) Compensation for the loss of crops Severy loss Lvhd Houses and Relocation Total ID and plantations (000' sums) of land allowance other allowance compensation number total resumed % crops garden poplar Total (more than 10%) structures 000' sums 7 AP84 0.70 0.26 37 40 1740 1780 81 677 2538 8 AP85 0.38 0.23 61 134 5372 397 5903 341 1016 7260 9 AP88 1.20 0.4 33 715 8488 2526 11729 1422 1016 88920 161.3 103248 10 AP141 1.25 0.59 47 1139 12261 2329 15729 1897 847 1240 19713 11 AP89 1.00 0.3 30 334 2468 595 3397 512 1016 38540 161.3 43626 12 AP90 1.10 0.385 35 869 5760 1710 8339 1348 1355 15960 161.3 27163 13 AP92 0.52 0.148 28 1068 6750 450 8268 1319 677 10264 14 AP94 1.00 0.07 7 3689 5200 1000 9889 847 34360 161.3 45257 15 AP100 0.35 0.35 100 870 4460 1020 6350 1180 1186 17720 161.3 26597 16 AP138 0.70 0.2 29 513 225 1560 2298 830 1016 1560 5704 17 AP145 0.20 0.1 50 864 864 173 1186 2223 18 AP146 0.30 0.05 17 698 1925 380 3003 820 1355 5178 19 AP147 0.20 0.08 40 690 1274 3914 5878 1503 1016 8397 20 AP106 1.20 0.55 46 4 9844 1454 11302 529 1186 55000 161.3 68178 21 AP108 1.10 0.25 23 740 740 740 677 2157 22 AP109 1.00 0.66 66 1653 16948 3126 21727 2682 2540 61620 161.3 88730 23 AP110 1.00 0.45 45 431 3213 486 4130 605 1016 41990 161.3 47902 24 AP112 0.40 0.18 45 2230 22165 624 25019 2883 1016 13200 161.3 42279 16.30 6.31 17830 127972 24123 169925 21312 24557 426950 1774.3 644518 46 29.32 10.48 24272 169307 38729 232308 31441 45388.4 756754 3387.3 1069278.7 Table 14 Calculation of compensation for affected businesses in the Republic of Karakalpakistan

ID Name Typesize () construction material price Value Average Num Averag Compensation amount (000' sums) number of the owners of lengthwidth total foun wall roof floor 12 of the monthly of monthly owner wor LHd Relocation total business dation building income workers wage kers allowance allowance 2 000' sum000' sum 000' sum Turtkul district 1 R32013 Turebekov Aybek shop 10 15 150 conc brick clay conc 173 25950 (does not function) 25950 2 R32010 Yuldashev Davron gas station 20 20 400 conc brick slate concy 0,037ha land is resumed) 0 3 R32012 Nematjon Turtkul ltd gas station 15 20 300 conc brick slate concy 0,011ha land is resumed) 0 4 R32008 Polvon shop 15 8 120 conc clay 60 7200 finished shop) 7200 Total 33150 33150 Ellik Kala district 1 R32104 Sagdullaeva Marifat shop 17 9 153 conc clay clay wood 98 14994 335 2 150 2010 1800 677.5 161.3 19643 Total 14994 2 2010 1800 677.5 161.3 19643 Grand Total 48144 2010 1800 677.5 161.3 52793 Annex H

Additional Maps

ASIAN DEVELOPMENT BANK

GOVERNMENT OF THE REPUBLIC OF UZBEKISTAN

THE REPUBLICAN ROAD FUND UNDER THE MINISTRY OF FINANCE

CAREC Corridor 2 Road Investment Program FF ADB PPTA No. 7375-UZB VOLUME 3 (Part B) II Poverty and Social Assessment NN and Gender Action Plan for Projects 2 & 3 AA LL

RR EE PP OO Submitted by: RR TT

Tashkent, September 2010 Poverty and Socio-economic Assessment (PSA)

Document Stage: Final Project Number: TA 7375 UZB

Social Analysis Report for Project 2 and 3:

Uzbekistan: CAREC Corridor 2 Road Investment Program

October 2010. Ver 6

Note:The PSA 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. TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

TABLE OF CONTENT I. INTRODUCTION...... 4 A. Project Background ...... 4 B. PSA Goals...... 5 II. RESEARCH METHODOLOGY ...... 6 A. Data Collection...... 6 B. Selection of Indicators ...... 6 C. Sampling Design ...... 6 D. Procedures for Data Collection and Analysis...... 8 E. Secondary Information ...... 10 F. Constraints and Assumptions ...... 11 G. Data Authenticity and Reliability ...... 12 III. SOCIOECONOMIC AND GENDER ANALYSIS - PROJECT 3.2...... 13 A. Brief Description...... 13 B. Population ...... 14 C. Education ...... 16 D. Healthcare...... 16 E. Income and Expenditure...... 16 F. Transport and Roads...... 25 G. Ethnic Groups...... 30 H. Gender Analysis...... 31 I. Consultations and Participation ...... 33 III. ANALYSIS OF SECONDARY DATA COLLECTED IN KHOREZM REGION...... 36 A. Poverty Profile, Incomes and Employment of the Population...... 36 B. Transport and Roads...... 40 IV RESULTS OF SOCIOECONOMIC AND GENDER ANALYSIS IN GAZLY TOWN, BUKHARA REGION...... 42 A. Brief Description...... 42 B. Social Infrastructure ...... 44 C. Poverty Profile, Incomes and Employment of the Population...... 45 D. Transport and Roads...... 49 E. Ethnic Groups...... 51 F. Gender Analysis...... 51 G. Consultations and Participation ...... 54 V. ROAD USERS SURVEY RESULTS ...... 56 A. Road Users – Passengers...... 56 B. Poverty Profile, Incomes and Employment of the Passengers...... 56 C. Road Users –Drivers ...... 60 VI. SOCIOECONOMIC IMPACT OF REHABILITATION AND CONSTRUCTION OF THE INTERNATIONAL HIGHWAY A-380 ...... 65

IKS GROUP OF COMPANIES 2TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Glossary

Territorial community, community of neighbours; Mahalla In Uzbekistan, this word means a body of self-governance of citizens. Oficially named as Mahalla assembly of citizens (MAC).

Rural territorial community of neigbours; similar to Mahalla, Ovul Ovul assembly of citizens (OAC) represents a body of self-governance, in rural areas. Tomorka Household plot for agricultural activities. Hokimiyat Local authorities/local government.

Abbreviations

ADB Asian Development Bank AAO Association of apartment owners. These are also called “shirkats” AR Autonomic Republic CA Central Asia, Central Asian CPI Consumer price index EA Executing agency GoU Government of Uzbekistan GRP Gross regional product NGO (NNO) Nongovernmental not-for-profit organizations MAC Mahalla assembly of citizens MPC Maximum permissible concentration OAC Ovul assembly of citizens PEE Preschool education establishments PPTA Project Preparatory Technical Assistance PRSP Poverty Reduction Strategy Paper PSA Poverty and Socio-Economic Assessment RUZ Republic of Uzbekistan RRF Republican Road Fund SME Small and medium enterprises SUM Uzbek sums TA Technical assistance $ United States Dollar UTS Urban-type settlement WIS Welfare Improving Strategy

Currency Exchange Rate as of the Period of the Study (June 2010)

1 USD = 1589.38 sum as for date June 15, 2010

Table of Measures

1 centner = 100 kg 1 ha = 100 sotkas 1 sotka = 100 m2 1 km = 1000 meters

IKS GROUP OF COMPANIES 3TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

I. INTRODUCTION

A. Project Background

1. The Government of Uzbekistan has received technical assistance (TA) from the Asian Development Bank (ADB) for the preparation of the CAREC Corridor 2 Road Investment program. 2. The investment program targets the Uzbekistan section of the CAREC Corridor 2 - the A380 highway, which connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. Another highway investment is now under preparation in Kazakhstan (supported by the ADB) which will connect Beyneu (a town on the border with Uzbekistan) with Uzbekistan’s A380 highway and the port of Aktau in the Caspian Sea. The two highways, when completed, will provide Uzbekistan and other Central Asian countries direct access to the Caspian Sea, and thereafter to South Asia and the Black Sea (via road corridors being built in Armenia, Azerbaijan, and Georgia). The investment program has strong links to CAREC Corridor 6, which reaches the so-called Ring Road in Afghanistan and thereafter the main ports in Pakistan and Iran. 3. A National Road Development Program for 2009–20141 has been prepared. It is consistent with the sector strategy and road map and is estimated to cost $2.6 billion - of which $1.6 billion is directed to the A380 highway. The investment program will contribute to this program. Other investments cover rural and urban roads. The investment involves mainly the reconstruction of existing networks, although some green field projects are also envisaged. The proposed investment program will have an impact on sustainable economic development. The outcome will be better transport connectivity and efficiency, and institutional effectiveness. 4. The Uzbekistan CAREC 2 project will comprise approximately 222 km reconstructed road section of the A380 highway, and improved planning, project management, logistics, road asset management, and community facilities. The relevant A380 sections are located in Bukhara, Khorezm provinces and the Autonomous Republic of Karakalpakstan. The project is financed through ADB’s Multi-tranche Financing Facility (MFF) with 3 tranches being applied for the Investment Program. The first tranche (Project 1) commenced in 2010, with subsequent tranches to follow, as they are prepared. The Executing Agency (EA) for the Project is the Republican Road Fund (RRF) under the Ministry of Finance. 5. The investment is split into three separate projects2: 6. Project 1 consists of approximately 50 km reconstructed section of the A380 highway (between Km440 and Km490). This section does not involve land acquisition or involuntary resettlement, nor lead to significant environmental impacts. The investment will convert the existing road section into a four-lane international design road within the existing right-of-way. This project also includes road sector sustainability, community development and road asset management activities. Project 1 is currently under implementation. 7. Project 2 comprises approximately 85 km reconstructed section of the A380 highway (between Km355 and Km440) and procurement of the road construction and maintenance equipment.

1 Resolution of the President of the Republic of Uzbekistan PP-1103 dated 22 April 2009. 2 ADB, 2010. Report & Recommendation to the President - Proposed Multi-tranche Financing Facility, Republic of Uzbekistan: Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program

IKS GROUP OF COMPANIES 4TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

8. Project 3 comprises 2 sections – the first is approximately 40 km reconstructed road section of the A380 highway between Km315 and Km355. The second section is the construction of 47 km of a new alignment between Km581 and Km628 bypassing the towns of Turtkul, Beruni and Buston. The project will also strengthen logistics by improving cross- border facilities and shortening the cross-border processing time. This project will also expand the community development program and institutional capacity. 9. This report presents findings of a Poverty and Social Assessment Study (PSA) that was conducted in three districts of Karakalpakstan Autonomic Republic and Khorezm region for the Sub-projects 3.2 and in Gazly town and Bukhara city of Bukhara province for the Sub- project 2. B. PSA Goals

10. The goal of the PSA is to evaluate the economic, social and cultural factors affecting the sub-projects 2, 3.1 and 3.2, and to develop proposals for the mitigation/elimination of any negative impacts and risks on specific social groups, particularly vulnerable groups such as low-income families, women and children. As the sub-project involves not only reconstruction of the existing road but also the new construction, special emphasis has been placed on reviewing the current situation relating to access to the road, level of transport services, including their reliability and accessibility for all users. 11. The key objectives of this study were: i. to obtain information about the socio-economic characteristics of households in the sub-project areas, including data on poverty and employment indicators, sources of income and composition of expenditures, family size and structure, quality of life indicators, including access to road and basic social infrastructure establishments, use of transport and the impact of access to the improved road of the resident population; ii. to identify social groups that will be impacted by the sub-project and to describe the role and interests of each of these groups; iii. to provide a baseline for the subsequent evaluation of the socio-economic impact of the sub-project on vulnerable groups and on reduction of poverty; iv. to identify the attitudes of road users and resident population towards the current road condition and transport services, and households willingness and ability to pay for improved road, with a particular focus on consumers with low living standards; v. to identify appropriate social development indicators for monitoring the sub-project, and to recommend participatory mechanisms for the greater involvement of local communities and women.

IKS GROUP OF COMPANIES 5TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

II. RESEARCH METHODOLOGY

A. Data Collection

12. Data was collected to obtain a broad range of information about the characteristics of the target areas, relevant for the sub-project, including: i. specific socio-economic features of the sub-project area; ii. the presence of ethnic minorities within the sub-project area, and their access to road and transport services, and the development of a Minorities Action Plan; iii. gender specific features and issues relating to the access to road and transport services, and the development of a Gender Action Plan; iv. possible socio-economic benefits of the sub-project, primarily for vulnerable groups of the population; v. development of a participation strategy and the identification of participatory mechanisms and consultations.

B. Selection of Indicators

13. Indicators for the research instruments were selected in compliance with the Terms of Reference and the ADB Guidelines for Social Issues and Poverty Analysis. The indicators are clustered into the following groups: i. Demographic – size, composition and structure of the surveyed households; age, gender and ethnic identity of the members of the surveyed households; ii. Education and employment – level of education attained, employment sector and status of employment, economic activity, secondary employment of the members of the surveyed households; iii. Living standards and quality of life – size and structure of income and of expenditures, poverty rate, access to communal services; iv. Access to Social Infrastructure - availability of healthcare services, access education institutions and markets. v. Access and use of the road and transport services – frequency of use, major destinations, type of transport means, and associated costs. 14. All the indicators developed were collected in such a way that they could be analyzed using several variables, including but not limited to the following: i. gender of the head of household ii. ethnic identity of the head of household iii. type of housing iv. size of the household v. poor/non-poor households vi. income and expenditures vii. access to social infrastructure establishments.

C. Sampling Design

15. In compliance with the goals and objectives of the PSA and Gender Analysis, and to obtain a statistically signifcant result, a total of 632 households were surveyed in 4 Sub-project areas. This comrpised 200 households in Turtkul, 202 households in Ellikkala, 200 households in Beruniy, and 30 households in Gazly town. To provide secondary and background data, an additional 100 households were surveyed in three locations of the Khorezm region which surround the three major crossings of the Ama Daryu River into the project area. There were 5 focus group discussions (FGD) and 20 structured interviews with

IKS GROUP OF COMPANIES 6TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT major stakeholders. In addition, data was collected from the Statistics Departments of District mahallas and Gazly town concerning the population size, households, ethnicity, business and social infrastructure. 16. The household survey was based on a single-stage simple random sampling. This sampling ensured a 90% confidence level. The sample size was calculated on the basis of the following formula: N 22 n z N Z 22 2

Where: n – Sample size; N – General totality; Z – Critical point of standard normal distribution for the target significance value = 0.5); – Dispersion of a significant characteristic. 17. The population is the total number of households in the sub-project area, and was estimated using official statistics. The critical point of the normal distribution is a constant value for the target representation, and is equal to 0.90. The limit of sampling error is determined by the target level of significance and does not exceed 10%. Normal distribution of income was selected as a characteristic of the general totality for the following reasons: i. this distribution is normal; and, ii. the cluster effect is insignificant due to substantial coincidence of inter-group and intra-group variance. 18. Household selection for the survey sample was done in 87 Mahallas of Turtkul, Beruniy and Ellikkala and Gazly town. The number of households selected in each mahalla corresponded to the share of households in the mahalla as part of the total number of households in the project area. Therefore, the sample that was designed is proportional and does not require data re-weighting. 19. The selection of households was based on the list of households provided by the Mahalla. Each interviewer was given: i. the name of the mahalla where she/he would have to sample households and conduct interviews; ii. the total number of households to be interviewed in each mahalla; and, iii. The name and household unique code tag to be handed to the household head. The Code tag provided contact information and ensured data verification when necessary. 20. Households were selected on the basis of step-wise sampling. The sampling step (interval) was calculated using the following formula: I = N / n Where: I – interval for sampling N – Total number of households in the mahalla n – Number of households to be interviewed in the mahalla 21. To ensure probabilistic sampling, households were sampled using a ‘random start’ process. A start number for the household was determined by dividing the proposed interval by two. A fractional result was rounded up or down in accordance with mathematical rules.

IKS GROUP OF COMPANIES 7TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

When the end of the household list was reached, the selection process continued from the beginning of the list; households were not repeated for selection. 22. After completing the main list of households, a back-up list was made to guarantee the survey against possible failures due to the refusals of respondents in the main list to be interviewed. The size of the back-up sample was equal to half of the basic sample. In the case of a refusal or the impossibility of interviewing the household on the main list, an interview was conducted with the next household on the back-up list. In these cases, interviewers recorded the reasons why households were replaced with back-up households. The rate of refusals of respondents was relatively low for the entire sample size at 8%. 23. If the mahalla list indicated one household, whereas in fact two or more separate households resided at the same address, the first head of household in alphabetical order was interviewed. If the mahalla list indicated two or more households carrying out household activities separately but residing at the same address, and where two or more of them had been selected as part of the main sample, the interview was conducted with only one of these households selected on the basis of the alphabetical order of the names of the household heads. The other households located at the same address were replaced with the addresses of the households in the back-up list. If such household appeared to have been included in the basic sample, and another household was in the back-up sample, an interview was conducted with the former, but the latter was then excluded from the back-up list. Within a household, the head of family or the most informed family member was selected as the respondent. 24. In order to assess the structure and performance of the transport market for the project area, the consultants designed two sets of questionnaires and undertook field surveys for road users: (a) passengers and (b) drivers. The drivers’ survey was designed to study the structure of the bus and trucking markets and the extent of direct Government involvement in provision of transport services. The passengers’ survey was developed to learn about fare structures and extent of use of various modes of transport and the degree to which passengers encounter problems with access to common destinations such as hospitals and schools. Income questions were included in all surveys to broadly capture the user profile. These surveys helped determine the degree to which road user benefits are passed on from vehicle owners to users, and the degree to which the poor and the extremely poor will benefit from the project. It also assisted in identifying institutional constraints creating additional obstacles for the poor families from receiving larger share of the benefits from the Project. D. Procedures for Data Collection and Analysis

25. Both quantitative and qualitative methods of data collection were used for the PSA. This included a review and analysis of available information about the sub-project area (using official statistics in the first instance), findings from the extensive household survey, in-depth interviews with key stakeholders and focus group discussions. 26. The field phase of the study was undertaken in July 2010. During the pre-field phase, three questionnaires were designed for the survey. The guidelines for the focus group discussions as well as four types of in-depth interview guides for use with different key stakeholders were also designed. The sampling parameters and procedures for the household survey were refined. A briefing was held to train field staff (including interviewers and supervisors) in the use of the research instruments and the sampling procedure. All documents, including the methodology for data collection, sampling procedures, questionnaires and guides, were coordinated and revised with international and local experts. The questionnaire for the survey is provided as a separate appendix to this PSA report (Annex IV). 27. The field study consisted of several phases. Prior to conducting the field study, a pilot study was carried out to pre-test, adjust and finalize the research tools – particularly the household survey questionnaire, the instructions for interviewing, and the sampling

IKS GROUP OF COMPANIES 8TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT procedures. The compliance of the questionnaire with the study objectives was verified at four levels: i. at the level of the questionnaire, i.e., to what extent the questionnaire makes it possible to collect the required information; whether the information contained in the different sections of the questionnaires is contradictory, and whether some indicators are duplicated, etc.; ii. at the level of the sections of the questionnaire, i.e., to what extent the indicators in each section of the questionnaire are necessary and sufficient for obtaining the required information; iii. at the level of questions, i.e., to what extent the questions are clearly worded; whether ambiguous answers can be given to a question, whether alternative interpretations of the questions and proposed answer options are probable, whether the answer options for closed questions exhaust all possible options and to what extent, etc.; iv. in parallel with these, the correctness of coding the questions and answer options and the justification for skipping respective questions was checked. 28. The PSA team, together with field supervisors, conducted the pre-testing pilot study and five household respondents in each city were interviewed. The sampling was designed to ensure that all the sections of the questionnaires were used. Adjustments to the household questionnaire and to the instructions for interviewers were made based on the results of the pilot study. 29. A two-day training session was held for field staff. 55 interviewers, 5 supervisors, 4 moderators, one programmer, data input operators and an Uzbek translator attended the training. On the first day, a detailed discussion of the Household questionnaire and Road users’ questionnaire was held, looking at every question and possible answer option. In addition, several non-standard situations were illustrated using experiences from the pre- testing study. Interviewers were asked to practice interviewing each other. On the second day, a detailed analysis of the mock interviews was presented, and training in sampling procedures was given. 30. The household survey was implemented by 55 interviewers using a face-to-face method at the home of the respondents. The refusal rate was approximately 8% of the basic sample of households and the number of repeat visits by interviewers was approximately 5%. The road users’ survey was organised with the drivers of passenger transport and trucks. The household survey covered a total of 732 households in Turtkul, Ellikkala and Beruniy districts of Karakalpakstan AR, Urgench city, Hazarasp district and Cholish settlement of Khorezm region and Gazly town of Bukhara province. 31. The quality of interviewers work was checked by five supervisors using the following techniques: i. checking sampling procedures together with the local self-governance bodies; ii. re-visiting 10% of households that had been interviewed all questionnaires were checked with respect to completeness and correctness: iii. skipped answers were recorded; iv. inconsistencies and contradictory answers were then identified; and v. unclear responses in open questions were clarified, 32. A special data input software was designed for inputting information and cleaning the database, with an option of quality control of the inputted data, including: (i) setting the limits of the range of admissible values; (ii) checking the correctness of skipping questions; (iii) checking questions for cross-consistency; and (iv) checking misprints made by data input operators.

IKS GROUP OF COMPANIES 9TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

33. The final database was processed using the standard statistical package SPRSS V.15.0 and specifically designed software based on Delphi. 34. The PSA also included 20 structured interviews with representatives of key groups of stakeholders. The following groups of stakeholders participated in each of focus group discussions: i. Representatives and residents from the Mahallas of each city; ii. Representatives from social infrastructure establishments, such as: Educational establishments; Medical Establishments iii. Specialists of other related government offices and representatives of local authorities iv. Specialists of “Uzavtoyul” regional offices v. Representatives of Local Hokimiyats

35. Ten in-depth interviews were also conducted for the PSA with the following groups of respondents: i. qualified experts: ii. local authority officers (Hokimiyat, associations of freight forwarders etc.), and iii. Uzavtoyul local offices’ employees responsible for the maintenance and operation of the road; iv. representatives of the local population such as house owners and mahalla leaders; v. management representatives of social infrastructure establishments (heads of schools, kindergartens, colleges, hospitals, outpatient institutions, etc.); 36. FGD’s and interviews were recorded, and minutes of the meeting prepared for further analysis. In-depth interviews were used to achieve a better understanding of the nature of problems in the area of access and quality of the road, transport services, and for the development of strategies for coping with the current problems related to the quality of the road. FGD’s and in-depth interviews have been analyzed and incorporated into this report as direct quotations. 37. In addition, socio-demographic, productive and social infrastructure information was collected for all mahallas. Information was provided by the chairpersons of urban and rural mahallas, local authorities, departments of statistics, departments of public education, departments of finance and local employment agencies. 38. The Poverty and Social Impact Assessment pays particular attention to the ADB’s over- arching objective of poverty alleviation. It identifies ways in which the Project can improve the quality of life and health conditions of the local residents in the Project areas over both the short and long term. The assessment aims to: (i) assess the overall impact of the project on the economic prospects of the provinces through which A380 runs, (ii) assess the direct and indirect impacts of the project on the livelihoods of the population (iii) recommend a participatory process; (iv) incorporate gender issues; and (v) incorporate social safeguard issues, such as involuntary resettlement, ethnic minorities, labour, and other risks/vulnerability. E. Secondary Information

39. During the preparatory phase, a brief review of relevant official statistics was carried out based on selected indicators, specifically: i. administrative data; ii. demographic statistics; iii. data on productive and social infrastructure establishments (enterprises, iv. organizations, educational establishments, and medical institutions);

IKS GROUP OF COMPANIES 10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

v. information on access to communal services.

40. The data of the State Committee of the Republic of Uzbekistan on Statistics (Goskomstat), district departments of statistics and “Uzavtoyul” local offices, were used as the base source of secondary information. F. Constraints and Assumptions

41. When the study was conducted, the following sets of problems were identified: 1. Sampling design process

42. The main difficulties were related to selecting the households (sampling units): Mahallas use different registration methods. Some register families, while others register households. This makes it difficult to correctly identify the unit for the survey sample; The lists can register two separate households, when in fact they are the same household and carry out activities together; The lists register one household, when in fact there are two or more households that carry out household activities separately; The list does not contain names of households or families, but postal addresses within the area of an apartment blocks.

2. Respondent Selection

43. The main difficulties were related to: absence of the heads of household or informed respondent during the working day, which resulted in an increase in the number of repeat visits (up to 10%); refusal to be interviewed, averaging 8% of the sample size. The relatively low level of refusal was achieved through the careful selection of interviewers and organization of visits to the household together with representatives of local Mahalla offices.

3. Data collection

44. The main difficulties were related to: local self-governance bodies do not having accurate data on production and social infrastructure establishments. This data can be obtained only from local statistics offices; some local self-governance bodies do not have data on the ethnic composition of households. The only information they have is the general ethnic composition of the local resident population; much of the data is incorrect, out-of-date, and not appropriately classified; some mahalla staff members are insufficiently competent, which led to the incorrect completion of questionnaires.

4. Secondary Data

45. The main difficulties were related to: incomplete data and unavailability of some indicators at the city level which were important for the study goals; contradictory information obtained from different sources (e.g., from the statistics offices and local employment agencies);

IKS GROUP OF COMPANIES 11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

G. Data Authenticity and Reliability

46. The authenticity and reliability of the data obtained during the household survey was ensured by using a multi-level control system over the quality of databases. The methodology ensured a 90% confindence level for the sub-project area. It has to be stressed that the evaluation of representation and the estimation of mean errors and limits of errors of the sample were based on the distribution of average per capita household incomes (monetary) and can be correct only for those indicators, which (a) closely correlate with the indicators of incomes, and (b) show normal distribution. Consequently, errors in the data such as employment could be higher than 10%, given the significant seasonal variability in economic activity. 47. Data from local government bodies and orgainsations were cross-checked in order to test data authencity.

IKS GROUP OF COMPANIES 12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

III. SOCIOECONOMIC AND GENDER ANALYSIS - PROJECT 3.2

48. This section outlines the results of the analysis for each of the project area. It includes the districts of Beruniy, Ellikkala and Turtkul. A. Brief Description

49. Beruniy (formerly Sbabboz) was established in July 1927 on the base of Biybizor and Shabboz administrative units. Beruniy district was also called “1st of May”. As it was revealed in July 1957 that famous scholar Abuy Rayhon Beruniy was born near Kat, the capital of ancient Khorezm, Shabboz was renamed after Beruniy is called so ever since. The district is located on the northern bank of Amudarya river and stretches 72 km long. The total area of the district is 3.9 thousand km2. Arable land is 28,853 ha. 255 thousand ha area constitutes Kizilkum deserts, Sulton Uways mountains, Bodoy, Tollik, Sariotov tugai, Okchakol, Moshlikol, Chakakol, Okkol, Polvoshkol natural water reservoirs. Beruniy district is borders with Ellikala district on northern-east, Amudaryo district on west, Karauzak, Tahtakupir districts on northern-west. It borders with Khorezm region on south and Bukhara region on south and east. The distance to Nukus city, capital of the Karakalpakstan, is 152 km.

Table 1.1. The distance from Beruniy district to major destinations on the territory of the Republic of Uzbekistan Turtkul city 28 km Urgench city 18 km Buston city 18 km Bukhara city 400 km Mangit city 110 km Samarkand city 680 km Nukus city 152km Tashkent city 1000 km

50. The Sulton Uwais mountains are located 473 m above sea level. It is a rich natural resources for marble, granite, basalt, calaite and ochre. The district climate is sharply continental. It reaches 38-48 C in summer and 45C sub-zero in winter. Winter usually lasts for 70-80 days. 51. The level of underground waters is about 0.5-3m. There are a number of archeological monuments in the district: Kat kal’a, Filkal’a, Kizilkal’a, Akchahonkal’a, Koratepa, Aezkal’a, Sulton Uwais. The district is specialized in production of agricultural products. There are spinning mill, cotton refinery plant, asphalt refinery, commercial services organizations, publisher’s house and other companies in the district. The largest industry corporation in district “Eggar” stock company contributes to 60-65% of the district budget. 52. Ellikkala district borders with the Kizilkum desert, Sulton Uwais mountain and Kizil Urda region of Kazakhstan Republic on north, Beruniy, Takhtakupir districts on west, Amudarya district and Khorezm region on south, Turtkul district and Navoi region on east. Ellikala district was established in 1977. Buston city is the district center. The total area is 541,920 ha, 768ha of which are Buston city territory. The total population is 129.9 thousands, including 14.8 thousands - urban population and 115.1 thousands - rural. 53. There are 13 ovul assembly of citizens and 8-Mahalla assembly of citizens with 22,611 total number of families. There are a number of large industrial companies operating in district: “Ellikala oltin tolasi” stock company, Uzbekistan-Austria-Bangladesh joint venture and “Univer” society with limited liability are among these. The district is specialized in the production of cotton and wheat. Arable lands are 387,648 ha, including 28,489 ha for plantations and 4,094 ha for tomorkas. There are some 1,059 farms in the district. There are 4 transport organizations in the district: “Ellikala ATK-20” Ltd, “Bustonagromashtrans” Ltd, “Ellikala agrotrans” Ltd and “Bustontransservis” Ltd. There are 14 construction organizations operating

IKS GROUP OF COMPANIES 13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT in the district. 70.6% of the total population of the district is provided with drinking water, 99,9% with natural gas. 54. Turtkul district was established in July 1927. It neighbors with the Ellikala district and Khorezm region on south and west. The total area of the district is 7.5 thousand km2. The population was 175,447. Turtkul district is located on the right (northern) bank of Amudarya River (169 - 206 m alt.). The Kizilkum desert composes the northern and northern-east part of district. Marginal lakes “Suv ergan”, “Sukilli”, “Jumaketgan”, “Kukcha” are at the northern-east and south part of district. The district is supplied with water from “Pakhtaarna (27,5km), Bog- yop (9km) Shorahon-yob (10 km), Kaltaminor (72 km), Ok boshli (18km) and concrete canals (120 km). Underground waters are collected using three pipelines. 55. Production of cotton constitutes the major pillar of the Turtkul economy. Therefore, district industry is also specialized in processing cotton materials. There are cotton refinery factory, factory manufacturing ferroconcrete products, companies providing social and other commercial services, publisher’s house and other companies in the district. Aside from cotton manufacturing, the production of wheat, silk, livestock, fruits and vegetables are also developed in the district. There are 66 schools of general education, 28 kindergatens, vocational education institutes specialized in agriculture, banking, transport, and light industry, medical professional colleges, academic lyceums, business and arts schools in the district. The district also has 3 hospitals with capacity of 600 beds in total, 31 outpatient policlinics, 2 maternity hospitals, 21 rural medical centers. There are 249 doctors and 1,007 other medical staff operating in the healthcare system.

