RP1618 RESETTLEMENT POLICY FRAMEWORK FOR COMMUNITY AGRICULTURAL RESOURCE MANAGEMENT AND COMPETITIVENESS PROJECT - II YEREVAN March 2014 TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................ 2 LIST OF ABBREVIATIONS........................................................................................................................... 4 DEFINITIONS ............................................................................................................................................... 5 SUMMARY .................................................................................................................................................... 7 1. INTRODUCTION....................................................................................................................................... 7 1.1. Project Description ............................................................................................................................. 7 1.1.1. Project Components ............................................................................................................................7 1.1.2. Project Beneficiaries ............................................................................................................................9 1.2. Rationale for Preparation of a Resettlement Policy Framework ........................................................ 9 1.3. Objective and Principles of the Resettlement Policy Framework ...................................................... 9 1.4. Extent and Scope of the Resettlement within the CARMAC II ........................................................ 10 1.4.1. Extent and Scope of the Resettlement within Component 1 ...................................................................... 10 1.4.2. Extent and Scope of the Resettlement within Component 3 ...................................................................... 11 1.4.3. Conclusion................................................................................................................................................. 11 2. INSTITUTIONAL FRAMEWORK ............................................................................................................ 11 2.1. RA Ministry of Agriculture and Agricultural Project Implementation Unit .................................... 12 2.2. State Governing Organisations ....................................................................................................... 12 2.2.1. Ministries and Committees ........................................................................................................................ 12 2.2.2. Marzpetarans (Regional Authorities) ......................................................................................................... 14 2.3. Local Self-Governing Bodies ........................................................................................................... 14 2.4. Resettlement Action Plan Implementation Unit ............................................................................... 14 2.5. Grievance Redress Committee........................................................................................................ 15 2.6. Non-Governmental Organisations ................................................................................................... 15 2.7. World Bank ...................................................................................................................................... 15 3. LEGAL FRAMEWORK ............................................................................................................................ 16 3.1. Legislation of the Republic of Armenia ............................................................................................ 16 3.2. World Bank Policies ......................................................................................................................... 20 3.3 Comparison of Armenian Laws and the World Bank’s Involuntary Resettlement Policy ................. 21 3.4. Conclusions: Bridging the Gaps ...................................................................................................... 23 4. COMPENSATION ELIGIBILITY AND ENTITLEMENTS ........................................................................ 23 4.1. Compensation and/or Rehabilitation Eligibility ................................................................................ 23 4.2. Compensation and Rehabilitation Entitlements ............................................................................... 24 4.3. Valuing Affected Assets ................................................................................................................... 26 4.3.1. Valuation of Land and Structures .............................................................................................................. 26 4.3.2 Valuation of Crops ...................................................................................................................................... 27 4.3.3. Valuation of Trees ..................................................................................................................................... 27 5 IMPLEMENTATION ARRANGEMENTS.................................................................................................. 27 5.1. Resettlement Requirements and Screening Process during Design Stage .................................... 27 5.2. Types of Resettlement Action Plans ................................................................................................ 28 5.3. Process of the Resettlement Action Plans Preparation and Approval ............................................ 29 5.4. RAP Information Requirements ....................................................................................................... 29 5.4.1 Census and Inventory of Project Affected Persons .................................................................................... 29 5.4.2. Identification of Losses .............................................................................................................................. 30 5.4.3. Baseline Survey......................................................................................................................................... 30 5.5. Resettlement Action Plan Implementation Process ........................................................................ 30 6. COMPLAINTS AND GRIEVANCES ....................................................................................................... 31 7. PUBLIC PARTICIPATION....................................................................................................................... 33 8. SUPERVISION AND MONITORING ...................................................................................................... 33 9. COSTS AND BUDGETS ......................................................................................................................... 34 ANNEXES ................................................................................................................................................... 35 ANNEX 1: PROVISIONAL ENTITLEMENT AND COMPENSATION MATRIX .......................................... 35 ANNEX 2: CHECKLIST FOR CENSUS INFORMATION ........................................................................... 39 ANNEX 3: LIST OF DATA FOR CENSUS SURVEY .................................................................................. 40 ANNEX 4: LIST OF DATA FOR INVENTORY OF LOSSES ...................................................................... 41 ANNEX 5: FORMATS FOR RAP AND ABBREVIATED RAP ..................................................................... 43 ANNEX 6: DATA FOR BASELINE SURVEY .............................................................................................. 44 ANNEX 7: GUIDELINES FOR VALUATION AND COMPENSATION OF PROPERTY ............................. 45 ANNEX 8: DOCUMENTS CONSULTED .................................................................................................... 52 ANNEX 9: CONTRACTOR FORMS FOR TREE AND STRUCTURE REMOVAL ..................................... 53 Annex 10. MINUTES OF PUBLIC CONSULTATION MEETING ................................................................ 57 LIST OF ABBREVIATIONS APIU Agriculture Projects Implementation Unit State Agency AICW Aggregative Indicators for Civil W orks CARMAC I Community Agricultural Resource Management and Competitiveness Project I CARMAC II Community Agricultural Resource Management and Competitiveness Project II DC Design Consultant DP Displaced Persons FBO Food Business Operators GoA Government of Armenia LA Local Authorities MST Marz Support Team OP Operational Policy PAP Project Affected Person PC Public Consultations PDO Project Development Objective PMLDP Pasture Management and Livestock Development Plan PC Public Consultations PUC Pasture User Cooperative RA Republic of Armenia RA MoA Ministry of Agriculture RAP Resettlement Action Plan RAPIU Resettlement Action Plan implementation Unit RESCAD Rural Enterprise and Small-scale Agricultural Development RPF Resettlement Policy Framework VSC Veterinary Service Centers WB World Bank DEFINITIONS The terms used in this document are defined as follows:  "Resettlement Policy Framework" refers to the present document which is the overall Policy Framework for Resettlement of Project Affected Persons for the CARMACII. The Resettlement Policy Framework describes the process and methods for carrying out resettlement under the Project, including compensation, relocation and rehabilitation of persons affected by the Project;  Project Affected Person (PAP) includes any person or persons who, on account of the execution of the Project, or any of its components or parts thereof, will have their right, title, or interest in any house, land (including residential, agricultural and grazing land) or any other fixed or moveable asset acquired or possessed, in full or in part, permanently or temporarily, adversely affected; or business, occupation, work, place of residence or habitat adversely affected; or standard of living adversely affected;  The cut-off date for eligibility is publicly announced by the relevant Authorities of the Republic of 1 Armenia (RA) and the census of PAPs will be undertaken immediately after this announcement ;  For purposes of this policy, “involuntary” means actions that may be taken without the displaced person’s informed consent or power of choice;  "Resettlement" is the general term related to land acquisition and compensation for loss of assets, whether it involves actual relocation, loss of land, shelter, assets or other means of livelihood and includes all the measures taken to mitigate any and all adverse impacts of the Project on PAPs’ property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation;  “Resettlement effects” includes the loss of crops and incomes, in addition to physi cal relocation. A resettlement effect is significant when more than 200 people are physically displaced and/or 10% or more of their productive assets are lost. A resettlement effect is considered "minor" if fewer than 200 people are displaced and less than 10% of their productive assets are lost;  "Relocation" means the physical relocation of PAPs from their pre-project place of residence;  "Replacement Value" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account;  "Compensation" means payment in cash or in kind of the replacement value of the acquired property;  "Rehabilitation" means the compensatory measures provided under this RPF other than payment of the replacement value of acquired property;  “Land” includes anything growing on or permanently affixed to land, such as crops and buildings; 1 Normally, the cut-off date is the date the census begins. However, the public announcement by the relevant GoA Authorities will be considered as the cut-off date here; see also OP 4.12, footnote 21  "Land Acquisition" means the process whereby a person is compelled by a public agency to alienate all or part of the land s/he owns or possesses to the ownership and possession of that agency, for public purpose, in return for a compensation;  "Right-of-Way Easement" means the process whereby the owner or possessor of land is compelled to permit the continued use of a part of his land as a means of transit of persons or services, in return for a compensation, but where the ownership of the land remains unchanged;  “Servitude”, according to Armenian definitions, is the right of the Government to use land for the public projects that benefit the community;  "Grievance Redress Committee" means the committee established at Project level to hear the complaints and grievances of PAPs regarding resettlement, including acquisition of land, houses and other assets, and loss of livelihoods caused by the Project. SUMMARY 1. The purpose of the Resettlement Policy Framework (RPF) is to provide the general guideline for the Community Agricultural Resource Management and Competitiveness Project II financed by the World Bank (WB) for timely, adequate and efficient action to address, and minimise and/or mitigate, adverse impacts, in particular resettlement and resettlement issues, if and when these occur. In accordance with the WB resettlement policy, a RPF needs to be prepared for the projects with multiple components if the extent and location of resettlement cannot be known at appraisal, which is the case with the CARMAC II. The RPF is prepared in the framework of World Bank’s policy on Involuntary Resettlement (OP4.12) and Republic of Armenia (RA) legal requirements. 1. INTRODUCTION 1.1. Project Description 2. The Government of Armenia (GoA) has requested support from the World Bank (WB) to implement a Community Agricultural Resource Management and Competitiveness Project II (CARMAC II). This project would follow on from the Bank-funded projects in the agriculture sector, particularly the on-going CARMAC project and the previous Rural Enterprise and Small-scale Agricultural Development (RESCAD) project. The proposed Project Development Objective (PDO) is to: (i) improve productivity and sustainability of pasture and livestock systems in targeted communities; and (ii) increase the marketed production from selected livestock and high value agri-food value chains. This will be achieved through: (i) developing and implementing participatory management plans to improve productivity and sustainability of pasture and livestock systems in targeted communities in upland areas; (ii) linking producers and processors to markets, focusing on selected livestock production (milk and meat) and high value produce (fruit and vegetables); and (iii) supporting development of specific public sector institutions that are essential to increase the marketed production from these products. 1.1.1. Project Components 3. CARMAC II project consists of four components with World Bank funding of US$30 million over five years. Component 1: Community/Pasture Livestock Management System. 4. The component objective is to continue the implementation of an efficient and sustainable community managed pasture/fodder based livestock production system in communities where livestock is a primary source of livelihood and where there is a strong interest in improving their pasture production. Three main component activities will be implemented: a) Development of Sustainable Pasture/ Livestock Management Plans. Pasture User Cooperatives (PUCs), comprising all community pasture users, will be created in up to 100 communities in the 8 Marzes with significant pasture areas (out of 10 in the country). The PUCs will be responsible for developing and implementing Pasture Management and Livestock Development Plans (PMLDPs), with the participatory process supported by Marz Support Teams (MSTs) and technical experts. The PMLDP will identify: (a) measures to improve pasture productivity, such as rotational grazing, protecting areas for regeneration, pasture rehabilitation, improving access to remote pastures, and needs for supplementary fodder production; (b) stock watering points for a more balanced use of grazing areas; (c) animal health requirements and breed improvement measures; (d) agricultural machinery for hay and fodder production; (e) measures to improve the marketability of livestock products; (f) training requirements; and (g) responsibilities for implementation of the planned activities, targets and indicators. b) Community Fund for Implementation of Plans. Up to 300.000$ grants per community will be provided for each PUC to implement their PMLDP. Funding may include financing of: (a) infrastructure to access and use remote pastures, such as spot road improvements, stock watering points, shelters and stock- pens; (b) milk collection points with cooling equipment; (c) machinery to produce and harvest fodder; (d) costs of rehabilitation measures for degraded areas such as fencing, weed and shrub control, and re- seeding; (e) fodder production; (f) community-based disease control programs including for market- limiting diseases, zoonoses and parasite control; (g) artificial insemination; (h) training and advisory services; and (i) PUC support, such as management training, office equipment and furnishings. c) Women/Youth Special Support Program. A special training and mobilization activity would target women and rural youth with the aim of enhancing their participation in the PUCs and communal decision- making processes around livestock and pasture management and to foster engagement by the younger generation in livestock production. This sub-component will continue each year throughout the project and will be linked to membership of the PUCs. Component 2: Value Chain Development. 5. The component objective is to increase the ability of Armenian agricultural producers and processors to meet domestic demand and access international market opportunities in the food value chains of fodder- based milk and meat, and in processed fruit and vegetables where Armenia has an advantage. The project will identify bottlenecks such as knowledge gaps in market requirements and quality standards, inadequate facilities and equipment to meet national and/or international food safety requirements and product standards, and weak linkages between the processors and producers. To address the bottlenecks, targeted funding would be provided to: (i) support producer cooperatives to standardize their production and to improve on-farm quality assurance and good agricultural practices; (ii) increase knowledge of markets and market requirements including food safety systems; (iii) incorporate food safety practices and compliance including Hazard Analysis and Critical Control Points (HACCP); (iv) improve processing, storage, product handling, marketing, and product quality; (iv) register brands and obtain certification including organic food certification; and (v) improve management capacity. The targeted funding would be provided to registered producer cooperatives, associations and rural businesses operating along the value chain based on an application process. Component 3: Strengthening Public Sector Institution. 6. The objective of the component is to increase the capacity of public sector institutions to facilitate business development and enable market access in the selected value chains supported under components 1 and 2. Activities to be funded under the component consist of: (i) Animal Health Services, including mobilizing training and equipping around 100 community veterinarians (CVs), and establishing four regional-level Veterinary Service Centers (VSCs) to be owned and operated by the CVs; (ii) Food Safety, including increasing capacity of food inspectors at the Marz and district level through provision of simple testing equipment and training, and enhancing knowledge and skills of food safety standards and systems at the lower end of the value chain including producers and small-scale processors; (iii) Support to the Scientific Center of Vegetable and Industrial Crops to produce high quality vegetable seeds and seedlings of the locally-adapted varieties developed by their breeding and selection program; and (iv) Introduction of Good Agricultural Practices, which will include support to the Agrochemical Service State Non-Commercial Organization to analyze soils and chemicals. Component 4: Project Coordination and Management. 7. This component will ensure overall project management, including financial management and procurement, coordination of the implementation process, monitoring and evaluation. 1.1.2. Project Beneficiaries 8. Pasture users, farmer cooperatives and associations, and food business operators (FBOs) will benefit from the project. At least 50,000 pasture users would participate in the project through their membership of Pasture Users’ Cooperatives (PUCs) and in the planning and implementation of Pasture Management and Livestock Development Plans, and will benefit from improved pasture management, infrastructure, veterinary care and agricultural machinery. The project is expected to generate positive social benefits by improving the productivity of livelihood resources such as communal pastures and livestock, and will be especially valuable to poor households that rely on livestock as an important source of food and cash income. These activities will focus on poorer mountainous areas where pasture degradation is the most problematic. Around 100 communities in eight poor regions in Armenia - a total population of around 125,000 - would benefit from the project. The project will contribute directly to increased opportunities for community voice and participation in decision-making around livestock and pasture management and has been structured to build community capacity in this regard. 