detailed design for e-60 highway section from zemo osiauri ... final report of rap for lot-2… ·...

Final RAP

Roads Department of the Ministry of Regional Development andInfrastructure

Detailed Design for E-60 Highway section from ZemoOsiauri to Chumateleti

Upgrading and Construction of

Section 2: Zemo Osiauri – Chumateleti

(Kakalatkhevi- East Portal of Rikoti Tunnel)

(km 5.800 - km 14.083)

Resettlement Action Plan

Final

Under the East-West Highway Corridor Improvement Project

28 April 2016

Final RAP

CURRENCY EQUIVALENTS

$1.00 = GEL2.233 (as of 28 April 2016)

ABBREVIATIONS

ACS – acquisition and compensation schemeADB – Asian Development BankRPF Resettlement Policy FrameworkCSC – construction supervision consultantAH – affected familyAP – Affected PersonCBO – community based organizationDMS – detailed measurement surveyRDRD – Road Development and Resettlement DivisionGoG – Government of GeorgiaGRC – grievance redress committeeIA – implementing agencyIFI - International Financial InstitutionIP – indigenous peoplesEAEMA –

Executive Agencyexternal monitoring agency

km – KilometreLAR – land acquisition and resettlementLARC – land acquisition and resettlement commissionLARF – land acquisition and resettlement frameworkRAP – land acquisition and resettlement planM&E – monitoring and evaluationMFF – multitranche financing facilityMOF – Ministry of FinanceMPR – monthly progress reportMRDI – Ministry of Regional Development and InfrastructureNAPR – National Agency of Public RegistryNGO – non-governmental organizationPEMI – persons experiencing major impactPFR – periodic financing requestPPR – project progress reportPPTA – project preparatory technical assistancePRRC – Property Rights Recognition CommissionR&R – resettlement and rehabilitationRD – Roads DepartmentRDMRDI – Roads Department of the Ministry of Regional Development and Infrastructure of

GeorgiaRoW – right of wayRU – resettlement unitSES – socioeconomic surveySPS – safeguard policy statementTRRC – Transport Reform and Rehabilitation CentreWB - World Bank

NOTEIn this report, “$” refers to US dollars.

Final RAP

Table of Contents

EXECUTIVE SUMMARY .............................................................................................3I. INTRODUCTION........................................................................................................10II. CENSUS AND IMPACT ASSESSMENT....................................................................14III. SOCIO-ECONOMIC INFORMATION .........................................................................26IV. LEGAL AND POLICY FRAMEWORK........................................................................33V. INSTITUTIONAL ARRANGEMENTS.........................................................................47VI. CONSULTATION, AND PARTICIPATION.................................................................54VII. GRIEVANCE REDRESS MECHANISM .....................................................................57VIII. IMPLEMENTATION SCHEDULE...............................................................................60IX. COSTS AND FINANCING..........................................................................................64X. MONITORING AND REPORTING .............................................................................73

List of Figures

FIGURE 1.1 PROJECT LOCATION ......................................................................................13FIGURE 5.1 LAR ORGANIZATION CHART .........................................................................53FIGURE 7.1 GRIEVANCE RESOLUTION AND ACQUISITION PROCESS ..........................59

Annexes

Annex 1. Valuation MethodologyAnnex 2. Legalization ProcedureAnnex 3. Information LeafletAnnex 4. Protocols of the Public Consultation MeetingsAnnex 5. Land Acquisition and Compensation Scheme (ACS)

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GLOSSARY

Beneficiary Community: All persons and households situated within the government-owned oracquired property who voluntarily seek to avail and be part of the Project and represented by acommunity association that is duly recognized by the community residents, accredited by the localgovernment, 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 theirlosses, to restore their economic and social base.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 alienateall or part of the land a person owns or possesses to the ownership and possession of thegovernment agency for public purpose in return for a compensation.Affected People (AP): Individuals affected by Project-related impacts.Affected Household (AH): All members of a household residing under one roof and operating as asingle economic unit, who are adversely affected by the Project. It may consist of a single nuclearfamily or an extended family group.Rehabilitation: Compensatory measures provided under the Policy Framework on involuntaryresettlement other than payment of the replacement cost of acquired assets.Relocation: The physical relocation of a AP/AH from her/his pre-Project place of residence.Replacement Cost: current fair market price of building materials and labour without depreciation ordeductions for salvaged building material , inclusive all other direct and indirect expenses associatedwith construction of new similar structures (taxes, fees, transaction costs etc.)], and the market valueof residential land, crops, trees, and other commodities.Resettlement: All measures taken to mitigate any and all adverse impacts of the Project on AP’sproperty and/or livelihood, including compensation, relocation (where relevant), and rehabilitation ofthe damaged/removed infrastructure and installations.Sakrebulo: This is the representative body of local self-government. The middle level of localgovernment consists of 67 rayons (districts) and six cities in Georgia: Tbilisi, Kutaisi, Rustavi, Poti,Batumi and Sukhumi. The representative branch of rayon level is the rayon level Local Councils(Rayon Sakrebulo) and the executive branch is represented by Rayon Gamgeoba (Gamgebeli). Theself-government level consists of settlements (self-governed cities) or groups of settlements(municipalities). Settlements could be villages, small towns (minimum 3,000 inhabitants) and cities(minimum 5,000 inhabitants). The representative and executive branches of self-government arerepresented accordingly by Local Council (Sakrebulo) and the Gamgebeli of municipal level. Theexclusive responsibilities of self-government include land-use and territorial planning, zoning,construction permits and supervision, housing, and communal infrastructure development.Severely Affected: Households (including informal settlers) that lose more than 10% of their incomegenerating land as a result of project-related land acquisition.Vulnerable groups— Vulnerable people (APs below poverty line and women or elder headedhouseholds without any other bread-winner member of family)1.Legitimate Possessors: Affected persons who have titles to their properties or are registered asthe owners of private property in the NAPR Rehabilitation: Compensatory measures other thanpayment of the replacement cost of acquired assets which are provided under this RAP aimed atimproving, or at least restoring, livelihoods and living conditions to pre-displacement levels.

1 No IDPs are affected by the project and thus the IDPs are not included in the category of vulnerable AHs

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EXECUTIVE SUMMARY

1. The Government of Georgia has received a loan from the International Bank forReconstruction and Development (IBRD or BANK) toward the cost of the Fourth East-West HighwayCorridor Improvement Project (EWHCIP), under the on-going East-West Highway ImprovementProgram being implemented by the Government of Georgia to upgrade the E-60 Highway. The RoadsDepartment of the Ministry of Regional Development and Infrastructure of Georgia (RDMRDI orClient) is the Executing Agency for the Project.

2. Main objective of the assignment is to design a new optimal 4-lane highway with the preferredtechnically safe and economic solution of the road section between Zemo Osiauri and Chumateleti onthe basis of a thorough assessment of technical, environmental, social and economic analysis andappraisal. Implementation of this project is cofinanced by World Bank (WB) and European InvestmentBank (EIB). The entire road section is subdivided in two lots: Section 1 – km0+000 km5+800 fromv. Zemo-Osiauri to v. Kakalatkhevi will be financed by EIB and Section 2 – km5+800 East Portal ofRikoti Tunnel will be financed by WB. Accordingly, two separate packages of the detailed designdocuments will be elaborated including two separate RAPs for each subsection. The WB OP 4.12 onInvoluntary Resettlement is accepted by parties as a reference document for preparing respectiveRAPs.

3. Present RAP covers the 8.283 km length Section 2 – km 5+800 East Portal of Rikoti Tunneland is located within the Khashuri Rayon. The total number of affected land plots is 164 and total areain sq. meters 317,965. In terms of tenure the affected land plots are distributed in accordance with thefollowing legal categories:- - Category 1. Titled private agricultural land plots with valid registration. No one of the affected landplot has valid registration.- Category 2. 53 titled private land plots of total area 52,786sq.m are registered with mistakes incadastral drawings. These land plots, attributed to category 2, have no legal problems with finalregistration, but only technical correction of drawings is required.- Category 3. 65 land plots of 77,779 sq.m non titled, but legalizable according to current legislationthrough 1 stage registration in NAPR. Related right establishing documents are available in Archives.- Category 4. State Owned land plots illegally occupied by private users (squatters). In this sub-section of the road we do not have any land plots occupied by squatters.- Category 5. 46 State owned land plots of 187,400 sqm not used by private users. Most of theseland plots belong to the existing road infrastructure and the rest part constitutes adjacent wind beltzone. Category 4 and 5 land parcels are not subject for compensation. There are no public land plotsin the affected area used by leaseholders.

4. Given the magnitude of impacts (there are 102 AHs in total (333 PAPs), out of which 88 areseverely affected, 15 are vulnerable AHs (49 PAPs), and 6 AHs (20 PAPs) physically relocated), theproject has been atributed to category A. The project location map is shown in Figure 1.

Table E.1 Summary Impact on Land Acquisition and ResettlementNo. Impacts Unit

Land Tenure Patterns1 Total Land parcels affected No. 1642 Total land Area to be acquired Sqm 317,965

3 Category 1. Private Properly Registered Plots No. 0sq.m 0

4 Category 2. Private /Improperly Registered (Requires re-registrationaccording to new cadastral maps

No. 53sq.m 52,786

5 Category 3 Private Legalizable No. 65sq.m 77,779

6 Category 4. State Owned Used by Private Users (Squatters) No. 0Sqm 0

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7 Category 5. State OwnedNot Used by Private Users

No. 46Sqm 187,400

Land Use and Compensation Categories8 Type 1; The land plots of agricultural status, located close to villages and

used for agricultural needs (4.5 Gel/sqm)No. 48

sq.m 66 ,396

9 Type 2; The land plots of agricultural status, located t within the borders ofvillages and settlements ( reserve for development of villages) (6 Gel/sqm).

No. 45

sq.m 42, 129

10 Type 3. The land plots of agricultural status, used as residential land (9Gel/sqm)

No. 22

sq.m 19, 295

11 Type 4. The land plots of non-agricultural status, used as residential orcommercial land (9 Gel/sqm)

No. 3

sq.m 2,745

12 Type 5; State Owned , Used by Private Users – Non Legalizable No. 0sq.m 0

13 Type 6 State OwnedNot Used by Private Users

No. 46sq.m 187,400

Agricultural Patterns

14 Area under maize sq.m 89,64115

Area under beansq.m 99,006

16 Area under Hay 15,32517 Area under vegetables 11,73218 Affected Trees No 1,646Affected Structures No19 2 storey Residential houses No 320 1 storey Residential houses No 321 Old 1 storey wooden houses not used for residing No 3

Summer house No 1

22 Complex of 6 buildings of operational Restraunt No 123 Complex of non-operational commercial buildings (1 building affected) No 124 Complex of non-operational ancillary buildings of the company BMG (2

buildings affected)No 1

25 Cattle sheds and piggery No 426 Warehouses and Storage sheds No 427 Garage and storage No 128 carpentary No 129 Old railway waggon No 1

1 storey ancillary building – wooden structure 1

Farm wood 15 sq.m. 1

Wood building - an old small 1 storey house used currently as akitchen

Affected Businesses and Employees30 Lessor of restraunt premises and facilities No 131 Leaseholder operating restraunt premises and facilities 132 Employees 9*Affected Households33 Severely affected Households No. 8834 Vulnerable Households No 1535 Resettled households No. 636 AH losing registered plots (needs correction of cadastral drawings and re-

registration)No.

4537 AH losing legalizable plots (rightful owners, 1 stage registration through

NAPR)No.

5438 AHs losing non-legalizable land plots No 039 AH losing agricultural land plots No 4240 AH losing agricultural land plots considered as reserve for village development 4241 AH losing agricultural land plots used as residential No 1842 AH with non-agricultural (commercial) land plots No. 343 AHs losing businesses No 244 AH losing Jobs No 7*45 AH losing crops 94

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46 AH losing trees 3247 Total AH 102**48 Total Affected Persons No

333Out of 7 AHs losing jobs, 2 AHs lose permanent wages of 2 persons working in the affected restaurant. 95 AHs are affecteddirectly as they lose land plots (some of them lose land plots of different categories) and the 7 AHs are losing operatingbusiness and jobs.

5. The project impact extends to APs comprising 53.6% male and 46.4% females: 182 male and157 females. Further, 6 of the 102 AHs are headed by women. Special attention will be given to theimpact of resettlement on women and other vulnerable groups during monitoring and evaluation of theRAP. The project will have a positive impact on gender, and civil works contracts will includeprovisions to encourage employment of women during implementation. Additionally, women headedhouseholds have been considered as vulnerable and special assistance was provided in the RAPentitlements.

6. Tasks under the Project will be implemented according to a compensation eligibility andentitlements framework in line with both Georgia laws and regulation and WB OP 4.12 Policy. TheEntitlement Matrix is prepared based on provisions of Resettlement Policy Frameworks developed inMay 2015 for the WB financed East-West Highway Corridor Improvement Project. A summaryentitlements matrix is included in Table E-2. Compensation eligibility is limited by a cut-off date set onthe day of the beginning of the AP Census and DMS (15 of September 2015).

Table E-2. Compensation Entitlement MatrixType of Impact Application Definition of PAP Compensation EntitlementsPermanent loss ofagricultural land

AF losingagricultural landregardless ofimpact severity

Owner with fullregistration

Cash compensation in cash at full replacement costor replacement land of same value of land lost andat location acceptable to APs where feasible. Thepreferred option is cash compensation as the landfor land option is not used as there are no statereserves of public agricultural land, which wasprivatized during the land reform. If residual plotsbecomes unusable the project will acquire it in full ifso the AP desires

Legalizable Owner These AP will be legalized and provided withcash compensation at full replacement cost..

Non-legalizable owners(squatters/encroachers)

Non-legalizable APs losing agricultural land plot,which is the only land plot owned by AH andprovides main source of income for AH, will becompensated with one time self-relocationallowances in cash equal to 1 year of minimumsubsistence income

Permanent loss ofnon-agriculturalland

AF losing theircommercial/residential land


Cash compensation in cash at full replacement costor replacement land of same value of land lost andat location acceptable to APs where feasible. Thepreferred option is cash compensation. The landfor land option is not used as there are no statereserves of land available, to be provided inreplacement.

Legalizable Owner AP will be legalized and provided withcash compensation at full replacement cost.

Renter/LeaseholderRental allowances in cash for 3 months


Non-legalizable APs losing non-agricultural landplot, which is the only land plot used by AH forresidence or providing main source of income for AH,will be compensated with one time self-relocationallowances in cash equal to 1 year of minimumsubsistence income

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Type of Impact Application Definition of PAP Compensation EntitlementsStructures

Residential house Project affectedresidentialdwellings subjectto partial/fulldemolition

PAPs with registeredownership title;PAPs declared aslegitimate possessors

Cash compensation at replacement cost at currentmarket value calculated for project affected structureand other fixed assets free of salvageable materials,depreciation and transaction costs.

In case of partial impacts full cash assistance torestore remaining structure so it becomes functionalagain as agreed with the affected person.

If partial demolition threats deterioration of structureor raises safety and security concerns the wholestructure cash compensation will apply to the entirebuilding and affixed assets.

In addition, Livelihood Restoration initiatives will beprovided to PAPs that may face deterioration oflivelihood through indirect impact of proposed roadproject. (e.g. project impact is extended only onresidential dwelling subject to full cashcompensation at replacement costs and additionalone-time allowances to transport salvaged materialsand personal belongings. However, other incomegenerating assets (agricultural land/privatecommercial facilities) may remain outside of projectimpact; correspondingly these assets may not beincluded in the suggested compensation package.PAPs after moving and settling down to a newlocation may at least temporarily lose income due tolack of access (increased travel time, complicatedaccessibility) to the above mentioned incomegenerating assets not affected by the proposedproject.

Residentialtenants/renters

One-time allowance equals monthly rental fee(specified in the lease agreement) multiplied by 3; ifLease agreement is not available, minimum monthlysalary multiplied by 3;2

In addition one-time technical assistance fortransportation personal belongings to a newlocation; or one-time cash allowance to cover costsfor transportation personal belongings. RAPdeveloper consultant will determine reasonableamount depending on the project nature andspecificity.

Commercialstructure

Project affectedcommercialfacilities subjectto partial/fulldemolition

Titleholder Cash compensation at replacement cost at currentmarket value calculated for project affected structureand other fixed assets free of salvageable materials,depreciation and transaction costs.

If partial demolition threats deterioration of structureor raises safety and security concerns the cashcompensation will apply to the entire building andaffixed assets.

2 If there are cases where the tenant/renter has paid rent in advance for a longer period of time, the landlord willbe requested to reimburse the money to the tenant/renter for the corresponding period if adequate evidence isavailable.

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Type of Impact Application Definition of PAP Compensation EntitlementsTenant of commercialfacility

One-time allowance equal to monthly rental fee(specified in the lease agreement) multiplied by 3; ifLease agreement is not available, minimum monthlysalary multiplied by 3.

Fences/Walls All PAPs withfences to beaffected

All PAPs Cash compensation at replacement (construction)cost according to the material and linear meterlength of affected fence/wall.

Annual Crops Crops affected All PAPs (includingsquatters)

Crop compensation in cash at market rate by defaultat gross crop value of expected harvest for 1 year.Compensation for this item will be provided even incase if the crops were harvested.

Perennialsstanding onprivate landparcels

Project affectedFruit bearingperennials

All PAPs (includingsquatters)

Cash compensation at market value on the basis oftype, age, and productive value of fruit tree; Eachfruit bearing tree in addition shall be compensatedfor purchase of saplings.PAPs will be eligible to dispose logged treesthemselves.Construction company ensures free logging anddelivery of timber to the residence of PAPs.

Project affectednon-fruit bearingperennials


No cash compensation will be issued for perennialsnot bearing fruits.PAPs will be eligible to dispose logged treesthemselves. However, a cash amount will beallocated per each affected non-fruit bearing tree toallow the PAP to purchase saplings and plant themon the remaining portion or on a newly allocatedreplacement land parcel.Construction company ensures free logging anddelivery of timber to the residence of PAPs.

Income loss

BusinessEmployment

Temporary orpermanentloss ofbusiness oremployment


Business owner: (i) Cash compensation equal toone year income, if loss is permanent; (ii) cashcompensation for the period of business interruption,if loss is temporary.Worker/employees:Indemnity for lost wages for the period of businessinterruption. In cases where tax declaration reportsare unavailable, then official minimum monthlysalary multiplied to the number of months of actualstoppage of business. In case of permanentstoppage of the business, the employees will receiveIndemnity for lost wages for 1 year.

Additional Rehabilitation Measures

Technicalassistance inlegalization,registrationprocedures

All PAPs withregisteredtitle/possessors oflegalizable land parcels

Free of charge technical assistance to PAPs duringlegalization, sub-division of project affected parcel,registration of corrections and/or sales transaction.Project related State taxes, official fees andtransactions costs if not waived will be covered bythe GOG3.

Relocation Transport andtransitionallivelihoodallowances

All PAPs affectedby relocation

Provision of sufficient allowance to cover transportexpenses and livelihood expenses for one month.For this project the Relocation Allowance is fixed as300 Gel + 3 month payment of the minimum monthlysubsistence for the families consisting of 5members.300 + 326 x 3 = 1278 Gel

3 In some cases, the PAPs may be reimbursed transaction related costs they incurred for road project purposes (e.g. VAT,Income Tax, Court/Notary fees, Court costs.

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Type of Impact Application Definition of PAP Compensation EntitlementsCommunityResources

Access shall be maintained or reinstated;Rehabilitation/substitution of the affectedstructures/utilities (i.e. bridges, roads, schools,health-centres, potable water supply systems,irrigation channels, etc.)

VulnerablePAPs

PAPs below povertyline; disabled people;pensioners; widows;Female headedhouseholds;impoverished; IDPs;Refugees.

In addition to compensation for assets lost, one-timeallowance set to be three month payment of theminimum monthly subsistence income level4.

Severely AffectedPAPs

>10% income loss All severely affectedAFs including informalsettlers

APs losing >10% of agricultural land will receive asevere impacts allowance equal to the cost of 2 yearannual yield of crops or 3 months of minimumsubsistence income, (whichever figure is greater)APs losing >10% of non-agricultural income will begiven an one-time allowance set to be three monthpayment of the minimum monthly subsistenceincome level.5.

Any otherunforeseenImpacts

As required Any As required, in the spirit of this Resettlement PolicyFramework and as stipulated in the RAP preparedfor each proposed project.

Temporaryimpactduring construction

All AFs Due compensation will be assessed and paidbased on this RPF during construction. All landrequired for temporary use is to be obtained by thecivil works Contractor on voluntary basis (e.g.,willing buyer -willing seller basis through aninformed consent and power of choice on the part ofland owner to agree or disagree with the temporaryland acquisition). The maximum period fortemporary use is defined as 2 years. Compensationrates to be paid should not beless than compensation at current market rates forthe gross value of 4 year’s harvest of crops on theaffected lands. It is also required that lands (or otherassets) be fully cleared and restored following use

7. WB and EIB are the funding agency and RDMRDI is the Implementing Agency (IA) of theProject. RDMRDI has the lead responsibility for road construction, as well as implementation of thisRAP through the Resettlement Unit (RU) under the Roads Development and Resettlement Division inRDMRDI. A Land Acquisition and Resettlement (LAR) Commission (LARC) will be assisting RU in allLAR activities and RU will be represented at the field by a Working Group comprising the legal,economics and engineering expertise from other departments of RDMRDI. In addition, RU will beassisted by LAR Team in the rayon level involving also the local self-government bodies. TransportReform and Rehabilitation Centre (TRRC) has been formed as an independent body for financialmanagement of World Bank financed projects. In addition, a number of other governmentdepartments will play an instrumental in the updating and implementation of RAP. The NationalAgency of Public Registry (NAPR) within the Ministry of Justice will be assisting the Project through

4 The amount of minimum monthly subsistence income level for the family of five members will be obtained from theofficial website of the Department of Statistics for the moment of specific RAP preparation. For October 2015 this value isequal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 is estimated as 325.2 GEL. Thus thefigure 326 GEEL has been adopted as payment rate for this project5 The amount of minimum monthly subsistence income level for the family of five members will be obtained from theofficial website of the Department of Statistics for the moment of specific RAP preparation. For October 2015 this value isequal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 is estimated as 325.2 GEL. Thus thefigure 326 GEEL has been adopted as payment rate for this project.

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registration of land ownership and its transfer through purchase agreement from landowners to theRDMRDI. The local government at Rayon and village level will also be involved.

8. The designated official from RU was also an active member in leading role during the censussurvey. RU staff and local level LAR Team members were informally trained during the work onfeasibility study. Members of LAR institutions were trained prior to the implementation of RAP underthe ADB RETA or similar WB programs for capacity building of RU staff and its field operatives.6

9. A grievance mechanism for initial project was available at the RD level to allow a AP appealingany disagreeable decision, practice or activity arising from land or other assets compensation. Thismechanism is operational for the present project as well. In addition to the RD central office levelmechanism, the Grievance redress committees (GRCs) at local level involving the local governmentofficials, representative of APs, representative of local NGOs and consultant has been established.APs were fully informed of their rights and of the procedures for addressing complaints whetherverbally or in writing during consultation, survey, and time of compensation. Care was always taken toprevent grievances rather than going through a redress process. The GRCs will be operationalthroughout the project life till the completion of construction activities.

10. Consultation with likely APs in the project affected areas was conducted during the feasibilitystudy of the Project (tranche 1) and preparation of draft RAP for section 2 in September – October2015. Specific to the section 2 of the project road in Khashuri Rayon, people were consulted throughindividual contact during the census survey under the feasibility study for identification of APs. At thepreparation of RAP in detail design stage, all likely APs (available on site) were consulted throughcommunity level meetings and through individual contact at the time of census, socioeconomic surveyand detail measurement survey. Compensation eligibility is limited by a cut-off date set on the day ofthe beginning of the AP Census and DMS (15 of September 2015).

11. RAP requires legalization of the 65 land parcels for 55 legalizable owners. Legalizatoin(Registration of rights) will probably recure untill the end of July 2016.

12. Payment of compensation and cash allowances for project will be completed by end of August2016. All activities related to the land acquisition and resettlement have been scheduled to ensurethat compensation is paid prior to displacement and commencement of civil works. Publicconsultation, internal monitoring and grievance redress is being undertaken continuously throughoutthe project duration. The resettlement cost estimate under this RAP is 2,897,354 GEL (USD1,297,516).

13. Land acquisition and resettlement tasks under the project will be subject to monitoring.Monitoring is the responsibility of RDMRDI. Internal monitoring is to be carried out routinely byRU/RDMRDI. The results will be communicated to the WB through the quarterly projectimplementation reports. External monitoring will be carried out on a regular basis, and its resultscommunicated to RU/RDMRDI and Financing WB through semi-annual reports. The RDMRDI(through external help) will carry out a post-implementation evaluation of the RAP about a year aftercompletion of its implementation.

6 Regional Technical Assistance Project RETA-7433 REG: Mainstreaming Land Acquisition and Resettlement Safeguards inthe Central and West Asia.

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I. INTRODUCTION

1.1 Project Background

14. The Government of Georgia has received a loan from the International Bank forReconstruction and Development (IBRD or BANK) toward the cost of the Fourth East-West HighwayCorridor Improvement Project (EWHCIP), under the on-going East-West Highway ImprovementProgram being implemented by the Government of Georgia to upgrade the E-60 Highway. The RoadsDepartment of the Ministry of Regional Development and Infrastructure of Georgia (RDMRDI orClient) is the Executing Agency for the Project.

