51240-001: Second Tashkent Province Water Supply

Land Acquisition and Resettlement Plan (LARP)

Document Stage: Updated Project Number: 51240-001 Date: June 2020

UZB: Second Tashkent Province Water Supply Development Project

Subproject “Construction and Rehabilitation of Transmission Mains from VU-1 to VU-3”

Prepared by “Kommunhizmat” Agency Project Coordination Unit for the Asian Development Bank. This is an updated version of the draft originally posted in June 2018 available on https://www.adb.org/projects/51240-001/main#project-documents.

This Land Acquisition and Resettlement Plan 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. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Abbreviations

ADB - Asian Development Bank AP - Affected Person AH - Affected Household CC - Civil Code CPR - Common Property Resource CPS - Country Partnership Strategy CSA - “Kommunhizmat” Agency under the Ministry of Housing and Communal Services DMS - Detailed Measurement Survey DP - Displaced Person EA - Executing Agency FGD - Focused Group Discussion GAP - Gender Action Plan GFP - Grievance Focal Point GRM - Grievance Redress Mechanism HH - Household ha - Hectare IA - Implementing Agency IOL - Inventory of Losses IP - Indigenous Peoples LAR - Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan LC - Land Code MOF - Ministry of Finance OCC - Operational Control Center O&M - Operation and Maintenance PCU - Project Coordination Unit PMC - Project Management Consultant PPTA- Project Preparatory Technical Assistance RoW - Right of Way SCLRGCSC - State Committee on Land Resources, Geodesy, Cartography and State Cadastre SPS - Safeguard Policy Statement TC - Tax Code ToR - Terms of Reference TPS - Tashkent Provincial “Suvokova” UZS - Uzbek Som WDC - Water Distribution Center WT - Water Tower

CURRENCY EQUIVALENTS (As of 1 June 2020) Currency Unit = Sum (UZS) $1.00 = UZS 10137.77 (ADB Book Rate) NOTE In this report, i. “$” refers to United State Dollars (USD) ii. UZS refers to Uzbekistan Som

GLOSSARY Affected Persons Affected persons (APs) are the members of the affected households who experience full or partial, permanent or 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. Although this definition of affected persons is at variance with the usage in the SPS-2009, this is how it is understood and officially used in Uzbekistan, and it is not different from ‘displaced person’ defined in the SPS-2009. Affected A household consists of one or more people who live in the same dwelling Household and also share at meals or living accommodation and may consist of a single family. In the project, household is the unit for compensation and all the members in a household are considered as affected persons. Compensation Payment for an asset to be acquired or affected by a project at replacement cost. Cut-off-date The date after which people will not be considered eligible for compensation i.e. they are not included in the list of AHs as defined by the census. If the country expropriation law does not specify a cut-off date, normally, the cut-off date is the start date of the detailed measurement survey which will be based on the detailed and final engineering design. Economic Loss of land, assets, access to assets, income sources, or means of Displacement 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 The range of measures comprising cost of 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. Inventory of The inventory of assets getting affected by a project. Losses Illegal/Non HHs that are not registered for their business, agriculture, residential recognizable assets and orchard and those who have no recognizable rights or claims to the land that they are occupying and include people using private or state land without permission, permit or grant i.e. those people without legal lease to land and/or structures occupied or used by them. ADB’s SPS explicitly states that such people are entitled to compensation for their non- land assets. Hokimiyat 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 acquisition all or 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. Land Use rights According to Land Code (article 17) real persons (can have the land plot under the right of lifelong inheritable possession and land parcel use transferred as descent. This right is given to individual residential housing construction and collective gardening and vineyard (orchards), peasant farms. Juridical persons (enterprises, stores, and business) can possess 3

land parcels according to the right to permanent possession, permanent use, temporary use, lease and property. In two above cases when person wants to sell the Property (land and building), he will sell the building & structure and subsequently land parcel will be sold as an attachment (right is being sold). Leaseholder Juridical person (farm) running agricultural production with the use of land parcels granted to him on a long-term lease. Lease term is limited up to fifty years but not less than for ten years. Leaseholder cannot sell, buy, or mortgage the lease rights, donate, or exchange the land. Low Income Low-income households are classified as households where the monthly per capita income is less than US$ 2 per capita per day). Makhalla Is a local level community-based organization recognized official by the GoU that serves as the interface between state and community and is responsible for facilitating a range of social support facilities and ensuring the internal social and cultural cohesiveness of its members. Mahalla leaders are elected by their local communities. Meaningful A process that (i) begins early in the project preparation stage and is Consultation carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. Replacement Replacement cost is the cost that can replace a lost asset. It is a principle cost to be complied with in compensating for lost assets. The calculation of replacement cost 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. Severely Affected Severely affected households are those that lose 10% or more of their Households productive assets (income generating) or being physically displaced from housing. Significant impact 200 persons or more will experience major impacts, which are defined as; (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating). Vulnerable Low-income households, female-headed households, the elderly headed Households household, households having physically challenged persons, households without title to land. Maslahatchi Specialist on work with people and informational, religious, mental, ethical (Makhalla and educational advisor advisors)

CONTENTS GLOSSARY ...... 3 EXECUTIVE SUMMARY...... 8 1. INTRODUCTION AND PROJECT BACKGROUND ...... 12 1.1 Overview and Background of the Project ...... 12 1.2 Project Components ...... 12 1.3 Scope of the Resettlement Plan ...... 14 2. SCOPE OF LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT ...... 15 2.1 General ...... 15 2.2 Approach and Methodology of Impact Evaluation ...... 15 2.3 TEMPORARY IMPACT ...... 15 2.4 Affected Land Parcels ...... 15 2.5 Loss of Crops due to Land Acquisition ...... 16 2.6 Loss of Trees ...... 16 2.7 Impacts on income sources ...... 16 2.8 Summary of Impacts ...... 16 3. SOCIO ECONOMIC INFORMATION AND PROFILE ...... 18 3.1 General ...... 18 3.2 Affected Persons ...... 18 3.3 Gender disaggregation of affected persons ...... 19 3.4 Age and marital status of affected persons ...... 19 3.5 Education level of APs...... 19 3.6 Occupation Pattern of the Affected Persons ...... 19 3.7 Loss of Trees ...... 20 4. INFORMATION DISCLOSURE, CONSULTATIONS AND PARTICIPATION ...... 21 4.1 General ...... 21 4.2 Methods of Consultations ...... 21 4.3 Public Consultations ...... 21 4.4 Findings of the Public Consultations ...... 22 4.5 Future Consultations Strategy ...... 22 4.6 Disclosure...... 22 5. GRIEVANCE REDRESS MECHANISMS ...... 23 5.1 Objectives ...... 23 5.2 Grievance Redress Mechanism (GRM) ...... 23 5.3 GRM Records and Documentation ...... 24

6. POLICY AND LEGAL FRAMEWORK ...... 26 6.1 General ...... 26 6.2 Laws, Regulation and Provision relating to LAR in Uzbekistan ...... 26 6.2.1 The Constitution of the Republic of Uzbekistan ...... 26 6.2.2 The Land Code of the Republic of Uzbekistan ...... 26 6.2.3 Civil Code of the Republic of Uzbekistan ...... 27 6.2.4 Resolution of Cabinet of Ministers “About the Measures of Improvement the Order of Provision of Land Plots for Implementation of Urban Development Activity and for Other Non-Agricultural Needs” ...... 28 6.2.5 The Cabinet of Ministers Resolution “On additional measures to improve the procedures for provision of compensations for the withdrawal and provision of land plots and provision of the guarantee of the property rights of individuals and legal entities” dated 16 November 2019 #911 ...... 29 6.2.6 Resolution of the Government of Uzbekistan “On Measures on Improvement Efficiency of Preparing and Implementation of Projects funded by International Financial Institutions and Foreign Governmental Financial Organizations” ...... 29 6.2.7 Resolution of the Government of Uzbekistan “About Approval of the Procedure of Accumulating and Use of Funds of Centralized Stocks for Compensation of Damages to Individual Persons and Legal Entities Due to Acquisition of Lands for Public Needs” ...... 29 6.2.8 Construction Standard and Rules No. KMK 2.10.03-97 ...... 30 6.2.9 Resolution of the President of Uzbekistan “About the Measures for Basic Improvement of Investment Climate in the Republic of Uzbekistan” ...... 30 6.2.10 The Law “On Valuation Activity” ...... 31 6.3 ADB Involuntary Resettlement Safeguard Policy review ...... 31 6.4 Comparison of Policies ...... 33 6.5 Core LAR Policy Principle for the Project ...... 36 6.6 Methodology used for determining valuation and compensation rates ...... 37 6.7 Land Acquisition / Requisition Process ...... 38 7. ENTITLEMENT, ASSISTANCE AND BENEFITS ...... 40 7.1 Eligibility ...... 40 7.2 Cut-off-Date ...... 40 7.3 Entitlement Matrix ...... 40 8. RELOCATION AND INCOME RESTORATION ...... 42 8.1 General ...... 42 9. RESETTLEMENT BUDGET AND FINANCING PLAN...... 42 9.1 General ...... 42 9.2 Summary Budget ...... 45

10. INSTITUTIONAL ARRANGEMENTS ...... 46 10.1 General ...... 46 10.2 Executing Agency (EA)...... 46 10.3 Project Management Consultant (PMC)...... 46 10.4 Project District Hokimiyats (Local Governments) ...... 46 10.5 Self-Government Representatives ...... 47 10.6 Valuation Firms ...... 47 11. IMPLEMENTATION SCHEDULE ...... 48 11.1 General ...... 48 11.2 LARP Implementation Stage ...... 48 11.3 Implementation Schedule ...... 48 12. MONITORING AND REPORTING ...... 50 12.1 Overview and Objective ...... 50 12.2 Internal Monitoring ...... 50 12.3 Internal Monitoring Indicators ...... 50 12.4 Reporting ...... 51

EXECUTIVE SUMMARY i. Subproject Description

1. This land acquisition and resettlement plan (LARP) is prepared for the subproject “Construction and Rehabilitation of Transmission Mains from VU-1 to VU-3” under the "Second Tashkent Province Water Supply Development Project'' financed by the Asian Development Bank (ADB). A draft LARP for the entire project was prepared at the project feasibility stage in 2018, based on a preliminary lines route alignment that was concurred with ADB and posted on the ADB as well as the EA’s websites. Since then, detailed design of the facilities under the project is being developed in phases. This LARP for the aforementioned subproject is developed from the feasibility stage LARP, based on the detailed design of the subproject and the detailed measurement survey (DMS). Land for permanent acquisition for the subproject has been identified and the sites have been finalized. The subproject is located in the districts of Yangiyul, Chinaz and a very small part of Zangiata district of Tashkent Province adjacent to Yangiyul district that is designed to improve the water supply system. This subproject pertains to the physical component of construction of 17 km transmission main D=800-500 from the ground water wellfield VU-1 to the water distribution center VU-3.

2. The draft LARP for the entire project prepared at the feasibility stage is proposed to be split into several subproject LARPs, depending on the detailed design development. In addition to this subproject LARP, it is proposed to prepare a LARP for the construction of other part of a 65-km transmission main and another for the construction of water distribution centers (WDC) and water towers (WT) under the project. It is also proposed to prepare a social due diligence report (SDDR) for components that have no resettlement impacts (such as, reconstruction of two existing administrative buildings, installation of monitoring devices as part of the Operation Control Centre, setting up of a project information center, installation of Operation Control System, setting up of a training center in one of the existing facilities of TPS, etc.), when the detailed design for these are ready, to reconfirm the initial assessment made during the feasibility stage LARP preparation, before contracts for these are awarded and construction commences. ii. Project Components

3. The main physical components of the water supply network system are described as below. (i) Rehabilitation of the groundwater wellfield VU-1 (ii) Construction and reconstruction of 22 water supply facilities including: • Construciton of 7 new water distribution centers; • Reconstruction of 10 existing water distribution centers; • Construction of 5 new water pressure towers; (iii) Construction of a 65 km transmission main from the ground water wellfield VU-1 to the Chinaz city, including: • 17 km transmission main D=800-500 from the ground water wellfield VU-1 to the water distribution center VU-3; (this LARP) • 41 km of main D=600 mm from the water distribution center (WDC) “VU-3” to the water distribution center WDC “Kutarma”; • 7.2 km main D=400 mm from the WDC Kutarma to WDC Chinaz; (iv) Construction of 27.3 km of 400 to 100 mm distribution mains connecting off-takes in the transmission main to WDCs and water towers; (v) Construction and replacement of about 534 km of water distribution networks with D=250 to 100 mm;

(vi) Installation of about 38,000 house connections with water metering. iii. Impacts

4. The subproject “Construction and Rehabilitation of Transmission Mains from VU-1 to VU-3” has temporary impacts in terms of land requisition from the affected - 6 farmers in Yangiyul district - 1 farmer in Zangiota district

5. During the census exercise in April–May 2020 subsequent to the detailed design, all proposed affected farmers were notified of requisition of agricultural land on a temporary basis as a result of the project. The total number of APs covered under this subproject is 7.

