Railway Electrification Project

Social Due Diligence Report Addendum

Project Number: 48025-003 Loan Number: 3527-UZB Prepared: September 2020

Republic of Uzbekistan: Central Asia Regional Economic Cooperation Corridor 2 (Pap-Namangan-Andijan) Railway Electrification Project

Prepared by the O’zbekiston Temir Yo’llari, Republic of Uzbekistan for the Asian Development Bank.

This Social Due Diligence Report Addendum is a document owned by the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff.

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.

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person AH Affected Household CC Civil Code EA Executing Agency GRM Grievance Redress Mechanism ha Hectare HH Household IA Implementing Agency LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan LC Land Code PIU Project Implementation Unit RLAR Report on Land Acquisition and Resettlement SCLRGCSC State Committee on Land Resources, Geodesy, Cartography and State Cadaster SDDR Social Due Diligence Report SPS Safeguard Policy Statement UTY 2¶]EHNLVWRQ 7HPLU

TABLE of CONTENTS

1. INTRODUCTION AND PROJECT BACKGORUND ...... 4 1.1 Project Background ...... 4 1.2 Construction of Uychi Block Post (passing loop) ...... 5 1.3 OBJECTIVE AND SCOPE OF THE SOCIAL DUE DILIGENCE REPORT ...... 7 2. LAR- RELATED LEGAL FRAMEWORK IN UZBEKISTAN APPLIED FOR UYCHI BLOCK POST (PASSING LOOP) CONSTRUCTION ...... 8 2.1 LAR-related legal framework in Uzbekistan ...... 8 2.2 Land code (30 April 1998) ...... 9 2.3 5HVROXWLRQRI&DELQHWRI0LQLVWHUVʋ 1RYHPEHU ...... 10 2.4 Civil Code (29 August 1996) ...... 13 2.5 5HVROXWLRQRI&DELQHWRI0LQLVWHUVʋ 0D\ ...... 14 3. SCOPE OF LAND ACQUSITION AND RESETTLEMENT IMPACTS ...... 15 3.1 General ...... 15 3.2 Public Utilities ...... 16 3.3 Summary of Impacts ...... 16 4. MITIGATION MEASURES PROPOSED FOR LAR IMPACTS ...... 17 4.1 Compensation for Land ...... 17 4.2 Compensation for Crops...... 18 5. PUBLIC CONSULTATION, INFORMATION DISSEMINATION AND GRM ...... 19 6. IMPLEMENTATION OF SDDR ADDENDUM ...... 20 7. MONITORING AND REPORTING ...... 20 APPENDIX 1: RESOLUTION OF THE GOVERNOR ON LAND ALLOCATION ...... 21 ...... 22 APPENDIX 2: CROP LOSS COMPENSATION BY DEPARTMENT OF AGRICULTURE OF DISTRICT ...... 27 $33(1',;$*5((0(1762))$506¶+($'621/$1'$//2&$7,21 ...... 30 APPENDIX 4: COMPENSATION PAYMENT RECEIPTS ...... 33 APPENDIX 5: PROJECT AREA PHOTOS ...... 35

1. INTRODUCTION AND PROJECT BACKGORUND

1.1 Project Background

1. The Government of Uzbekistan has requested ADB assistance for the electrification of the railway line Pap±Namangan-Andijan. The Central Asia Regional Economic Corridor 2 (Pap-Namangan-Andijan) Railway Electrification Project (the project) will electrify the missing 145.1 km of non-electrified track linking major cities in the populous Fergana Valley with Tashkent. This will facilitate direct and efficient operation of both freight and passenger train services and thereby promotes economic and social development of the Fergana Valley. 2. The project will be aligned with the following impacts: (i) stimulated economic growth in the Fergana Valley, and (ii) increased regional trade along CAREC Corridor 2. The outcome will be the level of passenger and freight service on the Pap- Namangan-Andijan railway line improved. 3. The Project is being implemented within a period of four years starting from 29 November 2017 (effective date of the loan) and estimated completion date is 31 December 2021. 4. The Project includes the following components: x Electrification of the main track (145.1 km), including the 3.5 km line from Block Post 136.1 to Uchkurgan - Voltage of transmission lines will be 27.5 kV x Electrification of the new alignment (6.7 km)-Voltage of transmission lines will be 27.5 kV x Construction of two new traction substations in Namangan (Raustan) and Khakulabad x External power supply transmission line (TL) of 52km to transmit electricity to two new substations to be constructed as follows: o 110 kV TL for Khakulabad (12 km) o 220 kV TL for Namangan/Raustan (40 km) x Purchase of machinery/equipment for maintenance of catenary system x Installation of signalling, telecommunications and SCADA

