GEORGIA ELECTRICITY TRANSMISSION NETWORK DEVELOPMENT PROJECTS

Environmental and Social Impact Assessment Volume 7 - Land Acquisition, Resettlement & Compensation Framework

Prepared for: GSE and EBRD

SLR Ref:901.12.1 Version No: F June 2020

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

ISSUE AND REVISION RECORD

Revision Date Prepared by: Checked by: Description:

A 11 September 2018 M. Chelidze, L. Gay, M. Brown First Draft for GSE review C. Repussard B 12 October 2018 L. Gay, C. Repussard M. Brown Draft for Lenders review

C 31 January 2019 C. Repussard M. Brown Draft addressing Lenders and GSE comments D 07 March 2019 L. Gay, C. Repussard M. Brown Draft addressing Lenders comments on revision C E 01 July 2019 C. Repussard M. Brown Final version for public disclosure F 21 April 2020 L. Gay, C. Repussard M. Brown New revision addressing EBRD comments on revision E G 02 June 2020 L. Gay C. Repussard New revision addressing GSE comments on revision F

BASIS OF REPORT

This document has been prepared by SLR Consulting Limited with reasonable skill, care and diligence, and taking account of the manpower, timescales and resources devoted to it by agreement with the EBRD (the Client) as part or all the services it has been appointed by the Client to carry out. It is subject to the terms and conditions of that appointment.

SLR shall not be liable for the use of or reliance on any information, advice, recommendations and opinions in this document for any purpose by any person other than the Client. Reliance may be granted to a third party only in the event that SLR and the third party have executed a reliance agreement or collateral warranty.

Information reported herein may be based on the interpretation of public domain data collected by SLR, and/or information supplied by the Client and/or its other advisors and associates. These data have been accepted in good faith as being accurate and valid.

The copyright and intellectual property in all drawings, reports, specifications, bills of quantities, calculations and other information set out in this report remain vested in SLR unless the terms of appointment state otherwise.

This document may contain information of a specialised and/or highly technical nature and the Client is advised to seek clarification on any elements which may be unclear to it.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Information, advice, recommendations and opinions in this document should only be relied upon in the context of the whole document and any documents referenced explicitly herein and should then only be used within the context of the appointment.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

CONTENTS

INTRODUCTION ...... 1 1.1 Purpose and scope of the Land Acquisition, Resettlement and Compensation Framework ...... 1 1.2 Objectives of the LARCF ...... 2 1.3 Structure of the report ...... 3

PROJECT DESCRIPTION ...... 4 2.1 Project components ...... 4 2.2 Associated facilities ...... 6

OVERVIEW OF PROJECT LAND NEEDS ...... 14 3.1 Project land requirements ...... 14 3.2 Alternatives considered to minimise impacts ...... 16 3.3 Estimated Project land needs ...... 16

LEGAL FRAMEWORK ...... 23 4.1 Georgian Laws and Regulations ...... 23 4.2 Lenders policies ...... 24 4.3 Gap analysis between national legislation and international policy ...... 26

OVERVIEW OF ESTIMATED POTENTIAL IMPACTS ...... 32 5.1 Overview of land tenure and land use in the Project-affected areas ...... 32 5.2 Overview of potential impacts ...... 61

ELIGIBILITY AND ENTITLEMENTS ...... 64 6.1 Eligibility ...... 64 6.2 Entitlements ...... 65

VALUATION ...... 77 7.1 Valuation process ...... 77 7.2 Valuation methodology ...... 78

INSTITUTIONAL ARRANGEMENTS ...... 81 8.1 Overview ...... 81 8.2 Institutions and organisations ...... 83

RAP IMPLEMENTATION SCHEDULE ...... 87 9.1 Preparation and Implementation of the Resettlement Action Plans ...... 87

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

9.2 Integration of livelihood restoration measures ...... 95

DISCLOSURE OF INFORMATION AND CONSULTATION ...... 98 10.1 Consultations conducted during the LARCF preparation ...... 98 10.2 Information disclosure ...... 99 10.3 Stakeholder Engagement process for the RAPs ...... 99

GRIEVANCE MECHANISM ...... 101 11.1 Overview ...... 101 11.2 Grievance Resolution Mechanism process ...... 101 11.3 Grievances records and documentation ...... 103 11.4 Closure of grievances ...... 104

MONITORING AND REPORTING ...... 106 12.1 Monitoring ...... 106 12.2 Evaluation ...... 107 12.3 Schedule of monitoring and evaluation ...... 108 12.4 Monitoring and evaluation indicators ...... 109

IMPLEMENTATION COSTS ...... 111 13.1 Funding ...... 111 13.2 Budget ...... 111

DOCUMENT REFERENCES

TABLES Table 2.1 - Summary of Project Components ...... 4 Table 2.2 – Municipalities and Communities crossed by the Project Components ...... 5 Table 2.3 – Associated facilities ...... 7 Table 3.1 – Rights of Way for the Project’s lines ...... 16 Table 3.2 – Summary of estimated land requirements for component A ...... 18 Table 3.3 – Summary of estimated land requirements for component B ...... 18 Table 3.4 – Summary of estimated land requirements for component C1 ...... 19 Table 3.5 – Summary of estimated land requirements for component C2 ...... 19 Table 3.6 – Summary of estimated land requirements for component D ...... 20 Table 3.7 – Summary of estimated land requirements for the Project ...... 22 Table 4.1 – Gap analysis between Georgian Laws and Lenders’ requirements ...... 27

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Table 5.1 – Estimated land use categories areas in the Rights of Way ...... 38 Table 5.2 – Overview of potential physical displacement by Project Components ...... 62 Table 5.3 – Overview of potential impacts by Project Components ...... 63 Table 6.1 – Categories of people losing land and legal land status in Georgia ...... 64 Table 6.2 – Entitlement matrix ...... 66 Table 7.1 – Unit rates for compensation of annual crops ...... 79 Table 9.1 – RAP Preparation and Implementation Process ...... 94 Table 9.2 – Steps to prepare livelihood restoration measures ...... 97 Table 10.1 - Scoping meetings ...... 98 Table 10.2 – Stakeholder Engagement process for the RAPs ...... 100 Table 12.1 - Schedule of monitoring and reporting activities...... 108 Table 12.2 – Monitoring & evaluation indicators ...... 109

FIGURES Figure 5.1 - A summer settlement in Adigeni community (30/06/2018) ...... 41 Figure 5.2 - Kutaisi Homeless animal shelter in Kutaisi city (08/05/2018) ...... 42 Figure 5.3 – Akhaltsikhe substation and its surroundings (12/05/2018) ...... 43 Figure 5.4 – One inhabited house in Persa community (12/05/2018) ...... 43 Figure 5.5 - Wild meadows mixed with agricultural land in Klde community (12/05/2018) ...... 44 Figure 5.6 – A summer cabin and its garden in the highlands of Chokhatauri Municipality ...... 46 Figure 5.7 – Grazing land in Chokhatauri Municipality highlands (28/06/2018) ...... 47 Figure 5.8 – Forest area considered as part of family land in Chubei community (23/06/2018) ...... 49 Figure 5.9 – Residential area in Chuberi community (24/06/2018) ...... 50 Figure 5.10 – Agricultural fields in Latali community (25/06/2018) ...... 51 Figure 5.11 – Residential area in Rtskhmeluri community (20/06/2018) ...... 53 Figure 5.12 – Ritseula River in Sadmeli community within the Khvanchkara micro-zone ...... 54 Figure 5.13 – Grazing land in Dghnorisa community (17/06/2018) ...... 55 Figure 5.14 – Grazing land in Gumbra community (16/06/2018) ...... 56 Figure 5.15 – Grape plantation on private land in Kistauri community, Akhmeta Municipality ...... 58 Figure 5.16 – Crop farming in Mukhuzani community (11/09/2018) ...... 59 Figure 5.17 – Grazing land in Shalauri community (13/06/2018) ...... 60 Figure 8.1 – Institutional arrangements for RAPs implementation ...... 82 Figure 11.1 – Grievance Resolution Mechanism ...... 105

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

MAPS Map 2.1 – Regions and Municipalities crossed – Project wide ...... 8 Map 2.2 – Municipalities and communities crossed – Component A ...... 9 Map 2.3 – Municipalities and communities crossed – Component B ...... 10 Map 2.4 – Municipalities and communities crossed – Component C1 ...... 11 Map 2.5 – Municipalities and communities crossed – Component C2 ...... 12 Map 2.6 – Municipalities and communities crossed – Component D...... 13

APPENDICES Appendix A: Description of Georgian expropriation procedure Appendix B: Sample Grievance registration form Appendix C: Sample Grievance Database Appendix D: Template of Compensation Agreement

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Acronyms Acronym Description

CSR Corporate Social Responsibility DMS Detailed Measurement Survey EBRD European Bank for Reconstruction and Development EIA Environmental Impact Assessment EPC Engineering-Procurement-Construction E&S Environmental & Social ESAP Environmental & Social Action Plan ESIA Environmental & Social Impact Assessment EU European Union FAO Food and Agriculture Organisation of the United Nations FS Feasibility Study GEL Georgian Lari GIP Good Industry Practices GRC Grievance Resolution Committee GRM Grievance Resolution Mechanism GSE Georgian State Electrosystem HPP Hydropower Project IFC International Finance Cooperation LARCF Land Acquisition and Resettlement Compensation Framework MLARO Municipal LAR Office MoF Ministry of Finance NAPR National Agency of Public Survey NGO Non-Governmental Organization NTS Non-Technical Summary PAP Project Affected Person PRs EBRD Performance Requirements PRRC Property Rights recognition Commission PS IFC Performance Standards

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Acronym Description

RAP Resettlement Action Plan RMT Resettlement Management Team ROW Right of Way SEP Stakeholder Engagement Plan SoW Scope of Work TL Transmission Line

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Glossary This Land Acquisition, Resettlement and Compensation Framework (LARCF) uses a number of technical terms that may be used differently to their use in everyday language. Key terms are defined below.

Term Definition Compensation Payment in cash or in kind of the replacement cost of the acquired assets. Cut-off date In this case, the cut-off date is set as the date of the census and assets inventory of PAP. Persons occupying the Project area after the cut-off date are not eligible for compensation and/or resettlement assistance. Similarly, fixed assets (such as built structures, crops, fruit trees, and woodlots) established after the cut-off date will not be compensated. Economic Economic displacement is the loss of land, assets, access to assets, income sources, displacement or means of livelihoods as a result of: (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Entitlement Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to Project Affected People, depending on the nature of their losses, to restore their economic and social base. Improvements Structures constructed (dwelling unit, fence, waiting sheds, animal pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization. Land Acquisition Land acquisition refers to all methods of obtaining land for Project purposes, which may include outright purchase, expropriation of property and acquisition of access rights, such as easements or rights of way. Land acquisition may also include: (a) acquisition of unoccupied or unutilised land whether or not the landholder relies upon such land for income or livelihood purposes; (b) repossession of public land that is used or occupied by individuals or households; and (c) project impacts that result in land being rendered unusable or inaccessible. ‘Land’ includes anything growing on or permanently affixed to land, such as crops, buildings and other improvements. Lenders A group of international financial institutions financing the Project, in this case the European Bank of Reconstruction and Development (EBRD) and the KfW Development Bank (KfW).. The Lenders’ involvement has implications in terms of a number of environmental and social performance requirements that must be complied with by the Project activities. The Project has not only to comply with the Georgian regulations but also with the social and environmental policies of the Lenders.

Livelihood restoration Livelihood restoration comprises a set of measures which will be implemented to address economic displacement in order to improve or, at a minimum, restore livelihoods and standards of living of PAP to pre-displacement levels.

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Term Definition Negotiated Legal arrangement, initiated and completed outside of the formal judicial process; settlement without the involvement of courts and judges, between a buyer (GSE) and a seller (land and property owners) to undertake the land acquisition transactions necessary for the Project. However, in the context of the Project, the buyer can resort to expropriation or impose legal restrictions on land use if negotiations with the seller fail. Orphan land Unacquired parts of a land parcel which are left unusable or undevelopable (either temporarily or permanently) as a result of the project or expropriation. Project-Affected All members of a household residing under one roof and operating as a single Household (PAH) economic unit, who are adversely affected by the Project. It may consist of a single nuclear family or an extended family group.

Project-Affected Project Affected People (PAP), in the context of involuntary resettlement, are any People (PAP) person/people, households, firms, or private institutions who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of: (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Rehabilitation Allowances paid and compensatory measures provided under the LARCF on involuntary resettlement other than payment of the replacement cost of acquired assets. Relocation/ Physical The physical relocation of a PAP/PAH from his/her pre-project place of residence. displacement Replacement Cost Replacement cost is defined as the market value of the assets plus the transaction costs related to restoring such assets. Depreciation of structures and assets is not taken into account. For land, replacement cost is based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued; (iv) transitional and restoration costs; and (v) other applicable payments, if any. Compensation at full replacement value is sufficient for the affected person to replace project affected land, structures and other assets to the same or better standard in another location. Resettlement Action The document in which the Project specifies the procedures it will follow and the Plan actions it will take to mitigate adverse effects, compensate losses and provide development benefits to persons and communities affected by the Project. Resettlement process All measures taken to mitigate any and all adverse impacts of the Project on PAP’s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation of the damaged/removed infrastructure and installations. Right of Way The protection zone around an overhead transmission line as defined by Decree 366 (Government of Georgia, 2014) where buildings and trees are prohibited as described in section 3.3.1, Volume 2.

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Term Definition Sakrebulo This is the representative body of local self-government. The middle level of local government in Georgia consists of 67 Rayons (Municipalities) and six cities: Tbilisi, Kutaisi, Rustavi, Poti, Batumi and Sukhumi. The representative branch of Rayon level is the Rayon- level Local Councils (Rayon Sakrebulo) and the executive branch is represented by Rayon Gamgeoba (Gamgebeli). The self-government level consists of settlements (self-governed cities) or groups of settlements (Municipalities). Settlements could be villages, small towns (minimum 3,000 inhabitants) or cities (minimum 5,000 inhabitants). The representative and executive branches of self- government are represented accordingly by Local Council (Sakrebulo) and the Gamgebeli from the municipal level. The exclusive responsibilities of self- government include land-use and territorial planning, zoning, construction permits and supervision, housing, and communal infrastructure development. Servitude A servitude is the right held by GSE and granted by land owners to access and use occasionally, at one time, and indefinitely the future, the strips of land necessary to install, operate, maintain and repair overhead and underground transmission lines. This right implies that GSE can access this land occasionally, and therefore may have implication on the use of land by the land owners. For example, it will not be possible to build a structure on a piece of land included in a servitude above an underground cable, because, it may be necessary to access this underground cable for maintenance purposes. Vulnerable household A vulnerable household is any that might suffer disproportionately or face the risk of being marginalised by the effects of resettlement. Examples of vulnerable households are those comprising: (i) female-headed households with dependents; (ii) disabled household heads without labour or means of support; (iii) poor households as defined by the official poverty line; (iv) elderly households with no labour or means of support; (v) cultural or ethnic minorities.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Preamble This document is the Land Acquisition, Compensation and Resettlement Framework (LACRF) of the Georgian Electricity Transmission Network Development projects (Project). It forms Volume 7 of the Environmental and Social Impact Assessment (ESIA) Report. The Project being developed by the Georgian State Electrosystem (GSE) comprises the construction of new and in some cases rehabilitation of existing transmission lines and substations. GSE commits to implement the measures and provisions defined in this LARCF. Full details of the Project are outlined in Volume 2 Project Definition. In summary, the Project is formed into 5 geographical component areas (Project Components), Components A, B, C1, C2 and D. Each new or rehabilitated line and substation is given a Project name which is used throughout the documents. The following table provides an overview of the Project Components and the Project names.

Component & Project Component description Project names region

A - Tskaltubo to Akhaltsikhe and on to Turkey border at Vale: Samtskhe- - 500kV Tskaltubo to Akhaltsikhe substation Sairme line Javakheti & - 400kV Akhaltsikhe to Turkey border (and on to Tortum in Turkey) Tao line Imereti - Extension to the existing Akhaltsikhe Substation Akhaltsikhe extension B – Guria Ozugeti to Zoti HPP and connection from Ozurgeti to the Paliastomi line: - 110kV Ozurgeti to Zoti HPP powerhouse Guria line - 220kV Ozurgeti to Paliastomi loop in connection Paliastomi loop - 110/220kV Ozurgeti Substation Ozurgeti Substation C1 - Svaneti Nenskra to Mestia: - 110/220/500kV Nenskra Substation Nenskra Substation - 220kV Nenskra substation to Mestia HPPs Mestia line - 500kV Kavkasioni loop in loop out to Nenskra Substation Kavkasioni loop - 220kV Nenskra substation to Nenskra HPP line1 Nenskra HPP line C2 – Racha Lajanuri connections to Kheledula HPP, Oni HPP and Tskaltubo: Lechkhumi - 110/500kV Lajanuri Substation Lajanuri Substation & Imereti - 110kV Lajanuri to Oni HPP Oni HPP line - 110kV Lajanuri to Kheledula HPP Kheledula HPP line - 500kV Lajanuri to Tskaltubo Lechkhumi line - 220kV Lajanuri HPP to Lajanuri Substation Lajanuri HPP line - 220kV Rehabilitation of the existing 220kV Derchi line from Lajanuri New Derchi line to Tskaltubo, with new connections into Namakhvani HPP - 220kV Lajanuri Substation to Lajanuri HPP Lajanuri HPP line

______1 The routing of the 220 kV Nenskra HPP line and its associated land needs were yet to be defined at the time of writing.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Component & Project Component description Project names region

D - Kakheti2 Reinforcement of the transmission infrastructure in Kakheti: - 110/220kV line from Gurjaani to Telavi Gurjaani line - 110kV line from Telavi to Akhmeta, constructed on 220kV towers Akhmeta line - 110kV loop to Tsinandali Tsinandali line - 110kV loop to Mukuzani Mukuzani line - Rehabilitation and extension of 110kV Akhmeta Substation Akhmeta Substation - Rehabilitation and extension of 110/220kV Telavi Substation Telavi Substation - Rehabilitation of 110kV Tsinandali Substation Tsinandali Substation - Rehabilitation and extension of 110kV Mukuzani Substation Mukuzani Substation - Rehabilitation and upgrade of 110/220kV Gurjaani substation Gurjaani Substation

The ESIA Report is formed of a number of volumes and documents, as follows: • Volume 1 – Non Technical Summary; • Volume 2 –Project Definition – including Project introduction, need and alternatives and project description; • Volume 3 – Biodiversity: o Document 3.1 Biodiversity Project-wide assessment o Document 3.2 Biodiversity Project Component Specific assessment • Volume 4 – Social – including assessments on people, communities, the economy, cultural heritage and EMF: o Document 4.1 Social Project-wide assessment o Document 4.2 Social Project Component Specific assessment • Volume 5 – Physical Environment– including assessments on landscape and visual, noise, air quality: o Document 5.1 Physical Environment Project-wide assessment; o Document 5.2 Physical Environment Project Component Specific assessment; • Volume 6 – Stakeholder Engagement Plan (SEP); • Volume 7 – Land Acquisition, Resettlement and Compensation Framework (LARCF – this document); • Volume 8 – Environmental and Social Management Plan (ESMP): o Document 8.1 Project-wide ESMP; o Document 8.2a Transmission lines ESMP; o Document 8.2b Substations ESMP.

______2 Following the public disclosure, the route of Component D lines was being changed at the time of writing.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Introduction

1.1 Purpose and scope of the Land Acquisition, Resettlement and Compensation Framework

This report presents the Land Acquisition, Resettlement and Compensation Framework (LARCF) for the Georgia Electricity Transmission Network Development Project (Project) being implemented by the Georgian State Electrosystem JSC (GSE, the Project Company), which is to be funded by the European Bank for Redevelopment and Development (EBRD) and the KfW Development Bank (KfW).

A draft version of this LARCF has been publicly disclosed in the second half of 2019. This LARCF is the final version, integrating the comments received during this public disclosure period.

The Project is part of a wider programme being implemented under a 10-year period by GSE to strengthen the power transmission grid in Georgia to improve cross border trade opportunities, to meet increased power demands and to connect existing and planned power projects, principally the growth of hydropower projects (HPP) as set out in Chapter 2 Project Need and Alternatives (Volume 2). The Project comprises the development and replacement of transmission lines, construction, extension and rehabilitation of substations and development of associated infrastructure (e.g. access roads, construction compounds) and includes five main components:

• Component A - Tskaltubo to Akhaltsikhe and on to Turkey border at Vale; • Component B - Ozurgeti to Zoti HPP and connection from Ozurgeti to the Paliastomi line; • Component C1 –Nenskra to Mestia; • Component C2 - Lajanuri connections to Kheledula HPP, Oni HPP and Tskaltubo; and • Component D - Reinforcement of the transmission infrastructure in Kakheti. All Project Components are planned to be commissioned during the course of 2021.

The Project has been developed to a feasibility level, i.e. to a detail considered sufficient to establish that the proposed alignments and substations are technically feasible and to allow environmental effects to be assessed. Final design, including precise location of towers, substations and access tracks would be undertaken once the main technical design is developed and prior to construction commencing. Document 2.4 of Volume 2 provides a description of the Project Components and their construction and operation.

This Project is being assessed against the requirements of the EBRD Environmental and Social Policy3. This policy sets out a series of Performance Requirements which provide clear guidance on the expectations of the EBRD in terms of a project’s environmental and social performance. Performance Requirement 5 (PR5) relates to Land Acquisition, Involuntary Resettlement and Economic Displacement and states that “a Resettlement and/or Livelihood Restoration Framework will be developed where the exact nature or magnitude of the land acquisition or restrictions on land use related to a project with potential to cause physical and/or economic displacement is unknown due to the project development stage.” (EBRD PR5 §22). At the time of writing, the final design and the definitive land needs for the Project Components are not yet available. It is clear, however, that the Project will need to acquire land permanently or temporarily and will result in restriction of access and/or use in the Rights of Way (see section 3.3.1, Volume 2) of the transmission

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3 EBRD (May 2014) Environmental and Social Policy

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 lines. This will potentially entail acquisition of private land plots, structures and assets, physical relocation of affected households, and may result in livelihood losses. In this context of involuntary resettlement, Project Affected People (PAP) is any person/people, household, firm, or private institution who is physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of: (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. However, as the final design and the definitive land needs for the Project Components are not yet available, the exact number of PAP is unknown and only an estimated number has been provided. The exact numbers of PAP will be determined through a census and a detailed socio-economic survey to be conducted as part of the Resettlement Action Plans (RAPs) which are yet to be prepared for each component. Therefore, this Land Acquisition, Resettlement and Compensation Framework (LARCF) sets out the general principles, procedures and compensation framework that will be employed by the Project, consistent with EBRD PR5. Once the individual Project Components are defined and the required information becomes available, the LARCF will serve as a basis for the development of detailed Resettlement Action Plans (RAPs). The RAPs will document the process followed to minimize, compensate and mitigate impacts related to the Project land acquisition process. The RAPs are processes and actions to be implemented and monitored, rather than documents. One RAP will be prepared for each Component, or for each section of a Component. The steps of a RAP preparation and implementation are given in Section 9.0. This LARCF addresses land-based impacts (physical and economic displacement). All other socioeconomic impacts are assessed in the Volume 3 Social and will be mitigated through the implementation of the social action plans set out in the Environmental and Social Management Plan (Volume 8).

1.2 Objectives of the LARCF This LARCF defines the principles and procedures that will be followed to minimise and mitigate impacts associated with the Project’s land acquisition in accordance with international standards. The LARCF establishes a standard approach for the treatment of compensation with respect to land acquisition and easements, as well as livelihood restoration in all Project activities in line with Georgian regulations and the EBRD’s PR5. It also provides the steps and methodologies that will be followed to prepare future detailed RAPs for the Project Components when the necessary information is available. The fundamental objectives of the EBRD’s PR5 include the following principles: • Avoid, and when it is not possible to avoid, minimize and mitigate impacts of involuntary resettlement on affected persons resulting from the implementation of the project; • Provide full and accurate information about the project, and afford PAPs meaningful opportunities for participation in design, implementation and monitoring, with particular attention paid to the requirements of vulnerable households and women; • Ensure that people who are adversely affected are fully compensated and successfully resettled; the livelihoods of economically displaced people are re-established, and that their standard of living is, wherever possible, improved; • Prevent the impoverishment of affected persons as a consequence of compulsory land acquisition or loss of livelihood due to project activities; • Make certain that all affected persons are informed of the resettlement process and are aware of the grievance resolution system available through the project, and • Provide, when needed, additional assistance for vulnerable groups, such as women-headed households The objective of EBRD PR5 will be achieved by implementing the following principles defined in this LARCF:

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• Minimise or avoid land acquisition and physical and economic displacement wherever possible. Where resettlement is unavoidable, the procedures and requirements outlined in this LARCF will be followed. RAPs will be designed to minimise adverse impacts. • Compensate all Project Affected People (PAPs) at full replacement cost. • Implement an inclusive approach to entitlements that includes compensation and other assistance for those with no legal right of and occupancy as well as those with legal or recognized customary title to their land and those with land use rights. • Provide transportation and disturbance allowance to mitigate the impact on the livelihoods of affected persons having to relocate their residence and/or business. • Assist all PAPs in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to levels prevailing prior to the beginning of project implementation. • Prevent the impoverishment of affected persons as a consequence of compulsory land acquisition or loss of livelihood due to project activities. • Implement any additional measures to address the relocation needs of vulnerable groups. • Consult and inform all PAPs to ensure they are active participants in the negotiated settlements and have access to an adequate and accessible grievance resolution mechanism. Consultations will consider gender issues and consider the needs of stakeholders who may be considered vulnerable.

1.3 Structure of the report This Volume 7 is structured into 13 main sections: • section 1.0 is the present introduction, and presents the LARCF scope and objectives; • section 2.0 describes the Project; • section 3.0 provides an estimate of the anticipated Project land requirements and associated impacts; • section 4.0 details the national legal framework on land acquisition and the gap analysis with the Lenders’ policies on involuntary resettlement; • section 5.0 gives an overview of the order of magnitude of people and assets affected; • section 6.0 defines the categories of affected people eligible to the LARCF measures and their entitlements; • section 7.0 describes the principles which will be followed to evaluate the full replacement cost for the compensation of affected immovable assets; • section 8.0 presents the distribution of responsibilities between the organisations involved in the LARCF and the subsequent implementation of the RAPs; • section 9.0 provides the implementation schedule for the land acquisition process and the future RAPs; • section 10.0 explains the information which will be disclosed on the land acquisition and resettlement process; and the consultation with the affected people and communities; • section 11.0 sets out the proposed grievance management mechanism; • section 12.0 defines the monitoring and reporting arrangements for the proposed RAPs; and • section 13.0 presents an estimate of the anticipated implementation costs.

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Project description

2.1 Project components The Project is part of a wider programme being implemented under a 10-year period by GSE to strengthen the power transmission grid in Georgia to improve cross border trade opportunities, to meet increased power demands and to connect existing and planned power projects, principally the growth of hydropower projects (HPP). Further information on the need for the Project is set out in Volume2. The Project comprises five components divided in several sub-components: Full details of the Project are outlined in Chapter 2.3 -Project Description in Volume 2. A summary of the Project is given in Table 2.1 below.

Table 2.1 - Summary of Project Components Component Line description Project name

A - Tskaltubo to Akhaltsikhe and on to Turkey border at Vale: Samtskhe- - 500kV Tskaltubo to Akhaltsikhe substation Sairme line Javakheti & - 400kV Akhaltsikhe to Turkey border (and on to Tortum in Turkey) Tao line Imereti - Extension to the existing Akhaltsikhe Substation Akhaltsikhe extension B - Guria Ozugeti to Zoti HPP and connection from Ozurgeti to the Paliastomi line: - 110kV Ozurgeti to Zoti HPP powerhouse Guria line - 220kV Ozurgeti to Paliastomi loop in connection Paliastomi loop - 110/220kV Ozurgeti Substation Ozurgeti Substation C1 - Svaneti Nenskra to Mestia: - 110/220/500kV Nenskra Substation Nenskra Substation - 220kV Nenskra substation to Mestia HPPs Mestia line - 500kV Kavkasioni loop in loop out to Nenskra Substation Kavkasioni loop - 220kV Nenskra substation to Nenskra HPP line Nenskra HPP line C2 – Racha Lajanuri connections to Kheledula HPP, Oni HPP and Tskaltubo: Lechkhumi - 110/500kV Lajanuri Substation Lajanuri Substation & Imereti - 110kV Lajanuri to Oni HPP Oni HPP line - 110kV Lajanuri to Kheledula HPP Kheledula HPP line - 500kV Lajanuri to Tskaltubo Lechkhumi line - 220kV Lajanuri HPP to Lajanuri Substation Lajanuri HPP line - 220kV Rehabilitation of the existing 220kV Derchi line from Lajanuri New Derchi line to Tskaltubo, with new connections into Namakhvani HPP - 220kV Lajanuri Substation to Lajanuri HPP Lajanuri HPP line D - Kakheti Reinforcement of the transmission infrastructure in Kakheti: - 110/220kV line from Gurjaani to Telavi Gurjaani line - 110kV line from Telavi to Akhmeta, constructed on 220kV towers Akhmeta line - 110kV loop to Tsinandali Tsinandali line

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Component Line description Project name

- 110kV loop to Mukuzani Mukuzani line - Rehabilitation and extension of 110kV Akhmeta Substation Akhmeta Substation - Rehabilitation and extension of 110/220kV Telavi Substation Telavi Substation - Rehabilitation of 110kV Tsinandali Substation Tsinandali Substation - Rehabilitation and extension of 110kV Mukuzani Substation Mukuzani Substation - Rehabilitation and upgrade of 110/220kV Gurjaani substation Gurjaani Substation

Georgia is divided into 9 regions (მხარე) and 1 city (the capital Tbilisi). The regions are in turn subdivided into Municipalities (მუნიციპალიტეტი). There are two types of Municipalities: 12 self-governing cities (ქალაქი) and 67 self-governing districts (თემი). Both type of Municipalities have boundaries, one administrative centre, as well as representative and executive bodies of government. They also possess their own assets, budget and income. The bodies of self-government at the level of Municipalities are a representative council, sakrebulo, directly elected for a four-year term, and an executive branch, gamgeoba, in a self-governing community and meria, in a self-governing city, chaired, respectively, by gamgebeli and meri (mayor), directly elected for a four- year term. The 67 Municipalities which are self-governing districts are then further divided into Communities, which are groups of villages or settlements. These Communities or groups of villages or settlements are the lowest administrative division. Each of these Community elect one representative at the representative council, (Sakrebulo) at the Municipal level. This LARCF will use the term “Municipalities” to refer at the self-governing districts or cities and “Communities” to refer at the lower-level villages or groups of settlements. The Project Components are located in 19 Municipalities and will cross 86 Communities. The Municipalities and Communities crossed are listed in Table 2.2, and illustrated in Map 2.1.