15. Main objective of the assignment is to design a new optimal 4-lane highway with the preferredtechnically safe and economic solution of the road section between Zemo Osiauri and Chumateleti onthe basis of a thorough assessment of technical, environmental, social and economic analysis andappraisal. Implementation of this project is cofinanced by World Bank (WB) and European InvestmentBank (EIB). The entire road section is subdivided in two lots: Section 1 – km0+000 km5+800 fromv. Zemo-Osiauri to v. Kakalatkhevi will be financed by EIB and Section 2 – km5+800 East Portal ofRikoti Tunnel will be financed by WB. Accordingly, two separate packages of the detailed designdocuments will be elaborated including two separate RAPs for each subsection. The WB OP 4.12 onInvoluntary Resettlement is accepted by parties as a reference document for preparing respectiveRAPs.

16. Present RAP covers the 8.283 km length Section 2 – km 5+800 East Portal of Rikoti Tunneland is located within the Khashuri Rayon. The start date of the DMS and the AP census survey isconsidered as the compensation eligibility cut-off date for the project which is therefore 15 September2015.

17. In all land impacts amount to some 317,965 sq.m of land from 164 plots.(see table 2.1 fordetails). Out of it 118 land plots (130,565sqm) are private. In terms of tenure the affected land plotsare distributed in accordance with the following legal categories:- - Category 1. Titled private agricultural land plots with valid registration. No one of the affected landplot has valid registration.- Category 2. 53 titled private land plots of total area 52,786sq.m are registered with mistakes incadastral drawings. These land plots, attributed to category 2, have no legal problems with finalregistration, but only technical correction of drawings is required.- Category 3. 65 land plots of 77,779 sq.m non titled, but legalizable according to current legislationthrough 1 stage registration in NAPR. Related right establishing documents are available in Archives.

All of these mentioned 3 categories of land plots are subject for compensation.

- Category 4. State Owned land plots illegally occupied by private users (squatters). In this sub-section of the road we do not have any land plots occupied by squatters.- Category 5. 46 State owned land plots of 187,400 sqm not used by private users. Most of theseland plots belong to the existing road infrastructure and the rest part constitutes adjacent wind beltzone. Category 4 and 5 land parcels are not subject for compensation. There are no public land plotsin the affected area used by leaseholders.

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Fig.1.1. Location of 8.283 km Project Road section from v. Kakalatkhevi to East Portal of Rikoti Tunnel.

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18. Given the magnitude of impacts (there are 102 AHs (333PAPs), 88 severely affected and 15vulnerable AHs, 6 AHs physically relocated), the project under this RAP is classified as “A” forresettlement and preparation of full scale RAP is necessary for project implementation. The projectlocation map is shown in Figure 1.

1.2 The Impacts Corridor

19. Section II entails construction of 8.283 km new 4 lane road (km5.8 East Portal of RikotiTunnel). The final 4-lane road corridor will be about 27 m wide to accommodate a 15m carriageway,3. 5m width shoulder, an embankment of variable width and minimum 6 m of buffer median zone. Dueto the variability of the embankment and median zone width, the effective width of the impacts corridorunder this contract will vary between 22 and 29 m along the RoW and from 50 to 138 at theintersection sites.

1.3 Minimizing Land Acquisition and Resettlement

20. Due considerations have been given during the design of the new road alignment to minimizethe adverse impacts of land acquisition and involuntary resettlement. Efforts have been put toincorporate best engineering solution in avoiding large scale land acquisition and resettlement. Theallignment has been optimized in tight collaboration with RD and WB.

1.4 RAP Preparation

21. This RAP has been prepared as a condition to contract awards signing. The documentcomplies with relevant Georgian laws and provision of the WB OP 4.12 on InvoluntaryResettlement, as well as Resettlement Policy Frameworks developed by RDMRDI for the WBfinanced East-West Highway Coridor Improvement Project in May 2015. RAP preparation entailed: (i)a detailed measurement surveys (DMS), (ii) a detailed asset valuation/documentary research for eachaffected plot/affected item, (iii) a 100% AH census; and (iv) a socio-economic survey (SES) of 90.6%of the AHs. Intensive consultations with all the stakeholders including rayon authorities and the likelyAPs (APs) were conducted during the process.

22. The RAP document is based on DMS, census and socio economic survey which wereconducted between 15 of September – 30 October 2015. The RAP include (i) Description of impacts,census and social profile of APs; (ii) Land acquisition and compensation scheme (ACS) for landacquisition and implementation of RAP; (iii) update of LAR budget; and (iv) loss and entitlementprofile for individual owners of land plots and APs. Compensation eligibility is limited by a cut-off dateset on the day of the beginning of the AP Census and DMS (15 of September 2015).

23. The RAP entailed intensive consultations with the stakeholders, especially the APs and theircommunity were conducted to understand the extent of impact and validate the severity andcompensation measures. The assessment of losses and land acquisition is based on the finalengineering design as part of the detailed design study.

1.5 Pending RAP Implementation Tasks

24. Following this RAP approval RAP finances will be provided to the Executing Agency (EA.Prior to the distribution of RAP finances to the APs the legalization of APs legalizable according tocurrent legislation will be finalized and all APs will sign a contract agreement indicating that theyaccept the compensation provided to them. If an AP does not sign the contract the case will bepassed to the appropriate court to initiate expropriation proceedings. This will be done after the

13

compensation amount is deposited in escrow account. Escrow accounts will be also established forabsentee APs.

1.6 Conditions for Project Implementation

25. Based on the WB policy/practice, the approval of project implementation were based on thefollowing RAP-related conditions:

(i) Signing of Contract Award: Conditional to the approval of the RAP by WB andGovernment. RAP reflects final impacts, final AP lists and compensation rates atreplacement cost approved by RD.

(ii) Notice to Proceed to Contractors: Conditional to the full implementation of RAP(legalization of legalizable owners, and full delivery of compensation and rehabilitationallowances).

14

II. CENSUS AND IMPACT ASSESSMENT

2.1 Introduction

26. This impacts assessment details loss of land, structures and other assets in the 8.283-kmsection of road from v. Kakalatkhevi km 5.8 to East Portal of Rikoti Tunnel in Khashuri Rayon ofGeorgia. Compensation and rehabilitation measures have been worked out based on theseimpacts. A detailed inventory of all the impacts has been done following the final alignment as perdetailed engineering design.

27. Digitized cadastral maps were collected from the Khashuri Rayon Registration Offices ofNAPR. The final road alignment was superimposed on the digitized cadastral maps and land surveyusing DGPS was conducted on site to identify the affected land parcels, demarcation of land parcelsincluding correction in geometric details and quantification of land parcels including affected part.With the cadastral details from land survey, detail measurement survey (DMS) and 100% APCensus were undertaken. These surveys for initial project were started on September 15 of 2015and was terminated on 30 October 2015. A socioeconomic survey (SES) of 90.6% samplehouseholds was carried out in the project affected areas in order to understand the socio-economiccondition of the affected population. The start date of the DMS and the AP census survey isconsidered as the compensation eligibility cut-off date for the project which is therefore 15September 2015.

2.2 Impact on Land, Other Assets and Income

2.2.1 General Classification of affected land

28. In all land impacts amount to some 317,965 sq.m of land from 164 plots.(see table 2.1 fordetails). Out of it 118 land plots (130,565sqm) are private. Most of the affected private land plots areof agricultural status plots used mostly for crop cultivation or hay production, some of these landplots – for residential needs. Only 3 land plots are of non-agricultural status (commercial land plots).In terms of tenure the affected land plots are distributed in accordance with the following legalcategories:- Category 1. Titled private agricultural land plots with valid registration. No one of the affected landplot has valid registration.- Category 2. 53 titled private land plots of total area 52,786sq.m are registered with mistakes incadastral drawings. These land plots, attributed to category 2, have no legal problems with finalregistration, but only technical correction of drawings is required.- Category 3. 65 land plots of 77,779 sq.m non titled, but legalizable according to current legislationthrough 1 stage registration in NAPR. Related right establishing documents are available inArchives.

All of these mentioned 3 categories of land plots are subject for compensation.

- Category 4. State Owned land plots illegally occupied by private users (squatters). In this sub-section of the road we do not have any land plots occupied by squatters.- Category 5. 46 State owned land plots of 187,400 sqm not used by private users. Most of theseland plots belong to the existing road infrastructure and the rest part constitutes adjacent wind beltzone. Category 4 and 5 land parcels are not subject for compensation. There are no public landplots in the affected area used by leaseholders. The aggregated figures according to land tenurecategories are provided in a table 2.1.

29. The land costs and compensation categories within the project area are determined by theland use factor and distance from the existing road. Figures on Land impacts are provided in

15

accordance to the land classification and legal categories that are relevant to determinecompensation rates and amounts due to their use modalities and location. As we have mentionedabove, all the affected private land plots are agricultural plots used mostly for crop cultivation or hayproduction. The affected land for this sub-section of the E-60 highway has been classified in 6 maintypes:

Types 1 Land Plots. These are private land parcels used for agricultural purpose andattributed to the agricultural land category according to official classification. Type 1 landparcels are located close to the villages and cost rate is estimated as 4.5 GEL/sq.m. In totalthere are 48 affected land plots of type 1 with agregated area 66,396sq.m

Type 2: The land plots of agricultural status, located t within the borders of villages andsettlements. These land plots are considered as a reserve for further development ofvillages and households living in villages and can be used for constructing new residentialbuildings (6 Gel/sqm). In overall the project affects 45 land plots of type 2 with total area of42,129sqm.

Type 3: The land plots of agricultural status, used as residential land (9 Gel/sqm). Theseare actually residential land plots having formally status of agricultural land (typical situationin rural areas). @@ land plots of type 3 (19,295sqm) are affected by the project.

Type 4: Non-agricultural Land Plots. These are private land parcels used for commercial orresidential purpose and attributed to the non-agricultural land category according to officialclassification. There are only 3 non-agricultural land plots (2,745sqm) affected under thisRAP.

Type 5: State Owned land plots illegally occupied by squatters. Under this RAP we do nothave any land plots occupied by squatters.

Type 6: Non- Agricultural State Owned land plots – Project affects 46 public land plots of187,400 sq.m. Most of these land plots belong to the existing road infrastructure and the restpart constitutes adjacent wind belt zone. Type 5 and 6 land plots (by use modality)correspond to Category 4 and 5 (by tenure). These land parcels are not subject forcompensation.

30. The aggregated figures for the land parcels of different categories are given below inthe table 2.2.

Table 2.1 : Type of Land Ownership

Tenure Categories Plots No. Area (sqm) AHs

Compensable land

Category 1. Private Registered 0 0

Category 2. Private /Improperly Registered (Requires re-registration according to new cadastral maps)

53 52,786

45*

Category 3. Private Legalizable 65 77,77954**

Subtotal Compensable 118 130,56595***

Non-Compensable land

Category 4. State Owned , Used by Private Users (squatters)– Non Legalizable

0 0

0

Category 5. State Owned Not Used by Private Users 46 187,4000

Subtotal Non-compensable 46 187 400

16

TOTAL 164 317,96595***

*5 AHs lose 2 land plots of category 2 and 1 AH loses 4 land plots of category 2** 6 AHs lose 2 land plots each and 1 AHs lose 3 land plots of category 3 and 1 AH loses 4 land plots of categry 3*** 4 AH lose 1 land plot of category 2 and 1 land plot of category 3

Table 2.2: Type of Land Use and Land Groups by Compensation Rates

Categories by Land Use and Costs Plots No. Area (sqm)AHs

Compensable land

Type 1. The land plots of agricultural status, located close tovillages and used for agricultural needs (4.5 Gel/sqm)

48 66 ,396 42*

Type 2. The land plots of agricultural status, located t withinthe borders of villages and settlements. These land plots areconsidered as a reserve for further development of villages andhouseholds living in villages and can be used for constructingnew residential buildings (6 Gel/sqm).

45 42, 129

43**

Type 3. The land plots of agricultural status, used asresidential land (9 Gel/sqm)

22 19, 295

17***

Type 4. The land plots of non-agricultural status, used asresidential or commercial land (9 Gel/sqm)

3 2,745

3

Subtotal Compensable 118 130,565 95****

Non-Compensable land

Type 5 State Owned , Used by Private Users – NonLegalizable

0 00

Type 6 State Owned Not Used by Private Users 46 187,4000

Subtotal Non-compensable 46 187,400

TOTAL 164 317, 96595****

*6 AHs lose 2 land plots of type 1**2AHs lose 2 land plots of type 2***2 AH loses 2 land plots of type 3 and 1 AH loses 4 land plots of type 3.**** 10 AHs lose land plots of different types and are doublecounted

2.2.2 Impact on Crops

31. Project affects crops identified on the agricultural land, which is used for maize (corn),beans, vegetables, alfaalfa and hay production. The largest portion of the agricultural land was usedfor cultivation of beans 99,006 sq.m. (9.9 ha.) and maize – 89,641 sq.m. (8.9 ha). Maize and beansare cultivated together on total area of 88,454 sqm, beans and vetables on 10,551sqm and maizeand vegetables on 981 sq.m. Maize separately on 206 sqm, vegetables on 200sqm and hayseparately on 15,325 sqm.

17

32. Out of total 127,820 sq.m. of agricultural status land (used for agriculture or residentialneeds) 115,717 sq.m.is used for crop cultivation. Out of the affected 118 land plots 115 (all landplots of agricultural status) are to some extent used for crop cultivation by 94 AHs. Out of 97 AHslosing land only 3 AHs losing non-agricultural land do not cultivate crops. Details are given in table2.3A. This table demonstarets that some crops are cultivated as mixed cultures on the same plot(e.x. maize and beans, are cultivated together on 88,454 sqm). The summary table more convenientfor cost calculation is given as table 2.3b., Table 2.3b shows totals of areas taken by each cropseparately, and here the 88,454 sqm used for cultivation of maize and beans is calculated twice:separately for maize and beans.

Table 2.3 A: Affected Crops

CropNumber ofLand Plots

Area sq.mNumber of

AHs

Maize 1 206 1

Vegetables 1 200 1

Hay 14 15 325 12

Subtotal 16 15731 14

Maize+ Beans 86 88,454 78

Maize+Vegetables 2 981 2

Beans+Vegetables 11 10,551 11

Subtotal 99 99,986

TOTAL 115 115,717 94**Some AHs cultivate several types of crops (mixed and separately) and are double-counted

Table 2.3 B: Affected Crops


Area sq.m

Compensation forcrops harvested on 1

sq,mTotal Crop

CompensationGEL/sq.m

Maize 89 89,641 0,4 35,856.40

Beans 97 99,006 0,875 86,629.93

Hay 14 15,325 0,24 3,678.00

Alfalfa 0 0 0 0,00

Vegetables 14 11,732 1 11,732.00

Total 214 215,704 137,896.32

18

2.2.3 Impact on Trees

33. Clearing right of way for construction of the road will cause felling down of 1,646 productiveand partially productive fruit trees under private ownership. In total 32 AHs lose 1,646 fruit treesgrown on 36 land plots. The affected timber trees are totally state owned and are not included in theinventory list. However, loss of trees including the state owned timber trees will induce some impacton wind belt and greenery plantations and counter program of replanting may be suggested.

Table 2.4: Affected Trees

Ty pe Groups by

Age

nC

ost

for

1

seed

ling

wh

ole

sale

Mar

ket

pri

ce

1kg

.,G

EL

Yea

rsto

be

com

pen

sate

d

Ave

rage

pro

du

ctiv

ity

in1

year

,kg.

An

nu

al

inco

me,

GEL

Cost for 1tree, GEL

No oftrees

AHs

1 2 3 4 5 6 7 8

Black Cherry/Sweet Cherry

nergi (<5) 5 2 5 3 6 35 15

bali/alubali 05.-10 5 2 5 10 20 75 13

10-.20 5 2 5 16 32 117 127

20+ 5 2 5 10 20 75 0

155

Wallnut nergi (<5) 10 5 5 4 20 80 54

kakali 05.-10 10 5 10 15 75 535 19

10-.20 10 5 10 25 125 1235 82

20+ 10 5 10 30 150 1510 0

155

Pear nergi (<5) 4 1,2 5 7 8,4 33 10

msxali 05.-10 4 1,2 7 20 24 122 0

10-.20 4 1,2 7 70 84 416 17

20+ 4 1,2 7 45 54 269 0

27

Hazelnut nergi (<5) 2 2 5 2 4 16 19

Txili 05.-10 2 2 5 5 10 37 0

10-.20 2 2 5 6 12 44 310

20+ 2 2 5 4 8 30 0

329

Plum/Tkemali/Wild Plum

nergi (<5) 3 0,8 5 7 5,6 23 22

qliavi/tyemali 05.-10 3 0,8 5 15 12 45 44

10-.20 3 0,8 5 50 40 143 480

20+ 3 0,8 5 25 20 73 0

546

19

2.2.4 Impact on Buildings/Structures

34. In total the project affects 33 structures owned by 14 AHs. Out of these 33 structures 6 areresidential houses (3 are 2-storey and 3 are 1 storey capital structures of brick and concrete), withpeople actually living in these houses. Accordinly, 6 AHs will need to be physically relocated andapart from the compensation paid for the structure loss, they will receive also allawances forrelocation. In addition 3 old, not used wooden houses and 1 old wooden house, currently used as aseparate kitchen in the yard, are subject for demolition. The owners of these structures will receive

Apple nergi (<5) 4 1 5 5 5 22 14

vaSli 05.-10 4 1 6 25 25 109 3

10-.20 4 1 6 70 70 298 42

20+ 4 1 6 40 40 172 0

59

Grape nergi (<5) 2 1,5 4 5 7,5 23 50

yurZeni 05.-10 2 1,5 4 7 10,5 31 16

10-.20 2 1,5 4 9 13,5 40 267

20+ 2 1,5 4 5 7,5 23 0

333

Peach ნერგი (<5) 6 1,5 5 4 6,0 27 0

atami 42282 6 1,5 5 15 22,5 85 0

44105 6 1,5 5 40 60,0 216 4

20+ 6 1,5 5 25 37,5 137 0

4

Apricot ნერგი (<5) 4 1,5 5 3 4,5 27 34

gargari 42282 4 1,5 5 15 22,5 83 0

44105 4 1,5 5 40 60,0 214 0

20+ 4 1,5 5 25 37,5 135 0

34

Mulberry ნერგი (<5) 5 1,5 5 4 6,0 26 2

TuTa 42282 5 1,5 5 10 15,0 58 0

44105 5 1,5 5 16 24,0 89 2

20+ 5 1,5 5 10 15,0 58 0

4

1,646 32

20

only compensation for buildings but not allowances for relocation. In terms of major structures, 3complexes of commercial buildings are under the impact. One complex of smaller size located onthe land plot No 156 belongs to the BMG Ltd and consists of 2 ancillary buildings (1 storey concretestructures), which could be used for different commercial needs (as small shops, or offices etc.).Currently, no facilities are disposed in these buildings and no commercial activities are conducted.The next commercial structure located on the land plot No 157, represents one 1 storey majorbuilding. Currently, the premises are not used for any commercial activities and no facilities aredisposed in these buildings. Apart from the fact that premises were free of any facilities andpersonnel during the census period, the non-operational status of these complexes is confirmed bythe owners. Owners of both of the mentioned complexes of commercial buildings will receivecompensation for their structures at full replacement cost, but no compensation will be given forincome losses due to affected business. The third affected complex of buildings is located on theland plot No 154. The major building (1 storey capital structure of block and concrete) is operationalrestaurant. . The other 5 structures are ancillary buildings (kiosks, toilet etc.) functionally connectedwith the restraunt. The owner of this complex of structures will receive compensation for demolishedbuildings at replacement cost and in addition will be provided by compensation for the businessloss. The rest of affected structures are minor - ancillary buildings like, cattle sheds (4), storagesheds (3), garage (1), carpentary (1) and old railway wagon used as a storage. The detailed list ofthe affected structures and AHs is given in the table below:

No ofStructure

No ofLand Plot

Owner Description of StructuresCompensati

on Gel

Comment

1

154Shota

Chaduneli

Main Building of Restraunt; 1 storeyCapital construction of block and

concrete190110

2Wooden shed. Small woodenstructure - a small shop/kiosk

5374

3 Toilet- Block and concrete building 29915

4Ancillary building - Wooden and

plastic construction, a smallkiosk/shop

3861

5 Wooden traiding kiosk 4852

6 Wooden and plastic shed - kiosk 2490

7 157 Jemal Khaduri1 storey Capital construction of

block and concrete (office)121939

8156

BMG Ltd

Ancillary building (storage) –concrete, 1 storey

9935

9Ancillary building – concrete, 1

storey14686

10 82Tengiz

Khachidze2 storey residential house - Brick

and concrete building137040

Physicalrelocation

11

69Tengiz

Khachidze

Cattle shed - Wood construction 7174

12Wood building - an old small 1

storey house used currently as akitchen

13298

13 Wood construction – storage shed(requires repairs)

3282

21

14 86TengizKhachidze

Old wagon, metal – used as astorage shed

3318

15

68 GiviKhachidze

Residential house – 2 storey Brickand concrete building -

97057Physical

relocation

16 1 storey block and woodconstruction - storage

5377

17 Cattle shed - Wooden construction 21223

18 80David

Khachidze1 storey Residential house - Block

and wood44320

Summerhouse

19 106 TsiuriKhachidze

1 storey Residential house - Blockand wood

52092 Physicalrelocation

20 81 ShuraKhachidze



21 77 SoslanKhachidze

1 storey wooden building -residential house - not used

8043Old, notinhabited

house

22 88Elbert

Khachidze1 storey wooden building -

residential house - not used14717

23 71 DemuriAlkhazishvili


9011

24 66 AleksanderiKhachidze

1 storey ancillary building – woodenstructure - Carpentry

4831

25

70 AleksanderiKhachidze

2 storey residential house - Brickand concrete building


261 storey ancillary building - block

and wood construction - warehouse22391

27 Farm wood 15 sq.m. 3510

28 Pig cattle 1,7 sq.m. 960

29

79Revaz

Gelashvili

1 storey residential house - Blockand concrete building -

75356Physical

relocation

30Block and wood construction -

garage and storage11593

31Block and wood construction –

storage shed5180

32 Wooden construction – cattle shed 4309

33 90Gela

Gelashvili1 storey ancillary building – wooden

structure4925

1,133,986

2.2.5 Relocation Needs and Strategy

35. The project requires physical relocation of 6 AHs residing in the buildings that are subject fordemolition. Relocation Policy envisages provision of sufficient allowance to cover transportexpenses and livelihood expenses for the transition period. For this project the RelocationAllowance is fixed as 300 Gel + 3 month payment of the minimum monthly subsistence for thefamilies consisting of 5 members, whic equals to 300 + 326 x 3 = 1278 Gel. The amounts ofcompenstaion payments are calculated at replacement cost and exceed the market price of housesin the affected area.

22

2.2.6 Impacts on Business, Tenants and Employees

36. The project affects only one operating business. This is a complex consisting of the roadsiderestaurant and connected smaller trading kiosks. The building and facilities are owned by one AHand the business is operated by another AH. The business of the owner is a leasing of structuresand facilities and this is his permanent source of income. The leasholder (tenant) operates therestaurant and ancillary facilites and his net income is equal to the gross income of the restaurantminus the leasing fees. Permanent loss of business income is subject for cash compensation equalto one year income. Accordingly, the lessor (owner of the restaurant premises and facilities) will becompensated for the income loss in amount of 1 year leazing fee, while the operator of the businesswill receive compensation for income lose in amount of 1 year net income of the restaurant.

With stopping operation of the restraunt and associated shops/kiosks 9 employees (7 AHs) will losetheir jobs. 2 employees are spouses and belong to 1 AH, which is the owner/operator of the affectedrestraint business, and apart from the business income they lose permanent wages of 2 personsworking in the restaurant (director and assistant). Out of the rest 7 employees of the restaurant 2are father and son and represent 1 AH. Thus we have 9 employees but 7 AHs. The affectedemployees will receive Indemnity for lost wages for 1 year. Besides, all of the employees losing jobsare attributed to the category of severely affected households, as they lose more than 10% of theirhousehold income. Due to the extremly high level of unemployment and lack of jobs on the market,It is difficult to elaborate rational and efficient program of livelihood restoration for the PAPs losingtheir jobs. Instead of that, the PAPs losing their jobs are attributed to the severely affected AHs andthe allowances for severely affected are paid. In addition to that, one of the PAPs losing job is awoman without breadwinner and she will receive additional allowances for being vulnerable.

2.3 APs and Communities

37. In overall 102 AHs (333 PAPs) are affected by the project: 95 directly, losing their land plotsand associated assets and the rest 7 indirectly (1 AH losing business income on leased facilitiesand salaries of 2 employees engaged in this business, and 6 AHs comprising the rest 7 employees7

losing their wages). Of these, 45 AH lose registered land plots (53 registered plots of category 2,requiring correction of cadastral drawings and re-registration) and 54 AH lose legalizable land plots(65 plots of category 3). The difference between the number of affected land plots and AHs is dueto the fact that some of the AHs lose several land plots. Registered land plots: 5 AHs lose 2 landplots of category 2. and 1 AH loses 4 land plots of category 2. Legalizable land plots: 6 AHs lose 2land plots 1 AHs lose 3 land plots of category 3 and 1 AH loses 4 land plots of 3 category 3. 4 AHlose land plots in both categories.

38. 3 AHs lose commercial land and 92 affected AHs lose their agricultural land used for cropcultivation. 32 AHs lose trees. All AHs losing trees lose at the same time annual crops. 2 AHs arelosing businesses and 7 AHs (9 employees) lose their jobs and permanent wages.

