Resettlement Plan

October 2014

GEO: Sustainable Urban Transport Investment Program — Tranche 3 Tbilisi–Rustavi Urban Link (Section 2 part A)

Prepared by the Municipal Development Fund of Georgia for the Asian Development Bank. This is a revised version of the draft originally posted on August 2013 available on http://www.adb.org/projects/documents/sustainable-urban-transport-investment-program-t3- tbilisi-rustavi-rp

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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

2

Resettlement Planning Document

Land Acquisition and Resettlement Plan Document Stage: Final Project Number: 42414 October 2014

Georgia: Sustainable Urban Transport Investment Program (SUTIP – 3063-GEO) Tbilisi – Rustavi Urban Link – Section 2 Part A

Prepared by Municipal Development Fund of Georgia.

The land acquisition and resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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CURRENCY EQUIVALENTS (as of 27 September 2014)1

Currency Unit – Georgian Lari (GEL) United States Dollar (USD, $) GEL 1.00 = USD 0.5695 USD 1.00 = GEL 1.7560

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person DMS Detailed Measurement Survey GoG Government of Georgia GRC Grievance Redress Commute HH Household IA Implementing Agency IDP Internally Displaced Person (refugee) IM Independent Monitor km Kilometre LAR Land Acquisition and Resettlement LARF Land Acquisition and Resettlement Framework LARP Land Acquisition and Resettlement Plan MDFG Municipal Development Fund of Georgia MFF Multitranche Facility MoESD Ministry of Economy and Sustainable Development MoF Ministry of Finance MRA Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees NAPR National Agency of Public Registry NGO Non-Governmental Organization PFR Periodic Financing Request RoW Right of Way RU Resettlement Unit SPS Safeguard Policy Statement SUTIP Sustainable Urban Transport Investment Project sq.m. Square Meter ToR Terms of Reference

1 https://www.nbg.gov.ge/index.php?m=582&lng=eng 4 GLOSSARY

Affected Household – All members of a household, residing under one roof and operating as a single economic unit, who are adversely affected by the Project or any of its components. It may consist of a single nuclear family or an extended family group.

Affected Person – Any legal or natural person affected by Project-related changes in use of land, water, natural resources, or income losses.

Beneficiary Community – All persons and households, situated within the government-owned or acquired property, who voluntarily seek to avail and be part of the Project and represented by a community association that is duly recognized by the community residents, accredited by the local government, and legally registered with the appropriate institutions.

Compensation – Payment in cash or in kind of the replacement cost of the acquired assets.

Entitlement – Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base.

Host population – Community residing near the area where the Project beneficiaries propose to voluntarily resettle as part of the Project.

Improvements – Structures constructed (dwelling unit, fence, waiting sheds, animal pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization.

Land Acquisition – The process whereby a person is compelled by a government agency to alienate all or part of the land a person owns or possesses to the ownership and possession of the government agency for public purpose in return for a consideration.

Non-Viable Land (or “Orphan” Land): Land that is affected partially but to such to an extent that the remainder is not usable.

Owner with Full Registration: Owner registered in the Public Register, who holds documents certifying ownership (abstract from the Public Register and cadastral drawing) and holds all rights to dispose of the land plot (alienate it).

Legalizable Owner – Unregistered owner, who can register his/her rights to property in the Public Register upon the presentation of legal documents, such as documents certifying heritage or ownership.

Replacement Cost – The value determined to be fair compensation for land based on its productive potential, the replacement cost of houses and structures (current fair market price of building materials and labor without depreciation or deductions for salvaged building material), and the market value of residential land, crops, trees, and other commodities.

Resettlement – All measures taken to mitigate any and all adverse impacts of the Project on AP’s property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation of the damaged/removed infrastructure and installations.

Sacrebulo (Village) – Village level self-government unit

Severely Affected People – In the context of the Project, severely affected people include: physically displaced households (those who lose their primary residence); households losing

5 10% or more of their productive, income generating assets; and business owners losing their business partially or temporarily.

Vulnerable People – In the context of the Project and consistent with the LARF, vulnerable people include affected households below poverty line, households headed by women, disabled people, and Internally Displaced People (refugees).

6 TABLE OF CONTENTS

EXECUTIVE SUMMARY 9

CHAPTER 1. INTRODUCTION 14 1.1 Project Overview ...... 14 1.2 LAR-Related Conditionalities ...... 16

CHAPTER 2. IMPACT ASSESSMENT AND AP CENSUS 21 2.1 Data Collection Methodology ...... 21 2.2 Impacts Assessment ...... 21 2.3 Number of Affected Households / Legal Entities and Persons ...... 26 2.4 Compensation Strategy ...... 27

CHAPTER 3. SOCIO-ECONOMIC PROFILE 29 3.1 Introduction ...... 29 3.2 Profile of the affected population ...... 29 3.3 Number and size of affected households ...... 29 3.4 Age, marital status and education level ...... 30 3.5 Ethnic composition ...... 30 3.6 Household income and possessions ...... 30 3.7 Living conditions ...... 32

CHAPTER 4. LEGAL AND POLICY BACKGROUND 33 4.1 Georgian Legislation ...... 33 4.2 Involuntary Resettlement requirements under the ADB's SPS (2009) ...... 40 4.3 Comparison of Georgia Laws and Regulations with ADB's SPS ...... 41 4.4 LARF Principles and Entitlements Applicable for the Project ...... 42 4.5 Policy Framework and Entitlements ...... 43

CHAPTER 5. CONSULTATIONS AND DISCLOSURE 48 5.1 Consultations ...... 48 5.2 Disclosure ...... 50 5.3 Public Engagement During LARP Implementation ...... 50

CHAPTER 6. GRIEVANCE REDRESS PROCEDURE 52 6.1 Grievance Redress Process...... 52 6.2 Logging and Review of Grievances ...... 52 6.3 Reporting on Grievances ...... 54

CHAPTER 7. COMPENSATION, RELOCATION, AND INCOME RESTORATION 55 7.1 Compensation for privately-owned lands ...... 55 7.2 Compensation for trees and plants ...... 55 7.3 Compensation for Affected Structures ...... 56 7.4 Compensation for Business Losses ...... 58 7.5 Relocation and transition allowances ...... 58 7.6 Allowance for vulnerable households ...... 59 7.7 Severely affected households ...... 59

CHAPTER 8. INSTITUTIONAL FRAMEWORK 60 8.1 Role of MDFG ...... 60 8.2 Role of Other Agencies and Institutions ...... 63

CHAPTER 9. RESETTLEMENT BUDGET AND FINANCING 65

CHAPTER 10. IMPLEMENTATION SCHEDULE 66

7 10.1 General ...... 66 10.2 Project Preparation Phase ...... 66 10.3 LARP Implementation Phase ...... 66

CHAPTER 11. MONITORING AND EVALUATION 71 11.1 Introduction ...... 71 11.2 Internal Monitoring ...... 71 11.3 External Monitoring ...... 71

ANNEXES 73

ANNEX A. List of Affected Households/Legal Entities and Affected Land Plots / Property 73

ANNEX B. Information Leaflet 86

ANNEX C. Public Consultation Report 92

ANNEX D. Methodology for Computation Compensation Rates for Affected Land Plots Crops110

ANNEX E. Methodology for Computation of Compensation Rates for Perennial Crops 114

ANNEX F. Building Valuation Methodology – Example of Calculation Sheet 117

ANNEX G. Official Letter from MRA in Regards of IDP Households and Certified Translation to English 123

8 EXECUTIVE SUMMARY

1. The Government of Georgia has declared the modernization of the Tbilisi-Rustavi road as a priority project. The project envisages upgrading the existing 17.1 km long, 2-lane road between Tbilisi and Rustavi into an international standard, “Category I” highway, with 4 lanes and a general design speed of 120km/hour. Section 2 with total length of 6.8 km passes through housing and industrial areas, and generates significant displacement impacts as a result. Section 2 was sub-divided into two parts: Part A (PK 4+000 to PK 5+300 and PK 6+800 to PK 10+755: the road section without impacts on buildings, where LARP can be quickly finalized) and Part B: the section of the road with building impacts, where the impacts shall be reassessed following finalization of the structural study of buildings).

2. A Land Acquisition and Resettlement Framework (LARF) was agreed in 2010 between MDFG, on behalf of the Government of Georgia, and the ADB upon the inception of SUTIP. Draft LARP for whole section 2 was prepared by Dohwa Engineering in April 2014. However, to facilitate LARP finalization and implementation later it was decided to split that into two parts and proceed with finalizing the LARP for Part A (PK 4+000 to PK 5+300 and PK 6+800 to PK 10+755). This LARP for Section 2 Part A was developed by the Municipal Development Fund of Georgia (MDF) with support from consultants based on the data from “implementation-ready” version of LARP for whole section 2.

3. This LARP includes: (i) information on number and valuation of affected assets (land plots and structures) and affected households; (ii) information on affected businesses and respective compensation (excluding temporary impacts); (iii) information on vulnerable and severely affected households and respective allowances; (iv) summary of consultations carried out; (v) LARP implementation preliminary budget and tentative timeline; (vi) information on respective legal framework, compensation calculation principles, and (vii) grievance redress mechanism.

4. Provision of notice to proceed to contractor(s) and mobilization of contractor(s) will be conditional to full implementation of LARP (full delivery of compensation/ rehabilitation) as verified by an internal monitoring report). In case there are changes made after approval of final LARP, MDFG will inform ADB on such impacts, and prepare an updated LARP and implement that prior to allow contractor(s) working in Project area. Impacts during construction will be monitored and if required, a supplemental LARP will be prepared.

5. The impacts for the project and number of affected persons is underlined in table E-1 below.

Table E-1. Summary Land Acquisition and Resettlement Impacts

No. Description Number/Amount 1 Total number of land parcels to be acquired: - privately owned lands 192 - state owned lands 43 - state owned lands used by private (non-legalizable and included in 13 the above 43 plots) - lands with unknown owner 2 2 Total area of land to be acquired permanently (in m2) 264,629.0 3 Total number of land fully affected land plots 119 4 Total number of land partially affected land plots 118 5 Total area of agricultural land to be acquired permanently (in m2) 82,126.0 6 Total area of non-agricultural land to be acquired permanently (in m2) 182,503.0 7 Total area of permanently affected privately-owned land (in m2) 183,443.0 8 Total area of permanently affected state-owned land (in m2) 79,320.0 9 Total area of permanently affected leased land (in m2) 3,132.0 10 Total number of permanently affected households losing property 145

9 11 Total number of permanently affected legal entities 21 12 Total number of temporarily affected legal entities 2 13 Total number of employees losing job 198 14 Total number of vulnerable households 40 15 Total number of severely affected households 192 16 Total number of permanently affected structures 511 17 Total estimated number of APs 905

6. The preparation of the LARP included consultation and participation. The focus of these consultations effectively ensured that APs and other stakeholders would be well informed of the Project and of the LAR process, and could participate in planning. The LARP in Georgian language and the information pamphlet has been fully disclosed in the MDFG web-site and the information.

7. A grievance mechanism is available to allow APs to appeal any disagreeable decision, practice or activity arising from land or other assets compensation.

8. The Table E-2 below provides a summary of the compensation entitlements for various categories of APs.

Table E-2. Entitlement and compensation matrix

Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) Land Permanent loss of AH losing agricultural Owner with full Cash compensation at replacement agricultural land land regardless of registration cost. impact severity Legalizable Owner These AP will be supported by the IA to obtain legalization and provided with cash compensation at replacement cost. Informal settlers (APs One time self-relocation allowance in with no registration/valid cash. The relocation allowance is not documentation and non dependent on the number of AH legalizable) members or land characteristics and is a fixed amount per family equal to 1 year of minimum subsistence income2. Non-Agricultural Land AH losing their Owner with full Cash compensation at replacement commercial/ residential registration cost. land Legalizable Owner These APs will be legalized and provided with cash compensation at replacement cost. Renter/Leaseholder Rental allowances in cash equal to 3 months of leasing costs, according to leasing fees approved by the municipalities for leasing the land of such category.

2 The minimum subsistence income is calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia (August 2014: 300 GEL x month). Source: http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng 10 Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) Informal settlers (APs One time self-relocation allowance in with no registration or cash. The relocation allowance is not valid documentation dependent on the amount of AH and not legalizable). members or land characteristics and constitutes fixed amount per family equal to 1 year at minimum subsistence income. Non-viable (“orphan”) Land that is affected Owner with full Subject to a request being lodged by land) partially but to such to registration or the land owner to MDFG, orphan land an extent that the legalizable owner may be compensated in full if the remainder is not usable (subject to legalization) review of the request indicates that the remainder cannot be used economically Buildings and Structures Residential and non All AHs regardless of Full impact: Cash compensation for loss residential their legal ownership/ of building/ structures at full structures/assets registration status replacement costs free of depreciation (including legalizable and transaction costs and Informal Settlers) Partial impact: compensation for repairs Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Public Community/Government Reconstruction of the lost structure in property resources Assets consultation with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops affected All APs regardless of Crop compensation in cash at market legal status (including rate at gross crop value of expected legalizable and informal harvest. settlers) Trees Trees affected All APs regardless of Cash compensation at market rate on legal status (including the basis of type, age and productive legalizable and informal value of the trees. In addition, trees will settlers) be cut by the construction contractor and made available to APs for timber Business/Employment Business/employment All APs regardless of Owner: loss legal status (i). (permanent impact) cash indemnity of 1 year net income; and technical and administrative support from the RU to relocate the business in appropriate premises

(ii) (temporary impact) cash indemnity of net income for months of business stoppage. Income will be calculated based on tax declaration or in its absence on minimum subsistence income.

Permanent worker/employees: (i) indemnity for lost wages equal to 3 months of minimum subsistence income AND (ii) support to business owner to relocate the business as quickly as possible (see above) AND (iii) support from RU to enrolment into existing livelihood restoration 11 Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) programmes such as business training and micro-credit Allowances Severe Impacts >10% land impact All severely affected Agricultural income: additional crop Physically displaced AHs including informal compensation covering 1 year yield households settlers from affected land. Owners of businesses Other income: additional compensation that have to interrupt for 3 months of minimum subsistence activity permanently or income. temporarily Relocation/Shifting Transport/transition All AHs to be relocated Assistance to identification of a suitable costs replacement dwelling Provision of an allowance of 300 GEL covering transport expenses and livelihood expenses for a 3 months transitional period. Vulnerable People AHs below poverty line Allowance equivalent to 3 months of Allowances (poor and very poor), minimum subsistence income and households headed by employment priority in project-related women, disabled jobs people, IDPs IDPs living in Support to relocation Registered IDPs Assistance to the identification of municipal or other suitable municipal housing in housing cooperation with relevant authorities in charge of support to IDPs Other Losses Temporary impacts This applies to impacts All APs Design measures have been taken to during construction that are not of the eliminate all predictable temporary construction contractor’s impacts. If specific claims occur, they responsibility, such as, will be reviewed through the grievance for instance, temporary mechanism, procedures and rates in severance this LARP will apply, and any compensation that would be warranted would be paid from the contingencies budget. Damages during This applies to damage All APs Compensation for such damages during construction caused by a construction is a Contractor construction contractor responsibility. Compensation will be not complying with its assessed and paid per procedures and contractual obligations rates in this LARP. and normal good practice, such as for example, the unintentional destruction of a tree situated in an uncompensated property

9. The MDFG will implement the LARP, with support from the GoG. Internal resettlement monitoring will be done by the MDFG in close collaboration with ADB national LAR consultant and external international and national LAR consultants. The external international and local social and resettlement consultants were engaged to coordinate finalization of LARP, follow-up with its approval, disclosure, as well as provide support during implementation and out monitoring activities.

12 10. An Independent Monitoring Consultant will be engaged to provide monitoring of the implementation of land acquisition and resettlement activities in this Section 2 Part A of the Project road.

11. According to the calculation, a budget of approximately GEL 39,818,626.10 (USD 22,676,707.56) will be required for LARP implementation activities. This includes the cost for compensation of losses, transaction costs such as registration of new land plots / structures, re- registration of remaining portions of land plots, expenses required for notary services, bank account opening and closing fees, bank operational fees and charges, other administrative expenses, as well as resettlement monitoring and evaluation.

12. Civil works for the Project will commence after the full implementation of the compensation program described in this LARP including full delivery of compensation to the APs, and preparation of monitoring reports, and review by ADB.

13 CHAPTER 1. INTRODUCTION

1.1 Project Overview

1. The Government of Georgia has declared the modernization of the Tbilisi-Rustavi road as a priority project. The project envisages upgrading the existing 17.1 km long, 2-lane road between Tbilisi and Rustavi into an international standard, “Category I” highway, with 4 lanes and a general design speed of 120km/hour. Figure 1 presents the Project overview.

2. Together with other projects, the Tbilisi-Rustavi Road Modernization Project (hereafter “Project”) is included in Tranche 3 of the Sustainable Urban Transport Investment Program (SUTIP, hereafter “Program”). The Program is financed through an ADB Multi-Tranche Facility (MFF), and previous sections of the same road (Section 1 from KM 0 to KM 4.0 and Section 3 from KM 10.5 to 17.1) are financed by Tranche 2 of the MFF. LARPs for Sections 1 and 3 were prepared earlier, finalized, publicly disclosed and implemented.

3. The Project has two key dimensions:  A local and urban one, associated to the improvement of the urban link between Tbilisi and Rustavi;  An international one, the enhancement of the link between Azerbaijan and Georgia, and thereby between the Caspian sea (Baku port) and the Black Sea (Poti and Batumi ports).

4. Tbilisi is the capital of Georgia, with a population of about 1 million people, and its main economic and political centre. Rustavi, located only 25km to the South East of the capital, is the administrative centre of the province of Kvemo Kvartli. Rustavi used to be a major industrial centre during the Soviet period but has lost many of its mainly metallurgical industries following the collapse of the centrally planned economy. Its current population is estimated at around 120,000 people, making it the third city in Georgia by population size. With the loss of local economic activity Rustavi has evolved into a satellite city of the broad Tbilisi urban area and many Rustavi residents commute daily to Tbilisi where they are employed.

5. The existing 2-lane road (one lane in each direction) has not enough capacity to carry the whole traffic entering or exiting Tbilisi at peak hours. The road between Tbilisi and Rustavi is one of the busiest in the country. Recent traffic measurements indicate an average of about 18,000 vehicles per day (2011), which is well beyond the capacity of a two lane road. Most of the traffic (about 95%) is comprised of light vehicles (cars and minibuses), which reflects a commute pattern rather than a long haul one. The Government of Georgia has therefore decided to upgrade this road and has assigned the project responsibility to the MDFG.

6. The Tbilisi-Rustavi section is part of the larger Tbilisi – Red Bridge (Azerbaijan border) highway. The Tbilisi-Rustavi part consists of three sections:  Section 1 (KM 0 to KM 4+000) is an upgrade and widening of the existing road and has relatively limited LAR impacts as a result; a LARP has been prepared in 2012 and was approved by both the Government of Georgia and the Asian Development Bank (ADB);  Section 2 (KM 4+000 to KM 10+800) is a new urban link road. In this section the widening of the existing highway would have caused significant impacts and a new road was preferred. In contrast with Sections 1 and 3, Section 2, which is the one addressed in this LARP, will entail significant physical and economic displacement, and was divided into the Parts A and B;  Section 3 (KM 10+800 to KM 17+400) is also an upgrade and widening of the existing road; LAR impacts are relatively limited and have been assessed in a LARP

14 also prepared and approved in 2012.

7. Section 2 with total length of 6.8 km passes through housing and industrial areas, and generates significant displacement impacts as a result. For this reason several routing options have been considered to avoid or minimize involuntary resettlement. Economic analysis for Section 2 was performed by Design Consultant Dohwa Engineering. Three alternatives for this section were considered and evaluated taking into account technical, economic and resettlement aspects. Alternative 3 was selected as offering the best compromise between cost, technical constraints, and displacement impact minimization. This choice was endorsed by the Highway Department of Georgia. Figure 2 presents the location of the three routing options that were considered.

8. The preferred option avoids the most densely populated areas and the largest buildings by being pushed towards the Mtkvari River wherever this is technically possible (an option with higher construction costs but one that entails less displacement impacts). Further design refinement took place in cooperation between the design and the resettlement teams.

9. The 6.8 km long Section 2 passes through housing and industrial areas, and generates significant displacement impacts as a result, including demolition of a building with 43 apartments and possibly the demolition or heavy repair of other 10 buildings with a very large number of apartments (for this building the final land acquisition and resettlement impacts will be assessed after completion of structural integrity study).

10. From LARP finalization perspective the Section 2 was sub-divided into two parts: Part A (PK 4+000 to PK 5+300 and PK 6+800 to PK 10+755: the road section without impacts on building, where LARP can be quickly finalized) and Part B: the section of the road with building impacts, where the impacts shall be reassessed following finalization of the structural study of buildings). Figure 3 presents Parts A and B of the road Section 2.

11. In total, there are 237 land plots located in the impact corridor of the Project (Part A) covering an estimated area of 264,629.0 sq.m. Overall, these land plots can de divided into three major groups: (i) 192 land plots to be acquired for implementation of the Project and compensation; (ii) 43 land plots to be acquired for implementation of the Project without compensation (belong to state); (iii) 2 land plots of unknown ownership.

12. A Land Acquisition and Resettlement Framework (LARF) was agreed in 2010 between MDFG, on behalf of the Government of Georgia, and the ADB upon the inception of SUTIP. The objective of the LARF is to provide overall guidance in the preparation and implementation of Land Acquisition and Resettlement (LAR) tasks for the projects under each tranche and to establish the necessary covenants to ensure that this is done in compliance to the ADB’s SPS and procedures and relevant Georgian legislation. The LARF sets out the procedures for the preparation of Land Acquisition and Resettlement (LAR) tasks for projects under the Program and the objectives, principles, compensation eligibility and entitlement criteria, legal/institutional frameworks, participation and /consultation procedures and grievance redress mechanisms to be employed to compensate, resettle and rehabilitate the living standards of affected persons (APs.) Entitlements in this LARP for the Project were updated to a minor extent to ensure they meet the specific needs of Section 2. The LARF is publicly available on ADB’s website3.

13. Draft LARP for whole Section 2 was prepared by Dohwa Engineering in April 2014. However, to facilitate LARP finalization and implementation later it was decided to split that into two parts and proceed with finalizing the LARP for Part A (PK 4+000 to PK 5+300 and PK 6+800 to PK 10+755). This LARP for Section 2 Part A was developed by the Municipal Development Fund of Georgia (MDF) with support from consultants based on the data from “implementation-ready” version of LARP for

3 http://www.adb.org/projects/documents/sustainable-urban-transport-investment-program-resettlement-framework

15 whole Section 2. Details on socio-economic survey and valuation were taken from the initial implementation-ready document, then updated to reflect the impacts on Section 2 Part A only. Information on the socio-economic survey and census covering 57% of the affected households and 99% of legal entities was updated by the survey and census team, while valuation data was provided by a licensed valuation company involved by Dohwa Engineering.

14. This LARP was prepared for Section 2 Part A of the Tbilisi Rustavi Urban Link Road (the Project). It aims to provide preliminary assessment of the Project impacts and plan needed compensation/rehabilitation measures. Its preparation involved: (i) detailed measurement surveys, (ii) asset valuation/documentary research on affected plots, (iii) consultation with governmental agencies and affected parties; (iv) a socio-economic survey of affected persons (APs). The LARP was developed in compliance with the ADB’s Safeguard Policy Statement of 2009 (SPS) and Georgian legislation pertaining land acquisition and resettlement (LAR) issues.

15. This LARP includes: (i) information on number and valuation of affected assets (land plots and structures) and affected households; (ii) information on affected businesses and respective compensation (excluding temporary impacts); (iii) information on vulnerable and severely affected households and respective allowances; (iv) summary of consultations carried out; (v) LARP implementation preliminary budget and tentative timeline; (vi) information on respective legal framework, compensation calculation principles, and (vii) grievance redress mechanism.

16. Municipal Development Fund of Georgia (MDFG) is responsible for management of the project, including its Section 2 Part A. MDFG’s functions cover day-to-day management of the project, including supervision of the design process, coordination of implementation of civil works, etc. The construction works in Section 2 Part A are expected to be initiated in 2015.

1.2 LAR-Related Conditionalities

17. Based on ADB policy and practice, the commencement of the implementation of the Tbilisi – Rustavi Urban Link (Section 2 Part A) sub-project is subject following LAR-related conditionalities: (i) Announcement of the civil works contract tender: formal approval of the final LARP (“implementation-ready”) by ADB and the Government of Georgia; (ii) Provision of ADB no-objection to start civil works: full implementation of LARP as vouched by the Compliance Report prepared by an independent monitor.

16 Figure 1. Project Overview

17 Figure 2. Alternative Routing Options

18 Figure 3. Section 2 Part A and Part B

19

CHAPTER 2. IMPACT ASSESSMENT AND AP CENSUS

2.1 Data Collection Methodology

18. The detailed inventory/measurement of affected assets was based on a tentative alignment prepared by Dohwa Engineering and delivered in early July 2013. An alignment fine- tuning process was carried out as the survey results were becoming available to avoid or minimize some of the most sensitive impacts. Digitized cadastral maps and related information on affected land plots were collected from the National Agency of the Public Registry (NAPR) and the road alignment was superimposed on cadastral maps to identify affected land plots.

19. On the basis of cadastral records, a topographic survey was conducted by surveyors Alligator from end June to mid-July 2013 to identify the borders of the affected plots, the limits of the road right-of-way, contact affected landowners, identified land users where relevant, and verify all information in the cadastral records pertaining to landowners. Information was also collected in regards to unregistered land parcels and related informal land users.

20. Based on these topographic surveying activities and the identification of affected landowners and land users, the survey teams conducted a census of Affected Households (AH), including the administration of a systematic socio-economic questionnaire to all identified AH. These surveys were conducted in the same time window by the same teams. Annex 2 presents the questionnaire and survey form used.

21. Lastly, a valuation exercise was conducted by valuation company ATOS for all identified affected properties and any business losses. This was undertaken based on the results of the survey and census, and in the same time frame. All teams were working together in an integrated manner.

22. The end date of the census survey (24th July, 2013) is the eligibility cut-off date for this LARP. Data collected during preparation of LARP for whole Section 2 was revisited and separated for Section 2 Part A in August and September 2014. The teams involved in socio- economic study, detailed measurement and valuation collaborated with team of consultants and provided them with the updated information required for development of this LARP for Section 2 Part A.

23. Detailed design for Section 2 is almost completed, but will be finalized once the results of vibration and noise study are available. Detailed design is expected to be available within the first quarter of 2015.

2.2 Impacts Assessment

2.2.1 Land Losses

24. Detailed measurements made at the design stage revealed a total of 264,629.0 m2 of land will be fully acquired for permanent use. Out of that, 82,126.0 m2 or 31% of permanently affected lands are agricultural, and 182,503.0 m2 or 69% of permanently affected lands are non- agricultural.

25. An estimated 237 plots are affected due to project activities. 145 plots have structures on the part of plot affected by the Project.

