SFG2382 V3 CONSULTING SERVICES FOR PREPARATION OF RESETTLEMENT ACTION PLANS (RAP) FOR WATER SUPPLY AND WASTEWATER INVESTMENTS IN FOUR RAYONS (AGHSU, ISMAYILLI, SHABRAN, SIYEZEN) Baku, December, 2015  (Revised in March, 2016)  Consulting Engineering Overseas Management Group  A division of Aim Texas Trading, LLC www.aimtexas.com         Document Title : Land Acquisition & Monetary Valuation Plan Status : Final Date : December, 2015 Last Revision : March, 2016 Project Name : Second National Water Supply & Sanitation Project (SNWSSP) of Republic of Azerbaijan Client : Amelioration & Water Management Open Joint Stock Company (AWM OJSC) of Republic of Azerbaijan Loan Number : 4937 – AZ Project ID : P109961 Consultancy : Preparation of Resettlement Action Plans for Water Supply and Wastewater Investments in Four Rayons (Aghsu, Ismayilli, Shabran, and Siyezen) Consultant : Aim Texas Trading LLC , Engineering Department Overseas Management Group, Central Asia Division Reference : CA\Az\Baku\SNWSSP-Az\RAPs-Draft/LA&MVP-387/17 Date of Contract : May 31, 2011                                           Shabran Rayon SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents Table of Contents …………………………………………………………………………………………………………… i List of Annexe ………………………………………………………………………………………………………………. v List of Tables ………………………………………………………………………………………………………………….. v List of Figures …………………………………………………………………………………………………………………. vi Acronyms ………………………………………………………………………………………………………………………. viii Definition………………………………………………………………………………………………………………………… ix Executive Summary …………………………………………………………………………………………………………… x Chapter I 1 Introduction & Methodology………………………………………………………………….. 1.1 Relief of the Project Area, Project Corridor, and Land Required for the Project………………………... 1.1 1.1.1 Administrative Boundaries of the Project Corridor……………………………………………….. 1.3 1.1.2 Land Need for the Project…………………………………………………………………………... 1.4 1.2 Socio-economic Environment in Shabran………………………………………………………………….. 1.6 1.2.1 Land Use…………………………………………………………………………………………….. 1.6 1.2.2 Key Socio-economic and Demographic Indicators……………………………………………… 1.7 1.2.3 Living Conditions……………………………………………………………………………………. 1.7 1.2.4 Employment, Unemployment, Average Wages / Salaries……………………………………… 1.8 1.2.5 GDP & Forecasts……………………………………………………………………………………. 1.8 1.2.6 Project Affected Groups……………………………………………………………………………. 1.8 1.3 Scope of the Land Acquisition & Monetary Valuation Plan (LA&MVP)…………………………………. 1.11 1.4 Project Background……………………………………………………………………………………………. 1.12 1.5 Methodology……………………………………………………………………………………………………. 1.13 1.5.1 Data Collection……………………………………………………………………………………….. 1.13 1.5.2 Stakeholders Consultations………………………………………………………………………… 1.15 1.5.3 Data Analysis………………………………………………………………………………………… 1.16 1.6 Report Structure ……………………………………………………………………………………………….. 1.17 Chapter II 2 Policy, Legal and Administrative Framework ……………………………………………… 2.1. Involuntary Resettlement requirements under the World Bank Involuntary Resettlement Policy (OP 4.12) …………………………………………………………………………………………………………….. 2.1 2.2 Azerbaijan Laws and Regulations on Land Acquisition and Resettlement……………………………… 2.2 2.2.1 Azerbaijan Constitution (Nov. 12, 1995)………………………………………………………... 2.2 2.2.2 Land Code (approved by decree # 695, on June 25, 1999)………………………………….. 2.3 2.2.3 Civil Code, September 01, 2000……………………………………………..………………….. 2.3 2.2.4 Civil Procedures Code, September 01, 2000………………………………………………….. 2.4 2.2.5 Law on Acquisition of Lands for States Needs dated April 20, 2010 & Presidential Decree i Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents # dated Feb. 16, 2011…………………………………………………………………………….. 2.4 2.2.6 Law on Land Market dated 1999 and Law on Land Reform dated 1996…………………… 2.4 2.2.7 Presidential Decree (10 January 1997, N534) - On Rules about Selling and Buying the Lands and Presidential Decree (15 March 2002, N274) - On Charter about Rules Municipalities` Lands………………………………………………………………………………. 2.5 2.2.8 Presidential Decree (23 October 2003, N972) - On Additional Steps Relating to Implementation of Law “On Land Rent” and approving the Rules about the running of auctions relating to the allocation (ownership or renting) of state or municipality lands…… 2.5 2.2.9 Cabinet of Ministers Resolution N158 (1998) – On Establishment of New Normative Prices for Land in the Republic of Azerbaijan………………………………………………….. 2.5 2.2.10 Cabinet of Ministers Resolution N110 (1999) – On Approval of Regulations for an Inventory Cost Estimation of Buildings Owned by Natural Persons…………………………. 2.5 2.2.11 Cabinet of Ministers Resolution N42 (March 15, 2000) – On Some Normative and Legal Acts Relating to the Land Code of the Republic of Azerbaijan………………………………. 2.5 2.2.12 Land Tenure and Title…………………………………………………………………………….. 2.6 2.2.13 Power of Eminent Domain………………………………………………………………….…….. 2.6 2.2.13.1 Legal Procedure for Compulsory Purchase of Land…………………………….. 2.6 2.3 Compensation Valuation Methods in Azerbaijan…………………………………………………………… 2.9 2.3.1 Land Compensation……………………………………………………………………………….. 2.8 2.3.2 Permanent Acquisition of Land…………………………………………………………………… 2.8 2.3.3 Compensation for Immovable Assets and Land Attachments………………………………… 2.8 2.4 Comparison of Azerbaijan Government Policy and WB Policy on Resettlement (WB OP 4.12 on Involuntary Resettlement)……………………………………………………………………………….......... 2.8 2.4.1 Resettlement Planning & Procedural Requirements…………………………………………… 2.9 2.4.2 Public Consultation and Participation……………………………………………………………. 2.10 2.4.3 Compensation Eligibility…………………………………………………………………………… 2.10 2.4.4 Income Restoration………………………………………………………………………………… 2.12 2.4.5 Extent of Compensation and Resettlement Assistance……………………………………….. 2.12 2.4.6 Legal Assistance to Project Affected People (PAPs)………………………………………….. 2.13 2.5 Project Measures relating to Compliance with WB/IFC Requirements…………………………………… 2.13 2.6 Administrative / Institutional Framework……………………………………………………………………... 2.14 2.6.1 Organizational Framework………………………………………………………………………... 2.14 2.6.2 Institutional Roles and Responsibilities………………………………………………………….. 2.15 Chapter III 3 Social Impacts Of The Project…………………………………………………………………. 3.1 Potential Social Issues of Project Area………………………………………………………………………. 3.1 3.1.1 Positive Impacts……………………………………………………………………………………. 3.1 3.1.2 Negative Impacts…………………………………………………………………………………... 3.2 3.1.2.1 Pre-construction Phase Negative Impacts…………………………………………. 3.4 3.1.2.2 Construction Phase Negative Impacts……………………………………………... 3.4 3.1.2.3 Operation Period Negative Impacts………………………………………………… 3.7 ii Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents 3.1.2.4 Operation in case of Accidents and Emergency Situation……………………….. 3.10 3.2 Impacted Properties……………………………………………………………………………………………. 3.10 3.2.1 Impacted Properties on the Pre-construction Phase…………………………………………… 3.11 3.2.2 Impacted Properties on the Construction Phase……………………………………………….. 3.12 3.2.2.1 Properties Losing Part of the Lands Permanently For Above Groung Facilities (AGFs)…………………………………………………………………………………. 3.12 3.2.2.2 Grazing and Pasture Lands Affected Temporarily, Losing of Use………………. 3.12 3.2.2.3 Agricultural Lands Losing Part of Perennial Crops (trees - fruit or non-fruit)…... 3.13 3.2.2.4 Agricultural Lands Losing Part of the Seasonal Crops…………………………… 3.13 3.2.2.5 Project Affected Residential Plots and Homestead Lands ………………. 3.14 3.2.2.6 Public / Municipal Plots to be Impacted……………………………………………. 3.14 3.2.3 Properties to be Impacted on the Operation Period……………………………………………. 3.16 3.2.3.1 Losing Income from the Loss of Perennial Crops due to Restriction of Use with Establishing Servitude on the Lands to be Affected………………………………. 3.16 3.2.3.2 Losing Income from the Loss of Annual / Seasonal Crops due to Routine Maintenance Activities……………………………………………………………….. 3.16 3.2.3.3 Privately owned/used/possessed Land Parcels that are severely affected by the Project …………………………………………………………………………….. 3.17 3.2.3.4 Project affected Vulnerable PAPs ………………………………………………….. 3.17 3.3 Summary of Project Impacts …………...…………………………………………………………………….. 3.17 Chapter IV 4 Stakeholders Consultation…………………………………………………………………….. 4.1 Direct and Indirect Stakeholders at Different Hierarchical Levels………………………………………… 4.1 4.2 Stakeholder Covered in Social Survey………………………………………………………………………. 4.1 4.3 Overall Positive Impact Identified…………………………………………………………………………….. 4.2 4.4 Overall Negative Impact Identified………………………………………….……………………………… 4.2 4.5 Views of Stakeholders………………………………………………………………………………………… 4.2 4.6 Remedial measures / Strategies to Mitigate the Negative Impacts……………………………………… 4.3 4.7 Consultation Strategies……………………………………………………………………………………….. 4.4 4.8 Disclosure of Information………………………………………………………………………………………. 4.4 4.9 Stakeholder and Public Hearing Consultation ……………………………………………………………… 4.5 4.10 Raised Concerns from the Local Community during the Performance of this SIA ……………………... 4.7 Chapter V 5 Mitigation Measures……………………………………………………………………………. 5.1 Project Resettlement Principles and Scope of Mitigation…………………………………………………. 5.1 iii Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents 5.2 Impact Mitigation Modalities………………………………………………………………………………….. 5.2 5.3 Mitigation of Negative Impacts……………………………………………………………………………….. 5.3 5.3.1 For Construction Phase Impacts…………………………………………………………………. 5.3 5.3.2 Operation Period Phase Impacts………………………………………………………………… 5.5 5.4 Impacts on Vulnerables Groups……………………………………………………………………………… 5.7 5.5 Summary of Entitlements……………………………………………………………………………………… 5.8 Chapter VI 6 Implementation Mechanism…………………………………………………………………… 6.1 Implementation Plan…………………………………………………………………………………………… 6.1 6.2 Institutional Roles and Responsibilities………………………………………………………………………. 6.2 6.2.1 Compensation and Disbursement Mechanism…………………………………………………. 6.5 6.3 Grievance Redress Mechanism………………………………………………………………………………. 6.5 6.3.1 Proposed Grievance Redress Steps and Procedures…………………………………………. 6.6 6.3.2 Redress Committee Meetings, Hearings, Proceedings and Recommendations……………. 6.7 6.3.3 Implementation of Decision of GRC……………………………………………………………… 6.7 6.3.4 Monitoring and Evaluation Mechanism………………………………………………………….. 6.7 6.4 Strategies to Obtain Community Support to Minimize Negative Social Impacts through Awareness Programs………………………………………………………………………………………………………… 6.12 Chapter VII 7 Cost Calculation …………………………………………..…………………………………….. 7.1 Market Values of Lands, Yield, and Other Cost Items……………………………………………………… 7.1 7.2 Cost Calculation for the Lands to be premanently acquired for Above Ground Facilities (AGFs)…….. 7.5 7.3 Cost Calculations for Private Lands to be Affected………………………………………….…………….. 7.6 7.4 Costs of Mitigation Measures for Governmental and Municipal Lands to be Affected by the Pipeline 7.8 Construction…………………………………………………………………………………………………….. 7.5 Costs of Other Mitigation Measures………………………………………………………………………….. 7.9 7.6 Total Costs of Mitigation Measures for Project Affected Properties and PAPs………………………….. 7.10 iv Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents List of Annexe : Annex 1 Census and Set Questionnaire for Socio-economic Surve Annex 2 Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Annex 3 Terms of Reference of the Assignment Annex 4 Calculation Details of Costs of Mitigation Measures Annex 5 List of PAP List of Tables : Chapter I Table 1,1 Predicted Population Figures to be used in the Systems Design…………………………………….... 1.2 Table 1,2 Sanitary buffers according to SNIP II.04.02 (and 0.3) – 84 and 85 for the pipelines…………………. 1.4 Table 1.3 Breakdown of Project Affected Land Parcels according to Land Tenure per Type of Impact ………. 1.4 Table 1.4 Land Use characteristics in the Rayon……………………………………………………………………. 1.6 Table 1.5 Key socio-economic indicators of the Project area……………………………………………………… 1.7 Table 1.6 Main Indicators of the Labor Market – Country Level & Rayon Level……………………….………… 1.8 Table 1.7 Retail Sales Development………………………………………………………………………………..…. 1.8 Table 1.8 Project affected Communities along the project elements…………………………………………..….. 1.9 Table 1.9 Population Profile of the Project affected Communities along the project elements, by 2014 and the number of directly affected PAPs according to the locations……………………………………….. 1.9 Table 1.10 Household Income by Sector in the Project Area…………………………………………………….….. 1.10 Table 1.11 Comperative Consumption Expenditures of Households in Shabran…………………………………. 1.11 Table 1.12 Minimization of the Project Social Effects as a Result of The activities Described Above ………….. 1.13 Table 1.13 Data Sources…………………………………………………………………………………………….…… 1.16 Chapter II Table 2,1 Entitlement Categories to be used for determining Eligibility for Compensation……………………… 2.12 Table 2,2 Project Measures Relating to Compliance with WB/IFC Requirements……………………………….. 2.14 Table 2,3 Land Acquisition & Resettlement Roles and Responsibilities……………………………………….….. 2.15 Chapter III Table 3.1 Project Schedule………………………………………………………………………………………………… 3.2 Table 3.2 Impact Assessment Criteria …………………………………………………………………………………… 3.3 Table 3.3 Summary of Social and Economic Impacts of the Project………………………………………………….. 3.3 Table 3.4 Details of Affected Public/Private Land Parcels and PAPs………………………………………………… 3.11 Table 3.5 Land Required for Above Ground Facilities………………………………………………………………….. 3.12 Table 3.6 Temporary Loss of Use of Grazing and Pasture Lands…………………………………………………….. 3.12 Table 3.7 Inventory of all Trees (fruit and non-fruit) Cut within the Project Corridor………………………………… 3.13 Table 3.8 Breakdown of project affected fruit trees according to sort ………………………………………………… 3.13 Table 3.9 Private Agricultural lots that will be Impacted by the Project, Losing Part of the Seasonal Crops (20- m Project Corridor)……………………………………………………………………………………………… 3.14 Table 3.10 Municipal & GovernmentalAgricultural Properties that will be Impacted by Project (20-m Project Corridor……………………………………………………………………………………………….……….. 3.14 Table 3.11 Residential Plots & Homestead Landswhich will be Impacted by the Project in the City (within 6-m Project Corridor)…………………………………………………………………………………………………. 3.14 Table 3.12 Municipal Grazing Lands to be Impacted (within 20-m Project Corridor)………………………………… 3.15 Table 3.13 Impacted Municipal Residential Plots (within 6-m Project Corridor)………………………………………. 3.15 Table 3.14 Impacted Municipal Useless Lands (within 20-m and 6-m Project Corridor)……………………………... 3.15 Table 3.15 Governmental Irrigation Property that will be Impacted (within 20-m and 6-m Project Corridor)………. 3.15 Table 3.16 Properties that will be Impacyed by the Restriction of Use and Planting Restriction……………………. 3.16 Table 3.17 Properties to be Impacted by the Loss of Annual/Seasonal/Perennial Crops due to Right of Access for routine maintenance activities throughout the Operation Period………………………………………. 3.17 Table 3.18 List of Land Parcels severely Affected by the Project ……………………………………………………… 3.17 Table 3.19 List of Vunerable PAPs ………………………………………………………………………………………… 3.17 Table 3.20 Severity of Impacts…………...…………………………………………………………………………………. 3.18 v Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents Chapter IV Table 4.1 Stakeholders’ Statements…………………………………………………………………………………… 4.2 Table 4.2 Stages of Stakeholders Participation………………………………………………………………………. 4.4 Table 4.3 Details of meetings held in the consultation process…………………………………………………….. 4.5 Chapter V Table 5.1 Assitance to Vunerable Groups……………………………………………………………………………. 5.7 Table 5.2 Entitlements for Permanent Acquisition of Land for Above Ground Facilities and Permanent Access Roads……………………………………………………………………………………..………….. 5.9 Table 5.3 Entitlements for Temporary Use of Land in 20-metre Pipeline Corridor, and Construction 5.10 Contractor’s Camp Site and Warehouse during Construction Period………………………………….. Table 5.4 Entitlements for Rights of Access – 6-m strip over the Pipelines & Restriction of Use over 20 m corridor………………………………………………………………………………………………………… 5.11 Chapter VI Table 6.1 Major Events on the Course of Implementation ………………………………………………….………. 6.1 Table 6.2 Land Acquisition & Resettlement Roles and Responsibilities…………………………………………... 6.3 Table 6.3 Matrix for Managing Negative Social Impacts ……………………………………………………………. 6.4 Table 6.4 Positions and Duties of the GRC Members……………………………………………………………….. 6.6 Table 6.5 Monitoring & Evaluation Indicators…………………………………………………………………………. 6.8 Table 6.6 Awareness Programs for targeted groups………………………………………………………………… 6.10 Table 6.7 Major Aspects to be Included to Awareness / Training Programs……………………………………… 6.12 Chapter VII Table 7.1 Impacted Lands Market Values Used in the Cost Calculations…………………………………….…… 7.1 Table 7.2 Yield and Market Values of Annual Crops (Grain)………………………………………………………... 7.2 Table 7.3 Yield and Market Values of Seasonal Crops (Clover)………………………………………………….… 7.2 Table 7.4 Market Values of Seasonal Crops (various vegetables) from Homestead Lands……………….……. 7.2 Table 7.5 Yield and Market Values of Perennial Crops (Fruit and non-fruit trees)……………………………….. 7.3 Table 7.6 Labor and Other Cultivation Costs for 1 Hectare Agricultural Land…………………………………….. 7.3 Table 7.7 Cost of Soil Recovery or Land Preparation Cost for 1 Hectare Agricultural Land and Homestead Lands…………………………………………………………………………………………………………... 7.4 Table 7.8 Severe Impact Allowances …………………………………………………………………………………. 7.5 Table 7.9 Livelihood Assistance to Vulnerable Households 7.5 Table 7.10 Costs of Mitigation Measures for the Lands to be permanentley Acquired for AGFs………………… 7.6 Table 7.11 Total Costs of the Mitigation Measures for Pirivate Agricultural Lands to be Affected by Pipeline Construction…………………………………………………………………………………………………... 7.7 Table 7.12 Costs of Mitigation Measures for Private Residential & Homestaead Lands Affected……………….. 7.7 Table 7.13 Costs of Mitigation Mesures for governmental / Municipal Grazing, Useless, Residential and Agricultural Lands affected by the Pipeline Construction……………………………………………….. 7.8 Table 7.14 Costs of Public Awareness Programs……………………………………………………………………… 7.9 Table 7.15 Costs to be Incurred during Performance of VC & LAC…………………………………………………. 7.9 Table 7.16 Estimated Costs to be Incurred during Performance of VC & LAC…………………………………….. 7.10 Table 7.17 Total Costs of Mitigation Measures………………………………………………………………………… 7.10 List of Figures : Chapter I Figure 1.1 Project Corridor in Shabran…………………………………………………………………………… 1.2 Figure 1.2 Project Corridor and ROWs…………………………………………………………………………… 1.3 Figure 1.3 Cadastral Maps designed by Cadastre Department of SRERS, showing land ownerships and part of the lots that are affected by the Project activities……………………………..…………….. 1.14 vi Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents Chapter II Figure 2.1 The legal procedures for compulsory purchase of land (Eminent Domain), (Source: Civil Procedures Code of Azerbaijan, September 01, 2000)…………………………………………… 2.7 Figure 2.2 Types of Ownership and Livelihood Interest in Land in Azerbaijan……………………………… 2.11 Chapter III Figure 3,1 Pipelines (Drinking water transmission main and Interceptor sewer) Protection Zone, see Table 2.4 and 2.5 (SNIP II.04.02 (and 0.3) – 84 and 85)…………………………………………... 3.8 Figure 3,2 Tree Planting Schedule in Restricted Zone along the Drinking Water Transmission Main and Interceptor Sewer………………………………………………………………………………………. 3.9 Chapter VI Figure 6,1 Implementation Mechanism (Illustrated by Consultant’s Team)…………………………………… 6.2 vii Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents Acronyms AWM OJSC Amelioration and Water Management Open Joint Stock Company BP Bank Procedures COI Corridor of Impact EIA Environmental Impact Assessment IDP Internally Displaced Person IFC International Finance Corporation IR Income Restoration IMU Independent Monitoring Unit LA Land Acquisition LAT Land Acquisition Team MASL Meter Above See Level M&E Monitoring & Evaluation MED Ministry of Economic Development of Azerbaijan MENR Ministry of Ecology and Natural Resources of Azerbaijan MOF Ministry of Finans MOH Ministry of Health of Azerbaijan NGO Non-Governmental Organization PAP Project Affected People PAF Project Affected Family PIU Project Implementation Unit PC Provincial Commissioner RAP Resettlement Action Plan RC Regional Commissioner RPF Resettlement Policy Framework ROW Right of Way SLCC State Land and Cartography Committee SCRI State Committee for Refugees and IDPs SIAR Social Impact Assessment Report SNWSSP Second National Water Supply and Sanitation Project SUDAC State Urban Development and Architecture Committee SRERS State Real Estate Registry Services SSC State Statistical Committee TOR Terms of Reference WB World Bank WB OP World Bank Operational Policy WSS Water Supply and Sanitation viii Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents Definitions Project Affected Person (PAP) People (households) affected by project-related changes in use of land, water or other natural resources. Compensation Money or payment in kind to which the affected persons are entitled in order to replace the lost assets, resource or income. Easement Legal right to use the land of another person for a specific necessary purpose Eminent Domain Regulatory measure by the Government to obtain land. Entitlement Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected persons, depending on the nature of their losses, to restore their economic and social base. Expropriation Government's action in taking or modifying property rights in the exercise of sovereignty. Host Population Community residing in or near the area to which affected persons are to be relocated. Income Restoration (IR) Reestablishing income sources and livelihoods of affected persons. Involuntary Resettlement Development project results in unavoidable resettlement losses that affected persons have no option but to rebuild their lives, incomes and asset bases elsewhere. Relocation Rebuilding housing, assets, including productive land, and public infrastructure in another location. Rehabilitation Reestablishing incomes, livelihoods, living, and social systems. Replacement Cost Replacement cost 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. Rreplacement cost 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. Replacement Rates Cost of replacing lost assets and incomes, including cost of transactions. Resettlement Effect Loss of physical and nonphysical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms. Resettlement Action Plan (RAP) A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation. Servitude A right by which something (as a piece of land) owned by one person is subject to a specified use or enjoyment by another Social Preparation Process of consultation with affected people undertaken before key resettlement decisions are made, to build their capacity to deal with resettlement. Usufruct Legal right of use of property which belongs to another or the right of enjoying the use and advantages of another's property short of the destruction ix Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Table of Contents Vulnerable Groups Any person and/or distinct groups of people who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and includes female- headed households with dependents; persons with disability; Internal Displaced Persons (IDPs), elderly couples without supporters, widows or females abandoned by husbands, and people falling below poverty line. Way Leave Right to use a path across private property x Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK EXECUTIVE SUMMARY Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran _LA&MVP – Executive Summary 1. The Project The Second National Water Supply and Sanitation Project (SNWSSP) is financed by the World Bank and the Government of Azerbaijan. The project is expected to address the problems facing the WSS sector through reconstruction and rehabilitation of infrastructure in 21 rayons in Azerbaijan. The project is part of the country wide strategy to bring the improvements in living standards further than the major urban areas, into the smaller towns and cities of the rural rayons. A detailed project specific Social Impact Assessment (SIAR) was conducted for the Project corridor of Water Supply and Waste Water Investment in scope of SNWSSP of Azerbaijan. An Entitlement Matrix was also prepared to define categories of PAPs and types of mitigation measures. The project development, various alternatives have been proposed, screened and their technical, economic and environmental criteria have been compared in the Feasibility Study and EIA prepared specifically for the project corridor in Shabran. The overall aim of the SNWSSP Project is to improve access to safe, reliable and sustainable water supply and sanitation services in the urban centres This Land Acquisition & Monetary Valuation Plan (LA&MVP) is prepared in compliance with the Government’s National Policies on Involuntary Resettlement and World Bank’s Policies in particular on Operational Policy OP 4.12. 1.1 Project Corridor The site is mainly located in Shabran rayon of Republic of Azerbaijan, and specifically in rayon centre and surroundings. The total area of Shabran rayon is 1,088 sq. km. According to the population census made on 2009, the total rural and urban population is 52,112 in the Shabran. The population density is approximately 48 capita per sq. km. There are 15 municipalities, 68 villages within the rayon area. The project corridor passes through an area that collectively sustains almost 45% of the rayon's population (approx. 23,595 inhabitants by 2009 and 28,100 by 2030) for water supply and sewerage systems. The relief of the project corridor in Shabran rayon varies from 110 masl on reservoir 3 pump station to (-)6.10 masl at WWTP site east of the city. The service area both for water supply and waste water systems is limited with the city and its prospective development areas. The predicted population figures in the Feasibility Study for the service area of water supply, wastewater and wastewater treatment plant including the adjacent areas are given below. Predicted Population Figures to be used in the Systems Design Rounded Shabran Population Values for Design Purposes Year Water Supplied (Surra and Sewerage Served (Surra Wastewater Treatment (Surra Sincanboyat Included) Included) Included) 2009 23,595 23,006 23,006 2015 25,200 24,600 24,600 2020 26,500 25,900 25,900 2025 27,500 26,800 26,800 2030 28,100 27,400 27,400 Source: Feasibility Study. The Study Area Boundaries are basically follows the project corridors envisaged in the Feasibility Studies, and earmarked by project officials in the central and local levels. Administrative boundary of the Project elements is defined in accordance with Azerbaijani standard – SNIP II.04.02-84 and SNIP II.04.03-85. These standards determine the buffers on either side of the center line of the pipelines, and the buffers around other project elements such as distribution x Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran _LA&MVP – Executive Summary reservoirs, water treatment plant (WTP), Wastewater Treatment Plant (WWTP), and pump stations, etc. The area of immediate impact will occur in the corridor of ROW along the entire lenght of drinkable transmission main, interceptor sewer, and surrounding the location of other project elements such as distribution reservoirs, buffer reservoirs, pump stations, and WWTP. 1.2 Scope of Land Acquisition and Resettlement The project affected persons (PAPs) along the Project corridor are 305. They belong to 67 families and were interviewed in the household survey during the field studies. Total of 24.48 hectares of land is affected by the project along the project corridor, only 4.92 (20.10% of lands affected) hectares of which will permanently be acquired for above ground facilities. Restriction of use and right of access during operation period will be applied on 19.27 hectares of lands (78.71% of affected lands), instead of land acquisition the easment will be effective, meaning that servitude agreements1 will be entered between the PAPs and the AZERSU OJSC which is government owned operator company for the water supply and wastewater systems in the city (see followingTable). 4.92 hectares of lands will permanently be acquired for above ground facilities (AGFs) i.e, for new reservoir 2 and 3, access roads for AGFs, pump stations for sewage network, and WWTP and its access road east of the city. Details of Affected Public/Private Land Parcels and PAPs Property Impacted Impact Modality Number Number Restriction of Use for of of % of % of Right of Access % of Private parcels Land Use Category Affected Affected Affected Permanent People Affected w ith short term Affecte during operation Affected Nos Area HHs Acquisition of Land (PAP) Area impacts (during d Area period (20 Years) Area construction) w ith Servitude Ha Nos inh. Nos Area -ha % Nos Area-ha % Nos Area -ha % Private 1 Agricultural lots 61 5.90 61 305 3 1.48 6.05% 2 0.29 1.18% 56 4.13 16.87% 2 Residential & Homestead Plots 6 0.16 6 34 0 0.00 0.00% 0 0.00 0.00% 6 0.16 0.67% Sub-total 67 6.06 67 339 3 1.48 6.05% 2 0.29 1.18% 62 4.29 17.54% Public 1 Municipal Agricultural 5 0.23 0 0 0 0.00 0.00% 0 0.00 0.00% 5 0.23 0.96% 2 Municipal & Gov. Useless 23 5.79 0 0 3 0.79 3.23% 0 0.00 0.00% 20 5.00 20.43% 3 Municipal Residential 3 1.09 0 0 0 0.00 0.00% 0 0.00 0.00% 3 1.09 4.44% 4 Gov. - Irrigation 1 0.04 0 0 0 0.00 0.00% 0 0.00 0.00% 1 0.04 0.17% 5 Gov. & Municipal Grazing 14 11.26 0 0 2 2.65 10.83% 0 0.00 0.00% 12 8.61 35.18% Sub-total 46 18.41 0 0 5 3.44 14.05% 0 0.00 0.00% 41 14.97 61.17% Total Land Affected 113 24.48 67 339 8 4.92 20.10% 2 0.29 1.18% 103 19.27 78.71% Source: Feasibility Study, Contractor’s records, SRERS, and Consultant’s Surveys. The project impact will potentially be extended over 113 project affected land parcels; among them 67 are under private ownership, possession or lease from the government (State or Municipality) 1. Physical Resettlement: NONE 2. Economic displacement: NONE 3. Purchase of a part of a private land: 3 4. Temporary long-term impact: 103 5. Temporary long-term impact on private parcels: 62 6. Temporary short-term impact on private parcels: 2 7. Structures (residential, supplementary, fences/walls) impacted: 0 1 The servitude agreements effective to the end of the project operation period (20 years) will be registered at SRERS. PAPs will maintain landownership rights and grant the right of way leave to the AZERSU. Servitude agreements will be automatically nulled at the end of the project operation period, in compliance to the terms and conditions described in Servitude Agreement. xi Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran _LA&MVP – Executive Summary 8. Commercial facilities affected: NONE 9. Business stoppage (temporary /permanent): NONE 10. Loss of salaries/wages: NONE 11. Annual crops affected: 61 12. No of PAHs with affected perrenial crops: 4 13. Total number of project affected fruit bearing perennials: 121 14. PAHs requiring assistance during title registration in SRERS: 23 15. Affected land parcels with unknown owner/user: 4 16. Vulnerable PAHs: 23 17. Severely affected land parcels (more than 10 % of impact on land): 7 2. Socio-Economic Environment in Shabran According the results of the Consultant’s census and socio-economic survey, the number of affected PAPs is 305, and PAFs 67 in the Corridor of Impact (COI). Approximately 9.74% PAPs are located in Shabran city. The project will also affect 275 PAPs (90.25% of PAPs) located along the interceptor sewer and drinking water transmission pipelines, that all of them are farmers. The average age of household heads within the RoW is 53 years. Among the 57 PAFs the youngest household head was 32 years old while the oldest was 77 years old. The following Figure shows the marital status of household heads (HH). Most of the household heads (63%) were married while 21% were widow/er. Among the households surveyed, 83% were male headed while 17% (32 PAHs) were female headed. The majority of the PAPs (household heads) in the city were the government employee (31%). 