Revised draft KYRGYZ REPUBLIC MINISTRY OF ENERGY OF THE KYRGYZ REPUBLIC Kyrgyzstan Renewable Energy Development Project (Phase 1) RESETTLEMENT POLICY FRAMEWORK March, 2023 Bishkek 1 ACRONYMS AND ABBREVIATIONS AP Affected party CC Civil Code DED Design and estimate documentation DMS Detailed monitoring survey EPP Electric Power Plants ESF Environmental and Social Framework ESMS Electricity Sector Modernization and Sustainability Project ESS Environmental and Social Standard FS Feasibility study GCF Green Climate Fund GHG Greenhouse gas GRC Grievance Redress Commission GRM Grievance Redress Mechanism HPP Hydropower plant IDA International Development Association KR Kyrgyz Republic KRED Kyrgyzstan Renewable Energy Development Project LC Land Code LSGs Local self-governments M&E Monitoring and evaluation MoE Ministry of Energy MM Mass media MNRETS Ministry of Natural Resources, Ecology and Technical Supervision MPA Multiphase approach NEGK National Electric Grid of Kyrgyzstan NEHC National Energy Holding Company OJSC Open joint stock company PAPs Project affected persons PDO Project development objective PMO Project management office PPP Public-private partnership RES Renewable energy sources RPF Resettlement Policy Framework RAP Resettlement Action Plan SEA Sexual exploitation and abuse SH Sexual harassment SHPP Small hydropower plant WB The World Bank 2 DEFINITIONS World Bank’s The ESSs set out requirements for Borrowers/Clients to identify and Environmental and assess environmental and social risks and impacts associated with Social Standards projects supported by the Bank through Investment Project Financing. The 10 ESSs set out standards that the Borrower/Client and the project should meet throughout the project. A person or a household affected by direct economic and social Project affected impacts caused by: a. involuntary land acquisition resulting in (i) person (PAP) relocation or loss of housing; (ii) loss of assets or access to assets; or (iii) loss of income or livelihood, whether or not the affected person has to be relocated. b. involuntary restriction of access to legally designated parks or protected areas, resulting in adverse impacts on the livelihood of a displaced person. Land acquisition Land acquisition refers to all methods of obtaining land for project purposes, which may include outright purchase, expropriation of property and acquisition of access rights, such as easements or rights of way. Land acquisition may also include: (a) acquisition of unoccupied or unutilized land whether or not the landholder relies upon such land for income or livelihood purposes; (b) repossession of public land that is used or occupied by individuals or households; and (c) project impacts that result in land being submerged or otherwise rendered unusable or inaccessible. Restrictions on land Restrictions on land use refer to limitations or prohibitions on the use use of agricultural, residential, commercial or other land that are directly introduced and put into effect as part of the project. These may include restrictions on access to legally designated parks and protected areas, restrictions on access to other common property resources, and restrictions on land use within utility easements or safety zones. Livelihood Livelihood refers to the full range of means that individuals, families and communities utilize to make a living, such as wage- based income, agriculture, fishing, foraging, other natural resource- based livelihoods, petty trade and bartering. Cut-off date Cut-off date is the date by which PAPs and their affected assets, as appropriate, can be identified and new persons arriving to the locality cannot claim compensation or resettlement assistance. Persons whose land ownership or use prior to the cut-off date can be proved shall retain the entitlement to assistance regardless of their identification as per the census. Compensation Compensation refers to a payment in kind, cash or other assets transferred in exchange for land acquisition, loss of other types of assets (including fixed assets) or loss of livelihoods as a result of project activities. 3 Census Census is a complete count of the population affected by project activities, including comparison of demographic and property information. This will identify and determine the number of project affected persons (PAPs) and the nature and levels of impact. Resettlement Action Resettlement Action Plan (RAP) is a resettlement instrument Plan (document) to be prepared during identification of sub-project sites. The RAP contains specific and legally binding requirements which should be met for resettlement and compensation to an affected party prior to implementation of a project activity which caused an adverse impact. Resettlement Resettlement assistance refers to arrangements to ensure that project assistance affected persons who may have to be physically relocated are provided with assistance, such as relocation allowances, residential housing or rentals, whichever is feasible and as appropriate, for ease of resettlement during the actual resettlement process. Replacement cost of Replacement cost of housing and other structures refers to housing and other prevailing open market cost of replacement of affected structures in structures a specific area of similar quality or better than that of the affected structures. Such costs will include: (a) cost of materials, (b) transportation of construction materials to the site; (c) any labor and contract fees; and (d) any title registration or transfer fees. Resettlement Policy Resettlement Policy Framework (RPF) is an instrument to be used Framework throughout the project. The RPF sets out resettlement objectives and principles, administrative arrangements and funding mechanisms for any resettlement that may be needed during the project implementation. The RPF guides the preparation of resettlement action plans for individual sub-projects to meet the needs of the persons who may be affected by the project. Replacement cost An amount, in cash or in kind, sufficient to replace an asset with an amount determined as compensation for: (a) agricultural land at market prices representative of recent sales of land prior to commencement of the project or resettlement or, in the absence of such recent sales, based on productive value; (b) residential land at market prices representative of recent sales of land prior to project or resettlement commencement or, in the absence of such recent sales, based on a resettlement with similar parameters; (c) houses and other related structures at current market prices for materials and labor without depreciation or deductions for retained construction materials; (d) crops at current market prices; (e) trees and other perennials at current market prices. Voluntary land Means that communities or individuals may agree to voluntarily contribution donate land for sub-project purposed in the public interest. The applicable principles of the voluntary land contribution are "informed consent and right of choice". Informed consent means 4 that the individuals involved are fully aware of the project, its conditions and consequences, and voluntarily agree to participate in the project. The right of choice means that those involved have the opportunity to give their consent or refuse without negative consequences for themselves which would be formally or informally caused by others. Involuntary Involuntary resettlement is the withdrawal of land, which leads to resettlement economic and social impacts caused by: a) Forced withdrawal of land, because of which: there is a resettlement or loss of shelter; there is a loss of property or access to property; there is a loss of sources of income or means of subsistence (regardless of whether the PAP is forced to move elsewhere or not) b) Forced restriction of access to the legally established park zones and specially protected natural areas, as a result of which the life of displaced persons is adversely affected. Financial Provision of assistance in addition to compensation such as land rehabilitation preparation, training or job opportunities for PAPs, improvement of assistance income earning capacity and production levels; or at least maintaining their living standards at the pre-project level. 5 CONTENTS 1.0. INTRODUCTION .............................................................................................15 1.1. Project background ..........................................................................................15 1.2. Project Components .........................................................................................16 1.3. Project beneficiaries ..............................................................................................18 1.4. Project implementation mechanism ......................................................................19 1.5 . Project sites ..........................................................................................................19 2.0. POLICY AND LEGAL FRAMEWORK ........................................................19 2.1. Applicable National and State Laws and Policies ...........................................19 2.2. World Bank Social Standard For Land Acquisition, Restrictions on Land Use and Involuntary Resettlement (ESS5) ..........................................................................22 2.3. Comparison of State laws with World Bank’s ESS-5 .....................................23 3.0. LAND PROCUREMENT PROCESS ..............................................................27 3.1. Procurement of Land for KRED subprojects ...................................................27 3.2. Process of Social Assessment and Preparation of RAP...................................28 4.0. RESETTLEMENT ENTITLEMENT MATRIX .................................................31 4.1. Voluntary land contribution ..................................................................................37 5.0. IMPLEMENTATION MECHANISM .................................................................39 5.1. Institutional Arrangements ....................................................................................39 5.2. Implementation Arrangements ..............................................................................40 5.3. Budget for RPF implementation ...........................................................................40 6.0. GRIEVANCE REDRESS MECHANISM ............................................................41 6.1. Grievance Redress System ....................................................................................42 6.2. Court Law..............................................................................................................43 6.3. Handling sensitive complaints ..............................................................................43 6.4. World Bank Grievance Redress Service ...............................................................44 7.0. MONITORING AND EVALUATION .................................................................44 7.1. Internal Monitoring and Evaluation ......................................................................44 7.2. External Monitoring and Evaluation .....................................................................45 8.0. STAKEHOLDER CONSULTATION AND DISCLOSURE .............................45 8.1. Stakeholder Consultations Hearings .....................................................................45 8.2. Disclosure ..............................................................................................................46 6 APPENDICES ................................................................................................................47 APPENDIX 1: EXPECTED SOCIAL IMPACT SCREENING REPORT..............47 APPENDIX 2: PAP CENSUS FORM AND LAND INVENTORY ..........................48 APPENDIX 3: PAP LAND ASSET INVENTORY ....................................................49 APPENDIX 4: PAP COMPENSATION ENTITLEMENT .......................................49 APPENDIX 5: CRITERIA AND FORM FOR VOLUNTARY CONTRIBUTION (DONATION) OF LAND ..............................................................................................50 APPENDIX 6. MINUTES OF THE PUBLIC CONSULTATIONS .........................51 7 EXECUTIVE SUMMARY The ever-increasing growth of electricity consumption in Kyrgyzstan and persistent shortage, a need to develop cost-effective and medium-term projects for development of the energy sector has been felt. Accordingly, Government of the Kyrgyz Republic is planning to develop generation of additional energy through renewable sources including augmentation of small and medium hydropower projects. To achieve the intended objectives a comprehensive project titled “Kyrgyzstan Renewable Energy Development Project (KRED)” has been planned to be implemented by the Ministry of Energy of the Kyrgyz Republic (MoE) in association with their different Open Joint-Stock Companies (OJSC) with financial assistance from International Development Association and administered by the World Bank. This RPF has been developed in accordance with the National requirements of the Kyrgyz Republic and the World Bank’s Environmental & Social Standard (ESS-5) - Land Acquisition, Restrictions on land use and Involuntary Resettlement. For implementation of proposed KRED project, it is not only mandatory to comply with applicable national legislations/regulatory framework on environment and social issues but to carry out due diligence on such issues as per the provisions of World Bank's Environmental and Social Framework (ESF) to meet the overall requirement of sustainable development. The Resettlement Policy Framework (RPF) outlines objectives, policies and laws guiding the resettlement and rehabilitation in KRED. It also lays down the procedures for procurement of land for the project including involuntary acquisition of land, if required. To offset the losses and inconvenient to the Project Affected Persons (PAPs) the RPF also defines the entitlements which would be used for compensating the Affected Persons. The RPF clearly states the situations in which the policy will be applicable, includes safeguards against involuntary acquisition of land, outlines the appropriate monetary compensation to the affected families, and identifies those who are entitled as affected families to the momentary compensation. This RPF will be adopted by the KRED for all sub- projects that are undertaken as part of the KRED whenever there is displacement of persons (physical displacement and/or economic displacement) associated with land acquisition for such projects. The key objectives of the RPF includes: • To avoid involuntary resettlement or, when unavoidable, minimize involuntary resettlement by exploring project design alternatives. • To avoid forced eviction. • To mitigate unavoidable adverse social and economic impacts from land acquisition or restrictions on land use by: (a) providing timely compensation for loss of assets at replacement cost and (b) assisting displaced persons in their efforts to improve, or at least restore, their livelihoods and living standards, in real terms, to pre-displacement levels. 8 • To improve living conditions of poor or vulnerable persons who are physically displaced, through provision of adequate housing, access to services and facilities, and security of tenure, as required. • To conceive and execute resettlement activities as sustainable development programs, providing sufficient investment resources to enable displaced persons to benefit directly from the project, as the nature of the project may warrant. • To ensure that resettlement activities are planned and implemented with appropriate disclosure of information, meaningful consultation, and the informed participation of those affected. Based on the analysis of Government statutes and the World Bank ESSs, the following principles are adopted for this project: • Screen the sub-projects to identify likely involuntary resettlement impacts and risks. Determine the scope of involuntary impacts using a screening checklist for each sub- project involving additional land requirement for construction of small and medium- scale HPPs or any sub project that has land requirement. • Ensure that affected persons with or without recognizable legal rights to land are eligible for replacement value for loss of non-land assets and resettlement and rehabilitation assistance. • Carry out meaningful consultations with affected persons, local communities, and concerned agencies/departments. • Inform all affected persons of their entitlements and resettlement options. • Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. • Pay attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and those without ownership to land, and ensure their participation in consultations. • Conduct census and socio-economic surveys, consultations, etc and prepare a Social Impact Assessment (SIA) report and also prepare a Resettlement Action Plan (RAP), as the case may be, depending upon the magnitude of impacts. • Identify and assist vulnerable groups for additional support in their efforts to improve their living standards. • Disclose draft and final RAP, including documentation of the consultation process in a timely manner, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. • Pay compensation and provide resettlement and rehabilitation assistance as per entitlements before clearing the affected area for the commencement of sub-project activities. • Establish an accessible Grievance Redress Mechanism (GRM) to receive and facilitate the resolution of the concerns of affected persons within a specified time frame. • Monitor and assess resettlement outcomes, their impacts on the standard of living of affected persons, and whether the objectives of the resettlement plan have been 9 achieved by considering the baseline conditions and the results of resettlement monitoring. 2.0. Policy and Legal Framework The ownership of land/real estate is governed by the several National and State laws and regulations, rules and procedures for transfer of private land plots to public ownership based on the public needs associated with the project activities. The Land Code of the Kyrgyz Republic states that land acquisition (withdrawal) is an exceptional measure for terminating the right to land plot. The Constitution and several laws refer to the need to compensate for land acquisition. In Article 68 of the Land Code defines acquisition of land for state and public needs and states the following: (i) Land may be acquired (purchased) for state and public needs on the basis of an agreement between the competent authority and the land owner or land user. In case if the land owner or land user opposes the acquisition (purchase), the competent authority has the right to file a lawsuit within 2 (two) months claiming acquisition with payment of compensation to the owner or land user for the land plot from the date of the formal refusal by the land owner/land user (Article 68, Clause 1); (ii) The compensation for the land to be acquired should be based on the market value of the land and related structures, losses incurred by the land owner or land user, and obligations to third parties (Article 68, Clause 3); and (iii) Where land plots are to be acquired for state or public needs with the consent of the land owner or land user, the owner/user may be allocated a land plot of the same value as compensation for the land plot to be acquired (Article 68, Clause 4). The LC states that the title to land and related structures may be terminated, including where the land is required for state or public needs (Article 66, Clause 1, Sub-clause 2). A land plot for state and public needs can only be acquired after payment of the cost of the land plot and compensation for losses (Article 66, Clause 4). The land owner or land user has the right to demand compensation in the manner prescribed by the law of the Kyrgyz Republic (Article 49, Clause 1, Sub-clause 5). Under the proposed project a principle of willing buyer-willing seller on negotiated and agreed rate or market value in the respective oblast will be applied to the PAP. Presently, it is not possible to estimate the exact number of people or lands which may be affected at this stage, as technical designs and details have not yet been developed. 