ECONOMIC DEVELOPMENT AND RESEARCH CENTER
NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROGRAM TRANCHE 3 (Talin-Lanjik and Lanjik-Gyumri), SUBSECTION 1
IMPLEMENTATION OF LAND ACQUISITION AND RESETTLEMENT PLAN
COMPLIANCE REPORT
MAY 30, 2016
NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
CONTENTS
I. Executive Summary ...... 4 INTRODUCTION ...... 5 a) Background ...... 5 b) LARP Objectives and Scope ...... 7 c) Legal Framework and Powers of Relocation Policy ...... 8 d) Monitoring and Evaluation ...... 9 III. EMA Methodology ...... 10 IV. LARP Implementation Procedures ...... 12 a) Institutional Framework and Management...... 12 b) Public Consultations and APs Awareness ...... 13 c) Complaints & Grievance Redress Mechanism ...... 13 d) Process of Compensation Provision ...... 15 e) Expropriation and Measures Taken ...... 15 f) Legalization and Special Cases ...... 16 V. Determining the Actual Scope of the Impact ...... 17 a) Permanent Loss of Land and Impact on Land Users ...... 17 b) Impact on Crops and Trees...... 18 c) Impact on Buildings and Structures ...... 19 d) Impact on Business and Employment ...... 19 e) Relocation ...... 19 f) Impact on Socially Vulnerable and Severe Impact ...... 19 VI. Assessment of Provided Compensation ...... 21 a) Compensation for the Loss of Land ...... 21 b) Compensation for Crops ...... 22 c) Compensation for Trees ...... 23 d) Compensation for buildings/structures ...... 23 e) Compensation Entitlements for Vulnerable groups ...... 24 g) Entitlements for the Cases of Severe Impact ...... 25 VII. LARP Implementation Budget ...... 27 a) LARP Implementation Budget: Talin-Lanjik section...... 28 b) LARP Implementation Budget: Lanjik-Gyumri section ...... 28 VIII. Public Satisfaction ...... 30 IX. EMA Conclusion on LARP Implementation in Talin-Lanjik Section (ADB) ...... 32 IX. EMA Conclusion on LARP Implementation in Lanjik-Gyumri Section (EIB) ...... 33
Economic Development and Research Center, www.EDRC.am 2 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
List of acronyms
ADB Asian Development Bank AHs Affected Households AMD Armenian Dram AP Affected Person CR Compliance Review DMS Detailed Measurement Survey EA Executing Agency (also MOTC) EDRC Economic Development and Research Center EIB European Investment Bank ESSPS Environmental and Social Standards and Principles Statement FGD Focus Group Discussion GoA Government of Armenia GRG Grievance Redress Group HH Household IMA Independent Monitoring Agency LAR Land Acquisition & Resettlement LARF Land Acquisition & Resettlement Framework LARP Land Acquisition & Resettlement Plan LGBs Local Self- Governing Bodies M&E Monitoring & Evaluation MOTC Ministry of Transport and Communications NGO Non-Government Organization PC Public Consultancy PGC Project Governing Council PMU Project Management Unit PMC Project Management Consultant KIIs Key Informant Interviews RA Republic of Armenia RP Resettlement Plan SEU Social and Environmental Unit SNCO State Non-Commercial Organization SPS Safeguard Policy Statement T3 Tranche 3 North-South Road Corridor Investment Program
Economic Development and Research Center, www.EDRC.am 3 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 I. Executive Summary
The present Compliance Report was developed based on the monitoring results of the Government of Armenia North-South Road Corridor Investment Program (financed by the Asian Development Bank and European Investment Bank) Tranche 3 Land Acquisition and Resettlement Plans (LARP). Tranche 3 covers Talin-Gyumri section with a total length of about 46.1 km: Talin-Lanjik section (km 71+500 - km 90+200) with total length of 18.7 km is financed by the Asian Development Bank (ADB), while Lanjik-Gyumri section (km 90+200 - km 117+670) with total length of 27.4 km – by the European Investment Bank (EIB). As a consequence, the Government of Armenia approved two different LARPs which, nevertheless, are based on the same principles and policy provisions. Tranche 3 is implemented in 6 Subsections. To that end, compliance reviews under external monitoring activities also are implemented per subsections by breakdown per ADB and EIB sections. Tranche 3 Subsection 1 impact area covers 216 land plots in 3 rural communities (including 5 state, 111 community and 100 private land plots) with total area of 504,425sq.m. There are 180 affected households (AHs), including 51 of them were vulnerable. Also, there were 9 leaseholders and 16 informal tenants. 102 AHs were severely affected (due to loss of 10% and more of productive assets) by the Project; 27 of them were vulnerable. Crops, trees and buildings/structures were also affected. There were no cases of impact on business and employment, neither were relocation cases. Compliance review covered LARP implementation processes, determination of impact scopes and assessment of provided compensation. Tranche 3 Subsection 1 LARP implementation processes comply with defined provisions and policy requirements. In both sections, compensations for permanent loss of land, impact on crops and trees, as well as buildings/structures comply with LARP provisions. LARP implementation in Subsection 1 Talin-Lanjik section (ADB) is completed in full. Corrective measures were proposed for Lanjik-Gyumri section (EIB). In particular, 2 vulnerable AHs were not paid Rehabilitation allowance (AMD 660,000 in total). 2 severely AHs were not paid the respective allowance, while 2 more AHs were compensated an amount that slightly deviated from the amount they were entitled to. Satisfaction of AHs from LARP implementation is high. Thus, according to the external monitoring findings, LARP implementation in Subsection 1 Talin-Lanjik section is successfully completed and complies with defined provisions. LARP implementation in Lanjik-Gyumri can be deemed successfully completed upon completing the compensations to 6 AHs entitled to rehabilitation allowances and severe impact allowance in accordance with LARP provisions.
Economic Development and Research Center, www.EDRC.am 4 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 INTRODUCTION a) Background
1. The Government of Armenia initiated the North-South Road Corridor Program (hereinafter – the Program). The North-South road corridor extends for 556 km, starting from Bavra near the Georgian border, lasting to Gyumri, Talin, Yerevan, Goris and Kapan, and ends in Meghri. Asian Development Bank (ADB) and the European Investment Bank (EIB) supported the RA Government in this initiative. In particular, the ADB has agreed to provide with a US$ 500 million Multi-Tranche Financing Facility, to finance the Program. Meanwhile, the EIB extended a loan of EUR 60 mln. The Ministry of Transport and Communication (hereinafter - MOTC) of Armenia is the Program Executive Agency, while the North- South Road Corridor PMU SNCO (hereinafter - PMU) is the Implementing Agency of the Project. 2. The Program is implemented through several financing tranches. The Tranche 3 (T3) of the Program begins in Talin – km 71+500 – and ends near Gyumri (km 117+670). The objective of T3 is to build a 4- lane dual carriageway road along the existing M1 2-lane highway compliant to international standards between Talin and Gyumri section with total length of about 46.1 km (km 29+600 - 71+500). New alignment is envisaged for about 3.5 km section, and works for widening of the existing 2-lane road up to 4-lane road will be implemented for 42.6 km section. Figure 1: Tranche 3 Project Location a) Talin-Lanjik 18.7km (km 71+500 - 90+200) b) Lanjik-Gyumri 27.4km (km 90+200 - 117+670)
3. The new alignment generally follows the trace of the existing highway in order to minimize overall impacts, but also includes bypasses around existing communities on green field alignments. Most of the acquired land is arable or pasture land. It is intended to construct 9 transport junctions; 16 underground passes (including: 13 agricultural machinery crossings, 3 cattle crossings), 93 storm sewers, bridges and culverts. 4. Reconstruction and technical supervision of T3 Talin-Lanjik section (km 71+500 - km 90+200) with total length of 18.7 km is financed by the ADB (hereinafter – ADB section), while Lanjik-Gyumri section (km 90+200 - km 117+670) – by the EIB (hereinafter – EIB section). 5. Construction works under T3 ADB and EIB sections require massive land acquisition and relocation. In Talin-Lanjik section, the new road will pass through 348 land plots of 5 rural communities, thus affecting 332 households (hereafter – Affected Households, AHs) or 1,544 affected persons (hereafter - APs),
Economic Development and Research Center, www.EDRC.am 5 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
including landowners, leaseholders and informal tenants. The impact of road construction in T3 Lanjik- Gyumri section is even larger: 666 land plots in 9 rural communities and, as a consequence, 530 AHs or 2,677 APs1. Table 1. Impact of the Tranch 3 (Planned under the LARP)) Total size of land N Section Communities, N Plots, N AHs, N Severely AHs, N APs, N takes (sq.m.) Talin-Lanjik 1 5 785,546.8 348 332 155 1,544 (ADB) Lanjik-Gyumri 2 9 1,243,054.6 666 530 274 2,677 (EIB)
6. Overall, T3 affects 12 rural communities in 2 Marzes of Armenia. In particular, the ADB section covers Talin, Akunq, Mastara communities in Aragatsotn Marz and Lanjik and Sarnaghbyur communities in Shirak Marz, while the EIB section – Lanjik, Sarnaghbyur, Dzorakap, Maralik, Hayrenyats, Horom, Luskert, Beniamin and Azatan communities in Shirak Marz (see Table 1). 7. The Government of Armenia approved two separate Land Acquisition and Resettlement Plans (LARPs) for T3 Talin-Lanjik (ADB section) and Lanjik-Gyumri (EIB section). MOTC and PMU are responsible for the LARPs’ implementation. 8. T3 construction works are planned to be implemented in 6 subsections. Notably, each subsection includes both ADB and EIB sections. Construction works will be started only in areas where LARP implementation is fully completed. 9. T3 Subsection 1 LARPs cover areas next to Sarnaghbyur, Lanjik and Dzorakap communities. Private land plots in Sarnaghbyur and Lanjik communities are located both in ADB and EIB sections. As a consequence, Subsection 1 under T3 will cover an ADB subsection of 3.9 km (Sarnaghbyur and Lanjik communities) and a EIB subsection of 5 km (Sarnaghbyur, Lanjik and Dzorakap communities) (see Tables 2 and 3). Table 2. LARP Sections, Subsections and Road Pickets for the Tranche 3
N Community Section Road PKs Subsection 1 Talin Talin-Lanjik (ADB) km 71+500 – km 74+020 6th 2 Akunq Talin-Lanjik (ADB) km 74+020 – km 74+900 6th km 74+900 – km 76+400 5th km 76+400 – km 77+400 4th 3 Mastara Talin-Lanjik (ADB) km 77+400 – km 78+500 3rd km 78+500 – km 86+300 2nd Talin-Lanjik (ADB) km 89+000 – km 90+200 1st 4 Sarnaghbyur Lanjik-Gyumri (EIB) km 90+200 – km 91+440 1st Talin-Lanjik (ADB) km 86+300 – km 90+200 1st 5 Lanjik Lanjik-Gyumri (EIB) km 90+200 – km 92+030 1st km 92+030 – km 95+230 1st 6 Dzorakap Lanjik-Gyumri (EIB) km 95+230 – km 98+485 2nd km 97+700 – km 99+300 2nd 7 Maralik Lanjik-Gyumri (EIB) km 99+300 – km 100+500 3rd 8 Hayrenyac Lanjik-Gyumri (EIB) km 100+500 – km 104+670 3rd
1Census was carried out in Talin-Lanjik section only with 239 AHs out of total 332 AHs (72%) , while in Lanjik-Gyumri section – with only 430 AHs out of total 530 AHs (81%) since the AHs’ location was not feasible to identify; they moved to abroad or other Marzes of Armenia. As a consequence, the number of APs is an estimate.
