Client Ministry of Energy and Industry of the Republic of

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

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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, , Baden/Dattwil, Switzerland Albania

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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

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Department Transmission and Distribution

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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 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 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

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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 methodical approach applied for this RAP is provided as follows:

expropriation is provided a fair compensation (constitutional principle) in Cash and not in kind. However, this is a practice which is not yet implemented by the GoA. 2 Exchange Rate 1 USD = Lek 126.72 as of Dec 7th, 2016, Source: Bank of Albania

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Principles and Requirements for Land Acquisition and a Resettlement Action Plan

The World Bank Operational Policy on Involuntary Resettlement (OP 4.12) requires that environmental and social impacts of all projects it supports must be mitigated according to operational polices that spell out the principles and planning methods for mitigation work. This applies whenever property must be acquired, or its use modified, for a project, and that acquisition or modification results in the loss of income, residence or access to resources, either permanent or temporary whether the occupation is legal or illegal. Resettlement of PAPs in the project zone will therefore be carried out in accordance with the Laws of Albania taking into consideration the World Bank Involuntary Resettlement Policy. In any instance where there is a gap or conflict between the Albanian Law on Expropriation and OP 4.12, World Bank Operational Policy 4.12 will prevail or implementing agencies will provide a solution in compliance with OP 4.12.

Eligibility

An affected community is defined as one which stands to lose all or part of its physical and non- physical assets including social and cultural networks as a result of the project implementation. To be eligible for compensation, a PAP must have formal legal rights to land or other assets or must prove informal occupancy i.e., those who do not have formal legal rights to land or other assets at the time of the Census-survey, but have claim to such legal rights by virtue of occupation or use of those assets. In other words, the absence of legal title to land or other assets is not, in itself, a bar to compensation for lost assets or to other resettlement assistance. For land acquisition under this RAP, the land owner who will be expropriated has full legal rights on this land, as per registration title at IPRO and respective communes.

Entitlement Matrix

Based on the Ressetlement Policy Framework, the entitlement matrix for the PAPs has been prepared, reflecting all categories of affected people and all types of losses associated with each category. The whole land to be expropriated for the new Kombinat Substation is registered as “agriculture land”. The land owner has full legal title of his lands. There will be expropriated one land owner who possesses one agriculture plot of 4231 m2.

Identification of Stakeholders

Interviews were held with stakeholders where the power substation will be constructed, so that the impacts of the project (both social and economic) were explained. In addition, the consultant explained and discussed with them the land compensation rates and mitigation measures.

Public Consultation and Social Assessment

Discussions were held with PAPs in the area identified for land expropriation. Impacts of the project implementation were explained and further the consultant explained the expropriation procedures, discussed over the land compensation rates. Greviances mechanism was reassured and clarified to all present PAPs in order to address any mitigation measure.

The landowners of the land plot being expropiated is currently living in Italy so a direct meeting was not possible, rather a conference call was organized to discuss the whole expropriation process as well as to collect more information on their family.

Grievance Procedure

The potential for disputes has been reduced considering that the construction of the new power substation does not affect the PAPs to the extent where houses or other dwellings need to be dislocated.

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However, the owners to whom the land with be expropriated have been consulted and compensation modalities have been explained. Any PAP who is dissatisfied with the compensation amount may seek redress through the Grievance Redress Mechanism (GRM). If a PAP still has an issue, he or she may initiate litigation in Courts.

Institutional Responsibilities

MEI and OSHEE have ultimate responsibility for the implementation of all project components along with the Power Recovery Project of Albania (PIU). The PIU will work with other institutions to ensure successful implementation of the RAP. OSHEE is the final beneficiary of the project implementation.

Conclusion on Environmental Assessment

Taking into account the possible environmental mitigation measures to address the potential environmental impacts related to the construction and operation of the power substation, no obstacle is foreseen to the realization of the project in the selected location. However, if such impacts that may affect people are unknown at the present but may be caused by the project in the future, these will be addressed within the GRM, which is the mechanism that can alert project and if they occur, a time bound plan will be developed to deal with them.

Monitoring and Evaluation

OSHEE will coordinate all monitoring activities. Internal monitoring will be undertaken by project PIU to ensure that activities in the implementation schedule and principles of the RAP are implemented.

Budget and implementation schedule

The overall cost for compensation under this RAP is Lek 28,466,674 (or USD 224,642). The implementation cost of this RAP will be covered by the Government of Albania.

The implementation schedule for major activities has been prepared. The schedule includes a time frame from disclosure of the RAP to the monitoring and evaluation of project implementation.

Conclusion

The construction of a new power substation will improve the supply of power for the Tirana Municipality, specifically the areas near the project location. With the implementation of mitigation measures, the overall social impacts of the project will be minimal.

The RAP will be disclosed by OSHEE, which will make hard and soft copies available to stakeholders.

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2 Glossary and Definition of Resettlement-Related Terminology

DCM Decision of the Council of Ministers

GRM Greviance Redress Mechanism

IPRO Immovable Properties Registration Office

OSHEE Operatori i Shperndarjes se Energjise Elektrike (Electricity Distribution Company)