3.0. Land Procurement Process The proposed project includes the construction of small and medium scale HPPs, the construction of which may require securing of land by the MoE KRED project. For constructing one or two small medium-scale HPPs lands will be required. The size of land for construction of HPPs is not known yet, it will be clear by the results of detailed design and ESIA. While the majority of the land required for HPPs’ construction will be secured through transfer of Government lands with 10 appropriate registration of lands. In the case of voluntary donation of land, it will be ascertained that the land owner/user(s) are not subjected to undue pressure for parting of land. Apart from this following shall also be ensured: • All out efforts shall be made to avoid any physical relocation/displacement due to loss of land; • Subsequently title of land shall be transferred in the name of proponent (MoE PMO). • All land donations (as well as purchases) will be subject to a review/ approval from a committee comprising representatives of different levels including those from the local authorities and MoE PMO. However, there may be a possibility that in the absence of such readily available government land, State may have to resort to direct purchase of some private land applying policy on direct purchase as mentioned above. However, MoE PMO will allow this only as a demonstrable last resort in the case of non-availability of Government as well as gifted lands in the rayon. Table 1. PROCESS OF LAND PROCUREMENT FOR PROPOSED PROJECT Land Ownership Processes to be followed Government land (revenue land) Or Public • Requiring local municipality to apply for land (Government/ Municipality land) transfer of land to the Rayon/Oblast Land Cadaster of the concerned village/rayon with all requisite documents; • Permission from the Cabinet of Ministers by issuing the law on land transformation; • Conduct social screening to understand the magnitude of social impacts; • Conduct census & socio-economic survey of PAPs, consultations & prepare RAP as per impacts. Direct Land Purchase from Land Owners. • Consent of the Land owner; • Drawing up an agreement on the purchase and sale of a land plot; • Conduct social screening to understand the magnitude of social impacts; • Conduct census & socio-economic survey of PAPs, consultations & prepare RAP; • Pay compensation as per Entitlement. KRED PMO in association with the MoE regional Division would coordinate with the Rayon/Oblast Administration. Propose methods that would be adopted in KRED for securing of land for construction of HPPs. Necessary clearance from relevant department including the State Registration Service would be obtained by MoE KRED before commencement of civil works. 11 4.0. Resettlement Entitlement Matrix The entitlements of different categories of eligible persons are presented in an Entitlement Matrix form indicating the type of loss, category of entitled person, unit of entitlements, etc. PAPs will be eligible for compensation depending upon the status of ownership rights and type of loss. 5.0. Implementation Mechanism For the implementation of the RPF, Project Management Office will be established under KRED (MoE PMO). The MoE PMO will be located at the MoE office in Bishkek. For the implementation of the E&S safeguards along with RAP the MoE PMO would be additionally supported by designated Social Specialist. At the field level, the Regional offices of MoE which would be responsible for implementing the technical aspects of the MoE PMO activities and would also be responsible for the implementation of the E&S safeguards along with RAP. In addition, the Contractor implementing the subprojects would also have Social Specialist to actually carry out the E&S safeguards including implementation of RAP, if any on the ground. The MoE PMO will provide adequate budget for land acquisition compensation from the project funding. The budget estimates and its sources will be reflected in RAP. Estimated cost of RAP implementation including land cost payable to PAPs will be at around 1% of total project cost depending on the extent of social issues involved. 6.0. Budget for RPF implementation Compensation payments will be made at the expense of the project amounting of 1% of project total cost or US $545 000. In case of lack of funds for compensation payment, respective Implementing Agencies such as Chakan HPP will cover the compensation costs under Component 1 at its own budget and the NEGK will cover the costs of Component 3 the same as Chakan HPP, if needed. 7.0. Grievance Redress Mechanism To facilitate timely, effective and efficient resolution of grievances and complaints to the satisfaction of all parties involved a 3 tier Grievance Redress Mechanism is developed for the proposed project. The GRM provides a transparent and credible process for achieving fair, effective and lasting results. GRM also enhances trust and cooperation as an integral component of broader community consultation that promotes corrective action. Territorial department of the energy companies at the first level, who are responsible for helping members of the community and other social work (conflict resolution, overall community upkeep, etc.). Their responsibility is to receive/register a grievance, then communicate it to the PMO and assist in the process of reviewing and responding to applicants. At the second level, the PMO Social Specialist will register grievance in the Grievance Log, together with the PMO management will review and respond to the applicant. The Social Specialist of the PMO will report on the status of handling complaints on a quarterly basis. At the third level a Grievance Redress Commission (GRC) will be formed, including the MoE KR and PMO representatives, district and local level office managers, and one village leader as needed. GRC will resolve issues that were not resolved at the first and second levels or matters that came directly to the PMO or MoE. To promote the transparent and efficient implementation 12 of the project, the PMO and MoE KR will accept and investigate queries from any Project-affected parties, including anonymous queries. The Project GRM does not prevent applying to a court in accordance with the legislation of the Kyrgyz Republic. If a grievance resolution requires special verification (consideration), additional materials or other measures, the terms for resolution may be extended but not more than for 30 calendar days in accordance with the Law of the Kyrgyz Republic “On Procedure of Handling Public Appeals”, No. 67, dated May 4, 2007. Anonymous complaints will also be considered under the Project and relevant measures will be undertaken. Grievance Log All incoming grievances, queries, suggestions shall be subject to registration in the Grievance Log. The log information is copied and included into the e-database. The e-database must contain at minimum the relevant information about filing date, registration number, essence of the issue, responsible person, time for resolving the complaint and feedback (positive or negative). The specialist shall track the process of consideration of a complaint based on its registration number. Provisions of easy access & confidentiality on sensitive issues particularly of SEA/SH nature have also been made part of GRM to avoid fear and retribution of complaint. The contractor will be responsible for developing the workforce management procedure, occupational health and safety plans as well as SEA/SH protocols which will apply to their own and subcontractors’ employees who work on the Project. These procedures and plans will be submitted to PMO for review and approval before the contractors are allowed to mobilize to the field of construction. In addition to seeking to resolve their grievances through the GRM communities and individuals adversely affected by a World Bank (WB) supported project such as this operation may also submit complaints to the Grievance Redressal Service (GRS) established by the World Bank. The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. 8.0. Monitoring and Evaluation The MoE/PMO /JSCs would monitor the implementation of the environmental and social safeguards in all the sub-projects to ensure conformity to the requirements of the ESMF/ESIA and ESMP including RAP. In addition, the MoE PMO safeguards and engineering team will monitor compliance of environmental and social safeguards and submit regular quarterly monitoring reports on implementation of ESCP. The MoE PMO will also comply with the provisions of any other E&S documents required under the ESF, such as Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), Environmental and Social Management Plans (ESMP), Resettlement Action Plans (RAP), Labor Management Procedures (LMP) and Stakeholder Engagement Plan (SEP), and the timelines specified in those E&S documents. The internal monitoring would be carried out through the sub-project Monthly Progress Reports (MPR) submitted by the Regional Offices of MoE/KRED implementing the sub-project. The designated Environmental and Social Specialists of the KRED PMO would also visit the site regularly for the purpose of monitoring and supervision. The reporting would capture information from the Contractors/Implementing Agency to Regional Offices and through a graduated process of consolidations, analysis and assessment, a monthly progress report will be send by the Regional Offices to the Environment and Social Specialists at KRED PMO. The KRED PMO would review these monthly reports and identify technical, managerial or regulatory and safeguard issues with regards to the compliance including RAP provisions if applicable. A corrective action plan would be developed by the KRED PMO and debated internally to determine the appropriate 13 interventions. These interventions would be conveyed to the KRED Management through a Quarterly report for approval and subsequently implemented by KRED PMO. The PMO would prepare a quarterly progress report (QPR) with ESMP/RAP compliance status and Semi-annual monitoring report and present it to the MoE and World Bank. External monitoring and evaluation of the impact of resettlement activities will be conducted twice i.e. once during the implementation of RAP (mid-term) and the other at the end of the completion of RAP implementation activities. For this purpose, PMO may engage an external independent agency. 9.0. Stakeholder Consultation and Disclosure The stakeholder consultation workshops have been conducted at Karakul city on 28th of January 2023 in the office of the Toktogul Cascade HPP, the same day in the hall of school, village Sai, Kara-Kulzha rayon of Osh oblast, in the village of Nur, Kemin city dated 30th of January 2023 and on 31th January in Bishkek in the office of NEGK. Detailed presentation on draft ESF documents (including ESMF, RPF, SEP, LMP and ESCP) was made which was followed by discussion and suggestions by the participants. The suggestions were noted and incorporated suitably in the munities of public consultation which are attached to the ESMF/RPF document. In order to make the RAP preparation and implementation process transparent, Executive summary and salient features of RPF shall be translated into Kyrgyz language and disclosed on the Project’s, MoE and Implementing Agencies’ websites, site offices for wider dissemination. The documents available in the public domain will include Entitlement Matrix and RAP (summary in Kyrgyz) and the list of affected persons eligible for compensation. Copy of all documents will be kept in PMO for ready reference. As per Access to Information Policy of the World Bank, all safeguard documents will also be disclosed and will also be available on the World Bank’s info shop. 14 1.0. INTRODUCTION This section describes the scope of the proposed project, which will cover the implementation of Phase 1 of the MPA described above. The three components described below are aimed at addressing the short-term generation capacity gap and laying the foundation for subsequent phases. MoE will be responsible for managing the entire multiphase program, whereas Chakan HPP JSC, Electric Power Plants (EPP) JSC and National Electric Grid of Kyrgyzstan JSC (NEGK) will be responsible for their respective components respectively, as required and as specified below. The scope and amount of funding for each component are presented below. 1.1. PROJECT BACKGROUND Kyrgyz Republic is a landlocked, lower-middle-income country with rich natural endowments, including minerals, forests, arable land and pastures, and significant potential for expansion of agriculture, hydroelectricity production, and tourism. In October 2021, the Government of Kyrgyz Republic launched a medium-term development program for 2021 to 2026 with the goal of “leaving no one behind.” The priority areas of the program include anti-crisis measures; management reform; establishment of an enabling environment for development; development of key sectors of the economy, including energy; social development; foreign policy and national security; and special priorities. Energy is presented as a key sector to be reformed, including through gradual tariff adjustments toward cost recovery, exploiting the country’s renewable energy potential, modernization of sector assets, and transition to the wholesale electricity market. Following a number of restructurings over the past decade, as of today three joint stock state- owned enterprises (SOEs) responsible for power generation, transmission, distribution and retail, together are responsible for the construction and operation of most the power sector’s infrastructure. The SOEs consist of two generation companies, the Electric Power Plants (EPP) and the Chakan hydroelectric power plant, one transmission and distribution company namely the National Electricity Grid of Kyrgyzstan (NEGK), which consolidated the transmission company and four regionally divided distribution companies. There are also several small private generation and supply companies. The energy sector also comprises the heating segment, with the Bishkek Combined Heat and Power Plant (CHP) owned by EPP supplying more than half of the capital city’s heating demand. The National Energy Holding Company (NEHC) is designed to govern subsidiary energy SOEs via unified decision making based on the government’s energy sector strategy. The Ministry of Energy (MoE), which was re-established in 2021, consolidates the policy making and oversight functions in the energy sector. The State Regulatory Agency for Energy and Fuel (the Regulator) mapped under the MoE, regulates domestic electricity, gas, and heating tariffs and performs licensing functions. To date, less than one-fifth of the country’s hydropower potential has been exploited while the least cost expansion plan in the Energy Sector Master Plan financed by ADB includes significant new solar and hydro capacity, including small and large sized hydro sites. Some high potential projects have been identified, among which the Kambarata-1 Project on its own has the potential to increase the existing hydropower output by more than 30 percent (see Box 1), which would be evenly produced during summer and winter periods with the high dam option. Moreover, the country’s mountainous terrains are an ideal location for small hydropower investments. On the solar side, the country has an estimated technical solar power potential of 650 GW, which has not 15 been exploited so far. The quality of the solar power is comparable to some of the best in the region, with an estimated annual power and heat output of about 300 kWh/m2 and up to 750 kWh/m2, respectively. The often-quoted estimates from MoE indicate that there is potential for five to eight billion kilowatt-hours (kWh) of electricity generation from small hydro plants annually. More recent studies1 estimated that between 87 and 92 new SHPP sites are available to be developed or rehabilitated, which are estimated to have a total installed capacity of roughly 180 MW. 1.2.PROJECT COMPONENTS The KRED project comprises of four components mainly: Component 1: Rehabilitation and Construction of Small and Medium-scale Hydropower Plants (estimated US$ 39 million IDA financing). This component will support priority investments and provide technical assistance and capacity building activities aimed at increasing hydro capacity in the country. Chakan HPP shall be responsible for implementation of this Component 1, which comprises the following two subcomponents: Sub-component 1.1: Construction of new hydropower plant and rehabilitation of existing hydropower plant. MoE and Chakan HPP developed a short list of four small and medium scale HPPs which include Karakul, Kara-Kulja, Tar, and Bystrovskaya HPPs, of which the first two are for new construction and the last one is for reconstruction. Proposed subprojects technical parameters are given below. Item Subproject name Dam Reservoir size, Capacity, MW Type of work # height, m million m3 1. Karakul HPP 8 0,05 29 Construction 2. Tar HPP lower 24 1,6 19 Construction 3. Bystrovka HPP - Run of river 8.7 Reconstruction (run of river) The one of the proposed subproject for new construction is Karakul HPP which located in Karakul city of Jalal-Abad oblast. A substation may be required for this HPP. If there will be a substation, then it will be constructed on the territory allotted for the HPP - no additional land is required forit. Power line for new HPP may also be required. But power line route is not identified. Details of HPP, substation and lines are not known at this stage and will be identified upon the results of feasibility study. Possible social and environmental risks and impacts will also be determined only after ESIA. The another new HPP is Tar HPP lower located in Kara-Kulzha rayon of Osh oblast. Same as for the above HPP, a substation may be required. If there will be a substation, then it will be constructed on the territory allotted for the HPP - no additional land is required for it. Power line for new HPP may also be required. But power line route is not identified. Details of HPP, substation and lines are not known at this stage and will be identified upon the results of 1 Estimates of SHPP potential provided in the UN sources also included 22 MW of potential capacity from rehabilitating 39 existing sites and 75 MW of capacity from constructing 7 SHPPs at existing irrigation water reservoirs. The number of plants and their combined capacities varied slightly among documents developed by the Ministry and by the UN (UNDP and UNIDO); however, this fluctuation is likely a result of rounding. 