Economic Development and Research Center, www.EDRC.am 6 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
km 104+650 – km 105+465 3rd 9 Horom Lanjik-Gyumri (EIB) km 105+465 – km 107+165 4th km 107+165 – km 108+620 4th 10 Lusakert Lanjik-Gyumri (EIB) km 108+620 – km 109+620 5th 11 Beniamin Lanjik-Gyumri (EIB) km 109+620 – km 111+900 5th km 111+900 – km 113+670 5th 12 Azatan Lanjik-Gyumri (EIB) km 113+670 – km 117+670 6th
Table 3. 1st Implemented Subsection of the Tranche 3
Section Community Road PKs Length, m
Talin-Lanjik (ADB) Lanjik, Sarnaghbyur km 86+300 – km 90+200 3900
Lanjik, Sarnaghbyur, Lanjik-Gyumri (EIB) km 90+200 – km 95+230 5030 Dzorakap
b) LARP Objectives and Scope
10. Land Acquisition and Resettlement Plan (LARP) for Talin-Lanjik section was approved by the GoA in September 2015 (Decree N1196-N), while that of Lanjik-Gyumri – in January, 2016 (Decree N9-N). Both LARPs are available in Armenian and English at the PMU web-site2. 11. The objective of T3 LARPs developed by the MOTC and approved by the Government of Armenia is to identify and support the affected persons in order to restore their life quality and lifestyles and to bring them at least to respective pre-project levels. 12. The approved LARPs cover the rights of persons who were affected through temporary or permanent losses of land, living or other building/structure, crops and trees, income, business and employment, as well as contains relevant provisions on project severe impact, physical relocation, rehabilitation allowances, temporary and unforseen impacts and compensations for improvements. LARPs also present the scope of community rights in the case of community/public property loss. 13. LARP for each section assess the Project impact and provides details on required compensation and restoratation measures based on the final detailed road design under T3, Detailed Measurement Survey (DMS) for each affected land plot, Census of AHs3 and sample-bases Social-Economic Survey of AHs4. 14. Thus, relocation, compensation and livelihood restoration shall be implemented in accordance with the approved LARPs for two sections. 15. LARPs implementation both in Talin-Lanjik and Lanjik-Gyumri sections started on 29 July, 2015. From the perspective of external monitoring, LARP implementation completion date is the date of the last compensation payment or the date of transferring the respective compensation amounts to court deposit accounts. In case the EMA reveals the need for corrective actions and recommends taking those actions, the date of an official letter by PMU on Commitment to take corrective actions will be considered the actual LARP completion date.
2 See http://northsouth.am 3 Census was carried out in Talin-Lanjik section only with 239 AHs out of total 332 AHs (72%) , while in Lanjik-Gyumri section – with only 430 AHs out of total 530 AHs (81%) since the AHs’ location was not feasible to identify; they moved to abroad or other Marzes of Armenia. As a consequence, the number of APs is an estimate. 4 Social-economic parameters of AHs were collected through a sample-based Social-Economic Survey conducted with AHs. The sample size equaled 29% of the general population in the ADB section and 30.6% - in the EIB section.
Economic Development and Research Center, www.EDRC.am 7 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 c) Legal Framework and Powers of Relocation Policy
16. The basis for resettlement planning and implementation is the RA Constitution and respective legislation derived from the Constitution. Since the Project is implemented in the framework of international agreements (loan agreements) with the ADB and EIB financing, the legal basis for Project implementation contains the clauses of these organizations on involuntary resettlement policies. 17. Involuntary acquisition of property (for the society and public needs) in Armenia is feasible only in the case of GoA recognizing (by a Decree) it as exclusive prevailing public interest as prescribed by the legislation. The acquisition grounds, compensation procedures and other relevant provisitons are defined by the RA Law on Property Alienation for the Public and State Needs. Notably, the Law covers properties of both physical and legal entities, as well as all property right objects that are owned by the communities (local governments). 18. The RA Law on Evaluation Procedure of Real Estate defines the bases for such activities in the RA and regulates the relations with respect to such type of activities. 19. According to the ADB Operational Manual (Operation Manual F1/OP (2013)), T3 is classified as a Category A project for involuntary resettlement safeguard: a project is considered significant if 200 or more persons will be physically relocated or lose 10% or more of their productive or income-generating assets. 20. Certain differences exist between the RA legislation and ADB policies (SPS – Safeguard Policy Statement 2009). In particular, ASB SPS envisages the right of compensation or at least restoration even in the cases when there is no property right on land plot, also for informal or non-registered inhabitants. RA legislation does not define recovery or compensation for the impact on those who use assets without legitimate use rights. 21. In all cases when the ADB SPS requirements are stricter than the RA legislation, requirements of ADB policies were applied. In order to overcome differences/gaps between the RA legislation and ADB policies, Land Acquisition and Resettlement Framework (LARF) was developed and adopted by the Government of Armenia5. 22. In preparing the LARPs MOTC used as a model the Resettlement Safeguards under the Asian Development Bank (ADB) Safeguards Policy Statement (SPS 2009). This choice is motivated by the fact that the ADB policy has been already applied for the upgrade of other sections of the M1 Highway and by the intention to maintain similar operational standards in each section of the Highway under upgrade. The EIB agreed to implement the land acquisition and resettlement in EIB sections in accordance with ADB SPS (2009). 23. As a consequence, T3 LARPs are based on the LARF developed for the Project, respective Armenian legislation and regulations, ADB SPS (2009), as well as EIB Environmental and Social Standards and Principles Statement (ESSPS 2013). 24. The evaluation of land plots and structures affected by the Project are based on the principle of replacement cost. 25. Thus, the following are eligible for compensation for project impact in compliance with Project LARF: 1) For the loss of land –the land plot owners, legalizable persons , leaseholders or other property right holders(servitude, construction permit, mortgage, hypothecary, use rights),6 2) For the loss of residential houses or structures on land plots – all AHs regardless of the rights towards the building/structure; relocated tenants,
5 LARF was adopted in 2010, then revised in 2012, and the final revised version adopted by the government in September, 2015, Government decision N 1092-N. 6 Informal tenants are entitled to compensation only for existing improvements on land.
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3) For the loss of non-residential buildings or structures on land plots – owners, APs who constructed without a permit, relocated tenants only after proper legalization/registration of their rights towards the buildings/structures, 4) For the loss of crops, trees and expected harvest - all AHs regardless of the rights towards the land or any other property right holder, 5) For the cases of loss of business – all APs regardless of the submission of a tax declaration, 6) For the loss of employment – persons working in affected businesses or hired by individual entrepreneurs (IE)based on an employment contract, 7) For the severe Project impact – All AHs/APs that lost more than 10% of agricultural land or were relocated, including those who do not have any residence status, 8) For the loss of public property – the community, 9) Rehabilitation Allowances – to all AHs below the poverty line, as well as headed by women, elderly or disabled, 10) Relocation Allowance – all APs (transportation expenses for relocation and living expenses), 11) For temporary impact – all APs, 12) For Unforseen impacts– all APs/AHs eligible for compensation, 13) For Improvements – (not included in points above, but existing on the affected land plot (except for movable property)) – all APs that made improvements.
Table 4. Calculation of Monetary Compensation for Land 7
Compensation Entity/Person Calculation Private or Community Land plots Replacement cost +15% Legalizable land user Replacement cost +15% (after legalization7) Up to 1 year - (replacement cost +15%) * 0.05 Leaseholders (on community or state land plots) for Up to 15 year - (replacement cost +15%) * 0.14 the remaining years of lease Up to 25 year - (replacement cost +15%) * 0.20 25 years - (replacement cost +15%) * 0.25 Source: LARP
26. Compensation rights are limited by the Cut-off Date which is the date when the Protocol on the acquired land is prepared (signing the Protocols by the APs, MOTC and Acquirer). The protocols contain the data on census, Detailed Measurement Survey and Impact Assesment. The Cut-off Date is 27 April, 2015 for the ADB section and 4 June, 2015 – for the EIB section. d) Monitoring and Evaluation
27. LARP implementation is subject to both internal and external monitoring. Internal monitoring is carried out by the PMU Relocation Coordination Team. 28. Internal monitoring results for Talin-Lanjik section are summarized in Semi-annual Social Monitoring Reports (SSMR) and Quarterly Progress Reports (QPR) submitted to the ADB. 29. Internal monitoring results for Lanjik-Gyumri section are summarized in Environmental and Social Monitoring Semi-annual Reports (ESMSR) and Quarterly Progress Reports (QPR) submitted to the EIB. 30. External monitoring is carried out by an External Monitoring Agency. It implied compliance review and preparation and submission of Compliance Reports for each subsection. 31. The objective of the external monitoring is to verify that the compensation program was implemented in compliance with the T3 LARF/LARP stipulations, and in adherence of the SPS and ADB guidelines (for Lanjik-Gyumri section – to the EIB Social Standards and Principles Statement and Involuntary
7 The legalization process is the responsibility of the APs. APs not eligible for legalization or who use the affected land without the formal legal rights (actual user/informal tenant) will be compensated only for the improvements existing on the land.