Table 2.2 – Municipalities and Communities crossed by the Project Components Component Region Municipality or Self- Communities Governing Cities A Imereti Tskaltubo Gumbra; Maghlaki; Kvitiri; Mukhiani; Opshkviti; Patriketi Kutaisi Self-governing City (Banoja area in Kutaisi outskirts) Vani Zeindari; Amaghleba; Saprasia; Dzulukhi; Zeda vani; Gora Samtskhe- Adigeni Pkhero; Benara; Varkhani; Arali Javakheti Akhaltsikhe Agara ; Persa; Sviri; Klde; Eliatsminda; Vale; Skhvilisi; Tsqruti Guria Chokkatauri (no Community, only Chokatauri Municipality highlands) B Guria Ozurgeti Naruja; Likhauri; Makvaneti; Shemokmedi Chokhatauri Nabeghlavi Kobuleti Leghva; Kakuti C1 Samegrelo - Mestia Chuberi; Nakra; Pari; Lakhamula ; Esteri; Becho; Latali; Zemo Lenjeri; Mestia Svaneti

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Component Region Municipality or Self- Communities Governing Cities C2 Racha- Lentekhi Lentekhi; Khopuri; Rtskmeluri Lechkhumi Tsageri Kveda Tsageri; Orbeli; Lailashi; Usakhelo; Ghvirishi ; lower Alapana; Tvishi Svaneti Ambrolauri Tsesi; Khodikari; Sadmeli; Khvanchkara; Chrebalo; Chqvishi Oni Bari; Sori; Parakheti Tskaltubo Rioni; Opurchkheti; Tskaltubo community; Mekvena; Imereti Dghnorisa; Gumbra Tyibuli Jvarisa D Kakheti Gurjaani Gurjaani city; Chumlaqi; Akhasheni; Mukuzani; Vazisubani; Shashiani; Kalauri; Vachnadziani Telavi Self-Governing city Telavi Municipality Akura; Kvemo Khodasheni; Tsinandli; Kisikhevi ; Shalauri; Vardisubani; Ruispiri; Iqalto Akhmeta Zemo Khodasheni; Kistauri; Ozhio; Akhmeta; Zemo Alvani

2.2 Associated facilities The EBRD PR13 Assessment and Management of Environmental and Social Impacts and Issues states that “the environmental and social assessment process will also identify and characterise, to the extent appropriate, potentially significant environmental and social issues associated with activities or facilities which are not part of the project, but which may be directly or indirectly influenced by the project, exist solely because of the project or could present a risk to the project.” (EBRD PR1 §9). The developments considered to comprise associated facilities for the Project are listed in Table 2.3. These associated facilities will entail land acquisition and economic displacement and could potentially also require involuntary resettlement. Any differences in the land acquisition and compensation processes, eligibility principles and entitlements followed by these developments and those set out in this LARCF would have the potential to produce misunderstandings and discontent amongst the PAP and communities, and maybe lead to loss of social licence to operate. As most of these developments are financed by international financing institutions, they will apply international policies on land acquisition and involuntary resettlement, such as EBRD PR5 or similar. Therefore, the eligibility and entitlement should not differ between the Project and these associated facilities. To avoid substantial gaps in entitlements and the valuation of unit rates for cash compensation at full replacement cost, each detailed RAP implemented by the Project will include a review of the compensation rates established for the associated facilities and coordinate with their developers (see section 7.0).

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Table 2.3 – Associated facilities Project component Associated facilities Developer Component A Sairme line New 200/500kV Tskaltubo Substation GSE Tao line Approximately 200km of 400kV double TEAS circuit line from Georgia/Turkey border to Tortum in Turkey Component B Guria line Zoti Hydropower Project Zoti Hydro LLC Ozurgeti 110kV Anaseuli/Kobuleti line loop- GSE Substation in/loop-out 110kV Chakhvi /Batumi 1 line loop- in/loop-out Component C1 Mestia line & Nenskra Hydropower Project and cable JSC Nenskra Hydro Nenskra connection substation Component C2 Kheledula HPP Kheledula Hydropower Project Kheledula Energy LLC line Oni line Oni Hydropower Project JSC Oni Cascade Lechkhumi line Namakhvani Hydropower Project JSC Cascade of Namakhvani HPPs

Component D none ---

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Overview of Project land needs

3.1 Project land requirements The land needs for the Components are typical of transmission lines projects. They will include: • Permanent acquisition of land for sitting of new towers and substations, or for rehabilitation of substations if needed; • Temporary use of land (i) for construction activities and (ii) for some maintenance works during operation; and • Permanent restriction of use in the servitude of the right of way of the Overhead Transmission Lines.

3.1.1 Permanent land acquisition The permanent land used by the Project will consist in the towers and the substations. • The towers’ footprint will depend on the type of tower and can vary from 85m² (110kV towers) to 145m² (500kV towers). • It is envisaged that one section of underground cable (3.3km) will be required on the Gurjaani line. It will consist in two cable trenches and 2 cable sealing end (CSE) platform towers at each end of this section. • Footprint of the three new substations in Ozurgeti, Nenskra and Lajanuri; • Areas needed for the four substation extensions (Akhaltsikhe, Telavi, Akhmeta and Mukuzani);

3.1.2 Temporary use of land Temporary use of land for construction activities Temporary use of land will be required for the following construction activities. • Working areas at various locations (e.g. at tower bases and for transmission line stringing) in order to facilitate the required construction activities. These working areas vary in size appropriate for the requirements of the activity, and as an example would typically be 20m by 20m around 500kV and 400kV tower bases, 15m x 15m round 220kV and 110kV bases. • Access tracks that would be required to provide suitable access to the working areas. Access tracks would be approximately 4.5m wide although these could be wider in places depending upon topography and access requirements; • Temporary construction compounds will be needed at each substation location and at intervals along the transmission lines. These temporary compounds would include site offices, welfare facilities and laydown areas to house construction staff, equipment and materials for the works. The dimensions, shape and layout of compounds would vary depending on the nature of each site location. Typical site compounds would encompass an area of up to 100m by 100m enclosed by suitable, secure fencing, with a gated site entrance with security gate house/cabin; • Temporary helicopter operating bases. In certain locations where the construction of access tracks and use of vehicles is not possible (e.g. at high altitude or on steep slopes), the use of helicopters is being considered in order to transport materials and pre-assembled sections of towers. Temporary helicopter operating bases would be required and would typically encompass an area of approximately two hectares (200m by 100m) enclosed by temporary fencing. It is anticipated that helicopters may be needed to be used for parts of the Sairme line, and the Mestia line. Of the order of 2 temporary helicopter operating bases are anticipated to be required;

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• Areas needed to store any topsoil and subsoil excavated during site preparation alongside the working area; • Some sections of the Rights of Way (see below) along the lines will also be used during construction, to install conductor lines in sections between tension towers using tensioning and pulling machines. The areas used for temporary purposes will be located as much as possible in the lines’ Right of Way to minimise impacts. All areas used for temporary purposes during construction will be restored and reinstated. These areas will be obtained by the Project through voluntary negotiations of lease agreements (e.g., willing lessor-willing- lessee basis) for a maximum period of 2 years. For lands where crops farming are practiced, lease rates to be paid should not be less than compensation at current market rates for the gross value of 4 year’s harvest of crops on the affected lands (equivalent to a maximum of 3 years of construction + one year of post reinstatement recovery). If voluntary negotiations fail, the Project will have the possibility to resort to expropriation or impose legal restrictions on land use. Temporary use of land for maintenance works during operation During operation, the conductors and towers would be subject to annual inspection from the ground or by helicopter. The inspection would confirm when refurbishment is required. During refurbishment, works would take place along the line and in its Right of Way (see below). Light goods vehicles would be used to carry workers in and out of site and Heavy Goods Vehicles (HGVs) would be used to bring new materials and equipment to site and remove old equipment. Some temporary works for maintenance could therefore potentially include scaffolding to protect roads, in a similar manner as for construction depending on the work involved and requirement (e.g. for cranes). The maintenance works will use as much as possible the land available in the Right of Way (see below) to minimise the impacts. Land take during the decommissioning phase would be similar to but on a smaller scale to that described for construction.

3.1.3 Rights of Way Restrictions on land use are mainly due to the easement for the Right of Way (RoW). The servitude in this Right of Way is legally defined and allows power transmission and distribution company to access properties or land directly beneath and to either side of a transmission line. Also called an easement, a Right of Way is periodically used to perform maintenance or repair equipment and must be kept clear of vegetation and buildings. The Right of Way width depends on the voltage of the line and the height of the structures. It includes the area extending for a certain distance from the edge conductors on each side. The width of the transmission line Right of Way depends on technical and environmental standards defined in the Decree 366 (Government of Georgia, 20144) On Regulation for Protection of Linear Structures of Power Networks and Determination of Zones of Protection. The document’s objective is to facilitate the uninterrupted functioning of the power grid, to ensure safe operations, to meet the requirements of the sanitary and safety norms, and to prevent accidents. According to that Decree, the affected lands in the Right of Way remain in possession of the owner, however it is prohibited to plant trees or construct structures and buildings, but other agricultural activities such as crops, fruit trees (up to 4m high) and grazing are allowed.

Within the Right of Way complete clearing of vegetation will be required in the centre strip of 20 m. Outside this strip, but still inside the Right of Way, all vegetation above 3m to 5.8 height depending on the ______

4 Government of Georgia (24 December 2014) Decree #366 On Regulation for Protection of Linear Structures of Power Networks and Determination of Zones of Protection

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 transmission line voltage will be required to be cleared (see specifications for trees and vegetation removal in the Row defined in the Document 8.2 Transmission line ESMP). Removal of vegetation and trees will be the subject of assessment and mitigation measures, which may include the replacement of trees, although trees cannot be planted within the clearance corridor underneath the overhead transmission lines.

The Rights of Way for each transmission line of the Project is shown in Table 3.1, based on the size of the towers and their conductors.

Table 3.1 – Rights of Way for the Project’s lines

Overhead line voltage (kV) Transmission Lines Legal distance required by Legal width for the Right Georgian law from outermost of Way wires

500 Sairme (A), Lechkhumi (C2) 30 m 75m

400 Tao (A) 30 m 80m

200 Kheledula HPP (C2), Oni HPP 25 m 60m (C2), New Derchi (C2), Lajanuri HPP (C2), Paliastomi loop (B), Gurjaani (D), Akhmeta (D)

110 Mestia (C1), Guria (B), Tsinandali 20m 50m loop (D), Mukuzani loop (D)

3.2 Alternatives considered to minimise impacts The Project has considered alternatives in determining the routing of the proposed transmission lines, substation locations and technology types (e.g. tower types or underground cables). The study of alternatives has comprised three stages: strategic alternatives (following ‘Power System Level’ studies); corridor and node alternatives (following ‘Desk Study Level’ studies on technical, environmental and social aspects); and finally route optimisation alternatives (at the ‘ESIA and Technical Studies Level’). The results of the ESIA studies to-date have been fed into the route designs to optimise for technical, environmental and social aspects. Involuntary Resettlement has been avoided wherever possible and minimised as much as practicable. This is documented in Document 2.2 – Project Need and Alternatives (Volume 2). During the detailed design of each component, the transmission lines alignments, the location of the towers and of the temporary working areas and access tracks will be optimised to avoid or minimise as much as practicable economic and physical displacement. These requirements are covered in the Volume 8 - ESMP, under the responsibility of the Transmission Line Contractor during the detailed design phase.

3.3 Estimated Project land needs The estimated Project land needs are presented for each component in Table 3.2 to Table 3.6. Table 3.7 presents the estimated land needs consolidated for the entire Project. These estimates are high-level and aim only at giving an order of magnitude of the Project land needs. They are based on the information available at the time of writing, as indicated in the Project definition detailed in Volume 2. The actual land needs will be optimised during the final design of each component. The detailed alignment of the transmission lines and the siting of the towers and substations will be adjusted to avoid or minimise as much as practicable impacts on private land and assets. The assumptions used to assess the Project land needs are as follows: • Permanent land needs:

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o Towers on newly constructed lines. First, it has been estimated that 3 towers per kilometer will be needed, whatever the voltage of the line. Second, the towers footprint for each line will be considered (total area = estimated number of towers x tower footprint). The footprint of a tower for a 500kv line is 145m², 121m² for a 220kv line and 85m² for a 110kv line. However, the footprint of a tower for a 400kv line is not known. It is estimated that it is the same as for 500kv line. o Towers on existing lines to be rehabilitated: The rehabilitated lines will have all new towers, although some of these may be at existing tower locations. New towers will be needed on some sections of the existing Derchi line, and the existing Gurjaani and the Akmeta lines. It is estimated that 50% of the existing towers of those three lines will be used – no land take will be needed - while it will also require 50% of new towers. For the Derchi line, the two double circuit loop in/loop out lines will however require new towers. o New substations: the footprints of the three new substations to be constructed at Ozurgeti, Nenskra, and Lajanuri, have been calculated as well as the temporary working areas around them. o One section of underground cable (3.3km) on the Gurjaani line: two cable trenches and 2 cable sealing end (CSE) platform towers at each end of this section. Six cables would be required. They would be laid in two trenches with three cables laid in each trench. Typically, an accompanying auxiliary optical wire for system communication would run within a duct in each trench. Each cable trench (for a group of three cables) would be typically 1.5m wide and 1.2m deep. The two cable trenches would be typically separated by a maximum separation of 5m, but this may be increased or decreased depending upon ground conditions. The width needed is estimated to about 10m. o The areas needed for the substation extensions (Akhaltsikhe, Telavi, Akhmeta and Mukuzani) have been considered as well as the temporary working areas around them. • All land required for temporary purposes cannot be estimated at this stage and will be determined at the final design stage. For instance, access tracks would be required to provide suitable access to the working areas, but their number and their length were not defined at the time of the writing. Therefore, the tables below only include an initial estimate. • The Rights of Way for the proposed transmission lines have been estimated based on the widths indicated in Table 3.1 (total area = width of the RoW x line length). Regarding the Akhmeta line, a RoW of 60m has been retained as the transmission line can operate at 220kV.

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Table 3.2 – Summary of estimated land requirements for component A

Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Sairme line Towers Number of towers: 312 Working area for all the 17ha Permanent acquisition of towers bases: 12.5ha land for the construction of 312 towers: 4.5ha Right of Way Restriction of use on 770.6ha None 770.6ha of land Working areas, access -- Construction compound for 4ha tracks, construction the OHL: 2ha compounds. Helicopter operating bases: 2ha Access tracks to be determined Tao line Towers Number of tower: 99 Working area for all the 5.3ha Permanent acquisition of towers bases: 3.9ha land for the construction of 99 towers: 1.4ha Right of Way Restriction of use on None 265.5ha 265.5ha of land Working areas, access -- Construction compound for 1ha tracks, construction the OHL: 1ha compounds. Access tracks to be determined Akhaltsikhe Substation Akhaltsikhe Substation Construction compound for 1.61ha substation Extension: the Substation with fence: 0.6ha 1ha

Total 6.5 ha + Restriction of use 22.4ha 1065ha on 1,042ha

Table 3.3 – Summary of estimated land requirements for component B

Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Guria line Towers Number of towers: 135 Working area for all the 4.1ha Permanent acquisition of towers bases: 3ha land for the construction of 135 towers: 1.1ha Rights of Way Restriction of use on None 227.2ha 227.2ha of land Working areas, access tracks, -- Construction compound for 1ha construction compounds. the OHL: 1ha Access tracks to be determined Paliastomi loop Towers Number of towers: 8 Working area for all the 0.3ha Permanent acquisition of towers bases: 0.2ha land for the construction of 8 towers: 0.1ha Rights of Way Restriction of use on None 15.3ha 15.3ha of land Working areas, access tracks, -- Construction compound for 1ha construction compounds. the OHL: 1ha

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Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Access tracks to be determined Ozurgeti Substation Substation Permanent acquisition of Construction compound for 1.53ha land for Ozurgeti the Substation with fence: Substation: 0.52ha 1.01 Total 1.7ha + Restriction of use 6.2ha 250ha on 242.5ha

Table 3.4 – Summary of estimated land requirements for component C1

Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Mestia line Towers Number of towers: 176 Working area for all the 5.3ha Permanent acquisition of towers bases: 3.9ha land for the construction of 176 towers: 1.4ha Rights of Way Restriction of use on 294.2ha None 294.2ha of land Working areas, access -- Construction compound for 3ha tracks, construction the OHL: 1ha compounds. Helicopter operating bases: 2ha Access tracks to be determined Nenskra HPP line To be defined. The Nenskra HPP line will be included in the RoW of the existing the Mestia line. The details of the land needs are yet to be defined. However, as it will be within the existing RoW of the Mestia line, the land needs are not expected to be significant, they should be limited to the footprint of new pylons, if any new pylons are needed. Kavkasioni loop To be defined. The Kavkasioni loop will connect the new Nenskra Substation to the existing Kavkasioni line, located about 100m from the substation. The details of the land requirements are not known and will be defined during the detailed design. Given the proximity between the substation and the Kavkasioni loop, it is possible that no pylon will be needed. Nenskra substation Substation Permanent acquisition of Construction compound for 5.8ha land for the the Substation with fence: Nenskra Substation: 4.8ha 1.01ha Total 6.2ha + restriction of use on 7.9ha 308ha 294.2ha

Table 3.5 – Summary of estimated land requirements for component C2

Line Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Oni HPP Towers Number of towers: 147 Working area for all the 5ha Permanent acquisition of towers bases: 3.3ha land for the construction of 147 towers: 1.7ha Rights of Way Restriction of use on None 295.4ha 295.4ha of land Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds.

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Line Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Access tracks to be determined Kheledula HPP Towers Number of towers: 99 Working area for all the 3.4ha Permanent acquisition of towers bases: 2.2ha land for the construction of 99 towers: 1.2ha Rights of Way Restriction of use on None 197.5ha 197.5ha of land Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined Lechkhumi Towers Number of towers: 147 Working area for all the 7.9ha Permanent acquisition of towers bases: 5.8ha land for the construction of 147 towers: 2.1ha Rights of Way Restriction of use on None 355.6ha 355.6ha of land Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined New Derchi Towers Number of towers: 95 Working area for all the 5.8ha Permanent acquisition of towers bases: 2.1ha land for the construction of 95 towers: 3.7ha Rights of Way Restriction of use on None 329.6ha 329.6ha of land Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined Lajanuri HPP Towers Number of towers: 11 Working area for all the 0.3ha Permanent acquisition of towers bases: 0.2ha land for the construction of 11 towers: 0.1ha Rights of Way Restriction of use on None 22.9ha 22.9ha of land Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined Lajanuri substation Substation Permanent acquisition of Construction compound 19.01ha land for the Lajanuri for the Substation with Substation: 18ha fence: 1.01ha Total 26.8ha + restriction of use 19.6ha 1247ha on 1,201ha

Table 3.6 – Summary of estimated land requirements for component D

Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Gurjaani line Towers Number of towers: 47 Working area for all the 1.7ha towers bases: 1.2ha

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Permanent acquisition of land for the construction of 47 towers: 0.5ha 3.3km of underground 3.3ha -- 3.3ha cable (south of (3.3km x 10m) Tsinandali) Rights of Way Restriction of use on None 193.5ha 193.5ha of land (including rehabilitation of some sections, where restrictions of use are already applied) Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined Akhmeta line Towers Number of towers: 53 Working area for all the 1.6ha Permanent acquisition of towers bases: 1ha land for the construction of 53 towers: 0.6ha Rights of Way Restriction of use on None 209.4ha 209.4ha of land (including rehabilitation of some sections, where restrictions of use are already applied) Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined Tsinandali loop Towers Number of towers: 5 Working area for all the 0.14ha Permanent acquisition of towers bases: 0.1ha land for the construction of 5 towers: 0.04ha Rights of Way Restriction of use on None 8.4ha 8.4ha of land (including rehabilitation of some sections, where restrictions of use are already applied) Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined Mukuzani loop Towers Number of towers: 8 Working area for all the 0.27ha Permanent acquisition of towers bases: 0.2ha land for the construction of 8 towers: 0.07ha Rights of Way Restriction of use on None 14.1ha 14.1ha of land (including rehabilitation of some sections, where restrictions of use are already applied) Working areas, access -- Construction compound 1ha tracks, construction for the OHL: 1ha compounds. Access tracks to be determined

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Line and substation Type of infrastructure Estimated permanent Estimated Temporary Total (ha) impact (operation) impacts (construction) (hectares (ha)) (ha)

Akhmeta substation Substation Permanent acquisition of Construction compound 2.34ha land for the Akhmeta for the Substation with substation: 1.33 ha fence: 1.01ha

Telavi substation Substation Permanent acquisition of Construction compound 1.8ha land for the Telavi for the Substation with substation: 0.7ha fence: 1.01ha Mukuzani substation Substation Permanent acquisition of Construction compound 1.09ha land for the extension of for the Substation with Mukuzani substation: fence: 1.01ha 0.08ha Tsinandali substation Substation No permanent acquisition 0ha 0ha of land Gurjaani substation Substation No permanent acquisition 0ha 0ha of land Total 6.6ha + restriction of use 9.5ha 442.1ha on 425.5ha

Table 3.7 – Summary of estimated land requirements for the Project

Type of infrastructure Estimated permanent impact Estimated Temporary Impacts Total (operation) (construction)

Towers 18.5ha 39.6ha 58.1ha Substations 26ha 7.07ha 33.01ha Rights of Way 3,199.8ha None 3,199.8ha Working areas, access tracks, -- 19ha + to be determined 19ha construction compounds. Total 44.5ha + restriction of use on 60.9ha 3,195ha

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Legal Framework

The LARCF for the Project is based on national laws and legislation related to land acquisition and resettlement in Georgia. It also complies with EBRD PR5 on Involuntary Resettlement. Whenever there is a difference between local regulations and this PR, whichever is more stringent and/or is more favourable to the PAP prevails.

4.1 Georgian Laws and Regulations The Constitution of Georgia recognises universally acknowledged human rights, including those pertaining to private ownership and its protection. The Constitution creates a foundation for the legislative basis of possession of immovable property and recognises the right of ownership and also permits expropriation for public needs, where necessary, whilst facilitating the payment of relevant compensation. In certain cases of public need, the state may take private lands into state ownership or take actions that otherwise affect private land. The following laws are relevant to the land acquisition, property ownership, expropriation and other issues related to resettlement and compensations on Georgia: • The Constitution of Georgia, August 24, 1995 (Last update 2 April, 2018); • The Civil Code of Georgia, June 26, 1997 (amend. 2000, 2002, 2003, 2004, 2005, 2006, 207, 2008, 2009, 2010, 2011, 2012, 2013, 2014; last update August 7, 2018); • The Law of Georgia on Notary Actions, December 4, 2009 (amend. 2010, 2011,2012, 2013, 2014, 2015); • Law on Public Health 27 June 2007 (amend. 2009, 2010, 2011, 2012, 2013, 2014, 2015; last update March 22, 2017); • The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996 (amend. 1997, 1998, 1999, 2000, 2003, 2004, 2007, 2010, 2012, 2014; last update June 22, 2017); • Law on Compensation of Land Substitute Costs and Damages due to Allocating Agricultural Land for Non- Agricultural Purposes 1997 (amend. 2005, 2006, 2007, 2009, 2010, 2011, 2013, 2014, 2015); • The Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal Entities; 11 June 2007 (amend. 2007,2008,2009 2010, 2011, 2012); • Law on State Property 2010 (amend 2011, 2012,2013,2014; last update August 13, 2018); • The Law of Georgia on Public Register- No820 –IIs; December 19 of 2008; (amended 2009 2010, 2011, 2012, 2013, 2014, 2015); • In frames of national project, the Law of Legal Power of Land Parcels, Systemic and Sporadic Registration and Improvement of Quality of Cadastral Data. June 17 of 2016. (amended December 14, 2016); • The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999 (amend. 2005, 2007, 2010, 2013; last update July 19, 2018); • The Civil Procedural Code of Georgia, November 14, 1997(amend. 1998-2015; last amendment dated July 11, 2018); • The Law of Georgia on State Property, June 21, 2010; • Labour Code, May 25, 2006 annulled (new Labour Code adopted on December 17, 2010; last amendment dated July 11, 2018); • Tax Code, January 2005 annulled (new Tax Code adopted on September 17, 2010; last amendment dated July 11, 2018); and • Law on Entrepreneurship, October 28, 1994.

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The above-listed laws and regulations define the following steps for the legal acquisition of property rights: • Step 1: Upon negotiable eviction, the contractor of the public needs and/or project shall obtain the property through the payment of due compensation based on a contract or an agreement prior to commencement of project activities. Prior to negotiation, the expropriator evaluates the property and estimates the compensation sum or other property according to the current market price without depreciation. Agricultural lands shall be evaluated taking into account the value of any crops seeded in the land, which should be calculated by taking into account the revenues the proprietor would receive during the current economic year. The Project will follow this approach and details of the organisational arrangements are provided in section 8.0. • Step 2: If amicable negotiation fails, the Law of Georgia On the Rules for Expropriation of Ownership for Necessary Public Need can be invoked to obtain permanent rights to land and/or other real estate property on the basis of Eminent Domain Law or a court decision upon payment of due compensation. Under the existing law, expropriation shall be carried out based on the order (decree) of the Minister of Economy and Sustainable Development and a court decision. The decree of the Minister of Economy and Sustainable Development states the public need for the property and grants the project agency the right to forcible or involuntary acquisition of the land. A relevant court then assesses the case for the general good and determines i) whether the order is justified by public interest and ii) whether the appropriate procedures have been followed. When the assessment is affirmative, the court validates the expropriation ordinance and approves its execution. The court decision usually also includes a detailed inventory of the assets to be expropriated, as well as provisions for the compensation to be paid to the property owners. If needed, the court can appoint a third party to assess the market value of lost assets and determine the compensation payable to the property owners according to the value of assets. After the expropriation order is approved, the entity or entities requesting the expropriation rights must notify all owners of the property affected in the decree. This is usually done by publishing, in both national and local newspapers, a short description of the project and its area, and listing each property that is subject to expropriation. The administrative rules for expropriation of real property shall be exercised only in cases where negotiations over the sales price of the property fail. In such cases the legislation for expropriation of property will be invoked. The above steps are described in detail in Appendix A. The existing laws provide that compensation for lost assets, including land, structures, trees and standing crops, should be based on the current market price without depreciation. The laws also identify the types of damages eligible for compensation and indicate that compensation is to be given both for loss of physical assets and for the loss of income. Income loss due to loss of harvest and business closure is to be compensated to cover net loss. Finally, national laws place strong emphasis on consultation and notification to ensure that the PAPs participate in the process. However, the national law does not include any provision for resettlement assistance or livelihood restoration. A gap Analysis of the differences between the Georgia legal framework and EBRD PR 5 is presented in Section 4.3.

4.2 Lenders policies The Lenders’ Policies that are relevant to land acquisition and compensation are as follows: • EBRD requirement on land acquisition, involuntary resettlement and livelihood restoration requirements are laid out in Performance Requirement 5 (EBRD PR5);

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KfW’s Sustainability Guideline requires adherence to E&S standards of the WB Group. Within the framework of donor harmonisation (Paris Declaration), KfW Development Bank can also use comparable standards of other development banks such as EBRD as it was agreed upon for this Project; • KfW also requires compliance with the FAO Voluntary Guidelines on the Responsible Governance of Land, Fisheries and Forests (2012); The Food and Agriculture Organisation of the United Nations (FAO) Voluntary Guidelines on the Responsible Governance of Land, Fisheries and Forests are covered by the EBRD PR5. Resettlement is considered involuntary by PR 5when affected individuals or communities do not have the right to refuse land acquisition that results in displacement. Although every effort to avoid involuntary land acquisition is being made, the Project may need to resort to expropriation or impose legal restrictions on land use if negotiations fail. The Lenders’ policies on involuntary resettlement require inter alia: • Consideration of feasible alternative project designs to avoid or a least minimise physical and/or economic displacements; • Encouraging acquisition of land through negotiated settlements to avoid expropriation; • Provision of full and accurate information about the displacement activities involved by the Project, and enabling PAPs meaningful opportunities for participation in design, implementation and monitoring of the displacement activities, with particular attention paid to the requirements of vulnerable individuals, households and women; • A socio-economic baseline assessment on people affected by the project, including impacts related to land acquisition and restrictions on land use; • Provision of compensation for loss of assets at full replacement cost and other assistance. This is intended to restore, and potentially improve, the standards of living and/or livelihoods of displaced persons to pre- displacement levels; • Provision of compensation and resettlement subsidies prior to clearance of Right of Way/demolition; • Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets • Special provisions to be made for individuals belonging to disadvantaged of vulnerable individuals and groups to improve the living standards of living of the displaced disadvantaged and vulnerable individuals and groups; • That displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets; • Assistance for relocation, to improve living conditions among displaced persons through provision of adequate housing with security of tenure at resettlement sites; • Establishment of an effective grievance mechanism as early as possible in order to receive and address in a timely fashion specific concerns about compensation and relocation that are raised by displaced persons; • Where the exact nature or magnitude of the land acquisition or restrictions on land use related to a project with potential to cause physical and/or economic displacement is unknown due to the project development stage, the development of a Resettlement and/or Livelihood Restoration Framework • Where there is physical and/or economic displacement of people, the development of a RAP to mitigate the negative impacts of displacement, identify potential benefits and establish the entitlements of all categories

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of affected persons (including host communities), with particular attention paid to the needs of the vulnerable.

4.3 Gap analysis between national legislation and international policy In Georgia, entitlements for payment for the exchange of land are based on registration of ownership. However, under the Lenders’ involuntary resettlement policies, affected persons are entitled to some form of compensation whether or not they own a registered land title, if they occupy or use the land prior to the cut-off date. The focus of the Lenders’ policies is to mitigate the adverse impacts of poverty, where any adverse impacts occurring are directly or indirectly attributable to activities funded by the project. In cases where PAP have no ownership or tenure rights according to Georgian law due to lack of registration, the provisions of the Lenders’ requirements will be applied in terms of their rights for compensation, consultation, and grievance mechanisms. Where there is a difference between the compensation requirements of the laws of Georgia and Lenders’ requirements, the more beneficial to the affected people, will be employed in order for the Lenders to support and fund the Project. Table 4.1 provides an analysis of the differences between Georgian Laws and Lenders’ requirements. Sections 8.0 and 9.0 present the operational approach adopted by the Project to align the Land Acquisition process on the Lenders Policies and thereby also comply with the Georgian Laws.