6. Land requisition under this subproject includes the temporary loss of 12.188 hectares of agricultural land temporarily needed during construction, which will lead to a loss of crops for one season due to the construction and reconstruction of main pipelines.

7. Evaluation of crop yield and trees losses along the right-of-way of the trunk main was developed in accordance with the accepted right-of-way width (12 m). Crop yield and trees losses have been calculated and compensation calculated by a licensed valuer following the country’s relevant legal requirement.

8. Based on the final subproject design, it is confirmed that there will be no permanent land acquisition and no physical displacement in this subproject. iv. Affected Households and Persons

9. Farmlands (leased) in Yangiyul and Zangiota districts will be affected under this subproject due to temporary land restriction, mainly for people who will be losing access to less than 10% of their income generating productive land. There are agricultural laborers who are employed by the farms. However, the laborers will not lose their income due to the temporary land requisition; they will continue their work in these farms, as the affected lands are less than 10% of the leased lands. Besides, the laborers are all seasonal workers picked up from the labor market based on specific needs and they are not fixed to any particular land lease holder. v. Consultations

10. Consultations were carried out with the affected farmers at early stages of project preparation, i.e., during the feasibility study, especially during preparation of the draft LARP. Most of the people in the area are aware about of the project and supported the project.

11. Consultations for this subproject LARP development were carried out with the affected 7 farmers during the census exercise after the detailed design completion. Information on the project design, containing information on project implementation plan, compensation, assistance, eligibility, entitlement, grievance redress mechanism, implementation schedule etc., were translated into the local languages (Russian and Uzbek) and distributed to the affected persons during public consultations. This exercise ensured that the affected people and other stakeholders are informed, consulted and allowed to participate in project preparation and implementation.

12. Consultation meetings with farmers were conducted at different periods in 2020 after the detailed design completion - on 7 February 2020 with Zangiata farmer (on field), on 10 March 2020 in Zangiata Hokimiyat, on 18 March 2020 meeting with farmers in Yangiyul Hokimiyat, on 12 May meeting with the head of agricultural department of Zangiata Hokimiyat,

9 on 19 May meeting with farmers in Yangiyul district Hokimiyat and field visit. The purpose was to provide consultations regarding compiling the documents for receiving compensation due to temporary land acquisition. Meetings were held in district Hokimiyats and at sites where trunk main is to be constructed (on farmlands). There were group meetings and individual consultations.

13. Consultations will be continued throughout the project cycle. The project information dissemination will be made through the disclosure of this resettlement planning document. Copies of the final LARP will be disclosed on the ADB website (in English) and in the website of EA (in Russian language) upon approval, while relevant information from this will be disclosed to the affected persons through consultations. vi. Grievance Redress Mechanism (GRM)

14. A grievance redress mechanism is established at the project level by co-opting the local grievance redress mechanism according to the law, to allow affected persons appealing any disagreeable decision, practice or activity arising from land or other assets compensation. APs were fully informed of their rights and of the procedures for addressing complaints, whether verbally or in writing during consultation, surveys, and time of compensation. The project level grievance redress mechanism shall not impede an aggrieved person’s access to the country’s judicial or administrative remedies. The aggrieved persons can approach a court of law at any time and independent of the project level grievance redress process. CSA ensures that grievances and complaints on any aspect of the land acquisition, compensation, and resettlement are addressed in a timely and satisfactory manner. CSA and its PCU keep records of complaints received for its use and monitoring as well as for review by ADB during regular supervision missions. vii. Legal Framework and Compensation Eligibility

15. The legal and policy framework of the project is based on national laws and regulations related to land acquisition and compensation policy in Uzbekistan, and ADB’s Safeguard Policy Statement 2009 (SPS). Based on the analysis of applicable laws and policies and ADB’s involuntary resettlement policy requirements, project related land acquisition and resettlement (LAR) principles have been adopted.

16. The APs entitled for compensation or at least assistance provisions under the Project are (i) All APs losing land either covered by legal title/traditional land rights, legalizable, or without legal status; (ii) Tenants and sharecroppers whether registered or not; (iii) Owners of buildings (as and when applicable), crops, plants, or other objects attached to the land; and (iv) APs losing business, income, and salaries.

17. Compensation eligibility is limited by a cut-of-date of registration of the AP, which marked the beginning of the final census of the AP during a detailed assessment survey. These dates are: 10 March 2020 - the cut-off-date for Zangiota district, 18 March 2020 - for Yangiyul district. The latest accounting date for the APs entitled to compensation has been communicated to the APs by the Executive Agency before the start of the final census. They are also notified that AP who settle in affected areas after the deadline will not be eligible for compensation. However, they will be notified prior to construction. All compensation will be based on replacement cost. Allocation of land under the project will not lead to any physical movements and therefore, within the framework of this project, the movement of people will not be required. viii. Budget

18. The land acquisition and resettlement cost estimate for the project includes eligible compensation and support cost for LARP implementation as per the entitlement matrix. Compensation by the project (this subproject) will include compensation for trees and crops and other associated assets, if any. The total estimated cost of land acquisition and resettlement for Subproject is UZS 34,571,130.00 (thirty-four million five hundred seventy- one thousand one hundred thirty Uzbek Soums) (equivalent to USD 3,410.0). This includes 10% of contingency to meet any additional cost that may be incurred during the LARP implementation. The EA ensures that necessary fund allocation is done so that compensation is paid in a timely matter. ix. Institutional Arrangement

19. “Kommunhizmat” Agency as an executing agency (EA) is responsible for implementation of the "Second Tashkent Province Water Supply Development Project (STPWSDP)" with due participation and coordination from Tashkent Provincial “Suvokova” (TPS), which is acting as the implementing agency (IA) related to construction. However, the EA is responsible for the LAR activities. A Project Coordination Unit (PCU) is created in “Kommunhizmat” Agency, and it is responsible for overall implementation including LAR activities of the Project. The PCU has a social and resettlement specialist who is responsible for social, gender and resettlement issues and activities. This specialist is responsible for ensuring that all the activities related to land acquisition and involuntary are being followed and implemented in accordance with Uzbekistan's legislation and policies and ADB's SPS, 2009. The social and resettlement specialist in the PCU ensures that the draft LARP prepared under the Project Preparatory Technical Assistance (PPTA) during feasibility study is finalized/updated during detailed design and implemented prior to start of civil work.

20. The PCU will be supported by a Project Management Consultant. The Project Management Consultant (PMC) will have social and resettlement specialist in its contract to support the PCU. However, the PMC for this Project is not hired yet. It is in the selection process at the time of preparing this subproject draft LARP.

21. There are several other government agencies that also are responsible for the LAR activities such as (i) Provincial / District Governments (Hokimiyats) and (ii) Goskomzemgeodezcadastre (State Committee on Land Resources, Geodesy, Cartography and State Cadastre (SCLRGCSC) at district level. There are also local government bodies’ representatives of APs to be involved in to the LARP preparation. x. Implementation Schedule and Monitoring

22. The time for implementation of the LARP is scheduled as per the overall project implementation schedule. All activities related to land requisition are planned to ensure that compensation is paid prior to commencement of civil works. As a matter of practice, public consultation, monitoring, and grievance redress are being undertaken intermittently throughout the project duration. The implementation of LARP is closely monitored, which is the responsibility of the EA.

1. INTRODUCTION AND PROJECT BACKGROUND

1.1 Overview and Background of the Project 1. This updated Land Acquisition and Resettlement Plan (LARP) has been prepared for the Subproject “Construction and Rehabilitation of Transmission Mains from VU-1 to VU-3” under the "Second Tashkent Province Water Supply Development'' project financed by the Asian Development Bank (ADB) and which includes construction and reconstruction of water intake and supply facilities, water transmission mains and water distribution networks in rural and urban settlements of Yangiyul and Chinaz districts of Tashkent Province of the Republic of Uzbekistan and a very small part of Zangiata district adjacent to Yangiyul district and connected to water supply system of this district. 2. The proposed project is being implemented in accordance with the Decree of the Cabinet Ministers of Uzbekistan No.516 dated 20.06.2019 “On measures for implementation of the Second Tashkent Province Water Supply Development Project funded by Asian Development Bank”. The project has been designed to address the water supply shortage, quality and operational maintenance issues in Yangiyul and Chinaz districts of Tashkent Province. Alternative technical options were analyzed and the optimum design solution for drinking water supply system was identified based on efficiency of investment and operational expenditures and reduction of social and environmental impacts. 3. Practically all large and small groundwater production units in the twodistricts function at regimes significantly less than designed. Due to lack of maintenance, distribution systems are becoming progressively obsolete and need repairs. Chlorination systems either do not function or even exist in the smaller groundwater production systems, while many of the larger systems need substantial rehabilitation or replacement. Water production headworks, transmission and distribution facilities within the two districts increasingly face obsoletion due to maintenance deficiencies. Consequently, non-revenue water is estimated to be high.

1.2 Project Components 4. The main physical components of the water supply network system are described as below and the layout of the system is depicted in Figure 1. (i) Rehabilitation of the groundwater wellfield VU-1 including: (ii) Construction and reconstruction of 22 water supply facilities including: • Construciton of 7 new water distribution centers; • Reconstruction of 10 existing water distribution centers; • Construction of 5 new water pressure towers; (iii) Construction of a 65 km transmission main from the ground water wellfield VU-1 to the Chinaz city including: • 17 km transmission main D=800-500 from the ground water wellfield VU-1 to the water distribution center VU-3; • 41 km of main D=600 mm from the water distribution center (WDC) “VU-3” to the water distribution center WDC “Kutarma”; • 7.2 km main D=400 mm from the WDC Kutarma to WDC Chinaz; (iv) Construction of 27,3 km of 400 to 100 mm distribution mains connecting off-takes in the transmission main to WDCs and water towers as well as; (v) Construction and replacement of about 534 km of water distribution networks with D=250-100 mm; (vi) Installation of about 38,000 house connections with water metering. 5. Physical components and required physical work for distribution system development will require the acquisition of land, estimated to be 4 ha, including 3.14 in Yangiyul district and

0.86 ha in Chinaz district as per input received from technical team and are presented in Table 1. Table 1. Summary of Project Components Requirement of Type of Works # Project Components Permanent Land Required Acquisition Yangiyul district 1 Ground Water Intake Facility “VU-1” Rehabilitation No 2 Water Distribution Center (WDC) “VU- Rehabilitation No 3 3WDC” Khalkabad Rehabilitation No 4 WDC Chinor * Rehabilitation No 5 WDC Nurabad New construction Yes, 0.8 ha 6 WDC Bobur New construction Yes, 0.7 ha 7 WDC Shuralisay New construction Yes, 0.7 ha 8 WDC Okhunbabaev New construction Yes, 0.7 ha 9 WDC Boz Suv New construction No 10 Water Tower (WT) Galaba New construction Yes, 0.06 ha 11 WT Kanalbuyi New construction Yes, 0.06 ha 12 WT Yangiabad New construction Yes, 0.06 ha 13 WT Dustlik New construction Yes, 0.06 ha Chinaz district 1 WDC Eshonabad Rehabilitation No 2 WDC Sutbulok Rehabilitation No 3 WDC Madaniyat Rehabilitation No 4 WDC Amir Temur New construction Yes, 0.8 ha 5 WDC Gayrat New construction No 6 WDC Yangiobod Rehabilitation No 7 WDC Kutarma Rehabilitation No 8 WDC Yallama Rehabilitation No 9 WDC Chinaz Rehabilitation No 10 WT Uzumzor New construction Yes, 0.06 ha * This facility is located in Zangiata district and connected to and served by water supply system of Yangiyul district.