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Resettlement Guidelines), and with the satisfaction of the APs, as well as corrective measures and recommendations were presented if and when necessary. 32. This Final Compliance Report is a precondition to start of the physical civil works in respective subsections. 33. The “Economic Development and Research Center” (EDRC), which is an independent research institution specializing on public policy monitoring and evaluation8, served as an “External Monitoring Agency” (EMA) and carried out the External monitoring of the LARP. 34. External monitoring review included various methods of quantitative and qualitative research. The next Section of the present Report covers the external monitoring methodology, while the subsequent Sections present the findings of external monitoring and main conclusions for T3 Subsection 1.
III. EMA Methodology
35. The methodological basis for the Compliance Review was the approved EMA Inception Report. EMA has performed the full range of necessary activities stipulated by the methodology. Compliance review included mixed methods of quantitative and qualitative research. Desk reviews and field studies were carried out. 36. The EMA studied the approved LARF and LARPs, collected and collated necessary information, reviewed the project related documents (financial and non-financial), analyzed the existing databases, carried out a sample household survey, organized Key Informant Interviews and direct contacts with APs. 37. 3 main methods were used for data collection: Database analyses and review of documents, Key Informant Interviews, Sample-based surveys of AHs.
38. During the desk reviews, the EDRC team collected and collated necessary data, studied and reviewed the financial and non-financial project documentation (including ADB SPS-2009 Manual, EIB ESSPS-2013 Manual, LARF, and LARPs), existing databases were analyzed. 39. During the performed desk reviews the following program documents were studied: Description Protocols, including the description of the affected assets for each AP, i.e. description of land plots and crops/trees; description of structures/buildings and real estate; description of business and company; Valuation Reports, with detailed representation of the results of assets subject to acquisition by licensed valuators; Reports on Rehabilitation Allowance Size Determination, where licensed valuators present the calculation of rehabiliationallowances for Severe Project impact and Socially vulnerable APs/AHs; Contracts on Acquisition of Property for Public and State Purposes, where together with all the required provisions lot-code, surface, compensation amount and bank account, and the person’s name (owner, leaseholder, informal tenant) are clearly mentioned; Payment documents for the Property Acquisition Contracts and Agreements (Payment Agreements) indicating compensation objective, date, amount, bank account, person.
8 Social Monitoring Semiannual Report, July-December 2015 (Talin-Lanjik); Project Progress Report, July-December 2015 (Lanjik- Gyumri). T3 Subsection 1 LARP Implementation internal monitoring Report, March 2016.
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Internal Monitoring Reports: the PMU provided 2 reports, as well as a final report for Subsection 19. Other documents and datasets.
40. 30% of documents and profiles of APs were studied (randomly chosen). Nevertheless, in order to make sure that compensation had been paid to all APs, 100% of payment orders of APs were studied by the EMA. For all APs with cases being regulated through expropriation measures, deposit transfer orders were checked which proves that the calculated compensation amount for land (and other assets) for all APs has been transferred to the court deposit account.
41. The existing databases were analyzed, as well as data on assets and relating documents and information on AHs/APs were compared /reconciled.
42. Existence of all contracts, agreements and payment orders were checked, moreover, data contained in them were checked for adequacy and compliance, in particular: i) signatures of all owners, ii) compliance of compensation and additional compensation amounts, iii) adequacy of bank accounts, iv) compliance of notary verification dates of documents (activities implementation) to the existing procedure (implementation schedule).
43. The process of public hearings and consultations was studied. Grievance Redress mechanisms, institutional organization, compensation calculation and payment processes were studied in detail.
44. Key Informant Interviews with PMU staff, officials and consultants, as well as LGB representatives were carried out during monitoring.
45. 30% of all AHs in Subsection 1 communities were randomly selected. Statistical sample survey based on face-to-face interviews was carried out in these AHs by using the Compliance Review Survey Questionnaire (methodological details and questionnaire are presented in the EMA Inception Report). The data was input in a database and analyzed.
46. Data and information collected from various sources were analyzed and collated: these allowed to evaluate the process, verify and cross-check the fact of compensation received, as well as identify existing problems and omissions. If necessary, the APs were directly contacted to make additional corrections. 47. The used methodology and the results of external monitoring allowed drawing conclusions on data accuracy, completeness and validity of APs and their assets, volumes of compensations and delivery process compliance and efficiency. 48. Relevant conclusions and recommendations were presented. Monitoring findings and results are presented in this Final Compliance Report.
9 Social Monitoring Semiannual Report, July-December 2015 (Talin-Lanjik); Project Progress Report, July-December 2015 (Lanjik- Gyumri). T3 Subsection 1 LARP Implementation internal monitoring Report, March 2016.
Economic Development and Research Center, www.EDRC.am 11 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 IV. LARP Implementation Procedures a) Institutional Framework and Management
49. The institutional framework for the project includes a number of organizations and institutions with a detailed presentation of their role and scope of responsibilities provided in the LARP. The Project Governing Council consists of representatives of stakeholder ministries and headed by the Prime- Minister of RA, was established to oversee the Project and take the strategic decisions. The Ministry of Transport and Communications (MOTC) bears the complete and overall responsibility for the Project implementation. The MOTC carries out its responsibilities through the North-South Road Corridor Project Management Unit SNCO (the PMU). The PMU is the Implementing Agency of the Project and is responsible for the planning and implementation of Land acquisition and resettlement. 50. The Project institutional framework also includes RA Government authorities (relevant ministries, regional administrations/Marzpetarans and State Committee of Real Estate Cadastre), LGBs, Consultants, Grievance Redress Committee, as well as ADB and EIB. 51. T3 design works are implemented by the French Egis International, while the Construction contractor is the Sinohydro Corporation from China. 52. Spea Ingegneria Europea S.p.A. and IRD Engineering S.r.L. consortium from Italy is the Consultant carrying out the technical supervision of construction works. They are responsible for the technical supervision of construction works and shall guarantee compliance thereof to the approved Project design, if and when necessary submit recommendations on design solutions, ensure the social and environmental compliance and submit reports on the listed aspects during the entire duration of construction works. 53. LARP Implementing Consultant (Millennium Development Ltd and Uptime Ltd Joint Venture) is responsible for full implementation of LARPs in Talin-Lanjik and Lanjik-Gyumri sections, including the expropriation phase. The Implementing Consultant (IC) has employed an adequate professional team which is responsible for respective actions in relation to acquisition of new affected land plots and changed impacts due to any potential changes during the LARP implementation and design changes (measurement, evaluation etc.). The Implementing Consultant shall submit monthly reports and a final complietion report for each LARP subsection. 54. The PMU has established a Resettlement Coordination Team10 within its structure which is responsible for the coordination of Implementing Consultant’s activities and submission of Internal Monitoring Reports on LARP implementation, as well as Semi-Annual Environmental and Social Monitoring Reports and Quarterly Progress Reports. Key Findings Thus, the Institutional framework and management of LARPs implementation in T3 Subsection 1 comply with the LARP provisions.
10 Includes 7 experts 1) Legal and External Impact Head, 2)External Impact and Relocation Coordinator, 3) Social Development and Relocation Expert, 4) Environment and Archaeolgy Expert, 5) Chief Loegal Advisor and Grievance Management Expert, 6) National Field Works Coordinator (consultant ) and 7) LAR Legal Expert (Consultant).
Economic Development and Research Center, www.EDRC.am 12 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 b) Public Consultations and APs Awareness
55. Public consultations and awareness raising process started before the LARP implementation. Particularly, awareness raising and public consultations were held on 19-21 February, 2014 in Talin- Lanjik section, and 19 February-31 October – in Lanjik-Gyumri section.
56. PMU Social Impact and Resettlement specialist participated in those public hearings, together with national consultant on social impact and resettlement for LARP development, roads and bridges expert, Grievance Redress expert, as well as representatives of LARP development consultant employed by ADB – Appraisal Society CJSC. 57. During consultations, APs were familiarized with LARP process organization and implementation course, stages, rights and responsibilities of APs, principles of compensation calculation; grievance redress mechanisms were explained and monitoring process was presented. Information leaflets on main phases of Project implementation and Project Information Brochure were disseminated among APs. 58. Public hearings were organized in venues easily accessible to APs, such as LGB premises, culture centers. LGB heads in all affected communities were officially notified on the public consultations implementation schedule and agenda. LGB heads assisted in notifying the APs. The lists of APs were provided to the LGB heads beforehand in order to ensure APs’ or their attorneys’ participation. Special attention was paid to the participation of women and vulnerable APs, lists of which also were provided to LGB Heads beforehand. Announcements on public consultations were also placed in the Project website. 59. Consultation and assistance was given to APs in all legal and organizational issues. In case of deceased owners: the issue of heritage right recognition and right registration was regulated. In case of absence of the owner from the country, the provision of power of attorneys was regulated, etc. 60. Actions taken as part of dissemination of information included the followings: Notification of APs in accordance with the legislation: (i) provision of notification on recognizing the prevailing public interest, (ii) land plot layout, (iii) Description Protocol, (iv) draft Acquisition Contract, (v) provision of notification on depositing the amount of payment, Development and dissemination of information leaflets (includes information of the rights and responsibilities of parties, compensation calculation principles, process of signing the contract and receiving compensation, acquisition process thought depositing the compensationamount, as well as grievance redress mechanism), Publication and dissemination of Project Information Brochure11, Publication of draft and final LARF and final LARPs12. Key findings T3 Subsection 1 Public consultation and awareness processes comply with the LARP provisions.
c) Complaints & Grievance Redress Mechanism
61. For effective and prompt resolution of disagreements and grievances regarding the LARP implementation a Grievance redress mechanism (GRM) has been developed and presented during public consultations. It is also presented in the Project information brochure. The PMU, Grievance Review
11 http://northsouth.am/am/publications 12 http://northsouth.am/am/categories/show/112
Economic Development and Research Center, www.EDRC.am 13 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Group (GRG) and the authorized government agency (MOTC) were involved in the Grievance Redress mechanism.