5. These activities are included in the project scope and will be funded through the approved loan. Besides this, the project includes components considered as associated and existing facilities which will be implemented through Government¶V own sources. Such facilities cover: i) Construction of the new alignment (6.7 km) ii) Construction of Uychi Block post (passing loop): x Construction of the automobile road for Uychi Block Post, between PK- 1311+50 and PK-1319+30 (780 m distance); x Borrow pit for construction in PK-1320+30-PK-1321+50 (120m distance); 4

x Building of Uychi Block Post (passing loop) in PK-1360+00. iii) Locomotive depot at Andijan to be upgraded 6. Per ADB SPS (2009), these activities are considered as associated facilities which are not funded as part of the project (funding may be provided separately by the borrower/client or by third parties), and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project. HRZHYHU WKH $'%¶V 636 UHTXLUHV WR FDUU\ RXW D GXH diligence of the implemented social safeguards activities and provide UHFRPPHQGDWLRQV LIDQ\ LQFOXGLQJFRUUHFWLYHDFWLRQVVXFKWKDW$'%¶VUHSXWDWLRQLV not compromised vis-à-vis the associated facility. 7. All associated and existing facilities as listed in para 5. are already covered by the original SDDR which was approved and disclosed on ADB website1 in February 2017. However, the construction of Uychi Block post was not covered by the original SDDR due to lack of ready design. Therefore, this Addendum to the original SDDR has been prepared for the construction of Uychi Block post. 8. $V SDUW RI 3URMHFW¶V VRFLDO VDIHJXDUGV compliance, for the components of Uychi Block Post described in item (ii) of paragraph 5, a social due diligence assessment has been conducted and recommendations and proposed actions are provided in this addendum to the Social Due Diligence Report (SDDR). 1.2 Construction of Uychi Block Post (passing loop) 9. The final design for Uychi Block Post (passing loop) has been prepared and approved on 8 April 2017. The construction works was started in January 2019 in Jalaobod and Kuchkorota massives in the Uchkurgan district. The construction works have been conducted on the basis of the design institute¶s (Boshtransloyikha) final drawings and Uzdaverloyihka Namangan branches land allocation document. 10. For the construction of Uychi Block Post, land allocation procedures have been already been initiated by UTY and khokimiyats2 for affected land plots, in accordance with national legal requirements. For this purpose, the resolution No. 1489 of the Governor of Uchkurgan district of Namangan region has been made on 15 December 2018 (see Appendix 1). According to this resolution, compensation to 3 farm owners for crops losses has been envisaged. According to the final drawings and land allocation document, there are a total of 7.61 ha agricultural land permanently and temporary affected. The detailed information on land acquisition is presented in Table 1.1 below.

1 https://www.adb.org/sites/default/files/project-documents/48025/48025-003-sddr-01.pdf 2Local government authority that interfaces between local communities and the government at the regional and national level. It has ultimate administrative and legal authority over local populations residing within its jurisdiction. 5

Table 1.1: Affected land (permanent and temporary impact)

Total Permanently Temporary No Name of the facility Affected affected affected area (ha) area (ha) area (ha) Construction of the automobile road for Uychi Block Post (passing loop) distance 1 0.65 0.645 - from PK-1311+50-PK-1319+30 (780 m distance) Borrow pit for construction in PK- 2 0.55 - 0.55 1320+30-PK-1321+50 (120 m distance) Building of Uychi Block Post (passing 3 6.41 2.51 3.9 loop) in PK-1360+00 Total 7.61 3.16 4.45 11. The scheme of the Uychi Block Post (passing loop) is provided in Figure 1.1

Figure 1.1:Scheme of Uychi Block Post (passing loop)

1.3 OBJECTIVE AND SCOPE OF THE SOCIAL DUE DILIGENCE REPORT 12. Present due diligence assessment was conducted based on desk review of available materials, site visits and consultation with specialists, stakeholders and population from the project area. 13. The following materials (see Appendix 1) have been reviewed: x Land Allocation document prepared by Uzdaverloyikha Namangan branch; x Uchkurgan district khokims decision on land acquisition; 14. The following LAR-related aspects have been reviewed in the scope of due diligence of Uychi Block Post (passing loop) construction:

i) Legal framework applied for land acquisition and resettlement activities per local legislation; ii) Identification of impacts: full or partial, permanent or temporary (agricultural and non- agricultural land); iii) Mitigation measures proposed by UTY/local government that cater to the impacts iv) The implementation status of LAR-related activities, particularly: status of the local government¶s (khokimiyat) decision on land allocation, status of land taken and allocation, payment of the compensation etc.; v) Public consultation and disclosure procedures implemented; vi) Additional assistance and livelihood restoration measures: Rental and shifting assistance provided by law (if any); vii) Establishment of GRM in place, Grievances recorded and resolved (if any);

15. Based on this due diligence assessment, recommendations and proposed actions have been provided on LAR-related activities.