1.2. Rationale for Preparation of a Resettlement Policy Framework 9. World Bank funding for the Project will be provided subject to the condition that each Project component should conform (among others) with the WB Operational Policy (OP) on Involuntary Resettlement 4.12 (WB OP 4.12). WB OP 4.12 indicates that an RPF needs to be prepared if the extent and location of resettlement/ Project impacts cannot be known prior to Project Appraisal, as in the case of this Project. This RPF will also outline the requirements and process for preparing and approving Resettlement Action Plans, if needed. 10. Review and analysis of written documentation on the CARMAC II components as well as on the experience of CARMAC I was made to identify the most likely range of potential impacts and formulate the most appropriate and reasonable set of mitigation measures. However, unforeseen impacts may arise from certain project activities. Some of the impacts may also require other and more adapted mitigation measures than the ones described in this report. Therefore, the findings and recommendations of this RPF will be adapted/adjusted if needed during Project implementation and reported accordingly. 1.3. Objective and Principles of the Resettlement Policy Framework 11. The RPF aims to prevent and/or mitigate the potential negative social impacts of implementation of project activities associated with land use or land acqusition. The objective of the RPF is to outline brief description of the project and components for which land acquisition and resettlement are required, the legal framework for the Project including both RA legislation and WB OP4.12 requirements and proposing measures to bridge the gaps between the policies; specify eligibility criteria for defining various categories of Project Affected Person (PAPs); specify compensation approaches for the lost assets as well as methods of valuing of the affected assets; describe the process for preparing and approving resettlement plans; clarify institutional, implementation and monitoring arrangements for resettlement activities; specify grievance redress mechanisms; consultation mechanisms with PAPs, describe the arrangements for funding resettlement. In particular, the RPF is aimed to guide the preparation of Resettlement Action Plans (RAP) that will ensure that, in the event of any future resettlement issues, all persons affected by it will be compensated at replacement cost at market value for their losses, and provided with rehabilitation measures so that they are at least as well off as they would have been in the absence of the Project. 12. The project will follow the principle that involuntary resettlement should be avoided where feasible, or 2 minimized, exploring all viable alternatives in project design . If unavoidable, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced or adversely affected by the project to share the benefits of the project. Furthermore, displaced persons should be meaningfully consulted and should be involved in planning and implementing resettlement programs; and be assisted in their efforts to improve their livelihoods and standards of living; or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of Project implementation, whichever is higher. These principles – and resettlement measures stemming from them – apply to CARMAC II and all its components, whether or not the scale, magnitude and complexity of resettlement issues requires preparation of resettlement plans. 1.4. Extent and Scope of the Resettlement within the CARMAC II 13. In the early stages of CARMAC II preparation it is difficult to have clear information on possible resettlement impacts that might be associated with the proposed activities. However, experience of the previous project suggests that resettlement risks of the overall project and its separate components are low. Physical construction works envisaged within the framework of CARMAC II can potentially have some negative implications on the community/PAPs and may require temporary loss of land, crops or trees or, of access to these same; temporary restriction of the access to the private and public properties during construction period. However, it is unlikely that substantial adverse social impacts will be induced. The project is not expected to require land acquisition, PAPs physical displacement or any severe impact on PAPs livelihood and income. 14. Some civil works are anticipated under Component 1 and Component 3, as detailed below. Component 2 and Component 4 are not expected to include activities that would require land use or acquisition. 1.4.1. Extent and Scope of the Resettlement within Component 1 15. Under Component 1 grant programs will be implemented in 8 Marzes with significant pasture areas to improve livestock production system. Pasture User Cooperatives (PUCs), comprising all community pasture users, will be created in up to 100 communities. PUCs will develop the sustainable Pasture Management and Livestock Development Plans (PMLDPs) based on the participatory assessment and building on the improved understanding among pasture users. Funds will be provided for each PUC to implement their PMLDP. Fund amounts will depend on the activities proposed in the PMLDP based on pasture area and existing number of livestock units. The fund amounts are expected to average about US$ 200,000 and will not exceed US$ 300,000 per community. Investments will be provided in a phased way over three years. Beneficiaries will contribute a percentage of the costs. 16. The PUCs will receive an indicative open list of eligible investment activities including: (a) infrastructure to access and use remote pastures, such as spot road improvements, stock watering points, shelters and stock-pens; (b) milk collection points with cooling equipment; (c) machinery to produce and harvest fodder such as grass cutters, haying machines, or silage choppers; (d) costs of rehabilitation measures for degraded areas such as fencing, weed and shrub control, and re-seeding; (e) support for fodder 2 World Bank Operational Policy on Involuntary Resettlement (WB OP 4.12); January 2002, p.1 production including leguminous plant seeds, corn seeds; (f) community-based disease control programs including for market-limiting diseases, zoonoses and parasite control; (g) breed stock improvement including artificial insemination; (h) training and advisory services; and (i) PUC support, such as management training, office equipment and furnishings. 17. The above listed activities can include some construction works: infrastructure to access and use remote pastures, such as spot road improvements of the pastures, stock watering points, water supply of stock watering points, shelters (houses for shepherd and stock-pens) can be constructed. Most of the infrastructures will be constructed on the community owned and used or unused pastures. However, there is a chance that some used or more likely unused private lands will be temporarily affected during the construction. 18. To avoid or if unavoidable to minimize the impact on the private lands the PIU will ensure, with the assistance of the Design Consultant (company or individual, that will prepare engineering design for the grant programs as needed), that the area will be examined during the design stage. Selection of the community lands for the alignment will be done in consultation and agreement with community to minimize the negative impact because of temporary restriction of access to pasture resources. Following the procedure applied in Armenia, all the designs will be revised and sealed by Local Authorities of the respective Community. 1.4.2. Extent and Scope of the Resettlement within Component 3 19. Under Component 3 four regional-level Veterinary Service Centers (VSCs) will be constructed. The centers will be established exclusively in community owned areas, which will not pose resettlement risks. Communities will transfer the land for construction to the RA MoA (Government) on voluntary bases Land will be selected in consultation with the community to ensure, that it will be the most appropriate place for community use of the VSC and to avoid the negative impact on the community in general if any. Some infrastructures, like water supply, will be constructed to serve the VSCs. All the infrastructures, including pipes will be located on sites owned by the community authorities. New lines will be selected on the community streets/along the community roads, which will help to avoid the resettlement impact. 1.4.3. Conclusion 20. The project will not allow any component with permanent private land loss. In case of temporary impact on community and private lands, a set of measures will be taken to minimize the negative impact on the community and PAPs. Furthermore the Community Fund for Implementation of PUC Plans will not approve any grants that involve permanent land acquisition or physical resettlement of PAPs. 2. INSTITUTIONAL FRAMEWORK 21. Several institutions, each with different roles and responsibilities, will be responsible for overseeing and implementing the principles and objectives of the RPF, particularly while developing and implementing subsequent RAP(s). Functional roles of the involved institutions are listed below. A diagram showing the key actors, including their roles and interrelationships, is also included below in this section. 2.1. RA Ministry of Agriculture and Agricultural Project Implementation Unit 22. The Agricultural Projects Implementation Unit (APIU) State Agency of the RA Ministry of Agriculture will be responsible for overall project management including all procurement, financial management, reporting, and Monitoring and Evaluation (M&E) responsibilities. APIU bears overall responsibility for the oversight and monitoring of all the activities under this RPF. An environmental and social safeguards specialist would be contracted with responsibility for safeguards management. APIU will guide, supervise and report on progress in the components, and will handle resettlement issues requiring action and coordination at the local authorities. APIU can be supported by different consultants in the resettlement- related tasks and activities, particularly: i. Design Consultant (DC) will prepare designs for the Project. DC will be responsible for the determination of the project alignment and location in accordance with RPF principles to avoid or minimize the Project impact. DC will be responsible for the collection of the data on the affected land plots, assets as well as PAPs and their families/households for Census and Socio-economic survey as needed, dissemination of Project and component related information during design stage. ii. Supervision Consultant will be appointed to supervise the construction works and ensure its compliance with the design as well as all social and environmental requirements of the Project. Supervision consultant will provide social safeguards monitoring data to APIU. iii. Licensed valuator will be temporary contracted to carry out assessment of the affected assets and calculation of the compensation in accordance with RA Valuation law and standards, WB OP 4.12 and this RPF as needed. 2.2. State Governing Organisations 2.2.1. Ministries and Committees 23. A set of Ministries and Committees that APIU can associate and coordinate within the context of resettlement with main relevant functions are presented below. All the ministries might be consulted in the process of preparation of the RAP. RA Ministry of Territorial Administration (MoTA); 24. The MoTA has the following roles and responsibilities, among others, that may pertain to resettlement- related issues: (i) development and enforcement of policy provisions for territorial administration, laws, programs and plans for social-economic development of territorial administrations and local self- governments through the bodies of territorial administration and local self-governments; (ii) management and safe and secure use of the state owned water infrastructure; (iii) development and implementation of investment policy for water infrastructure, organization of expertise of the investment policy; (iv) development and coordination of implementation of the policy on state regulation of migration processes; (v) formation and management of the state mobilization reserves, etc. 25. The MoTA, state authorized body in this area, might have, but not limited to the following role in the RAP process: (i) assistance in the RAP preparation and implementation process within its jurisdiction of the state authorized body in resettlement activities; (ii) member of the Grievance Redress Committee if appropriate; etc. RA Ministry of Nature Protection (MoNP) 26. The RA MoNP is responsible, among others, for protection and conservation of all natural resources through: (i) development, management and implementation of the state policy on effective management use, and protection of atmospheric air, water, land and mineral resources, mitigation and prevention of adverse negative impacts on flora and fauna, especially protected areas; (ii) development and enforcement of environmental legislation, including, but not limited to environmental norms and standards, permits and associated fees and charges, etc. RA Ministry of Energy and Natural Resources (MoENR) 27. The RA MoENR is, among others, responsible for protection, sustainable use, and regeneration of natural resources, and implements its relevant functions through the Agency of Mineral Resources and Subsoil Concession Agency. RA Ministry of Health (MoH) 28. The RA MoH, is, among others, responsible for development and enforcement of policy principles of sanitary protection zones of land use for different purposes. RA Ministry of Culture (MoC) 29. The RA MoC, among others develops the principles, parameters, norms for inventory, protection, use of historical and cultural monuments, as well as approve the designs and protection regime of protection zones of cultural and historical monuments. RA Ministry of Emergency Situations (MoES) 30. The RA MoES elaborates and implements the policies of the GoA in the area if civil defense and protection of population in emergency situations. Armenian State Hydro-meteorological and Monitoring Service SNCO is among the structural entities acting within the Ministry of Emergency Situations. RA Ministry of Urban Development (MoUD) 31. The RA MoUD, among other functions, develops the policy provisions on establishment of urban development limitations and norms for use and development of certain types of land defined in accordance with the Land Code requirements. State Committee of the Real Estate Cadastre under the GoA (SCREC) 32. The SCREC under the GoA has the following roles and responsibilities, among others, that may pertain to resettlement related issues: (i) Development and implementation of the state policy on the unified national cadastre of the real property (including land);(ii) Within its jurisdiction, development of the principles of land resources management and use policy, implementation of the state supervision of the land use to support the establishment of land rights institution and land market; (iii) Development of cadastral maps, including for lands; (iv) Creation and maintenance of the real property information system and provision of cadastral data; (v)State registration of the real property rights; (vi) Development of the land balance of the RA Land fund and lands classification by types; (vii) Cadastral valuation of the real estate, including lands; (viii)Setting of the base tax for the real property, including land tax; etc. 33. The SCREC under the GoA has its regional subdivisions and closely works with bodies of local self- governance. The Cadastre will be consulted in the process of development of the RAP, specifically in relation to identification and validation of the PAPs assets and property rights, assets and property rights registration and re-registration etc. 2.2.2. Marzpetarans (Regional Authorities) 34. State authorities in Marzpetarans implement the GoA's regional policies in the following areas: finance, urban development, housing and utilities, transport and road construction, agriculture and land use, education, healthcare, social security, culture and sports, nature and environmental protection, commerce, public catering, and services. The regional policies in the aforementioned sectors are implemented by means of Marzpetarans, as well as organizations subordinate to the respective Marzes. A summary of the role of local self-governing bodies in regulation of land relations is as follows: i. Development of basic settlement plans and implementing land zoning and use mechanisms within the administrative territory of the community, According to defined procedures; ii. According to basic settlement plans, within the administrative territory of the community and according to defined procedures, provide and take away land belonging to the community and the State due to the Law on Property; iii. Dispose the land belonging to the community due to the Law on Property, according to defined procedures; iv. Implement: (i) Contiguous registration of the land; (ii) Charges of land taxes and rent for the use of community land; (iii) Control over use of the land and maintenance of the restrictions on use; (iv) Other authorities defined by the law; v. Support in: (i) State registration of the land; (ii) Provision of protection of the land allocated to administrative territories of the communities; (iii) Performance of nature protection and historical- cultural norms and implementation of measures directed to that; (iv) Implementation of Republican and regional plans of the mechanisms for the utilization of forestland. 35. Representatives of the Marzpetarans might be involved in the Grievance Redress Committee and consulted in the process of preparation and implementation of the RAP as the regional state authorities for regulation of land relations. 2.3. Local Self-Governing Bodies 36. As the Project will be implemented in the rural areas, Community Authorities (Local Authorities (LA)) will play important role both during general implementation of the Project and during resettlement-related activities. Under Component 1 LAs will establish a commission for the development of the PMLDPs. The Commission will present to APIU the necessary infrastructures and their potential location based on the community needs assessment. LA will also provide community land for VSCs under Component 3. LAs will be consulted and actively involved in the preparation and execution of resettlement processes in the area of their jurisdiction starting from design preparation stage, particularly in the identification of the ownership status of the affected land plots, identification of PAPs etc. They will be consulted and involved as mediators in the processes of redressing the complaints/grievances, before those are deposited with the Grievance Redress Committee. 2.4. Resettlement Action Plan Implementation Unit 37. In case, when the scale of resettlement is significant, and APIU is not able to implement all the activities related to it, Resettlement Action Plan Implementation Unit (RAPIU), the entity authorized by APIU can carry out the resettlement activities. The decision will be made on the stage of RAP preparation. If and when necessary APIU will provide oversight and advisory services to assist PIU in the implementation of RAP. 2.5. Grievance Redress Committee 38. A Grievance Redress Committee (GRC) at Project level will be established to address complaints and grievances pertaining to resettlement and to pre-empt all disagreements being referred to the court (Details are provided in the Chapter 6). 2.6. Non-Governmental Organisations 39. Non-governmental organizations (NGOs) functioning in Armenia and particularly in the project related regions are closely involved in community life. Particularly, NGOs help to resolve community issues, promote interests of vulnerable groups, protect the environment, provide basic social services, organize awareness campaigns etc. In any CARMAC II resettlement related activities, NGOs will be involved, including in the process of the preparation and implementation of any RAPs. Particularly, NGOs will be invited to participate in all public consultations to be organized in the affected communities to present their views and recommendations on the process, and to assist PAPs during the process at their convenience. 