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Table of Contents

Introduction ...... 1 1.1 Project Overview ...... 1 1.2 Scope of this Document ...... 1 1.3 Structure of Document ...... 1

Project Description ...... 3 2.1 Project Purpose ...... 3 2.2 TAP Overview ...... 3 2.3 Key Characteristics of the Project ...... 3 2.3.1 Pipeline ...... 3 2.3.2 Pipeline Construction Corridor ...... 4 2.3.3 Corridor Reinstatement ...... 5 2.3.4 Above Ground Installations ...... 5 2.3.5 Access Roads and Bridges ...... 7 2.3.6 Temporary Facilities ...... 8 2.3.7 Routing and Route Selection Process ...... 8 2.4 Project Schedule ...... 9

Legal Framework ...... 10 3.1 Key Albanian Legislation ...... 10 3.2 Key Principles of Albanian Legislation Pertaining to Land Acquisition ...... 11 3.3 Rights, Transactions and Registration ...... 12 3.3.1 Registration ...... 12 3.3.2 Usufruct Rights ...... 13 3.3.3 Easement Rights ...... 13 3.3.4 Option to Purchase (“Earnest Agreement”) ...... 13 3.4 Expropriation in the Public Interest for the Benefit of a Private Investor ...... 14 3.4.1 Key Principles ...... 14 3.4.2 Expropriation Process in the Case of the TAP Project ...... 15 3.5 Valuation ...... 16 3.5.1 Constructible Land ...... 16 3.5.2 Residential buildings ...... 16 3.5.3 Industrial and Agricultural Buildings ...... 16 3.5.4 Agricultural Land ...... 16 3.5.5 Valuation of Unregistered Properties ...... 17 3.6 Legalisation Process ...... 17 3.7 Claims and Grievances ...... 17 3.8 International Resettlement Standards ...... 19 3.8.1 EBRD Performance Requirements...... 19 3.9 Key Gaps between National Legislation and International Resettlement Standards ...... 20

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3.9.1 Measures to Address Identified Gaps ...... 25

Overview of the Project-affected Population...... 26 4.1 Introduction ...... 26 4.2 Data Collection Methodology ...... 26 4.3 Demographic Profile ...... 26 4.3.1 Population and Gender ...... 26 4.3.2 Age & Household Size ...... 28 4.3.3 Ethnicity ...... 28 4.3.4 Religion ...... 29 4.4 Socio-economic Characteristics ...... 29 4.4.1 Education ...... 29 4.4.2 Health ...... 29 4.4.3 Economic Activities + Income ...... 30 4.4.4 Land Ownership + Use ...... 35 4.5 Vulnerability ...... 36

Project Impacts ...... 38 5.1 General ...... 38 5.2 Preparation Tasks ...... 38 5.2.1 Overview ...... 38 5.2.2 Tasks 1 and 2: Digitalisation of Cadastral Data and Property Boundaries ...... 38 5.2.3 Task 3: Valuation Study ...... 38 5.3 Parcel Identification and Asset Inventory ...... 39 5.3.1 Overview ...... 39 5.3.2 Database ...... 39 5.4 Project Components ...... 40 5.4.1 Permanent Facilities ...... 40 5.4.2 Temporary Facilities ...... 40 5.4.3 Construction Corridor ...... 40 5.4.4 Restriction Zones during Operations ...... 40 5.5 Land Impacts Associated with Access Roads ...... 41 5.5.1 Quantifying Land Impacts ...... 41 5.6 Land Impacts Associated with the Compressor Stations ...... 43 5.7 Land Impacts Associated with the ROW ...... 43 5.8 Impacts to Crops & Structures ...... 43 5.9 Impacts to Fishing & Tourism in the Land Fall Area ...... 44 5.10 Overall Project Land Impacts ...... 45

Stakeholder Engagement ...... 47 6.1 Overview ...... 47 6.2 Legal + Regulatory Framework ...... 47 6.3 Corporate Stakeholder Engagement Strategy ...... 47

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6.4 Stakeholder Identification ...... 48 6.4.1 Directly-affected Population ...... 48 6.4.2 National, County, Municipal and Local Government Units ...... 48 6.5 Engagement Methods ...... 48 6.5.1 Community-based Project Offices ...... 49 6.5.2 Public Display ...... 49 6.5.3 Printed Materials ...... 49 6.5.4 Media ...... 50 6.5.5 Stakeholder Engagement Plans ...... 50 6.6 Phases of Engagement & Issues Raised ...... 50 6.6.1 Access Roads Engagement ...... 50 6.6.2 Public Disclosure of Compensation Values ...... 51 6.6.3 Pipeline Engagement Activities ...... 51 6.6.4 Secure Land Access (SLA) Engagement Activities ...... 51 6.7 Special Accommodations for Vulnerable PAPs ...... 51 6.8 Key Stakeholder Issues ...... 52 6.9 Stakeholder Engagement Going Forward ...... 52

Compensation Entitlements ...... 54 7.1 Key Principles ...... 54 7.2 Compensation Principles ...... 54 7.2.1 Permanently Acquired Land ...... 54 7.2.2 Temporarily Occupied Land ...... 55 7.2.3 Other Temporarily Occupied Land (Construction Camps, Pipe Storage Yards, etc.) ...... 55 7.2.4 Orphan Land ...... 56 7.2.5 Easements ...... 57 7.3 Compensation Entitlements ...... 58 7.3.1 Eligibility ...... 58 7.3.2 Entitlement Matrix ...... 59 7.4 Valuation Principles ...... 60 7.4.1 Methodology of the Valuation Study ...... 60 7.4.2 Land Valuation ...... 61 7.4.3 Crop Valuation ...... 62 7.5 Taxes and Subsidies ...... 62 7.6 Livelihoods Assistance and Transitional Support ...... 62

Secure Land Access (SLA) ...... 63 8.1 Preparing Offers ...... 63 8.2 Offer and Negotiation ...... 63 8.2.1 Land Exit Agreement and Hand Back ...... 65

Livelihood Assistance and Transitional Support ...... 66 9.1 Overview ...... 66

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9.2 Objectives of Livelihood Assistance & Transitional Support (LATS) ...... 66 9.3 Livelihoods Assistance ...... 67 9.3.1 Categorizing Eligibility ...... 67 9.3.2 Agricultural-based Livelihoods Assistance (Category I + II)...... 68 9.3.3 Business-based Livelihoods Assistance (Category I) ...... 68 9.3.4 Delivery Mechanism ...... 68 9.4 Linkages Program ...... 69 9.5 Transitional Support ...... 69 9.5.1 Categorizing Eligibility ...... 69 9.5.2 Identification + Screening ...... 69 9.5.3 Forms of Support ...... 70 9.5.4 Delivery Mechanism ...... 70 9.6 Public Disclosure ...... 71 9.7 Monitoring and Evaluation ...... 71

Grievance Management and Redress ...... 72 10.1 Principles and Overview ...... 72 10.2 Anticipated Categories of Grievances ...... 72 10.3 Grievance Support Structure...... 73 10.4 Administrative Steps and Timeframes ...... 73

Monitoring and Evaluation ...... 77 11.1 Overview ...... 77 11.2 Input and Output Monitoring ...... 77 11.3 Outcome Monitoring & Evaluation ...... 79 11.4 Compliance Monitoring and Completion Audit ...... 80 11.4.1 Compliance Monitoring ...... 80 11.4.2 Completion Audit ...... 81 11.5 Detailed M&E Plan ...... 81

Implementation Arrangements ...... 82 12.1 Overall Organisation ...... 82 12.2 Implementation Schedule ...... 83 12.3 Budget ...... 84

Appendices ...... 85 Appendix 1: Key Albanian Legislation ...... 85 Appendix 2: Details on the Expropriation Process ...... 91 Appendix 3: Review of Specific Legal Cases ...... 93 Appendix 4: Study of Compensation Values – Final Report ...... 95 Appendix 5: MO-OO68 Orphan Land ...... 107 Appendix 6: Updated crop values and calculations ...... 112 Appendix 7: Budget Breakdown ...... 125

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Table of Figures Figure 1: Project Overview ...... 2 Figure 2: Pipeline Corridor - Regular Working Strip (~38 metres) ...... 4 Figure 3: Pipeline Corridor - Reduced Working Strip (28 metres) ...... 5 Figure 4: Compressor Location - Bilisht ...... 6 Figure 5: Compressor Location - Fier ...... 7 Figure 6: Route Map - Albania ...... 10 Figure 7: Voluntary & Forced Land Easement & Acquisition Process ...... 15 Figure 8: Project Area + Administrative Boundaries ...... 27 Figure 9: Occupation of Household Representative (Compressor Stations) ...... 31 Figure 10: Occupation of All Household Members ...... 31 Figure 11: Sources of Income (PAP Affected by Access Roads and Compressor Stations) ...... 32 Figure 12: Reliance on Income Source (PAPs Affected by Access Roads & Compressor Stations) ..... 32 Figure 13: Reliance of Income Source (Compressor Station PAPs only) ...... 33 Figure 14: Monthly Household Expenditure (ALL) ...... 34 Figure 15: Stakeholder Engagement Activities Timeline ...... 50 Figure 16: Orphan Land Adjacent to Pipeline Corridor ...... 57 Figure 17: Secure Land Access Process ...... 64 Figure 18 Overview of Grievance Mechanism ...... 75 Figure 19: Grievance Mechanism Administrative Steps ...... 76 Figure 20: LEA Albania Organizational Chart ...... 83

Tables Table 1: Identification of Key Albanian Legislation Pertaining to Land Acquisition ...... 10 Table 2: Gap Analysis - Albanian Legislation and International Resettlement Standards ...... 21 Table 3: Breakdown of Survey Sample Size by Project Component ...... 26 Table 4: Project Affected Counties, Municipalities & Local Government Units ...... 27 Table 5: Population & Gender Breakdown by Affected Country ...... 28 Table 6: Age Breakdown (PAPs Affected by ROW) ...... 28 Table 7: Ethnic Minorities in Project-affected Counties ...... 29 Table 8: Economic Profile of Surveyed PAP (Access Roads) ...... 30 Table 9: Average Net Combined Household Income/Month (ROW) ...... 33 Table 10: Primary Means of Transport ...... 34 Table 11: Land Parcel Size ...... 35 Table 12: Farming Practices ...... 36 Table 13: Levels of Pre-existing Vulnerability ...... 37 Table 14: Restriction Zones ...... 41 Table 15: Summary of Project-affected Land Parcels (Access Roads) ...... 42 Table 16: Impacts to Private Land Parcels - Access Roads ...... 42 Table 17: Land Impacts - Compressor Stations ...... 43 Table 18: Project-affected Land Parcels by Project Component ...... 45 Table 19: Summary of Land Impacts ...... 46 Table 20: Stakeholder Issues ...... 52 Table 21: Entitlement Matrix ...... 59 Table 22 Grievance Severity Timetable ...... 73 Table 23 Resolution Timeframe ...... 75 Table 24: Input and Output Key Indicators ...... 78 Table 25: Outcome Key Indicators ...... 79 Table 26: LEA Implementation Schedule ...... 83 Table 27 General description of the area for apple nurseries ...... 116 Table 28 Revenues for apple nurseries ...... 116 Table 29 Expenses for apple nurseries ...... 116 Table 30 Replacement value for apple nurseries ...... 117 Table 31 General description of the area for vineyard nurseries ...... 118 Table 32 Revenues for vineyard nurseries...... 118 Table 33 Expenses for vineyard nurseries ...... 118

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Table 34 Economic calculation of greenhouses ...... 121 Table 35 New Annual Crops ...... 122 Table 36 New Perennial Crops ...... 123

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Acronyms

ALUIZNI Agency for Legalization, Urbanization and Integration of Informal Zones AR&B Access Roads & Bridges ARCP Agency for the Restitution and Compensation of Properties BVS Block Valve Station CLO Community Liaison Officer COM Cabinet of Ministers CS Compressor Station CS02 Compression Station 02 (in Albania close to the Greek border) CS03 Compression Station 03 (in Albania close to the city of Fier) EBRD European Bank for Reconstruction and Development ESMS Environmental and Social Management System HGA Host Government Agreement HOC Head of Commune IPRO Immovable Properties Registration Office LEA Land Easement and Acquisition LRF Livelihood Restoration Framework LRP Livelihood Restoration Plan MEI Ministry of Energy and Industry PAH Project-affected household PAP Project-affected People/Population PR Performance Requirement PRT Pipeline Receiving Terminal ROW Right of Way TAP Trans Adriatic Pipeline TEN-E Trans European Energy Network

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Preamble

This document constitutes the Livelihood Restoration Plan (LRP) for the Trans Adriatic Pipeline Project (TAP) in Albania. It describes the results of an intensive land easement and acquisition planning exercise undertaken by TAP and its Project’s consultants. It contains a record of the commitments, procedures, and actions being taken to compensate the people, households and communities impacted by the Project, consistent with Albania law and the European Bank for Reconstruction and Development’s Environmental and Social Policy (07 November 2014) and associated Performance Requirement 5- Land Acquisition, Involuntary Resettlement and Economic Displacement. It has also been informed by the International Finance Corporation (IF) Performance Standard 5 – Land Acquisition and Involuntary Resettlement and European Investment Bank (EIB) Environmental and Social Standards related to involuntary resettlement.

The data presented in this Livelihood Restoration Plan is current through May 2016 and reflects the understanding of Project-affected people and the Project footprint at that date.

Trans Adriatic Pipeline AG Lindenstrasse 2, 6340 Baar, Switzerland

www.tap-ag.com Copyright Reserved: This document may not be copied, shown to or placed at the disposal of third parties without prior consent of TAP AG. The latest version of the document is registered in the TAP Project’s Database. TAP AG AAL00-PMT-660-X-TTA-0001 Rev. No.: 01 Doc. no.:

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Introduction

1.1 Project Overview

1. The overall purpose of the Trans Adriatic Pipeline (“TAP” or “the Project”) is to serve as the European leg of the Southern Gas Corridor, by linking gas fields in the Caspian Sea, including the major Shah Deniz field in Azerbaijan, to European markets. The Southern Gas Corridor is one of the most complex gas value chains ever developed in the world. It stretches over 3,500 kilometres, crossing seven countries and involves more than a dozen major energy companies.

2. TAP is developed by TAP AG, a company headquartered in Baar, Switzerland. TAP AG’s current shareholders include BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), ENAGAS (16%), and AXPO (5%) a Swiss company, which are some of the world’s most experienced companies in the natural gas sector.

3. TAP’s design offers various connection options to a number of existing and proposed pipelines along its route. This would enable the delivery of Caspian gas to destinations throughout Europe:

 TAP will connect to the Italian natural gas grid operated by Snam Rete Gas, from which all Italian gas exit points to European destinations can be reached.  Austria and Central Europe: natural gas transported via TAP can reach the Central European gas hub in Baumgarten, Austria via the Trans Austria Gas (TAG) pipeline, using swaps and reverse flow.  Germany and France via Switzerland: using reverse flow through the Transitgas pipeline.  United Kingdom: grid operators Snam Rete Gas and Fluxys have agreed to develop physical reverse flow capabilities between Italy and the UK by interconnecting the gas markets of Italy, Switzerland, Germany, the Netherlands and Belgium, enabling Caspian gas to reach the UK.  Bulgaria: TAP can provide a new source of gas by linking to existing and planned pipeline infrastructure, including reverse flow through an interconnector to the Kula-Sidirokastro line, and/or a proposed connection with the planned Interconnector Greece Bulgaria (IGB) pipeline.  South East Europe: Caspian gas could flow to growing markets in the Balkans and South East Europe that are currently dependent on a single gas supplier. TAP is cooperating with the developers of the planned Ionian Adriatic Pipeline (IAP) to discuss connection possibilities to markets without gas in Southern Croatia, Albania, Montenegro, and Bosnia and Herzegovina.

4. The Southern Gas Corridor is a major component of EU energy policy. TAP’s role in realising that vision will not only provide economic benefits. It will also ensure that one of Europe’s vital energy routes remains viable for decades to come

5. The Trans Adriatic Pipeline will start in Greece, cross Albania, continue under the Adriatic Sea and come ashore in Southern Italy. The general purpose of the Project is to link gas fields in the Caspian Sea, including the major Shah Deniz field in Azerbaijan, to European markets. The pipeline, approximately 870km in total length, including 105 km offshore under the Adriatic Sea, will have the capacity to deliver 10 billion cubic metres (bcm) of new gas per annum to Europe, starting in 2020 and will be able to expand to as much as 20bcm per annum when required.

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Figure 1 presents an overview of the Project.

Figure 1: Project Overview

6. The pipeline enters Albania north of Miras on the Greek border and exits at the landfall area at the Plazhi i Semanit near the city of Fier on the country’s Adriatic coast.

7. In addition, a total of approximately 130 kilometres of Access Roads will be built and/or upgraded, along with 54 – including 2 new – bridges..

8. As the Project crosses Albania both on shore and in Albanian territorial waters, it is subject to Albanian legal requirements. TAP AG ratified a Host Government Agreement (HGA) with the Government of Albania in April 2013, which addresses, amongst other, land acquisition and resettlement matters.

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9.

10.

1.2 Scope of this Document

11. TAP AG is committed to a number of environmental and social obligations, which are summarised on TAP AG’s website1. TAP has selected the Performance Requirements (PR) of the European Bank for Reconstruction and Development (EBRD) to serve as the benchmark to assure that adverse impacts on people, their rights, livelihoods, culture and environment are avoided or, where avoidance is not possible, minimised, mitigated, offset and/or compensated. A key objective is to assist all persons displaced by TAP to improve, or at least restore their former livelihoods and living standards. This approach will further ensure compliance with the Performance Standards of the International Finance Corporation (IFC) and European Union Directives and Regulations. Amongst others, the EBRD Performance Requirement 5 (PR5) addresses land acquisition, involuntary resettlement, and economic displacement.

12. The current document is the Livelihood Restoration Plan (LRP) for the Albanian segment of the Project. It updates the Livelihoods Restoration Framework (LRF) dated October 2014 by including completed survey data on the nature and extent of Project impacts in Albania. This LRP addresses all components of the TAP Project, including:

 The pipeline, both in terms of land requirements associated with its construction and long term operational restrictions;  Above ground installations (compressor station CS03 near Fier, metering station CS02 near the Greek-Albanian border, block valves), for which land will be needed on a permanent basis by TAP;  Temporary facilities (construction camps, storage yards, staging areas, access roads, etc), for which land will be needed by TAP for the duration of construction only.

1.3 Structure of Document

13. This document is organized in twelve sections:

 Section 1: Introduction briefly describes the Project and outlines the purpose + structure of this document.  Section 2: Project Description outlines the key Project components and the route selection and design process.  Section 3: Legal Framework provides an overview of the national legal and institutional framework as it relates to land access, acquisition and compensation; and identifies gaps between national laws and EBRD Performance Requirements and measures being implemented to address these gaps.  Section 4: Overview of the Project-affected Population provides a demographic and socio- economic profile of the Project-affected population, including identified ‘vulnerable groups’.  Section 5: Project Impacts details the categories of impacts and the extent to which people, communities and institutions/entities and their assets are affected.  Section 6: Stakeholder Engagement summarizes the Project’s approach to identifying and engaging with stakeholders on land-related impacts and mitigation measures, and disseminating Project-related information.  Section 7: Compensation Entitlements defines the entitlements and eligibility criteria for compensation, and how they were determined.  Section 8: Secure Land Access details the steps involved in securing access to land from collection of cadastral information and asset verification, through to the payment of compensation.  Section 9: Livelihoods Assistance + Transitional Support describes how the Project will target additional livelihoods assistance and transitional support to Project-affected people in line with EBRD

1 www.tap-ag.com

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PR 5. It includes the efforts taken by the Project to identify and consider the needs of vulnerable segments of the Project-affected population.  Section 10: Grievance Management outlines the mechanism for resolving Project grievances.  Section 11: Monitoring + Evaluation describes how Project progress, performance and impact will be tracked, assessed and reported on.  Section 12: Implementation Arrangements details the arrangements, including the organizational structure, schedule and budget for LRP implementation.

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Project Description

2.1 Project Purpose

14. As noted above, the primary purpose of the Project is to enhance Europe’s energy security by opening a new route for gas from the Caspian Sea. Gas will be delivered from off-take points in Greece, Albania and Italy, thereby allowing access to markets in these three countries as well as in the Western and Eastern Balkans, and Central and Western Europe. At full capacity (20 bcma), the Project could serve an estimated 15 million households in these areas.

15. The Trans Adriatic Pipeline is recognized as a "Project of Common Interest" by the EU Parliament and Council under the European Union's Trans European Energy Network (TEN-E) guidelines as it would contribute to the EU’s objectives and policies aimed at diversification and security of energy supply.

2.2 TAP Overview

16. The Project is a proposed gas pipeline starting in Greece, crossing Albania and the Adriatic Sea and coming ashore in southern Italy, allowing gas to flow from the Caspian basin into Western and South Eastern European markets. The TAP route will be approximately 878 kilometres in length (Greece 550 km; Albania 215 km; offshore Adriatic Sea 105 km; Italy 8 km TAP’s highest elevation point will be 1,800 meters in Albania’s mountains, while its lowest part offshore will be at 810 meters in depth.

17. In addition to the pipeline itself, the Project also includes two Compressor Stations, one near Kipoi, in Greece, and the other on the Albanian coast near Fier. The Pipeline Receiving Terminal (PRT), a combined pressure reduction, metering and pigging station, will be located near Melendugno in the province of Lecce, with a tie-in to the Italian grid at the boundary of the terminal. The Central Control Centre for the entire TAP system will also be located at the PRT in Italy, with a backup in Albania. Two additional compressor stations may be installed later (one near Serres, and the other near the Greek- Albanian border, on the Albanian side) to reach the maximum throughput of 20 bcm/year.

18. To facilitate construction of the pipeline in Albania, between 20 – 25 separate access road segments and 54 bridges spread out along the length of the pipeline corridor need to be built and/or upgraded.

19. The TAP Project is also investigating the option of developing gas storage facilities in the Dumre region in central Albania, using underground salt formations. This area is located approximately 50 km to the south of Tirana, and 20 km to the north of the planned Trans Adriatic Pipeline route.

2.3 Key Characteristics of the Project

2.3.1 Pipeline

20. TAP will initially have a capacity of 10 billion cubic metres (bcm)/year, providing enough energy for as many as 7 million households. The pipeline’s transport capacity can be further expanded to 20 bcm/year. TAP can use a large diameter pipeline also for the subsea section. With this choice of pipeline dimensions, all that would be needed for an expansion of capacity to 20 bcm/year is to add more compression capacity, including one compressor station in Vishocica Korce (near the border with Greece) in addition to the one anticipated near Fier (CS03), which will be constructed for the 10 bcm/year capacity.

21. The ESIA for Albania is available in English and Albanian languages on TAP’s Environmental and Social Impact Assessment (ESIA) process in Albania webpage.

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22. The buried onshore pipeline from the Albanian border to compressor station CS03 (between the city of Fier and the landfall) is approximately 205 km in length and has a diameter of 48 inches (1.2 metres). The design pressure of the main pipeline is 95 barg. From CS03 to the landfall at the Adriatic Sea, the gas pipeline is approximately 6 km in length with a diameter of 36” (0.9 metres) and 145 barg design pressure. The minimum cover depth for the pipeline is 1 m in normal sections, but this can be increased if necessary where additional protection is required. For example at road and railway crossings, the minimum cover depth is increased to 1.2 m and 1.5 m respectively. Fibre optic cables will be laid parallel to the pipeline, as these are needed for communication.

2.3.2 Pipeline Construction Corridor

23. The normal construction working width for the TAP Project in Albania is 38 m, and can be reduced to 28 m where physical constraints require. In areas of potential ridge modification the width will be further reduced to a minimum 16 m corridor. Typical cross sections of the construction corridor, showing both the regular and reduced working widths, are shown in the following figures.

Figure 2: Pipeline Corridor - Regular Working Strip (~38 metres)

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Figure 3: Pipeline Corridor - Reduced Working Strip (28 metres)

2.3.3 Corridor Reinstatement

24. After completion of pipeline construction, the construction corridor will be reinstated, which involves the following:

 The original contours are restored.  Top soil that has been removed and stored separately is placed back.  All temporary crossings are removed.  Land drainage infrastructure, access roads, other networks and facilities, and vegetation, which were disturbed or moved during construction, are reinstated to their previous condition.

25. Photographic records will be made of the route, where necessary, before and after the works. Where required to prevent induced access and use of the pipeline Right-of-Way as a road, barriers may be established. All posts and markers will be located such that interference with agricultural activities is minimised.

2.3.4 Above Ground Installations

Block Valves 26. At the current stage of engineering, approximately 9 Block Valve Stations (BVS) are planned in Albania. Final design (number of, and distance between BVS) will be completed later and will depend on a number of factors, including pipeline risk assessment, accessibility, national and international standards and an agreed operation and maintenance concept. The block valves are unmanned and contain a small cabinet with a fence around them to prevent unauthorised access. The fenced area is approximately 18x35 m. An access road will typically be necessary to provide permanent access during operation. All of the BVSs will be installed below ground with access provided through an inspection cover. Electrical supply will be provided by solar panels and back-up diesel generators or batteries. Connection to the public electricity grid is currently not planned.

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Compressor Station 27. Compressor stations are required to raise the gas pressure to the level required to drive the gas through the pipeline and deliver it to the offshore pipeline. In the specific case of TAP in Albania, the diameter reduction for the offshore section from 48” to 36” (i.e. from 1.2 m to 0.9 m) requires an additional pressure increase.