Table 1.2. Administrative Information about the Sub-project Area 3.2 Area, Number of Rural Number of Number of Thousand Population RAC’s Mahallas km2 Localities Beruniy district 3.9 13 23 1 Ellikkala district 5.4 13 8 N/A Turtkul district 7.5 15 20 N/A Total 16.8 41 51 1 Source: Local Hokimiyats, Department of Statistics as of 1 January 2010

B. Population

56. As of 1 January 2010, the total population of Turtkul, Beruniy and Ellikkala Districts was 464,353 people with an average 31.4% of the population living in urban areas and 68.6% in rural areas. The total number of the households in all three districts is 73,238, with more than 40% households residing in Turtkul district; about 25% in Ellikkala district and the remaining 35% in Beruniy district (Table 1.3).

IKS GROUP OF COMPANIES 14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.3. Populations of Beruniy, Ellikkala and Turtkul districts Population Population Number of Number Population Population Including: Growth, Density Household of RAC as % AR 000’s per 1,000 (people/ s 000’s and MAC population Urban Rural people km2) Beruniy 159.073 62.2 96.1 25.387 36 11.36 18.4 40.8 Ellikkala 129.88 14.8 115.1 18.073 21 9.27 21 24 Turtkul 175.4 68.6 106.8 29.778 35 12.5 17.9 23.4 Total 464.353 145.9 318.45 73.238 92 33.16 Average 31.40% 68.60% 19.1 29.4 Source: * Turtkul, Beruniy and Ellikkala districts’ Hokimiyat, Department of Statistics as of 1 January 2010 57. According to the data provided by the local statistics agencies, as of 1 January 2010, the average population density in the three districts was 29.4 people/km2, with the highest one in Beruniy district (40,8 people/km2) and lowest in Turtkul (23.4 people/km2). 58. The average size of a household in Beruniy is 6.2 persons, and the average size of the family is 4.8 persons (Table 1.3). The relatively high population growth rate, generated by a high birth rate (more than 22.9 births per 1,000 population) and a comparatively low mortality rate (4.8 deaths per 1,000 population) are characteristic of Beruniy District. 59. The average size of a household in Ellikkala is 7.2 persons, and the average size of the family is 5.6 persons (Table 1.3). A relatively high population growth rate, generated by a high birth rate (more than 21.7 births per 1,000 population) and a comparatively low mortality rate (2 deaths per 1,000 population) in Beruniy District providing natural growth of population of 19.7 per 1000 people. 60. The average size of the household in Turtkul is about 5.9 persons and is the lowest among three districts surveyed. The population growth is around 18 (per 1000 population). Map 1. Map of Beruniy District Mahallas (See Annex III)

Map 2. Map of Ellykkala District Mahallas (See Annex III)

Map 3. Map of Turtkul District by Mahallas (See Annex III)

61. According to 2010 statistical data, 57% of the population of Beruniy was of employable age (16-60 for men and 16-55 for women). In Turtkul the figure is about 55%, 49% of which, are women. The employment rate is relatively high, representing 62% of employable-age population in Beruniy and 61% in Turtkul. The percentage of people officially registered as unemployed in Beruniy and Turtkul representing 4% and 2.4% of the employable-age population, respectively. 62. Average individual monthly wages (2010) in Turtkul district was 250,000 sum, close to the average national indicator3. Similar data for other districts is not available. As Uzbekistan does not officially have a poverty line, there is no data available to describe local standards of living.

3 State statistics does not register incomes in informal sector, and excludes from reported average wages incomes in agriculture and small business sectors

IKS GROUP OF COMPANIES 15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Education

63. The educational system of Beruniy district is represented by 67 general schools with some 27,889 enrolled students, 50 kindergartens with 1700 children and 8 extra-curricular educational organizations. 64. 22,831 students are enrolled in 71 general education schools in Ellikkala district. Other educational institutions represented in the district, are 6 professional colleges with 6,611 students and 19 kindergartens with 1,450 children. 65. Turtkul District has 62 general schools with 29,464 pupils, 26 kindergartens with 3,050 children of pre-school age. There are 7 professional colleges with 8,336 students and one academic Lyceum with 827 students. The coverage of the children of pre-school age with the kindergartens is 11.8%. D. Healthcare

66. The healthcare facilities of Beruniy district include 1 Central Hospital with 540 beds including 68 beds apportioned for Maternity. There is 1 inpatient hospital for the rural population (Multi-functional branch of District Medical Association), 14 Rural Medical Centers, and 4 outpatient institutions for adults and children. There are a number of private dental clinics and pharmacies in the district. The total number of doctors working in health-care institutions is 311 and 1,617 other medical staff. 67. In Ellikkala, thereis one in-patient hospital with 405 beds, which includes a section for infectious deseases with 15 beds, a children’s department with 73 beds, and maternity deparment for 56 patients. There is 1 atatched outpatient polyclinic with a maternity consulting center and a clinic for children. There are 19 rural medical centers in Ellikkala district. The total number of doctors working in healthcare institutions is 155 and 1,105 nursing staff. 68. The total number of the inpatient medical institutions in Turtkul district is 3 with a total capacity of 600 beds. This includes one infectious diseases department, one central district clinic and one maternity department. There are 219 doctors and 1,034 other medical staff working in Turtkul. E. Income and Expenditure

1. Identification of poor households.

69. A unified methodology for estimating a national poverty line has not yet been adopted in Uzbekistan. However, from 2003 to 2007 the Government of Uzbekistan, in coordination with international organizations, carried out an in-depth study of poverty issues in order to lay the foundation for the National Welfare Improvement Strategy / Poverty Reduction Strategy Paper (WIS – Country PRSP analogue). The WIS document was approved by the Government in 2007. 70. In 20054 taking the Household Budget Survey conducted by the Goskomstat of the Republic of Uzbekistan as a basis, the World Bank defined the poverty rate for the country as 25.8%5. This PSA therefore defines the poverty line as $2.15 per capita per day – which is equivalent to 3,440 Sum.

4 Last poverty data available is dated 2005 5 Welfare Improving Strategy of Uzbekistan: Full PRSP document for 2008-2010

IKS GROUP OF COMPANIES 16 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

71. For the Poverty and Social Analysis, the study methodology has been employed which closely follows the World Bank’s methodology and is largely based on food consumption indicators to identify poverty rates in the sub-project area. This poverty measurement methodology was also adopted as a core methodology for preparing the WIS/PRSP for Uzbekistan. In the WIS/PRSP, the poverty line was determined as the average per capita per day food consumption of less than 2,100 kcal. When measuring actual food consumption, outdoor food intake was also included such as meals at public catering establishments, when visiting friends or relatives, etc. 72. The average monthly income from all types of activities in June 2010 was 163,280 sum in Beruniy district and around 104,000 sum in Ellikkala and Turtkul. (Table 1.7). The average monthly per capita income of poor households in Ellikkala was 72,480 sum, which is around 2 times lower than that of non-poor households’ (146,890 sum). The same tendency is seen for Beruniy (80,710 sum – poor and 201,900 sum – non-poor) and Turtkul districts (75,440 sum – poor and 158,020 sum – non-poor).

Table 1.4. Income and Expenditure Indicators of Poor and Non-poor Households Average Monthly Average Monthly per Capita per Capita Category Income, 000’s Expenditures, sum 000’s sum Beruniy district Poor 80.71 53.14 Non-poor 201.90 84.93 Total 163.28 74.80 Ellikkala district Poor 72.48 69.61 Non-poor 146.89 132.27 Total 104.26 96.36 Turtkul district Poor 75.44 68.79 Non-poor 158.02 137.97 Total 104.77 93.36 Overall total for 124.10 88.17 project area Source: Household survey, June 2010

73. Income indicators are closely correlated with expenditures and household size i.e. the larger the household, the lower its per capita income and expenditure. Average monthly per capita expenditures for poor households in Ellikkala constitute 69,610 sum whilst the same indicator for non-poor household is equal to 132,270 sum. In Turtkul, poor and non-poor household per capita expenditures make 68,790 sum and 137,970 sum, respectively. However, in Beruniy, these indicators less dispersed, poor and non-poor household per capita expenditures being equal to 53,140 sum and 84,930 sum, respectively (Table 1.4).

IKS GROUP OF COMPANIES 17 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.5. Average Weighted Structure of Income of Poor and Non-poor Households in Beruniy district

Percentage of Contribution to Average Total Households Total Income, 000’s Receiving such Household sum Income, % Income, % Income from Marketing Own Agricultural Products 277.75 70.00 33.35 Income from Non- agricultural Entrepreneurial 69.18 34.50 8.31 Activities Income from Hired Employment in the Non- 67.35 34.50 8.09 agricultural Sector Income from Hired Employment in the 152.70 60.00 18.34 Agricultural Sector Old-Age Pensions 47.62 27.50 5.72 Disability Pensions and Benefits 14.22 10.00 1.71 Social Benefits for Low- income Families 1.92 3.00 0.23 Social Benefits for Families with Children Aged 2-18 6.48 14.00 0.78 Social Benefits for Families with Children Aged under 2 2.90 4.50 0.35 Other Social Security Benefits 1.24 2.50 0.15 Remittances sent from abroad 131.60 23.50 15.80 Other Income 59.80 45.50 7.18 Source: Household survey, June 2010

2. Income.

74. In Beruniy district, the most significant family income source is from marketing their own agricultural products (33% of household income) and income from hired employment in the agricultural sector (18%). 70% and 60% of households have received such income, respectively. Other significant sources of income are remittances sent from abroad (16%) and income from non-agricultural entrepreneurial activities (8.3%). Social benefits received by the surveyed household members constitute a relatively low shares of household income - less than 2% in total. However, the share of the poor households receiving such benefits is about twice that of non-poor ones. For instance, social benefits provided by the Mahalla to poor households with children 2-18 years old is equal to 23% compared to 11% for non-poor households. Social benefits provided for low-income families to poor and non-poor families are 5.7% and 2% respectively (Table 1.5).

IKS GROUP OF COMPANIES 18 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.6. Average Weighted Structure of Income of Poor and Non-poor Households in Ellikkala district Percentage of Contribution to Average Total Households Total Income, 000’s Receiving such Household sum Income, % Income, % Income from Marketing Own Agricultural Products 118.15 60.39 20.8864 Income from Non- agricultural Entrepreneurial 20.67 15.84 3.6553 Activities Income from Hired Employment in the Non- 73.34 32.17 12.9657 agricultural Sector Income from Hired Employment in the 172.47 53.46 30.4891 Agricultural Sector Old-Age Pensions 54.49 26.73 9.6333 Disability Pensions and Benefits 14.49 10.39 2.5623 Social Benefits for Low- income Families 2.93 5.44 0.5189 Social Benefits for Families with Children Aged 2-18 14.08 27.72 2.4905 Social Benefits for Families with Children Aged under 2 6.97 9.40 1.2321 Other Social Security Benefits 4.19 6.43 0.7412 Remittances sent from abroad 74.00 21.28 13.0830 Other Income 9.85 5.44 1.7414 Source: Household survey, June 2010 75. In Ellikkala, the most significant income source of family income is hired employment in the agricultural sector (31% of household income) and income from marketing own agricultural products (21%). 53% and 60% of total households surveyed have received these kind of incomes. Other significant sources of income are remittances sent from abroad (13% of household income) and income from hired employment in the non-agricultural sector (12% of household income). Relatively low shares of household income are made by social transfers from the retirement pensions system (9.6% of household income), disability pensions and benefits (2.5%), social benefits provided by Mahalla for households with children 2-18 years old (2.5%) and social benefits for households with children under 2 (1.2%). 76. Average total income in poor families is lower than in non-poor ones (72,480 and 146,890 sum per family capita per month respectively). For some income types, such as income from selling agricultural products, poor families earn less than 3 times non-poor families. For other types of income, such as salaries received from non-agricultural sectors, there is little diffrence betwwen poor and non-poor households. Salaries play a less significant role in income generation in poor families, but social transfers are more important. (Table 1.6) `

IKS GROUP OF COMPANIES 19 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.7. Average Weighted Structure of Income of Poor and Non-poor Households in Turtkul district Percentage of Contribution Average Total Households to Total Income, 000’s Receiving such Household sum Income, % Income, % Income from Marketing Own Agricultural Products 109.75 70.50 17.19 Income from Non- agricultural 54.25 35.00 8.49 Entrepreneurial Activities Income from Hired Employment in the Non- 71.32 40.50 11.17 agricultural Sector Income from Hired Employment in the 164.70 59.50 25.79 Agricultural Sector Old-Age Pensions 69.69 31.00 10.91 Disability Pensions and Benefits 37.94 24.00 5.94 Social Benefits for Low- income Families 1.35 0.50 0.21 Social Benefits for Families with Children 5.42 10.50 0.85 Aged 2-18 Social Benefits for Families with Children 5.46 7.50 0.86 Aged under 2 Other Social Security Benefits 2.86 2.00 0.45 Remittances sent from abroad 80.80 17.00 12.65 Other Income 35.06 28.00 5.49 Source: Household survey, June 2010 77. Average monthly per capita income in Turtkul for poor and non-poor households is 75,440 and 158,020 sum respectively. The major source of income is generated through hired employment in the agricultural sector and contributes an average 26% of the total monthly household income. Other significant income sources are marketing their own agricultural products (17% of total household income), remittances received from abroad 13%), and income received from hired employment in the non-agricultural sector (11%). Old age pensions are received by 31% of the surveyed households, and contribute around 11% of the total household income. 78. The majority of respondents (about 72.5% in Beruniy, 88% in Ellikkala and 78.5% in Turtkul) reported seasonal fluctuations in incomes. More than half of households surveyed reported that their incomes increase during summertime – supported by the significance of agriculture among the the households surveyed (Table 1.8.). It is worth mentioning that the survey was carried out during the summertime when the income levels are expected to increase as seen from the table.

IKS GROUP OF COMPANIES 20 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.8. Seasonal Fluctuations in Income of Poor and Non-Poor Households (% of all HH) Income Is Higher in Income Is Income Does Not Summer Higher in Winter Change During the Year Beruniy district Total 55.50 17.00 27.00 Poor 52.83 7.54 39.62 Non-poor 56.84 20.54 22.60 Ellikkala district Total 84.65 3.46 11.88 Poor 81.48 2.77 15.74 Non-poor 88.29 4.25 7.44 Turtkul district Total 75.00 3.50 21.50 Poor 70.00 4.16 25.83 Non-poor 82.50 2.50 15.00 Source: Household survey, June 2010

Table 1.9. Average Weighted Structure of Expenditures of the Poor and Non- Poor Households in Beruniy district Percentage of Average Total Percentage in Households Expenditures, Total Having such 000’s sum Expenditures Expenditures Foodstuffs 174.92 99.50 45.85 Clothes & Footwear 62.40 86.00 16.36 House maintenance and utilities 28.38 99.50 7.44 Payment for Education 13.57 23.00 3.56 Payment for Healthcare 24.71 40.50 6.48 Expenditures for Transport (including fuel) 21.65 44.50 5.67 Expenditures for Durable goods (such as furniture) 6.10 5.50 1.60 Savings 34.07 26.00 8.93 Other expenditures 15.68 25.00 4.11 Source: Household survey, June 2010

3. Expenditure.

79. The average monthly expenditures of surveyed households in June 2010 in Beruniy were 74,800 sum. Poor households’ monthly expenditures are on average 60 per cent less compared to the ones made by non-poor households. On the earnings side, there is significant difference between poor and non-poor households’ monthly incomes. The difference is as high as 150%. The breakdown of household expenditure by poor and non- poor families does not show significant differences, except for spendings for education (4.3 % for non-poor households and less than 1% for poor-households) and levels of savings (2.3%

IKS GROUP OF COMPANIES 21 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT and 10.8% of poor and non-poor households). Moreover, there are a few items where poor household monthly expenditures exceed the ones of non-poor households; food stuff – 55% of poor household income compared to 43% of non-poor ones. The difference in share can be justified by both smaller income level and the larger familiy sizes of poor households. (Table 1.9) Table 1.10. Average Weighted Structure of Expenditures of the Poor and Non- Poor Households in Ellikkala district Average Percentage of Percentage Total Households in Total Expenditures Having such Expenditures , 000’s sum Expenditures Foodstuffs 166.69 100.00 31.88 Clothes & Footwear 49.26 87.12 9.42 House maintenance and utilities 32.59 96.03 6.23 Payment for Education 16.19 32.17 3.10 Payment for Healthcare 35.05 43.06 6.70 Expenditures for Transport (including fuel) 30.45 52.97 5.82 Expenditures for Durable goods (such as furniture) 15.75 8.41 3.01 Savings 165.22 78.21 31.60 Other expenditures 11.64 20.79 2.23 Source: Household survey, June 2010 80. Average monthly per capita incomes of surveyed households in June 2010 in Ellikkala were around 104,260 sum, whilst expenditures were 96,360 sum on average. Inequality between the poor and non-poor households’ monthly revenues and spending seem significant in Ellikkala district. Both monthly incomes and expenditures are about two times higher in non- poor households compared to the ones of poor households. The biggest share of the expenditures made by the households refers to the food stuff – 31% (38% of poor household expenditures and 28% non-poor household expenditures) and savings – 31% (26% of poor household expenditures and 35.5% of non-poor household). The majority of the surveyed households have had such savings (71% of poor and 86% of non-poor households). Such savings might be made available due to seasonal fluctuations of income and expenditures (as result of increased income from selling agricultural products and consumption of self- cultivated agricultural products). 81. Monthly spendings of households on transport are around 30,450 sum (poor households being – 24,600 sum, non-poor – 37,170 sum) comprising around 5.8 % of the total household expenditures. More than half of the households (about 53%) have incurred transport expenditures (including the money spent for fuel). (Table 1.10) Table 1.11. Average Weighted Structure of Expenditures of the Poor and Non- Poor Households in Turtkul district Percentage of Average Total Percentage Households Expenditures, in Total Having such 000’s sum Expenditures Expenditures Foodstuffs 240.90 100.00 42.33 Clothes & Footwear 55.07 79.50 9.67

IKS GROUP OF COMPANIES 22 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.11. Average Weighted Structure of Expenditures of the Poor and Non- Poor Households in Turtkul district Percentage of Average Total Percentage Households Expenditures, in Total Having such 000’s sum Expenditures Expenditures House maintenance and utilities 28.93 98.00 5.08 Payment for Education 15.33 40.00 2.69 Payment for Healthcare 63.99 68.50 11.25 Expenditures for Transport (including fuel) 30.21 48.50 5.31 Expenditures for Durable goods (such as furniture) 6.20 2.00 1.09 Savings 57.45 38.00 10.10 Other expenditures 70.97 25.50 12.47 Source: Household survey, June 2010 82. In the households surveyed in Turtkul district, the biggest share of the expenditures (42 per cent) are made for food and consumption. Other expenditures such as payment for healthcare (11%) saving (10%) and spendings for clothing (9.7%) constitute significant shares of total expenditure. Payment for housing utilities and transport expenses each comprise 5% of all households’ monthly expenditures. Very little share of households (2%), all of which are classified as non-poor, have purchased durable products within the surveyed period. (Table 1.11) Table 1.12. Demographic Characteristics of Poverty in Beruniy, Ellikkala and Turtkul district Family Family Family Average Family Members Members Members Household Members in Receiving under under Size, Pension Old-age or 7 Years of 16 Years of Persons Age, % Disability Age, % Age, % Pensions, % Beruniy district Total 5.10 9.41 23.43 6.27 7.25 Poor 6.13 10.76 25.84 5.23 8.61 Non-poor 4.76 8.77 22.30 6.76 6.61 Ellikkala district Total 5.42 11.31 31.66 5.93 8.39 Poor 5.81 12.42 34.87 4.93 6.84 Non-poor 4.97 9.82 27.35 7.26 10.47 Turtkul district Total 6.09 11.15 26.66 8.12 10.17 Poor 6.55 11.95 29.89 6.74 8.14 Non-poor 5.41 9.69 20.78 10.62 13.85 Source: Household survey, June 2010

IKS GROUP OF COMPANIES 23 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

4. Poverty Causes

83. The survey results show that family size and structure appear to influence total household income. Large households are more likely to become poor compared to the smaller households. The analysis of composition of poor and non-poor households demonstrates that there is difference in average family sizes. In all three districts, the average household size of poor household is higher than that of non-poor. In poor households the share of the members under 7 as well as under 16 is considerably higher in all three districts. (Table 1.12) 84. There is a link between poverty and the educational levels attained both by the head of household and other household members. In poor families, the number of members with higher education is noticeably lower. Non-poor households (including heads) have completed education to a higher level – particularly at the tertiary level. (Table 1.13)

Table 1.13. Education Indicators for Household Members and Household heads (% of total) Household head in Beruniy district No Education 0.51 Incomplete Secondary Education (7-9 Forms) 4.10 Complete Secondary Education (10-11 Forms) 24.61 Secondary Vocational Educations 41.53 Higher Education 29.23 Students 0.00 Household heads in Ellikkala district No Education 3.03 Incomplete Secondary Education (7-9 Forms) 3.53 Complete Secondary Education (10-11 Forms) 25.25 Secondary Vocational Educations 41.91 Higher Education 23.73 Students 2.52 Household heads in Turtkul district No Education 0.52 Incomplete Secondary Education (7-9 Forms) 5.72 Complete Secondary Education (10-11 Forms) 27.08 Secondary Vocational Educations 52.60 Higher Education 14.06 Students 0.00 Source: Household survey, June 2010 85. There are some economic activity and employment level differences between poor and non-poor households. In addition, the emplyment composition differs from poor to non-poor households. The situation varies across different districts. 86. In Beruniy, the share of poor households with unemployed members (28%) is higher than that of the non-poor households (18%) - in addition to having less share of the

IKS GROUP OF COMPANIES 24 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT economically active population. The share of non-poor households hired in agricultural non- agricultural sectors is higher than of poor households. In Ellikkala, non-poor economic active households (86%) is slightly larger than of poor households. Of agricultural workers, the share of poor households (23%) is larger than of non-poor households (20%). Nonetheless, there are more non-poor households engaged in employment in non-agricultural sector (47%), particularly in State-buget-funded organizations (34%). In Turtkul district, as high as 23.7% of poor households are unemployed, while the mark of non-poor households is around 10.5%. There are some 8% of non-poor households receiving an old-age and disabilitiy pension whereas only about 4.6% of poor households are given such. (Table 1.14)

Table 1.14. Economic Activity and Employment Indicators of Household Members in Beruniy, Ellikkala and Turtkul district (as % of Employable-age Household Members) Beruniy district Non- Total Poor poor Economically Active 73.72 70.44 75.22 Employed 53.01 42.86 57.66 Hired in Non-Agricultural Sector 32.92 29.55 34.45 Entrepreneurs 8.34 8.37 8.33 Agricultural Workers 11.74 4.92 14.86 Unemployed 20.71 27.58 17.56 Economically Inactive 26.27 29.55 24.77 Ellikkala district Non- Total Poor poor Economically Active 86.04 86.01 86.07 Employed 80.3 79.02 81.79 Hired in Non-Agricultural Sector 43.51 40.42 47.14 Entrepreneurs 15.10 15.50 14.64 Agricultural Workers 21.67 23.10 20.00 Unemployed 5.74 6.99 4.28 Economically Inactive 13.95 13.98 13.92 Turtkul district Non- Total Poor poor Economically Active 78.56 79.68 76.72 Employed 59.89 56.02 66.18 Hired in Non-Agricultural Sector 30.84 27.90 35.63 Entrepreneurs 7.19 6.47 8.36 Agricultural Workers 21.85 21.65 22.18 Unemployed 18.67 23.66 10.54 Economically Inactive 21.43 20.31 23.27 Source: Household survey, 2010

F. Transport and Roads

87. There are 60 km of International, and 46 km of Republican Roads within Beruniy district. Regional and local roads lengths are 128 km and 158 km long, respectively, constituting 392km in total. 100% of international roads are of second category with the asphalt pavement.

IKS GROUP OF COMPANIES 25 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Only 9 km of Republican roads are of second category, with the asphalted type of pavement. Other roads are mostly covered with the road-mix type of pavement – 100% of regional roads and 96% of local roads have such pavement type. There are 77 bridges operating in the Beruniy district. (Table 1.15)

Table 1.15. Length and types of roads in Beruniy district Type of pavement (in km) Total Length Type of road Asphalt Road-mix Number of Bridges (in km) pavement pavement International 60 60 - 9 roads Republican 46 9 37 8 roads Regional roads 128 - 128 32 Local roads 158 7 151 28 Total 392 76 316 77 Source: Uzavtoyul, January 2010 88. The total length of roads in Ellikkala district is 299 km; 15 km of which are International, 47km Republican, 30km Regional and some 207 km of roads are of Local status. In total, around 89% of roads are covered with a road-mix type of pavement. However, International roads (67%) are mostly asphalted, in contrast to (3.3%) regional and (8.6%) local roads. All International roads are of second category. Conversely, none of the regional or local roads are of second category. There are 4 bridges on International roads, 8 on Republican, 8 on Regional and 27 on Local Roads. (Table 1.16)

Table 1.16. Length and types of roads in Ellikkala district Type of pavement (in km) Total Length Number of Type of road Asphalt Road-mix (in km) Bridges pavement pavement International roads 15 10 5 4 Republican roads 47 3 44 8 Regional roads 30 1 29 8 Local roads 207 18 189 27 Total 299 32 267 47 Source: Uzavtoyul, January 2010 89. In Turtkul district, there are only 49 km of Regional roads and 175km Local roads in use. These are mainly road-mix pavement type roads (98% of all Regional and 95% of Local roads). 188km of total 224km are of fourth category, 29km of third category and 7km are of fifth category. There are 37 bridges functioning in Turtkul district.

Table 1.17. Length and types of roads in Turtkul district Total Type of pavement (in km) Category Type of Number of Length Asphalt Road-mix road II III IV V Bridges (in km) pavement pavement Regional 49 1 48 - 1 42 6 9 roads Local roads 175 4 167 - 28 146 1 28 Total 224 5 215 - 29 188 7 37 Source: Uzavtoyul, January 2010

IKS GROUP OF COMPANIES 26 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

90. The most commonly preferred means of transport in Beruniy, Ellikkala and Turtkul districts are public transport - buses and minibuses being the most popular in use. These are mostly employed to reach colleges, hospitals and central markets - distant destinations that are limited in number and mostly located across the roads. Other destinations such as chools and workplaces that are located relatively close distance to residences are visited mostly on a daily basis by walking. Using a private car to access these destinations is the third most popular choice, which is justified by non-availability of cars in every household and limited fuel supply. Other alternatives such as using bicycles, motor bikes and animals/carts are seen as the least popular options. (Table 1.18)

Table 1.18. The use of transport types for different purposes by the members of household (%) Beruniy district Destination Public Transport Private vehicle By walking School 11.50 1.76 80.53 College 60.93 0.00 31.25 Polyclinics 70.73 12.19 13.41 Hospital 83.09 9.85 5.63 Market 74.21 15.26 8.94 Ellikkala district Destination Public Transport Private vehicle By walking School 20.14 2.98 70.14 College 60.27 0.00 36.98 Polyclinics 34.88 10.07 52.71 Hospital 50.74 14.92 32.83 Market 71.50 17.09 10.88 Turtkul district Destination Public Transport Private vehicle By walking School 5.88 0.98 88.23 College 72.72 1.51 19.69 Polyclinics 78.12 8.59 13.28 Hospital 68.90 26.89 3.36 Market 73.15 18.94 4.21 Source: Household Survey, June 2010

Recently, there is limited gasoline available at the gas stations. It is being supplied only in limited hours and not on a daily basis. This has caused the increase in the prices as well. Now, if urgent, we’ve to purchase gasoline for 2-3 times higher prices at hand. Taxi driver.

91. While institutions such as schools, colleges and workplaces are attended on a daily basis, the majority of the households indicated that they visit hospitals and polyclinics less than once a month in all three districts. Markets and other destinations are travelled to mostly as often as every 3-10 days).