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Table 4.1 – Gap analysis between Georgian Laws and Lenders’ requirements

Issue Georgia laws and regulations EBRD land acquisition, involuntary Measures taken by the Project Company to resettlement and livelihood restoration Bridge Gaps Between Georgian law and requirements Lenders’ requirements

Resettlement Planning As per the Law of Georgia on the Rules for Development of a resettlement and land A LARCF has been prepared (this Expropriation of Ownership for Necessary acquisition plan or framework is obligatory document). Public Need, the State of Georgia has a for involuntary resettlement. The process RAP will be prepared for each Project constitutional right to carry out acquisition includes a socioeconomic survey with Component (see section 9.0) of property through expropriation (Clause gender disaggregated data and a The RAPs will include meaningful 21). vulnerability assessment. consultation with PAP (see section 10.0), The preparation of a RAP (including socio- Lenders require that measures are taken to socio-economic surveys and consideration economic survey, census of the population address the needs of female-headed of vulnerability (see section 9.0) affected by the project, monitoring and households and that both men and women reporting of the process) is not required by can access compensation and assistance. Georgian legislation.

Displacement avoidance Does not specifically call for avoidance of Actively seek to avoid displacement by See section 3.2 displacement whenever possible. exploring project and design alternatives to The Project will seek to avoid physical and minimise adverse impacts. Where not economic displacement or minimise these possible to avoid or minimise all if avoidance is not possible. displacement impacts, a project must identify mitigation measures.

Eligibility Compensation only required for registered Lack of formal ownership does not preclude See section 6.0 land owners or others with rights compensation to bona fide occupants or Displaced persons without titles to land or recognised by law. If land registrations are affected parties. any recognizable legal rights to land are in the process of being issued, Displaced persons without titles to land or eligible for resettlement assistance and compensation can be paid after completion any recognizable legal rights to land are compensation for loss of non-land assets at of the regularisation process. eligible for resettlement assistance and replacement cost, in addition to those with compensation for loss of non-land assets. legal ownership

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Compensation for land Article 21.3 of the Constitution allows the Land-for-land to be preferred in land-based Cash compensation agreements will be expropriation of the private ownership only economies, Cash compensation is only based on full replacement cost. according to the Court Decision on basis of acceptable if land for land is not feasible See section 6.2 the appropriate and fair reimbursement. and if loss of land does not undermine the Cash payment to individuals is the usual livelihoods of PAPs. option, but land-for-land compensation Community assets to be compensated at may be made with owner’s agreement. community level in the form of initiatives Cash payment to individuals is the usual that enhance the productivity of the option, but land-for-land compensation remaining resources to which the may be made with owner’s agreement. community has access, in-kind or cash No community level compensation compensation for loss of access or provision measures for communal lands and of access to alternative sources of the lost communal properties are specifically resource. required, although compensation for Cash compensation based on replacement community-owned and – registered lands cost and technical assistance and would presumably be required. monitoring provided to ensure cash compensation is used appropriately and livelihood restoration is completed. In cases where affected persons reject compensation offers that meet Lenders’ requirements and, as a result, expropriation or other legal procedures are initiated, the Project owner will explore opportunities to cooperate with the responsible government authority, and if permitted by the authority, play an active role in the resettlement planning, implementation and monitoring Timing of compensation: The Project owner should promptly compensate economically displaced persons for loss of assets or access to assets. This process should be initiated prior to displacement. Where compensation is to be paid by a responsible government agency, the Project should collaborate with the agency to help accelerate the payments

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Issue Georgia laws and regulations EBRD land acquisition, involuntary Measures taken by the Project Company to resettlement and livelihood restoration Bridge Gaps Between Georgian law and requirements Lenders’ requirements

Complaints Article 42 of the Constitution protects There must be an independent objective The Project Company will establish a and grievances citizens and encourages appealing to the appeal mechanism that is open to the transparent and accessible grievance court for protection of their rights and public and reported openly. mechanism for PAPs to use throughout the freedom in any claim dispute. The Project owner should establish a land acquisition process. In case of dispute over expropriated land grievance mechanism as early as possible in See Grievance Resolution Mechanism value, both the landowner and Project the process to receive/ address in a timely presented in section 11.0 Company can bring a lawsuit. manner the concerns related to physical/ Only the regional court has authority to economic displacement. decide disputes over land value and compensation. The Georgian legislation does not necessitate setting up a grievance mechanism for the affected people and businesses, though there is a 30-day period in which the list of affected assets can be rejected in the case of a material mistake in the case of customarily owned lands

Consultation with PAP to be No requirement for consultation with All affected and impacted people must be See sections 9.0 and 10.0 compensated? affected parties. consulted prior to agreements. All impacted people will be consulted prior Compensation must be agreed prior to to agreements. handover of assets and prior to civil works Compensation will be agreed prior to commencing in affected area. handover of assets and prior to civil works commencing in affected area.

Livelihood No provisions for livelihood restoration. Requires that affected people be in equal The RAPs will assess if there is a need for restoration or better socioeconomic condition as a livelihood restoration measures to restore result of the project activities. or improve the socioeconomic conditions The Project owner must provide assistance of the affected people. It this need is that will offset any loss of a community’s identified, livelihood restoration measures commonly held resources. will be defined and implemented. Livelihood restoration measures shall cover See section 9.2 all potential livelihood losses (fisheries, beekeeping, wine yards, loss of individual as well as common means of livelihood)

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Issue Georgia laws and regulations EBRD land acquisition, involuntary Measures taken by the Project Company to resettlement and livelihood restoration Bridge Gaps Between Georgian law and requirements Lenders’ requirements

Livelihood No requirement for monitoring of Proper monitoring, evaluation and Compensation and livelihood restoration restoration compensation measures. reporting of livelihood restoration will be monitored during Project mitigation/ mitigation measures are required. implementation via internal and external monitoring, completion report and monitoring independent audits. See section 12.0

Vulnerable No specific provision. Vulnerable people and households who The RAPs will define vulnerability criteria people warrant specific assistance must be and identify affected vulnerable persons identified and supported throughout the and households (see section 9.0) resettlement compensation process. Affected individuals and households Lenders’ require that measures are categorized as vulnerable will receive provided to enable poor and vulnerable specific assistance (see section 6.2.4) people (including women) who are physically displaced or affected by economic displacement improve their incomes and means of livelihood, or at least restore them to pre-project levels. The affected vulnerable persons shall have access to livelihood restoration measures.

Public No direct provision for public consultation Public consultation and participation of See section 10.0 consultation in Georgian laws pertaining to land affected people required throughout Consultation with key stakeholders and and acquisition, but there are information and project process from planning through PAPs regarding resettlement aims for a disclosure requirements. implementation, including public disclosure participatory approach. notifications of activities and consideration Vulnerable individuals and groups were of the needs of vulnerable individuals and considered in the implementation of groups. Resettlement documentation consultation activities. should be disclosed. Resettlement documentation will be disclosed.

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Issue Georgia laws and regulations EBRD land acquisition, involuntary Measures taken by the Project Company to resettlement and livelihood restoration Bridge Gaps Between Georgian law and requirements Lenders’ requirements

Monitoring No requirement. Monitoring and evaluation to be clearly See section 12.0 and defined in the resettlement planning Internal and external monitoring are evaluation instrument. Monitoring and evaluation to defined by the LARCF. confirm attainment of equal or better Completion reports, and external conditions than pre-project or recommend completion audits will assess if the measures to attain those conditions. objectives of the LARCF have been External monitoring for projects classified achieved. If this is not the case, corrective as high social risk. actions will be defined and implemented.

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Overview of estimated potential impacts

This section provides an overview of the land tenure and land use in the areas impacted by the Project’s Components. It aims at indicating a high-level estimate of the order of magnitude of the impacts of the Project’s land acquisition process. The description of the socioeconomic situation in the Municipalities and Communities crossed by the Project is detailed in the Document 4.2 of Volume 4 Social Impact Assessment. For the reader’s convenience, Section 5.1 repeats the land tenure and land use information given in Document 4.2 to describe the land tenure context and the categories of land use affected along the Project’s Components. The methodology followed to document the land tenure and land use baseline is explained in the Document 4.1. The section 5.2 provides an overview of (i) the strategy to avoid and minimise the impacts of the land acquisition process and (ii) the potential impacts in terms of potential physical and economic displacement by considering structures and land plots potentially affected.

5.1 Overview of land tenure and land use in the Project-affected areas

5.1.1 Historical overview of land management evolution in Georgia Current practices of land acquisition and resettlement for development projects in Georgia are built upon the recent historical process and rapid changes Georgia has experienced over the past decades. This section presents a brief historical overview of land management in Georgia. Total agricultural land in Georgia amounts to about 3 million hectares5. Recent statistics6 of land use distribution in Georgia show the following: • Total country area: 6.97m ha; • Agricultural lands: 3.03m ha; • Arable land: 0.80m ha; • Perennial plantations: 0.26m ha; and • Meadows and pastures: 1.97m ha. Land management in Soviet period All land in the Soviet period (i.e. until 1991 in Georgia) was considered to be State property. In contrast with some formerly communist countries in Eastern Europe, none of the post-Soviet republics, including Georgia, recognised pre-nationalisation ownership rights to land and associated claims. Upon the collapse of the Soviet Union, land was privatised regardless of pre-nationalisation land rights and no compensation was paid to pre- nationalisation landowners. During the Soviet period, agriculture was characterised by State ownership of all agricultural land and concentration of production in large-scale collective farms, i.e. sovkhoz (State agricultural enterprises) and kolkhoz (cooperative agricultural enterprises). The sovkhoz differed from the kolkhoz as follows: • The sovkhoz (‘sovietskoye xozyajstvo’ – soviet husbandry) comprised ordinary State-owned enterprise (e.g. all industrial enterprises) with an appointed management and salaried workers who were simply expected to execute the instructions of the management and had no ownership, whether private or joint, over any of ______

5 The text of this section is based on the introductory paragraphs to the “Final Report – Land Market Development II Activity” prepared by APLR for the USAID, and a 2012 FAO report prepared under EU financing and available at http://agrokartli.com/?page_id=122.

6 FAO report GCP/RER/041/EC, 2012

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the means of production, which all belonged to the State, including agricultural land. Sovkhoz workers were typically housed in apartment blocks or other housing belonging to the enterprise (i.e. to the State), where they had a non-transferable right of usage over a flat that they did not own and had no access to private plots (at least not officially, although it may have been tolerated, particularly into the 1980s). • The kolkhoz (‘kollektivnoye xozyajstvo’ – collective husbandry) comprised cooperatives with joint ownership by the workers of some of the means of production (such as cattle or equipment, but not land which remained under State ownership). Workers had some control over the methods used (they were members rather than employees), as well as some incentives on productivity. The kolkhoz legislation recognised the right for kolkhoz members to retain personal ownership of their residential house, and usage rights over garden plots typically located around the house but also sometimes allocated to them from the kolkhoz fund. Sovkhoz were usually larger than kolkhoz. In both cases, rural households could at the same time be employed by the State or cooperative farm and have private usage rights (not ownership) over household plots, usually located close to their residences or around settlements, and in an area of 0.25 ha per household. While this land remained State property, people had a right to cultivate it as they pleased, as long as they had done their due at the State or collective farm. Like apartments or houses, land subject to this arrangement remained State property, and was not transferrable or inheritable. If people moved or died, this land was returned to the land fund and the local council would reallocate it to others. Similarly, in the residential areas of cities, all land was State owned, and there was no private land permitted. An important feature of the Soviet system, which is still to a large extent applicable now, is that the ownership of land and the ownership of a building upon this land can be different. In the current situation buildings are privatised, but the land upon which they are established is still publicly owned (typically by Municipalities or sometimes by the State). Residential housing was also State owned, but with usage rights formally allocated to residents. These rights were typically not transferrable and not inheritable. If a resident was to move or to die, the local authorities in charge would decide to whom to allocate the dwelling. Practice was different in rural villages, where ‘family’ houses (and the associated piece of residential land and attached garden) were usually kept within the same family. Particularly kolkhoz workers typically retained a right of usage over their house. Upon the collapse of the Soviet Union and Georgia independence in 1991, the land tenure situation was as follows: • Nearly 1,300 large collective and state farms cultivated about 3 million ha of agricultural land. Approximately one million hectares were arable or perennially cropped land; the rest were mostly pasture and mowing lands; • About 700,000 farm households cultivated about 15,400 ha as household garden plots, which stayed in State ownership and were typically allocated by State farm management under formal or more frequently informal lifetime lease arrangements. Some factories also allocated land to cooperatives of workers for them to develop private gardens, particularly in areas around the main cities. Land reforms in independent Georgia and current institutional setting Agricultural land Shortly after independence from the Soviet Union in 1991, the Georgian agricultural land reform was initiated in 1992 by the first Shevardnadze government as part of the general transition towards a market economy, with a two-fold strategy, intended to create both a sector of subsistence oriented small landowners and a market- oriented sector with larger leaseholders: • First, the ‘small parcel reform’ involved the free of charge distribution in full private ownership and free of charge of land parcels of up to 1.25 ha in the lowlands to rural families for subsistence farming, a process usually referred to as ‘privatisation’ of land;

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• Secondly, District authorities leased the remaining state-owned land in larger allotments to physical persons or legal entities, with the goal to create larger cash crop-oriented farms. This land was allocated under short- to mid-term leases (typically three years), generally, but not only, to private entities that were created using the existing equipment and infrastructure of the state farms upon their dismantling. The intention behind the leases was obviously to generate regular revenues to the State, and possibly to preserve the existing infrastructure of large farms inherited from the sovkhoz and kolkhoz. However, in 2005 this arrangement was changed as the new government realised that these large farms were not productive and that the lease arrangement had not reached its objective of creating a large agri-business sector. This land was, therefore, eventually privatised, typically to the very entities that were benefitting from the leases as they benefitted from a pre-emption right, such that there are now very few of these large lease holders remaining. The “small parcel” reform was initiated in early 1992 (“Decree 48”, or the “Land Privatisation Decree”, which addressed only agricultural land) to transfer ownership of agricultural land from the State to households on an emergency basis. A "privatization fund" of 0.8 million ha of land was established covering roughly 30 percent of all agricultural lands and approximately 60 percent of all lands defined as being "arable" and "perennial". Lands qualifying for the Privatization Fund were distributed free of charge to rural households. The maximum area of agricultural land to be transferred into ownership in lowlands was 1.25 ha and up to 5 ha was distributed to the eligible households in the highlands. Land reform committees elected by the village managed the land distribution process. The size of privatised agricultural landholdings varied in the lowlands from 0.3 to 1.25 ha, with a typical allocation of a half hectare, and the stipulation that the land should be farmed, although not necessarily by the landowner. Commissions were established in each village to inventory land parcels and identify those to be privatised. Limitations were placed on what the new owners could do with their land (essentially, they were expected to farm rather than build or otherwise develop). By the end of 1993, over half of all cultivated land had been transferred to private ownership. Small plots were also allocated free to city residents to relieve the acute food shortage in that period. In most occurrences, the plots allocated to city residents were not cultivated by the landowners themselves but by lessees, generally on an informal basis (relatives or others). Lands were distributed in the lowlands according to three categories: • farmers - up to 1.25 ha per household; • other rural dwellers - up to 0.75 ha per household; and • urban dwellers - up to 0.25 ha per household. High mountain pasture land was treated separately; this land was usually not privatised and was allocated to communities (in principle pasture land cannot be privatised unless its categorisation is changed). Communal councils (represented by their Representative of mayor) were allocated large areas of pasture and hay land in usufruct. This land is currently not intended to be allocated in lease to local residents for grazing or mowing purposes, but in some Municipalities informal arrangements are made. While a significant part of rural land (agricultural and residential) is indeed privatised, much of it, even in lowland areas, is not registered with National Agency of Public Registry (NAPR) as yet. This situation is changing rapidly as NAPR identifies gaps in registration and currently extensive works are being carried out to complete registration of all rural lands. Non-agricultural land Private ownership of non-agricultural land did not exist at all prior to November 1997 and all non-agricultural land parcels used by private persons were deemed to be state owned, as the authorities prioritised the privatisation of agricultural land before starting privatisation of non-agricultural real estate.

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Privatisation of non-agricultural land has overall been less problematic than the privatisation of agricultural land, as such land is more readily registered, marketed, and transferred. Urban property reforms were undertaken in 1997, five years after rural land privatisation was initiated. Housing privatisation was carried out without privatisation of the land on which the property stood nor of the land adjacent to the property. Urban land was generally state-owned. However, the Civil Code, which became effective on 25 November 1997, declared that non-agricultural land parcels under individual houses and apartment buildings were under private ownership and the process of titling and registering such land then started. The second phase of privatisation covered industrial lands. In 1998 the Parliament of Georgia passed a special law on the Declaration of Private Ownership of Non-agricultural Land in Use by Physical and Private Legal Persons, which declared non-agricultural lands possessed by entrepreneurs as privately owned. The law established a one-off symbolic payment to obtain ownership rights, which was equal to the annual land tax. Initial registration accompanied the process of privatising industrial lands. Enterprises were required to submit certain documents to Registrars in order to have the land privatised. The Law on the Administration and Disposal of State-owned Non-Agricultural Land of 1998 established that urban land has to be privatised through public tender. The Law on the Privatisation of Urban Land of 1999 is the most recent regulation on the privatisation of property in urban areas. Housing Housing in Georgia during the Soviet period was mostly in public hands. In Tbilisi, about 45% of the housing stock (in square metres) was directly in State ownership, with another 35% under various public institutions such as ministries or public enterprises. However, a sizable part (i.e. about 20%) was owned either by housing cooperatives or associations7, with a very tiny fraction (probably less than one per cent) remaining in individual private hands. The funding of construction differed between these two categories (State or cooperatives/associations): • The construction of State or enterprise owned housing was entirely financed by the State (or by State enterprises), then allocated to applicants based on waiting lists or on employment at the enterprise. Tenants were expected to pay a rent (or rather a fee for occupancy) and State housing stock was typically placed under the management responsibility of the different municipal council. Most large enterprises (including agricultural) were obliged to build housing for their workers, with self-contained worker cities a typical Soviet feature, particularly in rural areas or suburban fringes, whereby the State enterprise was not only supposed to provide housing but also all related services (heating, water, sewerage); • Cooperative housing was financed by cooperative members: the State would provide a 15 year loan to cover over 60 to 70% of the cost of construction, and cooperative members were expected to finance the rest upfront and to reimburse the loan, after which the apartment would be allocated in full property to them. Housing was privatised from 1992 and it is estimated that 95% or more of the Georgian housing stock is currently in private ownership. An important change in the last 10 years has been the introduction in Georgian banking services of mortgage loans, which were practically unknown before 2003. This has greatly stimulated the construction of mid-range apartment blocks. Land reform and management in Svaneti and Adjara As noted above even in lowland areas, in many places a significant proportion of agricultural and residential land plots are not yet registered. This problem is particularly severe in the more remote regions of Georgia, such as

______7 Housing cooperatives (Жилищно-строительный кооператив, ЖСК” were authorised in the 1920s, liquidated in 1937, authorised again in 1958 and strengthened in the early 1980s, when it appeared as the only method to tackle the serious housing problems that the Soviet Union was then experiencing, but overall at the level of the whole USSR housing cooperatives never accounted for more than 15% of the housing stock.

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Upper Svaneti (the proposed location of Component C1). Where land is not registered some information can be obtained at the municipal level using tax registries and historic village council records. The main specific feature of the mountainous regions is the limited areas of agricultural and residential land available and the existence of large forested areas and pastures. Due to the limited area of agricultural and residential lands available in these regions, and established traditional land use practices, there are not many disputable cases expected and it is not usually difficult to identify landowners and users of arable and residential land plots. Pastures and forest lands, although often perceived by the local communities as their traditional property, are in State ownership. Forest-lands belong to an agency called Forest Fund, under the management of National Forestry Agency. The use of land and economic activities such as forest logging are regulated according to legislation. Communities are allowed to use collective pasturelands and families are permitted to graze their cattle on pastures traditionally attributed to their family, however the land is not recognized as a private or community property. Thus, compensation for the unregistered pastures affected by the Project will require implementation of livelihood restoration programs rather than cash compensation of land. A similar situation, although more complex, arises in the Autonomous Republic of Adjara. Adjara was an autonomous republic during Soviet times and remains so currently. The region was de facto governed separately in the period between 1993 and 2004 and as a result the privatisation and registration of land, a major achievement of Georgia in that period, was never implemented systematically in this autonomous area. This has affected the process of privatisation of residential and adjacent agricultural land plots. No land distribution actions have been implemented and no documents produced in relation to many agricultural land plots that were in Soviet times under the Sovkhoz and Kolhoz ownership. Privatisation has taken place but private interests in land were typically not registered. To tackle this complex legal issue before the Government has completed land reform in Adjara, the practice to manage development projects related land acquisition and compensation process is to go through specific decrees issued by the Government of Georgia to legally support compensation payments. Access to resources (forests) With regard to use of forest areas and access rights; commercial exploitation of timber is regulated by State law. Logging is only authorised under a licence issued by the National Forestry Agency. Taking wood for household use is also regulated by a permit. Each household is authorised to consume 8m3 of firewood per year. Within each community, a ranger provides permits and controls the amount of wood collected. According to the interviews conducted, this regulation system is well respected by the communities. Overview of categories of land use affected Methodology The methodology used to undertake the social baseline data collection (including land tenure and land use) is described in the Document 4.1 of Volume 4 Social Impact Assessment. It is summarised here for the reader’s convenience. The categories of land use affected have been estimated using aerial imagery and information collected during a qualitative survey. The qualitative data collection consisted in (i) a rapid survey of all the accessible section of the lines alignments, (ii) direct field observations through detailed walkover in potentially sensitive areas regarding the expected social impacts: residential areas close to the central alignments of the lines or areas where dense farming activities were identified in the potential Right of Way, and (iii) qualitative interviews with local authorities and local residents in the areas identified as potentially sensitive. In total, 25 detailed walkover segments were chosen to conduct the detailed field observation and the qualitative interviews with the local residents. Their location is illustrated on maps in the Document 4.2 of Volume 4. At

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 least one segment was studied for each municipality crossed by the Components. The segments were chosen to be representative of all social contexts found on each Component. Direct field observation during the detailed walkover allowed to characterise the land use, and to identify and localise sensitive elements, such as dwelling or cultural heritage elements (cemeteries) located in or very close to the potential Right of Way. Qualitative semi-structured interviews were conducted with local residents selected by an iterative snow-ball sampling technique8. Interviews were also conducted with the representative authorities of Municipalities. Informal discussions were also conducted whenever possible. These two types of interviews aimed at collecting information about local informal land tenure practices (if any), land uses and their seasonality, social organisation and means of livelihoods, women’s position, vulnerable individuals and groups, and tangible and intangible cultural heritage of local value. These interviews did not aim at achieving statistical representativeness, but rather to identify the diversity of socioeconomic situations along the Components alignments. The objective was to identify the existence of local peculiarities in each segment, regarding local land tenure practices. This is not a limitation and is considered appropriate for a framework level document such as this LARCF. The qualitative data collection was undertaken between May and July 2018. Two fields study surveys were conducted: one from 7 May to 16 May, and the second one from the 11 June up to the 2 of July. Categories of land use affected Seven main categories of potentially impacted land use have been identified. These categories are defined according to uses and not land tenures or registration status and are as follows: • Agricultural: all lands used for farming purposes, whether owned by the state, private companies or families, and used for economic purposes (generating cash income) and/or for subsistence activities (such as livestock farming, wine making, beekeeping, fisheries); • Residential: all areas on which structures have been identified. It was not always possible to distinguish houses from other types of dwellings, or to establish if the structures were occupied or derelict from the aerial imagery (residentials areas include buildings used for businesses activities and tourism activities); • Roads: this category concerns the main asphalted roads identified within volume 4; • Forest: dense wooded areas; • River: watercourses; • Cemetery: all lands that belong to a cemetery; • Other: this category includes any kind of land which does not fall under the categories previously cited. It includes informal communal resources such as open grazing land. The Table 5.1 estimates the area of each of these seven categories of land use within the Rights of Way of each Component.

______

8 In social science research, snowball sampling is a nonprobability sampling technique where existing study subjects recruit future subjects from among their acquaintances. Thus, the sample group is said to grow like a rolling snowball. It is widely used for qualitative and iterative fieldwork.

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Table 5.1 – Estimated land use categories areas in the Rights of Way

Category of Estimated area in the RoW by Component Total land use A B C1 C2 D Agricultural 306.4ha 33.1ha 18.1ha 114.2ha 282.8ha 751.8ha Residential 8.7ha 0.7ha 1.7ha 3.3ha 2.6ha 17.1ha Roads 7.8ha 12.7ha 3.4ha 35.5ha 8.7ha 68.7ha Forest 105.5ha 93.7ha 163.3ha 847.1ha 57.8ha 1267.5ha River 5.8ha 3.1ha 1.1ha 28.5ha 15.9ha 55.4ha Cemetery 0.7ha 0ha 0ha 0ha 6.4ha 7.1ha Other 594.1ha 102.7ha 105.1ha 172.1h 57.3ha 1030.1ha Total 1029ha 246ha 292.9ha 1200.7ha 431.6ha 3200.2ha

5.1.2 Women access to land ownership in the Project footprint Over the last two decades, the Government of Georgia has improved the national legislative framework and developed land law and policies in gender equality. According to state law, women and men are equal regarding accession to resources and ownership. Married women are by law co-owner of their husband’s property if the asset has been acquired while married. According to article 11 (3) of the Constitution, “The State shall provide equal rights and opportunities for men and women. The State shall take special measures to ensure the essential equality of men and women and to eliminate inequality”. With regards with the law, women and men should therefore be treated equally. However, the social status of women in rural areas remains low and gender stereotypes persist. It favours a patriarchal system which considers land ownership as a man business. In practices, especially in remote areas, residency is patrilocal: a man inherits his father's property (including land and family home) and then passes it on to his son who would be responsible for looking after his parents; while daughters leave their family home to join their husband’s family. A father may, upon his death, provide a small plot to any female children, however, these plots are usually smaller than those provided to his sons. Women may traditionally inherit property, but it is less common as they usually go live with their husband’s family. She would then inherit her husband’s property as a widow, which will pass upon her death to her children, the eldest male if there is a son or an unmarried daughter if there is not. Unmarried adult daughters usually live with their parents, as do married brothers. Although women can legally register lands in their names, there are a number of issues that may prevent them of doing so, and for which the Project should support them. In most regions, since the agrarian land reform of the 1990s, the residential or cultivated land was registered after the fall of Soviet System, with the norm being to draw up property deeds in the name of the husband. Even though plots of land were given per household, it was common practise to only list husbands as registered owners in the household records of the State department of Land Management. It was only where a woman headed the household that she would be given title deeds in her own name. On these property deeds are written the name of the owner (the head of household) and sometimes his sons, considered as users at the time of writing the deed. At this stage, the designation of one or the other as heir is not specified. Thus, officially, wives do not usually appear as owners and not systematically

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 as users during registration. After the husband's death, procedures for updating the property deed are rarely undertaken; as the procedures are found to be complicated and unnecessary. However, while interviews conducted with women in the study area confirmed that many of them depend on land that they do not own, they did not describe this situation as discriminating against them. Both men and women interviewees suggested that nothing forbids women from owning or inheriting land, even though they both mentioned that patrilocal practices still persist in rural/remoted areas that prevent women to access to land ownership. According to the interviews conducted, a woman will usually farm and manage the land of her husband, as it is common practices for the men to manage land. Despite this lack of administrative recognition for them as users, women do not consider that they are arbitrarily excluded from decision-making over the land they inhabit and use. Women interviewees suggested that, if they want to be recognised as joint landowner, their husband will agree as there are no customary rules forbidding them owning, leasing or inheriting land as single or married. However, unlike in Imereti, Guria, Kakheti and Racha-Lechkhumi lower Svaneti regions, interviews conducted in Svaneti have revealed a stronger patriarchal system where women are not entrusted with land management.

5.1.3 Land tenure and land use in Component A Land tenure and land rights in Imereti and Samtskhe-Javakheti regions In Imereti and Samtskhe-Javakheti, as in the rest of the country, agricultural and residential land is private land held by families, either legally registered or considered as private through customary ownership. Households usually have a small garden next to the house where vegetables and other produce are grown for household consumption. It is also common to have a plot of land away from the house and on which produce such as maize and potatoes are grown. This produce can be for household consumption and/or sold at the local market. The plots are typically 0.75-1.25ha. Leasing of agricultural and residential land is not common and few households lease State lands for farming or for grazing. A lease is required to farm on State land. However, areas of forest land or highland are sometimes farmed without State authorisation. Pasture land used by rural communities for grazing their livestock is usually State land. Municipal authorities interviewed declared that using State land should be subject to a fee. However, currently it is tolerated to use State land for grazing purposes without payment of such fees. There are two types of pasture land, lowland areas used throughout the year, and highland areas used between April and September. Within a village there are no informal land access rules and people choose the pasture land they wish to occupy. This is because there are sufficient pasture areas available and in addition, there is no recognised authority at the local level that would have the legitimacy to enforce land management informal rules. Village boundaries for pasture area are usually informally defined and cattle from one village rarely stray into the next as it could cause disputes. With regard to use of forest areas and access rights; commercial exploitation of timber is regulated by State law as elsewhere in Georgia. No traditional access rules and management system for forest areas have been identified on Component A. Land tenure and land rights along the Component A lines Five land segments were selected for Component A to study in detail the land tenure and local land rights systems. These were as follows: • One in Tskhaltubo Municipality within the Patriketi community (segment 1, KM15 to KM19 of the Sairme line); • One in Vani Municipality within the Amaghleba community (segment 2, KM23 to KM28 of the Sairme line);

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• One in the Adigeni highlands within the Adigeni community (segment 3, KM59 to KM69 of the Sairme line), and • Two in Akhaltsikhe Municipality that cover parts of Persa, Agara, Sviri and Eliatsminda communities (segment 4, KM86 to KM92 of the Sairme line and segment 5 KM95 to 102 of the Sairme line and KM3 to KM7 of the Tao line). Interviews conducted in the five segments have revealed many similarities and few differences overall. The land tenure practices along the Component A are similar to those described in section 5.1.1, except in the Adigeni highland (segment 3). Municipal authorities of Adigeni, and some owners of summer cabins located in the highlands, indicated that the Adigeni highlands are state land and there is no private registered land. Nevertheless, municipal authorities tolerate the presence of summer cabins that are occupied by herdsmen whose livestock graze on the pasture land between June and September (Figure 5.1). The authorities have also tolerated the establishment of a small Alpuri Aqro cheese production business (close to KM67 of the Sairme line). The business is owned by a non- Georgian and during the June-September milk is bought from local people to produce cheese which is sold in Tbilisi. The business provides local employment, as milk is bought directly from farmers living in the surrounding villages. Because of the past history of the settlement, some inhabitants of the Adigeni community perceive land as a collective property. Interviews inform that the settlements were established before the Soviet period and have always been used seasonally because of the cold and snowy winters. During the Soviet period, some collective summer livestock farms were developed as part of the collectivisation of goods, livestock and means of production. After Georgian independence, and the agrarian land reform, the highlands were not distributed to private individuals and were declared state land. However, the summer cabins were left in place and some families have continued to occupy them during the summer when their livestock are grazing on the pasture land. Time has forged the idea that land around the settlement belongs to the community. The people of the community have a strong attachment to the land – considering that they belong there. However, it seems that the inhabitants of the settlements located in the southern part of the highlands have not developed this feeling of collective belonging to the land. According to the interviews, this could be explained by its location which have encouraged new families to build summer cabins after the end of Soviet Period. This mixing of new and old families may have reduced this feeling of collective attachment to the land. Specific measures will be required in the Resettlement Action Plan (RAP) for this section of the Sairme line (between KM64 and KM71), to address the specificities of the local land tenure practices and of the informal grazing rights. The RAP for the Sairme line will include activities to: • Confirm these customary or informal rights of use through a participatory approach with the affected communities; • Establish the dependency of the affected people to the seasonal activities conducted in these affected areas and establish the extent of the Project impacts on the affected people means of livelihood; and • If means of livelihoods are affected, define with the affected people livelihood restoration activities.