62. The grievance mechanism is comprised of three stages. At the initial stage an attempt is made to resolve grievances at the PMU level. APs can submit grievances/ complaints to LGBs or Grievance Focal Person (GFP). The GFP is the PMU IC team member coordinating grievances who accepts written grievances/complaint in accordance with time schedule developed in advance. At LGBs, grievances were received by an authorized staff member of LGB who later hand over the collected written grievances to the GFP. Grievances (together with relevant documents) shall be submitted to the PMU within 5 days. The PMU records them and studies the written grievances and notifies on the results in writing the APs (within 30 days of receiving the grievance). If the grievance continues, the grievance/complaint is filed with and discussed in the Grievance Review Group, where community and NGO representatives are also included. Based on the GRG decision, the PMU notifies the AP on the results - within 30 days of receiving the grievance. In the second stage (MOTC level), if the grievance resolution fails at GRG level, the AP presents the grievance to the MOTC. MOTC, within 30 days of receiving the grievance, notifies the AP in writing. In the third stage, when all previous stages failed, the AP takes the case to the court. Overall, the AP has the right to take the case to the court at any stage of GRM – in order to solve their problem/complaint.
63. To assess the grievance redress process, the EMA reviewed and studied all submitted Complaints under Subsection 1. No grievances were submitted during the Subsection 1 LARP implementation in Lanjik-Gyumri section.
64. 2 written applications were received under Subsection 1 LARP implementation in Talin-Lanjik section. Both applications were submitted to the PMU and solved in favor of the AP – within the set time limits. Key Findings Grievance redress mechanisms and the Grievance Review Group have been put in place. The APs were informed about the grievance mechanisms during public consultations. Information on GRM is also available in the Project Information Brochure. No grievances were submitted during the Subsection 1 LARP implementation in Lanjik-Gyumri section. 2 written grievances were received under Subsection 1 LARP implementation in Talin-Lanjik section which were adequately dealt with. As a consequence, 1 AH from Sarnaghbyur community was provided the copy of the Valuation Report, while 1 AH from Lanjik community was categorized as vulnerable and received Rehabilitation Allowances in accordance with LARP provisions. Grievance Redress Mechanism procedures are adequate, taken decision/solutions are proper.
Economic Development and Research Center, www.EDRC.am 14 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 d) Process of Compensation Provision
65. Payment of compensation is due to be made within 14 days of signing acquisition contracts. The amounts have to be transferred to the bank accounts of APs. According to the LARP provisions, if an AP does not have a bank account, the bank account should be opened for him/her under the Project. As AraratBank OJSC proposed the most favorable terms and conditions, it was selected for T3 compensation payment.
66. Actual compensation was provided via direct transfer to bank accounts of APs. The last transfer under the compensation process was made in December, 2015.
67. In some cases, land acquisition and compensation was implemented in accordance with the provisions of the RA Law on Alienation of Property for Public and State Needs. In such cases, transfer of the amount of entitled compensation per each AP in accordance with LARP to deposit accounts of courts is considered completion of compensation.
68. During the external monitoring activities the EMA identified that some AHs were not compensated properly during the implementation process: to this end the PMU plans to take corrective measures (see subsequent Sections). For all other cases, the compensation process complies with LARP provisions. Key findings The compensation process to APs under T3 Subsection 1 complies with the provisions of LARPs.
e) Expropriation and Measures Taken
69. For all those cases when, due to disagreement of APs or any other objective circumstances, the acquisition contract has not been signed within 3 months of notification on the draft acquisition contract, the PMU initiated acquisition through court decision (expropriation) processes in accordance with the RA Law on Alienation of Property for Public and State Needs. In particular, (i) compensation amount per each AP was deposited at the court’s account, (ii) thereafter, if the contract is not signed within 7 days, the PMU applies to the court with the objective to acquire the property within a month’s period. Once the decision of the court on compensation amount for the acquired property is effective, the property is considered acquired with the amount of compensation as defined by the court. In cases of acquisition through court proceeding, the rights of the previous owner towards the property are terminated.
70. According to the EMA data, 37 land plots were in the process of expropriation under Subsection 1 as of the date of preparing the present Report, including 30 private plots and 7 – community plots. Key findings 37 land plots are in the process of expropriation under Subsection 1. The expropriation process complies with the LARP provisions.
Economic Development and Research Center, www.EDRC.am 15 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 f) Legalization and Special Cases 71. In accordance with the Legalization Conditions of LARF, all those persons that do not have appropriate official documents verifying their ownership or any other property rights toward the affected land plot and structure/building attached to it, however do have certain legal expectations (arising from the Law or actual use and disposal of the property, or possibilities to obtain property rights are directly derived or are defined in the legislation of RA), shall obtain legal status.
72. Taking into account T2 experience, T3 LARPs identified the main types of legalization cases and presented specific procedures of dealing with such cases. Those are: absent APs, cases with passport and heritage recognition problems, (state) registration of ownership titles, as well as property under arrest, illegal non-residential structures and unknown (unidentified) owners. 73. The following legalization actions were implemented for 15 land plots in Talin-Lanjik section of Subsection 1: (i) notary verification of translation of powers of attorney for AHs on 15 land plots; (ii) heritage recognition for 8 land plots; (iii) visits of a notary outside the notary office for 4 land plots – to sign the contract. 74. The following legalization actions were implemented for 24 land plots in Lanjik-Gyumri section of Subsection 1: (i) notary verification of translation of powers of attorney for AHs on 19 land plots; (ii) ownership heritage recognition for 8 land plots; (iii) visits of a notary outside the notary office for 8 land plots – to sign the contract. Key findings Under Subsection 1, legalization operations were implemented for 39 land plots which are in compliance with LARF and LARP provisions.
Economic Development and Research Center, www.EDRC.am 16 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 V. Determining the Actual Scope of the Impact13 a) Permanent Loss of Land and Impact on Land Users
75. As per the approved LARPs, the scope of Project impact under the Subsection 1 entailed 216 land plots (including 5 State-owned, 111 Community and 100 Private plots) with total size of land take for project needs of 504,425 sq. m, which makes about 25% of total impact area under T3 (or 21% of land plots).
76. According to the results of external monitoring, planned and actual indicators of LARPs coincided. As a consequence, the Project affected 180 AHs which are entitled to compensation in accordance with LARP provisions. Table 5. Affected Land plots and Affected Land users in the 1st Subsection Item: Plots, Area, AHs, Leaseholder Informal Tenant Permanent loss of land N sq.m. N AHs, N AHs, N 1. 2. 3. 4. 4.1 4.2 a. Planned under LARP 216 504,425 180* 9 17 State land 5 6,888 0 0 0 Community land 111 383,214 12 9 3 Private land 100 114,322 173 0 14 Talin-Lanjik (ADB) 72 148,444 77* 5 7 Lanjik 61 129,758 61 5 7 Sarnaghbyur 11 18,686 16 0 0 Lanjik-Gyumri (EIB) 144 355,981 103* 4 10 Lanjik 24 46,286 17 1 1 Sarnaghbyur 12 9,323 17 0 3 Dzorakap 108 300,372 69 3 6 b. Implementation tallies 216 504,425 180* 9 16 State land 5 6,888 0 0 0 Community land 111 383,214 12 9 3 Private land 100 114,322 173 0 13 Talin-Lanjik (ADB) 72 148,444 77* 5 7 Lanjik 61 129,758 61 5 7 Sarnaghbyur 11 18,686 16 0 0 Lanjik-Gyumri (EIB) 144 355,981 103* 4 9 Lanjik 24 46,286 17 1 1 Sarnaghbyur 12 9,323 17 0 3 Dzorakap 108 300,372 69 3 5 Difference (b-a) 0 0 0 0 -1 State land 0 0 0 0 0 Community land 0 0 0 0 0 Private land 0 0 0 0 -1 Talin-Lanjik (ADB) 0 0 0 0 0 Lanjik 0 0 0 0 0 Sarnaghbyur 0 0 0 0 0 Lanjik-Gyumri (EIB) 0 0 0 0 -1 Lanjik 0 0 0 0 0 Sarnaghbyur 0 0 0 0 0 Dzorakap 0 0 0 0 -1 Note: * without double counting. Source: EDRC, External Monitoring Results
13 This section is devoted to the determination of the actual scope of impacts and cases subject for compensaton. The fact of actual payment of compensation and its compliance to the entitlement matrix is discussed in the next section.
Economic Development and Research Center, www.EDRC.am 17 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
77. 9 out of total affected AHs are leaseholders that lease community land plots. Lease term is up to 25 years for 3 of them, while that of the remaining 6 – up to 15 years. Implementation tallies did not change for leaseholders and all AHs are entitled to compensation.
78. 16 out of 180 AHs were informal (non-registered) users/tenants. As a result of state registration of property titles, the number of informal tenants decreased by 1 (Dzorakap, lot-code 08-073-0044-0011, EIB section). Thus, the number of land owners in Subsection 1 increased, while the number of informal tenants – decreased by 1. As a consequence, the total number of AHs did not change. All 16 informal tenant AHs are entitled to compensation in accordance with LARP provisions.