PAP Project Affected Persons

RAP Resettlement Action Plan

RPF Ressetlement Policy Framework

SA Social Assessment

WB World Bank

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Project in Brief Definitions It refers to agricultural and/or non-agricultural land and any structures thereon whether temporary or permanent and which may be required Land for the project. PAPs are persons affected by land use or acquisition needs of the RAP. These person(s) are affected because they may lose, be denied, or be restricted access to economic assets; lose shelter, income sources, or means of Project Affected livelihood. These persons are affected whether or not they must move to Person (s) (PAPs) another location. Compensation is the payment in kind, cash or other assistances given in exchange for the acquisition of land including fixed assets, as well as other Compensation impacts resulting from project activities. It is the date of commencement of the census of PAPs within the sub- project area boundaries. This is the date on and beyond which any person whose land is occupied for project and/or sub-project use; will not be Cut-off date eligible for compensation. It means the repossession of or alienation of land, buildings or other assets Land acquisition thereon for purposes of the Project. It is an instrument to be used throughout the implementation of project The Resettlement activities as guidance tool. The RPF sets out the resettlement and Policy Framework compensation policy, organizational arrangements and design criteria to be (RPF) applied to meet the needs of the people who may be affected by the project. It is a resettlement instrument (document) prepared when projects locations are identified. In such cases, land acquisition leads to physical displacement of persons, and/or loss of shelter, and/or loss of livelihoods and/or loss, denial or restriction of access to economic resources. RAP is prepared by the party (Potential Developer) impacting on the people and their livelihoods. RAP contains specific and legal binding requirements to resettle and compensate the affected party before implementation of the project Resettlement Action activities. RAP is site specific report for the current known impacts and is Plan (RAP)” or prepared in conformity with the provisions of this RPF with the views of the “Resettlement Plan” the PAPs. A survey carried out to identify and determine the number of Project Affected Persons (PAP) or Displaced Persons (DPs). The meaning of the word shall also embrace the criteria for eligibility for compensation, resettlement and other measures emanating from consultations with affected Census communities. It means replacement of assets with an amount sufficient to cover full cost of lost assets and related transaction costs. The cost is to be based on Market rate (commercial rate) according to Albanian law for sale of land or property. In terms of land, this may be categorized as follows: (a) “Replacement cost for agriculture land” means the pre-project market value of land of equal productive potential or use located in the vicinity of the affected land, plus the costs of: (b) preparing the land to levels similar to Replacement cost those of the affected land; and (c) any registration and transfer taxes.

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3 Project overview

3.1 Background

The main aim of the project is to construct a new power substation 110/20 Kv in the area of Kombinat, Yzberisht, Tirana. The new substation will help to ensure a more reliable power supply for the area.

The overall activity is based on the standard principle that the population affected by the project will be assisted to improve their former living standards, if project impacts adversely affect their income streams. Involuntary resettlement will be avoided or minimized where possible in project designs; where displacements are unavoidable, people loosing assets, livelihood or other resources shall be compensated at replacement or market value, as appropriate.

3.2 Project purpose

The RAP is designed to comply with international best practices for involuntary resettlement; to this end the Consultant bind themselves to the World Bank principles.

The main goal of the RAP is to ensure that the World Bank guidelines and procedures are adhered to in the management of any adverse impacts that might occur to ensure that project-affected persons (PAPs) on the project area will not be adversely affected due to land acquisition needs of the project. The Resettlement Action Plan (RAP) ensures that any losses are addressed and that, as necessary PAPs are assisted to restore their living standards and income.

3.3 The Resettlement Policy Framework

The World Bank Operational Policy on Involuntary Resettlement requires that environmental and social impacts of all it supporting projects should be mitigated according to operational polices that spell out the principles and planning methods for mitigation work. This applies whenever property must be acquired, or its use modified, for a project, and that acquisition or modification results in the loss of income, residence or access to resources, either permanent or temporary whether the occupation is legal or illegal. Resettlement of PAPs in the project zone will therefore be carried out in accordance with the Laws of Albania taking into consideration the World Bank Involuntary Resettlement Policy.

The Resettlement Policy Framework (RPF) is consistent with the World Bank policy (O.P 4.12), on Involuntary Resettlement and serves as a guide for the preparation and implementation of Resettlement Action Plans (RAPs), which may be needed to redress impacts on affected people where land acquisition is associated with specific sub-projects undertaken in the Project. It is unlikely to physically or economically displace people, but just in case the same resettlement policy framework will be applied if there are unanticipated impacts on people later during project implementation. The Resettlement Policy Framework was prepared before the preparation of this RAP and is included in Annex 3 of this document.

3.4 Planning Principle for the Ressetlement Action Plan

The main objectives of this Resettlement Action Plan are:

• To mitigate the adverse impacts associated with the resettlement due to Kombinat substation project. • To deliver the entitlements to the PAPs • To maximize the involvement of PAPs and civil society in all stages of the implementation of the RAP and • To ensure that the standard of living of PAPs is improved or at least restored by way of better access to services and facilitation of community action.

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The RAP contains the details on how to ensure that WB principles can be implemented. There are different categories of expected project impacts, including loss of property and assets, loss of livelihood, and other social and economic impacts on communities. All people, households and groups adversely affected by the project would be registered and they will receive a support. Loss of assets and livelihood represent direct project impacts on an identified population. The project monitoring and evaluation will compare long-term impact against baseline socio-economic data.

Finally, it was needed to elaborate a complete description of funding arrangements for compensation and restoration costs, administrative and technical costs, including the foreseen flow of funds.

3.5 Brief project description

The proposed power substation 110/20 kV will be constructed in the administrative unit of Kashar, where it border the administrative unit of , both in the Tirana Municpality (the area is also informally called as the TEC Kombinati area, since it is near to a former small thermal power plant that was used by a former textile factory). The power substation will be constructed close to the nearby exisiting power substation TEC Kombinat 35/6 kV. The new substation will be connected through a 110 kV line that comes out of the 400/220/110 kV substation of Kashar and goes to the 110/20/35/10 kV substation of Selite.

The main components of the substation are:

- 110 kV impiant

- Two 110.20 kV transformers with 40 MVA power each

- Two linebays 100 kV

- Two transformer bays 110 kV

The connection with the overhead 110 kV line will be done by constructing an additional tower, which will enable the entrance of the aerial double line in the new substation portal.

The required area of land for the construction of the power substation was determined based on technical criteria for the construction of sub-stations. The power station alignment is required to ensure the safe construction, maintenance and operation.

The final site was selected after exploring different options. In addition to cost and engineering factors, the site selected kept to three basic principles: avoidance, minimization and mitigation. The site was selected because it was close to the existing Kombinati TEC substation and to existing power lines, while being a vacant land with minimal interference and land acquisition needs.

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4 Resettlement and compensation plan

4.1 Project area description

The Project location is in the outskirts of the city of Tirana, more specifically in the Yzberisht area. The property is within the territory of the administrative unit of Kashar, within the Tirana Municipality. Before the local government reform of 2015 it was part of the Commune of Kashar, a separate local government unit. The project location is right at the border between what was the Commune of Kashar with the former Mini-municipal nr. 6 of Tirana (the so-called Kombinat area). The area is very close to the administrative unit of Vaqarr, also within the Tirana Municipality.

The project location is currently vacant land, though as indicated by the map below (refer to the red arrow) it is surrounded on three sides by areas with a dense building activity, mainly for dwelling purposes.