26. 183,443.0 m2 or 69.3% of the affected lands are privately-owned. The remaining 79,320.0 m2 or 30% belong to State, while the ownership of 1,866.0 m2 or 0.7% is not clear. There no lands leased from the State, while 3,132.0 m2 are leased from private owners

21 (included in the abovementioned 69.3%).

27. 13 land plots are currently used by 11 households and 1 legal entity without formal rights, and are non-legalizable. 43 land plots with total area of 79,320.0 m2 that belong to State are affected and will be provided for project purposes. See table 1.

Table 1. Number of plots and area of permanently affected lands by land type and tenure status

Land Type Number of plots by tenure Total Area of land (in m2) by Total area, status number tenure status in m2 Privately State Unknown of plots Privately State Unknown owned owned ownership owned owned ownership Agricultural 118 20 0 138 75467 6659 0 82126 land Non- agricultural 74 23 2 99 107976 72661 1866 182503 land Total 192 43 2 237 183443 79320 1866 264629

28. A total of 13 households own more than one plot. 4 households own 2 agricultural land plots and 2 households own 3 agricultural plots, while one household owns 3 plots used for non-agricultural purpose. In the meantime, 6 households own 2 plots used for non-agricultural purposes. In terms of legal entities, 4 of them own 2 non-agricultural land plots and one another entity owns 7 non-agricultural land plots.

2.2.2 Loss of Trees and Perennial Plants

29. It is estimated that 100 households and 8 legal entities will lose an estimated number of 4820 trees and perennial plants (91 non-productive and 4729 productive) located on 108 land plots.

30. Fruit trees like cherries, pomegranates, figs, plums, persimmons, apple, and perennial plants such as grapes, currant, raspberries, as well as non-productive varieties such as palms and decorative trees are typical. Number of non-productive and productive trees distributed by type and age is provided in the table 2 below.

Table 2. Number of trees and perennial plants by type and age

Number of affected trees by age category Species age 0 to 5 age 5 to 9 age 10 to 15 age 15 and more Total Non-productive trees and perennial plants Boxwood 10 0 0 0 10 Agave 1 0 0 0 1 Palm 17 0 0 0 17 Decorative trees 63 0 0 0 63 Sub-total 91 0 0 0 91 Productive trees and perennial plants Cherry 178 149 51 16 394 Alycha 6 5 5 40 56

22 Number of affected trees by age category Species age 0 to 5 age 5 to 9 age 10 to 15 age 15 and more Total Peach 68 62 1 4 135 Sweat cherry 43 40 30 16 129 Pomegranate 99 231 65 1 396 Laurel 4 3 1 0 8 Feijoa 2 0 0 0 2 Apricot 12 10 15 32 69 Capers 7 0 0 0 7 Walnut 56 27 17 101 201 Persimmon 17 63 47 164 291 Kiwi 6 7 0 0 13 Quince 10 33 13 8 64 Fig 54 119 117 19 309 Pear 16 22 18 23 79 Medlar 5 10 2 0 17 Almond 1 3 6 2 12 Plum 128 65 77 17 287 Cherry laurel 5 1 0 0 6 Cornel 8 26 1 0 35 Mulberry 11 42 26 41 120 Hazelnut 18 57 38 0 113 Prune 24 39 49 103 215 Zizyphus 0 3 0 0 3 Nectarine 13 0 0 0 13 Apples 84 82 32 22 220 Apricot 9 7 7 10 33 Persimmon 2 10 5 0 17 Medlar 3 3 0 0 6 Barberry 1 3 0 1 5 Current 100 7 0 0 107 Grapes (vineyard) 104 261 246 239 850 Grapes (alley) 115 231 0 0 346 Black pepper 0 1 0 0 1 Raspberry 75 0 0 0 75 Strawberry 40 0 0 0 40 Cranberries 14 0 0 0 14 Blackcurrant 0 1 0 0 1 Gooseberry 40 0 0 0 40 Sub-total 1378 1623 869 859 4729

23 Number of affected trees by age category Species age 0 to 5 age 5 to 9 age 10 to 15 age 15 and more Total Total 1469 1623 869 859 4820

2.2.3 Structure Losses

31. A total of 511 structures will be fully affected. These structures are owned and used by 118 households, 18 legal entities and 2 unknown owners for various purposes. See table 3.

Table 3. Affected structures

Number of Total area Type of Structure Type of Material 2 Structures (m ) Petrol station Concrete 8 1,525.32 Car wash and repair Concrete 26 304.17 House / apartment4 Concrete 47 6,179.5 Shop Concrete 8 369.93 Restaurant Concrete 2 824.22 Industrial structure Concrete 16 7,570.83 Cafe Concrete 4 258.04 Warehouse Concrete 4 313.83 Administrative structure Concrete 2 121.54 Toilet / bath Concrete 24 93.28 Ancillary (barn / shed) Concrete 74 3,339.99 Ancillary (barn / shed) Wood 3 132.58 Garage Concrete 3 101.10 Cowshed Concrete 2 14.77 Greenhouse Metal / Glass 1 228.08 Foundation of structure Concrete 2 683.00 Wooden walls / screens Tree 4 36.00 Paved area Concrete 27 3,281.80 Paved area Asphalt 16 10,818.00 Basin / Tank (open and closed) Concrete 8 606.74 Fence Concrete 64 5,293.02 Fence Metal 39 4,890.79 Fence Wood 9 361.60 Trellis Metal 23 2,578.00 Gates Metal 56 704.70 Gates Wood 1 32.00 Advertisement stand Metal 2 3.00 Foundations for machinery Concrete 35 105.00

4 There are 47 houses/apartments occupied by the legitimate owners, while 8 apartments are occupied by refugee (IDP) APs. See paragraphs 42-43 for details. 24 Number of Total area Type of Structure Type of Material 2 Structures (m ) Gas supply system Metal 1 40.00 Total 511 50,810.83

2.2.4 Business Losses

32. 32 businesses are affected by the Project, out of which 30 are fully impacted and 2 partially. Permanently affected businesses include petrol stations, canteens, car maintenance services, and industrial production. In the meantime, two partially affected businesses include pharmaceutical and furniture production, and will lose income from temporary interruption in their business activities. See table 4.

Table 4. APs losing their business

Type of Business Number of affected Type of use (owned Monthly income, Duration of businesses / leased) in GEL impact (Permanent or Temporary) Petrol Station 8 Owned 126383 Permanent Petrol Station 1 Leased 10317 Permanent Canteen 5 Owned 2787 Permanent Canteen 3 Leased 4128 Permanent Shop 5 Owned 2335 Permanent Shop 1 Leased 150 Permanent Car maintenance 2 Owned 434 Permanent Industry 4 Owned 20000 Permanent Industry 1 Leased 23 Permanent Total 30

33. The Project partially affects two existing businesses – a pharmaceutical production and a furniture production. These are affected in a relatively marginal manner, which will not compromise their operations or cause any business losses. Compensation will be paid in respect of affected land and a few affected structures, which are unused, obsolete, or of secondary importance. Attention will need to be paid to access issues, and it is important that MDFG engage with these two companies on an on-going basis to mitigate any access issues that may appear, particularly during construction. Employees of these two large businesses are not considered as affected and are therefore excluded from the total of affected employees mentioned below. It is important to note that neither of these two companies accepted to sign the valuation sheet submitted by the survey and valuation team at the time of census and asset inventory as the company representatives that were met by the survey and valuation team did not think they were empowered to do so and also because they indicated that further negotiations were warranted with MDFG representatives.

2.2.5 Employment Loss

34. 30 businesses will be permanently affected due to Project activities. According the information provided by business owners all of the 198 employees will lose their jobs due to the Project activities. In the meantime two legal entities operating pharmaceutical and furniture production may face temporary disruption of their activities during construction works that will

25 not imply employment losses.

2.2.6 Relocation Impact

35. In total, 44 APs will lose their 47 residential structures (i.e. house with ancillary structures), 31 APs will lose their 30 business related structures and will need to relocate.

2.2.7 Vulnerable APs

36. Efforts were made during the census to identify poor and vulnerable households. Data has need verified with the Social Service Agency of the Ministry of Labour, Health and Social Affairs of Georgia. Forty (40) households were identified as vulnerable during the socio- economic survey and further verification with appropriate state entities. These include households with income below subsistence minimum, households having a disabled member, households led by single women, and households of internally displaced persons (refugees). Information on vulnerable households is presented in table 5 below.

Table 5. Vulnerable households identified during the socio-economic survey

Vulnerability Criteria Number of HH Income below subsistence minimum 7 With disabled HH member 8 Women-led households (single women) 1 Internally Displaced Persons (refugees) households 29 Total 40

2.2.8 Severe Impacts

37. Out of total 237 affected land plots, 119 are affected fully (including 94 privately owned, 23 owned by State and 2 plots of unknown ownership) and 118 partially affected (98 private and 20 State). Out of 118 partially affected, for 74 plots the impact exceeds 10% of the total land area (including 74 privately owned plots and 17 plots owned by State). Total number of plots impacted by more than 10% is 170 (including 168 privately owned plots and 2 plots of unknown ownership). In addition, impact on the land plots owned by 4 households will be less than 10%, but will lose their primary residence or business (2 households will lose house and 2 other households will lose business). 12 households are residing on state owned land plots (not subject to legalization) and 6 households will lose business located on rented land plots. In total, number of severely affected households comprises 192.

2.3 Number of Affected Households / Legal Entities and Persons

38. 168 affected households and legal entities (145 households, 21 legal entities and 2 unknown owners) will likely experience various losses / impacts from the implementation of the Project (Section 2 Part A). Most of the households will lose ownership / access to residential lands and most of the legal entities will lose ownership/access to commercial lands. The estimated number of APs, is 905 persons See table 6.

Table 6. Details of affected households, legal entities and APs by category

26 AP Category Number of affected Estimated Notes households / legal number of 5

entities APs7F (impact Absolute type) (without double counting) A. Land loss A1. Agricultural land (permanent loss) Number of affected people - owned/leased by households 108 108 497 differs from number of plots - owned/leased by legal entities 1 1 1 (see paragraph 28) A2. Non-agricultural land (permanent loss) - owned/leased by households 37 31 143 Accounted for in A1 - owned/leased by legal entities 20 20 20 A3. Other land (permanent loss) - unknown owner 2 2 9 Sub-total (A) 168 162 670

B. Loss of trees and perennial plants - owners/leaseholders (households) 100 - - Accounted for in A1 - owners/leaseholders (legal entities) 8 - - Accounted for in A1 Sub-total (B) 108 - - C. Business/Income Losses C1. Permanent business losses - owners (household) 18 - - Accounted in A1 and A2 - owner (legal entity) 13 - - Accounted in A1 and A2 C2. Wage workers/Employees from 198 198 198 affected businesses Sub-Total (C) 229 198 198 D. Permanent structure losses owners (households) 118 - - Accounted in A1 and A2 owners (legal entity) 18 - - Accounted in A1 and A2 occupants (refugees) 8 8 37 Sub-total (D) 144 - -

E. Vulnerable people 40 - - Accounted in A1, A2, D F. Severely affected people 192 - - Accounted in A1, A2, D G. Total (A+B+C+D+E+F) - 368 905

2.4 Compensation Strategy

39. As shown in the tables on impacts and APs census above, there are 168 APs affected by land losses (of which 2 are unknown), 47 APs affected by losses of residential property losses and are full owners of affected properties. In addition, there are 8 refugees (IDP) occupying apartments in the building(s) owned by state and unknown owner.

2.4.1. Compensation of land losses

5 Data on the number of household APs is based on the information on average size of the household obtained during socio-economic survey and census, and represents only estimate of the total number of household members to be affected by the Project. 27 40. The compensation strategy for the land losses will follow self-relocation principles and will be provided in cash at replacement cost based on appropriate survey of market rates (see Annex D).

2.4.2. Compensation of private house losses

41. The compensation strategy for the owners will follow self-relocation principles and will be based on cash compensation at replacement cost.

2.4.3. Compensation of IDP (refugee) premises

42. The compensation strategy for 8 refugee APs will follow instead the principle of in-kind compensation, based on the provision of substitute premises comparable or better than the premises lost by the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees of Georgia (MRA). Contacts have been made by MDFG with the MRA and statement on agreement was obtained to ensure that alternative housing is secured for the 8 IDP households affected by the Project (see Annex G). Further on a relocation plan for these latter APs has been prepared and details are provided in the paragraph 43.

43. The APs will be relocated to new apartments built for the purpose in the Varket Ili district, which is about 7km far from the Phonichala. Varket Ili is fully developed area of greater value and better access that the Phonichala. The Varket Ili area is accessible by subway. The area of the apartments provided to the APs will be at least of the same area as that of the apartment that they are currently occupying and possibly larger (1-2 person households will be provided with the apartments with area of 45 sq.m.; 3-4 person households will be provided with the apartments with area of 45-60 sq.m.; 5-6 person households will be provided with the apartments with area of 70-80 sq.m.). Each apartment will be fully ready for occupation and will be fitted with all utilities (including power and water supply, gas supply, etc. as needed). APs have been informed of the plan, which is agreeable to them.

28 CHAPTER 3. SOCIO-ECONOMIC PROFILE

3.1 Introduction

44. Socio-economic information on the affected AH was gathered based on the 99% pool of directly affected households and legal entities (questionnaires are available in Annex C). Census of 80% of the APs available on site was conducted. Out of 161 directly affected households, 92 were available for an interview (57%). Out of total 198 directly affected employees and employers, 196 were available for an interview (99%). According the information provided by the business owners to the survey team, all of the 198 employees will lose their jobs due to the Project activities.

45. Out of surveyed 288 APs, 92 were households (including 18 households carrying out business activities in the affected property) and 31 were legal entities (including 3 large companies, 28 small businesses). Families and heads of small businesses provided information on affected land and assets, about other (not affected) income sources and assets owned by AH, family composition by gender and age groups, on poverty status, is the household headed by woman etc. This information was sufficient for identifying severely affected and vulnerable groups and to get a picture of basic socio-economic status of the affected APs. Besides that, an extended sample socio-economic survey was included in the project area covering 92 households out of total 161 directly affected (57%). The objective of this detailed socio- economic survey was to gather general information on socio-economic conditions of the affected people. In addition, social information was gathered on employees.

46. Census of 100% of affected employees was carried out. Out of 31 affected businesses, 196 AHs were interviewed during social assessment, which constitutes 99% total employee AHs. Obtained information allowed to estimate socio-economic status of the families, vulnerability of the households and severity of impacts.

3.2 Profile of the affected population

47. A sample survey of 288 of APs was conducted. Formal and informal interviews were carried out from August 1 – September 1, 2013. Socio-economic survey was carried out based on the list of affected assets and persons. For this LARP, an estimated 192 land plots owned/used by 166 APs (including 145 households and 21 legal entities) are affected. Results of analysis are presented further in this chapter.

3.3 Number and size of affected households

48. Most of the surveyed households (61%) have 3-5 members, while households including 6-10 constitute 22.5% and those with less than 3 members comprise 15%. However, there are also households (1.5%) with 11 or more members. About 2% of HHs in the sample are headed by women. The average household size is 4.56. All (288 out of 288) interviewed parties agreed to provide information on their households, which was used for the analysis. See table 7.

Table 7. Size of the surveyed households

Household Size Number Percent 1 and 2 43 15 3 – 5 175 61 6 – 10 65 22.5 11 and above 5 1.5 Total 288 100.0 29

3.4 Age, marital status and education level

49. The age and gender distribution of affected people (total of 1315 people) is shown in the following table 8.

Table 8. Age and gender distribution of surveyed household members

Age of <6 year 7-18 year 19-65 year 65+ year Total APs Male 89 98 414 59 660 Female 74 82 418 81 655 Total 163 180 932 140 1315

50. A total of 26% (350 persons) affected people are under 18 years of age. This group is either in process of studying or not yet attending the school. In the same time, 328 (25%) have higher education, while the remaining 49% have completed secondary and vocational education.

3.5 Ethnic composition

51. In terms of ethnic composition, majority of the affected households (61%) are Georgians. Second largest group (28%) is represented by Azerbaijani. Third largest group is represented by Armenians (9%). Other nationalities comprise a total of 2%. See table 9. The Georgians constitute the native local population. The other ethnic groups are settled in the area for many years. None of these ethnic groups maintain cultural and social identifies separate from the mainstream Georgia’s society fitting the ADB definition of Indigenous Peoples. They have full and equal access to institutions and economic opportunities as the rest of the population and live or own assets within the project impacted area. Based on these data it is concluded that the Project will not trigger the ADB policy on Indigenous Peoples.

Table 9. Ethnicity of surveyed APs

Female Male Total Ethnicity of household head Number Number Number Percent Georgian 96 79 175 61 Azerbaijan 71 10 81 28 Armenian 21 6 27 9 Other 5 - 5 2 Total 193 95 288 100.0

3.6 Household income and possessions

52. A total of 92 households reported to have an income, from which 73 (79.4%) of households rely on one source of income, while 19 (20.6%) households have two sources of income. Among 73 households that rely on one source for income, 10 households depend on pensions only. Maximum reported monthly income is 2000 GEL, while minimum was 150 GEL for households who had income. See table 10.

30 Table 10. Main sources of income households

Occupations of affected household members Number of HH % Daily labor 37 33.4 Pension 25 22.5 Permanent private sector employment 17 15.3 Permanent government employment 4 3.6 Business 18 16.2 Agriculture 10 9

53. Income of the households of employees: 100 (51%) of 196 households rely on one income source. 75 (38%) households have two income, 17 (9%) of them have three sources of income and one of a family (2%) receives income from four sources. For the households of employees the minimum household income 300 GEL and maximum 3,500 GEL. Table 11 shows the main sources of income for both employed individuals and business owners’ households.

Table 11. Main sources of income for employed individuals and business owners

Main occupations of affected household members Number of HH % Daily labor 44 14.5 Pension 55 18.1 Permanent private sector employment 128 41.9 Permanent government employment 30 9.8 Business 48 15.7 Agriculture 0 0

54. Survey results show, that the income of the affected households is less than the income of the households of employees. See table 12.

Table 12. Reported monthly household income of surveyed households (per household member)

Income range (in GEL) Number of HH % 100 and below 5 5.4 100 - 700 52 56.5 700 - 1500 29 31.5 1500 and above 6 6.6 Total 92 100.0

55. Monthly incomes of households of employees and business owners is higher due to the fact that at least one person in the household is employed. See table 13.

Table 13. Monthly income of employed persons

Income range (in GEL) Number of HH % 500 and below 112 57 500 - 1000 47 24 1000 - 2000 28 14 2000 and above 9 5 Total 196 100.0

31 56. The following table 14 shows minimum, maximum, average data on household income and expenditures.

Table 14. Household income and expenditures

Income Expenditures

(GEL per month) (GEL per month) Minimum 150 150 Maximum 3.500 2.500 Average 608 518

57. The average income is exactly in line with national data for Georgia (the Georgian average disposable income (after tax) is GEL 600 per month). However, it should be noted that the average is drawn upwards by a few high households with income above GEL 5,000, all of these being business owners. As a reference the minimum subsistence income for a household is five (since average size of the household is 4.56) was estimated by the Georgian Institute of Statistics at GEL 300 per month (as of August 2014)6.

58. Lastly possession of household items and vehicles, shown in the table 15 below, confirms that the affected population is generally in line with Georgian averages. For example, average possession of cars in Georgia (World Bank, data for 2010) is 130 cars per 1,000 inhabitants. This is equivalent to about 60% of households having a car, slightly higher than the average in the affected area

Table 15. Possession of Household Items and Vehicles

Possess (%) Do not possess (%) Refrigerator 90% 10% Washing machine 82% 18% Car 45% 55% Motorcycle 0% 100% Bicycle 0% 100% Gas cooker 86% 14% Heating system 23% 77% Air conditioner 14% 86%

3.7 Living conditions

59. Most of the affected families, 218 (76%) live in their own private houses, 56 (20%) of them own the apartment buildings and 14 (4%) of them are renting residential accommodation.

60. Every affected person has access to medical services. In the area where project road is located there is a school and a kindergarten.

61. A total of 95% (273 households) of APs are connected to the central water supply system. In the meantime 34% (97 households) not connected to a central sewerage system. All the APs are connected to power supply system.

6 http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng 32 CHAPTER 4. LEGAL AND POLICY BACKGROUND

62. This LARP is based on existing legal framework and procedures for land acquisition in Georgia and ADB Safeguard Policy Statement (2009), as well as Land Acquisition and Resettlement Framework prepared in April 2010. The following section describes these policies, land acquisition processes, entitlements and eligibility for compensation and other resettlement entitlements.

4.1 Georgian Legislation

63. This section provides a brief summary of the normative and legislative acts In Georgia regulating the issues of land acquisition and resettlement, obtaining State ownership rights to privately owned land parcels based on the public needs, social issues caused due to road constructions activities:

 Constitution of Georgia, 1995  Law of Georgia on Motor Roads, 1994  Organic Law of Georgia, Local Self-Government Code, 2014  Civil Code of Georgia, 1997  Law of Georgia on Cultural Heritage, 2007  Law of Georgia on Notary, 2009  Law of Georgia on State Property, 2010  Law of Georgia on Ownership Rights to Agricultural Land, 1996  Law of Georgia on Legalization of Property, 2007  Law of Georgia on Public Register, 2008  Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal entities, 2007  Law of Georgia on Rules for Expropriation of Ownership for Necessary Public Need, 1999  Civil Procedural Code of Georgia, 1997  Law of Georgia on Social Assistance, 2006  Law of Georgia on Social Protection of Disabled Persons, 1995  Law of Georgia on Internally Displaced Persons from Occupied Territories – Refugees, 2014

64. Constitution of Georgia. The Constitution determines the essence of private ownership and defines presumption of inviolability and also regulates the issues related to compensation and expropriation of land and immovable property for necessary public need. The Constitution of Georgia ensures the publicity of information. Pursuant to Article 21 of the Constitution of Georgia “the right of ownership and inheritance is declared and secured”. Nobody is eligible to cancel the universal right of ownership and legacy. Throughout of the necessary public need or if the urgent necessity has emerged, the Article 21.3 of the Constitution allows the expropriation of the private ownership however, only according to the Court Decision or under the rules identified in the organic law7 on basis of the appropriate and fair reimbursement.

65. Other articles of the Constitution of Georgia also establish legislative basis in respect with the resettlement measures related to motor road construction. This considers the State actions for expropriation of land for urgent public need, i.e. exercising the right of expropriation (power of eminent domain), also information disclosure and public consultations, protection of cultural heritage and grievance redress related to land acquisition and resettlement of

7 In the hierarchy of the laws the Organic Law stands between the Constitution and other laws, what highlights the significant importance of the latest. 33 population. The stated regulations create the set of procedures that allow obtaining the permit on road construction from private owners.

66. In the process of construction and rehabilitation of motor roads, the significant attention shall be paid to the protection and care of cultural heritage so that they are not damaged and deteriorated. In accordance to the Article 34 of the Constitution of Georgia, “each and every citizen of Georgia is obliged to care for the protection and maintenance of cultural heritage. The State protects cultural heritage by the Law”.

67. The Constitution ensures the right of a citizen to live in safe and healthy environment and use natural and cultural environment. The State undertakes environment protection measures to secure safe environment for people. People have the right to obtain "full, true and timely information" in regard with their work place and residential environment.

68. The Article 42 of the Constitution makes the citizens eligible to claim, in particular protects them and encourages appealing to the court for protection of their rights and freedom.

69. Law of Georgia on Motor Roads defines the status of the roads and use of roads. The law divides the roads into three categories: international, domestic and local roads, as well as sets right-of-way on the land, which is located 100 meters from the road. If the land is located within 100 meters from the road the permission from road owner is required for construction activities. The road owner's means: road department of Georgia, Municipal authorities and others who are the owners of the roads.

70. The road agencies and other organizations that are building roads and highways are given with the right for permanent or temporary use of the lands based on the Georgian legislation.

71. Organic Law of Georgia, Local Self-Government Code. The code defines the legal basis for self-government’s operation, authorities of local self-government bodies, their establishment and duty rules, their finances and properties, relations with citizens, state authorities, as well as with public and private legal entities. Local self-government is carried out by municipalities: in self-governed cities and in self-governed communities. The law establishes the categories of municipal property, the way of establishment and property rights (with the exception of natural resources, as their use, ownership and management is regulated by the Georgian legislation), as well as municipal property privatization issues.

72. Municipalities have their own property that could include non-agricultural lands, agricultural lands (with or without buildings), as well as shares and stocks. Property of municipality consists of two categories: the basic (inalienable) property and the additional property. The basic (inalienable) property can only be used for the public functional use by municipality and for carrying out duties. The basic (inalienable) property is inalienable, besides the exceptional cases. The additional property is inalienable. If it is necessary property of municipality can be transferred free of charge to the State.

73. Civil Code of Georgia regulates private civil relationships, and evolves property rights, the law of obligations, family law and the law on inheritance. Regulations of the Civil Code that are particularly relevant to the property law section, where the ownership, construction and servitude rights are discussed, and other type rights directly related to the project are elaborated below.

 Ownership Right. The ownership right entitles its beneficiary to freely possess and use the property. The ownership right can be limited based on legislation or other agreement. Ownership on the land parcel gives implicit right to the land owner to implement construction activities if it is not restricted by any agreement or law.

34  Construction Right. The owner is allowed to transfer a land plot to another person for temporary use (not to exceed 59 years) for charge or free of charge. The transferee obtains the right to build a building/construction on or under the land plot, as well as to assign and transfer this right under inheritance or tenancy, borrowing or renting. The construction right may cover such part of a land plot that is not necessary for the actual construction but allows a better use of the facility constructed on the basis of the construction permit. Termination of the construction right requires consent from the landowner.

 Necessary Right-of-Way. Another possibility is the use of “Necessary Right-of-Way”, a legal alternative to expropriation, which is regulated by the Civil Code of Georgia (Article 180). Per Civil Code, Necessary Right-Of-Way can be invoked “if a land plot lacks access to public roads, electricity, oil, gas and water supply lines that are necessary for its adequate use”. The owner may then claim for using a neighbour’s land parcel “for the purpose of providing the necessary access”. “Necessary Right-Of-Way” is granted by a District Court based on an application by the “neighbour” that must contain a justification of the urgency. Compensation may either be amicably agreed or be decided by the judge further to the decision granting “Necessary Right-of-Way”.

Fundamentally “Necessary Right-Of-Way” is intended to allow a landowner to obtain right of way through a neighbouring land parcel for utilities serving his/her land parcel. It can be used where amicable agreements cannot be reached due to refusal or absence of affected landowners.

Servitude. Servitude Right on the property establishes the limits on land parcel or on other property in favour to other land parcel or owner of the property (beneficiary). The Beneficiary is granted with the right to use land parcel under restriction with some conditions on land parcel under restriction and/or restrict concrete activities or prohibit land owner in regard of this land under significant rights.

However, in regard with this project, any rights (among them ownership, construction, inevitable road or servitude) the terms and conditions for transfer the right for constriction shall be defined against each land parcel in accordance to the identified rules and on the basis of registered agreement entered by a landowner and the party holding the corresponding right of construction.