24% were the employee in private sector while 27% of household heads were traders in the market, 8% were retired; 3.9% work persons/craft persons and 6.1% were own retail business. A majority of dwellings (77%) are comprised of two or three rooms, and very few have an inside toilet (12%). While 64% of total households has running water, 21% of them has private water well in their plot. The household size by respondent households is 5.06, assuming each unclaimed land2 supports one household and each household shelters 5 people. 3. Policy Framework and Entitlements Considerations of the legal and policy framework are incorporated into the Resettlement Policy Framework and Land Acquisition paper prepared for SNWSSP of Azerbaijan, and relevant legislation of Azerbaijan to guide resettlement and land acquisition for all components of Second National Water Supply and Sanitation Project (SNWSSP) of Azerbaijan. Under the Project some unforeseen land acquisition is often necessitated by the development of the final designs of the Project elements or during actual construction process. According to Project’s RPF, should the land acquisition occur during the Project activities; it will then be carried out in accordance with the procedures specified in the relevant laws of Azerbaijan, and World Bank Operational Policy (OP) 4.12 and Bank Procedures (BP) 4.12 on Involuntary Resettlement. The policy framework and entitlements in this project have been built upon the requirements of the Government of Azerbaijan, the Law on acquisition of lands for State needs dated April 20, 2010, and also World Bank‟s Policy on Involuntary Resettlement (O.P. 4. 12). The Project entitlements have been designed specific for this project to provide compensation, resettlement and rehabilitation for lost 2 Possessors of unclaimed project affected land parcels could not be contacted as he/she were not in Azerbaijan and/or in the rayon vicinity, and he/she could not be consulted during the surveys. These land parcels and "unknown" PAPs are included into the compensation scheme with the equal eligibility and rights as PAPs identified during census. The compensation amount for an “unclaimed” land parcels shall be separated and deposited in a special bank account of AWM OJSC to be paid to PAP claims for his/her landownership right and presents relevant document verifying ownership rights to project affected land parcel. These PAPs will be informed on mandatory conditions on the easement for granting rights to AZERSU OJSC for access to 6m pipeline corridor for routine maintenance and repair works during the operation period. xii Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran _LA&MVP – Executive Summary assets and restore or enhance the livelihoods of all categories of affected people. Detailed project entitlement matrix is discussed in Chapter 5 of this report. Four entitlement categories has been identified in accordance with the following cases;  Entitlements for Permanent Acquisition of Land for Above Ground Facilities and Permanent Access Roads;  Entitlements for Temporary Use of Land in 20-metre Pipeline Corridor, and Construction Contractor’s Camp Site and Warehouse during Construction Period;  Entitlements for Rights of Access – 20-m and 6-m strip over the Pipelines & Restriction of Use over 20 m corridor during 20 years; and  Additional Compensation Entitlements for Vulnerable and Severely Impacted PAHs who suffer from the Restriction of Use and Right of Access over 20-m and 6-m corridor.  4. Implementation Arrangements Overall responsibility for planning and execution of land acquisition / compensation and income rehabilitation / restoration rests with AWM OJSC. The Cabinet of Ministers of Azerbaijan commissioned AWM OJSC with the Cabinet Minister Decree No 75 dated May 03, 2013 as Executing Agency for performing the land acquisition, and other relevant resettlement activities. Implementation Unit (PIU) created by AWM OJSC specifically for the SNWSSP II of Azerbaijan. The PIU has trained personnel on implementation of this Resettlement and Land Acquisition Plan. The construction supervision unit of PIU also will play an active role in the implementation of this plan. Most of the issues related to resettlement have been identified and mitigation provided in this Plan. The implementation arrangements for implementing the land acquisition and resettlement and the resettlement budget are provided in Chapters 6 and 7. The roles and responsibilities of the different personnel are also identified in this Plan (see Chapter 6). 5. Participation and Grievance Redress Mechanism This Plan establishes a grievance redressal mechanism for redressal and mitigation of the negative impacts. The public will be adequately informed about the grievances redressal mechanism, and AWM OJSC will continue informing the new development of the project to the public through the identified communication and public awareness mechanism. Details are provided in chapter 6. The Grievances Redress mechanism is a multi faceted one and aims to respond to the requirements of the project over its life cycle. For minor matters the rayon representative of AWM OJSC, and the social staff of the project will be responsible to respond to them. At the next level, complaints can be registered in the office of the Resident Engineer (RE) through entering it in the complaint register. Complaints can be in verbal or written forms but must be entered in the register. The complaints and their resolution status will be closely monitored. At the next level the Grievance Redressal Committee can be called upon to provide resolutions to complaints. Its composition and functions have been laid out in this Plan (see Chapter 6.3). 6. Information Disclosure Information disclosure is a very important aspect of this Plan, and the Project will ensure that all relevant information is available to all stakeholders over the life of the project. Key information on resettlement issues will be provided to the affected persons (PAPs) as well as the other stakeholders, and AWM OJSC staff in the project area. However, during this study all PAPs were interviewed and therefore, the resettlement study team had opportunities to provide the PAPs with further details. This Plan will be disclosed to the PAPs and other stakeholder agencies through the existing mechanisms of communication. The AWM OJSC will use its web-site also to disseminate the information of this Plan. xiii Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran _LA&MVP – Executive Summary 7. Monitoring & Evaluation A monitoring and reporting system has been prepared and provided with this Plan (see Annex 2). However, the AWM OJSC will improve the process of monitoring. The improved monitoring mechanism will help to achieve following specific objectives.  to ensure that the livelihood systems/ activities of the public are not disturbed by the project;  to monitor whether the time lines are being met;  to assess if compensation, rehabilitation measures are sufficient;  to identify problems or potential problems; and  to identify methods for responding immediately to mitigate problems. 8. Total Cost Plan The budget prepared for mitigation of impacts is explained in detailed in Chapter 7. The detailed Budget for LA & MVP containing composition of cost of mitigation measures, i.e. cash compensation package per each PAP is provided as the Annex to this report but only for the internal use. This document contains full names of PAPs, their information including contact phone numbers, and detailed composition of compensation package (per PAP and each compensation items). To protect the security and confidentiality of personal information of PAPs, the Annex is suggested not subject to public disclosure. Total costs of mitigation measures for Ismayilli rayon are given in the following Table; Total Costs of Mitigation Measures Cost of Mitigation Cost Items Measures US$ Costs of Mitigation Measures for the Lands to be permanentley 1 24,400.81 Acquired for AGFs 2 Costs of Mitigation Measures for Private Agricultural Lands Affected 66,615.60 Costs of Mitigation Measures for Private Residential & Homestaead 3 41,890.99 Lands Affected Costs of Mitigation Measures for the Government and Municipal lands 4 53,380.35 affected 5 Public Awareness Programs(estimated) in Rayon 3,000.00 Costs to be Incurred during Performance of Valuation Commision (VC) 6 44,000.00 & Land Acquisition Commission (LAC) to be established in the Rayon 7 Estimated Notarization Costs 25,520.00 8 Social Safeguards Training Program 3,000.00 Cost for Monitoring and Evaluation (M&E) of Social Safeguards 9 15,000.00 including Grievance Redress Mechanism (GRM) 10 Provisional Sum for Additional Measures 28,000.00 Total 304,807.75 Source: Consultant’s calculation results and his own estimations. The overall responsibility for implementing mitigatory measures rests with the Project Implementation Unit (PIU) created specifically for the SNWSSP II. The Construction Supervision Unit also plays an active role in the implementation of the resettlement activities. Abdurrahim Tan Sr. Environmental & Resettlement Specialist, Team Leader, RAPs for four Rayons of Azerbaijan SNWSSP II Baku, December, 2015 (Revised in March, 2016) xiv Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK 1 INTRODUCTION & METHODOLOGY Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology Overview This Land Acquisition & Monetary Valuation Plan (LA&MVP) is prepared in compliance with the Government’s National Policies on Involuntary Resettlement and World Bank’s Policies in particular on Operational Policy OP 4.12. The Second National Water Supply and Sanitation Project (SNWSSP) is financed by the World Bank and the Government of Azerbaijan. The project is expected to address the problems facing the WSS sector through reconstruction and rehabilitation of infrastructure in 21 rayons in Azerbaijan. The project is part of the country wide strategy to bring the improvements in living standards further than the major urban areas, into the smaller towns and cities of the rural rayons. Investments under this Project will be implemented in two phases. Phase I covers four Rayons (Aghsu, Ismayilli, Shabran and Siyazan), and Phase II covers additional 12 Rayons (Imishli, Kurdamir, Ujar, Zardab, Astara, Astara, Masalli, Jalilabad, Yardimli, Lerik, Dashkasan and Gadabay). A detailed project specific Social Impact Assessment (SIAR) was conducted for the Project corridor of Water Supply and Waste Water Investment in scope of SNWSSP of Azerbaijan. An Entitlement Matrix was also prepared to define categories of PAPs and types of mitigation measures. The project development, various alternatives have been proposed, screened and their technical, economic and environmental criteria have been compared in the Feasibility Study and EIA prepared specifically for the project corridor in Shabran. The overall aim of the SNWSSP Project is to improve access to safe, reliable and sustainable water supply and sanitation services in the urban centres There were two project options available for improving the Water Supply and Sanitation infrastructure in order to meet the increasing drinkable water demand against the growing population and the growing economy in the rayon. One option was to develop a new Water Supply and Waste Water System, while the other option was to renovate and rehabilitate the existing network. According to the Project Objectives, the first option was considered more viable during the evaluations, because of the conditions of the decentralized, unhygienic, dispersed, and insufficient water release in the rayon. 1.1 Relief of the Project Area, Project Corridor, and Land Required for the Project The site is mainly located in Shabran rayon of Republic of Azerbaijan, and specifically in rayon centre and surroundings. The total area of Shabran rayon is 1,088 sq. km. According to the population census made on 2009, the total rural and urban population is 52,112 in the Shabran. The population density is approximately 48 capita per sq. km. There are 15 municipalities, 68 villages within the rayon area. The project corridor passes through an area that collectively sustains almost 45% of the rayon's population (approx. 23,595 inhabitants by 2009 and 28,100 by 2030) for water supply and sewerage systems. The relief of the project corridor in Shabran rayon varies from 110 masl on reservoir 3 pump station to (-)6.10 masl at WWTP site east of the city. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology Figure 1.1: Project Corridor in Shabran The service area both for water supply and waste water systems is limited with the Shabran city and its prospective development areas indicated in city land use and master plans (see following Figure). The predicted population figures in the Feasibility Study for the service area of water supply, wastewater and wastewater treatment plant including the adjacent areas are given below. Table 1,1: Predicted Population Figures to be used in the Systems Design Rounded Shabran Population Values for Design Purposes Year Water Supplied (Surra and Sewerage Served (Surra Wastewater Treatment (Surra Sincanboyat Included) Included) Included) 2009 23,595 23,006 23,006 2015 25,200 24,600 24,600 2020 26,500 25,900 25,900 2025 27,500 26,800 26,800 2030 28,100 27,400 27,400 Source: Feasibility Study Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology 1.1.1 Administrative Boundaries of the Project Corridor The project area for this assignment is the Project Corridor earmarked for the project elements in Shabran rayon. The Study Area Boundaries are basically follows the project corridors envisaged in the Feasibility Studies, and earmarked by project officials in the central and local levels. The Figure below shows the project area and project corridor in Shabran rayon. Administrative boundary of the Project elements is defined in accordance with Azerbaijani standard – SNIP II.04.02-84 and SNIP II.04.03-85. These standards determine the buffers on either side of the center line of the pipelines, and the buffers around other project elements, such as distribution reservoirs, water treatment plant (WTP), Wastewater Treatment Plant (WWTP), and pump stations, etc. Project corridor and ROWs are shown in the following Figure; Figure 1.2: Project Corridor and ROWs All villages along the transmission main and interceptor sewer are located in Shabran rayon administrative borders. In this respect therefore, all activities concerning compensation will be centred at the rayon centre – Shabran city in which the Project elements traverse. The project characteristically generate impacts such as acquisition and maintenance of the right-of- way (ROW), clearing of vegetation along the project corridor, cutting trees, damages on the access and perimeters of public / private facilities, which are the most obvious sources of construction-related impacts. The area of immediate impact will occur in the corridor of ROW along the entire lenght of drinkable transmission main, interceptor sewer, and surrounding the location of other project elements such as distribution reservoirs, buffer reservoirs, pump stations, and WWTP. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology 1.1.2 Land Need for the Project The project needs to acquire land required for; 1. The construction and operation of above ground facilities, 2. The construction and operation of the pipelines (drinking water transmission main from pump station to the distribution reservoirs, feeder and distribution mains, lateral and collector sewers inside the city, and interceptor sewer and outfall line for treated waste water), ancillary facilities such as valve, air vent, discharge, outflow chambers, and manholes. 3. Temporary facilities, which will be used during the construction period. Land Requirement for Above Ground Facilities (AGFs) Project’s above ground facilities (AGFs) include;  Upgrading the Existing Water Intake Facility,  Water Reservoirs for drinking water distribution,  Buffer Reservoir 100 cum,  Pump Stations for Sewage Network,  Above ground fire hydrants,  Waste Water Treatment Plant and ancillary facilities, and  Permanent Access Roads. Land Requirement for ROW of the Pipelines The buffer zone (protection zone) for the interceptor sewer and drinking water transmission main is 20 m wide, 10 m on either side of the center-line of the pipe from Shabran to Wastewater Treatment Plant (WWTP) southeast of the city (see following Table). However, as the drinking water transmission main from the water intake to reservoir 2 and 3 is aligned to the streets in the city, and the ROW of the pipeline will be confined with the street widths, no additional buffer is required for the transmission main other than the street widths. Table 1.2: Sanitary buffers according to SNIP II.04.02 (and 0.3) – 84 and 85 for the pipelines Required buffer according to SNIP II.04.02-84, on either side of the center-line Pipeline of the pipe (m) Drinkable water transmission main For diameters under 1000 mm -10 m Interceptor Sewer For diameters under 1000 mm -10 m Source: SNIP II.04.02 (and 0.3) – 84 and 85. Land Required for the Pipelines, and Above Ground Facilities (AGFs) The total Project affected area is 24.48 ha is composed of 113 land plots. The following Table shows breakdown of Project affected land parcels according to land tenure per type pof impact. Table 1.2: Breakdown of Project Affected Land Parcels according to Land Tenure per Type of Impact Form of land Affected area Type of impact on Private Municipality State- Total per Impact acquisition per type of land/ Land Tenure land parcel land owned land Category impact (ha) Permanent acquisition Sales (purchase/sales 31 5 0 8 4.92 Agreement agreement) Temporary long-term Servitude impact (easement 62 40 1 103 19.27 Agreement /servitude agreement) 1 These three parcels (with total area of 1.47 ha) that are subject to partial impact, they will need to be acquired permanently at replacement cost as described in Chapters 5 and 7 of this document. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology Temporary short-term Compensation impact (Compensation 2 0 0 2 0.29 Agreement agreement) Totals 67 45 1 113 24.48 Among the total 113 project affected land parcels there are 67 private land parcels, 46 Municipal, and one State-owned land parcels. Of the 69 private land parcels, three will be partially acquired while easements will be exercised with respect to the 64 land parcels. Tthe remaining two land parcels are only affected during construction period, and the compensation for annual/seasonal crop lost will be issued based on the Compensation Agreement. Out of 45 Minicipal land parcels five will permanently be acquired, and 40 will subject to easement. For one state-owned parcel that is affected by the Project easement will be estblished. As mentioned above the nature of the proposed project, foreseeing construction of the above ground facilities and pipeline network has required application of three different approaches in terms of land acquisition for project purposes. 1. Permanent land acquisition will be exercised to locate all above ground facilities. PAP will be paid cash compensation based on the legally processed Sales Agreement. 2. Instead of purchase, land will temporarily be acquired through long-term easements; i.e. Servitude Agreements will be entered between PAP and Azersu to obtain the way leave for the ROW for water pipeline construction and maintenance2. 2. Compensation agreement will be applied in case of short-term impact; when land is affected only during the project construction activities. In such case no structures or pipeline will be placed on such land parcels; therefore no easement will be established or servitude agreements required. However cash compensaiton will be issued to PAP to compensate temporary occupation of land and damaged perennials and crops. It is worth noting that, in order to minimize project impact on private lands to the extent possible, Municipality land and State-owned territories3 have been selected as possible as for the construction of above ground facilities. Moreover, the pipeline ROW is designed specifically along the existing fences and stone walls of private land parcels to avoid traversing these parcels, which might otherwise cause a need for subdividing them into several portions thus diminishing their market value. The current design favorably provides security and protection of private land parcels from significant project impact, and preserves their capacity for future best use. To summarize, 4.92 ha composed of eight land parcels: 5 Municipal and 3 private4 land parcel will be acquired permanently for above ground facilities (AGFs) i.e., for distribution reservoirs 2 and 3 and their access roads, and WWTP and its Access road. Two compensation Agreements will be processed to compensate temporary impact incurred during construction activities. While 103 easements will be established to 62 private land plots, 40 Municipal and 1 State-owned land parcel through processing of Servitude Agreements to regulate restriction of use and right of access during construction and operation period to be applied to 19.27 hectares of lands (78.71% of affected lands). Landowners including all 62 PAHs will retain ownership right to these land parcels, and grant the right of way guaranteeing uninterrupted access to 6m pipeline corridor for routine maintenance and repair works during the operation period to the AZERSU OJSC which is government owned Operator Company for the water supply and wastewater systems in the city. (see Table 3.4). The validity period of Servitude agreements will be 20 years. The PAPs will experience limited land use rights for 20 years during operation period, in addition to restricted access to the ROW for 4 years during pipeline construction activities. These restrictions will be clearly articulated in the Servitude 2 Legal procedure during which landowner grants right of way to another party to traverse or otherwise use landowner's land for a specified purpose. 3 Project impact is not extended over the structures, therefore during construction and/or operation period no interruption of any activities is expected along these territories. 4 Of the 69 PAHs, only three PAHs will experience permanent project impact acquiring permanently parts of the lands affected. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology Agreements and cash compensated according to the WB OP 4.12 and relevant country legislation. The valuation methodology and costs for mitigation measures are described in detail in Chapter 5 of this document. 1.2 Socio-economic Environment in Shabran The rayon centre Shabran city is located at the 123th km of Baku – Guba - Dagestan express way. Road Exploitation Office (REO) of the rayon reports that the Rights of Way (RoW) of this express way is 120 m. REO reports that the traffic in line with Shabran is currently at about 10000 – 12000 vehicle per day (vpd) on the express way. Approximately 27 km of this express way section travel in the rayon area. Baku – Mohachqala – Rostov railway also crosses the rayon. Approximately 18 km of this rail way section travel in the rayon area. Mountainous area is characterized with hilly relief. Since Shabran region is situated in the contact zone of Greater Caucasus Mountain wrinkle and Gusar-Devechi foothill plain, people preferred mainly to settle on plain area. The rayon relief is slopped from southwest to northeast towards Caspian Sea (from 1000-1200 m to minus 27.0 m). Rocks in Shabran region belongs to Jurassic (J), Cretaceous (K), Paleogene (P), Neogene (N) and IV periods. Older rocks are on the surface of mountainous areas, and in deeper layers of plain area. Lower and Upper Pliocene sediments are widely spread in the area. The rayon area is characterized with semi-desert and dry-steppe climate. This climate varies with less rainfall, warm winter and, dry and hot summer. The highest average annual temperature is 12.5 °C in the area. The amount of annual precipitation is 308 mm. Annual values of relative humidity range between 64-84%. The highest relative humidity was usually observed as 83-84% during cold seasons, while the least relative humidity was usually observed as 64-66% during summer months. The distribution of absolute humidity with a year coincides with the temperature variation within a year. Wind dominates at north-west direction as 42% within the studied area. Average wind velocity within a year varies between 4.1 and 5.0 m/s. Strong wind velocity was usually observed as approximately equal or more than 15 m/s and the number of occurrences of strong wind was recorded as 51 days per year. The project corridor passes through an area that collectively sustains almost 45% of the rayon's population (approx. 23,595 inhabitants by 2009 and 28,100 by 2030) for water supply and sewerage systems. The relief of the project corridor in Shabran rayon varies from 110 masl on reservoir 3 pump station to (-) 6.10 masl at WWTP site east of the city. 1.2.1 Land Use While 17.28% of rayon area is arable, only 0.47% of the total rayon area is planted. The following Table and Figure show the land use characteristics in the rayon. Table 1.4: Land Use characteristics in the Rayon Land Percent of total territory Territory ha % Total Territory 108,800.00 Arable Land 18,805.00 17.28% Planted Land 510.00 0.47% Useless Land for Agriculture (non-arable) 22,077.00 20.29% Pastures for cattle-breeding 12,557.00 11.54% Saline Lands 10,000.00 53.18% Fruit and gardens 26,130.00 24.02% Source: Consultant’ survey Result. The central business districts in Shabran city are commonly densed along M. Resulzade Avenue, and H. Aliyev Blvd. The business districts include some institutions and local administrative buildings, schools, and some residential units. They are often abutted by residential or other contrasting uses, which help define them. There is no separate category for recreational land uses is pervasive throughout any other land uses. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology 1.2.2 Key Socio-economic and Demographic Indicators The key socio-economic and demographic indicators for the rayon are given in the following Tables; Table 1.5: Key socio-economic indicators of the Project area Indicators Item Detail Service Area Rayon Population Total 28,100 both for water supply and 27,400 52,112 by 2009 for sewage collection system by 2009 Employed population 4,024 Unknown Unemployed unknown 1425 Population Density 2,495 48 Number of inhabited 359 2108 Refugees & IDPs Land Total area 11.26 sq.km 1,088 sq.km Arable land Not registered 18,805 ha Cultivated land Not registered 510 ha Forest None 27000 Urbanization City 1 1 Municipality 1 32 Major Crops Grain, vegetables, fruit, wine, potato, water-melon, melon, pumpkin Catlle and Small Cat. 10,048 66,423 Major Industry Large scale poultry farming, Carpet Weaving, flour mill Minor Businesses Not registered 1399 Touristic Facility 5 18 Infrastructure Expressway - km 5 27 Highway, - km - 23 Railway, - km 5.2 18 Power Distribution st. 1 2 WTP None None WWTP None None Water Supply Yes, unhygienic None Sewage Network Yes, partly None Social Services Medical Facilities 12 29 Secondary Schools 11 49 Day Care 4 11 Cultural Property 4 18 Public Hall 1 1 Archeological sites 5 27 Museum 1 3 Stadium 1 1 Sport Complex 7 16 GDP: Gross Domestic Product ha: Hectare USD: United States Dolar WTP: Water Treatment Plant WWTP: Wastewater Treatment Plant Sources: State Statistical Committe, AWM OJSC of Azerbaijan, Rayon Land and Cartography Department, Feasibility Report, and findings of Consultant’s Study Team. 1.2.3 Living Conditions The rayon is located in Guba – Kachmaz economic region. According to the SSC of Azerbaijan, based on the comparable Household Budget Survey data of 2001 - 2008, the overall poverty headcount declined from 49% in 2001 to 15.2% at the end of 2007 and further decreased to 13.2% at the end of 2008. Another comparative related to poverty reduction in Azerbaijan and the Study area is obtained from WB living conditions assessment report (March, 2010) that confims its results of the poverty trends similar to be similar to those reported by the SSC. In 2008, the risk of poverty in non-Baku urban areas at more than 19% was more than twice that of Baku. Compared to 2001, only fewer than 40% of Azerbaijan’s poor population lived in rural areas. While consumption expenditures in urban areas increased by more than 140%, the increase in rural areas, while still healthy, was less than 90%. Consumption by households in the poorest quintile improved by more than 140% and in the second and third quintiles by more than 125% compared with 80% for the richest quintile. Thus, economic growth has been largely pro-poor, and the poor have captured a slightly greater relative share of the growth than the better-off. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology The 2008 Living Standards Measurement Study survey provides an opportunity to assess access, quality, and reliability of public services such as water, hot water, electricity, heating, sewerage, healthcare facility, and educational establishment. Access to hot water by the poorest 20% of the population, which closely approximates the poverty rate, is limited, at 20%. Even for the richest 20%, accessibility is below 50%. While the poorest rely on wood heating, the richer have higher access to electric heating. Accessibility to hot water by the poorest 20% of the population is limited; approximately 20% of them has the accessibility to hot water. Though, accessibility to hot water for the richest 20% is below 50%. While the poorest rely on wood heating, the richer have higher access to electric heating. 1.2.4 Employment, Unemployment, Average Wages / Salaries The following Table shows the employment and unemployment rates both in country and rayon level. Table 1.6: Main Indicators of the Labor Market – Country Level & Rayon Level Country Indicator Shabran Rayon (Azerbaijan) Unemployment Rate - Rural 5.6 5.2 Unemployment Rate - Urban 6.1 5.8 Employment-to-working-age-population ratio – aged 15-61 66.2 63.1 Source: SSC of Azerbaijan and Rayon Statistical Department. Although, formally, rural areas have better employment and unemployment rates, the jobs are mostly low paying and seasonal. Median earnings per employed person were AZN 120 per month in urban areas by 2008 and for non-agricultural work, compared to only AZN 75 in rural areas. For agricultural work, earnings are even less - on average only AZN 51 per capita per month. 1.2.5 GDP & Forecasts Real GDP grew almost fourfold between 1999 and 2008, and the economy has posted strong growth in the past few years, mainly owing to substantial investment in the hydrocarbons sector. This has had spillover effects on services sectors such as retail trade. For example, retail trade volumes were up by 15.5% in 2008. The following Table shows estimation and forecasts based on these effects. Table 1.7: Retail Sales Development Indicators 2006 2007 2008 2009 2010 2011 Retail Sales - AZN Billion 5.7 7.4 10.6 11.5 13.3 15.9 Retail Sales - US$ Billion 6.3 8.7 12.9 14.3 16.5 20.1 Retail Sales - Volume Growth % 13.2 14.9 15.5 8.7 8.8 10.2 Retail Sales - US$ value rowth % 31.6 36.7 48.9 11 15.5 21.7 Non-food Retail Sales - US$ Billion 2.2 3.1 4.7 5.2 6.1 8.1 Food Retail Sales - US$ Billion 4.1 5.6 8.2 9.1 10.4 12 Consumer Price Inflation (av; %) 9.8 14.3 23.4 -0.1 6.1 8.7 Source: SSC of Azerbaijan. According to the latest data from the Central Bank of the Azerbaijan Republic, lending to households from credit organizations has shown signs of improving in 2010, with loans to households rising by 14.8% year on year in November 2010, to AZN 2.7billion. Nominal retail sales growth slowed to 7.4% in 2009, as the impact of the global economic recession weighed on consumer confidence and households reduced access to credit. We believe that retail sales growth will be more sluggish in the initial part of the forecast period compared with the historical period, although it should pick up from 2012 as the economic climate in Azerbaijan improves. 