2. LAR- RELATED LEGAL FRAMEWORK IN UZBEKISTAN APPLIED FOR UYCHI BLOCK POST (PASSING LOOP) CONSTRUCTION

2.1 LAR-related legal framework in Uzbekistan

16. Several legal and regulatory documents provide the general basis of alienation of lands in Uzbekistan for the state and social needs and compensation to the land owners in accordance with the registered rights for the use of land as presented in table 3.1 below. Table 3.1: Main legal documents related to LAR activities Date of approval and Name of legal document Short description amendments Land Code of the The Code was approved by the The Code regulates the issues of Republic of Uzbekistan Law of the Republic of Uzbekistan withdrawal and provision of the land dated 30.04.1998 with plots for non-agricultural needs and amendments dated 30.08.2003 compensation for losses of agricultural and 03.12.2004. production. Civil Code of the Republic The Code was approved by the The Code provides definition of the of Uzbekistan Laws of the Republic of Uzbekistan property, basic concepts for the objects dated 21.12.1995 No 163-1 and of property, basics for termination of the 29.08.1996 No 256-1, in property rights and rights for accordance with the latest compensation for losses in connection amendments dated 22.09.2010 No with the loss of the property rights. ZRU-260 Resolution of the Cabinet 25.05.2011 The resolution defined measures on of Ministers of the improvement of the order of allocation of Republic of Uzbekistan the land plots for town construction No 146 activities and for other non-agricultural needs. Resolution of the Cabinet 16.11.2019 The resolution defined the order of of Ministers of the compensation of losses for the citizens Republic of Uzbekistan and legal persons in connection with No 911 withdrawal of the land plots for the state and social needs. Resolution of Cabinet 16.07.2018 7KHUHVROXWLRQ³2Qmeasures to improve Ministers ʋ the effectiveness of training and realizing projects with participation of international financial institutions and foreign government financial RUJDQL]DWLRQV´ SDUWO\ SURYLGHV WKDW payment of compensation for the land acquisition , demolition of houses, other structures, structures or plantings in the framework of projects with the participation of IFIs , if this is provided for by project agreements, is carried out by authorized bodies in accordance with the requirements of IFIs FGFOs. Decree of the President of 01.08.2018 'HFUHH ³2Q PHDVXUHV RQ FDUGLQDO improvement of investment climate in 8

Date of approval and Name of legal document Short description amendments the Republic of the republic of Uzbekistan" partly Uzbekistan ʋ provides that .the adoption of decisions on the seizure of land for state and public needs is allowed only after an open discussion with interested parties whose land plots are planned to be seized, as well as assessing the benefits and costs; demolition of residential, industrial premises, other structures and structures belonging to individuals and legal entities, with the withdrawal of land plots is allowed after full compensation of the market value of immovable property and losses caused to owners in connection with such withdrawal. 17. The detailed description of main LAR-related requirements reflected in the above mentioned regulations are presented below. 2.2 Land code (30 April 1998)

18. The Land Code (LC) is the main regulatory framework for land related matters in Uzbekistan. The LC regulates allocation, transfer and sale of land plots, defines ownership and rights on land. It describes responsibilities of different state authorities (Cabinet of Ministers, province, district, city Hokimiyat) in land management; rights and obligations of land possessor, user, tenant and owner; land category types, land acquisition and compensation, resolution of land disputes and land protection. The LC also defines the terms of rights termination on land plot, seizure and land acquisition of land plot for state and public needs, and terms of seizure of land plot in violation of land legislation. The LC provides that:

x Withdrawal of the land or part thereof for state and public needs is made by agreement with land user and tenant by decision respectively khokim of district, city, region or by decision of the Cabinet of Ministers (Article 37, Clause 1). In case of disagreement the land user or tenant of the land with a decision of district (city, region) khokim, or the decision of the Cabinet of Ministers to withdraw the land, this decision may be appealed in court (Article 37, Clause 2); x Losses caused by violation of the rights of land users, tenants and land owners (including lost profits), shall be reimbursed in full (Article 41, Clause 3); x The withdrawal of the land for state or public needs may be produced after allocated to land user or tenant an equivalent land plot and the compensation all losses including lost profits (Article 41, Clause 4).