74. Law of Georgia on the Protection of Cultural Heritage. In addition to the Constitution of Georgia affirming the State's obligation to protect cultural heritage and requiring each citizen to care for, protect and preserve cultural heritage, the Law of Georgia on Protection of Cultural Heritage defines the legislative principals for protection of existing cultural heritage in Georgia.

75. According to the Law, State protection of cultural heritage is undertaken by the Ministry of Culture and Monuments Protection, Ministry of Justice of Georgia, local self-government bodies, as well as other State Institutions, Public and Legal Persons of Private Law. It is worth to be mentioned that the State and local self-government bodies exercise their authorities in the sphere of protection of cultural heritage in accordance to the Constitutional Agreement between the State and the Orthodox Church of Georgia. The Ministry of Culture and Monuments Protection of Georgia provides general coordination and manages the activities undertaken in this sector.

76. In respect with the ownership rights, the Law identifies some differentiations. Namely, the alienation of the State-owned land parcel - located within the zone of State-owned monument, considered as cultural value, or located within archeologically protected area - with the right to possess and use the Law considers the agreement with the Ministry of Culture, Monuments Protection and Sports with the terms and conditions of protecting and care being identified ahead. On the other hand, the Law directly restricts alienation of the monuments under private

35 ownership that can only be alienated under the right to possess, and use and with the terms and conditions to care-and protect.

77. Law of Georgia on Notary. The stated law defines the types of notary activities and rules of their implementation. The law also defines which institutions and authorized persons, except the Notaries, have the right to conduct notarial activities within the territory of Georgia and beyond it. According to the Article 42 of the Law, the local self-governments have the right to implement notarial activities related to inheritance, verification of accuracy of the copy with the original document, proving the fact that a citizen is alive, proving the fact of a citizen’s certain location. Rural population often applies to local self-governments to obtain certain notarial services. Especially, when it is required to identify a person and a document, or the notarial services are required to replace the deceased head of the household with another member. This rule is often utilized in registration of the land parcels, when as the owner of the land parcel the other member of the household is registered in place of the deceased member. The representatives of the Consulates of Georgia (consuls) also other key persons at the Consulates are eligible to conduct notarial activities on behalf of the State of Georgia beyond the territory of the country (Article 43). Citizens being abroad may apply to the Consulate of Georgia in the county of their location.

78. Law of Georgia on State Property. This Law regulates issues connected to the Georgian state property management and usage transfer. This law does not apply to state property that includes useful materials that were left after reconstruction, repair or demolition of transferred in ownership property owned by the Georgian autonomous republics and local self- government and public legal persons. The law covers property which cannot be sold, including: water resources, territorial waters, continental shelf, state forest fund (except populated areas located in forests), air space, State Reserves, National Parks, Natural Monuments, recreation areas identified by the Government of Georgia and/or identified specific construction areas; objects of historical, cultural and artistic value, cultural and art facilities, as well as lands on which these objects are located, pasture (except for leased pastures until July 30, 2005), cattle trails, first section of sanitary protection zone of water supply units (maximum-security zone). The law of state property establishes rules of transferring ownership of state property and privatization. It also determines the competences of state authorities and local self-government in the privatization process.

79. Law of Georgia on Ownership Rights to Agricultural Land. The current law is completely different from the initial version adopted in 1996. The changes made to this law in different times (among them the amendments on the basis of the Law #389 dated July 14, 2000) have significantly changed its initial format and simplified to extent possible the procedures considered under the Law. The sphere of regulation of the Law mainly extends over the agricultural lands. Article 3.1. Defines that "a land parcel with or without household structure that is registered at the public register and used for cattle-breeding and plant cultivation is considered as an agricultural land parcel" with existing household and additional structures or without them. The law also refers to the share of a member of household community within the shared hay fields, grazing lands or forestry areas and the part of the agricultural land that may be the object "of separate ownership right" (Article 3.2).

80. The Law determines that the ownership right to agricultural land is granted to the State, physical person, household community (Komli) and legal entity registered in accordance to the legislation of Georgia, which carries out its activities in agricultural sphere. Besides, the Law declares the form of village and household community (Komli) ownership to state-owned grazing lands, private and form of community ownership in high mountain regions (Article 4.3).

81. According to the Articles 6 and 8, acquisition of agricultural land is allowed on the basis of ordinary rules and general restrictions. Ordinary rule considers land alienation without any permits and other limitations, and general restrictions consider land alienation only on the basis of the consent of co-owner of shared property.

36

82. Law of Georgia on Legalization of Property mainly refers to the lands, which are in private ownership, but are not registered in public register. The main purpose of this law is to additionally establish guaranties of defending private rights (article 21 of the Constitution, which presumes rights of private ownership) and develop international agreements. According to the article 2, State agencies and officials are obliged to ensure the protection of private property rights and immunity. According to the law, property legalization means the confirmation of ownership on property, which only can be dispossessed in cases determined in the Article 21.

83. The Law on Legalization of Property applies to any property owned by the state or by the local government. This applies to properties for which ownership was purchased or the reason of purchasing the property appeared from legal act or deal before 22 July 2007. All the state agencies and officials are prohibited to purchase the property under the jurisdiction of the law or to control, to study, to observe in any other forms. Registration fee for the administrative boundaries of the city for one square meter of land is 15 GEL.

84. Property is legalized by the National Agency of Public Register under the control of Ministry of Justice. The procedures related to the legalization are regulated by the Law on Public Register.

85. Law of Georgia on Public Register regulates rights and obligations of National Agency of Public Register under the control of Ministry of Justice, in the process of property registration, also sets rules for registration of real and personal property. Article 11 defines which types of rights are registered in real estate register. According to this article real estate rights register records property, structure, usufruct, servitude, mortgage, rent, leasing, subleasing, borrowing, rights provided for use by the public law. According to the Article 16, movable property and Intangible Benefit of Property is registered in public register. According to this article, movable property and Intangible Benefit of Property registers pledge (excluding financial pledge), leasing, bank guarantee. Public register law also sets out the procedures and conditions for the registration of companies.

86. Public register law is not limited only to the rules of registration, its regulation area involves land registration and changes in land use, for example, changing the status of agricultural land to non-agricultural land.

87. Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal Entities. The main purpose of this law is to support land market development and mastering lands owned by government. This law defines the legal ownership and main terms and conditions about recognition of ownership rights on illegally occupied lands. It also defines rights of involved state agencies in this process.

88. The law applies to illegally occupied agricultural or non-agricultural lands owned by private and legal entities. Article 2 establishes the lands on which property rights can be recognized. In particular, it can be a piece of land on which the house or other building is located. Recognition of private property by the law takes place after paying a fee, but it also can be free of charge.

89. Lands are recognized free of charge only when they were held legally, but they were not recognized by the government in the past, in other cases recognition of land required fee. Ownership rights on payable or on non-payable lands are recognized by the commissions formed in municipalities.

90. Law of Georgia on Rules for Expropriation of Ownership for Necessary Public Need. Existing laws provide that compensation for lost assets, including land, structures, trees and standing crops, should be at current market price without depreciation. They also identify types of damages eligible to compensation and indicate that both loss of physical assets and

37 loss of income should be compensated. Income loss due to loss of harvest and business closure should be compensated to cover net loss.

91. Land acquisition for public interest may include eminent domain procedures, through a two-phase process as follows:  Phase 1: A negotiated settlement is sought in a first phase, based on a first compensation proposal at market/replacement value.  Phase 2: If no agreement is reached, land acquisition is further pursued through a judicial expropriation process (the implementing agency applies to Court to order expropriation and to fix compensation).

92. The Minister of Economy and Sustainable Development issues expropriation applications for each property where no agreement could be reached, based on dossiers filed by the implementing agency. On this basis, the implementing agency applies to Court, which, in a first stage, validates whether the application is justified by public interest and whether the appropriate procedures have been followed. Following this ruling validating the fact that eminent domain proceedings (expropriation) can be followed, the Court in a second stage appoints an expert to assess the compensation amount.

93. In the case of this project, eminent domain is applicable and expropriation will be sought where no amicable agreement is reached.

94. Civil Procedural Code of Georgia. The general courts of Georgia consider the cases according to the rules identified under the Procedural Civil Code of Georgia. The requirements of the procedural law are exercised during the lawsuit, during implementation of separate procedural actions or execution of the court decision.

95. The Procedural Civil Code of Georgia also regulates those cases when determination of the defendant is impossible. This may be important for the Project in the cases when the landowner is not found and correspondingly ownership to his/her land parcel cannot be obtained in legally valid manner, i.e. it is impossible to enter corresponding agreement with the landowner or him/her cannot sign other type of document.

96. The above listed laws and regulations give the possibility of applying the following two mechanisms for legal application of the property rights:  Obtaining the road right of way without expropriation through the payment of due compensation (on the basis of negotiations or a court decision) prior to commencement of the activities;  Obtaining the necessary right of way through paying due compensation based on the court decision.

97. If applied adequately the above listed mechanisms can ensure the appropriate consideration of lawful interests of all parties and the due observation of the existing legislations.

98. Law of Georgia on Social Assistance. The law regulates issues connected with the receiving of the Social welfare, determines types of the social support. It also defines the authority of administrative bodies in the field of social aid (Article 1). The law applies to the vulnerable persons permanently legally residing in Georgia. Article 2 sets list of socially unprotected people: persons in need of special care, poor families and the homeless.

99. Article 4 defines terms, which explains nature of social aid and identifies persons who should receive this aid. According to this article social support can be provided in form of monetary or non-monetary benefit for persons in need of special care, poor families and the homeless. Poor families consist of persons or groups of people whose socio-economical status is lower than minimum level set by Georgian government. A homeless person does not have a permanent place of residence, and he/she is registered with the local authority as homeless. 38 Persons in need of special care include orphans and children deprived of parental care, persons with disabilities, adults with disabilities are who are deprived of family care, persons with lost breadwinner. According to the law a disabled person is a person who has been granted such status by the Law on Medical-social Expertise. Social security financing sources include Georgian state budget, budgets of Units of local self-government, the money paid by the beneficiary or his/her representatives, and contributions (Article 24).

100. Law of Georgia on Social Protection of Persons With Limited Abilities. According to Article 1 legal status of persons with limited abilities In Georgia is regulated by Declaration of the United Nations about "Rights of Persons With Limited Abilities from 9 December 1975, Constitution of Georgia and this law. The person With Limited Abilities is person of strong physical, mental, intellectual or sensory impairment, which may interfere with the interaction of a variety of obstacles to the full and effective participation in public life on equal terms with others (Article 2). According to the Article 8 it is not allowed of the design localities, educational, cultural and sports facilities, as well as infrastructure construction and reconstruction of buildings and structures, if these objects are not suitable for people with disabilities and needs.

101. Government provides the necessary conditions for education and professional training for persons with limited abilities. Persons with limited abilities are socially supported by funds, pension, social assistance technical and other facilities (Article 24). Social security pensions and allowances are regulated by Georgian legislation on security pensions and allowances for persons with limited abilities.

102. Law of Georgia on Internally Displaced Persons from Occupied Territories – Refugees. According to the Article 2, the status of refugees is given to people who are citizens of Georgia or noncitizens without citizenship status of Georgia, who were forced to leave their permanent place of residence due to occupation, armed conflict, communal violence and / or mass violations of human rights which became threat for person or person’s family members lives or freedom by the other country. Any kind of discrimination of refugees is inadmissible. Refugee status is granted by the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees (Article 8). According to the Article 14 refugees are not being evicted from their legal owned residential areas except the cases considered by the law when: (a) written document is formed with refugee about financial or non-financial compensation in accordance with his/her land area; (b) Refugee will be given relevant living area, which does not worsen his/her living conditions; (c) Natural or other disaster takes place, which will be compensated and is regulated by the general rule.

103. All refugees have their family unity respect right. Uniting or dividing refugee families without their will is inadmissible (Article 13). Refugee settlement, registration, and other social issues are organized by the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees (Article 19).

104. Conditions for Expropriation and Legalization

The above-listed laws and regulations give the possibility of applying the following three mechanisms for legal application of the property rights:

(i) Obtaining the road right of way without expropriation through the payment of due compensation prior to commencement of the activities; (ii) Expropriation which gives the possibility of obtaining permanent right to land and/or necessary road on the basis of Eminent Domain Law or a court decision through the payment of due compensation; (iii) Expropriation of private properties for urgent public necessity, which gives the possibility of obtaining permanent rights on land and/or necessary road for the purpose of national security or accident prevention. Expropriation is to be made on the basis of the

39 Presidential Decree on Expropriation through the payment of due compensation to affected people.

105. Expropriation. Land acquisition through expropriation entails lengthy procedures, which are often resisted. Such an approach will thus be pursued only in extreme cases if there is no agreement between APs and MDFG. In these cases the Project will not occupy the needed plots until: (i) the proper judicial process as defined by the law is initiated; (ii) a court injunction is obtained and communicated to the APs; and (iii) the compensation/rehabilitation amounts are deposited in an escrow account.

106. Using the Mechanism of Necessary Road means the right to demand necessary road by court in specific cases when owners location is unknown or/and person can’t be located, or there are some liabilities which interrupts land acquisition process.

107. According to the Article 180 of Civil Code, if land is not necessary needed for proper use of public roads, electricity, oil, gas and water supply networks, than the owner has right to demand from neighbour that he/she was the one whose land will be used for these necessary connections. Those neighbours on whose lands are necessary roads or wiring should be compensated. There is a certain mechanism set by the Georgian civil trial code about how the public message can be delivered to respondent whose location is unknown.

108. According to the Article 78 of Procedural Code in this case the message will be published publicly. After 7 days following its publication, the court notice will be considered as delivered. After making this information public, the trial has legal right to review this case and make a decision. In case of using the necessary road mechanism, compensation will be transferred to an escrow account. Compensation will be transferred to the owner of land once his/her location will be identified or after the person will do all the obligations connected to the land transaction.

4.2 Involuntary Resettlement requirements under the ADB's SPS (2009)8

109. The ADB Policy on Involuntary Resettlement is based on the following principles: a. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. b. Carry out meaningful consultations with APs, host communities, and concerned nongovernment organizations. Inform all APs of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and indigenous peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of APs and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. c. Improve, or at least restore, the livelihoods of all APs through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets

8 ADB. Safeguard Policy Statement, 2009, Manila. 40 that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. d. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. e. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. f. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. g. Ensure that APs without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. h. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. i. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to APs and other stakeholders. j. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. k. Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. l. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.3 Comparison of Georgia Laws and Regulations with ADB's SPS

110. Overall, the legislation of Georgia is generally compatible with the major provisions of the ADB SPS (2009) but a few gaps are to be noted. The most significant of these differences are (1) that under Georgian legislation/regulation, only formal property owners are eligible to compensation, while the SPS (2009) provides that both formally owned affected assets and those that are held under no legal title should be compensated, and (2) that the SPS puts emphasis on the general rehabilitation of the livelihood of Affected People (AP) and Households (AH), which is not addressed in Georgian legislation. Also, Georgian law does not include a formal and comprehensive process of consultation with affected people, nor does it require the preparation, submission and disclosure of resettlement planning documents.

111. The ADB safeguards policy on Involuntary Resettlement complements the Georgian legislation/regulation with additional requirements related to (i) the economic rehabilitation of all AP/AF (including those who do not have legal/formal rights on assets acquired by a project); (ii)

41 the provision of indemnities for loss of business and income, (iii) and the provision of special allowances covering AP/AH expenses during the resettlement process or covering the special needs of severely affected or vulnerable AP/AH. Key differences between Georgia law/regulation and ADB policy are outlined in the table 16 below.

Table 16. Comparison of Georgia Laws/Regulations on LAR and ADB Resettlement Policy

Georgia Laws and Regulations ADB SPS (2009) Land compensation only for titled Lack of title should not be a bar to landowners. In practice legalizable land compensation and/or rehabilitation. Non-titled owners are also compensated after they landowners receive rehabilitation. are issued with the necessary papers. Only registered houses/buildings are All affected houses/buildings are compensated compensated for damages/demolition for buildings damages/demolition caused by a caused by a project. project. Crop losses compensation provided only Crop losses compensation provided to all to registered landowners. relevant APs including landowners, sharecrop/lease tenants and land cultivators without title whether registered or not. Decisions regarding LAR are discussed Information on quantification, affected items only between the landowners and the Land value assets, entitlements, and Acquisition Authorities. compensation/financial assistance amounts are to be disclosed to the APs prior to appraisal. No provision for income/livelihood ADB policy requires rehabilitation for rehabilitation, allowances for severely income/livelihood, severe losses, and for affected or vulnerable APs, or resettlement expenses incurred by the APs during the expenses. relocation process. No specific plan for public consultation is Public consultation and participation is the provided under the Georgian laws. integral part of ADB’s policy which is a continuous process at conception, preparation, implementation and finally at post implementation period.

112. To bridge any gaps between Georgia laws/regulations and ADB's SPS (2009), MDFG has drafted an overarching LAR Framework for the whole MDFG project, which was endorsed by the Government, and is a tool for ensuring compensation at replacement cost of all items, the rehabilitation of informal settlers, and the provision of subsidies or allowances for AFs that may be relocated, suffer business losses, or may be severely affected. This LARP is prepared in compliance with the previously submitted and officially endorsed LARF.

4.4 LARF Principles and Entitlements Applicable for the Project

113. Based on Georgian laws on land acquisition and the Safeguards Policy Statement (2009), the core principles applicable to LAR induced by the Project are as follows:

 Affected People will be assisted in improving or at least restoring their pre-project standards of living;

42  Information and consultation will be carried out to fully inform Affected Households about the LAR process and allow them to provide inputs to LAR planning;  The final LARP will be disclosed to the public and a summary information pamphlet in Georgian will be disseminated to all AHs;  A grievance redress mechanism will be established;  Formally held properties will be compensated at replacement value per Georgian law and the SPS;  Unregistered APs will be supported to register their properties where this is permissible under Georgian law;  Non-viable remainders of land may be compensated in full subject to a request to this effect being lodged to the Implementation Agency and to review of this request;  Physically displaced, vulnerable and severely affected AHs will be provided specific assistance according to principles in the LARF to secure alternative dwelling;  Compensation entitlements will be provided to AHs before the occurrence of impacts (prior to commencement of construction activities);  The execution and the achievement of the livelihood restoration objectives of the LARP will be monitored and divulgated.

4.5 Policy Framework and Entitlements

4.5.1 Entitlements to Compensation

114. AHs entitled for compensation or at least rehabilitation provisions under the Project are:  All AHs losing land either covered by legal title, legalizable, or without registered ownership status;  Tenants, whether registered or not;  Owners of buildings, crops, plants, or other objects attached to the land; and  AHs losing business, income, and salaries.

115. Compensation eligibility is limited by a cut-off date (24 July 2013). AHs who settle in the affected areas after the cut-off date are not eligible for compensation. If such situations occur, interested individuals will be given reasonable advance notice, requested to vacate premises and dismantle affected structures prior to Project implementation. Their dismantled structures materials will not be confiscated and they will not pay any fine or suffer any sanction.

116. Table 17 below provides the entitlement and compensation matrix applicable to the Project.

Table 17. Entitlement and compensation matrix

Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) Land Permanent loss of AH losing agricultural Owner with full Cash compensation at replacement agricultural land land regardless of registration cost. impact severity Legalizable Owner These AP will be supported by the IA to obtain legalization and provided with cash compensation at replacement cost.

43 Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) Informal settlers (APs One time self-relocation allowance in with no registration/valid cash. The relocation allowance is not documentation and non dependent on the number of AH legalizable) members or land characteristics and is a fixed amount per family equal to 1 year of minimum subsistence income9. Non-Agricultural Land AH losing their Owner with full Cash compensation at replacement commercial/ residential registration cost. land Legalizable Owner These APs will be legalized and provided with cash compensation at replacement cost. Renter/Leaseholder Rental allowances in cash equal to 3 months of leasing costs, according to leasing fees approved by the municipalities for leasing the land of such category. Informal settlers (APs One time self-relocation allowance in with no registration or cash. The relocation allowance is not valid documentation dependent on the amount of AH and not legalizable). members or land characteristics and constitutes fixed amount per family equal to 1 year at minimum subsistence income. Non-viable (“orphan”) Land that is affected Owner with full Subject to a request being lodged by land) partially but to such to registration or the land owner to MDFG, orphan land an extent that the legalizable owner may be compensated in full if the remainder is not usable (subject to legalization) review of the request indicates that the remainder cannot be used economically Buildings and Structures Residential and non All AHs regardless of Full impact: Cash compensation for loss residential their legal ownership/ of building/ structures at full structures/assets registration status replacement costs free of depreciation (including legalizable and transaction costs and Informal Settlers) Partial impact: compensation for repairs Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Public Community/Government Reconstruction of the lost structure in property resources Assets consultation with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops affected All APs regardless of Crop compensation in cash at market legal status (including rate at gross crop value of expected legalizable and informal harvest. settlers) Trees Trees affected All APs regardless of Cash compensation at market rate on legal status (including the basis of type, age and productive legalizable and informal value of the trees. In addition, trees will settlers) be cut by the construction contractor and made available to APs for timber

9 The minimum subsistence income is calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia (August 2014: 300 GEL x month). Source: http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng 44 Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) Business/Employment Business/employment All APs regardless of Owner: loss legal status (i). (permanent impact) cash indemnity of 1 year net income; and technical and administrative support from the RU to relocate the business in appropriate premises

(ii) (temporary impact) cash indemnity of net income for months of business stoppage. Income will be calculated based on tax declaration or in its absence on minimum subsistence income.

Permanent worker/employees: (i) indemnity for lost wages equal to 3 months of minimum subsistence income AND (ii) support to business owner to relocate the business as quickly as possible (see above) AND (iii) support from RU to enrolment into existing livelihood restoration programmes such as business training and micro-credit Allowances Severe Impacts >10% land impact All severely affected Agricultural income: additional crop Physically displaced AHs including informal compensation covering 1 year yield households settlers from affected land. Owners of businesses Other income: additional compensation that have to interrupt for 3 months of minimum subsistence activity permanently or income. temporarily Relocation/Shifting Transport/transition All AHs to be relocated Assistance to identification of a suitable costs replacement dwelling Provision of an allowance of 300 GEL covering transport expenses and livelihood expenses for a 3 months transitional period. Vulnerable People AHs below poverty line Allowance equivalent to 3 months of Allowances (poor and very poor), minimum subsistence income and households headed by employment priority in project-related women, disabled jobs people, IDPs IDPs living in Support to relocation Registered IDPs Assistance to the identification of municipal or other suitable municipal housing in housing cooperation with relevant authorities in charge of support to IDPs Other Losses

45 Type of Loss Application Definition of Affected Compensation Entitlements Persons (APs) Temporary impacts This applies to impacts All APs Design measures have been taken to during construction that are not of the eliminate all predictable temporary construction contractor’s impacts. If specific claims occur, they responsibility, such as, will be reviewed through the grievance for instance, temporary mechanism, procedures and rates in severance this LARP will apply, and any compensation that would be warranted would be paid from the contingencies budget. Damages during This applies to damage All APs Compensation for such damages during construction caused by a construction is a Contractor construction contractor responsibility. Compensation will be not complying with its assessed and paid per procedures and contractual obligations rates in this LARP. and normal good practice, such as for example, the unintentional destruction of a tree situated in an uncompensated property

4.5.2 Specifics for Certain Entitlements

117. Entitlement provisions for APs losing land, houses, and livelihood rehabilitation allowances include provisions for permanent or temporary land losses, buildings losses, crops and trees losses, a relocation subsidy, and a business losses allowance based on tax declarations and/or lump sums. These entitlements are detailed below:

 Land (Agricultural/Residential/Commercial land): o Legal settlers will be compensated at replacement rate either in cash at current market rates. o Renters/Leaseholders will receive a 3-month rent allowance. o Non-titled/non-legalizable land users will be compensated with a one-off self- relocation allowance in cash equal to 1 year of minimum subsistence income. This allowance is to be calculated based on a 5 people family and the monthly- updated benchmarks indicated by the National Statistics Office of Georgia at time of LARP approval (300 GEL as of August 2014).  Houses, buildings, and structures: compensation will be provided in cash at replacement cost based on cost of construction material, labor, transport of materials and specific features of the buildings free of deductions for depreciation, transaction costs or salvaged materials. APs are entitled to this provision irrespective of the registration status of the affected item.  Trees: cash compensation at replacement rate based on type, age and productivity of trees.  Business losses: (a) permanent: cash compensation equal to a 1-year income based on tax declaration or, if this is unavailable, based on the official minimum subsistence income at the time of impact (300 GEL x 12 = 3,600 GEL); (b) Temporary: cash compensation for the business interruption period based on tax declaration or, if unavailable, official minimum monthly subsistence income at the time of the end of the impacts survey (300 GEL x months of interruption). In addition, business owners who are permanently affected will be supported by MDFG to identify and secure new premises.  Affected business workers/employees: Indemnity for lost wages for the period of business interruption up to a maximum of 3 months. The allowance is based on the minimum monthly subsistence income x a 5 people family in August 2014 (300 GEL). In 46 addition, employees who are permanently affected will be supported by MDFG to enrol into existing small business establishment programs and/or micro-credit schemes, or into training programs to enhance their employability.  Relocation allowance: APs forced to relocate will receive a relocation subsidy sufficient to cover transport costs (a lump-sum of 300GEL) and living expenses for 3 months. The living expenses allowance is based on 3 months of the monthly minimum subsistence income x a 5 people family of 5 people in August 2014 (300 GEL x 3 = 900 GEL).  Vulnerable AP Allowance: Vulnerable AP (AHs below poverty line or women headed AHs will receive) will receive an allowance equal to 3 months of the monthly minimum subsistence income x a 5 people family in August 2014 (300 GEL x 3 = 900 GEL).  Severe Impacts Allowance: APs losing >10% of agricultural land or >10% of non- agricultural income, including business owners, and physically displaced people will receive will an allowance equal to 3 months of the monthly minimum subsistence income x a 5 people family in August 2014 (300 GEL x 3 = 900 GEL).

118. Right of Eminent Domain and Expropriation. Land acquisition for public projects in the country is sought through (i) amicable agreement between acquiring agency and affected party based on the market price defined by professional valuation agency. Only in case of disagreement the right of eminent domain will be triggered through a process of a compulsory expropriation which is based on the court decision. No expropriation case is expected for this LARP, as all APs have signed the preliminary agreement to the acquisition of property and appropriate compensation.

119. Legalization. APs who do not have proper registration or titles but are legitimate occupants of the plots they lose, will be legalized and registered in the land records. After this is done they will receive full compensation as the legal APs.

47 CHAPTER 5. CONSULTATIONS AND DISCLOSURE

5.1 Consultations

120. The preparation of the LARP included consultation and participation. The focus of these consultations was to ensure that APs and other stakeholders would be well informed of the Project and of the LAR process, and could participate in planning. Consultation tasks started after a first alignment was available in end June 2013, and were undertaken in parallel and concurrently with the surveys in July 2013.

121. The consultation process included two key activities:  Face to face interaction with APs during the surveys, where the Project and its LAR impacts were explained in one to one meetings to all APs, taking the opportunity of the survey and valuation exercise in July 2013; and  Formal information and consultation meetings carried out concurrently with the survey process.