IKS GROUP OF COMPANIES 27 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

For my kids it takes 1-1,5 hour to get to their college, since we live far from the district center. We can not accurately plan the trasporattion time, as there is no time-table for mini-buses. Drivers will not leave the passengers collection point, unless the mini-bus is full. In our case kids spend about three hours every day on road. I know that other families in our ovul have difficulties in covering transport costs for their children. Ovul resident

My son studies in the University in Tashkent, and stays in dormitory. He visits us on holidays and use bus to get home. However he needs to change 2 buses, to get to Ellikkala, since there is no direct bus route from Tashkent to Ellikkala. When we want to visit him, we also need first get to Turtkul, from where only we can get to inter-city bus. The same situation with the families where kids are studying in Urgench or Nukus. Ovul resindent

Table 1.19. Average spendings by destinations by the members of household ( %). Beruniy district Destination Average time spent (one Average money spent way - minutes) (each time one way - sum) School 12.83 871.42 College 24.95 1334.26 Polyclinics 19.54 957.97 Hospital 26.30 1250.00 Market 24.24 1416.42 Ellikkala district Destination Average time spent Average money spent (minutes) (sum) School 13.60 550.00 College 36.58 1188.89 Polyclinics 16.54 1025.50 Hospital 23.40 893.47 Market 22.62 1297.84 Turtkul district Destination Average time spent Average money spent (minutes) (sum) School 15.28 2000.00 College 21.69 1063.82 Polyclinics 27.20 1293.69 Hospital 25.40 1484.10 Market 25.43 1409.16 Source: Household Survey, June 2010 92. Almost all households surveyed reported that they go to markets, hospitals and polyclinics at a distance where they either have to use public transport or a private vehicle (Table 1.13). Colleges and higher education institutes are also situated at locations distant to most of the households surveyed, due to the presence of these institutes in limited numbers. 93. Similarly, central hospitals are located in district centres, requiring households to use either public transport or private cars to access medical institutions in case of emergency. It takes about 25 minutes on average to reach hospitals. However, the waiting period for the

IKS GROUP OF COMPANIES 28 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT public transportation can exceed this figure upto 2-3 times for households located at remote location. 94. Time spent on roads, alongside the use of transport tend to fluctuate with respect to seasonal changes as well. Many households surveyed (48% in Beruniy, 42% in Ellikkala and 84% in Turtkul district) reported that transport use increases during summertime. Some households (38% in Beruniy, 52% in Ellikkala and 31% in Turtkul districts) indicated that time spent on road increases in wintertime due to worsened state of roads caused by seasonal precipitation. (Table 1.20)

If someone in our household gets sick and we need to get to the hospital on the emergency basis, there is no chance we will get ambulance. We just need to see our relatives or neighbours who have private cars and ask them for help. Now it is evem more difficult because of the lack of gasoline. Makhalla Representative

The quality of the roads in our neighbourhood is terrible. In winter this situation worsens even more. It takes forever to wait until bus arrives and itvtakes longer to get to your destination. The number of breakeges due to bed shape of the road increases, and less transport means attending routes. Makhalla Resindent

Table 1.20. Seasonal fluctuations in transport use by household members (%) Beruniy district Increases in Increases in Doesn’t summer winter change Transport use 48.24 3.51 48.24 Time spent on road 8.54 38.19 53.26 Money spent on transport 3.01 29.64 67.33 Ellikkala district Increases in Increases in Doesn’t summer winter change Transport use 42.07 1.48 56.43 Time spent on road 2.47 51.48 46.03 Money spent on transport 21.78 5.44 72.77 Turtkul district Increases in Increases in Doesn’t summer winter change Transport use 84.00 4.50 11.50 Time spent on road 4.50 31.00 64.50 Money spent on transport 26.00 22.50 51.50 Source: Household Survey, 2010 95. During the household survey, the majority of respondents expressed increased interest in the project and when asked, stated that the project will improve the existing situation. This is particularly noticeable in Turtkul district where over 83% of households reported that that situation will be positively changed thanks to the project. Similarly, 76% of households in Ellikkala and 62% of households in Beruniy believe that they will have positive impact on transport and roads infrastructure and will result in improved conditions (Table 1.21).

IKS GROUP OF COMPANIES 29 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 1.21. Share of households who expect the project will improve the situation (%). Beruniy Ellikkala Turtkul All households 61.50 75.74 83.50 Women 64.00 79.41 86.20 Men 61.49 75.00 83.04 Poor 69.81 73.14 76.66 Non-poor 58.90 78.72 93.75 Source: Household Survey, June 2010 G. Ethnic Groups

96. According to survey results the ethnic composition of the population in the sub-project area is heterogeneous with the majority of population nominally being Uzbeks and groups of representatives of other ethnicities such as Kazakhs, Turkmens and Karakaplaks. Other representatives of Central Asian ethnicities (such as Kyrghyzs) were not recorded in the survey or were found in very few numbers (such as Tadjiks). Ethinicty in the project area is shown in table 1.22

Table 1.22. Ethnicity in Project Area Uzbek Kazakh Turkmen Karakalpaks Other Total Turtkul 105962 42068 15842 9681 2464 176017 60.2% 23.9% 9.0% 5.5% 1.4%

Ellikkala 101956 12468 9221 5974 260 129880 78.5% 9.6% 7.1% 4.6% 0.2%

Beruniy 102920 33246 11294 10181 1432 159073 64.7% 20.9% 7.1% 6.4% 0.9%

TOTAL 310838 87783 36357 25836 4156 464970 67% 19% 8% 6% 1% 100% 97. According to the household survey, the poverty rate and other poverty indicators suggest some differences between ethnic groups. This is particularly noticeable in Turtkul district, where 3.2% of Uzbek, 4.1% Turkmen, 3.1% Kazakh and 6.1% of Karakalpak households surveyed are identified as poor. This data however cannot be extrapolated to an entire ethnic group. Because of the small number of different ethnic minorities in the sample, the data are not representative and it is not possible to draw firm conclusions or make comparisons between the living standards of different ethnic groups. Despite the fact that these ethnicities co-exist in the area and share certain values in common, there are significant differences between these ethnicities. These differences can be seen in number of parameters such as education, vocation, housing and vocational preferences. 98. In Beruniy, the average size of household ranges from 5 (Karakalpaks) to 5.13 (Uzbeks). Despite the fact that Karakalpaks have the smallest number of average household size amongs all ethnicities surveyed, the share of children under 16 in Karakalpaks households is as high as 30% compared to 23-24% for other ethnicities. Kazakh headed

IKS GROUP OF COMPANIES 30 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT households are seen with the highest share of household heads with higher education (42.3%). 99. In Ellikkala, survey results indicated that Turkmen households are the largest with the average household size of 6.05. Households with unemployed heads are found only in Uzbek households surveyed (4.26%). 100. In Turtkul, Turkmen and Uzbek households are the ones with the highest average family size. 8.95% of Uzbek headed households and 7.14% of Kazakh households are with unemployed households heads (Table 1.23.).

Table 1.23. Ethnic composition of households Beruniy district Uzbek Turkmen Kazakh Karakalpak Share of households with household 0.00 0.00 3.84 0.00 heads with no education Share of households with unemployed 10.27 8.00 7.69 0.00 household heads Share of households with household 28.08 20.00 42.30 0.00 heads with higher education Household size 5.13 5.12 5.11 5.00 Share of poor 5.50 6.21 4.31 5.90 Ellikkala district Share of households with household 1.82 11.11 9.09 0.00 heads with no education Share of households with unemployed 4.26 0.00 0.00 0.00 household heads Share of households with household 24.39 11.11 18.18 57.14 heads with higher education Household size 5.34 6.05 5.09 6.42 Share of poor 3.43 3.60 3.70 3.88 Turtkul district Share of households with household 0.74 2.32 0.00 0.00 heads with no education Share of households with unemployed 8.95 0.00 7.14 0.00 household heads Share of households with household 11.19 16.27 35.71 0.00 heads with higher education Household size 6.23 6.20 5.07 5.00 Share of poor 3.22 4.12 3.10 6.08 Source: Household Survey, 2010 H. Gender Analysis

101. The total number of women in Beruniy district is 78,800 (49.5% of total population), 65,900 (50.7%) in Ellikkala and 87,000 (49.6%) in Turtkul district. According to the survey

IKS GROUP OF COMPANIES 31 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT results, women to men ratio in Beruniy district is 0.91, in Ellikkala is 1.05, and in Turtkul is 0.89. 102. Of those who responded that they visited hospitals and polyclinics at least once within last one year, the majority responded that they used public transport to access medical institutions. However, respondants varied across different gender groups. In Beruniy, 68% of women reported that they used public transport to reach hospitals compared to 70% of men and 60 % of children under 16. Ellikkala figures reflect less reliance on public transport to reach medical institutions. The number of males prefferring public transport to access hospitals is about 58%, while the other 33% use private cars. Indicators for women show that 50% are public transport users and 412% are private car users. In Turtkul, the share of men using private car to access hospitals (42%) is higher than that of women (34%). 103. The share of men, women and children under 16 visiting polyclinics by walking is generally higher than those visiting hospitals by using private cars or means of transport. This is explained by the larger number of polyclinics that are located at closer distances to households, i.e. walking distance. However, in districts, hospitals are centralized and located in city centers, meaning that one should either use public transport or access it by private car (See Annex’s table 1.24). 104. The majority of respondents in all three districts indicated that men, use transport more often compared to women (86% in Turtkul, 80.2% in Ellikkala and 56% in Beruniy districts). Only 2.5% Beruniy and less than 1% of households surveyed in Ellikkala responded that females use transport more often than males do. The movements of children by transport, as reported, are usually accompanied by men. 105. The survey revealed the majority of drivers in the sub-projects area are men. During the interview, the majority expressed their concerns about the quality of the road and how it affects the speed of the traffic. At the same time, the PSA reports the lack of traffic signs along the road also significantly affect road traffic safety. According to research and publicly available data, the most common reasons of the traffic accidents are over-speeding and driving while intoxicated.

Table 1.24. Gender composition of transport use by household members in Beruniy, Ellikkala and Turtkul districts (In %) Users Beruniy Ellikkala Turtkul All use equally 14.50 2.97 3.00 Men use more often than 56.00 80.19 86.00 women Women use more often than 2.50 0.99 0.00 men Children (all under 16) use 0.00 0.00 0.00 more often Women and children use more 0.00 0.49 0.00 often Men and children use more 26.50 15.34 11.00 often Source: Household Survey, 2010 106. Gender differences exist not only between household heads, but also between gender groups in general. These differences lay mainly within education and employment. The

IKS GROUP OF COMPANIES 32 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT education level of women, particularly of higher education, is lower compared with that of men. This difference is considerably higher in Beruniy and Ellikkala districts. 107. A lower level of education creates considerable disadvantage in the labour market and is reflected in other indicators especially in the level of generated income (Table 1.25). The level of entrepreneur households’ heads is higher as well amongst the men; in Turtkul 10.71% of men headed households are entrepreneurs in comparison to only 4.16 of women headed households. Among the surveyed respondents, no female-headed households were entrepreneurs.

Table 1.25. Differences between the female and male headed households (%). Beruniy Ellikkala Turtkul Men Women Men Women Women Men z Heads of Households who have Not Completed 0.00 0.57 14.70 0.59 3.44 0.58 School Education, % Heads of Households who 29.1 16.00 30.45 11.76 13.79 13.45 have Higher Education, % 6 Unemployed Heads of 24.6 Households of Employable 4.00 1.17 51.51 58.33 35.71 9 Age and Older, % Household Size, Persons 5.41 6.58 4.64 5.58 5.58 6.18 55.3 Poverty Rate, % 28.00 26.43 44.11 55.17 60.81 5 Source: Household Survey, 2010 108. Most of the households surveyed, regardless gender, have vocational education. In Ellikkala and Turtkul districts these indicators are higher for men, however, the situation in Beruniy is quite the opposite. In all three districts, the share of men having higher education exceeded that of women. In Beruniy, 16% of women have higher education, compared to 22% of men. In Ellikkala, 10% of women and 16% of men have higher education; and in Turtkul 5% of women and 9.8% of men.

Table 1.26. Education level between men and women (%). Beruniy Ellikkala Turtkul Women Men Women Men Women Men No education 0.57 0.26 1.94 0.29 1.25 0.22 Basi education 27.50 26.45 35.37 28.31 33.25 25.78 Vocational 45.84 44.17 39.27 43.06 46.75 54.03 education Higher education 16.33 22.22 10.30 16.22 5.00 9.86 Source: Household Survey, June 2010 I. Consultations and Participation

109. The household and road users survey paid particular attention to the consultation and participation mechanism. The project potential outcomes, both possible positive and negative impacts being discussed during public consultations, structured and in-depth interviews. The information and data presented below reflect the ideas and outcomes of the analysis of

IKS GROUP OF COMPANIES 33 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT information received during the survey and interviews. The issues which were raised by the meetings participants are summarised and presented as drect quotations. 110. When asked, the majority of respondents (83% in Turtkul, 76% in Ellikkala and 62% in Beruniy) stated that they believe that the project will improve the existing situation. The majority of the households are confident that, when the sub-project is completed, they will have well established road infrastructure and better access to remote locations. 111. When asked whether the respondents are convinced that the sub-project will result in better business and trade opportunities, better access to public goods and services and greater access to education, healthcare and other social institutes, the majority in all three districts surveyed responded positively (Table 1.27.). Table 1.27. Share of households who believe that the construction of new road will create new opportunities (%). Beruniy district Yes No Don’t know Creation of new business 92.00 0.50 7.00 opportunities Better access to healthcare 50.50 7.00 42.00 Better access to education 53.50 7.50 38.50 Better access to public goods and 78.50 0.50 20.50 services Ellikkala district Yes No Don’t know Creation of new business 82.67 0.49 16.83 opportunities Better access to healthcare 73.26 2.47 24.25 Better access to education 69.80 2.47 27.72 Better access to public goods and 85.14 0.49 14.35 services Turtkul district Yes No Don’t know Creation of new business 95.00 0.50 4.50 opportunities Better access to healthcare 61.50 5.00 33.50 Better access to education 68.00 0.50 31.50 Better access to public goods and 75.50 1.00 23.50 services Source: Household Survey, 2010

Lack of signs on the road is creating problems for the drivers, because absence of signs near populated settlement may result in unwanted accidents. These who do not know that there is populated area close road violate the speed limit regulations, which is not even marked on the road. Bus driver

112. As a part of the survey, respondents were asked what issues related to existing roads and transport are of importance to them. It is notheworthy that each district defined three different lists of issues that are of greater importance and specific to that particular district. 113. In Beruniy key issues identified included the need to improve existing roads, solving problems of the availability of gas and issues related to safety and security of the roads and

IKS GROUP OF COMPANIES 34 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT transport means. In Ellikkala district, significant issues underlined, in order of importance were improvement and reconstruction of existing roads, safety of public transport means and absence of roads signs. In Turtkul pressing issues covered availability of fuel, improvement of the quality of existing roads, issues related the public transports as well as routes and maintenance of road safety and security measures. It is worth mentioning, that most of the households in all three regions pointed to the need for improving already existing roads. No other issues such as those related to the lighting of the roads and roadside faciltites were not underlined (Table 1.28). Table 1.28. Issues related to existing state of roads addressed by the household members ( %) Issues Beruniy Ellikkala Turtkul Quality of existing roads 30.50 31.18 24.50 Public transport limitations (limited number of routes 13.50 11.38 19.66 / limited number of transport means) Limited number of road signs 16.83 17.98 19.83 Safety and security of the public transport means 16.66 23.43 7.00 Limited gas stations/absence or limited supply of 21.50 15.84 28.83 gasoline Other issues 0.50 0.16 0.16 Source: Household Survey, 2010

114. Households surveyed, based on their knowledge of the state of roads in the sub-project site, were also asked to identify the investment directions that they believe to be of highest priority. Their responses are outlined in Table 1.29 Table 1.29. Opinion of households on priorities for improvement of road infrastructure (%) Suggested Improvement Beruniy Ellikkala Turtkul Reconstruction of existing roads 16.66 23.59 16.50 Construction of new roads 17.00 14.68 19.00 Enhancement of the bus stops and 19.33 18.64 18.16 stations’ conditions for passangers Increase the frequency of the public 15.66 9.24 13.66 transport means Expansion of public transport routes 7.66 6.60 10.33 Betterment of the road maintenance 8.00 9.57 7.00 services Improvement of road safety 11.33 13.53 7.33 Reduction of carbon emissions 3.83 4.12 8.00 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 35 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

III. ANALYSIS OF SECONDARY DATA COLLECTED IN KHOREZM REGION

115. During the household survey for Project 3.2, it was decided that secondary data will be collected in three locations of the Khorezm region: Urgench city, Khazarasp district and Chalish rural settlement. The choice of the sites for the household survey was based on the proximity of these three locations to the Amudarya bridges. 116. There are three bridges used by transport to cross the river and get from Khorezm region to Karakalpakstan and back. During implemention of the survey only two bridges were operational - the floating bridge near Cholish rural settlement and the railway/road bridge in Hazarasp. 117. Access to basic communal services: Household survey results suggest that, on average about 98% of households surveyed in Khorezm region supplied with electricity and natural gas. However only 35% of the household (in average) is connected to the centralized water supply, with about 53% of the households in living in residential buildings.

Table 2.1. Coverage of Households with Municipal Services in Khorezm region (%) Percentage of household Percentage of Percentage of with access to centralized household with household with access water supply access to electricity to natural gas Poor 42.00 100.00 98.00 Non-poor 28.00 98.00 98.00 House 53.03 100.00 98.48 Apt. 0.00 97.05 97.05 Total 35.00 99.00 98.00 average Source: Household survey, July 2010

A. Poverty Profile, Incomes and Employment of the Population

118. The average monthly per capita Income in Khorezm region in June 2010 was 96,450 sum, with an observable difference between the poor and non-poor households. The total amount of monthly per capita expenditures of poor households is nearly twice lower than of non-poor ones. Expenditures of non poor households were higher than average monthly per capita income (Table 2.2). Table 2.2. Income and Expenditure Indicators of Poor and Non-poor Households in Khorezm Region Average Monthly per Average Monthly per Capita Capita Income, 000’s sum Expenditures, 000’s sum Total 96.45 97.30 Poor 70.57 69.32 Non-poor 133.90 137.79 Source: Household survey, July 2010 119. The most significant income source is that received from hired employment in the agricultural sector (47% of household income) with 78% of the total households receiving this type of income. Income from entrepreneurial activities is contributing less than about 19% in total household income. About 8% of the average household income is generated from the remittances, with more poor households depending on this type of income, compared to non- poor ones. Another relatively large source of income is old-age pensions contributing about 13%. About one third of the total households surveyed are eligible for this type of income.

IKS GROUP OF COMPANIES 36 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Mahalla-provided social benefits for low-income families do not contribute significantly to household income (less than 1% of total households’ income). Table 2.3. Average Weighted Structure of Income of Poor and Non-poor Households in Khorezm region Percentage of Contribution Average Total Households to Total Income, 000’s Receiving such Household sum Income, % Income, % Income from Marketing Own Agricultural Products 8.60 5.00 1.68 Income from Non-agricultural Entrepreneurial Activities 100.48 32.00 19.62 Income from Hired Employment in the Non-agricultural Sector 21.60 8.00 4.20 Income from Hired Employment in the Agricultural Sector 245.10 78.00 47.85 Old-Age Pensions 66.75 32.00 13.03 Disability Pensions and Benefits 20.22 16.00 3.95 Social Benefits for Low-income Families 3.42 6.00 0.67 Social Benefits for Families with Children Aged 2-18 2.27 6.00 0.44 Social Benefits for Families with Children Aged under 2 2.95 4.00 0.58 Other Social Security Benefits 0.30 1.00 0.06 Remittances sent from abroad 39.50 16.00 7.72 Other Income 1.00 1.00 0.20 Source: Household survey, July 2010 120. The structure of income is different in poor families compared with non-poor ones. Taking into consideration the fact that agricultural employment plays a significant role among the households surveyed, it is not surprising that about 60% of respondents reported seasonal fluctuations in incomes (Table 4.3). The incomes of 80% of poor households surveyed increased in summertime, probably because of increased temporary employment opportunities and some additional in-kind income generated through the harvesting fruits and vegetable. Seasonal fluctuations of income are more frequent in poor families compared to non poor (80 and 50% respectively).

Table 2.4. Seasonal Fluctuations in Income of Poor and Non-Poor Households in Khorezm Region (%) Income Is Higher Income Is Higher in Income Does Not Change in Summer Winter During the Year Total 58.00 31.00 11.00 Poor 50.00 36.00 14.00 Non-poor 66.00 26.00 8.00 Source: Household survey, 2010

121. The difference in household expenditures per capita between poor and non-poor families is around 50% (77,570 and 133,900 sum per capita respectively). The breakdown of

IKS GROUP OF COMPANIES 37 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT household expenditure by poor and non-poor families does not show significant differences, except perhaps the share of expenditures for education, healthcare, and transport. 15% of the expenditures of non-poor households were on transport, while in poor household it was 8.8%. On average, non-poor households spend at least twice more on transport than poor ones. Concerning the expenses for healthcare and education, these have a bigger share in the total household expenditures of poor households in comparison with non-poor families. 122. In general, poor households spend less on key items of household expenditure, such as buying clothes and footwear, communal services payments than non-poor households. In June 2010, 90% of the poor and 88% of non-poor households spent money for transport.

Table 2.5. Average Weighted Structure of Expenditures of the Poor and Non- Poor Households in Khorezm region.

Average Total Percentage of Percentage in Expenditures, Households Having Total 000’s sum such Expenditures Expenditures Foodstuffs 96 100.00 48.23 Clothes & Footwear 57.83 93.00 11.19 House maintenance and utilities 35.20 100.00 6.81 Payment for Education 1.42 4.00 0.28 Payment for Healthcare 25.76 80.00 4.99 Expenditures for Transport (including fuel) 63.00 89.00 12.19 Expenditures for Durable goods (such as furniture) 28.18 46.00 5.45 Savings 38.46 87.00 7.44 Other expenditures 17.62 41.00 3.41 Source: Household survey, July 2010 123. The survey showed that family size and structure appear to influence total household income. Large households are more likely to become poor. However, the composition of poor and non-poor is slightly different with the higher number of Family members under 16 in poor families if compared to non-poor (26.11 and 21.65% respectively). On the other hand, no correlation was identified between the level of income earned and gender.

Table 2.6. Demographic Characteristics of Poverty in Khorezm region Average Family Family Family Family Members Family Size, Members Members Members in Receiving Old- Persons under 7 under Pension age or Disability Years of Age, 16 Years of Age, % Pensions, % % Age, % Total 5.31 9.79 24.29 7.72 9.79 Poor 6.28 13.05 26.11 5.73 7.96 Non-poor 4.34 5.06 21.65 10.13 12.44 Source: Household survey, July 2010

IKS GROUP OF COMPANIES 38 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

124. There is a link between poverty and the educational levels attained both by the head of household and other household members. In poor families, the number of households’ heads with incomplete secondary education is more than 4 times higher than in non-poor households. The number of the students among the household members in poor families is 1 % compared to no students in surveyed non-poor families. 46% of the households’ heads of non-poor families have completed higher education, and that indicator is about three times higher than in poor households. The same tendency is observable for the households’ members. At the same time, the number of the households’ heads with completed secondary vocational education is higher among the poor families.

Table 2.7. Education Indicators for Household Members in Khorezm region % Household Total Poor Non-poor No Education 0.00 0.00 0.00 Incomplete Secondary Education (7-9 Forms) 2.00 2.00 0.00 Complete Secondary Education (10-11 Forms) 10.00 16.00 4.00 Secondary Vocational Educations 58.00 68.00 48.00 Higher Education 30.00 14.00 46.00 Students 0.00 0.00 0.00 Source: Household survey, July 2010 125. The economic activity level in Khorezm region is equal to 77% (Table 4.8). The economically inactive segment is composed of a rather small segment of students (3%) pensioner and people with disabilities (6%) and a relatively large share of the people that neither work nor look for job (15.8%). The unemployment rate that was registered in the households surveyed is 10.9%. Among those who are employed, State sector workers are the largest group, representing more than one third of all employed (36%). More than 16% of the employed are entrepreneurs. Only about 0.3% of the employed population constitute people with temporary jobs and seasonal workers. 126. There is a difference between poor and non-poor households in terms of economic activity and employment levels. The rate of unemployment in poor households is twice higher than in non-poor households. Interestingly, virtually no families have members working in temporary and seasonal jobs. At the same time, the share of members of the household who neither work or looking or a job in non-poor families is about 40% lower lower than in poor households. 127. The link between poverty and the employment status of the heads of household is correlated. The risk of household poverty increases where the head is unemployed, or where the household head engaged in temporary or seasonal employment, or in unregistered small business activities. In households where the head of household employed in the State-budget- funded sector, the risk of poverty is slightly lower.

IKS GROUP OF COMPANIES 39 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 2.8. Economic Activity and Employment Indicators of Household Members in Khorezm region % of Employable-age Household Members Total Poor Non-poor Economically Active 77.64 75.12 81.15 Hired in Non-Agricultural Sector 46.22 41.45 52.89 Entrepreneurs 16.31 14.50 18.84 Agricultural Workers 4.22 5.69 2.17 Unemployed 10.87 13.47 7.24 Economically Inactive 22.35 24.87 18.84 Source: Household survey, July 2010

B. Transport and Roads

128. The total length of the International automobile roads in Khorezm region is 113 km. There are 1,257 km of the regional roads, and 895 km of national roads. The major share of the freight flow belongs to the Urgench-Tashkent road. There are three bridges serving transport flow between Khorezm region and Karakalpakstan. Traffic flow, for instance, through Chalish floating bridge is 3-4 thousands vehicles, on a daily basis. 129. The household survey revealed that the majority of respondents use public transport and private cars (65% of the surveyed) in order to get to their workplaces every day. About 70% of the respondents indicated that they use buses, taxis and private car to reach hospitals at least once a month. The average distance which is covered by the respondents to reach hospitals is about 8 km. 130. Majority of the households visiting markets on a weekly basis cover on average 4.15 km, and spend an average of 677 sum (for the one way trip).

Table 2.9 Average spending by destinations by the members of household in Khorezm region (In %) Average time spent Average money Destination (one way - spent (each time minutes) one way - sum) School 10.77 666.66 College 11.00 485.00 Polyclinics 11.89 715.66 Hospital 13.27 763.80 Market 10.85 677.94 Source: Household survey, July 2010 131. Household survey results revealed that there are observable seasonal fluctuations in the use of transport. 70% of respondents commented that in summer, transport use increases. 66% of surveyed respondents noted that during the winter the transportation time increases, due to the worsening conditions of the roads and less number of the transport means on the routes.

IKS GROUP OF COMPANIES 40 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 2.10. Seasonal fluctuations in transport use by household members in Khorezm region (In%) Khorezm region Increases in Increases in Doesn’t summer winter change Transport use 70.00 25.00 5.00 Time spent on road 2.00 66.00 32.00 Money spent on 13.00 47.00 40.00 transport Source: Household survey, July 2010 132. During the household survey, respondents were asked to identify three major problems related to the roads and transport services. The most critical problems for the surveyed households were quality of the existing roads (31.33%) limited gas stations and limited supply of the gasoline (30.33%). It needs to be mentioned in this report that during the period of the household survey, there were problems with the supply of the gasoline in the Khorezm region, and this fact probably had an impact for the respondents’ decision. The next problem that been identified by the household members as important to address was safety of the public transport means (23.66%). 133. Structured interviews supported findings of the household survey, where many participants expressed their views regarding the quality of existing roads, and particular concerns expressed with regards to the existing bridges and their safety.

Construction and reconstruction of A-380 is very important for our region, as it will potentially increase incoming tourists flow to Khorezm. But, this potential will work only if the problem with the bridges will be solved. Today, two out of three bridges are in very bad conditions, because of the high level of the water in Amudarya, two floating bridges were not functioning most of time. The construction of the new bridge is somehow not moving ahead. Structured Interviews participant

IKS GROUP OF COMPANIES 41 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

IV RESULTS OF SOCIOECONOMIC AND GENDER ANALYSIS IN GAZLY TOWN, BUKHARA REGION

A. Brief Description

134. The Bukhara region is located in the mid-west of the central part of Uzbekistan. It borders with Navoi region in the north and the east, the Kashkadarya region in the southeast, Turkmenistan in the south and Khorezm region and Karakalpakistan in the west. The total area of the region is 40.32 thousand sq. km, and 1.5 million populations. Bukhara city is the administrative centre of the region. There are 11 districts in the region: Bukhara, Vobkent, Djondor, Kogon, Olot, Peshku, Romitan, Shofirkon, Karakul, Karaulbazar and Gijduvon.The regions main cities are Kogon, Gijduvon, Korakul, Vobkent, Shofirkon, and Romitan. About 70% of the population lives in the countryside and 30% live in cities. 135. Bukhara is very rich in natural resources. A large part of Uzbekistan’s hydro carbonic resources are found in this region. Dozens of large oil and gas fields have been discovered; today some of them are already in operation. “Gazly” is the well-known gas field. Large deposits of gold, silver, tungsten, iron, molybdenum, granite, and color sand, marble are concentrated in the region. 136. During the PSA survey in July-August 2010, the project affected areas were defined as the administrative centre of Romitan district, Gazly town and Bukhara city as transport centre of the region. 137. Officially established in 1956 Gazly town is one of the towns of Romitan district. The total area is 320 ha. The distance from Gazly town to “Bukhoro” auto station is 100 km; to the railway station is 120 km and to Bukhara Airport is 112 km. There are two Mahkalla Assembly of Citizens “Gazly” and “Baynalminal” which were established in 1997. Population in Gazly makhallya is 3,335 (56%), and in Baynalminal – 3,109 (44%). The population of Gazly town is 6,444. 138. Industry constitutes one of the main parts of the economy of Gazly. More than 750 peasants and workers are employed in industry. It composes 11.6% of district population. There is one big industrial corporation in town which produces goods amounted for 33,817.8 million sum in 2009. In 2009 consumer goods were produced for 33.1 million sum. 100% of consumer goods were carried out by private sector. Gas industry composes the leading part in the Gazly district.