x The LC (Article 36, Clause 1) specifies instances when the right to the land can be terminated. Termination of the right of possession and the right of permanent or temporary use of land is made by decisions, respectively, of khokims of districts, cities, regions or by the decision of the Cabinet of 9

Ministers on the proposal of the bodies exercising state control over the use and protection of land, on the basis of supporting documents justifying the termination of the rights. In case of disagreement with the decisions of the Cabinet of Ministers and the officials of the termination of the right of possession, the right of permanent or temporary land use natural and legal persons may appeal to the court (Article 36, Clause 4).

19. According to Article 39, Clause 1 land user, tenant and land owner have besides others the right for reimbursement of losses (including lost profits), in case of withdrawal of land or compensation costs for voluntary renunciation of land (Article 39, Clause 1, sub-Clause 7).

20. The LC (Article 86, Clause 1) specifies the cases where losses of land users must be compensated in full including lost profits:

x seizure, redemption or temporary occupation of land; x the restriction of their rights in connection with the establishment of water protection zones, coastal strips, sanitary protection zones of water bodies, zones of formation of surface and underground water, zones of resort areas, public areas of biosphere reserves, protected zones around national parks, game reserves, national nature monuments, sites of cultural heritage, discharges, roads, pipelines, communication and power lines.

21. According to the Article 87, Clause 1 losses of agricultural and forestry production, caused by the withdrawal of agricultural and forest land, including agricultural land, owned and used by individuals to use them for purposes not related to agriculture and forestry, restrictions on the rights of land users and tenants or deterioration land due to the impact caused by the activity of enterprises, institutions and organizations, shall be reimbursed in addition to the indemnity provided for in Article 86. Losses of agricultural and forestry production is compensated by legal and natural persons:

x which removes withdrawn agricultural and forest lands for purposes not related to agriculture and forestry;

x around objects that set security, sanitary and protection zones with the exception of the revolutions of agricultural and forest land, or transfer them to less valuable lands.

2.3 5HVROXWLRQRI&DELQHWRI0LQLVWHUVʋ911 (16 November 2019)

22. This resolution determine the procedure for withdrawing a land plot or part thereof for state and public needs belonging to individuals (individual entrepreneur, citizen of the Republic of Uzbekistan, foreign citizen and stateless persons) and legal entities (business entities, non-governmental organizations) on the basis of ownership, permanent use or temporary use, as well as in the framework of investment projects and compensation for property owners real estate located on this land.

23. Then seizing land for state and public needs and implementing investment projects by the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of the city of Tashkent, regions or district (city), land plots occupied by dilapidated and emergency housing facilities, including unused ones, are selected first of all objects belonging to the category of cultural heritage), as well as socio-economic objects from which they need construction.

24. According to the Clause 11 If there are grounds for withdrawing the land for investment projects, investors prepare and submit to the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of the city of Tashkent, regions or district (city).

25. According to the Chapter 3 (General procedure for providing compensation to owners in connection with the demolition of real estate), Clause 11 of this resolution Compensation is paid as follows:

x market value of real estate located on the seized land; x the market value of the right to the seized land; x expenses associated with the temporary acquisition of another property, including relocation; x the rich benefits of individuals and legal entities; x other expenses and losses stipulated by law or agreement. 26. The cost of self-constructed housing, industrial and other buildings and structures should also be covered. Types of compensation provided:

x cash; x the provision of another property to the property; x land plot; x other types of compensation provided by the agreement. 27. By agreement of the parties, the owner may be provided with several types of compensation, taking into account the estimated value of the property. The term for the issuance of a new property instead of demolished property should not exceed 24 months from the date of issuance of another property for temporary use. If a new property is not issued within the indicated period, the entrepreneur pays the owner a fine of 0.01 percent for each day of delay. In this case, the size of the fine should not exceed 50 percent of the value of the violated property.