16 feasibilitystudy. Possible social and environmental risks and impacts will also be determined only afterESIA. Bystrovka HPP is an existing one. It has its own infrastructure. Only reconstruction works will be carried out in this subproject. All reconstruction activities will be held on the territory of the subproject. No structures and lands are required for this. Reconstruction works will not have any adverse impacts for environment and population near the HPP. There may be temporary impactsfor population during reconstruction works. Sub-component 1.2: This subcomponent will finance provision of technical assistance and capacity building to Chakan HPP to support project implementation. The specific technical assistance activities will include: (i) finalization of the feasibility study and preparation of the bid documents for the selected hydropower projects; (ii) preparation of safeguards documents; (iii) consulting services for construction supervision and implementation of safeguards instruments as needed; (iv) feasibility studies for rehabilitation and construction hydropower projects in the future; and (v) training and capacity building for dam safety and optimization of hydro reservoirs to support integration of solar energy Component 2: Technical Assistance to Preparation of Kambarata-1 Large Hydropower Plant (estimated US$ 2 million IDA financing). The activities covered under this component include the update of the feasibility study, environmental and social studies and the draft of procurement documents and implementation agreements. Given the large investment needs (approximately US$2.9 billion according to the feasibility study 2014), this work will be complemented by Bank-executed technical assistance to evaluate potential financing options, including potential phasing, co-financing options and potential role of PPP approach. EPP shall be responsible for implementation of Component 2. Component 3: Preparation and Grid Integration of Renewable Energy Projects. This component will prepare the power system for increased deployment and integration of variable renewable energy, with a focus on supporting the solar pilot project, which is planned in Phase 2 using World Bank guarantee instrument. The Component shall comprise the following two sub- components: Sub-component 3.1: Grid enforcement and strengthening to facilitate integration of hydro and solar power (estimated US$ 10 million potential GCF financing). This subcomponent will finance upgrading and strengthening of existing grid infrastructure to facilitate the development of large-scale renewable energy. Sub-component 3.2: Technical assistance and capacity building (estimated US$2 million potential GCF grant financing). This subcomponent will finance provision of technical assistance and capacity building to MoE, NEGK and other key stakeholders to enhance institutional capacity for managing the development and integration of large-scale solar power. The specific activities under the subcomponent could include: (i) the development and implementation of grid code, such as connecting code for renewable energy; (ii) policy and regulatory review and assessments to strengthen regulatory and institutional frameworks for renewable energy development; (iii) the development and implementation of measures for short term demand forecasting , including sub- hourly forecast for near-real time; and day ahead, month-ahead, year-ahead forecast for planning, and sub-hourly wind and solar power forecast; (iv) enhancement of the means, tools, and procedures for planning and managing different types of reserves and dispatching protocols and procedures; (v) feasibility studies for solar and wind projects, including wind and solar resource 17 measurement as well as environmental and social impact assessment; and (vi) training and capacity building. Two options are being proposed by the NEGK to be financed under Component 3 to strengthen the Power grid to facilitate integration of hydro and solar energy activities. Option 1: Construction of the 220kV Isanova substation and 220-110kV overhead lines. Option 2: Modernization of automation systems. Both options are under World Bank’s review. If the option 1 is selected, 220 kV Isanova substation with a new overhead line of 220kV will be reconstructed/augmented. The power line is needed, but the route is not known. The territory for the substation has been allotted, no additional land is required. No other structures (warehouses) will be required. Possible social and environmental risks and impacts will also be determined during KRED implementation. If the option 2 is selected, the existing system of emergency automatics together with SCADA and other similar systems in the existing networks will be improved in order to improve the reliability and safety of the power system. This will not require any additional facilities or warehouses. NEGK will upgrade its equipment of automation systems in the existing grids. There will be no any significant adverse social or environment impacts under this activity. Technical details of the substation and lines are not known at this stage and will be identified upon the results of feasibility study. Component 4: Institutional Strengthening and Project Implementation Support (estimated US$ 1.5 million including US$ 1million from IDA financing and US$ 0.5 million from GCF grant). This component will finance activities aimed at strengthening the energy companies’ technical, operational and management functions, and ensuring effective Project implementation. 1.3. PROJECT BENEFICIARIES Beneficiaries of Phase 1 of the Project are the electricity consumers, including industrial, commercial, and residential customers. The newly constructed and rehabilitated hydropower plants under this phase will help increase power supply in the Kyrgyz Republic and improve the quality of power in the country. In addition, the local population is expected to benefit to a certain extent from employment opportunities during the repair and rehabilitation phases. The implementing agencies will also benefit significantly from the capacity building and technical assistance they will receive, which will improve their capacity to plan, develop, manage and maintain existing hydropower systems and services. Consequently, they will be able to deliver better, more reliable, and cost-effective services to customers. In addition, it will also be ensured that ensuing benefits like compensation at replacement cost to all PAPs including vulnerable, marginalised, and disadvantaged groups for any adverse impact in accordance to provisions of RPF are provided to all affected persons. MoE/PMO will also ensure that no person or community are disproportionately impacted to the extent possible and all possible measures in accordance to mitigation hierarchy shall be implemented as prescribed in ESMF. 18 1.4. PROJECT IMPLEMENTATION MECHANISM The implementation arrangements of the proposed project will build on the current arrangement under Electricity Sector Modernization and Sustainability Project (KEMS), where a Project Management Office (PMO) is being established with key staff being hired including procurement, financial management and disbursement, E&S specialists. The same PMO will implement this proposed project, with enhanced capacity from additional specialists as needed and the Government of the Kyrgyz Republic will be committed to ensuring that the MoE PMO will be staffed with relevant qualified staff responsible for implementation of the safeguards functions as per the Bank’s ESS and capacity building activities as per the KRED ESCP agreed between the MoE and the Bank. This ESCP specifies the main responsibilities and actions to be undertaken by MoE to ensure project, compliance with the WB ESSs. Meanwhile, MoE has instructed Joint Stock Companies: Chakan HPP, EPP and NEGK to support the project preparation including coordination and preparation of required project documents. The PMO being established under MoE is headed by a Director and will have dedicated teams of staff to work on environmental and social standards, procurement, financial management, accounting and internal auditing disbursement. 1.5 . PROJECT SITES The project activities will be implemented in Osh, Jalal-Abad and Chui oblasts under all four components. 2.0.POLICY AND LEGAL FRAMEWORK This section of the RPF provides an overview of the policies/legal framework and procedures for land acquisition and resettlement assessment in the Kyrgyz Republic, as well as relevant World Bank environmental and social standards applicable to project activities. Each area of activity selected within the project will be checked, classified and evaluated according to the Environmental and Social Management Framework and the legislation of the Kyrgyz Republic, and is to be reviewed and approved by the WB as appropriate. The project's legal and policy principles are based on national laws and regulations on land acquisition and compensation policy in the Kyrgyz Republic and ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement. 2.1.APPLICABLE NATIONAL AND STATE LAWS AND POLICIES The ownership of land/real estate is governed by the following laws and regulations, rules and procedures for transfer of private land plots to public ownership based on the public needs associated with the project activities. The Constitution of the Kyrgyz Republic states the following: (i) The Kyrgyz Republic equally recognizes and protects private, public, municipal and other forms of ownership (Article 15, Clause 1); 19 (ii) Land, with the exception of pastures and forests, may also be in private and municipal ownership (Article 16, Clause 3); (iii) Property shall be inviolable. No one can be arbitrarily deprived of his/her property. The right to inherit is guaranteed. Seizure of property against the will of the owner shall be allowed only upon decision of a court as prescribed by law (Article 15, Clause 2); (iv) Property may be confiscated for public and state needs, as defined by law, upon the decision of the court with ensuring of prior and equitable compensation for the value of such property and losses incurred as a result of such confiscation (Article 15, Clause 2). Civil Code of the Kyrgyz Republic (May 8, 1996, No. 15, latest revision of August 5, 2022, No. 81) The Civil Code (CC) states that a person whose right has been violated may demand full compensation for the losses incurred by him/her, unless otherwise prescribed by law or an agreement conforming to the law (Article 14, Clause 1). The CC also states that recoverable losses include: (i) expenses incurred or to be incurred by the person whose right has been violated to redress a violated right or to compensate for loss or damage to his/her property (actual losses), and - lost income that this person would have received under normal conditions of civil transactions if his/her right had not been violated (lost profits). - if the person who violated the right received income as a result of the violation, the person whose right was violated has the right to demand compensation for lost profits in the amount of not less than the income received, together with other losses (Article 14, Clause 2). Lost profits that a person would have received under normal conditions if his/her rights had not been violated (opportunity costs) (Article 14, Clause 2). Regarding compensation for losses caused by government authorities and local self-governments, Article 15 states that losses incurred to an individual or a legal entity as a result of misconduct (or failure to act) by government authorities, local self-governments or officials of such authorities, including publication by the government authority of an act that does not comply with the law, are subject to compensation by the government and local self-governments as prescribed by law. Land plots may be alienated or transferred from one person to another to the extent that transfer thereof is allowed by the land law of the Kyrgyz Republic (Article 23, Clause 4). Land Code of the Kyrgyz Republic (June 2, 1999 No. 45, latest revision of August 5, 2022 No. 85). Article 68 of the Land Code (LC) defines acquisition of land for state and public needs and states the following: (iv) Land may be acquired (purchased) for state and public needs on the basis of an agreement between the competent authority and the land owner or land user. In case if the land owner or land user opposes the acquisition (purchase), the competent authority has the right to file a lawsuit within 2 (two) months claiming acquisition with payment of compensation to the owner or land user for the land plot from the date of the formal refusal by the land owner/land user (Article 68, Clause 1); 20 (v) The compensation for the land to be acquired should be based on the market value of the land and related structures, losses incurred by the land owner or land user, and obligations to third parties (Article 68, Clause 3); and (vi) Where land plots are to be acquired for state or public needs with the consent of the land owner or land user, the owner/user may be allocated a land plot of the same value as compensation for the land plot to be acquired (Article 68, Clause 4). The LC states that the title to land and related structures may be terminated, including where the land is required for state or public needs (Article 66, Clause 1, Sub-clause 2). A land plot for state and public needs can only be acquired after payment of the cost of the land plot and compensation for losses (Article 66, Clause 4). The land owner or land user has the right to demand compensation in the manner prescribed by the law of the Kyrgyz Republic (Article 49, Clause 1, Sub-clause 5). Finally, the LC (Article 78, Clauses 1 and 2) also determines the regulations for use of common lands. In particular, this indicates that common lands in settlements, cities and villages (e.g., roads, streets, squares, sidewalks, driveways, park lanes, boulevards, parks, reservoirs, etc.) cannot be in private property and only in exceptional cases can be leased to competent authorities, legal entities and individuals for a period not exceeding 5 years. The competent authority may permit construction of light structures on common lands (Article 78, Clause 3). Law of the Kyrgyz Republic on State Registration of Real Property Titles and Transactions Thereof (December 22, 1998, No. 153, as amended on February 25, 2021, No. 21). This law states that the state registration of real property rights and transactions thereof is a legal act on recognition and confirmation by the state of rights to real estate, its encumbrances (restrictions) and real estate transactions, ensuring protection of registered rights and encumbrances (restrictions), with the exception of cases provided for by this Law (Article 1). Any regulatory or other document on the rights or their restrictions subject to mandatory registration in accordance with Article 4 of this Law shall be submitted to the registration authority no later than thirty days from the date of conclusion (execution) of the said document (Article 7). • Rights of access to communication lines, pipelines, geodesic points and other parts of the infrastructure intended for common use; • Rights of spouses, children, etc.; • Temporary rights, lease or sublease for up to 3 years; • Actual rights of use for the main or predominant use of property; • Rights arising from tax assets; • Encumbrances related to general health care, public safety, environmental protection, etc. Regulation on valuation of assets Asset valuation shall be performed based on the Provisional Rules for Appraisers and Appraisal Organizations (Government Resolution No. 537 of August 21, 2003), Valuation Standards for Appraisers (Government Resolution No. 217 of April 3, 2006) and other national laws. 21 Law of the Kyrgyz Republic on the Citizens’ Grievance Redress Procedure (No. 67 of May 4, 2007, last amended on July 27, 2016, No. 151). The Law on the Citizens’ Grievance Redress Procedure states that grievances from citizens of the Kyrgyz Republic shall be registered, properly addressed and resolved in a fair, timely and accountable manner (Articles 2 and 4). Every citizen has the right to apply in person or by proxy to government authorities, local self-governments and their officials, who shall provide a substantiated response within the time allowed by law (Article 4, Clause 1). A grievance registered with a government authority or local self-government shall be reviewed within 14 business days. In exceptional cases, grievance review period may be extended by no more than 30 days (Article 8, Clauses 2 and 3). 2.2.WORLD BANK SOCIAL STANDARD FOR LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT (ESS5) ESS5 recognizes that project-related land acquisition and restrictions on land use can have adverse impacts on communities and individuals. Project-related land acquisition or restrictions on land use may result in physical relocation (resettlement, loss of land for building construction, or loss of housing), economic relocation (loss of land, assets, or access to assets resulting in loss of sources of income), income, or other livelihoods), or both. The term "involuntary resettlement" is applicable to such impacts. Resettlement is considered involuntary where affected individuals or communities do not have the right to refuse land acquisition or restrictions on land use that would result in displacement. ESS5 requirements Project design The Borrower will demonstrate that involuntary land acquisition or restrictions on land use are limited to direct project requirements for clearly specified project purposes within a clearly specified period of time. The Borrower will consider feasible alternative project designs to avoid or minimize land acquisition or restrictions on land use, especially where this would result in physical or economic displacement, while balancing environmental, social, and financial costs and benefits, and paying particular attention to gender impacts and impacts on the poor and vulnerable. Compensation and benefits for PAPs When land acquisition or restrictions on land use (whether permanent or temporary) cannot be avoided, the Borrower will offer PAPs a compensation at replacement cost and other assistance as may be necessary to help them improve or at least restore their standards of living or livelihoods. Compensation standards for land and property, plant and equipment will be disclosed and applied consistently. Compensation rates may be subject to upward adjustment where negotiation strategies are employed. In all cases, a clear basis for calculation of compensation will be documented, and compensation distributed in accordance with transparent procedures. Community engagement 22 The Borrower will engage with affected communities, including host communities, through the process of stakeholder engagement described in ESS10 Stakeholder Engagement and Information Disclosure. Decision-making processes related to resettlement and livelihood restoration will include options and alternatives from which affected persons may choose. Disclosure of relevant information and meaningful participation of affected communities and persons will take place during the consideration of alternative project designs, and thereafter throughout the planning, implementation, monitoring, and evaluation of the compensation process, livelihood restoration activities, and relocation process. Grievance redress mechanism The Borrower will ensure that a grievance redress mechanism (GRM) for the project is in place, in accordance with ESS10 as early as possible in project development to address specific concerns about compensation, relocation or livelihood restoration measures raised by displaced persons (or others) in a timely fashion. Where possible, such grievance mechanisms will utilize existing formal or informal grievance mechanisms suitable for project purposes, supplemented as needed with project-specific arrangements designed to resolve disputes in an impartial manner. Planning and implementation Where land acquisition or restrictions on land use are unavoidable, the Borrower will, as part of the environmental and social assessment, conduct a census to identify the persons who will be affected by the project, to establish an inventory of land and assets to be affected, to determine who will be eligible for compensation and assistance, and to discourage ineligible persons, such as opportunistic settlers, from claiming benefits. The social assessment will also address the claims of communities or groups who, for valid reasons, may not be present in the project area during the time of the census, such as seasonal resource users. In conjunction with the census, the Borrower will establish a cutoff date for participation (eligibility). Information regarding the cut-off date will be well documented and will be disseminated throughout the project area at regular intervals in written and (as appropriate) non-written forms and in relevant local languages. This will include posted warnings that persons settling in the project area after the cutoff date may be subject to removal. To mitigate resettlement impacts, ESS5 requires preparation of a RAP for the land acquisition process once the extent of the direct impact is known. A full RAP is required for projects with a greater impact. ESS5 requires that particular attention be paid to the needs of affected vulnerable groups, especially those living below the poverty line, those without title to land, the elderly, women, children and ethnic minorities. Where no loss of private land or non-land assets is expected, but a voluntary transfer (contribution) of land is expected, a voluntary land contribution form will be prepared as part of the sub-project proposal in accordance with the criteria and form specified in Appendix 5. 