Figure 1. Layout of the Trunk Main to be Rehabilitated/Constructed

1.3 Scope of the Resettlement Plan 6. This LARP for the subproject addresses the extent of temporary impacts caused by land requisition for the construction of trunk main. The LARP identifies compensation requirements for the temporarily affected persons (APs). 7. The final design is complete and the land for temporary acquisition has been identified for the construction of trunk main. (Annex 1) 8. The decision of Yangiyul district Hokim (Mayor) on the requisition of land for trunk main construction was issued on 20 December 2018. (Annex 1) 9. The Decision of Zangiota district Hokim, No.162, on requisition of land for trunk main construction was issued on 27 January 2019. (Annex 1) 10. On June 20, 2019, the Decree of the Cabinet of Ministers of the Republic of Uzbekistan No.516 was issed “On measures for implementation of the Second Tashkent Province Water Supply Development Project funded by Asian Development Bank” (Appendix 1). 11. In addition to this LARP, it is proposed to prepare a LARP for the remaining part of the construction of a 65-km transmission main and another for the construction of water distribution centers (WDC) and water towers (WT) under the project. It is also proposed to prepare a social due diligence report (SDDR) for components that have no resettlement impacts (such as, reconstruction of two existing administrative buildings, installation of monitoring devices as part of the Operation Control Centre, setting up of a project information center, installation of Operation Control System, setting up of a training center in one of the existing facilities of TPS, etc.), when the detailed design for these are ready, to reconfirm the initial assessment made during the feasibility stage LARP preparation, before contracts for these are awarded and construction commences.

2. SCOPE OF LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT

2.1 General 12. It is noted up-front that this subproject does not require any land acquisition for its implementation; there is only temporary land requisition. The impacts due to land requisition are temporary. 13. The component comprising the subject matter of this LARP includes only temporary impacts due to restrictions on land use, temporarily required for the construction that will result in the loss of crop yield for one season due to construction of trunk main. Approximate width of right-of-way for the trunk main was accepted as 20-28 meters on plain agricultural area, and the width is minimized in the inhabited districts. An evaluation for the trunk main was carried out based on the affected lands as well as the census carried out on the affected farmlands.

2.2 Approach and Methodology of Impact Assessment

14. In order to accurately assess the impacts of temporary land use restriction, the following activities have been undertaken: ▪ Determining the affected lands: Based on the detailed design, the list of affected assets/lands was developed considering the documents on land requirement issued by the Hokimiyats and cadastral office. The data were verified on the sites when carrying out the measurement and census. ▪ Inventory of Losses / Detailed Measurement Survey (DMS) is aimed to measure the size and type of farmlands and other assets which will be affected by temporary land requirement. The data on the affected crops and trees are based on documents on temporary land requirement and later were verified at site by conducting inventory survey (detailed measuring survey); ▪ AP census was carried out among the affected farmlands lease holders who are temporarily affected due to the construction of transmission and distribution main/ pipe line; ▪ Consultations with all project stakeholders, including APs (farmers), governmental agencies and other affected parties, such as, Hokimiyat and Mahalla committees; ▪ Estimation of compensation rates based on the approved entitlement matrix for compensation to farmers affected due to temporary land requirement.

2.3 TEMPORARY IMPACT

15. The project has a temporary impact on 12.188 hectares of agricultural land belonging to 7 farmlands lease holders, which they received from the government under a long-term rent agreement. Of these, 6 farmlands are in Yangiyul district and 1 in Zangiata district.

2.4 Affected Land Parcels

16. The affected lands are classified into two types, such as, arable/crop lands and orchards. Out of total 12.188 ha of the affected lands, 11.188 ha (92%) are arable/crop lands and 1 ha (8%) are orchards. 17. After pipe laying, the land will be handed over to the hokimiat (which will be returned to farmers) in restored form to continue agricultural activities. The Contractor is responsible for the restoration of the temporarily used land. 18. As stated before, the quantum of land loss due to temporary requisition for the project construction is negligible in proportion to the size of land lease of the farmers. The following table shows the land holding size of each of the 7 temporarily affected farmers and the 15 quantum of their temporary loss and the percentage of their temporary loss, which is 1.5% at maximum and 0.31% at minimum, or 1% on average of the total land lease size of a farmer. Table 2: Land Lease Size and the Quantum of Temporary Loss Number Size of Percentage of Size of land temporary of loss Districts Farmer ID Affected lease (ha) land loss Farmers (ha) 1 Yangiyul 6 Y-T-1 138.28 1.344 0.97 % Y-T-2 72.82 0.816 1.1 % Y-T-3 96.02 1.44 1.5 % Y-T-4 313.14 3.60 1.1 % Y-T-5 108.21 0.42 0.39 % Y-T-6 1300.00 4.068 0.31 % 2 Zangiota 1 Z-T-1 36.35 0.50 1.38 % TOTAL 7

2.5 Loss of Crops due to Land Acquisition

19. Based on the survey results it was found that various types of agricultural crops will be affected for one season due to the temporary land requisition. These are wheat, corn, lucerne/alfalfa and vegetables.

2.6 Loss of Trees

20. Only one orchard/vineyard (1 ha) – “Nurli Diyor” in Yangiyul district will be affected due to trunk main construction. After completion of construction, the land will be returned to the farmer and at the discretion of the farmer can be used for planting a garden in accordance with standards. On this affected land there are 500 vineyards. 21. The farmer has enough free land for planting similar fruit trees. The area on which the trees are lost is no more than 10% of the total area leased by farmers. A total of 500 vine bushes will be affected.

2.7 Impacts on income sources

22. The census exercise shows that there are 79 numbers of farming laborers who work on the affected lands for a living, of which 58 are men and 21 are women. These labourers are not expected lose their source of income or livelihood, as the 7 land lease holders will temporarily lose less than 10% of their productive assets and the farm laborers can continue their work on the remaining 90% of land area. Besides, these are seasonal agricultural laborers, who are hired during the crop planting/harvesting seasons and sometimes between these two seasons to weed and water crops, as needed. Such seasonal agricultural labourers are not hired on a permanent basis and may not be hired if it is clear that crops will be lost. It is confirmed that all agricultural laborers on the affected land plots are seasonal, and as stated above, they are not affected for any loss of livelihood due to the project. Generally, the seasonal laborers are picked up from the labor market by potential employers based on their needs.

2.8 Summary of Impacts

23. The farmers will be able to use the land after completion of the construction and will be able to use for crops, vineyards and trees, as the land, taken on a temporary basis, will be returned to the APs. The duration of the construction work in each section (excavation, compaction, pipelaying, backfilling, etc. works) is up to 1 year. The contractors are responsible

16 for ensuring that the land is restored to its original condition so that the APs can resume the agricultural activities. The following table summarizes the impacts.

Table 3. Summary Impacts Yangiyul Zangiata Type of impact district district 1 Number of affected persons (farmers) 6 1 2 Number of affected land parcels 6 1 3 Affected lands area (ha) 11.688 ha 0.50 ha 4 Area of the affected arable/crop land (ha) 10.688 ha 0.50 ha 5 Area of the affected land for orchards \yards (ha) 1 ha 0 6 Number of affected trees 500 0

3. SOCIO ECONOMIC INFORMATION AND PROFILE

3.1 General

24. In this section an analysis of the socio-economic field data collected during the census of the affected farms is presented, comprising the levels of education, livelihoods, income sources, poverty, and types of housing. 25. After obtaining the necessary overview maps confirming the affected farms and signing of the decision by the district khokims, a census was conducted. 26. The field work methodology included an inventory of losses, taking into account the census and socio-economic analysis of APs, which consisted of conversations and discussions with farm owners who were affected by the project (April-May 2020). 27. In this LARP, the census and socio-economic analysis covered 7 AP - farmers, who are temporarily affected by the construction of trunk main. One affected farmland is located in Zangiata district and 6 farmlands in Yangiyul district. 28. All 7 APs are farmers, which are considered as individual entrepreneurs. The farm income indicated in the tables below is the farmer’s net income, that is, AP (after paying salaries of seasonal labours and full-time employees and after payment of all taxes and excluding all kind of expenses). As such, the income of APs is more than the recognized poverty marker with more than $ 2 US per day ($ 60 per month). 29. According to the regulations the low-income families are classified by makhalla committees as families where the monthly per capita income is less than the equivalent of 52.7% of minimum wage. The new amount of the minimum wage since 1 February 2020 is UZS 679,330. Accordingly, the poverty line is UZS 358,007 (approximately US$ 1.26 per capita per day). 30. As such, no one of the 7 APs are considered as vulnerable person. No one of them qualifies to be low-income household, household headed by a woman, household headed by older people, or household with a physically-challenged member.

3.2 Affected Persons

31. The census and socio-economic survey of the APs were carried in April 2020, after the issuance of district Hokims’ decisions (Yangiyul and Zangiota districts). 32. The total number of people affected by the project is 7 people - farmers who, under the rent agreement, use the affected land for agricultural purposes. A summary of temporarily affected AP is provided in Table 4 below. 33. In this LARP, the census and socio-economic analysis covered 7 APs - farmers, who are temporarily affected by the construction of the trunk main. 34. During the detailed design stage census, the following ID numbers were issued to the farmers: Y-T – Yangiyul district temporary impact, Z-T – Zangiota district temporary impact.

Table 4. Affected Farms and ID numbers issued № ID Affected Farms Nature of impact 1 Y-T-1 farm "Arslon Asri" Temporary 2 Y-T-2 farm "Valiev Invest" Temporary 3 Y-T-3 farm "Gayratbek omad biznes" Temporary 4 Y-T-4 LLC "Agrover urugchilik" Temporary

5 Y-T-5 farm "Jamol ota" Temporary 6 Y-T-6 farm “Nurli Diyor" (optimized with farm "Kahramon Temporary hosilot", "Yangiyul lider agro fud", "Shohida orzusi" and JSS "Toshkent vino") 7 Z-T-1 farm “Firdavs agro" Temporary

3.3 Gender disaggregation of affected persons

35. All 7 affected persons (lease holders) are men.

3.4 Age and marital status of affected persons

36. As shown in table 5 below, the age distribution of the surveyed persons shows that the group aged 30-45 years is the most representative group. The average age of APs is 39 years (group 30-45 years). Table 5. Age and gender of APs

Men Women Total Age number % number % number % 16-25 - - - 26-35 2 29 % - 2 29% 36-45 4 57 % - 5 57 % 46-55 1 14 % - 1 14 % 56-65 - 66 and older - - - Total 7 100% - 7 100%

37. All APs are married - 100%.

3.5 Education level of APs

38. The general level of education is quite high among APs (Table 6). The largest part of APs has a secondary special / college (57%). 29% of the APs have higher education. Secondary education 14%. Table 6. Educational level of APs

Zangiota Yangiyul Total Education number % number % number % Not educated ------Primary ------Secondary - - 1 14% 1 14% Higher - - 2 29% 2 29% College - Secondary Specialized 1 14% 3 43% 4 57% Above University - - - - - Total 1 6 7 100%

3.6 Occupation Pattern of the Affected Persons

39. The main occupation of the affected people is the cultivation of crops and viniculture - 7 APs (100%). Six out of seven, which is 86% of farmers, grow wheat, corn and sunflower.