Table 3.1. Administrative Information about Romitan district and Gazly town Number of as % of Number of Area, Number Number Cities, Total Rural Thousand of of Towns and Province Population km2 RAC’s Mahallas Urban-type Area Localities Settlements Romitan 1,300 100 6 38 2 151 district* Gazly town** n/a 0 2 0 0 Source: * Romitan district Hokimiyat Department of Statistics as of 1 January 2010 **Gazly town Hokimiyat as of 1 January 2010

IKS GROUP OF COMPANIES 42 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

139. As of 1 January 2010, the population of Romitan district was 114,606, 6% of which lived in Gazly town. (Table 3.2).

Table 3.2 Populations of Romitan district and and Gazly town Population Population Number of Number of as % of Growth, Population Including: Households Mahallas District per 1,000 000’s 000’s Population Population Urban Rural Romitan 93.79 114.606 20.815 NA 984 100 17.1 district 1 Gazly 6.9 6.9 0 1.495 2 6 town Source: *Romitan district Hokimiyat Department of Statistics and Mahalla Committee as of 1 January 2010

140. According to the data provided by Gazly town Hokimiyat suggests that 51.25% of the population are women. The statistical data from Romitan district Hokimiyat showed decreasing population trend, which is generated by a high rate of internal out-going migration - 653 people for each 1000 of population leaving the district versus 410 in-coming people. A relatively low population growth rate in Gazly town of 1.71%, is generated by a high birth rate (about 21.4 births per 1,000 people) and a comparatively low mortality rate (3.3 deaths per 1,000 people). Table 3.3 Population of Gazly town by Mahallas Populati Percentage Percentage Number of Mahalla on of Women of Men Households 1. Gazly MAC 3535 51 49 837 Baynalminal 2. 3365 51.5 48.5 658 MAC Sources: Gazly Town Hokimiyat, Mahalla committees

Map 4. Map of Gazly town (See Annex III)

141. According to statistical data, as of 1 January 2010, 58% of the population of Gazly town was of employable age (16-60 for men and 16-55 for women), of whom 52% were women. 35% of the population are youth under employable age, and 10% are elderly people. 142. Of the employable age population, 83% were employed, according to the Hokimiyat of Romitan district. There were 260 people officially regisred as seeking jobs, out of which 246 were provided with the job placement. The majority of the people, who was registerd with Employment assistance offices, are men. Only 22% of those who registered as seeking for employment are women. Table 3.4. Employment Indicators in Romitan District and Gazly town, January 2010. Gazly town Men % Women % Employable-Age Population 4008 1912 48 2096 52 Employed 3342 1646 49 1696 50 Officially registered People 260 202 11 58 3 seeking for Employment Number of People provided 246 189 57 with the Job Number of people receiving 21 1 unemployment subsidies

IKS GROUP OF COMPANIES 43 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Source: City Department of economy

143. According to official statistics, the average monthly wages of Romitan District population is 81,309 sum per month. B. Social Infrastructure

1. Education

144. Gazly town has 2 general schools with over 900 enrolled students and 83 teachers. There are 5 kindergartens with 420 children and 127 teachers. There are no colleges nor academic lyceums, as well as no branches of Higher Education Institutions. (Table 3.5). Table 3.5. Educational Establishments in Gazly town Number of Number of Number of Destination Establishments Children personnel Kindergartens 5 420 127 Schools 2 900 83 Academic Lyceums - - - Higher Educational Institutes - - - Source: Gazly town hokimiyat, 145. During the household survey and structured interviews with Mahalla representatives many respondents indicated that the absence of the secondary special and professional institution in the town resulted in a fall in the number of children who continue the education in colleges and lyceums. 2. Healthcare

146. Gazly town has one inpatient hospital able to accommodate 40 patients. In addition, there is also one outpatient Polyclinic with the ability to serve 100 adults and children a day. There are few private pharmacies in the town. In case of serious diseases, people travel to the central regional hospital or specialised hospitals in Bukhara. 3. Communal Services

147. 100% of households in Gazly are supplied with electricity and natural gas. However only 43% of the household (on average) are connected to the centralized water supply, with 50% of those beign apartments and 42% in detached houses. There is difference in the access to the centralized water supply system between poor and non-poor households as well (40% and 45% respectively).

Table 3.6. Coverage of Households with Municipal Services in Gazly town (%) Access to Access to Access to Category centralized water electricity natural gas supply Poor 40 100 100 Non-poor 45 100 100 House 42 100 100 Apt. 50 100 100 Average 43 100 100 Source: Household survey, February 2010

IKS GROUP OF COMPANIES 44 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

C. Poverty Profile, Incomes and Employment of the Population

148. Identification of poor households. A unified methodology for estimating a national poverty line has not yet been adopted in Uzbekistan. However, from 2003 to 2007 the Government of Uzbekistan, in coordination with international organizations, carried out an in- depth study of poverty issues in order to lay the foundation for the National Welfare Improvement Strategy / Poverty Reduction Strategy Paper (WIS – Country PRSP analogue). The WIS document was approved by the Government in 2007. 149. In 20056 taking the Household Budget Survey conducted by the Goskomstat of the Republic of Uzbekistan as a basis, the World Bank defined the poverty rate in Uzbekistan as 25.8%7. This document defines the poverty line as $2.15 USD (3,440 Sum) per capita per day. 150. For the Poverty and Social Analysis study a methodology has been employed which closely follows the World Bank’s methodology and is largely based on food consumption indicators to identify poverty rates in the sub-project area. This measurement was also adopted as a core methodology for preparing the WIS/PRSP for Uzbekistan. In the WIS/PRSP, the poverty line was determined as the average per capita per day food consumption of less than 2,100 kcal. When measuring actual food consumption, outdoor food intake was also included such as meals at public catering establishments, when visiting friends or relatives, etc.

Table 3.7. Income and Expenditure Indicators of Poor and Non-poor Households in Gazly town Average Monthly per Capita Average Monthly per Capita Category Income, 000’s sum Expenditures, 000’s sum Total 118.45 67.80 Poor 77.13 44.79 Non-poor 153.28 87.20 Source: Household survey, 2010 151. According to the official statistics provided, average monthly salaries constitute 118,450 sum in Romitan district. The average monthly per capita income of poor households was 77,130 sum, which is less than half that of non-poor households (153,280 sum). The similar tendency is observed with average monthly expenditures. 152. The average monthly income from all types of activities in June 2010 was around 517,000 sum per household. The most significant income source is that received from hired employment in the non-agricultural sector (82% of household income) with 90% of the total number of surveyed households receiving this type of income. Income from entrepreneurial activities contributes less than 1% of total household income. Another, relatively large, source of income is old-age pensions contributing about 8% of total household income. According to the household survey results, 23.3% of the families have received such income. 153. Mahalla-provided social benefits for low-income families do not contribute significantly to household income (0.36% of all households’ income, and 1.23% of poor households’ income). Other social benefits, such as Disability Pensions and Benefits, Social Benefits for Families

6 Last poverty data available is dated 2005 7 Welfare Improving Strategy of Uzbekistan: Full PRSP document for 2008-2010

IKS GROUP OF COMPANIES 45 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT with Children Aged 2-18, are not bringing considerable contribution in total household income (4% of total income alltogether). None of the households surveyed indicated that they have received over the last month any Social Benefits for Families with Children Aged under 2 (Table 3.8). Table 3.8. Average Weighted Structure of Income of Poor and Non-poor Households in Gazly town. Average Percentage of Contributio Total Households n to Total Income, Receiving such Household 000’s sum Income, % Income, % Income from Marketing Own Agricultural Products 9.00 13.33 1.7669 Income from Non-agricultural Entrepreneurial Activities 5.00 3.33 0.9816 Income from Hired Employment in the Non-agricultural Sector 418.00 90.00 82.0626 Income from Hired Employment in the Agricultural Sector 0.00 0.00 0.0000 Old-Age Pensions 41.50 23.33 8.1473 Disability Pensions and Benefits 10.66 6.66 2.0941 Social Benefits for Low-income Families 1.86 3.33 0.3664 Social Benefits for Families with Children Aged 2-18 3.33 3.33 0.6544 Social Benefits for Families with Children Aged under 2 0.00 0.00 0.0000 Other Social Security Benefits 6.66 3.33 1.3088 Remittances sent from abroad 3.33 3.33 0.6544 Other Income 10.00 3.33 1.9632 Source: Household survey, June 2010 154. In general, any income type in poor families, when compared with those in non-poor ones, is about 50% less. The structure of income is different in poor families compared with non-poor ones: salaries play a less significant role in income generation, but social transfers are relatively more important. 155. Despite the fact that agricultural employment is not significant among the households surveyed, 60% respondents report seasonal fluctuations in incomes (Table 2.9). The incomes of 80% of poor households surveyed increased in summertime, probably because of increased temporary employment opportunities and some additional in-kind income generated through the harvesting fruits and vegetable. Seasonal fluctuations of income are more frequently seen in poor families, compared to non-poor ones (80 and 50% respectively). No single household indicated that the income earned increases during the wintertime.

IKS GROUP OF COMPANIES 46 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 3.9. Seasonal Fluctuations in Income of Poor and Non- Poor Households (%)

Income Is Income Is Income Does Not Category Higher in Higher in Change During Summer Winter the Year Total 60.00 0.00 40.00 Poor 80.00 0.00 20.00 Non-poor 50.00 0.00 50.00 Source: Household survey, 2010 156. The difference in per capita household expenditures between poor and non-poor families is around 50% (44,790 sum and 87,200 sum per capita, respectively). The breakdown of household expenditure by poor and non-poor families does not show significant differences, except for the share of expenditures for education, healthcare, and transport. Expenditures for durables goodsare made by 13% of the total expenditures of the non-poor families, while poor households inidcated no such purchases. 10% of both poor and non-poor households were able to make savings in June 2010. Poor households on average saved 1,500 sum, and non- poor households 30,000 sum. 157. In general, poor households spend less on certain key items of household expenditure, such as clothes, footwear and communal services payments than non-poor households. At the same time, analysis of the household survey results in Gazly showed that poor households spend more on foodstuff than non-poor households (160.5 sum and 131.5 thousand sum, respectively). This difference can be justified by the larger number of household members in the poor families (Table 2.13). In June 2010, only around 30% of non- poor households spent money for transport, with no such expenses made by poor households.

Table 3.10. Average Weighted Structure of Expenditures of the Poor and Non- Poor Households Percentage of Average Total Percentage in Households Expenditures, Total Having such 000’s sum Expenditures Expenditures Foodstuffs 141.16 100.0 48.4 Clothes & Footwear 46.00 76.6 15.8 House maintenance and utilities 17.46 63.3 5.9 Payment for Education 6.00 6.6 2.1 Payment for Healthcare 10.66 23.3 3.6 Expenditures for Transport (including fuel) 4.66 20.0 1.6 Expenditures for Durable goods (such as furniture) 26.66 3.3 9.1 Savings 20.50 10.0 7.0 Other expenditures 18.43 30.0 6.3 Source: Household survey, July 2010 158. The survey showed that family size and structure appear to influence total household income. Large households are more likely to become poor. However, the composition of poor

IKS GROUP OF COMPANIES 47 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT and non-poor is slightly different. Difference is noticeable particularly in the segments family members under 16 in poor families if compare to non-poor (29% and 20% respectively) and family members in pension age (6.8% and 17%, respectively). Table 3.11. Demographic Characteristics of Poverty in Gazly town Average Family Family Family Family Members Family Size, Members Members Members in Receiving Old- Persons under under Pension age or Disability 7 Years of 16 Years of Age, % Pensions, % Age, % Age, % Gazly town 4.30 7.75 24.03 12.40 11.62 Poor 5.90 11.86 28.81 6.77 10.16 Non-poor 3.50 4.28 20.00 17.14 12.85 Source: Household survey, June 2010 159. There is a link between poverty and the educational levels attained both by the head of household and other household members. In poor families, the number of households’ heads with incomplete secondary education is twice higher than in non-poor households. The number of the students among household members in non-poor families is 3.6% compared to no students in surveyed poor families. 60% of the household heads of non-poor families have completed secondary vocational education. This indicator is 1.5 times smaller in poor households. Interestingly poor households have a higher number of household heads with higher education (30% and 15% respectively) (Table 3.12).

Table 3.12. Education Indicators for Household Members in Gazly town. Household Heads, % Total Poor Non-poor No Education 0.00 0.00 0.00 Incomplete Secondary Education (7-9 6.66 10.00 5.00 Forms) Complete Secondary Education (10-11 20.00 20.00 20.00 Forms) Secondary Vocational Educations 53.33 40.00 60.00 Higher Education 20.00 30.00 15.00 Source: Household survey, June 2010 160. Economic activity level in Gazly town is equal to 78.9% (Table 2.13). Economically inactive segment (21%) composed of a rather small segment of students (2.6%), pensioner and people with disabilities (3.3%) and a relatively large share of people that neither work nor look for job (15.8%). 161. The unemployment rate that was registered in the households surveyed is 9.21%. Among those who are employed, State sector workers are the largest group, representing more than half of all the employed (58%). Only 2.6% of the employed are entrepreneurs, with self-employed licensed entrepreneurs and non-registered entrepreneurs dominating this group. Only about 1.3% of the employed population consist of the people with temporary jobs and seasonal workers. 162. There is a difference between poor and non-poor households in terms of economic activity and employment levels. In non-poor households, 62.5% of people are employed at state-budget-funded jobs compared to 50% of poor households. The unemployment rate in

IKS GROUP OF COMPANIES 48 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT poor households is 30% higher than in non-poor households. Interestingly, the number of members employed in temporary and seasonal jobs in non-poor families is 2%, as opposed to no participation by poor households. At the same time, the share of members of the household who neither work nor are looking for a job in non-poor families is about five times lower than in poor households. 163. There is a correlation between poverty and the employment status of the heads of household. The risk of household poverty increases where the head is unemployed, or where the household head is engaged in temporary or seasonal employment, or in unregistered small business activities. In households, where the head of household is employed in the State-budget-funded sector, the risk of poverty is slightly lower.

Table 3.13. Economic Activity and Employment Indicators of Household Members in Gazly town. % of Employable-age Household Members Gazly City Total Poor Non-poor Economically Active 78.94 60.71 89.58 Hired in Non-Agricultural Sector 67.10 53.57 75.00 Entrepreneurs 2.63 0.00 4.16 Agricultural Workers 0.00 0.00 0.00 Unemployed 9.21 7.14 10.41 Economically Inactive 21.06 39.28 10.41 Source: Household survey, 2010

D. Transport and Roads

164. The total length of the automobile roads in Bukhara region is 4,002 km. 496 km of International roads and 1,482 km of National roads (total 1978 km) are on the balance of “Bukhara-Navoiy” (State company in charge for International and National roads); 1,097 km of regional roads and 927 km of local roads (total 2024 km) are on the balance of “Bukhoroavtoyul” state company. Table 3.14 The length and classification of the roads in Bukhara region. Road class Length (km) 1 International roads 496 2 National roads 1482 3 Regional roads 1097 4 Local roads 927 Source: “Bukhoroavtoyul” State Company, 2010 165. Most of respondents of the household survey preferred to use public transport, such as buses and minibuses to reach major destinations. The survey demonstrated that most household members are using public transport to reach colleges and offices/workplaces. This can be explained by the fact that the town is relatively small and there no secondary-special and professional education institutions in Gazly. Thus most of the children are using public pransport to cover the long distances to reach their destination. 166. One characteristic of Gazly is that the State companies, which employ a very large share of the town labour force, provide their employees with transportation services free of charge to get to and from work. Only 4% of surveyed households have used private vehicles in order to get to the offices/workplaces. The majority of households indicated that their

IKS GROUP OF COMPANIES 49 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT members mostly walk to all major destinations. Other alternatives such as using bicycle, motor bikes and animals/carts are seen as the least popular options. 167. The average distance covered by college students to reach their educational institutions is about 54 km (one way). Because of this distance, most students travel to college on a weekly basis, leaving their households on early morning on Monday and coming back on Saturday afternoon. Students in average spend 85 minutes on the road. A one way trip costs on average 2,833 sum. The other destinations are located within walking distance.

Table 3.15 Average spendings by destinations by the members of household in Gazly town (%). Average time Average money Destination spent (one way spent (each time - minutes) one way - sum) School 16 0 College 85 2833 Polyclinics 15 0 Hospital 15 0 Market 17 0 168. Household survey results revealed that there is no visible seasonal flactations in the use of transport. Only 37% of respondents commented that during winter the transportation time increases. The overwhelming majority of households (96%) expressed that in their opinion there are no seasonal changes of transpoprtation costs during the year. Transport charges increase depending on the increase of the gasoline costs, as well as two-three times a year with the increases of the minimal salary level. Table 3.16. Seasonal fluctuations in transport use by household members in Gazly town (%) Increases Increases Doesn’t in summer in winter change Transport use 20 - 80 Time spent on road - 37 63 Money spent on 3-97 transport 169. During the household survey, respondents were asked to identify three major problems related to the roads and transport services. The most important problems for the surveyed households were limited gas stations and limited supply of the gasoline, and the quality of existing roads. It is worth mentioning that during the household survey, there were problems with the supply of the gasoline in the region, and this fact probably had an impact for the respondents’ decision. Other issues identified by the household members were limited number of road signs, and safety & security of public transport. Each of these issues was raised by 14% of the respondents. 170. Structured interviews supported findings of the household survey, and many of the participants expressed their concerns regarding the lack of the road signs, safety and security of the public transport and lack of the bus and taxi stops.

IKS GROUP OF COMPANIES 50 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

We are attending college on the daily basis and spending about 45 minutes on the road. However, the biggest problem is the lack of the conventional bus/taxy stops. Minibus drivers can stop wherever they want, and passengers never know where they can be picked up. Therefore, we just stay on the roadside and wait. This creates not only inconvenience for the passengers, but it is also not safe. Structured Interview participant

E. Ethnic Groups

171. According to official statistics, Romitan district population is comprised of 98% of Uzbeks, 0.8% of Slavic nations, 6% of Kazakhs and 9.3% of Tajiks. Data from the household survey on the ethnic composition of the sub-project area population are slightly different from the data obtained from official statistics. According to the former, 26.6% of families surveyed are Uzbek, 66.63% are Kazakh, 3.33% are Kyrghyz and another 3.34% are Slavic nations (not only Russians, but also Ukrainians, Belorussians etc.). 172. The discrepancy between data can be explained by mahallass dealing with personal data contained in citizens’ passports, whereas the household survey respondents were able to communicate the ethnicity to which they feel they belong. The difference between ethnic self- identity and passport personal data is particularly relevant for Tajik households, who often identify themselves as Uzbek. We should also note that the ethnic composition of Gazly town, where the survey was carried out, due to the small number of population in comparison to other settlements in Romitan district, might fail to reflect the overall district figure in Romitan. 173. According to the household survey, the poverty rate and other poverty indicators suggest a noteable difference between ethnic groups. The lowest poverty rate is among Kazakh households as these families have a smaller percent of children under 16 and a smaller average household size. The highest level of poverty is among other enthnicities (Slavic). As to other socio-demographic indicators, the Uzbek group can be spotlighted in the sample; they are significantly different from other ethnic groups in terms of a number of parameters such as family size and composition, education levels, and employment etc. This correlates well with a number of other studies (Table 3.17). Table 3.17. Profile of Household Heads by Ethnic Origin in Gazly town as % of sample size Other CA Other Uzbek Kazakh Ethnicities Ethnicities Poverty Rate 10 6 - 17 Family Size 5 4 6 HH Heads who Have Secondary 50 60 100 100 Vocational Education Heads of Family who Have Higher 38 15 - - Education Heads of Family who Are Entrepreneurs 13 - - - Unemployed Heads of Family - 5.00 5.00 100 Source: Household Survey, July 2010

F. Gender Analysis

174. According to the official statistics provided by Romitan district and Gazly town Khokimyats the total number of females in Gazly town is approximately 3,280 (51.25% of the total population). According to the survey results, the percentage of female-headed households is 26.6 %. 175. Differences in income and rate of poverty between female-headed households and male-headed households are noticeable with the higher poverty rate among the male-headed

IKS GROUP OF COMPANIES 51 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT households (25% and 36.36% percents respectively). Average per capita income for female and male headed households are respectively equal to 126,760 sum and 116,350 sum. A female-headed household is smaller, but they have more children under 16 – 27% for female headed households compared to 23% of male headed households.

Table 3.18. Differences between the female and male headed households in Gazly town Women Men Share of households with 0.00 4.54 unemployed household heads Share of the households with 12.50 0.00 entrepreneur household heads Share of households with household 12.50 22.72 heads with higher education Share of children under 16 26.92 23.30 Household size 3.25 4.68 Average monthly income (000’s sum) 126.76 116.35 Poverty rate 25.00 36.36 Source: Household Survey, July 2010 176. The percentage of the Household’s head with higher education of female heads of households is lower compared to the ones where household heads are male. A similar situation is for secondary and vocational education. The share of entrepreneurs (mostly unregistered) among working female household heads, is about 12.5% (Table 3.19). Table 3.19. Profiles of Households Headed by Women and by Men in Gazly town. Women Men Poverty Rate, % 25.00 36.36 Average Per Capita Monthly Income, 000’s sum 126.76 116.35 Household Size, Persons 3.25 4.68 Children Under 16 years of Age, % 26.92 23.30 Heads of Households who Have Secondary Vocational Education, 87.50 77.27 % Heads of Households who have Higher Education, % 12.50 22.72 Unemployed Heads of Households of Employable Age and Older, 37.50 22.72 % Source: Household Survey, 2010 177. Gender differences exist not only between household heads, but also between gender groups in general. These differences are mainly in education and employment indicators. Education levels of women are lower compared with those of men at a higher educational levels; which gives a considerable advantage in the labour market and hence affects women employability. One of the positive tendencies identified during the household survey is that 22.2% of women continuing their education (Table 3.20).

IKS GROUP OF COMPANIES 52 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 3.20 Education Indicators for Women and Men Above 18 Years of Age in Gazly town. as % of gender groups above 18 years of age Women Men No education 4.16 1.75 Incomplete basic education 9.72 8.77 Basi education 8.33 17.54 Vocational education 37.50 45.61 Higher education 4.16 8.77 Continuing education 22.22 12.28 Source: Household Survey, 2010 178. The level of economic activity among women of employable age is low not only when compared with men (69%), but also when compared with women who are heads of households. 49% of women and 69% of men of employable age in the sub-project area, are employed in state-budget-funded sector. 77% of men and 54% of women are hired in the non- agricultural sectors. Among women, the share of entrepreneurs is about the same as that of men, although women are less likely to register their business compared with men (Table 3.21). Table 3.21. Employment Status of Employable-Aged Respondents by Gender in Gazly town. as % of employable-age gender groups Women Men Economic Activity Rate 68.57 87.17 Unemployed (including Officially Registered) 11.42 7.69 Hired Employment in Non-agricultural Sectors 54.28 76.92 Employment in Agricultural Sector 0.00 0.00 Entrepreneurs 2.85 2.56 Source: Household Survey, 2010 179. Cultural factors also seem to contribute to the low levels of women’s employment. Women with young children appear to have less employment opportunities and, according to World Bank estimates, in Uzbekistan, each child under 5 years that a woman has, decreases her chances of being employed by 7%8. 180. Judging by the results of the household survey, both female and male-headed households have similar living conditions. Both types of households live in the same types of accommodation, and have similar access to piped water and sewerage systems. Conditions of amenity rooms (kitchen, bathroom and toilet) are also on the same level. In other words, all households, regardless of the gender of the household head, have to deal with the same problems, related to the quality of communal services.

8 Living Standards Assessment (LSA), World Bank, 2003.

IKS GROUP OF COMPANIES 53 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 3.22. Gender composition of transport use by household members in Gazly town (%) Users Gazly town All members of the hosehold use equally 56.66 Men use more often than women 20.00 Women use more often than men 20.00 Children (all under 16) use more often 0.00 Women and children use more often 0.00 Men and children use more often 3.33 Source: Household Survey, 2010 181. Analysis of the household servey results did not indicate any explicit tendencies in gender composition of transport use in Gazly town. However, as it was noted during structured interviews and in-depth interviews the lack of the bus-stops, necessary facilities along the road, such as toilets,water taps, and lighting are significantly affecting women and children. No data available on road accident with gender segregated. G. Consultations and Participation

182. During the survey, households demonstrated a high interest in the proposed road rehabilitation and construction project of the International road A-380. 40% of the respondents believed that improvements of the road would improve their access to consumable goods. About one third of the households surveyed believe that rehabilitation and construction of the A-380 International road will create new business opportunities and 17% trust that it will further increase marketing of local agricultural products. At the same time 47% do not believe that this project will create new opportunities nor improve their access to social infrastructure facilities (Table 3.23). Table 3.23. Share of households who believe that the construction of new road will create new opportunities in Gazly town (In %) Yes No Do not know Create new business opportunities 33.33 46.66 20.00 Expand opportunities for the marketing 16.66 46.66 36.66 own agricultural product Improve access to healthcare facilities 23.33 46.66 30.00 Improve access to Education 3.33 46.66 50.00 Improve access to consumable goods 40.00 46.66 13.33 Source: Household Survey, 2010

If reconstruction of the new road will be done without considerable renovation of the local and regional roads, there is no much use for the local population. In order to get to the new road we will still need to use the old local roads, which are in very bad shape. These works should be done in parallel. Mahalla representative

183. It is important to note that the remaining respondents, who are sceptical about having new improved opportunities as a result of the sub-project, are not sceptical about the sub- project outcomes, rather about the capabilities of the Avtoyul company to ensure proper maintenance after the completion of large-scale works. 184. During the household survey, as well as during in-depth interviews with households, entrepreneurs and specialists emphasized that construction and rehabilitation of the

IKS GROUP OF COMPANIES 54 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

International Highway has to be accompanied by the construction and rehabilitation of local roads, which are providing access to the A-380. In addition, the population and specialists expressed a hope that during the construction works, particular attention will be paid to the quality of services to complete the work. Table 3.24 Opinion of Surveyed Households in Gazly town regarding priority directions for Investments in Road and Transport sector. Investments In % Rehabilitation of existing roads 18.88 Construction of new roads 16.66 Improvement of facilities of bus stations and bus stops for passengers 12.22 Increase the number of public transport means 10.00 Improvement of public transport coverage/betther routes 4.44 Improvement of road maintenance services 7.77 Improvement of road safety and security measures 8.88 Reduce Carbon emission 21.11 Source: Household Survey, 2010

185. During the household survey, respondents were offered an opportunity to rank in order of priority, the investments needs in the road infracture and transport in their areas (Table 2.24). According to respondents, the top three priorities should be: the reduction of carbon emission, rehabilitation of existing roads, and construction of new roads.

IKS GROUP OF COMPANIES 55 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

V. ROAD USERS SURVEY RESULTS

A. Road Users – Passengers

186. Access to basic communal services: The Road users (passengers) survey which was implemented in Turtkul, Ellikkala and Beruniy districts and in Bukhara city revealed that among passengers who uses A-380 road, an average of about 30% of the households have access to centralised water supply system, almost 100% surveyed passengers’ households are supplied with electricity and about 92% with natural gaz. There is considerable difference between households resided in the apartments and passengers who live in detached houses.

Table 4.1 Coverage of Households with Municipal Services. access to centralized access to access to water supply electricity natural gas Poor 51.61% 100.00% 90.32% Non-poor 23.93% 99.14% 92.30% House 24.40% 99.21% 90.55% Apt. 61.90% 100.00% 100.00% Total average 29.72% 99.32% 91.89% Source: Road Users (Passengers) Survey, July 2010

B. Poverty Profile, Incomes and Employment of the Passengers

187. According to the passenger’s survey, the average monthly per capita income of poor households was 80,420 sum, which is twice lower than that of non-poor households (162,600 sum). The same tendency was observed with average monthly expenditures (Table 4.2.). Table 4.2 Income and Expenditure Indicators of Passengers Surveyed in July 2010 Average Monthly per Average Monthly per Capita Income, Capita Expenditures, 000’s sum 000’s sum Total 142.14 118.07 Poor 80.42 70.87 Non-poor 162.68 106.29 Source: Road Users survey, 2010 188. The most significant income source in terms of contribution to family income and coverage is income received from hired employment in the non-agricultural sector (48% of household income) with about 80% of the total number of surveyed passengers receiving this type of income. Income from entrepreneurial activities contributes about 10% in total household income while 25% of surveyed passengers stated that their households receive this type of income. 189. Another relatively large source of income is old-age pensions and Mahalla-provided social benefits. Other social benefits, such as Disability Pensions and Benefits, Social Benefits for Families with Children Aged 2-18; Social Benefits for Families with Children Aged under 2 are not bringing considerable contribution to total household income. 190. Average total income in poor families is lower than in non-poor. In general, any income type in poor families, when compared with those in non-poor ones, is less by about 40 to 60%. The structure of income is different in poor families compared with non-poor ones: salaries

IKS GROUP OF COMPANIES 56 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT have less important role in income generation, but social transfers are relatively more important. Among non-poor families, the share of income from remittances is around 7% and about 13% of non-poor (better off) households depend on this kind of income. 191. Despite the fact that agricultural employment is not significant among the households surveyed, more than 50% of respondents report seasonal fluctuations in incomes (Table 3.14). The incomes of more than half of passengers from poor households surveyed increased in summertime, probably because of increased temporary employment opportunities and some additional in-kind income generated through the harvesting fruits and vegetable. Seasonal fluctuations of income are less frequently seen in non-poor households compare to poor ones (30% and 38%, respectively).