122. A leaflet was developed in Georgian language to support the information and consultation process (English translation of the information leaflet used during the consultation process is also presented in Annex B).

123. Table 18 summarises the meetings held. The total number of participants comprises about 100 individuals. In addition:  A large number of residents approached the survey team informally in the street while the surveys were being carried out,  All affected households were interviewed and such face-to-face interaction allowed direct information to each and every head of household in the area.

Table 18. Meetings Held

N° Date Location Type of stakeholder Number of participants 1 08 July 13 Ponichala Local residents 9 2 09 July 13 Ponichala Local residents 9 3 10 July 13 Ponichala Local residents 15 4 12 July 13 Ponichala Local residents 13 5 13 July 13 Ponichala Local residents About 20 – no list of attendance signed as the meeting was antagonistic 6 18 July 13 MDFG office in Tbilisi Business owners and 30 operators 7 17 August 13 MDFG office in Tbilisi All affected individuals 30

124. Table 19 summarises main issues raised by participants in the meetings with local residents and the answers that were then given by the team. More details, including the detailed records of the meetings held, photographs, and signed lists of attendants can be found in Annex C.

48 Table 19. Main Issues Raised in Consultation Meetings and Associated Answers – Local Residents

N° Issue Raised Number of Comment or response times issue raised 1 Timing of the construction and 4 Construction is scheduled to start compensation in the first quarter of 2014. Compensation will take place in the second half of 2013. 2 What are the compensation rates for 5 This is being researched at the trees, land, buildings moment based on past transactions and current market prices 3 What happens if the plot is only partly 3 This is subject to a case by case affected? Can we keep the remainder? review 4 We currently live in an individual house 4 You will be paid compensation and do not want to be relocated to an sufficient to replace your current apartment block property by an equivalent one 5 What happens if we refuse to sell the 4 Expropriation would then be property at the proposed price triggered and the process would be handled by the competent district court 6 Is the alignment you just presented final 2 It is almost final. Minor changes or will it change? can be considered by the general alignment is now fixed 7 How can we legalize our right to the 1 There is a process to do this. If affected property if we hold only a your property is in this case, the Chevarnadze passport? project will help you obtain the required documentation from the National Agency of the Public Registry 8 What if the registered owner is 1 You must register the new rightful deceased? owner. You will be supported to do this. 9 I have timber on the affected plot. Will it 1 If the timber is not moveable it will be considered when the property is be included in the compensation. valued? This will not be the case if you can move it elsewhere 10 We demand that the situation of our five About 20 Your issue is not one that our storey apartment building be addressed residents of project can address as your by the Government. It is in "accident said apartment building is not affected by the situation” and we demand to be block project. It is not in your immediate relocated at the Government’s expense. interest to take this position We are not letting you measure and value our garages as long as this issue is not addressed

125. Table 20 summarises main issues raised by participants in the meetings with business owners and operators and the answers that were then given by the team. More details can be found in Annex C.

49 Table 20. Main Issues Raised in Consultation Meetings and Associated Answers – Businesses

N° Issue Raised Comment or response 1 What happens if we refuse the compensation Expropriation is triggered per Georgian proposal legislation 2 Market prices are currently low. How can we Compensation is paid on replacement value be sure that compensation is going to be evaluated by reputable professional auditors adequate? with lots of experience 3 In our case the restaurant of our hotel is This is subject to a case by case review. You affected, but the hotel itself is not affected. The have to demonstrate the losses impacts to the restaurant will have negative consequences for the hotel. How are these indirect losses taken into consideration? 4 What is the construction date? What is the Respectively first quarter 2014 and second half compensation date 2013 5 We are a network of many filling stations. Only If we cannot base our assessment on the one is affected but our accounting records are records you file to the tax inspection, we’ll have not specific to each station but established in a to make a reasonable joint assessment and consolidated manner. How will you establish mutually agree on it the business losses for this particular filling station? 6 Are we going to pay taxes on compensation? No, taxes will either be exempted or they will be added to the compensation amounts 7 I am at the same time a shareholder and an As an employee you will be eligible to employee employee of the company compensation 8 How is compensation shared between Per the shareholder agreement. You have to shareholders present it to us 9 We have made investments at the launch of This is subject to a case by case review. You the business. How are these going to be taken have to submit evidence of these expenses and into consideration to demonstrate that they cannot be recovered

5.2 Disclosure

126. Information brochures on the Project, as well as information on ADB resettlement requirements was provided to participants of the public consultations and meetings. Information brochure was provided and consultations were carried out during socio-economic survey and census team while interviewing APs to ensure that they are aware of proposed project and land acquisition and resettlement approached of ADB. The copy of Information brochure is provided in the Annex B.

127. The draft LARP document for whole Section 2 was developed and posted to the MDFG web-site in April 2014. The final LARP document for Section 2 Part A will be available in English and Georgian languages and disclosed on the websites of the MDFG and ADB upon approval by both ADB and the Government of Georgia.

5.3 Public Engagement During LARP Implementation

128. Public engagement during the implementation of this LARP will involve the following tasks:  Grievance management and redress, per the provisions detailed further in the Chapter 6 of this LARP, including the establishment of a Grievance Redress Committee as of commencement of negotiations with APs and for the whole duration of the Project, including most prominently the construction phase; 50  On-going information to APs on compensation rules, entitlements, compensation and payment process;  On-going consultation on any issues that may arise from affected people and/or other stakeholders (central and municipal authorities, civil society organisations, others);  Provision of support in legalization of unregistered plots, including support to absentee landowners (deceased, other succession situations, establishment of Powers of Attorney, etc.);  Provision of support for relocation for physically displaced people;  Provision of support to vulnerable and severely affected people.

129. As mentioned in Chapter 8, MDFG will establish a Resettlement Unit for the whole duration of this Project. One individual within the Resettlement Unit will be allocated the responsibility of public engagement and grievance management.

51 CHAPTER 6. GRIEVANCE REDRESS PROCEDURE

130. Grievance redress procedure for the project aims to provide an effective and systematic mechanism in responding to queries, feedbacks and complaints from affected persons (AP), other key stakeholders and the general public. APs will be fully informed of their rights and of the procedures for addressing the complaints whether verbally or in writing during consultation, survey, and time of compensation.

131. Efforts will be made to prevent and amicably resolve grievances rather than going through a legal redress process. This can be achieved through careful LAR design and implementation, ensuring full participation and consultation with the project affected persons, and establishing extensive communication and coordination between affected communities, EA, and relevant local governments (including Tbilisi municipality, Krtsanisi rayon municipality (gamgeoba), Rustavi municipality and Gardabani rayon municipality (gamgeoba), as necessary).

6.1 Grievance Redress Process

132. Persons or entities affected by the project have the right to file complaints and/or queries on any aspect of land acquisition compensation, and resettlement. In order to ensure that grievances and complaints are addressed in a timely and satisfactory manner and that all possible avenues are available to APs to air their grievances, the following mechanism for grievances will be set up:  First, complaints resolution will be attempted informally at the community level with the involvement of community authorities and support from NGO and/or informal mediators. At these levels Grievance Focal Points to deal with project related grievance cases will be nominated. If the issue cannot be resolved within two weeks, it will be passed to the MDFG for review and resolution.  Second, complaints resolution will be attempted at the level of MDFG. At this level Grievance Focal Point to deal with project related grievance cases will be nominated. If the issue cannot be resolved within two weeks, it will be referred to court for resolution.  If after the MDFG intervention no solution has been reached and if the grievance redress system fails to satisfy the APs, they can pursue further action by submitting their case to the appropriate court of law). Nevertheless, abovementioned grievance mechanism does not limit the citizen’s right to submit the case to the court of law just in the first stage of grievance process.

6.2 Logging and Review of Grievances

Avenues Available to Lodge a Grievance and Grievance Focal Points 133. Grievances can be lodged: At the MDFG office in Tbilisi; At Municipal offices in Tbilisi and Krstanisi rayon municipality (gamgeoba).

134. Grievance Focal Points will be designated at these levels to receive, help to resolve, report or forward complaints received from APs and the general public. The following are the Grievance Focal Points designated for the Tbilisi-Rustavi Urban Link Project:

a. David Tabidze Head of Unit on Environment and Resettlment MDFG Contact details. Address: 151 Aghmashenebeli ave., Tbilisi. Georgia Phone number: (+995 32) 2437001/02/03

b. Vazha Mania 52 Head of Legal Unit Municipality of Gardabani Contact details. Address: Gardabani Municipality Phone number: (+995) 595 821100

c. Irakli Gegeshidze Chief Specialist on Real Estate Management Municipality of Rustavi Contact details. Address: Rustavi Municipality Phone number: (+995) 591 013441

d. Avto Sudadze Head of City Service on Improvements Tbilisi City Hall Contact details. Address: Tbilisi City Hall Phone number: (+995) 591 908844

Grievance Logging and Review 135. APs or other concerned individuals may visit, call or send a letter, fax or e-mail to any of the Grievance Focal Points to register their comments or complaints related to land acquisition or other aspects of the project. A grievance register will be maintained at each of the locations above to record grievances and keep track of their status. Grievances will be logged into an electronic register (MS Excel or similar) by the Secretary of GRC in MDFG. Each grievance will be assigned to the designated staff within the Resettlement Unit for resolution. Acknowledgement of grievance registration will be provided to complaining party within maximum 7 calendar days following the receipt of the grievance. Review of the grievance will typically involve the verification of the compensation dossier, survey and valuation forms, and possibly site visit and interview of the complainant and other interested parties, such as neighbours or other people involved in the grievance.

136. A resolution proposal will be drafted and communicated formally to the complainant, with a signed acknowledgement of receipt. If the resolution is satisfactory to the complainant and other aggrieved or interested parties, the minutes of agreement will be drafted for signature by all interested parties. If the resolution is not satisfactory to the complainant and other aggrieved or interested parties, the proposed resolution letter will include information on the possibility to resort to the next tier of grievance resolution process.

Grievance Redress Committee 137. To facilitate resolution of the complaints at each level, the GRC will be established for Tbilisi-Rustavi Urban Link. The Secretary of GRC will be appointed at MDFG. The grievance will be discussed by GRC with the involvement of GRC members and in presence of other relevant parties (e.g. complaining party, etc.) within two weeks following the registration of the grievance. Two days after the hearing, the AP will be informed on whether the case is to be dismissed or whether recommendation has been made to MDFG for settling the case. The GRC shall comprise of the following members:  One representative of MDFG (secretary of the Committee, preferably with a legal background);  One representative of interested municipal offices of Tbilisi (Krtsanisi), Rustavi and Gardabani (representative of the municipal office in the administrative area of which the grievance case is located will be invited to the GRC hearing);  Three representatives of affected persons (with a reasonable gender representation) from each affected community (preferably a well-regarded individual in each community, such as a doctor or teacher living in the community, a well-regarded business person, a representative of a local civil society, or a representative of religious authorities);

53  One representative of non-governmental organization (NGO) or local (rayon level) society, if available.

138. MDFG will ensure that the GRC members obtain some initial training to understand the basics of the LARP(s), relevant Georgian legislation and ADB Safeguard Policy Statement. This will ensure efficient work of the GRC representatives and functionality of proposed grievance redress mechanism.

139. The GRC will consider grievance cases once every month as a minimum and more frequently, if warranted by the number of grievances received. The GRC will make recommendations to MDFG for a positive resolution of the grievance, but these recommendations will not necessarily be binding to MDFG.

Non-viable Land Claims 140. Non-viable (“orphan”) land will undergo the normal grievance process. Land owners will be specifically informed that they can lodge a non-viable land claim if their land is partially affected and partially acquired for the Project. Claims will be lodged and reviewed as any other grievances. The review of non-viable land claims will involve the following: Size of the remainder; What can the remainder be used for by the current owner (agriculture, including garden, building, commercial, other); Can it be sold on the normal land market in its current condition? Assessment of access (may restriction of vehicular or pedestrian access cause the plot to become economically non-viable given its potential purpose?); Assessment of access (may restriction of access cause the plot to become economically non- viable?).

141. Based on the results of this assessment, a resolution (either positive – land should be deemed non-viable and compensated, or negative – land is not to be purchased) will be proposed by MDFG to the landowner.

142. In case of disagreement between the landowner and MDFG, the non-viable land claim could be escalated to the GRC as per the procedure outlined above.

Last Resort: Judiciary 143. Every juridical person or/and private person can resort to the judiciary, and complainants aggrieved by the LAR process can exert this right at any point in the LAR process. In addition, if the resolution proposed by the GRC is unacceptable to the MDFG or the complainant, one or the other party can resort to the judiciary (rayon and/or city court).

6.3 Reporting on Grievances

144. Every quarterly report will include a detailed situation of grievances. Specifically the following will be reported upon:  Number of grievances registered in the grievance management system during the reporting period;  Number of grievances resolved internally during the reporting period and timeline for their resolution;  Number of grievances brought to the attention of GRC and timeline for their resolution;  Number of grievances left outstanding at the end of the reporting period, with a categorisation of grievances by theme, comments pertaining to the most sensitive or difficult ones, number of court cases and resolution thereof.

54 CHAPTER 7. COMPENSATION, RELOCATION, AND INCOME RESTORATION

7.1 Compensation for privately-owned lands

145. Privately-owned lands shall be compensated in cash based on the current market value in the area. In the area where the affected privately-owned plots are situated, market values of land vary depending on the type of land and location. The calculation of compensation was carried out in accordance with the Entitlement and Compensation Matrix. The cost of land plots reflects fair market cost without taxes, depreciation and other expenses. Table 21 shows the estimates of preliminary valuation of the affected privately-owned lands and 2 plots with unknown ownership.

Table 21. Valuation of affected lands

Calculated Purpose of Number of Area acquired, Average Unit 2 2 compensation, land plot use plots in m Rate (per m ) in GEL Agricultural 118 75,467.0 65 4,920,123.0 Non-agricultural 76 109,842.0 71 7,818,770.0 Total 194 185,309.0 69 12,738,893.0

7.2 Compensation for trees and plants

146. Compensation to affected land users of residential and commercial lands also includes compensation for trees and perennial plants. Table 22 below shows the computation of compensation for 4820 trees and perennial plants (91 non-productive and 4729 productive) located on 108 land plots. Methodology for compensation calculation is provided in the Annex E. Table 24 shows the valuation of the affected trees and perennial plants.

Table 22. Estimated valuation of affected trees and perennial plants

Number of affected trees by age category Species age 15 and age 0 to 5 age 5 to 9 age 10 to 15 Total more Number Cost Number Cost Number Cost Number Cost Number Cost Non-productive trees and perennial plants Boxwood 10 500 0 0 0 0 0 0 10 500 Agave 1 50 0 0 0 0 0 0 1 50 Palm 17 1660 0 0 0 0 0 0 17 1660 Decorative trees 63 2170 0 0 0 0 0 0 63 2170 Sub-total 91 4380 0 0 0 0 0 0 91 4380 Productive trees and perennial plants Cherry 178 2670 149 8642 51 3540 16 2480 394 17332 Alycha 6 108 5 350 5 590 40 5110 56 6158 Peach 68 340 62 6655 1 140 4 560 135 7695 Sweat cherry 43 645 40 2320 30 3195 16 2352 129 8512 Pomegranate 99 990 231 16863 65 5892 1 110 396 23855 Laurel 4 40 3 330 1 88 0 0 8 458 Feijoa 2 20 0 0 0 0 0 0 2 20

55 Number of affected trees by age category Species age 15 and age 0 to 5 age 5 to 9 age 10 to 15 Total more Number Cost Number Cost Number Cost Number Cost Number Cost Apricot 12 120 10 1100 15 1650 32 3314 69 6184 Capers 7 245 0 0 0 0 0 0 7 245 Walnut 56 1960 27 2700 17 2300 101 37100 201 44060 Persimmon 17 255 63 4410 47 4340 164 22960 291 31965 Kiwi 6 144 7 406 0 0 0 0 13 550 Quince 10 50 33 3300 13 1900 8 1600 64 6850 Fig 54 810 119 8330 117 10920 19 2660 309 22720 Pear 16 80 22 1980 18 4140 23 6900 79 13100 Medlar 5 75 10 560 2 210 0 0 17 845 Almond 1 35 3 600 6 1400 2 600 12 2635 Plum 128 2304 65 4550 77 6050 17 2165 287 15069 Cherry laurel 5 50 1 110 0 0 0 0 6 160 Cornel 8 80 26 2860 1 110 0 0 35 3050 Mulberry 11 110 42 4620 26 2860 41 3848 120 11036 Hazelnut 18 180 57 2910 38 5320 0 0 113 8410 Prune 24 432 39 2730 49 4870 103 13120 215 21152 Zizyphus 0 0 3 330 0 0 0 0 3 330 Nectarine 13 65 0 0 0 0 0 0 13 65 Apples 84 420 82 8200 32 3200 22 4400 220 16220 Apricot 9 90 7 770 7 770 10 968 33 2598 Persimmon 2 30 10 700 5 420 0 0 17 1150 Medlar 3 30 3 330 0 0 0 0 6 360 Barberry 1 10 3 330 0 0 1 110 5 450 Current 100 1500 7 280 0 0 0 0 107 1780 Grapes (vineyard) 104 1560 261 6525 246 9900 239 17800 850 35785 Grapes (alley) 115 345 231 2310 0 0 0 0 346 2655 Black pepper 0 0 1 110 0 0 0 0 1 110 Raspberry 75 1125 0 0 0 0 0 0 75 1125 Strawberry 40 1600 0 0 0 0 0 0 40 1600 Cranberries 14 210 0 0 0 0 0 0 14 210 Blackcurrant 0 0 1 40 0 0 0 0 1 40 Gooseberry 40 600 0 0 0 0 0 0 40 600 Sub-total 1378 19328 1623 96251 869 73805 859 128157 4729 317139 Total 1469 23708 1623 96251 869 73805 859 128157 4820 321519

7.3 Compensation for Affected Structures

147. A total of 511 structures will be fully affected. These structures are owned and used by 118 households, 18 legal entities and 2 unknown ownres for various purposes. All the 47 residential structures (houses) will be completely affected and will need to be rebuilt in another location. In the meantime 64 commercial structures (petrol stations, car wash and 56 repair boxes, shops, restaurants, cafes and industrial structures) will also be permanently affected. In addition a total of 400 ancillary and support structures (including, warehouse, administrative building, barn, garage, cowshed, greenhouse, foundations and walls, paved areas, fences, trellis and gates, as well as advertisement stands, etc.) will be dismantled. The calculation sheet for structures is based on replacement values for all elements constitutive of the building. Annex F provides an example, which shows the typical sheet used for valuation of all structures. Based on a visual assessment of the structures, including minor engineering works, utility connections and structure-improvements, a licensed evaluation company estimated the total value of these structures at GEL 14,813,223.00. The estimated compensation reflects replacement rate calculated based on fair market price, without deduction for depreciation, taxes, transaction and other expenses, as well as salvagable materials. Table 23 shows the valuation of the affected structures.

Table 23. Preliminary valuation of affected Houses

Calculated Type of Number of Total Unit rate Use of Structure 2 2 compensation, Material Structures area (m ) (m ) GEL Petrol station Concrete 8 1,525.32 1544.17 2,355,356.00 Car wash and repair Concrete 26 304.17 338.74 103,034.00 House Concrete 47 6,179.5 598.25 3,696,866.00 Shop Concrete 8 369.93 586.01 216,781.00 Restaurant Concrete 2 824.22 916.85 755,687.00 Industrial structure Concrete 16 7,570.83 643.40 4,871,076.00 Cafe Concrete 4 258.04 605.83 156,329.00 Warehouse Concrete 4 313.83 223.77 70,225.00 Administrative structure Concrete 2 121.54 713.42 86,709.00 Toilet / bath Concrete 24 93.28 414.76 38,689.00 Ancillary (barn / shed) Concrete 74 3,339.99 186.59 623,210.00 Ancillary (barn / shed) Wood 3 132.58 67.20 8,910.00 Garage Concrete 3 101.10 306.56 30,993.00 Cowshed Concrete 2 14.77 133.92 1,978.00 Greenhouse Metal / Glass 1 228.08 37.00 8,438.00 Foundation of structure Concrete 2 683.00 5.94 4,057.00 Wooden walls / screens Tree 4 36.00 64.00 2,304.00 Paved area Concrete 27 3,281.80 84.74 278,087.00 Paved area Asphalt 16 10,818.00 59.86 647,564.00 Basin / Tank (open and Concrete 8 606.74 179.42 108,860.00 closed) Fence Concrete 64 5,293.02 84.52 447,351.00 Fence Metal 39 4,890.79 25.93 126,818.00 Fence Wood 9 361.60 25.16 9,097.00 Trellis Metal 23 2,578.00 12.12 31,238.00 Gates Metal 56 704.70 111.21 78,369.00 Gates Wood 1 32.00 200.00 6,400.00 Advertisement stand Metal 2 3.00 1395.67 4,187.00 Foundations for machinery Concrete 35 105.00 375.67 39,445.00 Gas supply system Metal 1 40.00 129.13 5,165.00 Total 511 50,810.83 291.53 14,813,223.00 57

7.4 Compensation for Business Losses

148. 32 businesses are affected by the Project, out of which 30 are fully impacted and 2 partially (without stopping their operation). For 30 permanently affected businesses, data on income provided by APs as part of census/survey was used during the preparation of the LARP. Compensation for business losses is estimated at GEL 1,998,684.00. See table 24 below.

Table 24. Computation of business income losses

Type of Business Number of Type of Monthly Number Total affected use income, of compensatio businesses (owned / in GEL months n leased) in GEL Petrol Station 8 Owned 126383 12 1,516,596.00 Petrol Station 1 Leased 10317 12 123,804.00 Canteen 5 Owned 2787 12 33,444.00 Canteen 3 Leased 4128 12 49,536.00 Shop 5 Owned 2335 12 28,020.00 Shop 1 Leased 150 12 1,800.00 Car maintenance 2 Owned 434 12 5,208.00 Industry 4 Owned 20000 12 240,000.00 Industry 1 Leased 23 12 276.00 Total 30 1,998,684.00

7.4.1 Compensation for lost jobs of workers of affected businesses

149. 30 businesses will be permanently affected due to Project activities. According the information provided by business owners all of the 198 employees will lose their jobs due to the Project activities. These workers are entitled to indemnity for lost wages equal to 3 months of minimum subsistence income, as well as support from MDFG to enrolment into existing livelihood restoration programmes such as business training and micro-credit. The compensation for affected workers comprises 178,200.00 GEL.

150. In the meantime two legal entities operating pharmaceutical and furniture production may face temporary disruption of their activities during construction works that will not imply employment losses.

7.5 Relocation and transition allowances

151. In total, the owners/users of 47 primary residential structures (i.e. house with ancillary structures) and 30 business related structures will need to relocate. These APs will be entitled to provision of an allowance covering transport expenses and livelihood expenses for a 3 months transitional period, as well as assistance in identification of a suitable replacement dwelling. See table 25.

Table 25. Relocation and transition allowances

Use of Structure Number of Allowance for Number of Transportation and Structures 1 month, in months transition allowance, in GEL GEL

58 Use of Structure Number of Allowance for Number of Transportation and Structures 1 month, in months transition allowance, in GEL GEL

Residential (house with 47 300 3 42,300.00 ancillary structures) Commercial 30 300 3 27,000.00

TOTAL 77 69,300.00

7.6 Allowance for vulnerable households

152. Efforts were made during the socio-economic survey to identify poor and vulnerable households. Data has need verified with the Social Service Agency of the Ministry of Labour, Health and Social Affairs of Georgia. Forty (40) households were identified as vulnerable during the socio-economic survey and further verification with appropriate state entities. These include households with income below subsistence minimum, households having a disabled member, households led by single women, and households of internally displaced persons. Vulnerable households are entitled to an allowance equivalent to 3 months of minimum subsistence income and employment priority in project-related jobs. Information on vulnerable households and calculation of compensation is presented in table 26 below.

Table 26. Allowance for vulnerable households

Amount of allowance Vulnerability Criteria Number of HH (minimum wage x 3 Total months)

Income below subsistence minimum 7 300 * 3 = 900 6,300.00 With disabled HH member 8 300 * 3 = 900 7,200.00 Women-led households (single women) 1 300 * 3 = 900 900.00 Internally Displaced Persons (refugee) 29 300 * 3 = 900 26,100.00 households 36,000.00 40 (without Total - double count) (excluding double compensation)

7.7 Severely affected households

153. A total of 94 privately owned land plots and 2 plots of unknown ownership are fully affected, while 74 privately owned land plots are affected by more than 10%. In addition, impact on the land plots owned by 4 households will be less than 10%, but will lose their primary residence or business, 12 households are residing on state owned land plots (not subject to legalization) and 6 households will lose business located on rented land plots. In total, number of severely affected households comprises 192. Severely affected households are entitled to an allowance equivalent to 3 months of minimum subsistence income, comprising 172,800.00 GEL.

59 CHAPTER 8. INSTITUTIONAL FRAMEWORK

8.1 Role of MDFG

154. The timely and effective implementation of the LARP will require the involvement of several agencies and units. MDFG will be tasked to the follow-up of resettlement activities. It should be noted, that despite MDFG has experience in LARP implementation to ADB standards, particularly Sections 1 and 3 of the Tbilisi Rustavi highway, which were implemented in 2012, however, the scale of displacement entailed by Section 2 is larger, and it also involves new tasks. Thus it is recommended that MDFG establish a dedicated Resettlement Unit.

155. Starting in October 2014, a Resettlement Unit (RU) shall be established comprising of the following professionals on a full time basis for the period of LARP implementation:  Resettlement Unit manager;  Resettlement specialist (implementation);  Public engagement specialist / grievance redress focal point;  Data manager / database specialist.

156. The establishment of the Resettlement Unit shall be sanctioned by an MDFG internal order under the signature of the MDFG Executive General, allocating responsibilities to designated individuals and based on the following job descriptions.

157. The key tasks of the Resettlement Unit are the followings:  Collaborate with Project related parties responsible for data collection and LARP preparation to ensure that all relevant data is available (including the list of APs based on the results of the survey and census, cadastral maps and land/property records, title verification details, property valuation details, establishment of compensation rates, etc.);  Maintain regular coordination and communication with relevant state agencies and partners;  Follow up and provide support to the GoG during drafting and adoption of the decree on land/property acquisition for project purposes;  Follow up and provide support during notification of APs on upcoming land/property acquisition;  Prepare documents for negotiation of compensation with the APs;  Prepare documents for formalizing agreements with APs and processing of compensation payments;  Conduct regular consultations and exchange of information with APs on the implementation of the LARP;  Submit the LARP to ADB for review/approval;  Disclose the LARP and the information leaflets;  Plan and manage LARP implementation and the distribution of compensation;  Acquisition of commercial land plots with significant commercial ventures (fuel stations, restaurants, etc.);  Acquisition of agricultural land plots and compensation of trees and perennial crops;  Legalization of informal owners;  Deal with absentee landowners and refusals (triggering expropriation);  Initiate expropriation cases and coordinate with the relevant state agencies;  Deal with vulnerable people and severely affected people;  Facilitate conduct of field surveys, and re-registration of the remaining portions of the APs land plots;  Coordinate with the appropriate state agencies to provide all needed documentation and ensure prompt allocation of LAR budgets to the APs;  Assist in receiving, recording, resolving and reporting of grievances related to land / property acquisition process and other issues related to the project and coordinate with Project related consultants and contractors;  Ensure proper internal monitoring;  Monitor/supervise the temporary land acquisitions done by contractors engaged for the 60 project;  Organize compliance audits and external monitoring per ADB requirements;  Prepare regular reports on the progress of LARP-related activities; and,  Monitor construction related changes to land acquisition, inform ADB on LAR related impacts and follow up with preparation of supplemental LARP(s), as required.

