For the E 75 Motorway Section: Grdelica – Caricina Dolina)

RAP for E 75 Section Grdelica –Caricina Dolina KS doo SERBIA, CORRIDOR X HIGHWAY PROJECT RESETTLEMENT ACTION PLAN (For the E 75 Motorway Section: Grdelica – Caricina Dolina) July 2013 RAP for E 75 Section Grdelica –Caricina Dolina KS doo Contents Abbreviations Executive Summary CHAPTER I – Introduction CHAPTER II – Legal Framework and Resettlement Policy Provisions CHAPTER III – Expropriation and Compensation Payment CHAPTER IV – Social Impact Assessment CHAPTER V – Implementation Arrangements ANNEX I – Table with data from survey ANNEX II – Survey questionnaires ANNEX III – Nature of impact ANNEX IV – Grievance recording template ANNEX V – Entitlement matrix ANNEX VI – Progress monitoring table ANNEX VII – Comparative review of compensation rates and market prices of land in different regions of Serbia ANNEX VIII – Brochure distributed to PAPs ANNEX IX – Inventory of PAPs 2 RAP for E 75 Section Grdelica –Caricina Dolina KS doo ABBREVIATIONS CLEIA CORRIDOR LEVEL ENVIRONMENTAL IMPACT ASSESMENT CSW CENTER FOR SOCIAL WORK EIA ENVIRONMENTAL IMPACT ASSESMENT GC GRIEVANCE COMISSION KSDOO KORIDORI SRBIJE D.O.O. MOE MINISTRY OF ENVIRONMENTAL PROTECTION PAP PROJECT AFFECTED PERSON PERS PUBLIC ENTERPRISE ROADS OF SERBIA RPF RESETTLEMENT POLICY FRAMEWORK RSD REPUBLIC SERBIA DINARS SIA SOCIAL IMPACT ASSESSMENT 3 RAP for E 75 Section Grdelica –Caricina Dolina KS doo Executive Summary The Resettlement Action Plan (RAP) is a document whose preparation is determined by the Resettlement Policy Framework (RPF) adopted by the Government of the Republic of Serbia on June 2009. The objective of this document is the protection of Project Affected Person (PAP) rights, fulfillment of international obligations, as well as a greater extent to transparency of the expropriation process. Its objectives are also to evaluate all physical and economic impacts, displacement, or temporary or permanent loss of assets or facilities that may be experienced by Project affected communities. It thus identifies people affected by the Project‟s activities, the nature and the degree of the impact on them, as well as mitigating measures taken to minimize the effects. This Resettlement Action Plan (RAP) has been prepared in the context of the Corridor X Highway Project and is specifically related to the E 75 motorway, from Grdelica to Caricina Dolina, in the total length of 12 km and involving approximately 100.4 hectares of land to be expropriated. There are 295 cases identified at this Section. The section spread over 9 cadastral municipalities. The inventory of PAPs is shown in Annex IX. The number of affected households is not necessary equal to the number of cases, as there might be two or more owners on the same parcel. The exact number of owners is hardly to be known as some of them used to give authorization to the relatives (heir or someone with whom he/she shares property) to sign contract on expropriation. In the inventory, one parcel/case is recorded as one contract. The Government of the Republic of Serbia intends to develop and complete the core road infrastructure on Corridor X. The objective of this project is to facilitate sustainable economic development and ensure that the country capitalizes on its geographical position to continue its development as a key transit country on the Trans-European Network. The Government of the Republic of Serbia requested the assistance of the European Investment Bank (EIB) to lead the preparation and contribute to the financing of a program aiming to develop two East sections (on E 80, Prosek – Crvena Reka and Ciflik - Pirot (East) and two southern sections (on E 75 Grdelica- Caricina Dolina and Caricina Dolina - Vladicin Han) of Corridor X. Expropriation is a process which involves the time to offer compensation as well as time for the PAPs to accept it. In the meantime PAP scan disagree and/or complain to the Grievance Committee. At the time of preparation of this specific RAP, expropriation is at the stage of submitting of individual proposals to affected households. The RAP is prepared according to the Laws and regulations of Republic of Serbia, and RPF adopted for this program by Government of Republic of Serbian June 2009, which is consistent with operational policy provisions for involuntary resettlement imposed by International Financial Institutions. Land acquisition and resettlement widely involve many aspects and the RAP addresses the direct economic and social impacts of the expropriation of land or the restriction of access to natural resources. However, during the implementation, PAP complaints on the resettlement and compensation are likely to occur. In order to resolve successfully the complaint, PERS has established an independent body, according to the RPF, to process he grievances