28. One compressor station will be installed in Albania along the pipeline route near the city of Fier (CS03) to generate this increase in pressure. The site is located approximately at sea level, in agricultural land (originally marshy and therefore crossed by numerous drainage ditches). A site has also been identified for an optional second compressor station in Albania close to the border with Greece (CS02), which would become necessary if the capacity is eventually expanded to 20 bcm. The location of both compressor stations is presented in Figures 4 and 5.

Figure 4: Compressor Location – Bilisht

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Figure 5: Compressor Location - Fier

29. The power for the compressors will be provided from gas turbines located in the compressor stations.

2.3.5 Access Roads and Bridges

30. Approximately 105 kilometres of access roads will be built /upgraded. It is currently estimated that only about 36 kilometres, or 8 of the 21 access roads, will be entirely new.

31. The above road work also includes 54 bridges – only two of which are to be newly constructed.

32. The normal construction working width for access road and bridge construction/upgrading is generally between 20 – 25 meters depending on the topography.

33. After completion of Access Road & Bridge construction, land located inside the construction corridor that was only temporarily occupied (laydown areas, camps, etc.) is reinstated, which involves the following:

 The original contours are restored.  Top soil that has been removed and stored separately is placed back.  All temporary crossings are removed.  Land drainage infrastructure, access roads, other networks and facilities, and vegetation, which were disturbed or moved during construction, are reinstated to their previous condition.

34. Photographic records will be made along the Access Road routes, where necessary, before and after the works. All posts and markers will be located such that interference with agricultural activities is minimised.

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35.

2.3.6 Temporary Facilities

Storage and Pipe Yards 36. There will be a main storage yard close to the main port, at Durres, which will have sufficient pipe storage capacity to provide buffer storage in case of construction delays.

37. Pipes will be distributed from the main storage yard to the 8 pipe yards distributed along the pipeline route.

38. The locations of pipe yards for the intermediate storage of onshore pipes have been selected close to main roads near the pipeline track to provide easy access for long trucks. The final number and location of the pipe yards will be determined by the EPC contractor.

Construction Camps 39. Temporary, self-contained construction camps will be set up and operated in six locations along the pipeline route during construction. They are located near the future pipeline, taking existing infrastructure and access into account. The locations were chosen based on forecasted work speed and directions. The Primary Contractor will make their own arrangements for the housing and welfare of their workforce, although land access and compensation associated with any construction camp facilities will be managed by TAP.

40. All camp installations are of temporary nature and will be removed completely (including foundations) after the construction period. The land will be reinstated and camp footprint will be replanted after demobilisation.

2.3.7 Routing and Route Selection Process

Route Optimisation 41. The route through Albania is shown in Figure 6. The base case route in Albania has been prepared within a 2 km wide corridor. This corridor results from a route selection process carried out since Project inception. During Project feasibility and basic engineering phases (2003 to 2007), TAP identified a preliminary routing which enters Albania near Miras south-east of Korce, runs towards Permet via Arrez, Mollas, Kaltanj, Frasher and Pishkova, follows the Vjosa River to the coast and leaves the Albanian mainland west of Fier. While technically feasible, this route would run for 27 km through the Hotova National Park (including 7 km through its core zone) and require the establishment of 10 km of new access roads in the National Park.

42. Following conditions set forth by the Albanian government and good industry practice, TAP reviewed its routing in 2008 and conducted an Assessment of Alternatives in 2009 in line with the Albanian Environmental Impact Assessment Law. The objective of this process was threefold: a) identify the optimal route, b) identify measures to minimise residual environmental, social and cultural heritage impacts and c) engage with national, regional and local authorities and the populations at large.

43. A total of 7 alternatives were investigated (in addition to the base case routing). After a preliminary review, 5 alternatives were excluded from further studies as they were found to have significant shortcomings on economic, technical, environmental or social grounds. The remaining two are described as follows :

 Alternative 3 has an onshore length of 212 km. It crosses 5 highways, 10 major roads, 10 secondary roads, 249 carriageways and tracks, and 1 railroad. In addition, 44 river crossings are needed including several crossings of the Vjjosa. It requires 7 block valve stations, new access roads with

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 a total length of ~20 km and the upgrading of ~120 km of existing roads. With a view on constructability, the route has been found to have a difficulty factor of 2.3 (higher figures suggest more difficulties with 1 being equal to a pipeline in a flat and stable environment).  Alternative 6 has an onshore length of 179 km. It requires a 2.5 km long tunnel with a diameter of 4 m in the mountains above Corovode (on 1800 m asl). It crosses 1 highway, 7 major roads, 30 secondary roads, 228 carriageways and tracks, and 1 railroad. . In addition, 26 river crossings are needed including several crossings of the Osumi. It requires 6 block valve stations, new access roads with a total length of ~40 km (20 km for the tunnel) and the upgrading of ~90 km of existing roads. The overall route has been found to have a difficulty factor of 2.0.

44. The systematic comparison revealed that these two alternatives have a similar environmental and social performance. Alternative 3 would have been significantly more costly to build and alternative 6 was therefore selected.

Selected Route 45. The pipeline will enter Albania north of Miras and continue towards Dardhe. Close to the Greek/Albanian border a metering station will be established and will be extended at a later stage to host a second compressor station in order to enhance the throughput to 20 bcma. West of this station, the pipeline will descend to the plains south of Korce and cross the national road between Kamenice and Floq. It will then ascend above ground to the highlands south of Vithkuq and stays on the ridges until it reaches a section where a 2 km long tunnel will be necessary (700 m above the village of Backe at an altitude of 1800 m above sea level). It then follows for 25 km the ridges to the north of the road from Corovode to Potom and Backe before it crosses the Osumi River south of Corovode.

46. The pipeline then follows the Osumi River for several km on its western bank before it climbs up to the western ridges of the Osumi valley near the village of Therepel. Some 5 km north of Polican it re- enters the lower parts of the Osumi valley and runs through agricultural lands. 5 km south of Berat the pipeline leaves the valley and runs north and towards Lapardha to avoid any visual impacts to the world heritage site of Berat. The pipeline then runs through the flat agricultural lands towards Fier. Near Jagodine the pipelines crosses the Semanit River and then runs towards the hills north of Fier. The compressor station CS03 is to be established on these hills, avoiding any visual impact to the tourism and heritage sites of that area. The pipeline then intersects irrigated agricultural land towards the landfall area at the Plazhi i Semanit. It further goes offshore running in a more or less straight line towards Italy.

47. Local route optimisation has been undertaken during the detailed design within the general 2 km corridor. Similarly, site selection has been carried out for the metering and compressor stations in Albania (CS02 and CS03):

 The compressor station CS03 is to be established on hills north of the city of Fier, in an area where environmental and visual impacts will be minimal.  The location of CS02 will be approximately 4 km west of the border with Greece, 1.5 km from Trestenik.

2.4 Project Schedule

48. Construction of the Albanian section of the Project, starting with the access roads and bridges, commenced in the spring of 2015. Construction will take approximately 3.5 years. This aligns with the overall Project schedule which anticipates transporting natural gas from the Caspian region, when the Phase II of Shah Deniz field in Azerbaijan starts production in 2020.

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Figure 6: Route Map - Albania

Legal Framework

4.1 Key Albanian Legislation

49. Table 1 below identifies key pieces of Albanian legislation that are relevant to land acquisition and resettlement. A detailed version of this table, including all references of main and subordinate acts is presented in Appendix 1.

Table 1: Identification of Key Albanian Legislation Pertaining to Land Acquisition

Albanian Name English Name Key Issues Addressed Kushtetuta e Main constitutional principles, essential rights and freedoms, Constitution of the Republic Republikes se organization of the state and independence of the of Albania Shqiperise state bodies, elections, hierarchy of the laws etc.

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Albanian Name English Name Key Issues Addressed Legal rights related to immovable properties (such as ownership, easement-servitudes and usufruct rights, Kodi Civil i Republikes Civil Code of the Republic of lease, etc.).Interacting and beneficiary parties, their se Shqiperise Albania contractual rights, modalities of acquisition of rights referred above, and the obligation to register them. Organization and operation of the Immovable Property Për regjistrimin e Law “On Registration of Registration Office (IPRO), terms and procedures for pasurive të Immovable the registration of immovable properties and paluajtshme Properties” administration of immovable properties public

registry. Për shpronësimet dhe marrjen në Law "On expropriation and Regulates the right of the state to expropriate or take in përdorim të temporary use of temporary use, for public interest the properties of përkohshëm të private property for legal entities or individuals and the protection of the pasurisë pronë public interest" rights and interests of the expropriated owners. private për interes publik. Legalisation of informal constructions. Transfer of the ownership rights over the land plot where is Për legalizimin, On the legalisation, constructed the object that will be legalized. urbanizimin dhe urbanization and Urbanization of zones, blocks of informal integrimin e integration of the constructions and their integration into the urban ndërtimeve pa informal development of the country. Procedures for the leje zones/constructions completion of the legalisation of the informal constructions and the establishment of the relevant structures for the legalisation. Per verifikimin e titujve On consideration/revision Review agricultural land allocations with the power to te pronesise of legal validity for creation overturn/confirm land commission decisions that, in mbi token of ownership titles on many cases, are already legally registered in the bujqesore, i arable land IPRO. ndryshuar. Dealing with the already-started land distribution procedures regulated by previous Laws No. 7501 of 1991 and No. 8312 of 1998 and provides local government structures with more time to finalize the documentation. Për përfundimin e On legal proceedings Finalization of documents for already-started land prpocedurave required for granting distribution procedures regulated by Law 8053 of ligjore të kalimit ownership of 1995. të tokës agricultural land of bujqësore të former agricultural ish- enterprises to ndërrmarrjeve beneficiaries bujqësore në specified in Law 8053 pronësi të of 1995. përfituesve.

4.2 Key Principles of Albanian Legislation Pertaining to Land Acquisition

50. The Albanian Constitution and Expropriation Law are generally in line with Human Rights protection principles as contained in the Universal Declaration of Human Rights. Private property is guaranteed by the Constitution (Article 41).

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51. Rights in property, whatever their nature (ownership, usufruct) are supposed to be registered in the Public Registry (Civil Code).

52. The expropriation process is defined by Law 8561 of 22.12.1999. This law has similarities to expropriation laws in other European countries, is generally in line with international standards of human rights and property protection, and guarantees a fair and transparent process that generally complies with EBRD’s policy requirements. Its main aspects are the following:

 Expropriation is subject to public interest “in accordance with general principles of international law”;  Expropriation is subject to “fair compensation”;  Expropriation can only be decided by the Council of Ministers based on an application by the requesting agency or requesting private entity;  The expropriation law provides the main steps in the process, which are detailed further in section 4.4.

53. While the legislation does guarantee that basic Human Rights requirements are complied with, implementation has not always been consistent with these principles and there have been instances of expropriation where aggrieved people had to resort to various external redress mechanisms (including those associated to International Finance Institution) to ensure that their rights would be safeguarded.

4.3 Rights, Transactions and Registration

4.3.1 Registration

54. The Immovable Properties Register (i.e. the registry where all immovable properties and respective transactions are registered) is administrated by IPRO, a legal public person, under the control of the Ministry of Justice. (Registration Law, Art. 5 & 9). Ownership titles and other real rights (i.e. usufruct rights, use rights, emphyteusis, easement and other real rights) must be registered (Civil Code, Art. 193). Transactions should be registered with IPRO within 30 days from their execution (Registration Law, Art. 38). IPRO upon request of the owner or holder of a real right issues the relevant certificate (i.e. ownership certificate, usufruct certificate, easement certificate etc.). The date when the certificate was issued is reflected in the property records. (art. 32).

55. Lease contracts for periods of more than nine years must be registered with IPRO. The contract should be a notary deed (Civil Code, Art. 197). Notarial lease contracts for periods more than one year may also be registered. When the subject to the lease is only a part of the property, the property should be divided accordingly and the notes related to the lease should be registered with the property record of the relevant part (Registration Law, Art. 51)

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56. The registration of the ownership title acquired by the execution of a sale purchase agreement is registered upon filing of the sale purchase agreement (which should be in the form of a notary deed).

57. When the ownership title is acquired by law, final court decision or an administrative act, which includes expropriation, the registrar based on these acts reflects the state or the person who has obtained the ownership of the immovable object as owner (Registration Law, Art. 42 & 45).

58. In the situation where the registration process is in respect of an object that has been legalised, the registrar carries out the registration of the legalized object immediately upon receipt by ALUIZNI of the legalisation permit and the accompanying documents as provided under the Legalisation Law 9482/2006.

59. There are a number of challenges which exist in Albania around land title and registration, including discrepancies between what has been documented within the land registry and the reality on the ground and un-registered properties. Further details on these situations can be found in Annex 3.

4.3.2 Usufruct Rights

60. Usufruct rights (Civil Code, Art. 232 to 258) can be created by law or by a legal transaction. The usufruct may be established either for a determined or undetermined term but in any case it cannot last longer than the usufructuary lifetime. When the usufructuary is a legal entity the usufruct cannot be longer than 30 years. The usufructuary enjoys the easements rights related to the property and other real rights that the owner would enjoy, except any limitations provided in the act of creation of the usufruct or by the law. When the property is expropriated for a public interest, usufructuary would be eligible for compensation in addition to the owner of the immovable property that is subject to usufructuary rights.

4.3.3 Easement Rights

61. Easement (Civil Code, Art. 261 to 295) can be established by law, act of a state authority, contract entered between the parties, or by a court decision. Easement rights include all rights necessary for the free enjoyment of easement. The beneficiary of the easement is obliged to compensate the owner of the servant property for damages arising from the easement. The owner cannot create an easement over the property without the consent of the usufructuary, in case the easement impairs the rights of the usufructuary. The easement right should be exercised in the manner and time that creates fewer difficulties for the owner of the servant property. The beneficiary of the easement has the right to file claims in the court against any party that contests his right and to request as the case may be cease of impairment, full reinstatement of the right and damages relief. Easement over a property in joint ownership can be created only upon the approval of all the joint owners.

62. The owner of the immovable property may register an easement right upon filing with IPRO of the act creating the easement providing for (i) the nature of the easement, the period, and any condition or restriction related to it; (ii) the immovable property, or its relevant part that is affected by the easement. The easement document should also contain a plan that defines the location and extension of the easement. The easement is registered in the relevant section of the property records. Change and removal of the easement are made upon filing a request and relevant documents by the party that is benefiting from the easement. (Registration Law, Art. 57).

4.3.4 Option to Purchase (“Earnest Agreement”)

63. A party that intends to enter in the future into a contract may pay to the other party a sum of money (the earnest) in advance assuring that party on the later execution of the contract (Civil Code, Art. 601- 602). In case the contract is not executed due to the default of the party paying the earnest, this party

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64. loses the earnest; when the contract is not executed due to the default of the party receiving the earnest, this party is obliged to pay back double the amount of the earnest. Unless otherwise agreed in the contract, the defaulting party is liable for compensating damages to the other party. In this case the sum of earnest could offset part of the damages if it does not cover them all.

65. The Civil Code (Art. 84-88) also recognizes the concept of conditional contracts, where the parties are required to discharge or not discharge their contractual obligations depending on occurrence of uncertain events as defined by the parties in their contract. In case such events do not occur than the parties would be released from the contractual obligations.

4.4 Expropriation in the Public Interest for the Benefit of a Private Investor

4.4.1 Key Principles

66. The right of private property is guaranteed. Property may be acquired by donation, inheritance, purchase, or any other classical means provided by the Civil Code. The law may provide for expropriations or limitations in the exercise of a property right only for public interest. Expropriation or limitations to a property right that are equivalent to expropriation is permitted only against fair compensation. For disagreements connected with the amount of the compensation, a complaint may be filed in court (Constitution, Art 41).

67. Expropriation or taking under temporary use of the private property is made only for a “public interest” which may not be achieved or protected in another manner, and always against a fair compensation (Expropriation Law, Art. 2). Expropriation for public interest in favour of a private entity is performed in the case of investments that present public interest or have territorial extension either in national or local level, in sectors such as energy or telecommunications (Expropriation Law, Art. 8).

68. The request for expropriation is submitted by the interested investor to the ministry that covers the activity for which the expropriation is needed. The application for expropriation should include the identification of properties that expropriation is requested for (indicating such properties and respective owners). The ministry establishes a special committee to follow up and implement the expropriation process. The committee examines and verifies the information indicated in the application and relevant documents attached therein. If the application meets the required criteria the committee accepts the application for expropriation by notifying the investor.

69. Within ten days after the acceptance notice, the ministry and the investor enter into an agreement providing for the process and conditions of expropriation, in the form of the notary deed, having attached all documents accompanying the application for expropriation.

70. Within ten days after execution of the said agreement, the ministry notifies directly (either by registered mail or other means of notification having confirmation that notice is received by the addressee; in case the addressee resides abroad, the notification will be made through publication in the commune/municipality where the land subject to expropriation is located) the persons affected by the expropriation and will publish the application for expropriation in the Official Journal as well as in national and local newspapers.

71. The relevant ministry proposes to the Cabinet of Ministers (COM) to approve the expropriation not earlier than one month from the day of termination of the procedures described in herein above. The committee further calculates (by considering the initial value of the property proposed to be expropriated, depreciation, destination, location, indexes of the market price changes and of the currency) the value of compensation to be paid to the persons affected by the expropriation.

72. The relevant ministry submits the full file of expropriation to the COM for approval. Within thirty days after the approval of the expropriation by COM Decision, the ministry will transfer and register with the competent IPRO the ownership title on the expropriated land under the name and property of the

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State in case of the expropriation of the title, or register under the State name and title. The ownership title on the expropriated property is registered in the name of the investor (if such is their request), when the investor has completed the construction of the Project.

73. Details on the expropriation process are presented in Annex 2.

4.4.2 Expropriation Process in the Case of the TAP Project

74. Figure 7 shows the key steps in the applicable legal expropriation process in situations where negotiated agreement cannot be reached.

75. It is important to note that efforts to reach amicable agreement may continue throughout the expropriation process up until the Ministerial approval.

Figure 7: Voluntary & Forced Land Easement & Acquisition Process

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4.5 Valuation

4.5.1 Constructible Land

76. The value of land affected by expropriation procedures is defined (in ALL/m2) by the Decisions of the Cabinet of Ministers (DCM) approving the value reference list established in accordance with the Restitution and Compensation Law. In cases where no price is fixed in a given area, under DCM no. 138/2000 the value of land is estimated based on the average value of sale prices within the last 3 months as indicated in the IPRO Register. A special declaration of IPRO (signed by the local director of IPRO) should be issued to ascertain recent sale contracts and prices applied. If the IPRO of the region affected by the expropriation lacks any data on land value, the evaluation is made based on a comparison with sale and purchase values in other areas, according to the following criteria:

 Characteristics of the area (i.e. touristic, urban, suburban, rural);  Engineering ability of the land to support constructions.

4.5.2 Residential buildings

77. Valuation of the residential buildings is estimated based on average values of sale prices defined by IPRO (as for constructible land). When sale purchase indicators are not available, the evaluation is based on the method of the construction cost using as reference unit prices used by the National Housing Entity.

4.5.3 Industrial and Agricultural Buildings

78. Valuation of industrial and agricultural constructions is based on the construction cost method, where average market prices of the market are used, with depreciation deducted from the evaluation.

4.5.4 Agricultural Land

79. The value of the agricultural land, forest, and pasture is defined (in ALL/m2) by the COM Decisions approving the price reference list (in accordance with the Restitution and Compensation Law). In cases where no price is fixed for certain areas, under COM Decision no. 138/2000, the value of land shall be estimated based on the average value of the sale price of land in the relevant area as indicated in the IPRO register.

80. The value of crops, plants, orchards, forests, and permanent nurseries is defined based on the average value of their sale price in the relevant area as indicated in the IPRO register. In case IPRO declares in writing not to be able to avail such price indicators, interested parties may request from the Ministry of Agriculture, Food and Consumers Protection to carry out a specific technical valuation and to calculate the value of the property subject to the expropriation. In such cases, criteria used for calculation of compensation would be as follows:

 land category (level of fertility),  situation under or above the water level,  distance from the urban centers.

81. With regard to orchard trees, the evaluation is based on costs (investment and growth expenses including amortization based on guidelines of the Ministry of Agriculture, Food and Consumers Protection). Evaluation is made per each tree for the orchard trees, olives, oranges, limes, etc. and for measured surface in case of wines, nurseries and strawberries. For annual crops the evaluation is made based on the expected production and the market value.

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82.

83. The valuation criteria for forest and pasture lands are the following:

 quality of said lands and their sustaining capacity .  environmental, ecologic values and the function of meadow or forest land (productive, touristic, etc.)  geographical location (mountainous, seaside area etc.).  value of the wooden and non-wooden material, medicinal plants, wild fauna etc.  level of investment and infrastructure.

4.5.5 Valuation of Unregistered Properties

84. Exceptionally, including in the case of construction of national roads, informal owners of immovable objects that are not registered with IPRO can be expropriated (and would therefore be valued) in case they meet the following criteria:

 Informal owners of unregistered assets are in the process of undergoing the administrative procedure with ALUIZNI at the time the expropriation is requested;  The informal construction is declared by the informal owner within the ALUIZNI legalisation process and is declared eligible to legalisation by ALUIZNI;  Informal owners are in the process of obtaining a legalisation permit based on either (i) a Cabinet of Ministers Decision, published in the Official Journal pursuant to the Legalisation Law, which identifies the individual as informal owner of the informal object and relevant land plot; or (ii) evidence that the informal owner that has constructed the object in his or in State land is not ineligible to the legalisation process.

4.6 Legalisation Process

85. Legalisation of unregistered properties is carried out by ALUIZNI (Legalisation Law, Art. 4). Informal objects constructed prior to the entry on force of the law, notwithstanding their purpose of use, are within the scope of possible legalisation. Informal owners have an obligation to self-declare illegal constructions to the urban planning office of their area, within six months from the entry into the force of the law (April 2006 - Legalisation Law, Art. 7).

86. Within 30 days from receiving the complete set of documents required for the legalisation of the informal construction, the local office of ALUIZNI issues a legalisation permit to the informal owner (Legalisation Law, Art. 28). Upon completion of the legalisation process, ALUIZNI prepares the documents necessary for registering with IPRO the legalized properties (Legalisation Law, Art. 29). If relevant, the Cabinet of Ministers decides upon compensation of landowners, whose property is transferred to the informal owner upon completion of the legalisation process. The evaluation is made pursuant to Restitution and Compensation Law (Legalisation Law, Art. 15).

87. Any disputes arising from ownership claims over land occupied by the informal construction are addressed to the court by the claiming parties. During the judicial examination the legalisation process is suspended and restarts when the court decision has become final and enforceable (Legalisation Law, Art. 24).

4.7 Claims and Grievances

88. Parties affected by expropriation may bring actions before courts against the expropriation process. However, only compensation amounts can be challenged, but not the process per se (Expropriation Law, Art. 24). Such claims do not cause suspension of the expropriation process, but they may result in a higher compensation to be paid in case so ruled by the final judgment. Affected parties may claim higher compensation amounts than those set forth by the relevant Cabinet of Ministers Decision

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89. authorizing the expropriation, filing actions with the court within thirty days from the notification of the said COM Decision.

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90.

91. Actions brought before courts by parties claiming ownership title over the immovable property subject to expropriation also do not cause suspension of the expropriation process. Depending on the ruling, the court or the competent ministry should exchange the relevant notifications in such cases. Upon completion of the expropriation procedure the competent ministry (i.e. the one that has initiated the expropriation procedure) is obliged to place the compensation amount into a bank account opened so that the compensation can be paid in conformance to the judgment (Expropriation Law, Art. 16).

4.8 International Resettlement Standards

92. The key objectives of International Resettlement Standards, as commonly defined by IFC Performance Standard 5, EBRD Performance Requirement 5, EIB Environmental and Social Handbook and the Equator Principles are to:

-Avoid or, at least minimize, involuntary resettlement wherever feasible by exploring alternative project designs;

-Mitigate adverse social and economic impacts from land acquisition;

-Improve or, at a minimum, restore the livelihoods and standards of living of dis-placed persons to pre- project levels;

-Improve living conditions among displaced persons through provision of adequate housing with security of tenure at resettlement sites.

4.8.1 EBRD Performance Requirements

93. The EBRD updated its Environment and Social Policy in 2014. The Policy details the Bank’s commitment to promoting “environmentally sound and sustainable development” in all its activities. The Bank has developed related Performance Requirements (PR) for key areas of environmental and social sustainability, notably including:

 PR 5 - Land Acquisition, Involuntary Resettlement and Economic Displacement  PR10 – Information Disclosure and Stakeholder Engagement

94. PR 10 requires that affected communities be appropriately engaged on issues that could potentially affect them. Key requirements include:

 Ensuring free, prior and informed consultation and facilitating informed participation  Obtaining broad community support  Focusing on risks and adverse impacts, and proposed measures and actions to address these  Undertaking consultation in an inclusive and culturally appropriate manner  Tailoring the process to address the needs of disadvantaged or vulnerable groups.

95. Performance Requirement 5 refers to the management of involuntary land acquisition and resettlement. Involuntary land acquisition relates to transactions where the buyer can resort to government authority to gain access to land or impose limits on land use.

96. The Performance Requirement defines displaced persons broadly as:

 Those who have formal legal rights to the land they occupy  Those who do not have formal legal rights to land, but have claim to land that is recognized or recognizable under the national laws

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  Those who have a recognizable legal right or claim to the land they occupy, such as opportunistic squatters and recently-arrived economic migrants who occupy land prior to the cut-off date.

97. The objectives of Performance Requirement 5 include:

 To avoid or at least minimize involuntary resettlement by exploring alternative project designs  To mitigate impacts from land acquisition by providing compensation for loss of assets at full replacement cost and ensuring that resettlement activities are implemented with appropriate stakeholder engagement  To improve or at least restore the livelihoods and standards of living of displaced persons  To improve living conditions among displaced persons through provision of adequate housing with security of tenure.