2.3.1 Impact on Common Property Resources

39. Road construction do not affect any community or public property.

7 2 employees are spouses and belong to 1 AH, which is the owner of the affected restraint business, andapart from the business income they lose permanent wages of 2 persons working in the restraint (director andassistant). Out of the rest 7 employees of the restaurant 2 are father and son and represent 1 AH. Thus wehave 9 employees but 7 AHs.

23

2.3.2 Severely Affected and Vulnerable Households

40. A total of 81AHs (266 PAPs) are severely affected due to loss of more than 10% of theirproductive land. 7 AHs (24 PAP) are severeley affected due to loss of their business income andpermanent wages, which is more than 10% of the AH total income. Thus the total amount of theseverely affected households is 88 (345APs).

41. Poor (receiving government subsistence subsidies) and women headed or disabled AHswithout breadwinner are attributed in this RAP to the category of vulnerable households.Households with people in pension age will receive the allowance only if they are registered aspoor8. In Georgia, the poverty line is determined as a result of sophisticated calculations includingproduction, consumption, cash income and assets valuation. The households with rating less than57000 are considered as extremely poor and receive subsistence allowance, and AH with ratingbetween 57000 and 70000 are considered as poor and they receive insurance policy allowances.The estimations (rating calculations) are conducted by the Social Services Agency and the ratingdata is registered. The vulnerable household requires special assistance for resettlement.

The AHs in RAP of the project road constitute 15 vulnerable AHs (49 PAPs). These include 3extremely poor (rating less than 57000), 6 poor (less than 70000) and 6 women headedhouseholds (5 land owners and 1 employee losing job). See for details - (Table 2.8).9

Table 2.8: Vulnerable AHs

Category of vulnerability No. of AHs

Extremely Poor AHs with rating below 57000 receiving subsistence allowance) 3

Poor AHs with rating more than 57000 and below 70000 receiving insurancepolicy

6

Female headed AHs with low income and dependents 6

Total 15

2.4 Impact on Indigenous Peoples

42. An assessment of impact on indigenous peoples was undertaken in accordance with WB OP4.12. . The project primarily affected Georgian people which are almost 99.9% of the total affectedpopulation. Some of the other Ethnic Minority group is also present in the program area, which areinsignificant in number. These groups are mostly Russian (1 affected AH). These groups are fullyintegrated into the Country institutional, cultural, and economic processes, and they do not fit the IPdefinition of WB. Therefore, WB policy on indigenous people will not trigger to this project.

2.5 Gender and Resettlement Impacts

43. The project impact extends to APs comprising 53.6% male and 46.4% females: 187 maleand 162 females. Further, 5 of the 107 AHs are headed by women. Special attention will be given tothe impact of resettlement on women and other vulnerable groups during monitoring and evaluationof the RAP. The project will have a positive impact on gender, and civil works contracts will includeprovisions to encourage employment of women during implementation. Additionally, women headed

8 Pensioners, who are not poor or have breadwinners that support them are not considered as vulnerable. Inthe same way, disabled persons if they are wealthy, are not eligible for allowances as vulnerable PAPs.

9 Households receiving government subsidies are the extreme poor households. The pensioners are mostlyelderly people, who have small input in agricultural work and who are not working elsewhere.

24

households have been considered as vulnerable and special assistance was provided in the RAPentitlements.

2.6 Summary of Impacts44. A summary of Project impacts is included in Table 2.10 below.

No. Impacts Unit



4 Category 2. Private /Improperly Registered (Requires re-registrationaccording to new cadastral maps

No. 53sq.m 52,786




No. 46Sqm 187,400



sq.m 66 ,396


No. 45

sq.m 42, 129


No. 22

sq.m 19, 295


No. 3

sq.m 2,745



No. 46sq.m 187,400





Summer house No 1







25


registration)No.


NAPR)No.

5438 AHs losing non-legalizable land plots No 039 AH losing agricultural land plots No 4240 AH losing agricultural land plots considered as reserve for village development 4241 AH losing agricultural land plots used as residential No 1842 AH with non-agricultural (commercial) land plots No. 343 AHs losing businesses No 244 AH losing Jobs No 7*45 AH losing crops 9446 AH losing trees 3247 Total AH 102**48 Total Affected Persons No

333

*Out of 7 AHs losing jobs, 2 AHs lose permanent wages of 2 persons working in the affected restaurant.95 AHs are affected directly as they lose land plots (some of them lose land plots of different categories) and the 7 AHs arelosing operating business and jobs.

26

III. SOCIO-ECONOMIC INFORMATION

3.1 Introduction

45. A census of 100% of the AHs available on site was conducted to enumerate the APs. Asample socio-economic survey was included in the project area covering 97 households which is90.6% of the total AHs covered in census. The objective of the socioeconomic survey was to gathergeneral information on socioeconomic condition of the affected people. The socioeconomicinformation of the affected population as per census and socioeconomic survey is presentedhereunder.

3.2 Affected Population

3.2.1 Demography

46. The project road is in Khashuri Rayon, as per detail measurement survey. No of affectedhouseholds and persons)is 97 households comprising of 316 persons. Census of 97 AHs identifiesthat 53.5% of the APs (APs) are male constituting a male/female ratio of 114.9 (114.9 males per100 female). The average family size is 3.26 members per household (Table 3.1).

Table 3.1: Demographic Profile of APs

Age Group

Male Female Total Average/Household

No. % No. % No. %

Children (Below 6 Years) 4 2.7 6 4.1 10 3.2 0,10

Children (6–18 Years) 25 14.8 14 9.5 39 12.3 0,40

Adult (19–65 Years male and 19 –60 years for female)

124 73.4 102 69.4 226 71.5 2,33

Pension age (65 Years and Overmales and 60 years anad over -female)

16 6.1 25 17.041

13.0 0,42

Total 169 100 147 100 316 100 3.26

% 53.5 46.5 100

3.2.2 AH Ethnicity

47. AHs are all Georgian (100%). No Azri, Armenians, Russian, Jews or Ukrainian are affectedin the project. Ethnic diversity does not mark any difference in overall national development inGeorgia and the minorities are mainstreamed as a common nation.

Table 3.2: Ethnicity of AHsSl.No. Ethnicity Total No. of Households %

1 Georgian 97 100

2 Armenian 0 03 Polish 0 0

4 Other 0 0

Total 97 100

3.2.3 Urban Rural Proximity

48. The project road is mostly located in rural areas in the villages named Surami, Urtkhva,Bignisi, Chumateleti. Survey of the 90% households shows that 100% of the AHs reside in ruralareas and no one resides in urban areas (Table 3.3). Project impact on urban and rural householdswill tend to change their investment priorities. However, the affected villages are located close to the

27

city of Khashuri and accordingly permanent employment and dayly wages are important source ofincome for the APs.

Table 3.3: Urban Rural Distribution of AHsSl. No. Type of Settlement Total No. of Households %

1 Rural 97 100

2 Town (Urban) 0 0Total 97 100

3.2.4 Level of Education of APs

49. Data from project area in Khashuri Rayon brought forth that illiteracy is not faced in the area– all APs elder than 6 years study in schools or university or have already got certain education.About a 4.4% of the population have university level education and 1.3% have got special technicaleducation. All of the rest APs study is secondary schools or have finished school. (Table 3.4).

Table 3.4 Level of Education of APsSl.No. Category Male Female Total

No % No % No %1

Pre-School 4 2.4 6 4.1 10 3.2

2 Primary &Secondary 158* 93.5 130** 88.4 288 91.1

3 Technical –specialaducation 2 1.1 2 1.4 4 1.3

4 University 5 3.0 9 6.1 14 4.45 Illiterate 0 0 0 0 0 0

Total 169 100 147 100 316 100*out of 158 only 25 are school students and 133 are adults that have finished secondary school**Out of 130 only 14 are school students currently and 116 are adults that have finished secondary school

3.3 Agriculture and Land Resources

3.3.1 Land Holding Status

50. The AHs are all land holder of some quantum. Average land holding comes out to be 1.2haamong the land holders (Table 3.5).

Table 3.5: Land Holding StatusSl. No. Particulars No of Households %1 Land Holder Households 97 1002 Landless Households 0 0

3Total Households

97 100Average Land Holding: 1.2 ha per household

3.3.2 Major Cropping Pattern

51. 94 (97%) out of 97 AHs are cultivating crops. Maize and beans are the major crops beingcultivated in the project area. About 83.5% of the households cultivates maize in an average area of0.1 ha each and about 91.8 % households cultivates beans in average area 0.1 ha each. Othercrops like vegetables is cultivated by about 14% households in an average area of 0.08 ha. Fruit

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production is a minor agricultural activity in the project area. About 33% of households having landplots grow fruit trees. Details are given in Table 3.6.

Sl.No.Type ofCrops

No ofHousehold

%Averagecultivated Area(Ha)

AverageYield(GEL)

1 maize 81 83.5 89 641 35,856

2 beans 89 91.8 99041 86,660

3 vegetables 14 14.4 11 767 11,767

4 Alfaalfa 0 0 0 0

5 Hay 12 12.4 15,325 3,678

Total AHscultivating crops

9497

137,962

TOTAL AH 97 100

3.4 Economy of AHs

3.4.1 Major Economic Activities

52. Regular Wages (Government Service or Business sector) is the main source of income formost of AHs (43.3). Pensison is primary income for 22.7% and secondary source of income for16.5% of AHs. Daily Wage/Part time employment is a major source of income for 18.6% andsecondary income for 4.1% of AHs. Agriculture has minor economic significance and is used mostlyfor self consuption. Only 15.4% of AHs consider agriculture as a major source of income and 14.4as a secondary source. The affected area is located close to the city of Khashuri and this could bereason for low agricultural activity and significant role of permanent and temporary wages as asource of income. (8). The details are given in Table 3.7.

Table 3.7: Economic Activity of the HouseholdsSl.No. Type of Activities Primary Secondary

No % No %1 Agriculture 15 15.4 14 14.42 Regular Wages (Government

Service or Business sector) 42 43.3 0 03 Daily Wage/Part time

employment 18 18.6 4 4.14 Pension (government aid) 22 22.7 16 16.55 No Income 0 0 63 65.0

TOTAL 97 100 97 100

3.4.2 Employment Status

53. Unemployment is significant in the project area as revealed in the survey. About 77.2% ofthe APs are unemployed including 63.9% among males and 92.5% among the females. (Table 3.8).Though the head of the households are employed but most of the remaining adult members arefound to be unemployed. 77% of unemployment (23% of employeed) relates to individual adultPAPs (18 – 65 years). For each household, usually we have in average 2-3 of the audalts PAPs,who can work and have wages. Even if 1 of these PAPs has job and wage, this AH is accounted ashaving income as wage. Some households include 2 PAPs having wages. In 6 cases this is onemale and 1 femaple employed.

54.

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Sl.No. Gender RegularWageemployed

Part-time-employed

Unemployed Total

No % No % No % No %

1 Male 38 22.5 23 13.6 108 63.9 169 53.52 Female 10 6.8 1 0.7 136 92.5 147 46.5

TOTAL 48* 15.2 24 7.6 244 77.2 316 100

3.4.3 Annual Income of AHs

55. Regular wages, pension subsidies, agriculture and wage employment are major contributorsto income of the AHs. The survey found that 65% of the AHs get income from one single source,35% from double or more sources. Table 3.9 shows that the more the number of sources, the moreis the amount of income feeding to a household. Double sources seem to contribute the highest inthe project area.

Table 3.9: Average Annual Household Income against Number of Sources

Number of sources of Income No. of AHs % of AHsAverage

household income(GEL)

Single Source 63 65 363Double Sources 34 35 583

No regular sources of cashincome

0 0

Total 97 100

56. Average income per household earning from single source is very low compared to theincome from multiple sources (Table 3.9). Table 3.10 shows the distribution of AHs getting incomefrom various single sources. Average annual income from single sources varies from 1320 (otherincome) to 6360 (permanent wages) GEL per household. Property income, pension and subsidy arein the lower echelon of household income.

Table 3.10: Average Annual Household Income by Sources

Sources of Income

No. AHs(earningfrom thesources)

Total Incomeper Monthfrom thesources

(GEL)

Average Incomeper Householdper Month from

the sources(GEL)

Average AnnualIncome Per

Household fromthe sources

(GEL)

Wage gov/public sector 42 22250 530 6360

Daily Wage /Part timeemployment 22 6910 314 3768

Agriculture 29 5830 201 2412

Small Business/Trade 0 0 0 0

Other Income 6 660 110 1320

Pension/subsidiary 38 7030 185 2220

Total Households andIncome

97* 42680 440 5280

*34AH have double or more sources of income and are counted several times

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Household Assets and Durables

57. Possession of durable goods differs from each household depending on the nature of thedurable goods. 100% of the households in the project area posses a television, while nobody hasgot a radio. 100% have refrigerators and washing machine, as well as access to gas for cooking.About 14.4% households reported that they have a car.

58. Possession of domestic animals includes large animals in 19.6% households, pigs (3.1%)and poultry in 100% households (Table 3.12).

Table 3.12: Possession of Durable Goods and Domestic Animals

Sl. No. Item

Households

No. %

1 Radio 0 0

2 Bicycle 0 0

3 Television 97 100

4 gas-stove for cooking 97 100

5 Computer 0 0

6 Refrigerator 97 100

7 Washing Machine 97 100

8 Motorcycle 0 0

9 Car 14 14.4

10 Air conditioning 0 0

11 Large Animals (Cows/Bulls/Buffaloes) 19 19.6

12 Pigs 3 3.1

13 Sheep/goats 0 0

14 Horse/donkey 0 0

15 Poultry 97 100

3.5 Water and Sanitation

3.5.1 Source of Drinking Water

59. The major source of drinking water is centralized local source. 100% of households haveaccess to the centrilized water supply. Out of the 97 surveyed households, it is noted that only 5households (5.1%) posses also wells, in addition to the centralized water supply, which they usemostly during the shortages in water supply. (Table 3.15).

Table 3.15: Source of Drinking WaterSl. No. Sources Number of Households %

1 Piped water supply 97 100

2 Well 5 5.1

3 Spring 0 0

4 Others 0 0

Total 97 100

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3.5.2 Sanitation Facilities

60. All of the interviewed households 100% possess latrine at their house connected to septicreservoirs and no household has flash toilet connected to the centralized sewage. (Table 3.16).

Table 3.16: Types of ToiletSl. No. Toilet Number of Households %

1 Flush toilet 0 0

2 Latrine 97 100

3 Total 97 100

3.6 Access to Energy and Civic Facilities

3.6.1 Access to Energy for Cooking

61. All of the inquired 97 AHs use gas stoves for cooking. However, electric poer is still asignificant source of energy. According to the Table 3.17, households using gas also use electricpower for cooking at the event of unavailability of gas (especially those using LPG). Details aregiven in Table 3.17.

Table 3.17: Type of Fuel Use for CookingSl. No. Types of Fuel Number of Households %

1 Wood 0 02 Gas 97 1001

3 Diesel/ Kerosene 0 04 Electric power 97 100

Total 97 100.0

Note: All 277 households using gas also use electric power at the event of temporary unavailability of

gas

3.6.2 Access to Electricity

62. All of the interviewed 97 households (100%) are connected with central power supply and tothe natural gas supply system (Table 3.18).

Table 3.18 Connected to Central Electric PowerSupply and Natural Gas Supply Systems

Electric Power Natural Gas

Sl. No.Whether

connected

No of

Households%

No of

Households%

1 Yes 97 100 277 100

2 No 0 0 0 0

Total 97 100 277 100

3.6.3 Access to Health Centre

63. Health facilities in project areas are in good condition with adequate access to hospitals .100% of the households stated that they have easy access to health centres (Table 3.19).

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Table 3.19: Access to Health Centre

Sl. No.Easy access to

Health Centre

Number of

Households%

1 Yes 97 100

2 No 0 0

3 Total 97 100

3.6.4 Access to School

64. All sample households (100%) reported that they have easy access to school (Table 3.20).

Table 3.20: Access to SchoolSl. No. Access to School Number of Households %

1 Yes 97 100

2 No 0 0

3 Total 97 100

3.6.5 Access to Road

65. Transport connectivity seems to be well established in the project area. All of the samplehouseholds reported that they are well connected with the local roads (Table 3.21).

Table 3.21: Access to Road

Sl. No.

Whether connected to

Road

Number of

Households %

1 Yes 97 100

2 No 0 0

3 Total 97 100

3.7 Conclusion

66. Most of inquired household (96%) have estimated themselves as not being wealthy, havingincomes not sufficient for good quality medical services and education. Literacy rate in the projectarea high (in fact 100% of the APs elder than 6 year are studying or have finished at leastsecondary school) compared to national literacy level. More than 50% of the affected population aremale. Literacy rate among the women is higher (7.5% of women have high or special technicaleducation compared to 4.1% among males). Women go side by side with the men in the projectarea and play important role in family economy. The project will have a positive impact on womenthrough increased mobility and due attention will be given them from the project. Regular jobs inpublic sector or businesses is the dominant occupation among the APs (42% of primary economicactivity). However, role of government subsidies (pension) is also significant (22 % primary and16% secondary).

67. 91.7% of inquired population (89 out of 97) expressed good attitude towards the project andaccepted it as important component of development for the whole country and for their rayon. 8.3%generally accept the project but express their concerns regarding involuntary land acquisition andrelated changes in their economic activity and social conditions.

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IV. LEGAL AND POLICY FRAMEWORK

4.1 General

68. The legal and policy framework of the Project is based on national laws and legislationsrelated to Land Acquisition and Resettlement (LAR) in Georgia and the World Bank InvoluntaryResettlement Policy (OP/BP 4.12). Based on the analysis of applicable laws and policies and Policyrequirements of the mentioned IFIs, project related LAR principles have been adopted.

4.2 Legal Framework

4.2.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement

69. In Georgia, the legislative acts given below regulate the issues of obtaining State ownershiprights to privately owned land parcels based on the necessary public needs caused due to roadconstructions activities:

(i) The Constitution of Georgia, August 24, 1995( Last update 16 October 2013);(ii) The Civil Code of Georgia, June 26, 1997 (amend. 2000, 2002, 2003, 2004, 2005,

2006, 207, 2008, 2009, 2010, 2011, 2012, 2013, 2014);(iii) The Law of Georgia on Protection of Cultural Heritage, 8 May 2007 (amend. 2008,

2010, 2011, 2013, 2014);(iv) The Law of Georgia on Notary Actions, December 4 2009 (amend. 2010, 2011,2012,

2013, 2014, 2015);(v) Law on Public Health 27 June 2007 (amend. 2009, 2010, 2011, 2012, 2013, 2014,

2015)(vi) Law on Compensation of Land Substitute Costs and Damages due to Allocating

Agricultural Land for Non-Agricultural Purposes 1997 (amend. 2005, 2006, 2007,2009, 2010, 2011, 2013, 2014, 2015)

(vii) The Law of Georgia on Recognition of the Property Ownership Rights Regarding theLand Plots Owned (Used) by Physical Persons or Legal entities; 11 June 2007(amend. 2007,2008,2009 2010, 2011, 2012)

(viii) Law on state property 2010 (amend 2011, 2012,2013,2014)(ix) The Law of Georgia on Public Register- No820 –IIs; December 19 of 2008;

(amended 2009 2010, 2011, 2012, 2013, 2014, 2015)(x) The Law of Georgia on the Rules for Expropriation of Ownership for Necessary

Public Need, July 23, 1999 (amend. 2005, 2007, 2010, 2013)(xi) The Civil Procedural Code of Georgia, November 14, 1997(amend. 1998-2015)(xii) The Law of Georgia on State property, June 21, 2010(xiii) The Civil Procedural Code of Georgia, November 14, 1997(xiv) Labour Code, May 25, 2006(xv) Tax Code, January 2005(xvi) Law on Entrepreneurship, October 28, 1994

1. Overall, the above laws/regulations provide the principle of compensation at full replacementcost is reasonable and legally supported. The laws also identify the types of damages eligible forcompensation and indicate that compensation is to be given both for loss of physical assets and forthe loss of income. Finally, these laws place strong emphasis on consultation and notification toensure that the APs participate in the process.Income loss due to loss of harvest and businessclosure will be compensated to cover net loss. The above-listed laws and regulations give thepossibility of applying the following mechanisms for legal application of the property rights:

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(i) Obtaining the right on way without expropriation through the payment of due compensation(on the basis of negotiations or a court decision) prior to commencement of the activities.

(ii) Expropriation which gives the possibility of obtaining permanent right to land and/or otherreal estate property on the basis of Eminent Domain Law or a court decision through thepayment of due compensation.

70. Land was acquired through eminent domain, first on the basis of negotiated settlement withindividual affected entities. Should the negotiation fails, the expropriation process under the eminentdomain will start and the expropriation procedures set out in the Law of Georgia “On the Rules forExpropriation of Ownership for Necessary Public Need” shall be applied. Under the existing Law inGeorgia and in accordance with the Law of Georgia “On the Rules for Expropriation ofOwnership for Necessary Public Need” the expropriation shall be carried out based on the order ofthe Minister of Economy and Sustainable Development of Georgia and a court decision. The orderof the Minister of Economy and Sustainable Development of Georgia will determine the case ofpublic needs, and grant the expropriation entity rights to obtain land. Only the court shall determinea state body or local authorities and/or legal entity under the Public Law/Private Law to which theexpropriation rights can be granted. The court decision should also include a detailed inventory ofthe assets to be expropriated and the provisions on the compensation payable to relevant landowners.

4.2.2. Involuntary Resettlement requirements under the World Bank InvoluntaryResettlement Policy (OP 4.12)

71. The three important elements of WB’s involuntary resettlement policy are (i) compensation toreplace lost assets, livelihood, and income; (ii) assistance for relocation, including provision ofrelocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation toachieve at least the same level of well-being with the project as without it. For any WB or ADBoperation requiring involuntary resettlement, resettlement planning is an integral part of projectdesign, to be dealt with from the earliest stages of the project cycle, taking into account the followingbasic principles: Specific World Bank requirements concerning resettlement are contained in theOperational Policy (OP. 4.12) on Involuntary Resettlement that is based on the following principles:

(i) Involuntary resettlement should be avoided in all cases where feasible, and where itis not possible to avoid resettlement, it should be kept at a minimum;

(ii) Where it is necessary to carry out resettlement, it should be treated as adevelopment programme providing efficient resources for a new investment to adisplaced person;

(iii) Persons affected by resettlement shall be fully informed and shall have theopportunity to participate in procedures with a view to protecting and exercising therights which they are entitled to;

(iv) Displaced persons shall be assisted in their efforts to improve their income andstandards of living, or at least to restore them to and keep them at pre-displacementlevels;

(v) The obligation to assist displaced persons and to provide them with appropriateprotection shall exist regardless of how they have acquired property and possession,i.e. regardless of their legality (thus, also when displaced persons have no legal basisand they are unlawful users);

(vi) Displaced persons shall be ensured full payment of replacement costs and acompensation for the property taken, in the amount which enables the compensationor replacement of the property taken with a new one.

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The given Policies contain the obligation to provide support and assistance in the course of thecompensation and resettlement process, during and after the resettlement process and alsoincluded in the Entitlement Matrix (see below).

Assistance during the compensation and resettlement process shall include:

o Assistance during the relocation of personal belongings;

o Maintenance, transport, and/or sale of materials from the old facility;

o Transport of household members with medical assistance where required; ando Assistance with the entering into possession of new real property.

As part of the quoted World Bank Policies, particular attention is paid to vulnerable groups ofthe population. These are groups of people who, under the impact of the Project, by virtue ofgender, ethnicity, age, physical or mental disability, economic status, or social status may bemore adversely affected by resettlement caused by the Project than other population groups, orwho may be limited in their ability to claim or take advantage of resettlement assistance.

Consistent with paragraph 16 of OP 4.12, the following categories of persons will be qualifiedfor compensation based on land ownership:

a) Persons who have legal, formal rights on land (including legal title or customary andstatutory rights of occupancy recognized under the Law),

b) Persons who do not have formal legal rights on land at the time the census begins buthave a claim to such land or assets provided that such claims are recognized under thenational law or become recognized through a process identified in the resettlement andcompensation plan,

c) Persons who have no claim to land they are occupying or using.

Persons covered under a) and b) above are to be provided compensation for land they lose, andother assistance in accordance with the policy. Persons covered under c) above are to beprovided with resettlement assistance in lieu of compensation for the land they occupy or use,and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupyor use the project area prior to a cut-off date established by the appropriate authorities andacceptable to the Bank (15 of September 2015 ). All persons included in a), b) or c) above are tobe provided with compensation for loss of assets other than land.

4.2.3. Comparison of Georgian Laws and Procedures on Land Acquisition andResettlement and WB’s OP 4.12 requirements on Involuntary Resettlement

72. Overall, the legislation of Georgia adequately reflects the major provisions of the WB OP4.12, but a few differences are to be noted. The most significant difference is that under Georgianlegislation the emphasis is put on the definition of formal property rights and on how the acquisitionof properties for public purposes is to be implemented and compensated while in the case of OP4.12 emphasis is put both on the compensation of rightfully owned affected assets and on thegeneral rehabilitation of the livelihood of affected People (AP) and Households (AH).