fairly and effectively, to ensure the smooth implementation of resettlement and land acquisition. The Beneficiary of Expropriation PERS, on behalf of the implementation entity KSDOO will monitor the implementation of the resettlement processes, both through internal, official institutional arrangements, as well as by independent, external consultant to be appointed by implementing entity. The external monitoring and evaluation consultant will be appointed prior to construction starting on this section. At every phase, PAP has the possibility to protect his/her given rights by involvement in every step, being taken either by the Beneficiary of Expropriation or by the institutions who have the authority to lead the expropriation process. PAPs also have the legal right to challenge any 4 RAP for E 75 Section Grdelica –Caricina Dolina KS doo decision either through appeal according to the Serbian Law of expropriation or through grievance redress mechanism with lines of the RPF and this RAP. Finally, PAPs have the right to enter into judicial process to exercise their rights in front of the Supreme Court of Serbia. Total length of Section Grdelica - Caricina Dolina covered by this RAP is12 km, and it acquires a total amount of land of 100,4 ha at the Cadastral Municipality of Oraovica, Bojisna, Graovo, Palojce, LicinDol, Koracevac, PredejaneVaros, Bricevlje, Susevlje. The Social Impact Assessment (SIA) analysis for the Section Grdelica – Caricina Dolina has been undertaken during the period of September – November 2011followingthe drafting of the project documentation for construction of the route on this Corridor. The survey was completed in November 2011. The approach whilst developing this RAP and conducting the process of land acquisition relies strongly on the EIB Statement of Environmental and Social Principles and Standards (2009). A human rights based approach has guided the process. Especially given the fact that the entire Corridor X project is recognized to be of public interest, the Government itself insisted on specific focus to human rights during involuntary resettlement. Thus resulting in the basic principle that no individual will be worse off than prior to expropriation should be replaced with the intention to improve the living standards, conditions and livelihood of PAPs as much as possible. Within the legislation of the Republic of Serbia, the issue of the local population is defined in the Law on planning and construction and the Law on expropriation, and those two laws are the framework for carrying out preparations for cooperation with citizens, defining the rights of citizens and the owners of the real estate in the zone of the route, as well as defining the obligations of the Beneficiary of Expropriation. Legal regulations in Serbia do not envisage an obligation for the contractor to carry out an evaluation of impacts of the planned activities on the social development of the community, especially on the population and households, which are directly or indirectly affected by these activities. However, based on the agreed RPF for this project, the Beneficiary of Expropriation is required to conduct survey and prepare RAP. The data collected in the survey support the statistical data on the volume and depth of poverty which have been indicated within the municipalities on the Corridor X Motorway as well as in the whole East and South-East Serbia. The population in these regions is faced with high level of unemployment; households‟ income is below the average in the Republic and with intensive emigration. Poverty is widespread and profound particularly in rural areas of these municipalities. Favorable compensation rate for expropriated land and building structures, which is higher than the market price of land and structures in the area, is a main argument that the money acquired from expropriation of real estate would improve the economic situation of the household and could potentially contribute to advancing the socio-economic status of households. Expropriated land represents small portion of total households‟ properties, therefore expropriation process will not significantly decrease households‟ agricultural activities in the households that deal with agriculture. On the other hand, expropriated price for agricultural land is much higher than the market value that de facto does not exist. (See Comparative review of compensation rates and market prices of land in ANNEX VII). Simply, in the last few decades no one was interested in buying agricultural land and generally for engaging in agriculture that would be the household main source of income. In other words, turnover from agricultural activities or marketplace from agricultural contract activities does not exist. It can be argued that besides

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