46135-002: Djizzak Sanitation System Development Project

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46135-002: Djizzak Sanitation System Development Project Social Due Diligence Report _________________________________________________________________________ June 2019 Uzbekistan: Djizzak Sanitation System Development Project Prepared by the Communal Services Agency of the Republic of Uzbekistan for the Asian Development Bank. This social due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Social Due Diligence Report Document: Due Diligence Project Number: 46135-002/L3275 Date: June 2019 Republic of Uzbekistan: Djizzak Sanitation System Development Project Prepared by the Communal Services Agency of the Republic of Uzbekistan for the Asian Development Bank (ADB). The Due Diligence Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. ABBREVIATIONS ADB – Asian Development Bank AH – Affected Household AP – Affected Person EA – Executing Agency IR – Involuntary Resettlement LAR – Land Acquisition and Resettlement LARP – Land Acquisition and Resettlement Plan MHCS – Ministry of Housing and Communal Services of Uzbekistan PCU – Project Coordination Unit PMC – Project Management Consultant SDDR – Social Due Diligence Report SPS – Safeguard Policy Statement (ADB 2009) CSA – Communal Services Agency under the Ministry of Housing and Communal Services of Uzbekistan WWTP – Waste Water Treatment Plant USD – United State Dollar UZS – Uzbekistan Sum CURRENCY EQUIVALENTS (As of June 15, 2019) Currency Unit – Sum (UZS) $1.00 = UZS 8562.34 1 UZS = 0.000117 USD GLOSSARY Compensation Payment in cash or kind for an asset to be acquired or affected by a project at replacement cost. Affected Affected persons (APs) are those who experience full or partial, permanent or Persons temporary physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. APs could be of three types: (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and (iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land. Entitlement The range of measures comprising cash or kind compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration which are due to AH, depending on the type and degree nature of their losses, to restore their social and economic base. All entitlements will be given to all affected households as per the entitlement matrix. Hokimiyat The local government authority that interfaces between local communities and the government at the regional and national level. It has ultimate administrative and legal authority over local populations residing within its jurisdiction. Land The process whereby a person is compelled by a public agency to alienate all or acquisition part of the land s/he owns or possesses, to the ownership and possession of that agency, for public purposes, in return for fair compensation. Mahalla A mahalla is a neighborhood area forming a community within a town, city or rural settlement. Four basic types of mahalla exist in Uzbekistan. In rural areas, former state and collective farms constitute mahalla. In cities, mahalla encompasses modern apartment complexes, blocks of relatively spread-out family dwellings and traditional mahalla consisting of blocks of densely organized single-family dwellings. Within Uzbekistan, each residential area belongs to one mahalla. Mahalla is the basic administrative unit of a republic. Replacement Replacement cost is the principle to be complied with in compensating for lost cost assets. Calculation of which should include: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments, if any. Where market conditions are absent or in a formative stage, APs and host populations will be consulted to obtain adequate information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and region, and other related information. Baseline data on housing, house types, and construction materials will also be collected. Qualified and experienced experts will undertake the valuation of acquired assets. In applying this method of valuation, depreciation of structures and assets should not be taken into account. 2 TABLE OF CONTENTS 1. Introduction........................................................................................................................................4 1.1. Project Background....................................................................................................................4 1.2. Scope of the Project...................................................................................................................4 1.3. Purpose of the Due Diligence Report (DDR).............................................................................5 2. Scope of Land Acquisition and Resettlement Impacts .....................................................................8 3. Methodology of the Social Due Diligence Exercise...........................................................................9 4. Findings of the Social Due Diligence Exercise................................................................................11 5. Consultations and Information Disclosure.......................................................................................35 6. National Land Acquisition and Resettlement Policy........................................................................36 6.1. General....................................................................................................................................36 6.2. Laws, Regulations and Provisions Relating to Land Acquisition and Resettlement……...…...36 7. Grievance Redress Mechanism……………….………………………………………..…………………46 8. Conclusions and Recommendations...............................................................................................48 ANNEXES Annex 1. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan N 266 of 30.09.2013 “On Approval of Djizzak City Development Master Plan for a Period Up To 2030” Annex 2. List of new sewerage networks development works proposed by the government Annex 3. Certification of the Government of Djizzak city on screening of proposed new sewerage works and its translation Annex 4. Screening Checklist 3 1. Introduction 1.1 Project Background 1. ADB approved Djizzak Sanitation System Development project on 8 September, 2015 for SDR 53.99 million (to date, the loan’s equivalent in USD is 74.59 million). The total project cost is $96.56 million equivalent, inclusive of taxes and duties, and financial charges during implementation. The Loan and Project Agreements were signed on 12 November 2015. The loan became effective on 26 February 2016. The project is designed for five years of implementation with targeted physical completion of 26 April 2021 and loan closing date of 31 October 2021. The executing agency is the Communal Services Agency under the Ministry of Housing and Communal Services of Uzbekistan, and the implementing agency is the State Unitary Enterprise “Suvokova” (Water Supply and Sewerage Company) of Djizzak Province, which is responsible for the day-to- day management of project activities. 2. The project impact is improved living standards, environment, and public health in Djizzak city and Uchtepa urban village and the expected outcome is improved and expanded access to reliable, sustainable and affordable water supply and sanitation services in Djizzak city and the nearby Uchtepa urban village. Responding directly to the needs of urban communities, the project will upgrade and expand the existing sewerage system, provide wastewater treatment services, strengthen institutional capacity, and assist with the development of provincial water supply and wastewater utility. 3. The project is categorized as “C” for resettlement and “B” for the environment as per SPS 2009. All safeguards documents have been duly endorsed and posted on the ADB and EA’s websites. The EA shall assure that the design, construction, and operation and maintenance of the facilities under the project will be carried out in accordance with ADB SPS, 2009, applicable laws and regulations of Uzbekistan. 1.2. Scope of the Project 4. The project has two outputs: Output 1 – Wastewater management system improved in Djizzak city and Uchtepa urban village; and Output 2 – Institutional capacity of the
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