Figure 1: Project location, with boundaries of the old local government units (Tirana, Kashar, Vaqarr)

Tirana Municipality

The Tirana Municipality was established in 2015, based on the new local government law approved in 2014. The new Tirana Municipality included the city of Tirana (former Municipality of Tirana) and the surrounding communes and municipalities such as Petrelë, Farkë, , Zall- Bastar, Bërzhitë, Krrabë, , Shëngjergj, Vaqarr, Kashar, Pezë, , Zall-Herr, whereas the bordering Kamez municipality and commune were not amalgamated into Tirana, rather under a separate unit.

Tirana Municipality is the largest local government units in the country in terms of population, while it has an area of 1,110 square kilometres. Based on the data from the latest census organized in 2011, the population of the new Municipality of Tirana was 557 thousand people with a population density of 502 people per square kilometre, while if we consider the data from the Civil Register, such population would be 757 thousand people, with a density of 682 people per square kilometre.

The Tirana Municipality is in the Tirana Administrative Region (in Albanian language “Qarku”), which included also the city of Kavaja and surrounding areas. Tirana Region, and especially the city of the Tirana, is the most economically developed area in Albania. Circa 38% of private

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enterprises registered in Albania are located in Tirana. Also the GDP per capita of Tirana is circa 50% higher than the national average, as per latest INSTAT data.

Kashar administrative unit

The Kashar administrative unit, where the property to be expropriated is located, is one of the most populated administrative units of Tirana. The Kashar unit includes the areas of Kashar, Yzberisht, Mëzez, , , Kus and Mazrek. Kashar has a mixed profile, with some areas being heavily populated with high rise buildings, some areas serving mainly as location for business enteprises and other areas being mainly focused on agriculture activities.

Kashar and Yzberisht have seen during the last decade an intense real estate development activity, providing to inhabitants of Tirana a cheaper dwelling solution as compared to the Tirana city center.

In 2015 the population of Kashar was estimated at 24,309 people, 28% under the age of 18 years old.

Table 1: Kashar unit population INDICATOR 2010 2011 2012 2013 2014 2015 Population 21,531 22,165 22,530 23,025 23,460 24,309 % of population under 18 years old 33% 30% 31% 30% 31% 28% Families (with children) that take economic aid 116 150 177 181 166 n/a Source: http://observator.org.al/odf2/komunat_tirane.html

Data from 2012 indicate that the number of businesses in the Kashar unit was 1591, significantly higher when compared to other administrative units outside the city of Tirana.

Other neighbouring administrative units

As previously mentioned the project location is right at the borderline between the Kashar unit and the administrative unit no.6, or colloquially known as the Kombinat area, a neighbourhood of the Tirana city. The population of this unit is 60,385 (2015 data).

Another neighboring administrative unit is Vaqarr, with a population of 9,106 inhabitants as per 2011 census. The Vaqarr area is mainly rural, with businesses concentrated in the areas near the city of Tirana or along main roads.

4.2 Efforts to Minimize Displacement

During the design phase of the project, efforts were made to minimise displacement. The design intentionally selected a location that was not only vacant, without any buildings or temporary structure, but also currently not being used for agriculture purposes.

This project has direct impact on PAP, who will be expropriated for his privately owned land, to be acquired for the construction and functioning of the new substation. The people living in the vicinity of the proposed power substation will not be affected directly by the construction of this substation, though indirectly they will benefit from the improvements in the power supply coming from the construction of the new substation.

4.3 Affected Properties by the Project’s Footprint

According to the study conducted by Consultant in October 2016, Shurdhi family is composed of two brothers and two sisters, each having their own family. The landplot is located in the administrative unit of Kashar, Tirana Municipality, at Cadastral Zone 3866.

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On the south-east of the landplot there are houses, whereas on the other parts they are bordered by other vacant land (though in the southwestern direction there are several other houses closeby).

Land Size for compensation

The total area to be expropriated in this section is 4231 m2. The total number of individuals affected by this Project is 12 people (5 males and 7 females). All individuals are permanently living in Italy.

On average, the market price per m2 in this territorial unit is estimated to be in the range of USD72-78/m2, or ALL8,926 – 9,613/m2. This price is estimated based on the current market prices. For more details, refer to Annex 2 - Methodology Notes for the Valuation of the Expropriated Land.

4.4 Entitlement Matrix

The table below provides additional information on the entitlement categories for the unilateral expropriation for the public interest provided by the Government with some by-laws, concretely with Decision no. 1620, dated 26. 11. 2008 of the Council of Ministers, Decision no. 653, dated 29. 09. 2007 of the Council of Ministers and with the Decision no. 139, dated 13. 02. 2008 of the Council of Ministers.

Occupiers Definition Asset Type of Impact Entitled Person Compensation for loss of assets Cash compensation for affected land equivalent to Agriculture Land Physical Asset Occupier / Title the market value of the ALL 28,466,674 (4231 m2) Loss holder property sufficient to replace the lost assets and cover transaction costs. From Census Replacement value of Crops Loss none has been standing crops purchased at N/A Land need identified market cost in scarse season Private Property directly affected Owners Loss of Standing Replacement value by the Project crops and trees equivalent to purchasing From Census Productive trees cost of new tree and the none has been N/A loss labor plus loss of income identified until the trees become productive. Cash compensation based Loss of Houses, Houses, on expert assessment for businesses or businesses or None identified N/A replacement cost and structures structures salvage material Are those who have no legal Loss of shelter Cash compensation at full Informal land title on land or place of Structure loss None identified replacement value for the N/A users (squatters) ownership business structure (but not the land). (resident living on site)

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5 Valuation and Compensation

5.1 Definitions

Lack of title/ permits: Where it occurs, expropriation could involve the loss of land, shelter or other sources of income. Since not all sub-projects and any consequent impacts, are known at project preparation stage, this RAP includes consideration of possible adverse impacts from loss of shelter and relocation, as well as loss of assets and/or income (livelihood). As indicated in the criteria for eligibility to receive compensation, these will include those people who are occupying or using the affected land, but may not carry documentation indicating formal or recognizable legal rights to the land or permits for buildings.