1.2.6 Project Affected Groups The following groups who will be affected by the project activities are determined in Shabran during the surveys. 1. Residential Households (PAPs) inside the city, Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology 2. Agricultural Households (landowners and leaseholders for 99 years) (PAPs) along drinking water transmission main, and along the interceptor sewer, and 3. Municipalities located along the drinkable water transmission main, interceptor sewer, Water Reservoirs, pump stations, and WWTP east of the city is located in land which is owned by Shabran municipality. 4. Government lands such as educational, health or medical facilities, vocational and business enterprises, where impact on land is limited to 6 m5 strip of land take for pipeline construction without causing any impact to structures attached or operating institutions and enterprises located on these lands. No IDP is affected by the Project activities in the rayon. According to the survey results, no squatters and encroachers that are affected from the Project activities exist along the project corridor. Profile of the Project Affected People (PAPs) along the Project Corridor The following Table shows the project affected communities along the project corridor. Table 1.8: Project affected Communities along the project elements Project Element Community Municipality Drinking water transmission main Shabran city Shabran Municipality Distrinking water Distribution Reservoir 2 Shabran city Shabran Municipality Distrinking water Distribution Reservoir 3 Tazekend Tazekend Municipality Buffer Reservoir – 100 cum Shabran city Shabran Municipality Feeder and Distribution Mains, and Shabran city Shabran Municipality Collector and Lateral mains inside the city Interceptor Sewer Shabran city Shabran Municipality Waste Water Treatment Plant Shabran city Shabran Municipality Source: Consultant’s survey results. The following Table shows the population of communities that are affected along project corridor. Information in the Table was derived from household census conducted between July 01 and August 30, 2013 by the Consultant’s socio-economic survey team. Table 1.9: Population Profile along the project elements, by 2014 and the number of directly affected PAPs according to the locations6 Project Total Project Project Project Municipal Affected Affected Location Male Female Total Affecte Affected Affected Area Municipal Person per d PAHs7 Male Female Area location Inh. Inh. Inh. ha Nos Inh Inh Inh. Shabran City Shabran 12026 12515 24541 2.54 6 16 18 34 Tazekend Tazekend 1253 1305 2558 1.48 63 153 162 315 Total 13279 13820 27099 4.02 69 169 180 349 Source: Consultant’s survey results. A total of 69 households will be affected by project activities, 6 of which are located in the city. According the results of the Consultant’s census and socio-economic survey, the number of affected PAPs is 305, and PAFs 67 in the Corridor of Impact (COI). Among the approximately 9.7% PAPs are located in Shabran city. The project also affects 274 PAPs (90.25% of PAPs) who are living in Tazekend municipal area, and are subsisting within the agricultural activities in their lands affected by the project. The average age of household heads within the RoW is 53 years. Among the 57 PAFs the youngest household head was 32 years old while the oldest was 77 years old. The following Figure shows the marital status of household heads (HH). Most of the household heads (63%) were married while 21% 5 To have rights of access to 6m pipeline corridor for routine maintenance and repair works during the operation period. 6 According to the most recent changes to the design made by AWM OJSC the number of PAPs have changed as well. Correspondingly updated the number of PAPs and project affected land parcels are presented in this document. 7 Number of Project affected land parcels equals to the number of project affected households (PAHs). Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology were widow/er. Among the households surveyed, 83% were male headed while 17% (32) were female headed8. The majority of the PAPs (household heads) in the city were the government employee (31%). 24% were the employee in private sector while 27% of household heads were traders in the market, 8% were retired; 3.9% work persons/craft persons and 6.1% were own retail business. However, almost all of the households affected from the Project activities along the interceptor sewer east of the city are farmers who grow annual and seasonal crops in their own agricultural plots. There is no agricultural land which is leased from the municipalities by any private person in Shabran. Housing Size, Type, and Household Size by Respondent Households Housing represents most households’ most significant assets, and also provides an indication of relative wealth. A majority of dwellings (77%) are comprised of two or three rooms, and very few have an inside toilet (12%). While 64% of total households has running water, 21% of them has private water well in their plot. The household size by respondent households is 5.06, assuming each unclaimed land9 supports one household and each household shelters 5 people. Household Income and Budget Project affected households in Shabran have relatively low incomes compared with Azerbaijan averages, but higher than those as in average of Guba-Khachmaz economic region. Household income by sector is categorized in the following Table in the project area. Table 1.10: Household Income by Sector in the Project Area According to SSC, by According to results of the Consultant's survey, 2012 by first six m onths of 2013 (Guba - Kachm az Region) Incom e 1 Non-agricultural Non-agricultural Agricultural General 2 2 2 (urban) (rural) (rural) AZN % AZN % AZN % AZN % Income from employment 52.4 29.42% 123.0 48.81% 64.9 46.03% 12.4 13.33% Income from self employment 68.9 38.69% 61.2 24.29% 11.9 8.44% 8.3 8.92% Income from agriculture 20.9 11.73% 35.4 14.05% 49.3 34.96% 58.2 62.58% Income from rent 1.4 0.79% 1.1 0.44% 0.1 0.07% 0.1 0.11% Income from property 0.8 0.45% 0.1 0.04% 0.1 0.07% 0.4 0.43% Current transfers received 24.0 13.48% 18.4 7.30% 10.4 7.38% 9.9 10.65% Other income 9.7 5.45% 12.8 5.08% 4.3 3.05% 3.7 3.98% Total incom e 178.1 100.00% 252.0 100.00% 141 100.00% 93 100.00% 1 Secondary Sources: SSC of Azerbaijan and Rayon Statistical Department. 2 Primary Sources: Results of Consultant’s socio-economic surveys. Comparison with the consumption expenditure figures (per capita per month) obtained from the socio- economic surveys of the consultant, and from the official statistics of SSC of Azerbaijan is given in the following Table. 8 Mitigation measures for female headed HHs are described in the Chapter 5 of this document. 9 Possessors of unclaimed project affected land parcels could not be contacted as he/she were not in Azerbaijan and/or in the rayon vicinity, and he/she could not be consulted during the surveys. These land parcels and "unknown" PAPs are included into the compensation scheme with the equal eligibility and rights as PAPs identified during census. The compensation amount for an “unclaimed” land parcels shall be separated and deposited in a special bank account of AWM OJSC to be paid to PAP claims for his/her landownership right and presents relevant document verifying ownership rights to project affected land parcel. These PAPs will be informed on mandatory conditions on the easement for granting rights to AZERSU OJSC for access to 6m pipeline corridor for routine maintenance and repair works during the operation period. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology Table 1.11: Comparative Consumption Expenditures of Households in Shabran According to results of the According to SSC, by 2012 Consultant's surveys 1 (Guba - Kachm az Region) 2 by first six m onths of 2013 AZN % AZN % Food and non alcoholic beverages 84.5 44.64% 92.0 62.92% Alcoholic beverages 0.8 0.42% 0.6 0.41% Tobacco 1.9 1.00% 2.0 1.37% Clothes and footw ear 18.1 9.56% 9.0 6.16% Housing, w ater, electricity, gas and other fuels 15.2 8.03% 4.2 2.87% Furnishings, household equipment & routine maintenance of the house 17.9 9.46% 5.3 3.62% Health care 5.8 3.06% 5.7 3.90% Transport 8.3 4.38% 6.7 4.58% Communication 5.3 2.80% 2.0 1.37% Recreation and culture 8.2 4.33% 4.4 3.01% Education 1.9 1.00% 1.9 1.30% Restaurants, cafes and accommodation 15.2 8.03% 6.5 4.45% Miscellaneous goods and services 6.2 3.28% 5.9 4.04% Consum ption expenditure total 189.3 100.00% 146.2 100.00% 1 Secondary Sources: SSC of Azerbaijan and Rayon Statistical Department. 2 Primary Sources: Results of Consultant’s socio-economic surveys. Subsistence Food Sources for PAPs According to respondents during socio-economic survey, traditional food (flour, bread, cereals, salt and sugar) makes up 83% of food consumed in the majority of families. Most families that were interviewed bought about 63% of their food products in shops in Shabran city. The local diet includes vegetables that are grown in homestaead lands both in Shabran city and villages along the pipelines. Most respondents in Shabran city use their homestead lands to supplement their family needs. 1.3 Scope of the Land Acquisition & Monetary Valuation Plan (LA&MVP) The LA&MVP will be the document, in which the PIU specifies the procedures that it will follow and the actions that it will take to mitigate adverse effects, compensate losses of lands to be acquired, and provide development benefits to persons and communities affected by the project. The key guiding documents for this task are the World Bank Operational Policy 4.12 on Involuntary Resettlement, WB Resettlement Handbook, and the law of Azerbaijan on acquisition of land for state need dated April 20, 2010 for Preparing this Land Acquisition and Monetary Valuation Plan. The Consultant and Client (Borrower) will follow the Resettlement Policy Framework (RPF) prepared for Second National Water Supply and Sanitation Project (SNWSSP) of Azerbaijan in line with OP 4.12 (February 29, 2008). In general, Project Affected Persons (PAPs) are people of any age, skill level, or socio-economic circumstances who may be losing land or assets/infrastructure10/livelihood etc. Thus OP 4.12 requires a Plan be prepared which sets out all the compensation and rehabilitation support to be provided to any person, family or household who on account of the execution of the project would have his/her or their standard of living adversely affected. It focuses on those who may lose residential house, land including agricultural and grazing land, commercial properties, tenancy, right in annual or perennial crops and trees or any other fixed or movable assets, income earning opportunities, business, occupation etc. This Plan needs to be a time-bound action plan with appropriate budget provisions and should be incorporated as an integral part of the project based on the following principles; 10 The term infrastructure covers public/private infrastructural elements/facilities within the affected land/assets such as aboveground and/or underground electrical/power and communication transmission lines, natural gas pipelines, existing water supply/irrigation pipelines, irrigation channels and ditches, existing sewage network pipes, water wells, and etc. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology  Involuntary resettlement, including land acquisition and all associated impacts should be avoided or at least minimized.  Where land acquisition and involuntary resettlement is unavoidable, all people affected by it should be compensated fully and fairly for lost assets.  Land acquisition and involuntary resettlement should be conceived as an opportunity for improving the livelihoods of the affected people and undertaken accordingly.  All people affected by land acquisition and involuntary resettlement should be consulted and involved in resettlement planning to ensure that the mitigation of adverse effects as well as the benefits of resettlement are appropriate and sustainable. Keeping in view the above, the overall objective of preparation of this LA & MVP is to;  Identify and to develop mitigation plan to ensure that all communities are benefited without any discrimination through;  identifying all kinds of adverse impacts of the project area,  its influence on the community during and after the construction of the new water supply and waste water system in the Project area.  Identify PAPs in order to determine the persons likely to be adversely affected by the project works and the severity and extent of the respective impacts.  Identify poor and vulnerable groups, if there is any in the Project area, with strategies to ensure that such groups benefit from the Project.  Review of the legal and other management framework  Prepare detailed entitlement matrix and implementation plan  Determine a budget for all land acquisition, servitude agreements (easements), and resettlement activities under this Project, ensuring adequate stakeholder consultation and participation. 1.4 Project Background and measures taken to minimize the project impact The Government of Azerbaijan is implementing the Second National Water Supply and Sanitation Project. The objective of the Project is to improve access to safe, reliable, and sustainable water supply and sanitation (WSS) services in 8 regions (rayons) (Aghsu, Ismayilli, Shabran, Siyazan, Jalilabad, Masalli, Lerik, and Yardimli) across Azerbaijan. The project is part of the Government’s efforts to improve infrastructure services in order to improve the living conditions of people in secondary towns and cities and to support local economic growth and poverty reduction. The World Bank is financing the entire project cycle from feasibility study to the construction phase. Projects and Programs financed with IDA resources need to comply with World Bank Operational Policies. Therefore, sub-contracts and components eligible for funding under this project will be required to satisfy the World Bank’s safeguard policies, in addition to conformity with social policies of the Government of Azerbaijan. Accordingly, design inputs included economic, technical/engineering, environmental and social- particularly displacement, right of way and land acquisition considerations. The key objective of the land acquisition and resettlement program for the project is to ensure that the people affected by the land acquisition and resettlement are able to improve or at least restore their incomes and standards of living after land acquisition and resettlement. In accordance with the provisions of: (i) avoiding involuntary resettlement completely, and (ii) minimizing land acquisition, as far as possible, restriction of use and way leave with establishing servitude on the affected lands is considered throughout the operation period of the project in consultation with project affected people and other stakeholders. To the routing principles that were adopted for the overall project, specific measures introduced to minimize land acquisition and livelihood impacts in Ismayilli included:  Restriction of Use and Way Leave principles that are consistent with the regulations in Azerbaijan Land Code Article 54.4, and Azerbaijan Civil Code Article 255.4, will be applied for Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology creating ROW of drinking water and sewage lines and establishing servitude on the affected lands, in consultation with the project affected land owners.  Adoption of a shared corridor within the ROW of the village connection roads, intercity highways, and open irrigation channel to reduce the overall area to be cleared for construction by the project.  Use of international performance based standards to define areas around the pipeline to be subject to restrictions of use, rather than the far more restrictive SNIPs codes.  Careful siting of all above ground facilities and access roads to place them wherever possible on state or municipal land rather than privately owned land.  Siting of all above ground facilities to limit length of access roads. The following Table shows the results of the above measures taken for minimizing the project social impacts on the lands, PAPs and PAHs to be affected. Table 1.12: Minimization of the Project Social Effects as a Result of The activities Described Above Indicators Figures Land required for RoW of Pipelines if required land would permanently be 1 8.62 acquired as protection zone - ha 2 Pipeline to be traveled on private parcels with servitude agreement - ha 3.70 Pipeline traveled within the RoW of existing water pipelines, inter-village roads, 3 4.91 and through the rivers’ flood plains - ha 4 Decrease on required land to be permanently be acquired - ha 16.46 5 Decrease on required land to be permanently be acquired - % 56.96 6 Decrease on number of PAPs - inhabitant 43 7 Decrease on number of PAPs - % 11 8 Decrease on number of PAHs - HH 6 9 Decrease on number of PAHs - % 9 1.5. Methodology Research methodology used in this study can broadly be divided into three parts as; 1. Data Collection 2. Data Analysis 3. Presentation of results 1.5.1 Data Collection According to the Terms of Reference (TOR) of this project, required data were pre-determined. Data already available by means of books, reports and unpublished document and news papers were used as secondary data sources in this study. Field survey method was the main technique applied to collect data of people and properties likely to be affected. Three ways were applied to collect field data;  Set Questionaires,  Interviews/ Case Studies / Consultations, and  Observation. All three methods of field data collection were used at the same day traveling along all project sections. Three research assistants with field supervisors plus six helpers from the rayon were employed to collect field data. Each field assistant was allocated to collect data on one field using questionnaires, interviews or observations (see Annex 1). The collected data were tabulated according to the requirement of result. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.13 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology In addition, data from the study of cadastre department of SRERS is used as primary data source as they are based on survey results recently conducted by the surveyors of SRERS with participation of consultant’s monetary valuation experts. The following Figure shows the study details for each of the land parcels affected by the Project activities by using surveyed data in the field, to adequately and correctly determine the borders of the land parcels and immovable assets (buildings and complementary structures) with their GPS cordinates. Figure 1.3: Cadastral Maps designed by Cadastre Department of SRERS, showing land ownerships and part of the lots that are affected by the Project activities Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.14 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology Baseline Data Baseline data related to the project area and information about existing condition therein were collected. Priority was given to Population characteristic, community resources, livelihood of the community, political and social resources, community and institutional structures etc. Socio-economic Data The census for PAPs covering socio – economic background was conducted in the project development area. The properties located within the ROW of the pipelines and immediate vicinity of the Project corridor that may be affected was enumerated. The study team considered HHs residing between 500 m distance to both sides of the project central line to collect socio economic data for the SIA of the project influenced area. The relevant project designs and drawings for the systems were used to identify persons and properties likely to be affected. The survey includes the following;  Commercial establishments  Houses  Lands  Minor road Access  Parapet walls, gates, fences  Cultural centers, including graveyards  Public utilities such as telephone, electricity, water lines etc.  Temporary sales outlets, business places  Agricultural plantations affected along the pipelines  Trees affected / cut or to be affected Those are the major areas of impacts to be considered for this study. Direct- affected households were surveyed through a questionnaire survey. Men, women, youth, vulnerable groups were questioned for this survey. Interviews were held to gather socio economic data to determine socio economic background of those concerned. 1.5.2 Stakeholders Consultations The consultation process was carried out in accordance with the World Bank Operational Policy (OP 4.12) on Involutary Resttlement, and the Law of Azerbaijan dated April 20, 2010 on acquisition of lands for state needs (Article 63; paragraph 6.3.1). Participation is a process through which stakeholders influence and share control over development initiatives and the decisions and resources which affect them. The effectiveness of resettlement / rehabilition programs and land acquisition is directly related to the degree of continuing involvement of those affected by the project. Consultation and public participation will continue over Land Acquisition implementation and the remainder of project preparation. Field investigation launched under social survey focused on different stakeholders (primary and secondary) making use of a specific methodology. Focus groups discussion were undertaken with the community such as female-headed households, farmers, truck drivers, residents, laborers, road side vendors, businessmen, men, women, youths, students, etc. The followings were the main components of the ongoing consultation program; (i) Public Consultations primarly related to construction of water supply and waste water network in the city, (ii) regular consultation on support of social program through AWM OJSC rayon representative, and other consultation groups (FS team, EIA team, contractor’s environmental team, supervisors, and social assessment - SA team), (iii) consultation on construction activities, (iv) consultation on project impacts and mitigation measures,and (v) informative consultation on the rights of project affected people with them. The consultant paid more attention to identify negative and positive impacts of the project. All affected householders were specially interviewed and collected information on affected structures, assets, utilities, and land use etc. The socio-economic background of the PAPs was recorded through questionnaire surveys. Public consultation held in each village along the course of both drinkable water transmission main and interceptor sewer alignment were conducted with the involvement of affected persons and village Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.15 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology elders and mayors which considered a number of issues concerning identification of the infrastructure required, development of common property resources, criteria for compensation eligibility, impact mitigation measures, restriction conditions, easements, compensation schemes and etc. In these exercises, women of the affected families were involved to elicit their views and opinions on the over all planning of the resettlement activities. In other words, discussions with a cross section of affected population in particular helped in understanding their problems and preferences. Series of meetings that were held with the stakeholders both for scoping the resettlement / rehabilitation and land acquisition topics and to set forth the resettlement issues related to project options previously preferred. These meetings were held with AWM OJSC, Rayon Executive Power with attending of rayon departments of Ministry of Finance, MENR and relevant governmental departments, local NGOs, and Project Affected People (PAPs). 1.5.3 Data Analysis As shown in the following Table, Social Impact Assessment (SIA) data has been obtained from multitude of sources. These sources are classified as either secondary (existing information) or primary (obtained/conducted for the specific for social impact assessment). Table 1.13: Data Sources Data Sources Quantitave Data Qualitative Data Secondary Sources Previous Surveys Local histories / accounts Census Data Previous studies and SIAs Official Statistics Other literature Monitoring Studies Newspapers Maps and etc. Photo, video / film Maps, and etc. Primary Sources Surveys Interviews Sample surveys Discussions / Focus groups Observations Meetings Participant observation Photo, video / film Maps, and etc. Source: Consultant’s methodology. Both qualitative and quantitative data analyzing methods were used in this study. However, basic statistical techniques along with qualitative data analysis methods were employed to obtain required results. As a pre-requisite for conducting the primary household surveys, relevant information was collected from the following secondary sources:  Census records for demographic information. Official Web Site of the State Statistical Committee of Republic of Azerbaijan, (http://www.stat.gov.az/indexen.php).  Initial PAPs and Land Acquisition Survey Results, AWM OJSC, 2011 - 2012.  Revenue records maintained at local/village level - with regard to land particulars for facilitating acquisition of properties and resettlement of ousters.  Project authorities (AWM OJSC) to find out the ROW/COI, estimates of the cost of infrastructure development etc.  Rayon departments of the ministries to get information on various developmental programs for specific sections of population like those living below poverty line (landless, marginal and small farmers etc.), and etc. Local organizations, including NGO’s (Water User Associations, Red Cross, and Society of Karabagh Veterans) in order to involve them and integrate their activities in the economic development programs of the displaced population. A literature review of relevant country reports and documentation pertaining to the project area of influence, government publications and legislation, project feasibility study, field works conducted by Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.16 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 1; Introduction & Methodology AWM OJSC specialists and project supervisor, and assessments on the environmental impact assessment report provided the wider socio-economic context for the social assessment and afforded an initial understanding of the project area for fieldwork preparation. 1.6 Report Structure Executive Summary Chapter 1 carries introductory character and provides information on project background and nature of project - negative and positive impacts; describes the methodology of desk research, socio-economic survey of project affected communities, results of census of located PAP and inventory of project affected assets, and the activities conducted to minimize project impact. Chapter 2 gives comprehensive information on legal framework of the land acquisition and resettlement process, and institutional organization of the process. Chapter 3 assesses the social impacts of the Project specifying for the preparatory works, closure / decommissioning, construction / rehabilitation works, normal operation, operation in case of accidents and emergency situations in accordance with the Project schedule. Chapter 4 describes the stakeholders consultation and participation process during the performance. Chapter 5 discuss the mitigation measures to mitigate negative social impacts of the project. Chapter 6 describes the implementation mechanism of land acquisition and resettlement, giving information on grievance redressal machanism. Chapter 7 gives the costs of mitigation measures and calculation results for land acquisition and resettlement impact of the Project. Additionally Annexes attached to the document provide: - The blank form of Questionnaire used during the Census of PAPs and Socio-economic Survey of project affected community (Annex 1); - The Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring (Annex 2); - The terms of Reference of the Assignment (Annex 3), and - The Calculation Details of Costs of Mitigation Measures (Annex 4). - Combined PAP list (excel spreadsheet) which containes calculation formulas, registration types and conditions of PAPs, Vunerability of PAPs, PAPs that are impacted with severe impacts, number of households and PAPs according to census survey, and total cash compensation for each of the PAPs (Annex 5). It is worth noting that the final draft of LA&MVP will be made public without the Annexes. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 1.17 | P a g e 2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework Overview Considerations of the legal and policy framework are incorporated into the Resettlement Policy Framework and Land Acquisition paper prepared for SNWSSP of Azerbaijan, and relevant legislation of Azerbaijan to guide resettlement and land acquisition for all components of Second National Water Supply and Sanitation Project (SNWSSP) of Azerbaijan. Under the Project some unforeseen land acquisition is necessitated by the development of the final designs of the Project elements According to Project’s RPF, should the land acquisition occur during the Project activities; it will then be carried out in accordance with the procedures specified in the relevant laws of Azerbaijan, and World Bank Operational Policy (OP) 4.12 and Bank Procedures (BP) 4.12 on Involuntary Resettlement. 2.1 Involuntary Resettlement requirements under the World Bank Involuntary Resettlement Policy (OP 4.12) The WB Policy on Involuntary Resettlement is based on the following principles;  Involuntary resettlement, including land acquisition and all associated impacts, is to be avoided or at least minimized.  Compensation and/or other forms of rehabilitation assistance will be provided as necessary to provide those affected with opportunities to improve, or at least restore, their incomes and living standards.  Compensation for land, structures or other assets will be paid at replacement cost.  Affected persons should be fully informed and consulted on impacts and planned mitigation measures.  The socio-cultural institutions of affected should be supported / used as much as possible.  Compensation will be carried out with equal consideration of women and men.  Lack of legal title should not be a bar to compensation or alternative forms of assistance in lieu of compensation.  Particular attention should be paid to households headed by women and other vulnerable groups, and appropriate assistance should be provided to help them adapt to changed circumstances caused by the project.  The full costs of compensation should be included in project costs.  Compensation and resettlement subsidies will be paid in full, without deductions for depreciation, titling, taxes, or for any other purpose, to the affected persons prior to clearance of right of way/ ground levelling and demolition. According to RPF of the project, five broad areas where the borrower’s obligation under OP 4.12 extends beyond those required under Azerbaijan legislation. These are as follows; 1. Land acquisition (and or resettlement), planning, and procedural requirements, 2. Public consultation and participation of project-affected communities, 3. Extent of compensation and types of assistance to be offered, 4. Categories of people eligible for compensation, and 5. Income restoration. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 2.2 Azerbaijan Laws and Regulations on Land Acquisition and Resettlement Azerbaijan legislation has the following norms, which provide instruction on matters relating to land, land acquisition and compensation for other property losses;  Azerbaijan Constitution (Nov. 12, 1995),  The Land Code (June 25, 1999),  The Civil Code (September 01, 2000),  Civil Procedures Code (September 01, 2000)  Law on Acquisition of Lands for State Needs (April 20, 2010),  Presidential Decree (February 16, 2011),  Law on Land Market (May 07, 1999),  Law on Land Reform (July 16, 1996),  Presidential Decree (January 10, 1997, N534) on Rules about Selling and Buying the Lands,  Presidential Decree (March 15, 2002, N274) on Charter about Rules on Drafting and Approving of the Documents Relating to the Allocation of Municipalities` Lands,  Presidential Decree (October 23, 2003, N972) on Additional Steps Relating to Implementation of Law “On Land Rent” and Approving the Rules about the Auctions Relating to the Allocation of Lands to the Ownership or Renting,  Cabinet of Ministers Resolution N158 (1998) on Establishment of New Normative Prices for Land in the Republic of Azerbaijan,  Cabinet of Ministers Resolution N110 (1999) on Approval of Regulations for an Inventory Cost Estimation of Buildings Owned by Natural Persons,  Cabinet of Ministers Resolution N42 (2000) on Some Normative and Legal Acts Relating to the Land Code of the Republic of Azerbaijan.  Law on the Introduction of changes to the Civil Code of the Republic of Azerbaijan; and the Law of the Republic of Azerbaijan on Introduction of changes to the law of the State Registry of Real Estate (December 27, 2013). Most Pertinent Aspects of the Laws and Regulations mentioned above are the following; 2.2.1 Azerbaijan Constitution (Nov. 12, 1995) The Republic of Azerbaijan adopted a new Constitution by national referendum on November 12, 1995. The Constitution came into force on November 27, 1995, and establishes the requirement for payment of compensation where property is compulsorily acquired for State needs. The Constitution of Republic of Azerbaijan establishes the right of individuals or entities to possess property and that such ‘’property rights’’ shall be protected by law; also, establishes that no one will be dispossessed of the land without a ‘’decision of court’’, and that alienation of the property for state needs shall only be allowed upon ‘’fair reimbursement of its value’’ (Article 29). Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 2.2.2 Land Code (approved by decree # 695, on June 25, 1999) The law on proprietary rights of the state, municipalities, private individuals, and entities; empowers state and municipalities to resume land for municipal and public needs; sets out basis to be used for land valuation; provides for rental for state and municipal lands; defines responsibilities for imposition of land taxes and payments associated with land agreements; sets out the roles and responsibilities for resolving land disputes. When land is required for projects of national interest, compensation is initially offered on the basis of valuations made in accordance with a standard code (No. 158, dated 1998). If landowners are unhappy with this valuation, there is scope for agreeing on a revised valuation. In the event that such agreement cannot be reached, the acquiring authority can process its application for acquisition through the courts, but this is often a long and complex process. The landowner also has the option of seeking recourse through the courts. The Land Code also allows for an exchange of land that is equivalent to the land being acquired. When a relevant local executive authority decides a land case, the decision shall come into force immediately, and this decision will not be terminated by the lodging of a complaint with the relevant court. Articles 110 and 111 describe willful occupation of land plots and implementation of illegal construction on land plots as violations of the land legislation, and state that these are prohibited acts. Article 70 describes procedures for resumption of land for state, municipal, and public needs. This Article provides for land plots to be acquired through agreement based on landowners, users or lessee’s consent (Article 70.2) or through expropriation that must be implemented on the basis of court decision (Article 70.3). Expropriation is only permitted for important state, municipal, and public facilities. Where privately owned plots are purchased for state needs, the holder of an interest in the property must be compensated by either payment of full market value of the lot at the date of acquisition (Article 70.5) or, through grant of another land plot of equal size and quality based on mutual consent (Article 70.8). Complaints relating to resumption of lands can be lodged in accordance with the Civil Procedures Code. Article 96 outlines the approach to be used for determining the market price of land. In cases where a land plot is purchased for state needs, Article 96 indicates the market price should be determined on the basis of the parties’ mutual consent by taking an independent valuer’s opinion into account (Article 96.6). Any dispute shall be resolved in court. Provision is also made to value to ‘’use rights’’ or ‘’lease rights’’ based on market price and mutual agreement between the government agency instigating the purchase and those with an interest in the property (Article 96.7). Chapter XXI Article 103 and 108 describe avenues for the resolution of land related disputes. Generally, responsibility for resolving land disputes rests with executive authorities, municipalities and district courts. 2.2.3 Civil Code, September 01, 2000 The law defines types of legal interest in property (full ownership, lease, and third party); requires proprietary rights and other rights for immovable property, as well as any restrictions, formation, assignment and transfer of rights to be registered with the state (Article 139). According to law, use rights, servitude rights and mortgages must also be registered. The law also requires that land acquired for state and public needs shall be purchased by and ‘’Authorized Body of the Azerbaijan Republic’’, or municipality, by paying the market price in advance (157.9). The law also provides a landowner who opposes the purchase of his or her land for state and municipal needs, or is dissatisfied with compensation, recourse to the civil court (Article 248.1); provides for people to have the right to register their ownership due to long, actual possession (Article 178.6 - 30 years; Article 179.1 – 10 years). However, the distinction between these two articles is not clear. The Civil Code also states that any rights to immovable properties must be registered with the state, and that land may be recalled from owners for state or municipal needs as approved by the relevant courts. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 2.2.4 Civil Procedures Code, September 01, 2000 The law sets out procedures and applicable time frames for actions and appeals through the court. Court decisions on compulsory acquisition and the baisi of any land valuation must be appealed with the higher court within one month of such decision (Article 360). 2.2.5 Law on Acquisition of Lands for States Needs dated April 20, 2010 & Presidential Decree # dated Feb. 16, 2011 The law on acquisition of lands for state needs dated April 20, 2010 and Presidential Decree dated February 16, 2011 is currently the main legislation for acquisition of lands for state needs, and for compensation of the loss of the project affected people (families), municipalities, and other public / private industrial / commercial institutions from the project activities in Azerbaijan. The Law Law provides the detail procedure of acquiring the lands for state needs, calculating the amount of compensation, the rules of paying this compensation as well as stipulates the other relations between the parties relating the land acquisition. The law also defines State needs for acquiring the lands (Article 3). Lands can be acquired for the following projects and investments only, and which are as follows;  Projects on national roads, highways, oil and gas pipelines, water supply and sanitation, high voltage power transmission lines, and the ones relating to other hydo-technical investments.  To provide a secure buffers along the national borders.  Projects which are important for national defense and security.  Mining projects which are important in national level. The law also defines what course of action will be taken during the preparation of the land acquisition by the governmental organization that is authorized for acquisition of lands (Article 9.2); The law also provides the detail definitions for cut-off date (Article 11); provides the procedures and methods for investigating and calculating market price of the land to be acquired (Article 58 - 59); provides details on the land acquisition and resettlement commission to be established both in central level and local level (rayon level) to ensure effective interagency coordination during the implementation of RAP (Article 40). Presidential Decree dated February 16, 2011 The Presidential Decree dated February 16, 2011 mainly regulates the roles and responsibilities of the governmental departments defined as ‘’Pertinent Authorized Governmental Organization / Department’’ in the Law on acquisition of lands for State needs dated April 20, 2010. 2.2.6 Law on Land Market dated 1999 and Law on Land Reform dated 1996 The law establishes for land transactions such as purchasing and selling of land, mortgages, transferring of rights to other users and lessees, and transfer of land through inheritance; makes recommendations on the nature of the land market agreements and contracts. The law also requires registration of all land rights and sets out documentation requirements; and outlines penalties for failure to comply with regulations. These laws stipulate that ownership, use and renting rights of owners on lands can be transferred only upon their personal consent and through land auctions. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 2.2.7 Presidential Decree (10 January 1997, N534) - On Rules about Selling and Buying the Lands and Presidential Decree (15 March 2002, N274) - On Charter about Rules Municipalities` Lands These documents establish the main principles and procedures of buying and selling the lands, especially municipality lands through land auctions. 2.2.8 Presidential Decree (23 October 2003, N972) - On Additional Steps Relating to Implementation of Law “On Land Rent” and approving the Rules about the running of auctions relating to the allocation (ownership or renting) of state or municipality lands. These normative acts provide that the lands which are in state ownership may be allocated to ownership or rent through auctions by the decision of local executive power. The lands owned by municipalities or private individuals may be allocated through land auctions only upon the consent of owners. 2.2.9 Cabinet of Ministers Resolution N158 (1998) – On Establishment of New Normative Prices for Land in the Republic of Azerbaijan This decree sets out standard and normative values of land for each district in Azerbaijan. 2.2.10 Cabinet of Ministers Resolution N110 (1999) – On Approval of Regulations for an Inventory Cost Estimation of Buildings Owned by Natural Persons This resolution outlines procedures for acquisition and compensation valuation for affected buildings and immovable properties. It refers to the standard code No. 58 that is to be used for making valuations of land and property to be acquired. These valuations are made on the basis of standard unit rates for different types of construction in different regions of Azerbaijan. SNIP (Construction Norms and Regulations) defines norms and standards used for right of way and sanitary zones. (These norms were used in the former Soviet Union for design and construction and are currently still being accepted in Azerbaijan. There are different SNIPs for each type of construction, such as bridges, water treatment plants, and residences.) 2.2.11 Cabinet of Ministers Resolution N42 (March 15, 2000) – On Some Normative and Legal Acts Relating to the Land Code of the Republic of Azerbaijan This resolution expands on provisions of the Land Code with respect to the following areas; a) Procedures for determining payments for agriculture and forestry production losses and demage resulting from restriction of use, or change in land use, b) Procedures for resumption of private land for state or public needs, c) Procedures for granting leases for grazing and hayfield use, and d) Procedures for allotting land for industrial, transportation, communications, and other purposes. This resolution outlines procedures for the compulsory acquisition of land for state or municipal needs. According to the legislation of the Republic of Azerbaijan, there are three possible scenarios for land acquisition; 1. The landowner is offered land of equal size and quality. 2. The landowner is compensated by proponents of the land acquisition on the basis of current market prices. 3. The dispute is the subject of court consideration. The real situation with land reserves often excludes the first scenario. Local authorities either have no land reserves, or the quality of these lands is much poorer than the land owned. Land swap does not Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework appear to be an option because of the poor quality of available land. Therefore the main avenue for land acquisition in actuality is the provision of cash compensation through a valuation method based on current market prices and timely payment of compensation. 2.2.12 Land Tenure and Title Under Azerbaijan Legislation, there are four main types of legal interest in land, which are following; 1. Full ownership, 2. Right of Use – either temporary (short term – 15 years or long term with a maximum (renewable) term of 99 years) or permanent, 3. Lease (can be concluded for any term, but can be terminated by either party after 30 years), and 4. Third Party Rights such as usufruct, servitude, and interest of pledge holders. The proof of title to most legal interest in land requires registration (Civil Code, Article 139, and Land Code Article 67.3). The titles to land /real property are registered at the SRERS1 Persons who do not have registered land rights can be divided into those who do not have any right to register their title, and those who have legal right to submit documents orginating the ownership right and obtain legally valid title / Ownership Certificate, but for some reasons have not completed the registration until present. It can be argued that the State cannot dispossess the latter from their lands without compensation on the basis that they have not completed their registration. The project has made provision to compensate all affected owners and users identified in the project census, whether registered or not, above the minimum obligations defined under Azeri Laws. 2.2.13 Power of Eminent Domain The State, and agencies of the State, are empowered to undertake mandatory acquisition of the land where it is for ‘’important State, Municipal, and Public Facilities’’ (Land Code Article 70). Acquisition requires a court decision based on a petition submitted by the applying state authority (Civil Code Section 248.1). The Compulsory acquisition may be appealed. The Laws of Government of Azerbaijan have several clauses that qualify the State’s use of expropriation or mandatory acquisition within the SNWSSP of Azerbaijan. However, Project’s RPF, agreement between WB and GOA, and project appraisal documents have clauses that stipulate to comply with WB OP 4.12 on Involuntary Resettlement, and the IFC Handbook with the laws and regulations of Azerbaijan relating to resettlement and land acquisition for preparing and implementing a Resettlement Action Plan. Therefore, the State will only use the power of eminent domain when other means fail. 2.2.13.1 Legal Procedure for Compulsory Purchase of Land The following Figure shows the legal procedures for compulsory purchase of land (Eminent Domain) in accordance with the Civil Procedures Code of Azerbaijan, September 01, 2000. 1 State Real Estate Registration Services of State Committee for Property Issues of the Republic of Azerbaijan. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework Figure 2.1: The legal procedures for compulsory purchase of land (Eminent Domain), (Source: Civil Procedures Code of Azerbaijan, September 01, 2000) Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 2.3 Compensation Valuation Methods in Azerbaijan 2.3.1 Land Compensation Procedures for valuation for compensation and other purposes are laid down in the Law on Acquisition of Lands for States Needs dated April 20, 2010, the Land Code, the Civil Code, and the following legal instruments;  Cabinet of Ministers Resolution N.42 (2000) - on Some Normative and Legal Acts relating to the Land Code;  Cabinet of Ministers Resolution N.110 (1999) - On Approval of Regulations for an Inventory Cost Estimation of Buildings owned by Natural Persons. 2.3.2 Permanent Acquisition of Land The land compensation price must be based on the market price, provided that such price is not less than the cadastral or normative price for the subject land (Land Code, article 96.5). Normative or cadastral rates for lands in each district are established by Cabinet of Ministers Resolution N158 on Establishment of New Normative Prices for Land in the Azerbaijan Republic. The project will pay compensation for permanent acquisition of land based on market value plus any fees, taxes, etc. associated with replacing the land.. The final agreed-on price paid as compensation for land lost to expropriation will correspond to the World Bank’s requirement of “replacement value,” enabling the affected person to purchase land of equivalent area and quality. During land privatization, land titles allocated to families had all members of the family in the land parcel ownership certificate. In such cases, the household head is responsible for signing project documentation relating to leases or assignment of rights. The household head must, however, obtain the written consent of all other people listed on the ownership documents. 2.3.3 Compensation for Immovable Assets and Land Attachments This covers a range of items such as cabins, fences, walls, animal enclosures, small irrigation channels, drains, wells, hand pumps, artesian bores, water pumps, hay sheds, animal shelters, and roads. These items will be valued on the basis of full replacement cost. No demolition of structures is expected. However, should it occur, no “depreciation” will be used in calculating the compensation payable for affected structures, so that affected people will be able to replace their structures with the compensated amount. 2.4 Comparison of Azerbaijan Government Policy and WB Policy on Resettlement (WB OP 4.12 on Involuntary Resettlement) Many requirements of the WB’s OP 4.12 are covered in full or in part by current Azerbaijan legislation. These include;  The requirement to pay compensation in advance where land is compulsorily acquired; Land Code, article 70.5 and Law on acquisition of lands for State Needs dated April 20, 2010, article 4.2.  Definition of Project Affected Person (PAP); Law on acquisition of lands for State Needs dated April 20, 2010, article 7.  Preparation of RAP and/or Land Acquisition Plan for the project in advance before the construction starts; Law on acquisition of lands for State Needs dated April 20, 2010, article 9, 10, and 20.  The requirements for implementing census surveys and inventory of the assets to be affected; Law on acquisition of lands for State Needs dated April 20, 2010, article 11, 12, 13, and 14. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework Requirements for consultation procedures and activities with the communities and PAPs to be affected by the project, and redressal mechanisms; Law on acquisition of lands for State Needs dated April 20, 2010, article 15, 16, and 17 and for grievance redressal mechanisms and handling of disputes see article 75.  The need to compensate based on full market value plus any fees, taxes, etc. associated with replacing the land or through grant of another land plot or building of equal quality, size, and value; Land Code articles 8 and 70.5, and Law on acquisition of lands for State Needs dated April 20, 2010, article 23, 24 and 81.  The need to avoid, wherever possible, impacts on agricultural land and forests (Cabinet of Ministers Decree N42, section I, article 2.  The requirement to compensate for losses, whether temporary or permanent, in production or damage to productive assets and crops; Cabinet of Ministers Decree N42, Sections I and II.  Provision for pre-judicial avenues for resolution of disputes and rights of appeal etc. The WB OP 4.12 principle of avoidance or minimization or resettlement is addressed in Article 70.4 of the Land Code and article 3 of the Law on Acquisition of Lands for States Needs, which stipulate that lands can be withdrawn only for location of state, municipal, or public facilities of high importance. Under Article 22 and 30 of the Land Code, the state is required to establish protection zones (buffer zones) with special (restrictive) regime for the purposes of construction and operation of industrial facilities. The Article 22.3 of law requires that landowners, users and lessees shall not lose their rights of access and use of such lands, other than in cases which require full withdrawal of land. Servitude on a land plot is regulated Article 54 of Land Code of Azerbaijan. According to the Law Article 54.4, the following servitudes may be established for a land plot;  To pass and drive through a land plot;  To use a land plot with the aim of installing and renovating individual, communal, engineering, electric, and other lines and network;  To probihit the construction of structures. Under Article 54.8 of Land Code, servitude may be temporary or permanent. Under Article 54.11 if the foundation for the establishment of servitude is subsequently eliminated, then, on the demand of the land-owner, this servitude may be suspended. In cases when it is impossible to use a land plot in accordance with its designation due to the establishment of servitude, the owner of this land plot has the right to demand in a judicial manner that this servitude be suspended. There are few broad areas where the borrower’s obligation under OP 4.12 extends beyond those required under Azerbaijan legislation. These are as follows; 1. Land acquisition (and or resettlement), planning, and procedural requirements, 2. Extent of compensation and types of assistance to be offered, 3. Categories of people eligible for compensation, 4. Income restoration, 5. Restriction of use establishing servitude on the lands which will be traversed by the pipelines along the project corridor for the project life (20 years), and principles of servitude (see Chapter 3, and for the principles see Chapter 5.3.2) 6. In addition to cash compensation provision of rehabilitation measures for severely affected PAPs and Vulnerable Groups. The Azerbaijani Law on acquisition of lands for State Needs dated April 20, 2010 has eliminated the gaps on the compensation principles between WB OP 4.12 and Azerbaijani legislation 2.4.1 Resettlement Planning & Procedural Requirements All details for resettlement planning and procedural requirements is comprehensively regulated in the Azerbaijani Law on acquisition of lands for state needs dated April 20, 2010. According to this Law, Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework almost all activities should be executed and finalized by the Authorized Purchaser Agency (AWM OJSC), undertaking of the component activities of a resettlement action plan such as a census, consultation with project affected people, monitoring, or reporting. Measures that will be employed under the project in accordance with WB OP 4.12 and Azerbaijani Law on acquisition of lands for state needs will include;  Consulting with potential project-affected people on feasible measures for land acquisition if applicable.  Drafting and implementing a full public consultation strategy and disclosure plan before land acquisition procedure (funds will need to be allocated for consultation activities).  Carrying out a social screening for each subproject to identify the need for a RAP if applicable.  Informing PAPs of their rights to assistance and explaining this clearly, with supporting information and material, if appropriate.  Full disclosure of the approved and agreed RAP. 2.4.2 Public Consultation and Participation Both the law of Azerbaijan for acquisition of lands for State needs and OP 4.12 explicitly specify that PAPs should be informed about their options and rights pertaining to land acquisition and “…consulted on, offered choices and provided prompt and effective compensation at full replacement.” See OP 4.12, Clause 6 (i), (ii), and Azerbaijani Law on acquisition of lands for State needs dated April 20, 2010, Article from 11 to 16 and Article 77 and 79. Measures that will be employed under the project to ensure compliance with OP4.12 and Azerbaijani Law on acquisition of lands for State needs dated April, 20, 2010 will include;  A public consultation meeting that will be carried out after social screening to inform the PAPs of the nature of the project, expected impact, entitlements for compensation, and measures for grievance redress.  Disclosure of project environmental and social information as an integral part of the public consultation process, with information being provided about both benefits and disadvantages of the project.  Information clearly presented in appropriate local languages and dialects and in modes that are sensitive to local communities.  Information disclosed in locations that are open to the public and that are readily accessible to PAPs.  Special measures to make sure that women are well represented in consultation and participation processes.  Additional allowances in the form of one time payment will be issued to every PAP qualified as Vulnerable as described in this LA&VMP Chapter 5.4. Besides, special measures will be undertaken to ensure that vulnerable groups are well presented in consultation and participation processes with the help of AWM OJSC. 2.4.3 Compensation Eligibility The categories of people who must be compensated under Azerbaijan legislation were narrower than those defined under OP 4.12. However, the Azerbaijani Law on acquisition of lands for State Needs dated April 20, 2010 has eliminated the gaps on the compensation principles between WB OP 4.12. Under the legislation, the only individuals and entities entitled to compensation are those with registered property rights, for example, registered landowners, leaseholders, users and those with Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework registered third-party rights, and those who have legally obtained the right to register their title but who have not completed registration. This potentially precludes many categories of affected people that would be entitled to compensation under WB Group policies. World Bank OP 4.12 by contrast embodies the principle that a lack of legal land title does not disqualify people from resettlement assistance. The following Figure shows the types of ownership and livelihood interest in Land in Azerbaijan. Figure 2.2: Types of Ownership and Livelihood Interest in Land in Azerbaijan For the purposes of defining eligibility for compensation by the Water Supply and Sanitation Investment in the rayon landowners, users, and enterprises are categorized as follows; 1. Private Landowners with registered ownership rights 2. Legitimate possessors / landholders eligible to registration of owenrship title 3. Users of State and /or Municipality land for commercial purpises without registered Lease Agreement 4. Unknown / Absent persons that may be legitimate possessors and eligible to registration of ownership titles 5. Un-registered Users According to recent examination of the consultant, as almost 90% of State Livestock Enterprises are privatized and the rest is closed, there are currently no State Livestock Enterprises which are active in Azerbaijan. Therefore, this category is removed from the eligible categories. A breakdown of the types of owner and user in each category is given in the following Table; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework Table 2.1: Entitlement Categories to be used for determining Eligibility for Compensation Entitlement Status Eligible Project Affected People (PAPs) or Entities Private Land Owners  Land owners with registered land ownerships certificates,  Land owner with land passport (registrable) ownership documentation,  Persons who obtained the right to register their ownership due to long actual , but undocumented, possession,  Person with a notarized Power of Attorney to act on behalf of an absentee or otherwise incapacitated landowner,  Trustee or administrator appointed by civil court to act for a missing land owner. Registered Users  State enterprises with registered leases over State or Municipal Land,  Private users and entities with registered leases over State Land,  Private users and entities with registered leases over Municipal Land,  Private users and entities with registered leases over Private Land,  Private users and entities with third party rights (seasonal grazing and stock movable rights, and hay making). Un-registered Users  Private users of state and municipal land with formal lease agreement,  Private User with verbal or informal (un-registered) agreement with Land Owner,  Private users of state or municipal land without lease or formal agreement  Private users of private land without formal agreement with landowner. User/owener of Sevrely affected land  Private owners and or/unregistered possessors of land parcels parcels where project impact exceeds 10 % of teh total area Vulnerable PAPs  Single women, single elderly, pensioners, PAPs with chronical disease and widows Severely Affected PAPs  PAPs losing more than 10 % of income generating land /assets 2.4.4 Loss compensation at at replacement cost2 To restore people’s income-earning opportunities after land acquisition and resettlement, OP 4.12 specifies that “displaced persons are provided with development assistance in addition to compensation measures, such as land preparation, credit facilities, training, or job opportunities” However, as there is only a small part (7% of the land) of a private land to be permanently acquired by the project in Shabran case, and cash compensation3 in one stage for the income loss of PAPs during both construction and operation periods are envisioned for the operation period restriction of use and right of access, there is no need to envisage additional income restoration. Long-term temporary impact processed through Servitude Agreements will allow PAPs to maintain access to land with ROW and use for agricuture purposes (grow annuals crops and vegetables for personal consumption). This approach allowed elimination of the risk for livelihood deterioration of PAPs. 2.4.5 Extent of Compensation and Resettlement Assistance Under current legislation of the Azerbaijan Republic, compensation is payable for loss of land, buildings, crops, assets, profit and othet damages arising from the acquisition for a project. However, current legislation is still far from providing the full replacement cost to the displaced person, regulating the general principles for replacing the income-generating assets. 2 The method of evaluation of project affected assets to replace the loss at current market value, or its nearest equivalent, and is the amount of cash or equivalent in kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged and depreciation for age cannot be deducted from the compensation. The rate of compensation for lost assets should be calculated at full replacement cost including transaction costs. For losses that cannot easily be valued or compensated for in monetary terms, in-kind compensation may be appropriate. However, this compensation should be made in goods or resources that are of equivalent or greater value and that are culturally appropriate. 3 Amount of cash compessation was calculated according to the principles of replacement cost. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework The WB OP 4.12 recommends that displaced persons should be able to choose few feasible options such as;  To obtain replacement lands – land based options, and/or  To start non-land based income-generating activities such as; o Wage employment, o To start a small business, and etc. In addition to compensation for losses of land and productive assets, WB OP 4.12 requires that the resettled people;  Should be assisted with their move and supported during their transition period at the resettlement site; and  Assisted in their efforts to improve their former living standards, income earning capacity, and production levels, or at least to restore them. The World Bank policy notes that cash compensation alone may not be adequate to restore lost production. Other types of loss that are recognized under the World Bank Group policy as needing to be addressed are loss of access to; 1. Public services, 2. Customers and suppliers, and, 3. Fishing, grazing, and forest areas. The policy recognizes that such losses cannot be easily evaluated or compensated in monetary terms, but emphasises the requirement for attempts to be made to establish access to equivalent resources. 2.4.6 Legal Assistance to Project Affected People (PAPs) AWM OJSC (authorized purchaser on behalf of the government of Azerbaijan) will give the legal assistance to legal PAPs throughout the land acquisition, negotiation, resettlement, income restoration and agreement signing phases of the project. The role of AWM OJSC will include;  Prior to signing of agreements, AWM OJSC will assist project affected land owners and users with special legal requirements to get their land ownership papers in order, or to initiate procedures necessary for appointment of an administrator (for a missing land owner) or establish a power of attorney for some one to act on behalf of an absentee.  Prior to negotiations and signing of agreements, to prepare a plain language explanation of land agreements for affected land owners and users, together with information on the rights and obligations arising there from.  During negotiations and signing of agreements, to act as a third party to provide advice to project affected people.  During and after negotiations, to assist project affected people, as a third party, for dispute resolution or with any other project-related legal matters that might arise. 2.5 Project Measures relating to Compliance with WB/IFC Requirements Specific project measures relating to World Bank Group requirements are summarized in following Table. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.13 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework Table 2.2: Project Measures Relating to Compliance with WB/IFC Requirements WB Group Requirement Project Commitment Requirement for preparation of a AWM OJSC is carrying out resettlement planning activities and currently LA&MVP preparing the LA&MVPin accordance with the policies and guidelines as set out in WB OP 4.12, and Local Legislation World Bank requirement for AWM OJSC has thoroughly explored alternative options for the drinkable avoidance/ minimization of water pipeline and interceptor sewer routing and siting of the facilities and has resettlement avoided the need for any physical displacement of people or dwellings as possible as. Specific measures introduced to minimize permanent land acquisition and livelihood impacts are given in Chapter 1.4 of this report. Compensation at full replacement AWM OJSC expects to compensate at equivalent to or generally above cost government or normative rates for land, trees, crops and assets. Project offered rates will cover full replacement cost. Assist in efforts to improve (or at No PAP will face physical resettlement or economic displacement as a result of least restore) living standards and the proposed project livelihood Temporary long-term llimitations of land use rights will be mitigated through one time cash compensation calculated at replacement cost as defined in the WB OP 4.12 and the relevant active laws of Azerbaijan. Specific addittional provisions are envisaged for severely affected vulnerable PAPs. Absence of legal title to land should All users of land (including those with legal documents, those without, & not be a bar to compensation informal dwellers), subject to reasonable substantiation of historical use, will be entitled to compensation for loss of land attachments, structures, crops and livelihood based on the triangulation principle. Where a transaction involves an owner and user, the two will agree a split of compensation based on the historical arrangements between them. Compensation for people or entities AWM OJSC will assist any project affected landowner, user, leaseholder without registered title to land or or those with third party rights with the required ownership documents to immovable assets register their titles in order to formalize their right to compensation as part of the compensation process. Leaseholders and users (with legal agreements or not) will be entitled to compensation subject to reasonable substantiation that they have been using the land for two years or more. Special attention to vulnerable AWM OJSC (through preliminary MOUs , census, socio-economic survey groups and severely affected PAPs focus group meetings, indepth discussions and key informant interviews the Design Consultant) identified severely affected and vulnerable4 vulnerable PAPs. Definition of vulnerable groups, see Chapter 5.4 of this report. 2.6 Administrative / Institutional Framework The implementation of this Resettlement Plans involve different agencies, including AWM OJSC (PIU), Ministry of Ecology and Natural Resources, State Real Estate Registery Services (SRERS) under the State Committee for Property Issues (SCPI), local governments, NGOs, and WB. 2.6.1 Organizational Framework Local governments (Rayon and City Executive Power) at the rayon level have jurisdiction for land administration, valuation, and acquisition while a number of other local officials (the local representatives of the State Land and Cartography Committee (SLCC), and local representative of SRERS, local representative of MOF, Department of Architecture and Town Planning (DATP) of Executive Power of the Rayon, Rayon or regional representative of MENR, and representative of relevant municipalities will carry out specific roles such as titles identification and verification. Functions pertaining to compensation of assets different from land (i.e., buildings and crops) or income rehabilitation also fall on the local governments and, more specifically, on the relevant rayon office (see Figure 6.1). To provide effective interagency coordination and officially endorse the surveys and the compensation rates, the Law on acquisition of lands for state needs dated April, 20, 2010 stipulates that a Local 4 Please see Definition of Terms for vulnerable groups Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.14 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework LARC should be established by AWM OJSC (Authorized Purchaser Agency), which inclusives of the following local government institutions (Article 22): Department of AWM OJSC in rayon, Department of Finance in rayon, Department of SCPI in rayon, Department of SRERS in rayon, State Committee of Property Issues, municipalities on the course of the project corridor, and other relevant authorities and Community Based Organizations (CBOs – Local NGOs). 2.6.2 Institutional Roles and Responsibilities Planning, formulation and successful implementation of the LA&MVP requires the roles and responsibilities of different stakeholders and interest groups to be clearly defined and communicated. The law on acquisition of lands for State needs dated April 20, 2010 and Presidential Decree dated February 16, 2011 clearly draws and defines the roles and responsibilities of the governmental departments for acquisition of land for state needs. Overall responsibility for planning and execution of land acquisition / compensation and income rehabilitation / restoration rests with AWM OJSC. The Cabinet of Ministers of Azerbaijan commissioned AWM OJSC with the Cabinet Minister Decree No 75 dated May 03, 2013 as Executing Agency for performing the land acquisition, and other relevant resettlement activities. Roles and responsibilities for the tasks of planning and execution of land acquisition / compensation and income rehabilitation / restoration are summarized in the following Table and expanded thereafter. Table 2.3: Land Acquisition & Resettlement Roles and Responsibilities Responsible Activity Purpose Period Implementation Authority Application for land To secure Azerbaijan Planning AWM OJSC AWM OJSC allocation for the Government approval for project allocation of land for t he project Research of Land Title Identification of Project Planning AWM OJSC, AWM OJSC researches title and ownership details affected land, parcels, SCPI, SRERS and ownership information. landowners and users SRERS assist with GIS database development Census of Project To provide a record of all Planning RAP Consultant, Land Acquisition Team Affected Households households & enterprises Land Acquisition eligible for compensation Team Notification and Meetings to advise Planning AWM OJSC, Land Acquisition Team with Preliminary landowners / users of the RAP Consultant assistance from district Consultation with need to acquire their lands, executive authority and affected community and explain procedures to village representatives be followed Socio-economic To assess affected Planning AWM OJSC, International Rap Consultant Survey of affected households living standards RAP Consultant together with National social people & livelihood sources as a assessment consultant basis for identifying impacts, and establishing a monitoring baseline Preparation of RAP To comply with national / Planning AWM OJSC, International RAP international good practice, RAP Consultant Consultant and Land ational regulations / WB OP Acquisition Team 4.12, and lender requirements Signing of preliminary MOU with each affected Planning AWM OJSC AWM OJSC signes the Memorandum of owner / user agreeing that MOUs with owners and Understanding (MOU) the Project corridor land leaseholders may be acquired, with a description of affected area & its condition including crops, trees and other immovable assets. Survey & Loss To assess all lands, assets, Planning RAP consultant’s RAP consultant’s social Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.15 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 2; Policy, Legal, and Administrative Framework assessment livelihood impacts as basis social survey survey and valuation Team for valuation and valuation Team Valuation of Land, To define amount of Planning RAP consultant’s Valuation and Land assets, and livelihood compensation payable for social survey Acquisition Commisiions to be lost temporary and permanent and valuation and RAP consultant’s social use of land Team survey and valuation Team Final negotiation of Based on the Pre-construction AWM OJSC Valuation and Land compensation recommendation of the Valuation and Acquisition Commissions to RAP Consultant’s valuation Land Acquisition be established team, the Land Acquisition Commissions team negotiates final compensation with affected people Execution of Land To formalize acquisition of Pre-construction AWM OJSC AWM OJSC and owner / Acquisition rights necessary for Land Acquisition user sign the agreement, Agreements construction / operation of Commission witnessed by register notary. the projects Payment of To disburse cash 30 days before AWM OJSC AWM OJSC by depositing to Compensation compensation to all eligible construction the bank accounts affected land owners / designated for landowners / users users Issue of new To formalise all transfers of Post- Cabinet of SCPI prepares Certificates ownership documents land ownership (Permanent construction Ministers, of Land Ownership under and lease agreements Acquisition), and AWM OJSC agreement signed with with public registration of rights of AWM OJSC; Ministry of departments lease (parts of the Project Justice registers in SRERS. corridor located on the lands which are owned by governmental departments, public utility departments, municipalities, and etc.) , and use restrictions. Restoration of To ensure land affected by Post AWM OJSC Construction Contractor Agricultural Land the Project construction is Construction restored to its pre-project productivity following construction completion Other Livelihood To facilitate Project affected Post-contruction AWM OJSC AWM OJSC Restoration Measures land owners, users and others to restore or enhance their livelihoods Ongoing Consultation To keep Project affected Construction / AWM OJSC E & S department of AWM and Disclosure communities informed Post- OJSC about Project activities construction Monitoring To monitor reinstatement, All Phases AWM OJSC Ministry of Finance receipt of entitlements and effectiveness of livelihood E&S Department of AWM restoration OJSC Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 2.16 | P a g e 3 SOCIAL IMPACTS OF THE PROJECT Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Overview This Chapter of the report will examine the project’s social impacts, outlining the positive and negative impacts of the Project along the Project corridor. The negative social impacts quantified in this Chapter rely on consultant’s social and census surveys, and consultation conducted with Project affected communities, people, and other stakeholders specifically along the Project corridor during the assignment. The total of 305 PAPs are affected through land acquisition and /or easement restrictions. In particular, these 305 PAPs compose 67 project affected HHs. Out of these 67 project affected households three (3) PAPs will have to sell a portion of their agricultural land parcels. Other 62 PAPs will enter into the long-term Servitude Agreements with AZERSU OJSC and the remaining two (2) PAPs will be cash compensated based on the compensation agreement for damage incurred during construction. All present PAPs were interviewed during the household survey and the field studies. Besides, 46 parcels which belong to State and Municipalities are affected by the project activities along the Project corridor. The details of affected public/private land parcels and affected persons are given in the Table 3.4. 3.1 Potential Social Issues of Project Area At the initial stage of LA & MVP preparation it was assumed that some complex social issues will be detected. However, surveys, field observations, small group discussions and individual consultations with different stakeholders revealed more positive expectations of all beneficiaries rather than concerns for project negative impacts. Potential social issues and project impacts broadly categorized into two positive and negative sub- groups are described below. 3.1.1 Positive Impacts Positive socio-economic impacts of the project can be grouped into four as follows; Group 1 – Permanent Positive Impacts on Human Environment and Public Health  Hygiene and development of public health  Sufficient potable water release to the Project area,  Closing of existing septic pits,  Breaking the cycle of disease transfer,  Treated and disinfected drinking water release,  Hygienic water supply & sanitation facilities. Group 2 – Permanent Positive Impacts on Natural Environment  Prevent disposal of domestic sewage to natural environment,  Remove laekages and seepages from the existing septic pits,  Protect groundwater,  Treated waste water disposal to the natural environment, Group 3 – Permanent Positive Technical Impacts  Service area coverage is expanded,  Available for improving the Water Supply and Sanitation infrastructure in order to meet the increasing drinkable water demand against the growing population and the growing economy,  Centralized Fire fighting system,  Existing decentralized, unhygienic, dispersed sytems are removed, Group 4 – Permanent Positive Economic Impacts  Maintenance requirements of the existing obsolote and insufficient facilities would not continue, Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project  Demand side & Supply side efficiency would be provided,  Affordable user charges,  Effective collection of user charges,  Cost recovery would be possible,  No waste money for storing the extra water to any storage mean to keep for future needs. 3.1.2 Negative Impacts The social impacts of the Project are subject to assessment in terms of duration, likelihood and consequences. The impacts have been specified for the preparatory works, closure / decommissioning, construction / rehabilitation works, normal operation, operation in case of accidents and emergency situations in accordance with the Project schedule. The following five stages in the Project life-cycle have been considered in the Social Impact Assessment Report (SIAR) prepared for this project; 1. Pre-construction, 2. Construction, 3. Normal Operation, 4. Operation in case of Accidents and Emergency Situation, 5. Decommissioning. However, given that the Project’s duration will be at least 20 years, the first four phases are given emphasis in the SIAR. Table 3.1: Project Schedule Phase Description 1 Pre-construction It is assumed that it started at the late 2009 with the beginning of the Feasibility study, and relevant other pre-bid activities as no physical activity for surveying the site or construction was not commenced previously. Actual construction in Shabran case is started in the late 2011. 2 Construction / Construction activities include; Rehabilitation Works For Water Supply System  Upgrading the water intake facility, Baku II Canal.  Drinking Water Transmission mains from the water intake to two water reservoirs.  Buffer Reservoir at northern part of the city, 100 cum.  Distribution Reservoir in drinkable water storage capacity of 1,000 cum for Zone 1.  Distribution Reservoir in drinkable water storage capacity of 2,000 cum for Zone 2.  Distribution Reservoir in drinkable water storage capacity of 700 cum for Zone 3.  Feeder and distribution mains in the City. For Waste Water System  Interceptor Sewer from eastern part of the city to WWTP.  Collector and lateral sewers.  Pump Station.  Forced sewer main.  Wastewater Treatment Plant, which is in the max. hourly wet weather design capacity of 510 cum/h. 3 Normal Operation Year around 2015 will begin when all system elements are completed and commissioned, and will lasts up to decommisioning of the systems (not before 2030). 4 Operation in case of This will occur throughout the operation period (at least 20 years of project horizon) due to Accidents and the accidents, and emergency situations may arise. Emergency Situation 5 Decommissioning This will occur at the end of the project horizon (20 years), estimated to be not before 2030. Source: SIAR for Shabran, Aim Texas Trading, LLC, Baku, November, 2013. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Impact Assessment Criteria Due to the highly complex nature of the criteria influencing the significance of each impact, no precise definitions are used to assign significance. Instead, the criteria are considered by Consultant during a case-by-case judgement on significance. The categories within each of the criteria used to assess social impacts are shown in Table below. Table 3.2: Impact Assessment Criteria Impact Significance Criteria Categories (Major / Moderate / Minor) Probability Almost certain Major Likely Moderate Unlikely No impact Rare Minor Extent Large (more than 10 % of the land affected) Major Medium (less than 10 % of the land affected) Moderate Small (less than 5 % of the land affected) Minor Duration Short-term (during construction phase) Minor Medium-term (less than five years) Moderate Long-term (more than five years) Major Potential for Mitigation High (strategy identified and possible) Minor Medium (strategy identified but difficult) Moderate Low (No strategy identified / possible) Major Source: Consultant’s Team development. Summary socio-economic impacts in accordance with the Project schedule are given in the following Table. Significance of the socio-economic impacts that are expected to occur as a result of land acquisition during project preparation phase, followed with the construction phase, normal operation period, and operation in case of accidents and emergency situation varies, but their mitigation potential is high. The Table below presents the social impacts, and assessments of them in accordance with the “impact assessment criteria” given in the Table above. Table 3.3: Summary of Social and Economic Impacts of the Project Impacts Activity Mitigation Impact Description Probability Extent Duration Significance Potential 1 Pre-construction Phase Due to sampling Income Loss from and testing losing of seasonal Unlikely - - - No Impact activities for the crops surveys of Hydro- Temporary Loss of Unlikely - - - No Impact geological, soil Access to farming lots quality, quality Income loss from and quantity of removal of vegetation, water resources Unlikely - - - No Impact landscape, and land use pattern alteration Livestock of immediate vicinities will be Unlikely - - - No Impact affected by alteration of grazing lands 2 Construction Phase Due to Permanent Losing only Long- construction part of the land for Likely small High Moderate term activities for above ground facilities pipelines and Temporary loss of use Short- above ground of Grazing and Pasture Unlikely) small High No impact1 term facilit ies. Lands Temporary loss of use of private lands such as Long- agricultural, agricultural Likely small High Moderate term perennial, residential and homestead lands 1 During earth works and pipeline construction Contractor will be responsible to provide passage/access to public and commercial facilities, agricultural, homestead land parcels and grazing and pasture lands to esnure uninterrupted access and elinimate any income loss due to the lack of access. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Losing part of perennial Long- crops (fruit trees), and Likely small High Moderate term income loss Losing part of the Long- seasonal crops and Likely small High Moderate term income loss Temporary Impact on Municipal agricultural, Short- Likely small High Minor2 residential, and useless term lands Temporary loss of use Short- of Government Likely small High Minor term Irrigation Property 3 Normal Operation Period Due to the routine maintenance Losing income from activities planned loss of perennial crops along the Project due to Restriction of Long- Likely small High Moderate corridor on the Use with establishing term agricultural, servitude on the lands homestead, and affected residential and no- residential parcels Losing income from the throughout the loss of seasonal crops Long- Likely small High Moderate operation period due to routine term (20 Years) maintenance activities Operation in case of Accidents and 4 Emergency Situation Due to the repair, Unanticipated events installation and affecting planned maitenance activities may arise due activities in case to absence of of Accidents and emergency operation Unlikely - - - No impact Emergency response plans, and Situation, and emergency manager of natural disasters the service provider such as floods, (Rayon Sukanal Dept.). seismic activities, Emergency operations etc. sometimes require temporary Access to the agricultural lands and homestead lands and gardens along the Short- pipelines, which in turn Rare small High Minor term cause unpredictable hazards and damages on the cultivated agricultural lands. 3.1.2.1 Pre-construction Phase Negative Impacts As seen in Table 3.2, no impact occurred on the lands within the project corridor due to sampling and testing activities during the pre-construction phase for the surveys of hydro-geological, soil quality, quality and quantity of water resources etc. 2 Some parts of pipeline traverse municipal agricultural, residential, and useless land parcels. However, according to reports of the relevant municipalities, the municipal agricultural lands (5 parcels) traversed by the pipelines are not cultivated, and there is no lease agreemnet with a private or legal person for agricultural activity. The district municipalities also reported that the three residential land parcels that are impacted by the Project, and owned by the district municipalities are not leased for the purposes of residential development to any private or legal person. According to survey results, 41 governmnent owned and municipal parcels require to be compensated against right of access for operation period as damages to be occured on the perimeter fencing, walls, and doors will be reinstated and adequately repaired by the construction contractor. See Annex 4. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project 3.1.2.2 Construction Phase Negative Impacts The following negative impacts may occur during the construction phase on the public & private lands along the project corridor due to temporary use of land for all kinds of construction activities relating to the Project.  Permanent losing only part of the lands  Temporary loss of use of grazing and pasture lands owned by the Municipality  Temporary loss of use of private lands such as non-residential, agricultural, agricultural perennial, residential and homestead  Losing Part of Perennial Crops (fruit trees3), and income loss from perennial crops by cutting the fruit trees in the homesteads lands, gardens, residential and non-residential parcels, and agricultural lands  Losing Part of the Seasonal Crops, and income loss losing seasonal crops on cultivated agricultural and homestead landsTemporary impacts on Public/Private Non-residential Plots; Commercial / Industrial, and Public Institutions by the pipeline construction  Temporary impacts on government and municipal forest areas  Temporary impacts on rivers’ flood plains The Table 3.4 below provides the summary details of Affected Public/Private Land Parcels and PAPs per each land use category. Permanent Losing Only Part of of the Lands Eight (8) parcels will lose a part of them for AGFs in Shabran case. Three private agricultural lands will suffer from permanent losing part of them in Shabran. Other cases where portion of land that will be permanently acquired for above ground facilities (AGFs) are municipal and government owned lands.The above ground facilities (AGFs) required for project purposes are as follows:  Upgrading the water intake facility, Baku II Canal.  Distribution Reservoir 1, 2, and 3,  Buffer Reservoir 100 cum,  Pump Station for Sewage Network,  Above Ground Fire Hydrants,  Waste Water Treatment Plant (WWTP) east of the city, and  Permanent acces roads for AGFs. Temporary Loss of Use of Grazing and Pasture Lands A part of the project corridor (grazing and pasture lands) will be temporarily used by the project during the 4-year construction period. Pastures include only municipal lands. In Shabran there is no municipal land leased for short-term and long-term grazing use along the Project corridor, and therefore, there is no significant impact on these lands due to temporary use of grazing and pasture lands by the project.4 Losing Part of Perennial Crops (fruit trees) and Income Loss by cutting the fruit trees in the Homestead Lands, Gardens, Residential and Non-residential Parcels, and Agricultural Lands No non-fruit trees are affected by the proposed project. However, the project results in loss of a number of fruit trees, and other perennial crops along the project corridor and the land required to permanently be acquired for AGFs during the construction period. This impact comes into existence moderate as indicated in the Table 3.3. Income loss of PAPs from the homestead lands, gardens, and agricultural lands by cutting fruit trees occurs during the construction phase. While the areas of affected fruit trees are relatively small, the impacts on affected owners’ incomes are long in duration 3 There are no affected non-fruit trees standing on project affected land parcels. 4 The temporary impacts on grazing land occur during pipeline construction, where the corridor of the project impact is only several meters (6-20m). Meaning that even if anyone is using this land for grazing without any permission or formal/informal agreement they will still be able to use these lands outside of territories occupied during construction, as construction contractor is responsible to organize temporary passages to grazing lands. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project with some permanent reduction in potential output resulting from the restriction of use along the 20-m and 6-m pipeline strip during Project life time. Therefore, this impact comes into existence moderate as indicated in Table 3.3. Methodology for determination of appropriate mitigation measures are given in Chapter 5 of this report. Losing Part of the Seasonal Crops and Income Loss Losing Seasonal Crops on Cultivated Agricultural Lands and Homestead Lands Income loss from losing part of seasonal crops occurs on the cultivated agricultural lands and homestead lands along the Project corridor during construction. Although this is long-term impact it still comes into existence moderate as project affected agricultural lands are only partially affected. Details are provided in Table 3.3. Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. Possible Temporary Impacts on Private Agricultural, Residential and Homestead Lands by the Pipeline Construction during Construction Temporary impact occurs on a number of these lands that are owned by the private householders during construction of pipelines. This type of impact occurs as a result of; i. temporarily losing access to these lands; ii. damaging soil quality of the land; iii. damaging some main and complementary structures on the lands; iv. damaging some attachments5 of the affected lands, and v. losing income by cutting fruit trees. However, in Shabran rayon, there are no main6 and complementary structures7 that are damaged during the construction of pipeline and above ground facilities. Only four private residential plots suffer from loss of income by cutting the fruit trees during the construction phase. Actually, the project affects no main and/or complementary structure attached to the project affected land parcels. In case a complementary structure is damaged by the project, damages on it would be assessed as the damages to the main structures and included into the mitigation measures for cash compensation. Mitigation measures for such damages are not envisaged for compensation within this project as the damages that are occured on the attachments during the construction are compensated in kind by the Contractor, reinstating the removed part of the attachments and repairing adequately to bring them back to at least pre-project condition. Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. Temporary Impact on Municipal Agricultural, Residential, and Useless lands Some parts of pipeline traverse municipal agricultural, residential, and useless land parcels. However, according to reports of the relevant municipalities, the municipal agricultural lands (5 parcels) traversed by the pipelines are not cultivated, and there is no lease agreemnet with a private or legal person for agricultural activity. The district municipalities also reported that the three residential land parcels that are impacted by the Project are not leased for the purposes of residential development to any private or legal person. According to survey results, 41 government owned and 5 Attachments: Any kind of fences, walls, hedgerows, irrigation ditches/,channels and wells, any kinds of accesses to the lands and plots, power and communication poles and related equipments are categorized as attachments of the affected land plots or main buildings. 