79. 162 AHs are owners of 100 private land plots subject to permanent loss of land14, including 70 AHs in Talin-Lanjik, and 92 – in Lanjik-Gyumri sections. Table 6. Impact on Private land plots and Land owners in the 1st Subsection Item: Private Land Plots, Area, Land Owner AHs, Permanent loss of land N sq.m. N a. Planned under LARP 100 114,322 161 Talin-Lanjik (ADB) 38 58,535 70 Lanjik-Gyumri (EIB) 62 55,787 91 b. Implementation tallies 100 114,322 162 Talin-Lanjik (ADB) 38 58,535 70 Lanjik-Gyumri (EIB) 62 55,787 92 Difference (b-a) 0 0 1 Talin-Lanjik (ADB) 0 0 0 Lanjik-Gyumri (EIB) 0 0 1 Source: EDRC, External Monitoring Results b) Impact on Crops and Trees
80. 169 AHs were entitled to compensation for crops in accordance with LARP: they are entitled to compensation for crops on 10 community (37,729 sq. m.) and 94 private (111,805 sq. m) land plots. 146 AHs out of 169 are land owners, 8 – leaseholders on community land, 2 – informal tenants on community land and 14 – informal tenants on private land plots. Since 1 informal tenant was legalized to became a land owner during implementation (see previous section), the structure of AHs entitled to crops compensation changed, however, the total number remained unchanged. Table 7. Affected crops in the 1st Subsection Item: Plots, Area, AHs, Leaseholder Informal Tenant Affected crops N sq.m. N AHs, N AHs, N 1. 2. 3. 4. 4.1 4.2 a. Planned under LARP 104 149,534 169 8 16 Community land 10 37,729 10 8 2 Private land 94 111,805 159 0 14 Talin-Lanjik (ADB) 42 83,925 75 4 7 Lanjik-Gyumri (EIB) 62 65,609 94 4 9 b. Implementation tallies 104 149,534 169 8 15 Community land 10 37,729 10 8 2 Private land 94 111,805 159 0 13 Talin-Lanjik (ADB) 42 83,925 75 4 7 Lanjik-Gyumri (EIB) 62 65,609 94 4 8 Difference (b-a) 0 0 0 0 -1
14 The number of AHs is higher than the number of land plots since in some cases several AHs are so-owners of the same land plot.
Economic Development and Research Center, www.EDRC.am 18 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Community land 0 0 0 0 0 Private land 0 0 0 0 -1 Talin-Lanjik (ADB) 0 0 0 0 0 Lanjik-Gyumri (EIB) 0 0 0 0 -1 Source: EDRC, External Monitoring Results
81. LARP identified 2 cases of loss of trees: 2 AHs; 1 – land owner and 1 informal tenant on community land. Both AHs are entitled to compensation for the loss of trees during implementation. c) Impact on Buildings and Structures
82. In accordance with the LARP, there are 3 illegal non-residential structures under Subsection 1 which, in case of legalization, are entitled to compensation. The concrete wall on Dzorakap community land was not legalized. The other two structures (1 restaurant and 1 hotel) belong to 1 AH and are entitled to compensation. d) Impact on Business and Employment
83. There are no cases of Project impact on business or employment loss in Subsection 1. e) Relocation
84. No cases or physical relocation under Subsection 1. f) Impact on Socially Vulnerable and Severe Impact
85. According to the approved LARP, 42 AHs were given vulnerability status under Subsection 1. 26 of them are poor AHs, 11 – female-headed, 5 – headed by an elderly and 1 – by a disabled AP.
86. As a result of LARP implementation, the number of poor AHs increased by 8 (AHs presented the necessary documents which were not complete during LARP planning stage). External monitoring identified another poor AH. As a consequence, the total number of AHs entitled to Rehabilitation Allowance under Subsection 1 totaled to 51. Table 8. Impact on Vulnerable and Severely AHs
Vulnerable AHs, N Severely AHs, N a. Planned under LARP 42 102 Talin-Lanjik (ADB) 20 47 Lanjik-Gyumri (EIB) 22 55 b. Implementation tallies 50 100 Talin-Lanjik (ADB) 25 47 Lanjik-Gyumri (EIB) 25 53 c. Adjusted tallies (EMA) 51 102 Talin-Lanjik (ADB) 25 47 Lanjik-Gyumri (EIB) 26 55 Source: EDRC, External Monitoring Results
87. The planned number of severely affected HHs was 102 (3 leaseholders, 8 informal tenants and 91 land owners). As a result of LARP implementation, 100 AHs were categorized as severely AHs. However, according to the EMA data, the actual number of severely AHs is 102. The structure of severely AHs changed since the above mentioned 1 informal tenant was legalized to become a land owner, was also subject to severe impact. As a consequence, the structure of severely AHs is as follows: 3 leaseholders, 7 informal tenants and 92 land owners.
Economic Development and Research Center, www.EDRC.am 19 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Table 9. LARP implementation in the 1st Subsection by the types of AHs (N)
Community
AHs AHs
Land
Total Total
AHs*
owners
Tenants
Informal Informal Disabled
Poor AHs Poor
Vulnerable Vulnerable
Total AHs * Total
headed AHs headed
SeverelyAHs
Leaseholders
Elderly headed headed Elderly Female headed headed Female Talin-Lanjik (ADB) 77 70 5 7 46 25 19 6 1 0 Lanjik 61 54 5 7 37 18 13 5 1 0 Sarnaghbyur 16 16 0 0 9 7 6 1 0 0 Lanjik-Gyumri (EIB) 103 92 4 9 56 26 16 5 4 1 Lanjik 17 15 1 1 5 5 4 0 1 0 Sarnaghbyur 17 14 0 3 1 6 4 2 0 0 Dzorakap 69 63 3 5 50 15 8 3 3 1 Total 180 162 9 16 102 51 35 11 5 1 Note: * without double counting. Source: EDRC, External Monitoring Results 88. Thus, according to the external monitoring, the total number of AHs under Subsection 1 reached 180, including 162 land owners, 9 lease holders on community land and 16 informal tenants on community land. 49 out of 162 land owners and 2 informal tenants are Vulnerable. 102 AHs were severely AHs. 51 AHs out of total 180 AHs are Vulnerable AHs, including 49 land owners and 2 informal tenant AHs. 27 severely AHs are also severely AHs. Key findings Subsection 1 affected 5 state, 11 community and 100 private land plots. The number of affected HHs equals 180, including 51 AHs are vulnerable. There are also 9 leaseholders and 16 informal tenants. 102 AHs were severely affected by the Project, including 27 of them are vulnerable. There are cases of loss of crops and trees and impact on building/structures. There are no cases of loss of business or employment, as well as physical relocation. The actual Project impact in Lanjik-Gyumri section deviates from LARP planned and implementation indicators only due to the numbers of Vulnerable and severely AHs. Compensation program shall correspond to the actual impact identified by the EMA.
Economic Development and Research Center, www.EDRC.am 20 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 VI. Assessment of Provided Compensation a) Compensation for the Loss of Land
89. Compensation for permanent loss of land is based on the replacement cost which is calculated as the higher of land market value or cadastral value plus its 15 percent (see table 4)15. It is also possible to providing a land plot acceptable to AP in the same community with a location and productivity commensurate to the affected plot of land, at the consent of MOTC, if such commensurate land plot exists. The agricultural, as well as non-agricultural lands under Subsection 1 were compensated for on the basis of replacement cost based on the market value. The unit rates of compensation were estimated by a qualified independent valuator.
90. 162 AHs were compensated for loss of 100 private land plots. Compensation process is successfully completed for 70 land plots to 119 AHs: in total, AMD 28,775,572 has been transferred. Compensation calculation complies with LARP provisions.
91. Acquisition and compensation processes of the remaining 30 land plots (18,987 sq. m) takes place though expropriation processes. AMD 2,202,435 has been transferred to court accounts as deposits intended for 43 AHs. Legal land owners or these land plots have (or will have) the opportunity to receive compensation in line with LARP provisions upon the acquisition of their property. Therefore, the compensation process for these 43 AHs regarding 30 private land plots can be deemed as completed, too. Table 10. Compensation for permanent loss of land under Subsection 1
Item: Private land plots, Area Land owner AHs, N Compensation, AMD Permanent loss of land N sq.m. Total 100 114,322 162 30,978,008 Talin-Lanjik (ADB) 38 58,535 70 11,583,159 Lanjik-Gyumri (EIB) 62 55,787 92 19,394,849 Compensation 70 95,335 119 28,775,572 Talin-Lanjik (ADB) 23 47,191 45 10,205,417 Lanjik-Gyumri (EIB) 47 48,144 74 18,570,156 Under expropriation 30 18,987 43 2,202,435 Talin-Lanjik (ADB) 15 11,344 25 1,377,742 Lanjik-Gyumri (EIB) 15 7,643 18 824,693 Source: EDRC, External Monitoring Results
92. In the case of leaseholders, compensation for the loss of land is calculated on the basis of market value taking into account the remaining years of lease term (see Table 4).
93. 5 out of 9 leaseholders were compensated for the loss of land, while compensation of the remaining 4 is being regulated under expropriation measures. The total amount of compensation to leaseholders equals AMD 335,997 and complies with LARP provisions. Table 11. Compensation of leaseholders for loss of land in the 1st Subsection
Item: Leaseholder AHs, Compensation for loss Leaseholder on N of land, AMD Community Land Total 9 335,997 Talin-Lanjik (ADB) 5 154,849 Lanjik-Gyumri (EIB) 4 181,148
Economic Development and Research Center, www.EDRC.am 21 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Compensation 5 196,199 Talin-Lanjik (ADB) 1 15,052 Lanjik-Gyumri (EIB) 4 181,148 Under expropriation 4 139,798 Talin-Lanjik (ADB) 4 139,798 Lanjik-Gyumri (EIB) 0 0 Source: EDRC, External Monitoring Results Key findings 119 out of total 162 AHs entitled to compensation for permanent loss of land were compensated in accordance with LARP provisions, while the compensation of 43 AHs will be completed through expropriation processes. 15 private land plots are subject to expropriation in Talin-Lanjik (ADB) section: 25 AHs in total. Another 15 private land plots are subject to expropriation in Lanjik-Gyumri (EIB) section: 18 AHs in total. For land plots under expropriation measures, the PMU has transferred the total amount of compensations as defined under the LARP. Thus, compensation program for permanent loss of land under Subsection 1 can be deemed completed and compliant to LARP provisions.
b) Compensation for Crops
94. Compensation for the loss of crops is intended as cash compensation at current gross market rate (inclusive of inputs) value of 1 year’s harvest by default. The average price and yield data on each crop are used as a basis for the determination the compensation amount. Notably, yield data varies across communities.