Because of this, the Bank’s safeguards policy on Involuntary Resettlement complement theGeorgian legislation/regulation with additional requirements related to (i) the economicrehabilitation of all AP/AH (including those who do not have legal/formal rights on assetsacquired by a project); (ii) the provision of indemnities for loss of business and income, (iii) andthe provision of special allowances covering AP/AH expenses during the resettlement processor covering the special needs of severely affected or vulnerable AP/AHs. Also, underGeorgian law negotiation is seen as an alternative to expropriation, whereas under OP 4.12negotiation under threat of expropriation still qualifies as involuntary resettlement. In addition, the

36

Georgia Laws and WB OP 4.12 Corrective Actions

Land compensation only fortitled landowners. In practicelegalizable land owners are alsocompensated after they areissued with the necessary papers

Lack of title should not be a bar tocompensation and/or rehabilitation. Non-titled landowners receive rehabilitation.

According Entitlement matrix:

Owners with full landregistration and owners/usersof legalizable land will beprovided with cashcompensation at fullreplacement cost. Non-legalizable agricultural landusers (squatters/encroachers)will not be compensated forthe value of the land.However, they will becompensated at replacementvalue for any loss of assetson the land built before thecut-off date.

legislation of Georgia does not require any specific measure regarding the need to prepare RAPsbased on extensive public consultations.The differences between Georgia law/regulation and WB policy are outlined in the Table

37

Only registered houses/buildingsare compensated fordamages/demolition caused bya project

All affected houses/buildings arecompensated for buildingsdamages/demolition caused by a project


All AHs regardless of legalownership/ registration status(including legalizable andInformal Settlers) will becompensated in cash at fullreplacement costs free ofdepreciation and transactioncosts. Additionally, all such Ahswill receive allowance coveringtransport expenses and alivelihood expenses for thetransitional period for 3 months

Crop losses compensationprovided only to registeredlandowners.

Crop losses compensation provided tolandowners and sharecroppers/leasetenants and any informal users,whether registered or not


For all AHs regardless oflegal status (includinglegalizable and InformalSettlers) crop will becompensated in cash at grossmarket value of actual orexpected harvest

Land Acquisition Committee inRDMRDI is the only pre-litigation final authority to decidedisputes and address complaintsregarding quantification andassessment of compensation forthe affected assets.

Complaints & grievances are resolvedinformally through communityparticipation in the Grievance RedressCommittees (GRC), Localgovernments, and NGO and/or local-level community based organizations(CBOs).

Complaints & grievances willbe resolved informally throughcommunity participation asdescribed in the RAP

Decisions regarding landacquisition and resettlementare discussed only between thelandowners and the LandAcquisition Authorities.

PAPs are to be fully informed and havethe opportunity to participate inprocedures with a view to protectingand exercising the rights which they areentitled to in line with the above statedprovisions of OP 4.12.

PAPs will be fully informedand have the opportunity toparticipate in procedures witha view to protecting andexercising the rights asdescribed in the RAP

No provision forincome/livelihood rehabilitation,allowances for severely affectedor vulnerable APs, orresettlement expenses.

WB policy requires rehabilitation forincome/livelihood, severe losses, and forexpenses incurred by the APs duringthe relocation process.

Rehabilitation forincome/livelihood, severelosses, and for expensesincurred by the APs during therelocation process will beprovided according toEntitlement matrix.

No specific plan for publicconsultation is provided underthe Georgian laws

Public consultation and participation isa continuous process at conception,preparation, implementation and postimplimentation

Public consultation andparticipation will be acontinuous process asdescribed in the RAP

38

73. To reconcile the gaps between Georgia laws/regulations and WB’s OP 4.12 the RDMRDI hasdrafted this RAP for the Project, ensuring compensation at replacement cost of all items, the rehabilitationof informal settlers, and the provision of subsidies or allowances for AHs that may be relocated, sufferbusiness losses, or may be severely affected.

4.2.4. Principles and Procedures of Land Acquisition74. The overarching objective of the Project in relation to land and asset acquisition is to assist theproject affected populations (PAPs) in restoring their livelihoods at least to the level equal to the pre-project level. Specific principles that apply include:

Construct the road to avoid residential areas wherever possible to minimize physicalrelocation of people, and select alignments that minimize acquisition of privately or publiclyheld productive land;

Adopt design standards that minimize the need to impose land use restrictions on adjoiningareas;

Develop fair and transparent procedures, as defined in the Entitlement Matrix in this RAP todetermine compensation for (i) temporary loss of land/ assets during construction; (ii)permanent acquisition of land and assets; and (iii) restrictions on use of land that may beapplied to areas adjoining the corridor;

Acquire land (or right to use land) through negotiated agreements and with the use of the powerof eminent domain only as a last resort. Even if PAPs agree to negotiate and reach anagreement, they are still covered under this RAP and WB due diligence requirement.

Upon completion of construction, restore land as best as possible to its original condition in theevent of temporary disruption so as to enable landowners/users/lessees to resume their pre-project activities;

Keep affected people and communities fully informed about the project, the process that willbe followed to acquire and compensate for land, and their related rights and avenues forredress.

Ensure that grievances PAPs may have will be redressed adequately and that solutions in linewith principles laid out in this RAP be employed;

All PAPs, without regard to legal status of property, will receive support of various kinds, as perthe principles set out in the Entitlement Matrix, to assist them in their efforts to maintain theirlivelihoods and standards of living prevailing prior to the Project. Those who illegally own landwill not be compensated for loss of land, but will receive compensation for loss of other assetswhich had been established on their own finance, and for loss of income such that they are alsoassisted in their efforts to maintain their livelihoods. PAPs will be notified of the projectimplementation schedule and consulted regarding the principles of land acquisition and loss ofor damage to assets.

Damages to assets, such as standing crops, trees, fences and kiosks, and loss of income,including loss of harvest, will be minimized, and where inevitable, will be compensatedwithout regard to legal status of ownership according to the Entitlement Matrix provided inthis RAP.

The contractor is responsible for repairing any accidental damage of property to non-acquired assets.

75. Marketing research was conducted during RAP preparation to assess the prevailing market pricesof land, construction materials for affected structures, crops and other relevant items, and was used todetermine compensation. This will additionally ensure that the market prices plus any transaction costs willallow PAPs to purchase replacement land.Loss of income and assets will be compensated on replacement value, which includes market value plustaxes and transaction costs, and without tax, depreciation or any other deduction.

The final RAP will be submitted to and cleared by the Bank and all compensation to the PAPs will be paidprior to the execution of civil works for relevant sections..

76. The details of land acquisition procedure are spelled out in the RAP, inclusive of the following:

39

Initial consultation with PAP to notify the project and its impact Census, geographic survey and socioeconomic survey of PAP

Determination of PAP and types/ scale of impact

Development of compensation package and drafting of RAP Consultation with PAP Negotiation with PAP and payment of compensation

If the negotiation with PAP fail, the applicable legislation of property expropriation will be used.

Compensation/rehabilitation measures will be implemented before land take for project purposes.

77. According to the applicable land acquisition legislation of Georgia, the complete and accurateregistration of privately owned land is a necessary prerequisite for the acquisition of land required for theproject by the organizations implementing the necessary infrastructural projects. The Roads Department ofthe Ministry of Regional Development and Infrastructure of Georgia, will acquire privately owned landthrough negotiations, as far as possible, based on the informal consultations with the affected persons(including those lacking the legal title of the land). During the negotiations, the adequate and fair price ofthe land and/or other assets will be offered.

The Roads Department of the Ministry of Regional Development and Infrastructure of Georgia, willensure the open process of negotiations with the affected persons, and will do its best endeavors tosucceed. Just in case, if the negotiations fail, the applicable legislation of property expropriation land willbe used for the expropriation of land.78. The Land Acquisition and Resettlement working group of the Roads Department which is assistedby the district Land Acquisition and Resettlement team will hold talks with the affected persons aboutcompensation. In the case of successful negotiations, sale and purchase agreements will be signed withthe legalized owners of purchased parcels of land, while the entitlement agreement on assets andincome compensation/rehabilitation will be signed with the affected persons. All complaints of therelocation affected persons will be determined by the grievance mechanism provided by the project (seesection 8 below)

In the case of failed negotiations despite the grievance mechanism involved, the Roads Departmentof the Ministry of Regional Development and Infrastructure of Georgia will petition the district court forthe expropriation process.79. The Roads Department of the Ministry of Regional Development and Infrastructure of Georgiawill provide new maps and drawings with cadastral, and legal details, which are necessary for thelegalization to interested owners subject to legalization. This process will be continued by the localadministration which will verify the ownership certificates according to those maps and the land will befinally registered at the regional registry office of the National Agency of Public Register before the issuanceof the project compensation. Procedures of land acquisition for the project are included in Appendix 2.

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4.3 Compensation Eligibility and Entitlements

4.3.1 Eligibility

80. APs entitled for compensation or at least rehabilitation provisions under the Projectare:

(i) All APs losing land either covered by legal title/traditional land rights, Legalizable, or withoutlegal status;

(ii) Tenants and sharecroppers whether registered or not;(iii) Owners of buildings, crops, plants, or other objects attached to the land; and(iv) APs losing business, income, and salaries.

81. In particular for concerns land assets the eligibility to land compensation for thisproject 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 legitimate leasers under the old Soviet system and have regularly

cultivated/used their land but do not have plots with a house or adjacent to a plot with ahouse will not be legalized but will be compensated.

Untitled APs who were not legitimate leasers under the old Soviet system and who use orcultivate the land they occupy only extemporaneously will not be legalized nor compensated.They however, are still eligible for crop or income compensation.

82. Compensation Compensation eligibility is limited by a cut-off date set on the day ofthe beginning of the AP Census and DMS (15 of September 2015).. APs who settle in theaffected areas after the cut-off date will not be eligible for compensation. They, however willbe given sufficient advance notice, requested to vacate premises and dismantle affectedstructures prior to project implementation. Their dismantled structures materials will not beconfiscated and they will not pay any fine or suffer any sanction.

4.3.2 Definition of Entitlements

83. The Entitlement Matrix is prepared based on provisions of Resettlement PolicyFrameworks developed for the WB financed East-West Highway Coridor ImprovementProject in May 2015. Entitlement provisions for APs losing land, houses, and income andrehabilitation subsidies will include provisions for permanent or temporary land losses,buildings losses, crops and trees losses, a relocation subsidy, and a business lossesallowance based on tax declarations and/or existing minimum market rates. Theseentitlements are detailed below:

Agricultural land impacts will be compensated at replacement value either withreplacement plots of the same value of the land lost and at location acceptable to APs wherefeasible, or in cash free of transaction costs at current market rates or (if no land markets areactive) based on the reproduction cost of the affected land. The cash at market rates optionhas been selected for the Program. When >10% of an AP agricultural land is affected, AP(owners, leaseholders and sharecroppers) will get an additional allowance for severeimpacts equal to the cost of 2 year annual yield of crops or 3 months of minimumsubsistence income, (whicever figure is greater).. Transaction taxes/fees will be paid by theEA or waived. Legalizable APs will be legalized and paid as titled owners. Non-legalizableAPs will be compensated with one time self-relocation allowances in cash equal to 1 year ofminimum subsistence income. Residual non-affected sections of a plot that becomesinaccessible or unviable to use after acquisition will also be compensated.

41

Non agricultural land (Residential/commercial land). Legal settlers will be compensatedat replacement rate either with replacement plots of same value as plots affected and atlocation acceptable to APs where feasible, or in cash at current market rates, free oftransaction cost. The cash at market rates option has been selected for the Program.

Houses, buildings, and structures. In order to address potential damages of vibrations ordiscomfort caused by road traffic, these items will be compensated in full for the wholebuilding irrespective of the specific degree of impact. Compensation will be provided in cashat replacement cost free of deductions for depreciation, transaction costs or salvagedmaterials. All relevant APs are entitled to this provision by default irrespective of theregistration status of the affected item.

Crops: Cash compensation at current market rates for the gross value of 1 year’s harvestby default10. Crop compensation will be paid both to landowners and tenants based on theirspecific sharecropping agreements.

Trees: Cash compensation at market rate based on type, age and productivity of trees. Relocation allowance: APs forced to relocate will receive a relocation subsidy sufficient to

cover transport costs and living expenses for 3 months. Vulnerable Peoples Allowance: Vulnerable people (APs below poverty line and women or

disabled households without any other bread-winner member of family) will be given an one-time allowance set to be three month payment of the minimum monthly subsistence incomelevel11.

Severe Impacts Allowance; APs losing >10% of agricultural land will receive a severeimpacts allowance equal to the cost of 2 year annual yield of crops or 3 months of minimumsubsistence income, (whichever figure is greater) APs losing >10% of non-agriculturalincome will be given an one-time allowance set to be three month payment of the minimummonthly subsistence income level.

Community Structures and Public Utilities: Will be fully replaced or rehabilitated so as tosatisfy their pre-project functions.

Temporary impact during construction: All land required for temporary use is to beobtained by the civil works Contractor through voluntary negotiations (e.g., willing buyer-willing seller basis). The maximum period for temporary use is defined as 2 years.Compensation rates to be paid should not be less than compensation at current market ratesfor the gross value of 4 year’s harvest of crops on the affected lands. It is also required thatlands (or other assets) be fully cleared and restored following use

4.3.3 Compensation Entitlement Matrix

84. Tasks under the Project will be implemented according to a compensation eligibilityand entitlements framework in line with both Georgia laws and regulation and WB OP 4.12Policy. A summary entitlements matrix is included in Table 4.2 below. The EntitlementMatrix is prepared based on provisions of Resettlement Policy Frameworks developed forthe WB financed East-West Highway Coridor Improvement Project in May 2015.

10 Compensation by default means that crop compensation will be paid irrespective of whether the crops werealready harvested or not at the time of impact. This covers also compensations for income expected from cropson affected agricultural land permanently used for crop cultivation during the recent years. In case if the land waspermanently used for crop cultivation, but for the year, when the inventory of losses was conducted, no cropshave been planted (due to need of rest to this land or illness of the farmer or any justifiable reason), the landparcel still will be considered as designed for crop cultivation and relevant compensations will be paid

11 The amount of minimum monthly subsistence income level for the family of five members will be obtainedfrom the official website of the Department of Statistics for the moment of specific RAP preparation. ForOctober 2015 this value is equal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 isestimated as 325.2 GEL. Thus the figure 326 GEL has been adopted as payment rate for this project.

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Table 4-2: Compensation Entitlement MatrixType of Impact Application Definition of PAP Compensation EntitlementsPermanent loss ofagricultural land















Structures

Residential house Project affectedresidentialdwellings subjectto partial/fulldemolition





In addition, Livelihood Restoration initiatives will beprovided to PAPs that may face deterioration oflivelihood through indirect impact of proposed roadproject. (e.g. project impact is extended only onresidential dwelling subject to full cashcompensation at replacement costs and additionalone-time allowances to transport salvaged materials

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and personal belongings. However, other incomegenerating assets (agricultural land/privatecommercial facilities) may remain outside of projectimpact; correspondingly these assets may not beincluded in the suggested compensation package.PAPs after moving and settling down to a newlocation may at least temporarily lose income due tolack of access (increased travel time, complicatedaccessibility) to the above mentioned incomegenerating assets not affected by the proposedproject.




Commercialstructure




Tenant of commercialfacility




Annual Crops Crops affected All PAPs (includingsquatters)

Crop compensation in cash at market rate by defaultat gross crop value of expected harvest for 1 year.Compensation for this item will be provided even incase if the crops were harvested.







No cash compensation will be issued for perennialsnot bearing fruits.PAPs will be eligible to dispose logged treesthemselves. However, a cash amount will beallocated per each affected non-fruit bearing tree toallow the PAP to purchase saplings and plant themon the remaining portion or on a newly allocated

12 If there are cases where the tenant/renter has paid rent in advance for a longer period of time, thelandlord will be requested to reimburse the money to the tenant/renter for the corresponding period ifadequate evidence is available.

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replacement land parcel.Construction company ensures free logging anddelivery of timber to the residence of PAPs.

Income loss

BusinessEmployment











CommunityResources


VulnerablePAPs

PAPs below povertyline; disabled people;pensioners; widows;Female headedhouseholds;impoverished; IDPs;Refugees.


13 In some cases, the PAPs may be reimbursed transaction related costs they incurred for road project purposes(e.g. VAT, Income Tax, Court/Notary fees, Court costs.14 The amount of minimum monthly subsistence income level for the family of five members will be obtainedfrom the official website of the Department of Statistics for the moment of specific RAP preparation. ForOctober 2015 this value is equal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 isestimated as 325.2 GEL. Thus the figure 326 GEEL has been adopted as payment rate for this project

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.

4.3.4 Assistance for Severely affected and Vulnerable AH

85. In addition to compensation for assets lost, Vulnerable AH are entitled one-timeallowance set to be three month payment of the minimum monthly subsistence income level.AHs are considered as vulnerable in case they are registered as poor in the local socialservices or are women-headed or disabled –headed households without bred-winner.Households with members with disabilities or people in pension age will receive theallowance only if they are registered as poor.

86. The above AH will receive an allowance of 326 GEL x 3 months or 978 GEL in all.These figures are taken from the National Statistics Office of Georgia Department data onminimum subsistence income for a family of 5 persons in ) October 2015 and rechecked forJanuary and February of 2016).

87. Severely affected AH will receive a severe impacts allowance equal to the cost of 2year annual yield of crops or 3 months of minimum subsistence income, (whichever figure isgreater).

4.3.5 Valuation and Compensation Rates

4.3.5.1 Principles and Methodology

15 The amount of minimum monthly subsistence income level for the family of five members will be obtainedfrom the official website of the Department of Statistics for the moment of specific RAP preparation. ForOctober 2015 this value is equal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 isestimated as 325.2 GEL. Thus the figure 326 GEEL has been adopted as payment rate for this project.

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88. The principles of valuation of acquired land and assets have been devised as per WBOP 4.12 on involuntary resettlement. The policy states that all loss of the APs have to becompensated at full replacement cost at the time of dispossession of the property forpurpose of infrastructure projects. The calculation of replacement costs will be based on (i)fair market value at the time of dispossession, (ii) transaction/legalization costs, (iii)transitional and restoration (land preparation and reconstruction) costs, and (v) otherapplicable payments. In order to ensure compensation at replacement cost, good practiceexamples in compliance with WB OP 4.12 were followed for determining the replacementcost of acquired assets.

89. The calculation of unit value is done keeping in consideration the current market rateso as to meet with the replacement cost of the land and lost assets etc. An experienced andregistered independent local company was employed to do the valuation of land, structures,buildings, trees, crops etc. The approach of the evaluator was to make the assessment foreach type of land and assets by location. The valuation was done when the census andDMS were conducted by the same company who prepared the map of affected plots withdemarcation of cut-off areas. The valuation company engaged its experts for its respectiveareas who made site visits for physical verification of each category of the losses. The expertteam also took into consideration the reference of previous valuation if available and alsoused their recommended periodic release of market survey. Based on this methodology theunit rate was derived. The unit rates used in this report are based on the evaluation agency’sassessment with their standard methods for calculating the sample assets.90.

4.3.5.2 Determination of Compensation Rates

91. Replacement cost of land has been determined based on existing market rates to theextent possible and adding the applicable transaction cost like registration with the NAPR atthe rayon level Registration Office and the rayon PRRC. Market rates where defined takinginto account the type of land, its purported use, and location.

92. Replacement cost of houses/buildings was determined based on construction type,cost of materials, transportation, types of construction, land preparation, labour, and otherconstruction costs at current rates. No deduction for depreciation and transaction costs willbe applied.

93. Market value of annual crops has been determined at net market rates at the farmgate for the first year crop. In the eventuality that more than one-year compensation is due tothe APs the crops after the first will be compensated at gross market value.

94. Tree market value has been set based on different methods for wood and fruit trees.Wood trees are valued based on growth category and value of wood of the tree at the agethe tree was cut. Fruit trees will be compensated differently if they are productive or not yetproductive. Productive trees will be compensated based on the future income lost for theyears needed to re-grow a tree at the same age/production potential in which was cut. Nonproductive trees will be compensated based on the value of the investment made to growthe tree to the age in which the tree was cut.

95. The unit compensation rates recommended by the valuation company have beenreviewed and approved by the RDMRDI and will be offered to the APs. Detailedmethodology for determining valuations and compensation rates is included in Annex-1.

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V. INSTITUTIONAL ARRANGEMENTS

5.1 Introduction

96. Ministry of Regional Development and Infrastructure (MRDI) is the executing agency(EA) of the Project on behalf of the Government of Georgia and the Roads Department ofthe MRDI (RDMRDI) is the implementing agency (IA). The World Bank (WB) will befinancing the Project for civil works construction and construction supervision. RDMRDI isresponsible for road construction as well as land acquisition and resettlement of the APs dueto land acquisition and project construction. On the basis of rayon (district) administration,two RAPs have been prepared for Stage 1 construction of the Project following the feasibilitylevel RAP prepared in 2009 for Section 1 of the Project. Present RAP covers the subsectionlocated in Khashuri Rayon (km 126 – km 140). The compensation/ rehabilitation programdescribed in RAP involves distinct processes and dynamics and different actors. RDMRDIhas the lead responsibility for road construction, as well as implementation of RAP withassistance from consultants.

97. RDMRDI is assisted by a number of other government departments and privateagencies in the design, construction and operation of the Project. Pursuant to the activelegislations, National Agency of Public Registry (NAPR) within the Ministry of Justice is incharge of the recognition of ownership rights of rightful owners, registration of landownership, with process verification and certification from Village Communities, Notaries,Property Rights Recognition Commission (PRRC), and Sakrebulo. Rayon NAPR is alsoresponsible for registering transfer of acquired land from landowners to the RDMRDI. Thelocal government at Rayon and village levels are involved in the legalization of legalizableland parcels and subsequently land acquisition and resettlement of APs. The Ministry ofEnvironmental Protection is responsible for environmental issues.

98. RAP comprises the road section in Khashuri Rayon of Shida Kartli Region. KhashuriSakrebulo, Gamgeoba, Registration Office and PRRC are all involved in RAP. LocalSakrebulos and Rtsmunebuli of villages Utkhva, Chumateleti, Bijnisi, are involved for locallevel LAR activities.

5.2 Land Registration Organizations

99. Government agencies active at various levels in the process of legalization ofprivately owned land parcels are described hereunder.

5.2.1 Rtsmunebuli and Gamgeoba at Village ( Community) Level

100. Community level Gamgeoba is the executive branch of self-government headed byRtsmunebuli. Rtsmunebuli has the primary role in the process of legalization and registrationof land parcels. Rtsmunebuli confirms ownership of affected land plots, parameters of landplots and endorses the cadastral maps and related data prepared for case of legalization16.Gamgebeli plays important role for legalization of non-rightful owners (owners in possessionbefore the enactment of current law on privatization of land in Georgia without priorpermission of the government). Gamgeoba has power to authorize17 details of the occupied

16 Owners for legalization of their unregistered land parcels, in normal procedure, use the services ofprivate mapping agencies and experts on payment for preparation of land details (maps and plotparameters). In case of this project, the consultants have been assisting in preparing basicdocuments like maps and plot details.

17 This is not mandatory but one of the possible procedures for legalization of the non-rightful owners.Witnesses’ signature confirmed notarially is also legally acceptable for confirmation of non-rightful

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land parcel and verify its usage pattern as the first hand verification and authorization forfurther consideration in the Property Rights Registration Commission (PRRC) as a basicstep for registration with the Public Registry. Neighbours of applicants for legalization haveroles in the authorization process. Rtsmunebulis of the villages Aradeti/Sagolasheni/Mreti,Ruisi, Urbnisi and Bebnisi will be involved in RAP process of updating and implementation.

5.2.2 Sakrebulo

101. Sakrebulo is the representative branch of self-government at rayon and village level.The village/rayon level Sakrebulo has now less involvement in the process of legalization oflegalizable land plots. However, Rayon Sakrebulo assists the PRRC in the process ofauthorization of application of non-rightful owners.

5.2.3 Property Rights Recognition Commission

102. Under the Law of Georgia on Recognition of the Property Ownership RightsRegarding the Land Plots Owned (Used) by Physical Persons or Legal entities; 2007, theGovernment of Georgia has established the PRRC at the Rayon level for recognition ofownership rights of non-rightful owners for registration. PRRC verifies and authorizesapplication of ownership for registration with the NAPR. PRRC authorizes application of onlythose APs, who are not registered but have residential land or agricultural plots adjacent tothe residential land (“non-rightful land owners”, according to definition of Georgianregulations).

5.2.4 Rayon Registration Office

103. NAPR is in charge of the registration of land ownership and its transfer throughpurchase agreement from landowners to the RDMRDI. Rayon Archives are now transferredin the possession of the Rayon Registration Offices of the NAPR. Rayon Archive is used forcross verification of ownership document and validity of physical possession of land bypersons seeking registration as legalizable owner, in the case, owner does not haveavailable documentation proving ownership rights on the adjacent land plot or in case thereis any doubt regarding the plot.

104. Rayon Registration Office of the NAPR is the Rayon level authority for executingregistration of land parcels in the name of the applicants based on package of applicationdocuments provided by rightful owners (APs possessing ownership documents but with titleformalization pending) or by non-rightful owners after receiving appropriate certificate fromPRRC as the case may be. The owners submit both soft copy and hard copy of plot mapswith geometric details for record in the Rayon and Central NAPR. Khashuri rayon office ofNAPR is involved in the updating and implementation of RAP.

ownership of land plot.