6 Main Buildings: Main building and any adjacent structure to the main buildings such as animal shelters, depot, open and closed garages etc.. are categorized as “Main Buildings”. 7 Complementary structures: Animal shelters, any kind of depot, open and closed garrages located separately from the main buildings in the plots to be affected by the project are categorized as “Complementary Structures”. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project municipal parcels require to be compensated against right of access for operation period as damages to be occured on the perimeter fencing, walls, and doors will be reinstated and adequately repaired by the construction contractor. This impact comes into existence minor as it is temprary in nature. See Table 3.3. Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. Temporary Impacts on Governmnet owned Irrigation Structure Temporary impact occurs only on one government owned irrigation structure (irrigation canal). However, this impact comes into existence minor as there is no significant impact on the structure, and damages occured on it has been reinstated and repaired by the construction contractor. Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. 3.1.2.3 Operation Period Negative Impacts The following negative impacts will occur during the operation period on the public & private lands affected along the project corridor due to the routine maintenance activities planned along the Project corridor throughout the operation period (20 Years).  Losing income from the loss of perennial crops due to Restriction of Use with establishing servitude on the lands affected;  Losing income from the loss of annual / seasonal crops due to routine maintenance activities. Losing Income from the Loss of Perennial Crops due to Restriction of Use with Establishing Servitude on the Lands Affected Almost all PAPs were consulted during preparation of this document and offered several land acquisition options to select the most prefereed one. To minimize land acquisition impact of the project, as far as possible, restriction of use on the affected lands is considered throughout the construction8 (4 years) and operation9 (20 years) period of the project, but servitude agreement will be established for operation (20 years) period, in consultation with project affected people and other stakeholders, including local municipalities, local government (REP), and AWM OJSC. Restriction of use is applied to the lands affected along the drinking water transmission main, distribution mains, interceptor sewer, and collector sewers. Restriction of Use and Way Leave Restrictions of use and way leave are typically applied around the drinking water and sewerage pipelines which traverse public / private land parcels, in accordance with the SNIP II.04.02 (and 0.3) – 84 and 85, to reduce the potential for accidental damage, and to minimize the risks to people and communities living and working in the immediate vicinity Pipeline Corridor for Drinking water Transmisson Main and Interceptor Sewer Restrictions of Use will be applied to a 20-metre corridor (referred to as pipeline protection zone) in accordance with the SNIP II.04.02 (and 0.3) – 84 and 85. Restrictions will apply throughout the operational life of the project. Restrictions of use will be applied through servitude10 agreements to be signed with each project affected land owner. 8 All losses to be occurred on the affected land during construction period will be compensated as the rules and methodology explained in chapter 3.1.2.2 and Chapter 5. 9 All costs of mitigation measures for construction period impacts (loss of income from project affected fruit trees to be cut at the beginning of construction and timber value of the trees) have already been calculated, see Chapter 7 and Annex 4. 10 Servitudes are regulated with the Article 54 of Land Code of Azerbaijan, see Chapter 2.4 of this report. This code allows that parties concerned to the servitude may establish an agreement to determine the rights of the parties and the owner of the land has the right to demand in a judicial manner that the servitude be suspended. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project The following Figure illustrates the pipeline protection zone of the drinking water transmission main and Interceptor sewer. Figure 3.1: Pipelines (Drinking water transmission main and Interceptor sewer) Protection Zone, see Table 2.4 and 2.5 (SNIP II.04.02 (and 0.3) – 84 and 85) Planting Restrictions in the Protection Zones Planting of trees and vines within the immediate vicinity of the drinking water transmission main, distribution mains, collector and lateral sewers, and interceptor sewer will also be subject to restrictions to; 1. Avoid possible damage from tree roots to the pipelines themselves, and 2. Allow for vehicular access along the pipelines for maintenance or other requirements. While Appropriate compensation measures are given in Chapter 5, the Figure provided below details the controls on tree planting over the drinking water transmission main and interceptor sewer. The planting restrictions have been developed to minimize the alienation of agricultural areas for tree crops, orchards and vineyards. Trees and vines will not be permitted within an three-metre strip directly over the pipelines. 10 Almost all PAPs were consulted about the project impacts due to pipeline construction. Mainly, there were three options, one of which is “acquiring the land along the pipeline in 20m width” without establishing servitude and restriction of use, that AZERSU has been preferring this option, second option was “acquiring the land along the pipeline in 6m width” with establishing the servitude and restriction of use within the corridor of 7m after 3 m distance in either side of the pipeline, and third one was “establishing the servitude and restriction of use in 20m width along the pipelines, giving 6m right of acces within 3m in either side of the pipeline (3+3=6m). The third option was mainly preferred by PAPs as this option would:  Provide to continue to use the land which is affected by the pipeline construction throughout the operation period;  Provide the land which is impacted by establishing servitude for right of access throughout the operation period and restriction of use would remain on hand of the PAP since the servitude will be established only for 20 years, and servitude and restriction of use will be disappeared (annuled) within the beginning of 21th year, unless AZERSU will desire to renew it and propose a new agreement with acceptable compensation. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Figure 3.2 below is the decsription of planting restrictions to be applied to land within ROW subject to Servitude Agreements. Similar table will be included in the Public Information Booklet (PIB) and more specific restrictions applicable to each project affected land parcel will be attached to the Servitude Agreements. Thus, PAPs are clearly informed on specific restictions they will be responsible to adhere during the validity period of Servitude Agreements. Figure 3.2: Tree Planting Schedule in Restricted Zone along the Drinking Water Transmission Main and Interceptor Sewer Restrictions of use will be applied in a 20-metre ‘’protection zone’’ that extends along the interceptor sewer. A 6-metre ‘’protection zone’’ will apply along the drinking water and collector sewers which cross private homestaed lands and gardens in the city. The restrictions will apply for the operational life of both drinking water and sewage pipelines, which are twenty years with the option for extension. The restriction of use will affect present land-use practices along the pipelines where this practice will be applied as the households will not be allowed to re-establish trees cut, and building any new structure along the 20-metre protection zone out of the city and 6-metre protection zone in the city with other types of restrictions. It is worth to be noted that planting restriction does not mean to ban the cultivation and/or planting totally on the restricted area, however it requires some re-arrangements of planting and cultivation activities within the 20-m protection zone for 20 years. Although this is a long-term impact in nature the potential for mitigation is high through provision of compensation for loss of income incurred as a result of lack of access during construction period and the some limitations on the land use rights during pipeline operation period. However, notwithstanding the long-term impact the by nature this impact was assessed as moderate due to available mitigation measures in the form of cash compensation as described in the Chapter 5 of this document. (seeTable 3.3). Methodology for determination appropriate compensation and mitigation measures is given in Chapter 5 of this report. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Losing Income from the Loss of Annual / Seasonal Crops due to Routine Maintenance Activities Income loss will occur during operation period from the lands which will be exposed to restriction of use establishing servitude as the systems constructed wil require routine maintenance activities during the operation period within 6-m corridor. This impact will come into existence moderate as indicated in Table 3.2. Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. 3.1.2.4 Operation in case of Accidents and Emergency Situation The impact will occur during the operation in case of accidents and emergency situation within 6-m corridor due to;  the repair,  installation and maintenance activities, and  natural disasters such as floods, seismic activities, etc. Emergency operations sometimes require temporary access to the agricultural lands and homestead lands and gardens along the pipelines, which in turn cause unpredictable hazards and damages on the cultivated lands. This impact will come into existence minor as it will occur incidentally during the operation period. (SeeTable 3.2). Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. 3.2 Impacted Properties Impacted properties are defined in this report, particularly in this chapter, as any property that is owned by the government, a community, public and private institutions, physical persons or encroachers/squatters such as;  piece of land,  Access to land plots, and attached assets, facilities etc.  Main Buildings11  Complementary Structures12  Attachments13  infrastructure facilities14,  front walls and fences of houses or business places (attachments),  trees and any other natural or man made features that may subject to alteration, shifting or even demolition and reconstruction to allocate enough space for project during construction of the following strucutres:  pump stations,  water storage reservoirs,  sub-artesian wells,  drinking water and sewage water pipelines, or  any other thing that would be used in the construction, reconstruction and/or rehabilitation work of the project. 11 Main building and any adjacent structure to the main building such as animal shelter, depot, open and closed garages etc.. 12 shelter, any kind of depot, open and closed garrage located separately from the main building in the project affected plot. 13 Any kind of fences, walls, hedgerows, irrigation ditches/channels and wells, any kinds of access to the lands and plots, power and communication poles and related equipments are categorized as attachments of the affected land plots or main buildings. 14 Infrastructure /facilities within the affected area means land and/or assets such as aboveground and/or underground electrical/power and communication transmission lines, natural gas pipelines, existing water supply/irrigation pipelines, irrigation channels and ditches, existing sewage network pipes, water wells, and etc., that are owned by the government, municipalities, and/or public institutions. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Since all attachments to be damaged during construction will be repaired and reinstated / reinstalled adequately by the construction contractor during construction in accordance with the Construction Contract, no cash compensation has been calculated for these structures’ restoration. These types of affected properties are not categorized as affected properties in this report. However, the baseline data have been collected during census and inventory of project affected assets. This information is shared with the construction contractor and the client, and be used as baseline in the process of constrcution supervision and project performance monitoring and assessment. Although Azerbaijan legislation has more land use categories for the lands and immovable assets, for the purposes of this project impacted properties are divided into nine land use categories; 1. Agricutural lots for annual / seasonal and perennial crops owned by private persons and /or households, 2. Agricutural lots for annual / seasonal and perennial crops owned by (municipalities and government) 3. Residential plots for single family houses with homestead lands and multi-family houses / apartment blocks by private landholders, 4. Non-residential plots; commercial / industrial businesses by private landholders, 5. Non-residential plots; lands have commercial and industrials land uses, which are owned by municipalities and governmental and/or public institutions, 6. Grazing Lands; which are owned by municipalities and government, or leased to a private entity or physical person, 7. Useless lands; Municipal pr governmental useless lands for agriculture (barren lands), 8. Forests which are owned by government, 9. Irrigation structures owned by Government/Municipalities. Impacted properties are detailed under three phases of the project cycle which are: 1. Pre-construction Phase. 2. Construction Phase, and 3. Operation Period The details of affected public and private land parcels,number of affected persons per each category of impact are given in the following Table 3.4. Table 3.4: Details of Affected Public/Private Land Parcels and PAPs Property Im pacted Im pact Modality Num ber Num ber Restriction of Use for of of % of % of Right of Access % of Private parcels Land Use Category Affected Affected Affected Perm anent People Affected w ith short term Affecte during operation Affected Nos Area HHs Acquisition of Land (PAP) Area im pacts (during d Area period (20 Years) Area construction) w ith Servitude Ha Nos inh. Nos Area -ha % Nos Area-ha % Nos Area -ha % Private 1 Agricultural lots 61 5.90 61 305 3 1.48 6.05% 2 0.29 1.18% 56 4.13 16.87% 2 Residential & Homestead Plots 6 0.16 6 34 0 0.00 0.00% 0 0.00 0.00% 6 0.16 0.67% Sub-total 67 6.06 67 339 3 1.48 6.05% 2 0.29 1.18% 62 4.29 17.54% Public 1 Municipal Agricultural 5 0.23 0 0 0 0.00 0.00% 0 0.00 0.00% 5 0.23 0.96% 2 Municipal & Gov. Useless 23 5.79 0 0 3 0.79 3.23% 0 0.00 0.00% 20 5.00 20.43% 3 Municipal Residential 3 1.09 0 0 0 0.00 0.00% 0 0.00 0.00% 3 1.09 4.44% 4 Gov. - Irrigation 1 0.04 0 0 0 0.00 0.00% 0 0.00 0.00% 1 0.04 0.17% 5 Gov. & Municipal Grazing 14 11.26 0 0 2 2.65 10.83% 0 0.00 0.00% 12 8.61 35.18% Sub-total 46 18.41 0 0 5 3.44 14.05% 0 0.00 0.00% 41 14.97 61.17% Total Land Affected 113 24.48 67 339 8 4.92 20.10% 2 0.29 1.18% 103 19.27 78.71% Source: Feasibility Study, Contractor’s records, SRERS, and Consultant’s Surveys. 3.2.1 Impacted Properties on the Pre-construction Phase There is no property impacted by the activities during pre-construction phase as no impact occurred on the lands within the project corridor due to sampling and testing activities during the pre- construction phase (see Chapter 3.1.2.). Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project 3.2.2 Impacted Properties on the Construction Phase 3.2.2.1 Properties Losing Part of the Lands Permanently For Above Groung Facilities (AGFs) Approximately 4.90 hectares of land will be required for installation of above ground facilities and their access roads within the project. Its detail is given in the following Table. Table 3.5: Land Required for Above Ground Facilities Land Required for ROW Land Use Category of Project Elements Land Owner the Land ha Reservoir 3 0.70 Abdullayev Anvər Həshim oglu Private Agricultural Lot Reservoir 3 Access road 0.08 Tazakend Municipality Municipal Grazing Land Reservoir 3 Access road 0.07 Heydərova Ayna Şabala qızı Private Agricultural Land Reservoir 3 Access road 0.48 Tazakend Municipality Useless Land Reservoir 2 and its acces road 0.70 Ağabalayev Nəzir Hacıbaba oğlu Private Agricultural Land Buffer Reservoir 100 cum 0.18 Shabran City Municipality Useless Land Pump Station for Sewage Network 0.12 Shabran City Municipality Useless Land WWTP 2.57 Shabran City Municipality Municipal Grazing Land Total 4.92 Source: Feasibility Study, Contractor’s records, SRERS, and Consultant’s surveys. While eight (8) land parcels will be exposed to permanent land acquisition impact of the project, five (5) of which are owned by government and district municipalities, and three (3) belong to private land holders. Two grazing lands which are permanently be acquired for location of access road of reservoir 3 and WWTP are owned by Tazakend municipality and Shabran municipality respectively. The relevant municipalities report that there is no long and/or short-term lease agreement related to these lands for using as grazing lands. Consultant’s survey teams have also not detected any one who is using these lands for grazing pupose during the surveys and census. 3.2.2.2 Grazing and Pasture Lands Affected Permanently According to cadastral study conducted by SRERS, 14 municipal or government owned grazing and pasture land will be affected by the Project in Shabran case, 12 of which are used for the pipelines. Two (2) grazing and pasture lands will permanently be acquired for AGFs (see Table above). The relevant municipalities report that there is no long and/or short-term lease agreement related to these lands for using as grazing lands. Consultant’s survey teams have also not detected any one who is using these lands for grazing pupose during the surveys and census. Detail is given below. Table 3.6: Temporary Loss of Use of Grazing and Pasture Lands Category of Used Area by the Land Plot Land Owner Impact Occured the Land Project Nos Ha * Shabran Municipality Restriction of Use Grazing Land 12 8.61 Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Permanently be Tazekend Municipality Grazing Land 1 0.08 acquired Permanently be Shabran Municipality Grazing Land 1 2.57 acquired Total 14 11.26 * Ha: Hectare 3.2.2.3 Agricultural Lands Losing Part of Perennial Crops (trees - fruit or non-fruit) The project will result in loss of 121 fruit and non-fruit trees, vines and other perennial crops along the project corridor and the land required to permanently be acquired for AGFs during the construction period. Table 3.7: Inventory of all Trees (fruit and non-fruit) Cut within the Project Corridor Number of Owners15 Affected HHs ** Location of Trees Affected trees to be cut Municipal Area Private / Government / (Nos) (Nos) Municipality Tazekend 1 Tazekend 10 1 Private Municipality Shabran 2 Shabran 111 3 Private Municipality Total 121 4 *Source: Consultant’s survey team, 2014 - 2015. **HHs: Households. Table 3.8: Breakdown of project affected fruit trees according to sort No Sort No of trees cut No of Land Parcel 1 Quince 9 3 2 Apricot 4 1 3 Plum 8 3 4 Fig 4 2 5 Apple 13 3 6 Cherry 4 3 7 Persimmon 6 3 8 Grape 8 2 9 Hazelnut 5 1 10 P.granate 54 2 11 Medlar 2 1 12 Almond 3 1 13 Baytree 1 1 TOTAL 121 4 Source: Consultant’s survey team, 2014 - 2015. 3.2.2.4 Agricultural Lands Losing Part of the Seasonal Crops Losing part of the seasonal / annual crops will occur on the cultivated agricultural and homestead lands located along the project corridor, especially within the alignment of drinking water transmission main, interceptor sewer, collector sewers, feeders and distribution mains in the city during the construction phase. These properties are divided into two categories according to their landholder types, which are; 1. Owned by private landholders, and 2. Owned by Municipalities and Government. The following Table summarizes private agricultural lots that will be impacted by the project . 15 Table with PAPs’ names and number of fruit trees to be cut is available in the Annex 4. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.13 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Table 3.9: Private Agricultural lots that will be Impacted by the Project, Losing Part of the Seasonal Crops (20-m Project Corridor) Property Impacted Number of Number of Affected Affected Affected HHs * People (PAP) Land Use Category Total Area Nos Area Ha Ha Nos inh. Private Agricultural lots 61 98.46 5.90 61 305 Among them severily affected 4 6.73 1.71 4 20 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. The Table below also summarizes the municipal and governmental agricultural lands that will be Impacted by the Project. Table 3.10: Municipal & GovernmentalAgricultural Properties that will be Impacted by Project (20-m Project Corridor Property Impacted Number of Number of Affected People Land Use Category Nos Total Area Affected Area Affected HHs * (PAP) Ha Ha Nos inh. Agricultural lots owned by Municipalities and 5 _ 0.2338 0 0 Government Total 5 _ 0.2338 0 0 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. Since all impacted municipal and government owned agricultural lots are not cultivated, there is neither loss of seasonal crops nor income loss due to losing of seasonal crops from these lands. 3.2.2.5 Project Affected Residential Plots and Homestead Lands Only six residential plots and homestead lands that will be affected by the project activities are located only in the Shabran city along the Project corridor. Although pipelines in the city travel through some private residential parcels and homestead lands due to technical and topographic requirements, no physical damage occurs on the main and complementary structures. Damage that occurs on the homestead lands and gardens for soil recovery and on the seasonal crops for subsistence farming during construction will be compensated adequately within this project. As noted before damages that occur on the attachments of the affected lands will be compensated in kindly during the construction by the construction contractor, reinstating / reinstalling and adequately repairing the attachments affected. The table below summarizes the data on project affected residential plots and homestead lands located in the city. Table 3.11: Residential Plots & Homestead Landswhich will be Impacted by the Project in the City (within 6-m Project Corridor) Property Impacted Number of Number of Affected Affected People Land Use Category Nos Total Area Affected HHs * Area (PAP) Ha Ha Nos inh. Residential Plots and 6 2.56 0.16 6 34 Homestead Lands in the city Among them severily affected 3 0.3390 0.0583 3 17 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. 3.2.2.6 Public / Municipal Plots to be Impacted Municipal Grazing Lands Municipal grazing lands that will be impacted by the project are summarized in the following Table; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.14 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Table 3.12: Municipal Grazing Lands to be Impacted (within 20-m Project Corridor) Property Impacted Number of Affected Number of Affected People Land Use Category Nos Total Area Affected HHs * Area (PAP) Ha Ha Nos inh. Affected Municipal Grazing 14 _ 11.26 0 0 Lands Total 14 - 11.26 0 0 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. Municipal Residential Plots Municipal residential plots that will be impacted by the project are summarized in the following Table; Table 3.13: Impacted Municipal Residential Plots (within 6-m Project Corridor) Property Impacted Number of Affected Number of Affected People Land Use Category Nos Total Area Affected HHs * Area (PAP) Ha Ha Nos inh. Municipal Residential Plots 3 6.86 1.09 0 0 Total 3 6.86 1.09 0 0 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. Municipal Useless Lands Municipal useless lands that will be impacted by the project are summarized in the following Table; Table 3.14: Impacted Municipal Useless Lands (within 20-m and 6-m Project Corridor) Property Impacted Number of Affected Number of Affected People Land Use Category Nos Total Area Affected HHs * Area (PAP) Ha Ha Nos inh. Municipal Useless Lands for 23 _ 5.37 0 0 cultivation Total 23 - 5.37 0 0 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. Impacted Governmental Irrigation Property Governmental irrigation property that will be impacted by the project is shown in the following Table; Table 3.15: Governmental Irrigation Property that will be impacted (within 20-m and 6-m Project Corridor) Property Impacted Number of Affected Number of Affected People Land Use Category Nos Total Area Affected HHs * Area (PAP) Ha Ha Nos inh. Affected Governmental Irrigation 1 _ 0.0423 0 0 Property (irrigation Canal) Total 1 - 0.0423 0 0 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.15 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project 3.2.3 Properties to be Impacted on the Operation Period 3.2.3.1 Losing Income from the Loss of Perennial Crops due to Restriction of Use with Establishing Servitude on the Lands to be Affected To minimize land acquisition impact of the project, as far as possible, restriction of use with establishing servitude on the affected lands will create losing income from the loss of perennial crops, which is a long-term effect due to planting restriction within the 20-m and 6-m project corridor (see Chapter 3.2.1.3 Planting restriction and restriction of use will mainly be applied to the lands to be affected along the drinking water transmission main, feeder and distribution mains, collector and lateral mains, and interceptor sewer. Income loos will occur on all lands to be affected except river flood plains, river basins, municipal useless lands, and irrigation properties. See detail below. 107 private and municipal parcels (18.68 ha) will suffer from the income loss due to this impact with establishing servitude on the lands to be affected affected throughout the operation period of the project (20 years). Properties that will be impacted are summarized in the following Table; Table 3.16: Properties that will be impacted by the Restriction of Use and Planting Restriction Property Impacted Land Use Category Total Area Affected Area Nos Ha Ha 1 Private Lands 1.1 Private Agricultural Lands 56 93.23 4.13 1.2 Private Homestead Lands 6 2.55 0.16 Sub-total 62 95.78 4.29 2 Governmnetal & Municipal Lands 2.1 Municipal Grazing 5 _ 8.61 2.2 Municipal Useless 20 _ 5.00 2.3 Municipal Agricultural 3 _ 0.23 2.4 Govt. Irrigation 1 0.04 2.4 Municipal Residential 12 _ 1.09 Sub-total 41 _ 14.97 Total 103 _ 19.27 Source: Social survey for RAP, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. 3.2.3.2 Losing Income from the Loss of Annual / Seasonal Crops due to Routine Maintenance Activities Losing income from the loss of annual / seasonal crops will be experienced on all cultivated public/private agricultural lots and homestead lands along the project due to right of access for routine maintenance activities that will continue throughout the operation period within the 6-m Project corridor. 3.37 hectares of land will be affected due to right of access throughout the operation period (20 Years). Properties to be impacted are summarized in the following Table; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.16 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Table 3.17: Properties to be Impacted by the Loss of Annual/Seasonal/Perennial Crops due to Right of Access for routine maintenance activities throughout the Operation Period Property Impacted Land Use Category Total Area Affected Area Nos Ha Ha 1 Private Lands 1.1 Private Agricultural Lands 56 89.22 4.13 1.2 Private Homestead Lands 7 2.55 0.16 Sub-total 63 91.77 4.29 Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. 3.2.3.3. Privately owned/used/possessed Land Parcels that are severely affected by the Project More than 10% of the area of 7 privately owned/used/possessed land parcels are affected by pipeline construction, and this impact will continue throughout the operation period (20 years) of the project. The following Table gives the list of severely affected land parcels. Table 3.18: List of Land Parcels severely Affected by the Project Number of Number of Number of Total Area Affected Area Land use Category Parcel HHs PAPs Nos ha ha % Nos inh. Agricultural Parcels 4 6.745 2.0935 31% 4 20 Residential & Homestead Land 3 0.3389 0.0583 17% 3 15 Total 7 7.0839 2.1518 30% 7 35 Source: Surveys of Consultant’s census survey team, and interview results. 3.2.3.4. Project affected Vulnerable PAPs Total 23 households are determined as vulnerable during the surveys, 23 of which are female headed households. Of 23 female headed households 18 of them are widow. While 7 PAPs within4 vulnerable households have chronical disease, 15 vulnerable households are the pensioners. The detail is given in the following Table. Table 3.19: List of Vunerable PAPs PAP with Number of Total Total number of Total Number of Chronical Widows in Female Pensioner in Vulnerable Vulnerable HHs disease in Total Headed HHs in Total PAPs in Total Total Total 23 15 7 18 23 28 Source: Surveys of Consultant’s census survey team, and interview results. 3.3 Summary of Project Impacts  A part of three private agricultural land parcels will permanetly be acquired for Distribution reservoir 2 and 3 and their access roads. Of three lands two of them The parts of two lands to be acquired is more than 10% of the total lands (34% and 29% of total lands) affected, and third land’s part to be acquired is less than 10% of the total land (5%).  Total of 35 PAPs (7 households) will face severe impact as more than 10 % of their income generating land subjects to long-term temporary impact through servitude agreements.  23 PAHs are qualified as vulnerable according to the census and socio-economic survey results.  No acces to the commercial faclities, homestead and farmland will be closed and/or damaged by the pipeline construction both during construction and operation period.  Construction phase impacts (four years) are temporary in nature, and will adequately be compensated according to principles given in Chapter 5.5 (entitlement matrix). Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.17 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project  Total costs of mitigation measures calculated in accordance with principles set forth in the entitlement matrix (Chapter 5.5) will be paid to the PAPs in one time by AWM OJSC. The project impacts are summarized below. Table 3.20: Severity of Impacts Property Description of Impact Volume of Impact A. Pre-construction Phase No impact occured No impact occured. B. Construction Phase Properties Losing Part of the Approximately 4.90 hectares (8 parcels) of Although this impact will occur on the Lands Permanently For land is required for installation of above small portion (6.35%) of the impacted Above Groung Facilities ground facilities and their access roads within lands, impact is moderate in nature as it (AGFs) the project. Three (3) of them are owned by will cause income loss of the PAHs to be the private landholders, and are agricultural affected. lots currently being cultivated. However, this impact has high mitigation Five of them are owned by district potential. See Chapter 5.3.1. municipalites along the Project corridor. Private agricultural lands required to be permenently acquired consitute only 6.35% of total affected lands. Grazing and Pasture Lands Amount of loss of use of grazing and pasture This impact will occur minor in nature as Affected Temporarily , and lands temporarily during construction phase is indicated in Table 3.3 as there is no Losing of Use 11.26 hectares, which is owned a district municipal land lease agreement for short- municipalities. term and long-term grazing use, which in turn causes income loss. There is no short or long term lease agreement related to this land for using of Therefore, no income loss will be grazing land by vicinity villagers or calculated to be paid to the relevant district public/private enterprise municipality. Impact is a short term impact which will occur only construction period, and will be disappeared once the constrcution is completed. Agricultural Lands Losing The project will result in loss of 121 fruit and Impact magnitude is modarate in nature as Part of Perennial Crops non-fruit trees, and other perennial crops in it is not a temporary impact, and will last (trees - fruit or non-fruit) some parts of pipeline alignment. until end of Project life time. The landholders will suffer temporarily from This impact has high mitigation potential, loss of income during the construction period and will be mitigated through one time for pipeline constrcution, and also during cash compensation. See Chapter 5.3.1, operation period for 20 years (see below and Section C of this Table. operation period impacts). However, this impact appears permanent in nature cumulatively as it will begin at the very beginning of constrcution period and last until end of the projectlife time (20 years after construction completed). Agricultural Lands Losing The project will resultin losing part of the Impact magnitude is modarate in nature as Part of the Seasonal Crops seasonal crops on 61 private cultivated it is not a temporary impact, and will last agricultural lots, and 5 agricultural lots owned until end of Project life time. by government and municipalities within the 20-m project corridor This impact has high mitigation potential, and will be mitigated through one time The landholders will suffer temporarily from cash compensation. See Chapter 5.3.1. loss of income during the construction period for pipeline construction, and also during operation period for 20 years (see below operation period impacts). However, this impact appears permanent in nature cumulatively as it will begin at the very beginning of constrcution period and last until end of the projectlife time (20 years after Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.18 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project construction completed). Impacted Residential Plots The project affected 6 private residential Impact magnitude is modarate in nature as and Homestead Lands pacels and homestead lands, and 3 municipal it is not a temporary impact, and will last residential parcels within the 6-m Project until end of Project life time. corridor in the city. This impact has high mitigation potential, The landholders will suffer temporararily from and will be mitigated through one time loss of income during the construction period cash compensation. See Chapter 5.3.1 for pipeline construction, and also during operation period for 20 years (see below operation period impacts). However, this impact appears permanent in nature cumulatively as it will begin at the very beginning of constrcution period and last until end of the projectlife time (20 years after construction completed). Municipal Useless Lands 23 municipal ueseless land parcels (5.37 ha) Impact magnitude is minor in nature as it (non-arable, and not suitable will be affected by the pipeline constrcution. will not cause loss of income and damage for grazing) on assets and livelihood during Project Though this impact appears permanent in lifetime. nature for 20 years, it will not cause to loss of income/asset, and livelihood. Governmental Irrigation Only 1 irrigation property (irrigation canal – Impact magnitude is minor in nature as it Property affected 0.0423 ha) will be affected by the pipeline will not cause loss of income and damage constrcution. on assets and livelihood during Project lifetime. Though this impact appears permanent in nature for 20 years, it will not cause to loss of income/asset, and livelihood. C. Operation Period Losing Income from the Loss 4 agricultural and homestead lands will suffer Impact magnitude is moderate as it will of Perennial Crops due to from this impact due to planting restriction and cause loss of income during the Project Restriction of Use with restriction of use within the 6-m and 20-m life. Establishing Servitude on the project corridor, to protect the pipelines from Lands Affected the plant roots and normal agricultural This impact has high mitigation potential activities. as planting restriction doesn’t mean completely banning the agricultural activity This impact appears permanent in nature as it and/or growing perennial crops on the will last during Project life (20 years). restricted area, but it will re-arrange the agricultural activity on the restricted area during the Project life (20 years). Losing Income from the Loss 5 municipal agricultural lands and 69 private Impact magnitude is moderate as it will of Annual / Seasonal Crops agricultural and homestead lands will suffer cause loss of income during the Project due to Routine Maintenance from this impact due to planting restriction and life. Activities restriction of use within the 6-m and 20-m project corridor, to protect the pipelines from the plant roots and normal agricultural This impact has high mitigation potential activities. as planting restriction doesn’t mean completely banning the agricultural activity This impact appears permanent in nature as it and/or growing perennial crops on the will last during Project life (20 years). restricted area, but it will re-arrange the agricultural activity on the restricted area during the Project life (20 years). D. Operation in case of Accidents and Emergency Situation Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.19 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 3; Social Impacts of the Project Due to the repair, installation Unanticipated events affecting planned No Impact, because emergency operation and maitenance activities in activities may arise due to absence of response plans, and emergency manager case of Accidents and emergency operation response plans, and of the service provider (Rayon Sukanal Emergency Situation, and emergency manager of the service provider departments - AZERSU) will be provided natural disasters such as (Rayon Sukanal Dept.). by Rayon Sukanal departments. floods, seismic activities, etc. This impact will appear temporary and rare in nature as it will appear only in case of Accidents and Emergency Situation, and natural disasters such as floods, seismic activities, etc. Emergency operations sometimes require Minor - in nature as it will rarely occur temporary Access to the agricultural lands and during the Project life (20 Years). homestead lands and gardens along the pipelines, which in turn cause unpredictable hazards and damages on the cultivated agricultural lands. This impact will appear temporary and rare in nature as it will appear only in case of Accidents and Emergency Situation, and natural disasters such as floods, seismic activities, etc. The table with the Invdividual PAPs disaggergated according to the types of impact and provided mitigation costs is persented in Annex 5. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 3.20 | P a g e 4 STAKEHOLDERS CONSULTATION Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation Overview Stakeholders are defined as;  Individuals; registered / unregistered private agricultural, homestead land, residential and non- residential (commercial and industrial) plots owners / lease holders that are either affected by and/or can affect the Project.  Governmental and/or municipal agencies, departments, and institutions that are either affected by and /or can affect the project. The project has direct and indirect stakeholders at national, district, village, and project levels. In this chapter, an attempt is being made to analyze and assess the stakeholders’ views and perceptions gathered through field consultations, focus group discussions and meeting with key informants. 4.1 Direct and Indirect Stakeholders at Different Hierarchical Levels The most significant stakeholder is the Project Affected Person (PAP) who is negatively/positively affected by the Project. The most significant and direct beneficiary groups at the local level include all kinds of water supply and waste water system users. The groups that frequently benefit from the system are all people living in the Project service area, private, governmental, and municipal institutions / departments and enterprises in the Project area. The regional economies as well as household economies will get positively influenced due to improved water supply and waste water system. The most significant direct affectees are the persons losing land/assets/livelihood etc. At the national level the major direct stakeholder is Amelioration and Water Management Open Joint Stock Company (AWM OJSC), and AZERSU and its sub-departments. AZERSU is responsible for improving, maintaining, and managing the water supply and waste water systems of the country. District level departments attached to AZERSU and AWM OJSC, local administrative units such as Rayon Executive Power (REP), municipalities are middle level direct stakeholders. All complaints about the problems of dilapidated systems and environment along the Project corridor are frequently brought up by the communities with the officers attached at district level organizations. National Government Agencies and other organizations such as Cabinet Ministers, Ministry of Finance are also stakeholders. In the process of consultation special attention was paid to consult PAPs groups in the vilages located along the drinking water transmission main and interceptor sewer, PAPs in the city and and other vulnerable groups. The civil society and local NGOs is also included in the indirect group of stakeholders. The contractors, material suppliers can benefit from the construction work. The local communities can also benefit because of employment generated in their local areas in the construction site. 4.2 Stakeholder Covered in Social Survey The views of the following stakeholders were analyzed.  Direct stakeholders - All PAP families  Direct beneficiary groups - Water suuply and waste water system users  Indirect beneficiary groups - Civil society, NGOs, etc.  National Level Direct Stakeholders - AWM OJSC, AZERSU, Ministries and Policy decision makers Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation  Middle Level indirect stakeholders - REP, Municipalities, rayon level departments and officers  General Public, local communities 4.3 Overall Positive Impact Identified  Sufficient treated and disinfected drinking water will be supplied to the Project area.  Existing septic pits in gardens will be closed.  Treated domestic waste water will be dşsposed to the environment.  Laekages and seepages from the existing septic pits will be removed  Service area coverage is expanded.  Centralized Fire fighting system will be provided.  Maintenance requirements of the existing obsolote and insufficient facilities will not continue,  Demand side & Supply side efficiency will be provided.  Affordable user charges.  Effective collection of user charges.  Cost recovery will be possible. 4.4 Overall Negative Impact Identified During the construction period there will be several negative impacts. These include;  Disturbances to transportation system on the road network in the city for a short period till the construction is over.  Traffic congestion and other related issues.  Business activities will get disturbed during the construction period.  There will be inconveniences due to dust, noise, heavy vehicle movements etc.  Demolition of structures will create safety hazards for the owners of affected assets during construction period.  There may be safety issues at the construction sites.  Private lands may be acquired or restriction of use and planting restrictions are experienced during the operation period of the Project.  Considerable construction related disputes among workers and villagers can occur.  Dust and pollution during the construction period. 4.5 Views of Stakeholders Consultation method chosen allowed flexibility to meet the unattended members of communities to pre-announced meetings such as engaging walk-through and road-side consultation sessions with the communities along the drinking water transmission main and interceptor sewer. This flexible consultation method provided the people to participate in consultation activities and inform them, who live in solitude, but located along the Project corridor. Most of the respondents had knowledge about the project such as width of the pipeline ROW etc. However, it is found that the views expressed by them on project benefits were based on their personal views. The field data collectors of the study team consulted various stakeholders under different stakeholder categories in order to obtain their views on the road development project. The comments are presented in the following. Table 4.1: Stakeholders’ Statements Stakeholders Statements made by Stakeholders (Negative & Positive) Project Affected Persons (PAPs)  Expect reasonable compensation payments for all affected properties such as lands, structures, trees etc. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation  Compensation should be fair and subject to transparency.  Expect that local economy will improve and new job opportunities will be created.  Express their concerns about the process for land acquisition, and establishing the servitude on their affected land.  Do not want, generally, permanent land acquisition.  Affirmative for right of acces to the properties affected along the Project life cycle in return of a fair compensation.  During construction, disturbances occured from the activities of empowered construction machinaries on the agricultural lands that are temporarily used. Management of AWM OJSC,  Land acquisition will be a significant issue. Construction Management  The AWM OJSC will face lot of difficulties to settle social issues during Consultant (CMC), and Contrcator’s construction period especially in the city area. tech. Staff  The officers of the AWM OJSC and staff of CMC will be busy with the project implementation activities.  Contractor’s tech staff mostly complained tha some landowners are reluctant to be in contact with them. System Users and General Public  We welcome the project.  We will have good quality, disinfected drinking water.  I will close existing septic pit in my garden.  Fire fighting will be easier than the existing situation.  Service area is expanded.  During construction, disturbances will ocur from the construction activities on the streets in the city.  We will face and/or faced a lot of difficulties in our Daily life during construction.  Water supply and waste water system rehabilitation and construction will be beneficial, especially, woman, and of course our children.  This development is necessary. Doctors  We welcome the Project tha will provide sufficient treated and disinfected drinking water to the city.  The use of untreated drinking water would cause significant health problems in the area.  But during the construction period the project authorities need to take measures to minimize health hazards caused by dust, waste and debris. Farmers  We face a lot inconvenience for access to our farmlands during construction.  We will experience the loss of income from the loss of productivity during construction due to disturbances from the constructional activities.  We do not want permanent land acquisition fort he pipelines.  We agree to give right of acces to the our lots along the Project life cycle in return of a fair compensation.  Transportation of our farm products will be affected during construction period. Business Community along Project  The road sections near the junctions be inundated during the rainy Corridor seasons.  The streets is busy and used by heavy vehicles fort he construction.  This damages the road.  Traffic congestion prevails in the morning and evening.  Also vehicle users find difficulty in using the streets. 4.6 Remedial measures / Strategies to Mitigate the Negative Impacts Some negative impacts are unavoidable in any of the development interventions and it is therefore vital to understand the situation and take possible measures to minimize such negative impacts. Some measures could be adapted are presented below based on responses of various stakeholders during the Social Survey.  Implement some mechanism to reduce dust and noise due to heavy vehicle movement.  Necessity of proper implementation of traffic rules and regulations to prevent accidents. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation  Provisions of temporary spaces for acces to farmlands and other small shop outlets in the city to continue their livelihood without interruptions.  Make arrangements to keep smooth flow of traffic without unnecessary delays due to road closures and detours.  Attempt to undertake part of the construction work during night or on holidays in order to prevent/minimize disturbances to road users.  Adhering to safety measures to prevent any health hazards or safety hazards due to demolition of structures/buildings, and trenching fort he pipelines. 4.7 Consultation Strategies Stakeholders’ participation is very vital throughout the project cycle. The project should maintain all records of all stakeholders consultations through a responsible officer attached to the project. Pre - construction, Construction and Operation levels of the project are the most suitable stages of stakeholder participation. The project should identify type of stakeholders to be consulted and the suitable project stages when consultation would be necessary. Suitable project levels and stakeholders of consultation are furnished in following Table. Table 4.2: Stages of Stakeholders Participation Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Detail Land Defects Stakeholder Feasibility Construction Evaluation Design SA Level Acquisition Liability Level Level of Benefits Level Level Level Primary Affectees (all √ √ √ √ √ √ categories) System Users √ √ √ √ √ √ Owners of common √ √ √ √ √ properties Wage Earners √ √ √ √ Vulnerable groups √ √ √ √ √ Others (if any) √ √ √ √ √ √ √ Secondary AWM OJSC √ √ √ √ √ √ √ Rayon Sukanal √ √ √ √ √ √ √ Land officers √ √ √ Owners of Business √ √ √ √ √ establishments Property √ √ √ Developers CBOs / NGOs √ √ √ √ √ Leaders Others (if any) √ √ √ √ √ √ √ 4.8 Disclosure of Information All information should be disclosed to all the stakeholders concerned. The project should follow the World Bank Operational Policy 17.50 related to disclosure of information. All affectees should be consulted and inform regarding the nature of negative and positive impacts that would be created by the proposed project and the proposed mitigation to minimize negative impacts. All affectees should be invited for awareness programs with relevant stakeholders to inform them regarding nature of impact on their livelihood, assets, properties and grievance redress mechanism as well as compensation packages. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation The regional offices of the AWM OJSC will be used to disseminate all information related to the project. In addition the web sites of AWM OJSC and PIU will be used for wider dissemination of information. As explained by stakeholders of the project along with their expected benefits would help to enhance livelihoods of the people. Meanwhile it is quite important to address the social issues and concerns taking remedial measures in order to obtain maximum benefits from the project. 4.9 Stakeholder and Public Hearing Consultation Series of meetings that were held with the stakeholders both for scoping the resettlement / rehabilitation and land acquisition topics and to set forth the resettlement issues related to project options previously preferred. These meetings were held with AWM OJSC, Rayon Executive Power with attending of rayon departments of Ministry of Finance, MENR and relevant governmental departments, local NGOs, and Project Affected People (PAPs). Pre-public hearing consultations and statutory meetings were held between June 16 and October 30, 2013. These consultations gave the consultant’s social team the opportunity to inform the public about the planned public hearings and to gather information on key issues in potentially affected communities (Shabran city and districts, and municipal areas along the project corridor). Discussions and informative meetings on scoping, compensation, and mitigation measures with the PAPs and representatives of local municipalities continued throughout consultation period. For a list of these meetings, see following Table. This effort both confirmed and expanded on the list of potential issues to be considered within the assignment. Table 4.3: Details of meetings held in the consultation process Department / Institution/Intrested Number of Meeting Date parties/General Public Attending REP Office REP, First Deputy of REP, June 18, 2013 3 representatives from AWM OJSC, and Consultant’s social team Meeting Room at REP First Deputy of REP, Representatives July 01, 2013 14 from AWM OJSC, Consultant’s social team, rayon department of Ministry of Finance, regional representative from MENR (Shabran region), Representatives from local NGOs (reps. from WUAs in Shabran, and Rayon elders society), representative from Local press, PAPs along the pipelines and Shabran city, and representatives from the local municipalities. Meeting room at REP Representatives from AWM OJSC and July 23, 2013 8 Consultant’s social team, representatives from Contractor’s design team, and reps. from Municipalities (Shabran & Devechi). Conference Hall of REP First Deputy of REP, Representatives August 05, 2013 42 from AWM OJSC, Consultant’s social team, rayon department of Ministry of Finance, regional representative from MENR (Guba region), Representatives from local NGOs (reps. From Rayon elders society), representative from Local press, PAPs from Shabran city, and representatives from the local municipalities (Shabran & Devechi). Road-side consultation in Reps. From Consultant’s social team, August 30, 2013 3 the city with the PAPs AWM OJSC, and PAPs from the city. Road side Consultation Reps. From Consultant’s social team, September 06, 2013 4 with the community AWM OJSC, Talistan Municipality, and member in Distribution PAPs from Devech district. zone 3 of the city. Road side Consultation Reps. From Consultant’s social team, December 13, 2013 2 with PAPs along AWM OJSC, PAPs. interceptor sewer Road side Consultation Reps. From Consultant’s social team, March 26, 2014 3 with the PAPs along the and PAPs from Vidadi Abdullayev interceptor sewer district. Consultation with the Reps. From Consultant’s social team, July 09, 2014 4 Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation PAPs in the city and PAPs from Melaratorlar district. Consultation with the Reps. From Consultant’s social team, October 11, 2014 3 PAPs located in the city and PAPs from the city Consultation with the Reps. From Consultant’s social team, March 17, 2015 2 PAPs located in the city and PAP from the city Consultation with the Reps. From Consultant’s social team, August 25, 2015 3 PAPs located in the city and PAPs from the city Meeting with REP, Deputy REP, Rep. of Consultant in REP Meeting with REP, Deputy REP, Rep. of Consultant in REP Office, June 18, 2013 Office, June 18, 2013 General Public consultation meeting, July 01, 2013 General Public consultation meeting, July 01, 2013 Consultation method chosen allowed flexibility to meet the unattended members of communities to pre-announced meetings such as engaging walk-through and road-side consultation sessions with the communities along the drinking water transmission main and interceptor sewer. This flexible consultation method provided the people to participate in consultation activities and inform them, who live in solitude, but located along the Project corridor. Road-side consultation in the city with the PAPs, March, Walk-through Consultation with PAPs along interceptor 26, 2014 sewer, October, 2014 Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation Road side Consultation with the PAPs along Interceptor Walk-through consultation with the PAPs in the city Sewer, March, 2015 March, 2015 4.10 Raised Concerns from the Local Community during the Performance of this SIA Generally, people were found to be aware of the need to upgrade the WSS systems, and indicated their support for the AWM OJSC. The proposed construction of the new systems met with particular support since it will reduce the health problems of the public in their region. Generally, people tended to expresse concern about certain key issues in communities. Following a review and qualitative analysis of issues raised the SA Team came to the following conclusions;  Most problems to communities are typical, and  The size and number of problems does not depend on the size of the community. Priorities relating to general social impact of the project include, when compensation is paid for the damages occurred on their lands, loss of productivity on their cultivated lands, and land acquisition. Many people fear the government will delay payments for compensation, which in turn will cause struggle to provide their livelihood. Several people expressed concern about the process for land acquisition, and establishing the servitude on their affected land. These consultations demonstrated that AWM OJSC faced inflated public expectations in respect to amount and form of compensations for the damages occured, and land acquisition. The most commonly raised concern is the compensation should be fair, and subject to transparency. Almost all PAPs were consulted about the project impacts due to pipeline construction. Mainly, there were three options, one of which is “acquiring the land along the pipeline in 20m width” without establishing servitude and restriction of use, that AZERSU has been preferring this option, second option was “acquiring the land along the pipeline in 6m width” with establishing the servitude and restriction of use within the corridor of 7m after 3 m distance in either side of the pipeline, and third one was “establishing the servitude and restriction of use in 20m width along the pipelines, giving 6m right of acces, 3m on each side of the pipeline (3+3=6m). Due to offered provisions the majority of PAPs gave preference to the third option which will: Allow permanent access to he land affected by pipeline construction throughout the operation period; Provide the land which is impacted by establishing servitude for right of access throughout the operation period and restriction of use would remain on hand of the PAP since the servitude will be established only for 20 years, and servitude and restriction of use will be nulled within the beginning of 21th year, unless AZERSU will desire to renew it and propose a new agreement with acceptable compensation. Provide adequate cash compensation which is payable in one time at the beginning of the project. Provide the ownerships of the used private lands for pipeline construction will remain vested with the existing landowner. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 4; Stakeholders Consultation Provide the restriction of use and other parties’ rights for use of the land to be defined in the servitude will not be extended without written consent of the current owner after the end of operational life of the project, and the servitude and rights given to AZERSU will automatically deem expired at the end of the project operation period (20 years). Because of the above reasons, all PAPs consulted preferred the third option which foresees to give right of access to AZERSU for 20 years within 6m pipeline corridor and restriction of use within 20m pipeline corridor out of the city. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 4.8 | P a g e 5 MITIGATION MEASURES Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures Overview The objective of this chapter is to discuss the mitigation measures to mitigate negative impacts. The principles and guidelines proposed are primarily aimed at avoiding or minimizing, to a possible extent, the hardships and impoverishment that may result from project’s intervention and mitigation of any adverse impact thereof at the household/community level. All decisions regarding design of construction work will be made, to the extent feasible, to facilitate the attainment of this objective. Principles of Resettlement policies, principles to be followed by AWM OJSC, mitigation principles, mitigation of negative impacts and method and procedures adopted to mitigate negative impacts are discussed below. 5.1 Project Resettlement Principles and Scope of Mitigation The basic resettlement principles of the resettlement for this project are as follows;  The project affected persons (PAPs) are defined as those who stand to lose land, houses, structures, trees, crops, businesses, income and other assets, and suffer restrictions due to servitude as a consequence of improvements to/or improvement of this project.  The cut off date for those who have legal title is the date of notification under the Law of Azerbaijan on acquisition of land for State needs dated April, 20, 2010 (Article 10.2 and 11). The date of census is the cut-off date (August 10, 2013) for those who do not have legal standing for eligibility of assistance under the project. People moving into the COI after this cut-off date will not be entitled to support. It is recognized that there will be a margin of error in the census, and any person who was not enumerated but can show documentation or evidence that he/she is rightfully an entitled person will also be included. The PIU of AWM OJSC and its rayon department is responsible for such verification. The cut off date for non- legal title-holders is the date of the start of the census survey which is August 10, 2013 (the said above Law, Article 11).  All PAPs are equally eligible for cash compensation and rehabilitation assistance, irrespective of their land ownership status, to ensure that those affected by the Project shall be at least as well off, if not better off, than they would have been without the Project. Absence of a title will not be a bar to receiving compensation and livelihood assistance.  All losses will be compensated at replacement cost, at market prices without deducting depreciation and salvage value for all losses (such as lands, crops, trees, structures, businesses, etc.). Alternatively, structures/assets etc. will be rebuilt by the project at replacement cost.  Encroachers are defined as people owning lands and occupying legal or customarily recognized properties on public space in the RoW. All encroachers will be entitled as PAPs for compensation recognizing un-registered private users, see Chapter 5.5 – Entitlement Matrix.  Squatters are defined as those that occupy space that is legally or customarily someone else’s. Squatters will also be entitled as PAPs for compensation recognizing un-registered private users, see Chapter 5.5 – Entitlement Matrix.  Compensation should be paid in full in one time to affected people before any land acquisition and construction on the affected land start.  PAPs will be systematically informed and consulted about the project, and the Land Acquisition Plan will be made available in both English and local languages to the affected persons and communities.  The consultative process shall include not only those affected, but also the neighboring communities, representatives of AWM OJSC, AZERSU, and other government agencies of Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures the areas where the project is located, community leaders, local government, and community- based organizations (CBOs).  Vulnerable groups1 (households below the recognized poverty line; disabled, elderly persons widows, and female headed households) should be identified and included in the consultation process.  