98. Performance Requirement 5:

 Requires that the project proponent identify, via a census, those persons who be displaced and establish a cut-off date to establish eligibility for compensation  Requires project proponent to offer land-based compensation, where feasible, where livelihoods of displaced persons are land-based, or where land is collectively owned  Introduces the concept of negotiated settlements to avoid forcible removal of people  Requires private sector companies to “bridge the gap” between domestic legal requirements and the requirements of the Performance Requirement.

99. Performance Requirement 5 further requires that standards for compensation be transparent and consistent within a project, and established with the participation of those impacted.

100. Project proponents must offer displaced persons and communities’ compensation for loss of assets at full replacement cost and other assistance to help them improve or at least restore their standards of living or livelihoods.

4.9 Key Gaps between National Legislation and International Resettlement Standards

101. Table 2 provides a comparison of Albanian legislation to international standards and identifies key gaps.

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Table 2: Gap Analysis - Albanian Legislation and International Resettlement Standards

Topic / Issue International Resettlement Albanian Law Provisions Comments Standards Involuntary “Involuntary resettlement” covers Albanian legislation, including the The key gap is that Albanian resettlement – both physical displacement (loss Expropriation Law of the Republic legislation does not recognise Physical and of shelter) and economic of Albania, does not recognize loss of livelihoods associated economic displacement (loss of livelihood or “involuntary resettlement” in the to land acquisition. displacement access to productive resources). sense of the PR. Issues related to The law recognizes affected EBRD PR 5 covers both: land acquisition in the public persons who have formal 1. Land acquisition, which interest are regulated by legal rights only. includes: (a) purchases of Expropriation Law. The law Restrictions that result in property; (b) purchases of regulates the right of the state to people experiencing loss of property rights (i.e. easements; expropriate properties of natural or access to physical assets or rights of way) juridical persons in the public natural resources are not 2. Imposition of restrictions that interest against fair compensation. addressed explicitly by result in people experiencing loss In addition, compensation is to be Albanian legislation. of access to physical assets or provided for the devaluation of natural resources properties which are not the object of expropriation. The law regulates temporary occupation of land (e.g. for construction works, setting up construction sites, etc.), for up to 2 years, against compensation.

Planning process The Client must prepare a The application for expropriation in Albanian legislation does not Resettlement Action Plan (or the public interest should include a set out any requirements for Livelihood Restoration Plan if no detailed list of properties to be the preparation of physical displacement is expropriated, based on the IPRO resettlement or livelihood anticipated). The RAP/LRP register. restoration plans. In addition includes a census and detailed Affected owners are to be notified of there are no requirements socio-economic baseline. the application for expropriation. with respect to consultation Affected persons are to be with persons affected or for informed and consulted during special attention to the planning process. Special vulnerable groups. provisions have to be made with respect to consultation with vulnerable groups. Cut-off date In the absence of national It is understood that the date of the No gap government procedures, the date Cabinet of Ministers decision on of completion of the census and expropriation is the cut-off date. assets inventory represents the cut-off date for eligibility. Individuals who move into the project affected area after the cut- off date are not eligible for compensation and other types of assistance. Information regarding the cut-off date should be well-documented and disseminated throughout the project area.

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Topic / Issue International Resettlement Albanian Law Provisions Comments Standards Negotiated Negotiated settlements are Negotiated settlements are No gap settlements encouraged to help avoid encouraged by the Expropriation expropriation and eliminate the Law. Art. 6 of the Expropriation Law need to use governmental provides that when the owner authority to remove people agrees to transfer his/her property forcibly. to the state, under conditions (compensation) offered by the competent ministry, expropriation is considered completed. The owner has to inform the competent ministry within 15 days from being notified (publication) whether accepts the offer (art.16). If an agreement is not reached, after a decision on expropriation is passed by the Council of Ministers, the affected owner has the right to appeal to the court regarding the amount of compensation (art.24) Compensation Compensation for lost assets to Expropriation Law, compensation Albanian legislation does not Value and Timing be provided at replacement cost, value to be based on assessment of take account of transaction usually calculated as the market affected properties by the costs, and provides that value of the assets plus Expropriation Committee and depreciation is to be taken transaction costs related to confirmed by COM Decision. This into account, which does not restoring such assets (registration provision explicitly states that meet the “replacement value” and transfer taxes). Depreciation depreciation of structures and requirement. of structures and assets should assets is to be taken into account. not be taken into account. If agreement on compensation Compensation (alternative reached, transfer of property and housing and/or cash payment of compensation to take compensation) has to be place within 15 days from provided prior to relocation. notification by affected owner that he/she accepts the offer (art.16). If not, compensation is provided based on a decision on expropriation of the Council of Ministers, within a period of three months, or after the court decision (art.23). Vulnerable groups Specific assistance for vulnerable According to law no. 9355, dated Specific assistance for groups. 10.03.2005 “On social assistance vulnerable groups is not part and services”, vulnerable persons of the expropriation process are entitled to various forms of in Albania. However, legal social welfare payments or a range tools exist outside of the of community based services. expropriation process to provide assistance.

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Topic / Issue International Resettlement Albanian Law Provisions Comments Standards Eligibility for International standards identify The Expropriation Law addresses Specific measures to be compensation / three main categories of affected people in Category 1. The devised in the LRP for people resettlement and people: Legalisation Law addresses people in Category 3. entitlements in 1- those who have formal legal in Category 2. case of physical rights to affected assets are The law no. 9232, dated 13.05.2004 displacement eligible to full compensation at “On social programs for the housing replacement cost for land and of inhabitants of urban areas” structures as applicable; establishes a legal framework for 2- those who have no formal the development of social housing rights to affected assets at the programs in Albanian municipalities, time of the census, but who have which may apply to people in a claim to land that is recognized Category 3. The law defines the or recognizable under national administrative regulations and laws are eligible to similar procedures that will ensure the compensation as those in planning, management and Category 1; distribution of social housing to 3- those who have no vulnerable people, in line with their recognizable legal right or claim income and the level of state to the land they occupy are not support. necessarily eligible to compensation for land but should receive: (i) compensation for structures that they own and occupy and for any other improvements to land at full replacement cost; and (ii) in case of physical displacement, a choice of options for adequate housing with security of tenure and resettlement assistance.

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Topic / Issue International Resettlement Albanian Law Provisions Comments Standards Grievance A grievance mechanism should Expropriation Law provides for the While there is no requirement mechanism be set up as early as possible in right of the affected persons to bring in Albanian law to establish the process, to receive and actions before the courts for an extra-judicial grievance address in a timely fashion seeking higher compensation from mechanism, this does not specific concerns about that defined in the decision on contradict the process compensation and relocation that expropriation enacted by the outlined in Albanian law as are raised by displaced persons Council of Ministers, but affected long as affected people can and/or members of host people cannot challenge the keep on enjoying their communities, including a expropriation process per se. constitutional right to address recourse mechanism designed to Claims do not cause suspension of any claim to the competent resolve disputes in an impartial the expropriation process, though court as they see fit. manner. they may result in a higher The grievance mechanism, compensation to be paid if so process, or procedure should decided by the competent court. address concerns promptly and effectively, using an understandable and transparent process that is culturally appropriate and readily accessible to all segments of the affected communities, at no cost and without retribution. Information The client should summarize the The Expropriation Law obliges the Apart from notifications to disclosure and information contained in the Ministry to notify persons affected affected people, there is no public information Resettlement Action Plan or directly (either by registered mail or requirement in Albanian law Livelihood Restoration Plan for other means of notification having to consult and to disclose public disclosure to ensure that confirmation that notice is received documentation publicly. affected people understand the by the addressee; in case the However, such consultation compensation procedures and addressee resides abroad, the and disclosure is not know what to expect at the notification will be made through prohibited and can be various stages of the project (for publication in the commune/ accommodated as a specific example, when an offer will be municipality where the land subject measure. made to them, how long they will to expropriation is located) and to have to respond, grievance publish during an entire week the procedures, legal procedures to application for expropriation in the be followed if negotiations fail). Official Journal as well as in Consultations will continue during national and local newspapers. the implementation, monitoring Within fifteen days after the last and evaluation of compensation date of the publication, the persons payment and resettlement subject to expropriation should inform the ministry on their claims related to the properties affected by the expropriation.

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4.9.1 Measures to Address Identified Gaps

102. Gaps essentially pertain to the following:

 Compensation value (not at replacement cost as per Albanian legislation);  Consultation and disclosure (no specific requirements in Albanian law);  Planning process (no requirement for any participatory planning process per Albanian law);  Informal or unregistered ownership and usufruct rights;  Grievance management and resolution.

103. TAP has three different legal avenues to address these gaps in cooperation with the Albanian government:

 The Host Government Agreement, approved in April, 2013, includes a number of safeguard clauses pertaining to land access, and will specifically refer to compliance with EBRD PR5, a commitment TAP AG has already made public;  The agreement to be entered into between TAP and the Expropriation Committee of MEI, and thereafter reflected by the COM decision, which can specifically refer to valuation at replacement value;  Individual agreements to be entered into privately with affected right holders.

104. TAP has also committed to establishing a grievance mechanism in line with international resettlement standards, and full disclosure of land easement and acquisition entitlements and activities (see the TAP website www.tap-ag.com ).

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Overview of the Project-affected Population

5.1 Introduction

105. In this Chapter the demographic and socio-economic characteristics of the Project-affected population are described based on findings from the 2015 socio-economic survey, supplemented with data previously collected as part of the ESIA (2011) and available regional statistics.

5.2 Data Collection Methodology

106. A census of the owners and/or users of the affected area was conducted to verify land, crops and installations within the Project area and to establish a cut-off date for compensation entitlements. The Project will affect close to 5000 households, or approximately 20,000 people. Close to 15% of the affected population are people who use but don’t necessarily own the land parcel.

107. For the socio-economic survey all Project-affected households whose land will be permanently acquired for the compressor stations area and the access roads were interviewed. Additionally, a sample of households who will be affected by the pipeline right of way (ROW) was included.

108. The socio-economic survey and analysis of the data took place in phases between January and December 2015, beginning with PAPs affected by the access roads, followed by the compressor and block valve stations and then the pipeline ROW. Consolidation of all socio-economic and census data is currently underway.

109. A total of 916 interviews were conducted with Project-affected people. Table 3 presents a breakdown of the number of Project-affected people surveyed for each Project component.

Table 3: Breakdown of Survey Sample Size by Project Component

Project Component No. of PAPs Access Roads 206 Compressor Stations 197 Pipeline ROW 513

110. The results from the socio-economic survey are presented in the following sections, and where possible compared with secondary data drawn from available regional and national statistics, and the Project ESIA.

5.3 Demographic Profile

5.3.1 Population and Gender

111. Albania is divided into 12 administrative counties, each of which is further divided into municipalities and Local Government or Administrative Units (LGUs). The Project affects people and land located within three counties, ten (10) municipalities (see Figure 8) and twenty-six (26) LGUs. PAPs reside in 112 villages within the Project footprint.

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Figure 8: Project Area + Administrative Boundaries

112. The affected administrative areas are identified Table 4.

Table 4: Project Affected Counties, Municipalities & Local Government Units

County Municipality Local Government Unit (LGU) Hocisht Devoll Bilisht Proger Voskop Korca Qender Vithkuq Korca Pojan Drenove Mollaj Topoje Fier Mbrostar Fier Qender Roskovec Roskovec Lushnje Bubullime Ura Vajgurore Ura Vajgurore Berat Ktalli Otllak Berat Vertop Poshnje Berat Sinje Velabisht Potom Corovode Skrapar Vendreshe Qender

113. According to national statistics, of the three affected counties Fier has the largest population with the greatest density. The population and gender breakdown for each affected county is provided in Table 5.

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Table 5: Population & Gender Breakdown by Affected Country

County Total population Density Males % Females % (habitant/km2) Berat 143.889 80,0 73.003 50.7 70.886 49.3% Fier 316.406 167,4 161.200 50.9 155.206 49.1% Korça 225.116 60,7 114.593 50.9 110.523 49.1%

114. Amongst the sample of Project-affected households who will be impacted by the pipeline right of way, the gender split indicates a slightly higher percentage of men than women (52% and 48% respectively).

5.3.2 Age & Household Size

115. From a national perspective, the age structure in Albania indicates a slow growth scenario, with a declining birth rate and a growing aged population. This dynamic is reflected in the Project-affected population.

116. Amongst the sample of households impacted by the ROW, the percentage of young people is noticeably lower, and the proportion of older people higher when compared with the rest of the country. Table 6 provides a more detailed breakdown by age group and by county and compares it with national data for 2014.

Table 6: Age Breakdown (PAPs Affected by ROW)

Age Breakdown of PAPs by Age County (Percentage) Total Age Total Age Categories breakdown for Breakdown for Berat Fier Korce PAPs (ROW) Albania (2014) below 14 9% 14% 14% 11% 19% 15-24 17% 16% 13% 14% 19% 25-34 16% 13% 13% 35-44 7% 12% 12% 38% 40% 45-54 16% 8% 13% 55-64 18% 14% 18% 18% 11% 65-74 10% 13% 10% 19% 11% 75 + 6% 9% 6%

117. Amongst households affected by land take for the compressor stations, more than half of the people providing socio-economic information on behalf of their household - generally the landowner or spouse - were over 60 years of age; only 8% were under forty.

118. With respect to household size, the average for the country as a whole is 3.8 people, with rural households tending to be larger than urban (4.1 compared to 3.5). Amongst the Project-affected population sample, households range in size from 1-11 with an average of 4 members per household.

5.3.3 Ethnicity

119. In the last national census (2011), most of the resident population living in the country report being of Albanian descent (82.59%), although 15% left their ethnicity unspecified. Other ethnic groups include

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120. Greek (0.87%), Macedonian (0.20%), Montenegrin (0.01%), Romanian (0.30%), Roma (0.30%) and Egyptian (0.12%).

121. Table 7 provides a breakdown of the ethnic minorities living within the three counties affected by the Project, with a similarly small percentage of people identifying as Roma or Egyptian. During the Census and Asset Inventory for the pipeline ROW, more than 300 Projected-affected families identified as belonging to ethnic minority groups, specifically Roma and Arumanian.

Table 7: Ethnic Minorities in Project-affected Counties

County Berat Fier Korça Ethnicity Roma 0.14% 0.53% 0.46% Egyptian 0.08% 0.02% 0.38% 5.3.4 Religion

122. With respect to religion, although all mosques and churches were closed in 1967 and religious observances prohibited, in the 1990s Albania began allowing private religious practice. Statistics from the 2011 census report the following breakdown according to religion: Muslim 56.7%, Roman Catholic 10%, Orthodox 6.8%, atheist 2.5%, Bektashi (a Sufi order) 2.1%, other 5.7%, and unspecified 16.2%.2

5.4 Socio-economic Characteristics

5.4.1 Education

123. Education in Albania includes both public and private institutions. In recent years, the Albanian education system has made substantial progress towards general compliance with other European educational systems. Data from the 2011 national census indicates that for the population 10 years and over the illiteracy rate is 2.8 %, with higher illiteracy rates amongst females compared with males (3.7 and 1.7% respectively).

124. The World Bank reports that in 2014, the total enrolment in tertiary education in Albania, regardless of age and expressed as a percentage of the five year age group following on from secondary school leaving, was 59%, which is an improvement from 44% in 2010, but still significantly lower than many other European countries (i.e. Austria 81%, Bulgaria 66%, Greece 117%).

125. Amongst the Project-affected population, the majority (68%) of household heads, or those interviewed on behalf of their household, report completing middle or high school, 24% have completed only primary school, with 6% having attended university or technical school. When the education levels achieved by all household members are included, the percentage having completed or currently attending university or technical school increases to 11%.

5.4.2 Health

126. Life expectancy in Albania has increased steadily in the past twenty years for both genders - 73 years for men and 76 years for women (2013). Although the percentage of the GDP spent on health in the country has increased from 5.3% in 2010 to 5.9% in 2013, as a sector it remains significantly underfunded.3 In some parts of Berat County for example, Project-affected households report that access to proper health care – doctors, ambulances, hospitals – is at least two hours away.

2 http://www.indexmundi.com/albania/demographics_profile.html (accessed 09/09/2015) 3 World Health Organization (2015). World Health Statistics. Available from: http://www.who.int/gho/countries/alb/en/ (Accessed: August 11, 2015).

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5.4.3 Economic Activities + Income 127. Prior to the 2008 global financial crisis, Albania was one of the fastest-growing economies in Europe, enjoying average annual growth rates of 6%, accompanied by rapid reductions in poverty. However, since 2008 average growth has halved. The pace of growth has also been mirrored in poverty and unemployment rates: between 2002 and 2008, poverty in the country fell by half (to about 12%) but in 2012 it increased again to 14%. Unemployment increased from 13% in 2008 to 17% in 2013, with youth unemployment rates in Albania reaching 27%. The UNDP reports that half of Albania’s youth reside in rural areas.

128. National statistics provide information on the main economic sectors in which Albanian residents are employed based on their employment status. Most people who identify as ‘self-employed’ are engaged in the agriculture sector. The greatest proportions of people with waged employment are engaged in the industry, services and construction sectors.

129. The government reports that household income in Albania typically comes from employment in the private sector (30%), pensions (30%) and self-employment (21%). Only 14% of Albanian families declare that they have other sources of income, which are primarily remittances.4

130. Table 8 below provides a profile of the Project-affected households interviewed as part of the socio- economic survey for the access roads.

Table 8: Economic Profile of Surveyed PAP (Access Roads) Criteria Korca Fier Skrapar

Main activities generating 65% farming 66% farming 71% farming income 56% pensions 49% pensions 50% pensions

Household income levels 50% below 40,000 49% below 40,000 61% below 40,000 ALL/mth ALL/mth ALL/mth Land parcel size Average 1.6 ha Average 3.5 ha Average 1.6 ha 77% indicate all or 90% indicate all or 64% indicate all or Extent of parcel under cultivation most of the most of the most of the land parcel is land parcel is land parcel is cultivated cultivated cultivated Percentage of households indicating their living 7% 17% 25% conditions are worse than their neighbors’

131. Amongst households affected by the compressor stations, the occupations reported by the highest percentage of people is farmer (38%) followed by pensioner (33%). As illustrated in Figure 9 only 5% of those interviewed described themselves as ‘unemployed’.

132. For the sample of households affected by the ROW, the breakdown is similar, but with a slightly higher percentage of household heads reporting to be farmers (45%) and a lower percentage (3%) describing themselves as unemployed.

4 Economic and Fiscal Program 2012-2014. (http://arkiva.financa.gov.al)

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80 75 (38%) 70 65 (33%) 60 50 40 30 Sales 20 6% 10 5% 3% 3% 1% 0 Farmer Pensioner Unemployed Public sector Private Self House wife sector Employed

Figure 9: Occupation of Household Representative (Compressor Stations)

133. When the occupations of all family members who are of working age within the Project-affected household are included, as depicted in Figure 10, 11% identify as unemployed, with a similar percentage employed in the private sector and 11% indicated they perform unpaid work in the home (‘housewife’), reflecting the inclusion of women and youth.

400 370 350 300 270 250 200 150 116 109 116 100 50 35 34 1 1 0

Figure 10: Occupation of All Household Members

134. In terms of sources of income, most households (74%) rely on more than one source. The most commonly cited are related to agricultural, pension payments and livestock, as illustrated in Figure 1

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Other 3 Rent 5 Fishing 2 Hunting 2 Remittances 55 Own a business related to agriculture 3 Own a business not related to agriculture 18 Private sector job (pay check) 64 Public sector job (pay check) 44 Livestock 115 Social Assistance 32 Retirement payment 199 Agriculture activity 306

0 50 100 150 200 250 300 350

Total CS AR

Figure 11: Sources of Income (PAP Affected by Access Roads and Compressor Stations)

135. Figure 12 provides insight into the extent to which PAPs affected by permanent land-take report relying on different sources of income. The circled columns indicate that 38% (154) of PAPs interviewed rely on agriculture for more than 50% of their income, and more than a third are completely dependent on agriculture. When those who are affected by permanent land take associated with the compressor stations are examined separately, the percentage of households who report depending on agricultural for more than 50% of their income is even higher (89 – 45%).

180 163 160 140 120 105 106 100 80 80 59 49 60 39 31 40 24 23 21 24 19 18 13 20 5 2 3 0 Agriculture Retirement Livestock Public sector Private sector Remittances activity payment job (pay job (pay check) check)

below 49% 50-90% 100%

Figure 12: Reliance on Income Source (PAPs Affected by Access Roads & Compressor Stations)

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80 68 70 60 60 50 38 40 35 29 30 23 18 20 11 12 11 9 9 8 6 5 10 1 1 1 0 Agriculture Retirement Livestock Public sector Private sector Remittances activity payment job (pay check) job (pay check)

below 49% 50-90% 100%

Figure 13: Reliance of Income Source (Compressor Station PAPs only)

136. Table 9 summarizes the combined household income reported by PAPs affected by the ROW. Compared with Albania’s official minimum wage which in 2014 was 22,000 ALL per month, this data suggests that a sizable portion of PAPs report having limited household incomes.

Table 9: Average Net Combined Household Income/Month (ROW)

LEK 100,001 – LEK 200,000 11 (3%) (between €700 -1500) LEK 70,001 – LEK 100,000 23 (7%) (between €500 - 700)

LEK 40,001 – LEK 70,000 105 (30%) (between €300 - 500) 183 LEK 15,001 – LEK 40,000 (53%) (between €100- 300) Up to 15,000 LEK 23 (7%) (Up to €100) 0 50 100 150 200

137. When compared with income levels reported by PAPs affected by permanent land take, a slightly lower percentage (50%) report a combined household income of between 15-40,000 ALL per month, and a higher percentage (15%) report incomes of over 70,000 ALL per month

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138. Figure 13 summarizes the monthly household spending of the sample of PAPs affected by the ROW. Food and agricultural-related expenditures consume the greatest amount of people’s income.

25000

20000

15000

10000

5000

0

Figure 14: Monthly Household Expenditure (ALL)

139. In comparing reported monthly household income with household expenditure, amongst the sample of PAPs affected by the ROW most people’s expenditures fall within the income category they report. In only 15% of cases were expenditures higher than the reported monthly income.

140. Information on primary means of transportation provides further insight into the financial well-being of Project-affected people. As illustrated in Table 10, between 30-40% of all PAPs surveyed rely primarily on a car for transportation, with 40-50% relying on a bus/minibus.

Table 10: Primary Means of Transport

Primary Means of Transportation ROW CS AR Animals 5 (1%) 6 (3%) 28 (14%) Motorcycle 13 (4%) 34 (17%) 13 (6%) Cars 199 (40%) 60 (30%) 61 (30%) Bus/minibus 269 (52%) 91 (45%) 92 (40%) Other (bicycle) 27 (3%) 5 (3%) 2 (1%)

141. In response to the question of whether PAPs affected by the ROW consider their living conditions to be better, worse or the same as the rest of their village/community, approximately 11% described their situation as worse. The highest percentage (79%) considers it the same and 10% better.

142. When asked to describe what the main challenges Project-affected households face as a family, most referred to their difficult economic situation. In terms of the problems faced by their community as a whole, most PAPs identified infrastructure and the economy as key issues.

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143.

5.4.4 Land Ownership + Use

144. In the Albanian context, clarifying land ownership is an ongoing concern impacting the economic growth of the country, and posing obvious challenges to the TAP Project. Based on survey data from those households affected by the access roads, more than half indicated that they lack the legal documents to verify their land rights for the affected parcel.

145. From a national perspective, agriculture is a main source of employment and income throughout rural areas, contributing 21 percent to GDP in the country and involving 43 percent of the workforce (data for 2014). Agriculture products contribute significantly to the regional identity of the country. The main crops of national significance are wheat, corn, rye, barley and oats. A considerable share of the production of field crops is held by vegetables, potatoes and white beans. The main groups of perennial crops cultivated in the country are fruit trees (apples, pears, peaches, plums, cherries, nuts, etc.), olives, citrus and grapes.

146. The three counties impacted by the Project are considered very important areas for agricultural development. National data indicates that the highest level of crop production in Albania can be found in the lowland and coastal areas in Fier County, while the highest level of production of fruit trees occurs in the south-eastern part of Korça County where one of the compressor stations will be located. Albania has climate conditions which favour olive cultivation, and Berat and Fier are the counties which produce the greatest amount of olives in Albania.

147. Data from the respondents who were included in the access roads socio-economic survey reveal that the primary use of their land parcel is for agriculture purposes. In Korça County, 77% of the affected people have stated that their land is actively being cultivated, in Fier County, the percentage is 85, with the most common crops being wheat (36%) and lucerne (38%). In Berat County, 74% of surveyed PAPs grow wheat and/or lucerne.

148. In terms of the typical size of land parcels amongst Project-affected people, the range is from .1 of a hectare to 7.5 hectares, with the average being .4 ha for PAPs sampled from the ROW, .2 for those affected by the compressor stations and 2 ha for those affected by the access roads. Table 11 provides a breakdown of the parcel sizes reported by PAPs for each of the Project components.

Table 11: Land Parcel Size

Average land parcel size PAPs affected by ROW PAPs affected by CS PAPs affected by AR 0.1-0.95 ha 123 (24%) 16 (8%) 41 (20%) 1-1.95 ha 264 (51%) 98 (50%) 76 (37%) 2-2.95 ha 99 (19%) 55 (28%) 50 (24%) 3- 3.95 19 (4%) 14 (7%) 16 (8%) 4-4.95 4 (1%) 6 (3%) 5 (2%) 5 and above (max 7.5 ha) 3 (1%) 4 (2%) 10 (5%)

149. The crops typically cultivated by PAPs affected by the ROW include wheat (26%), Luzern (23%) and fruit trees (26%). Almost 40% of PAPs indicated that they use agricultural products to meet their household needs and to generate income.