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5.3 Land Acquisition and Resettlement Organizations

5.3.1 RDMRDI of Georgia

105. RDMRDI has the overall responsibility of design, land acquisition and resettlement, construction,construction monitoring and supervision of the Project. This also includes financing and executing landacquisition and resettlement tasks and cross-agency coordination. RDMRDI will exercise its functionsthrough its existing resettlement division (RRDRD) which will be responsible for the generalmanagement of the planning and implementation of all LAR tasks, and LAR Commission and WorkingGroup18.

106. A RRDRD having specific experience and skills in LAR is responsible for LAR activities relatedto the project, for all technical work to accomplish all LAR preparation and implementation tasks andcoordination within the RDMRDI, as well as at central and local government levels and will beresponsible for:

(i) screening the projects and ensuring that the RAPs are properly prepared and sent to WB forreview;

(ii) supervising the consultants that prepare the RAPs and assist in their implementation;(iii) establishing needed LAR capacity at each regional level office where LAR is relevant;(iv) ensuring proper internal monitoring; and(v) hire, following WB recommendation, the external monitoring agency.

RRDRD will also provide all needed documentation to ensure the prompt allocation of LAR budgets tothe APs and will maintain the coordination of all LAR related activities.

RDMRDI local offices. The Regional RDMRDI offices will assist the activities of the RRDRD with onededicated officer who will facilitate the communication between the RRDRD, the local governments andthe APs and assist in implementing LAR tasks related to the local administration.

5.3.2 Consultants

Different types of consultants will be involved in LAR tasks:

a) PPTA consultants: These include international and/or local LAR capacity and needed surveyteams to carry out field-surveys and prepare the needed RAPs.

b) Design consultants: These will include international and local LAR capacity and needed surveyteams carry out the same activities for updating/finalizing the RAPs of first tranche based on thedetailed engineering design and will also prepare RAPs.

c) Supervision consultants: These include international and local LAR capacity and needed surveyteams and will assist in overall Project supervision.

d) Social Safeguards Consultant (SSC): This consultant will be hired to conduct the externalmonitoring and evaluation of the RAP implementation. In the absence of a supervision consultant,the SSC will continue to carry out the external monitoring and evaluation for all the RAPs.

e) Independent Asset valuators: These will be accredited private firms to be hired by the PPTA orDesign consultants to carry out the evaluation of affected assets.

107. LAR Commission (LARC) within RDMRDI has the authority to finally endorse all LAR relateddecisions and actions (i.e. approval of RAP, initiation of compensation payments etc.). LARC sits forreviewing issues for decision on as and when necessary basis. LARC will oversee and monitorimplementation of the RAP to ensure that all APs are duly compensated and that mitigating measuresare instituted by the Civil Works Contractor as a result of temporary impacts. It is also the final pre-litigation authority to provide decision on grievances those cannot be resolved at the regional level.LARC will ensure that the Project is implemented in accordance with the WB OP 4.12 and ADB policy

18 LAR Commission and Working Group have been established by RDMRDI first in 03.05.2007 by the order #40, andsince then this mechanism is used for implementing LAR activities.

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requirements and the approved RAP. A Grievance Redress Committee (GRC) at the Gamgeoba level ofthe Rayons will be working to resolve the grievances of APs as a means of reducing grievances andavoiding expropriation process for acquisition of land.

108. The structure of the LARC and Working Group includes experienced and skilled experts ofeconomics and law, who simultaneously take responsible positions in RDMRDI. In case of need, on thebasis of agreement with RDMRDI management and LARC the structure of the Working Group can beexpanded inviting professionals of different sectors in response of the volume of LAR work for a project.The core team of the Working Group is represented by RU, which is supplemented by legal experts,financial experts, engineers and the like from other departments of RDMRDI.

109. The specific tasks of the Working Group and RU will be to (i) updating RAP following appropriateprocedures as per RPF/LARF and send to donor IFI for approval, (ii) supervise preparation of RAP forconstruction contracts and implement it after concurrence from donor IFI; (iii) establish LAR capacity atthe regional level offices of the RDMRDI; (iv) ensure proper internal monitoring; and (v) hire, followingthe donor IFI recommendation the external monitoring agency.

110. RU will also provide all necessary documentation to ensure the prompt allocation of landacquisition and resettlement budgets to the APs and will maintain the coordination of all land acquisitionand resettlement related activities.

5.3.3 ETCIC

111. Evrasian Transport Coridor investment Center (ETCIC), special independant agency, has beenestablished within RDMRDI for financial management of ADB and WB financed projects. ETCIC will getfpunds from we ministry of Finance alocated for the project and disburst them to APs folling requisitionRRDRD (RDMRDI. ETCIC will review scrutinaze and transfere the amount of compensation andallowances in the bank account of APs mentioned in the comansation and allwances ledger prepared,comfirmed and produced by RRDRD for each AP.

5.3.4 Rayon LAR Team

112. Rayon LAR Team will assist the central LARC and provide assistance to APs in the process oflegalization of legalizable owners. Based on the RDMRDI's LARC decision and the RAP prices, the offerof purchase of land parcels shall be undertaken. If an AP agrees on the acquisition he/she will confirmsuch agreement in writing by signing the Sales/Purchase Agreement that will be registered with thePublic Registry. This agreement will serve as the basis for compensation payment processing andrelease. If agreement is not reached between the AP and the LAR Team, the later will inform the LARC,which will take decision to start expropriation.

5.3.5 Local Governments

113. Local administration especially at Rayon level has direct jurisdiction for land administration,valuation, verification and acquisition. To confirm the surveys and the asset valuations carried out by theLAR consultants, RDMRDI through its consultants will establish Rayon Level LAR Teams which willhave designated officials from the Rayon administration (Rayon Sakrebulo; Gamgebeli) andrepresentatives of each affected village/community administration (representatives of all affectedcommunity/village level Sakrebulos and Gamgebelis). The Rayon level LAR Teams have been formedin the district of Kareli who are working closely with the consultants and RDMRDI. LAR Team of Karelirayon is participating in RAP preparation and implementation.

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5.4 Other Organizations and Agencies

5.4.1 Civil Works Contractor

114. A Civil Works Contractor to be appointed by the RDMRDI to undertake the construction will beresponsible for mitigating impacts resulting from the construction activities. Based on the RAP and theTechnical Design, the parcel of land that will be identified and acquired as part of road ROW will bedemarcated to clearly delineate it from the remaining non-acquired parts. The construction activitiesshall be monitored closely by the RDMRDI to ensure compliance to the temporary mitigating measures.

5.4.2 Consultants and Auditors

115. The design consultant will be responsible for preparation and implementation of RAP and aconstruction supervision consultant will be in place to supervise civil works construction.

(i) Design Consultant: The design consultant has an international social development andresettlement specialist and a national resettlement / social specialist for finalizing RAP foreach construction stage. The design consultant has hired a survey and independent auditagency for land acquisition and resettlement survey and documentation including census,socioeconomic survey, inventory of losses, and valuation of land and assets forreplacement value. RAP has been prepared based on findings of the surveys followingthe final alignment as per detailed engineering design.

(ii) Construction Supervision Consultant: Construction supervision consultant (CSC) willhave land acquisition and resettlement specialists to oversee implementation of RAPbefore the civil works start and all resettlement related issues that may arise during theconstruction

5.4.3 Court of Georgia

116. The Court of Georgia shall be the last resort for issues and concerns regarding theimplementation of the RAP. In case there is no agreement between the RDRD and the APs concerningthe acquisition of private properties, the RDMRDI with the mandate for expropriation based on existinglegislations will submit to the Court a request for expropriation. Upon its approval and followingprescribed procedure, RDMRDI will then take over the concerned property after having been given bythe Court the right of the Expropriator.

117. Furthermore, in cases where complaints and grievances regarding RAP implementation andcompensation are not solved at the various levels as prescribed in the agreed Grievance RedressMechanism, the APs will have the right to appeal the case to the Court as a last resort. Its decision shallbe final and executory.

5.4.4 Ministry of Finance

118. The budgets for the implementation of RAP will be provided to RDMRDI by the Ministry ofFinance following its official approval. The RAP budget will be allocated on the accounts of TRRC that isresponsible for the financial management of the project.

5.4.5 Ministry of Justice

119. The Ministry of Justice is responsible for legal matters regarding land ownership, and NationalAgency of Public Registry (NAPR) within the Ministry of Justice is in charge of the registration of landownership and its transfer through purchase agreement from landowners to the Road Department.

5.4.6 Donor WB

Besides supervising the Project periodically, the WB will review RAP and provideclearance to contract awards signing and initiation of civil works.

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5.4.7 External Monitoring Agency

120. RDMRDI will appoint an independent external monitoring agency (EMA) for external monitoringand ex-post evaluation of the RAP implementation. External monitoring covers all aspects of RAPimplementation, starting from legalization and finishing with payment of all compensation andrehabilitation allowances before starting civil works. External monitoring could be executed by the CSCin case if CSC is available during RAP implementation.

121. An organization chart showing all the concerned institutions to be involved in the LAR activities isdepicted in Figure 5.1:

5.5 Capacity Building on LAR

122. Initial level of capacity building exercise in the relevant agencies was carried out during thepreparation of RAP at the feasibility study. Close consultations were held with all the concerneddepartments. RDMRDI has already an established Resettlement Unit under RDRD dealing with roadsdevelopment, land acquisition and resettlement. During the feasibility study, informal training wasprovided by the consultant’s resettlement specialist to these officials on the requirements of WB OP4.12 policy and how to develop a balanced compensation package fulfilling the requirements of APs,Government, RDMRDI, donor IFIs. Capacity building training was also initiated through a series ofconsultations and informal training sessions in the local administration level. The representative ofRDMRDI at regional level was also responsible for the planning of LAR activities and was responsiblefor coordinating with the rayon administration. Rayon level LAR Teams were formed at each rayon thatwill be responsible for LAR activities assisting the LARC of the RDMRDI in the process of RAPimplementation.

123. In terms of capacity and manpower resources within RU of the RDRD, some expansion of thecapacity on LAR currently available at RDRD has been desired to allow an effective execution of all LARrelated tasks for the project. RU of the RDRD is in a process of expansion and new staff members willbe hired before the RAP implementation starts. All concerned staff both at RU, LARC, at Rayon andfield levels involved in LAR activities will undergo training on WB resettlement policy and management.The training will be provided under the ADB RETA or similar WB programs for capacity building ofexecuting agencies on involuntary resettlement.19 Training will cover the following topics:

(i) Principles and procedures of land acquisition (WB and GOG);(ii) Stakeholders of the project(iii) Organizations involved in the process of land acquisition and resettlement and their roles(iv) Public consultation and participation process;(v) Entitlements and compensation and assistance disbursement mechanisms;(vi) Grievance redress; and(vii) Monitoring of resettlement operations.

19 So far as RDMRDI is implementing also ADB financed projects, training under ADB financed programs isavailable and will complement the WB financed capacity building efforts. Regional Technical Assistance ProjectRETA-7433 REG: Mainstreaming Land Acquisition and Resettlement Safeguards in the Central and West Asia.

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Figure 5.1 Project Implementation Organogram

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VI. CONSULTATION, AND PARTICIPATION

6.1 Introduction

124. Consultation and participation is a process through which stakeholders influence and sharecontrol over development initiatives, and the decisions and resources that affect them. It is a two wayprocess where the executing agencies, policy makers, beneficiaries and AP discuss and share theirconcerns in a project process. Consultation and participation has been a major principle in the planningand preparation of the detailed design of the Project. WB OP 4.12 gives high priority on publicconsultation and participation to enhance the community voice and assure incorporation of community’sviews in design and implementation of a socially and environmentally compliant project. The Georgianlaws also place strong emphasis on consultation and notification to ensure that the AP participate in theprocess.

125. The focus of these consultations are to ensure that the AP and other stakeholders are informed,educated, consulted and allowed to participate actively in the process of road development andpreparation of social and resettlement plan; reducing public resistance to change; helping mitigate andminimize any probable negative impact and bringing in the benefit of the project to the people. Theproject design and preparation of land acquisition and resettlement plans, therefore, attemptedconsultation and participation of the AP and communities to incorporate their views, needs andaspirations into the Project components. The consultation process has stepped up at detail designthrough public consultation meetings and individual contacts during land acquisition and resettlementsurveys in August – October 2015. The final series of public consultation meetings are planned to beconducted in November 2015, upon the approval of this draft RAP.

6.2 Consultation Process and Methodology

126. Consultation with local communities and government bodies in the project process wasinstrumental for alignment demarcation and selection of route, intersection and underpass sectionsfor the Zemo Osiauri - Cumateleti road (Section 2, v. Kakalatkhevi – East Portal of Rikoti Tunnel).The route of the project road underwent several ajstments to avoid dense settlement,environmentally protected areas, civic amenities, and land acquisition. The public consultationprocess entailed clearly explaining the project and its impacts to the community through introducingthe project and its impacts through leaflets in local language, clearly explaining to the communities ininformal and formal consultation meetings and individual level discussion during the census anddetailed measurement surveys of land and property.

127. Consultation with the APs in the project affected areas were conducted during the preparation ofthe draft RAP for section 2 in 2015. The methodology includes walk-through informal group discussion,focused group discussion, individual interview, key informant interviews, and informal discussion. TheAPs, their community, and local government officials were consulted to inform, educate and providefeedback in the project design. All likely AP persons were consulted through individual contact at thetime of census, socioeconomic survey and detail measurement survey. The community level meetingswere conducted in November 2015.

128. Various methods used for stakeholder’s consultation and participation with concernedstakeholders are described in Table 6.1.

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Table 6.1: Summary on Party consulted and consultation methods

Stakeholders Purpose Method

Likely APs and theircommunity

To inform the APs, get their views on likelyimpacts, eligibility and entitlements, as wellas procedures for compensation, relocationand rehabilitation.

Meetings with all AHduring the implementationof the socio-economicsurvey.

Focus group discussionsand village meetings

Roads Department (RDMRDI)including its Resettlement Unit

To collect government's policy, guidelinespriorities on the project, and to seek advisefor work.

Frequent individualmeetings with the officialsof RDMRDI

National Agency for PublicRegistry under the ministry ofJustice

To collect the cadastral map and to know thedetails of the affected parcels and people

Consultation anddiscussion with officials

Local Government at RayonLevel (District Municipality),Rtsmunebuli

To seek their cooperation for carrying out theimpact assessment survey and to sort out theproblem related to missing plots (LegalizableOwners)

Individual meetings withthe officials of respectiverayons and discussions

Property RecognitionCommission in the RayonLevel and Sakrebulo

To seek their cooperation for carrying out theimpact assessment survey and to sort out theproblem related to missing plots (LegalizableOwners)

Meeting and training

6.3 Summary of Consultation during Feasibility Study

129. The major findings of the consultations held at various locations during the feasibility study aresummarized below.

(i) The likely APs and their community are aware about the project.(ii) APs losing their properties expected a proper compensation package.(iii) The structure owners request adequate compensation to rebuild their structure at

alternative site. They should get advance notice for relocation.(iv) Measures should focus on installing speed limit, children signs as well as putting

pedestrian areas, adequate footpaths.(v) Government should provide the alternative land to the landless people for their

relocation.(vi) The compensation should be based on the fair assessment.(vii) Contractors should be advised by the project authority to employ the local people.

6.6 Consultation and Participation Plan

130. RU on behalf of RDMRDI will pursue information disclosure for effective implementation andtimely execution of RAP. Village/community level consultations with APs will be conducted in November2015, upon the approval of this draft RAP. For the benefit of the community in general and APs inparticular, RAP and renewed information leaflet with indication of the compensation rates will be madeavailable in concerned offices at rayon Sakrebulo and the community level Gamgeoba. An informationleaflet (in Georgian) will be distributed among the APs and their community. A copy of the Englishversion of LAR Leaflet is attached as Annex 3.

131. For continued consultations, the following steps are envisaged in the project:

(i) Final RAP will be disclosed upon receiving approval from the WB(ii) RDMRDI will organize public meetings and will apprise the communities about the

progress in the implementation of resettlement, and social activities.(iii) RDMRDI through its RU will organize public meetings to inform the community about the

compensation and assistance to be paid. Regular update of the progress of the

56

resettlement component of the project will be placed for public display at the local levelRDMRDI office and at local Rayon Office.

(iv) All monitoring and evaluation reports of RAP component of the project will be disclosedto the community.

(v) Key features of the entitlements will be disclosed along the project corridor.(vi) RDMRDI will conduct information dissemination sessions at Gamgeoba and solicit the

help of the local community leaders to encourage the participation of the APs in RAPimplementation.

(vii) Attempts will be made to ensure that vulnerable groups understand the process and totake their specific needs into account.

6.7 Disclosure

132. Electronic version of the Final draft RAP will be placed on RDMRDI web-site. The summary ofRAP will be translated into local language (Georgian) and will be disclosed to APs at local level. Thecopy of the RAP (Georgian version) will be available at the concerned offices of Khashuri Municipality.The final RAP will be submitted to the WB for approval and signing of contract awards will follow aftercompletion of legalization of the legalizable owners of the land parcels under acquisition.

57

VII. GRIEVANCE REDRESS MECHANISM

133. A grievance mechanism will be available to allow an AP appealing any decision on which theydisagree, practice or activity arising from land or other assets compensation. APs will be fully informedof their rights and of the procedures for addressing complaints whether verbally or in writing duringconsultation, survey, and time of compensation. Care will always be taken to prevent grievances ratherthan going through a redress process. This can be obtained through careful LAR design andimplementation, by ensuring full participation and consultation with the APs, and by establishingextensive communication and coordination between the affected communities, the EA, and localgovernments in general. Complaint & Grievances will be addressed through the process describedbelow in Table 3.

134. The GRM cosist of project-specific systems established at the municipal level and regularsystem established at RDMRDI. Grievance Reddress Committee (GRCE) established at municipal levelas a project-specific instrument, functional for the whole period of the project implementation. GrievanceRedress Commission (GRCN) is formed as an informal structure within the RDMRDI to ensuregrievance review, resolution and record.

135. Grievance Redress Commission (GRCN) is formed by the order of the Head of RDMRDI as apermanently functional informal structure, engaging personnel of RDMRDI from all departments havingregard to the LAR issues and complaint resolution. This includes top management, Safeguard or LARUnits, Legal Departments, PR department and other relevant departments (depending on specificstructure of the IA). The GRCN is involved at the Stage 2 of grievance resolution process. The Ordershall also state that if necessary representative of local authorities, NGOs, auditors, APs and any otherpersons or entities can be included in the commission as its members.

136. A Grievance Redress Committee (GRCE) is an informal, project-specific grievance redressmechanism, established to administer the grievances at Stage 1. This informal body will be establishedat community level in each affected Municipality (village/community authority). The GRCE shall includerepresentatives of Municipal LAR Teams and local communities. The RDMRDI representative in theMunicipal LAR Team shall coordinate the GRCE formation. He/she will then be responsible for thecoordination of GRC activities and organizing meetings (Convener). In addition, GRCE shall comprisevillage Rtsmunebuli or his/her representative, representatives of APs, women APs (if any), andappropriate local NGOs to allow voices of the affected communities to be heard and ensure aparticipatory decision-making process.

If considered necessary, GRCEs will be established at the community level with an office orderfrom the RDMRDI with provision of 6 members of following composition:

(i) Representative of Resettlement Unit of IA : Convener; Contact Person(ii) Representative Rayon LAR team : Member Secretary(iii) Gamgebeli – concerned Gamgeoba (village level) : Member(iv) Representative of APs : Member(v) Representative of NGO : Member(vi) Representative of Civil Works Contractor : Member(vii)LAR Specialist of Supervision Consultants : Member

Representative of the Resettlement Unit of IA is coordinating the work of the Commettee and atthe same time he is nominated as a contact person for collecting the grievances and handlinggrievance log. The local authorities at the municipal level, civil works Contractor, SupervisingCompany (Engineer), as well as IPs (through informal meetings) are informed about the contactperson and his contact details are available in offices of all mentioned stakeholders.

137. The Contact Person collects and records the grievances, informs all members of the Commetteeand the management of RDMRDI regarding the essense of the problem, engages the relevantstakeholders in discussions with the applicant of grievance, handles the process of negotiation with APat the stage 1 of the grievance resolution. The Contact Person prepares the minnutes of meetings andensures signatures. In case if the grievance is resolved at the stage 1, the Contact Person records the

58

fact of closing the grievance in his log and informs RDMRDI management about this in written. If thecomplainants are not satisfied with the GRC decisions, they can always use the procedures of Stage 2of grievance resolution process. In that case the Contact Person helps the AP in lodging an officialcompalint (the plaintiff should be informed of his/her rights and obligations, rules and procedures ofmaking a complaint, format of complaint, terms of complaint submission, etc).

138. The APs should be informed about the available GRM. This could be achieved throughimplementing information campaigns, distributing brochures (e.g. Communication Plan), Keeping allfocal points up-to-date & maintaining regular communication with them, allowing multiple entry points forcomplaints , Introducing forms for ease of reporting complaints.

Table 3: Grievance Resolution ProcessSteps Action level ProcessStep 1 Negotiations with

APsThe complaint is informally reviewed by the grievanceredress committee (GRC), which takes all necessarymeasures to resolve the dispute amicably.

Step 2 GRC Resolution If the grievance is not solved during the negotiations, the GRCwill assist the aggrieved APs to formally lodge the grievancesto the GRC.The aggrieved APs shall submit their complaints to the GRCwithin 1 week after completion of the negotiations at the villagelevel. The aggrieved AP shall produce documents supportinghis/her claim. The GRC member secretary will review thecomplaint and prepare a Case File for GRC hearing andresolution. A formal hearing will be held with the GRC at adate fixed by the GRC member secretary in consultation withConvenor and the aggrieved APs.On the date of hearing, the aggrieved AP will appear beforethe GRC at the Gamgeoba office for consideration ofgrievance. The member secretary will note down thestatements of the complainant and document all details of theclaim.The decisions from majority of the members will be consideredfinal from the GRC at Stage 1 and will be issued by theConvenor and signed by other members of the GRC. Thecase record will be updated and the decision will becommunicated to the complainant AP.

Step 3 Decision fromcentral RDMRDI

If any aggrieved AP is unsatisfied with the GRC decision, thenext option will be to lodge grievances to the RDMRDI at thenational level. The RDMRDI shall review the complaint incompliance with the procedures specified in the AdministrativeCode of Georgia.GRC should assist the plaintiff in lodging an officialcompalint (the plaintiff should be informed of his/her rightsand obligations, rules and procedures of making acomplaint, format of complaint, terms of complaintsubmission, etc).The plaintiff shall be informed of the decision.

Step 4 Court decision If the RDMRDI decision fails to satisfy the aggrieved APs,they can pursue further action by submitting their case to theappropriate court of law (Rayon Court) without any reprissal.The aggrieved AP can take a legal action not only about theamount of compensation but also any other issues, e.g.occupation of their land by the contractor without their consent,

59

Steps Action level Processdamage or loss of their property, restrictions on the use ofland/assets, etc.

Figure 7.1 Grievance Resolution and Acquisition Process

AP (AP)

NegotiationLAR Team/AP

Agreement Signed

Payment

Land Transferred toRDMRDI

Possession TakenOver by RDMRDI

Rayon Court

NegotiationSuccessful

GrievanceResolved

NegotiationFails

GrievanceUnresolved

GrievanceUnresolved

Expropriation

Grievance Resolutionin GRC

Grievance ResolutionWorking Group

60

VIII. IMPLEMENTATION SCHEDULE

8.1 General

139. The time bound implementation schedule of the RAP has been prepared in consultation with theRDMRDI. All activities related to LAR have been planned to ensure that compensation is paid prior todisplacement and commencement of civil works construction. The most important acquisition activity,relating to the privatization process in Georgia, is the legalization of legalizable owners of the identifiedland parcels for acquisition. The legal status of affected land parcels in the project road in KhashuriRayon has been identified through title search during the land acquisition and resettlement survey anddocumentation work in September 15 – October 30 of 2015. The titled and non-titled but legalizableowners of land parcels to be acquired have been identified in the survey.

140. The present document is the draft of final version of the RAP. RDMRDI has reviewed andapproved this document including compensation package and compensation rates and forwarded to theWB for approval. Tasks for the RAP are divided into (i) Final Preparation including RAP approvalvarious Initial tasks including legalization of legalizable APs and signing of contracts with APs.; (ii) RAPimplementation including processing and making payment of compensation and allowances and (iii)evaluation of implementation. Public consultation, internal monitoring and grievance redress will beundertaken intermittently throughout the project duration. The LAR milestones include (i) approval ofRAP, (ii) signing of contract awards, (iii) letter to proceed for civil works construction and (iv) start ofphysical civil works. A post –implementation evaluation will be carried out after completion of RAPimplementation.

8.2 RAP Approval and Initial Tasks

141. The Resettlement Unit of the RDRD under RDMRDI sets up relevant institutions and line upTRRC, LARC, Working Group/LAR Team, GRC and the like for the Project. Upon completion of thedraft RAP from the detail design consultant, the RU reviews and approve the document includingcompensation rates. RD will submit the approved RAP WB for approval. Meanwhile, RD will implementactions for legalization of legalizable owners listed in the ACS of RAP (Annex 4) at the field level. Allarrangements will be set for signing the contract agreement with the APs and the process will beexecuted for land purchase and compensation agreements. The capacity building exercise will beenhanced during this stage. Representatives of the APs and NGOs may be involved in LAR training atthis stage. After completion of legalization of all legalizable owners of land parcels under RAP RDMRDIwill award civil works contracts (signing of contract awards). The initial LAR activities will be thefollowing:

(i) Establishment of LAR Institutions;(ii) Legalization of Rightful owners of land parcels;(iii) Legalization of the Non-rightful owners of land parcels;(iv) Agreement with APs and signing contract agreements;(v) Updating of LAR Budgets and ACS-I;(vi) Confirmation of updated impact data and of compensation amounts;(vii) Approval of RAP by WB and Government.