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Box n° 1 Interview with a man in his fifties who owns a wooden house in a summer settlement (30 June 2018) The interviewee explains his father used to come here and that his house was built during the Soviet Period. There are seven families within the summer settlement, and they all know each other well as they all come from the same village: Naqurdebi. The settlement is located between KM66 and 67. He admits that, during the land reform, those highlands have not been distributed and that no authority came to confirm their property. However, he argues that this settlement belongs to this community composed of seven families. The settlement territory includes grazing land located not far from the summer cabins. The seven families come every summer for four months to use the grazing land. On average, each family has 10 cows. He underlines that there is no specific authority that manages the settlement. If one day an important dispute will arise, it is the police or the municipal authority who should handle it.

In Amaghleba (segment 2), Persa and Agara (segment 4), livestock activities seem to be carried out mainly by women even though it was not mentioned as a rule but rather as a habit. In general, women, children and men cultivate the land together but works that require more physical strength are done by men. “We hold land as a family and we cultivate it all together. Even children are helping when they are not at school. Land rights are not determined according to gender. Every member of the family has equal rights and access to the family land”. (Woman, teacher in Akhaltsikhe Municipality, Sviri Community, 13/05/2018) According to the interviews conducted within the five segments, men and women have equal rights and access to the family land even though most title deed or certificates are registered under the husband’s name.

Figure 5.1 - A summer settlement in Adigeni community (30/06/2018) Land use along the Component A lines This section describes the land use along the Sairme and Tao Line. The Sairme line starts in Imereti region, in Tskaltubo Municipality within Gumbra community. From KM0 up to KM2, it mainly crosses flat agricultural fields. At KM3.5, the line passes through Kutaisi city for about 1KM before crossing back into Tskaltubo. It crosses the Kutaisi-Khoni-Samtredia asphalt road around KM3 and a residential area that includes the Kutaisi Homeless animal shelter, two abandoned building as well as a house made of bricks and sheet metal (Figure 5.2).

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Figure 5.2 - Kutaisi Homeless animal shelter in Kutaisi city (08/05/2018)

At KM3.5 up to KM5, the Sairme line crosses Maghlaki community and runs through agricultural land as well as grazing land. Near KM4, the line passes through a residential area where there is only one house inhabited. From KM5 up to KM8, the line is crossing Kvitiri community, in areas mainly composed of wild meadows or unused land with two exceptions between KM6 and KM7: one residential area with a gas pumping station and the main road coming from Khoni to Kutaisi. At KM8, the route crosses Mukhiani community up to KM14. It mainly runs through agricultural fields. At KM10, it crosses the secondary road going from Mukhiani to Kutaisi. Around KM12 and KM13, it goes through the secondary road going from Mukhiani to Geguti and the major highway going from Samtredia to Zestaponi. Between KM14 and KM15, the line passes through Opshkviti community and crosses agricultural fields and grazing land. At KM15 up to KM22, the line crosses Patriketi community and is mainly running through agricultural land. Around KM17, it crosses directly over and adjacent to 11 greenhouses and crosses the main road going from Sakulia to Geguti. At KM18, it runs close to two greenhouses localised west of the RoW. At KM20, it crosses the secondary road that runs along Vartsikhe channel. From KM20 to KM21, the line crosses several times the Rioni River. Around KM20, the Sairme line is entering Vani Municipality, in Amaghleba community around KM22 up to KM28, where agricultural land is dominant. The line crosses through one of the main roads going from Vani to Kutaisi at KM23, one residential area and the Kvinistskali River around KM26. At KM28, the line crossings the Saprasia community up to KM31 and is passes mainly through forest. Around KM31, the transmission line enters Dzulukhi community up to KM35. Forest and agricultural land are dominant. Around KM35 up to KM37, the line crosses Saprasia a second time then runs through Zeda Vani community which mainly consist of dense forest up to KM42. From that point, the altitude is reaching 750m and will not drop below 1,000m up to the end of the transmission line. Around KM43 up to KM56, the line approximately runs along the Chokhatauri Municipality border and crosses highlands. Accessible areas are mainly used as grazing land during summertime. At KM56 up to KM71, the line is going through Adigeni Municipality, within Adigeni district highlands. Land is seasonally used as grazing land. KM71 marks the end of the highlands. The line enters Pkhero community up to KM75, then Benara community up to KM77. Wild meadows or unused land is the dominant type of land. At KM77, it enters Varkhani community up to KM84. The line is also crossing the road going Akhaltsikhe to Abastumani and some agricultural fields. At KM84, the transmission line runs through the Municipality of Akhaltsikhe and crosses one cemetery around KM85. Between KM84 and KM89, the line is approximately running along the Eliatsminda community Border and

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Akhaltsikhe highlands and is mainly crossing wild meadows and agricultural land. From KM90, the line enters Sviri community up to KM95, then Persa community up to KM101. Wild meadows or unused land is the dominant type of land with two exceptions at KM96 and KM100 where agricultural fields can be found. The Sairme line ends at KM102 in Agara community, at 1,100m above sea level, where the extension of the Akhaltsikhe substation will be built (Figure 5.3).

Figure 5.3 – Akhaltsikhe substation and its surroundings (12/05/2018)

The Tao line starts at the Akhaltsikhe Substation site then heads southwest, crossing the community of Persa up to KM7. Around KM4, it passes through a residential area composed of six structures. It includes a water pump, four abandoned building and one inhabited house9 (Figure 5.4).

Figure 5.4 – One inhabited house in Persa community (12/05/2018)

The Tao line mainly crosses wild meadows or unused land as well as few agricultural land at KM5 and KM7. From KM7 up to KM10, the Tao line passes through Sviri community, then from 10KMto 12KM it goes though Klde community. The dominant landscapes crossed are also wild meadows or unused land with some agricultural fields (Figure 5.5). From KM12 to KM14 the line is briefly passing through Sviri community and it crosses the secondary road going from Akhaltsikhe to Tatanisi village between KM13 and KM14. From KM14 up to KM19, it goes through Tsqruti community and is mainly crossing agricultural fields. At KM16, it intersects the secondary road going from ______

9 The owner of this house has been interviewed.

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Akhaltsikhe to Tskruti village. At KM19, the line crosses briefly Skhvilisi community for 1.5KM and runs through a residential area composed of three structures and some agricultural fields. From KM21 up to KM25, the Tao line enters Adigeni Muncipality within Benara community and crosses agricultural fields and wild meadows. At KM25, it intersects the main road from Akhaltsikhe towards Batumi and the Kvabliani River. From KM25 up to the KM33, the Tao line is mainly crossing some sections of agricultural land and wild meadows. From KM26 up to KM29, the line is repassing through Akhaltsikhe Municipality within Vale community, then it enters once more Adigeni Municipality within Arali community up to KM32. The last kilometre is running through the Adigeni Municipality highlands.

Figure 5.5 - Wild meadows mixed with agricultural land in Klde community (12/05/2018)

5.1.4 Land tenure and land use in Component B Land tenure and land rights in Guria region The land tenure system is governed by state law. There is no other organised land tenure system within the communities. The qualitative interviews did not reveal a different land management system from the Imereti and Samtskhe- Javakheti regions. Land management is still family-based, and land disputes are settled internally before going through formal state law in case of failure. The general situation described in the section 5.1.1 does apply. Land tenure and land rights along the Component B lines Two land segments have been chosen for component B: • One in Ozurgeti Municipality within Naruja and Likhauri communities (segment 6, KM0 to KM5 of the Guria line + Paliastomi loop); • and one in the highlands of Chokhatauri Municipality (segment 7, KM25 to KM29 of the Guria line). The line goes near the village of Bakhmaro on the Meskheti mountain range in the Guria region. Some particularities have been identified as (1) the lack of flat state land used as grazing land (segment 6), and (2) a

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 tolerated use of state land by the government to build summer houses in the highlands of Chokhatauri (segment 7). Since independence, Chokhatauri Municipality tolerates the building of summer cabins in these areas on State lands, so herdsmen can come and with their cattle during the months of June-September. The lack of flat state lands has led Municipalities to authorise families to use forests as grazing land for free. It is also permitted to cultivate a small plot of land where they usually grow potatoes and strawberries (Figure 5.6). According to the interviews conducted within segment 8, there is no customary land tenure within the settlements. Some people have bought existing summer cabins while others have built their own. In all cases, the settlements did not exist during the Soviet period and are not legally registered within the Georgian cadastre. All the people originate from Ozurgeti or Chokhatauri Municipality, and there are no family ties between them. The specificity of Component B with regard to the potential land acquisition impacts is related to the sections of the Guria line where (i) local residents use the forest as grazing land for free and (ii) tolerated use of State land by the government to build temporary houses and cultivate crops in the highlands of Chokhatauri. These specificities will be considered when assessing the land acquisition impacts on the affected people livelihoods and defining mitigation measures. The RAP for the Guria line will include activities to: • Confirm the use of forest and State land by the affected people; • Establish the dependency of the affected people to the activities conducted in these affected areas and establish the extent of the Project impacts on the affected people means of livelihood; and • If means of livelihoods are affected, define with the affected people livelihood restoration activities.

Box n° 3 - interview with a man who owns a wooden house (28 June 2018) A man in is forties bought a summer cabin ten year ago. He lives in Ozurgeti. He and his family come every year to spend four months in the mountains. He claims that the quality of grazing land in the highlands is better for cattle. He has 30 cows but most of his neighbours have around 100 cows. No one is looking after the cattle which graze freely. Dogs protect cattle from bears and wolves. There is no special authority to manage the land or resolve disputes and they have all built their houses after the independence of Georgia. However, families know and help each other when needed. He underlines that no one consider grazing land as private or collective property. Furthermore, he claims that everyone is following state law. First, the Municipalities of Chokhatauri and Ozurgeti are aware of their activities, and, second, the rangers from the Forest Agency come regularly so they can legally have access to firewood.

As far as women land rights and access is concerned, old patriarchal traditions were also mentioned several times, especially for families living in mountains. This custom is based on the idea that women are not interested in land. As a wife, a woman will farm on the family land brought by her husband. If she is not married, she will access the land through inheritance, purchase or lease. Therefore, land belongs to men by custom. This tradition does not prohibit women from owning land but was mentioned as a habit related to family practices. Women can own land. This tradition is mainly based on the idea that women are not interested in these issues and that it is up to men to provide land to cultivate to ensure the well-being of the family. However, the women land rights are not different from men’s ones and they can inherit the land of their parent if they wish so. According to the Interviews conducted, there is no customary land management within the forest and the main activities conducted are related to cutting of firewood. As in Imereti and Samtskhe-Djavakhetie regions, the delivering of temporary permit regulates this activity. However, it should be noticed that 48% of the territory of Guria is covered by forests. Forest land equals to 86,400 hectares, out of which 81,700 hectares are covered with forests, but the inventory of forest resources of the region is not registered.

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Figure 5.6 – A summer cabin and its garden in the highlands of Chokhatauri Municipality (28/06/2018)

Land use along the Component B lines This section describes the land use along the Guria Line. The Paliastomi loop starts at the Ozurgeti substation in Ozurgeti Municipality within Likhauri community. From KM0 up to KM2 where it crosses mainly wild meadows or unused land as well as agricultural fields. At KM2, it enters Naruja community and goes mainly through agricultural areas up to the end of the line in Kobuleti Municipality (in Ajara Autonomous Republic region). The line finally crosses 180m of agricultural area in the Kakuti Community, and 60m of agricultural area in Leghva Community. The Guria line goes through Likhauri community within Ozurgeti Municipality from KM0 up to KM5. At KM0, it intersects the main road between Ozurgeti and Kobuleti as well as a secondary road, and it briefly encroaches upon a residential area composed of one house. It goes through agricultural land up to KM2 where it intersects the Likhauri-Achil road. Around KM3, the line runs through the Achistskali River then crosses agricultural fields up to KM5. The line goes through Markvaneti community from KM5 up to KM8. It mainly crosses forest as well as the Akidakva River at KM7. At KM8, the Guria line enters Ozurgeti district highlands and is also crossing forest with two exceptions being the Bzhuzi River and a secondary road at KM12. Up to KM15, the Guria line is mainly going through forest and intersects several secondary roads and dirt tracks near KM16. From KM16 up to KM28, the Guria line ascends to the highland of Ozurgeti, altitude ranging from 2,000m to 2,500m above sea level, and passes through wild meadows seasonally used as grazing land. At KM28 up to KM36, the route runs through Chokhatauri Municipality within Chokhatauri district highlands. Forest and grazing land are dominant, but it intersects the main road connecting Chokhatauri to Bakhmaro around KM34 and passes close to one wooden cabin. Lastly, from KM36 up to the end of the line at KM41, the route runs through Nabeghlavi community and mainly crosses grazing land and forest. At KM41 it intersects Gubazeuli River.

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Figure 5.7 – Grazing land in Chokhatauri Municipality highlands (28/06/2018)

5.1.5 Land tenure and land use in Component C1 Land tenure and land rights in Zemo Svaneti region Land tenure and land management are governed by state law within Samegrelo-Zemo Svaneti region. There are agricultural lands, grazing lands and forest areas. Compared to other regions of Georgia, Zemo Svaneti has rather scarce land resources with only 6.7% of agricultural land. Land use and land rights seem to be slightly different than in other regions because of stronger traditions where land rights are sometimes linked to the ancestral family lands’ practise rather than following the state law. Those particularities mostly affect grazing and forest land. For centuries, the local population has owned property by inheritance or based on agreements between ancestors. During the agrarian land reform, the Zemo Svaneti area has experienced a different land distribution than in the other regions. Most of the families have reclaimed the ancestral land they used to farm before the Soviet period land reform of 1947. The land reform was not conducted fully within Zemo Svaneti region. Few families have received a certificate for their land. Therefore, it is common to find unregistered farming or pastural land characterised by a legal pluralism. Some plots of land will be considered legally as state land, whereas at the same time for the communities their management is based on customs and traditions. According to these customs and traditions, the ancestral land, named Sagvareulo Mitsa in Georgian, was composed of many Jishi Mitsa which are lands belonging to different extended families who have the same family surname. Most of the time, these lands are adjacent to each other to form a Sagvareulo Mitsa. A Jishi Mitsa is a land held by an extended family. Each member of the family has access to the land. They have equal land rights that do not depend on gender or social status. Each extended family living and cultivating on a Jishi Mitsa has the same family surname. By tradition, the selling of land cannot be done without consulting each head of extended families. However, there is no specific authority within a Sagvareulo Mitsa as far as land is concerned. However, according to interviews conducted, this customary organisation linked to land management tends to disappear. If extended families continue to live side by side, it seems that the spirit of Sagvareulo Mitsa has given way to a very individualised land management practice where decisions are no longer taken at an extended family level.

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Land tenure and land rights along the Component C1 line Three land segments have been chosen for component C1 in Mestia Municipality,: • One is within Chuberi community (Segment 9, KM1 to KM8 of the Mestia line); • One is in Esteri and Becho communities (Segment 10, KM37 to KM44 of the Mestia line); and • The third one is in Latali, Lenjeri and Mestia communities (segment 11, KM47 to KM55 of the Mestia line).

As far as forest uses and access rights are concerned, commercial exploitation of timber is still regulated by state law and a ticket system regulates the amount of firewood each household can collect. As explained above, customary land tenure seems to have been maintained to some extent in Zemo Svaneti as the agrarian land reform has been partially implemented. According to the municipal authorities of Mestia, the local population has owned property by inheritance and disposed land plots as distributed (or re-distributed) based on agreements between ancestors. During the land reform of the 90s, the recovery of the ancestral land has sometimes triggered land disputes. The most common one is related to limits of land plots. Families did know which land used to belong to who, but there were sometimes disputes related to demarcation. Only a few certificates/legal documents as proof of ownership were distributed during the agrarian land reform and it did concern a minority of the agricultural land. Sagvareulo Mitsa can sometimes cover a surface of about 10ha even though the size of a Jishi Mitsa remains close to 1ha. The main problem resulting from this absence of land registration mainly concerns forest and hayfields, areas which are today classified as public land but sometimes perceived by Svans as being part of their patrimonial land.

Box n°5 – interview with a widow in Chuberi community (24 June 2018) The interview was conducted with a retired widow living with her daughter and her grandson. She argued that a patrimonial land is often composed of hayfields used as grazing land, and some part of the forest that are adjacent to residential houses. For instance, she does consider that the forest close to her house is part of her family land. She also underlined that the forest helps to limit the avalanches that are common in the region. She stated that public and private projects within Svaneti cannot succeed because of land issues. Projects need plots of land which are considered state land by the state and private by the Svans. According to her, the ongoing Nenskra HPP project will be implemented on pasture lands which belong to a family but are today considered as state land10. She described those plots of land as being collectively owned. According to her, pasture areas ‘rights of use and ownership are defined by families. As being customary rights, they are not recognised by the Georgian legal system.

However, some interviews conducted within land segments 10 and 11 have challenged this perception on land rights and uses in Svaneti. This traditional way of managing land as an extended family would be less common as the individual land management of Jishi Mitsa is much more widespread than the collective management of Sagvareulo Mitsa. According to some interviewers, even though community land still exists, most of the people are aware that it belongs to the state. The community management of pasture land would consist of a territorial delimitation allowing each village to know which pasture land they can access. In a mountainous environment where flat grasslands are rare, this notion of community belonging makes sense for residents because it prevents disputes. As far as Sagvareulo Mitsa is concerned, some interviewers insisted on the decline of family land

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10 The Nenskra HPP has developed a Land Acquisition and Livelihood Restoration Plan which recognized the customary collective right of use of pasture lands and provide measure to address impacts where this project is implemented on pasture lands. See http://nenskra.ge/inc/uploads/2017/04/Vol-9_ES- Nenskra_LALRP_Nov-2017.pdf (accessed 17/04/2020)

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 management. The only practice that apparently survives in some places concerns the sale of land. It would be common practice to seek the agreement of all Jishi Mitsa ‘s heads of household before a sale. The specificity of Component C1 with regard to the land acquisition impacts is related to this persistence of the customary practices regarding land tenure, especially in highlands area such as summer pastures. In some areas, such as in the highlands between the Nenskra and Nakra valleys, collective customary right of use is still practiced, although it is not legally recognized. These specificities will be considered when assessing the land acquisition impacts on the affected people livelihoods and defining mitigation measures. The RAP for the Mestia line will include activities to: • Assess if any area is affected where collective customary right of use is still functioning; • Establish the dependency of the affected people to the activities conducted in these affected areas and establish the extent of the Project impacts on the affected people means of livelihood; and • If means of livelihoods are affected, define with the affected people individual and/or collective livelihood restoration activities.

Figure 5.8 – Forest area considered as part of family land in Chubei community (23/06/2018)

Land use along the Component C1 line This section describes the land use along the Mestia Line, which for the first kilometre from the Nenskra substation also comprises the Nenskra HPP line. The Mestia line starts in the local community of Chuberi. From KM0 to KM2, the line crosses forest. At KM2 up to KM5, it goes through wild meadows or unused land and then intersects a residential area at KM5 composed of three structures among which there are two inhabited houses (Figure 5.9). At this point the altitude reaches 1,000m above sea level.

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Figure 5.9 – Residential area in Chuberi community (24/06/2018)

From KM5 to KM7, the line runs through the same dominant landscapes and crosses a new residential area composed of one inhibited house around KM6.5. At KM7, the line crosses agricultural fields, wild meadows or unused land as well as forest up to KM10. The Mestia line intersects a residential area around KM10 and then runs through forest up to KM14. The route goes through wild meadows or unused land up to KM23 and enters the Nakra community at KM17. The altitude reaches 2,500m in the area as it passes over the Nakra Pass between Chuberi and Nakra. From KM23 up to KM28, the line is mainly running through forest but crosses one residential area around KM25 and dirt tracks mainly used during the summer season to access summer grazing areas in the highlands. From KM28 up to KM32 the line goes through forest, wild meadows or unused land and two agricultural areas at KM29 and around KM31. At KM23 the line passes briefly in Lakhamula and then enters the community of Pari up to KM37. It crosses two agricultural areas at KM33 and KM36, but the dominant landscapes remain forest and wild meadows or unused land. Around KM37 the line enters the community of Esteri. It runs through agricultural fields at KM38 and around KM41, then through forest between KM39 and KM41. The Mestia line enters the community of Becho around KM42. The dominant landscape is forest. There are three exceptions being two dirt tracks and one agricultural field around KM42. At KM45 the route enters the community of Latali. It goes through forest up to KM46 and then through wild meadows or unused land. It crosses two agricultural fields at KM47 and KM48 (Figure 5.10) as well as dirt tracks which are used by the locals to access forested areas in the highlands at KM49. The line enters the community of Lenjeri around KM50 and intersects the main road to Mestia and the Mukhra River. It runs mainly through forest. At KM54 the line enters Mestia and goes through forest up to the end of the line. Around KM58 it intersects tracks in a forested area that is not inhabited.

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Figure 5.10 – Agricultural fields in Latali community (25/06/2018)

5.1.6 Land tenure and land use in Component C2 Land tenure and land rights in Racha -Lechkhumi lower Svaneti In Racha-Lechkhumi, the land tenure and land management are similar to that described in section 5.1.1. The land tenure is governed by state law. There is no other organised land tenure system within the communities. Land management is still family-based, and land disputes are settled internally before going through formal state law in case of failure. According to the interviews, if more and more people are getting a land title, most of them have only a certificate as prove of ownership. In most cases, it is land transactions that encourage land registration. Racha-Lechkhumi and Kvemo Svaneti region comprises agricultural lands, grazing lands and forest areas. Nearly 61% (292 900 hectares with a total supply of 60,6 million m3 timber) of the region territory is covered by so called virgin forests with preserved biodiversity. Land use and land rights in Kvemo Svaneti seem to be different from Racha-Lechkhumi area because of stronger traditions. Like in Zvemo Svaneti, land rights are sometimes linked to the ancestral family lands’ practise rather than to state law. On the contrary, interviews conducted in Racha-Lechkhumi have confirmed that formal land laws are well implemented. Most of the people seem to have certificates and the land titling process is becoming more and more popular thanks to the State register program. Land tenure and land rights along the Component C2 lines Eight land segments have been surveyed: • Four segments are located in Racha-Lechkhumi lower Svaneti: o The first one is in Oni Municipality within Sori and Parakheti communities (segment 12, KM43 to KM47 of the Oni line); o the second one is in Amrbolauri Municipality within Tsesi community (segment 13, KM35 to KM39 of the Oni line);

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o the third one is in Tsageri Municipality within Alpana community (segment 20, KM2-3 of Derchi line replacement and KM2-3 of Lajanuri line). o the fourth one is in Lenkheti Municipality within Rtskhmeluri and Khopuri communities (segment 15, KM23 to KM28 of Kheledula line); • Four segments are located in Tskhaltubo Municipality: o within Gumbra community (segment 16, KM42 to KM47 of the Lechkhumi line and KM41 to KM45 of the Derchi replacement line); o Opurchketi community (segment 17, KM30 to KM34 of the Lechkhumi line); o Rioni and Jvarisa communities (segment 18, KM21 to KM31 of the Derchi replacement line); and o Dghnorisa community (segment 19, KM13 to KM16 of the Derchi replacement line). According to the interviews conducted, there is no specificities regarding local land rights and land uses along the Component C2 lines, except in Kvemo Svaneti along the Kheledula HPP line. In Kvemo-Svaneti (segment 15, Kheledula HPP line), according to the interviews conducted, a system of customary right of use similar to the one described for Component C1 in Zemo Svaneti was practiced (see section 5.1.5). However, the interviews conducted showed that this system is almost inexistent nowadays in the areas affected by the Kheledula HPP line in Kvemo Svaneti than in Zemo Svaneti. The Land reform implementation was more efficient in Kvemo Svaneti than in Zemo Svaneti. Some people obtained their ancestral land during the land reform, but they did not have formal document as proof of ownership. According to interviews, land demarcation disputes used to happen during the 1990’s but they were all resolved. Today, everyone knows the boundaries of his/her family land or of community lands that belong to extended family. The interviews did not highlight any active customary right of use along the Kheledula HPP line in Kvemo Svaneti. As far as forest uses and access rights are concerned, the interviews conducted did not differ from those conducted in other part of the country. Therefore, there is no specificity with regard to the land acquisition impacts along the Component C2 line. Land use along the Component C2 lines This section describes the land use along the Component C2 lines. The Kheledula HPP line is connected to the New Lajanuri Substation. It starts in Racha-Lechkhumi and Kvemo Svaneti region, in the Municipality of Tsageri, within the Alpana community up to KM1, then it briefly passes through the Ghvirishi community for one kilometre to then enters the Usakhelo community up to KM5. Sparse forest is the dominant landscape. The line goes North through the Lailashi community for 2KM and crosses the Lajanura River and the Alpana Tsageri road around KM6. At KM7, it enters the Orbeli community up to KM15. The dominant landscape is forest and wild meadows or unused land. However, the line runs through agricultural land around KM9KM9 and crosses the Lajanura River between KM11 and KM12. At KM15, the route enters the Kveda Tsageri community up to KM20 and mainly crosses mainly dense forest. At KM20, the Kheledula HPP line enters the Lentekhi Municipality in the Rtskhmeluri community. The first kilometre runs through forest then grazing land. It briefly crosses briefly agricultural fields around KM22 and then intersects with a residential area at KM23 mainly composed of two houses and one shelter (Figure 5.11).

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Figure 5.11 – Residential area in Rtskhmeluri community (20/06/2018)

The line goes through dense forest up to its end. It enters the Khopuri community at KM25 and the Lentekhi community at KM29. From KM27 up to the end of the route, the line crosses several times the Tskhenistskali River, especially at KM28 and KM31.

The Oni HPP line is also connected to the New Lajanuri substation. The line runs parallel to the Kheledula HPP line up to KM5 then it heads East and enters the Lailashi community up to KM10. It crosses the Alpana Tsageri road around KM5 then runs through wild meadows or unused land up to KM9. From KM9, up to KM18, the Oni HPP line goes through sparse forest up to KM12 then dense forest up to KM18. It enters the Municipality of Ambrolauri at KM10 within the Chqvishi community, then the Chrebalo community around KM12 and the Khvanchkara community at KM15. From KM10 up to KM40 the line crosses the Khvanchkara micro-zone located on the southern slope of the Lechkhumi mountain range.

Around KM19, the line passes briefly through agricultural fields then goes into forest and wild meadows or unused land up to KM25. However, it intersects with a residential area at KM23 composed of one structure. At KM25 the route enters the Sadmeli community. It first passes through wild meadows or unused land, and dense forest, and then an agricultural area around KM28. At KM28, it crosses the Ritseula River and some agricultural areas mainly composed of vineyards (Figure 5.12).

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Figure 5.12 – Ritseula River in Sadmeli community within the Khvanchkara micro-zone (18/06/2018)

The line goes through forest up to KM36. It enters briefly Khodikari community between KM32 and KM34 then runs through Tsesi community between KM34 and KM40. At KM36, the route goes through some agricultural fields and then it continues its way through forest up to KM38 where it intersects the Tsesi –Uravi road as well as the Lukhunistskali River. At KM40, the line crosses the Kutaisi Alpana Mamisoni road as well as the Rioni River and enters Oni Municipality within Bari community. From KM40 up to the end of the line, the OHL runs approximately parallel to the border that separates Bari, Parakheti and Sori communities. It crosses four times the Rioni River around KM28.

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The dominant landscape is forest and wild meadows or unused land, but the route crosses twice agricultural land at KM45 and around KM46. At the end of the line, the OHL crosses twice the Kutaisi Alpana Mamisoni road at KM48 and KM49.

The new Lajanuri HPP line is also connected to the New Lajanuri substation and only crosses Tsageri Municipality within Alpana community. It runs south from the proposed substation to cross the Rioni River around KM0, before turning eastwards and then north again to re-cross the River at the end of the line and reach the powerhouse close to Alpana. It intersects twice with the Kutaisi Alpana Mamisoni road around KM0 and at the end of the line. The dominant landscape is forest and wild meadows or unused land.

The Kheledula line is also connected to the New Lajanuri substation and starts in Alpana community by crossing the Rioni River and the Kutaisi Alpana Mamisoni road around KM0. It runs south of the proposed substation and mainly crosses dense forest. It enters Imereti region, in Tskaltubo Municipality at KM8 within Dghnorisa community up to KM16 where it briefly passes through Mekvena community before entering Tkibuli Municipality in Jvarisa community up to KM25. Forest remains the dominant landscape but the line crosses two agricultural areas at KM10 and KM15, as well as grazing land around KM11 (Figure 5.13).

Figure 5.13 – Grazing land in Dghnorisa community (17/06/2018)

Within Jvarisa community, the line is only running through dense forest. From KM25 up to KM30, the line goes through Rioni community in Tskaltubo Municipality. It crosses dense forest and intersects the Rioni River at KM30 as well as the main asphalt road close to Zhoneti and some agricultural fields. At KM30 the line enters Opurchkheti community up to KM34 and mainly runs through forest and grazing land. Between KM34 and kKM37 it briefly passes through Tskaltubo community, intersects a secondary road that goes to Banoja, then enters Gumbra community at KM37 up to the end of the line at KM47 where the Kheledula line connects with Tskaltubo substation. The route runs through dense forest up to KM41, then goes into agricultural fields and intersects one more time a secondary road that goes to Banoja around KM42. From KM43 up to KM47, the line mainly crosses agricultural land, two exceptions being wild meadows or unused land between KM43 and KM44, and the main road going to Tskaltubo between KM45 and KM46.