2.7. World Bank 40. WB will be the funding agency of the project. Besides supervising periodically the Project, WB will review and approve Project RPFs, RAPs, Due Diligence Reports, Compliance reports. Figure 1. Overview of key actors in resettlement and resettlement issues 3. LEGAL FRAMEWORK 3.1. Legislation of the Republic of Armenia 41. In the RA the legal framework for land takings and resettlement issues mainly consist of the following legal acts: i. The Constitution of the Republic of Armenia (adopted in 1995 amended in 2005), ii. The Civil Code of the Republic of Armenia (adopted on 05.05.1998, entered into force from 01.01.1999, published in Official Bulletin No 1998/17 on 10.08.1998), iii. The Law on Alienation of Property for the Needs of Society and State (adopted on 27.11.2006, entered into force from 30.12.2006, published in Official Bulletin No 2006/64 on 20.12.2006) , iv. The Land Code of the Republic of Armenia (adopted on 02.05.2001, entered into force from 15.06.2001, published in Official Bulletin No 2001/17 on 15.06.2001), v. The Law on Real Estate Valuation Activity (adopted on 04.10.2005, entered into force from 26.11.2005, published in Official Bulletin No 2005/71 on 16.11.2005), vi. The Code of Civil Procedure (adopted on 17.06.1998, entered into force from 01.01.1999, published in Official Bulletin No 1998/20 on 09.09.1998), vii. The Code of Administrative Procedure (adopted on 28.11.2007, entered into force from 01.01.2008, published in Official Bulletin No 2007/64 on 19.12.2007 ), The Constitution 42. Article 8 of the Constitution of the RA (hereinafter referred to as the Constitution) generally acknowledges that the right to property (ownership right) is recognized and protected in the RA. Article 31 of the Constitution states that the property can be alienated for social and state needs only in case of exceptional priority public interest, in accordance with the procedure set by the law and on the basis of appropriate compensation. In this context special attention shall be paid to Article 1 of Protocol 1 of the European Convention of Human Rights, stating that “Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided by law and by general principle s of international law”. The Civil and Land Codes 43. Though the process of land/property takings are mainly governed by the law mentioned above there is a separate group of issues that may arise during the implementation of the project related to the right of limited use of the other’s property. These issues are addressed in the Civil and Land Codes of the Republic of Armenia. 44. Article 210 of the Civil Code (as well as Article 50 of the Land Code) states that the owners/users of a land plot can demand from the owner of the land plot neighbouring with theirs and/or from the owners of other land plots to grant the right of limited use of their land plots (servitude). A servitude may be established to provide for walking and riding through the neighbouring land parcel, installation and exploitation of lines of electric transmission, communication and pipelines, provision of water supply and melioration. The servitude can be voluntary or compulsory, if the agreement on servitude is not reached between the parties. Article 212 (3) of the Civil Code stipulates that for preservation and maintenance of pipelines, engineering infrastructures established to serve the public needs, a compulsory permanent free of charge servitude shall be established. The Law on Alienation of Property for the Needs of Society and State 45. The most important legal act dealing with the issues of land/property takings and resettlement issues is the Law on Alienation of Property for the Needs of Society and State (the Law). The Law stipulates the cases when the alienation of the property needs to be executed and the procedure how the alienation should be conducted. 46. Article 3 of the Law stipulates the exceptional public interest as the constitutional basis for the alienation and sets the following requirements for execution of the alienation in question: (i) alienation in accordance with the procedure set by the law, and (ii) prior payment of appropriate compensation against the property to be alienated. 47. Article 4 of the Law sets the principals/conditions in accordance to which the exceptional priority public interest should be determined. Thus, the Law stipulates that (i) the public interest must be superior over the interests of the owner of the property, (ii) the effective implementation of the public interest cannot be achieved without the alienation of the property, (iii) the alienation of the property must not do unjustified harm to the owner of the property, (iv) the public interest must be acknowledged as superior through the Government decision, (v) the fact of existence of the exceptional public interest may be argued through litigation in the court . 48. The same article states that exceptional public interest shall serve the following purposes: (a) protection of public and state security, (b) implementation of the obligations assumed by the Republic of Armenia under international treaties, (c) preservation of historical and cultural values or monuments of international and national importance, and creation and preservation of special protected nature areas, (d) protection of the environment, (e) development of education, healthcare, sport as well as science and culture, (f) implementation of projects of community and intercommunity importance in the fields of communication, transport, energy, land use, city construction, energy and water supply, (g) protection of the property, health and private life of citizens, (h) prevention and/or mitigation/reduction of the possible effects of emergencies. 49. The Law also regulates the issues related to the determination of the scope of the property under alienation. In particular, Article 5 of the Law stipulates that, in case of alienation of a land parcel, all the items of real estate (buildings and other property) as well as all the improvements on the land parcel are also subject to alienation. In case of alienation of a building, the land plot necessary for the usage of the property is also subject to alienation. If a part of a property is alienated, then the non-alienated part(s) of the property should also be alienated at the demand of the owner. Such a demand should be presented within two months after the decision of the Government on acknowledgement of the exceptional public interest enters into force. 50. In this respect it should also be noted, that the European Court of Human Rights has well-established case-law concerning the interpretation of the notion of “possessions” (ownership, property) used in Article 1 of Protocol 1 of the European Convention which is highly desirable to take into consideration while determining the scopes of the property to be alienated. The following illustrate are of interest here. 51. Case of Broniowski v. Poland, point 129: “The concept of “possessions” in the first part of Article 1 of Protocol 1 has an autonomous meaning which is not limited to the ownership of material goods and is independent from the formal classification in domestic law. In the same way as material goods, certain other rights and interests constituting assets can also be regarded as “property rights”, and th us as ‘possessions’ for the purposes of this provision. In each case the issue that needs to be examined is whether the circumstances of the case, considered as a whole conferred on the applicant title to a substantive interest protected by Article 1 of Protocol 1” , 52. Case of Kopechky v. Slovakia, point 25: “The Court recalls that according to the case -law, “possessions” within the meaning of Article 1 of Protocol 1can be “existing possessions ” or assets, including claims, in respect of which applicant can argue that he or she has at least “legitimate expectations” of obtaining effective enjoyment of a property right”. 53. The Law furthermore stipulates that the state, a community and/or an organization can act as the acquirers of the property being alienated for public and state needs. 54. Article 7 of the Law states that the restrictions arising from the resolution of the Government on acknowledging the exceptional superior public interest shall be registered in accordance with the procedure set by the law within 15 days upon entering into force of the resolution of the Government. The resolution is sent to the owners of the property and other persons having registered property rights in that property within 7 days after the subject Government resolution enters into force. The Government resolution shall be published in the Official Bulletin of the Republic of Armenia and in mass media being published in not less than 3000 copies and can be appealed in the court within one month from the day it enters into force. 55. The same article also stipulates that, after the Government resolution enters into force, the protocol (census) on the description of the property should be prepared by the authorized governmental authority whereas the owner and the persons having property rights over the property subject to alienation are entitled to take part in the preparation. The copy of the census is sent to the owner and to the parties having property rights over the property within 3 days after it is completed. The census can be challenged / appealed before the government authorized body or the court within 10 days after they receive the copy. 56. The Law recognizes also the option to conduct preliminary study of the property subject to alienation (which includes also the preparation of census) before the adoption by the Government of the resolution mentioned above at the request of the potential acquirer. The preliminary study is conducted based on the resolution of the Government. 57. Article 10 of the Law states that the acquirer/purchaser of the property shall, before the final date of starting the alienation of property for public and state needs set by the Government, send to the owners and other persons having property rights over the property the draft of the agreement of alienation of the property. The owners of the property are obliged to inform the acquirer/purchaser within two weeks from the date of receipt of the agreement on the persons having property rights over the property who have not registered their rights or are not subject to registration. If the owner does not inform the acquirer about the mentioned persons then he/she bears the liability for the losses of those persons arising out of the alienation without their participation. 58. Article 11 of the Law stipulates that equal compensation shall be paid to the owner against the property to be alienated whereas the price exceeding the market price by 15 per cent shall be deemed to be equal compensation for the purposes of the Law. The market price of the real property and/or property rights over the property shall be determined in accordance with the procedure set by the Law of the Republic of Armenia on Activity of Real Estate Valuation. In this context, it should be mentioned that the Real Estate Valuation Law (Article 8) states that the valuation of the real estate is mandatory in the cases of alienation of the property for social/public and state needs, whereas the valuation is to be conducted by licensed valuators/appraisers based on the agreement. The results of valuation are reflected in the valuation statement, which shall, inter alia, include (i) the names of real estate valuation subjects, their addresses, (ii) the date when the real estate was visited and valuated, (iii) the reference of application of three classical methods of valuation to valuation standard, (iv) the rights and restrictions over the property valuated, (v) the data about valuated real estate, the source of their authenticity, (vi) the result of on-site examination of the property and the description of the property valuated, (vii) the calculations of market prices received as a result of application of three classical valuation methods and their reconciliation, (viii) the terms of commercial secrecy of the results of real estate valuation, (ix) the analysis of the most efficient use of the property, if the customer requests so, (x) the list of documents used in the process of valuation, (xi) the liability of the valuator before the customer and third parties, (xii) the full name and signature of valuator and his/her license number. 59. The Law also stipulates that the persons having property rights over the property under alienation are compensated from the amount of the compensation paid against the property being alienated. As per articles 12 of the Law, if no agreement on alienation of the property is signed between the acquirer and the owners/persons having property rights over the property within three months after sending the draft alienation agreement to them, the acquirer must deposit the compensation amount with the notary public or the court, whereas the amount of compensation shall be calculated as of not more than one week prior of the date when the deposit is made. If the amount of deposit is received by the owners and/or persons having property rights before the court’s decision on alienation of the property, the agreement of alienation is deemed to be made. 60. Article 13 of the Law provides that if no agreement on alienation is signed within 7 days after the acquirer deposits the amount of compensation, then, for the alienation of the property, the acquirer must resort to the court within one month. In this case only the issue on the size of the compensation amount can be the matter for discussion. The court’s decision on the amount of compensation sh all be the basis for alienation of the property. 61. The law also provides for the grounds when the resolution of the Government on acknowledging the superior public interest will become void. In particular, Article 16 states that if the acquirer does not send the draft alienation agreement to the owner and/or persons having property rights, or does not deposit the amount of compensation with the notary public or court within the time set by the Law, or does not resort to the court within the time period set by the Law then it will be construed as waiver from the right to acquire the property and all the documents on recognizing the superior public interest related to that item of property shall be deemed void. The mentioned resolution may be recognized as void by the court if the acquirer, inter alia, have not started the activity serving as a basis for property alienation for two years from the enactment of the resolution. 62. Another group of issues which are relevant to the resettlement project is the one connected with the procedure of application to the court should PAPs decide to choose the court for settlement of disputes arising out in the process of resettlement. In this respect it should be noted that the Law contains also several provisions setting “limitation of actions” i.e. time periods for being entitled to challenge/appeal some issues before or in the courts. Thus, the Law stipulates that the resolution of the Government on acknowledging the superior public interest can be challenged before the court within one month and the resolution of the Government on conducting preliminary study within two months after their enactment. 63. These resolutions shall be challenged / argued in the Administrative Court of the Republic of Armenia in accordance with the requirements of the Code of Administrative Procedure. As per Article 3 an individual or a legal entity shall be entitled to resort to the Administrative Court, if the actions and/or inactions and administrative acts of state or municipal bodies or their officials have violated or will violate his rights and freedoms guaranteed by the Constitution of the Republic of Armenia, international treaties, laws and other legal acts. In the meantime, it should be noted that the Code does not set a time frame for the proceedings in the Administrative Court. Article 81 states that the court proceedings shall as a rule be completed in one session, without delays. The preparation to court proceedings and the proceeding itself shall be completed within a reasonable period of time. Along with the above-mentioned, the Code of Administrative Procedure provides for simplified/accelerated proceedings in several cases, among which the most applicable in our case are the following: (i) when the presented claim is evidently well-substantiated or (ii) when the presented claim is evidently groundless. The decision of the Administrative Court enters into force from the moment it is publicized. 64. The case is a bit different when the case goes to court in the cases provided by article 13 of the Law (the signing of alienation agreement by resort to court). These cases are heard by the court of General jurisdiction if the amount of compensation in dispute is less than AMD 5 mln and by the civil court if it is equal to or exceeds AMD 5 mln. The proceedings in court are conducted as per the requirements of the Code of Civil Procedure of the Republic of Armenia. As in the previous case, the Code of Civil Procedure also does not stipulate any strict time limits for case hearings and set that the case should be heard in the court within a reasonable time period (Article 111). Here also the court may use accelerated hearings. Article 125 of the Civil Procedure Code stipulates that the court is entitled to use accelerated hearings if (i) the nature of the case requires immediate hearing; (ii) the claim is evidently substantiated; (iii) the claim is evidently groundless. 65. The decisions of the courts of general jurisdiction and the civil court enter into force after one month and can be appealed to the appeal court for civil cases. In its turn, the appeal court also is not bound by strict time-frames and shall hear the case within reasonable period taking into consideration the time period when the case was heard by the general jurisdiction / civil court. The decision of the appeal court enters into force from the moments it is publicized. 3.2. World Bank Policies 66. The primary objective of the WB OP 4.12 is to explore all alternatives to avoid, or at least minimize, involuntary resettlement. Where resettlement is unavoidable, the living standards of displaced persons should be restored or improved relative to those conditions that prevailed prior to the Project. The policy applies to the taking of land and other assets when land acquisition results in the loss of shelter, the loss of all or part of productive assets, or access to them, and the loss of income sources or other means of livelihood. This policy also applies to other activities resulting in involuntary resettlement, that in the judgment of the Bank, are (a) directly and significantly related to the Bank-assisted project, (b) necessary to achieve its objectives as set forth in the project documents; and (c) carried out, or planned to be carried out, contemporaneously with the project. 