158. Given the complexity of the work in relation to the land acquisition and resettlement activities required for the Section 2 of the road in comparison with previous resettlement tasks administered and implemented by MDFG staff, it was recommended to establish a Resettlement Unit and carry out capacity building activities. Details on scope of work of Resettlement Unit members, available support and capacity building are provided further in this section.

8.1.1 Resettlement Unit (Job Description and Requirements)

159. The Resettlement Unit Manager is responsible for the execution of the LARP. His/her tasks include the following:  Liaison with Government and municipal authorities (establishment of joint negotiation commissions, expropriation issues, identification of resettlement housing, support to vulnerable people including IDPs, sensitive issues related to businesses and unaffected apartment blocks);  Overall coordination of the work of the Resettlement Unit, including conducting weekly coordination and task allocation meetings;  Internal coordination within MDFG with other units involved;  Coordination of negotiations and intervention in sensitive negotiations;  Oversight of the work of all specialists and consultants involved in the LARP finalisation and implementation;  Responsibility for compliance with the general implementation schedule;  Responsibility for establishment of, and liaison with the Grievance Redress Committee;  QA/QC of Georgian versions of documents intended for public consultation, particularly the Executive Summary of the LARP;  Liaison with contractors involved in design, procurement and construction, particularly during the construction phase and in the event of damages or grievances from the local population;  Liaison with LAR Consultants, ADB and quality control (from MDFG) of all documents communicated to ADB and other stakeholders.

160. The Resettlement Unit Manager is an experienced MDFG professional with 10 years of experience in project management or more, including experience in liaising with International Finance Institutions, and excellent communication skills. The Resettlement Unit Manager should have good command of the English language.

161. The tasks of the Resettlement Specialist responsible for LARP implementation include the following:  Coordination of resettlement, support to identification of alternative housing by APs, liaison with responsible authorities, and monitoring of actual relocation by APs;  Participation to negotiations;  Coordination of support to vulnerable people, including, but not limited to IDPs (identification of relocation solutions, liaison with responsible authorities, monitoring during relocation and thereafter);  Verification of data communicated by survey and valuation consultants before the establishment of compensation agreements;  Preparation and implementation of the livelihood restoration plan, as needed;  Collaboration with external consultants, provision of support and information to them, an needed;

61  Participation in internal coordination meetings, as needed;  Participation in engagement meetings and grievance redress committee meetings, as needed;  Preparation of quarterly monitoring reports;  Coordination of involvement and works of the IM, review of IM reports before their communication to ADB for potential factual inaccuracies;  Participation in liaison with ADB and Government stakeholders at the request of the Project Management and as needed.

162. The Resettlement Consultant is an experienced resettlement specialist with 10 years of experience or more, excellent social and communication skills, and fully conversant with ADB policy requirements and Georgian expropriation legislation. The Resettlement Consultant should preferably have a good command of the English language. The Public Engagement Specialist / Grievance Redress Focal Point coordinates public consultation, disclosure, and grievance management. His/her tasks include the following:  Organisation of public meetings and focus groups, including identification of venues, notices to participants, establishment of agenda, establishment of minutes and photographic records, signatures of lists of attendance;  Responsibility for disclosure and dissemination of all documents, particularly the LARP Executive Summary;  Negotiations of compensation with AHs;  Information to local authorities on Project and LAR policies;  Grievance management: o Logging of all grievances, o Organisation of the first tier of grievance review (internal), including allocation of the grievance to a designated individual for review, o Engagement with aggrieved individuals, o Ensuring that grievances are acknowledged receipt of and responded to within the appropriate period of time, o Feedback to aggrieved people (in writing and through direct engagement) on the results of the internal grievance review; o Establishment of the Grievance Review Committee, o Organisation and documentation of GRC hearings (establishment of protocols), o Establishment of quarterly grievance statistics for monitoring reports.

163. The Public Engagement Specialist / Grievance Redress Focal Point is an experienced specialist with 10 years of experience or more in similar assignments, and excellent social and communication skills. He/she should be fluent in Georgian, while knowledge of Russian and English language would be an asset.

164. The Data Manager / Database Specialist is responsible for all aspects of compensation and AP data management, including the following:  Establishment of the MDFG database of affected people and compensation administration, based on data provided by socio-economic survey, census, valuation consultants, as is also reflected in the LARP;  Management of the database, updates to circumstances of APs, establishment of compensation agreements from the database;  Oversight of the grievance database;  Monitoring of compensation payments and update to database accordingly;  Preparation of information required for quarterly monitoring reports and on as needed basis.

165. The Data Manager / Database Specialist is an experienced specialist with 5 years of experience or more in data management / database establishment and operation. Prior

62 experience of the specific issues (legal, economic, social) raised in LAR programs would be beneficial.

8.1.2 Support to the Resettlement Unit and Capacity Building

166. The Resettlement Unit will be supported by:  ADB national LAR Consultant;  External international and local LAR Consultants (review);  Legal support for the drafting of the compensation agreements (to be determined);  Independent Monitor (IM).

167. The Resettlement Unit will be supported on a daily basis by the ADB national LAR consultant based in Tbilisi under Regional Technical Assistance (RETA) program 7743 (“Mainstreaming Land Acquisition and Resettlement Safeguards”10). This RETA program can also mobilise an international consultant for on the job coaching and ad-hoc support. Thematic workshops are anticipated to be organised in the same time frame that the LARP will be implemented (essentially in 2014). Examples of issues that will be addressed in the workshops include:  Valuation and business losses;  Consultation and disclosure;  Support to vulnerable people;  Support to relocation of businesses and households.

168. Under this RETA program the different LAR units active in different institutions of the Georgian government (such as the Roads department, which has broad experience, or the water and power utilities) will get together on a periodic basic to share experience and to raise questions to the international and national consultants. International experience sharing is also anticipated to take place in 2014.

169. The Resettlement Unit will be supported by the external international LAR consultant (available on distance with periodic travel to Georgia) and national LAR consultant (available in house on daily basis). The team of external consultants has been already engaged and involved in finalization of this LARP with follow up support available during its implementation and monitoring.

170. In addition, Resettlement Unit will be supported by IM to carry out external monitoring of LARP implementation process and develop LARP compliance report.

171. Lastly a specific consulting budget is identified in the LARP budget to allow the Resettlement Unit to resort to Georgian or international consultants for legal support and for general resettlement support, should such need arise.

8.2 Role of Other Agencies and Institutions

172. A number of other institutions have a role in the preparation and/or implementation of the LAR for Projects under the Program, among these the most notable are:

 Government of Georgia at central level: o Ministry of Finance (MoF): The finances for the implementation of the LARPs will be provided by MoF to MDFG upon presentation of the LARP and relative budgets. As the implementation of the LARPs is a condition to start the civil works it will be essential that MoF executes payments immediately. It is

10 Approval by ADB on 11 December, 2009; total budget: USD 5 Million over 10 countries including Georgia. 63 recommended that MDFG should liaise with MoF early in the process to clarify their procedural requirements. Also, the MoF may take the lead in establishing administering escrow accounts to be established for expropriation and absentees. Requirements in this respect should also be clarified by MDFG in liaison with MoF; o Ministry of Economy and Sustainable Development (MoESD): the MoESD is responsible for the establishment and communication to competent District Courts of the lists of properties to be expropriated. Similarly, it is recommended that MDFG should liaise with MoESD early in the process to clarify associated procedural requirements;

 NAPR: NAPR will handle legalization process for unregistered properties;

 Courts: where expropriation has to be used (refusals and absentees), the competent District court will review expropriation cases based on legal due process, undertake a hearing, will possibly commission an independent expert to support the review of the case and a fresh valuation of the property, and decide whether the land can be expropriated and at what price;

 ADB: besides supervising periodically the Project, ADB will review LARP and clear contract awards signing and initiation of civil works based on the Compliance Report established by the IM, and review LAR monitoring progress and results.

64 CHAPTER 9. RESETTLEMENT BUDGET AND FINANCING

173. The GoG is responsible for all land acquisition costs associated with the implementation of the LARP. A budget of approximately GEL 39,818,626.10 will be allocated for all LARP implementation activities from budget for Project (Section 2 Part A). This includes the cost for compensation of losses, registration on new land plots and structures, re-registration of remaining land plots, all associated administrative and bank operation related costs, as well as resettlement monitoring and evaluation. The budget breakdown is shown in table 27.

Table 27. Land acquisition and resettlement budget

Particulars/Items Number of Quantity Estimated Estimated APs Budget (GEL) Budget (USD) 1. Compensation for privately- owned land (195 plots) a. agricultural land 108 HH, 1 LE 75,467 sq.m. 4,920,123.00 2,802,010.05 b. non-agricultural land 37 HH, 20 LE, 109,842 sq.m. 7,818,770.00 4,452,789.52 2 unknown 2. Compensation for trees and 100 HH, 8 LE 91 units (non 4,380.00 2,494.41 perennial plants (108 plots) productive) 4,729 units (fruit 317,139.00 180,610.66 trees and perennial plants) 3. Compensation for structures 118 HH, 18LE, 511 units 14,813,223.00 8,436,130.50 2 unknown 4. Compensation for business 18 HH, 13 LE 30 units 1,998,684.00 1,138,250.54 losses (permanently affected) 5. Compensation for 198 198 units 178,200.00 101,484.90 employment losses employees 6. Relocation and transition allowance a. Relocation of housing 41 HH, 3 LE 47 units 42,300.00 24,089.85 b. Relocation of business 18 HH, 13 LE 30 units 27,000.00 15,376.50 structures 7. Allowance to vulnerable APs 40 HH 3 months 36,000.00 20,502.00 8. Allowance to severely 192 HH and 3 months 172,800.00 98,409.60 affected persons LE 9. Income tax (20% of total cost 5,574,727.00 3,174,807.03 of lines 1, 2, 3) 10. Implementation a. Salaries of RU 12 months 120,000.00 68,340.00 (12 months * GEL 10000) b. Operational costs of RU 12 months 60,000.00 34,170.00 (12 months * GEL 5000) c. Administrative costs for 237 units 15,405.00 8,773.15 resettlement implementation (237 plots * 65 GEL) d. Legal support 40,000.00 22,780.00 e. Independent Monitor 60,000.00 34,170.00 Total 36,198,751.00 20,615,188.69 Contingencies (10%) 3,619,875.10 2,061,518.87 Total + Contingencies 39,818,626.10 22,676,707.56

65 CHAPTER 10. IMPLEMENTATION SCHEDULE

10.1 General

174. The time for implementation of resettlement plan will be scheduled as per the overall project implementation. All activities related to the land acquisition and resettlement must be planned to ensure that compensation is paid prior to displacement of APs and commencement of civil works. Public consultation, internal monitoring and grievance redress will be undertaken intermittently throughout the project duration. However, the schedule is subject to modification depending on the progress of the Project activities.

175. As part of advance actions the capacity of the MDFG shall be enhanced to ensure proper implementation of LAR activities. Capacity building will include establishment of Resettlement Unit and allocation of dedicated staff to be responsible for LARP implementation and grievance redress, support from ADB national LAR Consultant as well as external international and national LAR Consultants, and may also include provision of training to staff.

10.2 Project Preparation Phase

176. Setting up the LAR unit for the resettlement activities will be the major task during the preparatory stage, which is the pre-construction phase. Additionally, the Grievance Redress Committee shall be established at this stage. Based on the impacts identified for Section 2 Part A, a Final LARP should be prepared and sent to ADB and GoG for approval. Upon the approval, the Final LARP should also be disclosed.

10.3 LARP Implementation Phase

177. The compensation/rehabilitation program involves different actors in implementation. These actors include:  MDFG as the Implementation Agency (IA),  Municipal governments (City of Tbilisi and Gardabani District/Krstanisi Sakrebulo),  the Government of Georgia (GoG) at central level,  the National Agency of Public Registry (NAPR),  the ADB, and  Contractors and consultants.

178. Upon the approval of final LARP, all the arrangements for delivering the compensation and the disbursement have to be done. These include payment of all eligible assistance, relocation of APs, rehabilitation measures, site preparation for delivering the site to civil works contractor and finally commencement of the civil works.

179. MDFG takes the lead in implementation of the LARP. MDFG coordinates interventions of other parties as needed. MDFG establishes a Resettlement Unit staffed by experienced personnel for the purpose of LARP implementation. MDFG has already implemented LARP tranches 1 and 3 for the Tbilisi-Rustavi highway and has good experience in undertaking land acquisition to ADB standards. However, in comparison with previous ones this tranche (including Section 2 part B for which LARP still have to be finalized and implemented) has significant physical displacement impacts and MDFG’s capacity will need to be enhanced to handle these new issues.

180. Internal monitoring will be the responsibility of MDFG (with support from consultants) and will start once the implementation of LARP starts and will continue till the completion of the

66 project. MDFG will be responsible for internal monitoring over LARP implementation, preparation of progress reports to be submitted to ADB, involvement of IM to prepare the LARP completion report.

181. Table 28 shows the activities involved in the LARP finalization and implementation and the agencies/units involved.

Table 28. LARP finalization and implementation process

No. Work Description Responsible Agency A. LARP finalization A1 Review of initial LARP for Section 2, update and review Dohwa (Consultants), MDFG, data on impact assessment and valuation LAR Consultants, ADB A2 Final LARP preparation Dohwa (Consultants), MDF, LAR Consultants, A3 Final LARP review / approval / disclosure MDFG/ ADB A4 Establish Resettlement Unit MDFG A5 Establish Grievance Redress Committee MDFG A6 Recruit IM MDFG B. LARP Implementation B1 Draft compensation agreements (1. Sale/Purchase MDFG Agreement for Land and attached real property; and 2. Compensation Agreement for all other cases), and draft minutes of disagreement with legal support (internal or external) B2 Liaise with Ministry of Economy and Sustainable MDFG Development (MoESD) on expropriation/eminent domain and legal instruments to be prepared in this respect B3 Establish escrow account for expropriation MDFG B4 Establish escrow account for absentee landowners MDFG B5 Provide support to legalization by APs of their unregistered MDFG properties B6 Finalize and document with MRA and Municipality of Tbilisi MDFG relocation solutions in existing vacant housing for affected IDPs and organize upgrades to this vacant housing if warranted B7 Negotiations with affected people and finalization of MDFG compensation agreements B8 Establishment of lists of disagreement and individual MDFG minutes of disagreement B9 Communication of lists of disagreement to MESD for MDFG initiation of expropriation proceedings B10 Discuss and agree with ADB the format and content of MDFG quarterly monitoring reports B11 Mobilize LARP budget from Ministry of Finance MDFG B12 Effect compensation payment to APs and reflect status of MDFG payments in database B13 Effect compensation payment to APs and reflect status of MDFG payments in database B14 Monitor expropriation proceedings MDFG B15 Provide support to physically displaced people in identifying MDFG adequate relocation housing B16 Provide support to vulnerable people and severely affected MDFG people B17 Reflect relocation monitoring in database (whereabouts of MDFG APs after relocation) B18 Obtain and review IM Compliance Audit MDFG B19 Provide IM Compliance Report to ADB MDFG B20 Review of LARP monitoring reports ADB

67 182. Key milestones include: LARP finalisation and approval: o Validation of the final LARP by MDFG and ADB and finalisation further to final comments; LARP implementation: o Submission of the IM Compliance Report after verification that the LARP implementation complies with commitments in this LARP; o No Objection Letter to proceed with physical civil works based on the IM Compliance Report; and o Notice to proceed to Civil Works contractor.

183. The negotiation and compensation process is outlined in the following flow chart presented in Figure 4.

Figure 4. Negotiation and Compensation Flow Chart

Generation of draft AH absent and Best effort to locate AH or compensation agreement from cannot be visited obtain Power of Attorney

the RU database

Use of Necessary Right-of-

Way Mechanism

AH present and can be visited

If agreement reached in 1st First negotiation Payment of visit: signature and visit to AH compensation per notarization of compensation agreement agreement

If no agreement reached in If agreement reached in 2nd st Payment of 1 visit: visit: signature and compensation per notarization of second negotiation visit to agreement compensation agreement AH

Preparation, signature, and Inclusion of AP in the list If no agreement reached in notarization of a minute of of expropriation to be nd 2 visit disagreement communicated to MoESD

Expropriation

184. In general, two negotiation visits will be conducted. If no agreement is reached after the second visit, a minute of disagreement will be drafted and notarized. The affected household will be included in the list for expropriation to be communicated to the MoESD, or an application to Court for Necessary Right-of-Way will be prepared. Where the owners 68 cannot be located, a best effort approach will be taken to contact them and enter into negotiations (contact with local authorities, neighbours, etc.). Notices will be published in the local press at least once and people will be given one month to come forward before they are included in the expropriation list (or Necessary Right-of-Way procedure).

185. Support to Relocation. Physically displaced people will be supported by the RU in their efforts towards securing alternative housing, as follows:  Identification of suitable housing developments where physically displaced people could relocate themselves;  Support in negotiations with estate agents or developers;  Support in administrative procedures.

186. Vulnerable people will be subject to specific, more intensive support, particularly those who are not eligible to compensation because they do not own their structures. For IDPs, the RU will liaise with the MRA and the Municipality of Tbilisi to monitor their relocation and document suitable relocation solutions. The MDFG RU will identify and record in its database the whereabouts of all relocated APs such that monitoring of livelihood restoration and associated support can take place.

187. Support to Livelihood Restoration of Business Owners. Apart from two large businesses, which are only marginally affected (land only), most of the 30 other small and mid- size businesses are affected to such an extent that their relocation will usually be required. In such cases, most business owners indicate that they will be willing to re-establish their business elsewhere. Previous experience indicates that this process can take time, and business owners are therefore compensated for one year interruption of activity. In addition, previous experience in Tbilisi indicates that re-establishing a business is not necessarily an easy process, and therefore business owners who are permanently affected will be supported by the MDFG RU in their efforts to secure suitable new business premises. This will involve the following activities:  Supporting business owners in liaising with the municipality and real estate agents to identify available commercial plots;  Supporting them in paperwork required to secure, purchase or lease, and register such commercial plots;  Supporting them in seeking required construction permits, where warranted;  Supporting them in the commercial and marketing re-establishment of the business (such as advertisement, sign-posting at both the new and old locations, contact with previous clientele, etc.).

188. Support to Livelihood Restoration of Business Employees. According to the data provided by the business owners during the socio-economic survey and census, 198 employees will be impacted due to Project activities. An assumption is made at this point for a “worst case scenario” according to which none of these employees would be able to re-establish their employment immediately. MDFG RU will prepare a database of the affected employees and communicate the options on how they can continue their employment. Separate list will be established for the employees that may not be rehired by their current employers and interviews with these affected employees will be carried out to understand their skills and provide support in finding the employment opportunities. Monitoring of these employees will be carried out by RU as a part of internal monitoring to assess whether the livelihood was restored and recommend additional activities as needed.

189. Efforts will be made to reach agreements or resolution of issues with the APs on the compensation payments without involving the Courts in order to avoid delays in project implementation. Table 29 presents the proposed schedule for the LARP implementation and commencement of civil works.

69 Table 29. Tentative Schedule for LARP Implementation 26 Tasks Lead 2014 2015 September October November December January February March April May June 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1. Implementation preparation 1-a Finalization of LARP LAR Con- sultants 1-b Establishment of MDFG resettlement unit 1-c Establishment of MDFG database 1-d Establishment of MDFG GRC 1-e Obtain GoG approval MDFG of LARP 1-f Identify replacement MDFG, premises for IDPS MRA 1-g LARP disclosure MDFG 1-h LARP approval by ADB ADB 1-i LARP budget MDFG allocation by GoG 2. LARP implementation MDFG 2-a Negotiations and MDFG agreements with APs 2-b Compensation to APs MDFG who signed amicable agreements 2-c Legalization of MRA, legalizable APs MDFG 2-d Relocation of IDPs MDFG (refugees) to new premises 2-e NOL to start civil works ADB 2-f Start of civil works MDFG Continuous tasks Grievance resolution MDFG Internal Monitoring MDFG External Monitoring MDFG 70 CHAPTER 11. MONITORING AND EVALUATION

11.1 Introduction

190. LAR tasks under the Project will be subjected to both internal and external monitoring. Internal monitoring will be conducted by MDFG. External monitoring will be assigned to an Independent Monitor (IM) to be hired by MDFG and approved by ADB. The IM will be selected among NGOs, academic Institutions, or consulting firms. ADB will advise MDFG on the IM’s terms of reference once Project implementation has begun.

11.2 Internal Monitoring

191. Internal monitoring will be carried out routinely by MDFG either directly or through the services of a consultant. The results will be communicated to ADB through the quarterly project implementation reports. Indicators for the internal monitoring will be those related to process and immediate outputs and results. This information will be collected directly from the field level by MDFG to assess the progress and results of LARP implementation, and to adjust the work program, if necessary. The monthly reports will be quarterly consolidated in the standard supervision reports to ADB. Specific monitoring benchmarks will be: (i) Information campaign and consultation with APs; (ii) Status of land acquisition and payments on land compensation; (i) Compensation for affected structures and other assets; (ii) Relocation of APs; (iii) Payments for loss of income; (iv) Selection and distribution of replacement land areas; and (v) Income restoration activities.

192. The above information will be collected by MDFG, which is responsible for monitoring the day-to-day resettlement activities of the project through the following instruments: (i) Review of census information for all APs; (ii) Consultation and informal interviews with APs; (iii) In-depth case studies; (iv) Sample survey of APs; (v) Key informant interviews; and (vi) Community public meetings.

11.3 External Monitoring

193. External monitoring will be carried out during LARP implementation and twice a year thereafter. It results communicated to MDFG and ADB through semi-annual reports. Subprojects whose LARP implementation time frame will be under six months will be monitored only once. External Monitoring tasks will be carried out in two phases:

11.3.1. Phase I

194. This external Monitoring phase will be carried out in parallel with the implementation of the LARP and will be concluded after the LARP is fully implemented by the preparation of a Compliance Report. An acceptable Compliance Report is condition to start the implementation of physical civil works for the project. The Compliance report will include the following sections:

195. During this phase the IMA will i) do the investigations and define the indicators needed for phase two activities and ii) closely monitor the implementation of the LARP. LARP implementation monitoring will entail the following tasks: (a) review of LARP/Information pamphlet disclosure; (b) review of actions taken by the MDFG to compensate the APs with

71 particular attention to the way this action fits LARP stipulations; (c) review all compensation tallies; (d) verify whether the compensation is provided thoroughly to all APs and in the amounts defined in the LARP and in the AP contracts; (e) asses the satisfaction of the APs through an AP satisfaction survey based on a representative sample of the AH; (f) review the legalization process and assess its effectiveness; (g) review complaints & grievances case. The IMA will prepare the Compliance Report immediately after the completion of LARP implementation.

196. The Compliance report will include well argued sections on the following: (i) Assessment of the way the compensation has been carried out ijn relation to RP stipulations; (ii) Verification that all APs were compensated in the amounts stipulated in the RP (iii) Review of complaint and grievance cases and of their solution (iv) Assessment of the rehabilitation program for vulnerable APs (v) Assessment of the satisfaction of the APs (vi) Lesson learned to be applied to the next projects, and;

197. General assessment of LARP implementation and recommendations to ADB regarding the provision of No Objection Letter to start the civil works.

11.3.2. Phase II

198. Within 6 months from the end of the implementation of the whole MFF the IMA will also assess the degree of income rehabilitation achieved by the LAR compensation and rehabilitation Program. The following are main indicators for the investigations to be carried out in this external Monitoring phase: (i) Socio-economic conditions of the APs in the post-resettlement period; (ii) Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc.; (iii) Changes in housing and income levels; (iv) Rehabilitation of informal settlers; (v) Effectiveness of property valuation for rehabilitation purposes; (vi) Effectiveness of Grievance procedures; (vii) Level of satisfaction of APs in the post resettlement period.