150. Table 12 depicts for the three Project components, the extent to which respondents report that their affected land parcels are cultivated, irrigated and/or have some sort of drainage system in place. More than 90% report that they use a tractor for farming.

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Table 12: Farming Practices

PAPs affected by AR All or most of the parcel Some of the parcel None of the parcel Irrigation 45 (22%) 54 (26%) 99 (48%) Drainage 131 (64%) 27 (13%) 40 (19%) Cultivated 136 (66%) 52 (25%) 10 (5%) PAPs affected by CS Irrigation 94 (48%) 73 (37%) 29 (15%) Drainage 170 (85%) 24 (12%) 1 (0.5%) Cultivated 166 (84%) 22 (11%) 7 (4%) PAPs affected by RoW Irrigation 198 (39%) 122(24%) 193 (37%) Drainage 384 (75%) 68 (13%) 61 (12%) Cultivated 467 (91%) 37 (7%) 9 (2%)

151. Livestock continues to play an important role in the economic development of Albania. It provides essential food products, like meat, milk, eggs and honey. Amongst the counties affected by the Project, Fier has the highest meat production with a focus on cattle and poultry raising. Korça is well- known for sheep breeding and also has the largest concentration of beehives. Although only a small percentage of Project-affected households report relying on livestock for more than 50% of their income, 40% of respondents affected by the ROW report owning chickens and 12% goats.

5.5 Vulnerability

152. Vulnerable groups are defined as those who, by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by land access and acquisition than others, and who may be limited in their ability to claim or take advantage of assistance provided by the Project and related development benefits.

153. Proof of land/usage rights is linked to vulnerability, raising concerns around a household’s ability to claim compensation entitlements and/or development benefits. More than 50% of the households who participated in the socio-economic survey indicated that at the time of the survey they did not have proper documentation verifying their land rights for the affected land parcel. Significant effort continues to be made by TAP and their contractors to work with these PAPs and the Government of Albania to gather the proper documentation clarifying legitimate ownership rights to these affected parcels.

154. Although PAP’s who identify as belonging to an ethnic minority group, including those who consider themselves Roma people, reside within the larger study area established during TAP’s ESIA, there are no Roma households which are or will be affected by land easement and acquisition.

155. Table 13 presents the number and percentage of Project-affected households who, based on census data, fit within the following categories of pre-existing ‘vulnerability’, and may be at a higher risk of being adversely affected by TAP land access and acquisition. These households will be further assessed for priority consideration as part of the Livelihood Assistance and Transitional (Vulnerable) Support (LATS) program described in Chapter 9, and where necessary accommodations to the CAI and SLA process have been, and will continue to be made, see Section 6.7.

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Table 13: Levels of Pre-existing Vulnerability

Vulnerable Criteria Number and %

Low-income households (reporting less than 15,000 ALL/monthly 531 households (14%) household income, and for larger households between 15,000 and 40,000 ALL/month) dependent on agriculture for their livelihood Single-parent led families 297 households (8%)

Widows (single member households) 65 years of age or older 137 households (4%)

Households who rely on social assistance for income 455 households (12%)

Households with a member who has a physical and/or mental disability 400 households (11%)

Households where the majority of adult members are unemployed 107 households (3%) Households with limited access to basic services and infrastructure (i.e. 74 households (2%) roads, health services, education)

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Project Impacts

6.1 General

156. This chapter outlines the data gathered to assess Project impacts, and then summarizes the nature and extent of impacts on land area and parcels by Project component.

6.2 Preparation Tasks

6.2.1 Overview

157. Under TSP East’s direction, four tasks have been carried out by specialist firms in order to document and quantify the land areas required for the Project, they include:

 Task 1: Digitalisation of all cadastral data in the affected cadastral zones;  Task 2: Digitalisation of property boundaries as they appear on ortho-photos;  Task 3: Valuation study;  Task 4: Cadastral update.

158. Tasks 1 to 3 had been completed at the time of submission of this LRP. Task 4 is in progress.

6.2.2 Tasks 1 and 2: Digitalisation of Cadastral Data and Property Boundaries

159. Digitalisation of the cadastral data and property boundaries of the land required for the Project involved the following:

 Scanning of RIMs (Registry Index Map);  Scanning of administrative boundaries;  Geo-referencing of RIMs;  Identifying all existing cadastral data (owner, farmer, land use, parcel size etc.);  Digitalisation of property boundaries from orthophotos (not check in the field);  Classification of digitalized data;  Digitise differences between orthophotos and satellite images;  List differences between orthophotos and satellite images.

6.2.3 Task 3: Valuation Study

160. The valuation study work was undertaken by the Albanian consulting firm Abkons and began in 2013. It has involved the following:

 Task 1 – Identification of Existing Applicable Values:  Identify and contact Albanian Government Agencies involved in land acquisition activities and seek information on compensation values;  Identify the principles of the categorization of land;  Identify existing compensation values in the pipeline area;  Review these values against local/European and EBRD requirements;  Identify information on official inflation rates and ALL/Euro evolution for the last five years;  Identify official statistics on prices of agricultural produce  Task 2 - Development of replacement value for affected assets:  Provide a categorisation of affected agricultural land using criteria such as arable/pasture, irrigated/dry, easily accessible or not, etc...  Provide a categorisation of affected non-agricultural land using relevant spatial planning categories (urban residential, non-urban residential, industrial, etc...)

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 Provide a geographical categorisation of land relevant to valuation;  Prepare a matrix by crossing categories;  Calculate the current replacement value for each of the sub-categories;  Seek from relevant Government agencies reference transactions for each of the sub-categories and associated prices per square metre and establish a market value for each of the sub-categories of land ;  Evaluate transaction costs (cost of registration and any taxes, fees, rights, potential rights to subsidies that might be lost as a result of the change in land use, etc... that might be due to be added on top of the land value);  Evaluate the compensation value not only for full acquisition but also for the servitude resulting from the pipeline operations;  Propose an update formula taking into account recent and upcoming inflation  Compensation values were updated in 2014, and will continue to be updated on an annual basis, as necessary.

6.3 Parcel Identification and Asset Inventory

6.3.1 Overview

161. LEA Teams have been established by TAP to identify and compensate all properties potentially affected by the Project. The LEA Teams work in cooperation with local authorities of affected communities. Starting in the spring of 2013, LEA Teams began conducting surveys of affected assets and affected people in the following successive steps:

 Pre-census: the objective was to confirm, through interaction with communal authorities, the identification of all affected land parcels based on an identification study already conducted by TSP East using cadastral records, and checking available data about ownership, land use category, and cadastral value. Based on this available information, landowners and land users were tentatively identified at this stage. In a given municipality, the pre-census resulted in a list of affected plots, affected landowners and affected land users. At the stage of the pre-census, the municipality was visited by the LEA team, and information provided to municipality councils about the processes pertaining to survey and land identification, acquisition and compensation, and the grievance mechanism.  Census of affected plots: For the census, LEA team members further inspected all potentially affected plots in the presence of identified landowners and users (or their representatives). The plot and affected part was measured and described, including its current cover at the time of the inspection (annual and perennial crops), and all information needed for the valuation gathered. The following details were recorded for all potentially affected plots:  Annual Crops; perennial trees/plants; pasture area  Any developments and enhancements (fences, buildings, irrigation / drainage, water sources etc)  If structures were noted on the parcel, details of size, age, type, construction materials etc…  Potential for orphan land (review of the shape of the parcel against the footprint of the Project)  Any residential structure that might fall within the Construction Corridor and/or the 40m wide Restriction Zone B and may warrant a micro-reroute of the pipeline at that level.

162. Once the above data was collected on the affected parcel, a ‘parcel chit’ summarizing the inventoried assets was prepared on the spot and immediately submitted to the landowner and/or land user for signature.

6.3.2 Database

163. A database has been designed and operationalized to capture and record the results of all mapping and survey work, in order to calculate individual compensation offers. It includes a file of each affected plot, the associated assets, and attributing to each a unique plot registration number, which is linked to households’ dossiers.

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164.

6.4 Project Components

6.4.1 Permanent Facilities

Compressor and Metering Stations 165. As indicated in the Project Description chapter, the Albanian section of the TAP Project requires the construction of two compressor stations, one at Bilisht and another in Fier. The land necessary to construct and operate these facilities will be permanently acquired by TAP.

Block Valve Stations 166. A block valve station requires between 6-800 square meters of land. The station location is a permanently fenced area where only authorised access is possible. The area occupied by a block valve station is usually entirely overlapping with the pipeline construction corridor. TAP will include 16 block valve stations (BVS) for this portion of the Project.

167. The estimated land area required on a permanent basis for all of the compressor and block valve stations is 75 hectares.

6.4.2 Temporary Facilities

Pipe yards + Construction Camps 168. Temporary facilities include ten (10) areas to serve as pipe storage yards, and seven (7) construction camps. These areas will typically be needed for the duration of construction, i.e. two years. The land required for temporary facilities will not be purchased but will be leased on a temporary basis from its current owners.

6.4.3 Construction Corridor

169. As presented in Chapter 2, the usual width of the Construction Corridor is 38 metres. While construction itself in a given area should not take more than a few months at most, impacts within the Construction Corridor will typically last longer as reinstatement needs to be carried out after construction is complete. It is assumed that the Construction Corridor will typically need to remain in Project control for two years. In line with usual practice on similar pipeline Projects, compensation associated with the Construction Corridor will be calculated based on the 38 m wide Construction Corridor remaining in Project control for two years. The Construction Corridor will not be purchased from its current owners but will be leased by TAP for the duration of construction and reinstatement.

170. A total of 1,131 hectares of land will be required for temporary facilities and the construction corridor.

6.4.4 Restriction Zones during Operations

171. With respect to long term restrictions around the pipeline during operations, the following standards will apply.

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Table 14: Restriction Zones

Area Nature of Restriction Zone A: 8 metres strip with the pipeline at its centre (4 No buildings of whatever nature, no deep ploughing, metres from the centre line either side) no trees with deep roots

Zone B: 40 metres strip with the pipeline at its centre No residential buildings (20 metres from the centre line either side)

Zone C: 400 metres corridor with the pipeline at its For the elaboration of Urban Plans (new or centre (200 metres from the centre line either modification of existing), in Zone C, all High side) Pressure Natural Gas System safety standards have to be taken into consideration, which may restrict the number of buildings in the safety zone.

6.5 Land Impacts Associated with Access Roads

172. There will be no physical displacement resulting from any aspect of the Project, including the construction and upgrading of access roads and bridges. Routing of the access roads has been designed to minimize economic displacement, and of the 54 bridges required for the Project, only two are entirely new, and one of these will replace an existing bridge that will be demolished.

173. In most cases, the access roads already exist, so relatively little additional land will be required, keeping permanent land-take to a minimum. Land will also be required on a temporary basis to facilitate construction of the roads and bridges. This land will be restored and reinstated to the owner once construction is complete. There will be no long-term restrictions to land use related to this component of the Project.

174. There may be instances, upon the request of local authorities or central government, that TAP return public/LGU land without reinstatement to its previous condition, as in the case of the access roads and bridges.

175. Based on currently available data, some agro-businesses will be impacted by construction of the Project.

6.5.1 Quantifying Land Impacts

176. A total land area of 48,819 m2 (approximately 5 ha) will be permanently acquired for the construction and upgrading of access roads, and 1,829,564 m2 (183 ha) will be leased on a temporary basis during construction.

177. Acquiring access to land required for the construction of bridges, which is expected to be minimal and predominantly affecting state owned land, is the responsibility of the Contractor. They are obliged as part of their contract to adhere to the land access and acquisition policies and procedures established by TAP, as described in this document. TAP will monitor contractor compliance to ensure this is executed.

178. The land area required for the access roads is composed of 1157 land parcels. Almost 40% of the parcels (425) are privately owned, with the remaining owned by either the State or the Local Government Unit.

179. Table 15 provides a breakdown of the number of land parcels which will be affected by the construction of the access roads, broken down by municipality and land ownership typ

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Table 15: Summary of Project-affected Land Parcels (Access Roads)

Municipality/Commune Land type Number of Parcels Private Lands 54 Skrapar Public 59 Vendreshe Commune LGU Lands 20 Total 130 Private Lands 90 Skrapar Public 131 Qender Commune LGU Lands 25 Total 246 Private Lands 113 Skrapar Public 214 Potom Commune LGU Lands - Total 327 Private Lands 71 Korce Public 125 Vithkuq Commune LGU Lands 1 Total 197 Private Lands 60 Devolle Public 20 Qender Bilisht Commune LGU Lands Total 80 Private Lands 36 Fier Public 133 Topoje Commune LGU Lands 8 Total 177 Total 1157

180. The 425 privately owned land parcels affected by the access roads are owned and/or used by 332 households, with an estimated population of 1400 people. Twenty percent of the owners/users have more than one land parcel which will be affected, however in most cases only a portion of the land parcel is required. Table 16 illustrates the extent of impact to each privately owned land parcel affected by the access roads.

Table 16: Impacts to Private Land Parcels - Access Roads

Degree of impact to land parcel Number of Affected Parcels 0-10% 222 10-20% 95 20-30% 44 30-40% 21 40-50% 17 50-60% 7 60-70% 8 70-80% 4 80-90% 2 90-100% 3 100% 2 Total Affected Parcels 425

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6.6 Land Impacts Associated with the Compressor Stations

181. Two compressor stations will be constructed, as described in Chapter 2: Project Description. Land will be acquired by TAP on a permanent basis and will impact 356 privately owned land parcels, affecting 278 owners and/or users and an estimated population of 1200. In more than half of the cases, the whole land parcel will be acquired.

Table 17: Land Impacts - Compressor Stations

Percentage of Parcel Affected Number of Parcels

0-10% 7 10-20% 10 20-30% 18 30-40% 10 40-50% 14 50-60% 15 60-70% 16 70-80% 49 80-90% 12 90-100% 13 100% 192 Total No of Parcels 356

6.7 Land Impacts Associated with the ROW

182. More than 6500 land parcels, affecting approximately 4000 land owners/users will be temporarily leased from land owners to accommodate construction of the pipeline. The total area affected is 11,314,291 m2 or 1,131 ha. Table 13 gives a breakdown of the amount of leased land deemed agricultural, constructible, pasture land and state or LGU owned land.

183. Easement restrictions will apply to 1,163,000 m2 or 163 ha of land.

6.8 Impacts to Crops & Structures

184. The majority of the agricultural land which will be impacted by the Project is being actively cultivated, predominantly with annual crops (wheat, maize, lucerne and fodder crops). There are no perennial crops on the land being permanently acquired for the compressor or block valve stations. However the pipeline ROW will affect approximately 400 landowners and/or users growing perennial crops, the most common being apple, olive, cherry and plum trees.

185. There are 26 Project-affected people with immoveable farm-related structures (i.e. hot houses) which will be affected by the ROW.

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6.9 Impacts to Fishing & Tourism in the Land Fall Area

186. There are no landing sites or coastal communities directly within the landfall area on the Albanian coast. Small-scale, artisanal fishing is conducted along the shore close to the mouth of the Semani River by a limited number of residents who own small boats and live in nearby settlements in the vicinity of the land fall area (estimated to be 25 families)5. Fishing is not their primary occupation, but rather a supplementary livelihood activity. More recently,TAP stakeholder engagement staff have made contact with a local hunting association who have members that fish in the area.

187. Within the Directory of Fishing and Aquaculture Services, which is part of the Ministry of Agriculture, Rural Development and Water Administration (MARDWA), there is an inspectorate which was established in 2015 that is responsible for monitoring fishing. The inspector reports that there are only four people with registered fishing licenses valid for 2016. This license permits them to fish throughout the coastal waters of Fier County. These large-scale fishing vessels typically travel between 6 and 65 km off the coast to fish. TAP’s dredging and pipeline tie-in activities will be temporary and short term in nature, and offshore fishing restrictions will apply only in the safety zone area around the pipe laying vessel. Working with the Ministry’s Inspector of fishing, TAP will keep registered fishing vessels informed of the safety zone area and the schedule for off shore pipe-laying. Mitigation measures in TAP’s ESIA (2013) include inviting a representative from the local fishing community to join the pipe laying vessel to act as a liaison between TAP and local fishermen to facilitate communication and cooperation.

188. Nearshore construction in the land fall area of Albania is expected to be completed within 2-3 months and will commence in 2017. Establishment of a 2 km exclusion zone from the coast during this period will result in short-term disruption to artisanal fishing patterns.

189. In terms of impacts to fishing stocks, and the benthic fauna they may feed on (the community of organisms that live in, on or near the sea bed), the ESIA (2013) has determined that project disturbances will be minor, reversible and for the most part, short-term6.

190. TAP’s on and offshore activities are not expected to have a significant impact to the overall livelihood strategy of local residents who fish on or near the coast; however this situation will be closely monitored by LEA, and any legitimate claims of livelihood impacts will be addressed on a case by case basis through the Livelihood Assistance and Transitional Support (LATS) Program described in more detail in Chapter 9.

191. Land access related to the land fall area will not directly impact any tourist operator; tourism in the vicinity of the project area is currently small scale and includes approximately eight caravans, five holiday homes and a café, all within 200 meters of the land fall area and operated on a seasonal basis. Potential indirect impacts during the construction period will be mitigated by avoiding construction during peak tourist season, as per ESIA mitigation measures (2013)7. In the event that this is not possible, LEA will coordinate with the ESMS team to assess the nature and severity of impacts if any, and how best they can be addressed.

5 ESIA 2013 Section 6, page 86 6 ESIA 2013 Section 8, page 59 7 ESIA 2013 Section 8, page 91

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6.10 Overall Project Land Impacts

192. A summary of the land parcels affected by all Project components is provided in Table 18. Compressor and block valve stations will require the acquisition of a total of 372 land parcels. More than 6,500 land parcels will be required temporarily for the construction of the pipeline (this includes

193. re-routings), many of which will have portions of their parcel subject to long-term lease arrangements throughout the operation of the pipeline. During pipeline construction, 242 land parcels will be required temporarily for work camps and pipe lay down areas, and as indicated earlier, a total of 1,157 land parcels will be impacted by construction of access roads, a portion of which will be acquired on a permanent basis.

194. The Project will affect an estimated 5000 households, or approximately 20,000 people. People who use but do not own the affected land parcels represent close to 15% of the affected population.

Table 18: Project-affected Land Parcels by Project Component

Affected Land Parcels: Total Parcels CDP 2: Station: CS002 Compressor Station (Bilisht) 188 CDP 2: Station: CS003 Compressor Station (Fier) 168 Block Valve Stations 16 Total Permanently Affected Parcels 372

CDP 2: Temporary AGI: 7 Work Camps + 10 Pipe yards Pipe yards 151 Work Camps 91 Total Temporarily Affected Parcels 242

CDP 2: Section 4A Pipeline Segment Greek border to 2451 Vithkuq + 1 Block Valve Station CDP 2: Section 5 Pipeline Segment Vithkuq to Polican + 4 1585 Block Valve Stations CDP 2: Section 4B Pipeline Segment Polican to Landfall + 4 2266 Block Valve Stations Total No of Parcels from Re-routing Pipeline 241 Total No of Parcels Affected by Pipeline ROW 6543 Total No of Parcels Affected by Access Roads & Bridges 1157

Total Number of Project-affected Parcels 8314

195. Table 19 quantifies the total land area in both square meters and hectares, and gives a breakdown of the different land types which will be affected on both a temporary and permanent basis for the different components of the Project.

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Table 19: Summary of Land Impacts

Type of Impact Agricultural Constructible Pastureland Public/State Total area Land Land Owned Land Leased Land  Construction corridor 6,381,095 m2 3,940 m2 9,840 m2 4,919,416 m2 11,314,291 (incl. access road (638 ha) (.4 ha) (1 ha) (492 ha) m2 construction area) (1,131 ha)  Camps + Pipe yards

Permanently Acquired Land  Access Roads 575,440 m2 0 0 172,940 m2 748,380 m2  Compressor + BVS (58 ha) (17 ha) (75 ha)

Easement Restrictions Total land area – 1,632,000 m2 (163 ha)

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Stakeholder Engagement

7.1 Overview

196. This Section outlines national and international regulations guiding the approach to engaging with Project stakeholders in Albania. It identifies key stakeholder groups and describes the methods utilized to consult with them throughout the land easement and acquisition process. It also describes the engagement strategy going forward into the Project construction phase.

7.2 Legal + Regulatory Framework

197. TAP AG is committed to applying the EBRD Performance Requirements to manage the social and environmental impacts of the Project. In addition to PR5, Performance Requirement 10 (Information Disclosure and Stakeholder Engagement) is of particular relevance to the engagement process.

198. EBRD PR 10 requires identification of key stakeholders and timely relevant and understandable disclosure of Project information. The PR emphasizes the importance of ensuring that information is accessible to everyone, including to segments of the population who might be considered vulnerable or marginalized. It encourages Project proponents to use engagement methods that are culturally appropriate, and ‘free of manipulation, interference, coercion and intimidation.’

199. Albania has ratified a number of regulations relevant to access to information and community participation in decision-making. The level and nature of ‘participation’ is not explicitly defined in the legislation, but suggests that members of the local communities should work in partnership with local authorities to reach an optimal result in local decision-making and policy development.

200. The Host Government Agreement (HGA) ratified with the Government of Albania in 2013 emphasizes the importance of reaching direct agreements with the PAPs (landowners and/or users) rather than expropriation. It is TAP’s intention to reach negotiated settlements with PAPs to the extent possible.

7.3 Corporate Stakeholder Engagement Strategy

201. TAP defines stakeholders as individuals, community groups and government entities, who are directly or indirectly affected or likely to be affected by the Project. The company understands that engagement with its stakeholders during the pre-construction phase will set the tone for community, government and other relationships for the remainder of the Project’s operational lifetime.

202. As such, TAP Country Offices are committed to ensuring transparent and inclusive stakeholder engagement activities are in full compliance with the corporate strategy. The Country Offices are expected to put in place regular monitoring and evaluation of this Strategy’s implementation by means of Stakeholder Engagement Plans (SEPs). TAP’s stakeholder engagement is expected to be participative and consultative, whereby stakeholders and their interests will be systematically identified.

203. In Albania, Stakeholder Engagement Plans have been established for each phase of work related to the Project permitting and the land easement and acquisition process. This includes field work related to the:

 Digitization of property boundaries and existing cadastral data;  Compensation value study;  Census, asset verification and sample socio-economic survey;  Disclosure of Compensation Values

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7.4 Stakeholder Identification

204. Five main categories of stakeholders have been identified.

7.4.1 Directly-affected Population

205. This includes all landowners and users of the almost 8500 land parcels (of which approximately 5000 are privately owned) that will be affected by the construction and operation of the pipeline and its associated infrastructure. Vulnerable People within the Project-affected Population

206. Within the directly-affected population, there are groups who face particular challenges. This includes people belonging to minority ethnic groups (i.e. Roma), people with physical and/or mental disabilities, chronic health conditions frail elderly, female/single parent families and those who could be considered ‘materially deprived’ and/or socially excluded. A more detailed description of vulnerability in the Albanian context is provided in Chapter 9.

207. Potentially indirectly affected people include the small number of fishing and tourist operators in the land fall area.

7.4.2 National, County, Municipal and Local Government Units

208. Key government stakeholders include the Ministry of Energy and Industry; Ministry of Transport and Infrastructure; Ministry for Urban Development and Tourism; Ministry of Economic Development, Trade and Entrepreneurship; Ministry of Agriculture, Rural Development and Water Administration; Ministry of Environment; Ministry of Finance and Ministry of Justice.

209. Three counties are affected by the TAP Project – Berat, Fier and Korça, within which there are ten (10) municipalities and twenty-six (26) Project-affected administrative units, or Local Government Units (LGU) which will be impacted.

210. Other national agencies of importance to the land easement and acquisition process include:

 Immoveable Property Registration Offices (IPRO)  Inter-institutional Committee for TAP  National Agency for Territorial Planning  National Tourism Agency  National Agency of Property Compensation and Restitution  National Coast Agency

211. Regional and prefecture authorities of relevance to the Project include:

 Immovable Property Registration District Office  Regional Environmental Agency  Regional Agriculture Directorate  Regional Directorate of Forests  Irrigation and Drainage Boards  Rural Agricultural Development Agency  Development Agency of Mountain Area  Regional Agency of Property Compensation and Restitution

7.5 Engagement Methods

212. TAP employs a variety of methods to engage with their stakeholders and disseminate Project information. These methods include:

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 Community-based Project offices  Open Houses + Public Display processes, in particular related to verifying and updating cadastral data;  Individual and small group meetings;  Community meetings;  Brochures, banners and posters and the Guide to Land Acquisition and Compensation (GLAC), see TAP website;  Media press releases;  TAP Website; and Social media (i.e. SMS, blogs).

7.5.1 Community-based Project Offices

213. There are currently three community-based TAP offices one in each of the three affected counties, with plans to open a fourth office in the town of Berat in 2016. A Community Liaison Officer (CLO) staffs each of the offices, and their responsibilities include:

 Act as liaison between the community/stakeholders and the Project.  Provide information to interested stakeholders on Land Easement Acquisition (LEA) and other TAP procedures, including how to access the grievance mechanism  Conduct local public awareness activities through targeted community interaction.  Provide information to TAP’s Country Office on potential issues and social risks within Project-affected communities and amongst other key stakeholders  Solicit information on community needs to assist TAP in identifying potential community investment initiatives  Provide assistance to the LEA team around the secure land access process (SLA).  Align with and monitor stakeholder engagement activities being performed by different contractors/subcontractors

214. There are also five Immovable Property Registration Offices (IPRO) located in Devoll, Skrapar, Fier, Korça, Berat, Lushnje with additional professional staff supported by TAP to assist PAPs with compiling and verifying property documentation and land registration, and for publically displacing cadastral information and Project routing maps.