95. Losses of crops both on private, leased and informally used land are eligible for compensation.
96. As a result of LARP implementation, 169 AHs entitled to compensation for the loss of crops; 120 AHs were compensated. Compensation unit rates and amounts comply with LARP provisions.
97. Compensation of remaining 49 AHs (31 land plots, 27,340 sq. m.) is under expropriation measures. AMD 2,457,409 has been transferred to court accounts as deposits intended for 49 AHs. Unit rates and compensation amounts comply with LARP provisions. Table 12. Compensation for affected crops in the 1st Subsection
Item: Plots, Area, AHS, Land owner Informal tenant Compensation, Affected crops N sq.m. N AHs, N AHs, N AMD 1. 2. 3. 4. 4.1 4.2 5 Total 104 149,534 169 8 15 22,048,228 Community land 10 37,729 10 8 2 3,570,334 Private land 94 111,805 159 0 13 18,477,894 Talin-Lanjik (ADB) 42 83,925 75 4 7 8,059,097 Lanjik-Gyumri (EIB) 62 65,609 94 4 8 13,989,131 Compensation 73 122,194 120 5 8 19,590,819 Community land 6 29,299 6 5 1 3,021,832 Private land 67 92,895 114 0 7 16,568,986 Talin-Lanjik (ADB) 24 64,209 44 1 2 6,664,317 Lanjik-Gyumri (EIB) 49 57,985 76 4 6 12,926,502 Under expropriation 31 27,340 49 3 7 2,457,409 Community land 4 8,430 4 3 1 548,502 Private land 27 18,910 45 0 6 1,908,907 Talin-Lanjik (ADB) 18 19,716 31 3 5 1,394,780 Lanjik-Gyumri (EIB) 13 7,624 18 0 2 1,062,629
Economic Development and Research Center, www.EDRC.am 22 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Source: EDRC, External Monitoring Results Key findings 120 out of total 169 AHs entitles to compensation for crops were compensated in accordance with LARP provisions. Compensation amounts for the remaining 49 AHs were transferred to the deposit account of the court in accordance with LARP provisions. 31 AHs in Talin-Lanjik (ADB) section can receive compensation for crops as a result of expropriation measures in accordance with LARP provisions. 15 AHs in Lanjik-Gyumri (EIB) section can receive compensation for crops as a result of expropriation measures in accordance with LARP provisions. Compensation for the loss of crops in Subsection 1 is completed and complies with LARP provisions.
c) Compensation for Trees
98. In line with rights envisaged by LARP, monetary compensation for trees and harvest was calculated at market prices based on the type, age and yield of trees. Informal tenants on community land are entitled to full compensation for trees at the consent of land owner.
99. 2 AHs are entitled to compensation for fruit trees under Subsection 1, including 1 land owner and 1 informal tenant on community land. Both AHs were compensated in accordance with LARP provisions. Table 13. Compensation for affected trees in the 1st Subsection
Item: Plots, Land owner AHs, Informal tenant Fruit trees, N Compensation, AMD Affected trees N N AHs, N 1. 2. 3. 4. 5. 6. Total 2 13 1 1 410,400 Talin-Lanjik (ADB) 0 0 0 0 0 Lanjik-Gyumri (EIB) 2 13 1 1 410,400
Source: EDRC, External Monitoring Results Key findings Compensation for trees under Subsection 1 is fully completed: 2 AHs were compensated in accordance with LARP provisions.
d) Compensation for buildings/structures
100. Under Subsection 1, 2 buildings/structures were eligible to be compensated for (1 restaurant and 1 hotel) owned by 1 AH. In accordance with LARP, compensation for buildings/structures covers compensation for the buildings/structures themselves, as well as compensation for the transportation of movable property (defined amount - AMD 150,000).
101. As a result of LARP implementation, compensation for buildings/structures was fully completed with total amount of AMD 83,460,082.
Economic Development and Research Center, www.EDRC.am 23 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Table 14. Compensation for buildings / structures loss in the 1st Subsection
Item: Plots, Buildings / AHs, Compensation, Buildings & Structures N structures, N N AMD Total 2 2 1 83,610,082 Talin-Lanjik (ADB) 0 0 0 0 Lanjik-Gyumri (EIB) 2 2 1 83,460,082 Compensation for Transportation 2 2 1 150,000 expenses
Source: EDRC, External Monitoring Results Key findings Compensation for buildings/structures (including for transportation expenses of movable property) under Subsection 1 is completed and complies with LARP provisions.
e) Compensation Entitlements for Vulnerable groups
102. As per approved LARP, additional allowances were envisaged for vulnerable groups, particularly for female-headed AHs, elderly-headed AHs, as well as AHs registered in the Family Benefit System (FBS). The allowance was as the equivalent to 6 months of minimum salary16.
103. According to the external monitoring results, 51 vulnerable AHs are entitled to Rehabilitation Allowances under Subsection 1.
104. As a result of LARP implementation, 37 out of 51 vulnerable AHs received one-off rehabilitation allowances and were compensated in accordance with the rights set by the LARP (AMD 330,000 each).
105. Compensation for 12 vulnerable AHs is being regulated under expropriation measures, for which AMD 3,960,000 (the total amount of one-off Rehabilitation allowances for those AHs) was transferred to the court deposit account.
106. External monitoring revealed that 2 vulnerable AHs were not compensated: 1 elderly-headed AH (Dzorakap, lot-code 08-073-0046-0007, EIB section) and 1 poor AHs (Dzorakap, lot-code 08-073-0122- 0023, EIB section) 17. The PMU is planning to take corrective measures. Table 15. Allowances for socially vulnerable AHs in the 1st Subsection
Poor Female Elderly Disabled Total Vulnerable Item: Compensation, AHs, headed AHs, headed AHs, headed AHs, AHs without double Vulnerability AMD N N N N counting, N Total 34 11 5 1 51 16,830,000 Talin-Lanjik (ADB) 19 6 1 0 25 8,250,000 Lanjik-Gyumri (EIB) 15 5 4 1 26 8,580,000 Compensation 27 7 3 1 37 12,210,000 Talin-Lanjik (ADB) 14 3 1 0 17 5,610,000 Lanjik-Gyumri (EIB) 13 4 2 1 20 6,600,000 Under expropriation 7 4 1 0 12 3,960,000 Talin-Lanjik (ADB) 5 3 0 0 8 2,640,000 Lanjik-Gyumri (EIB) 2 1 1 0 4 1,320,000 Not compensated 1 0 1 0 2 660,000 /Adjustment need
16 The minimum salary is AMD 55 thousand per month. 17 The PMU noted that compensation was not paid since it was not included in the ADB Evaluation Consultant’s calculations.
Economic Development and Research Center, www.EDRC.am 24 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
Talin-Lanjik (ADB) 0 0 0 0 0 0 Lanjik-Gyumri (EIB) 1 0 1 0 2 660,000
Note: of the Elderly headed AHs is also Female headed AH. Source: EDRC, External Monitoring Results Key findings 37 out of total 51 vulnerable AHs under Subsection 1 were compensated in accordance with LARP provisions. Compensation amount for 12 other AHs was transferred to the court deposit account in compliance with LARP provisions. 2 vulnerable AHs were not paid the rehabilitation allowances they are entitled to. The PMU is planning to take corrective measures.
g) Entitlements for the Cases of Severe Impact
107. According to LARP provisions, cash assistance is intended for severely AHs. AHs losing 10% and more of their agricultural lands are entitled to one additional crop compensation covering 1-year yield18. 108. 81 out of total 102 severely AHs were compensated as a result of LARP implementation. The total compensation amount equaled AMD 17,969,828. Compensation of 79 AHs out of total 81 complies with LARP provisions. Table 16. Allowances for severe impact in the 1st Subsection
Item: Plots, Area, AHs, Compensation, AMD Severe Impact N sq.m. N Total 51 103,752 102 19,570,133 Talin-Lanjik (ADB) 21 52,787 47 6,569,305 Lanjik-Gyumri (EIB) 30 50,964 55 13,000,828 Compensation 40 81,639 81 17,969,828 Talin-Lanjik (ADB) 16 42,842 35 6,104,746 Lanjik-Gyumri (EIB) 24 38,797 46 11,865,082 Under expropriation 9 16,678 19 1,413,078 Talin-Lanjik (ADB) 5 9,945 12 464,559 Lanjik-Gyumri (EIB) 4 6,732 7 948,519 Difference -2 -5,435 -2 -187,227 Talin-Lanjik (ADB) 0 0 0 0 Lanjik-Gyumri (EIB) -2 -5,435 -2 -187,227 Source: EDRC, External Monitoring Results
109. As a result of LARP implementation, compensation of 19 AHs entitled to compensation for severe impact (3 informal tenants and 16 land owners) is being regulated under the expropriation measures. The amount of compensation to these AHs - AMD 1,413,078 – was transferred to the court deposit account. Compensation complies with LARP provisions.
110. 2 leaseholder severely AHs in Dzorakap community were not compensated. As a result, 100 AHs were compensated instead of 102 AHs entitled to compensation.
111. Compensation of 2 AHs in Dzorakap community (lot-code 08-073-0045-0009, EIB section) does not comply with LARP provisions. The amount of 1 year’s crop from fruit trees (AMD 8,400) was not included
18 Those AHs that lost more than 10% of land area but did not have any crops at the time of evaluation were not considered as severely AHs. Meanwhile, in accordance with the approach under T2, AHs that did not have any crops at the time of evaluation but had crops the previous year, received compensation in amount equivalent to 6 months minimum salaries.
Economic Development and Research Center, www.EDRC.am 25 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
in the calculation of compensation for severe impact in the Rehabilitation Allownace Size Determination Report of Appraisal Society CJSC. As a consequence, the compensation for severe impact was calculated in full (AMD 990,913 instead of AMD 999,313 which includes the crop compensation amount).