2.3.COMPARISON OF STATE LAWS WITH WORLD BANK’S ESS-5 In principle, both the Land Code of the Kyrgyz Republic and World Bank's ESS5 adhere to the goal of cost recovery at replacement cost. Under the Project RPFs, if any, all PAPs will be eligible 23 for a combination of compensation and assistance required, based on the type of property or assets lost, the amount of damage, the impact on livelihoods, and the degree of socio-economic vulnerability of PAPs. Assistance will be provided to those PAPs who do not own land or other property but have some economic interests and incur loss of income or livelihood. To clarify these issues and eliminate possible gaps between the law of the Kyrgyz Republic and the World Bank's policy, the Project RPF data were compiled, which envisage compensation at the replacement cost of all items, rehabilitation of persons without title and informal settlers, and provision of subsidies or allowances for PAPs who may be relocated, incur commercial losses or may be seriously affected. Key provisions that bridge the gap between the law of the Kyrgyz Republic and the World Bank’s policy include the following: ✓ Any PAPs, whether they have legal title to land or not, will be eligible for compensation (for buildings, crops and trees) and rehabilitation measures under the project. These include persons who do not own, but use land, and squatters (settlers on unoccupied or public lands); ✓ PAPs and affected communities will be advised on options and any impacts of land acquisition and resettlement; ✓ Social screening will be performed to determine the level of potential impact and appropriate mitigation measures; ✓ Where compensation for land is not technically or socially feasible, it will be made in cash at full replacement cost at current market value; ✓ Compensation for any other affected assets (buildings, crops and trees, loss of business/income) will be in cash or in kind at full replacement cost at current market value; ✓ Vulnerable and poor PAPs will be eligible for appropriate additional measures. Gender aspects will also be taken into account; ✓ The need for land acquisition and resettlement will be avoided or minimized, to the extent possible, prior to commencement of construction activities; ✓ Compensation will be provided for temporary loss of land or property, or temporary loss of income. Of particular note, ESS5 clearly defines the status of those who do not have legal ownership. Under this policy, those who do not have formal legal/title or judicial rights to use the land, but still do use public land, are entitled to compensation based on their investment in public land, their labor and lost assets. In exchange, alternative plots or other forms of assistance shall be allocated for their use instead of the land compensation that is provided to those who informally use or occupy the land before the project expires. In case of non-compliance of the law of the Kyrgyz Republic with the requirements of ESS5, the principles and procedures of ESS5 shall apply. Such priority of WB's regulations over national legislation is required for projects financed by the World Bank. 24 The gap analysis of the national legislation of the Kyrgyz Republic and World Bank’s Environmental and Social Standard 5 “Land Acquisition, Restrictions on Land Use and Involuntary Resettlement” is given in Table 2 below. 25 Table 2. Comparing the National Legislation and the requirements of the World Bank Environmental and Social Standard 5 Environmental Relevant to this WB ESS requirements KR National E&S legislation and Social Project (yes or requirements Standards no) ESS 5 – Land Yes ESS5 recognizes that project- The Land Code of the Kyrgyz Acquisition, related land acquisition and Republic states that land acquisition Restrictions on restrictions on land use can have (withdrawal) is an exceptional Land Use, and adverse impacts on communities measure for terminating the right to Involuntary and persons. Project-related land land plot. The Constitution and Resettlement acquisition or restrictions on land several laws refer to the need to use may cause physical compensate for land acquisition displacement (relocation, loss of although there is no specific residential land or loss of shelter), requirement to prepare land economic displacement (loss of acquisition or resettlement action land, assets or access to assets, plans with detailed procedure. leading to loss of income sources Under Kyrgyz national law affected or other means of livelihood), or persons are those who either have both. The term “involuntary formal legal rights to land or assets resettlement” refers to these and/or have a claim to land or assets impacts. that is recognizable under national Resettlement plans are prepared law. The latter this mainly applies to and implemented for any project land titles allocated by relevant that results in economic or authorities, but not yet registered physical displacement. according to the legislation. Users Affected persons eligible for of land or property without proof of compensation: (a) Who have such recognizable claim are not formal legal rights to land or eligible to receive compensation. assets; (b) Who do not have This is one of the main legal gaps formal legal rights to land or existing between national assets, but have a claim to land or legislation and ESF. assets that is recognized or National law is silent regarding recognizable under national law; restoring and improving living or (c) Who have no recognizable conditions of the project affected legal right or claim to the land or households, particular attention to assets they occupy or use. vulnerable persons and additional Compensation alone is not assistance to them. sufficient to restore or improve the livelihoods and social welfare of displaced households and communities. 26 3.0. LAND PROCUREMENT PROCESS 3.1.PROCUREMENT OF LAND FOR KRED SUBPROJECTS The proposed project includes the construction of new small and medium HPPs and rehabilitation of some existing HPPs that will be selected based on several key factors, including: (i) priority investments as determined by the Lowest Cost Power Generation Expansion Plan; (ii) manageable environmental and social impacts and readiness for implementation; and (iii) lack of alternative funding sources on a short-term horizon. The MoE and JSC “Chakan HPP” have prepared a short-list of four small and medium HPPs, including HPPs Karakul (18MW), Tar (9.2MW) and Bystrovka (8.7MW). The first two HPPs in this list are new constructions, while the third HPP will be an equipment replacement only. The counterparty is currently preparing a ground survey and a pre-feasibility study to select finalists, which will include up to two projects. Based on field surveys and site screenings conducted at the project preparation stage, for constructing of Tar HPP according to preliminary assessment more than 9 ha of land is required. While the majority of the land required for HPP construction will be secured through transfer of Government lands. In the case of voluntary donation of land, it will be ascertained that the land owner/user(s) are not subjected to undue pressure for parting of land. Apart from this following shall also be ensured: • All out efforts shall be made to avoid any physical relocation/displacement due to loss of land; • The MoE shall facilitate extending ‘gratitude’ to the land donor(s) in lieu of the ‘contribution’ if so agreed. The same shall be documented in the shape of MoU between donor and utility. • Subsequently title of land shall be transferred in the name of proponent (MoE or its subdivisions). • All land donations (as well as purchases) will be subject to a review/ approval from a committee comprising representatives of different sections including those from the local government and MoE. However, there may be a possibility that in the absence of such readily available government land, State government may have to resort to direct purchase of some private land applying policy on direct purchase as mentioned above. The RPF strictly follows the strategy of avoidance, minimization and mitigation. To achieve that following safeguards are put in place: • The Appropriate Government will endeavor, wherever possible, to secure Government land for projects even if this requires realignment of the proposed route. • Only the minimal amount of land required for HPP will be secured; the land required for a construction of HPP only in rare cases where Government land is not available will other methods of securing land be pursued (voluntary donation or willing buyer and willing seller) that too as last resort. • Even, when Government lands are used, lands assigned to poor people for agriculture purpose will not be resumed unless unavoidable. In case of land acquisition for the project, efforts would be made to procure contiguous parcels of lands which belong various government departments including municipality. Unless it is extremely necessary private land would not be procured. Processes to be followed for taking land for proposed project are as presented in Table 3. 27 Table 3. PROCESS OF LAND PROCUREMENT FOR PROPOSED PROJECT Land Ownership Processes to be followed Government land (revenue land) Or Public • Requiring local municipality to apply for land (Government/ Municipality land) transfer of land to the Rayon/Oblast Land Cadaster of the concerned village/rayon with all requisite documents; • Permission from the Cabinet of Ministers by issuing the law on land transformation; • Conduct social screening to understand the magnitude of social impacts; • Conduct census & socio-economic survey of PAPs, consultations & prepare RAP as per impacts. Direct Land Purchase from Land Owners. • Consent of the Land owner; • Drawing up an agreement on the purchase and sale of a land plot; • Conduct social screening to understand the magnitude of social impacts; • Conduct census & socio-economic survey of PAPs, consultations & prepare RAP; • Pay compensation as per Entitlement. KRED PMO in association with the MoE regional Division would coordinate with the Rayon/Oblast Administration. Propose methods that would be adopted in KRED for securing of land for construction of HPPs. Necessary clearance from relevant department including the State Registration Service would be obtained by MoE KRED before commencement of civil works. 3.2.PROCESS OF SOCIAL ASSESSMENT AND PREPARATION OF RAP On completion of detailed engineering designs, a SIA and RAP shall be prepared based on census of affected persons and socio-economic survey of major impacted PAPs if any. SIA of PAPs will be undertaken after finalization of DPRs for sub-projects to determine magnitude of displacement and prospective losses, identify vulnerable groups for targeting, ascertain costs of resettlement. This RPF processes and provisions will be applied to all the sub-projects under KRED with World Bank financing. The following tasks will be carried out: • Social Screening: Social screening shall be carried out for all the sub projects and other activities covering the rapid preliminary assessment to collect information on proposed land location, area, ownership details, current land use, tenure status of present land use and unit of government having jurisdiction on land etc. The social screening shall be conducted by the consultant/contractors engaged by the PMO. 28 • Census Survey: The census survey shall be carried out for all the affected using a structured questionnaire to record the details of the affected persons. The exercise will help to: (i) prevent further influx of persons within the identified project area; (ii) Assess the magnitude of impact to private assets; and (iii) Assess the extent of physical and/or economic displacement. • Establish and inform Cut-off Date: Following the completion of the census survey, project authorities will notify the cut-off dates for both Titleholder and Non-Titleholders. The cut-off date for informal settlers will be the date of census survey/start of work. This date shall be considered as the date for declaring affected persons eligible to receive entitlements. No persons who move into the project area after the determination of the ‘Cut-off-date” will be eligible for any benefit. Appropriate measures will be put in place to prevent informal settlers moving into the project area after the cut-off date. • Socio Economic Survey: Socio-economic surveys among severely affected people will be carried out to establish baseline socio-economic status and living standards which will become the basis for measuring the changes in the living standards during the project implementation and end of the project implementation. The survey shall cover all impacted project affected people and the survey shall also collect gender-disaggregated data to address gender issues in resettlement. The socio-economic survey shall be carried out using a structured questionnaire, that would capture details of the standard of living, inventory of assets, sources of income, level of indebtedness, a profile of household members, perceived benefits and impacts of the project and resettlement preferences for impacted households likely to be displaced. This information along with the census survey data would facilitate the preparation of RAP to mitigate adverse impact. The census and socio-economic survey shall be conducted by the Consultant engaged by the PMO. • Consultations: Focus group discussions, key informant consultations, community consultations with different impacted groups as well as other stakeholders will be conducted to ascertain their concerns and views for the proposed project. Consultations with women and vulnerable group, in particular, will be carried out to understand their specific concerns and views. Based on the outcome of these consultations, if required, suitable mitigation measures will be incorporated into the project and RAP. The Social Specialist, PMO will also participate in the consultation meetings. • RAP: The RAP, if applicable, will be prepared depending on the outcome of social assessment. The RAP will also include entitlements for different type of impacts, socio economic characteristics of the affected persons, institutional mechanisms, implementation schedules, budgets, grievance redress mechanism, coordination of implementation in conjunction with civil works procurement and construction schedules and monitoring mechanisms. The RAP will comply with the principles outlined in this RPF. • Process of Review: The RAP prepared by the consultant will be reviewed by Social Specialist, PMO and will be approved by the PMO Management. The reviewed RAP report will then be submitted to the World Bank for review and clearance. All approved RAP will be disclosed on 29 KRED website, concerned Executive and Implementing Agencies’ offices, and the World Bank’s portal prior to the initiations of construction work. In all the above processes PMO-KRED would co-ordinate/oversee the process of securing land including implementation of RAP, if applicable. KRED PMO would also ensure that the construction would initiate only after the land has been transferred to respective Implementing Agencies and all monetary benefits are disbursed to eligible PAPs. 30 4.0. RESETTLEMENT ENTITLEMENT MATRIX The entitlements of different categories of eligible persons are presented in a matrix form indicating the type of loss, category of entitled person, unit of entitlements, etc. Affected families will be eligible for compensation depending upon the status of ownership rights and type of loss. The entitlement matrix is presented in Table 4. Table 4 below presents the Entitlement Matrix, which summarizes the types of damages and the corresponding nature and scope of rights, and is in line with national law and ESS5. 31 Table 4. Resettlement Entitlement Matrix Project impact Category Affected assets Compensation Temporary acquisition Land owner Land Lease payment for land plot shall be determined based on the of land for works such market value for the estimated period of temporary impact, taking as construction of into account the rates for the current period, restoration of the land transmission lines or and all assets located on the land to its former state. any other structures associated with the construction of HPP. Tenant Land Restoration, replacement or compensation for all damaged or removed non-land assets. Compensation for land is not envisaged. In case of loss of income, compensation shall be paid in the amount of confirmed lost income. The amount of compensation will be assessed by the independent valuator/valuation company. Informal user Land Restoration, replacement or compensation for all damaged or removed non-land assets. Compensation for land is not envisaged. In case of loss of income, compensation shall be paid in the amount of confirmed lost income. The amount of compensation will be assessed by the independent valuator/valuation company. Permanent acquisition Replacement of land with land of equivalent market value as a priority of land for works such option based on area and fertility, if feasible. In the absence of a land as construction of plot, cash compensation shall be paid in the amount of the market and transmission lines or Land owner Land recoverable value, including fees for registration and re-registration any other structures of rights. associated with the If the rest of the plot is not economically viable, the entire plot will construction of HPP. be purchased at the market value. 