3.3 Comparison of Armenian Laws and the World Bank’s Involuntary Resettlement Policy Table 2: Comparison of Armenian Laws and the World Bank’s Involuntary Resettlement Policy Actions to Legislation of the Republic of Armenia WB Involuntary Resettlement Policy Conclusion on gaps address the gaps 1. Eligibility a) Persons having documented ownership over the property a) Persons who have formal legal rights to In general the To address this (land, buildings, crops, etc.) are eligible to receive land (including customary and traditional provisions of the gap it is compensation for the land being alienated, damages/ rights recognised under the laws of the Armenian legislation recommended: demolition and lost crops caused by a project (the Law on country) are provided compensation for the and WB’s OP are Property Alienation for Social/Public and State Needs), or in the land they lose; the same, except of 1) WB OP 4.12 is cases their lands are not alienated but partially used for public provision on persons followed, projects (servitude) (the Civil Code (Articles 210-218), Land lacking the formal 2) The GoA Code (Articles 50-and 100)), legal right over the allows the property. application of WB b) Persons enjoying other property rights over the property b) Persons who do not have formal legal OP 4.12 for the (right to lease, right to free use, etc ) are eligible for rights to land but have a claim to such land or CARMAC II. compensation, whereas the amount of compensation for these assets – provided that such claims are persons is included and paid from the compensation paid to recognised under the laws of the country or titled owners, (the Law on Property Alienation for Social/Public become recognised through a process and State Needs (Article 11)). Persons having constructed identified in the resettlement plan – are buildings on their own lands but not registered them as of the provided compensation for the land they lose; cut-off date may receive compensation. (Article 188 of the Civil Code). c) Persons who have no recognisable legal right or claim to the land they are occupying c) Persons having built a construction or planted trees in areas are provided resettlement assistance in lieu of belonging to others cannot receive compensation for loss of compensation for the land they occupy, and assets. (Cf above mentioned RA laws) other assistance as necessary, if they occupy the project area prior to the cut-off date. 2. Entitlements As per Armenian legislation the compensation is paid only to PAPs are provided resettlement assistance in Provisions of the - the owners and persons having the property rights over the lieu of compensation for the land they occupy, Armenian legislation assets if the ownership/property rights has been acquired and other assistance, as necessary, to and WB’s OP are before the project cut-off date, whereas all the improvements achieve the objectives set out in this policy, if the same. done after the cut-off date in excess of the scope set by the law they occupy the project area prior to a cut-off and all the encumbrances generated over the property after the date Actions to Legislation of the Republic of Armenia WB Involuntary Resettlement Policy Conclusion on gaps address the gaps cut-off date are not subject to compensation. The adequate compensation should be paid to the owner in Compensation levels should be sufficient to Both Armenian case of alienation, whereas the amount of compensation replace the lost land and other assets at full legislation and WB exceeding the market value by 15% will be considered as replacement cost in local markets. OP 4.12 provide for adequate (The Law on Alienation of the Property for compensation of lost Social/Public and State Needs Article 11) land and assets. National legislation appears to be more beneficial for the PAPs. No provision for income/livelihood The WB policy requires rehabilitation for Armenian legislation To address this rehabilitation measures and/or allowances for severely affected income/livelihood, for severe losses, and for provides very limited gap it is PAPs and vulnerable expenses incurred by any and all PAPs during provisions for recommended: groups, and/or resettlement expenses (Cf above mentioned RA the relocation process income/livelihood laws) compensation 1) WB OP 4.12 is and/or expenses followed, incurred by the 2) The GoA PAPs during the allows the relocation process. application of WB OP 4.12 for the CARMAC II. 3. Information Requirements The resolution of the Government on acknowledgment of Information related to quantification and Requirements of the - exceptional superior public interest is to be properly costing of land, structures and other assets, Armenian legislation communicated to the owners and persons having property entitlements, and amounts of compensation and the WB OP 4.12 rights over the assets within seven days after it enters into and financial assistance are to be disclosed in are almost the force. The owner and the persons having property rights over full to the affected persons. same. the property to be alienated are entitled to participate in completing the description of the property to be alienated. The copy of the protocol on description is to be sent to the owner and the persons having property rights over the property. (The Law on Alienation of the Property for Social/Public and State Needs Article 7) Local municipalities are required to acknowledge the communities through mass media and public discussions on expected changes in their living environment (Government Resolution No 660 dated 28 October 1998). 3.4. Conclusions: Bridging the Gaps 67. In principle, Armenian laws and regulations relevant to land acquisition and resettlement and WB OP 4.12 adhere not only to the objective of compensation for affected families or persons, but also to the objective of rehabilitation. However, Armenian laws are unclear on how rehabilitation is to be achieved and in practice the provision of rehabilitation is left to ad hoc arrangements taken by the local governments and the specific project proponents. Another and rather major difference between the RA laws and the WB policies is that the WB OP 4.12 recognises titled and non-titled owners/users as well as registered and unregistered tenants, i.e. lack of legal title is no bar to compensation and rehabilitation. To clarify these issues and reconcile eventual gaps between the Armenian laws and regulations and WB OP 4.12, this RPF mandates compensation at full replacement cost of all items, including the rehabilitation of informal/non-titled settlers, and rehabilitation packages (as appropriate, to be determined in the RAP) for PAPs that may need to be relocated, suffer business losses, or may be severely affected. 68. Furthermore, public disclosure and consultation are not well articulated in the RA laws and the project will ensure due inclusion of (potential) PAPs and, in particular, of vulnerable groups affected by the project, in the public consultation and participation process prior to and during project implementation (see also section 7 below). In addition, an accessible grievance redress mechanism will be instituted (see also section 6. below) and physical project implementation works will not commence until all compensation and rehabilitation measures of a project or sub component are completed. 69. In line with the Paragraph 4 of WB OP 4.12, these measures apply to all components of the project that result in involuntary resettlement, regardless of the source of financing. 4. COMPENSATION ELIGIBILITY AND ENTITLEMENTS 70. Resettlement tasks under the Project will be implemented according to a compensation eligibility and entitlements framework developed in line with both RA legislation and WB OP 4.12. The basic principle of the RPF is that PAPs should be assisted in their efforts to improve their living standards, income earning capacity, and production levels, or at least to restore them to pre-project level whereby lack of legal title does not exclude individuals from the eligibility to receive compensation or rehabilitation assistance. 71. During identification of the impacts associated with particular Project component, the entitlement matrix and description of compensation entitlements shall be revised and updated accordingly. 4.1. Compensation and/or Rehabilitation Eligibility 72. DPs eligible for compensation and or rehabilitation assistance include the following three groups: i. those who have formal legal rights to land that are properly registered as per RA law; ii. those who do not have formal legal rights to land at the time the census begins but have a claim to such land provided that such claims are recognized under the RA laws; iii. those who have no recognizable legal right or claim to the land they are occupying. 73. All PAPs living in the project area before the cut-off date may be considered for compensation for their losses and/or rehabilitation assistance. Lack of legal rights or titles do not make them ineligible for entitlements; 74. WB OP4.12 covers the following direct economic and social impacts of the project to be compensated/ rehabilitated that are caused by i. the involuntary taking of land resulting in a. relocation or loss of shelter; 23 b. permanently or temporarily affected land; c. loss of assets or of access to assets including: houses or other structures, crops, trees, or other assets; Businesses and or factors of production; and/or, d. loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or ii. the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons. Cut-off Date 75. Compensation eligibility will be limited by a cut-off date. The OP 4.12 recognizes that PAPs who occupy project- affected areas after the cut-off date are not eligible for compensation. The fact that the Project will identify a cut- off date for compensation eligibility will be communicated to affected communities during preliminary public consultations. The precise cut-off date will be publicly announced by the APIU and LAs in advance and the census survey of PAPs and assets inventory will commence immediately following this announcement. The cut- off date will be the date of commencement of the census survey of PAPs. Affected assets description protocols will be prepared during the assets inventory. Information on the affected assets will be registered in the presence of PAP and/or LAs. Then, the protocol will be signed by the PAP and/or LA if PAP is unavailable. Every effort will be made to arrange signing at a convenient time for the PAP and to postpone signing until the PAP is available. If the PAP remains unavailable, the reasons of the PAPs’ absence should be documented and attached to the protocol. All people, organizations moving into the project area and/or people conducting construction works, planting trees, etc. after the cut-off date are non-eligible PAPs and thus will not receive any compensation. They, however, will be given sufficient advance notice, requesting them to vacate their premises and dismantle affected structures prior to project implementation. The materials of their dismantled structures will not be confiscated and they will not pay any fine or suffer any sanction. To facilitate this, the Project will put at their disposal the necessary transportation means for their relocation. 4.2. Compensation and Rehabilitation Entitlements 76. The compensation entitlements are based on the premise that resettlement, rehabilitation and compensation programs should improve or, at a minimum, restore the PAPs’ pre-project living standards and ensure their participation in Project benefits. All the PAPs that are eligible (para. 74-77) for compensation and/or rehabilitation will be compensated prior to construction works. PAPs covered under para. 74(i) and (ii) are provided compensation for the land they lose, and other assistance in accordance with RAP. PAPs covered under para. 74(iii) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, in accordance with RAP. All persons included in para. 74 (i), (ii), or (iii) are provided compensation for loss of assets other than land. 77. Persons who encroach on the area after the cut-off date (para. 77) are not entitled to compensation or any other form of resettlement assistance. General Principles of Compensation i. DPs will be compensated at full replacement and substitution costs without depreciation, and relocated after due consultation with them. ii. Compensation will not be deducted for salvageable materials, registration costs, taxes and other applicable payments. iii. The preliminary compensation rates for the replacement will be proposed to the PAPs to give them an opportunity to compare those with the prevailing market rates; iv. All fees and taxes on land and/or house transfers will be waived or otherwise fees and taxes will be included in a compensation package for land and/or house. The competent government authorities will give preferential treatment to PAPs reconstructing their houses on their own, and support them in obtaining the necessary property titles and official certificates; 24 v. In case if community infrastructure and services such as schools, factories, water sources, roads, sewage systems, electrical supply is affected, or other community resources such as a woodlot or pasture is lost, this will be replaced at no cost to the community. They will be re-built and/or improved, so that their pre-project function will be restored and the PAPs will have access to these services. vi. As the project will have temporary land impact on the small fraction on the lands, the compensation will be given in cash at the replacement cost. vii. DPs will be provided full assistance for transportation of personal belongings, inventory and/or movable assets/structures if any. Resettlement strategies viii. Preference will be given to land-based resettlement strategies for PAPs whose livelihoods are land-based. These strategies may include resettlement on public land or on private land acquired or purchased for resettlement. Whenever replacement land is offered, resettlers are provided with land for which a combination of productive potential, location advantages and other factors is at least equivalent to the advantages of the land taken. ix. If land is not the preferred option of the PAPs, or the provision of land would adversely affect the sustainability 3 of a park or protected area, or sufficient land is not available at a reasonable price , non-land-based options built around opportunities for employment or self-employment should be provided in addition to cash compensation for land and other assets lost. Cash compensation x. Payment of cash compensation for lost assets may be appropriate where (a) livelihoods are land-based 4 but the land taken for the project is a small fraction of the affected asset and the residual is economically viable; (b) active markets for land, housing, and labor exist, PAPs use such markets, and there is sufficient supply of land and housing; or (c) livelihoods are not land- based. Cash compensation levels should be sufficient to replace the lost land and other assets at full replacement cost in local markets, calculated as of the cut-off date. xi. Compensation in cash for all residential, commercial or other structures will be paid at replacement cost of these structures, without any depreciation of the structure and without deduction for salvageable materials; Consultation and Planning xii. Resettlement plans will be developed and implemented in consultation with the PAPs. In the relocation area, community infrastructure and services will be built and improved, so that the PAPs will have access to these services. xiii. Effective and timely design, planning and implementation of resettlement and rehabilitation measures will be conducted to avoid unnecessary delays and consequent inconveniences to the PAPs. Relocation xiv. PAPs will be provided full assistance for transportation of personal belongings, household inventory and salvaged material, and will be given a relocation allowance in addition to the compensation at replacement cost of their houses, lands and other properties. xv. In cases where community infrastructure such as schools, factories, water sources, roads, sewage systems, electrical supply, or other community resources such as a woodlot or pasture is lost, this will be replaced at no cost to the community. 3 The lack of adequate land shall be demonstrated and documented to the satisfaction of the WB. 4 As a general principle, this applies if the land taken constitutes less than 20% of the total productive area; see also WB OP 4.12, point 12, footnote 17. 25 Timing xvi. Resettlement, compensation and rehabilitation Programs for PAPs will be timed so as to guarantee the availability of new land and residences, prior to commencement of project or sub component related construction activities; xvii. Land clearance will not be started before the PAPs have received compensation and rehabilitation assistance. Monitoring xviii. Institutional arrangements will be made for internal monitoring of resettlement activities. If deemed necessary in RAP an external monitoring entity will be involved to ensure independent monitoring of RAP 5 preparation and implementation activities. 4.3. Valuing Affected Assets 78. During RAP preparation, the APIU will engage the services of a competent and acknowledged independent valuator, responsible for determining replacement cost of the affected assets. During the valuation process, PAPs, LAs and relevant government offices (such as the SCREC under the GoA) can be consulted. Valuation will be done in the framework of the RA Valuation Law and RA Valuation Standard. Where domestic law does not meet the standard of compensation at full replacement cost, WB policies, guidelines and technical specifications for compensation at replacement cost will be applied. Subsequently, compensation and rehabilitation measures will be developed by APIU based on the valuation reports. Guiding principles for the valuation of the predictable types of losses are listed below. 4.3.1. Valuation of Land and Structures 79. With regard to land, the replacement value is defined as follows: i. For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes done based on the comparative method as per the RA Valuation Standard (details are provided in the ANNEX 7); ii. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes done based on the comparative method as per the RA Valuation Standard (details are provided in the ANNEX 7); 80. Structures will be valued at replacement cost based on construction type, materials cost, labor, transport/other construction costs. No deduction for depreciation, transaction costs will be applied. If PAP does not wish to relocate, partial impacts may be paid only for the affected portion of the building or repairs. 81. In determining the replacement cost to be compensated to the PAP, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, WB policies, guidelines and technical specifications for compensation at replacement cost will be applied. Compensation for land, structures, business, fixed improvements and other temporary assets will be based on market valuation, productivity valuation, negotiated settlements, material and labor valuation, disposition of salvage materials and other fees paid. It should be noted that lack of title, license or permit is not a bar to compensation. 5 For further details see section 5. 3 below 26 Rehabilitation cost 82. In addition to compensation for lost assets, PAPs will be entitled to transitional assistance which includes moving expenses, temporary residence (if necessary), employment training and income support while awaiting employment. PAPs should have an option for full compensation as regulated by RoA legislation, and WB procedures, which were described in detail in previous paragraphs, if t h e duration of impact is to exceed two years. These losses will be estimated for each individual case and may vary from (temporary or permanent) loss of business opportunities to loss of crops, orchards, trees, and other items. 83. In relation to losses that cannot easily be valued or compensated for in monetary terms (e.g., access to public services, customers, and suppliers; or to fishing, grazing, or forest areas), attempts will be made to establish access to equivalent and culturally acceptable resources and earning opportunities. 4.3.2 Valuation of Crops 84. Standing annual crops will be valued at net annual market value for the one year crop. 4.3.3. Valuation of Trees 85. Trees will be valued according to different methodologies depending on whether the tree lost is a wood tree or a productive tree. i. Wood trees will be valued based on the category (a. seedling; b. medium growth and c. full growth) and wood value and volume; ii. Decorative trees will be valued based on market value of the tree; iii. Fruit/productive trees will be valued based on the category (a. seedling; b. adult-not yet fruit bearing; and c. fruit bearing). Stage (a) and (b) trees are compensated based on the value of the investment made; stage (c) trees are compensated at net market value of 1 year income x number of years needed to grow a new fully productive tree. 86. In relation to losses that cannot easily be valued or compensated for in monetary terms (e.g., access to public services, customers, and suppliers; or to fishing, grazing, or forest areas), attempts will be made to establish access to equivalent and culturally acceptable resources and earning opportunities. 5 IMPLEMENTATION ARRANGEMENTS 5.1. Resettlement Requirements and Screening Process during Design Stage 87. Resettlement related planning process should start with planning of preliminary infrastructure alignment at the design stage. PLMDPs (Grant Programs) which prescribe acquisition of private properties and/or cause significant resettlement impacts are ineligible for the Project financing and thus must be excluded from the project. The avoidance of the permanent land loss/resettlement impact and minimization of temporary land loss is the main precondition of the construction design of infrastructures, access roads, stock watering points, VSC etc. in the frameworks of the Project. Prior to each design, DC will examine the cadastral maps as well as community maps for each community to identify the location of private and/or used lands as well as community lands. LAs should provide the verified data on the type of ownership of the lands and structures potentially to be affected by the Project. Verification of the cadastral and community maps should be done also in the field based on the observations and measurement where applicable. After the exercise, impact on the legally/illegally used lands/structures will be avoided/ minimized. The activity should be implemented in close cooperation with Local Authorities of the community. 