The New Derchi line is also connected to the New Lajanuri substation. For the first kilometer of the route, the transmission line will run south-east and parallel to the proposed Lajanuri HPP line, crossing the main Kutaisi to Alpana road and the Rioni River around KM0 within Alpana community. The route then turns to the southeast and rises up onto the high terrain to the north of Tsageri Municipality. It approximatively follows the proposed Lechkhumi line. It runs through Alpana community up to KM9. The dominant landscape is forest, but the line

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 goes through wild meadows or unused land at KM2 and some agricultural fields around KM3. At KM9, the loop in/loop out link to the UNPH, runs to the northwest within Tvishi community. It mainly passes through forest and wild meadows or unused land but crosses agricultural fields at KM3 and at the end of the line near the Rioni River.

The New Derchi line continues south and approximately parallel to the Kheledula line. It enters Imereti region, in Tskaltubo Municipality within Dghnorisa community at KM9 up to KM17. Then it runs through Tkibuli Municipality and intersects a secondary road going South to Motsameta. The line mainly crosses forest and wild meadows or unused land. It runs through agricultural fields around KM11 and KM15 and passes very close to residential areas near KM15. From KM17 up to KM27, the line crosses Jvarisa community in Tkibuli Municipality. It intersects several times the secondary road going South to Motsameta and mostly runs through forest. Around KM26, the link to LNPH runs west through deep forest, roughly parallel to the Lechkhumi line for a distance of approximately 5KM. Then the line enters Tskaltubo Muncipality in Rioni community around KM27 up to KM32 where it intersects the Rioni River. The line crosses mainly wild meadows or unused land but goes through agricultural fields around KM29, KM30 and KM31. At KM32, it enters Opurchketi community up to KM36. It intersects the main road going to Tskaltubo at KM34 and crosses forest dense and sparse forest. At KM36 up to the end of the line at KM45 where the New Derchi line connects with Tskaltubo substation, the New Derchi line runs through Gumbra community, roughly parallel to the Lechkhumi line. It passes through deep forest up to KM40 then intersects the secondary road that goes to Banoja. From KM40 up to KM45, the line mainly crosses agricultural land, two exceptions being wild meadows or unused land between KM41 and KM42 (Figure 5.14), and the main road going to Tskaltubo between KM43 and KM44.

Figure 5.14 – Grazing land in Gumbra community (16/06/2018)

5.1.7 Land tenure and land use in Component D It must be noted that, at the time of writing, the alignment of Component D lines was being changed to avoid or minimise potential impacts. These changes are being implemented through the Management of Change procedure set out in the ESMP (Volume 8). Land tenure and land rights in Shida Kakheti Land tenure is governed by state law. There is no other organised land tenure system within the communities. The qualitative interviews did not reveal a different land management system to the previous regions. Land

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 management is still family-based, and land disputes are settled internally before going through formal state law in case of failure. One particularity has been identified: there is a higher level of leasing of state land. Within Imereti, Samtskhe- Javakheti and Guria regions, leasing was not common. In Shida Kakheti sub-zone, state land is leased for two main reasons. First, wine-growing activity is very developed and requires land areas greater than 1ha, which is the average land size people own. Second, the state lands used as seasonal grazing land in the highlands are also leased. According to interviews conducted at the municipal level, the highlands of Mtatusheti and Bakuriani areas are leased state land used by herdsmen from July to September. Most of the time, the leaser sub-leases a portion of his land to other people who will also use it as seasonal pasture land for their cattle. In Shida Kakheti sub-zone, agricultural and residential land is owned by (or can be claimed to be owned by) individual families. Land use and land rights are similar to those observed in Imereti, Samtskhe-Javakheti and Guria regions. There are agricultural lands, grazing lands and forest areas where land use and land rights do not differ. Almost all (97.1%) land in Kakheti region is classified as agricultural and only 2.9% as non-agricultural land. Out of the total area of agricultural land, 51.9% is arable land and 38.1% pastureland. According to the interviews conducted, the agrarian land reform was well implemented and most of the locals have a land certificate. Titles are becoming more and more common due to the government programme. However, land transactions drive land registration and locals do not always feel the need to obtain a title if they do not need to sell, buy or inherit a plot of land. Land tenure and land rights along the Component D lines Due to the diversity of the region, five land segments have been chosen to study in detail with respect to land tenure and land rights systems for Component D: • Two in Gurjaani Municipality: o One in Mukuzani community (segment 21, Mukuzani loop); o One in Vazisubani, Shashiani, Kalauri and Vachnadziani communities (segment 22, KM12 to KM17 of the Gurjaani line) • Two in Telavi Municipality: o One in Kvemo Khodasheni, Tsinandali and Kisiskhevi communities (segment 23, KM24 to KM29 of the Gurjaani line + Tsinandali loop); o One in Telavi city and Shalauri community (segment 25, KM31 to KM33 of Gurjaani line and KM0 to KM3 of Akhmeta line); and • The fifth in Akhmeta Municipality, in Kistauri and Akhmeta communities (segment 25, KM25 to KM30 of the Akhmeta line). The national free titling programme supported by the government in all Municipalities seems to have encouraged people to register their land. According to the interviews conducted, more and more people are interested in having a title deed and only a few people do not have an up-to-date certificate for their land. There is no other authority than the state as far as land management is concerned. No customary land rights have been identified either on private farming land or State land and forest. Land is held as a family asset and the average size of land per household is about 1ha. Men and women have equal rights and access to the family land even though most titles deed or certificates are registered under the husband’s name. However, some agricultural activities that require a certain physical strength such as hoeing the land are generally carried out by men. The specificity of Component D with regard to the land acquisition impacts is that the Project will not create new transmission lines, although new land plots will be required for the construction of new towers. Existing

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 transmission lines are to be dismantled and replaced. As shown on Map 2.6, on most section of the lines, the existing lines routes will be used. Few sections of the lines have been however re-routed to avoid settlements and minimise impacts. Where the Component D lines will follow the existing transmission lines’ routes, the restriction of use in the Right of Ways are already applied, hence no restriction of use or land acquisition should occur on these sections, except where new towers are built. Where the Component D lines will follow new routes, new land acquisition and restriction of use will occur. One measure specific to the Component D to help minimise the impacts will be the re-use as far as practicable the existing towers locations already owned by GSE to install the newly built towers.

Figure 5.15 – Grape plantation on private land in Kistauri community, Akhmeta Municipality (14/06/2018)

Land use along the Component D lines This section describes the land use along the Component D lines. The Gurjaani line is located in Kakheti region and starts at the Gurjaani substation. From KM0 up to KM4, it runs through Gurjaani Municipality, within Gurjaani district highland. For the first kilometer, it runs through forest and crosses the Akhtaliskhevi River. It goes through wild meadows or unused land around KM1 and passes close to a cemetery. Up to KM2, it runs through dense forest then it enters Chumlaqui community. The Gurjaani line goes through agricultural land around KM3 and crosses a cemetery. Around KM4, it goes through a second cemetery and runs very close to a church. Then it passes through agricultural fields and intersects with the Papriskhevi River at KM5. Then it enters Akhasheni community from KM5 up to KM8. Between KM6 and KM7, it crosses the Kakheti Wine and Spa complex11, but also the vineyards owned by this complex. Then, it mostly runs through agricultural fields. At KM8, the Gurjaani line enters Mukuzani community up to KM11. It mainly goes through agricultural land (Figure 5.15) but intersects around KM9 a dirt track going from Mukuzani to Cheremi fortress and cathedral church and

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11 Following comments received during the public disclosure, a new design of the Component D lines alignment is being studied in June 2020 to avoid this area.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 the Chermiskhevi River. Between KM10 and KM11, the line runs through a vineyard zone. The Mukunazi wine is one of the most famous wine in Georgia.

Figure 5.16 – Crop farming in Mukhuzani community (11/09/2018)

Around KM10 starts the Mukuzani loop that connects to Mukuzani Substation. It goes east and mainly crosses agricultural fields. It crosses the main road from Gurjaani to Akhmeta and then Telavi at KM1 and passes close to a wine factory. At the end of the Mukuzani loop at about KM2, the line runs close to residential area and mainly passes through wild meadows or unused land. From KM11 up to KM14, the Gurjaani line crosses Vazisubani community. It goes through a residential area around KM11. Between KM 11 and KM12, the line runs through the land belonging to large hotel complex (Vazisubani Hotel) owning vineyards12. Around KM13, the line is crossing a forest reserve where trees have been planted as a war memorial in memory of the Second World War’s deceased. Around KM14, it goes through Shashiani community up to KM15 and mainly crosses agricultural fields. It intersects the Mghvriekhevi River at KM14. From KM15 up to KM16, it briefly crosses Kalauri community and goes mainly through agricultural fields. Then the line enters Vachnadziani community up to KM19. It also crosses agricultural fields as well as wild meadows or unused land but passes close to a cemetery at KM17. It goes through a River at KM18. At KM19, it enters for one kilometer inside Gurjaani district highland then it goes through Telavi Municipality in Akura community. From KM20 up to KM22, the Gurjaani line mainly goes through agricultural fields but crosses a River at KM21 and KM22, and a cemetery near KM22. The Gurjaani line enters Kvemo Khodasheni at KM22 up to KM27. The dominant landscape is also agricultural fields. However, it goes through a cemetery and crosses a River around KM25. Around KM26 starts the Tsinandali loop which straddles two communities being Kvemo Khodasheni and Tsinandali. The loop crosses twice a River between KM0 and KM1 and goes through wild meadows or unused land close to residential area at KM1. After KM1, the OHL loop to Tsinandali crosses the main road from Gurjaani to Akhmeta and then Telavi. Between KM26 and KM27, the line briefly passes through the Radisson Blu Hotel’s vineyards. At KM27, the Gurjaani line crosses the Telavi district highland and then goes through Kissekhevi community where it only runs through agricultural land up to KM31. From KM31 up to the end of the line at KM38 where it connects with the Telavi substation, the line passes through Shalauri community where agricultural fields is dominant. However, it crosses the Khrukiaskhevi River between KM32 and KM33 and intersects a secondary road passing through Shalauri in Telavi.

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12 Following comments received during the public disclosure, a new design of the Component D lines alignment is being studied in June 2020 to avoid this area.

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The Akhmeta line starts in Shalauri community. It first runs parallel to the Gurjaani line for about one kilometer. It also crosses the Khrukiaskhevi River near KM1. It crosses two residential areas, one at KM1 and the second near KM2, as well as agricultural fields around KM0 and grazing land around KM2. Between KM1 and KM2, the line is passing close to a cemetery.

Figure 5.17 – Grazing land in Shalauri community (13/06/2018)

At KM3 up to KM6 the line straddles two communities being Telavi district Highland and Telavi community in Telavi Municipality. It mainly goes through deep forest but intersects a secondary road passing through Shalauri in Telavi around KM4. It passes close to a residential area where the Telavi university, a maternity and a hospital is location. The dominant landscape is forest. Between KM7 and KM10, the line goes through Vardisubani community where it mainly goes through agricultural land. However, around KM8, it crosses three times the main road from Gurjaani to Akhmeta and then Telavi as well as a cemetery. At KM8, the line is passing close to a wine factory and a restaurant. Between KM8 and KM9, the Akhmeta line is crossing a residential area. Between KM9 and KM10, the line enters Ruispiri community, crosses the Turdo River and goes through another cemetery. The line enters Iqalto communities around KM11 up to KM14. The route mainly passes through agricultural land and wild meadows or unused land. At KM13, it intersects with the main road from Gurjaani to Akhmeta and then Telavi. At KM14 the line enters Akhmeta Municipality in Zemo Khodasheni community up to KM18. It mainly crosses agricultural land and wild meadows or unused land and intersects with the Khodasheniskhevi River at KM17. At KM17, it briefly passes through Ozhio community. From KM18 up to KM27, the line runs through Kistauri community, roughly crosses Zemo Khodasheni community at KM22 and Zemo Alvani community at KM24. The line mainly goes through agricultural land, intersects the main road from Gurjaani to Akhmeta and then Telavi around KM20 and a secondary road going from Akhmeta to Khorkheli at KM22. At KM27 up to the end of the line at KM34, the route enters Akhmeta community and runs mainly through agricultural land. Close to KM34, the Akhmeta line is lastly crossing a main road going from Akhmeta to Kvareli.

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5.2 Overview of potential impacts

5.2.1 Avoidance and minimisation of physical and economical displacements Avoidance of impacts has been first achieved through the design iterations of the line routing (See Volume 2). As indicated in Chapter 2 of Volume 2 Project Definition, the Project Component alignments have been selected to avoid as much as possible urban centres and densely populated area. Most parts of the lines are in sparsely populated areas. In order to avoid disruption to existing economic activities in the Communities and Municipalities crossed by the Project, sections of land permanently and temporarily required for the Project construction will, whenever possible, be unused lands. Agricultural or grazing land used by industries or rural population whose means of production or means of support depend mainly on land will be avoided as much as feasible. Non-used lands will be preferred for the sitting of the towers and for lay-down areas or temporary land needs. For most of the length of each component, in situ tracks already exist. The locations of these tracks will be mapped, and then where possible reused/upgraded to provide access to the powerline routes. The reuse of tracks will significantly reduce the social impacts which would by caused by opening new tracks. If it is not possible to select unused land for the towers or any other land needs, the selection of the land to be used by the Project will be done in close coordination with the affected communities to avoid as much as possible impacts on productive lands. The Construction contractors will submit their choices to GSE, and GSE will then validate the selection and construction methods, including any temporary land needs, prior to any construction activity. All land acquisition, either permanent or temporary will be done in compliance with the LARCF and documented for each Project Component in a Resettlement Action Plan (RAP). To further avoid losses and impacts, the clearance of the RoW and construction sites will be announced to the local communities in advance, so that the affected persons have enough time to harvest their crops or salvage their structures located in the ROW. For Component D, following comments received during the public disclosure, a new design of the Component D lines alignment is being studied in June 2020 to avoid and minimise impacts. These changes are being implemented through the Management of Change procedure set out in the ESMP (Volume 8).

5.2.2 Estimated potential impacts All impacts that cannot be avoided will be compensated and/or mitigated according to the principles and procedures of the LARCF. The order of magnitude of potential economic and physical displacements is indicated in the Table 5.3. The figures provided here are intended to give a high-level estimate of the order of magnitude of the potential impacts. They should not be considered as describing the actual extent of the impacts. The final design and the definitive land needs for the Project Components are not yet available. Therefore, the exact number of PAP, either physically or economically displaced, is unknown and only an estimated number of land owners and users is provided in Table 5.2 and Table 5.3 below. The exact numbers of people physically and economically displaced will be determined through a census and a detailed socio-economic survey to be conducted as part of the Resettlement Action Plans (RAPs) which remain to be prepared for each component. The survey will also identify the number and the categories of Vulnerable Individuals and/or groups, disaggregated by gender. Vulnerable Individuals and/or groups refer to people who may be more adversely affected by project impacts than others13, and who may be limited in their ability to claim or take advantage of project benefits. The socio-economic survey will therefore collect data which will allow for an intra-household assessment of vulnerability to be completed.

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13 According to PR5 of EBRD guidelines, Vulnerable individuals and/or groups may include, but is not limited to, people living below the poverty line, the landless, the elderly, women and children headed households, refugees, internally displaced people, ethnic minorities, natural resource dependent communities or other displaced persons who may not be protected by national and/or international law.

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Potential physical displacement impacts The potential physical displacement impacts have been estimated based on interpretation of aerial imagery and rapid field observation along the proposed Rights of Way. Each house or potential residential structure located in the Rights of Way has been identified, regardless of its status (either occupied or derelict). It must be noted that, at the time of writing, the alignment of Component D lines was being changed to avoid or minimise potential impacts. These changes are being implemented through the Management of Change procedure set out in the ESMP (Volume 8).

Table 5.2 – Overview of potential physical displacement by Project Components

Type of impact Component Total

A B C1 C2 D

Residential structures (potential physical displacement)

Estimated number of structures located in the Right of Way 4 0 4 3 5 16 (considered as approximately equivalent to number of householdsa physically displaced)

Estimated number of structures located in the Right of Way 4 0 1 1 1 7 (considered as abandoned or uninhabited b)

Corresponding estimated number of persons physically 14 0 14 10 17 55 displaced c a It is assumed that those structures located within the RoW are potentially a residential house housing one household. b The field missions identified some abandoned or uninhabited structures (such as greenhouse). c According to the National Statistics Office of Georgia (GEOSTAT), in 2016 the average number of members per household is 3,3 persons. This average number has been retained to estimate the number of people potentially living or using the residential structures located in the RoW. One exception being the unique structure identified for component B. The average number of members per household has been rounded up to 4.

Potential economic displacement impacts The potential economic displacement impacts have been estimated using publicly available information from the National Cadastre. All registered land plots partially or completely located in the Rights of Way have been counted. The Cadastral database is being updated continuously; the information used is dated from end of July 2018. The land plots used informally (registered as State land but used informally by private users) have been identified and counted based on interpretation of aerial imagery. It must be noted that, at the time of writing, the alignment of Component D lines was being changed to avoid or minimise potential impacts. These changes are being implemented through the Management of Change procedure set out in the ESMP (Volume 8).

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Table 5.3 – Overview of potential impacts by Project Components

Type of land plots14 Component Total

A B C1 C2 D

a. Privately registered land plots (individuals) 405 124 154 563 712 1834

b. Privately registered land plots (companies) 6 0 5 23 50 84

c. Plots registered as Municipality/Community owned 23 0 0 0 28 51

d. Plots registered as State owned 24 9 35 161 106 326

A. Total registered land plots (=a+b+c+d) 458 133 194 747 896 2295

B. Estimate of non-registered plots used by private users 100 550 280 540 660 2030 (agriculture) a

C. Forest Fund areasb 29 0 15 90 51 185

Total Land plots affected (=A+B+C) 1037 233 489 1377 1607 4510

Plots already property of GSE c 3 6 1 71 5 80 a These figures are based on the interpretation of aerial imagery: evidences of plots with farming activities are conducted have been counted. b Forest-lands belong to an agency called Forest Fund, under the management of National Forestry Agency c These land plots are located in the RoW of existing GSE lines.

5.2.3 Estimated potential impact on women land rights In Georgia, women are usually farming and managing the land of their husband, as it is common practices for married couple to move to the land inherited by men. Because most of the land plots in rural/remoted areas have not been (re)registered since the 90s, many land certificates based on inheritance documentation have been issued in the name of the husband. As far as inheritance is concerned, even though the Georgian State law protects equally mean and women, many land transactions as inheritance take place outside the legal framework and favour men at the expense of women. As revealed in section 5.1, more and more people are nowadays registering their land15. However, interviews have suggested that it doesn't represent the majority as the process is time-consuming. Therefore, men are sometimes transmitting land to their son without legally updating the title deed. As a result, the patriarchal pattern is sometimes reproduced, and some women still live and farm on plots on land they do not own. Even though most of the women interviewees highlighted that they could be recognised as joint landowner as their husband will not object to it, there is still a risk that the land registration process undertaken as part of the Resettlement Action Plan (RAP) could exclude women from accessing land ownership. Secondly, interviewees have highlighted that land is often managed by men. This “common practice” has therefore categorised everything that concerns land as being a man’s business. The potential impacts on women during the land registration process are:

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14 Cadastral information (registered land plots and Forest Fund areas) is publicly available and is dated from 31 July 2018. The number of non-registered land plots has been estimated using the most recent available aerial photos or satellite images. Only cultivated land plots are visible. The estimates are high-level, and non-cultivated land plots are not accounted. 15 The national free titling programme supported by the government in all Municipalities seems to have encouraged people to register their land. According to the interviews conducted, more and more people are interested in having a title deed.

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• Exclusion of women from accessing land ownership by favouring men in registering land in their name. The risk lies in the update of the land certificate which could be legally (re)issued under the name of the husband, instead of reflecting the current family situation; • Exclusion of women regarding the land registration process as land matters are considered a man’s business. If women are not equally informed, there is also a risk that the compensation are not fairly distributed among females’ family members. Mitigation measures to avoid the impacts on women during the land registration process are listed in Section 9.1.

Eligibility and entitlements

This section defines the categories of affected people eligible to compensation and other resettlement assistance and their entitlements.

6.1 Eligibility

6.1.1 Categories of persons eligible The Lenders’ policies define three categories of PAP eligible to compensation and/or livelihood restoration measures (EBRD PR5 §18): • Persons with formal legal rights to land that will be lost in its entirety or in part; • Persons who will lose the land they occupy or use in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognised or recognisable under national laws; • Persons who will lose the land they occupy in its entirety or in part who have neither formal legal rights nor recognised or recognisable claims to such land. These three categories of PAP are considered as displaced people, either economically or physically affected. Table 6.1 relates these three categories to the legal land status in Georgia.

Table 6.1 – Categories of people losing land and legal land status in Georgia

Categories of people losing land as per EBRD PR5 Legal land status in Georgia

a. People having a legal land title Registered land

b. People without legal land title, but who could register their Land not registered, but which can be registered in the name of land under the existing legal framework the private landowner as per the existing legal framework

c. People without any formal legal rights or recognised or Non-legalisable land, generally state land used informally by recognisable claims local community members. This category includes all private users of lands that cannot be privately registered under the current legal framework

Eligibility for compensation for loss of land For the Project, compensation for loss of affected land will be as follows: • The persons owning a registered land plot will be compensated;

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• The owners of an affected land plot without legal title, but who could register (either because they own documents showing their legal rights to the land, or because they are recognisable owners in Georgian law) will be assisted to register their land plot free of charge, and will be then compensated for it; • Those using a land plot without any formal legal right to it will not be compensated for the land itself but will be eligible for compensation on the assets sitting on the land (e.g. structures, productive trees, crops). Eligibility for losses other than land The following categories of PAP will be eligible for compensation regarding loss of asset provided they were present in a Project area prior to the cut-off date: • People losing their house (residential structure) and physically displaced; • People losing structures (unoccupied houses, fences, barns, cattle sheds, wells or others); • People losing crops, trees or other perennial cultures; • Tenants and sharecroppers whether registered or not; • People losing business, income, and salaries; • Any additional category of people affected by land take; whose livelihoods would be affected.

6.1.2 Cut-off date for eligibility A cut-off date will be established for each RAP. This date will determine the eligibility of assets to be compensated for. This date will correspond to the date when the asset inventory is undertaken, which means that any new assets installed in the Project area after that date will not be compensated. The Project Components are generally linear, and relatively long. Some of their sections are located in remote areas. Therefore, it might be difficult to conduct the census and asset inventory at once in a short time for all the sections of one transmission line. Similarly, the construction might be done section by section, to allow some final adjustments in tower siting or of the transmission line’s alignment to avoid or minimise impacts. Depending on the characteristics of each Component, on the foreseen impacts and on the construction methods and schedule, each RAP may establish a separate cut-off date for each section, or for each Municipality or Community (village) crossed. The cut-off date will be announced in each Municipality and each Community (village) at least two weeks prior to the start of the census of PAP and asset inventory. This announcement will be undertaken by GSE with the collaboration of the Municipal authorities and their representatives in the Community levels. Unidentified absentee owners will still be eligible for compensation after the cut-off date. Good faith efforts to find them and inform them about the process will be documented during the RAP preparation. These efforts may include efforts to reach them through their neighbours or publication of an advertisement in local newspapers informing about the process. If absentee owners cannot be found, the compensation amount for their affected assets will be allocated to an escrow account and be readily available when the absentee owner reappears.

6.2 Entitlements

6.2.1 Entitlements matrix Table 6.2 presents the entitlements matrix. All affected persons will be entitled to livelihood restoration measures, in compliance with EBRD PR5.

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Table 6.2 – Entitlement matrix

Type of Loss Application Definition of PAPs Compensation Entitlements

Land

Permanent loss of PAPs Registered owner Registered owner will receive cash compensation at full replacement cost at current market value agricultural land (e.g. permanently without deduction of depreciation value and transaction fees. tower footprint, losing arable If residual plot becomes unusable (“orphan land”, see section 6.2.3) the Project Company will enhancement of land regardless acquire it in full if the PAP so desires. access roads) of impact severity Legalisable owner These PAPs will be helped to legalize their land ownership and will be provided with cash compensation at full replacement cost of land. If residual plot becomes unusable (“orphan land”, see section 6.2.3) the Project Company will acquire it in full if the PAP so desires.

Renters / Leaseholder Non-eligible for land compensation; only for other losses of assets indicated in the Entitlement Matrix.

Non-legalisable owner Non-legalizable PAPs losing agricultural land plot will be compensated with one-time allowances in cash up to a minimum monthly subsistence allowance for a 5 members family for 12 month period where land is actively cultivated (the allowance shall be capped at a limit equivalent to the full land compensation), or 3 month period where land is barren/unused/not cultivated.

Agricultural tenants and Non-eligible for land compensation. Full Compensation of income loss (e.g. crops, trees or assets sharecroppers on land) x the remaining years of lease (up to 4 years), unless otherwise provided by the lease agreement.

Permanent loss of PAPs Registered owner Registered owner will receive cash compensation at full replacement cost at market value without non-agricultural land permanently deduction of depreciation value and transaction fees. (residential- losing non- If residual plots become unusable (“orphan land”, see section 6.2.3) the Project Company will commercial) arable land acquire it in full if the PAP so desires. regardless of impact severity Legalisable owner These PAPs will receive cash compensation as legalized owners after their title will be legalized and registered at the public register (NAPR) If residual plots become unusable (“orphan land”, see section 6.2.3) the Project Company will acquire it in full if the PAP so desires.

Renters/ Leaseholder Non-eligible for land compensation; only for other losses indicated in the Entitlement Matrix.

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Type of Loss Application Definition of PAPs Compensation Entitlements

Non-legalizable owner Non‐legalizable PAPs losing residential land, plot will be compensated with one-time allowances in cash up to a minimum monthly subsistence allowance for a 5 members family for 3 months period (the allowance shall be capped at a limit equivalent to the full land compensation) where land is barren/unused/not cultivated.

Agricultural tenants and Non-eligible for land compensation; only for other losses indicated in the Entitlement Matrix sharecroppers

Permanent PAPs not losing Registered owner These PAPs will receive a lump sum easement fee. Such a fee is established by an independent restrictions on use their land falling valuation expert (see section 7.0). land (e.g. easement within RoW but for transmission line land use Legalizable owner These PAPs will be legalized and the owner will receive easement fee as a lump sum determined by Right of Way) restrictions an independent valuation expert (see section 7.0). imposed Renter/ Leaseholder Non-eligible for easement fee for land‐use restriction; only for other losses of assets indicated in (prohibition of the Entitlement Matrix. constructing structures and Non-legalizable user Non-eligible for easement fee for land‐use restriction; only for other losses of assets indicated in planting/growing the Entitlement Matrix. trees) Agricultural tenants and Non-eligible for land compensation; only for other losses indicated in the Entitlement Matrix sharecroppers

Temporary use of Lease of land for All PAPs Contractor will lease land required temporarily during construction on voluntary basis (i.e.., willing land during project purposes lessor-willing lessee basis). Landowner will have right to refuse the offer. The maximum period for construction (e.g. camps, temporary use is defined as four years. Lease rates to be paid should not be less than lease at storage) current market rates, plus compensation for any loss of crops or trees16 at gross value of 1-year harvest of crops on the affected lands. Affected trees will be cash compensated. It is also required that lands (or other assets) be fully cleared and restored as it was before Project started.

Buildings and Structures

Loss of permanent PAPS losing Registered owner In addition of compensation for loss of land, PAPs will choose between two options: house residential - Cash compensation: He/She will receive compensation and replacement value for the building within house and will be provided with resettlement assistance to ensure that the PAPs are the Right of Way relocated to a new house with access to services and security of tenure, or;

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16 Construction company will adopt the same approach of compensating the felled trees and crops as described in the compensation entitlement matrix during construction activities outside of the RoW.

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Type of Loss Application Definition of PAPs Compensation Entitlements In kind compensation: If feasible, GSE will propose to offer a replacement house on a plot of land providing necessary infrastructures and utilities, with security of tenure, if it is possible in the same community/settlement. Resettlement assistance will be provided. The type of house offered will be at least of similar type, size and standing. Once GSE will have offered this option, the affected person should make his/her decision within 3 months.

Legalizable owner Assistance for registration + in addition of compensation for loss of land, PAPs will choose between two options: - Cash compensation: He/She will receive compensation and replacement value for the house and will be provided with resettlement assistance to ensure that the PAPs are relocated to a new house with access to services and security of tenure, or; In kind compensation: If feasible, GSE will propose to offer a replacement house on a plot of land providing necessary infrastructures and utilities, with security of tenure, if it is possible in the same community/settlement. Resettlement assistance will be provided. The type of house offered will be at least of similar type, size and standing. Once GSE will have offered this option, the affected person should make his/her decision within 3 months.

Renter/ Leaseholder Non-eligible for compensation for the house. The PAPs will be informed well in advance of requirement to move and will receive the equivalent of six months’ rent and support to transport belongings to new location. Assistance on identifying replacement property to rent to be offered to vulnerable people.

Non-legalizable user PAPs will choose between two options: - Cash compensation: He/She will receive compensation and replacement value for the house and will be provided with resettlement assistance to ensure that the PAPs are relocated to a new house with access to services and security of tenure, or; In kind compensation: If feasible, GSE will propose to offer a replacement house on a plot of land providing necessary infrastructures and utilities, with security of tenure, if it is possible in the same community/settlement. Resettlement assistance will be provided. The type of house offered will be at least of similar type, size and standing. Once GSE will have offered this option, the affected person should make his/her decision within 3 months.