Four out of seven 57% are engaged in vegetable and gourds growing. Two out of seven 28% grow cotton. One of the farmers is engaged in viniculture, which is 14%. Table 7. Occupation Pattern of Affected Persons Agriculture, including: ID Vegetables Wheat, Corn and Viniculture Cotton and gourds Sunflowers Yangiyul Y-T-1. ✓ ✓ Y-T-2. ✓ ✓ Y-T-3. ✓ ✓ Y-T-4. ✓ ✓ Y-T-5. ✓ Y-T-6. ✓ ✓ Zangiata Z-T-1. ✓ ✓

3.7 Loss of Crops and Trees

40. During the pipe laying, crops will be lost or not sowed affecting 12.188 ha of land (Table 8) and the orchards / vineyards of a farm in Yangiyul district of 1 ha will be affected temporarily (Table 9). Table 8. Crop loss due to temporary land acquisition (for 1 year) District Total affected Types of main agricultural crops sown areas, (ha) 1 Yangiyul 11,688 Wheat, corn and sunflowers, cotton, viniculture, vegetables and gourds 2 Zangiata 0,50 Vegetables and gourds Total 12,188

Table 9. Affected orchards/vineyards

Total affected Number Type of ID Impact land, ha of trees trees Yangiyul district Y-T-6 1 500 Vineyards Temporary

4. INFORMATION DISCLOSURE, CONSULTATIONS AND PARTICIPATION

4.1 General 41. Consultations were carried out with the stakeholders, including: - Consultations were held with the hokimiyat staff (as a result of staff replacements) - informing about the project and the consequences of the project. - Together with the cadastral, agricultural departments and Suvokova, meetings were organized with affected farmers for a more detailed discussion of the affected land by the project. - Consultations were carried out with the temporarily affected people during the census and socio-economic survey. The meetings took place both in the district Hokimiyats and at the affected farmlands (directly at the farms), both as group meetings and individual consultations.

4.2 Methods of Consultations 42. Various methods were used for public consultation and participation with concerned stakeholders. Table 11. Method of Consultations

Stakeholders Purpose Method Zangiota and • Information on project for new • consultation Yangiyul district hokimiyat staff about the project Hokimiyats (replaced by positions and directly participating in project implementation) Affected persons • Discussion of what lands are affected, • Together with the - farmers what size, the time schedule of cadastral department construction. Information sharing and Suvokova about compensation for temporary consultations and land allotments. discussions • Opinions of the APs, search for solutions to reduce potential consequences. Affected persons • Census of AP, collecting information • Census and Socio- for socio-economic surveys. Economic Survey. • Collection of documents to determine • Individual consultations compensation

4.3 Public Consultations 43. Together with the cadastral department and TPS, meetings were organized with AP - farmers, for a more detailed discussion of the affected lands by the project: - Meeting with APs, field visit in Zangiata district – February 7, 2020. - Meeting with APs at the Hokimyat offce of Zangiata district – March 10, 2020 (cut-off- date notification). - Meeting with APs at the Hokimiyat of Yangiyul district – March 18, 2020 (cut-off-date notification). - Meeting with the Head of Water and Agricultural Department of Zangiata district Hokimiyat – May 12, 2020. - Meeting with affected farmers at Hokimiyat office and field visit – May 19, 2020. 21

- In view of the current restrictions on movement and visits to workplaces introduced in connection with the situation with the COVID-19 coronovirus infection, online consultations were conducted by telephone in April - May 2020. 44. During the census and socio-economic studies, consultations were held with the AP. The goal is a census, informing about the right to compensation, consultations regarding the collection of documents for calculating the compensation for temporary land requisition. The meetings took place both in the Hokimiyats of the districts and at the farmlands, both group meetings and individual consultations.

4.4 Findings of the Public Consultations 45. The affected persons are aware about of the project because of the preliminary technical surveys and route alignment surveys. Consultation is a non-stop process, where people learn more about the project during the detail design stage. The persons are supportive about the project as the people in the region do not have good and reliable drinking water supply and the improved drinking water supply will improve their health standard and will ease the burden of water crisis being faced by most of the people. The affected persons are willing to receive a cash compensation for losing trees and crops through bank transfer. People want to receive a notice before the commencement of works. Most of them prefer monetary compensation in case of temporary impact. All compensation related issues shall be fairly and clearly discussed with the affected persons.

4.5 Future Consultations Strategy 46. Consultation will be continued throughout all the project cycle.

4.6 Disclosure 47. Disclosure of relevant information to the affected farmers took place through consultations – both in-person and through telephone. The project information will be further distributed through the disclosure of the LARP. This updated LARP, once concurred with ADB, will be translated into the local languages (Uzbek and/or Russian) and after approval, copies will be submitted to each district Hokimiyats to be accesiible to the SPs. 48. The LARP will be posted on the ADB website in English and on the Executive Agency’s website in Russian or Uzbek after approval.

5. GRIEVANCE REDRESS MECHANISMS

5.1 Objectives

49. ADB’s IR safeguard policy requires an EA to establish a project specific grievance redress mechanism (GRM), with suitable grievance redress procedure to receive and facilitate resolution of affected peoples’ concerns, complaints, and grievances. A project level grievance redress mechanism has been established to allow the project affected persons appealing any disagreeable decision, practice or activity arising from land or other assets compensation or any issues related to the environment. APs have been fully informed of their rights and of the procedures for addressing complaints whether verbally or in writing during consultation, survey, and time of compensation. The project level grievance redress mechanism shall not impede access to the country’s judicial or administrative remedies. APs can approach a court of law at any time and independent of the project level grievance redress process. Along with the ADB requirements on development and approval of grievance redress mechanism by implementation of investment projects, grievance redress procedure in Uzbekistan is also regulated by the national legislation, in particular by the Law on the Appeals of Individuals and Legal Entities (#378, 03 December 2014).

5.2 Grievance Redress Mechanism (GRM)

50. The APs have the right to file complaints and queries on any aspect of land acquisition compensation and resettlement. The EA ensures that grievances and complaints on any aspect of the land acquisition, compensation, and resettlement are addressed in a timely and satisfactory manner. All possible avenues are made available to the APs to resolve their grievances at the project level. Under the proposed project level grievance mechanism, affected households may appeal any decision, practice or activity connected with the assessment or valuation of land or other assets, acquisition and compensation. APs have been made aware of the procedures they can follow to seek redress, including, if necessary, resort to the courts through the Government’s grievance redress mechanism. The APs can approach a court of law at any time and independent of the project level grievance redress process. At any stage of the GRM process, if an issue is not resolved or the applicant is not satisfied with the decision/resolution, an aggrieved person may submit their grievance to a local Economic Court at their cost, where decisions will be made in accordance with relevant national legislation. 51. The project grievance redress mechanism was disseminated via consultation meetings. The project coordination unit (PCU) of “Kommunhizmat” Agency has co-opted the locally available simple and accessible GRM. The GRM provides a number of avenues and levels for grievance resolution and appeals process. The following table presents proposed two levels of the project level GRM. Table 12: Grievance Redress Mechanism and Levels Level/Steps Process Level 1. TPS and District An aggrieved person applies to branches of TPS. After branches of TPS registration of complaints, the branch of TPS reviews nature/specificity of the complaint and forwards it to relevant party for resolving. In parallel, district branch of TPS informs EA about received complaint. Depending on nature of complaint it may go to Contractor, Land Cadaster department, Mahalla or district branch of Nature Protection Committee. In GRM implementation, the TPS branches are being assisted by PMC and PCU’s Social Specialists. At this level a complaint should be resolved within 2 weeks. The local branch of TPS informs the aggrieved person and PCU about undertaken measures. Usually, the district branch of TPS through the province TPS is 23

the entry point for receiving complaint or known as a grievance focal point (GFP). In case a complaint is submitted to the GFP, the GFP establishes a contact with the EA and its PCU, mahalla and other bodies such as village assembly of citizens, farmers councils of which AH are members and will try to resolve the issue within 15 days. APs also may submit their appeals to TPS through the following e-government sites: www.my.gov.uzor www.pm.gov.uz.

Level 2. Project In case the grievance was not redressed on the first stage or Coordination Unit and applicant is not satisfied with the decision made/solution, s/he EA can submit the grievance directly to the PCU in Tashkent. Thereafter, PCU in assistance with PMC specialists and representatives of TPS reviews the received grievance. In case the grievance is not related directly to the project, the further instance will be recommended to the applicant where s/he should apply for the decision making. The EA through its PCU on a regular basis checks with the GFP whether any complaint is received by GFP. The PCU, on receipt of a complaint from GFP or any other local bodies, immediately takes the following actions: • Informs the complainant within 7 days; • Establishes complaint handling team with members: Head of PCU, representatives from EA area representative office, district Hokimiyat: cadastral department and mahalla or village assembly of Citizens or/and farmer’s councils, or/and women association. The team is headed by one of the EA management staff designated for handling grievances of the project. • The team consults the complainant and gathers complainant’s concerns; • The team also takes advise from independent valuator (in case of grievances related to valuation); • All complaints will be resolved in 15 days, and in case additional details are required, a maximum of 30 days will be used to resolve and close the complaint. The EA through its PCU coordinator on a regular basis will check with the TPS whether any complaint is received by district branches. At this stage APs also may submit their appeals to EA through the following e-government sites: www.my.gov.uzor www.pm.gov.uz.

5.3 GRM Records and Documentation 52. PCU keeps record of complaints received for its use as well as for review by ADB during regular supervisions. The grievance mechanism applies equally to all affected households. When a reference is made to the Makhalla, it is the makhalla that the affected households’ orchards or farms are located in. The PCU is responsible for recording the complaint, the steps taken to address a grievance, minutes of the meetings, and preparation of a report for each complaint. The complaint handling process will be reported to ADB through project implementation report. Procedure and steps of grievance redress mechanism is depicted in Figure 2.

Figure 2. GRM steps

Affected Persons

Level 1. District Grievance addressed Branch of Suvokova

If grievance is not addressed in 2 weeks

Level 2. PCU of EA Grievance addressed

Economic Court (Affectedpersons can apply to economic court if problem is not solved at level 1 and level 2. Affected persons can apply to economic court during the process of grievance redress process independent of GRM. The grievance redress mechanism should not impede access to the countries judicial or administratives mechanisms

53. During the detailed design of the project (this component) there was not a single complaint.

6. POLICY AND LEGAL FRAMEWORK

6.1 General 54. The legal and policy framework of the Project is based on national laws and legislations related to land acquisition and compensation policy in Uzbekistan and ADB’s Safeguard Policy Statement 2009 (SPS). Based on the analysis of applicable laws and regulations and ADB’s IR policy requirements, the project related LAR principles have been adopted. There have been many laws and regulations in Uzbekistan since its Constitution in 1992 related to compensation for involuntary resettlement. The relevant ones are discussed here.

6.2 Laws, Regulation and Provision relating to LAR in Uzbekistan

6.2.1 The Constitution of the Republic of Uzbekistan 55. The Constitution of the Republic of Uzbekistan adopted on 08.12.1992 with the latest amendment on 05.03.2019 provides that: - everyone shall have the right to own property (Article 36). The economy of Uzbekistan, evolving towards market relations, is based on various forms of ownership. The state shall guarantee freedom of economic activity, entrepreneurship and labour with due regard for the priority of consumers’ rights, equality and legal protection of all forms of ownership (Article 53); - an owner, at his discretion, shall possess, use and dispose of his property. The use of any property must not be harmful to the ecological environment nor shall it infringe on the rights and legally protected interests of citizens, juridical entities and the state (Article 54); - the land, its mineral resources, waters, fauna and flora, other natural resources shall constitute the national wealth and shall be rationally used and protected by the state (Article 55). 56. The Constitution guarantees the rights of its citizens and their equality before the law. In accordance with the Constitution, all citizens of Uzbekistan have equal rights and freedoms and are equal before the law without distinction of sex, race, nationality, language, religion, social origin, convictions, personal or social status (Article 18).