7.5.2 Public Display

215. As part of updating the cadastral data, close to 50 public display processes were organized throughout 2014-15 in 10 public display offices near the access road areas, and at 31 IPRO offices along the pipeline route.

7.5.3 Printed Materials

216. A variety of brochures, posters and leaflets, including the Guide to Land Acquisition and Compensation (GLAC) have been developed and distributed to each PAP and other key stakeholders. All print material is available in both Albanian and English at TAP offices. They are listed below.

 Guide to Land Acquisition and Compensation, 8000 copies of which have been distributed and a copy has been posted on the TAP website  Notification Poster for the start of C&AI & cut-off date  Notification Poster on property verification  Notification Poster on disclosure of compensation values (for both draft and final version)  Notification Poster on the start of AR construction works  Grievance leaflet distributed to each PAP.

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7.5.4 Media

217. Media campaigns were planned and undertaken to inform stakeholders of each phase of the project including the update of cadastral data, census and asset inventory and socio-economic survey, and in advance of the Secure Land Access process.

218. A specific media campaign was also organized to inform PAPs of community meetings related to the compensation values disclosure process. This included announcements in seven national newspapers and magazines, two radio stations, two television networks and on both the TAP and IPRO website.

7.5.5 Stakeholder Engagement Plans

219. At each stage of the Project, Stakeholder Engagement Plans have been prepared to guide engagement activities. A timeline showing the various points at which engagement activities were planned and undertaken is illustrated in Figure 15.

Figure 15: Stakeholder Engagement Activities Timeline

7.6 Phases of Engagement & Issues Raised

7.6.1 Access Roads Engagement

220. Engagement with people affected by the construction and upgrading of the access roads was undertaken in phases and included meetings with affected community members and local authorities in each of the 21 LGUs.

221. A pre-census was undertaken between August–September 2013 to collect data on the current ownership and land use within a 100m area along the pipeline corridor for project planning purposes. Stakeholders from the 31 communes and municipalities, including the Head of Communes (HoC) were contacted, and a letter from the Project Director of TAP distributed during the first visit to the areas explaining the aim of the pre-census and requesting the HoC’s support in the exercise and that of the LGU agronomist and the Head of Village.

222. Engagement activities in advance of the census & asset inventory for the Access Roads included 15 meetings in which PAPs from the town of Çorovodë and 21 villages were invited to attend.

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7.6.2 Public Disclosure of Compensation Values

223. Between May and July 2014, TAP conducted 3 high level meetings involving 30 representatives from the national authorities (Ministry of Energy and Industry, Ministry of Agriculture, Rural Development and Water Resources, Ministry of Environment) to disclose and gather feedback on the compensation values. This was followed by twenty-one meetings with local authorities (Korça, Berat and Fieri Regional Authorities and Prefecture Authorities) and PAPs, involving close to 400 participants.

224. Two posters and two set of tables presenting the compensation values were placed in 106 affected villages along the pipeline corridor, where feedback and written comments were encouraged. A total of 150 stakeholders submitted comments on the values, 70% of which were favour of the values as disclosed.

225. After the opinions and inputs of national, regional and local authorities and PAPs were taken into consideration, some minor adjustments to the values were made. The final values were then presented to the affected communities through posters in each affected village and also in the GLAC.

7.6.3 Pipeline Engagement Activities

226. With regard to the pipeline, and similar to the engagement approach with the other components of the Project, initial contact was made with PAPs through phone calls and distributing official letters explaining the Project and its potential impact on land in the area. Local community meetings were also held in order to provide information on LEA activities. These meetings introduced LEA - the new phase of the TAP project, the construction of the gas pipeline route, compensation methods, and in particular, what type of information will be needed from the PAPs.

7.6.4 Secure Land Access (SLA) Engagement Activities

227. The SLA process undertaken for each Project component involves a series of steps which are outlined in more detail in Chapter 8. The process begins with PAPs being officially contacted and invited to a community meeting where the SLA process is explained and letters of offer distributed to each affected PAP and a schedule for the first compensation meeting is presented. All phone calls, official letters of invite and minutes of meetings are documented.

7.7 Special Accommodations for Vulnerable PAPs

228. Throughout the CAI and continuing into the SLA process, LEA teams have made every effort to accommodate the needs of all PAPs, particularly those requiring special accommodations due to age, illness or disability issues. All PAPs were provided with transportation to sign contracts with notaries, and during the initial SLA meetings, a representative from the local bank accompanied the teams to assist those PAPs without bank accounts to establish an account.

229. For approximately 6% of project-affected households where disability was an issue, meetings were conducted in people’s homes and in the presence of family members or people from within their support networks.

230. In the case of the almost 100 privately owned land parcels located in particularly isolated and disadvantaged communities within the municipality of Skrapar, teams established temporary residences in the area which aided in completing the land access process, and served to build a positive rapport amongst the project-affected population and ensure project information was well understood.

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7.8 Key Stakeholder Issues

231. During the LEA-related community information and disclosure meetings held over 2015 along the pipeline route, key issues raised by PAPs, central government entities and local authorities are summarized in Table 20.

Table 20: Stakeholder Issues

Stakeholder Group Key Issues Raised Central government units - Land categorization (productive and unproductive land) Ministry of Energy and Industry - Restrictions which will be applied along the pipeline corridor Ministry of Agriculture, Rural - The methodology used for compensating people that have and those that Development and Water do not have legal documents. Administration - The expropriation procedure - Transaction cost payment

Local authorities - Records of the composition of the Farm Family8 of the land owners Head communes/municipalities - Compensation values methodology - Rreinstatement of affected land after the construction - Procedure that will be followed in the cases when the owner of land does not agree with the values of compensation - Questions regarding TAP community investment Project-affected people - TAP’s process for dealing with orphan land - agricultural activities on leased land, following construction - Determination of lease prices - Compensation entitlements for greenhouses - Benefits for Albania from the Project and local access to natural gas - Questions related to compensation values for apple plants, and whether they will be evaluated based on area m2 or per tree - Inquiries on the permanent land take for the CS and BV stations

232. At community meetings, participants were asked to evaluate their engagement with the Project, and in most cases (more than 90%) the respondents who completed the survey indicated that they were satisfied with the structure of the meeting and found the information provided clear and understandable.

7.9 Stakeholder Engagement Going Forward

233. General relationship building and stakeholder engagement around non-technical risks and issues going forward into the construction phase of the Project will be provided mainly through the four TAP community-based offices. Oversight of Project contractors and day-to-day construction activities, to ensure engagement activities are conducted in accordance with Contractor Control Plans and in line with TAP’s overall Stakeholder Engagement Strategy, will be provided by the social monitors who form part of TAP’s ESMS team.

234. The LEA team will continue to interface regularly with Country office stakeholder engagement staff, TAP’s Grievance personnel, ESMS and Project contractors to maintain the flow of LEA related

8 According to Civil Code of Republic of Albania, a farm family is composed of persons who are related to each- other by kin, marriage, adoption/affiliation acceptance as family members and the property is jointly owned by its members, who through their labours or other acquired rights, have contributed in the creation and keeping of the farm economy.

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information, monitor land entry and exit protocols, and to ensure stakeholder concerns around land issues are appropriately channelled and effectively addressed.

235. A summary of the LRP will be uploaded to the TAP website and distributed to key stakeholders. A brochure describing the Livelihood Assistance and Transitional Support (LATS) Program will also be prepared and distributed.

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Compensation Entitlements

8.1 Key Principles

236. Key principles of the TAP land and easement acquisition and access strategy are the following (details are provided in further sections of this chapter):

 Land and easement acquisition and access for TAP will be carried out in compliance with Albanian law and international requirements (EBRD PR 5).  TAP will seek to avoid physical displacement and to minimise economic displacement.  Impacts on land ownership, land use and livelihoods shall be compensated.  Land required on a permanent basis for Above Ground Installations will be purchased from its current owners.  Land required on a temporary basis, including the pipeline Construction Corridor and land required for construction related temporary facilities such as construction camps or pipe storage yards, will not be acquired by TAP but will be leased for two years from its current owners and handed back to these owners after the end of construction and reinstatement.  For land that is subject to reuse restrictions during operations, these restrictions will be compensated to affected landowners.  Compensation for land and crops based on full replacement value and paid in advance of construction. Full replacement value will include related transaction costs.  Orphan land, i.e. land that is severed or bisected such that a non-acquired portion of the land plot is made inaccessible, uneconomic and/or unviable, will be compensated.  The process of land access, including identification of affected plots and owners/users, land and easement acquisition and land leases, will be administered by TAP and designated land agents.  These TAP land teams will seek to enter into negotiated settlements with affected landowners and land users wherever possible. Where no agreement can be reached, land teams may have to resort to expropriation, according to the process described in the Albanian Expropriation Law, under the control of the competent authorities and courts of law. Amongst others, this may apply in situations where the whereabouts of the landowner or land user are unknown (absentee landowners) as well as in situations where good faith negotiations do not achieve a mutually acceptable agreement.  Affected people will have access to a grievance mechanism, including a first tier of internal grievance review by TAP, with the possibility for aggrieved individuals to resort to a second tier of independent review of the grievance.  Affected people will have access to livelihood support measures to ensure standards of living of those affected are restored to pre-Project levels.  Vulnerable people will be identified and specifically assisted as needed.

8.2 Compensation Principles

8.2.1 Permanently Acquired Land

237. Permanently Acquired Land includes land required for the Compressor Station, for the metering station and for the six block valves. Compensation principles are the following:

 TAP will purchase Permanently Acquired Land from its current owners in full and perpetual ownership, granting TAP full right to construct and operate the anticipated facilities.  TAP will seek to enter in negotiated sale-purchase agreements with current landowners. Only in case a reasonable agreement cannot be reached would expropriation be used as a last resort.

238. Compensation for permanently acquired land will include the following four elements, as applicable:

 Compensation for land at the Project Land Acquisition Rate;  Compensation for any standing annual or perennial crops at the Project Crop Rate;

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 Compensation at replacement value for any structures or developments on land that the landowner or land user can demonstrate ownership of;  Eligibility for participation in livelihood restoration programs designed to restore livelihoods to pre- Project levels (further details can be found in Chapter 9).

8.2.2 Temporarily Occupied Land

Pipeline Construction Corridor 239. The Pipeline Construction Corridor is 38 metres in total width. To accommodate construction constraints, and particularly the storage of top soil on one side of the corridor, the pipeline is not located at the centre of this 38m strip, which will typically be split into two parts of different widths (see

240. The 38m Construction Corridor will be occupied during construction for two years. Part of this Construction Corridor will also be further restricted (the 8m Restriction Zone A is entirely located within the 38m Construction Corridor, and the 40m wide Restriction Zone B overlaps partly with the Construction Corridor, but not entirely due to the pipeline not being at the centre of the Construction Corridor).

241. Compensation for the Construction Corridor will include the following elements, as applicable:

 Land rental: The Project Land Rental Rate is calculated as 12.5% of the land replacement value per year for the first two years of rental. If the rental period needs to be extended, the Project Land Rate will be 10% of the land replacement value for each additional year of rental. In the typical case where the land is needed for two years, the Project Land Rental Rate will be equal to 25% of the land replacement value, or 25% of the Project Land Acquisition Rate.  Crops: Compensation for any standing annual or perennial crops at the Project Crop Rate.  Compensation for long-term restrictions: see below section 7.2.5.  Eligibility for participation in livelihood restoration programs designed to restore livelihoods to pre- Project levels (further details can be found in Chapter 9).

242. Because the shape of the restricted areas do not exactly superimpose with the Construction Corridor, the agreements to rent the land for two years and the long term easement agreement will be separate, even if the negotiation is conducted in one round with the related landowner.

8.2.3 Other Temporarily Occupied Land (Construction Camps, Pipe Storage Yards, etc.)

243. Such facilities include construction camps, pipe storage yards, access roads, etc… Land will be occupied on a temporary basis during the maximum duration of construction, i.e. two years, then reinstated to pre-Project conditions and handed back to the owner.

244. Compensation principles are the following:

 TAP will not purchase land required temporarily for construction related facilities but will enter into negotiated rental agreements with current landowners for the two year maximal duration of construction.  TAP will reinstate land required temporarily for construction related facilities at the end of construction to its previous condition. Where such land is agricultural, reinstatement will seek to restore pre- construction agricultural productivity within a period of three years after the end of construction.9

9 See Chapter 8 and the Land Reinstatement Guidance Note for additional detail regarding the land reinstatement process.

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245. Compensation is essentially the same as that applicable for the Pipeline Construction Corridor (except that there are no long term restrictions) and will include the following elements, as applicable:

 Land rental: The Project Land Rental Rate is calculated as 12.5% of the land replacement value per year for the first two years of rental. If the rental period needs to be extended, the Project Land Rate will be 10% of the land replacement value for each additional year of rental. In the typical case where the land is needed for two years, the Project Land Rental Rate will be equal to 25% of the land replacement value, or 25% of the Project Land Acquisition Rate.  Crops: Compensation for any standing annual or perennial crops at the Project Crop Rate.  Eligibility for participation in livelihood restoration programs designed to restore livelihoods to pre- project levels

8.2.4 Orphan Land

246. Where a plot that is wider than the Pipeline Construction Corridor is acquired, the temporary occupation by TAP of the part of this plot located in the Construction Corridor may leave sections of land on either side that will not be required for the Project and would normally not be compensated. Agricultural activities on these sections of land could normally be continued. There will be cases, however, where the remaining part will be too small to make cultivation economically worthwhile. Such a situation (“Orphan Land”) is illustrated in Figure 16. Note that the figure represents a situation, where the plot is affected as a result of the pipeline land occupation, but the same could occur as a result of land purchase associated to an above ground installation, in which case the remaining piece of land would be “orphaned” permanently, whereas in the situation shown it is orphaned for the period of construction only.

247. Similarly, access to the remaining land across the construction corridor may be restricted making cultivation during construction impractical or uneconomic. If small remaining areas of a parcel are made uneconomic as a result of the purchase or occupation, they may be eligible for compensation as “orphan land” subject to conditions.

248. Whether a parcel qualifies as “Orphan Land” will be reviewed by TAP on a case by case basis based on a request lodged by the landowner and/or land user. The following criteria will be considered in this review:

 Size, dimensions and shape of the orphaned part of the plot;  Access restrictions and whether these will only last for the duration of the construction period or may be permanent (which is not anticipated to occur except in very exceptional cases);  Size and nature of mechanical equipment typically used for cultivation on this plot and whether such equipment reasonably can be used given the size, shape and dimensions of the orphaned part of the plot;  Potential restrictions to irrigation or drainage during the construction period.

249. Further detail on how orphan land is being determined can be found in Appendix 5.

250. Compensation for Orphan Land, once recognised as such, will be based on the same entitlements as the main affected piece of land, that is to say:

 Same entitlements as permanently acquired land if the piece of land is orphaned permanently;  Same entitlements as temporarily occupied land if the piece of land is orphaned temporarily for the construction phase only.

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Figure 16: Orphan Land Adjacent to Pipeline Corridor

8.2.5 Easements

Restriction Zone A 251. Restriction Zone A will not be purchased by TAP but will be subject to a long term easement, to be registered by TAP on the associated land ownership titles. Restrictions associated with this easement (or servitude) will be compensated according to the following principles:

 In urban land: the prohibition to build any structure entails a significant loss in value and will be compensated at 90% of the land value;  In agricultural land: the prohibition to build any structure does not entail any loss as such land is deemed non constructible. However, the restriction not to cultivate any deep rooted plants and/or trees or to plough the land deeply Does entail a loss in value and will be compensated at 50% of the land value;  In pasture land, the restriction will be compensated at 25% of the Project Land Acquisition Rate;  In forest land, the restriction to grow any trees in Restriction Zone A entails a significant loss in value and will be compensated at 100% of the Project Land Acquisition Rate.

Restriction Zone B 252. Similarly, restriction Zone B will not be purchased by TAP but will be subject to a long term easement, to be registered by TAP on the associated land ownership titles. Restrictions associated with this easement will be compensated according to the following principles:

 In urban land: like in Zone A, the prohibition to build any structure entails a significant loss in value and will be compensated at 90% of the land value;

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 In agricultural land: the prohibition to build any structure does not entail any loss as such land is deemed non-constructible. There is no restriction upon agricultural activities in Zone B, and therefore the servitude associated to Zone B in agricultural land will not be compensated;  In pasture land, there is no relevant restriction to further usage of Restriction Zone B and hence no compensation will be paid;  In forest land, there is no relevant restriction to further usage of Restriction Zone B and hence no compensation will be paid.

Restriction Zone C 253. Depending on current and predictable housing densities in the 400m corridor and the need to adhere to High Pressure Natural Gas System safety standards, Zone C may be subject at a later stage to a long term easement restricting building rights beyond the acceptable density of 45 houses per linear mile in the 400m corridor. Where applicable, restrictions associated with this servitude could be compensated in urban land on a case by case basis, based on the difference in value between constructible and non-constructible land. This restriction is not applicable in agricultural land, which is deemed non-constructible, and shall therefore not be compensated.

8.3 Compensation Entitlements

8.3.1 Eligibility

Private Land 254. Where the owner and the user is the same individual, this person will receive all elements of compensation mentioned above in Section 8.2.1 (permanent acquisition), 8.2.2 (Pipeline Construction Corridor), and 8.2.2 (temporary facilities).

255. Where land is farmed by a land user separate from the landowner, the share between the landowner and the land user will be the following :

 Permanently acquired land: o Compensation for land to landowner; o Compensation for crops to land user

 Temporarily occupied land: o Land rental fee to landowner; o Compensation for crops to land user; o Compensation for restrictions to land owner.

256. Compensation for any structures and developments on land (irrigation, drainage) will be paid to the demonstrated owner of such structures and developments, who could be either the land owner or land user depending on situations.

Municipal and Other Public Land 257. Where municipal or other publicly owned land is used by a private farmer, this land user will receive the following elements of compensation:

 Permanently acquired land: o Compensation for crops; o Compensation for any structures or developments on land that the land user can demonstrate ownership of.

 Temporarily occupied land: o Compensation for crops.

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8.3.2 Entitlement Matrix

258. The Project will apply the entitlement matrix shown in Table 21.

Table 21: Entitlement Matrix

Type of impact Compensation Entitlement Permanent acquisition of private land To Land Owner: Compensation for land at Project Land Acquisition – Permanent facilities Rate (compressor stations, block valves, access roads & bridges) To Land User for agricultural land only: Compensation for any standing annual crop at the Project Annual Crop Rate x 2; Compensation for perennial crops at Project Perennial Crop Rate Compensation at replacement cost to development owner for any developments and enhancements on land (irrigation and/or drainage structures, sheds, wells, etc…) Temporary occupation of private land To Land Owner: Compensation for land rental at Project Land Rental in the pipeline and access road Rate (12.5% of the Project Land Acquisition Rate per year for construction corridor the first two years of rental; 10% of the Project Land Acquisition Rate for each additional year).

To Land User for agricultural land only: Compensation for any standing annual crop at the Project Annual Crop Rate x 2; for perennial crops at Project Perennial Crop Rate Temporary occupation of private land To Land Owner: Compensation for land rental at Project Land Rental for construction related facilities Rate (12.5% of the Project Land Acquisition Rate per year for (construction camps, pipe the first two years of rental; 10% of the Project Land Acquisition storage yards, etc…) Rate for each additional year).

To Land User for agricultural land only: Compensation for any standing annual crop at the Project Annual Crop Rate x 2; for perennial crops at Project Perennial Crop Rate Temporary occupation of municipal or To land owner (if relevant): Compensation for land rental at Project State land during construction Land Rental Rate (12.5% of the Project Land Acquisition Rate (whether in the pipeline corridor per year for the first two years of rental; 10% of the Project or for construction related Land Acquisition Rate for each additional year), or other such facilities) rate as may be agreed with the State or the Municipalities, multiplied by two years To land owner (if relevant): Compensation for purchase of easement right in respect of long term operational restrictions in Restriction Zones A and B, at the Project Land Restriction Rates (calculated as a percentage of the Project Land Acquisition Rate – see below) To Land User for agricultural land only: Compensation for any standing annual crop at the Project Annual Crop Rate x 2; for perennial crops at Project Perennial Crop Rate

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Type of impact Compensation Entitlement Orphan land Subject to case by case review, land that is severed by construction activities or becomes uneconomical for cultivation as a result of construction may be declared “orphan” and become eligible for compensation along the same lines as above (either temporarily orphaned or permanently orphaned land). Long term easement in restriction In urban land: 90% of the land value zone A In agricultural land: 50% of the land value In pasture land: 25% of the land value In forest land: 100% of the land value. Long term easement in restriction In urban land: 90% of the land value zone B In agricultural land: 0% of the land value In pasture land: 0% of the land value In forest land: 0% of the land value. Long term easement in restriction Case by case review where and when the need arises. zone C Minimum Payment The minimum compensation total for each affected parcel is fixed at 400 Euros per parcel. This amount will be divided among the Land Owners. Compensation for loss of subsidy Any PAP with documented evidence that they have lost a government subsidy as a result of the Project will be compensated.

8.4 Valuation Principles

8.4.1 Methodology of the Valuation Study

Overview 259. TAP commissioned a specific study to determine appropriate compensation values for land and crops (see Annex 4). This study was carried out by a specialised Albanian consulting firm in 2012 and 2013. It included the aspects described in section 7.4.1.2.. As compensation values are generally valid for 12 months, TAP updated the values in 2014/1510. Specific values continue to be updated as required (see Annex 6 for a recent memo on additional crop values).

Identification of Existing Applicable Values 260. The consultant was first tasked to identify all applicable rates used by agencies of the Central Government and local governments currently involved in negotiated or compulsory land acquisition activities. In practice:

 All Albanian Government agencies involved in negotiated or compulsory land acquisition activities and in collecting land taxes were identified, met and interviewed, and any information on compensation values and valuation methodologies they use was gathered and collated; in particular, all Decision of the Council of Ministers (DCM) applicable to expropriation for various projects carried out in the same districts were identified;  Methodologies applied in Albania for valuation were identified and compared;  Values per DCMs and the methodology used to establish them were further reviewed by the consultants against the following criteria:  Methodology of calculation, and whether it can reflect current market conditions;  Categorisation of land used;

10 See values listed in the GLAC http://www.tap-ag.com/land-access/what-will-be-affected/in-albania

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 Degree of currency (how old are the values used);  In addition, information about official inflation rates in Albania for the last five years and the evolution of the ALL / Euro exchange rate was also gathered and specific values used for the acquisition of easement rights were investigated.

Development of Replacement Value for Project Affected Assets 261. With regards to land, the Consultant provided or investigated the following:

 A categorisation of affected agricultural and non-agricultural land using criteria such as geography, urban/rural, arable/pasture, irrigated/dry, steep slope/little or no slope, easily accessible or not;  Reference transactions in the different cadastral zones (from APRI), and the cost of transaction (cost of registration and any taxes, fees, rights, etc. that may be payable on top of the land value);  An estimate of how transactions can be underestimated for tax reasons when buyers register them;  A calculation of current replacement values for each of the sub-categories based on reference transactions, the “tax understatement factor” as described above, and transaction costs.

262. With regards to annual and perennial crops, the valuation consultant provided an inventory of annual and perennial crops cultivated along the route, and carried out of survey of current market prices and potential yields for each of the identified crops. Based on the results of this survey, market values of produce per unit of weight or volume and yields in weight or volume per square metre were generated. For perennial crops specifically, typical growth periods and evolution of yields with age were also gathered.

8.4.2 Land Valuation

263. The EBRD requirement of basing valuation of assets on the “replacement value” would typically require valuation to use the comparative approach, whereby reference transactions are collated for similar pieces of land to those affected, and average values are derived. However, in the areas intersected by the TAP pipeline, it was found in the first part of the valuation study mentioned above that the comparative approach faces the following challenges:

 In most areas along the pipeline route, there are few reference transactions that one can validly use to establish replacement values through the comparative approach;  In many cases, transactions may be under-declared for tax reasons.

264. It was therefore decided not to use the comparative method, and to value agricultural land, including meadows and pastures, based on the income approach (i.e. the value of the land is approached through the profit that it can generate), in line with Decision 183 of 28 April, 2005. The profit is calculated based on the typical yield one can expect from a certain piece of land, the market price of the produce, and the expenses necessary to grow the crop. The yield (hence the profit) varies depending on the following factors:

 Soil category: soil is categorised according to five classes according to the Decision 183:  I: soils that have only slight limitations that restrict their use  II: soils that have moderate limitations that restrict the choice of plants or that require moderate conservation practices  III: soils that have severe limitations that restrict the choice of plants or that require special conservation practices, or both  IV: soils that have very severe limitations that restrict the choice of plants or that require very careful management, or both  V: soils that have very severe limitations that make them generally unsuitable for cultivation and that restrict their use mainly to pasture, rangeland, forestland, or wildlife habitat  Presence or absence of a functional irrigation system  Agro-climatic zone, the route of the pipeline being subdivided into three agro-climatic zones.

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8.4.3 Crop Valuation

265. The replacement value of annual crops is based on typical yields and market prices, which have been gathered for all main crops in all regions intersected by the TAP Project. The replacement value of perennial crops is based on the income lost during the period required to re-establish the perennial tree or plant.