72 ANNEXES

ANNEX A. List of Affected Households/Legal Entities and Affected Land Plots / Property

No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use 1 810312222 State Property 87 Non-agricultural Commercial 2 810312228 State Property 20189 Non-agricultural Commercial Private 3 1 810312165 200 Non-agricultural Commercial X property 4 011811001028 State Property 2014 Non-agricultural Commercial Private 5 1 011811001006 108 Non-agricultural Commercial Petrol station Commercial X property Car wash and 6 011811001008 State Property 140 Non-agricultural Commercial Commercial X repair 7 011811001023 State Property 157 Non-agricultural Commercial Private 8 2 011811001001 1678 Non-agricultural Commercial Canteen Commercial X property Private 9 2 24 Non-agricultural Commercial Industrial Commercial X property Private 10 3 011811001018 300 Non-agricultural Commercial Petrol station Commercial X property Private 11 4 011811001017 181 Non-agricultural Commercial Petrol station Commercial X property 12 011811001024 State Property 349 Non-agricultural Commercial Private 13 5 810312174 48 Non-agricultural Commercial Wall and fence Commercial X property Private 14 6 810312175 10 Non-agricultural Commercial X property Private 15 3 311 Non-agricultural Commercial Canteen Commercial X property 16 011811001025 State Property 922 Non-agricultural Commercial Private 17 4 011811001021 3886 Non-agricultural Commercial X property 18 7 011811001007 Private 586 Non-agricultural Commercial Petrol station Commercial X

73 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use property Private 19 8 011811001022 2470 Non-agricultural Commercial Petrol station Commercial X property Private 20 9 011811001003 10255 Non-agricultural Commercial Car repair Commercial X property Private 21 5 011811001013 35 Non-agricultural Commercial X property Private 22 10 011811001011 4 Non-agricultural Commercial property 23 011811001030 State Property 384 Non-agricultural Commercial Private 24 6 011811001005 272 Non-agricultural Commercial Industrial Commercial X property 25 State Property 1264 Non-agricultural Commercial 26 011812003024 State Property 1706 Non-agricultural Commercial 27 011812003025 State Property 27 Non-agricultural Commercial 28 011812003026 State Property 971 Non-agricultural Commercial Private 29 11 011812003023 4795 Non-agricultural Commercial Industrial Commercial X property Private 30 7 011812003016 1606 Non-agricultural Commercial Restaurant Commercial X property Private 31 8 011812003045 334 Non-agricultural Commercial Restaurant Commercial X property 32 State Property 749 Agricultural Agricultural X 33 State Property 494 Agricultural Agricultural House Residential X Private 34 12 011812003012 28 Non-agricultural Commercial X property Support 35 State Property 66 Agricultural Agricultural Commercial X structure 36 State Property 85 Agricultural Agricultural Fence X Private 37 9 011812010049 891 Non-agricultural Commercial Industrial Commercial X property Private 38 1524 Non-agricultural Commercial Fence Commercial X property 39 13 011812010036 Private 8324 Non-agricultural Commercial Industrial Commercial X

74 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use property 40 State Property 708 Agricultural Agricultural Private 41 14 11812010019 1817 Agricultural Agricultural Industrial Commercial X property Private 42 011812010034 1162 Non-agricultural Commercial property Private 43 10 011812010024 1013 Non-agricultural Commercial Industrial Commercial X property Private 44 15 011812011067 201 Non-agricultural Commercial X property Private 45 16 011812011079 253 Non-agricultural Commercial property Private 46 17 011812011082 768 Non-agricultural Commercial X property Below the poverty Private 47 11 011812011060 500 Non-agricultural Commercial line, X property Disabled, Refugee Private 48 12 011812011061 500 Non-agricultural Commercial Refugee X property Private 49 13 011812011052 366 Non-agricultural Commercial X property Private 50 14 011812011053 358 Non-agricultural Commercial X property Private 51 15 011812011054 103 Non-agricultural Commercial X property Private 52 16 011812011065 210 Non-agricultural Commercial X property Private 53 7 18 011812011063 2644 Non-agricultural Commercial House Commercial X property Private 54 18 011812011050 309 Non-agricultural Commercial Fence Commercial X property Private 55 19 011812011049 593 Non-agricultural Commercial Fence Commercial X property 56 20 011812011047 Private 251 Non-agricultural Commercial X

75 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use property Private 57 19 011812011106 57 Non-agricultural Commercial property Private 58 20 011812011089 1407 Non-agricultural Commercial House Commercial X property Private 59 21 011812011064 140 Non-agricultural Commercial X property Private 60 21 011812011046 7462 Non-agricultural Commercial X property 61 State Property 1383 Non-agricultural Commercial 62 State Property 222 Agricultural Agricultural House Residential X Private 63 22 1024 Agricultural Residential Fence Residential X property Private 64 23 011812011074 1489 Agricultural Residential House Residential X property Private 65 24 011812011083 669 Agricultural Residential House Residential Disabled X property Support 66 State Property 224 Agricultural Agricultural Agricultural X structure 67 State Property 16 Agricultural Agricultural Fence Agricultural X 68 State Property 169 Agricultural Agricultural Fence Agricultural X Private 69 25 011812022022 332 Agricultural Residential House Residential X property Private 70 26 011812022029 1487 Agricultural Residential House Residential X property Private 71 27 561 Agricultural Residential House Residential X property Private 72 28 2102 Agricultural Residential House Residential X property Private 73 29 011812022027 2137 Agricultural Residential House Residential X property Private 74 30 011812022013 442 Non-agricultural Residential House Residential Refugee X property Private 75 31 011812022008 278 Non-agricultural Residential House Residential X property

76 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use Private 76 32 128 Non-agricultural Residential House Residential X property 01.18.12.022.0 Private 77 33 6 Non-agricultural Residential Fence Residential 30 property 78 State Property 6305 Non-agricultural Commercial Private 79 22 011812022012 2339 Non-agricultural Commercial Industrial Commercial X property 80 State Property 2234 Non-agricultural Commercial Private 81 23 011812022024 704 Non-agricultural Commercial Fence Commercial property Private Support 82 24 810502138 19522 Non-agricultural Commercial Commercial X property structure Private Support 83 34 810502312 667 Agricultural Agricultural Agricultural X property structure Private 84 35 810502574 116 Agricultural Agricultural Fence Agricultural Refugee property Private 85 36 909 Agricultural Agricultural Fence Agricultural X property Private Support 86 37 810502174 788 Agricultural Agricultural Agricultural X property structure Private 87 38 810505023 1500 Agricultural Agricultural X property Private 88 25 810502170 71 Non-agricultural Commercial Cafe Commercial X property Private Support 89 39 810502579 1500 Agricultural Agricultural Agricultural X property structure Private 90 40 810502578 1500 Agricultural Residential House Residential X property Private 91 41 81.05.05.323 701 Agricultural Agricultural Fence Agricultural X property Private 92 42 810505032 105 Agricultural Agricultural property 93 State Property 206 Agricultural Agricultural X Private Support 94 43 810502181 1511 Agricultural Agricultural Agricultural X property structure

77 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use Private 95 44 810502165 1500 Agricultural Commercial Buildings Commercial X property Private 96 45 011813030010 51 Agricultural Agricultural property Private 97 46 011813030012 850 Agricultural Agricultural X property Private 98 47 011813030013 850 Agricultural Agricultural X property Private 99 48 011813030009 903 Agricultural Agricultural Refugee X property 100 State Property 4838 Non-agricultural Commercial Below the Private 101 49 810502542 1000 Agricultural Residential House Residential poverty X property line Private 102 50 81.05.02.157 381 Agricultural Residential House Residential X property Private Support 103 51 810502002 1506 Agricultural Residential Residential X property structure 104 810502584 State Property 2417 Non-agricultural Commercial Private 105 52 011813033009 322 Agricultural Agricultural Refugee X property Private 106 26 011813033010 300 Non-agricultural Commercial Petrol station Commercial X property Private 107 53 810506193 153 Agricultural Commercial Fence Commercial X property Private 108 54 810506257 4 Agricultural Commercial Shop Commercial X property Private 109 55 810505048 203 Non-agricultural Commercial Industrial Commercial Refugee X property Private 110 56 810505281 200 Agricultural Agricultural X property Private 111 57 810505283 919 Agricultural Agricultural X property Private Support 112 58 810505282 925 Agricultural Agricultural Agricultural X property structure 113 59 810505284 Private 200 Agricultural Agricultural X

78 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use property Private Support 114 60 810506069 212 Agricultural Residential Residential X property structure Support 115 State Property 33 Agricultural Agricultural Residential structure Private 116 61 810506304 121 Agricultural Residential X property Private 117 62 810506318 131 Agricultural Agricultural Fence Residential X property Private 118 63 810506206 115 Non-agricultural Commercial X property Private 119 27 810505550 1101 Non-agricultural Commercial Petrol station Commercial X property 120 State Property 202 Agricultural Agricultural Fence Agricultural X Private Support 121 64 810505063 585 Agricultural Agricultural Agricultural Refugee X property structure 122 State Property 105 Non-agricultural Commercial X Private 123 65 810505696 96 Non-agricultural Commercial Industrial Commercial X property Private 124 66 810505695 133 Agricultural Commercial Industrial Commercial X property Private 125 67 810505629 563 Non-agricultural Commercial Industrial Commercial X property Private 126 68 810505289 250 Non-agricultural Commercial Industrial Commercial X property Private 127 69 810505078 763 Agricultural Agricultural Fence Agricultural X property Private 128 70 810505090 741 Agricultural Agricultural Fence Agricultural X property Private 129 71 810505083 718 Agricultural Agricultural Fence Agricultural X property Private Support Refugee, 130 72 810505682 647 Agricultural Residential Residential X property structure Disabled Private Support 131 73 810505585 1192 Agricultural Residential Residential Refugee X property structure

79 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use Private Support 132 74 810505590 80 Non-agricultural Commercial Commercial X property structure Private Support 133 75 810506076 115 Agricultural Agricultural Agricultural property structure Private Support 134 76 810506080 154 Agricultural Residential Residential X property structure Private Support 135 77 810506248 50 Agricultural Commercial Commercial X property structure Private Support 136 78 810506287 44 Agricultural Residential Residential X property structure Private 137 79 810506288 95 Agricultural Agricultural X property Private Support 138 80 810505346 200 Agricultural Agricultural Agricultural Refugee X property structure Private 139 81 810505345 687 Agricultural Commercial Shop Commercial Refugee X property Private Support 140 82 810505596 711 Agricultural Residential Residential Refugee X property structure 141 State Property 77 Agricultural Agricultural X Private Support 142 83 810505207 663 Agricultural Agricultural Agricultural Refugee X property structure Private 143 84 810505587 521 Agricultural Residential House Residential Refugee X property 144 State Property 558 Agricultural Agricultural Private Support 145 85 810505209 616 Agricultural Residential Residential X property structure Private 146 86 810505741 151 Agricultural Residential Fence Residential X property Private Support 147 87 810505742 615 Non-agricultural Commercial Commercial X property structure Private 148 88 810506239 92 Non-agricultural Agricultural X property Private 149 89 810506240 156 Agricultural Agricultural X property Private 150 90 810506246 52 Agricultural Agricultural Fence Agricultural property

80 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use Private 151 91 810506221 30 Agricultural Agricultural property Private 152 92 81.05.06.126 200 Non-agricultural Commercial Fence Agricultural X property 153 State Property 409 Non-agricultural Commercial X Private 154 93 810505719 663 Non-agricultural Commercial Restaurant Commercial X property Private Support 155 94 810505770 739 Agricultural Residential Residential Refugee X property structure Private Support 156 95 810506361 91 Agricultural Agricultural Agricultural property structure Private 157 97 810505213 935 Agricultural Agricultural Fence Agricultural X property Private 158 97 810506362 93 Agricultural Agricultural Fence Agricultural X property Private Support 159 98 810506220 170 Non-agricultural Commercial Commercial X property structure Private Support 160 99 810506313 41 Agricultural Residential Commercial property structure Private Support 161 100 810506236 115 Agricultural Residential Commercial X property structure Private 162 101 81.05.06.226 38 Non-agricultural Commercial House Commercial X property Private 163 102 81.05.06.334 128 Agricultural Agricultural X property 164 State Property 315 Agricultural Agricultural Private Support 165 103 810505214 686 Agricultural Residential Residential Refugee X property structure Private Support 166 104 810505349 381 Agricultural Residential Residential X property structure Private Support 167 105 810505614 307 Agricultural Agricultural Agricultural Refugee X property structure 168 State Property 1094 Agricultural Agricultural X Private Support 169 106 810505617 551 Agricultural Agricultural Agricultural X property structure

81 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use Private 170 107 810506258 322 Agricultural Agricultural X property Private Support 171 28 810506164 195 Non-agricultural Commercial Commercial X Property structure 172 State Property 170 Agricultural Agricultural X 173 State Property 289 Agricultural Agricultural X Private 174 108 810500325 500 Non-agricultural Commercial X property 175 State Property 302 Agricultural Agricultural X Private Support 176 109 810505570 332 Agricultural Agricultural Agricultural X property structure Private 177 110 810505340 294 Agricultural Agricultural X property 178 State Property 666 Non-agricultural Commercial X Private Support 179 111 810506300 144 Agricultural Residential Residential property structure Private Support 180 112 309 Agricultural Residential Residential X property structure Private 181 113 810500324 700 Non-agricultural Commercial X property Private 182 114 810511129 300 Non-agricultural Commercial Buildings Commercial X property Private 183 115 1416 Agricultural Residential House Residential X property Private 184 116 1704 Agricultural Residential House Residential X property Private 185 117 810511157 500 Agricultural Residential House Residential X property Private 186 118 810506285 101 Agricultural Residential House Residential X property Private 187 119 169 Agricultural Residential House Residential X property Private 188 120 810506241 25 Agricultural Residential House Residential property 189 121 810506242 Private 31 Non-agricultural Commercial Shop Commercial X

82 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use property Private 190 122 182 Agricultural Residential House Residential X property Private 191 123 204 Agricultural Agricultural X property 192 State Property 295 Non-agricultural Commercial Car repair Commercial X Private 193 124 810511161 2508 Agricultural Residential House Residential X property Private 194 125 810511165 564 Agricultural Agricultural X property Private 195 126 810511164 1697 Agricultural Residential House Residential X property Private Support 196 127 810507524 7 Agricultural Residential Residential property structure Private Support 197 128 810507204 406 Agricultural Residential Residential X property structure 198 State Property 109 Non-agricultural Commercial Private Support 199 129 810507205 514 Agricultural Residential Residential X property structure Private 200 130 810507508 591 Agricultural Agricultural X property Private 201 131 810511139 1101 Agricultural Residential House Residential X property Private 202 132 152 Agricultural Residential House Residential X property Private 203 133 810511140 1100 Agricultural Residential House Residential X property Private 204 134 810511210 99 Agricultural Residential House Residential X property Private 205 135 810511192 556 Agricultural Residential House Residential X property Private 206 136 1219 Agricultural Agricultural X property Private 207 137 810511211 230 Agricultural Residential House Residential X property

83 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use Private 208 138 810511134 1321 Agricultural Residential House Residential X property Private Support 209 139 231 Agricultural Agricultural Agricultural X property structure Private 210 140 92 Agricultural Agricultural property Private 211 141 810511031 439 Agricultural Agricultural X property Private 212 142 810511135 980 Agricultural Agricultural X property Private 213 29 810511133 3501 Non-agricultural Commercial X property Private 214 143 810511138 500 Agricultural Residential House Residential X property Private 215 144 810511194 509 Agricultural Agricultural X property Private 216 145 810511163 505 Agricultural Agricultural X property Private 217 146 810511136 603 Agricultural Residential House Residential X property 218 State Property 680 Agricultural Agricultural X Private 219 147 502 Agricultural Residential House Residential X property Private 220 148 810511040 61 Agricultural Residential House Residential X property Private Support 221 149 1235 Agricultural Agricultural Agricultural X property structure Private 222 150 810512297 1449 Agricultural Agricultural X property Private 223 151 810512286 998 Agricultural Agricultural Refugee X property Private 224 30 810512001 2400 Non-agricultural Commercial Petrol station Commercial X property Private 225 152 810512244 500 Agricultural Agricultural Building Agricultural X property 226 153 810500332 Private 895 Agricultural Agricultural X

84 No. No. Size of Purpose of Cadastre Tenure of Type of land Purpose of Type of Vulne- Severely # of of affected structure number land 2 use land use structure rable affected HH LE land plot, m use property Private 227 154 810512310 79 Non-agricultural Commercial property Private 228 155 810512287 1099 Agricultural Agricultural X property Private 229 156 810512261 294 Agricultural Agricultural X property Private 230 157 810512270 276 Non-agricultural Agricultural X property Private 231 158 810512324 1680 Agricultural Agricultural X property 232 State Property 25690 Non-agricultural Commercial X Private 233 31 810513515 17033 Non-agricultural Commercial property 234 Lease 0 Non-agricultural - X Private 235 159 011812011104 399 Agricultural Residential House Residential X property Private 236 160 011812011103 495 Agricultural Agricultural Fence Agricultural X property 237 Lease 0 Non-agricultural - 238 Lease 0 Agricultural - X 239 Lease 0 Non-agricultural - X 240 Lease 0 Non-agricultural - X Private 241 161 011812003020 342 Non-agricultural Commercial House Commercial X Property Private 242 342 Non-agricultural Commercial House Commercial X Property 243 Lease 0 Non-agricultural - X 161 31 264629 192

85 ANNEX B. Information Leaflet

INFORMATION LEAFLET

LAND ACQUISITION AND RESETTLEMENT POLICY THE MODERNIZATION OF TBILISI_RUSTAVI SECTION OF THE TBILISI-RED BRIDGE (AZERABAIJANI BORDER) ROAD Section 2 Part A (Phonichala)

Introduction

1. The Government of Georgia has received a loan (USD 60 million) from the Asian Development Bank (ADB) for the Modernization of Tbilisi-Rustavi Section (section 2) of the Tbilisi to Azerbaijani Border Road, under the Sustainable Urban Transport Investment Program. Section-2 is 6.8km. Section 2 was sub-divided into two parts. Part A is located from PK 4+000 to PK 5+300 and PK 6+800 to PK 10+755.

2. The Municipal Development Fund of Georgia (MDFG) is the project executing, implementing and disbursing agency. The MDFG acts on behalf of the municipality and the Road Department of Georgia. The objective of the Project is to improve transport conditions between Tbilisi and Rustavi, facilitate daily commutes and freight transport between the two cities, and enhance road safety, in an environmentally sustainable way

3. As the project entails land acquisition and potential displacement of people, it requires the preparation and implementation of Land Acquisition and Resettlement Plans. These plans will provide compensation and resettlement assistance to affected families/persons and will aim at protecting or improving their current livelihoods

4. This Leaflet is an instrument to inform affected people about compensation policy/procedures developed in the Land Acquisition and Resettlement Plan for Section 2 Part A.

5. The Land Acquisition and Resettlement Plan will be prepared in conformance with ADB’s policies and Georgian law.

Planning the Compensation and Resettlement Program for the Project

6. The Municipal Development Fund of Georgia will prepare a Land Acquisition and Resettlement Plan. The hard copy of this plan in Georgian will be deposited for public consultation at the office of the Municipal Development Fund of Georgia. An electronic version of the plan will be placed on MDFG and ADB web-sites. The plan will detail impacts, compensation eligibility and entitlements, compensation rates for different affected assets and procedures for land acquisition and resettlement as summarized in the following sections.

Resettlement Policy and Principles

7. Land for construction of the new road will be acquired under the laws of Georgia and the ADB Safeguards Policy Statement (2009). Affected persons will be compensated at replacement value and receive adequate allowances according to the severity of impacts and their vulnerability status, if applicable. The detailed design consultant has investigated alternatives to minimize impacts. Land acquisition for the project is based on the following principles:  The design will seek to minimize land acquisition and resettlement impacts;  A time-bound action plan will be prepared and implemented to improve or at least restore pre-program standard of living of affected people; 86  Affected people will be consulted and their opinions will be considered in project design and implementation;  Compensation will be based on replacement cost following current market value at the time of land acquisition;  Affected people without title to land will be compensated for lost assets other than land and provided with a livelihood allowance;  Affected people will be assisted in their efforts to legalize informal occupation, where applicable, and further compensated;  Vulnerable people and severely affected people will be provided with special assistance;  Compensation and resettlement assistance will be provided prior to the start of construction; and  Appropriate mechanisms will be established to solve grievances.

Compensation Eligibility and Entitlements

8. APs entitled to compensation or at least rehabilitation provisions under the Project are:  All APs losing land either with legal title or traditional land rights, legalizable, or without legal status;  Tenants and sharecroppers whether registered or not;  Owners of buildings, crops, plants, or other objects attached to the land; and  APs losing business, income, and salaries.

9. In particular the eligibility to land compensation for this project has been elaborated as follows:  Titled APs will be fully compensated  Untitled APs who were legitimate leasers under the old Soviet system and have either plots with a house or adjacent to a plot with a house will be legalized and then compensated.  Untitled APs who were not legitimate leasers under the old Soviet system and who use or cultivate the land they occupy only extemporaneously will not be legalized nor compensated. They however, are still eligible for crop or income compensation.

10. Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day of the beginning of the AP Census and DMS. APs who settle in the affected areas after the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice, requested to vacate premises and dismantle affected structures prior to project implementation. Their dismantled structures materials will not be confiscated and they will not pay any fine or suffer any sanction.

11. The provisions for APs losing land, houses, and income and rehabilitation subsidies are defined below in table 1.

Table 1: Compensation Matrix

Type of Loss Application Definition of APs Compensation Entitlements Land Permanent loss of AH losing agricultural Owner with full Cash compensation at replacement agricultural land land regardless of registration cost. impact severity Legalizable Owner These AP will be supported to obtain legalization and provided with cash compensation at replacement cost.

87 Type of Loss Application Definition of APs Compensation Entitlements Informal Settlers (AHs One time self-relocation allowance in with no registration/valid cash. The relocation allowance is not documentation and non dependent on the number of AH legalizable) members or land characteristics and is a fixed amount per family equal to 1 year of minimum subsistence income11. Non-Agricultural Land AH losing their Owner with full Cash compensation at replacement commercial/ residential registration cost. land Legalizable Owner These APs will be legalized and provided with cash compensation at replacement cost.. Renter/Leaseholder Rental allowances in cash equal to 3 months of leasing costs, according to leasing fees approved by the municipalities for leasing the land of such category. Informal Settlers (AHs One time self-relocation allowance in with no registration/valid cash The relocation allowance is not documentation and not dependent on the amount of AH legalizable). members or land characteristics and constitutes fixed amount per family equal to 1 year at minimum subsistence income. Non-viable (“orphan”) Land that is affected Owner with full Subject to a request being lodged by land) partially but to such to registration or the land owner, orphan land may be an extent that the legalizable owner compensated in full if the review of the remainder is not usable (subject to legalization) request indicates that the remainder cannot be used economically Buildings and Structures Residential and non All AHs regardless of Full impact: Cash compensation for loss residential their legal ownership/ of building/ structures at full structures/assets registration status replacement costs free of depreciation (including legalizable and transaction costs and Informal Settlers) Partial impact: compensation for repairs Loss Of Community Infrastructure/Common Property Resources Loss of common Community/Public Community/Government Reconstruction of the lost structure in property resources Assets consultation with community and restoration of their functions Loss of Income and Livelihood Crops Standing crops affected All AHs regardless of Crop compensation in cash at market legal status (including rate at gross crop value of expected legalizable and Informal harvest. Settlers) Trees Trees affected All AHs regardless of Cash compensation at market rate on legal status (including the basis of type, age and productive legalizable and Informal value of the trees. Settlers)

11 The minimum subsistence income is calculated based on a 5 people family and the monthly-updated benchmarks indicated by the National Statistics Office of Georgia (August 2014: 300 GEL x month). Source: http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng

88 Type of Loss Application Definition of APs Compensation Entitlements Business/Employment Business/employment All AHs regardless of Owner: loss legal status (including (i). (permanent impact) cash indemnity legalizable and Informal of 1 year net income; and technical and Settlers) administrative support from the RU to relocate the business in appropriate premises

(ii) (temporary impact) cash indemnity of net income for months of business stoppage. Income will be calculated based on tax declaration or in its absence on minimum subsistence income.

Permanent worker/employees: (i) indemnity for lost wages equal to 3 months of minimum subsistence income AND (ii) support to business owner to relocate the business as quickly as possible (see above) AND (iii) support from RU to enrolment into existing livelihood restoration programmes such as business training and micro-credit Allowances Severe Impacts >10% land impact All severely affected Agricultural income: additional crop Physically displaced AHs including informal compensation covering 1 year yield households settlers from affected land. Owners of businesses Other income: additional compensation that have to interrupt for 3 months of minimum subsistence activity permanently or income. temporarily Relocation/Shifting Transport/transition All AHs to be relocated Assistance to identification of a suitable costs replacement dwelling Provision of an allowance of 300 GEL covering transport expenses and livelihood expenses for a 3 months transitional period. Vulnerable People AHs below poverty line, Allowance equivalent to 3 months of Allowances headed by women, minimum subsistence income and disabled people, IDPs employment priority in project-related jobs IDPs living in Support to relocation Registered IDPs Assistance to the identification of municipal or other suitable municipal housing in housing cooperation with relevant authorities in charge of support to IDPs Other Losses Temporary impact All AFs A Rent fee will be assessed and paid during construction based on LARP principles during construction. Damages during All AHs Case by case basis: compensation will construction be assessed and paid based on rates in this LARP if damages occur during construction. Unforeseen impacts, EA will compensate unforeseen if any resettlement impact during project based on this LARP provisions

89

12. The 8 refugee APs will be compensated through provision of substitute premises comparable or better than the premises lost by the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees of Georgia (MRA). The APs will be relocated to new apartments built for the purpose in the Varket Ili district.

Complaints and Grievance Redress Mechanism

13. In order to \ facilitate resolution of the complaints at each level, the Grievance Redress Committee (GRC) will be established for Tbilisi-Rustavi Urban Link. The GRC shall comprise of the following members:  Representative of MDFG (secretary of the Committee, preferably with a legal background);  Representative of interested municipal offices of Tbilisi (Krtsanisi), Rustavi and Gardabani (representative of the municipal office in the administrative area of which the grievance case is located will be invited to the GRC hearing);  Representatives of affected persons (with a reasonable gender representation) from each affected community (preferably a well-regarded individual in each community, such as a doctor or teacher living in the community, a well-regarded business person, a representative of a local civil society, or a representative of religious authorities);  Representative of non-governmental organization (NGO) or local (rayon level) society, if available.

Grievance Resolution Process

1. First, complaints resolution will be attempted informally at the community level with the involvement of community authorities and support from NGO and/or informal mediators. At these levels Grievance Focal Points to deal with project related grievance cases will be nominated. If the issue cannot be resolved within two weeks, it will be passed to the MDFG for review and resolution.

2. Second, complaints resolution will be attempted at the level of MDFG. At this level Grievance Focal Point to deal with project related grievance cases will be nominated. If the issue cannot be resolved within two weeks, it will be referred to court for resolution.

3. If after the MDFG intervention no solution has been reached and if the grievance redress system fails to satisfy the APs, they can pursue further action by submitting their case to the appropriate court of law). Nevertheless, abovementioned grievance mechanism does not limit the citizen’s right to submit the case to the court of law just in the first stage of grievance process.

Special Recommendations to APs for Legalization of legalizable plots

14. It is likely that some land parcels to be acquired are not registered or not properly registered. Affected people who occupy such land plots may be legalized, as long as these land plots are not owned by others or the state and are legitimately used by them. Only after legalization can these affected people be compensated.

15. The Municipal Development Fund of Georgia and local governments of project areas are already assisting affected people by preparing accurate land parcel maps with geometric descriptions, which will be provided to them. However in order to do so in the best possible the Project authorities need affected people collaboration for the following: as soon as the documentation is available please register your land parcels to avoid complexity and delays in

90 land acquisition and receipt of compensation. The cost of registration of land parcels will be included in the replacement cost of land.

Contact Information

16. For any information and advice, please feel free to approach the following contacts: MDF office Tbilisi, Georgia

Survey Team: Avto Oqromchedlishvili – Mob: 577 500894 Malkhaz Komladze – Mob: 599 360322

91 ANNEX C. Public Consultation Report

Current Status of Public Consultations and Plans for Further Consultations

Currently, the process of public consultations is ongoing. One large meeting has been conducted with business representatives (July 18), and the other with the residents of apartment buildings losing their garages (July 12). Meetings in smaller groups (7 – 10 affected households) were conducted during the period of July 7 – July 12. The Survey Team is continuing consultations on individual level with each affected household.

After completion of draft LARP, draft EIA and Design for section 2 Ponichala, the brief summary and supplemented information leaflet will be disclosed publicly and public consultations will be continued. During the LARP finalization process consultation meetings will be conducted with all project affected families. The meetings with larger group of affected households will be carried out in Municipal Offices.

Consultations Conducted During July 7 - 18

Overview The meeting were facilitated by:  Keti Dgebuadze – Ltd. “WEG” Social/Resettlement Expert,  Avto Okromchedlishvili – Representative of Audit Company “Atos” hired by the “Dohwa” Ltd.  David Baindurashvili, MDFG  Revaz Gigilashvili, MDFG  Otar Nemsadze, MDFG  The meeting with business sector was attended by Medgar Chelidze – ADB Resettlement Consultant;

The meetings were attended by the members of affected households, their neighbors and representatives of affected businesses (see attached lists).

The presentations (based on the leaflet present in Annex 3)were followed by a Questions and Answers session. The questions and comments of participating parties were replied by the relevant experts of the project: Questions and answers are presented in the tables below.