112. In order to ensure compliance of compensation to these AHs to LARP provisions, the PMU initiated corrective measures (see Table). Table 17.Adjustment need for Severe impact compensation in the 1st Subsection
Item: Plots, Area, AHS, Compensation, Adjustment need N sq.m. N AMD Severe Impact Adjustment need 3 6,993 4 195,627 Talin-Lanjik (ADB) 0 - 0 0 Lanjik-Gyumri (EIB) 3 6,993 4 195,627 Dzorakap 08-073-0120-0080 1 1,642 1 56,553 Dzorakap 08-073-0047-0016 1 3,793 1 130,674 Dzorakap 08-073-0045-0009 1 1,558 2 8,400 Source: EDRC, External Monitoring Results Key findings Compensation for severe impact in Talin-Lanjik (ADB) section was fully completed in compliance with LARP provisions. In order to complete compensation for severe impact in Lanjik-Gyumri (EIB) section in compliance with LARP provisions, the PMU will take corrective actions for 4 AHs with total amount of entitled compensation of AMD 195,627.
Economic Development and Research Center, www.EDRC.am 26 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 VII. LARP Implementation Budget
113. The Table below summarizes the LARP implementation indicators, as well as presents comparison of planned and actual LARP implementation budgets for Subsection 1.
114. According to external monitoring results, total actual amount of compensation program under Subsection 1 equaled AMD 199,337,047. Another AMD 855,627 is projected to cover the corrective measures by PMU which will total to AMD 200,192,673 as total budget for compensation under Subsection 1. Table 18. Comparison of LARP planned budget versus the actual implementation tallies in the 1st Subsection
o/w Under Adjusted Planned under Implementati o/w Adjustment expropriatio Implementati Difference Note LARP on tallies Actual tallies required Item n on tallies a. b. b.1 b.2 c. d. b - a d - a No Total land plots 216 216 179 37 0 216 0 0 State land plots 5 5 5 0 0 5 0 0 Community land 111 111 104 7 0 111 0 0 plots Private land plots 100 100 70 30 0 100 0 0 Total affected area 504,425 504,425 463,610 40,815 0 504,425 0 0 (sq.m.) Compensation, AMD Land compensation 51,384,434 51,384,434 46,846,866 4,537,568 0 51,384,434 0 0 Community land 20,406,426 20,406,426 18,071,293 2,335,133 0 20,406,426 0 0 plots Private land plots 30,978,008 30,978,008 28,775,572 2,202,435 0 30,978,008 0 0 Leaseholders (for land) 335,997 335,997 196,199 139,798 0 335,997 0 0 Crops 22,048,228 22,048,228 19,590,819 2,457,409 0 22,048,228 0 0 Trees 410,400 410,400 410,400 0 0 410,400 0 0 Structures and buildings 86,052,874 83,460,082 83,460,082 0 0 83,460,082 -2,592,792 -2,592,792 4 Transportation 150,000 150,000 150,000 0 0 150,000 0 0 Business 0 0 0 0 0 0 0 0 Employment 0 0 0 0 0 0 0 0 Relocation 0 0 0 0 0 0 0 0 Vulnerability 13,860,000 16,170,000 12,210,000 3,960,000 660,000 16,830,000 2,310,000 2,970,000 1, 2 Severe impact 19,570,133 19,382,906 17,969,828 1,413,078 195,627 19,578,533 -187,227 8,400 3 Registration services 5,823,000 5,823,000 5,177,300 645,700 0 5,823,000 0 0 Court services 3,498,800 172,000 0 172,000 0 172,000 -3,326,800 -3,326,800 5 Total (AMD) 203,133,866 199,337,047 186,011,494 13,325,553 855,627 200,192,673 -3,796,819 -2,941,193 Source: EDRC, External Monitoring Results Note 1: Compensation amount increased by AMD 2,640,000 due to increase in number of AHs by 8 during the implementation phase. Note 2: Compensation amount needs to be corrected: 2 AHs were not compensated during LARP implementation. Note 3: Compensation amount needs to be corrected: 2 AHs were not fully compensated during LARP implementation. Note 4: Compensation amount needs to be corrected: 2 leaseholder AHs were not compensated during LARP implementation. Note 5: Compensation amount decreased by AMD 2,592,792. The illegal concrete wall (lot-code 08-073-0122-0001) on Dzorakap community land was not legalized during the LARP implementation for which AMD 2,592,792 was envisaged as compensation under LARP. Note 6: AMD 3,498,800 was envisaged under LARP for court services for all 6 Subsections under T3
Economic Development and Research Center, www.EDRC.am 27 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 a) LARP Implementation Budget: Talin-Lanjik section
115. The Table below summarizes the LARP implementation indicators in communities under Talin-Lanjik section of Subsection 1, as well as presents comparison of planned and actual LARP implementation budgets for Talin-Lanjik section.
116. According to the external monitoring results, the compensation program totaled to AMD 44,791,335 in this section. Table 19.LARP budget of Talin-Lanjik Section in the 1st Subsection
o/w Under Adjusted Planned Implementati o/w Adjustment expropriatio Implementati Difference Note under LARP on tallies Actual tallies required Item n on tallies a. b. b.1 b.2 c. d. b - a d - a No Total land plots 72 72 51 21 0 72 0 0 State land plots 0 0 0 0 0 0 0 0 Community land plots 34 34 28 6 0 34 0 0 Private land plots 38 38 23 15 0 38 0 0 Total affected are (sq.m.) 148,444 148,444 118,191 30,253 0 148,444 0 0 Compensation, AMD Land compensation 19,548,584 19,548,584 16,077,318 3,471,266 0 19,548,584 0 0 Community land plots 7,965,425 7,965,425 5,871,901 2,093,524 0 7,965,425 0 0 Private land plots 11,583,159 11,583,159 10,205,417 1,377,742 0 11,583,159 0 0 Leaseholders (for land) 154,849 154,849 15,052 139,798 0 154,849 0 0 Crops 8,059,097 8,059,097 6,664,317 1,394,780 0 8,059,097 0 0 Trees 0 0 0 0 0 0 0 0 Structures and buildings 0 0 0 0 0 0 0 0 Transportation 0 0 0 0 0 0 0 0 Business 0 0 0 0 0 0 0 0 Employment 0 0 0 0 0 0 0 0 Relocation 0 0 0 0 0 0 0 0 Vulnerability 6,600,000 8,250,000 5,610,000 2,640,000 0 8,250,000 1,650,000 1,650,000 1 Severe impact 6,569,305 6,569,305 6,104,746 464,559 0 6,569,305 0 0 Registration services 2,113,500 2,113,500 1,752,700 360,800 0 2,113,500 0 0 - - Court services 2,312,000 96,000 0 96,000 0 96,000 2 2,216,000 2,216,000 Total (AMD) 45,357,335 44,791,335 36,224,132 8,567,203 0 44,791,335 -566,000 -566,000 Source: EDRC, External Monitoring Results
Note 1: Compensation amount increased by AMD 1,650,000 due to increase in number of vulnerable AHs by 5 during the implementation phase. Note 2: AMD 2,312,000 was envisaged under LARP for court services for all 6 Subsections in Talin-Lanjik section: AMD 96,000 was spent under Subsection 1.
b) LARP Implementation Budget: Lanjik-Gyumri section
117. The Table below summarizes the LARP implementation indicators in communities under Lanjik-Gyumri section of Subsection 1, as well as presents comparison of planned and actual LARP implementation budgets for this section.
Economic Development and Research Center, www.EDRC.am 28 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
118. According to the external monitoring results, the compensation program totaled to AMD 154,545,712 in this section. Additional AMD 855,627 will be necessary for the corrective measures; as a consequence, the total budget for this section will total to AMD 155,401,339. Table 20. LARP budget of Lanjik-Gyumri Section in the 1st Subsection
Adjusted Planned Implementati o/w o/w Under Adjustment Implementation Difference Note under LARP on tallies Actual tallies expropriation required Item tallies a. b. b.1 b.2 c. d. b - a d - a No Total land plots 144 144 128 16 0 144 0 0 State land plots 5 5 5 0 0 5 0 0 Community land plots 77 77 76 1 0 77 0 0 Private land plots 62 62 47 15 0 62 0 0 Total affected are (sq.m.) 355,981 355,981 345,419 10,561 0 355,981 0 0 Compensation, AMD Land compensation 31,835,850 31,835,850 30,769,548 1,066,302 0 31,835,850 0 0 Community land plots 12,441,001 12,441,001 12,199,392 241,609 0 12,441,001 0 0 Private land plots 19,394,849 19,394,849 18,570,156 824,693 0 19,394,849 0 0 Leaseholders (for land) 181,148 181,148 181,148 0 0 181,148 0 0 Crops 13,989,131 13,989,131 12,926,502 1,062,629 0 13,989,131 0 0 Trees 410,400 410,400 410,400 0 0 410,400 0 0 Structures and buildings 86,052,874 83,460,082 83,460,082 0 0 83,460,082 -2,592,792 -2,592,792 4 Transportation 150,000 150,000 150,000 0 0 150,000 0 0 Business 0 0 0 0 0 0 0 0 Employment 0 0 0 0 0 0 0 0 Relocation 0 0 0 0 0 0 0 0 Vulnerability 7,260,000 7,920,000 6,600,000 1,320,000 660,000 8,580,000 660,000 1,320,000 1, 2 Severe impact 13,000,828 12,813,601 11,865,082 948,519 195,627 13,009,228 -187,227 8,400 3 Registration services 3,709,500 3,709,500 3,424,600 284,900 0 3,709,500 0 0 Court services 1,186,800 76,000 0 76,000 0 76,000 -1,110,800 -1,110,800 5 Total (AMD) 157,776,530 154,545,712 149,787,362 4,758,350 855,627 155,401,339 -3,230,819 -2,375,192
Source: EDRC, External Monitoring Results
Note 1: Compensation amount increased by AMD 990,000 due to increase in number of vulnerable AHs by 3 during the implementation phase. Note 2: Compensation amount needs to be corrected: 2 AHs were not compensated during LARP implementation. Note 3: Compensation amount needs to be corrected: 2 severely AHs (Dzorakap, lot-code 08-073-0045-0009) were not fully compensated during LARP implementation as their compensation for severe impact was not calculated correctly. 2 leaseholder AHs (Dzorakap, lot-code 08-073-0120-0080 and 08-073-0047-0016) were not compensated during LARP implementation. Note 4: Compensation amount decreased by AMD 2,592,792. The illegal concrete wall (lot-code 08-073-0122-0001) on Dzorakap community land was not legalized during the LARP implementation for which AMD 2,592,792 was envisaged as compensation under LARP. Note 5: AMD 1,186,800 was envisaged under LARP for court services for all 6 Subsections in Lanjik-Gyumri section: AMD 76,000 was spent under Subsection 1.