28. An agreement providing for the provision of property as compensation is subject to state registration in cases provided for by law. When land is withdrawn for state and public needs, compensation is provided by the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of the city of Tashkent, regions or district (city) from the funds of the corresponding centralized fund and other sources not prohibited by law. When land is withdrawn for investment projects, compensation is paid at the expense of investors and other sources not prohibited by law. Compensation is provided in the following order:

x by transferring funds to the appropriate bank (deposit) account of the owner; 11

x in case of seizure of an apartment building or a land plot occupied by a blocked house (town house), the owner, by agreement of the parties, shall be given ownership of a small apartment located in the same or another area (city) than the area of the previous apartment. 29. An apartment can be issued from an apartment building or a locked house (town house), which is being built on a land plot seized at the request of the owner. In this case, the owner will be given temporary housing for rent at the expense of the initiator, which he and his family members will receive until this apartment is transferred;

30. in case of withdrawal of a land plot occupied by a non-residential object, the owner, upon agreement of the parties, is granted non-residential object, the area of which is located in a particular district (city) not less than the total area of the previous non- residential object.

31. If a non-residential object is provided from an object being built on a seized land, the owner is given a temporary non-residential object for rent at the expense of the initiator before the transfer of this non-residential object;

x in case of seizure of a land plot occupied by an individual residential premises (including construction in progress, but registered in the prescribed manner) - by agreement of the parties, the owner shall be given ownership of an individual residential premises with a land plot located in a particular area (city), and residential premises with insignificant conditions less than before; x in the event of the seizure of a land plot owned by the right of ownership, permanent use or temporary use - this owner shall be given another land plot, the area of which is equal to the previous one. x If the market value of the right to the seized land exceeds the market value of the right to the land plot provided as compensation, this difference shall be subject to compensation to the right holder of the land plot. x If the market value of the right to the seized land is lower than the market value of the right to the land granted as compensation, this difference does not require compensation by the copyright holder of the land. x By agreement of the parties, the size and size of other types of compensation may be reduced; instead, an additional land plot may be provided as compensation. 32. In case of providing a land plot for individual housing construction, the owner and members of his family are provided with temporary housing for rent on the initiative of the owner until the completion of construction and the commissioning of an individual residential building. In this case, the construction period should not exceed two years from the date of conclusion of the contract.

33. At the request of the owner, he will be provided with residential and non-residential premises, an industrial and other building and construction, in which the same land plot will be allocated as his land, and broken in the allotted land, and the same 12

residential and non-residential premises will be built, industrial and other building and construction, as in the layout, shape, size, size and other parameters.

34. In this case, the initiator prepares the design and estimate documentation for this real estate object, the amount indicated in it is transferred in the prescribed manner to the construction organization for the construction of the real estate object on the basis of an agreement concluded between the initiator, the owner and the construction organization.

2.4 Civil Code (29 August 1996)

35. The Civil Code (CC) defines the legal status of participants of civil relations, the grounds and procedure of implementation of property rights and other proprietary rights, rights on intellectual property, regulates the contractual and other obligations, as well as other property and related personal non-property relations. The CC defines general rules of property seizure, determination of property cost and rights for compensation, terms of rights termination.

36. The CC provides that: person whose right has been violated may demand full compensation for damages, unless the law or the contract provides compensation for losses in a smaller size (Article 14, Clause 1). The Civil Code (Article 14, Clause 2) also specifies that losses are understood as:

x expenses that the person whose right is violated, made or must make to restore the violated right; x the loss of or damage to property (real damage); x the revenues that this person would have received under normal conditions of civil turnover if his right had not been violated (lost profits).

37. According to artLFOH&ODXVH³,IWKHSHUVRQKDVYLRODWHGODZUHYHQXHVUHFHLYHG as a result of this, the person whose rights were violated, has the right to demand compensation along with other losses, lost profits in the amount not less than such SURILWV´

38. According WRDUWLFOH³,IDQLQWHUQDWLRQDOWUHDW\RUDJUHHPHQWVWLSXODWHVRWKHUUXOHV than those stipulated by civil legislation, rules of the international treaty or DJUHHPHQW´7KLVUXOHLVDFRPPRQUXOHIRUDOO8]EHNLVWDQ¶VODZV

39. According to the Article 8, Clause 3, the rights to the property which are subject to state registration shall arise upon the registration of the relevant rights to it, unless otherwise provided by law. Article 84, Clause 1 provides that the right of ownership and other real property rights, creation, transfer, restriction and termination of these rights are subject to state registration. This means that without registration the right to real estate property does not enter into the force. This statement is very important for the further understanding of LAR processes related to land acquisition and EXLOGLQJ¶VGHPROLWLRQ

2.5 Resolution of CabinHWRI0LQLVWHUVʋ 0D\

40. This Resolution is aimed to improve the procedure of granting land plots, protect the rights of legal entities and individuals on land, improve the architecture of settlements and the efficient use of their land for construction in accordance with the Land Code and the Town Planning Code. This resolution has approved two Regulations: (i) Regulation on the procedure for granting land for urban development and other non-agricultural purposes, (ii) Regulation on the procedure of compensation for land possessors, users, tenants and owners, as well as losses of agriculture and forestry. The Regulation on the procedure for granting land for urban development and other non-agricultural purposes contains the following provisions:

x Order of land plot location, preparation and approval of site selection and land allocation documents without approved planning documentation; x Order of placement, selection and land allocation with approved planning documentation, x Order for rejection in the selection and land allocation for construction; x Provision(sale) of land plots for individual housing construction; x Elements of urban planning documents and development regulation lines.