32 New lease or compensation for loss of land use rights. Tenant Land Informal user Land Compensation for land is not envisaged. However, if the land is used as a livelihood, such livelihood will be restored through alternate source. All PAPs Assets Cash compensation for assets associated with the affected land, at the recoverable amount, except tenants who is using landowners assets. In addition to compensation for land, PAPs will be allowed to harvest perennial crops and receive cash compensation at the highest market value for the loss of one crop per year (in agriculture) or at the rates of the Ministry of Agriculture of the Kyrgyz Republic, Owner (farmer who has legal whichever is higher. Agricultural crops title to land) In case of relocation, the costs associated with replanting perennials Impact on crops due to will be covered, including the cost of seeds and planting. works such as In case of temporary land use, in case of loss of sowing time, construction of compensation for the lost crop will be paid based on the market transmission lines or value of the preceding crop. any other structures It is allowed to harvest a permanent crop and receive cash associated with the compensation for the loss of crops within one year or at the rates of construction of HPP. the Ministry of Agriculture of the Kyrgyz Republic, whichever is higher, at the highest market rate. Land user (formal tenant and Crops In case of relocation, the costs associated with replanting perennial informal farmer) grasses will be covered, including the cost of seeds and planting. In case of temporary land use, in case of loss of time, compensation for the lost crop will be paid based on the market value of the preceding crop. 33 Fruit trees The price per seedling and cash compensation for the crop value Impact on trees due to multiplied by the number of years it will take for the seedling to works such as reach maturity. Amount of compensation will be determined during construction of Owner (regardless of the legal valuation. transmission lines or status of the land on which the Timber or cash equal to the timber value will be assessed by any other structures trees are planted) independent valuator/valuation company. The felled trees and other associated with the Non-fruit bearing trees remnant shall also be handed over to the owner/ producer after construction of HPP. deducting the salvage value. Permanent building Replacement with a structure of equivalent value or cash acquisition due to works Any structure, including Building owner compensation at recoverable amount and the right to use the such as construction of fence, bathroom, etc. materials. transmission lines or A new lease agreement or compensation equivalent to 3 months rent any other structures Tenant Any structure for the loss of the right to use the structure and one month prior associated with the notice to vacate the rental premises. construction of HPP. Restriction of access to House resident or owner A section of the Restoration of land to its original state. houses due to works residential complex is Compensation in kind, such as alternative car parking for person in such as construction of temporarily damaged or need (affected person). transmission lines or access to the house is any other structures restricted due to Compensation shall be determined based on the minimum wage per associated with the performance of works each week (7 days) of disturbance, calculated pro rata (specific construction of HPP. composition of compensation will be determined in the relevant RAP). Impact on business due Cash compensation for business losses estimated for the period of to works such as Temporary loss of impact based on records for the prior 3-month period or equivalent Business owner (seller or construction of business due to project activity (if no records are available). entrepreneur) transmission lines or activities any other structures 34 associated with the A compensation allowance equivalent to 7 days of commercial construction of HPP. profit or, if the impact is of a longer duration, a compensation Restriction of access to allowance will be paid for the assessed impact. commercial buildings Owner: (i) (Permanent impact) cash compensation for net income for one year, either in the absence of proof of income, or in cases where PAPs had paid flat rate tax, they shall receive compensation in the amount of national minimum wage for a period ranging from 1 Loss of week to 12 months (depending on the time needed to restore income/employment economic activity). due to works such as Business owner (ii) (Temporary impact) Cash compensation for net profit for the construction of All PAPs regardless of Unregistered business corresponding number of months of business downtime. The transmission lines or their legal status estimate should be based on tax return or, if not available, the any other structures Job loss national minimum wage for the corresponding number of months associated with the of business downtime; construction of HPP. Permanent workers/employees: compensation for lost wages equal to actual wage for 3 months, or in the absence of a tax return, a lump sum of national minimum wage for 3 months. For all of the above, some acceptable official documents, e.g., payroll slip or financial statement should be submitted. Major impacts and Physical displacement or loss All heavily affected livelihood restoration of 10% of production assets households, including due to works such as informal settlers construction of In addition to the compensation, an allowance shall be paid covering transmission lines or the national minimum wage for 3 months. any other structures associated with the construction of HPP. 35 Relocation / Transport / accommodation All affected households Compensation for travel and accommodation during the transitional resettlement costs must be relocated period. Vulnerability allowance Any affected land or 1. In addition to compensation for lost property, the vulnerability due to works such as Determined based on social assets allowance shall be set in the form of additional social welfare construction of welfare contributions payments for one year. transmission lines or (disablement allowances, 2. Assistance in collection and transportation of recyclables. any other structures payments to retirees, widows, associated with the female-headed households and 3. Particular attention will be paid to restoring the livelihoods of construction of HPP. registered low-income vulnerable households. households) in accordance Package needs to be disclosed upfront here to be followed in RAP. with the requirements of the law of the Kyrgyz Republic Additional assistance of 5-10% of total compensation per family and those of the WB ESS. applicable only to permanent land acquisition, loss of structure, loss of livelihood/business category of PAPs. Loss of common Community assets/public Community / local self- Compensation for lost resources/assets in agreement with the property resources due assets government / community and restoration of their function. to works such as government construction of transmission lines or any other structures associated with the construction of HPP. Unanticipated impacts Appropriate compensation should be estimated and paid when the during construction, Impact on construction sites or impacts are determined based on the above provisions and WB ESS including temporary assets during construction requirements. outside the impact corridor or All PAPs and livelihood impacts not included in other easement area estimates. 36 If PAPs are responsible for paying any taxes and potential transaction costs associated with land acquisition and resettlement, such taxes or fees will be paid by the local authorities. In addition, the amount covering bank fees will be added to the amount of cash compensation that PAPs will receive from banks. 4.1. VOLUNTARY LAND CONTRIBUTION In cases when only small plots of private land with negligible impact need to be acquired, the project has the right to acquire such land through voluntary contributions, without compensating rehabilitation costs. Community members have the right to contribute land or other assets without requiring or receiving full replacement cost compensation. A voluntary contribution is an act of informed consent. Local governments should ensure that voluntary contributions are only made after PAPs have been informed of other options (including reimbursement of replacement costs) fully and in advance, and that these contributions are made without coercion or pressure. In addition, voluntary contributions are only allowed if PAPs are direct beneficiaries of the investment that caused the impact. Proposals that include voluntary contributions will not be submitted for approval if they are likely to cause significant impairment of income or standards of living of individual owners or users (the amount of land contributed voluntarily should not exceed 5% of that person's total land ownership). The following protocol will specifically govern voluntary contributions to the project: ✓ Voluntary contributions are an act of informed consent in which PAPs are not forced to donate land or other property, pressured, misinformed or tricked into believing that they are obligated to do so, regardless of the legal status of their ownership of the land. ✓ Land acquisition should not result in physical or economic relocation. ✓ Impacts should be minor. Households providing land or other assets are direct beneficiaries of the sub-project; the impact is less than 5% of all productive assets owned by the household in question. ✓ Sites requiring land plots should not depend on local conditions. ✓ The land in question must be free of squatters (settlers on unoccupied or public lands), occupants, or other claims or encumbrances. ✓ Land should be identified by the municipality and the cadastral authority rather than by PMO or other sectoral agencies or project bodies. However, technical project managers must ensure that the land is suitable for the sub-project purposes and that the sub-project does not pose a risk to health or the environment. ✓ Voluntary participation will be confirmed by a PMO document signed by a higher official. The associated process will be determined by PMO and submitted to the Bank for approval. ✓ Evidence of the voluntary nature of the land contribution must be obtained from each person/household that donated the land. This should be in the form of signed statements. ✓ The PMO will also raise community awareness to develop mechanisms to express gratitude to those households that donate land. This will be reflected in the statements. ✓ All else being equal, land contributions from households headed by women or the elderly shall not be accepted. 37 ✓ PAPs should be fully informed that they have the right to refuse to donate land or other private property and will instead be compensated at the replacement cost, and that a grievance mechanism is available for them to express their unwillingness to donate. People are also encouraged to use the grievance mechanism if they have questions or requests, both in writing and verbally. 38 5.0. IMPLEMENTATION MECHANISM 5.1. INSTITUTIONAL ARRANGEMENTS For the implementation of the KRED Project, the Ministry of Energy of the Kyrgyz Republic will develop a Project Management Office (KRED PMO). The MoE PMO will be located at the Bishkek and is headed by the Project Manager. The MoE PMO would also be responsible for driving the implementation of the E&S safeguards along with RAP, if any in KRED. At the field level, the Regional offices of MoE who would be responsible for implementing the technical aspects of the KRED would also be responsible for the implementation of the E&S safeguards along with RAP. In addition, the Contractor implementing the subprojects would also have an Environment and Social personnel to actually carry out the E&S safeguards including implementation of RAP, if any on the ground. For the implementation of the E&S safeguards along with RAP the MoE PMO would be additionally supported by designated Environmental and Social Specialists. However, at the field level, the E&S safeguards along with RAP implementation would be supervised by the designated Technical Supervisors attached to the Regional office implementing the project. The designated specialists would be trained on E&S aspects and the implementation requirements of the RAP in sub-projects under KRED. The responsibilities of said specialists shall be as follows: • Shall be responsible for providing MoE PMO with E&S inputs on the planning and implementation of the project; • Shall coordinate with the Regional Offices of MoE in case of private land procurement is required for the project; • Shall be responsible for supervising the implementation of the Environmental and Social Management Plans including the Resettlement Action Plan (if any), Labor Management Plan and the Stakeholder Engagement Plan; • Shall be responsible for coordinating training sessions and awareness campaigns for improving awareness on E&S issues in the MoE; • Shall formulate training modules and impart training for Regional level staff; • Shall be coordinate with the regional offices for imparting such training; • Shall be responsible for coordinating between different departments i.e. the Land Cadaster and State Registration Service for land procurement; • Shall be the custodian of the Grievance Redress Mechanism of KRED and maintain the process of grievance redressal. They shall maintain the records of all the grievance and action taken; • Shall be responsible for monitoring the E&S safeguards along with RAP implementation and reporting that same back to the MoE management and the World Bank Periodically; • Shall coordinate with the different agencies appointed by the KRED PMO, to implement the E&S safe guards along with RAP, if any. The Contractor would also have an Environmental Engineer and a Social Specialist in the team who is implementing the sub-projects. The respective contractor would be responsible for the submission and implementation of Construction - Environmental & Social Management Plan (C-ESMP) as well as provisions of ESMP along with RAP, if applicable as provided in the contract document and also coordinating with the respective Department for necessary statutory clearances if required. The responsibilities of said specialists shall be as follows: • Shall be responsible for planning and implementation of the ESMP (including C-ESMP/LMP) along with RAP if any; • Supporting the MoE Regional Office to coordinate with the local municipalities’ clearance and other statutory clearances e.g. tree cutting/trimming, etc; 39 • Reporting the ESMP along with RAP, if applicable Implementation to the MoE Regional Office; • Coordinate with the External Agency, if any the process and progress of the implementation of the ESMP along with RAP, if applicable; The capacity building of the KRED would include both augmentation of the present institutional structure of MoE PMO as well as carrying out training of the personnel to be involved in the project implementation on E&S issues along with RAP in KRED. 5.2. IMPLEMENTATION ARRANGEMENTS As mentioned in earlier section the MoE PMO would be responsible for the implementation of the RAP, if any in KRED. At the field level, the Regional offices of MoE would be responsible for supervising/coordinating the implementation of RAP in sub-projects. The Contractor implementing the subprojects would actually carry out the implementation of RAP, if any on the ground. The major duties and responsibilities of the MoE PMO are: • Ensure preparing and implementing all social aspects in concerned sub-projects, • Ensure documentation of social screening exercise, • Ensure documentation of census &socio-economic surveys, • Ensure robust assessment of social impacts particularly impacts on vulnerable, women and common properties, • Ensure documentation of consultations with different groups of affected persons specifically, women and vulnerable groups, and other stakeholders, • Coordinate and ensure land availability and timely transfer of land parcels, • Obtain no objection from concerned agencies wherever applicable, • Ensure timely preparation of RAP as per identified impacts, • Ensure public disclosure of all E&S safeguards’ documents, • Provide guidance and necessary help and overall responsibility at the site in matters related to resettlement and rehabilitation, • Ensure redressal of grievances through co-ordination with GRC members and project affected persons and timely convening of GRC meetings, • Monitor all these aspects through a detailed checklist 5.3. BUDGET FOR RPF IMPLEMENTATION It is proposed to allocate adequate budget for land acquisition compensation under project. The budget estimates and its sources will be reflected in RAP. Estimated cost of RAP implementation including land cost payable to PAPs may be at around 1% of total project cost depending on the extent of social issues involved. It is not possible to estimate the exact number of people who may be affected at this stage, as technical designs and details have not yet been developed. Therefore, it is not possible to provide an approximate budget for the total resettlement costs that may be associated with the implementation of this project. However, when these locations are known upon completion of social screening of a particular plot, information on specific impacts, income of individuals and households, the number of people affected and other demographic data will be available. Detailed 40 and accurate budgets for each RAP will be prepared by the PMO. Each RAP will contain a detailed budget that will include the costs of the following: • Compensation may include, for example, costs of land, equipment, crops; construction of structures. • Resettlement costs may include, for example, PAP resettlement costs, PAP resettlement administrative costs. • Income restoration costs may include, for example, temporary income support for PAPs. Compensation payments will be made at the expense of the project amounting of 1% of project total cost or US $545 000. In case of lack of funds for compensation payment, respective Implementing Agencies such as Chakan HPP will cover the compensation costs under Component 1 and the NEGK will cover the costs of Component 3, if needed. As well the MoE PMO will be the responsible for the implementation of the RPF, and the administrative costs associated with payroll, training and capacity building, monitoring and evaluation will be covered by the project under Component 4. 6.0. GRIEVANCE REDRESS MECHANISM Grievance Redress Mechanism is an integral part of the institutional arrangement in relation to social safeguard issues. A three -tier consumer grievance mechanism will be established at MoE PMO and this will also be a channel for the affected to file the grievances. To effectively address grievances related to ESMP implementation including RAP, three GRM bodies are proposed to be established. Territorial department of the energy companies at the first level, who are responsible for helping members of the community and other social work (conflict resolution, overall community upkeep, etc.). Their responsibility is to receive/register a grievance, then communicate it to the PMO and assist in the process of reviewing and responding to applicants. At the second level, the PMO Social Specialist will register grievance in the Grievance Log, together with the PMO staff will review and respond to the applicant. The Social Specialist of the PMO will report on the status of handling complaints on a quarterly basis. At the third level a Grievance Redress Commission (GRC) will be formed, including the MoE KR and PMO representatives, district and local level office managers, and one village leader as needed. GRC will resolve issues that were not resolved at the first and second levels or matters that came directly to the PMO or MoE. To promote the transparent and efficient implementation of the project, the PMO and MoE KR will accept and investigate queries from any Project-affected parties, including anonymous queries. If PAP objects against a decision of the 3rd level commission, the PAP may apply to court. 41 Table 5. Grievance Redress & Feedback Matrix Form of Time for grievance To whom is the grievance filed Grievance management procedure submission handling THE FIRST LEVEL Verbal, 1.Registration in a Grievance Log with Territorial department of an written, in indication of date and time; energy company electronic 2. A secretary of a local territorial 5 days Address: format department shall register a Tel.: grievance; Fax: 3. An applicant is provided a feedback; E-mail address: 4. If a grievance is not satisfied, the Secretary responsible for grievance is redirected to the maintaining the GRM Log: central level. THE SECOND LEVEL Verbal 1. PMO Social Specialist registers Project Management Office Written grievances / proposals in the Grievance Address: In electronic Log; Tel.: format by 2. Maintains and monitors the process of Fax: filing an e- reviewing and responding to complaints; E-mail address: application 3. Quarterly the PMO Social Specialist Social specialist responsible for reports on the status of work with maintaining the GM Log: grievances to the MoE KR and World Bank. 4. Consideration of the grievance may 7 days require additional verification of the issue, including the collection of additional documents; 5. If necessary, an information on the status of grievance review in written form is filed with the higher authority on a monthly basis (depending on the nature of the issue); 6. A grievance at this level must be resolved. THE THIRD LEVEL Verbal 1. Unresolved or dissatisfied grievances at Grievance Redress Written the second level will be reviewed by the Commission (GRC) at the In electronic GRC. PMO level format by 2. If the complainant will not satisfy with Address: filing an e- the GRC resolution, he/she may apply to Tel.: application the court. Fax: 14 days E-mail address: Social specialist responsible for maintaining the GM Log: 6.1. GRIEVANCE REDRESS SYSTEM The established GRC for KRED under the chairmanship of PMO Chief Engineer along with the Social Specialist shall be used to monitor and review the progress of implementation of ESMP including RAP, if any of each sub-project. This Committee should meet every quarter to review the progress made in the implementation of the ESMP including RAP, if any of each sub-project and to solve any grievances of the PAPs. 42 6.2. COURT LAW The PAPs who are not satisfied with the decision/mechanism has the freedom to move court of law at any stage for redressal of their complaint. In case it is referred to court, the above referred GRM shall cease to take cognizance of complaint. 