88. In order to identify possible permanent and/or temporary land loss under each component/subcomponent, process of Due Diligence/preliminary investigations should be initiated within the framework of the project, including the following steps: 27 i. Potential impacts will be identified and followed up by the APIU with assistance of DC and, when necessary, through visits to those sites where impacts are expected. The DC should provide APIU with an initial and documented description of the existing baseline situation, in particular related, but not limited, to resettlement, land required for the component/ sub component (either permanent or temporary), as well as identification and mapping of landownership and affected assets if any in the affected area; ii. APIU will organise site visits as needed. The last will include (i) initial discussions with local authorities; (ii) verification of information provided by the D C ; and (iii) if required obtaining additional information on the scale and magnitude of the potential impacts; iii. Each Component thus confirmed to include potential resettlement or resettlement effects should be subsequently scheduled for an intensive sensitization and consultation process to involve the potentially impacted communities; The consultation process should be properly documented by the DC and the outcome presented to the APIU for further processing and eventual approval to proceed (or otherwise) with the specific design; iv. If approval to go ahead is obtained and a cut-off date for eligibility declared, PAPs and the local authorities are informed about the impending compensation and resettlement; v. Subsequently, a PAPs census survey as well as inventory of losses should be undertaken and combined to limit the inconvenience for the PAPs and speed up the process of RAP preparation. If required, a baseline 6 survey should be simultaneously undertaken . vi. Once the results of the survey are available, a decision is made whether a RAP (abbreviated or full, as applicable) for that component needs to be drafted by APIU, or if Due Diligence is sufficient. vii. If RAP(s) is(are) required, the outlines shown in Annex 5 will be used. Sufficient detail should be provided and the RAPs should be in conformity with (the principles of) this RPF. 5.2. Types of Resettlement Action Plans 89. According to WB OP 4.12, all projects that entail resettlement require a RAP. The scope and level of detail of the resettlement plan vary with the magnitude and complexity of resettlement based on the Project Category (OP 4.12, Annex A, para2). i. A full RAP is required whenever land acquisition in a project affects more than 200 people, takes more than 10 percent of any holding, and/or involves physical relocation of population. ii. An abbreviated RAP is acceptable if fewer than 200 people are displaced. 90. Even if more than 200 people are affected, if a l l land acquisition is minor (10 percent or less of all holdings is taken) or/and no physical relocation is involved, an abbreviated RAP is acceptable. If fewer than 200 people are displaced but some physical relocation is involved, the abbreviated RAP is expanded to include a rehabilitation program. An overview is provided in Table 1. Table 1: Subcomponent Categorization and Resettlement Planning Requirements Project Resettlement Planning No. of Affected People Category Impact Requirement 200 or more PAPs experience major impacts: A -Physical displacement and/or Significant Full RAP -Loss of 10 % or more of their productive assets B Less than 200 people experience major impacts Minor Abbreviated RAP C No loss of assets and incomes or displacement None No RAP 6 A baseline survey is required if physical relocation of PAPs is unavoidable and/or if some of the PAPs lose more than 10% of their productive assets; footnote 6, WB OP 4.12, Annex A. 28 91. The specific RAPs under this RPF will include baseline census and socio-economic survey information; specific compensation rates and standards; policy entitlements related to any additional impacts identified through the census or survey; description of resettlement sites; programs for improvement or restoration of livelihoods and standards of living; implementation schedule for resettlement activities; and detailed cost estimates. While carrying out these tasks, specific attention will be paid to the needs of vulnerable groups among those displaced, especially those below the poverty line, the disabled, the elderly, women and children or other displaced persons who may not be protected through national land/property compensation legislation. 92. After approval has been obtained, compensation, resettlement and rehabilitation activities will be initiated, and will be completed before awarding contracts of civil works under each component / sub-component of CARMAC II. 93. RA legislation requires the same level of protection for all groups of the society, including those mentioned as vulnerable groups. This principle is reflected in the RA Constitution. In particular, Article 14.1 of the Constitution states: All the people shall be equal before the law. Discrimination based on sex, race, ethnicity, political or other views, belonging to ethnic minorities, property status, birth, disability, age or other personal or social circumstances is prohibited. 94. Article 6 of the Constitution states that the Constitution has superior legal force and its norms shall be applied directly. All the laws and other legal acts shall be in conformity with the Constitution. 5.3. Process of the Resettlement Action Plans Preparation and Approval 95. This RPF guides the preparation of Resettlement Action Plans (RAP). Component / sub-component specific RAPs, as needed, will be developed by the APIU with the help of relevant social experts, civil engineers, valuation consultants etc, and presented to MoA for review and official endorsement. The APIU will as needed revise and submit the f i n a l v e r s i o n o f t h e RAPs to the WB for approval. After approval has been obtained, compensation, resettlement and rehabilitation activities will be initiated, and will be completed before awarding contracts of civil works under relevant components/ sub-components of the Project 96. RAP preparation will commence immediately after the draft design is ready and approved by APIU and the relevant GoA authorities have publicly announced the cut-off date for the PAP identification purposes. Main activities to be undertaken include, but may not be limited to, the following: i. Establishment of Cut-off date ii. Census and measurement survey as well as inventory of losses of PAPs; iii. Consultations with PAPs as well as public consultation in the affected community iv. Establishment of Grievance Redress mechanism in the affected community v. Development of compensation matrix; vi. Valuation of lost land and assets; vii. Documenting the implementation arrangements for resettlement, including asset acquisition, compensation, relocation and rehabilitation viii. Preparation of indicative budget and schedule for implementation. ix. Endorsement of the RAPs by APIU, RA MoA and WB 5.4. RAP Information Requirements 5.4.1 Census and Inventory of Project Affected Persons 97. A census of families and persons adversely affected by Project activities will be conducted by the Project. The census will include a complete inventory of all losses to be incurred by each PAP.. This information will include as a minimum: (a) number of persons, main occupation and level of income; (b) number, type, and dimension of the houses; (c) number, quality, and area of all the residential plots; (d) number, category, type, and area of agricultural land held and to be lost by each PAP; (e) tenure status of agricultural land and 29 amount of rent paid by tenant/lessee, where applicable; (f) quantity, category, and dimension of all rent of other fixed assets adversely affected; (g) productive assets lost as a percentage of total productive assets; (h) temporary damage to productive assets; (i) quantity, category, and quality of non-agricultural livelihood adversely affected; (j) quantity, type, and quality of community resources to be acquired. 5.4.2. Identification of Losses 98. Assets inventory will include: (a) description of the land plot to be affected (type, size, other applicable description); (b) data on the crops to be affected per type and quantity; (c) data on the trees to be affected per type and quantity; (e) data on the structures to be affected or to be relocated. 99. If the project will involve physical relocation of PAPs, or provision of replacement land, data will be collected on the location, area, type, and category of the replacement land available for residential and/or agricultural purposes. Care will be taken to ensure that the relocation site or replacement land is in the vicinity of the PAPs‘ previous location to avoid social dislocation and unrealistic division of the PAPs‘ economic livelihood. 5.4.3. Baseline Survey 100. In addition to the census and inventory of affected land and assets, the full RAP should include a baseline survey of the affected population. The baseline survey will provide data on the existing social structure, tenure arrangements and resource use, access to common property resources, social services and infrastructure facilities by different social groups in the project area, clearly identifying all special interest groups, particularly those who are poor and vulnerable (e.g. tenants, landless labourers, and female-headed households), and describing their special characteristics in relation to the project. 5.5. Resettlement Action Plan Implementation Process 101. APIU will establish/ appoint an entity to act as the RAP Implementation Unit (RAPIU) and to implement approved RAP(s) for the Project. RAPIU will work under the supervision of the APIU and WB. All activities indicated in the RAP shall be covered from loan funds, and be completed prior to commencing related construction activities. In case of the small scale of the impact, APIU can decide to delegate these functions to one of the APIU units. In that case, as needed APIU capacity will be strengthened with the short-term services of some specialists (for example licensed measurement specialist) as needed. Major responsibilities and activities of the RAPIU include, but may not be limited to, the following: i. Closely consult with PAPs and Local Authorities. Provide the public with necessary information, and ensure transparent and timely awareness-raising and communications around resettlement issues with all affected communities (not only PAPs); ii. Verify the RAP census and asset inventory data; iii. Undertake cadastral and topographic surveys and ensure correction of data of measuring and inventory if required by possible design changes; iv. Prepare contracts and/or agreements to be signed by PAPs. Negotiate and agree them with PAPs; v. Prepare documentation for registration of new land plots or cadastral registration of servitude writes for the land as needed; vi. Deliver compensation. Cash compensations will be paid by bank transfer. If PAP will not have bank account, the last will be opened for him/ her by the Project free of charge. vii. Observe grievance procedures; viii. Court processing of cases where no agreement is reached; ix. Construction of infrastructure (in case the resettlement is necessary) and arrangement of relocation of PAPs; x. Prepare RAP Completion Report. 30 102. In should be emphasized that satisfactory completion of the RAP is a condition for physical construction works on the component to start. 103. The following steps will be followed in case of temporary land impact will be identified for contract negotiation and signing. i. Information-sharing with possible PAPs to ensure they understand their rights to decline the participation in the process as well as compensation for the affected crops/trees; ii. Undertaking of Land Use Agreement between the concerned PAPs, APIU and Local Authorities of the respective community; iii. Compensation Agreement, if any; iv. Payment of the compensation for the affected crops/trees and other losses if any; v. Registration of the use write (Servitude) in the Cadaster if needed. 6. COMPLAINTS AND GRIEVANCES 104. In order to receive and facilitate the resolution of PAPs and beneficiary community members’ concerns, complaints, and grievances concerning the project performance a grievance redress mechanism will be established to be used for addressing any complaints that arise during the during design, RAP preparation and construction phases. 105. The grievance redress mechanism will address affected people's concerns and complaints proactively and promptly, using an understandable, communicated, and transparent process that is gender responsive, culturally appropriate, and accessible to all segments of the PAPs and beneficiary community at no costs. The mechanism will not impede access to the Country’s judicial or administrative remedies. Local Authorities 106. APIU in order to provide a direct channel to the affected PAPs and community members for approaching APIU and have their grievance recorded and redressed in an appropriate time frame will establish a first step of grievance redress mechanism in cooperation with Local Authorities. Prior to RAP preparation as well as Construction works, APIU will inform the beneficiary community about the grievance redress mechanism and provide contact details of persons responsible for grievance collection and response in the community. Figure 2. Grievance Redress Mechanism Grievance Redress Committee APIU Local Authorities Grievance Redress Committee: Tasks and composition 107. A Grievance Redress Committee (GRC) at Project level will be established to address complaints and grievances pertaining to resettlement and to pre-empt all disagreements being referred to the court. GRC will include APIU, RA MoA staff, and representatives of the relevant state authorities and/or Marzpetaran in the project area, and/or representatives of local NGOs and communities affected by the particular component of the CARMACII. A GRC will be convened by the APIU on a case by case basis, to address complaints and grievances pertaining to resettlement. 31 108. Within one week after establishment, the GRC will submit to APIU the procedure and mechanisms of work. The procedure will explicitly define mechanisms and rules of sending complaints and addressing them, including grievance reporting mechanisms, as well as addresses and names of responsible officials at central and local levels. This procedure must ensure maximum access, transparency, disclosure and participation and will be aimed at maximum protection of interests of affected population. In order to achieve these goals, the Committee must use mass media facilities, websites, hot-lines and IT systems of the APIU/RA MoA and other stakeholders, capacities municipalities and local governments, in active cooperation with NGOs. After approval of the procedure, it must be published in mass media outlets and be available on the APIU/RA MoA website throughout effective period of the program. Procedure 109. APIU will make every effort to achieve an amicable settlement of all identified resettlement issues under the RAP at the community and then Project level. If this attempt fails, the PAP may at his/her discretion, deposit a complaint either with the court or GRC. The proposed redress procedure and mechanisms will be presented to and discussed with the PAPs at the early stages of the RAP preparation process. In order to effectively collect all grievances from the potential PAPs, a specific site(s) may be designated for timely depositing and collection of all complaints. The PAPs can deposit complains orally (these shall be properly documented at the moment of depositing complain at the designated site) or in writing. The response will be provided within a period of two weeks after receiving the complaint. If the case is not resolved at the level of the Local Authorities, then APIU and then GRC, it may be submitted by either party to the Court. Any fees required for this purpose will be paid by Project after verifying that the PAP is a recipient of allowances under the Family Assistance Program of the 7 GoA . All other PAPs will be responsible for their own costs. Expropriation Proceedings 110. If the APIU and the PAP fail to reach an agreement on the acquisition of private properties, the GoA will pursue the expropriation proceedings in accordance with the RA ―Law on property alienation for social/public and state needs (No: HO-185-N of 27 November 2006)". Court 111. The Court of Armenia shall be the last resort for issues and concerns regarding the implementation of the RAP. In case of failure in the negotiation between the A P IU and the PAP concerning the acquisition of private properties, the GoA with the mandate for expropriation based on existing legislations will submit to the Court a request for expropriation. Upon its approval and following prescribed procedures, the GoA will take over the concerned property after having been given the right of Expropriator by the Court. 112. In cases where complaints and grievances regarding the RAP implementation and compensation are not amicably settled and mediation by the Grievance Redress Committee remains also unsuccessful, the PAP will also have the right to appeal the case to the Court as a last resort. The Courts‘ decision shall be final and be executed. 113. As per the Law on Alienation of property for social/public and state needs (Article 13) the acquirer shall be obliged to resort to the Court if the alienation agreement is not signed voluntarily by the owner and/or persons enjoying property rights over the property subject to alienation, whereas only the issues connected to the amount of compensation can be discussed in the court. Hence, PAPs cannot argue the amount of compensation in the courts on their own initiative. If they do not agree with the amount suggested, they do not sign the alienation agreement, in which case the acquirer should go to court, if he still wants the property to be alienated. 7 Based on a number of (wealth and income) indicators, this Program assists to varying degrees families that are not in a position to fully or partially cater for their daily necessities. 32 7. PUBLIC PARTICIPATION 114. According to WB OP4.12. PAPs must be fully consulted and provided with opportunities to participate in all stages of the planning and implementation of the RAP. Under the same principles, the PAPs have to be informed in an appropriate and timely manner of the outcomes of the planning process, as well as the schedules and procedures for the implementation of the RAP. A public information and consultation campaign must be carried out by the APIU during all stages of the RAP implementation process. The affected parties will be provided with an opportunity of presenting their ideas and suggestions as inputs into the planning and implementation of the resettlement activities. Different interested NGOs will be actively involved by the APIU in all the process of Public Consultations. i. APIU will consult with PAPs and invite them to participate in public consultations at the initial stage of the process, as well as in public consultations during preparation and implementation of RAP as described in previous sections. ii. The RAPs will be available in the LAs office with reliable information on the project, its impacts and the proposed mitigation strategies and economic rehabilitation activities. iii. Public Information Leaflets with cut-off date, eligibility criteria and entitlements, modalities of compensation, complaints and grievance redress procedures will be provided to each affected household. This information will be made easily accessible to the public at no cost to the PAPs, and the location of disclosure will also be announced during Public Consultations. 115. All consultation discussions will be documented and kept by the APIU. 116. After completion of each RAP, a brief survey will be undertaken by the RAPIU among PAPs to assess their satisfaction with the process and results of the RAP. Lessons learned from these surveys will be incorporated in subsequent RAP(s). 8. SUPERVISION AND MONITORING 117. Institutional arrangements will be made for internal monitoring of resettlement activities. If deemed necessary in the RAP, an external monitoring entity will be involved to ensure independent monitoring of RAP preparation and implementation activities. 118. Resettlement activities in all components will be regularly supervised and monitored by personnel of APIU. Reporting on internal monitoring will be carried out by the APIU and included in Project Progress Reports. At the end of each RAP completion, a RAP Completion Report will be submitted to WB. Internal monitoring and supervision will: i. verify that the census of all PAPs has been carried out; ii. that the RAP and baseline survey (as appropriate) has been prepared where it is required; iii. that property valuation and resettlement has been carried out in accordance with the provisions of this RPF and the respective RAP; iv. oversee that all resettlement measures are implemented as approved; v. ensure that funds for implementing resettlement activities are provided in a timely manner, are sufficient for their purposes, and are spent in accordance with the provisions of this RPF and the respective RAP. 119. If deemed necessary in the RAP an external monitoring entity will be engaged to carry out independent monitoring of resettlement activities. In addition to verifying the reports generated by internal monitoring, external monitoring will: i. evaluate the social and economic impact of resettlement on the PAPs; ii. verify if the objective of enhancement or at least restoration of income levels and standards of living of the PAPs has been met; and 33 iii. as needed, provide suggestions for improvement of resettlement implementation to ensure achievement of the principles and objectives set forth in this RPF and respective RAP(s). 