Loss of Income: If less than 10-20% of an individual’s land holding is adversely affected by the land acquisition process for a particular sub-project –no significant loss of income is expected and impacts can be generally considered to be minor. In these cases, compensation will be provided as detailed in the following table. However, if affected people suffer loss of income through loss of more than 20% of their land holding, income reduction is likely and income restoration assistance will be provided if required. This will take the form of “Rehabilitation Assistance” meaning assistance comprising job placement, job training, or other forms of support to enable displaced persons, who have lost their source of livelihood as a result of the displacement, to improve or at least restore their income levels and standard of living to pre-project levels.

Loss of Structures: It is not expected that there will be any residential or other structures that will need to be acquired in the project site. However, in the event that there are structures (barns, kiosks, small commercial buildings etc.,) that will need to be demolished, “depreciation” will not be used while calculating the compensation payable for affected structures, and affected people will be able to replace their structures with the compensated amount.

5.2 Compensation rates

Adequate compensation rates have been drawn by the Consultant based on the prevailing market rates of the affected facility in the RAP document. Please see for more details Annex 2: Methodology on the Evaluation of the Expropriated Land.

5.2.1 Cash Compensation

The cash compensation option is provided by Albanian Law. PAPs was consulted and prefer the cash compensation for their land expropriation

• Compensation rates are calculated in consultation with land owner to ensure that rates are fair and adequate; • Compensation for land are sufficient to enable affected people to restore their standard of living after resettlement; • No compensation for structures is applicable for this RAP. In case of any event, after the time of RAP preparation, this must cover full replacement cost exclusive of depreciation and inclusive of all fees such as construction permits and title charges and labor costs; • Compensation payments must be made before any acquisition of assets or physical resettlement takes place.

5.2.2 Risk of impoverishment

To ensure the affected persons are not in any way rendered poor by the proposed project, all categories of affected people, including property owners, their household members with special regards to vulnerable groups: women and people with disabilities were identified. All types of loss associated with each category above were factored in, resulting that only loss of physical assets (agriculture land) applies for this RAP. Compensation and assistance to each category is entitled,

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which include compensation for land and assistance for facilitating the vulnerable groups’ communication and procedures during the expropriation.

There is no evidence of vulnerable groups affected due to project implementation. However, in case of need special assistance to facilitate communication of vulnerable people with the commission for expropriation is provided, in order to facilitate their procedures of land acquisition.

The land to be expropiated is vacant and it is not being used for any type activity. Therefore, we assess that the income for the affected household is not dependent at all from the land that is expected to be used for the construction of the substation. This indicates that, their main incomes will not change due to land plot expropriation.

5.3 Estimated costs of RAP

Main assumptions taken into consideration in the frame of methodology are related with:

 current regulatory framework for land expropriation and its recent amendments;  financial analysis on net income stream on the power substation footprint site and its neighborhood, if any;  eventual transaction (sales and leasing) on footprint power substation area.

For more details on the methodology and source of information used for estimation of the RAP budget, see Annex B: “Methodology Notes for the Evaluation of the Expropriated Land”.

The total budget provided below is a provisional figure to act as a guide to calculate the expropriation costs, which depending on the time of project implementation start-up is expected to be up to that level. This sum reflects only the costs of agriculture land to be compensated before the project implementation starts up.

Size Price Amount Owner (m2) (Lek/m2) (Lek) Petrit Sadik Shurdhi 4231 6,728 28,466,674

Even though in several cases of expropriation it might have been adequate the usage of NGOs or other independent bodies to monitor the expropriation process we believe that in this case such usage is not efficient because: a) there is only one property, owned by one family to be expropriated. This family does not live in the property that is being expropiated, nor is it using such property for any income generation activity; and b) there are sufficient mechanisms (including here courts, Albanian ombudsman etc) that can help in addressing potential grievances, if any. So no Independent Monitoring Unit is expected to be established.

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6 Management of grievances

6.1 Consultation with Affected Populations

To ensure the interests of the affected persons are fully entrenched in the RAP process, the Consultant adopted a thorough consultation with the land owner, any interested group and the various administrative and government departments all through the project area.

The consultation with the PAPs was done on November 21st, 2016, through telephone since they are residing in Italy and not in Albania. The telephone call was organized in OSHEE offices in the presence of their representatives and the Consultant. The Shurdhi family was represented by the two brothers, i.e. Petrit Shurdhi and Bilbil Shurdhi.

6.2 Monitoring of Income Restoration

The income restoration strategies aim at ensuring the affected persons are reinstated to their prevailing state at the beginning of the project and adequate measures are in place to assist them progress further. The monitoring process and the responsible parties are as described in the Monitoring and Evaluation section 7 of this RAP document. The key indicators of the performance of the income restoration measures within the restoration strategies adopted are:

• Measurement of income / poverty variation among the affected persons / households; • Conflicts within the affected persons, social, political.

6.3 Description of the Implementation Process

The implementation of expropriation activities will be linked to the implementation of the project, to ensure that loss of assets and/or and displacement does not occur before the necessary mitigation measures and resources are in place. In particular, land and related assets will be taken only after compensation has been paid.

The implementation process follows the below stages:

1) The beneficiary subject in the expropriation process will be OSHEE sh.a (Art. 9 of the Law “On Expropriation…)” 2) OSHEE sh.a needs to submit the request with a list of necessary documents to the Ministry of line, which is the Ministry of Energy and Industry, below referred as MEI (Art. 10 and 11, of the Law); 3) By the time the MEI accepts the request of the entity (OSHEE sh.a) the MEI signs an agreement, which defines the rights and mutual obligations. 4) Within 10 days after the conclusion of an agreement with the entity applying for expropriation (OSHEE sh.a) the MEI following the legal procedure starts the notification procedure directly to each owner of the private property to be expropriated and publish the Request for Expropriation for public interest. Notice of the request for expropriation is done in the Official Journal and in a newspaper with a nationwide distribution, as well as in a local newspaper for a period of one week. o A pre-disclosure to all affected land owners could follow in case not all PAPs are identified, so that non –residents or emigrants who are not contacted directly could be notified on their land acquisition, compensation method and amount, and procedures. However, in the final substation location design the RAP confirms that all PAPs are identified. o If for any reason any of identified PAPs is not residing any longer in the expropriation zone after the cut-off date, but has moved to another commune, municipality, region, or abroad, a notification procedure follows for ensuring that these PAPs are notified and compensated as per the RAP entitlements. The Consultant recommends that an official letter sent by PIU to affected parties