Table 4.3. Seasonal Fluctuations in Passengers Income % of all passengers surveyed Income Is Higher in Income Is Income Does Not Summer Higher in Winter Change During the Year Total 57.43 10.13 32.43 Poor 51.61 9.67 38.70 Non-poor 58.97 10.25 30.76 Source: Passengers survey, 2010

192. The analysis of the households’ expenditures of the passengers surveyed in July 2010, revealed that more than two-third of the households bear transport expenditures (in average 53,610 sum per month), with the higher number of the poor families having this type of expenditures compared to non-poor ones (87.09 and 73.5 percent respectively). The share of the transport costs in the total amount of households’ expenditures higher among non-poor families (10.5% non-poor compared to 8.8% of the poor households’ expenditures). 193. The survey showed that family size and structure appear to influence total household income, as well as expenditures’ structure. Large households are more likely to become poor. Passengers’ survey confirmed the general tendency, which was identified through ousehold survey in Sub-project areas, is: poor households usually have bigger number of the family members under 16 years. As it was mentioned during the interviews with passengers, there are no facilities that support travelling with children, for disabled people neither in transport means, nor along the roads and bus stops. Table 4.4. Demographic Characteristics of Passengers’ Households. Family Family Family Family Members Average Members Members Members in Receiving Old- Family Size, under under Pension age or Disability Persons 7 Years of 16 Years of Age, % Pensions, % Age, % Age, % Total average 4.95 9.27 21.28 8.59 9.41 Poor 5.90 16.93 30.60 4.91 6.55 Non-poor 4.70 6.72 18.18 9.81 10.36 Source: Passengers survey, July 2010

194. Most respondents of the passengers’ survey preferred use public transport, such as buses and minibuses to reach major destinations. The results of the survey demonstrated that most household members are using public transport to reach colleges and Higher Education Institutions and offices/workplaces. In total, more than 60% of the surveyed passengers use

IKS GROUP OF COMPANIES 57 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT transport (both public transport and private vehicles) to reach major destinations. Other alternatives such as bicycles, motor-bikes, and animal-carts are least popular among the passengers. 195. Colleges and Higher Education Institutions are usually situated at distant locations to the most of the passengers surveyed. The average distance which is covered by college students to reach their educational institutions is 20 km (one way). Because of the distance many of the students attending colleges and HEI on a weekly basis, leaving their households on early morning on Monday and coming back on Saturday afternoon. Students on average spend 30 minutes on the road, and one-way trip costs in average around 800 sum. 196. It is also need to be mentioned in this report that central hospitals and clinics located in district and regional centers and thus require from the households members to use either public transport or private cars to reach this destination. It takes in average about 15 minutes to reach hospital and policlinic. However, it should be also mentioned that waiting time can vary from one destination to another, and sometime increase the time on the road up to 2 times. Table 4.5. Seasonal fluctuations in transport use by passengers and members of their households (%) Increases in Increases in winter Doesn’t change summer Transport use 79.72 5.40 14.86 Time spent on road 2.02 82.43 15.54 Money spent on transport 3.37 21.62 75.00 Source: Passengers’ Survey, July 2010 197. Passengers’ survey results revealed that there are seasonal flactations in the use of transport. 80% of respondents commented that during the summer the use of transport increases, and 82% of respondents agree that time spent on the road increase in winter time, due to deterioration of the roads conditions. As a consequence there are more damage of transport. Two thirds of the surveyed passengers expressed their opinion that there are no seasonal changes of transportation costs during the year. Transport charges increase depends on the increase of the gasoline costs, as well as two-three times a year with the increases of the minimal salary level. Table 4.6. Issues related to existing state of road addressed by the passengers surveyed in July 2010. (%)

Issues * Quality of existing roads 30.18 Public transport limitations (limited number of routes / 17.56 limited number of transport means) Limited number of road signs 22.07 Safety and security of the public transport means 15.54 Limited gas stations/absence or limited supply of gasoline 14.63 Other 0.00 Source: Passengers’ Survey, July 2010 198. During the passengers’ survey, respondents were asked to identify three major problems related to the roads and transport services. The most imperious problems for the surveyed passengers were quality of the existing roads, lack of the road signs, and limitations of the public transportation services, such as limited number of routes and limited number of transport means. Structured interviews supported findings of the household survey, and many of the participants expressed their concerns regarding the lack of the road signs, safety and security of the public transport and lack of the bus and taxi stops.

IKS GROUP OF COMPANIES 58 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Our school located near the road, and there are no any signs of the existence of the school. School teachers are always have to take care of children crossing the road, and playing outside. Structured Interviews participant-Teacher of the local school.

Table 4.7. Gender composition of transport use by passengers and household members (In %) Users Passengers All members of the household use equally 21.62 Men use more often than women 53.37 Women use more often than men 2.02 Children (all under 16) use more often 1.35 Women and children use more often 0.00 Men and children use more often 21.62 Source: Passengers’ Survey, July 2010 199. Analysis of the passengers’ survey results indicated that 53 % of the passengers believe that men use transport more often than women; another 21% stated that men and children use transport more often. However, as it was noted during structured interviews and in-depth interviews lack of the bus-stops, necessary facilities along the road, such as toilets and water taps also affect decision of the women and children to travel. 200. The majority of the passengers surveyed stated they are using public transport and private cars to reach medical institutions, such as hospitals and polyclinics. 201. 85% of the surveyed passengers believe that improved road will create better opportunities for local business development and 72% stated that it will also expand possibilities for marketing own agricultural products. About 60% of the passengers using A- 380 road think that reconstructed road will ensure better acees of the generalto the healthcare system and educational institutions, especially secondary special and professional schools and Higher Education.

Table 4.8. Share of passengers who believe that the proposed project will create better opportunities for population. Opportunities In % New Business development opportunities 85.13 New opportunities to marketing own agricultural products 71.62 Better access to health-care institutions 58.10 Better access to education 60.13 Better access to consumable goods 75.00 Source: Passengers’ Survey, July 2010

202. While identifying priorities for investments in development road sector and transport, passengers expressed their opinions and identified as the first priority construction of the new roads with the second priority rehabilitation of the existing roads. Improvement of facilities of bus stations and bus stops for passengers is the third most commonly selected priority.

IKS GROUP OF COMPANIES 59 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.9. Priorities for investments for the Passengers. Investments In % Rehabilitation of existing roads 18.01 Construction of new roads 26.12 Improvement of facilities of bus stations 12.38 and bus stops for passengers Increase the number of public transport 9.23 means Improvement of public transport 9.00 coverage/betther routes Improvement of road maintenance services 8.33 Improvement of road safety and security 11.26 measures Reduce Carbon emission 5.63 Source: Passengers’ Survey, July 2010 C. Road Users –Drivers

203. Driving is considered a male job, which requires certain physical and extensive travelling. Data collected shows that all drivers were male. Their average experience, of the drivers surveyed is about 17.5 years. All surveyed respondents regard driving as their main business, which allows them to earn day to day cash by transportation of passengers and goods. For most drivers - about 91.53% of surveyed - driving is their main occupation, and only 8% drive for additional earning . Table 4.10. Transport means of the drivers (In %) Public bus 31.53 Tourist bus 0.00 Minibus 18.46 Taxi 16.15 Freight 26.92 Pick-up 2.30 Other 4.61 Source: Road Users Survey, July 2010 204. The biggest share of transport means driven is public buses. People widely use public transport for travelling, because of high demand for transport services and relatively limited number of private transport means. 32% of total surveyed respondents drive public buses, and 18% drive minibuses to transport passengers. Public buses are bigger in passenger capacity and carry passengers for longer distances compared to minibuses. Another sufficiently big share of transport means is freight, which makes 27%, taxi drivers make 16% of total number of surveyees. No driver of tourist buses were found as a result of the survey, which is explainable by the fact that these buses are owned by companies mostly based in Tashkent city.

IKS GROUP OF COMPANIES 60 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.11. Ownership of transport means (in %) Private 53.84 State company ownership 23.07 Private company ownership 15.38 Rented from private company 2.30 Rented from physical entity 5.38 Other 0.00 Source: Road Users Survey, July 2010 205. Among the surveyed drivers, 54% use their own transport means, while 2.3% and 5.4% rent vehicles from private companies and physical entities, respectively. Share of transport means owned by both state companies (23%) and private companies (15%) are less than of private owners.

Table 4.12. Frequency of using the road (In %) Every day 20.76 3-5 times per week 47.69 Every week 17.69 2-3 times per month 13.07 Every month 0.76 Rare than that 0.00 Source: Road Users Survey, July 2010

Table 4.13. Frequency of using the road by transport means ownership. (In %) Every 3-5 times Every 2-3 times Every day per week week per month month Private 14.28 57.14 14.28 14.28 0.00 State company 43.33 36.66 13.33 6.66 0.00 ownership Private company 10.00 30.00 35.00 20.00 5.00 ownership Rented from private 0.00 100.00 0.00 0.00 0.00 company Rented from physical 28.57 28.57 28.57 14.28 0.00 entity Other 0.00 0.00 0.00 0.00 0.00 Source: Road Users Survey, July 2010 206. Taking into account the number of transport means by its ownership, the frequency of using the roads used by drivers of private and state companies is mostly about 3-5 times a week, whereas the frequency of transport use by the state owned vehicles is higher, as indicated by 43.3 % of interviewees. Table 4.14. Seasonal Fluctuations in transport use. (In %) Summer Winter Doesn’t change Increase of usage 72.30 3.84 23.84 Increase time 12.30 56.92 30.76 Increase costs 10.00 26.15 63.84 Source: Road Users Survey, July 2010

IKS GROUP OF COMPANIES 61 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

207. There is seasonal fluctuation in transport usage. According to the data collected absolute majority of the drivers surveyed indicated that their use of transport means increases in summer. Drop in use of the transport during the winter and increased time spent on the road can be explained by the poor condition of road surface, and heavy precipitation in winter time when the road bed iced up, thus drivers try to move slowly or don’t travel to avoid car accidents. In turn, less traffic is more demand for transportation, which increases the cost of transportation. Table 4.15. Issues related to driving on your route (In %) Issues Good Fair Poor Quality of the road 3.07 46.92 50.00 Lack of public transport 26.15 68.46 5.38 Lack of Safety Road Signs and barriers 6.92 50.00 43.07 Safety of transport means 15.38 69.23 15.38 Gas stations/limited availability of gasoline 13.84 47.69 38.46 High prices of gasoline 10.76 50.76 38.46 Underpriced (if regulated) transport fares / tariffs 19.23 74.61 6.15 Source: Road Users Survey, July 2010 208. The condition of the road bed has to be improved, as only 3% per of interviewed road user consider that it is in good condition, and half of them found it poor. The 5.4% of road user think availablility of public transport should be increased. 43% of interviewed road users indicated that the lack of safety road signs and barriers, as one of the key issues to be undertaken. About 70% of road users assessed the safety of transport means as fair, and 15% as poor. The safety issues considered to be of the highest priority with regards to long- distance trips. 209. As it was mentioned during in-depth and structured interviews, regular check-ups and maintenance procedures should be under strict control of the management of the companies providing transportation services for passengers. Another key issue that was raised by all of respondents is availability of gasoline and gas stations. Availability of gasoline at gas station is deemed as fair by 48% of road users and as poor by 38%. Only 1 of 10 road user considered that gasoline supplied is at good price. Table 4.16. Priorities of the Investments’ directions related to the improvement of the road infrastructure. (%) % Rehabilitation of existing road 26.41 Construction of new roads 18.20 Improvement of facilities of bus stations and bus stops for passengers 14.61 Increased frequency of public transport means 4.35 Improvement of public transport coverage/betther routes 4.87 Improvement of road maintenance services 15.38 Improvement of road safety and security measures 14.35 Reduced Carbon emission 1.79 Source: Road Users Survey, July 2010 210. Accorging to the opinion of road users, the priority for investments should be directed to the rehabilitation of roads. In percentage the weight of this direction for investment is 26%. Another important direction is construction of new roads (18%). The conducted survey proves the rationality of bigger part of investment in rehabilitation of existing and constrcution of the new roads. Other directions such as improvement of facilities of bus stations and bus stops for passengers, improvement of road maintenance service and improvement of road safety and security measures are seen as highest pririties directions for about 15% of interviewed drivers.

IKS GROUP OF COMPANIES 62 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Improvement of public transport coverage and developing better routes, as well as, increasing frequency of public trasportation means assessed at 5% of priority. As expected, road users, compared to households surveyed, are less interested in reducing of carbon emission, as only 1.79% of drivers underlined this issue. Table 4.17 Average structure of expenditure of drivers in % Type of expenditure % Fuel 83.07 Regular maintenance of the vehicle 1.68 Irregular maintenance / car fix caused by the poor condition of roads 12.85 Rent (if any) 1.75 Insurance 0.36 Other (Specify) 0.25 Source: Road Users Survey, July 2010 211. As aforementioned, drivers are directly affected by availability of gasoline and its price. Being the main factor of driving, the fuel is the biggest type of expenditures. Drivers spend about 83% of total expenditures on fuel. Another type of expenditure 13% of total is irregular maintenance and fix of vehicles caused by poor road bed. Regular maintenance makes only 2% of total expenditures. Rent is about 2%. And insurance makes less than 1% of total expenditures. Table 4.18 Average monthly expenditures spent by drivers (in 000s sum). Expenditure Public bus Minibus Taxi Freight Pick-up Other 1. Fuel 1960.48 874.16 566.66 1593.71 1173.33 744.33 2.Regula mraintenance 38.07 26.04 9.90 23.71 120.00 0.00 of the vehicle 3. Irregular maintenance / car fix caused by the 371.29 97.00 56.90 195.28 410.00 96.66 poor condition of roads 4. Rent (if any) 0.00 47.91 14.28 25.71 166.66 150.00 5. Insurance 8.78 6.75 3.71 3.20 13.33 4.33 6. Other (Specify) 7.80 2.50 2.85 1.71 16.66 0.00 Source: Road users Survey, July 2010

212. As public buses have big passenger turnover, the fuel is the main type of expenditure, and it’s share is 82% in total average monthly expenditures. As for freight and taxi drivers, they spend about 86% of their total average expenditures for fuel. Regular maintenance is relatively low for all types of transport means, with the exception of pick-ups with 6% of total expenditures. The average monthly irregular maintenance expenditures for pick-ups si also considerably higher in comparison with other types of vehicles. Aside of dependence of size and type of transport mean, the condition of vehicle has an important role in expenditures structure.

IKS GROUP OF COMPANIES 63 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 4.19. Average structure of revenue of drivers in % Types of revenue % 1. Wage / salary 12.64 2. Additional earning (remainder from daily 84.74 planned sum) 3. Bonuses 1.41 4. Renting the vehicle to others (if any) 1.10 5. Other (Specify) 0.09 Source: Road users Survey, July 2010 213. The main source of income for road users is additional revenues earned from transportation, such as incomes resulted from over performing the daily norms. This makes up 85% of total revenues. Drivers who work for transport companies receive salary (about 13%), but they also have additional daily earnings. They can obtain bonuses, but they prefer to keep additional earnings rather than having bonuses. Renting the vehicles for others is some more than 1% and does not make big revenue; but renting several cars to others is considered as source of significant income.

Table 4.20. Average monthly revenues earned by drivers (operators) (In 000’ s sum). Expenditure Public Minibus Taxi Freight Pick-up Other bus 1. Wage / salary 202.43 166.25 125.71 163.05 400.00 0.00 2. Additional earning (remainder from daily 1868.26 480.54 433.80 1134.85 586.66 1263.33 planned sum) 3. Bonuses 32.39 10.41 2.85 22.80 0.00 0.00 4. Renting the vehicle to 0.00 0.00 0.00 5.71 466.66 50.00 others (if any) 5. Other (Specify) 2.92 0.00 2.38 0.00 0.00 0.00 Source: Road users Survey, July 2010 214. Drivers (or operators) of public buses additionally earn by 10 times higher than their monthly wages. As it was indicated by Public Bus drivers one public bus has at least two interchanging drivers and large expenditures for maintenance and fuel. On the contrary, drivers of pick-up has average monthly revenue about 400 thousand sum and about 1.5 times more additional earnings. Revenue from renting pick-up to others is 466 thousand sum or 32% of total revenues.

IKS GROUP OF COMPANIES 64 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

VI. SOCIOECONOMIC IMPACT OF REHABILITATION AND CONSTRUCTION OF THE INTERNATIONAL HIGHWAY A-380

215. While the sub-project will not have a direct impact on income growth and poverty reduction in the sub-project area, the indirect impacts on the living standards and well-being of the local population will be significant. The expected economic and social impacts of the sub-project will benefit the several groups. The most significant impacts of the Project are grouped as follows: If the sub-project is implemented, the population of the districts will have better access to education establishments. Namely, higher education institutes which are more concentrated in capital, regional centers and big cities such as Nukus, Urgench and Tashkent, will be accessed more easily, in terms of the frequency and of travel and time spent on road. The project will have positive effect on healthcare by improving the access to healthcare facilities, centralized hospitals and specialized medical establishments located in big cities. This is expected to have particular positive impact on women, especially pregnant and fertility age women, and children who, according to the survey results, are less likely to visit healthcare institutions. Reducing the difficulties existing in visiting hospitals and other medical institutions will not only reduce household expenditure on medical treatments, but will also increase the economic activity of household members of employable age, including women. This is particularly important for those households who currently cannot afford the dedication of significant resources for costs of medical services and medical expenses. Because of the sub-project, additional business opportunities will be created for entrepreneurs to start up new food serving facilities, vehicle maintenance shops, gas stations, campings and other facilities alongside the new road. Improved road will contribute to the development of infrastructure alongside the road, provided better conditions for transportation and supplies. It is also expected that the sub-project will, to some extent, contribute to reduction of unemployment and generation of jobs during and after the construction of new road. A few jobs for skilled professionals could be created in those organizations responsible for the maintenance and repair of the roads. Jobs for unskilled workers could also be created during construction activities in the form of public works that may involve some currently unemployed persons registered in the local employment offices. Improved road infrastructure will attract new investments and businesses, creating additional workplaces. The indirect impact of the sub-project on employment will be in the form of expanded opportunities for employment and self-employment in such sectors as public catering and service provision. Implementation of the sub-project will significantly increase the quality of travel of road users, particularly the passengers of socially vulnerable population groups: elderly, people with disabilities, and children will benefit improved road infrastructure most. The sub-project will have exact impact on improving women’s quality of life, establishing and improving sanitation facilities for women. Implementation of the sub-project will also lead to a reduction in households’ expenditures and time spent on transportation purposes and maintenance of transport means. New roads will be of particular use in marketing and distribution of agricultural products such as rise and crops, which are cultivated in the region and supplied to other provinces. These will be of assistance to farmers who deliver their products to distant locations and major markets. Increased incoming flow of public products and fast moving consumption goods will also have positive impact on household structure of expenditures and particularly benefit families with lower income. In addition, this is

IKS GROUP OF COMPANIES 65 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

expected to increase the competition leading to better quality of the products offered and maintaining market prices stable. The largest positive impact of the sub-project will benefit road users, particularly, the drivers (operators) of long-distance passenger routes and freight forwarders whose nature of work is directly reliant on the state of roads. Not only the income received from transportation but also additional services provided to road users will be improved significantly. It should be kept in mind that positive socioeconomic impact of the Project goes beyond the Project area. A380 will also benefit the population of other districts who travel across the sub-project area. These predominantly will be the tourists, both local and international, who travel with the purpose of visiting historical, cultural and ecological sights of the region. A380 road is heavily used by the Bukhara- Khiva/Urgench route users due to the absence of air-flights between these two cities. 216. Rehabilitation of the Road and Transport systems will enable the increased effectiveness of other related projects being implemented in the area funded by the Government’s (fiscal) budget and local Hokimiyats, including projects on development of small-scale businesses.

IKS GROUP OF COMPANIES 66 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ANNEXES

ANNEX I

Statistics and survey results used in PSA

Table 1. Population of Beruniy district by Mahallas as of 1 January 2010 Average number Average number of number of Name of Mahallya size of of size of Men Women population Households household families the family 1 Sarkop 4268 647 6,6 942 4,5 2158 2110 2 U. Jumaniyazev 3617 641 5,6 811 4,5 1829 1788 3 Palvash 3588 612 5,9 825 4,3 1815 1773 4 Shabboz 3983 792 5,0 896 4,4 2014 1969 5 Ibn Sino 4770 791 6,0 921 5,2 2412 2358 6 Shimom 8889 1458 6,1 1504 5,9 4494 4392 7 Navoiy 8600 1581 5,4 2139 4,0 4349 4251 8 Tinchlik 7416 1047 7,1 1645 4,5 3750 3666 9 Ozod 5470 956 5,7 1168 4,7 2766 2704 10 Makhtumkuly 4958 983 5,0 1290 3,8 2507 2451 11 Beruniy 5780 758 7,6 1036 5,6 2923 2857 12 Mustakillik 3746 529 7,1 783 4,8 1894 1852 13 Kanshartov 3926 611 6,4 709 5,5 1985 1941 14 Nayman 3675 624 5,9 842 4,4 1858 1817 15 Biybozor 5523 1038 5,3 1121 4,9 2793 2730 16 Oltinsoy 6022 963 6,3 1081 5,6 3045 2977 17 Abay 4016 591 6,8 680 5,9 2031 1985 18 Dustlik 4201 630 6,7 890 4,7 2125 2076 19 K-Kalya 4421 726 6,1 872 5,1 2236 2185 Total Kishlaks 96867 15978 6,1 20155 4,8 48984 1 Horazm 4139 772 5,4 690 6,0 2083 2057 2 Guliston 4535 723 6,3 937 4,8 2282 2253 3 A.Temur 4458 628 7,1 921 4,8 2243 2215 4 Kiyat 3255 632 5,2 734 4,4 1638 1617 5 Tukimachi 2836 528 5,4 640 4,4 1427 1409 6 Markaziy 3648 513 7,1 711 5,1 1836 1812 7 Shabboz 4147 540 7,7 911 4,6 2087 2060 8 Hamza 3246 376 8,6 730 4,4 1633 1613 9 Navruz 2291 339 6,8 402 5,7 1153 1138 10 Birlik 1983 363 5,5 539 3,7 998 985 11 Pahtakor 1954 236 8,3 517 3,8 983 971 12 Buston 5787 790 7,3 1117 5,2 2912 2875 13 Beruniy 3912 545 7,2 692 5,7 1968 1944 14 Ahunbabayev 2789 429 6,5 697 4,0 1402 1384 15 Navoiy 3542 477 7,4 590 6,0 1782 1760 16 Dustlik 2686 257 10,5 504 5,3 1352 1334 17 S. Kuzibayev 2954 504 5,9 617 4,8 1486 1468

IKS GROUP OF COMPANIES 67 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Total town 58190 8652 6,7 11949 4,9 29265 28895 18 Bolish settlement 4046 757 5,3 985 4,1 2033 2013 Total district 159073 25387 6,3 33089 4,8 80285 78788 Sources: City Department of Statistics, Mahalla committees

Table:2 Population of Ellikkala district by Mahallas as of 1 January 2010 Number of Average size Number of Average size Rural Population Men Women household of households families of family Dustlik RAC 5430 2695 2735 706 7,7 1078 5,0 Amirobod RAC 10310 5137 5137 1214 8,5 1301 7,9 Tozabog RAC 10915 5409 5506 1570 7,0 2087 5,2 Guldursun RAC 7980 3833 4147 1066 7,5 1476 5,4 Kirkkiz RAC 12866 6393 6473 1774 7,3 2548 5,0 Kilchinok RAC 13401 6856 6545 1852 7,2 2416 5,5 Sarabiy RAC 16905 8360 8563 2203 7,7 2854 5,9 Guliston RAC 6343 2986 3357 796 8,0 897 7,1 Navoiy RAC 12168 5949 6237 1656 7,3 1908 6,4 Ellikkala RAC 6263 3106 3157 904 6,9 1069 5,9 Okchakul RAC 5050 2532 2518 692 7,3 805 6,3 Shark yulduzi 3677 1849 1828 598 6,1 793 4,6 RAC Kizil kum RAC 622 283 339 89 7,0 131 4,7 Chukurkok MAC 1209 548 661 105 11,5 135 9,0 Pison MAC 119 61 58 39 3,1 39 3,1 Kavatkala MAC 1242 611 631 163 7,6 248 5,0 Total Rural 114500 56608 57892 15427 7,4 19785 5,8 Urban Buston MAC 3129 1461 1668 492 6,4 574 5,5 Ibn-Sino MAC 2757 1349 1408 520 5,3 547 5,0 Navoiy MAC 3156 1555 1601 512 6,2 560 5,6 Toshkent MAC 4101 1735 2366 653 6,3 1128 3,6 Abay MAC 2237 1184 1053 469 4,8 528 4,2 Total Urban 15380 7284 8096 2646 5,8 3337 4,6 Total Ditrict 129880 63892 65988 18073 7,2 23122 5,6 Sources: City Department of Statistics, Mahalla committees

Table 3 Population of Turtkul district by Mahallas as of 1 January 2010 Average Number of Average size Number of Districts Population size of families of family households household Ovul assembly of citizen – Rural 1 Akkamish 8302 2845 2,9 2160 3,8 2 Okboshli 9582 2003 4,8 1769 5,4 3 Uzbekiston 16325 4066 4,0 2928 5,6 4 Shuraxon 16110 3823 4,2 2666 6,0 5 Kuna-Turtkul 13396 3079 4,4 2327 5,8 6 Ullubog 13467 3126 4,3 2421 5,6 7 Tozabog 6984 1411 4,9 1568 4,5 8 Paxtachi 7212 1858 3,9 2568 2,8 9 A. Durdiyev 8364 2090 4,0 1505 5,6

IKS GROUP OF COMPANIES 68 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

10 Kaltaminor 7817 1696 4,6 1369 5,7 11 Yanboshkala 5236 1094 4,8 875 6,0 12 Kukcha 1303 259 5,0 216 6,0 13 Paxtaobod 1328 313 4,2 291 4,6 14 Kumboskan 1494 267 5,6 233 6,4 15 Ata-Uba 1970 477 4,1 320 6,2 Total rural 118890 28407 4,2 23216 5,1 Makhalla assembly of Citizens – Urban 1 Aviatsiya 1300 501 2,6 177 7,3 2 Guliston 3464 942 3,7 385 9,0 3 Yangiobod 3464 1007 3,4 648 5,3 4 Beruniy 3464 802 4,3 500 6,9 5 Ibn-sino 3719 896 4,2 589 6,3 6 Turtkul 2428 514 4,7 102 23,8 7 Turkiston 2294 685 3,3 517 4,4 8 Markazobod 4048 334 12,1 330 12,3 9 Toshkent 3489 755 4,6 492 7,1 10 Galaba 2399 598 4,0 305 7,9 11 Mustakillik 3340 752 4,4 315 10,6 12 Bog-yop 1995 634 3,1 401 5,0 13 Navoiy 2015 1098 1,8 522 3,9 14 Uzbekiston 2758 594 4,6 251 11,0 15 Istiklol 3551 549 6,5 250 14,2 16 Hamza 2484 630 3,9 358 6,9 17 Gagarin 3349 621 5,4 300 11,2 18 Nawruz 2302 669 3,4 533 4,3 19 Dustlik 3175 823 3,9 648 4,9 20 Yoshlik 2089 614 3,4 437 4,8 Total Urban 57127 14018 4,1 8060 7,1 TOTAL District 176017 42425 4,1 31276 5,6 Sources: City Department of Statistics, Mahalla committees

Table 4. Employment Indicators in Sub-Project area 3.2: Turtkul and Beruniy districts, January 2010 Beruniy Turtkul Employable-Age Population 91200 95950 Employed 56300 58200 Officially registered People seeking for 3700 2376 Employment Provided with Employment 2283 2295 Receive unemployment subsidies n/a 213 Source: District Department of statistics