Economic Development and Research Center, www.EDRC.am 29 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 VIII. Public Satisfaction
During the external monitoring, based on a questionnaire prepared in advance, structured interviews were held with about 30 percent all AHs in T3 Subsection 1. Data received were compared with the results of desk analysis, in some cases AHs, representative of LGBs and the PMU were contacted to verify and cross-check data and information. The interviews also provide a general insight into AH satisfaction with the LARP process. According to the survey, all AHs participated in the Public Hearing and Consultation process. As a result, 63 percent of AHs considered the process useful, 31 percent not so useful and 2 percent did not have an answer. 4 percent of AHs considered the Public hearing and Consultation process not useful. Figure 1. Evaluation of Public Consultations
2 4 100 4 4 4
80 31 26 36
60
40 63 65 61 20
0 Total ABD EIB
Very useful Not so useful Not useful Difficuilt to answer
Source: EDRC, External Monitoring Results All AHs noted that they had been officially notified on the size and principles of compensation. During the official notification stage, all the required documents on DMS and inventory were sent to the all AHs bypost (description protocol, maps, etc.). Notably, all AHs mentioned that they agree with the data on land area, crops and structures measurements and inventory. Subjective evaluations of AH satisfaction with various LARP implementation processes are shown in Table 17. Overall, satisfaction is high with respect to all LARP processes. About 10% of AHs are dissatisfied who believe that they would better off if the land was not acquired.
Table 21. Satisfaction of AHs from the LARP implementation processes
Completely Partially Not so Very Dissatisfied Total satisfied satisfied satisfied dissatisfied Total 35.3% 33.3% 21.6% 5.9% 3.9% 100.0% Processes of Measurement and ABD 34.8% 43.5% 8.7% 8.7% 4.3% 100.0% Description Protocol formulation EIB 35.7% 25.0% 32.1% 3.6% 3.6% 100.0% Total 36.0% 36.0% 18.0% 6.0% 4.0% 100.0% Assets and property valuation ABD 36.4% 45.5% 4.5% 9.1% 4.5% 100.0% EIB 35.7% 28.6% 28.6% 3.6% 3.6% 100.0% Total 40.8% 28.6% 20.4% 6.1% 4.1% 100.0% Additional compensation amount (crop, ABD 50.0% 31.8% 4.5% 9.1% 4.5% 100.0% trees and allowances) EIB 33.3% 25.9% 33.3% 3.7% 3.7% 100.0% Total amount of compensation Total 44.0% 26.0% 20.0% 6.0% 4.0% 100.0%
Economic Development and Research Center, www.EDRC.am 30 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1
ABD 50.0% 31.8% 4.5% 9.1% 4.5% 100.0% EIB 39.3% 21.4% 32.1% 3.6% 3.6% 100.0% Total 48.0% 22.0% 20.0% 4.0% 6.0% 100.0% Payment procedure ABD 59.1% 18.2% 9.1% 9.1% 4.5% 100.0% EIB 39.3% 25.0% 28.6% 0.0% 7.1% 100.0% Total 45.1% 25.5% 19.6% 3.9% 5.9% 100.0% Program management and organization ABD 56.5% 21.7% 8.7% 8.7% 4.3% 100.0% level EIB 35.7% 28.6% 28.6% 0.0% 7.1% 100.0% Source: EDRC, External Monitoring Results The Survey did not identify any AHs that have complaints or disagreements with respect to LARP implementation. Key findings The level of overall satisfaction from LARP implementation processes in Subsection 1 is very high.
Economic Development and Research Center, www.EDRC.am 31 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 IX. EMA Conclusion on LARP Implementation in Talin-Lanjik Section (ADB)
During the external monitoring of North-South Road Corridor Investment Project Tranche 3 Subsection 1 LARP implementation, all activities envisaged by the methodology were carried out, including a number of quantitative and qualitative research methods. The level of confidence of collected data and accuracy of results is quite high and allow drawing conclusions. In particular, as a result of compliance review of LARP implementation in Tranche 3 Talin-Lanjik Subsection 1 the followings are identified:
1) Project impact area covered 72 land plots in 2 rural communities (including 34 community and 38 private land plots) with total area of 148,444 sq. m. 77 HHs were affected, including 61 in Lanjik and 16 – in Sarnaghbyur communities. 70 AHs out of all in the affected area are land owners of private land. 5 out of total 77 AHs were affected as leaseholders and 7 – as informal tenants.
2) 25 AHs were vulnerable, while 19 of them were poor. 46 AHs were severely affected under Subsection 1.
3) Crops were also affected. There were no cases of impact on trees, buildings/structures, loss of business or employment, neither were relocation cases. 4) Planned and actual (implementation) indicators of LARP mostly coincided. The number of vulnerable AHs was higher compared to the plan. Therefore, rehabilitation allowance budget exceeded the plan. Total LARP implementation budget under Subsection 1 amounted to AMD 44,791,335. 5) Institutional structure and management of LARP Implementation comply with defined provisions. The level of satisfaction from Project management and organization is high among AHs. 6) Public hearings and APs awareness increasing processes were organized in line with LARP provisions – prior to the start date of LARP Implementation. 65% of AHs believed this process was useful, while 26% - partly useful. 7) Grievance Redress mechanism and Grievance Review Group were established. 2 grievances (applications) were submitted under Talin-Lanjik section of Subsection 1 which were adequately resolved at the benefit of APs. 8) LARP was implemented under circumstances of high satisfaction level of AHs. Based on the above mentioned findings, we believe that LARP implementation in Subsection 1 is effectively completed in compliance with operation procedures and under circumstances of high level of satisfaction among APs.
Economic Development and Research Center, www.EDRC.am 32 NORTH-SOUTH ROAD CORRIDOR INVESTMENT PROJECT, TRANCHE 3 (TALIN-LANJIK, LANJIK-GYUMRI), LARP IMPLEMENTATION COMPLIANCE REPORT, SUBSECTION 1 IX. EMA Conclusion on LARP Implementation in Lanjik-Gyumri Section (EIB)
During the external monitoring of North-South Road Corridor Investment Project Tranche 3 Subsection 1 LARP implementation, all activities envisaged by the methodology were carried out, including a number of quantitative and qualitative research methods. The level of confidence of collected data and accuracy of results is quite high and allow drawing conclusions. In particular, as a result of compliance review of LARP implementation in Tranche 3 Lanjik-Gyumri Subsection 1 the followings are identified:
1) Project impact area covered 144 land plots in 3 rural communities (including 5 state, 77 community and 62 private land plots) with total area of 355,981 sq. m. 103 HHs were affected, including 17 in Lanjik, 17 in Sarnaghbyur and 69 in Dzorakap communities. 92 AHs out of all in the affected area are land owners of private land. 4 77 AHs were affected as leaseholders and 9 – as informal tenants. 2) 26 AHs were vulnerable, while 16 of them were poor. 56 AHs were severely affected under Subsection 1. 3) Crops were also affected; in addition, there were cases of loss of trees and buildings/structures. There were no cases of loss of business and employment, neither were relocation cases. 4) Planned and actual (implementation) indicators of LARP mostly coincided without major deviations. Compensation to 2 severely AHs was incomplete, while another 2 severely AHs were not compensated at all. 2 vulnerable AHs were not paid Rehabilitation Allowances. 5) Total LARP implementation budget under Subsection 1 amounted to AMD 154,454,712, however, additional AMD 855,627 is required for corrective measures. 6) Institutional structure and management of LARPs Implementation comply with defined provisions. The level of satisfaction from Project management and organization is high among AHs. 7) Public hearings and APs awareness increasing processes were organized in line with LARP provisions – prior to the start date of LARP Implementation. 61% of AHs believed this process was useful, while 36% - partly useful. 8) Grievance Redress mechanism and Grievance Reveiw Group were established. No grievances were submitted under Lanjik-Gyumri section of Subsection 1. 9) LARP was implemented under circumstances of high satisfaction level of AHs. Taking into account the above listed findings, the EMA recommends the following corrective actions to be taken and views them as crucial: 1) Payment of one-off Rehabilitation Allowance for vulnarivility to the owners of private land in Dzorakap (lot-code 08-073-0046-0007) (AMD330,000), 2) Payment of one-off Rehabilitation Allowance for vulnarivility to the owners of private land in Dzorakap (lot-code 08-073-0122-0023) (AMD 330,000), 3) Payment of the part of one-off Rehabilitation Allowance for sever impact to the owners (2 AHs) of private land in Dzorakap (lot-code 08-073-0045-0009) (AMD 8,400) 4) Payment of one-off Rehabilitation Allowance for severe impact to the leaseholder in Dzorakap (lot-code 08-073-0047-0016) (AMD 130,674), 5) Payment of one-off Rehabilitation Allowance for severe impact to the leaseholder in Dzorakap (lot-code 08-073-0120-0080) (AMD 56,553). Based on the above mentioned findings, we believe that, upon the full completion of recommended corrective actions, LARP implementation in Lanjik-Gyumri can be deemed effectively completed in compliance with operation procedures and under circumstances of high level of satisfaction among APs. The official confirmation of the PMU is the guarantee for full implementation of corrective actions, while the compliance review for these actions can be competed under compliance review of T3 Subsection 2.
Economic Development and Research Center, www.EDRC.am 33