6.3. HANDLING SENSITIVE COMPLAINTS Taking into account the standards for prevention of SEA/SH, which the World Bank requires to be observed within all projects financed by the World Bank, these standards will be observed, and actions will be taken to raise awareness of SEA/SH prevention and suppression. SEA/SH issues require some additional actions: • The SEA/SH factor will be taken into account when hiring Social Specialist expected to work in the PMO. • Social Specialists will be briefed on SEA/SH issues. • In addition to socio-cultural peculiarities and methods of non-violent communication in the process of staff training, SEA/SH issues will also be on the agenda. • A grievance redress mechanism will be available that will ensure the confidentiality of personal information. • Outreach activities will be held to inform women about this mechanism. • The principle of confidentiality of the grievance mechanism will be included in all information materials. Additional risk mitigation measures will be used in proportion to the risk during project implementation. Contractors will be responsible for developing workforce management procedures, health and safety plans, and SEA/SH protocols, which will apply to own employees and subcontractor employees working on the project. These procedures and plans will be presented to the MoE PMO for review and approval prior to permitting the contractors to mobilize for construction works. When entering into agreements, all contractors will be required to commit themselves not to use child and forced labor and to accept SEA/SH mitigation measures. MoE/PMO staff responsible for contractor supervision will monitor and report on absence of forced labor and SEA/SH incidents. All personal data and complaints received under the GRM will be handled confidentially, unless the person who submitted a complaint agrees to disclose his/her personal information. In particular, confidentiality will be respected with regard to sensitive matters and SEA/SH-related complaints received from local residents. The GRM system will include special channels for submission of SEA/SH complaints and grievances, including complaints of sexual harassment, sexual exploitation and sexual abuse, and employment-related complaints. Project affected parties will be made aware of the channels for receipt and response to SEA/SH complaints, while maintaining a high level of confidentiality, during consultation meetings and during project implementation. A training on identification of cases of gender-based violence and handling SEA/SH-related inquiries, complaints and requests will also be conducted for the Social Specialist by an expert. 43 Once a Social Specialist is hired, his/her email address and telephone number will be passed to project affected parties during consultations and using various stakeholder engagement methods. The Social Specialist will be responsible for addressing such types of complaints as a matter of priority, with diligence, respect for data protection and confidentiality when forwarding a complaint to the PMO management and following up. 6.4. WORLD BANK GRIEVANCE REDRESS SERVICE Communities and individuals who believe they have been affected by a World Bank-supported project can submit complaints using the existing project-level grievance redress mechanisms or the World Bank Grievance Redress Service (GRS). The GRS ensures that grievances received are dealt with in a timely manner to resolve any project-related issues. Affected communities and individuals may submit a complaint to the World Bank's Independent Inspection Panel, which is to determine whether any harm has occurred resulting from the World Bank's non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought to the attention of the World Bank and the management has had an opportunity to respond. For information on how to submit a complaint to the World Bank's corporate Grievance Redress Service (GRS), visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress- service. For information on how to submit a complaint to the World Bank’s Inspection Panel, visit: www.inspectionpanel.org. 7.0. MONITORING AND EVALUATION Monitoring& evaluation is an integral part of successful implementation of the RAP activities. Internal monitoring will be carried out by the Social Specialist, MoE PMO. Data collected for monitoring activities shall be suitably analyzed for project management and learning. Key progress indicators (indicative) for monitoring RAP implementation are as given below: • disbursement of compensation and assistance to PAPs, • establishment of grievance mechanism (including processes and timeline for redressal of grievances), • consultation meetings with PAPs and communities regarding resettlement and rehabilitation issues, • other monitoring indicators will be considered as per the requirement. 7.1. INTERNAL MONITORING AND EVALUATION The MoE PMO through the respective Regional Offices would monitor the implementation of the environmental and social safeguards in all the sub-projects to ensure conformity to the requirements of the ESMF/ESIA and ESMP including RAP. The internal monitoring would be carried out through the sub-project Monthly Progress Reports (MPR) submitted by the Regional Offices of MoE implementing the sub-project. The designated Social Specialist of the MoE PMO would also visit the site regularly for the purpose of monitoring and supervision. The reporting would capture information from the Contractors/Implementing Agency to Regional Offices and 44 through a graduated process of consolidations, analysis and assessment, a monthly progress report will be send by the Regional Office to the Social Specialist at MoE PMO. The MoE PMO would review these monthly reports and identify technical, managerial or regulatory and safeguard issues with regards to the compliance of the ESIA/ESMP including RAP provisions. A corrective action plan would be developed by the MoE PMO and debated internally to determine the appropriate interventions. These interventions would be conveyed to the MoE Management through a Quarterly report for approval and subsequently implemented by MoE PMO. The PMO would prepare a quarterly progress report (QPR) with ESMP compliance status and Semi-annual monitoring report and present it to the MoE and World Bank 7.2. EXTERNAL MONITORING AND EVALUATION External monitoring and evaluation of the impact of resettlement activities will be conducted twice i.e. once during the implementation of RAP (mid-term) and the other at the end of the completion of RAP implementation activities. For this purpose, PMO may engage an external independent agency. The monitoring &evaluation will focus on: • land acquisition or direct purchase of land (success, timeline, constraints, etc), • implementation of various RAP activities, • income restoration of affected persons, • grievance handling mechanism, etc. 8.0. STAKEHOLDER CONSULTATION AND DISCLOSURE 8.1. STAKEHOLDER CONSULTATIONS HEARINGS The project will promote active engagement of the public and stakeholders, including the exchange of information and decision making during the preparation and implementation of the RPF/RAP. In accordance with ESS10, the MoE held public consultations in selected sub-projects. The stakeholder consultation workshops have been conducted at Karakul city on 28th of January 2023 in the office of the Toktogul Cascade HPP, the same day in the hall of school, village Sai, Kara-Kulzha rayon of Osh oblast, in the village of Nur, Kemin city dated 30th of January 2023 and on 31th January in Bishkek in the office of NEGK. Detailed presentation on draft ESF documents (including ESMF, RPF, SEP, LMP and ESCP) was made which was followed by discussion and suggestions by the participants. The suggestions were noted and incorporated suitably in the munities of public consultation which are attached to the ESMF/RPF document. In order to make the RAP preparation and implementation process transparent, Executive summary and salient features of RPF shall be translated into Kyrgyz language and disclosed on the Project’s, MoE and Implementing Agencies’ websites, site offices for wider dissemination. The documents available in the public domain will include Entitlement Matrix and RAP (summary in Kyrgyz) and the list of affected persons eligible for compensation. Copy of all documents will be kept in PMO for ready reference. As per Access to Information Policy of the World Bank, all safeguard documents will also be disclosed and will also be available on the World Bank’s info shop. In total, the public consultation meetings were attended by 153 people, out of them 19 women. The meeting provided brief information on the project, its components, implementing agencies and draft documents on the management of socio-environmental risks associated with the project. 45 In the course of public consultations, the meeting participants were provided with information on the project, its expected environmental and social impacts, proposed mitigation measures, procedure of environmental and social assessment. The final documents will be published on the website of the Ministry of Energy of the Kyrgyz Republic and respective Implementing Agencies’ websites. Detailed information about the public hearings, as well as discussions on the project documents are presented in the attached minutes of the meeting (Annex 7). 8.2. DISCLOSURE In order to make the RAP preparation and implementation process transparent, Executive summary and salient features of RPF shall be translated in local Kyrgyz language and disclosed on the KRED, MoE, Implementing Agencies’ websites, site offices for wider dissemination. The documents available in the public domain will include Entitlement Matrix and RAP (summary in Kyrgyz) and the list of affected persons eligible for compensation. Copy of all documents will be kept in PMO for ready reference. As per Access to Information Policy of the World Bank, all safeguard documents will also be disclosed and will also be available on the World Bank’s info shop. 46 APPENDICES APPENDIX 1: EXPECTED SOCIAL IMPACT SCREENING REPORT (The report should be brief) Sub-project title _______________________________ Sub-project location _________________ (Specify the implementation site with indication on the map/diagram with photos included) Type of activity: __________________________________________ (New construction, reconstruction, rehabilitation, maintenance) Estimated cost ____________ Scheduled commencement date: _______________________________ Engineering drawings/characteristics reviewed: ____________________ Checklist: No. Possible impact factor (Yes / No) 1. Does the sub-project involve private land? Is a physical or economical relocation of local residents or businesses required? Is a 2. forced land acquisition expected? Will it affect assets? Is it necessary to determine the level of assessment of the institutional resources required 4. for safeguarding? 5. Are there any third-party assets at the sub-project site? 6. Are there any disputed territories? Will any feeder roads and footpaths to residences and commercial structures be available 7. during construction? Will the construction result in changes in the social environment, will the income of 8. businesses and the population be reduced? Will the implementation of the planned construction affect the population health and 9. bring harm to anyone? 10. Will the sub-project cause protests and concerns among residents? Will the living conditions of the population, its values and way of life be adversely 11. affected? 12. Will the sub-project cause disparities between population groups? 13. Is there a high degree of public interest in the sub-project? Is there any evidence of past involuntary resettlement impacts in the area that warrants 14. corrective action for unmitigated past resettlements? 15. Is this sub-project related to any other infrastructure development project? It is to be determined if a RP is required based on the checklist above. Recommendations: Based on the answers to the questions, it is to be determined whether further actions are required or whether the WB ESS5 procedures will apply ______________ Completed by (full name and contact information): _______________________________________ Signature: _________ Date: ________________________ 47 APPENDIX 2: PAP CENSUS FORM AND LAND INVENTORY Household interviews Family Does the Full Gender Marital status and Employed Rented or family Age provider Family income level name education level own housing receive social M/F Yes No Yes No benefits? 1. 2 3 Consultant’s full name: __________________________________ Signature: _______________________ Date: ___________ 48 APPENDIX 3: PAP LAND ASSET INVENTORY Location _______________________________________________ Date: ___________________ Total area of land owned by the % loss of assets, (m², m, pcs., Other losses Area of the Full name Number of family, including etc.) (specify the type and Loss of (indicate the Interview plot to be Total of head of family property rights, quantity housing Crop losses type of loss: no. acquired, loss, % household members irrigated farming assets: structures, fences, wells, stock, (m2) rented housing, m2/ha or dry land etc.) building, etc.) farming Fruit trees, Yield Other Non-recoverable Temporary type and losses (specify) quantity (pcs.) 1. 2. INTERVIEWER’S FULL NAME ________________________ Signature ____________________ / Date ________________________ / APPENDIX 4: PAP COMPENSATION ENTITLEMENT Compensation for other Compensation for crops Compensation for land Compensation for construction assets and losses (wells, and trees business, etc.) Full name Interview size size Unit Unit Unit of head of Unit no. (m2 (m2 price price price household price Ownership/title Ownership/title Quantity, Title Quantity, Title or ha) or (m2 (m2 (m2 (m2 or (yes/no) (yes/no) m2 or ha (yes/no) m2 or ha (yes/no) ha) or or or ha) ha) ha) ha) 1. 2. INTERVIEWER’S FULL NAME ________________________ Signature ____________________ / Date ________________________ / 49 APPENDIX 5: CRITERIA AND FORM FOR VOLUNTARY CONTRIBUTION (DONATION) OF LAND District / Oblast: LSG: District / Town: Sub-project title: Date of public hearing Sub-project Land Land owner's full name: beneficiary: Yes / ownership: No Gender: Age: Occupation: Address: The ratio of Description of land to be Affected affected land to acquired under the sub- Total land area: Map coding, if any: area: the total area of project: owned land: Description of the current annual crop production on land and description of project impact: Details Quantity − Trees to be cut down − Fruit trees − Trees used for other economic or domestic purposes − Mature forest trees −… Describe any other assets that will be lost or need to be relocated to implement the project: The value of the contributed property: Will the contributed land/asset amount to less than 5% of the total land/property? Expression of gratitude from LSG: By signing this form, the PMO representative certifies that the contribution of land is voluntary and in accordance with the protocol agreed with the World Bank. By signing this form, the local self-government (representative) hereby confirms that the contribution of land is acknowledgment and agreed upon with the expression of gratitude, as described above. By signing this form, the land user or owner agrees to contribute assets to the project. The contribution is voluntary. If the land user or owner does not wish to contribute their assets to the project, he/she must refuse to sign or provide a fingerprint and demand compensation instead. Date: ......................... Signatures of PAPs (husband and Date: ............................ wife) PMO representative's signature Date: ............................ Local representative’s signature 50 APPENDIX 6. MINUTES OF THE PUBLIC CONSULTATIONS Minutes of the Public Consultations held in Karakul city, Jalal-Abad oblast Minutes of public consultations on raising awareness among the stakeholders and the public on the World Bank “Kyrgyz Republic Renewable Energy Development Project” and Social and Environmental standards applicable to the project Kara-Kul city January 28, 2023 Participants: Tazhimyrzaev E. S. - First Deputy Mayor of the city of Kara-Kul, chairman of the meeting; Mukhambetov E. - Head of the Department of Perspective Development, OJSC "Chakan HPP"; Orozalieva S.M. - Social Consultant, OJSC "Chakan HPP"; Orozaly uulu Zhanybek – Environmental Protection Consultant, OJSC Chakan HPP. 52 people participated in the public consultations: representatives of the mayor's office of Kara- Kul, heads of aiyl okmotu of nearby villages, representatives of the Kambarata HPP-1, Members of the City Kenesh, the public and other stakeholders (the list is attached). There were 4 women participated in the consultations. Chairman of the meeting, First Deputy Mayor of Kara-Kul, Tazhimyrzaev Edilbek Sadyrbekovich greeted the attendees. He introduced the representative of the Ministry of Energy of the Kyrgyz Republic represented by Chakan HPP OJSC and consultants on social and environmental issues and gave them the floor. Mukhambetov E. - presented the project and its components as well as the proposed work. The project is aimed at (i) development and reconstruction of small hydropower plants; (ii) preparation of a pilot project on solar energy, including grid strengthening; and (iii) technical assistance for the preparation of the Kambarata HPP-1 project and consists of the following components: Component 1: Rehabilitation and Construction of Small and Medium-scale Hydropower Plants; Component 2: Technical assistance for the Preparation of Kambarata-1 Large Hydropower Plant; Component 3: Preparation and Grid Integration of Renewable Energy Projects. Orozalieva S.M., Chakan HPP Social Consultant, informed the participants of public consultations about the main social risks of the project. The objective of the social risk assessment is to identify the significant impact of the proposed project on the social environment (positive and negative), to determine the appropriate preventive and mitigation measures aimed at preventing, minimizing or eliminating any expected irreversible impact. The main social risks are: (i) land acquisition and involuntary resettlement required for the construction/modernization of small and medium-sized hydropower plants and (ii) the risk of social exclusion, i.e. the vulnerable and disadvantaged groups will need to be considered in project design to ensure that they have equal access to project benefits and avoid disproportionate negative project impacts. These possible impacts will be addressed, to the extent possible, through a range of measures, including its avoidance and minimization in order of priority. Land acquisition and resettlement issues will be addressed through the implementation of the Resettlement Framework Document 51 (RFP), which provides for replacement cost compensation and other livelihood restoration measures, etc. The Consultant noted that the following documents were prepared during the appraisal phase of the project: (i) Environmental and Social Management Framework (ESMF), (ii) Stakeholder Engagement Plan (SEP), (iii) Labor Management Procedures (LMP), (iv) Resettlement Policy Framework (RPF) and (v) Environmental and Social Commitment Plan. She communicated in detail about the World Bank environmental and social standards applicable to the project, in particular, she pointed on the standards of ESS5: Land Acquisition, Land Use Restrictions and Involuntary Resettlement, and ESS10: Stakeholder Engagement and Information Disclosure. Thus, ESS5 is considered relevant because of the potential investment under Component 1, which may require some temporary and/or permanent physical and economic relocation, or cause changes in land use or access to land in areas of certain activities. For example, they may include the construction or modernization of small and medium-sized hydropower plants, as well as other types of transformative investments to improve the livelihoods of beneficiaries on the ground. However, the nature and extent of interventions and their implications are currently unknown and will become clearer when choosing an investment activity. To implement the above impacts, the project has developed a Resettlement Policy Framework. In case sub-projects and investments for sub-projects are identified, Resettlement Action Plans will be prepared through appraisal. Land Acquisition, Resettlement and Rehabilitation Legislation and Policy, as well as the provisions of ESS5, should be implemented in accordance with the provisions of the RPF. The project does not provide for the forced withdrawal of land. In accordance with the requirements of World Bank ESS10, the Project will implement and apply the Grievance Redress Mechanism (GRM) for the activities of the entire Project. GRM is a process of obtaining prompt, objective information, evaluation, consideration, satisfaction of complaints (applications, proposals, complaints, requests, positive feedback) related to the implementation of the Project. Appeals or complaints can be both individual and collective. This mechanism will also allow anonymous complaints to be submitted and dealt with. Communities and individuals who feel that they are adversely affected by a World Bank (WB) supported project can also file complaints with the World Bank Grievance Redress Service (GRS). The GRS ensures that grievances received are dealt with in a timely manner to resolve issues related to the project. Affected communities and individuals may file their complaint with the World Bank's Independent Review Panel, which determines whether harm has been or may result from the World Bank's non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the attention of the World Bank and Bank management has been given an opportunity to respond. See http://www.worldbank.org/en/projectsoperations/products-and-services/grievance-redress- service for information on how to file grievances with the World Bank Corporate Grievance Redress Service (GRS) . Information on how to file complaints with the World Bank Inspection Panel can be found at www.inspectionpanel.org . Orozaly uulu Zhanybek, OJSC Chakan HPP Environmental Consultant, informed the participants of public consultations about the requirements of the environmental legislation of the Kyrgyz Republic and the World Bank's policy on environmental protection during the implementation of the project. 