The above mentioned procedures were already implemented,civil works are almoust finishing on the section.On additional land plots the same procedures will be implemented.

8.3 RAP Implementation

142. Payment of compensation and allowances under RAP will commence after a number ofpreparatory tasks have been completed. These tasks are:

61

(i) Signing of contacts with APs(ii) Disclosure and consultation(iii) Capacity building training of LAR institutions, APs and NGOs(iv) Grievance resolution(v) Requisition to TRRC for payment of compensation and allowances(vi) Transfer of compensation and allowance to APs' bank account and registration of land in

PR on RDMRDI name(vii) Relocation of affected structures/ assets(viii) Compliance review and reporting(ix) Notice to proceed for Civil works construction(x) Monitoring

8.4 Post Implementation Evaluation

143. The post-implementation evaluation will be conducted after one year of completion of the RAPimplementation and upon start of the civil works construction. An independent External MonitoringAgency (EMA) will carry out the evaluation. The EMA will carry out interim monitoring on a quarterlybasis. In case, if the CSC is engaged at the stages when external monitoring is required, the CSC mayhave the responsibility for the external monitoring and post implementation evaluation.

8.5 RAP Implementation Time Schedule

144. The time bound RAP implementation is presented in Figure 8.1. Land purchase agreements andpayment of compensation and allowances will go simultaneously and a sequence of one week time fromoffer of compensation to agreement, agreement to requisition and requisition to payment transfer isconsidered. A buffer period of one month has been included in the schedule for relocation of housing.Relocation of housing will also go by sections. Under the circumstances, the implementation schedulemay include phased approach for civil works construction.

62

Figure 8.1: RAP Implementation Schedule

RAPTasks

2015 2016

September October December March April May June July August

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 4End of RAPsurveys/valuationLAR InstitutionsEstablishmentAP Consultation

Draft RAPFinalizedWB final reviewAnd approval

GovernmentapprovalDisclosure ofrenewed leafletsand RAP

Legalization

AP agreementssigningAllocation of LARbudgetTransfer ofbudget to TRRCTransfer ofbudget to APbank accountCompensationdeposit inTreasury accountx unsolved casesGrievanceresolutionCourtproceedings incase ofexpropriation

63

Figure 8.1: RAP Implementation Schedule

RAPTasks

2015 2016

September October December March April May June July August

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 4CompliancereportBy EMANote from WB tostart civi lworksRelocation ofaffectedstructuresStart of physicalconstructionInternalMonitoring

64

IX. COSTS AND FINANCING

9.1 General

145. The land acquisition and resettlement cost estimate under RAP includes eligible compensation,resettlement allowances and support cost for implementation of LAR tasks. The support cost, whichincludes administrative expense, is part of the overall project cost. Contingency provisions (10% of thetotal cost) have also been included to take into account variations from this estimate at the negotiationfor contract agreement level. In case of any over-run in cost, RDMRDI will provide additional funds asneeded in a timely fashion. RDMRDI through the approval of Ministry of Finance will be responsible forallocating the LAR Budget in advance as part of their overall annual budget planning. Items of LAR costestimate under RAP are as follows:

(i) Compensation for agricultural, pasture, and commercial land at replacementvalue

(ii) Compensation for structures and buildings at their replacement cost(iii) Compensation for crops and trees(iv) Assistance for severely affected AH(v) Assistance for vulnerable groups for their livelihood restoration(vi) Cost for implementation of RAP.

9.2 Itemized Budgets

146. The following section deals with calculations for various types of compensation and allowancesas per the entitlements and as per the rates determined at current market cost. Compensation will beprovided at least at the rates detailed in this RAP although some modification in excess will be possibleduring the discussions preceding the signing of the contract.

9.2.1 Compensation for Land

147. Compensation of agricultural land has been derived based on the feedback from the affectedpeople and from the independent evaluator. The land is categorized in to 4 types such as agriculturalland plots used as agricultural or residential land, land plots insode the villages considered as the villagedevelopment reserve (residentila lands in future) and non-agricultural (commercial or residential). All 4types of land are affected under this project. All agricultural land affected in this section is irrigated. Costof residual land unviable for cultivation is included in the costs. The details are given in Table 9.1.

Table 9.1: Cost for Land Acquisition

Categories by Land Use and Costs Plots No. Area (sqm)Cost per 1

sqm(Gel)

CompensationCostGel)

Compensable land

Type 1. The land plots of agricultural status,located close to villages and used for agriculturalneeds

48 66 396 4.5 298,782

Type 2. The land plots of agricultural status,located t within the borders of villages andsettlements. These land plots are considered asa reserve for further development of villages andhouseholds living in villages and can be used forconstructing new residential buildings

45 42 129 6 .0 252,774

Type 3. The land plots of agricultural status,used as residential land

22 19 295 9 173,655

65

Type 4. The land plots of non-agricultural status,used as residential or commercial land

3 2745 9 247,05

TOTAL 118 130,565 749,916

9.2.1 Compensation for Structure

148. In total the project affects 33 structures owned by 14 AHs. Out of these 33 structures 6 areresidential houses (3 are 2-storey and 3 are 1 storey capital structures of brick and concrete), withpeople actually living in these houses. Accordinly, 6 AHs will need to be physically relocated and apartfrom the compensation paid for the structure loss, they will receive also allawances for relocation. Inaddition 3 old, not used wooden houses and 1 old wooden house, currently used as a separate kitchenin the yard, are subject for demolition. The owners of these structures will receive only compensation forbuildings but not allowances for relocation. In terms of major structures, 3 complexes of commercialbuildings are under the impact. One complex of smaller size located on the land plot No 156 belongs tothe BMG Ltd and consists of 2 ancillary buildings (1 storey concrete structures), which could be usedfor different commercial needs (as small shops, or offices etc.). Currently, no facilities are disposed inthese buildings and no commercial activities are conducted. The next commercial structure located onthe land plot No 157, represents one 1 storey major building. Currently, the premises are not used forany commercial activities and no facilities are disposed in these buildings. Apart from the fact thatpremises were free of any facilities and personnel during the census period, the non-operational statusof these complexes is confirmed by the owners. Owners of both of the mentioned complexes ofcommercial buildings will receive compensation for their structures at full replacement cost, but nocompensation will be given for income losses due to affected business. The third affected complex ofbuildings is located on the land plot No 154. The major building (1 storey capital structure of block andconcrete) is operational restaurant. . The other 5 structures are ancillary buildings (kiosks, toilet etc.)functionally connected with the restraunt. The owner of this complex of structures will receivecompensation for demolished buildings at replacement cost and in addition will be provided bycompensation for the business loss. The rest of affected structures are minor - ancillary buildings like,cattle sheds (4), storage sheds (3), garage (1), carpentary (1) and old railway wagon used as a storage.The detailed list of the affected structures and compensations to be paid is given in the table below:

No ofStructure

No ofLand Plot

Owner Description of StructuresCompensati

on Gel

Comment

1

154Shota

Chaduneli

Main Building of Restraunt; 1 storeyCapital construction of block and

concrete190110

2Wooden shed. Small woodenstructure - a small shop/kiosk

5374

3 Toilet- Block and concrete building 29915

4Ancillary building - Wooden and

plastic construction, a smallkiosk/shop

3861

5 Wooden traiding kiosk 4852

66

6 Wooden and plastic shed - kiosk 2490

7 157 Jemal Khaduri1 storey Capital construction of

block and concrete (office)121939

8156

BMG Ltd

Ancillary building (storage) –concrete, 1 storey

9935

9Ancillary building – concrete, 1

storey14686

10 82Tengiz

Khachidze2 storey residential house - Brick

and concrete building137040

Physicalrelocation

11

69Tengiz

Khachidze

Cattle shed - Wood construction 7174

12Wood building - an old small 1

storey house used currently as akitchen

13298

13 Wood construction – storage shed(requires repairs)

3282

14 86TengizKhachidze

Old wagon, metal – used as astorage shed

3318

15

68Givi

Khachidze

Residential house – 2 storey Brickand concrete building -


16 1 storey block and woodconstruction - storage

5377

17 Cattle shed - Wooden construction 21223

18 80 DavidKhachidze


44320 Summerhouse

19 106 TsiuriKhachidze



20 81 ShuraKhachidze



21 77Soslan



Old, notinhabited

house

22 88Elbert



23 71 DemuriAlkhazishvili


9011

24 66 AleksanderiKhachidze

1 storey ancillary building – woodenstructure - Carpentry

4831

25

70 AleksanderiKhachidze

2 storey residential house - Brickand concrete building

113297Physical

relocation

261 storey ancillary building - block

and wood construction - warehouse22391

27 Farm wood 15 sq.m. 3510

28 Pig cattle 1,7 sq.m. 960

29

79Revaz

Gelashvili

1 storey residential house - Blockand concrete building -


30 Block and wood construction -garage and storage

11593

31 Block and wood construction –storage shed

5180

32 Wooden construction – cattle shed 4309

33 90Gela

Gelashvili1 storey ancillary building – wooden

structure4925

1,133,986

67

9.2.2 Compensation for Business Interruption or job losses

149. One AH has income from leasing the restaurant facilities he ownes. The llessor will receivecompensation equal to 1 year net income as per provided taxation documents. The leasholder (tenant)will receive compensation equal to one year net income from the affected restraunt business.

150. 9 employees of the restaurant are permanently losing jobs and will be compensated by one timecash compensation in amount of the 1 year loss of their wages.

151. The details of business income and job losses and compensation is given in a table

Business Income Losses

PropertyOwner Shota Chaduneli

Annual Income through lease of theproperty, GEL 3600

Businessowner

Pavle Bliadze(57001000329) Net annual profit, GEL 2700

Overall Business income 6300

Employment loss

Employee ID Salary, GEL

12 monthcomp. GEL

Pavle Bliadze 57001000329 125 1500

Eter Lukunidze 57000050090 125 1500

ShorenaLabadze 57001001454 125

1500

NargiziPeranidze 57001017557 62,5 750

Aleksi Bliadze 57001001195 125 1500Mzia

Kvinikadze 57001052329 70840

Meri gogoladze 57001061437 70 840

ZurabiLabadze 57001041004 125 1500

Guram Bliadze 100 1200

TOTAL 1228 11,130

9.2.3 Compensation for Crops

152. Crop compensation will be paid to all APs in cash at full market rate. The major crop found in theproject road is cereals, vegetable, and hay/grass. The detail on crop compensation is described in Table9.4.

Table 9.4: Cost of Affected Crops


Area sq.m


sq,mTotal Crop


Maize 89 89,641 0,4 35,856.40

Beans 97 99,006 0,875 86,629.93

68

Hay 14 15,325 0,24 3,678.00

Alfalfa 0 0 0 0,00

Vegetables 14 11,732 1 11,732.00

Total 214 215,704 137,896.32

9.2.4 Compensation of Trees

153. Trees compensation varies for non-productive fruit trees and productive fruit trees. The 1 yearnon-productive fruit trees will be compensated at the price of 1 year seedling. Partially productive treeswill be compensated at aggregated cost of seedling price and fruit income calculated based onproductivity of partially productive tree and compensation years needed to grow up the same age treefrom the seedling of age startin productivity. For example, 4 years old walnut will be compensated atthe cost of the 1 year seedling plus the income of partially productive tree (for 2 years needed to growup 4 years old tree, from the 2 year seedling, when the tree starts to bring fruits). The fully productivetrees will be compensated based on price of seedling plus income of fully productive tree for the yearsneeded to grow up fully productive tree from the 1 year seedling. Tables with the calculation of treescosts are given in Table 9.5 and 9.6 below

Table 9.6: Compensation for Productive Fruit Trees

Typ

e Groupsby Age

nC

ost

for

1

seed

ling

wh

ole

sale

Mar

ket

pri

ce1

kg.,

GEL

Yea

rsto

be

com

pen

sate

d

Ave

rage

pro

du

ctiv

ity

in1

year

,kg.

An

nu

al

inco

me,

GEL

Cost for 1tree, GEL

No oftrees

Cost

1 2 3 4 5 6 7 8

Black Cherry/Sweet Cherry

nergi(<5)

5 2 5 3 6 35 15 525

bali/alubali 05.-10 5 2 5 10 20 75 13 975

10-.20 5 2 5 16 32 117 127 14859

20+ 5 2 5 10 20 75 0 0

155 16359

Wallnutnergi(<5)

10 5 5 4 20 80 54 4320

kakali 05.-10 10 5 10 15 75 535 19 10165

10-.20 10 5 10 25 125 1235 82 101270

20+ 10 5 10 30 150 1510 0 0

155 115755

Pearnergi(<5)

4 1,2 5 7 8,4 33 10 330

msxali 05.-10 4 1,2 7 20 24 122 0 0

10-.20 4 1,2 7 70 84 416 17 7072

20+ 4 1,2 7 45 54 269 0 0

27 7402

Hazelnutnergi(<5)

2 2 5 2 4 16 19 304

69

Txili 05.-10 2 2 5 5 10 37 0 0

10-.20 2 2 5 6 12 44 310 13640

20+ 2 2 5 4 8 30 0 0

329 13944

Plum/Tkemali/Wild Plum

nergi(<5)

3 0,8 5 7 5,6 23 22 506

qliavi/tyemali 05.-10 3 0,8 5 15 12 45 44 1980

10-.20 3 0,8 5 50 40 143 480 68640

20+ 3 0,8 5 25 20 73 0 0

546 71126

Applenergi(<5)

4 1 5 5 5 22 14 308

vaSli 05.-10 4 1 6 25 25 109 3 327

10-.20 4 1 6 70 70 298 42 12516

20+ 4 1 6 40 40 172 0 0

59 13151

Grapenergi(<5)

2 1,5 4 5 7,5 23 50 1150

yurZeni 05.-10 2 1,5 4 7 10,5 31 16 496

10-.20 2 1,5 4 9 13,5 40 267 10680

20+ 2 1,5 4 5 7,5 23 0 0

333 12326

Peachნერგი(<5)

6 1,5 5 4 6,0 27 0 0

atami 42282 6 1,5 5 15 22,5 85 0 0

44105 6 1,5 5 40 60,0 216 4 864

20+ 6 1,5 5 25 37,5 137 0 0

4 864

Apricotნერგი(<5)

4 1,5 5 3 4,5 27 34 918

gargari 42282 4 1,5 5 15 22,5 83 0 0

44105 4 1,5 5 40 60,0 214 0 0

20+ 4 1,5 5 25 37,5 135 0 0

34 918

Mulberryნერგი(<5)

5 1,5 5 4 6,0 26 2 52

TuTa 42282 5 1,5 5 10 15,0 58 0 0

44105 5 1,5 5 16 24,0 89 2 178

20+ 5 1,5 5 10 15,0 58 0 0

4 230

1 646 252 075

70

Total cost of 1,646 productive and nonproductive fruit trees trees is 252,075 GEL

9.2.5 Resettlement Allowances

154. There are three type of allowances being provided to the AH under this RAP. These are: (i)Severe Impact Allowance, and (ii) Allowance for vulnerable and (iii) allowances for physical relocation.

(i) The allowance for vulnerable AP is 3 months of minimum subsistence incomeat the unit rate of 326 per month per AH20 or 978 GEL for the AH

(ii) Severely affected AH will receive a severe impacts allowance equal to thecost of 2 year annual yield of crops or 3 months of minimum subsistenceincome, (whichever figure is greater) APs losing >10% of non-agriculturalincome will be given an one-time allowance set to be three month payment ofthe minimum monthly subsistence income level..

(iii) Relocation allowance amount is fixed as 300 Gel + 3 month payment of theminimum monthly subsistence for the families consisting of 5 members, whichequals to 300 + 326 x 3 = 1278 Gel

155. Details of calculations on various types of allowances are described in Table 9.7.

Table 9.7: Cost for AllowancesNo. Item Unit Unit rate (GEL) Quantity Cost (GEL)

1Severely

Affected AHsNumbers ≥ 3,912 88

287534*

2VulnerableHouseholds

Numbers 978 1514670

3Relocation

AH1,278 6 7,668

Total 309,872 Out of 68severely affected households losing their agricultural land, 5 receive compensation equal to 1 additional cost of

crop compensation and the rest 13 AHs receive 3 month subsidence minimum equal to 978 Gel, which exceeds the cropcompensation value in these 79 cases. 7 other severele affected households are those losing their jobs. They are alsoeligible for allwances equal to 3912 Gel.

9.3 RAP Management Cost

156. The Construction Supervision Contractor will conduct external monitoring. However, RU,RDMRDI will need to employ one independent monitoring agency for external monitoring of RAPimplementation for a period of 2 months (in case the CSC is not in place during updating andimplementation of the RAP. Miscellaneous expenses have been kept as a provision to cover theadministrative cost as may be incurred during implementation of the RAP. During the RAPimplementation the RD will have to pay 8,007 Gel for registration of 157 land plots. Details of the RAPimplementation management cost is given in Table 9.8

Table 9.8 Capacity Building and Management Cost

No. Item Unit QuantityUnitCost(GEL)

Total Cost(GEL)

1Cost for External Monitoring(EMA)

Months 2 5000 10,000

2Miscellaneous AdministrativeCosts inclusive internalmonitoring

Months 8 2000 16,000

3 Land registration fees 157 51 6,783Total 32,783

20 This figures is based on data of the Georgia Department of Statistics for a family of October 2015 revised according toJanuary and February 2016 data..

71

9.4 Summary LAR Cost and Flow of Funds

157. The total LAR cost calculated for the implementation of this RAP constitutes 2,897,354 GEL(USD 1,297,516). The summary LAR cost estimate is given in Table 9.9. All LAR related funds will bespent in one full year before the start of civil works construction. If the implementation of this RAPcovers two fiscals, the allocation of funds will be sought accordingly. Transport Reform andRehabilitation Centre (TRRC) is responsible for financial management of external financed projects.TRRC will get funds directly from the Ministry of Finance allocated for the project and disburse to APsfollowing requisition from RU, RDMRI.

Table 9.9: Summary Estimate of LAR Costs

No. Item Cost in GEL

A Compensation

1 Compensation for Land 749,916

2 Compensation for Structures/Buildings1,133,986

3 Compensation of Affected Businesses 6,3004 Compensation for lost wages 11,130

5 Compensation of crop137,896

6 Compensation for non-productive and productive Fruit trees 252,075

Sub Total A2,291,303

B Allowances

2 Severely AHs287534

4 Vulnerable Households14670

1 Relocation of 6 AH 7,668

Sub Total B309,872

C Support Cost for RP Implementation

1 Cost for EMA 10,0002 Miscellaneous Administrative Cost 16,000

3 Registration fees for 133 residual land plots subject for registration6783

Sub Total C32,783

Total R&R Cost (A+B+C)2,633,958

Contingency @10 % of the total LAR Cost263,396

Grand Total in Gel2,897,354

Rate of Currency exchange 2.233

Grand Total in USD1,297,516

72

9.5 Justification of Cost Estimates and Updating LAR Budget

158. Land acquisition and resettlement surveys included a valuation survey of affected land andassets. The survey consulted relevant transactions in case of land and local markets in case of building,trees and crops. In determining allowances to vulnerable households, the existing minimum salary rateshave been considered.

As for compensation to crops, the actual market price has been considered for valuationof crops.

159. The prices are, therefore, replacement value at current market cost and ensures full replacementcost to the affected land, building/structures, crops and trees. Detailed methodology followed fordetermining replace value of affected assets is given in Annex 1.

9.6 Source of Financing

160. All funds for compensation and allowances commensurate to RAP will be provided from theGovernment of Georgia’s public fund. RDMRDI will ensure the allocation of funds for compensation tobe paid for land acquisition and resettlement. RDMRDI will get the budget approved from the Ministry ofFinance and allocate in advance the funds for implementation of RAP.

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X. MONITORING AND REPORTING

10.1 Introduction

161. The main objective of implementation of RAP is to improve or at least restore the social andlivelihood resources of the APs at their pre-project level. The process of implementation should ensurethat this objective is achieved over a reasonable time with allocated resources. Therefore, monitoring ofthe process of updating RAP, its implementation and delivery of institutional and financial assistance tothe APs has been designed as an integral part of the overall functioning and management of theProject. RU of RDMRDI will ensure the execution of timely monitoring of the monitoring and evaluation(M&E) indicators (process, delivery and impact indicators) of LAR tasks. The purpose of the Monitoringand Evaluation (M&E) is to provide feedback to all stakeholders on progress made in view of a timelyand comprehensive implementation of the RAP and to identify problems as early as possible to facilitatewell-timed adjustment of implementation arrangements. The objectives are to: (i) ensure that thestandard of living of APs are restored or improved; (ii) ascertain whether activities are in progress as perschedule and the timelines are being met; (iii) assess whether the compensation, rehabilitationmeasures are sufficient; (iv) identify problems or potential issues; and (v) identify methods to rapidlymitigate problems.

10.2 Monitoring and Evaluation Indicators

162. Compliance of the RAP policy and targets in the implementation process will be monitoredagainst set indicators. These indicators and benchmarks will be judged for implementation process,outcomes and impacts..

10.3 Level of Monitoring

163. Monitoring of LAR task in the Project will be carried out at two levels. The Head of RU will carryout regular internal monitoring for the RDMRDI with inputs from LAR teams at field operation. Externalmonitoring will be commissioned by RDMRDI employing an independent external monitoring agency.External monitoring could be executed by the construction supervision consultant (CSC) in case, if CSCis available at the time of RAP implementation. The CSC will also carry out supervision and monitoringto assist RDMRDI and WB in relation with the resettlement impacts at the civil works stage.

10.4 Internal Monitoring

164. Internal monitoring will be carried out routinely by RU during implementation of the RAP. Theresults will be communicated to the LARC and WB monthly. Indicators for internal monitoring will bethose related to process, immediate outputs and impacts. This information will be collected directly fromthe RU representatives in the rayon level LAR Teams and Working Group and reported to LARC toassess the progress and results of RAP implementation, and to adjust the work program, if necessary.The monthly reports will be quarterly consolidated in the standard supervision reports to the WB.

165. The report of internal monitoring will contain: (i) accomplishment to-date, (ii) objectives attainedand not attained during the period, (iii) problems encountered, and (iv) suggested options for correctivemeasures. The internal monitoring report will primarily be prepared by the RU resettlement specialists.The international resettlement specialist with CSC will assist LARC in preparing the overall resettlementstatus in the PPR in consultation with the national resettlement specialist. However, the nationalresettlement specialists will particularly monitor the activities of LAR teams and report to LARC on amonthly basis under the guidance of the international.

10.5 External Monitoring

166. Where necessary, external monitoring will be carried out by the SSC for the project activities.Indicators for External Monitoring tasks will be carried out in two phases.

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10.5.1 Phase One.

This external Monitoring phase will be carried out in parallel with the implementation of a RAP and willbe concluded after the RAP is fully implemented by the preparation of a compliance report. Anacceptable Compliance Report will be condition to start the implementation of physical civil works for theproject.

During this phase the SSC will (i) do the investigations and define the indicators needed for phase twoactivities and ii) closely monitor the implementation of the RAPs. RAP implementation monitoring willentail the following tasks: (a) review of RAP/Information pamphlet disclosure; (b) review of action takenby the PIU to compensate the APs with particular attention to the way this action fits RAP stipulations; (c)review all compensation tallies; (d) verify whether the compensation is provided thoroughly to all APsand in the amounts defined in the RP and in the AP contracts; (e) asses the satisfaction of the APs withthe information campaign and with the compensation/rehabilitation package offered to them; (f) reviewthe legalization process and assess its effectiveness; (g) review complaints & grievances case; (h) carryout an AP satisfaction survey with a 20% sample of the APs. The SSC will prepare the ComplianceReport immediately after the completion of RAP implementation. The Compliance report will includewell-argued sections on the following:

(i) Assessment of the way the compensation has been carried out in 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;167. General assessment of RP implementation and recommendations to WB regarding the provisionof No Objection Letter to start the civil works.

10.5.2 Phase Two.

Within one year from the completion, the whole of RAP implementation will be assessed. The followingare 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;168. Level of satisfaction of APs in the post resettlement period.169.170. For this task the Supervision consultants will:

(i) Review as needed the survey indicators(ii) Assess the livelihood impact of the land acquisition/resettlement on the APs

through formal and informal surveys with the population in project areasaffected and non-affected. The EMC shall conduct a formal survey of arepresentative sample of men and women APs to determine changes thathave occurred on the APs. In parallel the EMC will also compare the situationof the APs with non- affected neighbors similar in terms of livelihood level tothe APs. Focus group discussions and other unstructured data gatheringmethods and consultation with APs, officials and community leaders will alsobe used in carrying out the evaluation to supplement the findings from theformal survey. Finally the assessment will look into potential differential

75

impact or benefit that men and women have APs experienced from theresettlement activities. The result of the surveys will serve as the end termreview report of the EMC for the Project.

(iii) Assess again satisfaction on the valuation of assets and entitlements, timingof payments, fund availability and disbursements. In the same post-RAPsurvey, the EMC shall ascertain the satisfaction of APs on the valuation ofassets, as well as, the scope and timing of assistance provided under theRAP.

(iv) Assess the long-term efficiency, effectiveness and sustainability of the landacquisition/resettlement program, drawing lessons for future resettlementpolicy formulation and planning and future RAP planning and implementation.Should the outcome of the study show that the RAP objectives have not beenattained, the EMC will recommend appropriate supplemental assistance forthe APs.