IKS GROUP OF COMPANIES 69 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table:5 Average Weighted Structure of Income of Poor and Non-poor Households in Beruniy district Average Total Percentage of Contribution to Income, 000’s Households Receiving Total Household SUM such Income, % Income, % Income from Marketing Own 277.75 70.00 33.35 Agricultural Products Poor 107.73 50.94 21.77 Non-poor 341.36 77.39 35.52 Income from Non-agricultural 69.18 34.50 8.31 Entrepreneurial Activities Poor 57.54 33.96 11.63 Non-poor 73.88 34.93 7.69 Income from Hired Employment 67.35 34.50 8.09 in the Non-agricultural Sector Poor 66.03 39.62 13.34 Non-poor 68.28 32.87 7.11 Income from Hired Employment 152.70 60.00 18.34 in the Agricultural Sector Poor 120.20 60.37 24.29 Non-poor 165.54 60.27 17.22 Old-Age Pensions 47.62 27.50 5.72 Poor 39.64 28.30 8.01 Non-poor 50.84 27.39 5.29 Disability Pensions and Benefits 14.22 10.00 1.71 Poor 13.00 13.20 2.63 Non-poor 14.76 8.90 1.54 Social Benefits for Low-income 1.92 3.00 0.23 Families Poor 2.24 5.66 0.45 Non-poor 1.81 2.05 0.19 Social Benefits for Families with 6.48 14.00 0.78 Children Aged 2-18 Poor 10.00 22.64 2.02 Non-poor 5.24 10.95 0.55 Social Benefits for Families with 2.90 4.50 0.35 Children Aged under 2 Poor 2.60 3.77 0.53 Non-poor 3.02 4.79 0.31 Other Social Security Benefits 1.24 2.50 0.15 Poor 1.41 3.77 0.29 Non-poor 1.19 2.05 0.12 Remittances sent from abroad 131.60 23.50 15.80 Poor 46.60 18.86 9.42 Non-poor 163.35 25.34 17.0 Other Income 59.80 45.50 7.18 Poor 27.92 24.52 5.64

IKS GROUP OF COMPANIES 70 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 6. Average Weighted Structure of Income of Poor and Non-poor Households in Ellikkala district Average Total Percentage of Contribution to Total Income, 000’s Households Receiving Household Income, SUM such Income, % % Income from Marketing Own 118.15 60.39 20.8864 Agricultural Products Poor 62.96 57.40 14.9375 Non-poor 181.56 63.82 24.8258 Income from Non-agricultural 20.67 15.84 3.6553 Entrepreneurial Activities Poor 31.40 22.22 7.4511 Non-poor 8.35 8.51 1.1418 Income from Hired Employment 73.34 32.17 12.9657 in the Non-agricultural Sector Poor 72.61 34.25 17.2264 Non-poor 74.19 29.78 10.1444 Income from Hired Employment 172.47 53.46 30.4891 in the Agricultural Sector Poor 139.84 50.00 33.1766 Non-poor 209.96 57.44 28.7096 Old-Age Pensions 54.49 26.73 9.6333 Poor 37.87 22.22 8.9844 Non-poor 73.59 31.91 10.0629 Disability Pensions and Benefits 14.49 10.39 2.5623 Poor 12.33 10.18 2.9259 Non-poor 16.97 10.63 2.3215 Social Benefits for Low-income 2.93 5.44 0.5189 Families Poor 4.33 8.33 1.0280 Non-poor 1.32 2.12 0.1818 Social Benefits for Families with 14.08 27.72 2.4905 Children Aged 2-18 Poor 15.27 35.18 3.6245 Non-poor 12.72 19.14 1.7397 Social Benefits for Families with 6.97 9.40 1.2321 Children Aged under 2 Poor 8.89 12.03 2.1110 Non-poor 4.75 6.38 0.6502 Other Social Security Benefits 4.19 6.43 0.7412 Poor 0.86 1.85 0.2042 Non-poor 8.02 11.70 1.0967

IKS GROUP OF COMPANIES 71 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 6. Average Weighted Structure of Income of Poor and Non-poor Households in Ellikkala district Average Total Percentage of Contribution to Total Income, 000’s Households Receiving Household Income, SUM such Income, % % Remittances sent from abroad 74.00 21.28 13.0830 Poor 33.51 12.96 7.9520 Non-poor 120.53 30.85 16.4807 Other Income 9.85 5.44 1.7414 Poor 1.59 2.77 0.3778 Non-poor 19.34 8.51 2.6444 Source: Household survey, June 2010

Poor 101.04 68.33 20.45 Non-poor 122.81 73.75 14.36 Income from Non-agricultural Entrepreneurial Activities 54.25 35.00 8.49 Poor 50.00 34.16 10.12 Non-poor 60.62 36.25 7.09 Income from Hired Employment in the Non-agricultural Sector 71.32 40.50 11.17 Poor 64.79 40.83 13.11 Non-poor 81.12 40.00 9.48 Income from Hired Employment in the Agricultural Sector 164.70 59.50 25.79 Poor 124.96 55.83 25.29 Non-poor 224.31 65.00 26.23 Old-Age Pensions 69.69 31.00 10.91 Poor 48.34 27.50 9.78 Non-poor 101.71 36.25 11.89 Disability Pensions and Benefits 37.94 24.00 5.94 Poor 34.60 24.16 7.00 Non-poor 42.95 23.75 5.02 Social Benefits for Low-income Families 1.35 0.50 0.21 Poor 0.00 0.00 0.00 Non-poor 3.37 1.25 0.39 Social Benefits for Families with Children Aged 2-18 5.42 10.50 0.85 Poor 6.49 12.50 1.31 Non-poor 3.82 7.50 0.45

IKS GROUP OF COMPANIES 72 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 7. Average Weighted Structure of Income of Poor and Non-poor Households in Turtkul district Average Total Percentage of Households Contribution to Income, 000’s Receiving such Income, % Total Household SUM Income, % Social Benefits for Families with Children Aged under 2 5.46 7.50 0.86 Poor 4.02 5.83 0.81 Non-poor 7.62 10.00 0.89 Other Social Security Benefits 2.86 2.00 0.45 Poor 1.71 1.66 0.35 Non-poor 4.57 2.50 0.53 Remittances sent from abroad 80.80 17.00 12.65 Poor 25.33 7.50 5.13 Non-poor 164.00 31.25 19.17 Other Income 35.06 28.00 5.49 Poor 32.85 30.00 6.65 Non-poor 38.38 25.00 4.49 Source: Household survey, June 2010

Table 8. Average Weighted Structure of Expenditures of the Poor and Non-Poor Households in Beruniy district Average Total Percentage of Percentage in Expenditures, 000’s Households Having Total SUM such Expenditures Expenditures Foodstuffs 174.92 99.50 45.8522 Poor 180.67 100.00 55.4455 Non-poor 174.03 100.00 43.0453 Clothes & Footwear 62.40 86.00 16.3579 Poor 48.96 79.24 15.0251 Non-poor 67.71 89.04 16.7478 House maintenance and utilities 28.38 99.50 7.4410 Poor 26.03 100.00 7.9902 Non-poor 29.43 100.00 7.2803 Payment for Education 13.57 23.00 3.5570 Poor 3.13 24.52 0.9611 Non-poor 17.45 22.60 4.3165 Payment for Healthcare 24.71 40.50 6.4771 Poor 26.88 39.62 8.2508 Non-poor 24.08 41.09 5.9581 Expenditures for Transport (including fuel) 21.65 44.50 5.6750 Poor 17.13 52.83 5.2573 Non-poor 23.43 41.78 5.7971 Expenditures for Durable goods (such as 6.10 5.50 1.5989 furniture) Poor 0.94 3.77 0.2895

IKS GROUP OF COMPANIES 73 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 8. Average Weighted Structure of Expenditures of the Poor and Non-Poor Households in Beruniy district Average Total Percentage of Percentage in Expenditures, 000’s Households Having Total SUM such Expenditures Expenditures Non-poor 8.01 6.16 1.9820 Savings 34.07 26.00 8.9305 Poor 7.54 13.20 2.3160 Non-poor 43.93 30.82 10.8659 Other expenditures 15.68 25.00 4.1101 Poor 14.54 24.52 4.4641 Non-poor 16.19 25.34 4.0065 Source: Household survey, June 2010

Table 9. Average Weighted Structure of Expenditures of the Poor and Non-Poor Households in Ellikkala district Average Total Percentage of Percentage in Expenditures, 000’s Households Having Total SUM such Expenditures Expenditures Foodstuffs 166.69 100.00 31.8809 Poor 153.74 100.00 37.9797 Non-poor 181.58 100.00 27.5737 Clothes & Footwear 49.26 87.12 9.4214 Poor 39.72 85.18 9.8128 Non-poor 60.22 89.36 9.1449 House maintenance and utilities 32.59 96.03 6.2336 Poor 31.68 95.37 7.8274 Non-poor 33.63 96.80 5.1079 Payment for Education 16.19 32.17 3.0969 Poor 13.00 32.40 3.2114 Non-poor 19.86 31.91 3.0160 Payment for Healthcare 35.05 43.06 6.7051 Poor 22.52 35.18 5.5652 Non-poor 49.45 52.12 7.5101 Expenditures for Transport (including fuel) 30.45 52.97 5.8236 Poor 24.60 52.77 6.0775 Non-poor 37.17 53.19 5.6443 Expenditures for Durable goods (such as 15.75 8.41 3.0126 furniture) Poor 6.36 6.48 1.5714 Non-poor 26.54 10.63 4.0304 Savings 165.22 78.21 31.5988 Poor 105.48 71.29 26.0579 Non-poor 233.86 86.17 35.5120 Other expenditures 11.64 20.79 2.2268 Poor 7.67 15.74 1.8962

IKS GROUP OF COMPANIES 74 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 10. Average Weighted Structure of Expenditures of the Poor and Non-Poor Households in Turtkul district Average Total Percentage of Percentage in Expenditures, 000’s Households Having Total SUM such Expenditures Expenditures Foodstuffs 240.90 100.00 42.3318 Poor 231.04 100.00 51.2732 Non-poor 255.68 100.00 34.2388 Clothes & Footwear 55.07 79.50 9.6779 Poor 56.50 80.00 12.5386 Non-poor 52.93 78.75 7.0888 House maintenance and utilities 28.93 98.00 5.0845 Poor 27.24 96.66 6.0455 Non-poor 31.47 100.00 4.2147 Payment for Education 15.33 40.00 2.6938 Poor 13.34 40.83 2.9608 Non-poor 18.31 38.75 2.4522 Payment for Healthcare 63.99 68.50 11.2454 Poor 46.54 60.83 10.3286 Non-poor 90.17 80.00 12.0752 Expenditures for Transport (including fuel) 30.21 48.50 5.3094 Poor 26.02 45.83 5.7755 Non-poor 36.50 52.50 4.8876 Expenditures for Durable goods (such as 6.20 2.00 1.0894 furniture) Poor 0.00 0.00 0.0000 Non-poor 15.50 5.00 2.0755 Savings 57.45 38.00 10.0953 Poor 35.16 33.33 7.8042 Non-poor 90.87 45.00 12.1689 Other expenditures 70.97 25.50 12.4719 Poor 14.75 24.16 3.2733 Non-poor 155.31 27.50 20.7977 Source: Household survey, June 2010

IKS GROUP OF COMPANIES 75 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 11. Education Indicators for Household Members and Household heads in Beruniy, Ellikkala and Turtkul districts Beruniy district Total Poor Non-poor Household Members, as % of Household Members Above 16 Years of Age No Education 0.54 0.85 0.39 Incomplete Secondary Education (7-9 Forms) 5.68 3.84 6.53 Complete Secondary Education (10-11 Forms) 27.33 26.06 27.92 Secondary Vocational Educations 45.87 51.70 43.16 Higher Education 19.07 17.09 20.00 Students 1.48 0.42 1.98 Household Heads, % No Education 0.51 0.00 0.70 Incomplete Secondary Education (7-9 Forms) 4.10 3.77 4.22 Complete Secondary Education (10-11 Forms) 24.61 24.52 24.64 Secondary Vocational Educations 41.53 41.50 41.54 Higher Education 29.23 30.18 28.87 Students 0.00 0.00 0.00 Ellikkala district Total Poor Non-poor Household Members, as % of Household Members Above 16 Years of Age No Education 1.31 1.36 1.26 Incomplete Secondary Education (7-9 Forms) 6.14 7.65 4.41 Complete Secondary Education (10-11 Forms) 32.94 32.51 33.43 Secondary Vocational Educations 42.31 45.62 38.48 Higher Education 13.61 9.28 18.61 Students 3.66 3.55 3.78 Household Heads, % No Education 3.03 3.80 2.15 Incomplete Secondary Education (7-9 Forms) 3.53 5.71 1.07 Complete Secondary Education (10-11 Forms) 25.25 24.76 25.80 Secondary Vocational Educations 41.91 42.85 40.86 Higher Education 23.73 19.04 29.03 Students 2.52 3.80 1.07 Turtkul district Total Poor Non-poor Household Members, as % of Household Members Above 16 Years of Age No Education 0.81 0.56 1.20 Incomplete Secondary Education (7-9 Forms) 10.56 11.74 8.70 Complete Secondary Education (10-11 Forms) 29.03 30.11 27.32 Secondary Vocational Educations 52.03 51.13 53.45 Higher Education 7.43 6.43 9.00 Students 0.11 0.00 0.30 Household Heads, % No Education 0.52 0.00 1.28 Incomplete Secondary Education (7-9 Forms) 5.72 6.14 5.12

IKS GROUP OF COMPANIES 76 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Complete Secondary Education (10-11 Forms) 27.08 29.82 23.07 Secondary Vocational Educations 52.60 50.87 55.12 Higher Education 14.06 13.15 15.38 Students 0.00 0.00 0.00 Source: Household survey, June 2010

Table 12. Economic Activity and Employment Indicators of Household Members in Beruniy, Ellikkala and Turtkul district as % of Employable-age Household Members Beruniy district Total Poor Non-poor Economically Active 73.72 70.44 75.22 Employed 53.01 42.86 57.66 Hired in Non-Agricultural Sector 32.92 29.55 34.45 In State-budget-funded Organizations 26.12 19.70 29.05 Entrepreneurs 8.34 8.37 8.33 Temporary and Seasonal Workers 11.12 9.85 11.71 Agricultural Workers 11.74 4.92 14.86 Unemployed 20.71 27.58 17.56 Economically Inactive 26.27 29.55 24.77 Students 2.16 1.97 2.25 Pensioners and People with Disabilities 4.79 6.89 3.82 Neither Work, Nor Look for a Job 21.48 22.66 20.94 Ellikkala district Total Poor Non-poor Economically Active 86.04 86.01 86.07 Employed 80.3 79.02 81.79 Hired in Non-Agricultural Sector 43.51 40.42 47.14 In State-budget-funded Organizations 29.39 25.53 33.92 Entrepreneurs 15.10 15.50 14.64 Temporary and Seasonal Workers 33.33 33.73 32.85 Agricultural Workers 21.67 23.10 20.00 Unemployed 5.74 6.99 4.28 Economically Inactive 13.95 13.98 13.92 Students 3.28 2.12 4.64 Pensioners and People with Disabilities 6.89 5.47 8.57 Neither Work, Nor Look for a Job 7.06 8.51 5.35 Turtkul district Total Poor Non-poor Economically Active 78.56 79.68 76.72 Employed 59.89 56.02 66.18 Hired in Non-Agricultural Sector 30.84 27.90 35.63 In State-budget-funded Organizations 14.10 12.72 16.36 Entrepreneurs 7.19 6.47 8.36 Temporary and Seasonal Workers 24.06 22.32 26.90 Agricultural Workers 21.85 21.65 22.18 Unemployed 18.67 23.66 10.54 Economically Inactive 21.43 20.31 23.27 Students 0.55 0.22 1.09 Pensioners and People with Disabilities 5.94 4.68 8.00 Neither Work, Nor Look for a Job 15.49 15.62 15.27 Source: Household survey, 2010

IKS GROUP OF COMPANIES 77 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 13. The use of transport types for different purposes by the members of household in Beruniy, Ellikkala and Turtkul districts. In% Private Motor Animal/Ca By Destination Public Transport Bicycle vehicle bike rt walking Beruniy School 11.50 1.76 0.88 3.53 1.76 80.53 College 60.93 0.00 7.81 0.00 0.00 31.25 Polyclinics 70.73 12.19 1.21 2.43 0.00 13.41 Hospital 83.09 9.85 0.00 0.00 1.40 5.63 Work 41.60 13.60 8.80 0.80 0.80 34.40 Market 74.21 15.26 1.05 0.00 0.52 8.94 Other 75.00 0.00 0.00 0.00 0.00 25.00 Ellikkala district Private Motor Animal/Ca By Destination Public Transport Bicycle vehicle bike rt walking School 20.14 2.98 2.98 1.49 2.23 70.14 College 60.27 0.00 2.73 0.00 0.00 36.98 Polyclinics 34.88 10.07 0.77 1.55 0.00 52.71 Hospital 50.74 14.92 1.49 0.00 0.00 32.83 Work 29.77 11.45 1.52 0.00 0.76 56.48 Market 71.50 17.09 0.51 0.00 0.00 10.88 Other 50.00 50.00 0.00 0.00 0.00 0.00 Turtkul district Private Motor Animal/Ca By Destination Public Transport Bicycle vehicle bike rt walking School 5.88 0.98 0.98 0.98 2.94 88.23 College 72.72 1.51 3.03 1.51 1.51 19.69 Polyclinics 78.12 8.59 0.00 0.00 0.00 13.28 Hospital 68.90 26.89 0.00 0.00 0.84 3.36 Work 41.17 15.96 4.20 2.52 0.00 36.13 Market 73.15 18.94 3.15 0.52 0.00 4.21 Other 43.47 52.17 0.00 4.34 0.00 0.00 Source: Household Survey, June 2010

IKS GROUP OF COMPANIES 78 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 14. The frequency of the road use by the members of household in Beruniy, Ellikkala and Turtkul districts. In % 2 or more 2 or more Less than Every Every Destination Every day times per times per once a week month week month month Beruniy district School 100.00 0.00 0.00 0.00 0.00 0.00 College 89.06 3.12 4.68 0.00 0.00 3.12 Polyclinics 1.21 2.43 0.00 3.65 15.85 76.82 Hospital 4.22 0.00 1.40 1.40 12.67 80.28 Work 95.20 1.60 2.40 0.80 0.00 0.00 Market 7.36 40.52 41.57 6.84 1.57 2.10 Other 25.00 0.00 25.00 25.00 25.00 0.00 Ellikkala district 2 or more 2 or more Less than Every Every Destination Every day times per times per once a week month week month month School 97.76 0.00 0.74 0.00 0.00 1.49 College 78.08 8.21 9.58 2.73 0.00 1.36 Polyclinics 3.87 0.77 0.00 11.62 31.78 51.93 Hospital 4.47 0.00 0.00 4.47 10.44 80.59 Work 94.65 3.81 0.00 0.76 0.00 0.76 Market 5.69 11.39 48.70 29.53 2.07 2.59 Other 0.00 0.00 0.00 0.00 25.00 75.00 Turtkul district 2 or more 2 or more Less than Every Every Destination Every day times per times per once a week month week month month School 99.01 0.00 0.98 0.00 0.00 0.00 College 86.36 1.51 9.09 1.51 0.00 1.51 Polyclinics 1.56 1.56 1.56 16.40 21.09 57.81 Hospital 4.20 0.84 1.68 8.40 11.76 73.10 Work 88.23 4.20 1.68 0.00 0.84 5.04 Market 5.78 37.89 53.68 0.52 0.52 1.57 Other 0.00 13.04 17.39 4.34 17.39 47.82 Source: Household Survey, June 2010

IKS GROUP OF COMPANIES 79 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 15. Average spending by destinations by the members of household in Beruniy, Ellikkala and Turtkul districts (In %). Beruniy district Average money Average length (one way Average time spent Destination spent (each time one -km) (one way - minutes) way - SUM) School 1.56 12.83 871.42 College 17.76 24.95 1334.26 Polyclinics 13.11 19.54 957.97 Hospital 10.56 26.30 1250.00 Work 6.00 19.09 1233.80 Market 15.35 24.24 1416.42 Other 3.66 18.33 3866.66 Ellikkala district Average time spent Average money Destination Average length (km) (minutes) spent (SUM) School 1.3 13.60 550.00 College 23.60 36.58 1188.89 Polyclinics 8.37 16.54 1025.50 Hospital 14.31 23.40 893.47 Work 11.45 13.19 817.44 Market 12.35 22.62 1297.84 Other 33.50 70.00 5625.00 Turtkul district Average time spent Average money Destination Average length (km) (minutes) spent (SUM) School 1.34 15.28 2000.00 College 12.77 21.69 1063.82 Polyclinics 16.76 27.20 1293.69 Hospital 16.63 25.40 1484.10 Work 7.21 21.73 1094.33 Market 15.12 25.43 1409.16 Other 16.60 29.13 2921.73 Source: Household Survey, June 2010

Table 16. Share of households who expect the project will improve the situation. In % Beruniy Ellikkala Turtkul All households 61.50 75.74 83.50 Women 64.00 79.41 86.20 Men 61.49 75.00 83.04 Private houses (detached) 61.05 76.16 83.33 Apartments 77.77 66.66 100.00

IKS GROUP OF COMPANIES 80 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Beruniy Ellikkala Turtkul Poor 69.81 73.14 76.66 Non-poor 58.90 78.72 93.75 Uzbeks 63.01 73.17 78.35 Tadjiks (No Tadjiks) 100.00 0 Turkmens 48.00 100.00 95.34 Kyrghyzs (No Kyrghyzs) (No Kyrghyzs) (No Kyrghyzs) Kazakhs 73.07 72.72 92.85 Karakalpaks 0.00 71.42 100.00 Slavic (No Slavic) (No Slavic) 100.00 Other (No others) (No others) (No others) Source: Household Survey, June 2010

Table 17. Ethnic composition of households in Beruniy, Ellikkala and Turtkul districts. In % Beruniy district Uzbek Turkmen Kazakh Karakalpak Share of the households with entrepreneur 10.95 4.00 7.69 50.00 household heads Share of households with household heads with 0.00 0.00 3.84 0.00 no education Share of households with unemployed household 10.27 8.00 7.69 0.00 heads Share of households with household heads with 28.08 20.00 42.30 0.00 higher education Share of households with household heads with 41.78 44.00 30.76 50.00 vocational education Share of children under 16 23.09 24.21 24.06 30.00 Household size 5.13 5.12 5.11 5.00 Share of poor 5.50 6.21 4.31 5.90 Ellikkala district Share of the households with entrepreneur 4.26 5.55 0.00 0.00 household heads Share of households with household heads with 1.82 11.11 9.09 0.00 no education Share of households with unemployed household 4.26 0.00 0.00 0.00 heads Share of households with household heads with 24.39 11.11 18.18 57.14 higher education Share of households with houshold heads with 42.07 38.88 45.45 28.57 vocational education Share of children under 16 31.92 31.19 32.14 31.11 Household size 5.34 6.05 5.09 6.42 Share of poor 3.43 3.60 3.70 3.88

IKS GROUP OF COMPANIES 81 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Turtkul district Share of the households with entrepreneur 17.91 20.93 7.14 14.28 househol heads Share of households with houshold heads with no 0.74 2.32 0.00 0.00 education Share of households with unemployed houshold 8.95 0.00 7.14 0.00 heads Share of households with houshold heads with 11.19 16.27 35.71 0.00 higher education Share of households with houshold heads with 47.76 58.13 42.85 71.42 vocational education Share of children under 16 26.07 27.34 32.39 28.57 Household size 6.23 6.20 5.07 5.00 Share of poor 3.22 4.12 3.10 6.08 Source: Household Survey, 2010

Table 18. The use of transport to access medical institutions by houshold member groups (men, women and children) in Beruniy, Ellikkala and Turtkul districts. In % Beruniy district Gender/Healthcare institution Public transport Private vehicle By walking Men Hospital 70.00 30.00 0.00 Polyclinics 76.92 15.38 7.69 Hospital 68.18 31.81 0.00 Women Polyclinics 83.33 8.33 8.33 Children Hospital 60.00 40.00 0.00 Polyclinics 71.42 14.28 14.28 Ellikkala district Gender/Healthcare institution Public transport Private vehicle By walking Men Hospital 58.33 33.33 8.33 Polyclinics 57.14 42.85 0.00 Hospital 50.00 41.66 8.33 Women Polyclinics 30.00 40.00 30.00 Children Hospital 57.14 28.57 14.28 Polyclinics 50.00 41.66 8.33 Turtkul district Gender/Healthcare institution Public transport Private vehicle By walking Men Hospital 57.69 42.30 0.00 Polyclinics 76.92 23.07 0.00 Hospital 60.97 34.14 4.87 Women Polyclinics 87.50 11.11 1.38 Hospital 62.96 33.33 3.70 Children Polyclinics 84.81 13.92 1.26 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 82 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 19. The use of transport to access medical institutions by houshold member groups (men, women and children) in Beruniy, Ellikkala and Turtkul districts. In % Beruniy district Gender/Healthcare institution Public transport Private vehicle By walking Men Hospital 70.00 30.00 0.00 Polyclinics 76.92 15.38 7.69 Hospital 68.18 31.81 0.00 Women Polyclinics 83.33 8.33 8.33 Children Hospital 60.00 40.00 0.00 Polyclinics 71.42 14.28 14.28 Ellikkala district Gender/Healthcare institution Public transport Private vehicle By walking Men Hospital 58.33 33.33 8.33 Polyclinics 57.14 42.85 0.00 Hospital 50.00 41.66 8.33 Women Polyclinics 30.00 40.00 30.00 Children Hospital 57.14 28.57 14.28 Polyclinics 50.00 41.66 8.33 Turtkul district Gender/Healthcare institution Public transport Private vehicle By walking Men Hospital 57.69 42.30 0.00 Polyclinics 76.92 23.07 0.00 Hospital 60.97 34.14 4.87 Women Polyclinics 87.50 11.11 1.38 Hospital 62.96 33.33 3.70 Children Polyclinics 84.81 13.92 1.26 Source: Household Survey, 2010

Table 20. Differences between the female and male headed households in Beruniy, Ellikkala and Turtkul districts. In % Beruniy Ellikkala Turtkul Women Men Women Men Women Men Heads of Households who have Not 0.00 0.57 14.70 0.59 3.44 0.58 Completed School Education, % Heads of Households who Have 80.00 67.81 73.52 70.23 68.96 85.96 Secondary Vocational Education, % Heads of Households who have Higher 16.00 30.45 11.76 29.16 13.79 13.45 Education, % Households’ Heads in Employable Age 0.00 9.82 6.06 6.62 4.16 10.71 and Older, Who Are Entrepreneurs, % Unemployed Heads of Households of 4 1.17 51.51 24.69 58.33 35.71 Employable Age and Older, % Employed Heads of Households of 45.83 34.10 48.48 75.30 41.66 64.28 Employable Age and Older, % Children Under 16 years of Age, % 25.98 23.06 34.81 31.13 24.07 27.05 Household Size, Persons 5.08 5.13 4.64 5.58 5.58 6.18 Average Monthly Income, 000’s SUM 54.16 65.89 114.68 102.50 106.01 104.58 Poverty Rate, % 28.00 26.43 44.11 55.35 55.17 60.81 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 83 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 21. Education level indicators of men and women groups. In % Beruniy Ellikkala Turtkul Women Men Women Men Women Men No education 0.57 0.26 1.94 0.29 1.25 0.22 Incomplete basic education 6.30 2.64 7.24 3.83 11.75 8.74 Basi education 27.50 26.45 35.37 28.31 33.25 25.78 Vocational education 45.84 44.17 39.27 43.06 46.75 54.03 Higher education 16.33 22.22 10.30 16.22 5.00 9.86 Continuing receiving 3.15 3.96 5.84 8.25 2.00 1.34 education Source: Household Survey, June 2010

Table 22. Share of households who believe that the construction of new road will create new opportunities in Beruniy, Ellikkala and Turtkul districts (In%). Beruniy district Yes No Don’t know Creation of new business opportunities 92.00 0.50 7.00 Creation of new opportunities for marketing 78.00 2.50 19.00 agricultural products Better access to healthcare 50.50 7.00 42.00 Better access to education 53.50 7.50 38.50 Better access to public goods and services 78.50 0.50 20.50 Ellikkala district Yes No Don’t know Creation of new business opportunities 82.67 0.49 16.83 Creation of new opportunities for marketing 87.62 0.99 11.38 agricultural products Better access to healthcare 73.26 2.47 24.25 Better access to education 69.80 2.47 27.72 Better access to public goods and services 85.14 0.49 14.35 Turtkul district Yes No Don’t know Creation of new business opportunities 95.00 0.50 4.50 Creation of new opportunities for marketing 84.00 1.50 14.50 agricultural products Better access to healthcare 61.50 5.00 33.50 Better access to education 68.00 0.50 31.50 Better access to public goods and services 75.50 1.00 23.50 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 84 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 23. Average Weighted Structure of Income of Poor and Non-poor Households in Khorezm region, June 2010 Percentage of Contribution to Average Total Income, Households Receiving Total Household 000’s SUM such Income, % Income, % Income from Marketing Own Agricultural Products 8.60 5.00 1.6790 Poor 14.20 6.00 3.2036 Non-poor 3.00 4.00 0.5162 Income from Non-agricultural Entrepreneurial Activities 100.48 32.00 19.6177 Poor 69.36 32.00 15.6484 Non-poor 131.60 32.00 22.6451 Income from Hired Employment in the Non-agricultural Sector 21.60 8.00 4.2171 Poor 13.40 8.00 3.0231 Non-poor 29.80 8.00 5.1278 Income from Hired Employment in the Agricultural Sector 245.10 78.00 47.8533 Poor 229.20 80.00 51.7101 Non-poor 261.00 76.00 44.9117 Old-Age Pensions 66.75 32.00 13.0322 Poor 47.40 28.00 10.6939 Non-poor 86.10 36.00 14.8157 Disability Pensions and Benefits 20.22 16.00 3.9477 Poor 13.74 16.00 3.0999 Non-poor 26.70 16.00 4.5944 Social Benefits for Low-income Families 3.42 6.00 0.6677 Poor 3.64 8.00 0.8212 Non-poor 3.20 4.00 0.5506 Social Benefits for Families with Children Aged 2-18 2.27 6.00 0.4431 Poor 3.80 10.00 0.8573 Non-poor 0.74 2.00 0.1273 Social Benefits for Families with Children Aged under 2 2.95 4.00 0.5759 Poor 2.90 4.00 0.6542 Non-poor 3.00 4.00 0.5162 Other Social Security Benefits 0.30 1.00 0.0585 Poor 0.60 2.00 0.1353 Non-poor 0.00 0.00 0.0000 Remittances sent from abroad 39.50 16.00 7.7119 Poor 45.00 20.00 10.1525 Non-poor 34.00 12.00 5.8505 Other Income 1.00 1.00 0.1952 Poor 0.00 0.00 0.0000 Non-poor 2.00 2.00 0.3441 Source: Household survey, July 2010