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should be drafted, stating how the MEI will treat such cases by use of an escrow account to provide them with specific information on receiving their entitlements. However, the Albanian legal provisions make reference only to Article 6, point 2, of Law “On expropriation…”, according to which the MEI relies only on the publication of the expropriated land owners list and for those PAPs who even after the publication of the list are still not identified, the MEI continues the expropriation procedures and deposits in a bank account the respective compensation amount for each expropriated land owner on his/her name. 5) PAPs affected by the expropriation have the right to complain to the Expropriation Commission of the MEI within 15 days from the end of the term of the public notice. 6) Collecting the complaints of the affected owners, and preparing the draft sub legal act for the Council of Ministers. The Commission receives complaints that are based on supporting documents. 7) The procedure will be considered complete, when the owners through a statement approve the transaction of the property in favor of the State. o Within this period PAPs can inform the MEI on their acception of the expropriation conditions. By this confirmation the land owner passes its property to state ownership and receives through his bank account the compensation corresponding value. o For other land owners, who do not agree with the expropriation and compensation amount, the Expropriation Commission at MEI prepares a draft Decision for Expropriation and submits it for approval to the Council of Ministers. 8) This Decision of MEI is finally submitted to the Council of Ministers, who approves it and the Decision enters into force immediately. Also, it will be published in the Official Journal. 9) The affected owners have the right of complaint to the Court withing 30 days from the notification of the Decision in the official journal. If they don’t follow this procedure, the decision of the Council of Ministers will be an executive title. 10) The compensation amount is at the disposal of the expropriated landowners by the day when the Decision enters into force, but not later than 3 months from the deadline that the decision has established.

Although the Article 19, of Law “On Expropriation…” foresees that ‘the total expropriation value results from the final evaluation of expropriated objects’ and does not make reference to any potential additions of compensation value, which could result from the eventual Court decision in favor of land owners, the Consultant recommends that a reserve fund is to be provided. The reserve fund, of at least 10% addition to the total, is to be provided to ensure that additional funds are available to respond to any grievances, which could result in a higher compensation amount for land expropriation upon a potential Court Decision in favor of a landowner.

The same procedure “mutatis mutandis”, needs to be followed for other institutions who submit the request for expropriations (communes and municipalities)

6.4 Arrangements for funding resettlement

The overall responsibility for resettlement and expropriation for the Project is under the Council of Ministers. The financial responsibility for the expropriation procedures, including the compensation to be paid, resettlement costs, etc., lies with the Ministry of Energy and Industry. The Council of Ministers is responsible for issuing the expropriation decision and authorizing the funds required. The land acquisition transfer must be fully completed, and payment made, before any works can be executed on the expropriated property.

6.5 Responsible Institutions and/or Agencies

The following agencies and institution are responsible for the coordination and delivery of each activity in the land entitlement policy:

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Immovable Property Registration Office for the , under the authority of the Central Registration Office, which are responsible for identifying and verifying property boundaries and ownership.

Institutional Arrangements for implementation Item Responsibility

Verification of ownership titles Expropriation Commission at the MEI

Registration and issuing of ownership Expropriation Commission titles Submit the request for expropriation Expropriation Commission and file

Sign the agreement Expropriation Commission at the MEI

Send note of expropriation to PAPs and Expropriation Commission print in newspapers the public notice

Grievances filed and redressed Expropriation Commission

Finalize the expropriation case file Expropriation Commission

Submit proposal for expropriation Expropriation Commission

Decision of expropriation Council of Ministers Delivery of payments MEI / OSHEE Civil works contract signed OSHEE OSHEE. It will be provided by the Council of Ministers Civil works start Decision on expropriation Monitoring MEI - Expropriation Commission

6.6 Grievance Redress mechanisms

Grievances are a common phenomenon in involuntary resettlement, which if not amicably and timely resolved, invariably gives rise to local resistance, political tension and unnecessary delays in executing the project. A grievance redress mechanism for the project is suggested for addressing potential legitimate concerns of PAPs who may consider themselves deprived of appropriate treatment under the project due to the impact on their property. The mechanism will be developed by the PIU and would include:

(i) a recording and reporting system, including grievances filed both verbally and in writing,

(ii) staff with responsibility at various levels of governments, and

(iii) a time frame to address the filed grievances.

The functioning of the grievance redress mechanism must be regularly monitored and evaluated by the PIU during project implementation.

As previously discussed, due to the fact that there is only one family affected by the expropriation, and this family is not living in the land, nor is it using it for income generation, there is no need to create an Informal Grievance Mechanism, since existing mechanisms provided by law are deemed as sufficient.

The Expropriation Law provides for an appeal process against the proposed award for compensation. Further appeals can be made to the district courts. The Office of the Ombudsman in Tirana receives complaints from citizens against government actions that affect their rights. The project staff will also play a role in resolving grievances.

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7 Monitoring and evaluation

The monitoring and evaluation process aims to achieve the following major outcomes:

• Affected people are informed and consulted about their options and rights, and provided with technically and economically feasible resettlement and income restoration alternatives; • Affected people following the monitoring procedures upon project implementation have to be effectively compensated at full replacement cost for losses of assets attributable directly to the project. • In case of relocation, affected people are provided with development assistance in order to address relevant factors and sustain their capacity to restore and maintain livelihoods.

The main internal indicators to be monitored regularly are:

I. The entitlements are in accordance with the approved policy and that the assessment of compensation is carried out in accordance with agreed procedures. II. Payment of compensation to the PAPs in the various categories is made in accordance with the level of compensation described in the RAP. III. Public information and public consultation and grievance procedures are followed as described in the RAP. IV. Relocation and payment of subsistence and shifting allowances are made in a timely manner.

Considering the situation post evaluation of CENSUS and RAP, the internal monitoring and supervision must consider:

• To verify that the valuation of assets lost or damaged, and the provision of compensation, resettlement and other rehabilitation entitlements, has been carried out in accordance with the resettlement policies; • To oversee that the RAP is implemented as designed and approved; • To verify that funds for implementation of the RAP are provided by the Project authorities in a timely manner and in amounts sufficient for their purposes, and that such funds are used in accordance with the provisions of the RAP.