9. COSTS AND BUDGETS 120. APIU will submit to RA MoA and WB detailed cost of resettlement based on the finalized RAPs, and including a breakdown by agricultural land, residential land, houses, other assets, and livelihood to be affected. The cost estimates will make adequate provision for monitoring and supervision a s w e l l a s for contingencies. All costs for resettlement will be funded through loan funds. The Project cannot be considered completed until all the objectives of the RAPs have been achieved. 34 ANNEXES ANNEX 1: PROVISIONAL ENTITLEMENT AND COMPENSATION MATRIX Affected Type of loss Specification people 8 Entitlements 1. Permanent All land losses, Land owner * Land for land compensation with plots of equal value and loss of irrespective of productivity to the plots lost; or; agricultural severity of * Cash compensation for affected land at replacement cost land, including impact free of taxes, registration, and transfer plus 15%. cultivable land * Residual portions of plots affected by the required ROW and which are reduced to less than 400m2 or rendered unusable uncultivable by alterations in access, irrigation, or workability will be wasteland included in the affected land and compensated as indicated (such as above. In Accordance with RA law in case PAPs request the pastures, project to acquire his/her entire land plot and not only its woodlots, etc) affected part within 60 days after the Eminent Domain Decree enters into force, then the residual portion of the land will be included in the affected land and compensated. Registered * Renewal of lease in other plots of equal value/productivity of leaseholder plots lost, or cash equivalent to market value of gross yield of affected land for the remaining lease years (up to a maximum of 10 years). * If it is unused land, then maximum of three months allowance to find replacement Share- * Cash compensation equal to the market value of the lost croppers harvest share and rehabilitation assistance as appropriate (registered (to be determined in the specific RAP) or not) Agricultural * Cash indemnity corresponding to their salary in cash and workers kind for the remaining part of the agricultural year and losing their rehabilitation assistance as appropriate (to be determined in contract the specific RAP) Non- * One rehabilitation allowance equal to market value of one registered net harvest (in addition to crop compensation) for land use land users loss; additional rehabilitation assistance as appropriate (to be determined in the specific RAP) Additional Landowner * One severe impact allowance equal to market value of one provisions for and net harvest of the affected land for one year (inclusive of severe Registered winter and summer crop and additional to standard crop impacts (> leaseholder compensation and rehabilitation assistance, as appropriate) 10% of land Share- * One severe impact allowance equal to market value of loss) croppers share of harvest lost (additional to standard crop (registered compensation and rehabilitation assistance, as appropriate) or not) 8 Identified at cut-off date 35 Affected Type of loss Specification people 8 Entitlements Non- * One severe impact allowance equal to market value of net registered harvest of the affected land for one year (additional to land users standard crop compensation and rehabilitation assistance, as appropriate) 2. Temporary * Affected land & communal infrastructure will be restored to loss of land Land owners pre-project conditions. and * Rent shall be agreed between landowner/leaseholder and registered Contractor equal to the revenue lost based on market leaseholders value (example: compensation for harvests lost at average yield/hectare) * Cash compensation for assets lost (example: structures, trees, crops) Non- * Affected land & communal infrastructure will be restored to registered pre-project conditions. land users * Cash compensation for assets lost (example: structures, trees, crops) 3. Non- Land owner * Land for land compensation through provision of a plot agricultural comparable in value/location to plot lost; or: land * Cash compensation for the affected land at full replacement cost free of taxes, registration, and transfer costs plus 15% * In Accordance with RA law in case PAPs request the project to acquire his/her entire land plot and not only its affected part within 60 days after the Eminent Domain Decree enters into force, then the residual portion of the land will be included in the affected land and compensated. Registered * Maximum of three months allowance to find replacement Leaseholder Non- * Provision of a self-relocation allowance; additional registered rehabilitation assistance as appropriate (to be land users determined in the specific RAP). 4. Houses, Owners of * Cash compensation at replacement rates for affected building and the structure and other fixed assets free of salvageable structures registered materials, depreciation and transaction costs plus 15%. In structures case of partial impacts full cash assistance to restore remaining structure. The cost of lost water and electricity connections will be included in the compensation. Users of the * Cash compensation at replacement rates for affected non- structure and other fixed assets free of salvageable registered materials, depreciation and transaction costs. In case of structures partial impacts full cash assistance to restore remaining structure. The cost of lost water and electricity connections will be included in the compensation. 36 Affected Type of loss Specification people 8 Entitlements 5. Crops Standing All PAPs * Crop compensation in cash at full market rate for one year crops regardless of gross harvest by default to be paid both to landowners and affected/lost legal status tenants based on their specific sharecropping agreements; additional rehabilitation assistance as appropriate (to be determined in the specific RAP 6. Trees Trees All PAPs Cash compensation at replacement cost based on type of the affected/lost regardless of tree. Particularly, legal status iv. -Wood trees will be valued based on the category (a. seedling; b. medium growth and c. full growth) and wood value and volume; v. -Decorative trees will be valued based on market value of the tree; vi. -Fruit/ productive trees will be valued based on the category (a. seedling; b. adult-not yet fruit bearing; and c. fruit bearing). Stage (a) and (b) trees are compensated based on the value of the investment made; stage (c) trees are compensated at net market value of 1 year income x number of years needed to grow a new fully productive tree. 7. Business/ Temporary All PAPs * Business owner: Employment loss of regardless of Cash compensation for the period of business interruption, business or legal status based on tax declaration or official minimum salary employment (whichever is higher) * Worker/employee: Indemnity for lost wages for the full Permanent All PAPs owner: interruption period of business * Business loss of regardless of Cash compensation equal to one year income (based on tax business or legal status declaration or official minimum salary (whichever is higher) employment and rehabilitation assistance as appropriate (to be determined in the specific RAP) * Worker/employee: 3 months indemnity for lost wages and rehabilitation assistance as appropriate (to be determined in 8. Livelihoods Loss of social All PAPs * Restoration the specific RAP) of livelihoods must be to levels at least support regardless of equivalent to those maintained at the time of dispossession, systems legal status displacement, or restricted access. * If replacements to losses are unavailable, strategies can include skill development, wage employment or self- employment, including access to credit. 9. Relocation Transport and All PAPs * Provision of cash compensation to cover transport expenses transitional affected by and livelihood expenses due to relocation; time period to be livelihood Relocation determined in the RAP costs 10. House Tenants who * Provision of a cash grant of three months’ rent at the tenants have leased prevailing market rate in the area and will be assisted in a house identifying alternative accommodation 11. Community * Rehabilitation/substitution of the affected structures/utilities assets (i.e. places of worship, footbridges, roads, schools, health centers, pastures, woodlots, etc.) to pre-project functions in consultation with the Communities 37 Affected Type of loss Specification people 8 Entitlements 12. Vulnerable PAP below * Priority for employment in project-related jobs, training people‘s poverty opportunities, self-employment and wage-employment livelihood line assistance; * Rehabilitation assistance package to be determined based on a cases by case analysis 38 ANNEX 2: CHECKLIST FOR CENSUS INFORMATION Persons: * Aggregate number of individuals and households in each affected category; Age, gender, occupation of every individual. * Any particular forms of vulnerability (e.g. disabled, receiving social assistance, etc.) Property: Personal property including details of ownership of * Structures: houses, farm buildings, shops, industrial structures, grain drying area, latrines, etc.; * Land and type: irrigated or non-irrigated, woodlots, grassland, wasteland, etc.; * Description and estimate of the value of standing crops on land; * Other: livestock, wells, trees, natural resources etc. Public and common property: * Land: village common lands, gathering and foraging areas, fishing areas, etc; * Structures and facilities: schools, health facilities, burial grounds, temples, community centers, public transport, banks, co-ops etc.; * Infrastructure: drinking and other water systems, access and internal roads, electricity and other power sources; DP incomes from other sources, including: * Farm-based income; * Off-farm labor; * Informal sector activities. 39 ANNEX 3: LIST OF DATA FOR CENSUS SURVEY 1. Background Information i. Questionnaire code and date of survey ii. Name of interviewer iii. Name of province, district and village/hamlet 2. Household Census i. Name of household head and all household members ii. Relationship of household members to the household head iii. Age and sex of each household member iv. Information on ethnicity v. Education level of each member vi. Primary occupation and monthly income of each member vii. Incomes from secondary sources for each member viii. Location of job or businesses as the case may be ix. Length of stay on present location 3. Tenure Status i. Category of land ii. Type of land ownership and the name of the owner/HH member iii. Type of document possessed to certify ownership type iv. If not owned, name and address of owner v. If informal use right, type of agreement vi. Number of years used vii. Rent per month paid by tenant viii. Deposits made by lessee ix. Note: In case census and inventory are conducted as separate exercises, some information on land use, affected structures and other fixed assets, and affected businesses should also be collected as part of census surveys. 40 ANNEX 4: LIST OF DATA FOR INVENTORY OF LOSSES 1. Land Use i. Existing use of land ii. Areas under different land usages, where applicable iii. Total and affected area of land with breakdown by usages, if applicable iv. Estimate whether the remaining area is viable for continued use v. Total area of land by type for compensation purposes 2. Structures i. Type of structure ii. Number of floors iii. Area by floor iv. Name of owner of structure v. Year of construction vi. Whether permit obtained for structure vii. Use of structure and areas by usages, if applicable viii. Description of building material used for roof, walls and floors by surface areas ix. Type of foundation x. Description of any special features of structure xi. Utility connections (electric meter, water supply, etc.) xii. Charges paid for utility connections xiii. Affected area of structure xiv. Estimate whether the remaining structure is viable for continued use xv. Total area of building for compensation purposes 3. Other Structures i. Types of structures (wells, boundary wall, fence, warehouse, etc.) ii. Area of fish pond affected iii. Average household income from fish pond iv. Description of areas and construction material of affected structures v. Use of other structures 4. Agricultural Products i. Type of crops affected ii. Owner of affected crops iii. Total yearly production of crop on affected land iv. Average yield of crop v. Any products that are sold at the market vi. Number of employees/labor used for crop production vii. Average value of crop viii. Average yearly household income from agriculture 5. Trees i. Number and types of affected trees ii. Age of tress iii. Name of owner of trees iv. Average yield of fruit bearing trees v. Average yearly income from fruit trees 6. Business 41 i. Type of business affected ii. Name of owner of business iii. Registration/permit number of business (check document) iv. Total yearly household income from business v. Average operating expenditure of business vi. Number of employees in business vii. Number of permanent and temporary employees viii. Average income and profit as reported for income tax (check document) ix. Whether the business needs to be relocated 7. Affected Public Utilities and Facilities i. Description of affected community infrastructure ii. Description of affected facilities by area & building material used iii. Estimated number of population adversely affected by the facilities/infrastructure 8. Preference for Relocation i. Whether there is a need for relocation or reorganization ii. Preferred mode of compensation (cash or kind) for land iii. Preferred mode of compensation for structure iv. Preferred type of assistance for income rehabilitation 42 ANNEX 5: FORMATS FOR RAP AND ABBREVIATED RAP Full RAP Abbreviated RAP 9 Includes a statement of objectives, policies and Covers the following minimum elements : principles, and typically covers the following: 1. Description of the project; 1. A census survey of displaced persons 2. Project resettlement potential and valuation of assets; impacts; 2. Description of compensation and other 3. Objectives; resettlement assistance to be provided; 4. Socio-economic studies, expected 3. Consultations with displaced people about consequences; acceptable alternatives; 5. Legal framework; 4. Institutional responsibility for implementation and procedures for 6. Eligibility; grievance redress; 7. Valuation of and compensation for losses; 5. Arrangements for monitoring and 8. Site selection, site preparation and implementation; and relocation; 6. A timetable and budget. 9. Housing, infrastructure and social services; 10. Organizational responsibilities; 11. Public participation, consultation and grievance mechanism; 12. Implementation schedule; 13. Cost estimate and budget; 14. Monitoring and Evaluation 43 9 In case some of the displaced persons lose more than 10% of their productive assets or require physical relocation, the plan also covers a socio-economic baseline survey and income restoration measures. ANNEX 6: DATA FOR BASELINE SURVEY Additional information would include the following: 1. Access to Facilities a. Access to electricity b. Type of water supply available c. Type of sanitation facilities within the building d. Distance to school e. Distance to health facilities f. Distance to market 2. Household Assets a. Type and number of farm equipment and implements owned by the household b. Type of other business equipment owned by household c. Estimated value of affected equipment d. Type of transport owned (bike, motorcycle, truck, animal cart, car, other) e. Major kitchen equipment owned (stove, cooker, etc.) f. Ownership of fridge, radio, TV, etc. g. General condition of building (excellent, good, average, poor) h. General condition of household furnishing (furniture, cupboards, etc.) 3. Household Income and Expenditure a. Average annual household income from all sources b. Average expenditure on major items: food, transport, health, education c. Any loans taken from bank, friends or relatives d. Approximate savings, if any 4. Skills Possessed a. Skills of each household member b. Types of training or skills preferred for further upgrading 44 ANNEX 7: GUIDELINES FOR VALUATION AND COMPENSATION OF PROPERTY Introduction 1. As noted above, there are two components that comprise the valuation of property for Project Affected Persons (PAPs). The first is the replacement cost for property owned, or used for productive purposes by the PAP. The second is a one-time payment of allowance to the PAP which is defined as an amount (in financial terms) above the current replacement cost, used to compensate the impacted person for inconvenience, time loss due to change in residence or location, additional inputs required to bring the new location to a productive level equivalent to the property replaced, loss of income during the process of relocating, and similar losses. 2. Required are practical guidelines for estimating costs for resettlement activities under the CARMAC II. It should be restated at the outset that the discussion below is not a fixed framework, but a set of negotiable guidelines and suggestions. The point is that each case will be different; each case will require local consultation with impacted stakeholders. Considerable time and effort are usually needed to achieve satisfactory results. Process Regulating Documents 3. The methodology for compensation calculations and unit price calculations was developed in accordance with the following documents: (i) World Bank OP 4.12 (ii) The “RA Law ՀՕ-189-N on Real Estate Assessment Activities” adopted on 04.10.2005 (iii) The RA National Standard on Real Estate Assessment in the Republic of Armenia (iv) The RA Urban Development Minister’s “Decree N 09-N (dated 14.01.2008) on Approving the Construction of Buildings, Structures in the RA Territory and the Collection of the Increased Indicators of the Construction Work Type Cost.” Valuation of the Land 4. In a free market economy, the value of land-agricultural as well as nonagricultural -is determined by the price it is bought or sold in the real estate market. Land has been classified by the State Committee of the Real Estate Cadastre under the GoA (SCREC). However, sometimes, the classification is not in line with actial usage of the land. In the frames of the project, the type with higher price will be used for determination of the land price in favor of PAPs. Assessment of the Land Replacement Cost 5. Land valuation should be carried out at replacement cost based on market rates. Market rates will be assessed through the comparative method as defined by RA Valuation Standard. Based on this method a plot value is determined by taking into account the adjusted average sale price of at least three recently sold comparable plots with a similar location and use/features. If acceptable comparators in the same location of the valued plot are not available, one or more comparator plots are drawn from a different nearby/comparable location. 6. In order to reflect small differences between the characteristics / quality of the evaluated land and comparator lands, the average market sales of the comparator lands should be adjusted according to 45 several comparison parameters and corresponding coefficients. Assessment Procedure 7. The land assessment comparative method will be applied as follows: (i) similar real estate markets should be analyzed (ii) at least three comparison units should be defined (iii) necessary comparison elements should be distinguished (iv) the cost of comparison units should be adjusted according to comparison elements and several adjusted cost indicators averaged for the compared real estate (v) obtained market cost should be compared with the cadastral cost (vi) the plot price should be defined. Step 1 8. To analyze similar real estate markets and choose reliable information for the analysis, the Evaluator can 10 use public sources (professional journals, websites, external advertisements), a personal database and information obtained from the “Center of Information technologies” SNCO at the SCREC. Based on the obtained information, the Evaluator uses the most compatible/relevant information (by its comparison elements). Step 2 9. In principle, the source of comparator values are records of executed sales from the Centre for Information Technologies SNCO at the SCREC. If for a specific plot, records did not include usable comparators, then records from the Cadastre lists of market prices or land sale offers in newspapers and websites are used to form comparators. Each valued plot is matched with at least three comparator plots. Step 3 10. Once comparator plots are identified, several additional parameters for comparing the relative quality/features of valued plots and comparator plots are also considered. The parameters and the coefficients for price adjustments are listed below: Sales condition and market state 11. These are the market price changes which occurred between the market sales of comparator lands and the evaluation period. The evaluator also considered whether the property was purchased through a mortgage. Actual usage 12. This shows how the given plot is actually used, irrespective of its cadastral, targeted and operational purpose. Location and position 13. Assessed and comparator plots are shown by districts. Their distance from a main road was also shown. In this case, 20 % step decrease or increase coefficients can be applied. Access to transport 14. This coefficient described the distance of assessed and comparator plots from main transport junctions. Access to transport can be found to be the same for assessed and comparator plots and no coefficient to be applied in this case. Total surface area 15. The size of the total surface area of the affected plots didn't impact the plot price, since it was similar to the surface areas of comparable plots. Facade 10 46 In his/her office, the Evaluator kept a database, where both the prices of the property subject to sale and the sales data (that became known to the Evaluator, as a result of implemented transactions with the Evaluator’s participation) are entered. 