Loss of non- PAPs having Registered owner Compensation at full replacement cost for lost structures, in addition to compensation for loss of residential structures non-residential land structure within the Right of Way Legalizable owner These PAPs will be legalized and will receive compensation at full replacement cost for lost structures, in addition to compensation for loss of land

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Type of Loss Application Definition of PAPs Compensation Entitlements

(e.g. sheds, barns, Renter/Leaseholder Non-eligible for compensation of the non- residential structure they are renting, but eligible for fences, seasonal affected ancillary structures they have built or own. house) Non-legalizable user Eligible for compensation at full replacement cost of all structures built by the non-legalizable user

Community Infrastructure/Common Property Resources

Loss of common Community/ Community/Government Reconstruction of the lost structure or reestablishment of lands temporarily used in consultation property and/or Public assets with community and restoration of their functions resources

Graves and Graves located Families of the deceased Payment for movement of the graves, and any costs associated with ceremonies to be agreed with cemeteries in the footprints the affected people. of the permanent structures (towers, substations) (if not possible to avoid)

Income and Livelihood

Crops Removal of All PAPs regardless of legal status When possible, PAPs will be given enough time to harvest existing crops. Crop compensation will standing crops (including registered owners, be in cash at gross market value of actual or expected harvest. Compensation for this item will be affected or loss legalizable, non‐ legalizable users) provided even in the case where the crops were harvested. This compensation is in addition for of planned crop compensation for permanent acquisition of land or easement fee. incomes form Right of Way

Perennials Removal of All PAPs regardless of legal status Compensation at full replacement cost: cash compensation at market rate on the basis of type, age trees from the (including registered owners, market price of product and the productive life of the trees. This compensation is in addition for Right of Way legalizable, non‐ legalizable users, compensation for permanent acquisition of land or easement fee and renters) All timber trees are compensated in cash to affected persons, and timber are transmitted to the Municipality which then dispose of the trees. For fruit trees, the affected persons are compensated in cash, and keep the wood. Wine trees will be compensated in cash and their owners will be allowed to move them.

Business/Employment Business owner PAPs will choose between two options:

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Type of Loss Application Definition of PAPs Compensation Entitlements

Business/ - Cash compensation: (i) (permanent impact) cash indemnity of one-year net income; (ii) Employment loss (temporary impact) cash indemnity of net income for months of business stoppage (up to (entire Right of maximum three months). Assessment to be based on tax declaration or, in its absence, Way, where minimum subsistence income, or; deployment of In kind compensation: If feasible, construction of a replacement business structure in the same business settlement based on design choice of the PAP and on a plot of land providing necessary structures is infrastructures and utilities. He will be provided with resettlement assistance and will receive cash prohibited) compensation at replacement value for any Square Mile reduction in overall house size.

Workers/employees Indemnity for lost wages equal to three months of their current wage or at least of minimum subsistence income and job trainings.

Permanent loss of Affected All affected households Loss of access to communal resources, such as logging areas and pastures will be addressed the access to communal community traditionally using the lost livelihood restoration measures, where needed. These measures will be elaborated and included in natural resources members resources RAPs, as defined in section 9.2.

Temporary loss of Loss of access or Land owners and/or land users, Alternative temporary access will be set up by the Design and Build Contractors income or mean of interruption of business owners livelihood due to loss access to land of access to land or to parcel or businesses because of business temporary project activities activities during construction

Economical Impact on PAPs All PAPs to be economically Additional allowance equivalent to market value of one-year yield from affected land or displacements economically impacted by the Project regardless compensation for 3 months of minimum subsistence income for a 5 -member family (whichever is (including all impacts displaced of their land rights (including greater). on means of registered owners, legalizable and Specific livelihood restoration measures to be defined in the Resettlement Action Plans. livelihoods, such as non-legalizable users, renters are local businesses not eligible) including winemaking, fisheries, beekeeping, livestock breeding, tourism)

Other assistance

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Type of Loss Application Definition of PAPs Compensation Entitlements

Physical Transport/ All PAPs to be physically relocated In addition to the cash compensation at replacement cost for the lost residential land/house and displacement/ transition costs (including registered owners, associated assets, and in addition to the livelihood restoration measures, the Physically Displaced Transportation of legalizable, non‐ legalizable users, households are eligible for an allowance covering transport expenses and a livelihood expenses for personal belongings and renters) the transitional period for three months equal to three months of minimum subsistence income17. to new location (new 200 GEL as vehicle hire charge + 357 GEL as minimum subsistence income for a 5 -member family house) X3 months = 1,271 GEL per AH

Vulnerable people Impact on Vulnerable people (as defined in One-time allowance equal to three months minimum subsistence income (357 GEL/month X3 allowances vulnerable each RAP) months = 1,071 GEL). Household will receive the allowance for a 5 members family.; and (individuals and people employment priority in project-related jobs for capable members of all vulnerable households groups) (individuals and Specific support measures to be defined in the Resettlement Action Plans, to address the specific groups) vulnerabilities of the affected people.

Any other GSE and the Construction Contractor will address and mitigate/compensate unforeseen resettlement impact during the Project implementation. unforeseen Impacts

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17 Minimum subsistence is calculated for a family of 5 members. The monthly updated benchmarks indicated by the National Statistics of Georgia.

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6.2.2 Cash and in-kind compensation In case of physical displacement, as per EBRD PR5, the Project Company will offer the displaced persons choices among feasible resettlement options, including adequate replacement housing (if feasible) or cash compensation where appropriate (EBRD PR5 §30). Payment of cash compensation for lost assets may be appropriate where: • livelihoods are not land-based; • livelihoods are land-based but the land taken for the Project is a small fraction of the affected asset and the residual land is economically viable; or • active markets for land, housing and labour exist, displaced persons use such markets, and there is sufficient supply of land and housing. When cash compensation is offered by the Project, compensation levels should be sufficient to replace the lost assets at full replacement cost in local markets. When the option is feasible, in-kind compensation for loss of permanent house is chosen by the PAP, the construction of a replacement residential house or a business structure should be done in the same settlement on a plot of land providing necessary infrastructures and utilities, before any construction activities starts on the affected land plot. When cash compensation for loss of permanent house is chosen by the PAP, GSE Resettlement Unit will assist the PAP in buying or rebuilding a house and ensure that PAPs will have their replacement house or business structure ready before any construction activities starts on the affected land plot. Most of the impacts to be compensated will comprise payment for servitude in the Right of Way. The ownership of the majority of land in the Right of Way will remain with the existing owner, who will receive a payment for the easement of the servitude, to compensate restriction on land use in the Right of Way. Only the towers and the substations footprints will be acquired and owned by GSE. Permanent impacts on land and structures will be limited, as shown in sections 3.0 and 5.0. These impacts will be avoided or minimised during the detailed design phase for each Component. In rural areas affected by the Project Components, where livelihoods can be land-based, it is anticipated that the land taken for the Project would only be a small fraction of the affected assets, and that the residual land would be economically viable. For PAP losing access to land-based livelihood and who will continue to live in the same community, support to find alternative land of the same size and equal or higher quality will be provided. In most parts of the Project Components, in urban as well as rural areas, there are active markets for land, housing and labour, and sufficient supply of land and housing. The valuation methodology to be used in the RAPS to establish this full replacement cost is presented in section 7.0.

6.2.3 Orphan Land (non-viable land) Non-viable or “orphan” land is such land that is not directly needed for the Project (it is not part of the Project direct footprint) but becomes uneconomic to the landowner or land user because of Project activities. It can be a remaining section of a land plot affected by the Project, that will not be required for the Project and would normally not be compensated. This can be the case in a variety of situations, including, but not necessarily limited to the following: • Because the remainder is too small to be used for any economically meaningful purpose (particularly in the area to build a house or industrial building), either permanently, or temporarily during the construction; • Because vehicular or pedestrian access to the remainder is not possible any longer after the Project is built;

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• Because access to vital infrastructure (for example irrigation, sewerage or electricity) is not possible any more. In such situations, Georgian expropriation regulations provide that the landowner may lodge a claim and that non-viable land may be compensated in full if the review of the landowner’s request indicates that the remainder is indeed not usable. The Project will adopt a similar strategy with regards to non-viable land. Whether a parcel qualifies as “orphan land” will be reviewed on a case-by-case basis based on a request lodged by the affected landowner. The following criteria will be considered in this review: • Size, dimensions and shape of the “orphaned” part of the plot –particularly with consideration of the agricultural equipment typically used (tractor, combined harvester) and its ability to access the orphaned part and to turn normally given the dimensions and shape of the plot; • Access restrictions and whether these will only last for the duration of the construction period or are permanent; • Restrictions to or interruption of irrigation or drainage during the construction period; • Disruptions to co-operative arrangements between landowners (e.g. hiring of tractors and other agricultural equipment), which result in uneconomic use of land for the remaining land right holders. This review will be conducted during the asset inventory by the RAP Consultant and will include a joint visit of the plot with the land owner.

6.2.4 Specific assistance measures Assistance for land registration GSE will provide free of charge technical assistance for land registration during the legalization process or registration of corrections, as defined in section 9.1.1. Consultants in charge of the land registration process will ensure women are, when relevant, truly recognised as the legal landowner or joint land owner, as also defined in section 9.1.1. Assistance for affected vulnerable households As indicated previously, all the persons and households affected are not identified yet. They will be identified during the next phases of the Project, in particular during the census and socioeconomic surveys to be undertaken as part of the Resettlement Action Plans for each Project Component. The vulnerable persons and households will be identified at this stage. The vulnerability criteria which will be used as a basis to identify the existing vulnerable persons and groups are proposed below. These existing criteria will be expanded based on the next socioeconomic surveys and further consultations with the affected communities. • Individuals and/or social groups could be considered vulnerable if they are: o Landless; o Poor; o Elderly; o Refugees and Internally Displaced People; o Marginalised ethnic or religious minorities; o Persons dependent on natural resource affected by the project. o Illiterate or disabled persons. • Project affected households could be considered vulnerable if they:

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o Are economically disadvantaged (poor households as defined by the official poverty line or heads without labour or means of support); o Have a disabled or elder headed household (≥ pension age) without labour or means of support; o Include people with disabilities in pension age; or o Are alone woman headed households with dependants – children under age 18 or children headed households; o Are users of state- or privately-owned lands with no legalisable land rights . To ensure all vulnerable persons are considered by the Project, intra-households vulnerabilities will also be considered during the socioeconomic surveys undertaken during the Resettlement Action Plans for each Project Component. The engagement methodology with vulnerable groups will be based on the following principles: • Vulnerable households will be engaged individually to ensure their needs are appropriately understood and appropriate assistance is provided; • In each affected community where a vulnerable group is identified, meetings with this vulnerable groups will be held directly, to ensure the affected vulnerable persons have received and understood appropriate information about the Project, without any interference from the broader community. In addition to cash compensation for land/crops/trees and assets, Vulnerable affected individuals and households will receive an allowance equivalent to three months of minimum subsistence income (357 GEL for three months or 1,071 GEL18) and employment priority in Project-related jobs. Household will receive the allowance for a 5 members family. They will also have access to livelihood restoration measures which will be specified during RAP preparation.

Measures to protect women rights As described in Section 5.1.2, while the have the same legal rights to land and property as men, women face multiple issues to secure their individual rights to land ownership. Particularly in rural areas, women often have little involvement in economic decision making, and often lack information about their rights under civil law19. Although no entitlements are specifically designated for women, specific measures will be implemented to ensure that their entitlements to compensation and other measures will be respected. On each Component, during the early land registration process as well as during the preparation and implementation of the Resettlement Action plans (see Section 9.0 for the RAP implementation schedule) the following will be implemented: • When public meetings will be organised in the affected communities, women only meetings will also be held to ensure women are directly informed on the land acquisition, compensation and resettlement process, as well as their legal rights for land registration and the way they can raise grievances to the Project. Women- only meeting will also allow them to express their specific concerns and issues openly.

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18 These figures are taken from the National Statistics Office of Georgia Department data on minimum subsistence income for a family of five persons in May 2016. 19 USAID (n.d.) ‘USAID Country Profile: property rights and resource governance. Georgia’, USAID, Washington, D.C.

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• When private meetings will be held with affected households, the Project will ensure that both spouses are present to discuss the information on land registration, land acquisition and compensation and resettlement process. • During the early land registration process and the negotiation of the compensation women will be engaged. • In case of land registration or compensation of lands or properties for which the owner is deceased, all shareholders will be informed of the land acquisition and compensation process. • A female Community Liaison Officer will be hired by GSE to engage women and address any potential complaints from women regarding compensation and Gender-based violence and harassment issues. Physical resettlement allowance In addition to the cash compensation at replacement cost for the lost residential land/house and associated assets, the physically displaced households are eligible for an allowance covering transport expenses and a livelihood expenses for the transitional period for 3 months equal to 3 months of minimum subsistence income20. This amount would be 1,271 GEL per physically displaced household (200 GEL as vehicle hire charge + 357 GEL as minimum subsistence income x 3 months, to be reviewed during the Resettlement Action Plans preparation). These households will also benefit from livelihood restoration programme which will be specified within the RAP.

6.2.5 Payment of compensation Cash and in-kind compensation will be provided prior to acquisition of land or possession of assets or establishment of restriction of access. On each working site, the work will not be initiated before all PAP have been entirely compensated. Cash compensation Payment of compensation will be made by bank transfer to the PAP’s bank account. In those instances, the Project Company will make arrangements to ensure that the PAP is able to physically access the bank and withdraw these funds at a convenient time. In such cases, the Project Company will work with the banks in the regional centres so that the non-depositors are welcomed into the bank and assisted with their needs. For the land plots registered in a form of Co-ownership - i.e joint ownership or ownership in common - and for the non-legalizable land plots owned by both spouses or heads of household, the owners will be encouraged to open a joint bank account under their names. Compensation and payment records will be maintained and documented by the Project Company monthly, to ensure effective monitoring of payments and transparent use of funds for the PAP. For the land plots registered under one name, payment will be made to the titled owner. However, the Project Company will ensure, where relevant, that both spouses or heads of household have the same level of information of the payment and compensation process, as indicated above. In-kind compensation Affected persons losing a residential building of a business structure they own will be offered a choice between cash compensation and in-kind compensation. In-kind compensation will consist, if feasible, in the construction of a replacement house or building structure in the same settlement based on design choice of the PAP and on a plot of land providing necessary infrastructures and utilities. When in-kind compensation is chosen, the following measures will be implemented: • Consultation with both spouses about the location design of the replacement house, and documentation of their choice regarding the design of the house;

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20 Minimum subsistence is calculated for a family of 5 members. The monthly updated benchmarks indicated by the National Statistics of Georgia.

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• Agreement of the affected household about the construction methods proposed, and the schedule for construction; • The replacement house or building will be made available, and the affected households will be assisted to move in their replacement house, before the works starts.

6.2.6 Livelihood restoration measures The compensation entitlements presented in section 6.0 have been designed to compensate for Project land acquisition impacts, including loss of income. However, in some situations, compensation alone is not a guarantee of livelihood restoration. In these situations, providing additional assistance in addition to compensation for loss of assets might be necessary to restore and where possible improve the PAPs’ livelihoods. These livelihood restoration measures will be defined during the preparation of the Resettlement Action Plans for each component. Section 9.2 presents how and when these livelihood restoration measures will be prepared and implemented, and how the affected persons will be consulted about these measures.

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Valuation

This section describes the methodology that will be followed to determine compensation rates for property losses. This section only addresses the valuation of lost assets. The measures for potential physical resettlement and sustainable restoration of livelihoods are described in section 6.2.

7.1 Valuation process For each Resettlement Action Plan, the valuation of affected assets and establishment of compensation unit rates will be undertaken by an independent accredited valuator, following International Valuation Standards (IVS). The independent valuator will consider the principles described hereafter.

7.1.1 Full replacement cost as the basis for compensation The principles of valuation of acquired land and assets have been developed as per the Lenders’ policies on involuntary resettlement and Georgian law and procedures. The valuation process has been defined in order to assess the full replacement cost for all lost assets. Full replacement cost is usually calculated as the market value of the assets plus the transaction costs related to restoring such assets. Depreciation of structures and assets is not taken into account. The PAP will not have to use their own financial resources in replacing their lost assets. This means that full replacement costs incorporate relevant transfer taxes, registration fees, and any other costs for land acquisition. Therefore, the calculation of full replacement costs is based on: • Market value at the time of dispossession, in the local area (i.e. local Municipality); • Transaction and/or legal costs; • Transitional and restoration (land preparation and/or reconstruction) costs, and • Other applicable payments. The Lenders require full replacement cost to be the basis of compensation for mitigation of property losses when in-kind compensation (i.e. land for land) is not possible. For the Project, it was decided to propose compensation in cash rather than in kind, as explained in section 6.2.2.

7.1.2 Engagement with associated facilities projects To avoid substantial differences between the compensation rates applicable to the Project and those for the Project’s associated facilities (see section 2.2), the Project Company will co-ordinate with the developers of these associated facilities and each RAP will include a review of the compensation rates established for them.

7.1.3 Endorsement of the compensation values by the PAP The process for endorsement of the compensation values by the PAP is as follows: • The unit rates will be publicly announced during the meetings organized during the disclosure of the draft RAP in each affected Community; • Once the valuation of property losses is completed, the asset inventory form will be completed with the valuation results. The Project Company will then return to the PAP with representatives of the Municipal Land Acquisition and Resettlement Office to consult on the valuation result and the amount of the compensation package.

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• If the PAP agrees with the inventory and the compensation value, they would then sign a Compensation Agreement with the Municipal Land Acquisition and Resettlement Office (MLARO – see section 8.2). Copies of the signed form would be kept by the PAP, the Project Company and the MLARO; • In cases where the PAP disagrees with the valuation, individual negotiation will be undertaken (i) to explain in detail the methodology followed, (ii) understand the point of view of the PAP and the reasons for the disagreement, and (iii) if necessary review the inventory and/or valuation in the light of the response provided by the PAP; • If the PAP still disagrees with the valuation result, they can resort to the Grievance Resolution Mechanism, as defined in section 11.0; • Where it is not possible to reach agreement, or where the PAP is opposed to any amicable transaction, the amicable process will end and the expropriation process will be initiated, as described in section 4.1. Update of the valuation if RAP implementation is delayed If the compensations are not paid to the PAP within 18 months of the completion of the valuation of the affected asset, the accredited valuator will assess if it is necessary to adjust the compensation rates for any change in the local (Municipal) market prices and full replacement values. Local and national inflation rates will be taken into account if needed.

7.2 Valuation methodology The independent valuators conducting the valuations for each RAP will take into account the following elements: • Applicable current Municipal schedules for land values obtained from Municipal land commissions, if available; • Applicable current Municipal schedules for valuing structures, crops, and trees, if available; and • Applicable current market prices.

7.2.1 Valuation of land The full replacement cost for the land comprises the market price of the land plot derived according to a sales comparison approach (Where data on sales is limited, another approach may be used to determine market value)and all relevant expenses (e.g. bank transfer fees, applicable taxes etc.) that could be imposed on the land owner according to the local land purchase and sale procedures. Permanent impact/acquisition Full replacement cost of land will be determined based on existing local market rates (i.e. local Municipality) and adding the applicable transaction cost, such as registration with the NAPR at the Municipal level and the Property Rights Recognition Commission (PRRC). Market rates will be defined by taking into account the type of land, its use, and location. For land used for agricultural purposes, any improvement made on the land plots, such as irrigation channels, will be evaluated along with the other structures affected. Compensation for Right of Way Servitude For the lands plots affected by the transmission lines’ Rights of Way, Servitude (easement) Agreements will be concluded between the Project Company and the owners. The compensation for land use restriction will include a lump sum easement fee payable to the owner. This fee will be established by the independent accredited valuator, based on the difference between the market cost of the type of affected land before the construction of the Project and the market cost once land use restrictions are imposed. For example, as a result of the Project, a residential or commercial land plot may become suitable only for agricultural use because of the restriction on

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7.2.2 Valuation of other assets Houses and structures Full replacement cost of houses, commercial buildings and other structures (for example, barn, fences, summer- house and other auxiliary constructions, outdoor kitchens, cattle-shed or others) will be determined based on construction type, cost of materials, transportation, types of construction, land preparation, labour, and other construction costs at current rates. The value identified is the value necessary for the construction of a comparable building or structure, i.e. the cost today for the construction of a building of similar parameters. No deduction for depreciation will be applied. Annual crops The unit rate for the loss of square metre of annual crops will be valued at local market price (local Municipality) by multiplication of amount of expected (lost) crops and its average market price. The amount of expected lost crops per square metre will be evaluated based on the annual productivity of crops for the past six years, based on figures from the Department of Statistics of Georgia for each Municipality. Table 7.1 provides an example of how annual crops unit rates will be established in each Municipality.

Table 7.1 – Unit rates for compensation of annual crops

Crop Annual productivity of crop (kg per sq. m.) Annual average Local Value of productivity (2013 – market compensation 2013 2014 2015 2016 2017 2018 2018) - A price of for 1sq.m of (kg per sq. m) 1 kg affected (GEL) - crop(GEL) - C B

Crop 1 a b c d e f a+b+c+d+e+f B C = A x B A= 6 …

Perennial crop and trees The full replacement cost of trees will be based on different methods for wood and fruit trees. Wood trees are valued based on growth category and the market value of the wood of the tree at the age the tree was cut. Fruit trees will be compensated differently if they are productive or not yet productive: • Seedlings will be compensated at the market cost of seedlings; • Productive trees will be compensated based on the future income lost for the years needed to re-grow a tree at the same age/production potential that was cut; and • Non-productive trees will be compensated based on the value of the investment made to grow the tree to the age at which the tree was cut. Compensation for productive fruit trees is defined as lost revenue until the new planted seedling will reach the same productivity rate as the cut tree. Calculation of this value will be based on: • Productivity of the different species of tree at the different productive stage or age of the tree (which will be defined by tables based on figures from the Department of Statistics of Georgia and recognized academic publications which detail the average productivity of a tree within intervals of five years);

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• Average net value of the tree product (deduced of inputs) at farm gate market price; and • Number of years needed to re-grow the tree to the productive stage (age) at which it was cut. The formula to compensate one productive tree will thus be: C= Cs + (K x V - M ) x L Where: • C is compensation value of tree (GEL); • Cs is cost of one seedling (GEL); • K =average annual productivity of one tree of the same species and age group as cut tree (in kg per tree); • V=market price at farm gate of 1kg of product; • L =years to be compensated (years needed to re-grow the tree to the productive stage (age) at which it was cut); and • M = average annual expenses for agricultural works (GEL).

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Institutional arrangements

8.1 Overview The Project Company will have the overall responsibility for the preparation, implementation and monitoring of RAP and in accordance with the principles defined in this LARCF. To exercise this responsibility, the Project Company will establish a resettlement management team, appoint specialised consultants to develop, implement and monitor each RAP, and define and implement livelihood restoration measures if and when needed. Other stakeholders will also be involved during the preparation of the RAPs, to complete the registration process for affected land plots whenever needed, and to consult with the PAP and agree on the compensation packages. These responsibilities of these stakeholders are outlined in section 8.2 and Figure 8.1 shows the institutional arrangements and the distribution of responsibilities between the stakeholders involved in the implementation of the RAPs.

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Figure 8.1 – Institutional arrangements for RAPs implementation

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8.2 Institutions and organisations

8.2.1 Resettlement implementing organisations The Project Company The Project Company (GSE) will be the Executive Agency and will be responsible for the Project, including its construction as well as the necessary land acquisition and resettlement of the PAPs. This includes preparation, financing, and supervision of all RAP tasks and for cross-agency coordination. The Project Company will implement its land acquisition and resettlement activities through a Resettlement Management Team (RMT) under the Permits Department of GSE. The RMT will include: a team head; representatives of the Legal Department and Environmental/Social Safeguards Unit of GSE; two field officers; and one geographic information system specialist. The RMT’s specific tasks will comprise: • Hiring and supervising the consultants that will prepare/execute the RAPs for each Component (RAP consultants); • Capacity building for RAP implementation in each Municipality where RAP is relevant; • Supervising all technical work done by the RAP Consultants on each Component to accomplish the RAP preparation and implementation tasks; • Ensuring proper internal monitoring and preparation of centralised RAP databases, monitoring data and grievance management by all RAP consultants on all Components; • Hiring an External Monitoring Consultant to conduct external monitoring and provide a completion report (as defined in section 12.0); • Providing all needed documentation to ensure the prompt allocation of RAP budgets from the Government of Georgia and compensation payments to the PAP; • Wherever needed, hire and supervise Livelihood Restoration Consultants (see Section 9.2); • Maintaining the coordination on all RAPs related activities, including Livelihood restoration. GSE will also establish a Community Liaison officer in each Municipality affected (as described in Volume 6 Stakeholder Engagement Plan). Consultants and contractors Implementation Consultant A key commitment of the Project is to avoid, as far as practicable, physical and economic displacement or where this is not possible, to minimise the impacts of this. The Design and Build Contractor(s) will optimise the final design for each component, taking into account identified social sensitivities and measures defined in Volume 8 ESMP and also Document 2.2 Volume 2 Introduction. The implementation of the RAPs will be initiated once the final design is determined (e.g. transmission line alignment, tower location, access track routing and working site locations). However, during the RAPs’ implementation, it may be possible that further design optimisation possibilities are identified. Hence, close coordination will be necessary between the Implementation Consultant and the RAP Consultant. RAP Consultants A RAP Consultant will be employed for each component on behalf of the Project Company to undertake all the activities of the RAPs including preparation, implementation and internal monitoring. The RAP Consultant will conduct: all field activities, including census of PAP potentially impacted by the Project, cadastral survey, inventory of losses and affected assets, detailed measurements surveys, socioeconomic surveys; the valuation

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 of land and assets for replacement value; impacts assessment; identification of any need for detailed livelihood restoration measures; and consultation with the affected persons and communities. They will assist the PAP whose lands are legalisable but not currently registered, to register their lands prior to the start of the compensation process. They will conduct the internal monitoring for their RAPs, as defined in section 12.0 and will work closely with the informal Municipal Land Acquisition and Resettlement Offices (see below). External Monitoring Consultants The Project Company will hire an External Monitoring Consultant for each component to conduct external monitoring and provide a completion report as defined in section 12.0. Independent auditor The Project Company will hire an independent RAP auditor to conduct an audit of land acquisition for the whole Project, once the completion reports for each of the RAPs have been issued to the Lenders, as defined in section 12.0. Design and Build Contractor(s) The Project will be constructed by one or more Design and Build Contractor(s). These works will be overseen by the Implementation Consultant who will manage the Design and Build Contractor on behalf of the Project Company. Construction works will only start on any particular section of the Project once the land acquisition process has been completed and compensation paid to the PAP, for permanent as well as temporary land needs. It is not anticipated that any change will happen for permanent land needs once construction has started on a section of a line. However, should any additional temporary need for land arise during the course of the construction activities (for example to extend a worksite), the construction contractors will rent the land affected as outlined in this document and in the individuals RAPs and reinstate it at the end of the works. They will document any agreement concluded and communicate this documentation to the RMT. The Municipal Land Acquisition and Resettlement Office (MLARO) The Project Company will establish an informal management structure locally for each component to oversee the RAP preparation and implementation and general day-to-day Project activities at the Municipal and Community (Village) level. This group will be known as a Municipal Land Acquisition and Resettlement Office (MLARO). Each MLARO will ensure proper coordination between all concerned Municipal offices and provide technical assistance to the RAP Consultants in the preparation and implementation of the RAPs. Each MLARO will be a committee standing for the entire duration of the RAP activities for each Component and will comprise: • A representative of the RMT; • A representative of the RAP Consultant; • Representatives of the affected Communities (Villages) delegated by the heads of the Municipalities; • Representatives of the NAPR regional services; and • Representative of the Property Rights Recognition Commission (PRRC). The MLARO structure will be implemented in each Municipality affected. These Municipal teams will be complemented at the village level by working groups comprising the Representative of the Mayor at the village level, the RAP Consultants, and representatives of the NAPR regional services. These Community (village) working groups will assist the RAP consultant to conduct the following activities: • Consultation with local communities about the Project land acquisition and resettlement process;

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• Identification of the affected landowners and users and conduction of PAP censuses; • Defining the boundaries of land parcels and obtaining data on affected land and assets ownership; • Verify and sign the list of affected landowners and users as well as the measurement and inventory of each affected land plot by the RAP Consultant, in the presence of the PAP or their representatives. • Determining the vulnerability status of the PAP; • Settling disputes informally; • Ensuring unimpeded legalisation of legalisable land plots; • Conducting public consultations; • Conclude compensation agreement negotiations; and • Document the timely payment of compensation to the PAP. All these activities will be the responsibility of the RAP consultant contracted by GSE. The RAP Consultant will ensure that the MLARO and the Community (Villages) working groups’ members are trained on the LARCF objectives and principles and on their roles at the start of the RAP preparation.

8.2.2 Land registration organisations As explained in section 5.1.1, land registration is not comprehensive in every part of Georgia. This process is still on-going. As show in section 5.2, about half of the affected private land plots used are not registered. As part of the RAP implementation, all affected non -registered land plots privately owned or used which can be registered will be registered before being compensated, as mentioned in section 6.2. The key stakeholders involved in the land registration process are described in the following paragraphs. The Representative of Mayor at Community (Village) level Community level Self-governing unit is the executive branch of self-government and are headed by a Representative of the Mayor. The Representative of the Mayor has the primary role in the process of legalisation and registration of land parcels, whereby he/she confirms ownership of affected land plots, parameters of land plots and endorses the cadastral maps and related data prepared to demonstrate legal ownership. Community level Self-governing unit also play an important role for legal registration of land and has the power to authorise details of the occupied land parcel, verify its usage pattern as the first-hand verification and authorisation for further consideration in the Property Rights Registration Commission (PRRC) as a basic step for registration with the Public Registry. Sakrebulo The Sakrebulo is the representative branch of self-government at the municipal and village level. It assists the PRRC in the process of legal registration of land. Property Rights Recognition Commission The PRRC was established by the Government of Georgia in 2007 at the Rayon/Municipal level for recognition and registration of ownership rights of owners of land plots occupied without legal documents. The PRRC verifies and authorises application of ownership for registration with the NAPR. National Agency of Public Registry As per the current legal framework, the NAPR is in charge of the registration of land ownership and would be responsible for its transfer through purchase agreement from landowners to the Project Company. The Municipal Registration Office of the NAPR is the Municipality (District) level authority for executing the registration of land parcels in the name of the applicants based on the application documents provided by rightful owners (PAPs possessing ownership documents but with title formalization pending) or by non-rightful owners

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8.2.3 The Ministry of Finance The Government of Georgia, through the Ministry of Finance (MoF), will fund the implementation of the RAPs and the compensation to be paid to the PAP. The RAP budget will be allocated to the accounts of the Project Company, which will then be responsible for the financial management of the budget. As the implementation of the RAPs is a condition to start the construction works, it will be essential that the payment of compensation is executed immediately.

8.2.4 The Court of Georgia The Court of Georgia will be the last resort for issues and concerns regarding the implementation of the RAPs. In case where an agreement cannot be reached between the Project Company and the PAP concerning the acquisition of private property, the Ministry of Energy could exercise its mandate for expropriation based on existing legislation and could submit to the Court a request for expropriation through the Ministry of Economy. Upon its approval and following the prescribed procedures, once given the right of Expropriator by the Court, the Project Company would take over the concerned property. Furthermore, in cases where complaints and grievances regarding the RAP implementation are not solved by the Grievance Resolution Mechanism defined in section 11.0, the PAPs can appeal the case to the Court as a last resort. Its decision would be final.