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8 Annexes

8.1 Annex 1 - Inventory of PAPs and their Affected Assets

Valuation of the land plot Legal Property No. of Type of Weighted No Locaction Name ownership Expropiation number owners land Area (m2) Price status amount ($) ($/m2) Kashar Petrit Sadik Agriculture 1 administrative 302/11 1 Registered 4231 54.5 230,387 Shurdhi land unit

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8.2 Annex 2 - Methodology Notes for the Valuation of the Expropriated Land 8.2.1 Legal Framework

The Constitution of Albania guarantees a Fair Compensation to the PAPs. It states in article 41.4: “Expropriations or those limitations of the right to property equivalent to the expropriation are permitted only against a Fair Compensation”. Based on this constitutional principle, Law Nr. 8561, dated 22.12. 1999 in article 2, point 1, states: “Expropriation of private properties is done only for the public interest, ……, in accordance with the conditions stipulated by law and the general principals of the international law.”; point 2, states “…in any case against a fair compensation.”

There are several decisions of the Council of Ministers, which regulate the procedures of the expropriation and the criteria for the estimation of the fair compensation. Decision nr. 138, dated 23.3.2000 (amended) “For the technical criteria of the valuation and calculation of the compensation of private properties being expropriated, of the impaired properties and of the rights of the third parties, for public interest” determines the rules for the valuation of different categories of properties, such as agriculture land, forests and pastures, as well as urban land and buildings.

The valuation of agriculture land, forests and pastures is based on the land prices for each cadaster zone published annually by the Office of Property Registration. The valuation of urban land is based on the prices for such category of land approved and published annually by the Council of Ministers.

The current methodology and the use of the average land prices for a whole cadastral zone do not always guarantee that these prices match the current market rates, for the following reasons:

1) Average prices of land are determined using the transactions registered in the Office of Property Registration. Generally in the past these transactions did not reflect the true price paid for properties as people tried to avoid taxes on capital gain. Apparently this situation has significantly improved during the last two – three years, but still in the absence of a free information about individual transactions it is difficult to confirm it; 2) Cadastral zones are generally big geographical areas, which sometimes start from urban city areas and end in rural areas. This positioning of the cadaster zones makes it very difficult for an average price of land to be the representative of each and every land parcel.

Resettlement Policy Framework in page 7, states that: “The prices for permanent expropriations for specific regions are specified with a map approved by a decision of the Council of Ministers. Land values must be current market prices; real estate agents should be consulted on actual land prices in the area, these prices should be actual amounts paid, not reduced amounts used to reduce taxes on land sale. It is essential that the values are objectively established; use of the zonal map can only be done if the values correspond to actual current values for land prices.

8.2.2 Description of the land area

The land being expropriated, property number 302/11 is situated in the cadastral zone 3866 in Yzberisht, Kashar Administrative Unit, Tirana Municipality. This property borders in its northern side with properties 302/6 and 302/4, in the eastern side with property no. 302/12, in the western side with property number 302/10 while in the south it borders with property number 468, which is mainly a drainage channel. The property is at the edge of the Kashar Administrativ Unit, where it meets the Tirana Administrativ Unit no. 5 (Kombinat area) and very

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close to the Vaqar Administrative Unit, all in the Tirana Municipality.

Property location

Referring to the Ortophoto data provided by the Albanian Authority for Geospace Information, the property that is subject of the expropriation does not have direct access to the road network. From the south side, where it borders the drainage canal in the future may be built a small bridge to provide access to the “Shaban Bardhoshi” road.

A high-voltage 110kV line is passing through the land parcel, occupying approximately 1/3 of the land area. Based on the current regulation of Technical Criteria for Design KTP18-78, chapter 12 “Passing the high-voltage lines in the urban areas” the horizontal distance from the side wires cannot be less than 4 meters for 35-110kV lines. Using this criterion the area of the land parcel of 1,219 m2 cannot be used for any other purpose than agriculture as, either it falls under the security area of the high- voltage lines, or the remaining area to the next land parcel is not enough for any construction purposes.

OSHEE officially asked the Municipality of Tirana about the detailed urban plans for the development of the area, which confirmed there are no approved detailed plans to develop this area.

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The land parcel is surrounded on three sides by residential buildings (most of them illegal constructions under the process of legalization), as shown in the photo below.

Subject Property

Rr. “Shaban Bardhoshi”

8.2.3 Analysis of the land market prices

The Consultant gathered information for values of land published by the Decision of the Council of Ministers (“DCM”) in four different periods, previous transactions of land plots in the area provided by the IPRO, as well as land plots offered for sale in the surrounding area.

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The Consultant also discussed with 2 real estate agents and other valuers and collected their opinion about the market prices in the area subject to valuation.

The conclusions of such work are analysed and summarized in the following tables.

Land Values in some cadastral zones LEK C a d a s t e r Z o n e Page DCM Nr. 3866 (Yzberisht) Nr. 2679 (Mëzez) Nr. 3064 () Nr. 8230 (Kombinat) Urban Land Agriculture Land Urban Land Agriculture Land Urban Land Agriculture Land Urban Land 82 VKM Nr. 139, datë 13.2.2008 2,578 297 2,517 365 1,708 608 20,717 49, 158 VKM Nr. 187, datë 06.3.2013 3,397 448 3,397 448 745 448 11,870 116 VKM Nr. 514, datë 30.7.2014 4,242 230 4,242 230 2,130 230 10,556 183 VKM Nr. 89 date 3.02.2016 4,242 448 4,242 448 500 448 23,703

The latest DCM of February 2016 indicates a land value in the Yzberisht cadaster zone (nr. 3866) of 448 Lek/m2 (EUR3.3/m2) and 4,242 Lek/m2 (EUR 31.2/m2) for agriculture land and urban land, respectively. Similar values are also shown for the neighboring cadaster zone of Mezez (nr. 2679), while the Kombinat cadaster zone (nr. 8230) has only urban land with an average land value of 23,703 Lek/m2 (EUR174.3/m2).

Through instructions of the Consultant, OSHEE officially asked the IPRO to provide the actual transactions, which took place in the area in the last five years. The relevant ones are shown in the table below.