52 The objective of an environmental assessment is to identify the significant impact of a proposed project on the environment, to identify appropriate mitigation measures aimed at preventing, minimizing or eliminating any expected impact. However, during construction activities, there may be some potentially negative environmental impacts in the project areas that need to be addressed, preventive actions taken and appropriate mitigation measures taken during planning, design, construction, operation and maintenance. Potential negative impacts are relatively minor and the positive economic, social and environmental benefits far outweigh them in the environmental assessment. These impacts are discussed below. The main impact that can be caused as a result of construction works: 1) Soil pollution at the construction site 2) Groundwater pollution at construction site 3) Deterioration of the landscape, destruction of the natural habitat of the animal world 4) Air Pollution and Worker/Public Exposure from Traffic and Heavy Machinery To prevent or mitigate the negative impact of construction, an ESMP is prepared for each rehabilitation facility. All risks of the construction phase are easily controlled and eliminated. They can be minimized with proper design of mitigation measures and control over the Contractor during the performance of the work. Questions - answers: Mamyrov T. A. - Who will pay compensation for the land acquisition? Orozalieva S.M. - If there is a need to allocate a land plot for the construction of a hydropower plant, then this procedure will be carried out in accordance with the legislation of the Kyrgyz Republic on land acquisition and the provisions of the RPF. The acquisition of land plots for the construction of the Kara-Kul hydropower plant will be decided by the mayor's office of the city of Kara-Kul. The cost of acquiring land plots, involuntary resettlement will be borne by local authorities, the project does not provide funds for this article. Turdumatov A.K. – How will the 3 states interact on the management of the Kambarata HPP-1. How will funding be provided and managed? Orozalieva S. M. - Interaction financing the construction of the Kambarata HPP-1 and its management by 3 states (Kyrgykhstan-Uzbekistan-Tajikistan) will be decided at the government level. Within the framework of this project, only the development of the Terms of Reference for updating the Feasibility Study of the Kambarata HPP-1 is financed. Mukhambetov E. - added that within the framework of the project a feasibility study will be prepared and on the basis of which a decision will be made on the contribution of neighboring states for the construction of the Kambarata HPP-1. Kadyraliev T.K. - What amounts are related to the grant, and what amounts to the loan? Orozalieva S. M. – Total amount project is $54 million, of which $42 million is IDA loan funds, $12 million is GCF funds, of which $10 million is a loan and $2 million is a grant. For component 1, US$39 million is provided for the construction of one or two small or medium HPPs, in our case, two potential objects are considered - Karakulskaya HPP and Tarskaya HPP, as well as the reconstruction of Bystrovskaya HPP. For component 2, 2 million US dollars are provided for the development of TOR for updating the feasibility study for Kambarata HPP-1. And 10 million US dollars for the activities of component 3, which will be implemented by NEGK and 2 million US dollars for component 4. 53 Bekbolotov A.K. – At what interest rates do IDA and GCF lend? Mukhambetov E. - Loans are issued for a period of 50 years with a grace period of 10 years, and the rate for the use of credit funds is 0.0%. That is, the Kyrgyz side will take as much money and return it, you can regard this loan as a loan. Darbishev A. A. - A question about the social package, what amount will be the wages of power engineers during the construction and operation of the HPP? Orozalieva S.M. - In case of hiring employees of the energy sector, the salary will be negotiated by the Contractor and each employee individually. The project will not interfere in the internal issues of the contractor. Chynaliev S. B. - Is the feasibility study of the Kambarata HPP-1 ready? Orozalieva S. M. - At present, the Ministry of Energy is preparing Terms of Reference for updating feasibility study Kambarata HPP-1. Shamurzaev B. - What is the capacity of the Kara-Kul HPP? Mukhambetov E. - The Norwegian consulting company Norconsult was hired by the World Bank to develop a preliminary feasibility study for the construction of the Karakul hydropower plant. In December 2022, a preliminary report was submitted, according to which the HPP's capacity will be up to 28 MW. The final pre-feasibility study will be submitted in March 2023. Darbishev A.A. - I propose to inform the population through the media, namely TV about the topics of energy, ecology, etc. to avoid negative impacts. I also propose to create a specialized institute for power engineers and pay great attention to the professional technical education of power engineers. Mukhambetov E. - You correctly noted that the work to inform the population about the electric power industry is carried out on television and in social networks, and this work will not be stopped, but will only intensify. The project also provides for institutional development, which involves training and improving the professional skills of HPP personnel. We will inform the leadership of the Ministry of Energy on your proposals. In conclusion, all the participants supported the implementation of this project. Chairman of the meeting Tazhimyrzaev E.S. Head of Department of Perspective Development OJSC "Chakan HPP" Mukhambetov E.S. Environmental Consultant Orozaly uulu Zhanybek Social Consultant Orozaliev S.M. 54 55 56 57 58 59 60 Photos taken during public consultations in Karakul city 61 62 2. Minutes of the Public Consultations held in Ylai-Talaa village in Kara-Kulzha rayon of Osh oblast Minutes of public consultations on raising awareness among the stakeholders and the public on the World Bank “Kyrgyz Republic Renewable Energy Development Project” and Social and Environmental standards applicable to the project Ylay-Talaa village, Kara-Kuldzha district, Osh oblast January 28, 2023 Participants: Zholdoshov N. Zh. - head of the Yylay-Tala ayil okmotu, chairman of the meeting; Sadykov N.M. - General Director, OJSC "Chakan HPP"; Mukhambetov E. - Head of the Department of Perspective Development, OJSC "Chakan HPP"; Orozalieva S.M. - Social Consultant, OJSC "Chakan HPP"; Orozaly uulu Zhanybek – Environmental Protection Consultant, OJSC Chakan HPP. 46 people participated in the public consultations: representatives of the aiyl okmotu, the public, the local population and other stakeholders (the list is attached). There were 4 women participated in the consultations. Chairman of the meeting, head of the Ylay-Tala ayil okmotu, Zholdoshev Nurbek greeted the attendees. He introduced the representative of the Ministry of Energy of the Kyrgyz Republic represented by Chakan HPP OJSC and consultants on social and environmental issues and gave them the floor. Sadykov N. M. General Director of OJSC "Chakan HPP" - presented the project and its components as well as the proposed work. The project is aimed at (i) development and reconstruction of small hydro power plants; (ii) preparation of a pilot project on solar energy, including grid strengthening; and (iii) technical assistance for the preparation of the Kambarata HPP-1 project and consists of the following components: Component 1: Rehabilitation and Construction of Small and Medium-scale Hydropower Plants; Component 2: Technical assistance for the Preparation of Kambarata-1 Large Hydropower Plant; Component 3: Preparation and Grid Integration of Renewable Energy Projects. Orozalieva S.M., Chakan HPP Social Consultant, informed the participants of public consultations about the main social risks of the project. The objective of the social risk assessment is to identify the significant impact of the proposed project on the social environment (positive and negative), to determine the appropriate preventive and mitigation measures aimed at preventing, minimizing or eliminating any expected irreversible impact. The main social risks are: (i) land acquisition and involuntary resettlement required for the construction/modernization of small and medium-sized hydropower plants and (ii) the risk of social exclusion, i.e. the vulnerable and disadvantaged groups will need to be considered in project design to ensure that they have equal access to project benefits and avoid disproportionate negative project impacts. These possible impacts will be addressed, to the extent possible, through a range of measures, including its avoidance and minimization in order of priority. Land acquisition and resettlement issues will be addressed through the implementation of the Resettlement Framework Document 63 (RFP), which provides for replacement cost compensation and other livelihood restoration measures, etc. The Consultant noted that the following documents were prepared during the appraisal phase of the project: • Environmental and Social Management Framework (ESMF), • Stakeholder Engagement Plan (SEP), • Labor Management Procedures (LMP), • Resettlement Policy Framework (RPF) and • Environmental and Social Commitment Plan. She communicated in detail about the World Bank environmental and social standards applicable to the project, in particular, she pointed on the standards of ESS5: Land Acquisition, Land Use Restrictions and Involuntary Resettlement, and ESS10: Stakeholder Engagement and Information Disclosure. Thus, ESS5 is considered relevant because of the potential investment under Component 1, which may require some temporary and/or permanent physical and economic relocation, or cause changes in land use or access to land in areas of certain activities. For example, they may include the construction or modernization of small and medium-sized hydropower plants, as well as other types of transformative investments to improve the livelihoods of beneficiaries on the ground. However, the nature and extent of interventions and their implications are currently unknown and will become clearer when choosing an investment activity. To implement the above impacts, the project has developed a Resettlement Policy Framework. In case sub-projects and investments for sub-projects are identified, Resettlement Action Plans will be prepared through appraisal. Land Acquisition, Resettlement and Rehabilitation Legislation and Policy, as well as the provisions of ESS5, should be implemented in accordance with the provisions of the RPF. The project does not provide for the forced withdrawal of land. In accordance with the requirements of World Bank ESS10, the Project will implement and apply the Grievance Redress Mechanism (GRM) for the activities of the entire Project. GRM is a process of obtaining prompt, objective information, evaluation, consideration, satisfaction of complaints (applications, proposals, complaints, requests, positive feedback) related to the implementation of the Project. Appeals or complaints can be both individual and collective. This mechanism will also allow anonymous complaints to be submitted and dealt with. Communities and individuals who feel that they are adversely affected by a World Bank (WB) supported project can also file complaints with the World Bank Grievance Redress Service (GRS). The GRS ensures that grievances received are dealt with in a timely manner to resolve issues related to the project. Affected communities and individuals may file their complaint with the World Bank's Independent Review Panel, which determines whether harm has been or may result from the World Bank's non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the attention of the World Bank and Bank management has been given an opportunity to respond. See http://www.worldbank.org/en/projectsoperations/products-and-services/grievance-redress- service for information on how to file grievances with the World Bank Corporate Grievance Redress Service (GRS) . Information on how to file complaints with the World Bank Inspection Panel can be found at www.inspectionpanel.org . Orozaly uulu Zhanybek, OJSC Chakan HPP Environmental Consultant, informed the participants of public consultations about the requirements of the environmental legislation of the Kyrgyz Republic and the World Bank's policy on environmental protection during the implementation of the project. 64 The objective of an environmental assessment is to identify the significant impact of a proposed project on the environment, to identify appropriate mitigation measures aimed at preventing, minimizing or eliminating any expected impact. However, during construction activities, there may be some potentially negative environmental impacts in the project areas that need to be addressed, preventive actions taken and appropriate mitigation measures taken during planning, design, construction, operation and maintenance. Potential negative impacts are relatively minor and the positive economic, social and environmental benefits far outweigh them in the environmental assessment. These impacts are discussed below. The main impact that can be caused as a result of construction works: 1. Soil pollution at the construction site 2. Groundwater pollution at construction site 3. Deterioration of the landscape, destruction of the natural habitat of the animal world 4. Air Pollution and Worker/Public Exposure from Traffic and Heavy Machinery To prevent or mitigate the negative impact of construction, an ESMP is prepared for each rehabilitation facility. All risks of the construction phase are easily controlled and eliminated. They can be minimized with proper design of mitigation measures and control over the Contractor during the performance of the work. Questions - answers: Mamashov B. - Who will build the HPP, how will the contractor be determined? Who will be responsible for the safety of the population? Sadykov N.M. - In accordance with the rules of the World Bank, an international tender will be announced for the design and construction of HPP, respectively, the company that wins the tender will build. When developing the project, all requirements for the safe operation of the HPP will be taken into account. The operating company will be responsible for the safe operation of the HPP. I would also like to note that this project is planned to be implemented at the expense of the World Bank and this bank is one of the most respected banks in the world and all possible risks associated with the construction of this HPP will be taken into account and resolved during the design process. Also, the World Bank will not finance a project that can ruin its reputation. Torogeldiev S. – On what section of the river will the HPP be built? Sadykov N.M. - The HPP will be built on the Tar River, the narrowest section for the dam has been selected, there is a location. This section was offered by the technical consultants of the World Bank on the part of OJSC “Chakan HPP”, which, after their study and evaluation, was included in the project as a potential candidate. But, the exact location will be known only after the development of a feasibility study and detailed design of the HPP. Kalmamatov K. - Our land plots are located on the site where you plan to build HPP, if HPP is built, then our land plots will remain under water, who will pay us compensation for damage? Orozalieva S. - If your land plot is affected during the detailed design, then the local authorities, i.e. aiyl okmotu will have to compensate you for the market value of the land plot or provide an equivalent plot in any other place. The valuation of the land plot will be carried out by an independent appraiser or appraisal company. All land acquisition issues must be completed prior to commencement of construction work. The project will consult with the affected person about their rights to compensation for the damage caused. 