IKS GROUP OF COMPANIES 85 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 24. Average Weighted Structure of Expenditures of the Poor and Non-Poor Households in Khorezm region Average Total Percentage of Percentage in Expenditures, Households Having Total 000’s SUM such Expenditures Expenditures Foodstuffs 96 100.00 48.2330 Poor 229.84 100.00 52.7930 Non-poor 268.60 100.00 44.9133 Clothes & Footwear 57.83 93.00 11.1921 Poor 44.62 88.00 10.2489 Non-poor 71.04 98.00 11.8788 House maintenance and utilities 35.20 100.00 6.8124 Poor 30.70 100.00 7.0516 Non-poor 39.70 100.00 6.6383 Payment for Education 1.42 4.00 0.2748 Poor 2.14 4.00 0.4915 Non-poor 0.70 4.00 0.1170 Payment for Healthcare 25.76 80.00 4.9854 Poor 23.88 82.00 5.4851 Non-poor 27.64 78.00 4.6217 Expenditures for Transport (including 63.00 89.00 12.1937 fuel) Poor 38.40 90.00 8.8202 Non-poor 87.61 88.00 14.6495 Expenditures for Durable goods (such as 28.18 46.00 5.4538 furniture) Poor 21.56 42.00 4.9522 Non-poor 34.80 50.00 5.8190 Savings 38.46 87.00 7.4443 Poor 33.78 86.00 7.7590 Non-poor 43.15 88.00 7.2152 Other expenditures 17.62 41.00 3.4101 Poor 10.44 36.00 2.3980 Non-poor 24.80 46.00 4.1468 Source: Household survey, July 2010

IKS GROUP OF COMPANIES 86 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 25. Average Weighted Structure of Income of Poor and Non-poor Households in Gazly town in June 2010 Average Total Percentage of Households Contribution to Total Income, 000’s SUM Receiving such Income, % Household Income, % Income from Marketing Own Agricultural Products 9.00 13.33 1.7669

Poor 5.00 10.00 1.0986 Non-poor 11.00 15.00 2.0503 Income from Non-agricultural Entrepreneurial Activities 5.00 3.33 0.9816 Poor 0.00 0.00 0.0000 Non-poor 7.50 5.00 1.3979 Income from Hired Employment in the Non-agricultural Sector 418.00 90.00 82.0626 Poor 389.00 100.00 85.4757 Non-poor 432.50 85.00 80.6150 Income from Hired Employment in the Agricultural Sector 0.00 0.00 0.0000 Poor 0.00 0.00 0.0000 Non-poor 0.00 0.00 0.0000 Old-Age Pensions 41.50 23.33 8.1473 Poor 45.50 30.00 9.9978 Non-poor 39.50 20.00 7.3625 Disability Pensions and Benefits 10.66 6.66 2.0941 Poor 0.00 0.00 0.0000 Non-poor 16.00 10.00 2.9822 Social Benefits for Low-income Families 1.86 3.33 0.3664 Poor 5.60 10.00 1.2304 Non-poor 0.00 0.00 0.0000 Social Benefits for Families with Children Aged 2-18 3.33 3.33 0.6544 Poor 10.00 10.00 2.1973 Non-poor 0.00 0.00 0.0000 Social Benefits for Families with Children Aged under 2 0.00 0.00 0.0000 Poor 0.00 0.00 0.0000 Non-poor 0.00 0.00 0.0000 Other Social Security Benefits 6.66 3.33 1.3088 Poor 0.00 0.00 0.0000 Non-poor 10.00 5.00 1.8639 Remittances sent from abroad 3.33 3.33 0.6544 Poor 0.00 0.00 0.0000 Non-poor 5.00 5.00 0.9319 Other Income 10.00 3.33 1.9632 Poor 0.00 0.00 0.0000 Non-poor 15.00 5.00 2.7958 Source: Household survey, 2010

IKS GROUP OF COMPANIES 87 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 26. Average Weighted Structure of Expenditures of the Poor and Non-Poor Households in Gazly town in June 2010 Average Total Percentage of Percentage in Expenditures, Households Having Total 000’s SUM such Expenditures Expenditures Foodstuffs 141.16 100.00 48.4165 Poor 160.50 100.00 60.7264 Non-poor 131.50 100.00 43.0865 Clothes & Footwear 46.00 76.66 15.7768 Poor 40.50 70.00 15.3234 Non-poor 48.75 80.00 15.9731 House maintenance and utilities 17.46 63.33 5.9906 Poor 14.80 60.00 5.5996 Non-poor 18.80 65.00 6.1598 Payment for Education 6.00 6.66 2.0578 Poor 15.00 10.00 5.6753 Non-poor 1.50 5.00 0.4914 Payment for Healthcare 10.66 23.33 3.6583 Poor 18.50 30.00 6.9996 Non-poor 6.75 20.00 2.2116 Expenditures for Transport (including 4.66 20.00 1.6005 fuel) Poor 0.00 0.00 0.0000 Non-poor 7.00 30.00 2.2935 Expenditures for Durable goods (such as 26.66 3.33 9.146 furniture) Poor 0.00 0.00 0.00 Non-poor 40 5.00 13.10 Savings 20.50 10.00 7.0309 Poor 1.50 10.00 0.5675 Non-poor 30.00 10.00 9.8296 Other expenditures 18.43 30.00 6.3221 Poor 13.50 30.00 5.1078 Non-poor 20.90 30.00 6.8479 Source: Household survey, July 2010

Table 27. Education Indicators for Household Members in Gazly town Gazly Town Total Poor Non-poor Household Heads, % No Education 0.00 0.00 0.00 Incomplete Secondary Education (7-9 Forms) 6.66 10.00 5.00 Complete Secondary Education (10-11 Forms) 20.00 20.00 20.00 Secondary Vocational Educations 53.33 40.00 60.00 Higher Education 20.00 30.00 15.00 Students 0.00 0.00 0.00 Source: Household survey, June 2010

IKS GROUP OF COMPANIES 88 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 28. Economic Activity and Employment Indicators of Household Members in Gazly town as % of Employable-age Household Members Gazly City Total Poor Non-poor Economically Active 78.94 60.71 89.58 Employed 69.73 53.57 79.17 Hired in Non-Agricultural Sector 67.10 53.57 75.00 In State-budget-funded Organizations 57.89 50.00 62.50 Entrepreneurs 2.63 0.00 4.16 Temporary and Seasonal Workers 1.31 0.00 2.08 Agricultural Workers 0.00 0.00 0.00 Unemployed 9.21 7.14 10.41 Economically Inactive 21.06 39.28 10.41 Students 2.63 0.00 4.16 Pensioners and People with Disabilities 3.26 7.14 0.00 Neither Work, Nor Look for a Job 15.78 32.14 6.25 Source: Household survey, 2010

Table 29. Average spending by destinations by the members of household in Gazly town (In%). Gazly Average money spent Average time spent Destination Average length (one way - km) (each time one way - (one way - minutes) SUM) School 0.82 15.80 0 College 54.03 85.00 2833.33 Polyclinics 0.85 14.93 0 Hospital 0.90 14.80 0 Work 15.45 29.86 2750.00 Market 1.13 17.18 0 Other 0 0 0 Source: Household survey, 2010

Table 30. Profile of Household Heads by Ethnic Origin in Gazly town as % of sample size Other CA Other Uzbek Kazakh Ethnicities Ethnicities Poverty Rate 10.25 6.32 0 16.66 Family Size 4.87 3.95 6.0 Children under 16 years of age 30.76 21.51 0 33.33 Heads of Family who Have Not Completed School 00 0 0 Education Heads of Family who Have Secondary Vocational 50.00 60.00 100 100 Education Heads of Family who Have Higher Education 37.50 15.00 Heads of Family who Are Entrepreneurs 12.50 0 Unemployed Heads of Family 0 5.00 5.00 100 Source: Household Survey, July 2010

IKS GROUP OF COMPANIES 89 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 31. Differences between the female and male headed households in Gazly town Women Men Share of households with unemployed 0.00 4.54 houshold heads Share of the households with entrepreneur 12.50 0.00 househol heads Share of households with houshold heads with 0.00 0.00 no education Share of households with houshold heads with 12.50 22.72 higher education Share of households with houshold heads with 50.00 54.54 secondary special and professional education Share of children under 16 26.92 23.30 Share of the households with household head 62.50 77.27 in employment age Household size 3.25 4.68 Average monthly income (000 SUM) 126.76 116.35 Poverty rate 25.00 36.36 Source: Household Survey, July 2010

Table 32. Profiles of Households Headed by Women and by Men in Gazly town Women Men Poverty Rate, % 25.00 36.36 Average Per Capita Monthly Income, 000’s SUM 126.76 116.35 Household Size, Persons 3.25 4.68 Children Under 16 years of Age, % 26.92 23.30 Heads of Households who Have Secondary Vocational Education, % 87.50 77.27 Heads of Households who have Higher Education, % 12.50 22.72 Employed Heads of Households of Employable Age and Older, % 62.50 77.27 Unemployed Heads of Households of Employable Age and Older, % 37.50 22.72 Households’ Heads in Employable Age and Older, Who Are Entrepreneurs, % 12.50 0.00 Source: Household Survey, 2010

Table 33. Employment Status of Employable-Aged Respondents by Gender in Gazly town as % of employable-age gender groups Women Men Economic Activity Rate 68.57 87.17 Unemployed (including Officially Registered) 11.42 7.69 Employment in State-Budget-Funded Sector 48.57 69.23 Hired Employment in Non-agricultural Sectors 54.28 76.92 Employment in Agricultural Sector 0.00 0.00 Temporary or Seasonal Workers 2.85 0.00 Entrepreneurs 2.85 2.56 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 90 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 34. Lengths and types of roads in Beruniy, Ellikkala and Turtkul districts Beruniy district Type of pavement (in km) Category Total Length Number of Type of road Asphalt Road-mix (in km) II III IV V Bridges pavement pavement International roads 60 60 - 60 - - - 9 Republican roads 46 9 37 9 13 24 - 8 Regional roads 128 - 128 - 60 68 - 32 Local roads 158 7 151 29 129 - - 28 Total 392 76 316 98 202 92 - 77 Ellikkala district Type of pavement (in km) Category Total Length Number of Type of road Asphalt Road-mix (in km) II III IV V Bridges pavement pavement International roads 15 10 5 15 - - - 4 Republican roads 47 3 44 2 39 6 - 8 Regional roads 30 1 29 - - - 30 8 Local roads 207 18 189 - 36 160 11 27 Total 299 32 267 17 75 166 41 47 Turtkul district Type of pavement (in km) Category Total Length Number of Type of road Asphalt Road-mix (in km) II III IV V Bridges pavement pavement Regional roads 49 1 48 - 1 42 6 9 Local roads 175 4 167 - 28 146 1 28 Total 224 5 215 - 29 188 7 37 Source: Uzavtoyul, January 2010

IKS GROUP OF COMPANIES 91 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

List of attendees and summaries of the Focus Group Discussion Uzbekistan: CAREC Corridor 2 Road Investment Program Beruniy and Ellikkala Districts August 3, 2010 List of participants In-depth/Structured interviews Name Organization/position Contacts (phone/address) 1 Ashirov D. Chief accountant at Ashirov farm Sarkop Mahalla 524-85-58 2 Dashanova N.S. Referent of Uzb. NDP Bakhodirhon kv 102- 4 3 Hojamurodov O. Deputy Hokim of Beruniy district Hietobod mahalla Kurbonbabaeva 4 Specialist of Kamolot Alpomish, 54 / 524-26-80 Nasiba 5 Kuchkorov O. Beruniy Tehgorpark Ozod str, 298 75 78 6 Rahimov Shavkat Rahimbobo farm Sarkop mahalla 7 Reymova Lida Consultant at Ibn Sino Mahalla Committee G.Gulyam, 71 8 Abdurakhmonov Umar Ellikala district Architecture department Buston Nurimbekov str, 36 9 Isamiddinov Bazarboy Head of Ellikala SZIKN Toshkent str. 37, Buston city 10 Rozigimova Hurshida Consultant at mahalla Akchakul mahalla 11 Jumaniyazova Roza Consultant at mahalla Buston U.Abdulla 2 12 Abdurakhmonova S. Specialist Buston A.Navoyi 32 13 Jarlekanov S. Sarkop farmer Beruniy Sarkop 14 Matchanov S. Head of mahalla community Beruniy district 15 Atajanov M. Deputy director of professional college Elikalla district 16 Abdurakhmanov O. Teacher at college Buston Abdulla str, 16 17 Seyulaev Sentarbey Master at college Buston Mukimiy, 13 18 Shiribaev Murod Head of department at college Ellikala mahalla 19 Primov Aibek Teacher at college Buston Rashidov str Jumanazarov Specialist at the registration bureau of 20 Buston Kishchinok Abdurakhmon businessmen inspection Matyakubova 21 Doctor, Beruniy DSENT Beruniy Sirdaryo str, 7 Gulchekhra 22 Koklonov Bakhrom Driver of Buston Transport Services Beruniy 201/2 23 Masharinov Imam Director of Pahtachi Farm Beruniy Sarkenofi br. 12 24 Uysupov Gulimboy Volunteer at mahalla assembly of citizens Sh.Hakikat 12 Volunteer at Horazm mahalla assembly of 25 Ibragimov Farkhad Kam 9/6 citizens 26 Sutlimurodov Urazmat DSENM Specialist Guliston makhallya 27 Matchanov Otaboy Head of Environment Department Jumaniyazov mahalla 28 Yangibaev Kuchkar Secretary of mahalla committee Mevazor 29 Doschanov Azamat Secretary of Navoiy mahalla committee Berdak, 1 30 Sanarov Hursand Buston specialist of land resources Ellikala district 31 Sadullaeva Hamida Secretary of mahalla committee Ozod 10/1 32 Ernazarov Salim Volunteer at A.Temur mahalla Rashanov 54 Bekmambetov 33 Secretary of mahalla committee Duschanov 17 Shamsiddin 34 Arbinov Kahramon Secretary of mahalla committee Masharipov tupic 35 Ravshanova Dilbar Doctor, DSENM Shabbaz 8 36 Ischanov Maksud Volunteer at Markaziy mahalla committee Navoiy 16 37 Maytupoev Maksud Secretary of mahalla committee Ellikala district 38 Madamonov Bakhadir Head of Vodokanal Kurbonov 2/8 39 Masharipov Bakhodir Ovul assembly of citizens Shobbos OAC 40 Babodjonov Mashmat R.Ravshanov 41 Jumaboev Karimboy Beruniy 38 42 Saidkomolov Sulton Oromgoh 27 43 Nurimov Haytboy Ishchilar 5 44 Rashokopv Maksud Hietobod 45 Hujamurotov Ihlos Hietobod 46 Yuldosheva Oypara Jumaniyazov 49 Head of economic department of district 47 Madjanov Ravshan Uchkun 10 Hokimiyat 48 Saparbaeva M Consultant of mahalla committee Navoiy mahalla

IKS GROUP OF COMPANIES 92 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

49 Olimov Utkurbek Entrepreneur Buston city 50 Narbaev Ulugbek Saribiy mahalla 51 Majanov Umid Teacher of school #25 Saribiy mahalla 52 Majanov Pulat Teacher of 2 school Saribiy mahalla Abdullaev 53 Head of electricity department Makhtumkuli 17 Egambergen 54 Yarakeev Komiljon Beruniy RUAD Ozod mahalla

IKS GROUP OF COMPANIES 93 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Turtkul District August 4, 2010 List of participants In-depth/Structured interviews Name Organization/position Contact (phone/address) 1 Bekturdieva N Office manager Parmonov, 22 2 Todjiev Davron Specialist of inspection Str Galaba 14 3 Razzakov Zafarbek Head of mahalla committee Kirkiz kattapul 4 Hudayberdiev G Head of Keltemir mahalla Ya.Ilamakov 5 Sharipov Pirnapas Teacher of school 43 Shurakhat 6 Ramanov Ismail Fond of Nuroniy 532 27 79 7 Khudoybergenov Sattor Djalaproekt Mustakillik 65 8 Aknazarov Oybek Chief specialist at KRMHHKJF Rashidov str 9 Uyldashev Rozum Teacher at high school Radjapov 10 533- 11-80 10 Uyldashev Umid Inspector of electricity department Radjapov 11 Latipova Guzal District HDP Gagarin 138 12 Razzakov Egamberdi Shurhokhon mahalla 13 Unusova Kurbonbibi Specialist of department Nazarov k. 47 14 Cherepaeva Nadejda District Hokimiyat Kurbanov, 50 15 Uysupov Madier Specialist of avtotehhizmat Nukus 20/2 16 Kurbanbaev Turtkul Bektemir Galaba 32 17 Atamurodov Alisher Anvar Transport company LTD Niyazenbekov 39 18 Uynusov Azamat City department of architecture Saidov 14 19 Shoistov Isobek District hokimiyat Pahtachi mahalla 20 Boltaev Jumaboy Head of Akbashli mahalla 21 Jiyanbaev Shukhrat District inspection Ayni 11 22 Khudaybergenov Alimboy District inspection Gulyam 5 23 Khasanov Ravshan District inspection Boltabaev 56 24 Babaniyazova Shahlo District head of Kamolot – youth movement Setnizov 13 25 Turumbetov Mahsit Accountant at college Durdiev 41 26 Abaev Mardon Teacher Kirk shosse 8 27 Kadirov Anvar Turtkul farmer Buza bugon 28 Matnazarov Umid District Hokimiyat 29 Allaberdiev Mukhtar Head of Miskin mahalla Akkamish OAC 30 Ashirov Kurbonturdi Miskin makhalla Akkamish OAC 31 Matchanov Shavkat Miskin makhalla Akkamish OAC 32 Avezmatov kholmurad Miskin makhalla Akkamish OAC 33 Soyliev Sardor Miskin makhalla Akkamish OAC 34 Muratov hokim District hokimiyat Turtkul 35 Masharipov U. Television 36 Sultanova Nasiba Director of kindergatern 6 37 Karimova Uylduz Director of kindergatern 2 38 Uyldasheva M. Director of kindergatern 29 39 Radjanbaeva Umida Director of kindergatern 4 40 Matyakubova Gulnora Director of kindergatern 3 41 Khallieva R. Director of Nukusotil farm 42 Soburov Islom Turtkul director of THPGFDK Specialist of economic department, district 43 Kurbanov K. hokimiyat 44 A.Sultanov 45 Allabergenov R. Deputy of hokim, district hokimiyat 46 Bekchanov Sh. Specialist at the department of land resources 47 Isamadinov B. Specialist at cadastre department Head of Architecture committee of 48 Utegenov K. Karakalpakstan AR 49 Aykubov Sh. Republican Road Fund 50 Karimov T. ADB consultant 51 Nuhollieva T. Head of mahalla committee 52 Jurabek H. Agro firm 796 25 56

IKS GROUP OF COMPANIES 94 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Summary of the In-depth interviews

In Beruniy and Ellikkala districts

Topic: "CAREC Corridor 2 Road Investment Program".

Date: August 3, 2010

Place: Beruniy Hokimiyat

Facilitators: M.Bakhadirov and M.Shagazatova

Facilitator, M.Bakhadirov, opened the meeting and informed meeting’ participants about the project objectives and purpose of the meeting. He informed major stakeholder representatives about the population surveys that were conducted to examine the socio-economic situation of in the district and the problems that arise for people due to the poor quality of the roads.

The purpose of meeting and interviews was:

The following priorities for the Investments were identified through the group works and discussions:

Priority (in terms of Areas of investment in water supply and sanitation number of votes) 1 Rehabilitation of existing road 25 2 Construction of new roads 25 Improvement of facilities of bus stations and bus stops 3 12 for passengers 4 Increased frequency of public transport means 9 Improvement of public transport coverage/betther 5 3 routes 6 Improvement of road maintenance services 10 7 Improvement of road safety and security measures 26 8 Reduced Carbon emission 5

Amongst these, three key issues were identified by the participants as of the highest priority:

Improvement of road safety and security measures Rehabilitation of existing roads

IKS GROUP OF COMPANIES 95 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Construction of new roads.

Then, all meeting participants were divided into the major stakeholders groups.

Following groups were established:

Group 1 – Representatives of Mahalla Committees and their residents

Group 2 – Representatives of Social Infrastructure Organizations.

Group 3 – Representatives of Local Government

Group 4 – Representatives of SME and Farmers

Group 5 – Specialists of Uzavtoyul

Followed by discussions each group presented its findings:

Team 1(Mahallas)

Issues:

Causes:

Effects:

Z Increased number of traffic accidents. Z Deterioration of the soil. Z Increased travel time. Z Worsening of the ecological situation alongside the road.

IKS GROUP OF COMPANIES 96 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Team 2 (Local Governance)

Problems:

Cause:

Effect:

Z The increase number of traffic accidents and injuries Z Quality and productivity of the land alongside of the road are considerably affected

TEAM 3 (Education sector and Health)

Issues:

Causes:

Z Lack of the proper control on the road safety and traffic security measures.

Effects:

TEAM 4 (Farmers and SME)

Problems:

Z Safety of the roads and transport means.

IKS GROUP OF COMPANIES 97 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Local roads which provide access to the National and International roads are in bad conditions. Z Absence of the medical services, providing first aid, along the road.

Causes:

Effects:

Z High risk of the road accidents and injuries Z Damage of transport means and high costs of the maintenace

TEAM 5 (Representatives of Road Maintenance organizations)

Problems:

Z Lack of the Gasoline Stations along the new and existing roads. Z Lack of Funds for the proper maintenance of the roads Z Road deterioration before the due date

Causes:

Z Squatter development of the open water collectors along the roads, which is significantly deteriorating the road quality.

Effects:

Z Deterioration of the roads which require more often maintenance procedures and results in overspending of the financial resources.

PROPOSALS:

Local Governance group:

IKS GROUP OF COMPANIES 98 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Mahalla group proposals:

Education and Health group:

Proposals of representatives of Road Maintenance organizations:

IKS GROUP OF COMPANIES 99 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Summary of the In-depth interviews

In Beruniy and Ellikkala districts

Topic: "CAREC Corridor 2 Road Investment Program".

Date: August 4, 2010

Place: Turtkul district hokimiyat

Facilitators: M.Bakhadirov and M.Shagazatova

Observer: N.Nurmukhamedov

The purpose of meeting and Interviews was:

The following priorities for the Investments were identified through the group works and discussions:

Priority (in terms of Areas of investment in water supply and sanitation number of votes) 1 Rehabilitation of existing road 6 2 Construction of new roads 39 Improvement of facilities of bus stations and bus stops 39 3 for passengers 4 Increased frequency of public transport means 21 Improvement of public transport coverage/betther 6 5 routes 6 Improvement of road maintenance services 42 7 Improvement of road safety and security measures 33 Reduced Carbon emission 21 8

IKS GROUP OF COMPANIES 100 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Top three issues raised by the participants were:

Improvement of road maintenance services Improvement of facilities of bus stations and bus stops for passengers Construction of new roads

All meeting participants were then divided into the major stakeholders groups.

Groups were established were as follows:

Group 1 – representatives of the Mahalla Committees, and their residents

Group 2 – Representatives of Local Government

Group 3– Representatives of Social Infrastructure Organizations.

Group 4 – Specialists of Avtoyul and other road maintenance organizations

Group 5 – Representatives of youth movements, NGOs

Following issues, their likely causes and the possible outcomes were presented by the groups:

Team 1 (Mahallas)

Issues:

Causes:

IKS GROUP OF COMPANIES 101 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Effects:

Team 2 (Local Governance)

Issues:

Causes:

Effects:

TEAM 3 (Education sector and Healthcare)

Issues:

Causes:

Z Lack of the proper control of road safety and traffic security measures. Z Limited development of the road Infrastructure.

Effects:

Z Increased risk of the injuries and traffic accidents.

IKS GROUP OF COMPANIES 102 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Due to the lack of the proper sidewalks, children have to walking on the road and under the risk of being injured. Z The lack of the water decreases the opportunities for planting and watering trees and the development of business.

TEAM 4 (Representatives of Road Maintenance organizations)

Issues:

Causes:

Effects:

GROUP 5 (Representatives of NGOs)

Issues:

Causes:

Effect:

Z Any stops on road, whether by transport means or other forces, can block it to traffic. Z There are no almost no separate lanes specially designed for pedestrials.

IKS GROUP OF COMPANIES 103 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Z Road users whether passenger or the drivers as well as the pedestrials are vulnerable to the risk of having traffic accidents.

PROPOSALS:

Local Governance:

Mahalla proposal:

Education and Health group proposals:

Road maintenance and administration group proposals:

Non-governmental Organizations group proposals:

Increase public awareness among the population via organization of workshops, and seminars. In addition to the rehabilitation of the road, simultaneously develop the lanes for pedestrians

Creation of parking slots for cars, especially nearby the stations and food serving establishments.

IKS GROUP OF COMPANIES 104 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

ANNEX III Maps of the sub-project area

Map1. Karakalpakstan AR by districts

IKS GROUP OF COMPANIES 105 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Map 2. Beruniy district of Karakalpakstan AR by assemblies of citizens

IKS GROUP OF COMPANIES 106 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Map 3. Ellikkala district of Karakalpakstan AR by assemblies of citizens

IKS GROUP OF COMPANIES 107 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Map 4. Turtkul district of Karakalpakstan AR by assemblies of citizens

IKS GROUP OF COMPANIES 108 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

GENDER ACTION PLAN Project 2: Km 355 – Km 440 Project 3.1: Km 315 – Km 355 Project 3.2: Km 581 – Km 628

Gender Analysis and Action Plan Document stage: Final Project Number: TA 7375-UZB

October 2010 ver.6

UZBEKISTAN: CAREC Corridor 2 Road Investment Program

Prepared by the Uzbekistan Republican Road Fund under the Ministry of Finance of Uzbekistan for the Asian Development Bank (ADB).

This Gender Action Plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, management, or staff, and may be preliminary in nature.

IKS GROUP OF COMPANIES 1TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

CONTENTS

ABBREVIATIONS...... 3 I. BACKGROUND AND ANALYSIS ...... 5 A. Gender Analysis ...... 5 B. Anticipated Project impacts on Women...... 10 II. GENDER ACTION PLAN...... 11

IKS GROUP OF COMPANIES 2TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Abbreviations

ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome CAREC Central Asia Regional Economic Cooperation CoM Council of Ministers CSS Country Safeguard System EA Executing Agency EMA External Monitoring Agency EMP Ethnic Minority Plan (See IPP) FGD Focus Group Discussions GAP Gender Action Plan GFP Grievance Focal Point GRC Grievance Redress Committee HH Households HIV Human Immunodeficiency Virus IA Implementing Agency IMA Internal Monitoring Agency ISA Initial Social Assessment Km Kilometer MFF Multi-Tranche Financing Facility PMU Project Management Unit PSA Poverty & Socio-Economic Assessment RRF / RF Republican Road Fund under Ministry of Finance of Uzbekistan RU Republic of Uzbekistan SES Socio-Economic Survey SPS Safeguard Policy Statement TA Technical Assistance USD United States Dollar Uzbekistan Republic of Uzbekistan

IKS GROUP OF COMPANIES 3TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Glossary of terms

Khokim Governor of oblast; head of a rayon and city administration

Khokimyiat Centre of the oblast or rayon government administration

Kutcha/guzar Street/quarter elders (men or women), volunteers selected by the aksakal/Boshi community and the makhalla committee to represent the community of a street (in urban types of settlements) or of a quarter (in rural types of settlements).

Kutcha kayvona Women volunteers selected by the community and makhalla committee to represent women on women related issues

Local self- Governmental institutions at the local level including RAC and government makhalla committees

Makhalla Makhalla is neighborhood of HHs. One makhalla can also encompass several small rural settlements. One larger settlement (such as rayon centre) is usually divided in to several makhallas

Maslakhatchi Maslakhatchi = Adviser (female); one of the 4 staff of the makhalla committee. Her superior is the Chairperson of the makhalla committee. She reports (usually on a weekly basis) to the rayon Chairperson, Women’s Committee of the Republic of Uzbekistan - the Deputy Khokim for Women Affairs in the khokimyiat

IKS GROUP OF COMPANIES 4TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

BACKGROUND AND ANALYSIS

1. This draft outline of the Gender Action Plan has been prepared in accordance with the Handbook on Poverty and Social Analysis, Asian Development Bank, December 2001, the ADB’s Gender Checklist: Resettlement / Urban Infrastructure and is based largely on findings from the Initial Poverty and Social Assessment (IPSA) and the Poverty & Socio-economic Analysis (PSA) carried out in the Project area on a sample of households (HHs) by the project team in July 2010. All statistical data is based on information obtained from the surveyed HHs sample. Findings from the survey have been complemented by available secondary data and information from stakeholder consultations by the TA social team.