8.2.5 The Lenders The Lenders will review and approve the LARCF and the subsequent RAPs, and completion report and completion audit.

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RAP implementation schedule

This section describes the process for preparing and approving the RAPs (section 9.1) and how livelihood restoration measures will be defined and integrated into the RAP preparation and implementation if and when needed (section 9.2).

9.1 Preparation and Implementation of the Resettlement Action Plans The first objective of this LARCF and a key commitment of the Project is to avoid as far as practicable physical and economic displacement, and where avoidance is not possible, to minimise any resulting impacts. To do so, three main phases will be necessary on each Component to (i) plan and optimise the land acquisition, (ii) register all land not already registered in the lines corridors, (iii) prepare the RAP and (iv) implement the RAP for each of the components. Avoidance and/or minimisation of physical and economic displacement will mainly be done during the planning phase, when the final design and the construction methods and schedule for each section of the lines will be defined. It will be continued during the RAP preparation, through consultation with the potentially affected people and communities, and the assessment of the land acquisition impacts. Then, the RAP implementation will mitigate the impacts which it was not possible to avoid. The objectives and steps for these four phases for a Resettlement Action Plan for one of the Project Components are presented in the next paragraphs.

9.1.1 Phase 1: Information about the process and Land registration According to the recent practice, which was successfully applied to other infrastructure projects in Georgia, start land registration at an early stage in the RAP process significantly reduces RAP implementation duration and efforts. Therefore, the objective of this first phase is to provide initial information to the affected communities, established the grievance mechanism and the MLARO, and undertake the land registration of all land not registered in the line’s corridor. This first phase will be done before starting the actual RAP preparation, to ensure that all processes are in place before starting consultation and negotiation with the affected people in a timely manner. Step 1: Initial information about the Project at the Municipality and Community levels The RAP Consultant will undertake an initial consultation at the Community and municipality level, to explain the process and schedule, and announced the next steps. Step 2: Establishment and training of MLARO The RAP Consultant will contact the head of Municipalities affected by each Component and ask them to establish the MLARO and Community level working groups. The RAP Consultant will then organise workshops with the MLARO and Community level working groups to train them on the LARCF principles and objectives, and their role in the RAP preparation and implementation. The RAP consultant will also explain the Grievance Resolution Mechanism and the land take schedule. Step 3: Establishment of the Grievance mechanism GSE Resettlement Management Team and the RAP consultant will then establish the Grievance mechanism as defined in section 11.0. Step 4: Registration of land not already registered in the line’s corridor. The RAP consultant, with the assistance of the MLARO and the local Property Rights Recognition Committees will identify all land plots to be affected by the Project (those in the lines Rights of Way, in the lines corridors and all land needed permanently or for temporary purposes).

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GSE will then provide free registration of land plots to the landowners of land plots not already registered that can be registered according to the legal framework. The RAP consultant will be responsible of the coordination of the registration process and all cost will be borne by GSE. The Land Registration Process could be divided in several steps:

• Firstly, a remote work will be undertaken by the registration team to identify the land already registered under the Georgian National Agency of Public Registry. • Second, land surveying will be conducted by the surveyors within the Right of Way. This step requires the cooperation of the local population. • The third step concerns the land registration at the Public Registry. The registration team has to provide a cadastral map of the surveyed land plot to the Public Registry while the concerned owner has to disclose his/her identity. • If the land has never been registered before, the information collected during land surveying will be transmitted to a special committee, the Land Recognition Committee. Its main function is to assess whether a land claim is in conformity with the Georgian law. The Land recognition Committee has been set up at the Municipality level to determine if a land user can legally register his/her land. The process is free of charge. To recognise a private land legally owned, the committee is looking at several criteria: • The plot of land should preferably be surrounded by registered lands; • If a building is located on the land, or if the claimer has already one plot of land registered and located close, it will make it easier for the committee to recognize the legitimacy of the claim; • The plot of land should be used before 2007, date on which the “Recognition of Property Rights of the Parcels of Land Possessed or used by natural Person & Legal Entities Under Private Law” Act came into force; • Witnesses should confirm that the land was used before 2007; • The land should preferably be fenced. As land is generally registered in the name of male siblings as demonstrated in section 5.1.2, the registration team will have to ensure women’s land rights are recognized and protected while respecting the legal framework. When possible, both spouses should be present during the land registration process and Co- ownership of land, i.e joint ownership or ownership in common where both parties have equal rights on the land without anyone taking undue advantage of the other, will be systematically proposed and encouraged by the registration team during the registration process. The measures defined in Section 6.2.4 will be applied: • When public meetings will be organised in the affected communities, women only meetings will also be held to ensure women are directly informed on the land acquisition, compensation and resettlement process, as well as their legal rights for land registration and the way they can raise grievances to the Project. Women- only meeting will also allow them to express their specific concerns and issues openly. • When private meetings will be held with affected households, the Project will ensure that both spouses are present to discuss the information on land registration, land acquisition and compensation and resettlement process • In case of land registration or compensation of lands or properties for which the owner is deceased, all siblings, will be informed of the land acquisition and compensation process. • A female Community Liaison Officer will be hired by GSE to engage women and address any potential complaints from women regarding compensation and Gender-based violence and harassment issues.

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•

9.1.2 Phase 2: Project Design Finalisation to avoid /minimise land take The objective of this first phase will be to avoid and/or minimise as much as possible the physical and economic displacement necessary for the construction of each Component. This will be done by coordinating the technical design process, the planning of the construction activities and the selection of the Consultants who will be appointed to prepare and implement the RAP in compliance with this LARCF. Step 5: Adjustment of the final design to avoid/minimise physical and economic displacement As explained in section 1.1, when preparing this LARCF, a 500m corridor has been set for each transmission line, centred on the centreline of the current alignment and a 100m buffer around proposed substation locations. It is anticipated that the majority of the refinement of the current design will be within this corridor/buffer. The first step of the land acquisition process will be to define what will be the exact areas to be acquired permanently and temporarily within this corridor, or outside of it. This will be done by the Design and Construction Contractor(s), with the objective of avoiding and/or minimising physical and economic displacement. Utilisation of aerial imagery will be used to define the land take areas. Site visits will be undertaken to ground check the technical decisions and document the avoidance and/or minimization of the impacts. The following measures will be applied: • Selection of non-used lands for sitting of towers, and all temporary land needs, as much as possible; • Selection of temporary construction sites such as lay-down areas or parking areas inside the Right of Way, as much as possible; • Reuse of existing paths and tracks for line access, as much as possible; • Consultation with local communities to select sitting on towers, access tracks and temporary land needs to avoid as much as possible impacts on productive lands; • Selection of access routes and temporary construction sites will be signed-off by GSE; • In Component D, reuse as far as is practicable, of the existing tower locations to build the new towers. Step 6: Selection of providers for the development and implementation of the RAP If possible, the RAP Consultant already selected for the Phase 1 will be contracted for the next phases of the RAP for each component during the finalization of the land take areas. If this is not possible, other RAP consultant will be appointed at this stage. The Terms of Reference of the Call for Tender for these will include the present LARCF and its appendixes. It will also include a provisional construction schedule, organized if necessary by sections. The Call for Tender will be reviewed and approved by the Lenders. Step 7: Definition of the Land take schedule, coordination between RAP consultant, Construction contractor and Design and Build Consultant Once the land take areas are defined by the Implementation Consultant and the RAP Consultant is selected, the Design and Build Contractor will finalise the construction schedule and confirm construction methods. Any additional land needed for construction purposes (temporary land take) will be requested by the Design and Build Contractor and included in the RAP Consultant scope of work before the start of the RAP fieldwork. The identification of land take areas will be prioritised by the Design and Build Contractor based on its construction schedule and methods. Each transmission line and substation will be divided into construction sections/activities as appropriate. The RAP Consultant will plan its RAP preparation schedule according to this information. A land take schedule will be prepared jointly by the Implementation Consultant, the Design and Build Contractor and the RAP Consultant, and approved by the RMT.

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The RMT will establish and maintain close coordination between the Implementation Consultant, the Design and Build Contractor and the RAP Consultant to continue avoiding and/or minimising physical and economic displacement wherever possible during the RAP preparation, for permanent as well as temporary land take.

9.1.3 Phase 3: RAP preparation After land registration is completed, MLARO and Grievance mechanisms are established, and land take areas and schedule are defined, the RAP Consultant will start the preparation of the RAP according to the land take schedule. Step 8: Consultation about the Project’s land acquisition – announcement of cut-off date For each transmission line section and substation works, and according to the land take schedule, a cut-off date will be decided by the RMT with the RAP Consultant. This will correspond to the date when the asset inventory will start in each affected section of the lines. The cut-off date will be communicated officially by the RMT to each Head of Municipality, who will then request the MLARO and Community level working groups to announce it locally in the affected areas at least two weeks prior to the start of the survey. Two weeks prior the start of the census and asset inventory, the RAP Consultant will organise public meetings in each affected village to announce and explain the process and make appointments for the start of the census and asset inventory. An information leaflet or Guide to Land Acquisition and Compensation (GLAC) will be prepared by the RAP Consultant and communicated to the MLARO to disseminate the information. This GLAC will be distributed during the public meeting and made available at the Municipal and Community (Village) town halls. It will, as a minimum, state clearly the cut-off date, the eligibility principles, describe the Grievance Resolution Mechanism and include the contact details of the RAP Consultant. Step 9: Census and asset inventory The RAP Consultant will then start the census of affected persons and households, with the assistance of the MLARO. The census will list all affected individuals and households’ members and their basic information allowing to determine their entitlements (their age, gender, education, occupation, vulnerability status, sources of income, access to alternative land) as well as their phone number. The census will also collect information on other potential land acquisition processes from associated facilities and/or other projects that could cause cumulative impacts (see Volume 4 Social Impact Assessment). If cumulative impacts are identified, GSE RMT will engage the other projects involved and define appropriate ways to mitigate these cumulative impacts. The RAP consultant will provide the census list to GSE RMT, who will then transmit it to the Design and Build Contractor, in order to prioritise the affected persons in the local recruitment process (as defined in Volume 8 ESMP). The RAP Consultant will also conduct a cadastral survey to identify affected registered land plots. The RAP Consultant will undertake an asset inventory to list all land and assets present in the land take areas at the time of the survey (cut-off date). A detailed measurement survey will be done for all land plots and structures, regardless of their legal status. The asset inventory and detailed measurement survey will be conducted by the RAP Consultant in presence of (i) the affected persons or their representative and (ii) the head of Community (the Representative of the Mayor) representing the Municipal authorities. Two copies of the asset inventory sheet will be prepared and signed by the RAP Consultant, the affected person and the head of Community. One signed copy will be given to the PAP while the RAP Consultant will keep the other copy for the RAP database. Step 10: Socioeconomic survey The RAP Consultant will conduct a socioeconomic survey to document the baseline situation of the PAP in the RAP. This socioeconomic survey will document the means of livelihood, sources and levels of income of the

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 affected households. All data will be collected will be disaggregated by gender. This socioeconomic survey will cover: • 100% of physically displaced households; • 100% of households categorised as vulnerable; • At least 50% of PAP residing permanently in the affected Villages if they are more than 150; and if they are less than 150, all (100%) of the PAP residing permanently in the affected Villages • At least 25% of the other PAP categories (non-residents) if they are less than 150; and if they are less than 150, all (100%) of them who can be contacted. The survey will therefore identify the number and the categories of Vulnerable Individuals and/or groups, disaggregated by gender. Vulnerable Individuals and/or groups refer to people who may be more adversely affected by project impacts than others21, and who may be limited in their ability to claim or take advantage of project benefits. The socio-economic survey will collect data which will allow for an intra-household assessment of vulnerability to be completed. The socioeconomic survey will include both land owners and land users if they are different. The survey will as a minimum collect data on: • Ethnicity and religion; • Land tenure of the affected land plot, and information about the owner’s (user’s) ownership/use of other land; • Size and composition of the owner’s (user’s) household; • Employment and health status of the owner’s (user’s) household members; • Occupation and income of all members of the owner’s (user’s) household; • Household expenditures; • Features and use of the affected land plot, including farming activities and animal husbandry, and workforce associated with the affected land plot; • Use of natural resources in the area by the household; and • Owner’s (user’s) knowledge about the project and previous experience. A template of a socioeconomic survey questionnaire is provided in Appendix D. Step 11: Specific surveys on informal and/or customary rights of use in highlands areas As described in section 5.1, in the highlands sections of Components A (Sairme line), Component B (Guria line) and in Component C1 (Mestia line), some local specificities regarding local land tenure practices will need to be taken into account during the RAP preparation. To address the specificities of the local land tenure practices and of the informal grazing rights, the RAP for the Sairme line (Component A) will include a survey to confirm these customary or informal rights of use through a participatory approach with the affected communities and establish the dependency of the affected people to the seasonal activities conducted in these affected areas. The RAP for the Guria line (Component B) will include a survey to assess (i) local residents use of forest as grazing land for free and (ii) tolerated use of State land by the government to build temporary houses and cultivate crops ______

21 According to PR5 of EBRD guidelines, Vulnerable individuals and/or groups may include, but is not limited to, people living below the poverty line, the landless, the elderly, women and children headed households, refugees, internally displaced people, ethnic minorities, natural resource dependent communities or other displaced persons who may not be protected by national and/or international law.

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 in the highlands of Chokhatauri. This survey will follow a participatory approach to confirm the use of forest and State land by the affected people and establish their dependency to the activities conducted in these affected areas; The specificity of Component C1 with regard to the land acquisition impacts is related to this persistence of the customary practices regarding land tenure, especially in highlands area such as summer pastures. In some areas, such as in the highlands between the Nenskra and Nakra valleys, collective customary right of use is still practiced, although it is not legally recognized. The RAP for the Mestia line will include a survey to assess if any area is affected where collective customary right of use is still functioning and establish the dependency of the affected people to the activities conducted in these affected areas. If these surveys results show that the affected people are dependent on the informal collective or customary rights of use on the affected areas, individual and/or collective livelihood restoration activities will be defined with the affected people, as described in section 9.2. Step 12: Valuation of affected assets Once asset inventory and detailed measurement surveys are completed, the full replacement cost of affected lands and assets will be evaluated. This will be done by the independent accredited valuator, following the methodologies indicated in section 7.0. Step 13: Assessment of impacts and of need for additional livelihood restoration measures Once all information on the PAP and their losses has been collected, the RAP Consultant will assess the impacts of physical and economic displacement on the affected households. Any gender specific impacts will be identified and assessed. The vulnerability status of the affected individuals and households will be considered in the impact assessment, including intra-household assessment of vulnerabilities. If the entitlements defined in section 6.0 are not assessed sufficient to restore or improve the PAPs’ standards of living and means of livelihoods, the RAP Consultant will elaborate additional livelihood restoration measures as indicated in section 9.2. It is recognised that livelihood restoration planning and preparation may need to start in advance to compensation payment. The RAP will take this into account and define when the livelihood restoration activities will have to be started to ensure that they are delivered in a timely manner. Step 14: Consultation with PAPs about the compensations The disclosure of information and consultation with the PAP during the RAP will be done as defined in section 10.3. Once all compensation agreements for a particular section of the land take schedule are ready, the RAP Consultant will organise a meeting in each affected locality to announce their readiness and distribute a copy to each PAP. The RAP Consultant will also announce the time frame given to the affected person to agree on the compensation offer or to refuse it. Specific measures will be defined whenever necessary to ensure appropriate consultation with vulnerable groups. Step 15: Draft Resettlement Action Plan preparation and disclosure After the compensation packages have been presented to the affected persons, the draft RAP will be prepared by the RAP Consultant. This draft RAP will document all the steps conducted to-date and will be submitted to the Project Company, and to the Lenders. Once approved by the Project Company and the Lenders, the draft RAP will be disclosed on the Project website and on the Lenders’ websites. Hard copies of the draft RAP will also be available in the Municipality Town hall, with a register to receive comments.

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9.1.4 Phase 4: RAP implementation Step 16: Signing and documentation of Compensation Agreements After the time given to the affected persons to consider the compensation offer, the RAP Consultant with the MLARO will proceed to the signature of the compensation agreement with the affected persons. The timing for payment will be indicated to the affected persons, as well as the expected time where the Project takes the land to start the construction. If the affected persons refuse the compensation offer, then the expropriation process will be initiated. All compensation agreements will be documented by the RAP Consultant and archived in the RAP database. A template of Compensation Agreement is provided in Appendix E. Step 17: Payment of compensation and relocation notice Compensation will be paid prior to acquisition of land or possession of assets. Payment of compensation will be made by the Project Company by bank transfer to the PAPs in his or her bank account. In those instances, GSE RAP consultants will make arrangements to ensure that the PAP is able to go to the bank and withdraw his or her funds at a time that is convenient to him or her. Relocation notices will be given to the PAP by the RMT at the time of payment. Step 18: Final Resettlement Action Plan Once all compensation payments have been made, the RAP Consultant will finalize the RAP, taking into account the comments received on the draft RAP and the PAP’s feedback on the process. The final RAP will then be issued to the Project Company and to the Lenders, who will approve and disclose the document on their websites. The RAP Consultant will also transfer the final RAP databases to the RMT. Step 19: Resettlement and livelihood restoration Once all compensations have been paid, the PAP will be resettled. The PAP will have the authorisation to salvage their structures’ materials. Whenever needed, as defined during the impact assessment, livelihood restoration measures will be implemented, as indicated in section 9.2. Step 20: Start of construction works On each working site, the works will not be initiated before all PAP have been entirely compensated and relocated and permission given to the Design and Build Contractor by the RMT. Step 21: Completion report One year after payment of compensations, an External Monitoring Consultant appointed by the Project Company will undertake an evaluation to assess if the objectives of the RAP have been achieved, as indicated in section 12.2.1. This internal evaluation will be prepared as a completion report, which will be submitted to the Lenders. It will assess the completion of the livelihood restoration activities.

9.1.5 RAP preparation and implementation action process The steps described above are synthetized in the action plan provided in Table 9.1.

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Table 9.1 – RAP Preparation and Implementation Process

Steps Actions Responsibilities

Phase 1: Information about the process and Land registration

1 Initial information about the Project at RAP Consultant the Municipality and Community levels 2 > Establishment and training of Municipal > GSE Resettlement Management Team LAR Offices and Community level working groups. > RAP Consultant > Training and capacity building of the Municipal LAR Offices and Community level working groups. 3 Establishment of the Grievance mechanism GSE Resettlement Management Team and RAP Consultant 4 Registration of land not already RAP consultant, MLARO team, Property registered in the lines corridor. Right Recognition Committee and the National Agency for Property Registration.

Phase 2: Planification of the land take

5 Adjustment of the final design to Design and Build Contractor avoid/minimise physical and economic displacement 6 Selection of providers for the GSE development and implementation of the RAP 7 Definition of the Land take schedule, GSE Resettlement Management Team, coordination between RAP consultant, Implementation Consultant, Design and Construction contractor and Design Build Contractor, RAP consultant Consultant Phase 3: RAP preparation

8 > Definition of cut-off date > GSE Resettlement Management Team + >Information and communication about RAP Consultant the Project – announcement of cut-off > RAP Consultant + Municipal LAR Offices date 9 Census and asset inventory RAP consultant / MLARO team

10 Socioeconomic survey of the PAPs RAP consultant

11 Specific surveys on informal and/or RAP consultant customary rights of use in highlands areas 12 Valuation of affected assets RAP consultant + accredited independent valuator 13 Assessment of impacts and of need for RAP consultant additional livelihood restoration measures

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Steps Actions Responsibilities

14 Consultation with PAPs about the RAP consultant compensations 15 > Draft Resettlement Action Plan > RAP consultant preparation > GSE, Lenders > draft RAP approval > GSE, Lenders > draft RAP disclosure Phase 4: RAP Implementation

16 Signing and documentation of RAP consultant/MLARO team Compensation Agreements 17 Payment of compensation and relocation GSE Resettlement Management Team notice 18 > Final Resettlement Action Plan > RAP consultant preparation > GSE, Lenders > final RAP approval > GSE, Lenders > Final RAP disclosure 19 Relocation of Affected Structures/Assets Affected persons / Livelihood restoration and livelihood restoration consultants (hired by GSE, see section 9.2) 20 Start of construction works GSE Resettlement Management Team

21 Completion report External Monitoring consultant (hired by GSE, see section 12.2.1)

9.2 Integration of livelihood restoration measures The compensation entitlements presented in section 6.0 have been designed to compensate for Project land acquisition impacts, including loss of income. However, in some situations, compensation alone is not a guarantee of livelihood restoration. In these situations, providing additional assistance in addition to compensation for loss of assets might be necessary to restore and where possible improve the PAPs’ livelihoods. As part of the preparation of the RAPs, the impacts on PAPs’ livelihoods will be assessed. Additional livelihood restoration measures will be prepared as part of the RAPs. These additional measures will target specifically the groups of PAPs who need additional support to restore their livelihoods. Specific livelihood restoration measures might be necessary where restrictions on use are imposed on natural resources commonly used by communities. This might be the case in situations where: • Collective customary right of use cannot be legally recognised on some areas of land, such as some grazing areas in remote mountainous areas; or • Where the PAPs are solely dependent for their livelihoods on land that is permanently affected by t infrastructure footprints (e.g. towers or substations). Where these types of impacts are identified, the final design of the Components (alignment of transmission lines and siting of towers, location of working compounds) will be optimised to avoid or minimise as far as practicable impacts on local communities’ livelihoods. Where the avoidance or minimisation is not sufficient to ensure that the PAPs’ livelihood can be restored with cash compensation, livelihood restoration measure will be integrated in the RAP.

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Livelihood restoration in a resettlement situation involves a profound social change. The Livelihood Restoration measures will therefore focus primarily on supporting the PAPs’ existing means of livelihoods, rather than propose economic activities that are new for the PAP. Livelihood restoration measures will be tailored to correspond to at least the three main types of existing PAPs’ livelihoods: • Land-based livelihoods: the PAPs relying on access to grazing land and forest, especially where they depend on livestock farming and firewood, could benefit from agricultural inputs, small-scale credit and have access to markets; • Wage-based livelihood: Wage earners whose income is interrupted during physical displacement should receive a resettlement allowance that covers these and other hidden costs. The PAPs should continue to have access to their place of work during and after resettlement or they should benefit from skills training and job placement. Affected women and men should be given equal opportunities to benefit from such provisions; • Enterprise-based livelihood: Established and start-up entrepreneurs and artisans may benefit from credit or to expand their business and generate local employment. The following principles will be applied when defining livelihood restoration measures. • The livelihood restoration measures will be developed in synergy with general community development measures implemented by the Project Company to provide benefits to local communities affected by the Project Components construction. • The Project will consult with the PAPs to define and develop the livelihood restoration activities. • Livelihood restoration activities will be implemented prior to economic and physical displacement so far as is practicable to ensure that the PAP do not suffer from periods of loss of food or income. Where this is not possible, the Project Company will provide support to ensure that the affected households have sufficient resources in place until their livelihood is restored. • International experience has shown that while the effects of resettlement may be common to women and men, women are often more adversely affected by or vulnerable to displacement. A gender differentiated approach will be followed: men and women will be consulted and their preferences regarding the livelihood restoration activities will be collected. In one affected household, men and women with different economic activities and means of livelihood will be offered different livelihood restoration activities, tailored to their needs and preferences. The steps necessary to prepare and implement the livelihood restoration measures are presented in the Table 9.2.

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Table 9.2 – Steps to prepare livelihood restoration measures # Activity Implementation Schedule responsibility

1 Assessment of specific livelihood RAP Consultant During RAP preparation restoration needs as part of the impact assessment, based on the socioeconomic survey.

2 Consultation with the affected RAP Consultant During RAP preparation communities with respect to the compensation framework and compensation unit rates, including identified need for livelihood restoration (if any).

3 Consultation with the affected RAP Consultant During RAP preparation communities about their needs for livelihood restoration and participatory definition of livelihood restoration measures that are technically, economically and socially sustainable.

4 Definition of a budget and schedule for RAP Consultant / During RAP preparation livelihood restoration. Project Company

5 Integration of the livelihood restoration RAP Consultant During RAP preparation measures into the RAP.

6 Disclosure of the draft RAP integrating RAP Consultant During the public disclosure of the livelihood restoration measures to the draft RAP the PAP.

7 Signature of compensation agreement RAP Consultant During compensation with PAP, including livelihood agreement discussions restoration measures whenever needed and agreed with the PAP.

8 Selection of consultant to implement Project Company Before land acquisition and livelihood restoration measure payment of compensations

9 Implementation of the livelihood Livelihood Restoration During land acquisition and restoration measures Consultant after payment of compensations

10 Monitoring of the livelihood restoration RAP team + External During RAP implementation measure as part of the overall RAP Monitoring consultant monitoring (internal & external)

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Disclosure of information and consultation

A Stakeholder Engagement Plan (SEP) has been developed for the Project. It is presented in the Volume 6 and covers all stakeholder engagement activities for the Project development, construction and operational phases. This section focuses solely on the engagement activities as part of developing this LARCF and on those to be conducted with the PAP as part of the RAPs preparation, implementation and monitoring.

10.1 Consultations conducted during the LARCF preparation A series of Scoping Meetings have been held with representatives of the Municipalities in areas affected by the project as outlined in Table 10.1 below.

Table 10.1 - Scoping meetings

Project component Date Location/Municipality A 18 April 2018 Vani 20 April 2018 Ambrolauri 23 April 2018] Akhaltsikhe 23 April 2018 Adigeni B 23 April 2018 Chokhatauri 23 April 2018 Ozurgeti C1 17 April 2018 Tsalenjikha 26 June 2018 Mestia C2 18 April 2018 Kutaisi 18 April 2018 Tskaltubo 19 April 2018 Tsageri 19 April 2018 Lentekhi 19 April 2018 Tkibuli 20 April 2018 Oni D 26 April 2018] Telavi 26 April 2018 Gurjaani 27 April 2018 Akhmeta

Those invited to attend the meetings comprised relevant representatives of Municipalities through which the components pass. In some cases, local representatives of the local communities were also in attendance. A detailed description of the discussions held during the scoping meetings is provided in Volume 6 – Stakeholder Engagement Plan. The key issues raised during these meetings comprised the following themes:

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• Requests for more details on the transmission line routes and locations of the towers; • Concerns about impacts from EMF and ensuring safe distance from housing; • Interest in the land compensation process, in particular timing of the Project and process for registering unregistered land; • Query about changes to electricity tariffs and whether there would be local distribution improvements; • Benefits to the community – opportunities for jobs; • Query on the link between the projects and HPPs, especially in Svaneti; • Requests for GSE to consider underground cables in places close to settlements.

10.2 Information disclosure This LARCF comprises Volume 7 of the ESIA prepared for the Georgia Power Grid Enhancement Project in compliance with the Lenders’ environmental and social requirements. As with the other ESIA volumes, the LARCF is written in English, and will be translated into Georgian before its public disclosure. Georgian and English version of this LARCF will be accessible on the Project’s website and on the Lenders’ websites. The RAPs to be prepared for the Project Components will be disclosed first in a draft version, then as final documents: • Electronic version of the Draft RAP in Georgian and English will be disclosed once approved on the Project’s and the Lenders’ websites; • Hard copies of the draft RAP will be made available in the Municipality Town hall, with a register to receive comments; and • The final RAPs will be disclosed on the Project’s and the Lenders’ websites once approved. The completion reports prepared by the External Monitoring consultant at the end of each RAP (see section 12.2.1) will also be disclosed on the Project’s website. At the start of each RAP preparation phase, the RAP Consultant will also distribute the GLAC to all PAP. The GLAC will comprise an information brochure presenting the principles and summary of the LARCF.

10.3 Stakeholder Engagement process for the RAPs For each RAP prepared and implemented, meaningful consultation will be undertaken with the PAPs and communities. Local authorities will also be engaged and will be involved in the consultation process. The RAP Consultant preparing and implementing the RAPs will identify specific constraints inhibiting consultation with vulnerable groups and will define appropriate engagement methods with them. They will also identify a gender sensitive approach to be implemented throughout their consultation process with the PAPs and communities. The processes and mechanisms ensuring the active involvement of PAPs and other stakeholders will be detailed in the RAPs. They will also include, in an appendix, the minutes of the consultation meetings, with the list of participants, and the synthesis of the views and concerns of the PAPs, disaggregated by gender. Table 10.2 presents the various consultation activities that will be implemented during each RAP preparation and implementation. As indicated in section 9.1, the activities listed here can be phased to accommodate the land take schedule along the different section of each transmission line and substation.

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Table 10.2 – Stakeholder Engagement process for the RAPs

# Activities Timing Responsibility 1 First information meeting with affected Once the RAP consultant is appointed RAP Consultant communities and presentation of the and instructed to start the land Grievance Resolution Mechanism registration process (phase 2 in section 9.1.1) 2 Capacity Building of MLARO and village- After the first meeting with the PAP, RAP Consultant level working groups before the start of the land registration process 3 Detailed consultation with affected At least two weeks before the cut-off RAP Consultant + communities and announcement of cut- date. MLARO off date Distribution of a GLAC 4 Informal individual discussions during the During the RAP surveys (census asset RAP Consultant + RAP census and field surveys inventory, detailed measurements, MLARO socioeconomic survey) 5 Consultation with affected persons about After completion of valuation of RAP Consultant + the compensation packages, including affected assets and assessments of MLARO livelihood restoration measures if and impacts. when necessary. 6 Disclosure of the draft RAP When draft RAP is approved by the Project Company + Project Company and the Lenders. Municipalities 7 Signature of compensation agreements, after offering of compensation RAP Consultant + announcement of payment and package MLARO relocation notice 8 Disclosure of the final RAP When final RAP is approved by the Project Company + Project Company and the Lenders. Municipalities 9 Surveys and interviews for the completion One year after payment of all External report compensations Monitoring Consultant (see section 12.2.1)

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Grievance mechanism

11.1 Overview The Project has defined a general Grievance Resolution Mechanism (GRM) to manage all type of complaints. It is presented in Volume 6 – Stakeholder Engagement Plan. The Grievance Resolution Mechanism (GRM) for grievances pertaining to compensation, economic displacement and livelihood restoration is integrated into this general GRM. This GRM is explained here for the reader’s convenience. GSE and its RAP consultants will engage with people affected by land acquisition and resettlement in a conciliatory, fair and transparent manner. Care will always be taken to prevent grievances rather than going through a resolution process. A grievance can be defined as an actual or perceived problem that might give grounds for complaint from the affected people. Each future Resettlement Action Plan will establish a Grievance Resolution Mechanism to allow affected persons to complain about any decision of activities regarding temporary or permanent loss of their land, assets or sources of income and their compensation. This mechanism will follow the principles presented in this section. GSE and its RAP consultants will implement this amicable Grievance Resolution Mechanism with the objective of helping third parties to avoid resorting to the judicial system for as many grievances as possible. This mechanism includes t successive tiers of extra-judicial amicable grievance review and resolution: (i) the first one is Grievance Resolution Committee (GRC) at the Municipal level, (ii) the second being an official processing at the complaint by GSE formal process at the Central level. Figure 11.1 page 105 illustrates this two-stage Grievance Resolution Mechanism. Affected persons may raise a complain at any time of the RAP Process. It may concern issues related to the land acquisition and resettlement, the compensation rates, missed items during the inventory of losses, delay of compensation, or insufficient time given for physical relocation. In cases where the aggrieved individuals or group is not satisfied with the outcome of the amicable mechanism, they will always be able to resort to Justice at any stage in the resolution process. All grievances will be documented, and each grievance resolution process and communication will be systematically tracked.