6.2.2 The Land Code of the Republic of Uzbekistan 57. The Land Code of the Republic of Uzbekistan was adopted on 30.04.1998 with the latest amendment of 15.11.2019. The code regulates the issues of withdrawal and provision of land plots for non-agricultural needs, compensation of losses of agricultural production, defines ownership and rights on land. It describes responsibilities of different state authorities of Uzbekistan related to land management; rights and obligations of land possessor, user, tenant and owner; land category types, land acquisition and compensation, resolution of land disputes and land protection. The Land Code also defines the terms of rights termination on land plot, seizure and land acquisition of land plot for state and public needs, and terms of seizure of land plot in violation of land legislation. 58. According to the Land Code of the Republic of Uzbekistan, all land in Uzbekistan is state property and permits for use of land are granted and monitored by the State through the district and province administrations. National legislation envisages the following types of land transfers: for use, lease, or ownership by legal entities (only with objects of trade and services infrastructure), and for lifelong inheritable ownership (with housing), use, or lease by individuals. While all land transactions are subject to state regulation some transactions occur with special permission of the state. The laws and procedures for expropriating agricultural and urban land are treated differently under Uzbek Law. While agricultural land issues are covered and treated under the Land Code, urban land issues are covered under the Civil Code, the Housing Code, and the Urban Construction Code. 26

59. The Land Code identifies several categories of land users, who are eligible for compensation for losses and damages in connection with land acquisition: • Land tenants – citizens who were allocated land plots for individual housing construction and/or dehkan farming on the basis of life-long tenure • Lessees (leaseholders) – farmers, who were allocated land plots for agricultural production purposes, on the basis of a long-term lease • Land owners – users of land plots occupied by trade and services infrastructure, which are used as private property. Land, occupied by trade and services infrastructure, however, may not be sold separately from the latter • Land users – all other enterprises, organizations and institutions, which are entitled to use non-agricultural lands. This is the largest category, which includes enterprises and institutions of all types (private and public). Examples include hospitals, schools, private enterprises, and factories. 60. The land legislation envisages compensation for damages to land users in full, including lost profits, in the following instances: (a) seizure, purchase or temporary occupation of land; (b) limitation of the rights of users; (c) deterioration of land quality due to the effects of construction works, servicing, and other activities that lead to reductions in the quantity or quality of agricultural products. According to the legislation, compensation for loss of agricultural production is not provided if: (i) land is acquired for the construction and servicing of individual housing; (ii) land is acquired for the construction of schools, boarding-schools, orphanages, preschool and healthcare establishments; and (iii) land was allocated for water management purposes and for the construction of irrigation and water related facilities.

6.2.3 Civil Code of the Republic of Uzbekistan 61. The Civil Code of the Republic of Uzbekistan was approved by the Laws of the Republic of Uzbekistan No.163-I dated 21.12.1995 and No.256-I dated 29.08.1996 with the last amendments of 15.01.2020. The Civil Code provides definition of property, main concepts to property objects, basics of termination of the property rights and the right for compensation payments in view of the property right loss, rights on intellectual property, regulates the contractual and other obligations, as well as other property and related personal non-property relations. The Code defines general rules of property seizure, determination of property cost and rights for compensation, terms of rights termination. 62. The Code provides that: a person whose right has been violated may demand full compensation for damages, unless the law or the contract provides compensation for losses in a smaller size (Article 14, Clause 1). The Civil Code (Article 14, Clause 2) also specifies that losses are understood as: • expenses that the person whose right is violated, made or must make to restore the violated right; • the loss of or damage to property (real damage); • the revenues that this person would have received under normal conditions of civil turnover if his right had not been violated (lost profits). 63. According to Article 14, Clause 3 “If the person has violated law, revenues received as a result of this, the person whose rights were violated, has the right to demand compensation along with other losses, lost profits in the amount not less than such profits”. 64. According to Article 7 “If an international treaty or agreement stipulates other rules than those stipulated by civil legislation, rules of the international treaty or agreement shall be applied”. This rule is a common rule for all Uzbekistan’s laws. 65. According to the Article 8, Clause 3, the rights to the property which are subject to state registration shall arise upon the registration of the relevant rights to it, unless otherwise provided by law. Article 84, Clause 1 provides that the right of ownership and other real property rights, creation, transfer, restriction and termination of these rights are subject to state registration. This means that without registration the right to real estate property does not enter

27 into the force. This statement is very important for the further understanding of LAR processes related to land acquisition and building’s demolition.

6.2.4 Resolution of Cabinet of Ministers “About the Measures of Improvement the Order of Provision of Land Plots for Implementation of Urban Development Activity and for Other Non-Agricultural Needs” 66. Being adopted on 25 May 2011 #146 with amendments of 20.12.2019, the resolution is aimed to improve the procedure of providing land plots, protect the rights of legal entities and individuals on land, improve the architecture of settlements and the efficient use of their land for construction in accordance with the land code and the town planning code. This resolution has approved two regulations: (i) regulation on the procedure for providing land plots for urban development and other non-agricultural purposes, (ii) regulation on the procedure of compensation for land possessors, users, tenants and owners, as well as losses of agriculture and forestry: 67. The Regulation on the procedure for providing land plots for urban development and other non-agricultural purposes contains the following provisions: • Order of land plot location, preparation and approval of site selection and land allocation documents without approved planning documentation; • Order of placement, selection and land allocation with approved planning documentation, • Order for rejection in the selection and land allocation for construction; • Provision(sale) of land plots for individual housing construction; • Elements of urban planning documents and development regulation lines. 68. The Regulation on the procedure of compensation for possessors, users, tenants and land owners, as well as losses of agriculture and forestry includes the following: • Compensation for losses of owners, users, tenants and land owners; • Compensation for losses of agriculture and forestry; • cost of irrigation and developing equal new land plot in return for seized irrigated agricultural land; • Cost of fundamental improvement of grassland and pasture; • Scheme for determination of losses of land possessors, users, tenants and owners, as well as losses of agriculture and forestry; • Coefficients on location of seized land plots. 69. The losses of land possessors, users, tenants and owners, as well as losses of agriculture and forestry should be compensated before granting of documents certifying rights on land plot. The regulation also orders that demolition of house, or building shall be done only after agreeing on compensation and providing replacement premises. The regulation orders that compensation has to be paid before starting any construction work. The land possessors, users, tenants and owners, whose land plots are seized and to whom land plots are granted, in case of disagreement with defined amount of losses, can appeal to court. In case of acquisition and temporary occupation of land plot or part thereof, the following would be subject to compensation: • Cost of land plot, owned by individuals and legal entities; • Cost of residential houses, constructions and installations, including incomplete constructions, and also located outside of allocated plot, if its further utilization is impossible due to seize of land plot. • Cost of fruits and berries, protection and other perennial plants; • Cost of incomplete agricultural production; • Lost profit. 70. Above described Laws and Regulations mention that non-titled and squatters on land and building/structures are ineligible for any compensation.

71. Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land in Uzbekistan.

6.2.5 The Cabinet of Ministers Resolution “On additional measures to improve the procedures for provision of compensations for the withdrawal and provision of land plots and provision of the guarantee of the property rights of individuals and legal entities” dated 16 November 2019 #911 72. This Resolution replaces the old Resolution #97. It regulates the procedures for compensation of owners of real estate objects located on the withdrawn land parcels. Provides the general rules of land acquisition and compensation, including: preparation of documents for withdrawal of land for state and public needs; Preparation of documents for land acquisition for implementation of investment projects. 73. The cost of residential, industrial or other buildings and structures constructed without appropriate permission is not compensated. 74. Land acquired for companies, institutions or organizations will be responsible for the payment of compensation, the provision of houses or apartments and temporary housing, as well as the reimbursement of all expenses for relocation. 75. Instead of acquired land, the following types of compensation may be provided: • equivalent comfortable living space with an area not lower than the social norm of living space and payment of the cost of plantings; • payment of the market value of the demolished residential building, other structures, structures and plantings, as well as compensation for losses caused to owners as a result of the acquisition of a land plot; • provision of a land plot for housing construction, including the provision of temporary housing for a period of up to two years, including full payment of the market value of demolished houses, buildings, structures, plantings and other losses incurred in connection with the acquisition of land.

6.2.6 Resolution of the Government of Uzbekistan “On Measures on Improvement Efficiency of Preparing and Implementation of Projects funded by International Financial Institutions and Foreign Governmental Financial Organizations” 76. Being adopted on 16.07.2018 with the reference number 3857 this resolution requires that compensation for land acquisition, demolition of houses, other facilities, structures or damage of plantings due to implementation of projects funded by international donor to be made in accordance with the rules of international donor if such rules are fixed in project agreement.

6.2.7 Resolution of the Government of Uzbekistan “About Approval of the Procedure of Accumulating and Use of Funds of Centralized Stocks for Compensation of Damages to Individual Persons and Legal Entities Due to Acquisition of Lands for Public Needs” 77. Being adopted on 26.12.2018 with the reference number 1047 this resolution established the Republican Centralized Fund (RCF) under the Cabinet of Ministers for calculation and payment compensations to affected households and entities due to involuntary land acquisition. According to the resolution land can be acquired only for public and state needs. RCF covers the projects funded by the Government, central and local level. This resolution sets the procedure of compensation payments to affected physical and legal entities using the RCF funds. 78. As per the resolution, funds of RFC and its regional branches shall be managed by the Chairman of Boards of Directors. The Board of Directors under RCF has the right to take 29 decisions which are compulsory for execution. The Board of Directors will also monitor the allocation of funds to affected households during land acquisition period. Local governments (i.e., Hokimiyats) shall start the process of compensation by requesting the RCF necessary funds for land acquisition. The Board of Directors shall review such requests and take the appropriate decision. Regional governments shall issue resolutions on allocation of compensation funds based on the decision of the RCF. The Decree serves as a legal basis for paying compensation to affected persons.

6.2.8 Construction Standard and Rules No. KMK 2.10.03-97 79. The KMK Instruction regulates construction norms for temporary and permanent allocation of land plot to main water and sewerage pipelines. This construction norm is issued by State Committee on Architecture and Construction of Uzbekistan which is the controlling authority for all type of constructions within Uzbekistan. According to this KMK permanent land acquisition will be allowed for on ground pipelines only and in case there will be underground pipeline laying down then temporary land acquisition will be applied only.

6.2.9 Resolution of the President of Uzbekistan “About the Measures for Basic Improvement of Investment Climate in the Republic of Uzbekistan” 80. The resolution dated 1 August 2018 with the reference number UP-5495 clarifies the sectors for which involuntary acquisition of land of individuals and legal entities is allowed for the state and public needs. The regulation obliges to carry out consultations with affected persons before acquisition of theirs lands. As per the resolution losses of affected people due to land acquisition must be compensated in full before acquisition of land. The government bodies shall reimburse losses of affected persons in case of illegal orders of government bodies for land acquisition. The following are the main provisions of the resolution: • decision of involuntary land acquisition for the state and public needs is allowed only after consultations with the parties whose land plots are planned to be acquired as well as after evaluation of benefits and losses; • demolition of residential, industrial structures, other buildings and facilities of individuals and legal entities due to land acquisition is allowed after full compensation of affected assets and losses caused to owners due to land acquisition; • losses of individuals and legal entities resulting from illegal administrative act of a government body shall be reimbursed by the state; • Involuntary land acquisition for public needs is allowed only for the following purposes: state defense and public security, protected natural areas, establishment and operation of free economic zones, implementation of obligations arising from international treaties; discovery and development of mineral deposits; • construction (reconstruction) of roads and railways, airports, aerodromes, air navigation facilities and aviation centers, railway transport facilities, bridges, subways, tunnels, energy systems and power lines, communication lines, space activity facilities, trunk mains, engineering and communication networks; • implementation of master plans of settlements for construction of facilities funded by the Government as well as other cases clearly indicated by laws and decisions of the Government. 81. Within implementation of this project the order of compensation payment to these persons in case of loss of property and other objects of property is also governed by the following standard and legal documents: i. Law of the Republic of Uzbekistan "On Valuation Activity" as for 19.08.1999. No. 811-I; ii. Decree of the President of the Republic of Uzbekistan "On further improvement of activity of evaluation companies and increases of their responsibility for the quality of rendered services" (No. PP-843 as for 24.04.2008).

6.2.10 The Law “On Valuation Activity” 82. The Law regulates the relations associated with the implementation of valuation activities. The valuation of the assets, including real estate property, business etc., is carried out based on the Law “On Valuation Activity” (as for 19.08.1999. No. 811-I with amendments of 2017, decrees and resolutions of the President and the government state standards, departmental regulations and other provisions of national legislation. 83. Sequencing of legal acts and their contents characterize the state and public understanding of the theory and practice of market valuation. This confirms by several definitions and norms declared in the Law “On valuation activity”. For example: • “Valuation activities are the activities of appraisal organization, aimed at determining the value of the assessment”; • "Appraisal organization - a legal entity licensed to carry out valuation activities. Appraisal organization in its activity is independent. No interference consumer services (hereinafter - Customer), or other interested parties in the evaluation activities of the organization. Creation of the appraisal organization and realization of valuation activities by public authorities and administrations are prohibited unless otherwise provided by law”. 84. While the evaluation activities carried out by independent organizations (private companies having certified evaluators), the state plays an important role in the regulation of evaluation activities. The State Assets Management Agency is responsible for: i) developing and approving regulations, including standards for the valuation of the property; ii) licensing of valuation activity; iii) certification of experts-appraisers, as well as organize their training and professional development. The Society of Appraisers of Uzbekistan shall protect the rights of appraisers, increase their capacity, provides an independent expert opinion, when requested, to validate findings of the valuation report, etc.