16. This shows how many meters of facade the given plot has on the main road. Availability of infrastructures 17. Describes the distance from the assessed plot to main infrastructures (roads, irrigation pipeline, drinking water pipeline, electricity line, gas pipe, sewage). Slope 18. The coordinated market observations show that plots with or without a slope have different prices. For that reason, the Evaluator also can consider this comparison element. Since the assessed and comparator plots are flat, there is no need to correct the given element. Step 4 19. The market price unit of the plots will be adjusted according to the listed comparison elements. The adjustment logic is presented in the table below: Table1 Calculation of cost of 1 square meter of the total plot Assessed real Similar real Similar real Similar real Comparison elements estate estate 1 estate 2 estate 3 Price for 1 square meter (AMD) 30,064 13,333 12,933 Bargaining (Sales condition) Sale Sale Sale Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Time (Market state) 02.2013 11.2012 02.2012 02.2012 Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Targeted purpose Populated area. Populated area. Populated area. Populated area. Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Operational purpose Other lands Resid. struct. Resid. struct. Resid. struct. Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Actual purpose Orchard Resid. struct. Resid. struct. Resid. struct. Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Location Good Excellent Satisfactory Satisfactory Adjustment coefficient 0.80 1.20 1.20 Adjustment by AMD -6,013 2,667 2,587 Position Excellent Excellent Good Good Adjustment coefficient 1.00 1.20 1.20 Adjustment by AMD 0 2,667 2,587 Access to transport. Good Good Good Good Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Physical characteristics: including Total surface area (square meter) 400.0 266.10 300.0 300.0 Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Facade (meter) 9.65 14.50 12.0 12.0 Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Availability of infrastructures Satisfactory Good Satisfactory Satisfactory Adjustment coefficient 0.85 1.00 1.00 Adjustment by AMD -4,510 0 0 Slope Flat Flat Flat Flat Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 Improvements None None None None Adjustment coefficient 1.00 1.00 1.00 Adjustment by AMD 0 0 0 General adjustment (AMD) -10,522 5,333 5,173 Price for 1 adjusted square meter (AMD) 19,542 18,666 18,106 Weight coefficient 0.33 0.34 0.33 A unit price for the assessed real estate 18,770 47 Step 5 20. The final decision on the value of the assessed property will be determined through the sales comparison method by analyzing adjusted prices of comparator real estate sales. The Evaluator averages the adjusted prices of three similar plots after establishing that all the three comparator plots are similar to the assessed plot and that the sources for obtaining data are credible. Step 6 1. Then, the market price of the plot will be calculated by the following formula: PMC= PSA x SMC where: PMC – is the market price of the plot, PSA- is the surface area of the plot, SMC-is the adjusted market price for 1 square meter of similar plots. BUILDING/STRUCTURE VALUATION METHODOLOGY 21. The valuation of building/structures should be carried out at replacement cost. Replacement cost is understood as the total cost to reconstruct a building/structure comparable in area, materials and features to the building/structure to be replaced, free of deductions for transaction costs and amortization. The calculation of the replacement cost was based on the following factors: (i) current market value of materials (ii) current cost of transportation of materials (iii) current labor costs, and (iv) cost of specific structural/esthetic features of the affected building. 22. Calculations should be made in compliance with official measurement indicators and adjustment coefficients established for the whole RA territory and civil works valuation parameters defined under the official Aggregative Indicators for Civil Works (AICW). 23. The replacement costs of buildings and structures will be determined on the basis of (i) data presented in relevant specialized normative bulletins and other reliable sources (ii) data on costs mentioned in construction contracts for similar structures in market conditions. 24. For the assessment of real estate, the replacement costs of structures will be calculated as the sum of direct and indirect expenses and business (constructor’s) profit. The required expenses, for constructing 1 square meter of real estate with similar use and purpose, will be defined by the following formula: SE = DE + IE + BP where: SE – required expenses for construction of 1 square meter of real estate with similar use and purpose DE –sum of direct expenses, IE- sum of indirect expenses, and BP - business (constructor’s) profit. 25. Direct expenses included the following expenses directly associated with construction: (i) expenses for purchasing materials, products, engineering networks and systems, and constructors' salaries (ii) expenses for operation of construction vehicles and machinery (iii) expenses related to temporarily constructed structures, safety measures, other expenses considered the norm in the transport and local market (iv) expenses related to financing the construction, and (v) contractor’s overhead expenses and profit. 26. Indirect expenses will be defined based on market tariffs for works and services. The following expenses arising from the construction of structures will be considered indirect expenses and will be included in the cost of construction: (i) design, estimate preparation, technical and other control expenses (ii) payments for consulting, legal, accounting and audit services (iii) expenses related to advertising, marketing and object sale (iv) entrepreneur’s administrative and other expenses. 27. The amount of business profit will be determined on the basis of market analysis. According to the RPF depreciation deductions will not be applied. Structure replacement expenses will be determined using the following formula: RE = B S x S E where: RE - Structure reproduction (or replacement) expenses BS –floor surface area of assessed buildings and structures SE- expenses required for the construction of 1 square meter of real estate with similar use and purpose. 28. An example of calculation of structure replacement costs is given in the following table: Table 2. Sample calculation of replacement cost of a residential building Residential Type of building/structure house # Measurement unit Cubic meter 1 1 unit expenses (presented in INCC 2009) directly related to implementation of works (absolute value), INCC 2009, volume I, section I, line 29 30,420 2 Height between the interfloor ceilings of the assessed real estate (m) 2.4 (Reference: Ownership certificate and/or topography or measurement results) 1 unit expenses (presented in INCC 2009) directly related to implementation of works: salary, cost of 3 materials, operation cost of vehicles and machinery, social contributions, management apparatus 73,008 maintenance (overhead) expenses, profit of contractor organizations (absolute value), Reference: Standard point 6.5, subpoints a., b., c. and e.; section 6 to section 8 of the Urban Development Minister’s Decree N 05-Ü, dated 14.01.2008 4 Exchange rate change coefficient (À/305,0) (absolute value), 1.334 Reference: INCC 2009, general provisions, point 5 5 Reproduction expenses (3x4) (absolute value), 97,424 Difference between the construction material (used during the assessed real estate construction) and 6 work prices considered in the expenses (presented in INCC 2009) directly related to implementation of 0 works: depending on the quality and/or completion degree (%). Reference: private analysis, format: electronic version, Excel, “tarberutyun”, sheet 1 7 Reproduction expenses (5+/-6) (absolute value) 97,424 Real expenses of buildings and structures that are of temporary, household purpose (moveable or 8 constructible), warehouses, temporary engineering networks (electricity, water, connecting roads and 1.83 platforms, etc.) * (%) 9 Line 8 with absolute value (7*8) 1,783 Reference: Table of section 3 of the “Decree N 69 (dated 21.08.2001) on Approving Estimate Norms of Temporary Buildings and Structures Built for Construction,” RA Ministry of Urban Development, arithmetical average of points a. and b. of line 24, line 34 10 Additional expenses related to climatic conditions impact on construction works * (%) 1.2 11 Line 10 with absolute value (7x10) 1,169 Reference: Table of the “Decree N 68 (dated 21.08.2001) on Approving Estimate Norms Taking Into Account the Climatic Conditions Impact on Construction Works,” RA Ministry of Urban Development, arithmetical average of points a. and b. of line 24, line 34, then columns 1, 2, 3 of the mentioned lines 12 Work implementation expenses in crammed conditions (%) 0 13 Line 12 with absolute value (7x12) 0 Reference: EPEP-85 collection 14 Expenses necessary for mandatory examination of design/ estimate documents of objects ** (%) 7.94 15 Line 14 with absolute value (25x14) 246 Reference: Decree N 41-Ü dated 16.06.2008, section 14, arithmetical average of lines 1-9 of table 4 16 Additional expenses envisaged for construction and mounting works of small volume * (%) 1.5 17 Line 16 with absolute value (7x16) 1,461 Reference: Decree N 41-Ü dated 16.06.2008, section 15, arithmetical average of lines 1-3 of table 5 Expenses related to activities for transferring waste (not current) formed after construction and mounting 18 0.15 works * (%) 19 Line 18 with absolute value (7x18) 146 Reference: Decree N 41-Ü dated 16.06.2008, section 16, table 6 20 Object technical control service expenses * (%) 1.41 21 Line 20 with absolute value (7x20) 1,374 Reference: Decree N 41-Ü dated 16.06.2008, section 17, arithmetical average of lines 1-7 of table 7 22 Object author’s control service expenses * (%) 0.5 23 Line 22 with absolute value (7x22) 487 Reference: Decree N 41-Ü dated 16.06.2008, section 18, arithmetical average of table 8, lines 1 and 2 24 Expenses required for preparation of design-estimate documents * (%) 3.18 25 Line 24 with absolute value (7x24) 3,098 RA Urban Development Minister’s “Decree N 19-Ü (dated 15.02.2008) on Approving the Procedure of Calculating the Preparation Work Cost of Urban Documents (project and architectural),” arithmetical average of lines 1-13, then columns 1-5 of table 8 of the annex (to (hereinafter) the Urb. Dev. Minister’s “Decree N 19-Ü dated 15.02.2008) 26 Expenses related to payments for consulting, legal, accounting and audit services 0 Reference: Standard, subpoint b. of point 1 of section 7.7.4 27 Expenses related to construction funding 0 Reference: Standard, subpoint c. of point 1 of section 7.7.4 28 Expenses related to advertising, marketing and object sale 0 Reference: Standard, subpoint d. of point 1 of section 7.7.4 29 Entrepreneur’s administrative and other expenses 0 Reference: Standard, subpoint e. of point 1 of section 7.7.4 30 Non-envisaged expenses * (%) 3.5 31 Line 30 with absolute value (7x30) 3,410 Reference: Decree N 41-Ü dated 16.06.2008, table 1, arithmetical average of points c.., d.., e.., f.. of section 1 and a.., b.., c.., and d.. of section 2 32 Equipment cost (ventilation, heating, etc.) (absolute value) 10,000 Reference: INCC 2009, general provisions, point 3, subpoint 1.1 33 Taxes: VAT * (%) 20 34 Line 33 with absolute value 33 (7x33) 19,485 Reference: INCC 2009, general provisions, point 3, subpoint 1.1, Decree N 41-Ü dated 16.06.2008, section 12, RA Law on Value Added Tax, Clause 2 of Article 6, Article 9 35 Business profit (%) 0 36 Line 35 with absolute value (7+9+11+13+15+17+19+21+23+25+26+27+28+29+31+32+34) x35 0 Reference: Standard, point 3 of section 7.7.4, Analysis Reproduction (or replacement) expenses 37 140,083 (7+9+11+13+15+17+19+21+23+25+26+27+28+29+31+32+34+36) ANNEX 8: DOCUMENTS CONSULTED 1. MCA-Armenia SNCO, Resettlement Policy Framework (2009); 2. Armenia Social Protection Administration Second Project (2014-2018), Resettlement Policy Framework (2014); 3. Transmission Line Reconstruction Project Hrazdan to Shinuhair Corridor, Resettlement Policy Framework (2011); 4. Lifeline Network Improvement Project, Resettlement Policy Framework (2012); 5. Irrigation System Enhancement Project, Resettlement Policy Framework (2013); 6. Republic of Armenia: Constitution (1995, amended in 2005); 7. Republic of Armenia: the Civil Code (1998); 8. Republic of Armenia: Land Code (2001); 9. Republic of Armenia: Law on Property alienation for social/public and state needs (2006); 10. Republic of Armenia: Code of Civil Procedure (1998); 11. Republic of Armenia: Code of Administrative Procedure (2007); 12. Republic of Armenia: Law on Real Estate Valuation Activity (2005); 13. The “RA Law ՀՕ-189-N on Real Estate Assessment Activities” (2005) 14. The RA National Standard on Real Estate Assessment in the Republic of Armenia 15. World Bank: Operational Policy on Involuntary Resettlement (WB OP 4.12) (January 2002); 16. World Bank: Operational Policy on Involuntary Resettlement - Annex A to OP 4.12 (January 2002); 17. World Bank: Bank Procedure (BP) 4.12 (January 2002); 18. World Bank: Involuntary Resettlement Sourcebook and Appendices (2004). ANNEX 9: CONTRACTOR FORMS FOR TREE AND STRUCTURE REMOVAL It was agreed that construction contractors would cover the cost of removal any trees (compensated in cash) and the temporary removal of structures (mainly bridges to be rebuilt following works). This compensation and rehabilitation would proceed on the no-objection of the APIU and the WB following the completion and submission of the attached forms by the contractor before works commence. In the case of trees these would form the basis for the preparation of RAPs, while the temporary removal of bridges and other non-productive assets would be captured in progress reports submitted by the APIU. Tree Removal – Contractor Form and Procedures:  Do not remove trees unless absolutely necessary; m  Complete this form in consultation with owner before works commence;  Do not remove tree without getting APIU approval following submission of form (section 7 completed);  Following payment completion complete section 7 and re-submit to APIU. Refer any complaints to the APIU 1. Information on Tree Community Location of trees Land plot lot and code Decorative Wood tree Fruit tree tree Size of the Type of the tree No tree The volume of Not-yet (mention Seedling Productive the tree in m3 productive the unit (sm, m) 1 2 3 4 5 6 2. Information on Owner Name of the Owner Document of the ownership* Passport data Contact address and phone number Date consulted Signature of owner * In case of registered owners it can be cadaster certificate, in case of leaseholders it can be a lease agreement or leas cadaster certificate, in case of non-registered users it can be certificate from Local Authorities 3. Calculate compensation to be paid for wood trees Wood tree Unit cost Total compensation Type of the tree No The volume of the tree in AMD per m3 AMD per tree m3 1 2 3 4 5 Grand Total - - - 4. Calculate compensation to be paid for decorative trees Decorative tree Unit cost Total compensation Type of the tree No Size of the tree (mention the AMD per unit AMD per tree unit(sm, m) 1 2 3 4 5 Grand Total - - - 5. Calculate compensation to be paid for fruit trees Total Fruit tree (mention only one type per line) Unit cost Type of the compensation No tree Not-yet AMD per Seedling Productive AMD per tree productive unit 1 2 3 4 5 Grand Total - - - 6. Submit to APIU Date Reviewed by Signature Revised/final compensation estimate Comment 7. After PIU approval Total compensation Date of payment Owner signature confirming Name the payment Signature and date Contractor signature Name confirming the payment Signature and date CARMAC II Structure Removal – Contractor Form and Procedures:  Only remove structures if absolutely necessary e.g. bridge or wall blocks access to canal;  Do not remove structure without discussing with owner first;  Reassure owner that structure will be restored to original state following works completion;  Inform APIU of structures to be removed by submitting copies (1 per structure, with sections 1-2 complete) of this form along with pictures, before starting works;  Following rehabilitation complete section 4 and re-submit to APIU for their records. 1. Information on Structure (attach pictures) Location of structure (community) Location of structure (land plot lot and code) Type/name of structure Material of the Structure Purpose of use Reason for removal 2. Information on Owner Name of the Owner Document of the ownership* Passport data Contact address and phone number Date consulted Signature of owner * In case of registered owners it can be cadaster certificate, in case of leaseholders it can be a lease agreement or leas cadaster certificate, in case of non-registered users it can be certificate from Local Authorities 3. Submit to APIU (as needed APIU may inform WB) Date Reviewed by Signature Comment 4. Compensation for the structure (use valuation report of the licensed valuator) Total compensation Name of the structure Area (sq.m.) Unit price per sq.m. amount 5. Confirm owner satisfaction once structure is rehabilitated Owners signature and date Contractor signature and date ANNEX 10. MINUTES OF PUBLIC CONSULTATION MEETING Introduction Public consultation on the Resettlement Policy Framework (RPF) and Environmental and Social Management Framework (ESMF) for the Second Community Agriculture Resource Management and Competitiveness Project (CARMAC Project II) was held in two stages.  A 1 informal discussion with stakeholders was organized by APIU on 11 March 2014. st This discussion was aimed to present and discuss the preliminary approaches to be presented in the RPF and ESMF.  A 2 official public consultation was organized on 21 March 2014 after disclosure of the nd English and Armenian versions of the Draft RPF and draft ESMF. The Informal Consultation Date: March 11, 2014 Venue: Yerevan Aarhus Center – Public Environmental Information Centre in the Ministry of Nature Protection Time: 12:00 pm - 14:30 pm Agenda: 1. Presentation and discussion of the RPF prepared by Agriculture Projects Implementation Unit (APIU) State Institution (SI) resettlement consultant. Speaker – Zaruhi Hayrapetyan Resettlement Consultant, Member of the CARMAC Project II preparation team. 2. Presentation and discussion of the ESMF prepared by the APIU environmental and social expert. Speaker – Alice Savadyan Environmental and Social Consultant, Member of the CARMAC Project II preparation team This meeting was organized in Aarhus Public Environmental Information Center. Some 48 stakeholders and beneficiaries from RA ministries of Agriculture and Nature Protection, Village Mayors of RA Marzes, Scientific Centers under the RA Ministry of Agriculture, APIU Marz Support Teams (MST), Non-Governmental Organizations (NGO), farms engaged in livestock and representatives of Pasture User Associations Consumer Cooperatives, independent valuation companies, Sustainable Urban Development PIU (the Asian Development Bank), North South Investment Corridor PIU (the Asian Development Bank) actively participated in the consultation (list of the participants is presented below). Opening speech: Mr. G. Khachatryan, Director of APIU Mr. G. Khachatryan briefly presented the CARMAC Projects I and II and spoke about the main objectives, tasks and implementation mechanisms of the Projects, as well as about the activities under the Components of CARMAC Project I and those to be included in CARMAC Project II. After the presentation, Mr. Khachatryan answered the raised questions on new activities and important details of CARMAC Project II. The presenters were: 1. K. Torosyan – CARMAC Project I, Coordinator of Component 1 2. V. Ghukasyan – CARMAC Project I, Coordinator of Component 3 3. S. Tsarukyan - CARMAC Project I, Coordinator of Component 2 The Coordinators briefly presented the tasks of the Components, as well as the differences between the functions and objectives of the components included in CARMAC Project I and CARMAC Project II. Ms. Z. Hayrapetyan presented the draft RPF prepared for CARMAC Project II. After the presentation of the draft RPF the following issues were raised: 1. NGO representatives raised the issue of the limited functions envisaged in the RPF for the NGOs participation in the implementation process. 