11.2 Grievance Resolution Mechanism process The two-stage Grievance Resolution Mechanism process of the Resettlement Action Plans will involve the following main steps: • Receipt of grievances ; • Screening for standing; • Grievance Resolution Committee (first stage); • GSE resolution at central level (second stage); • Closure of grievances; and • Grievance records and documentation.

11.2.1 Receipt of Grievances Anyone from the affected communities or anyone believing they are affected by the Project can raise a grievance: • By completing a written grievance registration form that will be available (i) in the Town halls of the local municipalities and in the affected villages (i.e. those within proximity of construction activities), (ii) at the

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entrance of each construction site, (iii) on the Project’s website and (iv) at the Project’s headquarters in Tbilisi. • By contacting the GSE Community Liaison Officer, GSE Environmental and Social Manager, or the RAP Consultant, either by phone, by a written grievance registration form, or by direct oral discussion during consultations or surveys. A sample Grievance registration form in given in Appendix C. The Project’s Community Liaison Officer of each Municipality will centralise and review the received grievances and record them in a Grievance Register. Grievances received verbally will be written down by the Community Liaison Officer on the grievance registration form and logged into the Grievance Register. A copy of the logged grievance will be forwarded to the complainant, giving them the opportunity to alert GSE if the grievance has not been noted down correctly. During this first step, the RAP consultant will try to provide any explanation or clarification necessary to solve complaints caused by misunderstandings. In such cases, informal discussions and negotiations with aggrieved affected persons should allow to avoid resorting to the Grievance Resolution Committee. All grievances will then be registered, reported and tracked by GSE in the Grievance Register, by the Community Liaison Officer who is responsible for receiving, logging, referring and following up on grievances. Once a grievance is logged, the related event(s) that caused the grievance will be tracked to prevent similar grievances. The status number and trends of grievances will be discussed between GSE and the RAP consultant during weekly E&S meetings.

11.2.2 Screening for ‘Standing' Once a grievance is logged, the status number and trends of grievances will be discussed between GSE and the RAP consultant during weekly E&S meetings. Once a grievance is received, GSE Environmental and Social Manager will determine whether the complaint has ‘standing,’ i.e., warrants further consideration as an acceptable grievance. If the matter has standing, grievance information will be recorded in a grievance log by GSE’s Grievance Focal Point. The following information will be recorded: (¡) Name and contact details, (ii) Details of the grievance and how and when it was submitted, acknowledged, responded to and closed out. If the grievance is deemed as ineligible, the GSE Community Liaison Officer will record the reason and document that the complainant has been informed of this decision and the basis for this is explained. Regarding the logged grievance, GSE will determine whether the resolution of the grievance is the responsibility of the RAP Consultant (for instance in case of complaints related to asst inventory, land measurements). If the grievance is the responsibility of the RAP Consultant, GSE shall however review, comment and approve any corrective actions. Once a grievance is raised and logged by the Community Liaison Officer, (i) he/she informs the grievant in writing within one week and (ii) convene the Grievance Resolution Committee within two weeks to propose an initial resolution. A sample grievance database is given in Appendix D.

11.2.3 Stage 1: Grievance Resolution Committee Stage 1 of the GRM involves an informal (oral) review of the complaint (whether written or oral). A local Grievance Resolution Committee (GRC) will be established in each Municipality, with an office in the municipal building. Once a standing grievance has been logged, the corresponding local GRC will be engaged to define a solution to solve the grievance. At this stage the grievance is reviewed in an informal (oral) way. If at Stage 1 the PAP’s complaint is not resolved the PAP is informed about grievance resolution procedures of Stage 2. A PAP has

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 the right to use the procedures of Stage 2 without applying to Stage 1 procedures. Timeframe for resolving the stage 1 grievance is 7 days. The GRC shall convene as per necessity (but at least once a month) and shall include eight members. When GSE has determined that the resolution of a grievance is the responsibility of the RAP Consultant, he/she shall coordinate the GRC formation and will be responsible for the coordination of GRC activities, organizing meetings, writing minutes of meetings and updating the Grievance database. He will act as secretary of the GRC (creation, coordination, and documentation). The Grievance Resolution Committee shall include: • Georgian State Electrosystem (GSE) representative as a Committee coordinator; • Regional/municipal representative (from “Gamgeoba”) as a Committee secretary; • Village attorney (“Rtsmunebuli”) as a Committee member; • Representative (Man) of a Project Affected People (PAP) as a Committee member; • Representative (Woman) of the Project Affected Household (PAH) as a Committee member; • Local specialist of social and environmental safeguards from the Implementation Consultant – as a Committee member; • The RAP Consultant, as a Committee member. For each grievance, the GRC will determine whether additional investigations are warranted. In cases where the project has agreed to put in place additional measures, these will be specified, with a timetable for delivery, in the minutes of the meeting. If the grievance remains unresolved, the PAP will be explained the Stage 2 escalation process.

11.2.4 Stage 2: GSE resolution at central level If any aggrieved PAP is unsatisfied with the GRC decision, the unsolved grievances will be sent to GSE in written form. The GRC should assist him/her in lodging an official complaint and send it to the appropriate departments (legal, technical, contracts etc.) for redress. The appropriate department within GSE shall then review the complaint. The timeframe for referral is 10 days. The plaintiff shall be informed of the decision in writing within a maximum of 30 days. The plaintiff shall be informed in writing of GSE decision. If GSE decision fails to satisfy the aggrieved affected persons, they can pursue further action by submitting their case to the appropriate court of law (Rayon Court).

11.3 Grievances records and documentation When GSE has determined that the resolution of a grievance is the responsibility of the RAP Consultant, he/she will be in charge of recording and documenting it. The RAP Consultant will establish a database which will be transmitted weekly to GSE central Resettlement Management Team. GSE Resettlement Management Team will then manage a centralized database to keep a record of all complaints recorded on all Resettlement Action Plans during their preparation and implementation. The database will contain the name of the individual or organization lodging a grievance; the date and nature of the complaint; any follow-up actions taken; the solutions and corrective actions implemented the relevant party; the final result; and how and when this decision was communicated to the complainant. A sample grievance database is given in Appendix D. The Resettlement Action Plans will indicate clearly the point of contact regarding the management of Grievances, indicating the name, phone number, email, address of the person in charge of the grievance management within

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Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020 the RAP consultant team, as well as the focal point for grievance management in GSE Resettlement Management Team.

11.4 Closure of grievances A grievance will be considered resolved or closed when a resolution satisfactory to both parties has been reached, and after corrective measures has been successfully implemented. When a proposed solution to solve a grievance is agreed between the Project and the complainant, the time needed to implement it will depend on the nature of the solution. However, the actions to implement this solution should be undertaken within one month after the grievance has been logged. Once the solution is being implemented or is implemented to the satisfaction of the complainant, a complaint close-out form shall be signed by both parties (GSE representative and the complainant), stating that the complainant consider that its complaint is closed. This form will be archived in the Project Grievance database.

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Figure 11.1 – Grievance Resolution Mechanism

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Monitoring and reporting

The objective of this LARCF and of the future RAPs implementation is to ensure that the PAP’s standards of living and livelihoods at least remain at their pre-project level and preferably improve because of the Project. Monitoring is the means of documenting the success in achieving this objective. It provides feedback on progress made and allows problems to be identified as early as possible in order to facilitate timely adjustment of rehousing and livelihood restoration measures. The objectives of the monitoring are to: • Ensure that the standard of living of PAPs are restored or improved; • Ascertain whether activities are progressing as per schedule, i.e. agreed timelines are being met; • Assess whether the compensation, rehabilitation measures are sufficient; • Identify problems or potential issues, and • Identify methods to rapidly mitigate any identified problems.

12.1 Monitoring

12.1.1 Internal monitoring Internal monitoring of the RAPs will be carried out routinely by the RAP Consultants and reported to RMT. Indicators for internal monitoring will be those related to process, immediate outputs and impacts listed in Table 12.2: • number of properties in process, • registered land plots, • number of agreements reached and signed, • number of compensations in process and paid; • verification of the suitability of the prospective relocation sites, • compensation payments in process and paid, • titling of new property; • requirements for livelihood restoration activities and their implementation status, • grievances by type and time for resolution. This information will be collected for each of the RAP by the RAP consultant in charge of its implementation. A monthly internal monitoring report will be prepared for each RAP by the RAP Consultant and submitted to RMT. These will contain: • Accomplishments to-date; • Number of compensation agreements signed; • Number and amount of compensation paid; • Number of affected persons having received compensation and additional assistance and amount; • Number and nature of livelihood restoration activities conducted, and number of affected persons participating in these activities; • Objectives attained and not attained during the period;

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• Problems encountered; • Relocation of physically displaced persons; • Number of grievances lodged, by type, location and gender of complainant, and number resolved, and • Suggested options for corrective measures.

12.1.2 External monitoring The implementation of the RAPs will be subject to external monitoring. The external monitoring will consider the effectiveness of the compensation process and of the restoration of livelihoods. The External Monitor will review the internal monitoring findings and verify these through site visits. Semi-annual external monitoring reports covering all RAPs being implemented as part of the Project will be submitted to the Lenders. The external monitoring will be undertaken by appropriately qualified and experienced third-party specialists to be agreed by the Project Company and the Lenders. Prior to contracting the external monitor, the Project Company and Lenders will agree on the terms of reference and report format. External monitoring will aim to establish the robustness of internal monitoring methods and the relevance of Project outcomes to decided aims. External monitoring tasks will include: • Review and verify internal monitoring reports; • Review of the household asset census survey information of PAPs; • Review of effectiveness of the compensation process; • Review of effectiveness of the grievance mechanism; • Consultation with PAP, officials, community leaders; and • Verifying whether affected households’ livelihoods have been increased or at least restored to pre-Project levels. Where gaps in the implementation process or noncompliance with Lenders’ policies are identified, the External Monitor will propose corrective actions and the Project Company will propose time bound actions (with budget) to bring the Project to compliance.

12.2 Evaluation

12.2.1 Completion reports For each RAP implemented, one year after payment of compensations, the External Monitoring consultant will undertake an evaluation to assess if the objectives of the RAP have been achieved. This internal evaluation will be prepared as a completion report, which will be submitted to the Lenders. The completion reports will include a socioeconomic survey documenting the situation of the PAP and comparing it with their baseline situation documented in the RAP baseline. The survey will document the PAPs’ standards of living, means of livelihood and incomes sources, their relocation status and their satisfaction regarding the RAP implementation. This survey will cover, as a minimum: • 100% of the persons physically displaced; • 100% of the persons categorized as vulnerable; • At least 50% of PAP residing permanently in the affected Villages; and

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• At least 25% of the other PAP categories (non-residents). Based on the monitoring data and on the survey conducted, the completion reports will document the following elements: • Summary of all activities completed as part of RAP implementation (synthesis of all monitoring data collected); • Number of persons and households affected, by Project component and entitlement, as per the entitlement matrix (disaggregated by gender and vulnerability status); • Satisfaction of the PAP regarding the compensation process; • Number and type of grievances received, solved and unresolved; • Levels of income and standards of living of the PAPs after resettlement, and evolution since baseline survey undertaken as part of the RAP; and • Type of means of livelihoods and income sources of the affected persons, and evolution since baseline survey undertaken as part of the RAP.

12.2.2 External completion audit Once the completion reports for each of the RAP for the five Project Components have been issued to the Lenders, an external RAP auditor agreed by the Project Company and the Lenders will be hired to undertake a completion audit of the Land Acquisition Process for the whole Project. The completion audit will include a review of the totality of mitigation measures implemented, a comparison of implementation measures against agreed objectives and a conclusion as to whether the monitoring process needs to be ended. The audit will assess whether the principles defined in the LARCF, the objectives of the RAPs and the requirements of the Lenders’ involuntary resettlement policies have been met. In case of gaps in implementation or noncompliance with the Lenders’ policies, necessary corrective actions will be identified and the Project Company will propose time bound actions and budget to bring the Project to compliance.

12.3 Schedule of monitoring and evaluation Table 12.1 presents the schedule of monitoring and reporting activities.

Table 12.1 - Schedule of monitoring and reporting activities. Monitoring or evaluation Reporting Frequency / schedule activities

Internal monitoring Monthly reports from RAP Monthly during RAP implementation, until consultant to RMT completion report

External monitoring Six-monthly reports from During RAP implementation, until External consultant to RMT completion report and Lenders

Completion report One report from External One year after last payment of Consultant to RMT and compensation Lenders

Completion audit One completion audit to RMT After submission of the completion report and Lenders to the Lenders

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12.4 Monitoring and evaluation indicators Monitoring and Evaluation are typically divided into three components: • Input (or process) monitoring, which measures the services, resources or goods that contribute to achieving outputs and, ultimately, desired outcomes. Input monitoring will be done internally on an on-going basis. • Output (or performance) monitoring which measures the direct measurable results of the inputs. It will be done internally. • Outcome (or impact) evaluation defines the extent to which the Project inputs and outputs are achieving or are likely to achieve the objectives of the RAPs. This will be prepared in the compliance report. The indicators for these three components are listed in Table 12.2 below.

Table 12.2 – Monitoring & evaluation indicators

Monitoring Indicator Source Frequency / Schedule Input Overall Spending of the RAP budget Financial records Internal monitoring (monthly) Distribution of spending by: Financial records + RAP database Internal monitoring (monthly) - Cash compensation - Transitional allowances - Consultation and engagement with PAP and other stakeholders - Vulnerable people assistance - Livelihood restoration activities - General implementation & overheads Number of staff mobilised, full- RAP Consultants + RMT Internal monitoring (monthly) time/part time, in-house or outsourced, distribution by responsibility and skill types Number of PAP by categories (as per Census & grievance management Internal monitoring (monthly) the entitlement matrix) Output Number and amount of RAP database Internal monitoring (monthly) compensation agreements signed Number and amount of RAP database Internal monitoring (monthly) compensation paid Number and nature of livelihood RAP database Internal monitoring (monthly) restoration activities conducted, and number of PAP participating in these activities

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Monitoring Indicator Source Frequency / Schedule Number of land plots registered by RAP database Internal monitoring (monthly) the PAPs Outcome Number of grievances opened in the Grievances management system Internal monitoring (monthly) period and trend in time Number of pending open grievances Grievances management system Internal monitoring (monthly) in the period and trend in time Number of grievance closed in the Grievances management system Internal monitoring (monthly) period and trend in time Average time for grievance Grievances management system Internal monitoring (monthly) processing Average time for compensation RAP database Internal monitoring (monthly) payment Satisfaction of PAP regarding the Socioeconomic survey Completion report compensations Levels of income and standards of Socioeconomic survey Completion report living of PAP and % of PAP with their livelihoods and level of income restores and/or improved Type of means of livelihoods and Socioeconomic survey Completion report income sources of the PAPs

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Implementation costs

13.1 Funding All RAP preparation and implementation costs, including cost of compensation and administration, will be an integral part of Project cost. The Ministry of Finance will provide funds to the Project Company for implementing the RAPs. The Project Company will be responsible for the timely allocation of the funds needed to implement the RAPs. Allocation will be reviewed twice a year based on the budget requirements indicated by the RAPs. The Project Company will bear the RAP implementation costs, including compensations and costs of RAP Consultants, External Monitoring Consultant and Completion audit, from funds allocated by the Ministry of finance. The MLARO will include representative from the civil service and local authorities. Their activities will be part of their normal and responsibilities. Hence, they will not receive any specific funding as part of the RAP implementation. The compensations will be paid directly by Project Company to the PAP.

13.2 Budget It is not possible at this stage to provide an estimate of the budget for the implementation of the RAP. This will depend on the final impacts (e.g. the final alignment of the transmission lines and siting of the towers and substations) and of the results of the valuation done for each of the RAPs. The RAPs will include a budget section with a table indicating the overall amount for each compensation item (land by type of land, structure by structure type, crops, trees, administrative costs and contingencies, livelihood restoration measures and other assistance, monitoring and evaluation costs).

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APPENDIX A

Description of Georgian Expropriation Procedure

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Step 1: Issuance of Ministerial decree The right to expropriate is assigned to the State or to a local self-government body or public or legal person of private standing by the issuance of a ministerial decree, issued under the Article 21 of the Constitution of Georgia. Each such decree defines the inevitability of expropriation of a land parcel for immediate public needs, and the assignee (State or local self-government body, or public or legal person of private standing) is granted the right to expropriate the property. Step 2: Inventory all the property to be subject to expropriation After issuance of the decree, an inventory and valuation shall be conducted of all the property subject to expropriation. The person or agency invoking eminent domain ensures that an independent auditor undertakes the inventory and valuation of the property to be acquired. If the expropriated property is to be replaced by another property, the replacement property shall also be appraised by an independent auditor. If the assessor believes that the property remaining after expropriation is insignificant in size, form or condition -- but is linked to the property subject to expropriation and therefore is useless – the entire property, not just the portion desired by the expropriator, will be subject to expropriation. The evaluation of agricultural land also includes the value of any standing crops. The value is calculated as the income the owner might have received during the current economic year if the crop had been harvested and sold. However, if a field is planted after the asset inventory, no value for the crop shall be taken into account in the valuation of the losses. Step 3: Informing the landowners on expropriation through publication In order to inform the landowners, the information on the expropriation is published in central and local newspapers. The information shall contain the scope of the project implementation, also a brief description of the territory and property that may be expropriated. Step 4: Submission of the Application to the Court Submission of the Application to the Court is undertaken after the above activities are implemented. The Law of Georgia on the Rule of Property Expropriation for Necessary Public Needs, Article 5 defines that the Regional (City) Court is eligible to assume the final right of expropriation on the basis of the application of the person interested in expropriation. The Application for expropriation is submitted to the Regional (City) Court. The application that might be submitted to the Court shall state the following: • Name of the District (City) Court; • Name and legal address of the of applicant; • Name and address of the applicant’s representative; • The request of the applicant; • The description of the circumstances the applicant refers to in his/her request; • The proofs verifying these circumstances; • The list of the documents attached to the application. The application shall annex: (1) the detailed description of the project that requires the right of expropriation for its implementation; (2) the decree granting the right of expropriation; (3) detailed description of the property that subject to expropriation; and, (4) the document verifying the publication of the information on expropriation. Step 5: information to the landowners on the date of submission of application to the Court The landowners will be supplied with the information on submission of application to the Court and on Court hearing. The applicant shall ensure that every owner whose property is subject to expropriation is informed about the submission of the application to the court and the date of the court case.

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Step 6: Considering the Application and making a decision by the Court The Court considers the application and makes a decision on expropriation. The decision states the person granted the right of expropriation and the detailed description of the property to be expropriated, also corresponding instructions on ensuring due compensation to landowners. The Court decision is subject to immediate enforcement. This means that even if such decision is appealed, the execution of the Court decision is not suspended due to the appeal. Step 7: Expropriation After the Court makes a decision, the agency expropriating the property gives the offer for purchase of the property to the landowner(s), provides them with the rules of compensation for this property and conducts negotiations with the landowners in order to come to an agreement. In addition, the agency provides the landowner with the written document issued by an independent expert verifying the assessment of the value of property to be expropriated and compensated (if compensation is to be undertaken by transferring the other property only in agreement with the landowner). The amount of compensation or the value of the property to be compensated shall not be less than the value of the property to be expropriated. Step 8: Court proceedings in case any disputes arise in regard to the property market value and compensation amount In the case that the expropriator and the property owner fail to come into agreement regarding the property market value and amount of compensation - in accordance with the Civil Procedural Code of Georgia - any party has the right to apply to the same regional Court according to the location of the land parcel. The claim of the expropriator shall be attached with: (1) detailed description of the property to be expropriated, (2) documents verifying the presence of public needs for property expropriation; (3) documents related to the project to be implemented for public needs; and (4) the Decision of the Regional (City) Court on granting the right of expropriation. The Court is eligible to assign an independent expert who shall conduct a property appraisal and, within the defined time period, provide the Court with a report on the market value of the property to be expropriated and other property offered to the owner as compensation (if compensation shall be undertaken through transferring supplementary property). On the basis of the independent expert’s report and the proofs provided by both parties, the Court makes a final decision regarding the amount of compensation for the property to be expropriated. The expropriator is responsible to reimburse costs incurred by both parties including the costs for court proceedings.

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APPENDIX B

Sample Complaints and Grievance Registration form

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Grievance No: Full Name Note: you can remain anonymous if you prefer or request not to disclose your identity to the third parties without your consent First name ______Last name ______Gender: ❏ Male ❏ Female ❏ I wish to raise my grievance anonymously ❏ I request not to disclose my identity without my consent Contact Information Please mark how you wish to be contacted (mail, telephone, e-mail). ❏ By Post: Please provide mailing address: ______❏ By Telephone: ______❏ By email: ______Preferred Language for communication ❏ Georgian ❏ Russian ❏ English ❏ Other: ……………….

Description of Incident or Grievance: What happened? Where did it happen? Who did it happen to? What is the result of the problem?

Date of Incident/ Grievance ❏ One time incident/grievance (date ______) ❏ Happened more than once (how many times? _____) ❏ On going (currently experiencing problem)

What would you like to see happen to resolve the problem?

Signature: ______Date: ______

Please return this form to [insert here name and address of RAP consultant] Address ______: Tel.: ______or Email: ____@____.com

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

APPENDIX C

Sample Grievance Database

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

of resolution by by resolutioncomplainant of by resolutioncomplainant of by resolutioncomplainant of

acceptance acceptance acceptance

Grievance Resolution Grievance Committee

ategory of the Complaint the of ategory

Grievance or comment number orcomment Grievance ComplainantName Complainantgender Complainantaddress ComplainantPhone Complainantemail receivedcomplaint when Date complaintof Description C event of Date event Locationof with solved discussion Grievance of Evidence dateResolution Grievance Committee Local Local complainant by accepted Resolution of Evidence ofdate review complaint level Project level Project complainantby accepted resolution of Evidence grievance closureof Date #1 #2 #3 #4 #5 … … … … …

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

APPENDIX D

Template of Compensation Agreement

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Indemnity Agreement

______20__

JSC "Georgian State Electrosystem" (registered on 12.11.2002, Registration Number N5/4-3396; I/C 204995176; with its registered office located at #2, Baratashvili St., Old Tbilisi District, Tbilisi) in person of its Chairman of the Governing Board/authorized person of the Rehabilitation Manager (Power of Attorney’s number and date) ______(Personal number N______) hereinafter referred to as the Indemnitor, on the one hand, and a natural person: ______(Personal number N______), hereinafter referred to as "Indemnitee", on the other hand, hereinafter collectively referred to the parties,

WHEREAS: a) The Indemnitor shall implement construction of a power transmission line ______, with the funds provided under the International Contract signed between Georgian and European Bank for Reconstruction and Development (EBRD) on 3 September 2014 (the projects on strengthening of the transmission grid); b) ______construction project is of special state and public importance aimed at increasing the supply of electricity in the region and improving the sustainability of the uniform power system; c) The Indemnitee is envisaged in the Resettlement Action Plan by the approved by European Bank for Reconstruction and Development (EBRD) in relation to the construction project;

Article 1. Subject of Indemnity

1.1. By virtue of this Agreement, the Indemnitee shall receive indemnity (hereinafter the Indemnity) set forth in the Resettlement Action Plan from the Indemnitor. All the calculations’ details are provided in Annex#1 of this Agreement,

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Article 2. Indemnity and Payment Terms

2.1. The Indemnitee shall receive from the Indemnitor total GEL ______as indemnity, wherefrom:

2.1.1 Temporary and permanent land acquisitions and restrictions

2.1.1.1 GEL ______shall be compensation for permanent loss of arable and non-arable land Compensation is at full replacement cost at current market value without deduction of depreciation and transaction fees;

2.1.1.2 GEL ______shall be compensation for permanent loss of arable and non-arable land as a non legalizable owner. Compensation is a one-time allowance equal to 1 year of minimum subsistence income.

2.1.1.3 GEL ______shall be compensation for permanent loss of arable land as agricultural tenants or a sharecroppers. Compensation is a rental allowance for 3 months.

2.1.1.4 GEL ______shall be compensation for permanent restriction on use land as a registered owner. Compensation is a lump sum easement determined by an independent valuation expert.

2.1.2 Buildings and structures

2.1.1.1 GEL ______shall be compensation for loss of residential and non-residential buildings and premises as a registered or a legalizable owner. Compensation is based on the replacement value for the house or lost structure.

2.1.3 Assets and livelihood

2.1.3.1 GEL ______shall be compensation for crops, whether or not harvested, provided under the project. Compensation is at gross market value of actual or expected harvest;

2.1.3.2 GEL ______shall be compensation for perennials (trees) provided under the project. Compensation is at market rate on the basis of type, age market price of product and the productive life of the trees.

2.1.3.3 GEL ______shall be compensation for the graves and cemeteries’ movement cost or any other cost associated with ceremonies.

2.1.3.4 GEL ______shall be compensation for Business loss on a permanent basis. The compensation is equivalent to one-year net income and the assessment is based on official tax declaration or, in its absence, minimum subsistence income for three months.

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

2.1.3.5 GEL ______shall be compensation for Business loss on a temporary basis. The compensation is equivalent to maximum three months net income and the assessment is based on tax declaration or, in its absence, minimum subsistence income.

2.1.3.6 GEL ______shall be compensation for employment loss. The compensation is equivalent to three months of current wages or a least of minimum subsistence income and job trainings (if necessary).

2.1.3.7. GEL ______(______) shall be compensation for people economically displaced. Compensation is equivalent to the amount of a subsistence income for three months, or of an additional allowance based on market value of two-year yield from affected land.

2.1.4 Specific assistance measures

2.1.4.2 GEL______(______) shall be compensation for socially vulnerable people. The compensation is a one-time allowance equal to three months of minimum subsistence income.

2.1.4.3 GEL ______(______)shall be compensation for physical displacement or transportation of personal belongings to new location. The compensation is an allowance covering transport expenses and a livelihood expenses for the transitional period for three months and is equal to three months of minimum subsistence income.

2.1.4.3 GEL ______(______)shall be compensation for impacts in vulnerable people. The compensation is a one-time allowance equal to three months minimum subsistence income.

.

2.2. The value of indemnity shall be defined by ______(name of the organization preparing the assessment) according to the report prepared by the organization on ______20__ .

2.3. Payment between the parties shall be made in the form of non-cash settlement, by transfer to the bank account specified by the Indemnitee in Annex #2 attached to this Agreement. The sum shall be paid within 10 (ten) calendar days after signing the Agreement.

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Article 3. Obligations of the Parties

3.1 The Indemnitor shall pay the indemnity set forth herein to the Indemnitee in timely manner.

3.2. By signing this Agreement, the Indemnitee shall entitle the Indemnitor and the contractors recruited in him/ her to perform the following on his/her own rea:

3.2.1 to ensure construction of the power transmission line;

3.2.2 to implement overhead and underground works for construction of the power transmission line;

3.2.3 to move both heavy and light equipment and carry out any means and measures necessary for the construction and operation of the power transmission line;

3.2.4 not interfere with the construction and operation of the power transmission line.

Article 4. Miscellaneous

4.1. The Agreement shall enter into force and effect on the date of its signature by the Parties and shall be valid until full implementation of the obligations taken by the Parties.

4.2. Neither Party shall have the right to delegate the rights provided under this Agreement to any third party without a written consent of the other Party.

4.3. Any amendments and supplements to this Agreement shall be valid only if made in writing.

4.4. Violation of the obligations undertaken by the Parties according to this Agreement shall result in liability under the Georgian legislation.

4.5. Any dispute arising out of or in connection with this Agreement shall be settled by mutual agreement between the Parties and in case of disagreement, the dispute shall be referred to court and settled in accordance with the Georgian legislation.

4.6. The Agreement is drawn up in 2 (two) copies with equal legal force.

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Article 5. Details and Signature of the Parties

Indemnitee: ______Personal number: N______,

Signature

Indemnitor: JSC "Georgian State Electrosystem" (registered on 12.11.2002, Registration Number N5/4-3396; I/C 204995176; with its registered office located at #2, Baratashvili St., Tbilisi)

Signature

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Annex #1 – Indemnity calculation matrix

[Calculation matrix prepared by the valuator to be inserted here]

Georgian State Electrosystem (GSE) Environmental and Social Impact Assessment SLR Ref No:901.12.1 Volume 7 - Land Acquisition, Resettlement & Compensation Framework April 2020

Annex #2 - Bank account specified by the Indemnitee to receive

EUROPEAN OFFICES

United Kingdom .

AYLESBURY LEEDS T: +44 (0)1844 337380 T: +44 (0)113 258 0650

BELFAST LONDON T: +44 (0)28 9073 2493 T: +44 (0)203 805 6418

BRADFORD-ON-AVON MAIDSTONE T: +44 (0)1225 309400 T: +44 (0)1622 609242

BRISTOL MANCHESTER T: +44 (0)117 906 4280 T: +44 (0)161 872 7564

CAMBRIDGE NEWCASTLE UPON TYNE T: + 44 (0)1223 813805 T: +44 (0)191 261 1966

CARDIFF NOTTINGHAM T: +44 (0)29 2049 1010 T: +44 (0)115 964 7280

CHELMSFORD SHEFFIELD T: +44 (0)1245 392170 T: +44 (0)114 245 5153

EDINBURGH SHREWSBURY T: +44 (0)131 335 6830 T: +44 (0)1743 23 9250

EXETER STAFFORD T: + 44 (0)1392 490152 T: +44 (0)1785 241755

GLASGOW STIRLING T: +44 (0)141 353 5037 T: +44 (0)1786 239900

GUILDFORD WORCESTER T: +44 (0)1483 889800 T: +44 (0)1905 751310

Ireland France

DUBLIN GRENOBLE T: + 353 (0)1 296 4667 T: +33 (0)6 23 37 14 14