8.5 Taxes and Subsidies

266. Any taxes that recipients of compensation may have to pay in direct relation to their receiving compensation will be offset by TAP. The specific methodology for applying this may vary depending on the type of compensation payment (Land Acquisition; Land Rental; Easements/Restrictions; Crops; Structures; etc.).

267. In the event that rights to agricultural subsidies paid by the Albanian government are lost as a result of the change in land use, compensation will be increased to offset the loss of the subsidy, subject to proper justification being submitted by the affected individual.

8.6 Livelihoods Assistance and Transitional Support

268. Compensation entitlements have been designed to compensate fairly for Project land easement and acquisition impacts, including any related temporary and /or permanent loss or disruption of income and access to productive assets experienced by Project-affected people. However, compensation alone may not guarantee restoration of living standards to pre-Project levels, and the opportunity for improving livelihoods.

269. Complementary livelihoods assistance and transitional support measures will be delivered to affected people, particularly those at an elevated risk of displacement, deemed ‘vulnerable’ and/or who face exceptional challenges, to strengthen their efforts to restore their livelihoods. The Livelihoods Assistance and Transitional Support (LATS) program is described in more detail in Chapter 9.

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Secure Land Access (SLA)

9.1 Preparing Offers

270. Based on the agreed inventory, the proposed compensation will be calculated for land and standing annual and perennial crops, according to the entitlement matrix and applicable rates. All compensation will be based on the entitlement matrix and rates detailed in Chapter 7.

271. Developments and enhancements on land, as well as any structure, will be valued on a case-by-case basis. A clear compensation calculation sheet will be developed that can be easily explained to the land owners and land users. In view of preparing the different compensation agreements mentioned below, this sheet will clearly distinguish the different nature and duration of impacts, ie.:

 Compensation arising from permanent acquisition of land (above ground installations), which will further be sanctioned in a sale-purchase agreement.  Compensation arising from temporary occupation of land (pipeline construction corridor and temporary facilities), which will further be sanctioned in a rental agreement;  Compensation arising from restrictions upon land (pipeline restrictions zones A and B), which will further be sanctioned in an easement agreement;  Compensation arising from the destruction of both Annual and Perennial Crops standing in the field at the time of occupation;  Any other category of compensation for which the PAP is eligible.

9.2 Offer and Negotiation

272. Once the compensation that is owed to a landowner or user has been calculated, the owner or user will be notified in writing in Albanian language of the compensation offer. The offer will include all relevant details per the compensation calculation sheet mentioned above in paragraph 153.

273. The negotiation process starts with the first visit to the PAP by a representative of the TAP land access team. The procedure for securing land access is elaborated upon, after which the offer is presented and explained. During a period of approximately two weeks, the PAP is given the time to consider the offer, to ask for additional explanation and information, or to seek legal advice. Dedicated Community Liaison Officers will be available, operating from TAP’s temporary field offices, to answer questions on procedures and other legal solutions.

274. Two weeks after the first visit, the PAP is visited for the second time. A witness will accompany the representative of the TAP land access team, to be present during the signing of the offer. If the PAP refuses to sign the offer during the second visit, a Minute of Disagreement is signed by the representative of TAP and the witness. The PAP is asked to sign for confirmation. Depending on the size of the region, the number of land access teams and the availability of witnesses, the signing procedure will take two weeks up to one month per region.

275. Notwithstanding reasonable endeavours of TAP, if the PAP cannot be persuaded to sign the offer, and the Minute of Disagreement is drawn up, the negotiation procedure will be deemed unsuccessful. In that case, an expropriation procedure will start to obtain rights for the land required by TAP. The offer remains open until the expropriation (or mandatory easement) has ended, to allow the PAP to change his/her mind and sign the Offer.

276. If the PAP does sign the offer, local TAP offices will assist the PAP to collect all necessary documents and permits, and prepare for the signing of the contracts for lease, easement, or transfer of ownership. Because the PAP has to be present when the deed is signed by the notary, local notaries will be selected. In case no local notary is available, transport for the PAP to and from the notary could be

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277. provided. Depending on the cooperation of the Government, this procedure will take one or two months. In case the PAP is not able to produce all necessary documents, the expropriation procedure may yet be used.

278. The compensation amount in the TAP offer will be based on the asset record (TAP valuation procedures). The Government could use a separate valuation procedure for the expropriation procedures. In some cases, it might be that the host government determines a higher valuation of compensation payments for the expropriation of land. If this were the case, TAP would pay the difference in a second instalment to the PAP.

279. EBRD Performance Requirements prescribe that compensation must be paid prior to entry into land.

280. Figure 17: Secure Land Access Process below provides an overview of the SLA process

Figure 17: Secure Land Access Process

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281. The compensation offer will be confidential, but the landowner/user may invite outside advisors or other assistance if desired. Payment will typically be made within one month after the compensation agreement is reached, prior to entry onto the land.

282. Once an agreement on compensation is reached, agreements will be signed as relevant to the situation under consideration, as follows:

 Sale Purchase Agreement for permanent acquisition of land (above ground installations);  Rental Agreement for temporary occupation (pipeline construction corridor and temporary facilities);  Easement Agreement for restrictions upon land (pipeline restrictions zones A and B). Although the Easement Agreement will enter into force only upon land hand back at the end of construction, it will nevertheless be signed before entry into land and associated compensation will be paid at that time. Its contents will be re-explained to the land owner (particularly in respect of restrictions to building and construction in Restriction Zones A and B) at the time the Easement Agreement enters into force at land hand back after construction and reinstatement are complete.

283. After execution of the agreement by both parties, compensation will be paid in one installment in Albanian ALL into the bank account designated by the land owner and/or land user and identified in the compensation agreements. In case the compensation beneficiary does not have a bank account, s/he will be supported in opening such at the nearest bank subsidiary. TAP will work with Albanian banks to devise a payment mechanism that does not entail any cost to the compensation beneficiaries, and may pass an agreement with one or several banks to allocate the responsibilities of payment logistics to these banks.

284. The landowner will be asked to vacate the land one week after payment. After such period, the Project will have the right to enter into the land if required. Upon entry into land that is to be temporarily occupied (pipeline construction corridor and temporary facilities), a Land Entry Agreement will be signed between the landowner, the land user (if relevant), TAP and the relevant construction contractor. This agreement will describe the condition of the land upon entry by the Contractor and establish respective responsibilities of TAP and the Contractor to the landowner and land user with regards to land maintenance during occupation and further reinstatement.

9.2.1 Land Exit Agreement and Hand Back

285. Upon completion of construction and reinstatement in temporarily occupied land (pipeline construction corridor and temporary facilities), TAP and the construction contractors will carry out an exit inspection with the previous land owner/user of all land that was used during the construction period. The aim of this inspection is to ensure that the land has been left in a suitable state whereby previous agricultural activities may be resumed on the land, subject to reuse restrictions mentioned previously. If the inspection concludes that reinstatement is satisfactory, the usage right of the affected land plot will be handed back to the land owner and/or land user for agricultural activities. A land exit agreement will then be signed to include this information and will be signed by the construction contractor and the affected landowner or land user, and by TAP as a witness. This agreement will confirm that the affected landowner or land user is satisfied with the quality of the reinstatement of the land. Any claim arising from potentially unsatisfactory reinstatement will be managed through the grievance management mechanism outlined in Chapter 11.

286. During the exit inspection the landowner/user will also be provided with all required information in respect of permissible and restricted activities on the land plot, both in writing and verbally, and contact details of the team responsible for the monitoring of the Project during operations. The contents of the Easement Agreement signed upon entry into land will be re-explained to the landowner.

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Livelihood Assistance and Transitional Support

10.1 Overview

287. EBRD Performance Requirement 5 defines economic displacement as “loss of assets or resources that leads to loss of income sources or means of livelihood as a result of project-related land acquisition and/or restrictions on land use. A key objective of PR5 is to “restore or, where possible, improve the livelihoods and standards of living of displaced persons to pre-displacement levels”.

288. PR5 stipulates also that when a project causes “temporary or permanent loss of income or livelihood through, for example, interruption or elimination of a person’s access to his/her employment or productive assets”, the project will provide the following in addition to compensation:

 Livelihood assistance (for example, credit facilities, training or job opportunities) and opportunities to restore, and where possible improve, their income-earning capacity, production levels and standards of living, and;  Transitional support to economically displaced persons, as necessary, based on a reasonable estimate of the time required to restore their income-earning capacity, production levels and standards of living.

289. Compensation entitlements outlined in Chapter 7 have been designed to compensate fairly for Project land easement and acquisition impacts, including any related temporary and/or permanent loss or disruption of income and access to productive assets experienced by Project-affected people. These entitlements will not necessarily assure restoration of living standards of all Project affected households. Complementary livelihoods assistance and transitional support measures will therefore be delivered to ensure that all affected people, particularly those facing exceptional or disproportionate challenge as a result of Project land acquisition, are able to restore their income stream to pre-Project levels and where possible improve them.

290. The following section outlines TAP’s plan for achieving its commitment to ensure Project-affected people are able to restore and where possible strengthen their livelihood through a Livelihood Assistance and Transitional Support (LATS) program.

10.2 Objectives of Livelihood Assistance & Transitional Support (LATS)

291. LATS has five main objectives aimed at achieving livelihood restoration and improvement:

 Ensuring the successful rehabilitation and reinstatement of temporarily leased land to affected owners and users for re-cultivation.  Effective monitoring of PAPs impacted by permanent land-take and support for efforts to secure suitable replacement land and to re-establish livelihoods.  Targeted livelihood assistance to affected people, particularly to households and communities experiencing more significant land-acquisition related impacts.  Ensuring linkages of Project-affected people to the benefits and opportunities associated with the TAP Project, including construction-related employment and training opportunities, and community investment initiatives.  Provision of appropriate transitional support to PAPs considered ‘vulnerable’ and at an elevated risk of experiencing hardship as a result of land easement and acquisition

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292. The first objective around the successful rehabilitation and reinstatement of leased land will be achieved through the coordinated efforts of the LEA Team and TAP Environmental and Social Management (ESM) staff. The ESM Team is responsible for reviewing contractor environmental and social implementation plans (ESIPs) and monitoring Contractor compliance in their execution. This includes ensuring land entrance and exit protocols are adhered to. TAP/LEA will witness the effectiveness of this process and the success of Project-affected people to resume cultivation following completion of the exit protocol and hand over to ensure the following:

-That the original pre-Project productivity of the land can be restored in terms of crop yields -That no post-reinstatement issues have emerged that compromise the above in the long-term. This could include, but not be limited to, ponding or flooding of the land that did not occur pre-Project, or run-off or drainage from the reinstated land that negatively impacts neighbouring land -The proper functioning of restored irrigation/drainage systems and wells.

293. With respect to Project-affected people whose land is being permanently acquired, as part of LEA’s responsibility to monitor outcomes, LEA staff will implement a follow-up program that involves contacting PAPs in the months subsequent to compensation being paid, prioritizing contact with those categorized as ‘severely impacted’ (i.e. 50% or more of a PAP’s land parcel being acquired). PAP’s success in in acquiring replacement land and/or restoring their livelihood will be documented and an assessment made as to whether prioritized referral to specific livelihoods assistance or transitional support is required.

294. The Livelihoods Assistance and Transitional Support Program (LATS) outlined in the following sections will address the objectives of targeted livelihoods assistance, support for vulnerable groups and linkages to Project benefits and opportunities.

10.3 Livelihoods Assistance

10.3.1 Categorizing Eligibility

295. Land-related impacts are experienced at both an individual household level and collectively at a community level. It is important to understand how the Project is expected to impact both in order to best target livelihoods assistance measures to achieve Project goals and objectives.

296. It is common in Albania for households/families to have more than one landholding in an area. For example amongst PAPs impacted by the compressor station, more than 90% have 2 or more land parcels, with a sizable portion having more than 5 parcels. Ten percent of those affected by the compressor stations (31 PAPs) will have 25% or more of their total land holdings permanently acquired by TAP. Although in the case of access roads the portion of an affected land parcel is relatively small (in only 6% of cases will more than half of the land parcel be affected), 20% (68) of PAPs will have more than one parcel affected.

297. In examining the impact on communities, almost 60 hectares of land is being acquired for the two compressor stations, more than half of which will be purchased in Devoll Municipality, an area well known for its rich soils and high agricultural productivity.

298. In order to determine priority areas and households, and the levels and types of assistance that will be delivered as part of the Livelihoods Assistance program, two categories of displacement risk have been identified.

 Category I - Severe Risk Areas, where a significant number of Project-affected households will have more than 25% of their total land holdings affected, areas where there are five or more families experiencing permanent loss due to land acquisition and/or long-term Project easement restrictions (i.e. fruit tree growers)or areas (villages/administrative units) where more than 30% of the village land area will be affected. These are the areas where livelihoods assistance would be targeted at the

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 household level, with a high degree of inputs and PAPs more closely monitored to ensure livelihoods are restored and food security is not threatened.

 Category II – Moderate Risk Areas affected by the Project but to lesser degree than described in Category 1. Assistance in these areas would be communally based with lower inputs, and options for PAPs to participate. Monitoring would ensure PAPs are able to access these programs, should they choose to do so.

299. Based on these categories, the Project affected areas will be mapped and Category I areas clearly identified. This will assist in targeting LATS programming to severe risk areas.

300. Forms of assistance will be directed to both agricultural-based livelihoods and business based livelihoods to ensure the needs and capacities of youth and women from within the Project-affected households will be included for livelihood support.

301. In the event that cases emerge in the project land fall area related to TAP’s offshore construction activities, and residents can demonstrate that restricted access to their livelihood resources (i.e. fishing) has resulted in decreased income, appropriate livelihood assistance will be provided.

302. The following sections outline the types of assistance that will be provided through LATS.

10.3.2 Agricultural-based Livelihoods Assistance (Category I + II)

 Initiatives which support and strength agricultural productivity (Category I): improved agricultural practices, improved inputs, irrigation, terracing, nurseries, green/hothouses.  Initiatives which support the agricultural market chain (Category I): activities to open new markets or increase the value from existing markets: accreditation and certification of products, value-add processing.  Initiatives which support community livelihood infrastructure and services (Category I & II): cold/dry storage and transport infrastructure.

10.3.3 Business-based Livelihoods Assistance (Category I)

303. Skills and Vocational Training: activities to support skills upgrading, particularly for youth

304. Financial Management / Household Investment Training: activities to help households receiving significant amounts of compensation to better manage and invest their savings to improve livelihoods.

305. Support to Household Income Generation and Expansion of Micro and Small Business: activities to support restoration / expansion of existing micro and small businesses and/or household income generation activities.

10.3.4 Delivery Mechanism

306. Two different delivery mechanisms for livelihood assistance are currently under consideration. The first contemplates a grant program established by TAP and managed either internally through the LEA department with the involvement of stakeholder engagement and community investment staff, or contracted out to an external partner with TAP oversight.

307. The second option envisages a partnership approach where TAP would work with established organizations who are already delivering quality agricultural and business-based assistance programs in key Project areas, to expand their program and eligibility criteria to accommodate interested PAPs.

308. A key determinant that will be used to identify the most appropriate approach is the extent to which it incentivizes Project-affected people to leverage their compensation payments to restore and

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309. strengthen their livelihood. Other factors which will be considered include the time and resources required to operationalize the approach, and how this aligns with TAP’s social investment strategy in Albania.

10.4 Linkages Program

310. In keeping with EBRD PR 5 to provide opportunities for Project-affected people to derive development benefits from the Project, LEA staff will review Contractor Employment Plans and provide feedback to the ESMS team on options for facilitating access of Project-affected people to the procedures which Contractors are implementing to promote local procurement, employment and training. PAPs access to these opportunities will be monitored as indicated in Chapter 11.

311. Access and participation of PAPs in programs and activities resulting from TAP’s Social Investment Strategy will also be monitored.

10.5 Transitional Support

312. The EBRD defines vulnerable people as those who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status, may be more adversely affected by the land acquisition process than others and who may be limited in their ability to claim or take advantage of compensation.

10.5.1 Categorizing Eligibility

313. Vulnerable people generally include the following groups.

 Disabled persons, whether mentally or physically, chronically ill and/or elderly people particularly when they live alone, have limited income and/or networks of solidarity to support them;  Single-parent households, in particular female-led single parent households;  Households who have no or very limited resources or productive assets;  Large households with a high number of dependants;  Widows and orphans;  Unemployed youth  Ethnic minorities (i.e. Roma)  Households with limited access to basic services and infrastructure  Households who do not have registered/documented ownership or usufruct rights to land or land- related other real rights

314. In order to better understand issues of vulnerability and to finalize vulnerability criteria in the Project context, consultation will be undertaken with Project-affected people and key informants, particularly in Severe Risk Areas.

315. Information will also be gathered to better understand the forms of social support for vulnerable groups which currently exist within Albania through local and/or regional government and non-profit groups, and the criteria used for eligibility.

10.5.2 Identification + Screening

316. Screening people for vulnerability can be challenging for the following reasons:

 Vulnerable people do not necessarily attend meetings related to the Project, or visit Project offices because they are socially isolated and marginalized, and do not typically have access to information that would easily be available to other members of the community.

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 Some vulnerable people do not have the capacity to understand information related to land acquisition or compensation, or lack the confidence to ask questions.  Screening people for vulnerability is a sensitive process, there is the risk that a label of ‘vulnerability’ can further stigmatize or ostracize someone, and in other instances it can give rise to discontent amongst other members of the community who are not considered ‘eligible’

317. Pre-identification will be undertaken by the TAP LEA Team and through referrals from other TAP departments (i.e. Grievance Officer, Community Liaison Officer). A further screening process will be undertaken by the NGO partner contracted to implement the transitional support program.

318. The screening process will include confidential investigation of the following:

 Circumstances of the household and potentially vulnerable individuals therein, including details on the challenges they face, and potential impacts resulting from TAP’s land access and acquisition activities, particularly with respect to food security ;  Details on the implications of vulnerability, including:  Mobility issues  Comprehension capacity  Social support issues  Conclusion on categorisation as vulnerable and recommendations regarding proposed forms of support

10.5.3 Forms of Support

319. Working with relevant local authorities or other entities providing support services to vulnerable groups, TAP through the work of their implementing partner (see section 9.5.4.) will seek to ensure that no vulnerable people are disproportionately affected by the land acquisition process.

320. Individualized support plans will consider the following types of assistance.

 Specialized support in the SLA process (i.e. provision of transport to the bank effecting compensation, securing an appropriate power of attorney, or advocate for those unable to understand or sign their compensation agreements).  Monitoring access, involvement and prioritization in the land reinstatement process, livelihoods assistance program and linkages opportunities  Where specific benefits provided by Government or other institutions may exist that affected vulnerable people are unaware of or have been unable to secure, review with the relevant organisations eligibility for such social benefits and provide assistance in submitting applications and in advocating for their consideration.  Exceptional assistance for a defined transition period where there is a high risk to a household of experiencing hardship as a result of the TAP Project. The Household Food Insecurity Access Scale (HFIAS)11 will be used as a method of assessing the level of food insecurity within a vulnerable household.

10.5.4 Delivery Mechanism

321. An appropriate implementing partner, with experience working with vulnerable groups will be identified and contracted to deliver transitional support. TAP LEA Albania will undertake a preliminary assessment of organizations currently providing services/support to vulnerable people within Albania, paying particular attention to those operating in (or with the capacity to operate in) communities along the pipeline route.

11 http://www.fao.org/fileadmin/user_upload/eufao-fsi4dm/doc-training/hfias.pdf accessed 30/11/2015

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322. An initial watch list of PAPs who might be eligible for Transitional Support based on current ‘vulnerability’ criteria is being prepared by TAP LEA Albania. TAP stakeholder engagement and grievance staff in addition to other members of the LEA team as appropriate, will be oriented to the transitional support program and assisted in understanding the criteria for consideration so that they can make appropriate referrals.

10.6 Public Disclosure

323. LEA Albania will ensure Project-affected people are informed of the components and activities of LATS and how they can be accessed. Public disclosure, including the creation and distribution of a brochure, will be implemented in cooperation with TAP’s Stakeholder Engagement and Communication departments.

10.7 Monitoring and Evaluation

324. Monitoring and evaluation will occur at a two levels. The overall monitoring of the effectiveness of LRP implementation in restoring the livelihoods of all Project-affected people is detailed in Chapter 11. This will be linked to the monitoring of specific components of the LATS program to ensure all five objectives, and intended outcomes are being achieved.

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Grievance Management and Redress

11.1 Principles and Overview

325. In order to be aware of and respond in a timely manner to stakeholders’ grievances, concerns and complaints, including those associated with LEA, TAP is in the process of implementing a comprehensive Grievance Mechanism. The Grievance Mechanism complies with the following key principles:

• Address grievances, concerns and complaints promptly and effectively, in a transparent manner that is culturally appropriate and readily accessible to all segments of the affected communities, giving due consideration to confidentiality and legal requirements;

• Handle grievances, concerns and complaints being discreet, objective, sensitive and responsive to the stakeholders’ needs and concerns;

• Not prevent access to judicial or administrative remedies;

• Inform the affected communities about the Grievance Mechanism in the course of TAP community engagement activities and report regularly to the public on its implementation;

• Publish the Grievance Mechanism using appropriate and easily accessible ave-nues;

• Develop training and implement procedures which will ensure that all TAP em-ployees and its contractors comply with the Grievance Mechanism.

11.2 Anticipated Categories of Grievances

326. In practice, grievances and disputes that may be anticipated for the TAP land acquisition programme include the following:

 Misidentification of properties (allocation of a property to the wrong owner due to wrong cadastral information and/or deliberately misleading statements);  Disputes over plot limits, between affected persons and the Project or between two neighbours;  Dispute over the ownership of a given property (two or more individuals claim to be the owner of this property);  Disagreement over the valuation (either unit rate applied or count) of a plot, crop or structure;  Post cut-off establishment of a structure or other asset, whether deliberate (opportunistic occupation in anticipation of compensation) or not;  Absentee landowners;  Confusion between legal occupants and informal occupants;  Forged documents (identification, ownership or others);  Deceases and unresolved successions, divorces, and other family issues, resulting in disputes between heirs or shareholders in the disputed property, particularly when such occur after identification and before payment;  Damages occurring during construction;  Unsatisfactory land reinstatement.

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11.3 Grievance Support Structure

327. To support the implementation of grievance management the following structure is being established:

• A Grievance Management Team, which comprises the Grievance Coordinator Albania, the Community Liaison Coordinators, the relevant Work-Stream Manager, the ESMS and/or the Senior Social Specialists and the Grievance Advisor in Baar;

• A Grievance Working Group, an ad hoc team formed (if required) to review decisions and or remediation measures which have been rejected by stakeholders, which may include: the Project Manager (as required), the Country Manager (as required), the Grievance Advisor in Baar, the Grievance Coordinator Albania, the Community Liaison Coordinator, the ESMS Manager (as required), the Stakeholder Engagement Advisor (as required) and the Legal and Compliance Officer (in-country or Baar: as required); and

• A Grievance Task Force, an adhoc team established to manage the resolution process for high severity grievances or those in which the stakeholder wishes to engage a third party entity to be involved in the resolution process, which may include: the Project Manager, the Country Manager (as required); the relevant Construction Contractor representative, the Community Liaison Coordinator, the Grievance Co-ordinator; the Legal and Compliance Officer (in-country or Baar: as required) and the Grievance Advisor in Baar.

11.4 Administrative Steps and Timeframes

328. Stakeholders will be able to submit a grievance via one of TAP’s grievances lines (e.g. by speaking to a TAP or Contractor employee, by submitting a completed grievance form in one of the grievance boxes in TAP’s offices and/or the contractors construction camps and/or work areas, by calling TAP’s grievance hotline, by sending an e-mail, letter and/or fax to TAP.

329. The timeframes to resolve a grievance, as reported in the table below, are commensurate to the related severity, based on the consequence (potential or actual) of it. The severity rating (low, medium and high) will be assessed by the Grievance Coordinator.

Table 22 Grievance Severity Timetable

Grievance Severity Timeframe Responsible

Low 30 days Grievance Coordinator

Medium 30 days Grievance Working Group

High 60 days (depending on complexity) Grievance Task Force

330. The Grievance Management will typically include the following steps:

-Confirmation of receipt: For grievances received in the field, the TAP’s Community Liaison Coordinator or Social Field Monitor will verbally acknowledge the receipt of the grievance. For grievances received through email, post and fax, the Grievance Coordinator

will issue an acknowledgement receipt form within 7 days of receiving a grievance. When possible, the Grievance Coordinator will make a follow up call to the stakeholder to understand the grievance process to be followed.

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-Register grievances in Grievance database: The Grievance Coordinator will register all grievances. Each case will receive a unique registration number in the grievance database to enable tracking.

-Verification: The Grievance Coordinator will verify if the grievance is related to the Project. If the grievance is not related to the Project or the construction activities, the Grievance Coordinator will send a rejection letter to the stakeholder indicating this point. The Grievance Coordinator Albania will also verify the severity of the grievance or complaint and register the grievance or complaint appropriately.

-Categorizing: The Grievance Coordinator will categorize each grievance according to:

o the Work-Stream responsible for resolving the grievance; o the type of aggrieved party (individual, group, Non-Governmental Organization); o the type of grievance and indicate frequency of the grievance; o the severity and consequence.

-Assigning cases to the appropriate Work-Streams: The Grievance Coordinator will send the grievance to the relevant Work-Stream Managers (or contractor) for investigation and resolution. The Work-Stream Managers will be informed of the applicable timeframes for resolving the type of grievance and the format of the official response required.