6.3 ADB Involuntary Resettlement Safeguard Policy review

85. ADB adopted its Safeguard Policy Statement (SPS) in 2009 including safeguard requirements for environment, involuntary resettlement and indigenous people. The objective of the involuntary resettlement safeguard policy is to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. 86. The involuntary resettlement safeguards cover 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) 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. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. The three important elements of ADB’s SPS are: (i) compensation at replacement cost for lost assets, livelihood, and income prior to displacement; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well- being with the project as without it. The SPS gives special attention to poor and vulnerable households to ensure their improved well-being as a result of project interventions 87. As per SPS, the rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. The calculation of full replacement cost will be 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. Where market conditions are absent or in a formative stage, the borrower/client will consult with the displaced persons and host populations 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. 88. The borrower/client will also collect baseline data on housing, house types, and construction materials. Qualified and experienced experts will undertake the valuation of 31 acquired assets. In applying this method of valuation, depreciation of structures and assets should not be taken into account. The following are the basic policy principle of ADB’s SPS, 2009: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) 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. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

(x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.4 Comparison of Policies 89. Comparison of the Uzbekistan LAR Policy with the ADB Involuntary Resettlement Safeguard Policy indicates that key elements of the ADB Policy are present - particularly those related to valuation of immovable property. The ADB’s principle of avoidance or minimization of resettlement is reflected in the Uzbekistan legislation (Civil and Land codes, related governmental resolutions). The key policy difference relate to AP’s without title, or registration (businesses and structures. However, the LARP ensures that: (a) compensation is provided at replacement cost for market value for all items, (b) non-titled APs are eligible for compensation for non-land assets, provision for additional assistance especially severe impacted households and APs who are vulnerable. 90. A policy comparison between ADB’s SPS and Uzbekistan's national legislation is presented in the below Table 12. Table 13. Comparison of LAR provisions between ADB Policy and the National Legislation Gaps and Reconciliation Issues ADB's SPS (2009) Republic of Uzbekistan requirements Needs 1. Livelihood ADB Policy requires Notion of livelihood This is a gap reconciled in rehabilitation rehabilitation/ improvement rehabilitation not sanctioned previous ADB projects and of AP livelihood standards. by national law. However, the precedented. The SPS Presidential Resolution requirement will be followed. #3857 requires addressing the livelihood issue for IFI funded projects. 2. Compensation A. APs with formal A. APs with formal title are A. Same in principle/ entitlements title have to be compensated for lost application. No reconciliation compensated for lost land/other assets. needed. land/other assets. B/C. APs with legalizable or B/C is a gap. Application B. APs with legalizable no legal title. Legalizable are reconciled in previous ADB title have right to be not distinguished and consid- projects and precedented. compensated for lost land ered non-legal as legalization The SPS requirement will be and assets after the EAs is a burden of the APs. Non- followed. helps them in legalizing legal APs have no right to be their assets. compensated for land and non-land assets. However, C. APs with no legal title are the Presidential Resolution compensated for lost non- #3857 applies for addressing land assets. IFI funded projects. 3. Compensation A. Permanent loss of land. A. Permanent loss of land. A. Same in principle/ Replacement land as Replacement land for legal application for legal APs. Gap preferred option or cash APs. relates to compensation for compensation at full market all non-land losses of rate. For both legal/ However, the Presidential legalizable and non-legal APs legalizable APs. Resolution #3857 applies in and is addressed through the relation to legalizable and Presidential Resolution non-legal APs for addressing 33

Gaps and Reconciliation Issues ADB's SPS (2009) Republic of Uzbekistan requirements Needs IFI funded projects. #3857. The SPS requirement will be followed.

B. Replacement of B. Replacement of leased B. Same in principle and leased land. Based on land. Based on lease application. No gap. replacement of lost income replacement and through cash compensation in cash for all compensation of gross losses including lost profit. income x the remaining lease years or through a replacement land lease C. Loss of structures/ C. Loss of structures/ C. Same in principle and buildings. Cash buildings. Cash application. No gap. compensation at compensation at replacement replacement cost for lost cost for lost item free of item free of depreciation depreciation, transaction and transaction costs. costs, and other deductions. D. Loss of indirectly D. Loss of indirectly affected D. Same in principle and affected items. Non- assets. Law requires that all application. No gap. affected parts of an asset losses including lost profits is no longer usable after to be compensated to all legal impact will have to be APs. compensated as well. E. Business losses. E. Loss of business. Cash E. Same in principle but ADB Reimbursement of actual compensation at market does not consider opportunity losses + business re- value for all cost, which is a value addition establishment costs. For damages/opportunity costs in the country system. No application based on tax incurred. Burden of proving gap. declared income for period opportunity costs rest on the of business stoppage. In AP based on recognized absence of tax declaration documented evidence but no based on maximum non- clear methodology. taxable salary. F. Loss of trees: F. Loss of unproductive and F. Same in principle. productive trees. Application process varies for Irrespective of legal land Unproductive as well as various categories of trees, occupancy status, productive trees affected by a viz., productive or non- compensation at market public project are to be productive. No gap. value. compensated. There are different approaches in use for valuation of unproductive and productive trees. Compensation for the lost trees is separated from compensation for lost profits. G. Loss of crops. G. Loss of crops. Loss of G. No gap. However, the crops to be compensated. timing of payment condition Compensation of crop at There are two forms of should be covenanted to market price. compensation for loss of ensure that lost crops are crops: i) compensation for compensated close as much uncompleted agriculture as possible to the date of production and ii) calculation of lost profit. compensation of lost profit as average income for the last three years, multiplied by 4. H. Loss of jobs. Indemnity H. Loss of jobs. Loss of H. No gap. for lost income ensuring AP employment is to be rehabilitation. As a good compensated with 2 months practice, application on average salary plus a stoppage period up to a severance pay of a maximum maximum of 6 months of of 1 month’s average salary declared salary (formal depending on the length of employees) or minimum the employment lost. All salary (informal losses (including real employees.) damage, lost profits) are to be 34

Gaps and Reconciliation Issues ADB's SPS (2009) Republic of Uzbekistan requirements Needs Compensation directly compensated. disbursed to APs. 4. LAR Planning, A. Resettlement Plan A. Resettlement Plan. There LAR planning is a gap in the assessment and (LARP). LARP preparation are no requirements to country system vis-à-vis valuation of impacts includes: a) impacts prepare integrated and stand- ADB’s requirements. assessment/AP census; b) alone LARPs. LAR planning However, LAR planning has definition of entitlements, entails similar but less been made for all ADB income/livelihood extensive/simpler financed projects, as required restoration strategy, assessment/survey efforts by the SPS and precedented. grievance redress than ADB Policy, as detailed mechanism, institutional below: arrangements; c) i. Measurement survey. Land consultation results; d) and buildings impacts monitoring and reporting; e) measured. Other impacts budget and implementation identified but not schedule. RP requires the measured. following surveys: ii. APs Identification. i. Measurement survey. Identifies only legal APs Measures all affected for entitlement. items. iii. Socio-economic survey. ii. AP Census. Identifies all No comparable APs and establishes requirements exist but has legitimate beneficiaries a mechanism to identify based on legal status. low-income families for iii. Socio-economic survey. providing with social Provides background benefits and material information on AP’ assistance. socio-economic iv. Valuation survey features. a) Land: valued at market iv. Valuation survey rate based on a a) Land: If land market transactions survey. exist based on a Valuation includes survey of transaction costs/third recent transactions; party liabilities. without land market b) Buildings and based on land structures. productivity/ income; Replacement cost but b) Buildings and the salvaged materials structures. remain with the Replacement cost of developer or materials, labor and landowner provides full transport and special reimbursement to the features of owner; building/structure c) Trees/crops. without discounting Compensation is depreciation and provided based on the transaction costs; methodology detailed c) Trees/crops. in section 3.F and 3.G. or based on an agreed lump sum. 5. Procedural A. Information disclosure. A. Information disclosure. No A. Potentially a gap but, while mechanisms Resettlement-related disclosure requirement It is noted that information documents to be timely exists. disclosure to the project disclosed in the AP affected persons is not a language. requirement under the expropriation law of the country, the land acquisition process is initiated by a project EA by requesting the respective district khokimiyat, who forms a working commission for land acquisition comprising an architect, a cadastral official, and finance personnel and 35

Gaps and Reconciliation Issues ADB's SPS (2009) Republic of Uzbekistan requirements Needs this commission is chaired by the deputy khokimiyat. The proposed affected persons are given 6 months advance notice that is personally delivered by a khokimiyat official, which triggers information disclosure and consultation. B. Public consultation. B. Public consultation. B. No gap. Meaningful public Matters of local importance to consultations are to be held be publicly discussed with with the APs. APs should local authorities. But no be informed about their requirement to consult entitlements and options, directly with the APs. as well as resettlement alternatives Presidential Resolution #5495 requires carrying out meaningful consultations with the affected persons before resettlement activities start.

C. Grievance procedure. A C. Grievance Procedures. No gap. Grievance Redress Each state agency/ministry Mechanism (GRM) is to be must follow to detail established for each instructions (approved by project. Information on government) on registering GRM to be communicated and reviewing the concerns to the APs and claims from citizens. D. Asset acquisition D. Asset acquisition No gap. conditions. Property can be conditions. Property can be acquired only after full acquired only after full compensation is paid to the compensation is paid to APs APs 6. Assistance to These APs are to be No corresponding Practically, no gap. vulnerable and identified and special requirement in the country severely affected AP assistance is provided to system, but there are a restore/ improve their pre- number of legislative project level of livelihoods. documents related to social support and livelihood improvement measures considered by the government of Uzbekistan to consider social allowances and needy families through two Cabinet of Ministers resolutions (#350, 12 December 2012 and #44, 15 December 2013) and to consider disabled people through the Law on social protection of disabled people (#ZRU-162, 11 July, 2008). Thus, support of vulnerable segments of the population is provided on the regular basis by the Government on central and local levels and does not require additional payments in connection with the project implementation.

6.5 Core LAR Policy Principle for the Project

91. Based on the above, the core involuntary resettlement principles are proposed as follows: • Land acquisition, and other involuntary resettlement impacts will be avoided or minimized through all viable alternative project designs; • Construction schedule shall be matched with off-the agricultural season for construction of water pipeline so that loss of crops can be avoided • Land for land compensation will be opted for permanent land acquisition • consultation with APs on compensation, disclosure of resettlement information to APs, and participation of APs in planning and implementing sub-projects will be ensured; • vulnerable and severely affected APs will be provided special assistance; • non-titled APs (e.g., informal dwellers or squatters, or APs without registration details) will receive a livelihood allowance in lieu of land compensation and will be fully compensated for losses other than land; • Draft LARP needs to be finalized and updated following the detailed design; • Relevant information from the LARP will be disclosed to the APs in the local language; • payment of compensation, resettlement assistance and rehabilitation measures will be fully provided prior to the contractor taking physical acquisition of the land and prior to the commencement of any construction activities on a particular package; • All compensation will be paid and other resettlement entitlements will be provided before physical or economic displacement. However, transmission and distribution subprojects, being liner in nature, will adopt a phase wise approach for construction and the contractor can start the construction on a particular section where compensation has been paid. This is only applicable for transmission and distribution pipeline. • Appropriate grievance redresses mechanisms will be established to resolve APs’ grievances, if they occur. • The land needs to be restored to previous use and the farmers shall be allowed to continue their cultivation prior to start of civil work; • People moving in the project area after the cut-off date will not be entitled to any assistance. • All common property resources (CPR) lost due to the project will be replaced or compensated by the project and EA will ensure that replacement of all utilities and CPRs are also undertaken consistent with ADB SPS, 2009.

