Client Ministry of Energy and Industry of the Republic of Albania Project Technical Assistance to the Project Management and Implementation Units for Implementation of the Power Recovery Project Document RESETTLEMENT ACTION PLAN Project number RfP No. PRP-CS-QCBS-1 December 2016 www.afconsult.com Imprint Client Contractor Ministry of Energy and Industry of the Republic AF-Consult Switzerland Ltd of Albania Tafernstrasse 26, CH-5405 Blvd. Deshmoret e Kombit, No. 1001, Tirana, Baden/Dattwil, Switzerland Albania Document Information Project Technical Assistance to the Project Management and Implementation Units for Implementation of the Power Recovery Project Document RESETTLEMENT ACTION PLAN Project number RfP No. PRP-CS-QCBS-1 Document number [Document number] Department Transmission and Distribution Document path Document1 First Edition Date Initials Signature Created Verified Released Revision List Nr. Page(s) Date Revision Note Created by Verified by (Initials/Signature) (Initials/Signature) 1 2 3 Distribution AF-Consult Switzerland Ltd Technical Assistance to the Project Management and Implementation Units for Implementation of the Page 2 (30) Power Recovery Project - RfP No. PRP-CS-QCBS-1 RESETTLEMENT ACTION PLAN - December 2016 Technical Assistance to the Project Management and Implementation Units for Implementation of the Power Recovery Project .................................................... 1 1 Introduction ........................................................... 4 2 Glossary and Definition of Resettlement-Related Terminology ........................................................... 8 3 Project overview ................................................... 10 4 Resettlement and compensation plan ................... 12 5 Valuation and Compensation ................................ 15 6 Management of grievances ................................... 17 7 Monitoring and evaluation .................................... 20 8 Annexes ................................................................ 21 © Copyright AF-Consult Switzerland Ltd AF-Consult Switzerland Ltd Technical Assistance to the Project Management and Implementation Units for Implementation of the Page 3 (30) Power Recovery Project - RfP No. PRP-CS-QCBS-1 RESETTLEMENT ACTION PLAN - December 2016 1 Introduction AF-Consult Switzerland Ltd was engaged by the Project Implementation Unit (PIU) to prepare the implementation of a Resettlement Action Plan to mitigate any land acquisition impacts associated with the construction of the new power substation in the Kombinat Area of Tirana. For the purpose of this assignment, AF-Consult Switzerland Ltd (“Consultant”) has prepared the Ressetlement Action Plan (RAP) and the Social Assessment Report (SA) in the affected community. The Government of Albania (GOA) has assigned high priority to improve the conditions of the electricity sector in Albania. The economic and political importance of this sector for the country has prompted a series of World Bank projects since the inception of the cooperation with the World Bank. In despite of the past projects, the electricity sector in Albania continued to display significant deficiencies. The Power Recovery Project of Albania has an objective to improve reliability of power supply and financial viability of the power sector. This proposed project consists of four components: i) short-term complementary power import support; ii) upgrading distribution infrastructure, iii) transmission meter/data center upgrade; and iv) supporting power sector reforms and project implementation. As part of the financing scheme, the ‘Power Recovery Project of Albania’ (hereinafter the project) is financing a new power Sub-Station (110/20KV – 80 MVA) in the Kombinat Area of Tirana. This new substation is expected to enhance the power supply for the area. Thus the current assessment contributes firstly, to the preparation and implementation of a Resettlement Action Plan (RAP) for the new power substation and any associated power system investment. While, the Ressetlement Policy Framework (RPF) aims to describe all potential future social safeguard risks and mitigation measures for all project components for which exact footprints and impacts are not fully known or confirmed to date. The RAP’s main findings are given below: 1. To minimize resettlement effects OSHEE has selected a vacant land, without any dwelling or other facility. This is confirmed through RAP field observations. However, the inevitable private land affected results for 1 agriculture plot owned by one land owner only. 2. RAP reveals that the only affected party from land acquisition, for the construction of the new power substation, is a private land owner (Family Shurdhi with four brothers and sisters with their families). This land owner is identified to be expropriated per the Albanian legislation in force. The land acquisition affects 1 plot, in total 4231 m2. The land plot is located in the Kashar administrative unit, in the Municipality of Tirana. 3. Land needed for the new power substation is registered as “agricultural land”. Field observations and data collected through RAP census-survey show that the land is currently a pasture land, with no usage. There are no dwellings or any other structure or trees in the identified plots to be expropriated. Through the land passes a high-voltage 110kV line and there is another high-voltage tower currently not used. 4. The compensation method, as per Albanian legislation in force to be applied for this expropriation procedure is cash compensation. The option “land for land” is not provided by the Albanian legislation to private owners1. Cash compensation is fully sufficient to compensate the 1 The only case when “land for land” compensation method could be applied, is when the affected entity is the commune itself and a communal property is being expropriated. The Council of Ministers gives another property in compensation to the affected commune. In every other case, as per basic principle, for AF-Consult Switzerland Ltd Technical Assistance to the Project Management and Implementation Units for Implementation of the Page 4 (30) Power Recovery Project - RfP No. PRP-CS-QCBS-1 RESETTLEMENT ACTION PLAN - December 2016 acquired agriculture land. The landowner has accepted cash compensation as a method to compensate its expropriated land. 5. The estimated total cost of land compensation for the proposed project is calculated to the amount of 28,466,674 ALL (Approximately USD 224,6422 ) for a total of land surface of 4231 m2. 6. The valuation method for estimating the compensation considered all the available sources of information in order to propose a market / replacement value of land in the new power substation area. Main assumptions taken into consideration in the frame of methodology are related with current regulatory framework for land expropriation and its recent amendments; and eventual transaction (sales and leasing) and other listings on the footprint substation region as well as interviews with real estate agents and valuation experts (See Annex 2: Methodology for Estimating Land Compensation Rate). In these conditions the RAP applies an average price for land expropriation of USD54 per m2. 7. It is provided that the Government of Albania will compensate the project affected people (PAPs) for any loss of physical assets, revenue, and income resulting from economic displacement or physical relocation whether these losses are temporary or permanent. However, the census survey found that construction of the new substation will not affect neither immovable properties, such as houses or structures, nor revenues and income. 8. Public consultation suggests that PAPs have to be compensated in a timely way, so that they can make any adjustments early on, before any impact. RAP reveals that potential impacts due to land acquisition for the construction of the new substation appear to be quite moderate and manageable. Field observations and the census survey showed that that the planned power substation will be constructed by avoiding buildings and structures. 9. During RAP implementation, monitoring will be ensuring that any issue, which may arise, is properly addressed. Nevertheless, safety and compensatory measures are provided if needed and any land, which is temporarily affected, must be restored to its original condition. 10. Social safeguard measures and guidance are provided for both construction phase and post-completion phase impacts relating to land acquisition/expropriation, impacts on livelihoods and related compensation, as needed. 11. The socio-economic assessment indicates that, the economic status of PAPs will not be worse off than before the project as a result of land acquisition. The land to be expropriated is currently vacant and not being used for any activity. Therefore, the consultant assesses that the land is not affecting PAPs’ source of income. As far as it concerns the vulnerable groups, such as: handicapped or disabled, children, the elderly, widow, women heads of household, who are usually the most affected in such situations, there is no evidence that such groups will be affected. The RAP does not require rehabilitation assistance and/or moving allowances and no houses and/or other structures are affected, but only cash compensation for the lost land. Finally, RAP foresees that assistance with project-related issues is to be provided by the local grievance committee to all PAPs, especially as regards the vulnerable groups. 1.1 Methodical approach The