92 July 8, 2013, Meeting with Affected Households, Ponichala

Issues Raised by Participants and Answers

No. Question/Comment Author Answer 1. When will the Askerova Elmira The construction of road will start in construction of road February - March 2014. start? The process of resettlement and compensation will start in October - December of 2013. 2. What is the land Local Population At present the research/evaluation compensation price? process of identification of market rate for land compensation is underway. Evaluation methodology implies identification of market price on the basis of actual transactions recorded in National Agency of Public Register and real market proposals reflected in data bases of the real estate traders and advertizing sources (electronic sources and periodical publications) 3. In case when only part Natia Jgenti The viability of the residual land parcel of the whole land will be estimated by the independent parcel is affected, is the auditor. In case where residual land residual land parcel parcel is considered unviable, the subject for owner will be asked to make a choice: compensation? to get cash compensation for the residual land or to keep the land under the ownership.

The auditing company will inform the Municipal Development Fund (MDF) of Georgia about this kind of cases and if it is confirmed that the residual land parcel is unviable, the Government will acquire this residual land parcel.

Land for land compensation is limited and is possible only in that case when there is a land available in reserve. 4. We do not want to go Alieva Sevda You will get compensation for the lost to apartments. We live land and structures in amount in private houses and sufficient to buy similar land and would like to get construct the same type buildings. In possibility to live in the case if you will buy similar existing same type of house, you can even make some environment and the savings. same type of houses. 5. If AP would not like to Local population The project is of Public Interest and for sell the land plot what such cases the Eminent Domain Law will happen in this is in force. According to this law, The case? land plot needed for the projects of public interest will be expropriated upon the Court decision. The landowner will receive fair compensation defined by the Court in accordance with expropriation rules

93 No. Question/Comment Author Answer set forth in Eminent Domain Law. AP may request allocation of similar land plot instead of getting cash compensation (if it is possible). However, in most cases there are no available public land plots in reserve. 6. How the trees will be Aliev Solnmas Compensation value of trees will be compensated? defined according to the cash compensation at market rate on the basis of type, age and productive value of the trees.

Signed Attendance List

94 July 9, 2013, Meeting with Affected Households, Ponichala

Issues Raised by Participants and Answers

No. Question/Comment Author Answer 1 Is the mentioned alignment Minor changes can be envisaged, but it will final or some changes will be insignificant for main alignment. be envisaged? 2 We have documents of Based on these documents you will be able Shevardnadze period, are to start registration process in NAPR. these documents enough for registration process? 3 When the compensation Local population Compensation process will start before process will start? commencement of construction activities, and only after that construction process will start. Presumably compensations will be paid during November – December 2013; 4 Some houses will be Local population All AHs regardless of their legal ownership/ destroyed during the road registration status will receive cash construction, how the compensation for loss of building/ structures at compensation will be full replacement costs free of depreciation and implemented in this case ? transaction costs.

5 We do not want to go to Saladin You will get compensation for the lost land apartments. We live in Pashaev and structures in amount sufficient to by private houses and would similar land and construct the same type like to get possibility to live buildings. In case if you will by similar in the same type existing house, you can even make some environment and the same savings. type houses. 6 Will we have enough time Saladin After receiving the compensation you will be for construction of new Pashaev given about 6 months for house house? construction or purchasing existing house, if this period is not enough, this issue should be agreed with RDMRDI.

Signed Attendance List

95

July 10, 2013, Meeting with Affected Households, Ponichala

Issues Raised by Participants and Answers

No. Question/Comment Author Answer 1 In case if the The LAR process is conducted under the compensation price will Eminent Domain law and in case of not be acceptable for disagreement, the land will be us, what is the expropriated upon the court decision. scenario: will be land Court will review the prices provided by taken anyway? independent auditors, who has prepared RAP, proposal of your valuators and besides, the Court can engage other independent auditors. The Court decision is final. No land acquisition is done before the payments are executed according to the Court decision. The issue could be solved at pre-litigation stage through negotiations and Grievance Redress Mechanism. In the information booklets you can find Claims and Comments Submission Forms. 2 How is the registration Local population There will not be a problem with land and compensation registration process on heir apparent after process handled in submission of the relevant documents to case if the owner of the NAPR. land has died? 3 What are the prices for Tabatadze Anaida The price have not been determined yet – land and how the price but you will be informed about the rates, has been determined? when the draft RAP is disclosed. The rates for different land plots will be derived based on the official transactions related to selling/purchase of similar land plots during the recent years and official proposals advertised by real estate companies. CONSULTANT of the MDF will come to each APs and will prepare precise and accurate land parcel maps with detailed measurement and geometric descriptions. They will prepare a special matrix, where everything will be defined. For each landowner inventory will be made together with landowner, which will be signed after reviewing and agreement by the landowner. After defining the compensation price contract will be prepared. In the mentioned case contract will be signed between the MDF and the landowner. 4 In case when only part The viability of the residual land parcel will of the whole land be estimated by the independent auditor. parcel is affected, is the In case of residual land parcel is residual land parcel considered unviable, the owner will be subject for asked to make a choice: to get cash compensation? compensation for the residual land or to keep the land under the ownership. 96 No. Question/Comment Author Answer The auditing company will inform the MDF about this kind of cases and if it is confirmed that the residual land parcel is unviable, the Government will acquire this residual land parcel. Land compensation for land is restricted and is possible only in that case when there is a land available in reserve. 5 If AP would not like to Sukhishvili Izolda The project is of Public Interest and for sell the land plot what such cases the Eminent Domain Law is in will happen in this force. According to this law, The land plot case? needed for the projects of public interest will be expropriated upon the Court decision. The landowner will receive fair compensation defined by the Court in accordance with expropriation rules set forth in Eminent Domain Law. AP may request allocation of similar land plot instead of getting cash compensation (if it is possible). However, in most cases there are no available public land plots in reserve. 6 We do not want to go Setrakian Rita You will get compensation for the lost land to apartments. We live and structures in amount sufficient to by in private houses and similar land and construct the same type would like to get buildings. In case if you will by similar possibility to live in the existing house, you can even make some same type environment savings. and the same type houses. 7 When the Local population Compensation process will start before compensation process commencement of construction activities, will start? and only after that construction process will start. Presumably, payments will be done in November – December 2013;

97 Signed Attendance List

98 July 12, 2013, Meeting with Affected Households, Ponichala

Issues Raised by Participants and Answers

No. Question/Comment Author Answer 1. When the construction Local resident The construction of road will start in of road will start? February - March 2014. The process of Resettlement and compensation will start in October - December of 2013. 2 Is the mentioned Local resident Changes can be envisaged, but it will alignment final or some be insignificant for main alignment. changes will be envisaged? 3 How the harvest will be Local resident In any case, crop compensation for 1 compensated? year will be given to APs in cash at market rate by default at to gross crop value of expected harvest, even in case if you already taken this year crop before starting the land acquisition process. As for prices of the trees – it depends on type, age and productive value of the trees. 4 My land plot is affected Local resident Timber will be left under your possession. by the project, where I have timber, how it will be compensated?

5 In case if the Oganesian Andranik The LAR process is conducted under compensation price will the Eminent Domain law and in case not be acceptable for of disagreement, the land will be us, what is the expropriated upon the court decision. scenario: will be land Court will review the prices provided taken anyway? by independent auditors, who has prepared RAP, proposal of your valuators and besides, the Court can engage other independent auditors. The Court decision is final. No land acquisition is done before the payments are executed according to the Court decision. The issue could be solved at pre-litigation stage through negotiations and Grievance Redress Mechanism. In the information booklets you can find Claims and Comments Submission Forms. 6 In case when only part Basilov Eduard The viability of the residual land parcel of the whole land will be estimated by the independent parcel is affected, is the auditor. In case of residual land parcel residual land parcel is considered unviable, the owner will subject for be asked to make a choice: to get compensation? cash compensation for the residual land or to keep the land under the ownership. The auditing company will inform the MDF about this kind of cases and if it is confirmed that the residual land

99 parcel is unviable, the Government will acquire this residual land parcel. Land compensation for land is restricted and is possible only in that case when there is a land available in reserve. 7 We do not want to go Todadze Irma You will get compensation for the lost to apartments. We live land and structures in amount in private houses and sufficient to by similar land and would like to get construct the same type buildings. In possibility to live in the case if you will by similar existing same type environment house, you can even make some and the same type savings. houses.

Signed Attendance List

100 July 12, 2013, Meeting with Residents of a Five-Storey Building, Ponichala

Issues Raised by Participants and Answers

No. Question/Comment Author Answer The residents were strongly opposing the construction of the new road, although the residential building is located at a distance of 18m from the edge of the planned road and no direct impact on the apartment building is envisaged. Affected are only garages. However people have two major claims: traffic will worsen quality of air and noise their apartment building is not in a good condition and construction activities and traffic related vibration may easily damage the building The residents refused even to discuss the problem and to take information leaflet (only 6 leaflets have been distributed). The Consultants managed to inform the people about ADB regulations and approaches but no questions/answers session could be conducted under the specific circumstances. The residents have intention to write letter against the project to MDF and Mayor’s office.

101 July 18, 2013, Meeting with Affected Business Representatives

Issues Raised by Participants and Answers

No. Question/Comment Author Answer 1 What happens in case if GMP The project is of Public Interest and for such we do not accept project representative cases the Eminent Domain Law is in force. and proposed According to this law, The land plot needed compensation for the projects of public interest will be expropriated upon the Court decision. The landowner will receive fair compensation defined by the Court in accordance with expropriation rules set forth in Eminent Domain Law. 2 Current market prices are Representative The land is compensated at replacement low. The compensation of business cost based on evaluation of actual may not be fair in that transactions. For that price you can buy case. similar land at present. The structures are compensated at replacement cost – the price is based on cost estimation for building similar new structure at the same place. This price is even higher than market price. This compensation is enough to purchase similar existing structure and make some additional savings, or to construct new similar structure. 3 We have the hotel with This case will be subject to more detailed associated restaurant. analysis. The income losses should be Restaurant will be compensated fairly. destroyed but the losses are not limited to direct loss of restaurant income and assets, but also there are expected indirect losses: significant reduction of hotel income, which was supported by operations of restaurant. 4 How is scheduled the start The construction of road will start in up date for construction? February - March 2014. The process of Resettlement and compensation will start in October - December of 2013. 5 In case of network of gas- MDF will agree with the Tax Department filling stations we have that the incomes in such cases are only aggregated figures of estimated based on the separate cost incomes from all stations estimations provided by businesses (this submitted to tax report will be considered as acceptable, department. What the although it is not submitted to Tax document should we Department). provide to confirm net income of the affected station? 6 When the LARP The process of Resettlement and implementation will finish compensation is planned to start in October - December of 2013 and will be finished for February 2014;

102 No. Question/Comment Author Answer 7 How will be compensated The movable assets will be purchased by the movable assets, in the Government (MDF as Executive case if we do not continue Agency) and they will decide what to do with the business at other sites the assets. and finish our business activity? 8 In case if the In RAP it will be clearly determined, that the compensation payment is compensation prices are free of based on a depreciation and taxes. Either the MDF, as sales/purchase Executive Agency, will negotiate with the agreement, will be we Government to exempt you from tax imposed to pay taxes? payments, or the tax amounts will be added to the net compensation price given to you and later you will pay taxes. 9 I am shareholder and at Yes, in addition to the compensation of assets the same time – employee and business losses, you will receive 3 of the affected plant. Am I allowance in amount of 1 month minimum eligible also for subsistence for losing job. compensation of job? 10 How will be distributed the To each shareholder according to their compensation – to shares defined in the shareholders company or to each agreement. shareholder? 11 When are the The process of Resettlement and compensations planned to compensation will start in October - be paid December of 2013. 12 As you have mentioned Under the project for business losses cash for business losses you indemnity of 1 year net income will be will provide cash provided. At the same time land plot will be indemnity of 1 year net fully acquired under the project according to income, though I would the owners desire. For buildings/structures say that the business is losses cash compensation at full not only income and for replacement costs free of depreciation and launching the business transaction will be provided; Also, for activities certain equipment installation/de-installation and investments are needed. transportation expenses special allowances Part of investments is will be provided. Bank loan % to be paid and made based on bank obligations against third parties will be loans and certain assessed as a special case to define fair obligations against third compensation. This will be done by the parties. Consultant and MDF in consultation with you.

103 Signed Attendance List

104

105 August 17, 2013, Meeting

Issues Raised by Participants and Answers

On August 17, 2013 the Public Hearing Meeting on Tbilisi-Red Bridge Motor Road (Section 2 Ponichala) Modernization Project Preliminary Environment Impact Assessment Report was held at the facilities of the Municipal Development Fund.

The following persons attended the meeting:  Irina Asatiani – Chairwoman of the Homeowners Community MADLI  Eter Tsintsadze – Representative of the Director, SHTRABAVI Ltd.  Anzor Gvishiani – resident of # 12 v/g Rustavi HW;  Shorena Machitadze - resident of # 12 v/g Rustavi HW  Aniko Nizharadze - Chairwoman of the Homeowners Community SINATLE  Peride Naskhidashvili - resident of # 30 Rustavi HW  Elkhan Bagirov - resident of # 28A v/g Rustavi HW  Ekaterine Jabanashvili - resident of # 12 Rustavi HW  Asmat Naniashvili - resident of # 12 v/g Rustavi HW  Avtandil Gogaladze - resident of # 30 Rustavi HW  Iana Jariashvili - resident of # 28 Rustavi HW  Zurab Dzidzikashvili - resident of # 28 a Rustavi HW  Davit Gelenidze - resident of # 28 Rustavi HW  Vakhtang Abzhandadze - resident of # 28 a Rustavi HW  Nikoloz Gelashvili - resident of # 28 Rustavi HW  David Gelenidze - resident of # 28 Rustavi HW  Vakhtang Abzandadze – owner of the land parcel located in # 1 Rustavi HW.  T. Kikoleishvili – Sociologist, Civil Society  M. Dekanoidze - owner of the land parcel located in # 1 Rustavi HW.  Paata Charakhashvili – Head of International Relations Department, MDFG  Giga Gvelesiani - Head of International Relations Office, MDFG  Revaz Gigilashvili – Leading Specialist, International Relations Department, MDFG  Aleksandre Dumbadze - Head of the Department of Environmental Protection Assessment and Resettlement.  Ana Rukhadze – Leading Specialist at the Department of Environmental Protection Assessment and Resettlement  Lela Shatirishvili – Social Safeguard and Resettlement Consultant, MDFG  Medgar Chelidze – Environment Protection Specialist, DOHWA.

The meeting was opened by P. Charakhashvili, the Head of International Relations Department at MDFG. He provided the attendees with brief information on the project and discussed objectives of the public hearing meeting. He clarified that the meeting was dedicated to the review of the preliminary assessment of the road project environmental impact. In addition, he confirmed that Road Project Environment Impact Assessment Report would be prepared and that additional Public Hearing Meeting would be organized as well.

Medgar Chelidze introduced the results of the preliminary environmental impact assessment and discussed important topics of project impact on environment and the planned mitigation measures.

A discussion followed the presentation. The meeting attendees asked questions of the project initiators and shared personal opinions and comments.

Most of the comments and questions raised by the meeting attendees addressed the impact of road construction and operation to the amortized residential multi-apartment buildings. According to the attendees, the blocks of apartments located at the address Rustavi HW (No. 12 V/G, No. 8, No. 10, No. 12 and No. 28) are condemned, but the block of apartments at No.

106 28 is amortized. The residential block of apartments (No. 28 A) is built on soft soil. In the Soviet period the structure was qualified as condemned and some reinstatement efforts were undertaken to this building.

Residents were concerned that road construction and operation would worsen the condition of their condemned residential houses.

Therefore, they believe that at first these structures need to be assessed against project impact and then the decision needs to be made to resettle the residents. With respect to these issues, M. Chelidze explained that the process to assess the sustainability of these dwellings is ongoing. Additionally, he kindly requested the attendees to present to the MDFG official documents verifying that these structures are condemned, if any are available. If in this case, the condemned condition of these structures is confirmed and road construction and operation might worsen the physical condition of these structures, either the buildings will be reinforced or the residents resettled.

The meeting attendees raised the following questions and comments:

What is the distance between motor road and M. Chelidze presented the road project design the residential buildings located in Ponichala and provided information on the projected Rustavi HW (No. 12 V/G, No. 28 and No. 28 distance between the road and the residential A). buildings; as well as the planned activity to create a green belt. Will road project impact the garages? (Will Some garages will be demolished and relevant they be demolished?) cash compensation will be issued. Road construction will increase the level of The meeting attendees were informed about dust and noise. Some residential multi- the future limitations with regard to the existing apartment buildings will experience increased road, such as speed limits, restriction on dust and noise, since these structures will transit traffic, watering of the construction area appear in between two motor roads. to minimize the dust impact; additionally, special "curtains" will be installed; in order to reduce the noise special barriers will be constructed, and installation of double-frame modern windows will be considered for the residential blocks located in immediate vicinity of the road. Market value of apartments will significantly decrease due to road construction Are there any blasts planned along the project No, blasts are not planned. ROW? In order to minimize project impact to Due to the complicated landscape and residential blocks (No. 28 and No. 28 A) the engineering and geological conditions, from projected road should be extended down technical point of view, such change in road along the Mtkvari river and then turn to the direction is impossible. right at Research Institute.

The meeting attendees considered the suggested limitations such as speed limits, as insufficient mitigation measures. They mentioned that within their residential area, even today the speed limit is 40 km/h for automobiles, but this is rarely observed by motorists. A constant flow of high speed traffic continues 24 hours per day. A further assumption was that during the construction process, insufficient mitigation measures would be applied to minimize the impacts of noise and dust.

At the end of the meeting, P. Charakhashvili summarized the shared comments and suggestions. The meeting attendees were asked to present their documents on condemned residential structures, if available. These documents would be reviewed to determine technical

107 stability of these structures, and to make a decision whether these structures require strengthening or if there was a need for resettlement of the residents.

Signed Attendance List

108

109 ANNEX D. Methodology for Computation Compensation Rates for Affected Land Plots Crops

Methodology

Land has been valued at replacement cost based on the average market value. That is based on the average sale value of comparable land in type, location and features. Based on the average market sales, adjustments were made according to the comparison parameters, in the following sequence as applicable:

(i.) Actual sale status of reference land plots (completed transactions or proposals for sale) (ii.) Sales dynamics at the market (trend of prices and the sale date); (iii.) Location; (iv.) Physical parameters; (v.) Economic parameters; (vi.) Use; (vii.) Existence of real estate property.

Determination of Land Compensation Price

Comparison The land plots to be valuated are located between Tbilisi and Rustavi, at the Phonichala - Rustavi section of the Tbilisi – Rustavi highway, starting from km (10.5 near Phonichala settlement), following right bank of r. Mtkvari and finishing near the entrance in Rustavi City (km 17.1).

Information related to reference land plot (analog) prices has been obtained from NAPR, Real Estate Companies and sale advertises on different web-sites. The available information is related to the non-agricultural (commercial) land plots. Information about analogs is available both for the starting subsection (subsection 1: km 10.5 14.5) and for the second subsection (subsection 2: km14.5 – 17.1) of the road and thus calculations are related to corresponding subsections. Results are given in table 1.

Reconciliation of the adjusted prices of compared assets was carried out based on a calculation of the average weighted value of the 10 reference land plots for subsection1 and 11 reference land plots for subsection 2. During the reconciliation of the adjusted prices more value was attached to those reference land plots, which were the most comparable to the valuated asset so that the smallest adjustment was necessary.

Calculation of Land Market Rates of plots between Km 10.5 and 17.1

With the use of the average weighted value, the price of the valuated asset was calculated by means of the following formula:

Vwa = ∑(Pi x Ri ) /∑ Ri (i= 1 … n; n = 10 for subsection 1 and 11 for subsection 2 )

Where: Vwa- is the Average Weighted Value of Market Price for 1 sq.m land plot; Pi - is the Corrected (adjusted) selling price of each comparable reference land plot Ri – is the rating weight of the adjusted price of each comparable reference land plot. ∑ R – is the sum of the rating weights n = 10 for 1st subsection (km 10.5-14.5) and 11 for the 2nd subsection (km14.5 – 17.1)

Average weighted value (Vwa) better represents the real market price of the affected land plots than simple average of corrected prices of the reference land plots. (∑Pi /n). The rational for introducing weighted values is explained in more details in the table 2, p. 8. 110

Thus, calculation of the market prices of 1m2 area of valuated property, carried out with the use of average weighted value is given shown in Table N1. This table represents market prices of commercial land plots

Market prices for agricultural land plots have been derived from the prices of commercial land plots located in the same area. Agricultural land costs less than commercial land and the difference is approximately equal to the official compensation fees that should be paid to change category of the land plot from agricultural to non-agricultural.

111

($)

($)

Pi

address Ri Vi

No

∑ R

(GEL)

(USD)

Price of Price

Location

Proposal

source source

Correction Correction

Description

adjusted price adjusted

cted price of 1 sqm sqm 1 of cted price

1 market price of 1 m2 m2 1 of price market 1

1 Market priice of 1 m2 1 of priice Market 1

rating weight of the the of weight rating

Transactions (Deal) / / (Deal) Transactions

Source of Information of Source

per 1 sqm of Land plot Land of 1 sqm per

Corrected price of 1 m2 of price Corrected

Physical Characteristics Physical

Corrected price of 1 m2. 1 m2. of price Corrected

Correction for Proposals for Correction

Sum of the rating weights the rating Sum of

Price of 1 sqm declared in in sqm declared of 1 Price

Proposal/transaction (USD) (USD) Proposal/transaction

Vwa Vwa

Corre Vwa 1 615 sq.m non- Tbilisi, village ponichala 73 $ /1sq..m. Public register data 73 Transa No 73 same no 73 sa no 73 2.0 8.0 18.3 65 108 agricultural rustavi highway (Transactional) 10.05.2013წ ctional me land plot adjacent I line cad. code 81.05.05.742 2 180sq.m Tbilisi vollage ponichala 83 $ /1sq.m. Public register data 83 Transa No 83 worse 20 103 bet -30 73 1.0 9.1 agricultural 200 m distance from (Transactional) 15.04.2013წ ctional ter land plot Rustavi highway. Cad. Code 01.18.13.016.025

3 1501sq.m Tbilisi village ponichala, 42 $ /1sq.m. Public register data 42 Transa No 42 worse 15 57 wo 20 77 1.0 9.6 Agricultural 150 m distane from (Transactional 15.04..2013წ ctional rse Land Rustavi highway cad. Code. 81.05.05.087 4 1960 sq. m. Tbilisi village Ponichala 22 $ /1sq.m. Public register data 22 Transa No 22 worse 40 62 bet -30 32 1.0 4.0 Agricultural 1000 m distance from (Transactional) 28.06..2013წ ctional ter Land Rustavi highway cad. Code 01.18.13.026.019

5 4000 sq. .m. Tbilisi village ponichala 27 $ /1sq.m. http://makler.ge/?la 27 offer -10% 24 worse 30 54 wo 20 74 1.0 9.3 Agricultural along the road in front (offer ) n=1&pg=ann&id=28 rse Land of forest park. . 41913 2471020; 0790919293 6 2800 sq. m. Tbilisi village ponichala 25 $ /1sq.m. http://makler.ge/?la 25 offer -10% 23 worse 20 43 wo 20 63 1.0 7.8 Agricultural 200 m distance from (offer ) n=1&pg=ann&id=84 rse Land Rustavi tel 2471020; 00353 0790919293;

7 1500 sq..m. Tbilisi village ponichala 20 $ /1sq.m. http://www.saqme.g 20 offer -10% 18 worse 20 38 wo 20 58 1.0 7.3 Agricultural 50 m distance from (offer ) e/ganckhadebebi/m rse Land Rustavi highway iwa- tel595584826 TbilisSi/iyideba/foni Wala/1268876- miwis-nakveTi- qvemo-foniWalaSi- SesaZlebelia.html

112 In all analogues (offer) in all comparison elements related to further sale expenses 10 % adjustments are made. Implies that on market as a rule offered price includes 10 % margin which is possible discount volume or broker interest.

The second adjustment is made in terms of physical location, which is caused by prestigious, utilities and by level of infrastructural development. Volume of this adjustment is determined by broker questioning.

The third adjustment is made in terms of physical characteristics, which is resulting from configuration of the land plot, existence of improvement works (fencing, facing and etc. ) and its possible application.

Marked Value Determination

Reconciliation of adjusted costs of comparable data was performed through calculation of the volume weighted average. During outcome reconciliation, greater specific value is attributed to the analogue, which is the most similar one to the subject property in terms of its characteristics, which was least adjusted and is based on the most reliable information. Market value of 1sq.m. of the subject property was calculated with the following formula, by application of the volume weighted average:   n      Ri  V wa  Pi n  i1   R   i1  Vwa- Volume weighted average Pi - Adjusted sales (offered) price of each comparable analogue R – Total of rating weights of adjusted prices of comparable analogues. Ri – Rating weight of adjusted price of each comparable analogue Note: 1sq. market value is calculated for agricultural land plots existing adjacent to highway

Thus cost of non-agricultural land plots always exceeds cost of agricultural land plots, for evaluation it became necessary to develop “Matrix calculating land plots compensating amount” which is based on existing requirements and supply frequency on market and analyze of price ration. Analyze is carried out based on data obtained from real estate agencies and consultations held with Public Register Agency.

Matrix for calculating land plots compensation amount.

Non-agricultural Agricultural # Location $ GEL $ GEL From the beginning of the section from km4+0 to km 5+200, in 1 65 108 61 100 the Rustavi highway adjacent zone I From km5+200 to km5+740, in the residential district on the 2 33 54 27 45 River Mtkvari right bank From km5+740 to km6+700, in the industrial zone of the non- 3 15 25 12 20 residential district on the right bank of river Mtkvari From km6+700 to km6+820 mixed zone (residential and 4 27 45 24 40 industrial) From km6+820 to km7+450 uninhabited and underdeveloped 5 13 22 11 19 section, up to the Marneuli street adjacent residential zone From km7+450 to km7+800, Marneuli street adjacent land 6 27 45 24 40 plots up to the factory of GMP Ltd. From km7+800 to km9+350, from the GMP factory up to the 7 Zooveterinary Institute turn, in the Rustavi highway adjacent 65 108 61 100 zone I From km7+800 to km9+350, at 1200 m distance from the 8 GMP factory to the Zooveterinary Institute turn, in the Rustavi 46 75 39 65 highway adjacent zone II. From km9+350 to km10+755, from the Zooveterinary Institute 9 turn up to the end of the section, in the Rustavi highway 33 54 27 45 adjacent area. 113 ANNEX E. Methodology for Computation of Compensation Rates for Perennial Crops

Compensation rates for perennial crops are calculated according to the following formula:  Seedlings: are not compensated but the owner receives compensation for transplanting costs.  Fruit Trees in Productive Age: The value of these items is defined according to the following parameters:  Product of the tree at the productive stage or age of the tree at the moment of cutting (which is defined by tables prepared by the consultants based on figures from the Department of Statistics of Georgia and recognized academic publications which detail the average productivity of a tree within intervals of 5 years) of the tree at the moment of cutting;  Average net value (deduced of inputs) of future produce lost at farm gate market price based on number of productive years from the year a tree is cut to the year when a tree will stop production), and;  Number of years needed to re-grow the tree at the productive stage (age) in which it was cut.