2. Women are often the most vulnerable inhabitants in project areas. The project design needs to account for the fact that women and men differ in their roles, needs, and perceptions regarding infrastructure developments – particularly roads. Conscious efforts to address their views lead to better project design and performance. Focusing on gender has multiplier effects. Well-developed infrastructure can provide women with more time, leading to increased production. It can ensure that boys and girls are more able to attend schools and lead to inter-generational improvements in household income and livelihood.

3. The total number of females in the project area 3.2 is 231,776, of which approximately 30% live in urban and 70% in rural settlements. In project 2 and 3.1 the total number of females is 58,300, of which about 18% live in urban and 82% in rural settlements. The percentages of female-headed households are 22.7% and 26.6% of the surveyed households in Project 3.2 and Project 2/3.1 respectively.

4. The beneficiaries of project 2 and 3.1 – from Gazli and through the desert – include the population along the road, who will benefit greatly from improved access. Conversely, the population along the Project 3.2 road section will have fewer transportation benefits, as the road is designed as a bypass of their local community centers. Their economic benefits may increase due to their ability to market products and improve businesses.

5. The following description will summarize the data in two blocks – Project 3.2 (the Turtkul Bypass) and Project 2/3.1 (the Gazli and desert highway sections). This is mainly due to the different nature of the project groupings.

A. Gender Analysis

1. Project 3.2 – Turtkul Bypass

6. The total number of women in Beruniy district is 78,800 (49.5% of total population), 65,900 (50.7% of total population) in Ellikkala districts and 87,000 (49.6% of total population) in Turtkul district. According to the survey results, women to men ratio is 0.91 in Beruniy district; 1.05 in Ellikkala and 0.89 in Turtkul.

7. Of those who responded that they visited hospitals and polyclinics at least once within last year, a majority indicated that they use public transport. However, the response varied across different gender groups. In Beruniy, 68.18 % of women reported that they use public transport to reach hospitals compared to 70% of men and 60 % of youth under 16. Ellikkala figures are less distinct regarding public transport, and are spread more evenly between public transport and private car options to reach medical institutions.

8. The survey revealed the majority of drivers in the sub-projects area are men. During the interview, the majority expressed their concerns about the quality of the road and how it affects the speed of the traffic. At the same time, the PSA reports the lack of traffic signs

IKS GROUP OF COMPANIES 5TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT along the road also significantly affect road traffic safety. According to research and publicly available data, the most common reasons of the traffic accidents are over-speeding and driving while intoxicated.

9. When asked about general and public transport use, the majority of respondent in all three districts replied that it is men who use the transport more often compared to women (86% in Turtkul, 80.2% in Ellikkala and 56% in Beruniy districts). Only 2.5% in Beruniy and less than 1% of households surveyed in Ellikkala responded that females use public transport more often than males do. Trips by children were mainly reported as usually accompanied by men. Structured and in-depth interviews revealed that this was mainly due to a lack of sanitary facilities at bus-stops and along the roads. This affected both women and children, especially those who need to travel longer distances in order to reach colleges and Higher Education Institutions.

Table 1. Gender composition of transport use by household members (%) Users Beruniy Ellikkala Turtkul All use equally 14.50 2.97 3.00 Men use more often than women 56.00 80.19 86.00 Women use more often than men 2.50 0.99 0.00 Children (all under 16) use more often 0.00 0.00 0.00 Women and children use more often 0.00 0.49 0.00 Men and children use more often 26.50 15.34 11.00 Source: Household Survey, 2010

10. Gender differences exist not only between household heads, but also between gender groups in general. These differences lay mainly within education and employment indicators. Education levels, particularly of higher education, of women are lower compared with those of men; and this difference is considerably higher in Beruniy and Ellikkala districts. Lower level of education creates significant disadvantage in the labor market and are reflected in further indicators especially in the level of income earned (Table 2). The level of entrepreneur households’ heads are higher as well amongst the men; in Turtkul 10.71% of male headed households are entrepreneurs in comparison to only 4.16 of female headed households. Among the surveyed respondents, no female-headed households, who are also entrepreneur, was found.

Table 2. Differences between the female and male headed households (%) Beruniy Ellikkala Turtkul

Women Men Women Men Women Men Heads of Households who have Not 0.00 0.57 14.70 0.59 3.44 0.58 Completed School Education, % Heads of Households who have 16.00 30.45 11.76 29.16 13.79 13.45 Higher Education, % Unemployed Heads of Households of 4 1.17 51.51 24.69 58.33 35.71 Employable Age and Older, % Household Size, Persons 5.41 6.58 4.64 5.58 5.58 6.18 Poverty Rate, % 28.00 26.43 44.11 55.35 55.17 60.81 Source: Household Survey, 2010

11. In Ellikkala and Turtkul districts education indicators are higher for men, however, the situation in Beruniy is quite opposite. In all three districts, the share of men having higher education degree exceed the share of women. In Beruniy, 16.33% of women have higher

IKS GROUP OF COMPANIES 6TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT education, compared to 22.22% men. Figures for Ellikkala (10.3% and 16.2%) and Turtkul (5% and 9.8%) are considerably lower.

Table 3. Education level indicators of men and women groups (%). Beruniy Ellikkala Turtkul Women Men Women Men Women Men 0.57 0.26 1.94 0.29 1.25 0.22 No education 27.50 26.45 35.37 28.31 33.25 25.78 Basic education 45.84 44.17 39.27 43.06 46.75 54.03 Vocational education 16.33 22.22 10.30 16.22 5.00 9.86 Higher education Source: Household Survey, June 2010 12. The level of awareness about women’s role and the need to involve them in decision making processes for infrastructure development activities is still relatively low in the region. Women are under-represented in the RRF, especially at the decision making level. Among eight departments and 2 sections in the organizational structure of the RRF only HR management is lead by a woman.

Table 4. Gender composition of transport use by passengers and household members (%) Users Passengers All members of the household use equally 21.62 Men use more often than women 53.37 Women use more often than men 2.02 Children (all under 16) use more often 1.35 Women and children use more often 0.00 Men and children use more often 21.62 Source: Passengers’ Survey, July 2010 2. Project 2 & 3.1 – Gazli

13. According to the official statistics provided by Romitan district and Gazly town Khokimyats, the total number of females in Gazly town is approximately 3,280 (51.25% of the total population). According to the survey results, the percentage of female-headed households is 26.6 %.

14. Differences in income and rate of poverty between female-headed households and male- headed households are noticeable, with the higher poverty rate among the male-headed households (25% and 36.36% percents respectively). Average per capita income for female and male- headed households are respectively equal to 126,760 sum and 116,350 sum. A female-headed household is smaller, but they have more “children under 16” - 26.92% for female headed households compared to 23.30% for men.

IKS GROUP OF COMPANIES 7TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Table 5. Differences between the female and male headed households in Gazly town Women Men Share of households with unemployed 0.00 4.54 household heads Share of the households with entrepreneur 12.50 0.00 household heads Share of households with household heads 12.50 22.72 with higher education Share of children under 16 26.92 23.30 Household size (persons) 3.25 4.68 Average monthly income (000’s sum) 126.76 116.35 Poverty rate (%) 25.00 36.36 Source: Household Survey, July 2010 15. The percentage of the household’s head with higher education is lower for female headed household, compared to those of men. A similar situation exists for secondary and vocational education. The share of entrepreneurs (mostly unregistered) among working female household heads, is about 12.50% (Table 6).

Table 6. Profiles of Households Headed by Women and by Men in Gazly town. Women Men Poverty Rate, % 25.00 36.36 Average Per Capita Monthly Income, 000’s sum 126.76 116.35 Household Size, Persons 3.25 4.68 Children Under 16 years of Age, % 26.92 23.30 Heads of Households who Have Secondary Vocational Education, % 87.50 77.27 Heads of Households who have Higher Education, % 12.50 22.72 Unemployed Heads of Households of Employable Age and Older, % 37.50 22.72 Source: Household Survey, 2010

16. Gender differences exist not only between household heads, but also between gender groups in general. These differences are mainly in education and employment indicators. Education levels of women are lower compared with those of men at higher educational levels; which gives a considerable advantage in the labour market. This affects female employability. One of the positive tendencies identified during the households survey is that 22.2% of women are continuing their education (Table 7).

Table 7 Education Indicators for Women and Men Above 18 Years of Age in Gazly town. as % of gender groups above 18 years of age Women Men No education 4.16 1.75 Incomplete basic education 9.72 8.77 Basic education 8.33 17.54 Vocational education 37.50 45.61 Higher education 4.16 8.77 Continuing education 22.22 12.28 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 8TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

17. The level of economic activity among women of employable age is low not only when compared with men (68%), but also when compared with women who are heads of households. This may be due to a lack of data. 77% of men and 54% of women are hired in in the non-agricultural sectors. Among women, the share of entrepreneurs is about the same than of men, although women are less likely to register their business compared with men (Table 8).

Table 8. Employment Status of Employable-Aged Respondents by ender in Gazly town. as % of employable-age gender groups Women Men Economic Activity Rate 68.57 87.17 Unemployed (including Officially Registered) 11.42 7.69 Hired Employment in Non-agricultural Sectors 54.28 76.92 Employment in Agricultural Sector 0.00 0.00 Entrepreneurs 2.85 2.56 Source: Household Survey, 2010

18. Cultural factors also seem to contribute to the low levels of women’s employment. Women with young children appear to have less employment opportunities and, according to World Bank estimates, in Uzbekistan, each child under 5 years that a woman has, decreases her chances of being employed by 7%.1

19. Judging by the results of the household survey, both female and male-headed households have similar living conditions. Both types of households live in the same types of accommodation, and have similar access to piped water and sewerage systems. Conditions of amenity rooms (kitchen, bathroom and toilet) are also on the same level. In other words, all households, regardless of the gender of the household head, have to deal with the same problems, related to the quality of communal services.

Table 9. Gender composition of transport use by household members in Gazly town (%) Users Gazly town All members of the household use equally 57% Men use more often than women 20% Women use more often than men 20% Children (all under 16) use more often 0% Women and children use more often 0% Men and children use more often 3% Source: Household Survey, 2010

20. Analysis of the household survey results did not indicate any strong correlation between gender and transport use in Gazly town. Analysis of the passenger survey results indicated that 53.3% of the passengers believe that men use transport more often than women. A further 21% stated that men and children use transport more often. However, as was noted during structured interviews and in-depth interviews, the lack of bus-stops and facilities along the road, such as toilets and water taps are significantly affecting travel frequency of women and children.

1 Living Standards Assessment (LSA), World Bank, 2003.

IKS GROUP OF COMPANIES 9TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

21. The majority of the passengers surveyed stated they are using public transport and private cars to reach medical institutions, such as hospitals and polyclinics. 85% of the surveyed passengers believe that improved road will create better opportunities for local business development and 72% stated that it will also expand possibilities for marketing their own agricultural products. About 60% of the passengers using A-380 road think that a reconstructed road will ensure better access for the general public to the healthcare system and educational institutions, especially secondary, special and professional schools and Higher Education establishments.

B. Anticipated Project impacts on Women

22. This section will outline the general impacts faced by women in transport projects across Asia, and then provide an assessment of those risks for the CAREC Project.

23. Improved transportation infrastructure results in greater mobility, particularly for young people and men, and increased travel outside the local area to seek paid work. Outside their village, young women are more vulnerable to sexual exploitation and young men are more likely to become involved in risk-taking behavior. New roads bring more truck drivers through an area that is already hard-to-reach - men who are often missed by HIV interventions. New roads can also increase the trafficking of drugs through previously remote areas, as well as the risk of trafficking in people, both men and women, for their labor, and women and children for sexual exploitation.

24. Overall the project will have a significant positive impact on women because: Improved road infrastructure, availability of the toilets and water on the road site improves quality of the traveling for women and children With the improved road, women will have better access to the central healthcare institutions, and children to the SSPE and HEI Improved international roads stimulate tourism sector development growth, which means more jobs in the service area, which traditionally mostly occupied by women;

25. Overall positive impacts will include: Positive impact to the Regional development, Accident rate on A380 reduced from 150 accidents per year (2008 estimate) to 120 Reduced travel time between the cities along the road Increased gross domestic product in Khorezm from about $800 million (2008 estimate) to $1.6 billion and in Bukhara from about $1.3 billion (2008 estimate) to $2.7 billion Increased external trade with Kazakhstan from about $900 million (2008) to $1.6 billion

IKS GROUP OF COMPANIES 10 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

I. GENDER ACTION PLAN

26. The traditional gender division of labor can be challenged by proactively ensuring women’s involvement in road rehabilitation and maintenance in a culturally sensitive manner. Areas identified for potential involvement of women include support services to construction camps.

27. The RRF will encourage all contractors involved in project implementation to include women in their manual labor force . Providing targeted programs for labor skills transfer will also enable women to have effective access to these employment opportunities. Equal pay will be provided to men and women for work of equal type in accordance with national laws and international treaty obligations, and safe working conditions for both men and women workers will be provided. The RRF will examine methods that can be adopted within its own organisation for positively promoting the placement of women in management and decision making roles.

28. Specific provisions to this effect will be included in the bidding documents. The PMU will be responsible for monitoring the employment targets for women by reviewing periodically the payroll statements of the construction contractors through the engagement of Independent Monitoring Specialist and will reflect progress in achieving the employment targets for women in the project’s progress and completion reports.

29. The PMU will ensure that all civil works contractors engaged under the project participate in the HIV/AIDS prevention and road safety program in the construction campsites that will be funded under the project. Additionally, the PMU will ensure that similar information on the risk of transmission of HIV/AIDS and other sexually transmitted diseases is disseminated to local communities in the corridors of influence, in coordination with national agencies working on this issue. The PMU will include specific provisions to this effect in civil works contracts and will strictly monitor compliance through an Independent Monitoring Specialist.

30. To enhance a positive impact of the project on women and minimize project-related risks for women and children, the Gender Action Plan was developed within the Social Analysis component. It includes the following key components: Inclusion of a local community/social/gender development specialist, who will be hired for 6 months on intermittent basis to facilitate the implementation of the GAP (estimated budget for this is 18 000 USD). Women at all levels will participate in the Project planning process and be the priority subject of information campaigns. Key stakeholders (including RRF) will undergo gender sensitivity training so that they are fully aware of the important roles women play in road construction ensuring increased involvement of women in management and planning, and more sensitive and responsive addressing of issues and relations with female beneficiaries. Sex-disaggregated baseline and end-line information will be collected and monitored at the PMU level and Gender Focal points will be identified at the rayon levels Women will be proactively included in management and monitoring of implementation and be equal partners in solving issues. Guidelines and policy on staffing for PMU and Uzavtoyul will ensure that equal consideration is given to women.

31. The proposed plan is outlined in section 2.

IKS GROUP OF COMPANIES 11 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Activity Target/ Sub-Output Rationale/ Objectives Responsibility Timing Component 1: Social Preparation

Leaders and residents of project area become equipped with the appropriate knowledge, skills and a gender sensitive/responsive attitude that enable them to prevent, detect, intercept, respond to ,or refer cases of STDs,HIV/AIDS, commercial sex workers, human Conduct a series of gender trafficking and other problems that may emerge as a result awareness training of the community’s integration into the CAREC corridor 2 Facilitate people and local government workshops with local leaders road. structures to deal with any negative and community residents of externality of the road project so that EA Q2, 2011 project area prior to the start A gender-sensitive and responsive training module is project benefits hey receive will still of road construction. developed and utilized. outweigh its disadvantages. Each project Number of gender awareness training-workshops held.

Local government plans incorporate measures that mitigate the negative social/gender impacts of the road project.

PMU, oblast and rayon Information campaign about Number of orientation/training-workshops held. Women and men in the project area Kkokimyiats, the project (written informed about the Project and its key mahalla and other materials, local TV and Information and awareness campaigns using local media elements prior the construction start local level newspapers) reaches the women/clients at all levels organizations, Media (TV) Employ Gender-Social/M&E full time specialist in the Clients/women understand and participate in the planning PMU PMU, oblast and During process rayon preparation of Development of the training Kkokimyiats, detailed Clients/women comments and suggestions are reflected in materials and training of Women at all levels participate in the Uzavtoyul, local designs, the plans and designs Project “monitoring groups” Project planning process self-government, starting with > x%* of the Round table participants are women (based at the khokimiyats and at the NGOs, media rayons on the real figures) local self-government foreseen for *Note: The percentage should be agreed and discussed including at least x % (based phase 1. with the EA and PMU on the real figures) women and x% women-

IKS GROUP OF COMPANIES 12 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Activity Target/ Sub-Output Rationale/ Objectives Responsibility Timing chairpersons 2 Quarterly “Round tables” organized by Project “monitoring groups” involving clients and Uzavtoyul, choosing suitable venues and timing to ensure women participation Dy Khokims for Women, Women’s Committees, women NGOs Gender During awareness/sensitization of preparation of PMU, PIU, EA key stakeholders Number of Female Professional staff in PMU, increased by detailed Key stakeholders fully aware of and Uzavtoyul at least XX%, Participation of Female professionals in designs, importance of the roles women play in Records from Qualified women employed Decision Making process (Number of female professional – starting with CAREC corridor 2 road project training sessions in professional positions in chief of departments increased by at least XX% * rayons and “Round table” PMU, PIUs and RRF and foreseen for meetings Uzavtoyul regional branches phase 1. Reviews PMU, PIUs, EA staffing

PIU and Project Starts at the Information desks at “monitoring beginning of makhallas with information groups” supported construction in on: contractor, responsible by selected the respective for supervision, responsible NGOs/training rayon and in Project “monitoring Women participate in management and providers as Women are raising issues and consider them addressed continues groups”, work schedule, monitoring of implementation and are service providers and clarified in satisfactory manner throughout the where to raise issues equal partners in solving issues for training and construction capacity building phase and Capacity building of women of women in after in leadership, M&E, conflict leadership, M&E, completion resolution, legal issues conflict resolution, legal issues

2 The Project monitoring groups at the khokimyiat level to include the deputy khokims for women and construction and others as considered appropriate, with one person mainly responsible. The groups at the local self-government level to include makhalla or RAC chairperson, maslakhatchi, makhalla health worker and other as appropriate, with one person mainly responsible

IKS GROUP OF COMPANIES 13 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Activity Target/ Sub-Output Rationale/ Objectives Responsibility Timing Component 2: Development of the Physical and Social Infrastructure that will Promote Business Opportunities in XXX To comply with the requirement of the Uzbekistan Cabinet of Ministers Decree No.277 on the development of road site Infrastructure Plan a Social Community Complex(SCC) in XXX A building with amenities for a stop-over for travelers using To provide a comfortable resting place for aligned with the Cabinet of the Road is planned and constructed. The facility would tired travelers and drivers, and thereby Ministers Degree No 277 have small scale stalls for local produce, and meeting lessening risks of accidents on the areas for travelers to rest, and local community to use. road. 1 for both project 2 and 3.1 EA Q3, 2011 2 in project 3.2 – one in Small scale support funding for women’s groups to build To allow the local population to earn from Turtkul and one in Ellikkala and maintain (through charges) roadside toilet, water the sale of goods and services to drivers (amongst the poorer facilities. Areas could also include shaded areas suitable and travelers community) for market stalls to sell produce; a combined canteen/magazine/public toilet/shower/Paynet shop. To provide bathroom and rest facilities for women.

To provide a meeting place for impacted residents to conduct community activities

To comply with the requirement of the Uzbekistan Cabinet of Ministers Decree Community Road side No. 277 on the development of road site facilities Infrastructure Development of shade shelter, toilet and water point in key Every 5 km in desert (unless locations. Supported by user charges where possible. To provide comfort for road travelers EA Q3, 2011 provided by a business). Otherwise maintained by community through LG funding. (particularly women). Located near any small community (6 of them in To provide shade, basic services and project 3.2) facilities to men and women in case of breakdown or emergency.

Short seminars for the drivers on the traffic safety. Training of the management staff of car and bus Improve situation with the traffic Conduct road safety companies on the necessary procedures of drivers check accidents on the road, EA, PIU, Local seminars and Road safety up before they get to the route. Accident rate on A380 reduced from 150 Bodies of Traffic awareness campaign Billboards along the road with the Information/Warnings on accidents per year (2008 estimate) to 120 Police. the Over-speeding, safety belts and driving while . intoxicated.

IKS GROUP OF COMPANIES 14 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Activity Target/ Sub-Output Rationale/ Objectives Responsibility Timing Manual for livelihood training To facilitate XXX residents, especially women, to engage in business and Number of male and female beneficiaries of livelihood benefit from the infrastructure training. development Feasibility studies for proposed businesses prepared

NGOs, training institutions and other resource center stepped as trainers Conduct livelihoods training seminar EA, CGDS, NGO, Network established with Women's Committee, Business To broaden the social network base of Women’s Q2, 2011 Women Association and other non-government 1 each in 3.1 and 2; local residents Committee organizations 2 in 3.2 – 1 in Turtkul and 1 (NGOs) in Ellikkala. To assist local entrepreneurs in Financing scheme/ loan facility for business applicants is accessing loans sourced out from financial institutions To measure economic impact of Number of male and female trainees who set up a business increasing accessibility of local residents to entrepreneurial training and credit Average monthly income derived from business activity facilities. To establish a group of women who will serve as community role-models and who Core group of women-leaders developed. Representation will support each other in their on leadership committee comprises a cross section of entrepreneurial undertakings. community (in terms of income) Organize an association of local women entrepreneurs The association of local women’s entrepreneurs will serve as the de-facto 1 each in 3.1 and 2; Gender and Development Focal Point EA, CGDS Q2, 2011 2 in 3.2 – 1 in Turtkul and 1 (GFP) of the community. in Ellikkala. To deepen knowledge and appreciation of Core group of women leaders (GFP) undergo additional GFP members on gender equality and GAD trainings women’s empowerment concepts.

Small scale vocational To provide training opportunities for DP’s and AP’s – training particularly for women and the poor – that will allow them to To allow for opportunities for local access nearby employment, or perhaps provide services to families to enter the work force and EA, CGDS Q2, 2011 Conducted in 3.1 and 2, and road side travellers. Activities would include sewing supplement income. also in the 4 key village workshop, hair-cutting, auto-mechanic and a tree nursery. areas in 3.2

IKS GROUP OF COMPANIES 15 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Activity Target/ Sub-Output Rationale/ Objectives Responsibility Timing

Development of community improvement projects – eg. litter reduction paid for by/local businesses. or To improve the amenity along the road. Community Improvement Tree Planting Project - The development and support of Projects tree planting groups by DP’s to revegetate lost trees along corridors, fence lines and canals. Allowing for community groups to form EA, CGDS Q2, 2011 Conducted in Project 3.1 around shared objectives for community and 3.2 Funding would assist with seedling preparation, planting improvement and small scale and maintenance. entrepreneurship

Component 3: Improved access to healthcare Health Focal Point- collect data, monitor on the Identify health focal point increase/decrease of the number of STD, HIV. (HFP) in Local Khokimiyats To support monitoring system of the Identify effective cooperation access to the health-care system and CGDS, HFP, Q2, 2011 module/agreement between improve quality and quantity of health Khokimiyat province hospitals and services in project 3.1 and 2 Cooperation module/agreement identified clinics

Establish the emergency/first aid points To improve quality and quantity of health Emergency/firsts aid point established within the attainable CGDS, HFP, along the A380 Project 2 services amongst roadside communities Q2, 2011 distances along the road. Khokimiyat and 3.1 and 3.2 in sub-project areas

Establish the Emergency/Fist Aid Stations To improve quality and quantity of health on the major Bus-stops as a Emergency/first aid point established and necessary CGDS, HFP, services amongst roadside communities part of the road site personnel recruited. Khokimiyat in sub-project areas infrastructure development

Component 4: Implementation and Monitoring Recruitment of a community and gender development Set up mechanisms for specialist under Community Development Program effective Implementation and component. To ensure that the CDGAS Plan is PMU Monitoring of the Plan. Q2, 2011 implemented and meeting its targets. Development of a monitoring tool and guideline for the Each project regular reporting on progress of implementation

IKS GROUP OF COMPANIES 16 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Activity Target/ Sub-Output Rationale/ Objectives Responsibility Timing To have a ready database as reference Collect sex disaggregated Baseline and end-line sex-disaggregated data-base/ profile for measuring project impact in the future, data on road stakeholders. of employees, Road Fund, and on the population in each and or other research and profiling EA, CGDS Q2, 2011 project area needs. Each project Conduct regular monitoring and reporting to ensure implementation of CGAP. To monitor implementation progress of Monitoring reports produced EA, CGDS Quarterly CGAP Each project

IKS GROUP OF COMPANIES 17 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The use of transport to access medical institutions by household member groups (men, women and children) in Beruniy, Ellikkala and Turtkul districts. In % Beruniy district Gender/Healthcare Public Private By institution transport vehicle walking Hospital 70.00 30.00 0.00 Men Polyclinics 76.92 15.38 7.69 Hospital 68.18 31.81 0.00 Women Polyclinics 83.33 8.33 8.33 Hospital 60.00 40.00 0.00 Children Polyclinics 71.42 14.28 14.28 Ellikkala district Gender/Healthcare Public Private By institution transport vehicle walking Men Hospital 58.33 33.33 8.33 Polyclinics 57.14 42.85 0.00 Hospital 50.00 41.66 8.33 Women Polyclinics 30.00 40.00 30.00 Children Hospital 57.14 28.57 14.28 Polyclinics 50.00 41.66 8.33 Turtkul district Gender/Healthcare Public Private By institution transport vehicle walking Men Hospital 57.69 42.30 0.00 Polyclinics 76.92 23.07 0.00 Hospital 60.97 34.14 4.87 Women Polyclinics 87.50 11.11 1.38 Hospital 62.96 33.33 3.70 Children Polyclinics 84.81 13.92 1.26 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 18 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

The use of transport to access medical institutions by household member groups (men, women and children) in Beruniy, Ellikkala and Turtkul districts. In % Beruniy district Gender/Healthcare Public Private By walking institution transport vehicle Men Hospital 70.00 30.00 0.00 Polyclinics 76.92 15.38 7.69 Hospital 68.18 31.81 0.00 Women Polyclinics 83.33 8.33 8.33 Children Hospital 60.00 40.00 0.00 Polyclinics 71.42 14.28 14.28 Ellikkala district Gender/Healthcare Public Private By walking institution transport vehicle Men Hospital 58.33 33.33 8.33 Polyclinics 57.14 42.85 0.00 Hospital 50.00 41.66 8.33 Women Polyclinics 30.00 40.00 30.00 Children Hospital 57.14 28.57 14.28 Polyclinics 50.00 41.66 8.33 Turtkul district Gender/Healthcare Public Private By walking institution transport vehicle Men Hospital 57.69 42.30 0.00 Polyclinics 76.92 23.07 0.00 Hospital 60.97 34.14 4.87 Women Polyclinics 87.50 11.11 1.38 Hospital 62.96 33.33 3.70 Children Polyclinics 84.81 13.92 1.26 Source: Household Survey, 2010

IKS GROUP OF COMPANIES 19 TASHKENT,SEPTEMBER 2010 TA 7375-UZB: CAREC CORRIDOR 2ROAD INVESTMENT PROGRAM FINAL REPORT

Differences between the female and male headed households in Beruniy, Ellikkala and Turtkul districts. In % Beruniy Ellikkala Turtkul Women Men Women Men Women Men Heads of Households who have Not 0.00 0.57 14.70 0.59 3.44 0.58 Completed School Education, % Heads of Households who Have 80.00 67.81 73.52 70.23 68.96 85.96 Secondary Vocational Education, % Heads of Households who have 16.00 30.45 11.76 29.16 13.79 13.45 Higher Education, % Households’ Heads in Employable Age and Older, Who Are 0.00 9.82 6.06 6.62 4.16 10.71 Entrepreneurs, % Unemployed Heads of Households 4 1.17 51.51 24.69 58.33 35.71 of Employable Age and Older, % Employed Heads of Households of 45.83 34.10 48.48 75.30 41.66 64.28 Employable Age and Older, % Children Under 16 years of Age, % 25.98 23.06 34.81 31.13 24.07 27.05 Household Size, Persons 5.08 5.13 4.64 5.58 5.58 6.18 Average Monthly Income, 000’s 102.5 104.5 54.16 65.89 114.68 106.01 SUM 0 8 Poverty Rate, % 28.00 26.43 44.11 55.35 55.17 60.81 Source: Household Survey, 2010

Education level indicators of men and women groups. In % Beruniy Ellikkala Turtkul Women Men Women Men Women Men No education 0.57 0.26 1.94 0.29 1.25 0.22 Incomplete basic education 6.30 2.64 7.24 3.83 11.75 8.74 Basic education 27.50 26.45 35.37 28.31 33.25 25.78 Vocational education 45.84 44.17 39.27 43.06 46.75 54.03 Higher education 16.33 22.22 10.30 16.22 5.00 9.86 Continuing receiving 3.15 3.96 5.84 8.25 2.00 1.34 education Source: Household Survey, June 2010

IKS GROUP OF COMPANIES 20 TASHKENT,SEPTEMBER 2010