2. Valuation experts emphasized the inconsistency between some points in the designed methodology of evaluation and comprehensive RA Valuation Law and Standard, particularly, land valuation approach. 3. Resettlement specialists paid attention to the Entitlement Matrix and proposed to revise the compensation approaches to the legal land and structures owners in lines with RA laws and regulations. This feedback was welcomed by the APIU and all issues raised were subsequently addressed in the document. Particularly, with respect to the 1st point the subheading “2.6 Non-Governmental Organizations” was added under Chapter 2 “Institutional Framework” where the involvement of the NGOs was specified. NGOs were added in the Figure 1 Overview of key actors in resettlement and resettlement issues. With respect to the point 2 the Valuation methodology was re-written in accordance to the comments. With respect to the point 3 Entitlement Matrix was revised based on the RA laws and regulations and additional 15% compensation for the acquired legal lands and structures was added. Ms. A. Savadyan presented the draft ESMF prepared for CARMAC Project II. The purpose and development objectives of the Project, as well as the main principles of ESMF were explained. Possible environmental impacts and their respective mitigation measures were identified for each Component of CARMAC Project II. Particularly noted were environmental risks associated with infrastructural development subprojects and mandatory development of environmental mitigation and monitoring plans for each subproject. Ms A. Savadyan outlined the ESMF finalization process, including the public consultation meeting, which would be held on March 21, 2014. It was noted that the final version of ESMF will be disclosed on the APIU web page and through the WB Infoshop after WB approval. Ms. Savadyan mentioned that the objective of public disclosure of the document is to promote public awareness on the ESMF drafted for CARMAC Project II, as well as receiving opinions and suggestions of the public. After the presentation of the preliminary draft ESMF, the following issues were raised:  How could NGOs and beneficiary communities be more actively involved in the process of supervision of environmental impact mitigation measures during Project implementation?  Where, on which web sites or in which newspapers will the environmental information (EMMP, environmental reports) be disclosed once the project is started? Director of APIU responded to the issues raised. He encouraged participation of local communities in the oversight of contractors’ performance in the aspects that are easy to follow by visual observation. This would include on-site storage and timely removal of waste from the construction sites, maintenance of local roads free from construction materials and waste, and other similar indicators of good performance which directly affect local communities. In case issues are identified, project affected people can (i) contact contractors’ management – the APIU will guarantee that contact information of construction contractor is posted at the work site; and/or contact APIU using the grievance redress mechanism that APIU is also mandated to maintain. Director of APIU and Environmental Consultant mentioned that for infrastructural sub-projects Environmental Management Plans (EMPs) must be developed to specify what types of mitigation measures shall be applied during works. These EMPs, while in drat, will be published through the APIU’s web-page and be made available for local communities for comments prior to their finalization. List of Participants No. Name, surname Position Contact information 1 Marine Mukhsyan Coordinator’s Assistant of 094 88-76-89 Aragatsotn MST, APIU 2 Artak Khachatryan Coordinator of Shirak MST, APIU 091 01-35-41 3 Hamlet Petrosyan Community Mayor, RA Shirak marz, 091 03-23-01 Basen village 4 Cherv Vardanyan Chairman of Shenakert-11 091 96-96-23 Cooperative 5 Lia Asatryan Consultant on Environmental 093 42-40-79 Projects 6 Vahan Ghukasyan Coordinator of Component 3, APIU 091 01-35-15 7 Hayk Karapetyan Lawyer, APIU SI 091 01-93-95 8 Manvel Harutyunyan Community Mayor of Lernapar, RA 093 51-20-95 Aragatsotn marz 9 Nune Sarukhanyan Kanach arahet NGO 091 43-82-25 10 Movses Movsisyan Community Mayor of Lernakert, RA 094 82-15-51 Shirak marz 11 Armenak Leading specialist of Component 3, 077 31-07-03 Hovhannisyan APIU 12 Harutyun Coordinator’s Assistant of Shirak 077 85-96-85 Artashesyan MST, APIU 13 Razmik Sahakyan Scientific Center for Food Safety 093 78-45-06 Risks Evaluation and Analyzes, Head of Fodder Production Section 14 Artur Karapetyan Community Mayor of Norashen, RA 093 22-12-72 Aragatsotn marz 15 Artsruni Karapetyan Chairman of Cooperative of 093 77-76-07 Norashen community, RA Aragatsotn marz 16 Sona Tsarukyan Coordinator of Component 2, APIU 091 01-35-28 17 Irena Arustamyan Monitoring Specialist, APIU SI 091 01-93-99 18 Gayane Sargsyan Director of Scientific Center of 093 57-62-05 Vegetable and Industrial Crops, RA Ministry of Agriculture 19 Karen Torosyan Coordinator of Component 1, APIU 091 46-44-42 20 Alisa Savadyan Consultant on Environmental Issues, 091 20-42-15 APIU 21 Armen Vanyan Deputy Director of APIU 091 21-73-32 22 Zaruhi Hayrapetyan Consultant on Resettlement Issues, 095 23-59-50 APIU 23 Lala Tevosyan Ecologist, Armenian Technological 099 22-06-42 Academy, NGO 24 Hrachya Sahakyan Lorut Village Mayor, RA Lori marz 093 74-72-44 25 Norik Mkrtumyan Village Mayor of Karinj, 094 17-07-57 RA Lori marz 26 Ara Grigoryan Chairman of Dsegh Cooperative, 094 99-07-88 Lori marz 27 Andranik Karapetyan Coordinator of Lori MST, APIU SI 091 01-35-44 28 Khoren Badalyan Coordinator of Gegharkunik MST, 091 01-35-26 APIU 29 Rubik Ghukasyan Verin Getashen Village Mayor, 094 20-89-71 RA Gegharkunik marz 30 Revik Gevorgyan Chairman of Cooperative of Verin 093 98-87-44 Getashen, RA Gegharkunik marz 31 Karen Darbinyan Chinchin Village mayor, RA Tavush 093 69-17-49 marz 32 Arevik Hovsepyan Country Water Partnership, NGO 091 530292 33 Zaruhi Khachatryan Sustainable Water Environment, 096343578 NGO 34 Garnik Kocharyan Chairman of Tavush Cooperative 093 04-29-24 35 Armen Saghatelyan Director of Ecocenter of National 091 41-80-29 Academy of Sciences 36 Artur Petrosyan Head of Forestry Department of the 095 56-52-91 RA Ministry of Agriculture 37 Kamo Khachatryan Chief Specialist of Component 1, 091 41-36-74 APIU 38 Siraq Yerevan Construction Investment 099 33-33-09 Gyulbudaghyan PIU 39 Ashot Mirzoyan President of Consumers’ Support 093 36-73-27 Center NGO 40 Armine Yedigaryan North-South PIU 091 72-72-45 41 Sona Poghosyan North-South PIU 093 59-86-85 42 Tigran Grigoryan Project Director, UPTIME Ltd. 093 90-05-04 43 Margarita Karimayan For Sustainable Human 093 54-06-97 Development, NGO 44 Yurik Baghdasaryan Lanjaghbyur Village Mayor, RA 055 88-98-38 Gegharkunik marz 45 Gagik Khachatryan Director, APIU 010 29-73-01 46 Nune Darbinyan Ecoglob, NGO 091 41-83-77 47 Ruzanna Voskanyan Environmental Specialist, 094 08-30-88 Sustainable Urban Development PIU 48 Tatyana Sargsyan Monitoring and Evaluation Specialist, 055 58-25-08 Sustainable Urban Development Project Photos Presentation of RPF and ESMF Discussion, questions and answers The Official Public Consultation Date: March 21, 2014 Venue: Yerevan Aarhus Center – Public Environmental Information Centre in the Ministry of Nature Protection Time: 12:30 pm - 14:30 pm The official Public Consultation was organized by APIU in the Aarhus Public Environmental Information Center after the official disclosure of the draft RPF and ESMF in English and Armenian (on March 14, 2014). Some 36 stakeholders and beneficiaries from the RA Ministry of Agriculture, village Mayors of RA Marzes, APIU SA Marz Support Teams (MST), NGO, farms engaged in livestock and representatives of Consumer Cooperatives and Pasture User Associations actively participated during the public consultation (list of the participants are presented below). Agenda: 1. Presentation and discussion of the ESMF Speaker – Alice Savadyan Environmental and Social Consultant, Member of the CARMAC Project II preparation team 2. Presentation and discussion of the RPF Speaker – Zaruhi Hayrapetyan Resettlement Consultant, Member of the CARMAC Project II. Ms A. Savadyan presented the main goals of the public consultation meeting and emphasized that feedback from participants on social risks for each component of CARMAC II and respective mitigation measures were particularly sought during the consultation. After the presentation Ms. A. Savadyan answered the raised questions: Questions and answers: Question: Z. Khachatryan – Sustainable Water Environment NGO Who will be responsible for environmental documents, particularly EMMP development for infrastructural investments and grant schemes? Moreover, what are the differences between these two types of subprojects? Answer: A. Savadyan Environmental and social impact specialists of APIU will be responsible for environmental screening and EMMP development under the Component 1 infrastructural subprojects. For each subproject EMMP should be developed, including specific environmental and social impact mitigation measures that depend on subproject types (irrigation network, watering system, etc.). Under Component 2 grants will be provided based on the submitted applications and if a sub- project requires development of EMP, the applicants will be responsible for that. APIU environmental specialist will provide guidance to applicants on the development of EMPs as well as on their implementation over the course of a grant-financed subproject. Question: N. Sarukhanyan – Green line NGO Who will be responsible for environmental supervision of the Project? Answer: A. Savadyan Overall responsibility for environmental performance under the CARMAC Project II is with APIU. Supervision of environmental compliance of the Project-financed activities will be undertaken by component coordinators and environmental and social specialists of APIU. Question: A. Hovsepyan – CWP-Armenia NGO How will the public be informed about infrastructural subprojects and their environmental documents? Answer: A. Savadyan For each subproject EMMP should be developed and publicly disclosed. Announcements with a date and a time of public consultation meetings will be placed on the APIU’s web page. Depending on the size and scale of subprojects, announcements about upcoming public consultation meetings may also be made in local newspapers and TV. Ms. A. Savadyan presented to the audience possible social risks of various Project Components. It has been mentioned that as a result of the Project implementation, apart from long-term positive social impacts, there may be short-term negative impacts. These impacts may have significant influence on the course of the Project implementation and therefore must be carefully considered at the Project design stage. During the implementation of all Components, separate groups of people - especially women, youth, vulnerable groups, persons with disabilities and ethnic minorities may fall out of the Project. Therefore, APIU is committed to specifically target these groups of people for enabling their participation in the Project. Not only the Project must not affect these groups in a negative manner, but their full participation and amplification of their benefits from the Project will be actively sought. Ms. Savadyan also noted that grievance redress mechanism will be put in place and operated throughout the Project implementation, so that the Project-related concerns, questions, and possible complains are submitted, received, handled and flowed up in a timely and organized manner. Meeting participants were asked to provide feedback on whether they see any additional social risks to the Project implementation which are not covered in the present draft ESMF and how would they suggest mitigating those risks. Q&A, opinions and comments Question: N. Darbinyan – Ecoglobe NGO It is very important to involve in the Project all the groups of the poor communities and different groups of beneficiaries, and for that reason it is very important to provide additional consultancies and conduct explanatory work with women, youth and other groups to fill in the information gaps. In all the Components, it is very important to discuss the issue of strengthening women’s role, taking into consideration that the membership of women in the cooperatives, including their representation in the boards must be encouraged and their participation in the activities implemented by the cooperatives must be enhanced. Answer: G. Khachatryan, A. Savadyan CARMAC II Project intends to expand participation of women and to enhance their role in the Cooperatives, but the communities themselves should also propose some solutions, as there are communities where women do not have any participation neither in social life nor in decision making process. Comment Syunik MST Coordinator, R. Sardaryan There are communities in our Marz, where the work of Cooperatives and general opinion is organized by women. For example, in Qarahunj Community, the Mayor is a woman, and women have big role and actively participate in the solution of all the issues. Question: N. Darbinyan – “Ecoglobe” NGO How can women be encouraged to participate in the subprojects and make decisions on behalf of cooperatives, if in some communities women are not allowed to participate even in general meetings. Answer: A. Savadyan The subproject selection criteria may be designed the way encouraging women’s involvement in organizations/cooperatives. Question: S. Ayvazyan – Aarhus Center Coordinator What category lands will be used for the establishment of pastures? Will any deforestation occur? Answer: A. Savadyan The pasture use will be expanded not through the deforestation but through the improvement of degraded lands and bringing them back to use. Generally, if any subproject is expected to have notable environmental impacts, an environmental management plan will be developed for such subproject to ensure that the risks are avoided or properly mitigated. Question: S. Ayvazyan Will any of the Project supported activities be subject to Environmental expert review, and if yes, then what steps will be taken? Answer: A. Savadyan For some cases defined by the RA legislation, an Environmental expert review may be required and activities may be financed only upon issuance of a positive conclusion of RA Ministry of Nature Protection Such necessity may arise especially for infrastructural subprojects. If this is the case, the procedure required by the national law must be followed, including public consultations on a subproject design. The CARMAC Project II will not finance any activity that requires a positive conclusion from the national environmental authority and fails to obtain it. Savadyan also mentioned the issue of the grievance submission mechanism and asked Mr. G. Khachatryan to present in details how the procedure will be implemented in the frameworks of the Project. Comments: G. Khachatryan In the development stage of each Project, one must be ready and also to have definite approach to the issue of grievance submission by the beneficiaries and, naturally, various types of claims and grievances will arise in this Project as well. Concerning this issue, Mr. Khachatryan mentioned that in the framework of the current CARMAC Project II, the grievance redress mechanism is functioning properly, which will be applied for the CARMAC Project II as well. Representatives of the beneficiary organizations presented, on the examples of their communities, how and on which levels the mechanism is functioning. The grievance redress mechanism will be described in detail in the Project’s Operation Manual. The received feedback was welcomed by the APIU and all issues raised during the consultation were subsequently reflected in the ESMF document. In particular, with respect to potential social impacts of the Project, Chapter 5, sub-chapter 5.1 was revised to reflect additional possible social risks related Component 1. In sub-chapter 5.2 additional measures to promote the involvement and participation of women, youth and vulnerable people in the Project, and to ensure timely information-sharing to beneficiaries were included. In Chapter 6, sub-chapter 6.1 additional possible social risks for Component 2 were included and their respective mitigation measures reflected in subchapter 6.2. In Chapter 7, sub-chapter 7.1, the risk of limited participation of woman and youth in various trainings to be offered under the Project and in the capacity building activities in Component 3, due to lack of information and insufficient capacity was also reflected in the ESMF and relevant mitigation measures were added in sub-chapter 7.2. These include targeting these groups of potential beneficiaries during information dissemination campaigns, as well as ensuring smooth operation of grievance redress mechanisms. Question: Why the budget for resettlement costs should be generated from the loan and not from the local government budgets? We will propose to have a cost sharing of the budget like it will be done in grant sub-projects. Answer: All the efforts will be done to minimize the impact on the private land. If it is not possible, it means that the other design option is more expensive. We believe that the adopted approach is fairer and will allow the Project not to exclude the poorer communities because of the limitations of the co-sharing. Question: Is it true, that even project affected persons who do not have any registration will be compensated for the trees and crops? Answer: Yes, in accordance with the RPF and the WB policy, a project affected person that has no legal claims to the land, will be compensated for all the improvements done on the land - including buildings, crops, trees etc. Question: How the land compensation will be calculated: based on the cadastral or actual land type/land usage? Answer: The decision will be done in favor of project affected people. If the land’s cadastral category is higher than factual (for example it is commercial land, but is used as pasture) then the land will be valued based on the cadastral type. If the land’s actu al usage type is higher, then cadastral (for example, pasture land is used as orchard), then the actual usage will be used during the land valuation process. Question: In what stages of a subproject cycle will public consultations be organized? Answer: Public consultations will be organized during the design stage, before the construction works commence. Minutes of meetings will be prepared for each public consultation. List of participants N Name, surname Position Contact information o. 1 Vanik Qaryan RA Lori Marz, Ahindzor Community 098 04-07-89 Mayor 2 Armen Avetisyan RA Gegharkunik Marz, Head of 077 60-36-99 Zolaqar Cooperative 3 Benik Matevosyan RA Lori Marz, Head of Ahindzor 098 53-01-17 Cooperative 4 Babik Khachatryan RA Gegharkunik Marz, Head of 077 14-23-44 Geghhovit Cooperative 5 Andranik Karapetyan Coordinator of Lori MST 091 01-35-44 6 Khoren Badalyan Coordinator of Gegharkunik MST 091 01-35-26 7 Armen Vanyan Deputy Director of APIU 010 29-73-03 8 Alla Hovhannisyan Translator, APIU SI 098 73-66-20 9 Sona Tsarukyan Coordinator of Component 2, APIU 091 01-35-28 10 Silva Ayvazyan Coordinator of Aarhus centers in 010 55-13-64 Yerevan 11 Emma Mkrtchyan Consultant, APIU 099 01-70-30 12 Alisa Savadyan Environmental Consultant, APIU 091 20-42-15 13 Levon Janpoladyan Green Lane, NGO 010 57-57-79 14 Hrahat Barseghyan Green Lane, NGO, Agronomist 093 10-09-40 15 Marine Mukhsyan Coordinator’s Assistant of Aragatsotn 094 88-76-89 MST 16 Andranik Shamoyan RA Aragatsotn Marz, Nerkin 077 18-69-99 Sasnashen Community Mayor 17 Irena Arustamyan Monitoring Specialist, APIU 091 01-93-99 18 Zaruhi Hayrapetyan Consultant on Resettlement Issues, 095 23-59-50 APIU 19 Hayk Karapetyan Lawyer, APIU 091 01-93-95 20 Yeranosyan Artush Engineer-Constructor, APIU 091 01-35-48 21 Vardan Khostikyan Engineer-Constructor, APIU 091 41-30-84 22 Gagik Khachtryan Director, APIU 010 29-73-01 23 Artak Khachatryan Coordinator of Shirak MST 091 01-35-41 24 Harutyun Artashesyan Coordinator’s Assistant of Shirak MST 077 85-96-85 25 Hayk Petrosyan RA Shirak Marz, Head of Basen 077 78-37-00 Cooperative 26 Kamo Khachatryan Chief Specialist of Component 1, 091 41-36-74 APIU 27 Karen Torosyan Coordinator of Component 1, APIU 091 46-44-42 28 Albert Haroyan RA Aragatsotn Marz, Tatush Village 098 11-00-59 Mayor 29 Nune Darbinyan Ecoglobe, NGO, President 091 41-83-11 30 Gevorg Galstyan RA Aragatsotn Marz, Avan Village 093 20-95-63 Mayor 31 Agharon Voskanyan RA Shirak Marz, Jrarat Village Mayor 093 70-40-77 32 Armenak RA Shirak Marz, Head of Aghin 096 58-50-18 Hambardzumyan Cooperative 33 Arevik Hovsepyan Country Water Partnership, NGO 091 53-02-92 34 Zaruhi Khachatryan Sustainable Water Environment, NGO 096 34-35-78 35 Artur Petrosyan Head of Forestry Department of the 095 56-52-91 RA Ministry of Agriculture 36 Rubik Sardaryan RA Syunik MST Coordinator 091 01-35-68 Photos Presentation of ESMF and RPF Discussion, comments, questions, answers 70