The valuation of the tree obtained is discounted for: the value of yearly productive inputs (the future income to be compensated is virtual and therefore should not involve productive inputs costs). The formula to compensate one productive tree will thus be:

C= (K*V*L) - M

Where:  C=compensation value of tree.  K =average annual productivity of 1 tree for remaining productive years  V=market price at farm gate of 1 kg product  L =years to be compensated (years needed for growing up a tree of the same rate of productivity as the one cut.  M = average annual expenses for agricultural works The following table presents applicable compensation rates for perennial crops:

Years

(GEL) (GEL)

dling (GEL) dling

Valueof

Average

(kg/year)

Age when

year(GEL)

productivity

Treespecies

Expensesfor

Agecategory

reinstatement

considered for

see Income one for

one yearone (GEL)

Valueof kg one

Price oftree one productionstarts young (<5) 2 3 5 5 2.0 4 3 5 5-10 10 3 10 5 2.0 20 10 100 10-15 50 3 10 5 2.0 100 80 200 15-20 50 3 10 5 2.0 100 80 200

20+ 35 3 8 5 2.0 70 60 80 Ayva young (<5) 4 3 5 2 1.5 6 4 10 5-10 20 3 5 2 1.5 30 8 110

10-15 20 3 5 2 1.5 30 8 110 15-20 15 3 5 2 1.5 23 5 88

20+ 11 3 5 2 1.5 17 5 58 Apricot young (<5) 3 3 5 5 1.0 3 2 5 5-10 30 3 7 5 1.0 30 10 140

10-15 30 3 7 5 1.0 30 10 140 15-20 15 3 7 5 1.0 15 10 35

20+ 10 3 7 5 1.0 10 10 0 Peach young (<5) 3 3 5 5 2.0 6 3 15

5-10 10 3 7 5 2.0 20 10 70

10-15 20 3 7 5 2.0 40 20 140 Fig 114

Years

(GEL) (GEL)

dling (GEL) dling

Valueof

Average

(kg/year)

Age when

year(GEL)

productivity

Treespecies

Expensesfor

Agecategory

reinstatement

considered for

see Income one for

one yearone (GEL)

Valueof kg one

Price oftree one productionstarts 15-20 20 3 7 5 2.0 40 20 140 20+ 10 3 7 5 2.0 20 10 70 young (<5) 3 3 5 5 2.0 6 3 15 5-10 10 3 7 5 2.0 20 10 70 10-15 20 3 7 5 2.0 40 20 140 15-20 20 3 7 5 2.0 40 20 140

20+ 10 3 7 5 2.0 20 10 70 Persimmon young (<5) 3 3 5 5 2.0 6 3 15

5-10 10 3 7 5 2.0 20 12 56 10-15 20 3 7 5 2.0 40 25 105 15-20 20 3 7 5 2.0 40 25 105

20+ 10 3 7 5 2.0 20 12 56 muSmala young (<5) 2 3 5 5 2.0 4 3 5 5-10 10 3 10 5 2.0 20 10 100

10-15 50 3 10 5 2.0 100 80 200

15-20 50 3 10 5 2.0 100 80 200

20+ 35 3 8 5 2.0 70 60 80 Apple young (<5) 2 6 5 5 2.0 4 3 5 5-10 10 6 10 5 2.0 20 11 90 10-15 60 6 15 5 2.0 120 100 300 15-20 60 6 15 5 2.0 120 100 300

20+ 60 6 13 5 2.0 120 100 260 Peer young (<5) 3 5 5 4 1.5 5 1 18 5-10 10 5 10 4 1.5 15 8 70 10-15 30 5 10 4 1.5 45 32 130 15-20 25 5 10 4 1.5 38 26 115

20+ 7 5 10 4 1.5 11 5 55 Plum young (<5) 2 10 5 5 5.0 10 3 35 5-10 4 10 10 5 5.0 20 10 100

10-15 20 10 15 5 5.0 100 80 300 15-20 30 10 20 5 5.0 150 130 400

alnut 20+ 30 10 20 5 5.0 150 130 400 W young (<5) 4 3 5 2 1.5 6 4 10

5-10 7 3 8 2 1.5 11 4 52

10-15 15 3 8 2 1.5 23 5 140 15-20 12 3 8 2 1.5 18 5 104

20+ 10 3 8 2 1.5 15 5 80 Hazelnut young (<5) 10 3 3 1 1.0 10 5 15 5-10 15 3 5 1 1.0 15 10 25

10-15 30 3 5 1 1.0 30 15 75 15-20 30 3 5 1 1.0 30 15 75

20+ 25 3 5 1 1.0 25 15 50 Grapes young (<5) 3 3 3 1 1.0 3 2 3 5-10 15 3 5 1 1.0 15 13 10 10-15 15 3 5 1 1.0 15 13 10

15-20 15 3 5 1 1.0 15 13 10

20+ 10 3 5 1 1.0 10 9 5

Grapes (in row) young (<5) 10 3 3 1 1.5 15 7 24

5-10 15 3 5 1 1.5 23 11 58

10-15 30 3 5 1 1.5 45 20 125 Kiwi 115

Years

(GEL) (GEL)

dling (GEL) dling

Valueof

Average

(kg/year)

Age when

year(GEL)

productivity

Treespecies

Expensesfor

Agecategory

reinstatement

considered for

see Income one for

one yearone (GEL)

Valueof kg one

Price oftree one productionstarts 15-20 30 3 5 1 1.5 45 20 125 20+ 25 3 5 1 1.5 38 20 88 young (<5) 2 3 3 1 4.0 8 3 15 5-10 4 3 5 1 4.0 16 8 40

10-15 6 3 5 1 4.0 24 10 70

15-20 6 3 5 1 4.0 24 10 70

20+ 4 3 5 1 4.0 16 10 30

Black currant young (<5) 10 3 3 1 1.5 15 7 24 5-10 15 3 5 1 1.5 23 11 58 10-15 30 3 5 1 1.5 45 20 125 15-20 30 3 5 1 1.5 45 20 125

20+ 25 3 5 1 1.5 38 20 88 Feikhao young (<5) 4 3 5 2 1.5 6 4 10 5-10 20 3 5 2 1.5 30 8 110

10-15 20 3 5 2 1.5 30 8 110

15-20 15 3 5 2 1.5 23 5 88

20+ 11 3 5 2 1.5 17 5 58

Mul berry young (<5) 8 3 3 1 1.5 12 7 15 5-10 15 3 5 1 1.5 23 11 58 10-15 34 3 5 1 1.5 51 20 155

Cherry 15-20 34 3 5 1 1.5 51 20 155 20+ 25 3 5 1 1.5 38 20 88

young (<5) 2 10 5 5 5.0 10 3 35

5-10 6 10 10 5 5.0 30 10 200 10-15 20 10 15 5 5.0 100 80 300

Almond 15-20 20 10 15 5 5.0 100 80 300

20+ 20 10 15 5 5.0 100 80 300

young (<5) 4 3 5 2 1.5 6 4 10 5-10 15 3 5 2 1.5 23 8 73 10-15 20 3 5 2 1.5 30 8 110 15-20 15 3 5 2 1.5 23 5 88

Pomegranate 20+ 11 3 5 2 1.5 17 5 58

young (<5) 4 3 5 2 1.5 6 4 10

5-10 10 3 5 2 1.5 15 8 35 10-15 20 3 5 2 1.5 30 8 110

Capers 15-20 15 3 5 2 1.5 23 5 88

20+ 11 3 5 2 1.5 17 5 58

young (<5) 4 3 5 2 1.5 6 4 10 Others

116 ANNEX F. Building Valuation Methodology – Example of Calculation Sheet

Construction estimate for 1H-Code building Materials Wage Unit of Unit No. Work description Qty Unit Total meas. sum pric sum price e 1 2 3 4 5 6 7 8 9 Treatment of continuous footings with an excavator and loading on m3 30,80 0,00 3 92,40 92,40 1 dump trucks m3X1.23 Diesel fuel l 11,55 1,9 21,95 0,00 21,95 Transportation of ground with dump trucks to the distance of 5 haul 10,00 0,00 40 400,00 400,00 2 km Diesel fuel l 40,00 1,9 76,00 0,00 76,00 Arranging a 10-cm-thick gravel m2 40,00 0,00 6 240,00 240,00 4 layer with hand Gravel m3 4,96 16,8 83,33 0,00 83,33 Arranging a monolithic reinforced concrete continuous footing over m3 29,50 0,00 45 1327,50 1327,50 50X80 cm with concrete M-200 by using a Motorized crane Concrete M-200 m3 30,72 123 3778,56 0,00 3778,56 5 Reinforcement A-III D-22 t 2,35 1520 3576,74 0,00 3576,74 Rolled wire A-1 D-8 t 0,89 1530 1364,57 0,00 1364,57 Making a column collar pcs. 921,60 0,00 0,2 184,32 184,32 Binding wire kg 330,73 3 992,19 0,00 992,19 Iron cutting stone pcs. 16,23 4 64,90 64,90 Making moulds, their arrangement to make a reinforced concrete m2 20,00 0,00 3 60,00 60 continuous footing 6 Wooden material 40 mm, Class 4 m3 0,27 390 104,00 0,00 104,00 Nails kg 4,00 2,3 9,20 0,00 9,2 Rolled wire A-1 D-6 t 0,010 1530 15,30 0,00 15,30 Arranging a horizontal dampproofing with ruberoid over m2 38,4 0,00 4 153,60 153,60 the continuous footings 7 Ruberoid m2 42,24 1,5 63,36 0,00 63,36 0,0307 Tar t 1195 36,71 0,00 36,71 2 Arranging a 10-cm-thick gravel m2 112,00 0,00 6 672,00 672,00 8 layer foundation with hand Gravel m3 13,89 16,8 233,32 0,00 233,32 Compaction of the gravel layer with a self-propelled road m2 112,00 0,00 2 224,00 224,00 9 compactor Diesel fuel l 16,80 1,9 31,92 0,00 31,92 Arrangement of a 10-cm-thick concrete layer with M-100 concrete m2 101,00 0,00 7 707,00 707 10 with hand Concrete M-100 m3 10,30 95 978,69 0,00 978,69 Arrangement of reinforced concrete columns with concrete M- m3 6,14 0,00 60 368,64 368,64 200 with the concrete section of 40X40 Concrete M-200 m3 3,13 123 385,41 0,00 385,41 11 Reinforcement A-III D-18 t 0,30 1520 448,44 0,00 448,44 Rolled wire A-1 D-6 t 0,0243 1530 37,25 0,00 37,25 Binding wire kg 1,60 3 4,79 0,00 4,79 Iron cutting stone 0 0,80 4 3,19 0,00 3,19

117 Construction estimate for 1H-Code building Materials Wage Unit of Unit No. Work description Qty Unit Total meas. sum pric sum price e 1 2 3 4 5 6 7 8 9 Making of hooks (collars) pcs. 129 0,00 0,2 25,80 25,80 Arrangement of wooden falsework m2 34,56 0,00 3 103,68 103,68 for columns 12 Wooden material 40 mm, Class 4 m3 0,23 390 89,86 0,00 89,86 Nails kg 3,46 2,3 7,95 0,00 7,95 Rolled wire A-1 D-6 t 0,004 1530 6,61 0,00 6,61 Arrangement of 40-cm-thick walls m2 46,00 0,00 17,2 791,20 791,20 with small blocks (single block) 13 Small block 40X20X20 pcs. 575,00 0,9 517,50 0 0,00 517,50 Black sand m3 1,91 22 42,10 0,00 42,10 Cement M-400 t 0,40 150 60,06 0,00 60,06 Arrangement of walls with a half- m2 110,70 0,00 8,6 952,02 952,02 block (20)cm 14 Small block 40X20X20 pcs. 691,88 0,9 622,69 0,00 622,69 Black sand m3 2,30 22 50,66 0,00 50,66 Cement M-400 t 0,5384 150 80,77 0,00 80,77 Arrangement of partitions at wet m2 155,95 0,00 10 1559,50 1559,50 points with a half-brick 3929,9 15 Brick pcs. 0,36 1414,78 0,00 1414,78 4 Black sand m3 2,69 22 59,14 0,00 59,14 Cement M-400 t 0,562 150 84,37 0,00 84,37 Arrangement of reinforced concrete blinding and beams with m3 6,16 0,00 60 369,41 369,41 concrete M-200, 40X20 cm Concrete M-200 m3 6,28 123 772,43 0,00 772,43 16 Reinforcement A-III D-14 t 0,65 1520 990,81 0,00 990,81 Rolled wire A-1 D-6 t 0,11 1530 163,38 0,00 163,38 Making column collars pcs. 385 0,00 0,2 76,96 76,96 Binding wire kg 7,59 3,5 26,55 0,00 26,55 Iron cutting stone pcs. 3,79 4 15,17 0,00 15,17 Arrangement of wooden moulds over the reinforced concrete m2 53,87 0 0,00 3 161,62 161,62 blinding 40X20 cm 17 Wooden material 40mm, Class 4 m3 0,72 390 280,13 0 0,00 280,13 Cellophane m2 59,26 1 59,26 0,00 59,26 Nails kg 10,77 2,3 24,78 0,00 24,78 Rolled wire A-1 D-6 t 0,0269 1530 41,21 0,00 41,21 Arrangement of roof with cast reinforced concrete, 18-cm thick m3 25,34 0,00 65 1646,89 1646,89 (with double reinforcement) Concrete M-200 m3 12,92 123 1589,38 0,00 1589,38 18 Reinforcement D-10 A-III t 0,4124 1520 626,78 626,78 Reinforcement D-12 A-III t 0,5919 1520 899,74 0,00 899,74 Binding wire kg 5,02 3 15,06 0,00 15,06 Iron cutting stone pcs. 2,51 4 10,04 0,00 10,04 Arrangement of wooden floors m2 114,00 0,00 8 912,00 912,00 Wooden floor material in plucker, 4 m2 2,39 500 1197,00 0,00 1197,00 cm-thick Wooden material on logs 19 m3 0,66 390 255,65 0,00 255,65 (0,06X0,12) cm Skirting lin.m. 87,50 3 262,50 262,50 Nails kg 7,62 2,3 17,53 0,00 17,53

118 Construction estimate for 1H-Code building Materials Wage Unit of Unit No. Work description Qty Unit Total meas. sum pric sum price e 1 2 3 4 5 6 7 8 9 Assembly of wooden doors unit m2 20,45 120 2454,00 15 306,75 2760,75 20 A 750-gr tank of vortex foam 0 1,70 8 13,63 0 13,63 Assembly of wooden window unit m2 22,00 100 2200,00 10 220 2420,00 21 A 750-gr tank of vortex foam pcs. 3,5 8 28,00 0 28,00 Arrangement of 20-25-cm-thick lin.m. 13,00 18 234,00 4 52 286,00 22 wooden window sills Wooden glue kg 0,39 3 1,17 0 1,17 Cutting and placing the glass in the m2 22,45 0,00 3 67,35 67,35 door units 23 Glass 4 mm (core) m2 10,50 10 104,95 0 104,95 Glass glazing lin.m. 65,22 0,4 26,09 0 26,09 Nails kg 0,0528 4,2 0,22 0 0,22 Arrangement of one-slope roof with wooden bearing structures m2 120,00 0,00 18 2160,00 2160,00 and smooth zinc-plated tin 24 Wooden material m3 2,40 450 1080,00 0,00 1080,00 Nails kg 6,00 2,3 13,80 0,00 13,80 Metal cast bindings kg 7,80 3,5 27,30 0,00 27,30 Smooth zinc-plated tin m2 120,00 9 1080,00 0,00 1080,00 Making and assembly of roof ridge lin.m. 42,00 0,00 12 504,00 504,00 25 and water intake ducts Smooth zinc-plated tin m2 18,48 9 166,32 166,32 Making and assembly of water pcs. 2,00 0,00 25 50,00 50,00 26 catch funnels Smooth zinc-plated tin m2 3,00 9 27,00 27,00 Making and assembly of water lin.m. 12,00 0,00 12 144,00 144,00 27 pipelines Smooth zinc-plated tin m2 4,36 9 39,20 39,20 Making a drainage system and its arrangement at the windows with lin.m. 26,00 0,00 3 78,00 78,00 28 sheet slates Smooth zinc-plated tin m2 8,11 9 73,01 73,01 Fired pins pcs. 104,00 0,1 10,40 0,00 10,40 Plastering 2-cm-thick façade walls m2 272,00 0,00 6 1632,00 1632,00 with cement mortar 29 Yellow sand m3 6,66 38 253,03 0,00 253,03 Cement M-400 t 2,04 150 306,44 0,00 306,44 Plastering 3 cm-thick interior walls m2 42,00 0,00 6 252,00 252,00 with cement mortar at wet points 30 Sand m3 1,56 38 59,37 0,00 59,37 Cement M-400 t 0,503 150 75,39 0,00 75,39 Plastering interior walls and partitions with plasterboard with m2 284,00 0,00 6 1704,00 1704,00 31 the thickness of 2.5 cm Plasterboard t 12,780 67 856,26 0,00 856,26 Plastering the ceilings with plasterboard with the thickness of m2 114,00 0,00 6 684,00 684,00 32 2.5 cm Plasterboard t 5,130 67 343,71 0,00 343,71 Making ceramic tiles on the walls m2 18,00 0,00 16 288,00 288,00 at wet points 33 Ceramic tiles m2 18,90 16 302,40 0 0,00 302,40 Gluing cement kg 90,00 0,5 45,00 0,00 45,00 119 Construction estimate for 1H-Code building Materials Wage Unit of Unit No. Work description Qty Unit Total meas. sum pric sum price e 1 2 3 4 5 6 7 8 9 Decorative cement for filling kg 9,00 0,9 8,10 0,00 8,10 furrows Decorative angle bar lin.m. 1,00 0,7 0,70 0,00 0,70 Arrangement of 4-cm-thick cement m2 12,60 0,00 6 75,60 75,60 lining at wet points 34 Black sand m3 0,67 22 14,77 0,00 14,77 Cement M-400 t 0,14 150 21,08 0,00 21,08 Arrangement of suspended m2 12,60 0,00 8 100,80 100,80 ceilings with plastic at wet points Plastic panel (a set with metal cramp, angle bars, CD and UD m2 13,23 12 158,76 0,00 158,76 35 initial profiles) Dowels with plastic cases pcs. 50,40 0,15 7,56 0,00 7,56 Screw pcs. 132,30 0,02 2,65 0,00 2,65 Iron dowel pcs. 50,40 0,1 5,04 0,00 5,04 Plastic angle bar lin.m. 13,86 0,7 9,70 0,00 9,70 Arrangement of ceramic tiles over m2 12,60 0,00 16 201,60 201,60 the floors at wet points Ceramic tiles m2 13,23 16 211,68 0,00 211,68 36 Glue kg 0,30 3,5 1,05 0,00 1,05 Gluing cement kg 63,00 0,5 31,50 0,00 31,50 Decorative cement for filling kg 6,30 0,9 5,67 0,00 5,67 furrows Refinement of floors and applying m2 156,00 0,00 7 1092,00 1092,00 3 layers of varnishing 37 Coated abrasive lin.m. 31,20 4 124,80 0,00 124,80 varnish kg 130,42 4,5 586,87 0,00 586,87 Double dyeing of ceilings with m2 228,00 0,00 3 684,00 684,00 38 aqueous dispersion Aqueous dispersion kg 102,60 3 307,80 0,00 307,80 Puttying, scraping and double dyeing of doors and windows with m2 62,50 0,00 5 312,50 312,50 oil-bound paint 39 Oil-bound paint kg 15,63 5,6 87,50 0,00 87,50 Solvent kg 5,21 4 20,83 0,00 20,83 Putty kg 15,63 0,5 7,81 0,00 7,81 Coated abrasive lin.m. 1,25 4,5 5,63 0,00 5,63 Arrangement of wall sputter on the m2 136 0,00 3 408,00 408,00 pane Cement t 0,22 150 32,64 0,00 32,64 40 Coarse-grain sand m3 0,65 38 24,81 0,00 24,81 PVA glue kg 20,40 3,5 71,40 0,00 71,40 Pigment boTli 6,80 5 34,00 0,00 34,00 Electricity 0 0 0 15,0 41 Assemblage of electric control unit pcs. 1,00 60,00 60 15,00 75,00 0 42 Assemblage of electric switches pcs. 11,00 6,00 66 6,00 66,00 132,00 43 Assemblage of electric sockets pcs. 19,00 6,00 114 6,00 114,00 228,00 44 Assemblage of service boxes pcs. 11,00 0,60 6,6 0,50 5,50 12,10 Assemblage of 25-amp electric 45 pcs. 4,00 7,00 28 5,00 20,00 48,00 automations Assemblage of 16-amp electric 46 pcs. 3,00 5,00 15 5,00 15,00 30,00 automations 47 Assemblage of 2X2 copper electric lin.m. 425 0 0 1 425,00 425 120 Construction estimate for 1H-Code building Materials Wage Unit of Unit No. Work description Qty Unit Total meas. sum pric sum price e 1 2 3 4 5 6 7 8 9 cables 2X2 copper electric cable lin.m. 433,5 1,3 563,55 0,00 563,55 Insulating tape pcs. 8,67 2 17,34 0,00 17,34 Cable clips pcs. 510 0,05 25,5 0,00 25,5 Assemblage of 2X1.5 copper lin.m. 125 0 0 1 125,00 125 electric cables 48 Insulating tape pcs. 2,5 2 5 0,00 5 Cable clips pcs. 150 0,05 7,5 0,00 7,5 Outer Water Piping 0 0,00 0 Treatment of ground by means of an excavator in band excavation m3 15,50 0,00 3 46,50 46,50 49 up to 0.4*0.6 m and pouring it aside (sewerage, for water) Diesel fuel l 5,81 2 11,63 0,00 11,63 Assemblage of D-32 mm- pn25 lin.m. 50 3,9 195 2 100 295 50 pipes Fittings pcs. 20,00 0,3 6 0 6 Ground backfilling with an 51 m3 15 4 60,00 60,00 excavator Inner Water Piping, Plumbing Assemblage of D-32 mm pn25 52 lin.m. 9 3,9 35,1 2 18 53,1 pipes Assemblage of D-20 mm pn25 lin.m. 7 1,61 11,27 1,5 10,5 21,77 pipes Angle bar D-32 mm pcs. 3 0,42 1,26 0,0 1,26 53 Angle bar D-20 mm pcs. 4 0,25 1 0,0 1 T-junction D-32 mm pcs. 3 0,51 1,53 0,0 1,53 T-junction D-20 mm pcs. 3 0,25 0,75 0,0 0,75 54 Assemblage of D-32 mm valve pcs. 2 7,63 15,26 3 6 21,26 Assemblage of closet basins with komp 1,00 0,00 50 50,00 50,00 a reservoir Closet basin pcs. 1,00 120 120,00 0,00 120,00 55 Closet basin gauffre pcs. 1,00 12 12,00 0,00 12,00 Flexible hosepipe pcs. 1,00 3 3,00 0,00 3,00 Angle valve pcs. 1,00 8 8,00 0,00 8,00 Insulating tape pcs. 0,20 2 0,40 0,00 0,40 Assemblage of wash basins komp 1,00 0,00 50 50,00 50,00 together with stands Washbasin and stand pcs. 1,00 95 95,00 0,00 95,00 Fasteners pcs. 2,00 1 2,00 0,00 2,00 56 Assemblage of siphon pcs. 1,00 7 7,00 0,00 7,00 Mixing drainage pcs. 1,00 40 40,00 0,00 40,00 Angle valve pcs. 2,00 8 16,00 0,00 16,00 Insulating tape pcs. 0,40 2 0,80 0,00 0,80 Arrangement of Outer Sewerage 0 0 0 Assemblage of D-150 mm pipes lin.m. 50 19 950,00 5 250,00 1200,00 57 for outer sewerage Muff angle branch pcs. 7 6,8 47,6 47,60 Loading and removal of extra 58 haul 2 100 200,00 200,00 ground Ground backfilling with an 59 m3 15 4 60,00 60,00 excavator Interior Sewage System 0 0 0

121 Construction estimate for 1H-Code building Materials Wage Unit of Unit No. Work description Qty Unit Total meas. sum pric sum price e 1 2 3 4 5 6 7 8 9 Assemblage of inner sewage system D-100 mm plastic pipes, lin.m. 14,5 0 3 43,5 43,5 sizes 2m, 0,5m 0,3m 60 2-m plastic pipe D-100mm lin.m. 8 3,81 30,48 30,48 1-m plastic pipe D-100 mm lin.m. 4 4,24 16,96 16,96 0,5-m plastic pipe D-100 mm lin.m. 1,5 1,69 2,535 2,535 T-junction 100X50X100 pcs. 4 2,54 10,16 10,16 61 Coupling 100X50 pcs. 3 14,41 43,23 43,23 Angle bar D-100 mm pcs. 4 2,12 8,48 8,48 Assemblage of D-50 mm plastic lin.m. 10 2,5 25 25 pipes, sizes: 1m, 0,5 m, 0,3m 62 1-m plastic pipe D-50mm lin.m. 8 2,12 16,96 16,96 0,5-m plastic pipe D-50 mm lin.m. 3 1,69 5,07 5,07 Fittings for D-50 mm sewerage 63 pcs. 6,00 2,5 15 0 15 plastic pipes Gas Supply 0 0 0 23750,1 Total 36834,72 60584,86 4 Transport charges 7 % 2578,43 Total 63163,29 Overhead expenses 14 % 8481,88 Total 69066,74 Planned accumulation 10 % 6906,67 Total 75973,42 VAT 18 % 13675,22 Total 800 89448,63 Construction cost for 1m2 800

122 ANNEX G. Official Letter from MRA in Regards of IDP Households and Certified Translation to English

123 Ministry of Internally Displaced Persons From the Occupied Territories, Accommodation and Refugees of Georgia ______15a, Tamarashvili str., o177, Tbilisi, Georgia Tel.: (995 32) 31-15-85; Hot line: (995 32) 431100; Fax: (995 32) 311596; www.mra.gov.ge

N 05/02-12/4395 04/03/2014 4395-05/02-12-2-201403041227

Mr. Tengiz Shergelashvili First Deputy Minister of Regional Development And Infrastructure of Georgia

Dear Mr. Shergelashvili,

This is in response to your letter dated 14th February, 2014 #677/c concerning the modernization of Tbilisi- Rustavi motorway within the development of road infrastructure of international standards that is of particular state importance. Taking account of the project importance, the Ministry takes responsibility for resettlement of 8 families of IDPs (refugees) from buildings/facilities owned by JC “Khidmsheni” (address: 2, Rustavi Highway) located within affected area of the project (buffer zone), and 50, Rustavi Highway and providing to them alternative residential spaces.

Therefore, within the project, after commencement of resettlement process, in case of your request, all the 8 families of refugees will be evicted from the above buildings within a month.

Sincerely (signed) Merab Menabde, Deputy Minister

Management

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