41. The Regulation on the procedure of compensation for possessors, users, tenants and land owners, as well as losses of agriculture and forestry includes the following:

x Compensation for losses of owners, users, tenants and land owners; x Compensation for losses of agriculture and forestry; x cost of irrigation and developing equal new land plot in return for seized irrigated agricultural land; x Cost of fundamental improvement of grassland and pasture; x Scheme for determination of losses of land possessors, users, tenants and owners, as well as losses of agriculture and forestry; x Coefficients on location of seized land plots.

42. The losses of land possessors, users, tenants and owners, as well as losses of agriculture and forestry should be compensated before granting of documents certifying rights on land plot. The regulation also orders that demolition of house, or building shall be done only after agreeing on compensation and providing replacement premises. The regulation orders that compensation has to be paid before starting any construction work. The land possessors, users, tenants and owners, whose land plots are seized and to whom land plots are granted, in case of disagreement with defined amount of losses, can appeal to court. In case of acquisition and temporary occupation of land plot or part thereof, the following would be subject to compensation:

x Cost of land plot, owned by individuals and legal entities; x Cost of residential houses, constructions and installations, including incomplete constructions, and also located outside of allocated plot, if its further utilization is impossible due to seize of land plot. 14

x Cost of fruits and berries, protection and other perennial plants; x Cost of incomplete agricultural production; x Lost profit.

43. Above described Laws and Regulations mention that non-titled and squatters on land and building/structures are ineligible for any compensation.

44. 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 in Uzbekistan.

3. SCOPE OF LAND ACQUSITION AND RESETTLEMENT IMPACTS

3.1 General

45. There is only two massives which will be affected due to the permanent and temporary land acquisition (see Table 3.1).

46. The impacts on land acquisition and involuntary resettlement for the project components are categorized into permanent and temporary impacts for this project.

i. Permanent impacts: Permanent land acquisition includes loss of farmland required for: x Construction of the automobile road for Uychi Block Post (passing loop) distance from PK-1311+50-PK-1319+30(780 m distance); x Borrow pit for construction in PK-1320+30-PK-1321+50 (120 m distance); x Building of Uychi Block Post (passing loop) in PK-1360+00. ii. Temporary impacts: x Partly for the component building of Uychi Block Post (passing loop) in PK- 1360+00 and Borrow pit for construction in PK-1320+30-PK-1321+50 (120 m distance) please see table 1.1 above.

47. According to the District Decisions by Uchkurgan Khokims, there are in total 7.61ha of land (3.16 ha permanent and 4.45 ha temporary) which belongs to 3 AHs affected in Uchkurgan district. There are no residential and non-residential buildings affected by the project (see Table 3.2).

Table 3.1: List of Affected Districts and Massives (permanent impact)

# Name of the Name of the Name of the Total number of Province District Massives Massives 1 Namangan Uchkurgan Jalolobod and 2 Kuchkorota

48. Out of totally affected 7.61 ha lands a total of 7.06ha (92.78%) are Arable/Crop cultivation including the 0.25 ha land for ditches, 0.55 ha (7.22%) are khokimiyat

reserve lands. Moreover, there are no garden and no trees affected by the Project (see Table 3.3). The crop loss compensation is calculated by the Department of Agriculture of Uchkurgan district khokimiyat.

Table 3.2:Affected Land (permanent and temporary impact)

Total Affected Land (ha) Including Name of Name of Name of Impact Total # the the the Affected Khoki Type Arable/Crop miyats Province District Massive Land Ditches (ha) Cultivation Reserv e land

1 Jalolobod Permanent 3.16 2.9 - 0.25 Namangan Uchkurgan and 2 Kuchkorota Temporary 4.45 3.9 0.55 - Total 7.61 6.8 0.55 0.25 Source: Land allocation document and Impact Assessment Survey, November-December 2019.