-Resolution or Remediation measure: When a resolution or remediation measure to a grievance has been reached by the relevant Work-Stream, the Work-stream Manager will send the detail of remediation measure to the Grievance Coordinator Albania to be recorded in the database. The Grievance Coordinator will alternatively (i) immediately discuss the proposed resolution/remediation with the stakeholder and agree the timing of the remediation process; (ii) send a rejection letter in case a grievance has been assessed as unjustified, not related to TAP or its contractors or has been rejected for any other sound reason, explaining the grounds for rejection; (iii) if the case is complex and the resolution will take longer than anticipated, inform the stakeholder of the reasons for the delay and indicate when the resolution is expected.

-Implementing Remediation Measures: The implementation of remediation measures will start immediately after the stakeholder has been consulted about the proposed remediation measure and agreed that they are appropriate.

-Closing Grievance Resolution Process: When the stakeholder has accepted the proposed resolution and is satisfied with the remediation measure implemented, the Grievance Coordinator will have the stakeholder sign a grievance close out form. The Grievance Coordinator will upload the signed agreement as an attachment into the grievance system and the case will be marked as resolved/closed.

331. The timeframes in Table 23 will be followed in the grievance administrative process.

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Table 23 Resolution Timeframe

Action Timeframe Responsible Acknowledge Grievance Within 7 days Grievance Coordinator Register grievance in database & 7 days Grievance Coordinator

AcknowledgeIssue grievance Grievance rejection letter 10 days Grievance Coordinator Issue grievance resolution letter On agreement of grievance Grievance Coordinator remediation action Issue grievance Closure letter On completion grievance remediation Grievance Coordinator implementation Issue compensation payments 30 days from approval Project Manager

Accounting Department

332. The Figures 18 and 19 provide a visual overview of TAP’s grievance process and the administrative steps involved.

Figure 18 Overview of Grievance Mechanism

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Figure 19: Grievance Mechanism Administrative Steps

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Monitoring and Evaluation

12.1 Overview

333. Monitoring and evaluation are key components of the land acquisition process. The Monitoring and Evaluation process examines what worked with the process and why, what did not and why it did not, and what adjustments or changes need to be made.

334. Monitoring12 is the measurement through time that indicates the movement toward the objective or away from it. Monitoring provides the raw data to answer questions. Evaluation is putting those data to use, thus giving them value. Evaluation is where the learning occurs, questions are answered, recommendations are made, and improvements are suggested. Yet without monitoring, evaluation would have no raw material to work with.

335. Monitoring and Evaluation are typically divided into three components, defined below:

 Input monitoring,  Output monitoring,  Outcome evaluation.

336. Input (progress) monitoring: Measures whether inputs are delivered on schedule and as defined in the GLAC and/or Livelihood Restoration Plan. Inputs are the services, resources or goods that contribute to achieving outputs and, ultimately, desired outcomes. Input monitoring is done internally on an on- going basis, often as part of the project general management system or quality assurance system.

337. Output (performance) Monitoring: Measures the direct measurable results of the inputs, for example the number of people receiving compensation or completing financial management planning course Input and output monitoring together keep track of project implementation efficiency, and indicate whether changes need to be made to make the program operate more efficiently. Output monitoring is done internally.

338. Outcome ( impact) Evaluation: Defines the extent to which the project inputs and outputs are achieving or are likely to achieve the objectives of a program. Examples of outcomes include the effectiveness of livelihood restoration or reinstatement. Outcome evaluation, coupled with output monitoring results, indicate whether the program is genuinely working and should continue to be implemented as is, or whether fundamental changes have to be made. Outcome evaluation is usually carried out by an external, independent group.

339. Outcome evaluation often uses proxy (or indirect) indicators. Many people, for example, are reluctant to divulge their actual income. Proxy indicators can be used to help determine whether affected people are re-establishing (or improving) their livelihoods and standard of living. These kinds of indirect indicators may include inventory of household assets (including agricultural equipment) or improvements to housing, changes in the percentage of PAPs reporting being able to take a vacation, or increases in the percentage of PAPs reporting waged-based employment.

12.2 Input and Output Monitoring

340. TAP has identified the following indicators shown in Table 24 to carry out input and output monitoring of its land acquisition and compensation activities. Both these and the outcome indicators will be reviewed and finalized by the LEA team.

12 These definitions are those used by the US Environmental Protection Agency (US EPA): www.epa.gov

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Table 24: Input and Output Key Indicators

Indicator Source of Frequency Information Input Overall spending Financial records Quarterly Distribution of spending by: Cash compensation Livelihoods assistance Financial records Quarterly Consultation and engagement Transitional (Vulnerable) support General implementation services & overhead Number of full time staff dedicated to land acquisition & compensation, with distribution in-house / outsourced if HR Department Quarterly applicable, and distribution by skill type Number of vehicles, computers, GPSs, and other equipment as Count Quarterly applicable available to the LEA programme Number of PAPs by categories (consistent with categories in Census and the entitlement matrix) grievance Quarterly management Output Number of signed Letters of Intent Data management Monthly system Number of signed Minutes of Disagreement Data management Monthly system Number of signed contracts Data management Monthly system Number of people having received cash compensation in the Data management period with distribution by compensation type and by classes of Monthly system amounts Number of PAPs affected by permanent land acquisition Data management Monthly successfully contacted for follow-up system Number of leased land parcels reinstated and handed back Data management Monthly system Number of Livelihoods Assistance projects/initiatives supported Data management Monthly by TAP system Number of PAPs participating in Livelihoods Assistance Data management Monthly programs system Number of vulnerable Project-affected people/households Data management Monthly identified and screened for transitional support system ESM data Number of PAPs accessing Project-related employment, management Monthly training or procurement-related opportunities system Number of PAPs participating in Community Investment SEI data system Monthly projects

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12.3 Outcome Monitoring & Evaluation

341. TAP will use indicators shown in Table 25 to carry out outcome monitoring of its land acquisition and compensation activities.

Table 25: Outcome Key Indicators

Indicator / Issue Measured how Frequency Grievances Measure time interval between grievance Average time for LEA-related registration and closure and time between Quarterly grievance processing grievance registration and first acknowledgement of receipt Number of open LEA grievances Grievance Mechanism Data Management System Quarterly Number of LEA grievances Using records from the GM Data Management Quarterly opened in the period System

Number of LEA grievances closed Using records from the GM Data Management Quarterly in the period System

% of closed grievances where PAPs indicate satisfaction Survey of PAPs Quarterly with solution % of closed grievances where PAPs indicate satisfaction Survey of PAPs Quarterly with grievance process Compensation % of PAPs investing compensation in Survey of compensated households to understand Yearly sustainable livelihoods how compensation is being used activities % of PAPs reporting satisfaction Survey of compensated households to assess level Post SLA with the SLA process of satisfaction with the LEA process Livelihood Restoration % of PAPs affected by permanent land take reporting they have secured replacement Data from permanent land take follow-up survey Quarterly land/restored their livelihood % of PAPs participating in livelihoods assistance Reports received by Granting & Project Monitoring Quarterly programs supported thru Committees LATS Number of PAPs identified Transitional support program data which tracks vulnerable provided with Yearly vulnerable PAPs transitional support % of identified vulnerable PAPs Transitional support program data which tracks graduating from the progress of vulnerable PAPs deemed ‘self- Yearly program sufficient’

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% of leased land parcels Link to the Project Contractor compliance monitoring data, entrance effectively reinstated to the construction and exit protocol data satisfaction of PAPs schedule Post-hand back sample survey of level of cultivation Link to the Project % of reinstated land parcels and yields, compared to baseline asset construction successfully re-cultivated inventory data schedule Survey of occupations, household assets and % of PAPs reporting a similar or Yearly and at income compared with expenditures over a improved household completion stratified sample of PAPs compared with economic situation audit baseline data Number of residents in the land fall area reporting Reports received from Stakeholder Engagement Quarterly livelihood impacts & staff referred to LATS

12.4 Compliance Monitoring and Completion Audit

12.4.1 Compliance Monitoring

342. TAP will procure the services of an external compliance auditor to check whether this LRP has been fully implemented and in keeping with EBRD Performance Requirements (PR 5). The scope of work of the compliance auditor will include the following tasks:

 General: -Assess overall compliance with LRPLRP commitments and PS5; -Interview a representative cross-section of affected households and enterprises: to measure the extent to which Project affected people's standards of living and livelihood are being restored or enhanced, to gather their opinions on compensation delivery, resettlement housing and grievance management;  Compensation process: -Review if entitlements are delivered in time (as set out in the LRP) and, if not, whether delays are justifiable; -Assess whether compensation is at replacement value;  Livelihood restoration: -Assess the extent to which the livelihoods of affected households are restored, verify that measures to restore or enhance Project affected peoples’ quality of life and livelihoods are being implemented and assess their effectiveness;  Monitoring & Evaluation: -Review internal monitoring and reporting procedures to ascertain whether these are being undertaken in conformance with the LRP; -Review internal monitoring records as a basis for identifying any potential areas of non-compliance, any recurrent problems, or potentially disadvantaged groups or households;  Grievances: -Review grievance records for evidence of significant non-compliance or recurrent poor performance in compensation and land reinstatement process or grievance management;  Vulnerable people: -Assess the vulnerable people screening, tracking and assistance systems, related records, and performance to determine compliance with this plan;  Implementation: -Assess whether resources are adequate for implementing commitments in this framework and any training or capacity building requirements; -Assess the data management system and its outcomes; -Compare actual progress with initial schedule; -Review any situations of fraud, corruption or extortion and the way they have been managed.

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343. Compliance monitoring will take place twice a year during the active phase of land acquisition and compensation. The external auditor will dedicate approximately 10 days to each of these missions, with most of this time dedicated to field visits, including interviews with key informants and affected people. Each of the auditor’s missions will be sanctioned by a report prepared independently for TAP AG. The auditor will be selected amongst reputable individuals with significant international experience in land access and acquisition.

12.4.2 Completion Audit

344. TAP will organise that a completion audit be carried out by an external auditor (potentially the same as that involved in the compliance monitoring). The overall goal of the completion audit is to verify that this Livelihood Restoration Plan as implemented has been effective in restoring Project affected peoples’ standards of living and livelihoods. Accordingly, the completion audit has the following objectives:

 Assess the effectiveness of measures to avoid and minimize displacement impacts by comparing Project actual impacts on land and people versus those documented in the LRP;  Verify that all entitlements and commitments described in the LRP have been delivered;  Determine whether LRP measures have been effective in restoring or enhancing affected peoples’ living standards and livelihood;  Check on any systemic grievances that may have been left outstanding;  Identify any corrective actions necessary to achieve completion of LRP commitments.

345. The Completion Audit will focus on livelihood restoration. Methods to assess whether livelihoods are restored will be carefully devised. They will mainly include quantitative surveys, resulting in a comparison with the baseline data. This will be done over a sample of affected households chosen from all interested components of the Project. Macro-economic factors will be taken into consideration when interpreting the results of the comparison (for example inflation, real estate cost, general growth of the economy or recession).

346. In addition, the Completion Audit will employ qualitative approaches to gather data and assess household standards of living. Particular attention will be paid to assessing the impact of land acquisition on the circumstances of vulnerable households.

347. The Completion Audit report will present conclusions on the effectiveness of livelihood restoration and identify any corrective measures that would be necessary to complete rehabilitation of PAPs.

348. The Completion Audit will be carried out two years after the active phase of land acquisition and compensation is complete (including reinstatement and hand back), or when the Compliance Auditor deems appropriate.

12.5 Detailed M&E Plan

349. A monitoring and evaluation operational plan will be developed with the TAP LEA team, including a review of indicators previously identified, to ensure the necessary monitoring system is established, and the skills and resources exist to operationalize it. It will explore options for involving Project stakeholders in Project monitoring and evaluation, and make recommendations on how this can best be accomplished.

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Implementation Arrangements

13.1 Overall Organisation

350. TAP has a corporate structure which includes a leadership team at their headquarters in Baar, Switzerland, and Project offices in each of the three host countries. Dedicated LEA Managers are based in each country office. They are responsible for the establishment and supervision of the LEA teams, the day-to-day management of LEA activities and associated contractors, quality assurance and control and HSSE.

351. Oversight for LEA activities in the three countries is provided by the LEA + Permitting Support Manager who is based in Switzerland. In addition, rePlan Inc. provides implementation support and strategic advice to the LEA teams in all three countries.

352. The LEA process in Albania is structured into four main components, each headed by task managers to guarantee their consistent and successful implementation.

 Social (LRF and LRP)  GIS and data management (LEAMS)  Legal (HGA, negotiation, contracts)  Technical (cadastral data collection and mapping).

353. Other TAP staff providing support services to LEA includes the Grievance Officer (GO) and field-based Community Liaison Officers (CLOs).

354. In addition to the in country LEA Team members, their main local contractor Abkons has operationalized an extensive local workforce to undertake field survey work (CAI + socio-economic survey), data management, and coordinate the SLA process. Figure 19 illustrates the structure of the LEA team and the consulting and contractor support necessary for LRP implementation.

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LEA + Permitting Support Manager Greece/Italy/Albania

rePlan Abkons Implementation LEA Manager CAI + SLA Advisors Albania contractor

LEA Legal QC LEA Technical LEA Cadastre LEA SLA LEA SLA Social LEA LEA Assistant GIS Advisor Expert QC Consultant Coordinator Advisor Advisor Advisor

LEA Legal QC Expert

Figure 20: LEA Albania Organizational Chart

13.2 Implementation Schedule

355. Table 26 presents the LEA implementation schedule.

Table 26: LEA Implementation Schedule

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13.3 Budget

356. The total amount budgeted by TAP to implement the Livelihood Restoration Plan is € 75,973,984. This includes compensation for all Project affected assets (crops and structures), land lease and easement compensation, any transaction related costs, livelihood restoration support (i.e. LATS), and management costs (see Annex 7 for a budget breakdown).

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Appendices

Appendix 1: Key Albanian Legislation

Albanian English name Number and Subordinate acts if Key issues addressed name reference of applicable approval Kushtetuta e Constitution of the Law no. 8417, Main constitutional Republikes se Republic of Albania dated 21.10.1998, principles, essential rights Shqiperise amended with the and freedoms, law no. 9675, organization of the state dated 13.01.2007 and independence of the and law no.9904, state bodies, elections, dated 21.04.2008. hierarchy of the laws etc. Kodi Civil i Civil Code of the Law no. 7850, N/A Legal rights related to Republikes se Republic of Albania dated 29.07.1994, immovable properties Shqiperise amended with law (such as ownership, no. 8536, dated easement-servitudes and 18.10.1999, law usufruct rights, lease, etc.) no. 03.05.2001 Interacting and beneficiary and law no. parties, their contractual 17/2012, dated rights, modalities of 16.02.2012. acquisition of rights referred above, and the obligation to register them. Për Law “On Registration Number 33/2012 Yet to be enacted by Organization and regjistrimin e of Immovable approved by the Cabinet of Ministers operation of the pasurive të Properties” Parliament on (COM) Immovable Property paluajtshme 21.03.2012. Registration Office (IPRO), Published in the terms and procedures for Official Journal the registration of issue number immovable properties and 34/2012 of administration of 13.04.2012 immovable properties public registry.

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Albanian English name Number and Subordinate acts if Key issues addressed name reference of applicable approval Për Law "On expropriation Law no 8561, dated COM Decision no. 127, Regulates the right of the shpronësimet and temporary use of 22.12.1999. dated 23.03.2000 “On state to expropriate or take dhe marrjen në private property for Published in Official content and procedures in temporary use, for public përdorim të public interest" Journal issue for request of interest the properties of përkohshëm të number 37, of expropriation and legal entities or individuals pasurisë pronë 25.02.2000. temporary use of and the protection of the private për properties for public rights and interests of the interes publik. interest”. expropriated owners. COM Decision no. 138 dated 23.03.2000 “On technical criteria of evaluation and calculation of the compensation for the expropriated and devaluated properties and the rights of third parties” amended with the decisions no. 662, dated 18.12.2002, decision no. 872, dated 12.12.2007, decision no. 136, dated 23.02.2011, decision no.563, dated 03.08.2011 Për Law "On expropriation Law no 8561, dated COM Decision no. 127, Regulates the right of the shpronësimet and temporary use of 22.12.1999. dated 23.03.2000 “On state to expropriate or take dhe marrjen në private property for Published in Official content and procedures in temporary use, for public përdorim të public interest" Journal issue for request of interest the properties of përkohshëm të number 37, of expropriation and legal entities or individuals pasurisë pronë 25.02.2000. temporary use of and the protection of the private për properties for public rights and interests of the interes publik. interest”. expropriated owners. COM Decision no. 138 dated 23.03.2000 “On technical criteria of evaluation and calculation of the compensation for the expropriated and devaluated properties and the rights of third parties” amended with the decisions no. 662, dated 18.12.2002, decision no. 872, dated 12.12.2007, decision no. 136, dated 23.02.2011, decision no.563, dated 03.08.2011

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Albanian English name Number and Subordinate acts if Key issues addressed name reference of applicable approval Për legalizimin, On the legalisation, Law no. 9482, COM Decision no. 438, Legalisation of informal urbanizimin urbanization and dated 03.04.2006 dated 28.6.2006 “On the constructions. Transfer of dhe integrimin integration of the amended by law definition of the criteria, the ownership rights over e ndërtimeve informal no .9786, dated procedure and applicable the land plot where is pa leje zones/constructions 19.07.2007, law documentation to qualify constructed the object that no.9895, dated the constructed objects to will be legalized. 09.06.2008, law be legalized or not” Urbanization of zones, no.10 099, dated amended with COM blocks of informal 19.03.2009, law no. Decision no.994, dated constructions and their 10 169, dated 6.10.2010. integration into the urban 22.10.2009 , COM Decision no.258, development of the country. decision no.3, dated dated 04.05.2007 “On the Procedures for the 02.02.2009, of the registration of the completion of the Constitutional Court legalized immovable legalisation of the informal and law no.10 219, properties”. constructions and the dated 04.02.2010. COM Decision no.259, establishment of the dated 04.05.2007 “On the relevant structures for the approval of the regulation legalisation. and the minimal urban standards for the urbanization of the informal zones”. COM Decision no.411, dated 19.5.2010 “On the criteria, procedures and type of the legalisation permit form”. COM Decision no.289, dated 17.05.2006 “On the organization and operation of ALUIZNI”, amended with COM Decision no. 678, dated 04.10.2006 and no. 1147, dated 05.08.2008 COM Decision no. 397, dated 21.06.2006 “On the approval of the action plan for the legalisation, urbanization and integration of informal constructions”. COM Decision no. 437, dated 28.06.2006 “On the definition of the procedures for the collection elaboration and management of the data on informal construction, for completing the data base”.

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Albanian name English name Number and Subordinate acts if Key issues addressed reference of applicable approval Për legalizimin, On the legalisation, Law no. 9482, COM Decision no.870, Legalisation of informal urbanizimin urbanization and dated 03.04.2006 dated 27.12.2006 “On the constructions. Transfer of dhe integrimin integration of the amended by law coefficient of exploitation the ownership rights over e ndërtimeve informal no .9786, dated of the construction under the land plot where is pa leje zones/constructions 19.07.2007, law legalisation having a constructed the object that no.9895, dated social economic purpose”. will be legalized. 09.06.2008, law COM Decision no. 1180, Urbanization of zones, no.10 099, dated dated 05.08.2008 “On the blocks of informal 19.03.2009, law no. definition of the tariff constructions and their 10 169, dated value for the legalisation integration into the urban 22.10.2009 , service and collection of development of the country. decision no.3, dated the income in the process Procedures for the 02.02.2009, of the of legalisation, amended completion of the Constitutional Court with decision no.1587, legalisation of the informal and law no.10 219, dated 03.12.2008, constructions and the dated 04.02.2010. no .246, dated 13.04.2010 establishment of the and no. 368, dated relevant structures for the 30.05.2012. legalisation. COM Decision no 1655, dated 24.12.2008 “On the compensation of the owners of immovable properties, that are occupied by informal constructions”.

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Albanian English name Number and Subordinate acts if Key issues addressed name reference of applicable approval On Law no. 9948, Decision CM, No. Review agricultural land Për verifikimin consideration/revision dated 222, dated allocations with the power e titujve të of legal validity for 07.07.2008, 06/03/2013 “On the to overturn land commission pronësisë mbi creation of ownership amended by law procedures for decisions that, in many tokën titles on arable land no. 172, dated determining the cases, are already legally bujqësore, i 18.12.2014 performance of the registered in the ndryshuar. process of IPRO. transferring Dealing with the already- agricultural land to started land distribution former agricultural procedures regulated by enterprises owned by previous Laws No. 7501 of beneficiaries” 1991 and No. 8312 of 1998 and provides local Decision of CM, No. government structures with 253, dated more time to finalize the 06/03/2013, “On the documentation. procedures for determining the fulfillment of acts of taking agricultural land owned by families of former agricultural villages - agricultural cooperatives”

DCM No. 338, dated 22.04.2015 On amendments and additions in the Decision of CM. 253, dated 06.03.2013, "On establishing the procedures of fulfilling the acts of obtaining the owned farmland by farming families in the villages of former agricultural cooperatives”

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Albanian English name Number and Subordinate acts if Key issues addressed name reference of applicable approval Për On legal proceedings Law No.171, Decision of the Finalization of documents përfundimin e required for granting dated Council of Ministers, for already-started land procedurave ownership of 18.12.2014 no. 337, dated distribution procedures ligjore të agricultural land of 22/04/2015. “On the regulated by Law 8053 of kalimit të tokës former agricultural procedures for 1995. bujqësore të enterprises to determining the ish- beneficiaries specified in performance of the ndërrmarrjeve Law 8053 of 1995 process of bujqësore në transferring pronësi të agricultural land to përfituesve. former agricultural pronësisë enterprises owned by beneficiaries”

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Appendix 2: Details on the Expropriation Process

Private property can be expropriated when required for a public purpose (interest) defined by law and against a fair compensation. Expropriation or taking under temporary use of the private property is made only for a “public interest” which may not be achieved or protected in another manner, and always the State must compensate any prejudice caused to adjacent property. Private property could be expropriated for the following purposes:

 Fulfilment of obligations of the State arising from treaties and international multilateral conventions;  Performance of programs, projects and investments in Albanian territories and abroad, foreseen in international agreements executed by Albania;  Developing of transport, energy, telecommunications, and waterworks and sewage infrastructure projects;  Execution of projects and investments aimed at protecting the environment, health, culture and public education;  Carrying out programs and investments focused on national defense;  Protection of cultural heritage assets, including buildings and historic places, monuments, artifacts, etc., that are considered worthy of preservation for the future. These include objects significant to the archaeology, architecture, science or technology of a specific culture.

Expropriation for public interest in favour of a private entity is performed in case of realization of investments that present interest or have territorial extension either in national or local level, in the sector of energy, telecommunications, etc., in the service and interest of the public.

The request for expropriation is submitted by the interested investor to the ministry that covers the activity for which the expropriation is needed, which in TAP case is MEI.

MEI shall establish a special committee to follow up and implement the expropriation process. The application filed shall be supported by the following documents:

 Documents attesting registration of the applicant as a juridical person  The necessary and approved projects and the argument related to the public interests, in connection to the realization of the project  Documentation related to the source and guarantee of the financial funds necessary for the conclusion of the project, including the costs of expropriation and devaluation  A preliminary valuation of assets subject to expropriation and the amount of compensation that is contemplated for each private owner  Relevant license(s) and approval(s) issued from the competent authority(ies) in relation to the specific project  Documents showing the way of project implementation  A list of owner(s) of private-owned properties, for which expropriation is sought; a list of owners of private-owned properties that are devalued due to expropriation process and a list of third parties whose properties will be subject to expropriation supported by explanations and data necessary for each of them, with the respective estimates of the value of these properties and rights, as well as the addresses and last known residences of the respective owners and third persons  Documents attesting the cause of expropriation (i.e. realization of investments that present interest or have territorial extension either in national or local level, in the sector of energy, telecommunications, etc., in the service and interest of the public).

The committee examines and verifies the information indicated in the application and relevant documents attached therein. If the application meets the required criteria the committee accepts the application for expropriation by notifying the investor.

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Within ten (10) days after the acceptance notice is delivered to the applicant (i.e. TAP), MEI and TAP will enter into an agreement providing for the process and conditions of expropriation and payment of the compensation for the expropriated land right holders, in the form of the notary deed, having attached all documents accompanying the application for expropriation.

Within ten (10) days after execution of the said agreement, MEI will notify directly (either by registered mail or other means of notification having confirmation that notice is received by the addressee; in case the addressee resides abroad, the notification will be made through publication in the commune/municipality where the land subject to expropriation is located) the persons affected by the expropriation and will publish during an entire week the application for expropriation in the Official Gazette as well as in a national and a local newspaper. Third parties should present their claims and supporting documents with MEI within fifteen (15) days from the expiration of the last publication term.

The committee will calculate (by considering their initial value of the property proposed to be expropriated, depreciation, destination, location, indexes of the market price changes and of the currency) the value of compensation to be paid to the persons affected by the expropriation. MEI will propose to COM to approve the expropriation not earlier than one month from the day of termination of the procedures described in herein above. The Council of Ministers may approve or reject the application.

The COM Decision approving the expropriation shall include:

 The purpose and legal reasons for expropriation;  The private properties that are expropriated and their respective owners;  The amount of compensation for the owners who are expropriated, for the owners of the properties that are devalued or for those whatsoever prejudiced; as well as the time period and manner of payment;  The term of the expropriation and the beneficiary;  The term for the development of the project and the investment, as the case may be;  The amount of the expenses incurred in the expropriation proceeding, assumed by the applicant. 

Within thirty days after the approval of the expropriation by COM Decision, MEI will transfer and register with the competent IPRO the ownership title on the expropriated land under the name and property of the State in case of the expropriation of the title, or register under the State name.