(v) Preparation of the valuation report. Prior to submission of the post-RAPreport, the EMC shall ensure that informal and formal meetings are held withthe men and women representatives from the APs, community leaders andother key officials and seek feedback on the contents/analysis in the reviewreport. Highlights of these consultations will also be attached as annex to thereport.

10.5.3 Monitoring Indicators for Task 2

171. Task 2 will be based among others on the monitoring indicators listed in table in Table 1.

Table 10.1: Monitoring Indicators for Task 2Monitoring Indicator Basis for Indicators

Basic Information onAP Households

Location Composition and structure: ages, educational and skill

levels Gender of household head Ethnic group Access to health, education, utilities, and other social

services Housing type Land and other resource ownership and utilization patterns Occupations and employment patterns Income sources and levels Agricultural production data (for rural households) Participation in neighbourhood or community groups Access to cultural sites and events Value of all asset forming entitlements and resettlement

entitlements

Benefit Monitoring

What changes have occurred in terms of patterns ofoccupation, production, and resource use compared to thepre-project situation?

What changes have occurred in income and expenditurepatterns compared to the pre-project situation?

What have been the changes in cost of living compared tothe pre-project situation?

Have APs’ incomes kept pace with these changes? What changes have taken place in key social and cultural

parameters relating to living standards?Restoration of LivingStandards

Were house compensations made free of depreciation, feesor transfer costs to the APs?

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Table 10.1: Monitoring Indicators for Task 2Monitoring Indicator Basis for Indicators

Have perceptions of community been changed? Have the AP achieved replacement of key social and

cultural elements?

Restoration ofLivelihood

Were compensation payments free of deduction fordepreciation, fees or transfer costs to the AP?

Were compensation payments sufficient to replace lostassets?

Was sufficient replacement land available of suitablestandard?

Did transfer and relocation payments cover these costs? Did income substitution allow for re-establishment of

enterprises and production? Have enterprises affected received sufficient assistance to

re-establish themselves? Do jobs provided restore pre-project income levels and

living standards?

Levels of APSatisfaction

How much does the AP know about resettlement,procedures and entitlements?

Do they know if these have been met? How do the AP assess the extent to which their own living

standards and livelihoods Have been restored? How much does the AP know about grievance and conflict

resolution procedures? How did resettlement implementers deal with unforeseen

problems?

Effectiveness ofResettlement Planning

Were the AP and their assets correctly enumerated? Were land speculators assisted? Was the time frame and budget sufficient to meet

objectives? Were entitlements too appropriate (wide or narrow)? Were vulnerable groups identified and assisted?

Other Impacts Were there unintended environmental impacts? Were there unintended impacts on employment or

incomes?

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Annex 1

Valuation Methods, Valuation of Losses and CompensationsValuation of the Cost of Buildings and Structures

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

(i) Transfer of ownership rights for the real estate property;(ii) Financial conditions;(iii) Sale conditions;(iv) Further costs related to sale;(v) Sales dynamics at the market (the sale date);(vi) Location;(vii) Physical parameters;(viii) Economic parameters;(ix) Use;(x) Existence of real estate property.

Calculation of the market prices of the land plots with a sales comparison methodThe sales comparison method was used to fix the monetary value of the affected land plots. This methodimplies comparing the object to be assessed to other objects with the market value known (i.e. the land plotin question was sold or bought).The land plots to be evaluated are located on the territory of Shuakhevi and Keda (villages: Gogiashvilebi,Dandalo, Kokotauri, Tskhromisi, Gobroneti, Abuketa, Tsoniarisi, etc.).220 kV transmission line is located in the gorge of the river Adjaristskali.The land plots to be evaluated are different with their locations, shapes, parameters, soil structure,designation and other data. This is why, in the course of evaluation, the land plots were classified in groups.Each group consists of the land plots with similar parameters (their market value is also similaraccordingly). Then, the types of the land plots of different groups were evaluated.

The following types of the land groups were identified:

Type 1 – Non-agricultural land plots located adjacent to Akhaltsikhe-Batumi motor road, 5-50 m from itand having a commercial value due to their border with the central road.

Type 2 - Non-agricultural land plots 50 m or more from Akhaltsikhe-Batumi motor road, with no borderwith Akhaltsikhe-Batumi road.

Type 3 – Agricultural land plots located adjacent to Akhaltsikhe-Batumi motor road, 5-50 m from it.

Type 4 – Agricultural land plots located not so near Akhaltsikhe-Batumi motor road, but 50 m or morefrom it, with no border with Akhaltsikhe-Batumi road and used as homestead lands.

Type 5 – Agricultural land plots located not so near Akhaltsikhe-Batumi motor road, but 50 m or morefrom it, with no border with Akhaltsikhe-Batumi road, with perennial agricultural crops growing on them,showing the trace of cultivation and people grow agricultural crops on them.Type 6 – Agricultural, non-cultivation land plots not belonging to Type 5, not used to grow agriculturalcrops, with their surface inclined and/or steep. Such plots of land are apparently used as pastures, or togrow perennial plantings, which are not agricultural crops.In order to evaluate the land plots, the relevant market segment and values under the agreements andcontracts concluded for similar real estate on the territories of the above-said villages and their adjacentvillages must be considered.Aiming at fixing the market values in the course of evaluation, we obtained the data about similar propertiesbased on the present market offers and data of the agreements provided by the National Agency of the

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Public Registry (NAPR) (the sources of information are referred to in the table below) given in Table A1. Inaddition, it should be noted that NAPR has too scarce information about selling and buying the land plots inShuakhevi and Keda regions, as free land plots, due to the peculiar relief (sloping, steep) in the regions arealmost absent, and importantly, the land plots in the villages are distributed among the old families livingthere and are given to the future generations by heritage or as gifts. The analogics to fix the market pricesof the lands were obtained based on the agreements concluded for the compensation amounts paid for theland plots expropriated with the similar purpose. The information received as a result of the oral questioningof the population was also taken into account.

Table A1

Area,

sq.m.

Land Code

DesignationAddress/loc

ation

Deal price/unit price,

Gel

Date ofthe Deal

Source ofinformation

149969.03.58.09

6

Agricultural

Khashuri,Vil. Osiauri

500 / 0,3317/07/20

15

www.nev.saqme.ge

correspondence N23206222.09.2015

332469.03.61,09

0

Agricultural


1500 /0,45

03/07/2015

www.nev.saqme.gecorrespondence N23206222.09.2015

401069.04.65.04

6

AgriculturalKhashuri,

Surami, vil.Lubrumi

1000 /0,25

21/01/2015


20769.04.63.01

8

AgriculturalKhashuri,

Surami, vil.Kakaltkhevi

1000 /4.83

07/08/2015


351569.03.61.09

1

Agricultural


1500 /0,43

25/08/2015


212169.03.57.01

7

Agricultural


1000 /0,47

19/08/2015


Table A2. Corrections to the land plots to be evaluated located in the buffer zone of the high-voltagepower transmission line (Gel, unit: 1.00 sq.m.)

Comparison element AnalogueNo. 1

AnalogueNo. 2

AnalogueNo. 3

AnalogueNo. 4

AnalogueNo. 5

AnalogueNo. 6

Price of 1 sq.m. (Gel) 0,33 0,45 0,25 4,83 0,43 0,47

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Selling costs The one of abuyer

The one of abuyer

The one ofa buyer

The one ofa buyer

The one ofa buyer

The one ofa buyer

Correction coefficient 1,00 1,00 1,00 1,00 1,00 1,00

Corrected price of 1sq.m.

0,33 0,45 0,25 4,83 0,43 0,47

Selling period Identic Identic January 2015 Identic Identic Identic

Correction coefficient1,00 1,00 1,30 1,00 1,00 1,00


0,33 0,45 0,33 4,83 0,43 0,47

Location Identic Identic Much better Identic Identic Identic



0,33 0,45 0,65 4,83 0,43 0,47

Communications andimprovements

Identic Identic Identic Identic Identic Identic



0,33 0,45 0,65 4,83 0,43 0,47

Physical properties Better Better Better Better Better Better

Correction coefficient 2,00 2,00 2,00 2,00 2,00 2,00


0,66 0,90 1,30 9,66 0,86 0,94

Partial and Compulsorypurchase

Better Better Better Better Better Better

Correction 1,30 1,30 1,30 1,30 1,30 1,30


0,86 1,17 1,69 12,56 1,12 1,22

Correction comment:- The first correction considers the location of the land plots (distance from a motor road, settled area,

etc.).- The second correction is done according to the physical properties of the plots (area, parameters,

structure, etc.).

Fixing the land compensation valueAfter considering the analogues and studying the data and corrected prices, the value of the unit land wasfixed by calculating the mean weighted value. When agreeing the results of the corrected prices, theanalogues being most comparative to the objects to be evaluated and with least corrections were given thehighest specific weight.The market value of the unit land to be evaluated (by using the weighted value) was calculated by us withthe following formula:

n

i

n

i

RRiPiVwa1 1

* /

WhereVwa - is the mean weighted value;

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Pi – is the corrected price of each analogue;∑ R – is the sum of the rated weights of the corrected prices of the analogues of comparison;Ri - is the rated weight of the corrected price of each object of comparison.Consequently, the calculation of the market value of the object to be evaluated by using the mean weightedvalue is given in Tables A3 and A4.

Table A3

Description Pi Ri Vi

Price of the corrected analogue No. 1 0,86 2,00 0,1716






∑ R 10,00

Vwa 2,9198

Corrected market value of 1 sq.m. land tobe evaluated, Gel

3

Note: the value of the land plots was fixed by considering the present market demand and supply andfactors influencing the value (designation, use, distance from recreation and/or entertainment zone,distance from motor roads/settled areas/communications, etc.). For this purpose, the data of the real estatemarket of Georgia was studied based on the market offers and data provided by NAPR. The basic pricewas fixed in comparison to an agricultural cultivation land plot. The given data were used to fix the ratiobetween the calculated prices and the prices of the other plots.

Table A4

Calculation of the compensation amounts of the land plots for different types and functions

Type Designation of the plot Basic valueof 1 sq.m.

land plot, Gel

Correctioncoefficient

Value of 1` sq.m.land plot - purchase

I Agricultural or non-agricultural land plotslocated far from villageand/or central road

3

1 3

II Land plots located nearvillage and/or not far frommain road

1.3 4,5

III Agricultural and non-agricultural land plotslocated near to the village(in the perspectivedevelopment borders)

2 6

IV Agricultural and non-agricultural land plotslocated within the village

3 9

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(used as living land orcommercial land)

Note:1. The Table shows the land plots only with the designation and use affected by the Project.2. The Table gives the calculation of the compensation values of all land plots by using the correction

coefficients multiplied by the basic compensation value of 1 sq.m. of land.3. The correction coefficients are fixed based on the study of the market data and consider the present

demand and supply and designation, use, distance from the sea/transport infrastructure andcommunications).

4. All gained results are rounded.As for the single compensation for servitude of 1 sqm. of land (Letter No. 4527/07 of JSC Georgian StateElectrosystem of December 02, 2014), following the international evaluation standards, it was fixed byusing the ratio between the market value of each category and inflicted damage/not received profit (Table5).

Table A5

Type Designation of the plotCompensation

value of 1sq.m. landplot, Gel

I Agricultural or non-agricultural land plotslocated far from village and/or central road

3

II Land plots located near village and/or not farfrom main road

4,5

III Agricultural and non-agricultural land plotslocated near to the village (in the perspectivedevelopment borders)

6

IV Agricultural and non-agricultural land plotslocated within the village (used as living land orcommercial land)

9

2. Buildings Valuation. Buildings have been valued at replacement cost based on thedirect and indirect costs at market value necessary for the construction of a comparable buildingi.e. what construction of a building of similar parameters would cost today. No deductions weremade for amortization. The parameters for calculating the direct and indirect costs are thefollowing as applicable to individual cases.

a. Direct costs include:(i) Salaries of workers;(ii) Purchase of construction materials;(iii) Preparatory expenses;(iv) Rent or purchase of equipment;(v) Profit and overhead expenses of the constructor;(vi) Expenses incurred to ensure safety measures during the

construction/repair;(vii) The cost of arranging temporary structures;(viii) Temporary communications (electricity, water, gas supply etc.);(ix) Warehouse costs;(x) Transportation costs;(xi) Other costs

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b Indirect costs include:(i) Cost of professional services:

1. Compensation of the architect/designer;2. Compensation for engineering services;3. Legal expenses;4. Compensation for valuator’s services;5. Other expenses

(ii) Expenses incurred to receive permits;(iii) Insurance costs;(iv) Financing %;(v) Guarantee necessary to secure the contract implementation by the

contractor building the new building;(vi) Other expenses

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3. Compensations for Annual Crops. This item has been valued at market ha, area ofaffected crops and current gross market values of the crop. The details are given in a table A 6.

TableA6 Compensation for the Annual Crops

Crops UnitProductivity

per 1 ha

Market price ofunit of crops,GEL

CropCompensationPrice (GEL) per1 ha

CropCompensationPrice (GEL) per1 sq.m

MaizeKg

5000 0.84000 0.4

Hay K kg 3000 0,82400 0.24

Alfalfa Bunch 800 5.04000 0.4

Beans kg 2500 3,58750 0.875

Vegetables - - -10000 1

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Annex 2

LEGALIZATION OF PRIVATE OWNERSHIP OF LAND IN GEORGIA

A. Introduction

1. Correct and accurate initial registration of ownership rights is the necessary condition forundertaking voluntary acquisition or mandatory expropriation of real property. Pursuant to article 312 ofthe Civil Code of Georgia the records at the Public Registry are considered accurate until theirinaccuracy is not proved. Therefore, throughout the presumption of the article 312 of the Civil Code ofGeorgia the inaccurate data available at the Public Registry shall be corrected with precise data.Therefore, landowners shall carry out precise demarcation and legalization of his/her land parcel(s)through proper procedure. The land owners have to apply to the Public Registry with necessarydocuments as proof of the ownership and description of land, Cadastral Map with precise survey dataand documents verifying ownership right (Receive-Delivery Act, or Registration Certificate, or the extractfrom the land distribution list issued by the local self-government body, or the statement on thelandowner’s registration as a tax payer in 1992-2001 years).

2. After the disintegration of the Soviet Union, all land in Georgia came under the state ownership.The Government of Georgia (GOG) started privatization of land in 2004 as an essential part of theeconomic reform in the country. The GOG applies various methods to privatize state-owned propertyincluding competitive bidding, auctions, lease, redemption and direct sale. However, lands under privateoccupation with traditional rights are being legalized through registration with National Agency for PublicRegistry (NAPR) of the Ministry of Justice. The pattern of privately owned lands in Georgia isdetermined by allocation of land plots after the independence from Soviet system. In the Soviet timesthe agricultural lands were used by collective farms financed by the State. During the privatizationprocess the lands of collective farms were divided into small parcels and distributed among householdswho no longer receive agricultural subsidy from the State.

B. Status on Registration on Pure Land and Reality in Present Situation

3. The registration for pure land (land parcel without having structure) has not been -stopped.However, in practice, most of the owners are not initiating any new land registration for the pure landbecause; there is no requirement for them for new registration as buying and selling of pure land is notso prevalent in present situation. Also, these owners are using their respective plots based on themutual understanding among the neighbours.

4. In reality, some of these land parcels and owners can still be converted into legal ownersprovided the initiation for land registration for pure land is taken by the owners. These cases under thecurrent situation are considered as Legalizable Owners. Currently, there is no problem associated withurban and residential plots. Also, there is some cases pending in the court related to land registration,which needs to be addressed. The current ownership of land can be broadly categorized as follows:

(i) Legal Owner/ Title Holder: Owners and users of land having their title registered in thePublic Registry.

(ii) Legalizable Owner:a. Rightful Owners – the owners with old document proof although not having registration in

the Public Registry under the Laws of Georgia on Privatization of State-owned AgriculturalLand, (July 8, 2005) and The Law of Georgia on Public Register (No820 –Iis; December 19of 2008); (the current legislation).

b. Non-rightful owners - unauthorised land users having right to legalize landownership rightsprovided by the current legislation. The legalization of landownership rights, under thecurrent legislation is allowed for following cases:

- The state owned agricultural or non-agricultural land plot with residential house or supportingstructures on it - occupied by the physical or legal person without permission before thecurrent law came in force in 2007.

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- Land plot occupied by person without permission is adjacent to the land parcel rightfullyowned or used by this person, taking into account that the illegally occupied land parcelshould be of less area than the legally owned adjacent land parcel.

However, there are certain restrictions on privatization of land21 (attachment-2).(iii) Non-Legalizable Landowners: Illegal/Squatters having no right to legalize landownership

rights under the current legislation. Persons having no document of possessing the land inconcern before the enactment of the current law in 2007 are not legalizable.

5. Legalisation of Rightful Landownership rights is executed directly by Rayon Registration Officesof NAPR. The applicants should submit old documents profing the ownership rights and precisecadastral maps of the land plot and structures on it.

6. Legalisation of Non-rightful Landownership rights is authorized by Property RecognitionCommission (in each Rayon) through reviewing the application documents, evaluating eligibility againstthe restriction lists given in the law and local landuse development plans. In case of positive decisionand upon payment by the applicant of relevant amount of money to a special account, if applicable, theCommission issues certificate on ownership right. Based on that certificate the Rayon RegistrationOffice of NAPR will register the ownership rights on land plot and structures.

C. National Survey7. In 2003-2004, USAID, along with some International Donors carried out a national level survey ofland all over Georgia. These donors started the mapping of land for whole of Georgia. The mapping wasdone through an independent survey by physical verification of the land parcels and consultation withthe owners. The positive aspect of the USAID survey was that it recognized the plots. However, theownership details and the parcel boundary were not demarcated on the ground by the survey. Also, thedetails of ownership were not updated because most of the people do not initiate any registration forpure land. Therefore, there is a difference between the USAID survey and the map exiting during theprivatization process (Rayon Map/Archives) regarding the issues related to the exact ownership,boundary of each plot and its due recognition.

D. Land Acquisition and Resettlement Surveys and Documentation for the Project

8. As the land acquisition and resettlement (LAR) activities at the feasibility study (FS) level werebased on tentative alignments and existing imprecise cadastral maps, and since there was no detailestimate of losses and ownership at FS, fresh land acquisition and resettlement surveys have beenbeing carried out through detail measurement survey, valuation survey, census survey andsocioeconomic survey. The road alignment as per final engineering design is being superimposed onthe updated cadastral map of Registered land plots obtained from Rayon NAPR and aerial photo(orthophoto) of concerned area. Each of the affected Registered land plots in the project right of way arebeing identified along with its dimensions on the orthophoto. The affected plots are being listed up andcadastral details collected from Rayon NAPR, and local government offices as applicable.

9. Based on this, the survey team proceeded to the sites for field survey which includedidentification of each plot and verification of the details shown in the National Survey Map (NationalCadastre Map) and the reality on the ground. The verification survey process includes title searchingthrough review of available documents and discussions with the owners about land parcel boundary and

21 According to the Law of Georgia On Privatization of Agricultural Land Existing in State Ownership (Article 2, Clause 3), thefollowing categories of State-owned lands are not subject to privatization: (a) Pasturelands other than those leased outbefore the enactment of this law which under the act issued by the competent state or local government (self-governmentauthority) are duly allotted to the buildings and premises located thereon which are the private property of individuals or legalentities or the property of the state; (b) Cattle transfer routes; (c) The first zone (zone of strict regime) in sanitary protectionarea around water supply units; (d) Lands of forest funds, which are used for agricultural purposes; (e) Recreational lands; (f)Lands occupied with historical, cultural, natural and cult-religious monuments; (g) Lands of protected territories; (h)Agricultural lands that are used by the Budget-funded institutions and legal persons of public law in form of usufruct. Thelands indicated in b, c, d and e may be privatized only if significant projects are implemented, on which government ofGeorgia, based on the suggestion of the Ministry of Economic Development of Georgia, shall take special decision. At thesame time the land indicated in c may be privatized if the conditions of sanitary protection are met. (26.10.2007).

86

further discussion with the local government, the representative of the NAPR (local archives arecurrently transferred to NAPR rayon offices) for its cross verification. Based on these methods finaldetails of each parcel and ownership will be confirmed. This will help to identify the legal owners, thelegalizable owners (rightful and non-rightful) and the illegal occupants of state owned land. The list ofvarious categories of ownership will be recorded with the help of local government.

10. The FS noted that the some of the owners of affected land parcels have the land documents (olddocuments) as proof of ownership obtained during the post soviet period. These land owners did notRegister their land parcels in the rayon level registration office as it was not mandatory for them. Asgeneral estimation registered land owners in Georgia constitute 10-15% of all the legalizable pool ofland owners/users.

E. Process for Registration of Legalizable Owners

11. An initial level of discussions were initiated during the Census Survey by the FS consultant withthe stakeholders, including the affected people, Property Recognition Commission of Kareli Rayon andthe rayon level Registration Offices of NAPR. The detail design consultant (the Consultant) has checkedwith relevant agencies and local experts for the land registration process in Georgia, particularly inKareli Rayon. This also includes the methods on how to conduct registration of un-registered land priorto disbursement of compensation to the affected people. The affected people will be made aware aboutthe situation, the process and the tasks to be done by them for registration of land parcels. It is notedthat coordination and combined efforts are required by the APs, the consultant and all the relevantgovernment agencies.

H.1 Registration of Rightful Owners

12. Recognition of ownership rights in relation with the rightfully owned/used land plot is executedthrough registration of ownership right directly in the Public Registry. For that purpose, the applicant hasto submit:

(i) Documents confirming rightful ownership of the land plot (annex 3).(ii) Precise cadastral maps of the land plot.(iii) Document confirming payment of the fee for the property recognition (51 Gel).(iv) Identification documents of the applicant.

13. The process and procedure for registration of Rightful Owners needs complete the stepsdescribed as follows:

(i) Step 1: Preparation of fresh and precise cadastral map by the owners through privateagencies. The map will include all the dimensions of plots and geometrical details. Thecost of preparation of map ranges from 0.06 GEL to 0.10 GEL per sqm of land to berecognized. The duration for preparation of map will be approximately a week time.However, within the project frame, the consultant will prepare precise cadastral maps forthe affected land plots and these maps along with required land descriptions will be givento the legalizable and other land owners free of charge.

(ii) Step 2: In case if the owner does not have available ownership proving documentation(annex-3) or in case there is any doubt regarding the plot, the owner has to apply to thelocal community level self-government (Sakrebulo and Gamgeoba) and local RayoonNAPR Office (where Archives are kept) for the proof and cross verification of the landdetails.

(iii) Step 3: after the verification from NAPR rayon Office, the owners will take theendorsement from the community municipal office (Gamgeoba)..

(iv) Step 4: Following the authorization from Gamgebeli the owners will approach to theRayon level Registration Office of the NAPR. The owners will provide all the above proofto the registration office. The registration office will verify the completeness of all requiredapplication documents. The owners have to submit both the soft copy and hard copy ofthe plot maps along with its coordinates for record in the Public Registry office. Theregistration process will take 4 working days in normal situation and the property

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recognition fee will be 51 GEL per registration. In case of urgency, the owners have topay 150 GEL to get the registration done in one working day and 200 GEL, if theregistration needs to be done immediately. However, the registration office for affectedlegalizable owners will not charge the urgency cost and will be able to complete eachcase in maximum 6 days. after the finalization of registration, the Public Registry officewill compile the land records and will update the cadastral details. The updated detailswill be sent to the central Public Registry for centralized record.

(v) In case, there remains further dispute related to ownership, the case may be referred tothe court. The project authority may estimate the price of that particular land and maydeposit the amount in the State Budget allocated for the Project.. The payment to the realowner will be executed from the State Budget according to the court decision uponconfirmation by the Roads Department as RAP implementing agency. The case will beresolved in the Rayon Court.

H.2 Registration of Non-Rightful Owners

14. For recognition of the ownership rights on non-rightfully owned land plot the owner/user shouldsubmit to Property Recognition Commission application letter through the Office of Sakrebulo with thefollowing supplementary documentation:

(i) Document confirming the fact of non-rightful ownership/use of the land plot (see annex 3)or attestation of witness (neighbours etc.).

(ii) Precise cadastral maps of the land plot(iii) Information needed for determination of the fee for property recognition(iv) Copies of the identification documents of the applicant

15. The process and procedure for registration of Non-Rightful Owners needs the following steps asdescribed below:

(i) Step1: Preparation of fresh and precise cadastral map by the owners through privateagencies. The map will include all the dimensions of plots and geometrical details. Thecost of preparation of map ranges from 0.06 GEL to 0.10 GEL per sqm of land to berecognized. The duration for preparation of map will be approximately a week time.However, within the project frame, the consultant will prepare precise cadastral maps forthe affected land plots and these maps along with required land descriptions will be givento the legalizable and other land owners free of charge.

(ii) Step 2: The map and its details will be authorized and the land usage pattern will beverified by the neigbours. The community local administration (Gamgeoba) may alsocertify the authorization.

(iii) Step 3: Following the authorization from the neighbours, the same has to be notarized.Cost of notarian confirmation of neighbours witness will be 15 GEL for each case.

(iv) Step 4: The land owner/user will approach to the Property Recognition Commissionthrough Office of Sakrebulo with a package of documents confirming eligibility forlegalization of the land plot according to the current legislation. This includes ownershipdocuments (see annex-3) related to the adjacent land plots owned by the applicantrightfully.