65 Alimbekov C . – Our village Say is located almost in the bed of the Tar River and in case of a dam break, our village can be washed away by a stream of water. During the construction of a HPP, what will be the volume of water in the reservoir? During the operation of the HPP, after a certain time, e.g. ten years, is there a risk of the dam breaking? Sadykov N.M. – The volume of the reservoir will be determined after the detailed development of the project. The design will take into account all the risks for the safe operation of the dam. Also, during the operation of the HPP, all measuring instruments and sensors will be installed, which will transmit information about the state of the dam in real time. In accordance with these data, all necessary measures will be taken for the safe operation of the dam and the risk of a dam break will be eliminated. Chomoev Zh. - In our ayil okmotu, almost the entire population is employed in agriculture and there are no other places. When constructing a hydroelectric power plant, will labor from among the local population be involved? Sadykov N.M. – The company that wins the tender for the construction of the hydroelectric power plant will attract labor from among the local population. But what share will be known only at the construction stage. Also, when drafting tender documents, we will oblige the winning company to hire a certain percentage of the workforce from among the local population. Konurbaev B. - If I understand correctly, if the area under the reservoir is flooded, the existing bridge will also be flooded, will it be possible to build a new bridge instead of the old one? Sadykov NM - At the design stage, we will consider the issue of building a new bridge. If there is a need to build a new bridge due to the flooding of the existing one, we will definitely include the construction of a new bridge in the project. All measures will also be taken to improve life in the area where the hydroelectric power station is being built. In conclusion, all the participants supported the implementation of this project. Chairman of the meeting Zholdoshov N. Zh. CEO OJSC "Chakan HPP" Sadykov N.M. Head of Department of Perspective Development OJSC "Chakan HPP" Mukhambetov E.S. Environmental Consultant Orozaly uulu Zhanybek Social Consultant Orozaliev S.M. 66 67 68 69 70 71 72 73 Photos taken during public consultation held in Ylai-Talaa village of Kara-Kulzha rayon, Osh oblast 74 3. Minutes of the Public consultations held in village Nur, Kemin city of Chui oblast Minutes of public consultations on raising awareness among the stakeholders and the public on the World Bank “Kyrgyz Republic Renewable Energy Development Project” and Social and Environmental standards applicable to the project Nur Village, Kemin January 30, 2023 Participants: Chushtukov M. - Vice Mayor of Kemin Uzyurov D.E. - Deputy of the City Kenesh, Chairman of the meeting; Mukhambetov E. - Head of the Department of Perspective Development, OJSC "Chakan HPP"; Orozalieva S.M. - Social Consultant, OJSC "Chakan HPP"; Orozaly uulu Zhanybek – Environmental Protection Consultant, OJSC Chakan HPP. 35 people participated in the public consultations: representatives of the mayor's office of the city of Kemin, the public, the local population and other stakeholders (the list is attached). There were 5 women participated in the consultations. Chairman of the meeting Uzyurov E. greeted the attendees. He introduced the representative of the Ministry of Energy of the Kyrgyz Republic represented by Chakan HPP OJSC and consultants on social and environmental issues and gave them the floor. Mukhambetov E. Head of the Department of Prospective Development of JSC "Chakan HPP" - delivered information about the project and its components as well as the proposed work. The project is aimed at (i) development and reconstruction of small hydro power plants; (ii) preparation of a pilot project on solar energy, including grid strengthening; and (iii) technical assistance for the preparation of the Kambarata HPP-1 project and consists of the following components: Component 1: Rehabilitation and Construction of Small and Medium-scale Hydropower Plants; Component 2: Technical assistance for the Preparation of Kambarata-1 Large Hydropower Plant; Component 3: Preparation and Grid Integration of Renewable Energy Projects. Orozalieva S.M., Chakan HPP Social Consultant, informed the participants of public consultations about the main social risks of the project. The objective of the social risk assessment is to identify the significant impact of the proposed project on the social environment (positive and negative), to determine the appropriate preventive and mitigation measures aimed at preventing, minimizing or eliminating any expected irreversible impact. The main social risks are: (i) land acquisition and involuntary resettlement required for the construction/modernization of small and medium-sized hydropower plants and (ii) the risk of social exclusion, i.e. the vulnerable and disadvantaged groups will need to be considered in project design to ensure that they have equal access to project benefits and avoid disproportionate negative project impacts. These possible impacts will be addressed, to the extent possible, through a range of measures, including its avoidance and minimization in order of priority. Land acquisition and resettlement issues will be addressed through the implementation of the Resettlement Framework Document (RFP), which provides for replacement cost compensation and other livelihood restoration measures, etc. 75 The Consultant noted that the following documents were prepared during the appraisal phase of the project: • Environmental and Social Management Framework (ESMF), • Stakeholder Engagement Plan (SEP), • Labor Management Procedures (LMP), • Resettlement Policy Framework (RPF) and • Environmental and Social Commitment Plan. She communicated in detail about the World Bank environmental and social standards applicable to the project, in particular, she pointed on the standards of ESS5: Land Acquisition, Land Use Restrictions and Involuntary Resettlement, and ESS10: Stakeholder Engagement and Information Disclosure. Thus, ESS5 is considered relevant because of the potential investment under Component 1, which may require some temporary and/or permanent physical and economic relocation, or cause changes in land use or access to land in areas of certain activities. For example, they may include the construction or modernization of small and medium-sized hydropower plants, as well as other types of transformative investments to improve the livelihoods of beneficiaries on the ground. However, the nature and extent of interventions and their implications are currently unknown and will become clearer when choosing an investment activity. To implement the above impacts, the project has developed a Resettlement Policy Framework. In case sub-projects and investments for sub-projects are identified, Resettlement Action Plans will be prepared through appraisal. Land Acquisition, Resettlement and Rehabilitation Legislation and Policy, as well as the provisions of ESS5, should be implemented in accordance with the provisions of the RPF. The project does not provide for the forced withdrawal of land. In accordance with the requirements of World Bank ESS10, the Project will implement and apply the Grievance Redress Mechanism (GRM) for the activities of the entire Project. GRM is a process of obtaining prompt, objective information, evaluation, consideration, satisfaction of complaints (applications, proposals, complaints, requests, positive feedback) related to the implementation of the Project. Appeals or complaints can be both individual and collective. This mechanism will also allow anonymous complaints to be submitted and dealt with. Communities and individuals who feel that they are adversely affected by a World Bank (WB) supported project can also file complaints with the World Bank Grievance Redress Service (GRS). The GRS ensures that grievances received are dealt with in a timely manner to resolve issues related to the project. Affected communities and individuals may file their complaint with the World Bank's Independent Review Panel, which determines whether harm has been or may result from the World Bank's non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the attention of the World Bank and Bank management has been given an opportunity to respond. See http://www.worldbank.org/en/projectsoperations/products-and-services/grievance-redress- service for information on how to file grievances with the World Bank Corporate Grievance Redress Service (GRS) . Information on how to file complaints with the World Bank Inspection Panel can be found at www.inspectionpanel.org . Orozaly uulu Zhanybek, OJSC Chakan HPP Environmental Consultant, informed the participants of public consultations about the requirements of the environmental legislation of the Kyrgyz Republic and the World Bank's policy on environmental protection during the implementation of the project. 76 The objective of an environmental assessment is to identify the significant impact of a proposed project on the environment, to identify appropriate mitigation measures aimed at preventing, minimizing or eliminating any expected impact. However, during construction activities, there may be some potentially negative environmental impacts in the project areas that need to be addressed, preventive actions taken and appropriate mitigation measures taken during planning, design, construction, operation and maintenance. Potential negative impacts are relatively minor and the positive economic, social and environmental benefits far outweigh them in the environmental assessment. These impacts are discussed below. The main impact that can be caused as a result of construction works: 1. Soil pollution at the construction site 2. Groundwater pollution at construction site 3. Deterioration of the landscape, destruction of the natural habitat of the animal world 4. Air Pollution and Worker/Public Exposure from Traffic and Heavy Machinery To prevent or mitigate the negative impact of construction, an ESMP is prepared for each rehabilitation facility. All risks of the construction phase are easily controlled and eliminated. They can be minimized with proper design of mitigation measures and control over the Contractor during the performance of the work. Questions - answers: Moldobekov S. - What will be the capacity of the HPP? Mukhambetov E. - The capacity of the HPP will not increase after the reconstruction, some equipment will be updated, which needs to be urgently replaced. Sultanbaev K. - What is the benefit of the reconstruction of Bystrovskaya HPP? Mukhambetov E. - After the reconstruction of the Bystrovskaya HPP, its reliable operation will increase. Elikbaev T. - It will be necessary to build a bridge across the river, since the old bridge is almost deteriorated. In the event of rehabilitation, transporting construction materials and equipment across this bridge would be difficult and unsafe. Please include the construction of the bridge in the list of works. Mukhambetov E. - This bridge does not belong to the Bystrovskaya HPP, but in view of your proposals, this requirement will be considered and we will try to include the repair of the bridge in the reconstruction project Bystrovskaya HPP. Sargulov N. - What benefit will the population receive from the reconstruction of the Bystrovskaya HPP? Orozalieva S. - First of all, the population will be provided with a stable supply of electricity, a certain part of the local population will be provided with work during the reconstruction of the HPP, and a contribution to the development of the regional economy will also be provided. In conclusion, Vice Mayor Chushtukov I. expressed gratitude to the participants and put the matter to a vote. All the participants supported the implementation of this project. Chairman of the meeting Uzyurov D. 77 Vice Mayor of Kemin Chushtukov I. Head of Department of Perspective Development OJSC "Chakan HPP" Mukhambetov E.S. Environmental Consultant Orozaly uulu Zhanybek Social Consultant Orozaliev S.M. 78 79 80 81 82 Photos taken during public consultation held in Nur village of Kemin city, Chui oblast 83 84 4. Minutes of the Public Consultations held in Bishkek city Minutes of public consultations on raising awareness among the stakeholders and the public on the World Bank “Kyrgyz Republic Renewable Energy Development Project” and Social and Environmental standards applicable to the project Bishkek January 31, 2023 Participants: Artykbaev E. E. - Head of the Department of External Relations and Project Implementation, OJSC "NEGK", Chairman of the Meeting; Kamalova L. - Economist of the 1st category of the Department of External Relations and Project Implementation, OJSC "NEGK"; Orozalieva S.M. - Social Consultant, OJSC "Chakan HPP"; Orozaly uulu Zhanybek – Environmental Protection Consultant, OJSC Chakan HPP. 20 people participated in the public consultations: representatives of OJSC "NEGK" and other stakeholders (the list is attached). There were 6 women participated in the consultations. Chairman of the meeting Artykbaev E.E. greeted the attendees. He introduced the consultants of OJSC "Chakan HPP" on social and environmental issues and gave them the floor. He also informed the participants of the meeting about the project and its components as well as the proposed work. The project is aimed at (i) development and reconstruction of small hydro power plants; (ii) preparation of a pilot project on solar energy, including grid strengthening; and (iii) technical assistance for the preparation of the Kambarata HPP-1 project and consists of the following components: Component 1: Rehabilitation and Construction of Small and Medium-scale Hydropower Plants; Component 2: Technical assistance for the Preparation of Kambarata-1 Large Hydropower Plant; Component 3: Preparation and Grid Integration of Renewable Energy Projects. Orozalieva S.M., Chakan HPP Social Consultant, informed the participants of public consultations about the main social risks of the project. The objective of the social risk assessment is to identify the significant impact of the proposed project on the social environment (positive and negative), to determine the appropriate preventive and mitigation measures aimed at preventing, minimizing or eliminating any expected irreversible impact. The main social risks are: (i) land acquisition and involuntary resettlement required for the construction/modernization of small and medium-sized hydropower plants and (ii) the risk of social exclusion, i.e. the vulnerable and disadvantaged groups will need to be considered in project design to ensure that they have equal access to project benefits and avoid disproportionate negative project impacts. These possible impacts will be addressed, to the extent possible, through a range of measures, including its avoidance and minimization in order of priority. Land acquisition and resettlement issues will be addressed through the implementation of the Resettlement Framework Document (RFP), which provides for replacement cost compensation and other livelihood restoration measures, etc. The Consultant noted that the following documents were prepared during the appraisal phase of the project: • Environmental and Social Management Framework (ESMF), 85 • Stakeholder Engagement Plan (SEP), • Labor Management Procedures (LMP), • Resettlement Policy Framework (RPF) and • Environmental and Social Commitment Plan. She communicated in detail about the World Bank environmental and social standards applicable to the project, in particular, she pointed on the standards of ESS5: Land Acquisition, Land Use Restrictions and Involuntary Resettlement, and ESS10: Stakeholder Engagement and Information Disclosure. Thus, ESS5 is considered relevant because of the potential investment under Component 1, which may require some temporary and/or permanent physical and economic relocation, or cause changes in land use or access to land in areas of certain activities. For example, they may include the construction or modernization of small and medium-sized hydropower plants, as well as other types of transformative investments to improve the livelihoods of beneficiaries on the ground. However, the nature and extent of interventions and their implications are currently unknown and will become clearer when choosing an investment activity. To implement the above impacts, the project has developed a Resettlement Policy Framework. In case sub-projects and investments for sub-projects are identified, Resettlement Action Plans will be prepared through appraisal. Land Acquisition, Resettlement and Rehabilitation Legislation and Policy, as well as the provisions of ESS5, should be implemented in accordance with the provisions of the RPF. The project does not provide for the forced withdrawal of land. In accordance with the requirements of World Bank ESS10, the Project will implement and apply the Grievance Redress Mechanism (GRM) for the activities of the entire Project. GRM is a process of obtaining prompt, objective information, evaluation, consideration, satisfaction of complaints (applications, proposals, complaints, requests, positive feedback) related to the implementation of the Project. Appeals or complaints can be both individual and collective. This mechanism will also allow anonymous complaints to be submitted and dealt with. Communities and individuals who feel that they are adversely affected by a World Bank (WB) supported project can also file complaints with the World Bank Grievance Redress Service (GRS). The GRS ensures that grievances received are dealt with in a timely manner to resolve issues related to the project. Affected communities and individuals may file their complaint with the World Bank's Independent Review Panel, which determines whether harm has been or may result from the World Bank's non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the attention of the World Bank and Bank management has been given an opportunity to respond. See http://www.worldbank.org/en/projectsoperations/products-and-services/grievance-redress- service for information on how to file grievances with the World Bank Corporate Grievance Redress Service (GRS) . Information on how to file complaints with the World Bank Inspection Panel can be found at www.inspectionpanel.org . Orozaly uulu Zhanybek, OJSC Chakan HPP Environmental Consultant, informed the participants of public consultations about the requirements of the environmental legislation of the Kyrgyz Republic and the World Bank's policy on environmental protection during the implementation of the project. The objective of an environmental assessment is to identify the significant impact of a proposed project on the environment, to identify appropriate mitigation measures aimed at preventing, minimizing or eliminating any expected impact. However, during construction activities, there may be some potentially negative environmental impacts in the project areas that need to be addressed, preventive actions taken and appropriate 86 mitigation measures taken during planning, design, construction, operation and maintenance. Potential negative impacts are relatively minor and the positive economic, social and environmental benefits far outweigh them in the environmental assessment. These impacts are discussed below. The main impact that can be caused as a result of construction works: 1. Soil pollution at the construction site 2. Groundwater pollution at construction site 3. Deterioration of the landscape, destruction of the natural habitat of the animal world 4. Air Pollution and Worker/Public Exposure from Traffic and Heavy Machinery To prevent or mitigate the negative impact of construction, an ESMP is prepared for each rehabilitation facility. All risks of the construction phase are easily controlled and eliminated. They can be minimized with proper design of mitigation measures and control over the Contractor during the performance of the work. Questions - answers: Rakhmatov A. – What is the purpose of creating another PMO and spend money on the maintenance of the PMO, when it is possible to entrust the duties of the PMO specialists to NEGK specialists? Orozalieva S. - For all projects financed by international donor organizations, Project Implementation Units are created, which will directly deal with the implementation of project activities. The staff of the PMO should be staffed with highly qualified specialists who will directly carry out project activities, and NEGK employees cannot simultaneously perform their main task and tasks for the project. Also, PMO staff should have relevant experience in their field of activity, as well as experience in projects funded by international organizations. However, in the Project Appraisal Document, it is stated that on the basis of the KEMS PMO it will be possible to additionally recruit staff for the implementation of this project, i.e. one PMO will implement several projects at the same time, respectively, the project funds will be used rationally. In conclusion, Artykbaev E.E. expressed gratitude to the participants and put the matter to a vote. All those participants supported the implementation of this project. Chairman of the meeting Artykbaev E.E. Environmental Consultant Orozaly uulu Zhanybek Social Consultant Orozaliev S.M. 87 88 89 90 91 92 Photos taken during public consultation held in Bishkek 93