Actual Transaction Provided by IPRO Cadaster Unit Price Unit Price Location Date of Transaction Type Nr. of Property Zone Currency Area (m2) Amount (EUR/m2) (Lek/m2) Mëzez 13-Jul-16 Urban Land Nr. 68/68, Vol 34, Fq 161 2679 EUR 21,447 3,803,800 177.4 24,121 22-Oct-12 Agriculture Land Nr. 342/46 Vol 20, Fq 47 3866 LEK 350 1,920,000 40.3 5,486 Yzberish 05-Feb-13 Agriculture Land Nr. 215/198, Vol 63, Fq 238 3866 LEK 50.5 20,957 3.1 415 Yzberish 05-Feb-13 Agriculture Land Nr. 215/82, Vol 18, Fq 103 3866 LEK 69 28,635 3.1 415 Yzberish 04-Apr-14 Agriculture Land Nr. 215/96, Vol 20, Fq 11 3866 LEK 300 390,000 9.6 1,300 Kodër Kamëz 08-Mar-16 Urban Land Nr. 1/612, Nr. 1/588, Nr. 1/580 8320 EUR 5,028 550,019 109.4 14,878 Note: The exchange rate used for converting unit prices is 1 EUR = 136 Lek

The Consultant gathered information for eight plot of lands offered for sale in the surrounding area, of different size and distance from the plot of land being valued. Comparables 1, 3 and 5 appear to be more similar to the land being valued due to their proximity with it and with the urban area as well as being agriculture land.

Comparable Properties Offered for Sale Offered Sale Offered Sale Area No. Address City Type Currency Source Price price (m2) (EUR) (EUR/sqm) 1 Yzberisht Tiranë Agricultural Land Euro Realestate.al 4,250 552,500 130 2 Yzberisht Tiranë Agricultural Land Euro Realestate.al 1,268 76,080 60 3 Yzberisht Tiranë Agricultural Land Euro Realestate.al 235 28,200 120 4 Yzberisht Tiranë Agricultural Land Euro Realestate.al 47,000 3,000,000 64 5 Yzberisht Tiranë Agricultural Land Euro Gazeta Celesi 1,650 165,000 100 6 Yzberisht Tiranë Agricultural Land Euro Gazeta Celesi 250 32,500 130 7 Yzberisht Tiranë Agricultural Land Euro 100 Oferta.com 350 26,250 75 8 Yzberisht Tiranë Agricultural Land Euro 100 Oferta.com 250 30,000 120

Min 235 26,250 60 Max 47,000 3,000,000 130 Median 809 54,290 110 Average 6,907 488,816 100

The map below indicates the position of the relevant actual transactions from IPRO (red colored points), most similar offers for sale (yellow colored points) and the land parcel subject to expropriation (green colored point).

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Considerations of the actual transactions provided by IPRO

Actual transactions are the most relevant information to be used in the valuation of the vacant land. However, these have to be carefully analysed for their suitability of being real comparables with the land being valued.

Transaction 1: Property Nr. 68/68, Vol 34, Fq 161 (Mezez)

This transaction is quite recent, but it is located in an urban part of Tirana, with high density of commercial facilities. It is not a real comparable for the land being expropriated, but it can be used as a sanity check for the value conclusion.

Transaction 2: Property Nr. 342/46 Vol 20, Fq 47 (Yzberish)

This property is situated quite inside the city of Tirana and it has been used for the construction of a residential building. There is no information if there are other agreements with the land developer for exchanging part of the land value with physical area of the building (which is the most common exchange of properties in Albania). Given its location it is not a real comparable for the land being expropriated.

Transaction 3-5: Property Nr. 215 (Yzberisht)

In these three transactions the properties are sold as agriculture land in 2013 and 2014 with unit prices of EUR3/m2 and EUR9.3/m2. Comparing these transactions with the offers in the same area (see the map above) and with the land prices provided by the GoA land value maps, it is evident that the seller and buyer agreed to a very low price to avoid capital gain taxes on property exchange. These transactions are excluded from the analysis.

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Transaction 6: Property Nr. 1/612, Nr. 1/588, Nr. 1/580 (Koder Kamez)

This transaction is quite recent and took place in a different cadaster zone (i.e. 8320), but with similar land typology with the land being expropriated. It is sold as urban land instead of agriculture land.

Considerations of the land plots offered for sale in the area

The Consultant analysed all comparable properties offered for sale for several variables and made the necessary adjustments for differences between these comparables and land being valued, as shown in the matrix of adjustments below.

Valuation Date: November 2016 Currency Euro Type of Land Parcel Land Subject of the Characteristics Comparison A Comparison B Comparison C Comparison D Comparison E Comparison F Comparison G Comparison H Valuation Land Parcel subject of Rruga Shaban Prush Rruga Enriko Telini Rruga Pularia Rruga Zalata Rruga Shaban Rruga Pularia Rruga Fabrika e valuation Bardhoshi Bardhoshi Qelqit

Location on Google Maps 41.319548, 19.763442 41.319548, 19.763442 41.321382, 19.740242 41.315003, 19.758147 41.321004, 19.755608 41.320062, 19.757661 41.319510, 19.765191 41.322000, 19.751705 41.321836, 19.767510 Area (m2) 4,231 4,250 1,268 235 47,000 1,650 250 350 250 Selling Price/Offer 552,500 76,080 28,200 3,000,000 165,000 32,500 26,250 30,000 Selling Price/Offer (Euro/m2)" 130 60 120 64 100 130 75 120 Typer of transaction discount offered discount offered discount offered discount offered discount offered discount offered discount offered discount offered Adjustment % -20% -20% -20% -20% -20% -20% -20% -20% Total adjustment -26.0 -12.0 -24.0 -12.8 -20.0 -26.0 -15.0 -24.0 Selling Price / Adjusted Price 104.00 48.00 96.00 51.06 80.00 104.00 60.00 96.00 Property rights similar similar similar similar similar similar similar similar Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment ------Selling price / Adjusted Price 104.00 48.00 96.00 51.06 80.00 104.00 60.00 96.00 Financial Conditions similar similar similar similar similar similar similar similar Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment ------Selling Price / Adjusted Price 104.00 48.00 96.00 51.06 80.00 104.00 60.00 96.00 Selling Conditions similar similar similar similar similar similar similar similar Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment ------Selling Price / Adjusted Price 104.00 48.00 96.00 51.06 80.00 104.00 60.00 96.00 Market Conditions for sale for sale for sale for sale for sale for sale for sale for sale Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment ------Selling Price / Adjusted Price 104.00 48.00 96.00 51.06 80.00 104.00 60.00 96.00