Transfer to the investor the ownership title on the expropriated property is registered in the name of the investor (if it requests so), provided that and when the investor has completed the construction of the project.

The expropriation shall be deemed invalid if (i) the beneficiary does not begin or conclude successfully the works for the project and investments that caused the expropriation; within three months following the end of the term stated in the COM Decision; or (ii) the compensation is not paid within three months following the end of the term stated in the COM Decision.

Upon the occurrence of any of these events, the former owners of the expropriated properties: (i) recover full title on the confiscated properties, at their request; (ii) shall return any compensation received; and (iii) are entitled to claim further compensation from the beneficiaries.

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Appendix 3: Review of Specific Legal Cases

14.1.1 Discrepancies between Registry and Reality The Immovable Properties Registration Law regulates cases where there are discrepancies between the data registered in the cadastral registry and the reality in the field. This law provides for two scenarios to resolve these situations. In the first scenario, the owner of the immovable property may initiate the process by requesting IPRO to make the necessary corrections in the property records and ownership certificate of the immovable properties. This is particularly applicable in case of mistakes or omissions that do not affect the rights of another owner. In the second scenario, the process of correction is initiated by IPRO to update the property records and cadastral maps. This is particularly applicable when (i) the record does not match the documents used for the registration, or (ii) the relation between the property records and the cadastral map is missing, or (iii) the geographical position of the property in the cadastral map does not comply with the real position. The updating process is initiated by the relevant registrar and is subject to the approval of the Chief Registrar. The order of the Chief Registrar for the update of property records and cadastral maps is published. The data obtained after the updating process should be announced for a forty-five days period in the premises of the local IPRO and in the offices of the local government (i.e. commune, municipality). The concerned parties should file their claims with the competent IPRO within the announcement period (i.e. forty-five days). The terms and conditions for the update of the cadastral data should be approved upon COM Decision. In cases where documents filed by a party for registration of ownership overlap with a prior registration (i.e. another owner of the property is already registered), the registrar normally would refuse the new request for registration and address the interested party to claim judicial or administrative resolution for the matter. Upon receipt of a final decision of the court the registrar proceeds with the registration. In case where the actual surface and boundaries of the immovable property is different from that registered with IPRO, a plan of the land should be prepared to evidence the discrepancies. If correction of the IPRO data would affect the neighbouring property, negotiations with neighbouring owners is required. The agreement and new plan of properties prepared by a licensed expert are then filed with IPRO for registration of the corrected data. In the absence of an amicable agreement between with the owners affected by the corrections or their property data, the court offers a last resort to the parties.

14.1.2 Unregistered Properties Unregistered/informal constructions are subject to Law no. 9482/2006 “On the legalisation, urbanization and integration of the informal zones/constructions”, which deals with procedures for legalisation of informal constructions, transfer of ownership rights over the land plot where the informal object is constructed, and integration if informal clusters into urban development. The informal owner of the structure should file for legalisation with ALUIZNI which issues a legalisation permit if the law permits. Upon receipt of the legalisation permit, the informal owner can apply for registration of the structure/building with IPRO. If the owner of the structure is not the same as the owner of the land, ALUIZNI will also transfer the land plot from the current owner to the newly legalized owner of the structure and compensate the old owner. If the structure does not meet the criteria provided in the law for legalisation, the owner of the land is entitled to request the demolition of the structure. Unregistered agriculture parcels are subject to Law No. 9948/2008 “On the examination of the legal validity of ownership titles relating to agricultural lands” and Law No. 171/2014” On legal proceedings required for granting ownership of agricultural land of former agricultural enterprises to beneficiaries specified in Law 8053 of 1995”. These relatively new laws (2008 and 2013 respectively) review agricultural land allocations with the power to overturn/confirm land commission decisions that, in many cases, are already legally registered in the IPRO. These laws deal with the already-started land distribution procedures regulated by previous Laws No. 7501 of 1991 and No. 8312 of 1998 and provide local government structures with more time to finalize the documentation. Finalization of documents for already-started land distribution procedures is regulated by Law 8053 of 1995.

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14.1.3 Claims Related to Pre-Communist Ownership This is relevant to situations where there is a claim on land in relation to old ownership rights (pre- existing rights before communist nationalizations). Such situations are regulated by the Civil Code, the Law “On restitution and compensation of property”, the Expropriation and Registration Laws. In line with the Constitution, the Restitution and Compensation Law aims to provide a fair compensation to former owners or their successors whom immovable properties have been expropriated, nationalized and/or seized during the communist regime. The compensation foreseen by this law is the restitution of all or a part of the immovable property where possible, or different plots of land, or cash compensation. The law defines the procedures for the restitution and compensation of the properties. The Agency for the Restitution and Compensation of Properties (ARCP) is the authority in charge for the process of restitution and compensation of properties to former owners. The deadline for the former owners to file requests for the restitution and compensation of properties was December 2008. The requests are examined by ARCP that following the verification of the presented documents resolves on the acceptance of the request and as the case may be restitution or compensation of the property or refusal of the request. The decision of ARCP may be contested by the interested party in front of the court.

14.1.4 Successions and Properties without Owners The Civil Code, Expropriation Law and Registration Law apply to such situations. The Civil Code provides that, when the deceased owner has not disposed of his property by a will, or the will includes only a part of the property, or results to be null and void, the legal inheritance process is to be opened through a Court process. Potential legal inheritors are the children, nephews, consorts, parents, children of brothers and sisters that have died earlier, grandparents, persons with inabilities to work that were under the care of the deceased, other relatives until the sixth rank, and ultimately the State. The above are summoned as inheritors pursuant to the ranking defined by the Civil Code and in case no inheritors are found the property is transferred to the State. The court issues the inheritance deed upon examining the relevant documentation proving the relation to the deceased owner. The persons listed in the decision of the court as inheritors of the deceased should then file the Court decision with the IPRO where the properties of the deceased are registered. within 30 days from the day it has become final and enforceable. IPRO reflects the changes in the property records, registering the inheritors as owners of the property, pursuant to the proportions defined in the decision of the court. Article 172 of the Civil Code provide that properties without owners (i.e. owners are unidentified or have resigned from their ownership rights) belong to the State. The transfer of the ownership title to the state is made upon decision of the competent court. In case of expropriation, the competent ministry is entitled to file with the court the request for opening the legal inheritance process. When upon completion of the expropriation process the expropriated owner is not located, the ministry continues with the expropriation request and the amount of the compensation corresponding to the expropriated owner is deposited in a bank on his behalf.

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Appendix 4: Study of Compensation Values – Final Report

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Appendix 5: MO-OO68 Orphan Land

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Area Comp. System Disc. Doc.- Ser. Code Code Code Code Type No. Company: Trans Adriatic Pipeline AG AAL00-ABK-700-MO-0068 Owner: ABKONS Project Title: Trans Adriatic Pipeline Rev.: 0A

Document Title:

Memo on Orphan Land

Rev. Purpose of Issue Remark/Description Date 0A Issued for Review 2015-11-04

CONTRACTOR COMPANY Originator Checked Approved

Name/Signature Sulejman Arta, Besnik, Sulce Gurabardhi Leskaj

Date 04.11.2015 04.11.2015 04.11.2015

Accepted* Accepted* Document Status Preliminary Checked Approved (Commercial) (Technical)

*Delete as Required

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The purpose of this memo is to highlight to TAP the issue of orphan land and to set out the criteria necessary to determine the orphan land. The guiding principles in classifying a parcel as orphan land are those described in LRF : - Size, dimensions and shape of the orphaned part of the plot; - Access restrictions and whether these will only last for the duration of the construction period or may be permanent (which is not anticipated to occur except in very exceptional cases); - Size and nature of mechanical equipment typically used for cultivation on this plot and whether such equipment reasonably can be used given the size, shape and dimensions of the orphaned part of the plot; - Potential restrictions to irrigation or drainage during the construction period.

1. Orphan Land for Permanent Acquisition

Parts of plots of agricultural land remaining from the temporary or permanent utilization of the land by TAP project will be considered as orphan, always while these plots are not operational in the agronomical framework or cannot be used for agricultural activity because the cost of utilization is higher than the revenue. Thus, orphan land will include but not limited to, the following cases :  when the width of the plot/remaining parcel is less than 5 m, since it cannot be mechanized.  when the area of the remaining square-shaped plot is less than 500 m2;  when the area of the remaining rectangle-shaped plot is less than 600 m2;  when the area of the remaining triangle-shaped plot is less than 800 m2;  when the area of the remaining irregular shaped plot is less than 1000 m2  when the area of the remaining plot is less than 1000-1500 m2 but intercepted by drainage or irrigation canals, or access roads heading the plot are left off.  in all cases when access roads, drainage and irrigation canals are operational but left off.

Orphan land areas may differ depending on terrain, the values mentioned above are indicative for plain terrain, whereas in hilly terrain, values can reach up to 10-20% higher. The above mentioned areas determined as orphan land will be purchased if they remain such in the borders/close to the land surfaces that can be purchased: compressor stations, blocking valves, access roads or any other land that will be purchased for the needs of TAP.

2. Orphan Land for Temporary Use (unusable land with fruit trees and vineyards)

For parcels planted with orchards and vineyards (perennial plants) permeating/intermitted during construction of the pipeline by not allowing service operation (irrigation, works, sprinkling). Parcels with smaller areas remaining separated even for shorter periods shall be temporary declared as "orphan land". These land areas are titled this way only after being assessed by TAP , which comes after the owner's claim during first or second visit. In this case, compensation for these temporary declared orphan lands includes the same elements as in TAP's affected land area (during construction, the 38 m corridor), two years lease and the missing profit of two years.

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The temporary determined unusable land areas which will be compensated as stated above will be considered as such :  when the width of the plot/parcel is less than 5 m, since it cannot be mechanised;  when the area of the square-shaped or rectangle-shaped remaining plot is less than 1000 m2;  when the area of the triangle-shaped remaining plot is less than 1500 m2;  when the area of the irregular shaped remaining plot is less than 1500 m2  In all cases when access roads, drainage and irrigation canals are operational but left off  In all the above cases it is proposed that owners and / or users are entitled to compensation values of not more than 1000 m2, and only for loss of profit for 1 year. (In all cases during the construction of pipelines, interception of parcels will not last more than a few months, maximum 6 months) hence compensation for loss of profit for a year is more than enough). On the other hand, in any case the lack of cultivation-spraying, works, irrigation, manures-will not be completely absent, in contrary-only partially, thus reducing the production of apples, for example, will be 10-20, up to 30% annual profit while 100% is very high. For annual crops, temporarily unused lands will be very limited.

3. ABKONS Recommendation

ABKONS recommends that for these cases, TAP to instruct Abkons to establish an ad-hoc team which will evaluate the claim made by the PAP during the 1st and 2nd visits based on the criteria stated above. There will be 2 ad-hoc teams will be composed of 2 agronoms. Team 1: will cover the region of Korca and Devoll Team 2: will cover the region of Skrapar, Berat and Fier. For the field teams that will deal with claims for orphan lands it is required: (a) a simple questionnaire which included: - Surface alleged orphan; - Width and Height of plot - Slope; - The state of drainage; - The state of irrigation; - Geometric shapes of the plot; - Compatibility of the plot (restriction) with aerial photos / map; - Identification of the property and the owner; - Reasons for claiming orphan status or not; - Crops planted in two categories: annual plant and / or perrenial

(b) A photo of the plot (c) the signature of the owner / user

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Prior to extending the final offer to a PAP, suggested cases of orphan land will be submited for review to TAP LEA through a separate Memo, indicating whether: (i) There is a grieavance registered in regard to Orphan Land, and (ii) One of the conditions set in this memo is fulfilled (accompanied by related Report and Evidences) TAP LEA will make a decision on a case by case basis.

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Appendix 6: Updated crop values and calculations

Area Comp. System Disc. Doc.- Ser. Code Code Code Code Type No. Company: Trans Adriatic Pipeline AG AAL00-ABK-700-MO-0071 Owner: Abkons

Project Title: Trans Adriatic Pipeline Rev.: 0A

Document Title:

Calculations for Apple and Vineyards nurseries and other crops

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Rev. Purpose of Issue Remark/Description Date 0A Issued for review 2015-11-04

CONTRACTOR COMPANY Originator Checked Approved

Name/Signature Ago, Gurabardhi, Leskaj, Iris Arta Besnik

Date 2015.11.04 2015.11.04 2015.11.04

Accepted* Accepted* Document Status Preliminary Checked Approved (Commercial) (Technical)

*Delete as Required

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TABLE OF CONTENTS

1 Introduction ...... 115 1.1 Purpose ...... 115 1.2 Methodology ...... 115 2 Apple Nursery Garden ...... 116 2.1 General description ...... 116 2.2 Calculations of the offer ...... 117 3 Vineyard Nursery Garden ...... 118 3.1 General description ...... 118 3.2 Calculations of the offer ...... 119 4 Photos ...... 120 5 Greenhouses ...... 121 6 New Crops from Access Roads ...... 122

Table 1 General description of the area for apple nurserie ...... 116 Table 2 Revenues for apple nurserie ...... 116 Table 3 Expenses for apple nurserie ...... 116 Table 4 Replacment value for apple nurserie ...... 117 Table 5 General description of the area for vineyard nurseries ...... 118 Table 6 Revenues for vineyard nurseries ...... 118 Table 7 Expenses for vineyard nurseries...... 118 Table 8 Economic calculation of greenhouses with various technological level and intensity manufacturer ...... 121 Table 9 New Annual Crops ...... 122 Table 10 New Perennial Crops ...... 123

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1 Introduction

1.1 Purpose

The purpose of this memo is to explain the calculations for nursery garden. In Kuç i Zi village, Pojan Commune, Korca Region there are two cases of this type of nurseries, one with apples and one with vineyards.

1.2 Methodology

Based on the study of compensation values, below are the assumptions for calculating the revenues and the expenses in order to have the replacement values for these cases.

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2 Apple Nursery Garden

2.1 General description

Total area is about 1,200 square metres, with a total number of 70,000 plants. The price for one rootstock is 35 LEK. Table 27 General description of the area for apple nurseries Description Units Total Area of the Parcels 1,200 Square meter Rootstocks 70,000 Plant Price 35 Lek/For one Rootstocks In 1,200 square metres there are 70,000 rootstocks, so in 10,000 square metres or in 1 ha there are 583,333 rootstocks. Revenues:

Table 28 Revenues for apple nurseries Revenues Units Price 35 For one Rootstocks Rootstocks 583,333 in 1 Ha Total Revenues 20,416,655 LEK

Expenses:

Table 29 Expenses for apple nurseries Expenses Units Plowing 15,000 Lek/Ha Reaming 10,000 Lek/Ha Drainage lines 100,000 Lek/Ha Planting 140,000 Lek/Ha Harrow 50,000 Lek/Ha Grafting (583,333 * 5) 2,916,665 Lek/Ha Fertilization/DAP 54,000 Lek/Ha Nitrate/Urea 54,000 Lek/Ha Irrigation 35,000 Lek/Ha Pesticides 15,000 Lek/Ha Other expenses 338,966.50 Lek/Ha Total Expenses 3,728,632 Lek/Ha

Net Profit (Revenues-Expenses) 16,688,024 Lek/Ha

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2.2 Calculations of the offer

In the table below are calculated the replacement values for apple nurseries for square metres and for trees. Table 30 Replacement value for apple nurseries Crops Apple Nurseries Age category (year) 0-3 Expenditures (ALL/Ha) 3,728,633.70 Yield* (Kv/Ha) 583,333.33 Price (ALL/Kv) 35.00 Income (ALL/Ha) 20,416,666.67 Net profit (ALL/Ha) 16,688,032.97 Years (no.)** 3.00 Replanting costs** (ALL/Ha) 265,000.00 Maintenance costs*** (ALL/Ha) 3,124,667.00 Accumulated lost production (ALL/Ha) 50,064,098.90 Replacement. value (ALL/Ha) 53,453,765.90 Replacement. value(ALL/m2) 5,345.38 Replacement. value (ALL/tree) 91.64

For the affected parcel no 18/19/2, the affected area is 408.81 m2 and in the table below is calculated the compensation value of the apple nursey garden for this parcel.

Parcel No 18/19/2 Affected Area 408.81 m2 Replacement values 5,345.38 m2 Total Replacement Value 2,185,243.40 LEK

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3 Vineyard Nursery Garden

3.1 General description

Total area is about 9,300 square metres, with a total number of 200,000 plants. The price for one rootstock is 100 LEK. Table 31 General description of the area for vineyard nurseries Description Units Total Area of the Parcels 9,300 Square meter Rootstocks 200,000 Plant Price 100 For one Rootstocks

In 9,300 square metres there are 200,000 rootstocks, so in 10,000 square metres or in 1 ha there are 215,054 rootstocks. Revenues:

Table 32 Revenues for vineyard nurseries Revenues Units Price 100 For one Rootstocks Rootstocks 215,054 in 1 Ha Total Revenues 21,505,376 LEK

Expenses:

Table 33 Expenses for vineyard nurseries Expenses Units Plowing 15,000 Lek/Ha Reaming 10,000 Lek/Ha Ridge 3,000 Lek/Ha Reaming 90,000 Lek/Ha Harrow 5,000 Lek/Ha Grafting (215,054*3) 645,161 Lek/Ha Fertilization/DAP 108,000 Lek/Ha Rootstocks 1,505,376 Lek/Ha Irrigation 110,000 Lek/Ha Pesticides 150,000 Lek/Ha Other expenses 264,153.76 Lek/Ha Total Expenses 2,905,691 Lek/Ha Net Profit (Revenues-Expenses) 18,599,685 Lek/Ha

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3.2 Calculations of the offer

Crops Vineyard Nurseries Age category (year) 0-2 Expenditures (ALL/Ha) 2,905,691.40 Yield* (Kv/Ha) 215,053.76 Price (ALL/Kv) 100.00 Income (ALL/Ha) 21,505,376.34 Net profit (ALL/Ha) 18,599,684.95 Years (no.)** 2.00 Replanting costs** (ALL/Ha) 118,000.00 Maintenance costs*** (ALL/Ha) 2,523,537.63 Accumulated lost production (ALL/Ha) 37,199,369.89 Replace. value (ALL/Ha) 39,840,907.53 Replace. value(ALL/m2) 3,984.09 Replace. value (ALL/tree) 185.26

For the affected parcel no 18/19/23, the affected area is 2,020.97 m2 and in the table below is calculated the compensation value of the vineyard nurseries for this parcel.

Parcel No 18/19/23 Affected Area 2,020.97 m2 Replacement values 3,984.09 m2 Total Replacement Value 8,051,727.89 LEK

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4 Photos

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5 Greenhouses In the table below are the calculations for greenhouses in 3 categorisations:

1. Higher and Intensive (Glazed and Heating) 2. Higher / Intensive (with plastic) 3. Low / Medium (with plastic)

Table 34 Economic calculation of greenhouses

Higher / Intensive Higher / Intensive Low Medium Construction Element (glazed and heating) (with plastic) (with plastic) Description Value in Euro Value in Euro Value in Euro Basic Structure € 120,000.00 € 94,000.00 € 80,000.00 The ventilation system € 14,500.00 € 3,500.00 € 0.00 Plastic coverings € 14,000.00 € 12,000.00 € 9,000.00 Irrigation system € 17,000.00 € 15,000.00 € 12,000.00 The heating system € 55,000.00 € 0.00 € 0.00 Gutters € 0.00 € 2,000.00 € 2,000.00 Softwood € 0.00 € 1,200.00 € 1,200.00 Wells € 6,000.00 € 4,000.00 € 4,000.00 Thermal screens € 50,000.00 € 0.00 € 0.00 Anti-insect nets € 4,500.00 € 4,500.00 € 0.00

The plant support system € 7,500.00 € 7,500.00 € 6,000.00 The control system of micronutrients and € 13,000.00 irrigation € 13,000.00 € 0.00

Electric panel + cables € 29,000.00 € 0.00 € 0.00 Assistance for construction € 20,000.00 € 10,000.00 € 3,000.00 Fuel Tank € 10,000.00 € 0.00 € 0.00 Water Tank € 1,500.00 € 0.00 € 0.00 Services (Building) € 5,000.00 € 5,000.00 € 2,000.00 Electric generator € 20,000.00 € 0.00 € 0.00 Construction cost (labor force) € 18,000.00 € 13,000.00 € 9,000.00 Land Value € 0.00 € 0.00 Investment Value in Euro € 405,000.00 € 184,700.00 € 128,200.00

Investment Value in Euro per m2 € 40.50 € 18.47 € 12.82

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6 New Crops from Access Roads13 In the table below are the new crops, annual and perennial, identified during Census and Asset Inventory for Access Roads. The same values are used to calculate the compensations during pipeline route, compressor station land and for Temporary AGI.

Table 35 New Annual Crops

Agro-Climactic Zones 1 2 3 Mediterranean Sub- Mediterranean Annual Crops Mediterranean Continental continental Weather (Korca, Devoll) (Berat, Skrapar) (Berat, Fier, Lushnje) Compensation Rate Compensation Rate Compensation Rate (ALL/m2) (ALL/m2) (ALL/m2) Raspberry 0-1 228 228 228 Raspberry 2-3 328 328 328 Raspberry 4 - 10 500 500 500 Blackberry 0-1 202 202 202 Blackberry 2-3 293 293 293 Blackberry 4-10 447 447 447 Strawberry0-1 252 252 252 Strawberry 1 -3 408 408 408 Sage 0 -1 39 39 39 Sage 2 - 4 99 99 99 Sage 5 - 6 71 71 71 Oregano 0 - 1 39 39 39 Oregano 2 - 4 81 81 81 Oregano 5 - 6 46 46 46 Lemon balm 0 - 1 34 34 34 Lemon balm 2 - 4 83 83 83 Lemon balm 5 - 6 58 58 58

13 Reference to AAL00-ABK-300-MO-0005

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Table 36 New Perennial Crops

Agro-Climactic Zones

1 2 3 Perennial Crop Mediterranean Mediterranean Sub- Mediterranean Weather Continental continental (Korca, Devoll) (Berat, Skrapar) (Berat, Fier, Lushnje) Compensation Rate Compensation Rate Compensation Rate (ALL/m2 or per Tree) (ALL/m2 or per Tree) (ALL/m2 or per tree) Pjergulla (Pergola) 0-5 2,737.35 2,737.35 2,737.35 Pjergulla (Pergola) 6-10 10,455.00 10,455.00 10,455.00 Pjergulla (Pergola) > 10 vjet 17,720.00 17,720.00 17,720.00 Akacie (Acacia) <5 vjet 1,400.00 1,400.00 1,400.00 Akacie (Acacia) ≥ 5 vjet 2,200.00 2,200.00 2,200.00 Dellinje (Juniper) <5 vjet 500.00 500.00 500.00 Dellinje (Juniper) ≥ 5 vjet 700.00 700.00 700.00 Fik (Fig) <5 vjet 1,600.00 1,600.00 1,600.00 Fik (Fig) ≥ 5 vjet 3,000.00 3,000.00 3,000.00 Ftoj (Quince) <5 vjet 1,500.00 1,500.00 1,500.00 Ftoj (Quince) ≥ 5 vjet 3,000.00 3,000.00 3,000.00 Man (Mullberry) <5 vjet 1,200.00 1,200.00 1,200.00 Man (Mullberry) ≥ 5 vjet 2,500.00 2,500.00 2,500.00 Frasheri (Ash tree) <5 vjet 1,400.00 1,400.00 1,400.00 Frasheri (Ash tree) ≥ 5 vjet 2,200.00 2,200.00 2,200.00 Oak (Ash tree) <5 vjet 1,400.00 1,400.00 1,400.00 Oak (Ash tree) ≥ 5 vjet 2,200.00 2,200.00 2,200.00 Gorrice (Wild Pears) <5 vjet 400.00 400.00 400.00 Gorrice (Wild Pears) ≥ 5 vjet 800.00 800.00 800.00 Kullumbri (Sloe) <5 vjet 550.00 550.00 550.00 Kullumbri (Sloe) ≥ 5 vjet 1,200.00 1,200.00 1,200.00 Shelg (Salix) <5 vjet 200.00 200.00 200.00 Shelg (Salix) ≥ 5 vjet 700.00 700.00 700.00 Thane (Cornel bush) <5 vjet 400.00 400.00 400.00 Thane (Cornel bush) ≥ 5 vjet 1,000.00 1,000.00 1,000.00 Vidh (Elm-tree) <5 vjet 1,000.00 1,000.00 1,000.00 Vidh (Elm-tree) ≥ 5 vjet 3,000.00 3,000.00 3,000.00 Lofate <5 vjet 600.00 600.00 600.00 Lofate ≥ 5 vjet 1,300.00 1,300.00 1,300.00 Mollcinke (Wild Apple) <5 vjet 600.00 600.00 600.00 Mollcinke (Wild Apple) ≥ 5 vjet 1,500.00 1,500.00 1,500.00 Murriz (Thorn apple )<5 vjet 150.00 150.00 150.00 Murriz (Thorn apple ) ≥ 5 vjet 200.00 200.00 200.00

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Shkoze <5 vjet 200.00 200.00 200.00 Shkoze ≥ 5 vjet 600.00 600.00 600.00

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Appendix 7: Budget Breakdown

Budgeted Amount Cost (Euros)

1. Easement Compensation 13,316,565

2. Lease Compensation 11,474,442

3. Crop Compensation 9,312,772

4. Land Acquisition Compensation 4,773,011

5. Livelihood Restoration Support Programs 4,137,618

6. Contingency 6,906,726

7. Transaction costs 7,774,145 8. Management costs (including for monitoring & evaluation) 18,278,705

9. Total budget € 75,973,984