6.6 Methodology used for determining valuation and compensation rates 92. Compensation for temporary land requisition. Construction of a new pipeline requires temporary withdrawal of agricultural land for a period of up to 1 year, although construction in each section will be completed in a period of about 1 month. Compensation for the temporary loss of rights to use agricultural land is determined by the following formula: Compensation = Total affected agricultural area of land by the projct (ha) x 1 year average net profit for the last 3 years (per 1 ha) 93. Multiplication by 1 is a construction period of up to 1 year. 94. Compensation for fruit trees is calculated on the average annual profit for the last 3 years multiplied by 4 (years) in order to cover the period from the moment of planting and reaching the productive age of the tree. 95. The compensation matrix provides for compensation for loss of crops at replacement cost of primary crops (and secondary crops, if any) on affected land on the basis of 1 year of production costs, as well as an allowance equal to 1 year’s average net profit over the past 3 years. 96. In cooperation with district Hokimiyats, data were collected from the affected farms to estimate the compensation amounts. Income losses for crops of the affected lands will be compensated as equivalent of 1 year of average income in the past 3 years. 37

97. The calculation of the replacement cost of trees will be made by value according to the entitlement matrix. 98. Compensation for fruit trees is calculated on the average annual profit for the last 3 years multiplied by 4 (years) in order to cover the period from the time of planting and reaching the productive age of the tree. 99. Felled fruit trees will be left to the affected households. 100. Compensation will be transferred to the settlement accounts of the affected farmers for loss of income from the affected land. 101. Valuation of assets. The valuation of the assets has been carried out on the basis of the Law “On Valuation Activity”, decrees and resolutions of the President and the government state standards, departmental regulations and other provisions of national legislation. 102. Among the legal acts related to the evaluation of real estate and used in determining compensation for alienated land, demolition and resettlement, should be highlighted: • Resolution of the Cabinet of Ministers dated 25.05.2011, №146 “On measures to improve the procedure for granting land plots for urban development activities and other non-agricultural purposes” (annex 2 – Regulations on the indemnification of possessors, users, tenants and land owners, as well as losses of agricultural and forestry production); • National property valuation standards of Uzbekistan (IF) No.10 "Valuation of real estate" (registered by the Ministry of Justice of 18.11.2009, No.2044); 103. Sequencing of legal acts and their contents characterize the state and public understanding of the theory and practice of market valuation. This is confirmed by a number of definitions and norms declared in the Law “On valuation activity”. For example: • “Valuation activities are the activities of appraisal organization, aimed at determining the value of the assessment.” • "Appraisal organization - a legal entity licensed to carry out valuation activities. Appraisal organization in its activity is independent. No interference consumer services (hereinafter - Customer), or other interested parties in the evaluation activities of the organization. Creation of the appraisal organization and realization of valuation activities by public authorities and administrations are prohibited, unless otherwise provided by law.”

6.7 Land Acquisition / Requisition Process 104. According to the legislation of the Republic of Uzbekistan, farmers and gardeners do not have the right to own land. All agricultural land belongs to the government, which they lease to farmers. The withdrawal of a land plot (temporarily or permanently) or part thereof for state and public needs, as well as state programs and projects of investment and socio- economic importance, aimed at the integrated development of territories (investment projects) is carried out only with the approval of the owner and with the consent of the tenant. Thus, for this project, the approval of the hokimiyat (Decision of the Hokim) and the consent of the tenant (written) for the temporary withdrawal of the land were received. 105. Land allotted for the implementation of investment projects is used only for these purposes. Then, for the construction period the land will be transferred to the project Suvokova. After completion of construction, the land will be returned to Hokimiyat. The agreement on the temporary acquisition of land was made by agreement of the parties (Hokimiyat and the leaseholders), and will be reinstated to thye leaseholders by agreement of the parties. 106. Before commencing the detailed design, the Hokims’ Decisions on selection of land for the construction activities with proposed alternative variants of land plots is issued. After the

38 detailed design will be issued the Decision on withdrawal of land on the actual designed land area is made. In the case of this project, the Decisions of Hokims have been issued both for land selection and withdrawal, because alternative land plots had not been proposed by the designers and the Suvokova. Despite the Decision for land withdrawal having been issued in 2018 or 2019, however, the actual withdrawal of land becomes effective only during the construction period. Till such time, land lease holders, for example, farmers, are allowed to continue farming and finish harvesting before the start of the construction. Moreover, when the Hokimiyats issue the Decision on temporary withdrawal of land from the land lease holders / farmers, the latter are not required to pay the lease rental for the duration of the construction period until the land is returned to them.

7. ENTITLEMENT, ASSISTANCE AND BENEFITS

7.1 Eligibility

107. The AP - eligible to receive compensation under the project are land tenants (farmers) - 7 people. 108. They are entitled to compensation for the temporary requisition of land (loss of income), as well as the replacement cost of trees.

7.2 Cut-off-Date 109. Under the present Sub-project, the compensation eligibility cut-off-date and start of census survey are: ▪ for Zangiota district – 10 March 2020, ▪ for Yangiyul district – 18 March 2020 110. The cut-off-dates were disclosed to the affected farmers by the CSA prior to the start of final AP census after the detailed design exercise. Consultations were carried out at the farmers’ lands with prior notice to make aware the affected farmers about the land acquisition process and procedure including the broad eligibility and entitlement. The project's final design and alignment were shared with the affected farmers

7.3 Entitlement Matrix 111. The feasibility stage LARP included a detailed entitlement matrix that addressed the entire spectrum of the project impacts and established the compensation standards. This subproject-specific entitlement matrix draws upon that and addresses only the specific impacts caused by this subproject. The affected farmers are the entitled persons.

Table 14: Entitlements Matrix

ENTITLED TYPE SPECIFICATIONS ENTITLEMENT PERSONS D. IMPACT ON CROPS AND TREES Agriculture land, Loss of standing All affected Farmers • Compensation at replacement cost orchards in crops along the for primary (and secondary crops if residential areas acquisition line of any) on affected land based on 1 the water conduit year of production costs (inputs) plus and distribution an allowance equivalent to 1 year network average net income based on the average income over the past 3 years. • Advance notice to harvest the crops • Schedule of construction to avoid crop season • Rehabilitation of lands to initial state, and to allow farmers to cultivate the lands after completion of construction works • The period of construction shall not exceed single crop season per each plot. Loss of Fruit trees All affected farmers • Compensation for fruit trees will be based on 1 year’s average net income over the past 3 years multiplied to 4 (years) to cover the yielding period.

ENTITLED TYPE SPECIFICATIONS ENTITLEMENT PERSONS • Cut trees will remain with the affected households Timber trees All affected farmers • Monetary compensation for timber trees will be based on market price of dried wood volume. • Cut trees will remain with the affected households. H. IMPACT ON CONSTRUCTION PERIOD Temporary Due to Construction All affected • «Kommunhizmat» Agency will impact on private households and ensure that any type of temporary or State lands, assets land use restriction or impact to assets and/or private or public assets during the income period of implementation of construction works under the project will be compensated from the side of contractor in equivalent to cost of facilities, rent costs, cost of crop and trees replacement as per above presented Entitlements Matrix. I. ANY OTHER UNFORSEEN IMPACTS Any unforeseen impacts identified during the implementation of the Project will be fully compensated for at the replacement cost.

8. RELOCATION AND INCOME RESTORATION

8.1 General

112. Land acquisition in this subproject does not lead to any physical displacement. There is no land acquisition requirement, only temporary restriction on land use for one agricultural season for 12.188 ha of land. Construction of water conduit and distribution lines will not cause any physical displacements. Hence, there is no need for any relocation effort in the subproject. Farmers who are temporarily affected will be compensated at replacement cost for the loss of their agricultural products for one year of average net income, if it is impossible to avoid impact on the crop, and four years of average income for affected fruit trees to give enough time to re-establish planted trees have reached the productive stage. All temporarily used lands will be restored to their original condition to ensure that the APs can resume their agricultural activities on the affected lands after one cultivation season. These measures are deemed sufficient to ensure that the income of the AP is not affected. The seasonal agricultural laborers, who are strictly seasonal and picked up from the labor market, will not lose their incomes because, the percentage of the affected plots areas being relatively small against the absolute size of the leased lands, they continue to work in the respective farms.

9. RESETTLEMENT BUDGET AND FINANCING PLAN

9.1 General

113. The lands were temporarily handed over to Suvokova by decision of the district Hokims: in Yangiyul district on December 20, 2018, in Zangiata district on January 27, 2019.1 However, the farmers are allowed to continue farming and finish harvesting before the start of construction. 114. The land acquisition and resettlement cost estimate for the Project includes eligible compensation and support cost for LARP implementation as per the entitlement matrix for temporary land restriction (for 1 year). Compensation in the project will include the compensation for trees and for loss of income (crops). 115. The details of compensation estimates for temporary acquisition of lands including compensation estimates for affected crops and trees are given in the below Table 13. 116. The compensation rates, as discussed in Section 6.6, are based on the country’s legal provisions that requires replacement cost. Nevertheless, the compensation payment will be made based on the compensation documentation prepared by a licensed valuation firm, as required by the country’s relevant law. The source of resettlement funding is the government budget.

1 As explained in para. 106, in the case of this project, the Decisions of Hokims’ have been issued both for land selection and withdrawal, because alternative land plots had not been proposed by the designers and the Suvokova. Despite the Decision for land withdrawal having been issued in 2018 or 2019, however, the actual withdrawal of land becomes effective only during the construction period. 42

Table 15. Compensation Estimates Due To Temporary Land Acquisition

Including Net income Net income Net income Average net Average Loss Loss Total loss Replace Total

for 2017 for 2018 for 2019 income for income profit profit profit, ment compensat last 3 years, from 1 from from UZS cost for ion for Land user UZS ha, UZS affected affected fruit temporary

land,ha land, UZS trees, trees, acquisition

Totalland

holding,ha

orchards cultivated Totalaffected UZS UZS , UZS 1 2 3 4 5 6 7 8 9 10 11 12 13 16 17 18 1. farm "Arslon Asri" 138,28 1,344 1,344 1 710 000 2 113 000 145 596 000 49 806 333 360 185 484 088 484 088 484 088 2. farm "Valiev Invest" 72,82 0,816 0,816 15 952 050 12 928 030 97 710 000 42 196 693 579 466 472 844 472 844 472 844 3. farm "Gayratbek omad biznes" 96,02 1,44 1,44 0 8 304 000 15 565 000 7 956 333 82 861 119 320 119 320 119 320 4. LLC "Agrover urugchilik" 313,14 3,6 3,6 1 300 024 000 104 655 000 2 364 588 000 1 256 422 333 4 012 334 14 444 403 14 444 403 14 444 403 5. farm "Jamol ota" 108,21 0,42 0,42 2 475 200 10 059 400 48 507 000 20 347 200 188 034 78 974 78 974 78 974 6. farm “Nurli Diyor" 1300.0 4,068 3,068 1 755 239 000 5 736 202 300 285 267 700 2 258 903 000 1 737 618 7 068 629 1 737 618 8 806 246 6 950 471 15 756 717 7. farm “Firdavs agro" 36,35 0,50 0,50 8 882 000 1 349 000 5 462 000 5 231 000 143 906 71 953 71 953 71 953

Total 12,188 11,188 1 31 428 300 TOTAL USD $ 3,100

9.2 Summary Budget

117. Total cost of land acquisition and resettlement compounds UZS 34,571,130.00 (thirty four million five hundred seventy one thousand one hundred thirty Uzbek Soums) (equivalent to USD 3,410.0). This amount includes 10% of contingency for possible additional costs. “Kommunhizmat” Agency ensures that all required funds will be added into project budget in advance, in order to avoid possible delays in compensation payments. Table 16. Summary Budget

Total in UZB Item Total in USD Soums

Compensation and Allowances Compensation to the affected farmers for temporary 31 428 300 $ 3,100 land acquisition (loss of income – crops & trees) Contingency (10% of total amount) 3 142 830 $ 310

Total 34 571 130 $ 3,410 Note: 1 USD = 10137.77 Soums

10. INSTITUTIONAL ARRANGEMENTS

10.1 General

118. “Kommunhizmat” Agency is the executing agency (EA) responsible for implementation of the Project with due participation and coordination from TPS which is acting as the implementing agency related to construction. However, EA is responsible for the land acquisition and resettlement (LAR) activities. A PCU under the EA is responsible for overall implementation including LAR activities of the Project. The PCU has a designated social and resettlement specialist who is responsible for ensuring that all the activities related to land acquisition and involuntary are being followed and implemented in accordance with Uzbekistan's legislation and policies and ADB's SPS. The social and resettlement specialist in the PCU has ensured that this subproject LARP is finalized from the draft LARP prepared under the Project Preparatory Technical Assistance (PPTA) during the feasibility study, prior to start of the civil works. The PCU will be supported by a Project Management Consultant. The Project Management Consultant (PMC) will have a social and resettlement specialist in its contract to support the PCU social specialist. The project management consultant (PMC) for this Project has not been hired yet. It is in selection process. There will be several other government agencies that also are responsible for the LAR activities such as (i) Provincial/District Governments (Hokimyat) and (ii) State Committee on Land Resources, Geodesy, Cartography and State Cadastre (Goskomzemgeodezcadastre) at district level. There are also independent valuation firms and local self-government body representatives of APs to be involved in to the LARP implementation.