(v) Step 5: In case if, the owner does not have available documentation proving ownershiprights on the adjacent land plot or in case there is any doubt regarding the plot, the ownerwill apply to the local NAPR Archives for the proof and cross verification of the landdetails.

(vi) Step 6: after the verification, the Office of Sakrebulo will endorse the application andauthorize the case for recognition.

(vii) Step 7: Following the authorization from Sakrebulo, the owners will approach to theProperty Recognition Commission. The owners will provide all the above proof to theCommission. The Commission will verify the documents, make physical verification andorganize an open disclosure meeting on site with prior notice to the concernedcommunity peoples. If the documents are clear and the land is free from any dispute fromanybody, then the Commission will notify the applicant to deposite payment for the land

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(if applicable). after payment, or if the payment is not applicable, the commission willissue certificate on ownership right to the owners.

(viii) Step 8: Based on the above steps, the owners will go to the Public Registry at theirrespective rayon for registration. The owners have to submit both the soft copy and hardcopy of the plot maps along with its coordinates. The registration process will take 4working days in normal situation and the property recognition fee will be 51 GEL perregistration. In case of urgency, the owners have to pay 150 GEL to get the registrationdone in one working day and 200 GEL, if the registration needs to be done immediately.However, the registration office for affected legalizable owners will not charge theurgency cost and will be able to complete each case in maximum 6 days. after thefinalization of registration, the Public Registry office will compile the land records and willupdate the cadastral details. The updated details will be sent to the central PublicRegistry for centralized record.

(ix) In case, there remains further dispute related to ownership, the case may be referred tothe court. The project authority may estimate the price of that particular land and maydeposit the amount in the State Budget allocated for the Project.. The payment to the realowner will be executed from the State Budget according to the court decision uponconfirmation by the Road Department as RAP implementing agency.

F. Actions at Detail Design

16. The most important issue for timely acquisition of land is the coordination between the RoadsDepartment and the respective rayon and municipality level administration (, Rayon and municipalGamgeoba and PRC). These issues have been identified and brought to the notice of concernedstakeholders by the feasibility study consultant, as well as DD Consultant, through consultation andreview of existing process of privatization. The Consultant is in the process of seeking cooperation fromthe concerned registration services and local government offices. Services of an experienced surveyand audit agency have been being utilized to identify the current owners (users) of affected land parcelsas per final engineering design of the road.

17. All the legalizable owners (rightful and non-rightful) are being identified through extensive titlesearch. Fresh and precise maps of land parcels (with standard coordinates) and geometric details willbe provided to the legalizable owners in CD-ROM and printed copies. A generic instruction leaflet hasbeen distributed to the affected persons on the process of legalization of legalizable land parcels. Thesurvey agency is also counselling the AP persons on the process and its urgency for timely receipt ofcompensation for their acquired land. All legalizable owners will be provided with the detailed cadastralmaps and case-specific instructions on further steps for legalisation.

18. The registration wil be completed for the legalizable owners during the implementation of RAPand prior to the disbursement of compensation. The cost involved in the registration process will bereimbursed from the Project during RAP preparation and implementation. The affected legalizableowners have to initiate the land registration at their own cost in the beginning with such assurance fromthe Roads Department. The above activities are part of Pre- Disbursement of Compensation.

19. Once the payment of compensation is complete for the affected land/assets, the acquired landwill be transferred (Registered) in the name of Roads Department and the remaining portion will belongto the affected owners. This registration is basically the change of ownership after the acquisition.However, if the road alignment divides the plot into many parts then each of the remaining part need tobe remapped and needs to be re-Registered. This will clearly demarcate the acquired land as theproperty of RD and the remaining belongs to the affected owners.

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Annex 3INFORMATION LEAFLET

LAND ACQUISITION AND RESETTLEMENT POLICYPROJECT: RUISI - RIKOTI SECTION OF E-60 HIGHWAY

Information for APs

A. Introduction

The Government of Georgia has received a loan from the International Bank for Reconstructionand Development (IBRD or BANK) toward the cost of the Fourth East-West Highway CorridorImprovement Project (EWHCIP), under the on-going East-West Highway ImprovementProgram being implemented by the Government of Georgia to upgrade the E-60 Highway. TheRoads Department of the Ministry of Regional Development and Infrastructure of Georgia(RDMRDI or Client) is the Executing Agency for the Project.

Main objective of the assignment is to design a new optimal 4-lane highway with the preferredtechnically safe and economic solution of the road section between Zemo Osiauri andChumateleti on the basis of a thorough assessment of technical, environmental, social andeconomic analysis and appraisal. Implementation of this project is cofinanced by World Bank(WB) and European Investment Bank (EIB). The entire road section is subdivided in two lots:Section 1 – km0+000 km5+800 from v. Zemo-Osiauri to v. Kakalatkhevi will be financed byEIB and Section 2 – km5+800 East Portal of Rikoti Tunnel will be financed by WB. Accordingly,two separate packages of the detailed design documents will be elaborated including twoseparate RAPs for each subsection. The WB OP 4.12 on Involuntary Resettlement is acceptedby parties as a reference document for preparing respective RAPs.

Present RAP covers the 8.283km length Section 2 – km5+800 East Portal of Rikoti Tunneland is located within the Khashuri Rayon. The total number of affected land plots is 164 and totalarea in sq. meters 317,965. In terms of tenure the affected land plots are distributed inaccordance with the following legal categories:

- Category 1. Titled private agricultural land plots with valid registration. No one of the affected land plothas valid registration.- Category 2. 53 titled private land plots of total area 52,786sq.m are registered with mistakes incadastral drawings. These land plots, attributed to category 2, have no legal problems with finalregistration, but only technical correction of drawings is required.- Category 3. 65 land plots of 77,779 sq.m non titled, but legalizable according to current legislationthrough 1 stage registration in NAPR. Related right establishing documents are available in Archives. -Category 4. State Owned land plots illegally occupied by private users (squatters). In this sub-sectionof the road we do not have any land plots occupied by squatters.- Category 5. 46 State owned land plots of 187,400 sqm not used by private users. Most of these landplots belong to the existing road infrastructure and the rest part constitutes adjacent wind belt zone.Category 4 and 5 land parcels are not subject for compensation. There are no public land plots in theaffected area used by leaseholders.

172. Given the magnitude of impacts (there are 102 AHs in total (333 PAPs), out of which 88 areseverely affected, 15 are vulnerable AHs (49 PAPs), and 6 AHs (20 PAPs) physically relocated), theproject has been atributed to category A. The project location map is shown in Figure 1.

Table E.1 Summary Impact on Land Acquisition and ResettlementNo. Impacts Unit



4 Category 2. Private /Improperly Registered (Requires re-registration No. 53

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according to new cadastral maps sq.m 52,786




No. 46Sqm 187,400



sq.m 66 ,396


No. 45

sq.m 42, 129


No. 22

sq.m 19, 295


No. 3

sq.m 2,745



No. 46sq.m 187,400





Summer house No 1








registration)No.


NAPR)No.

5438 AHs losing non-legalizable land plots No 039 AH losing agricultural land plots No 4240 AH losing agricultural land plots considered as reserve for village development 4241 AH losing agricultural land plots used as residential No 1842 AH with non-agricultural (commercial) land plots No. 3

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43 AHs losing businesses No 244 AH losing Jobs No 7*45 AH losing crops 9446 AH losing trees 3247 Total AH 102**48 Total Affected Persons No

333Out of 7 AHs losing jobs, 2 AHs lose permanent wages of 2 persons working in the affected restaurant.95 AHs are affected directly as they lose land plots (some of them lose land plots of different categories) and the 7 AHs are losingoperating business and jobs.

The project impact extends to APs comprising 53.6% male and 46.4% females: 182 male and 157females. Further, 6 of the 102 AHs are headed by women. Special attention will be given to the impactof resettlement on women and other vulnerable groups during monitoring and evaluation of the RAP.The project will have a positive impact on gender, and civil works contracts will include provisions toencourage employment of women during implementation. Additionally, women headed households havebeen considered as vulnerable and special assistance was provided in the RAP entitlements.

Tasks under the Project will be implemented according to a compensation eligibility and entitlementsframework in line with both Georgia laws and regulation and WB OP 4.12 Policy. The Entitlement Matrixis prepared based on provisions of Resettlement Policy Frameworks developed in May 2015 for the WBfinanced East-West Highway Corridor Improvement Project. A summary entitlements matrix is includedin Table E-2.Type of Impact Application Definition of PAP Compensation EntitlementsPermanent loss ofagricultural land















Structures

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Type of Impact Application Definition of PAP Compensation EntitlementsResidential house Project affected

residentialdwellings subjectto partial/fulldemolition





In addition, Livelihood Restoration initiatives will beprovided to PAPs that may face deterioration oflivelihood through indirect impact of proposed roadproject. (e.g. project impact is extended only onresidential dwelling subject to full cashcompensation at replacement costs and additionalone-time allowances to transport salvaged materialsand personal belongings. However, other incomegenerating assets (agricultural land/privatecommercial facilities) may remain outside of projectimpact; correspondingly these assets may not beincluded in the suggested compensation package.PAPs after moving and settling down to a newlocation may at least temporarily lose income due tolack of access (increased travel time, complicatedaccessibility) to the above mentioned incomegenerating assets not affected by the proposedproject.




Commercialstructure




Tenant of commercialfacility




22 If there are cases where the tenant/renter has paid rent in advance for a longer period of time, the landlord willbe requested to reimburse the money to the tenant/renter for the corresponding period if adequate evidence isavailable.

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Type of Impact Application Definition of PAP Compensation EntitlementsAnnual Crops Crops affected All PAPs (including

squatters)Crop compensation in cash at market rate by defaultat gross crop value of expected harvest for 1 year.Compensation for this item will be provided even incase if the crops were harvested.







No cash compensation will be issued for perennialsnot bearing fruits.PAPs will be eligible to dispose logged treesthemselves. However, a cash amount will beallocated per each affected non-fruit bearing tree toallow the PAP to purchase saplings and plant themon the remaining portion or on a newly allocatedreplacement land parcel.Construction company ensures free logging anddelivery of timber to the residence of PAPs.

Income loss

BusinessEmployment











CommunityResources


VulnerablePAPs

PAPs below povertyline; disabled people;pensioners; widows;


23 In some cases, the PAPs may be reimbursed transaction related costs they incurred for road project purposes (e.g. VAT,Income Tax, Court/Notary fees, Court costs.24 The amount of minimum monthly subsistence income level for the family of five members will be obtained from the

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Type of Impact Application Definition of PAP Compensation EntitlementsFemale headedhouseholds;impoverished; IDPs;Refugees.








WB is the funding agency and RDMRDI is the Implementing Agency (IA) of the Project. RDMRDI hasthe lead responsibility for road construction, as well as implementation of this RAP through theResettlement Unit (RU) under the Roads Development and Resettlement Division in RDMRDI. A LandAcquisition and Resettlement (LAR) Commission (LARC) will be assisting RU in all LAR activities andRU will be represented at the field by a Working Group comprising the legal, economics and engineeringexpertise from other departments of RDMRDI. In addition, RU will be assisted by LAR Team in therayon level involving also the local self-government bodies. Transport Reform and Rehabilitation Centre(TRRC) has been formed as an independent body for financial management of World Bank financedprojects. In addition, a number of other government departments will play an instrumental in theupdating and implementation of RAP. The National Agency of Public Registry (NAPR) within the Ministryof Justice will be assisting the Project through registration of land ownership and its transfer throughpurchase agreement from landowners to the RDMRDI. The local government at Rayon and village levelwill also be involved.

Cost for Land Acquisition

official website of the Department of Statistics for the moment of specific RAP preparation. For October 2015 this value isequal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 is estimated as 325.2 GEL. Thus the figure326 GEEL has been adopted as payment rate for this project25 The amount of minimum monthly subsistence income level for the family of five members will be obtained from theofficial website of the Department of Statistics for the moment of specific RAP preparation. For October 2015 this value isequal to 326 Gel. The value for January 2016 was 327 Gel and for February 2016 is estimated as 325.2 GEL. Thus the figure326 GEEL has been adopted as payment rate for this project.

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Categories by Land Use and Costs Plots No. Area (sqm)Cost per 1

sqm(Gel)

CompensationCostGel)

Compensable land

Type 1. The land plots of agricultural status,located close to villages and used for agriculturalneeds

48 66 396 4.5 298,782

Type 2. The land plots of agricultural status,located t within the borders of villages andsettlements. These land plots are considered asa reserve for further development of villages andhouseholds living in villages and can be used forconstructing new residential buildings

45 42 129 6 .0 252,774

Type 3. The land plots of agricultural status,used as residential land

22 19 295 9 173,655

Type 4. The land plots of non-agricultural status,used as residential or commercial land

3 2745 9 247,05

TOTAL 118 130,565 749,916

Cost of Affected Crops


Area sq.m


sq,mTotal Crop


Maize 89 89,641 0,4 35,856.40

Beans 97 99,041 0,875 86,660.88

Hay 14 15,325 0,24 3,678.00

Alfalfa 0 0 0 0,00

Vegetables 14 11,767 1 11,767.00

Total 214 215,774 137,962.28

Payment of compensation and cash allowances for project will be completed by end of August 2016. Allactivities related to the land acquisition and resettlement have been scheduled to ensure thatcompensation is paid prior to displacement and commencement of civil works. Public consultation,internal monitoring and grievance redress is being undertaken intermittently throughout the projectduration. The resettlement cost estimate under this RAP is 2,897,354 GEL (USD 1,297,516).

Land acquisition and resettlement tasks under the project will be subject to monitoring. Monitoring is theresponsibility of RDMRDI. Internal monitoring is to be carried out routinely by RU/RDMRDI. The resultswill be communicated to the WB through the quarterly project implementation reports. Externalmonitoring will be carried out on a regular basis, and its results communicated to RU/RDMRDI andFinancing WB through quarterly reports. The RDMRDI (through external help) will carry out a post-implementation evaluation of the RAP about a year after completion of its implementation.

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E. Complaints and Grievance Redress Mechanism9. A grievance mechanism will be available to allow an AP to appeal any disagreeable decision,practice or activity arising from land or other assets compensation. A Grievance Redress Committee(GRC) will be established community level in each local Gamgeoba to solve grievances informallythrough community participation. The GRCs will include representatives from RDMRDI, localGamgeoba, APs, women APs (if any), and local NGOs. The grievance resolution process is detailedbelow.

1. Stage 1 – The member secretary of GRCs and Rayon level LAR Team will be regularly availableand accessible for APs to address concerns and grievances. The APs shall be informed of thedetails of contact persons to whom complaints were submitted. The contractor Rtsmunebuli andSakrebulo shall be warned that all compaints they may receive from APs shall be immediatelysubmitted to the contact persons of GRC (coordinator and secretary), which will then organize ameeting and informally review the complaint with the aggrieved AP. If the AP is not satisfied, theGRC shall assist him/her in lodging an official compalint to the relevant body (i.e. RoadsDepartment). The complaints and grievances from the APs will be addressed through the processdescribed below in Table 7.1

Table 2: Grievance Resolution Process

Steps Action level ProcessStep 1 Negotiations with APs The complaint is informally reviewed by the GRC, which takes all

necessary measures to resolve the dispute amicably.

Step 2 GRC Resolution If the grievance is not solved during the negotiations, the GRC willassist the aggrieved APs to formally lodge the grievances to theGRC.The aggrieved APs shall submit their complaints to the GRC within 1week after completion of the negotiations at the village level. Theaggrieved AP shall produce documents supporting his/her claim. TheGRC member secretary will review the complaint and prepare aCase File for GRC hearing and resolution. A formal hearing will beheld with the GRC at a date fixed by the GRC member secretary inconsultation with Convenor and the aggrieved APs.On the date of hearing, the aggrieved AP will appear before the GRCat the Gamgeoba office for consideration of grievance. The membersecretary will note down the statements of the complainant anddocument all details of the claim.The decisions from majority of the members will be considered finalfrom the GRC at Stage 1 and will be issued by the Convenor andsigned by other members of the GRC. The case record will beupdated and the decision will be communicated to the complainantAP.

Step 3 Decision from centralRDMRDI

If any aggrieved AP is unsatisfied with the GRC decision, the nextoption will be to lodge grievances to the RDMRDI at the nationallevel. The RDMRDI shall review the complaint in compliance with theprocedures specified in the Administrative Code of Georgia.GRC should assist the plaintiff in lodging an official compalint(the plaintiff should be informed of his/her rights and obligations,rules and procedures of making a complaint, format of complaint,terms of complaint submission, etc).The plaintiff shall be informed of the decision.

Step 4 Court decision If the RDMRDI decision fails to satisfy the aggrieved APs, they canpursue further action by submitting their case to the appropriate courtof law (Rayon Court).The aggrieved AP can take a legal action not only about the amountof compensation but also any other issues, e.g. occupation of theirland by the contractor without their consent, damage or loss of theirproperty, restrictions on the use of land/assets, etc.

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F. Special Recommendations to APs for Legalization of legalizable plots

10. It is likely that many land parcels to be acquired are not registered or not properly registered. APwho occupies plots that are not owned by others or the state and that are legitimately used by them buthave not been registered under the privatization process may be legalized. The legalization process isin progress and will be completed soon. Only after legalization these AP can be compensated.

11. The Roads Dept. and local governments of project areas are already assisting the APs bypreparing accurate land parcel maps with geometric descriptions which will be provided to them.However in order to do so in the best possible way the Project authorities need the APs collaboration forthe following:. As soon as the documentation is available register your land parcels to avoid complexityand delays in land acquisition and receipt of compensation. To facilitate, the cost of registration of landparcels has been included the replacement cost of land.

G. Contact InformationFor any information and advice, please feel free to approach the following contacts:Road Department of RDMRDI: 12 Kazbegi str., Tbilisi, Georgia

(i) Mariam Gogishvili--Mobile Phone 591707995 e-mail: [email protected](ii) Mariam Begiashvili Mobile Phone 577744088 e-mail: [email protected]

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Complaints and Grievance Submission Form

Achara #Name, Last name

Contact Information

Please indicate thepreferable means ofcommunication (Mail,Telephone, E-mail)

Mail: Please indicate the postal address:___________________________________________________________________________________________________________________________________________________________________________

Telephone:_______________________________________________

E-mail:____________________________________________

The languagedesirable for thecommunication

Georgian

English

Russian

Describe the grievance/claim: What is the complaint about? What is the claim?

Date of Negotiation: Resolution of Negotiation:

What is the basis of your claim?

Signature: _____________________________Date: _______________________________

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ANNEX 4

Detailed Design for E-60 Highway section from Zemo Osiauri to Chumateleti

Upgrading and Construction of

Section 2: Zemo Osiauri – Kakalatkhevi (km 5.8 km 0.0 – km 14.083)

Protocols of the Public Consultation meetings on Resettlement Matters with the Project-affected

People

The Government of Georgia has received a loan from the International Bank for Reconstruction and

Development (IBRD or BANK) toward the cost of the Fourth East-West Highway Corridor Improvement

Project (EWHCIP), under the on-going East-West Highway Improvement Program being implemented

by the Government of Georgia to upgrade the E-60 Highway. The Roads Department of the Ministry of

Regional Development and Infrastructure of Georgia (RDMRDI or Client) is the Executing Agency for

the Project.

Main objective of the assignment is to design a new optimal 4-lane highway with the preferred

technically safe and economic solution of the road section between Zemo Osiauri and Chumateleti on

the basis of a thorough assessment of technical, environmental, social and economic analysis and

appraisal. Implementation of this project is cofinanced by World Bank (WB) and European Investment

Bank (EIB). The entire road section is subdivided in two lots: Section 1 – km0+000 km5+800 from v.

Zemo-Osiauri to v. Kakalatkhevi will be financed by EIB and Section 2 – km5+800 East Portal of

Rikoti Tunnel will be financed by WB. Accordingly, two separate packages of the detailed design

documents will be elaborated including two separate RAPs for each subsection. The WB OP 4.12 on

Involuntary Resettlement is accepted by parties as a reference document for preparing respective

RAPs. Present RAP covers Section 2 – km5+800 km 12.0 from v. Kakalatkhevi to East Portal of

Rikoti Tunnel and is located within the Khashuri Rayon

During the day of November 18 of 2015, meetings with the project-affected land owners in the villages

of Khashuri rayon affected by the project were held. The meetings were attended by confidants of the

said villages. Mr. Giorgi Ezugbaia, the Consultant on resettlement issues informed the attending public

about the principles of involuntary resettlement applicable to the project in compliance with the Georgian

legislation and additional requirements of WB OP 4.12. Eligibility criteria, valuation methodology,

compensation principles and allowances to be paid to vulnerable and severely affected households

have been explained and the leaflets with short description of the same principles has been distributed

among the participants. At the end of the report, Mr. Ezugbaia replied to the questions of the population.

The details of questions and answers for different villages are given in the tables below:

v. Bijnisi. 18.11.2015

Question Author Answer

1 In case we are not satisfied withthe compensation amount, whomshould we address and what arethe procedures for filing acomplaint?

RusudanGigashvili

The mentioned procedures aredetailed in informational brochuresthat were distributed to you today,specifically:

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1. Initially complaints will bereviewed by the GRM committeeestablished at the local level.2. If a complaint cannot be resolvedat the local/municipality level, anaffected individual will file a hardcopy complaint at the GRM at theRD central office level.

3. Within 2 weeks from theregistration of a complaint agrievance redress committee at thecentral level will provide an answer.Decision has to be in line with therequirements of a land procurementand resettlement frameworkdocument.4. If an affected individual is notsatisfied by the complaints reviewsystem, he/she can take furthersteps, by bringing the case to court(a district court).

2 How will the compensation forperennial plantations be handled?

Ramin Gigashvili Compensation amount for perennialplantations will be determinedaccording to age, yield, variety,trees and crop market value

4 What is the land compensation isgoing to be?

Dali Tefnadze Independent auditors have valuatedthe land price. The price of onesquare metre of agricultural land inyour zone is is equal to 4.5 Gel.Residential and commercial landplots cost up to 9 Gel per sqm.

5 How many meters is therestriction corridor in case ofconstruction of a highway?

Temur Gigashvili The width of the road (includingtrenches and other infrastructure)requiring land take in a corridor,which width varies from 28 to 50mdepending on particular sites. Theland take drawings are prepared inaccordance with the final design.

6 Will there be employmentopportunities for local populationduring the construction?

Naira Gigashvili The Builder’s contract envisages theprioritized employment of the localsfor non-qualified workers andqualified builders.

7 I am a single woman andpensioner and have no othermembers of family supporting me.You have mentioned thatadditional compensation will begiven to such women? Am Ieligible and how much is theadditional compensation?

Dali Tefnadze Yes, in case if you are the singlewoman without breadwinner, youwill receive additional allowances forvulnerable people in amount of3,912 Gel.

12 Residents of the v. Bignisi attending the meeting represented 12 AHs.

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v. Utkhva and Chumateleti. 18.11.2015

This meeting was attended by the residents of 2 villages – v. Utkhva and v. Chumateleti)

Question Author Answer

1 Will soil fertility be taken intoaccount at the time ofcompensation for land?

KhachidzeAleksander

When determining the value of land soilfertility in the region will be indirectly takeninto account, since this is reflected in themarket price of land. The basicmethodology for land valuation is analysisof sale/purchase transactions andproposals on the real-estate marketduring the last year. Land plots similar tothe affected and plots will be taken forcomparison.

2 In case of failure during thenegotiation process betweenthe local resident and theGovernmennt, how thedecision can be made by theGovernment?

KhachidzeAleksander

There is Eminent Domain Law in place,according to this law, based on courtdecision, the landowner will receive faircompensation and land will becomeproperty of State in accordance withexpropriation rules defined in EminentDomain Law. AP may request allocationof similar land plot instead of getting cashcompensation (if it is possible).

3 Are there any provisionssupporting employment?

Macharashvili Lasha The Builder’s contract envisages theprioritized employment of the locals. RDwill take care that these provisions aremet.

4 My house is not registered inthe registry, will I get thecompensation?

Chaduneli Pavle If the property belongs to you, it does notmatter if it is officialy registered or not, youwill receive compensation in both casesFirst, you will be provided with thecadastral drawings for free and the localmunicipality will facilitate smooth processof land registration.

5 Will I get compensation to bepaid for my employees or theywill receive compensation forlost jobs directly?

Pavle Bliadze The list of employees, which you haveprovided to RD and Consultants andinformation on monthly wages will beused to calculate compensation in amountof 1 year loss of wages and this amountwill be paid directly to your employees.

6 Is the land compensation pricealready determined? We havenot been informed yet.

Khachidze Tengiz Independent auditors have just recentlycompleted valuation of the land price. Theprice of one square metre of agriculturalland in your zone is equal to 4.5 Gel.Residential and commercial land plotscost up to 9 Gel per sqm.

7 Who is eligible for additionalallowances as vulnerablefamily. If there are pensionersaccounted as vulnerable?

Khachidze Shura Families below the poverty line, orfamilies without breadwinner, led by awoman, disabled person or an elderlyperson will receive a one-time monetaryassistance equal to 1 year minimumsubsistence (for a family consisting of 5persons ).

8 In case when only part (60 %)of the whole land parcel isaffected, is the residual landparcel subject forcompensation?

Khachidze Nunu The viability of the residual land parcel willbe estimated by the independent auditor.In case of residual land parcel isconsidered unviable, the owner will beasked to make a choice: to get cash

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compensation for the residual land or tokeep the land under the ownership.

The meeting was attended by the 15 representatives of 15 AHs from v. Urtkhma and Chumateleti .

Photos. Representatives of v. Urtkhva and Chumateleti