49. As per the census survey, it is found that there are mainly three types of crops being cultivated which will be affected due to land acquisition. These crops are corn and cotton/wheat (see Appendix 2). 3.2 Public Utilities

50. According to the Land allocation document and impact assessment, no impacts will be caused on any public utility/common use property by the project.

3.3 Summary of Impacts

51. Summary details on various impacts per Project components are shown in Tables 3.5. It should be noted, that according to the land allocation document and impact assessment survey there are not any vulnerable and severely affected households affects by these components of the Project.

Table 3.3:Summary of Impacts

Permanent Temporary # Type of Impact Remarks impact impact . 1 Number of affected Villages 2 Jalolobod and Kuchkorota . 2 Number of affected land parcels 3 3 agricultural land plots . 3 Total Affected Land area (ha) 3.16 4.45 7.61 ha in total . 4 Khokimiyat Reserve Land - 0.55 . 5 Affected agricultural cultivated 6.81

land area (cotton and corn) (ha) . 6 Affected irrigation channels, 0.25 ditches and secondary roads 7 Affected Orchard/ Garden land 0 area (ha) . 8 Number of affected Trees 0 . 9 Number of affected residential 0 structures . 10 Number of affected non- 0 residential structures 11 Number of affected businesses 0 12 Number of total AHs 3 Farmers

4. MITIGATION MEASURES PROPOSED FOR LAR IMPACTS

52. In order to compensate the LAR impacts due to acquisition of land plots because of Uychi Block Post (passing loop) construction, the following mitigation measures (compensation mechanisms) have been proposed by UTY in accordance with local legislation: 4.1 Compensation for Land

53. Land in the country is owned by the State, thereby the compensation for agriculture ODQGZLOOEHRQD³ODQGIRUODQG´EDVLV$FFRUGLQJWRWKH/DQGFRGHRI5HSXEOLFRI Uzbekistan, the acquisition of the land for state or public needs may be produced after allocated to land user or tenant an equivalent land plot and the compensation all losses including lost profits (Article 41, Clause 4). The land is provided to land user by the District Khokimiyat following assessment by the Land Acquisition and Resettlement Committee (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. In addition to this, the APs (who lose their land permanent) will be provided with transitional allowance in terms of loss of income equivalent to 4 years of net average income. Transaction costs, registration fees, if any, will be borne by the UTY. In cases where in all or parts of the lease holding become unviable, unaffected portions of a plot will also be compensated.

54. The land allocation and compensation for land users is regulated by the Resolution RI&DELQHWRI0LQLVWHUVʋwhich defines that due to acquisition and temporary occupation of land plot or part thereof, the following is subject to compensation:

x Lost profit.

55. No land for land will be provided taking into account the small scale of permanent and temporary impact of the project: Two farms permanently lost 0.25ha and 0.4ha land plots and only 1 farm has both permanent and temporary land impact which is 2.26ha and 3.9ha respectively (see Table 4.1). The Khokimiyat proposal to allocate new land plot with respective affected area to owners of farms have been rejected by them. The APs clarified that it was economically unprofitable to use and cultivate such small area of landWKDW¶VZK\they have agreed to allocate the affected area of their land plot to the Project which is confirmed by signed agreement letters attached in Appendix 3.

Table 4.1: Permanent and Temporary Land Acquisition per Farms

Permanently Temporarily Total ID of the affected affected No affected land Farm land area land area area (ha) (ha) (ha) 1 N-U-F-1 2.26 3.9 6.16 2 N-U-F-2 0.25 - 0.25 3 N-U-F-3 0.4 - 0.4 Total 2.91 3.9 6.81

4.2 Compensation for Crops

56. Loss of income from crops planted on the affected land will be compensated at fair market price based on an allowance equivalent to 1-year average net income computed based on the average income over the past 3 years. Loss of crops due to temporary land acquisition along the Right of Way

57. Affected households will be compensated for primary (and secondary crops if any) on affected land based on 1 year of production costs (inputs) plus an allowance equivalent to 1-year average net income based on the average income over the past 3 years. The total loss of profit to be paid to all 3 AHs amounts to 11,744,102 UZS.

58. Advance notice will be served to the APs to harvest the crops if possible prior to construction. Where feasible, the schedule of construction will be adjusted to avoid the crop season. Restoration of land will be done by the contractor to previous use and farmers will be allowed to continue their cultivation post the construction.