Location (distance from center, km) 4.67 4.67 6.50 5.20 5.30 5.20 4.70 5.70 4.30 Adjustment % 0% 15% 0% 0% 0% 0% 5% 0% Total adjustment 0.00 7.20 0.00 0.00 0.00 0.00 3.00 0.00 Area (m2) 4,231 4,250 1,268 235 47,000 1,650 250 350 250 Adjustment % 0% -10% -15% 30% -10% -15% -15% -15% Total adjustment 0.00 -4.80 -14.40 15.32 -8.00 -15.60 -9.00 -14.40 Utilities similar similar similar similar similar similar similar similar Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment ------Front side similar similar similar similar similar similar similar similar Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment ------Access superior similar similar superior superior superior similar superior Adjustment % 0% 0% 0% -5% -5% -5% 0% -5% Total adjustment - - - (3) (4) (5) - (5) Planning similar similar similar similar similar similar similar similar Adjustment % 0% 0% 0% 0% 0% 0% 0% 0% Total adjustment - - 0 0 0 0 0 0 Selling price / Adjusted Price 104.00 50.40 81.60 63.83 68.00 83.20 54.00 76.80 Total adjustments in absolute value (Euro) 26.00 24.00 38.40 30.64 32.00 46.80 27.00 43.20 Total adjustment % 20% 40% 32% 48% 32% 36% 36% 36%

The table below is the summary of all adjustments done to comparables land plots. The median and average of adjusted prices of land plots offered for sale is between 72-73 EUR/sqm.

Comparable Properties Offered for Sale Offered Sale Adjusted Sale Adjusted Sale Offered Sale No. Address City Type Currency Source Sqm price price price Price (EUR) (EUR/sqm) (EUR/sqm) (LEK/sqm) 1 Yzberisht Tiranë Agricultural Land Euro Realestate.al 4,250 552,500 130 104 14,144 2 Yzberisht Tiranë Agricultural Land Euro Realestate.al 1,268 76,080 60 50 6,854 3 Yzberisht Tiranë Agricultural Land Euro Realestate.al 235 28,200 120 82 11,098 4 Yzberisht Tiranë Agricultural Land Euro Realestate.al 47,000 3,000,000 64 64 8,681 5 Yzberisht Tiranë Agricultural Land Euro Gazeta Celesi 1,650 165,000 100 68 9,248 6 Yzberisht Tiranë Agricultural Land Euro Gazeta Celesi 250 32,500 130 83 11,315 7 Yzberisht Tiranë Agricultural Land Euro 100 Oferta.com 350 26,250 75 54 7,344 8 Yzberisht Tiranë Agricultural Land Euro 100 Oferta.com 250 30,000 120 77 10,445

Min 235 60 50 6,854 Max 47,000 130 104 14,144 Median 809 110 72.4 9,846 Average 6,907 100 72.7 9,891

The most similar comparables 1, 3 and 5 (highlighted in yellow) have an average of prices of EUR85/sqm. Considering the time span and costs to transform an agriculture land into an urban land eligible for construction, an additional downward adjustment of 20-30% is acceptable; i.e. a value range of approximately EUR 65 – 74 / sqm. This value range is close to the median and

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average of the whole pool of comparable land plots. The above range of prices will be applied to the land area outside the high-voltage-line effected area of 3,012 m2.

The rest of the land under the security area of the high-voltage line will be treated as agriculture land, i.e. 1,219 m2, and a price of EUR3.3 / m2 (following the DCM Nr. 89 date 3.02.2016) will be applied.

The map below indicates that the land being expropriated is situated at the border of two cadaster zones, i.e. 3866 - Yzberisht and 8230 – Kombinat. The urban land prices of these two cadaster zones as approved by the Government of Albania are ALL4,242 (EUR 31.2/m2) and ALL23,703 (EUR174.3/m2). As the prices for one cadaster zone are average prices of transactions in that zone land plots closer to the city center will have higher than average prices for the same zone. Under these circumstances the market value of the land plot being expropriated is expected to be higher than EUR31.2/m2 and lower than EUR174.3/m2.

Conclusion

Based on the fact and circumstances, the Consultant estimates that the market value of the land plot is within the range of: In Lek Area Nr. Land type Applied Price (Lek/m2) Land Value (m2) Min Max Min Max 1 Land Area without probability to construct 1,219 448 448 546,112 546,112 2 Free land Area 3,012 8,926 9,613 26,886,467 28,954,657 Totali 4,231 27,432,579 29,500,769 Lek 28,466,674

(twenty eight million four hundreds sixty six thousand six hundred seventy four)

Or equivalent (with an exchange rate of 1 USD = Lek 126.72 as of Dec 7th, 2016: Source: Bank of Albania)

USD 224,642

(two hundred twenty four thousand six hundreds forty two)

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Based on the analysis described in this RAP report, the Consultant is of the opinion that the PAPs do not have other impacts in their lives due to the expected expropriation. Therefore the fair compensation they need to receive will be limited to the market value of the land plot expropriated.

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8.3 Annex 5 – Survey Instruments

CENSUS

Name Surname Date of Birth Place of Birth Relationship Civil Status Education Employment

Petrit Shurdhi Family

PETRIT SHURDHI July 4, 1954 Tirana Householder Married High School Employed

MIRANDA SHURDHI (QOSHJA) May 12, 1959 Durres Spouse Married High School Housewife

SHEILA SHURDHI November 11, 1992 Tirana Daughter Single University Degree No

Vjollca Shurdhi Family

VJOLLCA SHURDHI (LULASHI) April 6, 1956 Tirana Householder Widow High School Retired

MARGARITA LULASHI May 14, 1987 Tirana Daughter Single University Degree Employed

IVA LULASHI April 11, 1989 Tirana Daughter Single University Degree Employed

Drita Shurdhi Family

DRITA SHURDHI November 9, 1957 Tirana Spouse Married High School Employed

LORIS SEGATTO November 1, 1957 Italy Spouse Married University Degree Employed

Bilbil Shurdhi Family

BILBIL SHURDHI November 8, 1959 Tirana Householder Married High School Employed

DHURATA SHURDHI June 18, 1971 Elbasan Spouse Married University Degree Employed

DIK SHURDHI November 15, 2005 Italy Son Single Elementary School No XHON SHURDHI May 21, 2008 Italy Son Single Elementary School No

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