10.2 Executing Agency (EA)

119. The PCU is established within the EA (CSA) with required staff, including a social and resettlement specialist. The EA is responsible for selection of PMC (STPWSDP Management & Supervision). The EA, through its PCU is responsible for finalizing the detailed design. The EA is responsible for approval of adequate budgetary support for LARP implementation and will facilitate coordination with the concerned government line agencies on LAR activities as well as with independent valuation firms. EA and its PCU are responsible for finalizing/updating the draft LARP, getting the government’s endorsement, approval of the LARP from ADB and ensure compliance in terms of complete payment of compensation to APs prior to the start of construction.

10.3 Project Management Consultant (PMC)

120. PCU will be supported by a PMC which will be responsible for project management and construction supervision. The management consultant will have a social and resettlement specialist in the contract. The social and resettlement specialist under the PMC will support the PCU social and resettlement specialist. The work for the social and resettlement specialist under the PMC is broadly be segregated into two parts, such as, (i) Finalization and Updating of draft LARP into subproject LARPs during the detailed design and (ii) assisting in the implementation of LARP including disbursement of compensation and assistance and preparation of monitoring report. The social and resettlement specialist in PMC will assist in the overall supervision of the projects and ensures that the subprojects LARPs are implemented in a smooth and timely manner in accordance with the provisions of the LARP. Also closely works with PCU to ensure displaced persons are compensated before displacement occurs, including ongoing rehabilitation measures.

10.4 Project District Hokimiyats (Local Governments)

121. District Hokimiyats are closely involved in the LARP review and implementation and will undertake the following (for the entire project implementation): • outline locations of constructions and structures affected by the project; • select land for construction sites; • approves the decree for the right to use of the land plot.

122. Farmer’s Councils and Makhalla authorities are involved in resettlement activities to ensure the rights and interests of affected households. Implementation of LARP requires close coordination with the local Mahalla and farmer associations. This coordination will help EA in the following: • Dissemination of information related to LARP • Checking timely disbursement of compensation to affected households • Obtaining early warnings on the grievances of APs • Verifying as to whether the vulnerable households were identified according to requirement laid down in this LARP; and • Obtaining information regarding any unexpected impacts, if any, being incurred by the affected households.

10.5 Self-Government Representatives

123. Self-government representatives will be involved with the resettlement activities to ensure the rights and interests of the affected households. The implementation of the subproject LARPs will require close coordination with the local makhallas and farmers councils. This coordination will help the EA in the following: (i) dissemination of information related to the LARPs; (ii) checking timely disbursement of compensation to the affected households and (iii) obtaining early warnings on the grievances of APs, (iv) verifying as to whether the vulnerable households were identified according to requirement laid down in LARP; and (v) obtaining information regarding any unexpected impacts, if any, being incurred by affected households.

10.6 Valuation Firms

124. The valuation firm will comprise an accredited private firm with valid license for valuation activities. This firm will be involved in estimating the replacement cost of the affected assets. Figure 3. Institutional Arrangements

Asian Development Bank (ADB)

CSA/PCU

Project Design Company Management Tashkent Province and Project District Consultant Hokimiyats

Tashkent Province Affected Tashkent Province and Suvokova Households District Offices of Land Resources and Cadastre Department

Valuation Firm Farmers Council, Mahalla Committee

Iformation exchange and consultations Reporting

11. IMPLEMENTATION SCHEDULE

11.1 General

125. The time for implementation of this subproject LARP has been scheduled as per the overall project implementation schedule. All activities related to the temporary land requisition and compensation payment are planned to ensure that compensation is paid prior to displacement and commencement of civil works. Public consultation, monitoring and grievance redress will be undertaken intermittently throughout the project duration. This updated LARP will be sent to ADB for review and concurrence, after which it will be disclosed on the ADB website as well as on the EA’s website. Construction for this subproject is proposed to commence in September 2020, and it is targeted that this LARP is implemented in August 2020. 11.2 LARP Implementation Stage

126. Upon concurrence of ADB and approval of the final/updated LARP by the Hokimiyat, all arrangements for fixing the compensation and the disbursement needs shall be done which includes payment of all eligible compensation and site preparation for delivering the site to contractors for construction and finally commencement of the civil works. Payment of compensation under this updated and final LARP will commence after a number of preparatory tasks have been completed. These tasks are: • disclosure and consultation; • grievance resolution; • disbursement of compensation; • compliance reporting.

11.3 Implementation Schedule

127. This following is a tentative schedule for this LARP implementation. Table 17: Implementation Schedule

Sub-project LARP Activities 2020 2021

2022

Jul Jul Jul

Apr Oct Apr Oct

Jun Jan Jun

Feb Mar

Aug Aug Sep Nov Dec Aug Sep Nov Dec

Feb Mar

May May

A. Detailed Design Appointment Social and Resettlement expert of Project Management Consultant Community Consultation Issuance of notification on cut-off- date following detailed design Sub-project LARP update based on Detailed Design Submission of Final Sub-project LARP for ADB Concurrence and Approval by the Hokimiyat Disclosure of Sub-project LARP B. Sub-project LARP Implementation Issuance of IDs to APs Consultation and GRM Payment of compensation to AF LARP Implementation report submission and disclosure Handover land to contractors Schedule for Civil Work

Sub-project LARP Activities 2020 2021

2022

Jul Jul Jul

Apr Oct Apr Oct

Jun Jan Jun

Feb Mar

Aug Aug Sep Nov Dec Aug Sep Nov Dec

Feb Mar

May May Restoration of land by the contractor along ROW (by sections) Handing back of land to the APs (by sections) C. Monitoring Internal Monitoring by CSA Compliance report submission, review and disclosure Semi-annual monitoring report, submission, review and disclosure

12. MONITORING AND REPORTING

12.1 Overview and Objective 128. Monitoring is the responsibility of CSA. CSA monitors and measures the progress of implementation of the subproject LARP. The objective of the monitoring is to assess the progress of implementation of LARP in terms of its process, targets, problems addressing, mitigation measures, corrective action etc. so that the physical activity and implementation of the project progress smoothly. The LARP implementation will be monitored internally by CSA through its PCU to provide ADB with an effective basis for assessing LARP implementation progress and identifying potential difficulties and problems. In addition to recording the progress in compensation payment and other resettlement activities, CSA prepares monitoring reports to ensure that the implementation of the LARP has produced the desired outcomes. The PCU internally conducts regular monitoring activities with assistance from the project management consultant.

12.2 Internal Monitoring 129. The level of monitoring, in this case, is internal monitoring by the PCU and CSA. The implementation of this subproject LARP will be closely monitored. Regular monitoring activities will be carried out internally by CSA through its PCU to provide ADB with an effective basis for assessing land requisition progress and identifying potential difficulties and problems. The extent of monitoring activities, including their scope and periodicity, are being commensurate with the project’s risks and impacts. Monitoring involves (i) administrative monitoring to ensure that implementation is on schedule and problems are dealt with on a timely basis and (iii) overall monitoring to assess the status of affected persons in terms of compensation and assistance, restoration and handing back of temporarily used land, grievances/concerns, etc. PCU implements safeguard measures as provided in the LARP. PCU (i) monitors the progress of implementation of LARP (ii) verifies the compliance with safeguard measures and their progress toward intended outcomes, (iii) documents and discloses monitoring results and identifies necessary corrective and preventive actions in the periodic monitoring reports, (iv) follows up on these actions to ensure progress toward the desired outcomes, and (v) submits semiannual monitoring reports to ADB. 130. Monitoring includes daily planning, implementation, feedback and troubleshooting, individual affected person file maintenance, community relationships, dates for consultations, number of appeals placed and progress reports. CSA through its PCU is responsible for managing and maintaining affected person databases, documenting the results of the affected person census. Monitoring reports documenting the progress on LARP implementation and a completion reports provides by CSA through its PCU to ADB for review. The internal monitoring report contain: (i) accomplishment to-date, (ii) objectives attained and not attained during the period, (iii) problems encountered, and (iv) suggested options for corrective measures, if any. 131. Apart from the semi-annual monitoring report mandated by ADB’s SPS, upon completion of the LARP’s implementation (compensation payment), the CSA through its PCU will prepare and submit to ADB a LARP implementation completion report indicating the completion of compensation payment to the affected persons. This LARP implementation completion report is subject to possible verification by ADB, which shall be the basis for issuing notice of commencement of construction works to the site preparation contractor.

12.3 Internal Monitoring Indicators 132. Fulfillment of the LARP policy and targets in the implementation process being monitored through setting up indicators. The vital indicators to be monitored include the contents of the activities and entitlement matrix. The LARP contains indicators for achievement of the objectives under the resettlement program. The indicators for achieving the proposed objectives during the implementation of the LARP are of two types: (i) Process Indicators (indicating project inputs, expenditure, staff deployment, etc.) and (ii) Output Indicators (indicating results in terms of

50 numbers of APs compensated, and assistances provided. Monitoring indicators are presented in Table 18.

Table 18: Monitoring Indicators Type Indicators Process Indicator Number of consultation and participation events held with various stakeholders Grievance mitigation procedure Placement of Project staff at the project level Inventory of losses (based on final design) APs Census (based on final design) Placement of funds for land acquisition Procedure of allocation of resettlement plots Disclosure and consultation events Objection redress procedures in-place and functioning Public awareness on RP policy and provisions Cost of compensation collection by APs Monitoring reports submission Output Indicator Number/percent of farms compensated and assisted Number/percent of vulnerable people compensated and assisted Number/percent of farmers compensated for lost income Amount of compensation disbursed and amount pending Number of complaints received and resolved Number of plots restored and handed back to APs Number of farmers who have resumed agricultural activities on restored land

12.4 Reporting

133. CSA through its PCU is responsible for managing and maintaining APs’ database documenting the final results of the affected person census, based on the final design. Monitoring reports documenting the progress of the LARP implementation reports will be provided by CSA through its PCU to ADB for review semi-annually. The monitoring reports will be posted on the ADB website. 134. The following reports will be submitted to ADB for review and disclosure:

Type of Report Timing Contents

Compensation Upon completion of -status of compensation disbursement against all completion report compensation for applicable entitlements and confirmation of sections temporary impacts that are recommended for handing over for (condition for construction. handing over of site -in case there are sections where compensation has to the contractor to not been disbursed, description of such cases and the start civil works) sections that are yet to be recommended for handing over for construction. -consultations made with APs and feedback from APs -GRM functioning and grievances received/resolved, and pending grievances. Semi-annual Six months after -emerging LAR issues arising during construction and monitoring reports approval of final corrective actions made, compensations made LARP and every six -consultations made with APs and feedback from APs, 51

months thereafter -GRM functioning and grievances received/resolved until handing back of and pending grievances all temporarily used land to the APs -status of completion of civil works in sections, restoration of sites and handing over to the APs Final LARP Within 6 months from -overall assessment of the LARP implementation completion report completion of the including handing of LAR issues that emerged during project the construction works. -status of restoration of temporarily used land, handing over to APs and resumption of agricultural activites -consultations and feedback from APs -overall assessment of grievance redress during the project implementation -lessons learned for future similar projects.

ANNEX 1: Decisions of Hokims

ANNEX 2: PICTURES OF PUBLIC CONSULTATIONS