Table 4.2:Compensation for Crop Losses

# Name of Permanent and temporary land acquisition the Total affected Loss profit from Type of main Farm cultivated area, affected land, UZS cultivated ha crops 1 N-U-F-1 6.16 10,770,988 Cotton/wheat 2 N-U-F-2 0.25 438,225 Cotton/wheat

3 N-U-F-3 0.4 534,889 Corn Total 6.81 11,744,102 -

5. PUBLIC CONSULTATION, INFORMATION DISSEMINATION AND GRM

59. Before construction of the new alignment, Public Consultations were not conducted by local government and/or UTY but individual meetings with participation of ADB consultants and UTY specialists were organized in September-December 2018 and April 2019. Besides, the affected AHs have been already participated in public consultation conducted on 23 November 2016 within the preparation of draft LARP of the Project (see the photos in Appendix 5). During the public consultation and the individual meetings as well APs were informed and consulted on all important aspects of the Project by national and international consultants. However, it was clearly noted, that the LAR-related activities for were not included the Uychi Block Post (passing loop) construction in the draft LARP prepared for the suggested Project components to be financed by ADB. The following LAR related topics have been discussed with the AHs:

x Introduction on Project background and components x Expected project LAR impact (permanent and temporary) x Types of losses subject for compensation under the project x Groups of APs eligible for compensation x GRM proposed for the project

60. A grievance redress mechanism has been established at the project level by co- opting the local grievance mechanism to allow affected persons appealing any disagreeable decision, practice or activity arising from land or other assets compensation. It shall be noted, that the grievance redress procedure in Uzbekistan is also regulated by the national legislation of Republic of Uzbekistan, in particular by WKH ODZ ³2Q &LWL]HQV¶ $SSOLFDWLRQV´ DQG WKH ³/DZ RQ WKH RUGHU RI VXEPLVVLRQ RI appeals oISK\VLFDODQGOHJDOHQWLWLHV´(#378, 03 December 2014). According to the ³/DZ RQ WKH RUGHU RI VXEPLVVLRQ RI DSSHDOV RI SK\VLFDO DQG OHJDO HQWLWLHV´ WKH application or complaint shall be considered within fifteen days from the date of receipt in the state authority, which is obliged to resolve the issue on the merits, as well as require additional study and (or) check, a request for additional documents - up to one month. 7KHVXEPLVVLRQSURFHGXUHIRUJULHYDQFHVDQGFLWL]HQV¶DSSOLFDWLRQV has been discussed during the meetings with AHs in September 2018 and the Project leaflets and brochures with required contact information has been distributed to APs. Besides, there is a 1st deputy of khokim responsible for industry, capital construction communications and utilities, who is usually responsible for any issues/complaints regarding the construction and land allocation.

6. IMPLEMENTATION OF SDDR ADDENDUM

61. Payment of compensation under the SDDR Addendum was commenced after a number of preparatory tasks were completed. These tasks are:

(i) Disclosure and consultation (including the notification of compensation package) (ii) Issuance of IDs and bank account for the AH (iii) Disbursement of compensation and assistance (iv) Grievance resolution, if any (v) Compliance review and reporting (vi) Monitoring and reporting All three AHs have received full compensation amounts to 11,744,102 UZS, which has been transferred by UTY to AHs bank accounts in April 2019. The payment orders are presented in Appendix 4. The verification of the $GGHQGXP¶VLPSOHPHQWDWLRQZLOOEH confirmed by the social semi-annual monitoring report (SSMR) to be prepared for the next reporting period.

7. MONITORING AND REPORTING

62. Monitoring of the SDDR Addendum will be the responsibility of UTY. The Consultant Supervision Consultant (CSC) and UTY, with its social safeguards specialist will regularly monitor and measure the progress of implementation of the LAR-related activities, as well as the all proposed mitigation measures.

63. The monitoring report will contain: (i) accomplishment to-date, (ii) proof of compensation and payment, (iii) problems encountered, grievances received and addressed, consultations carried out during the reporting period, if any, and (iv) suggested options for corrective measures. UTY will report the progress of SDDR addendum implementation through SSMR. The SSMRs will be posted on the ADB website upon acceptance of the report by ADB.

APPENDIX 1: RESOLUTION OF THE GOVERNOR ON LAND ALLOCATION

APPENDIX 2: CROP LOSS COMPENSATION BY DEPARTMENT OF AGRICULTURE OF DISTRICT

APPENDIX 3: $*5((0(1762))$506¶+($'621/$1' ALLOCATION

APPENDIX 4: COMPENSATION PAYMENT RECEIPTS

APPENDIX 5: PROJECT AREA PHOTOS Borrow pit for construction

Automobile road and Building for Uychi Block Post

Individual meetings with all 3 affected AHs