PAPs facing severe impact, i.e. owners and legitimate possessors of land parcels where more than 10 % of income generating land will subject to permanent land acquisition, temporary long-term and/or short-term land use limitations under established easement (servitude Agreement).  The Project will purchase, acquire lands and/or obtain right of acces to the 20-m pipeline corridor for construction activities throughout the construction period (approx. 4 years).  The Project will purchase, acquire lands and/or obtain right of acces to the 6-m pipeline corridor for routine maintenance and repair activities throughout the operation period (20 years).  Payment for purchasing of lands or compensation for acquired lands will be made at replacement value at current market prices plus 20% in addition to market prices (10% for landholdership for more than 10 years and 10 % as willingness incentive to sell for state needs)2.  Contractors will also follow the same principles (i.e. payment of compensation for all damages incurred etc.), and reinstate the damaged perimeter walls, hedgerows, entrances, sidewalks, concrete and/or asphalt pavements, walkways, and footpaths, and etc.  The project will provide alternate access or detours wherever it is blocked during construction.  The principles in this LA & MVP will also apply to all Project Affected Persons who may be affected through impacts on private/community land or other assets due to minor realignments3 of the pipelines and design changes in the further stages of the project.  Where community owned facilities or restricting access to common property resources etc., result from project related interventions, the project will rebuild such facilities and provide alternative access.  The Project executing agency (AWM OJSC) will bear the costs of implementing this Land Acquisition Plan. 5.2 Impact Mitigation Modalities The following types of losses which are expected to result from Project intervention will be mitigated. In place of affected access of public venues, minor road access will be rebuilt immediately and temporary access will be provided during construction period at the relevant locations by the contractor. Affected privately owned trees will be compensated as mentioned in the entitlement matrix. Lands will be purchased or acquired and payment and compensations will be made at replacement value at the current market prices without any delay. 1 Full definition of Vulnerable Groups is provided in the Definitions. 2 According to the law of the Republic of Azerbaijan on Land Acquisition for State Needs 3 Referring to the principles given in this plan will be applied to all PAPs to be determined after completion of design works due to minor re-alingments of the pipeline or any changes on the designs in future phase of the project. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures The project will identify and implement policies to mitigate any adverse impacts that may appear during implementation of the project. 5.3 Mitigation of Negative Impacts Names of the project affected persons/ properties, and assets including sizes for lands are given in Chapter 7 and Annex 4. Impact magnitudes are also given in Chapter 3.3 of this report. The final cost calculation for social impact mitigation is provided in Chapter 7 in this report. It is based on the methodology provided and discussed in this chapter. The Consultant has got assistance from a private land and crops valuation company as independent valuator. As no impacts occured on the pre-construction phase, the aspects to be mitigated include following; 1. Construction Phase impacts to be mitigated;  Permanent Losing only part of the land,  Losing part of perennial crops (trees - fruit or non-fruit),  Losing part of the seasonal crops,  Income loss from perennial crops by cutting the fruit and non-fruit trees in the homestead lands, gardens, and agricultural lands,  Income loss from losing seasonal crops on agricultural lands and homestead lands. 2. Operation Phase impacts to be mitigated;  Losing income from the loss of perennial crops due to Restriction of Use with establishing servitude on the lands affected,  Losing income from the loss of seasonal crops due to routine and emergency maintenance and repair activities. 5.3.1 For Construction Phase Impacts Losing Part of the Land; The permanent land acquisition is adopted only for siting of above ground facilities (AGFs). Measures taken to minimize the permanent land acquisition;  Land required for siting of above ground facilities (AGFs) and their access roads is preferred to select municipal lands rather than privately owned land.  Use of shortest possible routes to reach the site of AGF (identified in consultation with affected land owners/users) to minimize impacts on productive lands.  Monitoring by AWM OJSC is provided by an assigned Consultant was in place during the Construction Phase, to check on adequacy of compensation measures with consideration of additional intervention in cases of hardship or difficulty attributable to the project. To permanently acquire required lands the AWM OJSC will follow a transparent process as follows;  The AWM OJSC determines that land is appropriate for the intended purpose.  It will be at the replacement value at current market prices of the area.  The seller will have the option to refuse it, but in this case, the AWM OJSC shall conduct additional research developing alternative designs to find another alternative which does not involve acquisition of this specific land parcel. After all these invetigative efforts, if there will be no alternative other than acquisition of this land due to technical requirements, AWM OJSC will implement Land Acquisition Process to acquire the required land under the normal procedure by legal avenue in accordance with the the Law of Azerbaijan on acquisition of land for State needs dated April, 20, 2010 and other relevant Laws.  If any acquisition is carried out it will follow normal acquisition procedure without following any emergency procedure. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures  It does not negatively affect the livelihood of any vulnerable group, and if so, that community developed mitigation measures should be acceptable to the affectee. Accordingly; Compensation for permanent land acquisition is based on project offered rates which are free market rates. The land valuation is conducted by the Consultant’s valuation team (an independent company) after completion of cadastral studies by the State Real Estate Registry Service (SRERS), in accordance with the methods described in the Law dated April 20, 2010 on Acquisition of the Lands for State needs. Where leases are extant over state / municipal land to be acquired, users is entitled to the compensation. The state is responsible for compensation for the affected lands owned by the district municipalities along the Project corridor. Losing Part of Perennial Crops (trees – fruit or non-fruit) & Income Loss from Losing them by Cutting Trees; Privately owned non-fruit (timber) trees will be valued at market timber price per tree while a fruit tree is valued according to the annual income of fruits and timber price at market. The following factors will be considered in the valuation process.  Current market value of timber.  Demand and current price of fruits.  The life time of the trees.  The present age of the trees and potential for productivity. The total cost for the trees cut is provided in the Chapter 7 of this report. Losing Part of Seasonal Crops & Income Loss from Losing them on Agricultural and Homestead Lands; According to the results of the consultant’s crop survey, total of 5.01 hectares of cultivated land with annual / seasonal and perennial crops is affected by the Project during the construction. As crops are typically grown on a rotational basis, the inventory included gathering information about land owners’ and users’ current crops, and planned crops over the forthcoming three years. The following impacts of the Project on annual crops are taken into account when measures are adopted;  Loss of in-ground crops at the time the construction contractor takes possession of the land.  Loss of crops for subsistence use where they are grown in the construction corridor.  Possible loss of access to some remaining parts of agricultural land where land is bisected or fragmented by the construction corridor, however, no severance impact occured on the agricultural lands.  Loss of income for the construction period (assuming the construction period is four years),  Some possible short-term (2-3 years) reduction in crop yields and income after construction is completed from the land affected by construction while soil structure and condition recover from construction disturbance, The following mitigation measures is extended to affected people to offset impacts from loss of annual crops; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures  Cash compensation to offset the loss of income from annual crops for the four-year construction period, and taking into account planned crop rotation, however, actual construction period is taken into account for determining the compensation amounts,  Cash compensation to offset any reduction in yield that may be caused by project impacts on soils to be based on 30 percent of the annual crop yields defined, to cover the three year period following construction completion.  Stripping and re-use of topsoil following construction completion. This measure is taken by the Construction contractor at his own expense.  Contractual obligations for the contractor to fully reinstate project soils to their pre- project productivity levels. This measure is taken by the Construction contractor at his own expense.  Monitoring by AWM OJSC’s Environmental and Social Department to check on adequacy of compensation measures with consideration of appropriate additional intervention in cases of hardship or difficulty attributable to the Project, The total cost for losing part of annual/seasonal is provided in the Chapter 7 of this report. 5.3.2 Operation Period Phase Impacts To avoid the permanent land acquisition of the lands required for the pipelines both in and out of the city, restiriction of use and right of use (way leave) principles with establishing servitude on the affected lands is considered throughout the operation period of the project (20 years). For the detail of these principles, see Chapter 3.1.2.3 of this report. Restrictions of Use will be applied to a 20-metre corridor (referred to as pipeline protection zone) in accordance with the SNIP II.04.02 (and 0.3) – 84 and 85. Restrictions will apply throughout the operational life of the project. Restrictions of use will be applied through agreements to be signed with each project affected land owner. However, the following negative impacts will occur during the operation period on the public & private lands affected along the project corridor due to the routine maintenance activities planned along the Project corridor throughout the operation period (20 Years).  Losing income from the loss of perennial crops due to Restriction of Use with establishing servitude on the lands affected;  Losing income from the loss of annual / seasonal crops due to routine maintenance activities. Nature of Impact; Restrictions of use will be applied in a 20-metre ‘’protection zone’’ that extends along the drinking water transmission main and interceptor sewer (see Chapter 3.1.2.3 of this report). A 6-metre ‘’protection zone’’ will apply along the drinking water and collector sewers which cross private homestaed lands and gardens in the city. The restrictions will apply for the operational life of both drinking water and sewage pipelines, which are twenty years with the option for extension. The restriction of use will affect present land-use practices along the pipelines where this practice will be applied as the households will not be allowed to re-establish trees cut and building any new structure along the 20-metre protection zone out of the city, and 6-metre protection zone inside the city with other types of restrictions. Ownership of temporarily used private lands will remain vested with the existing land owners. Rights to use the land for drinking water mains, collector and interceptor sewer construction will be secured by the AWM OJSC by means of establishing servitude with each affected owner on each affected lands for Restriction of Use. Upon completion of servitude process, priority rights for use of the land will remain at the previous owner, subject to the restrictions described in Chapter 3.1.2.3. Other side in servitude (Azersu and/or Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures Rayon Sukanal Department) will have only rights for use of the land for repair, periodic maintenance throughout the normal operation and operation in case of accidents and emergency. However, the restriction of use and other party’s rights for use of the land to be defined in the servitude will not be extended without written consent of the current owner after the end of operational life of the Project, otherwise the servitude and the rights given to Azersu and/or Rayon Sukanal department with the servitude will automatically deem expired at the end of the project’s operational period. Summary Impacts which cause income losses;  Restriction on building any structures in the protection zone.  Alienation of an 6-metre strip over the pipeline for use of tree crops,  Restriction on deep ploughing,  Effective restriction on major irrigation extensions (deeper than 300 mm),  Damage to crops in the event of emergency access along the pipeline. Measures that are taken for mitigating the impacts during Normal & Emergency Operation period are as follows;  Routine maintenance activities (periodic) should be planned in the manner which minimizes the loss of perennial and seasonal crops on the cultivated agricultural lands.  The plans which arrange the periodic maintenance activities should include the appropriately designed access points to the 6-m pipeline corridor, to avoid the random access to the corridor for maintenance, which in turn causes to unrestraint damages and crop losses.  The activities for periodic maintenance should include sensitive measures, to avoid the permanent and temporary loss and damages on the cultural properties along and nearby the pipelines and above ground facilities.  Valuation & Compensation for establishing the servitude on the affected agricultural lands and homestead lands are based on the rules and regulations provisioned in the Law of Azerbaijan on acquisition of land for state needs dated April, 20, 2010, and WB Involuntary Resettlement Policies OP and BP 4.12. . Cash Compensation covers;  Loss of each tree (fruit and non-fruit) based on cost of sapling; inputs & labour to re-establish tree to maturity plus value of lost production for the total re- establishment period – normally three years.  Compensation for annual crops including hayfields equivalent to 3 season’s production less input costs (irrespective of whether or not crop is in ground at time of establishing servitude) because the performance of the soil damaged during construction can reach to the same level before construction after three years soil recovery applications.  Compensation for yield reduction for 2-3 year period of soil recovery following construction completion as one-off lump sum cash payment equivalent to 30 percent of a season’s crop production for three years because the soil damaged during constrcution will need to recover at least three years to reach to the condition before construction. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures 5.4 Impacts on Vulnerables Groups To achieve the objectives of World Bank policy, the LA & MVP pays particular attention to the needs of vulnerable groups amongst PAPs, especially those recipients of targeted assistance, people below poverty line, landless, single elderly, females leading the households, people with disability and IDPs. Particular attention was paid to households headed by women and other vulnerable groups to ensure that the project provides appropriate assistance to help them improving their living standards. The following acitivities have been undertaken to identify project affected vulnerable groups: 1. Vulnerable people were carefully identified and recorded during Census; 2. All vulnerable PAPs (landowners and land users) have been qualified as eligible to relevant compensation entitlements. 3. Addittional onetime allowance beyond the regular mitigation costs as defined in chapter 7. 4. Addittional technical assistance will be provided to ensure appropriate delivery of compensation 5. Regular monitoring scheme will be exercised to avoid any unforeseen cases of hardship arising from the land acquisition, compensation and livelihood restoration processes. Specific measures for each of the vulnerable groups are summarised in the following Table. Table 5.1: Assistance to Vunerable Groups Vulnerable Group Areas of Risk Project Mitigation Measures IDPs 1 Often reliant on informal agreements for As no IDP family affected by the Project directly and shelter/ land use At risk of being indirectly is detected along the Project corridor, no displaced where there is a prospect of specific measures is recorded. compensation Often very poor Limited social safety net Informal Land Users No legal entitlement to compensation Project assistance to achieve registration or at least, to under Azeri law get written agreements with land owners Project will offer same compensation entitlements as to registered users, except providing compensation for land, but all non-land assets (movable/immovable) will be compensated. However, no informal land users have been detected during census in Shabran case. Elderly couples or Reduced mobility may limit access to Elderly specifically identified in census. individuals information, compensation collection, lodgement of complaint Where necessary, the project will support mobile teams to manage signing of agreements and May be vulnerable to pressure from hand-t o-hand compensation payment at place of family / relatives to divert income to residence. family needs at expense of subsistence Project will encourage use of bank accounts. Physically vulnerable to theft or intimidation Monitoring for effectiveness of the measures with consideration of appropriate additional intervention where warranted Women- headed Potential difficulties in securing As appropriate, the Project will provide households abandoned compensation (where husband is assistance to help women: by husbands, nominated as household head on land  through their husbands, get Power of ownership papers) Attorney so that they can sign agreements now living abroad and receive compensation in their husband’s absence; or  in case of missing husbands, assist women to apply to the District Court for appointment of a trustee.  Monitoring teams will be given gender awareness training and will include women Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures members.  Capable family members of femela headed HHs will be given priority in employment in project-related jobs. Vulnerable people Potential difficulties for claiming their Vulnerable people will be given an allowance rights, and not meeting the required corresponding to 6 months of minimum subsistence licences. income and priority in employment in project-related jobs. The allowance is to be calculated based on a 5 people family and the monthly-updated benchmarks indicated by the State Statistical Committee of Azerbaijan at time of LA & MVP approval. Severely affected PAPs PAPs losing more than 10 % of income Severely affected PAPs will be provided additional one generating land time allowance in the amount of mitigation cost equal to one year income from the affected area. 1 IDPs: Internal Displaced Persons. Important Notice: There were 18 land parcels that are indentified as “unclaimed” in cadstral study of SRERS. Survey team found 14 of them for interviewing and locate them as possessors, obtained their licenses. However, survey team was not able to locate and interview with 4 of them, due to the reason that these persons were absent during the surveys (census, socio-economic survey and inventory of project affected assets). These land parcels are enumerated, relevant cash compensation is included in the LA& MVP implementation budget. Accoridng to the State Cadastre these land parcels are registered as "unclaimed", meaning that their legitimate possessors have not yet applied for registration of private ownership rights. During LA& MVP implementation period PIU will put more efforts to reach out and locate absent PAPs. Most likely among them some will be vulnerable persons, eligible to additional one time allowance as determined in this document. AWM OJSC, as authorized buyer for and on behalf of Azerbaijan Government, is obliged that all vulnerable PAPs including those that may be in addition identified during LA & MVP implementation period is provided with appropriate cash compensation and required technical assistance as presented in the document. 5.5 Summary of Entitlements4 The following entitlement matrix is arranged specifically for this Project, outlining compensation entitlements to type of loss. Four categories has been identified in accordance with the following cases;  Entitlements for Permanent Acquisition of Land for Above Ground Facilities and Permanent Access Roads  Entitlements for Temporary Use of Land in 20-metre Pipeline Corridor, and Construction Contractor’s Camp Site and Warehouse during Construction Period  Entitlements for Rights of Access – 20-m and 6-m strip over the Pipelines & Restriction of Use over 20 m corridor during 20 years 4 The Entitlement Matrix is prepared and develpod based on the principles of the project RPF dated Feb. 29, 2008. However, certain modifications have been made in accordance with requirements of WB OP Policy 4.12 Involuntary Resettlement, and New Azerbaijani Law on acquisition of land for state needs dated April 20, 2010, and the wishes of the PAPs as the Project RPF focuses only on land acquisition alternative, not restriction of use for turning the land back to the original landowner after expiring the servitude, and to provide the PAPs to continue to use the land for their subsistings. Otherwise, All PAPs who suffer from restiriction of use during project life time (20 years), would loose their assets by the effect of permanent land acquisition. In additon, each PAP who suffers from Restriction of use, is provided with a cash compensation of at least 20% (for 20m pipeline corridor) and 80% (for 6m pipeline corridor) of land replacement value together with cash compensation of other crop damages that occur during construction, and for soil recovery and sapling, if there are any perennial crop. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures  Additional Compensation Entitlements for Vulnerable and Severely Impacted PAHs who suffer from the Restriction of Use and Right of Access over 20-m and 6-m corridor  Entitlements for project affected people (PAPs) are summarized in the following Tables. Table 5.2: Entitlements for Permanent Acquisition of Land for Above Ground Facilities and Permanent Access Roads Compensation Entitlements Type of Loss Un-registered Private Satate/Municipal Private Land Owners Registered User Users Lands 5 Eligibility -Land owner with -State agricultural -Private users with verbal -State Land registered land ownership enterprise with registered or informal agreement certificate lease over state or with land owner -State Funds forest land municipal land -Land owner with -Private users of state -State Funds agricultural passport (or registerable) -Private user or entity or municipal land without land ownership documentation. with registered lease over lease or formal agreement state or municipal land -Municipal land -Land owner with right to -Private users of ownership from long -Private user or entity with private land without possession. registered lease over agreement of landowner private land (subject to reasonable -Person with notarized verification) Power of Attorney to act -Private user or entity with on behalf of absentee/ third party rights incapacitated owner -Trustee appointed by Civil Court to act for a missing land owner Loss of Land -Cash compensation -Cash compensation -Cash compensation based on “project offered based on “project offered based on “project offered -State will compensate rates”; or, rates”; or, rates”; or, municipalities for los of land. -where impact is -where impact is -where impact is significant, choice of significant, choice of significant, choice of replacement land parcel replacement land parcel replacement land parcel (if available) or (if available) or (if available) or -cash compensation for -cash compensation for -cash compensation for total land parcel. total land parcel. total land parcel. Loss of Immovable -Cash compensation at Where asset may have Where asset may have -Cash compensation at Assets full replacement value; or been installed or erected been installed or erected full replacement value; or by the user, triangular by the user, triangular -Replacement of the asset negotiation (LAT, user negotiation (LAT, user -Replacement of the asset equivalent to that lost to & land owner) to agree & land owner) to agree equivalent to that lost to the project (eg. artesian compensation due to the compensation due to the the project (eg. artesian wells) – to be agreed on a user, based on full user, based on full wells) – to be agreed on a case-by-case basis. replacement value. replacement value. case-by-case basis. Loss of Trees and -Cash compensation to -Cash compensation to Cash compensation to -Cash compensation to Perennial Crops cover loss of each cover loss of each cover loss of each cover loss of each tree/vine/shrub based on tree/vine/shrub based on tree/vine/shrub based on tree/vine/shrub based on cost of sapling; inputs & cost of sapling; inputs & cost of sapling; inputs & cost of sapling; inputs & labor to re-establish labor to re-establish labor to re-establish labor to re-establish tree/vine/shrub to maturity tree/vine/shrub to maturity tree/vine/shrub to maturity tree/vine/shrub to maturity plus value of lost plus value of lost plus value of lost plus value of lost production for the total production for the total re- production for the total re- production for the total re- re-establishment period. establishment period. establishment period. establishment period. Loss of annual crops, Cash compensation for Cash compensation for Triangular negotiation including Hayfields annual crops equivalent to annual crops equivalent to (LAT, User & land owner) Cash compensation to the one season’s production one season’s production to agree equitable basis municipality when no less input costs less input costs for distributing other user identified after (irrespective of whether or (irrespective of whether or compensation based on reasonable time has not crop is in ground at not crop is in ground at historical arrangements– elapsed. time of acquisition). time of acquisition). overall compensation Where crop or crop basis as for private income is shared with owners. owner, triangular negotiation (LAT, user & land owner) to agree 5 Entitlements for State/Municipal owned land is incorporated in the document in accordance to the procurement procedures defined in Azerbaijani Legislation. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures equitable basis for distributing compensation based on historical arrangements between owner & user – overall compensation basis as for private owners. Additional Cash compensation Cash compensation Cash compensation Compensation for equivalent to six months equivalent to six months equivalent to six months Vulnerable PAHs of minimum subsitence of minimum subsitence of minimum subsitence income which is official income which is official income which is official poverty line in poverty line in poverty line in Azerbaijan is US$3.31 Azerbaijan is US$3.31 Azerbaijan is US$3.31 No entitlement a day or US$ 100/- per a day or US$ 100/- per a day or US$ 100/- per month in December, month in December, month in December 2015, per affected 2015, per affected 2015, per affected vulnerable family vulnerable family vulnerable family Additional Cash compensation Cash compensation Cash compensation compensation for equivalent to additional equivalent to additional equivalent to additional PAHs severely one time allowance in one time allowance in one time allowance in Affected the amount of the amount of the amount of No entitlement mitigation cost equal to mitigation cost equal to mitigation cost equal to one year income from one year income from one year income from the affected area. the affected area. the affected area. Loss of Pasture Cash compensation Cash compensation Cash compensation equivalent to one equivalent to one equivalent to one Cash compensation to the season’s pasture season’s pasture season’s pasture municipality when no production, based on production, based on production, based on other user identified after value of grass value of grass value of grass reasonable time has consumption/sheep/year x consumption/sheep/year x consumption/sheep/year x elapsed. stocking rate (sheep/ha) stocking rate (sheep/ha) stocking rate (sheep/ha) Minimum Total Compensation Minimum compensation payment will be 500 US$ Notarization & Cost covered by the Cost covered by the Cost covered by the NA Registration Costs Project Project Project Abbreviation: LAT: Land Acquisition Team of AWM OJSC. Table 5.3: Entitlements for Temporary Use of Land in 20-metre Pipeline Corridor, and Construction Contractor’s Camp Site and Warehouse during Construction Period Compensation Entitlements Type of Loss Un-registered Private Satate/Municipal Private Land Owners Registered User Users Lands Eligibility -Land owner with -State agricultural -Private users with verbal -State Land registered land ownership enterprise with registered or informal agreement certificate lease over state or with land owner -State Funds forest land municipal land -Land owner with -Private users of state -State Funds agricultural passport (or registerable) -Private user or entity or municipal land without land ownership documentation. with registered lease over lease or formal agreement state or municipal land -Municipal land -Land owner with right to -Private users of ownership from long -Private user or entity with private land without possession. registered lease over agreement of landowner private land (subject to reasonable -Person with notarized verification) Power of Attorney to act -Private user or entity with on behalf of absentee/ third party rights agreed incapacitated owner with local executive authority -Trustee appointed by Civil Court to act for a missing land owner Loss of Land No permanent Acquisition of Land Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures Loss of Immovable -Cash compensation at Where asset may have Where asset may have -Cash compensation at Assets full replacement value; or been installed or erected been installed or erected full replacement value; or by the user, triangular by the user, triangular -Replacement of the asset negotiation (LAT, user negotiation (LAT, user -Replacement of the asset equivalent to that lost to & land owner) to agree & land owner) to agree equivalent to that lost to the project compensation due to the compensation due to the the project user, based on full user, based on full replacement value. replacement value. Loss of Trees and -Cash compensation to -Cash compensation to No known Cases Cash compensation to the Perennial Crops cover loss of each cover loss of each municipality when no tree/vine/shrub based on tree/vine/shrub based on other user identified after cost of sapling; inputs & cost of sapling; inputs & reasonable time has labor to re-establish labor to re-establish elapsed. tree/vine/shrub to maturity tree/vine/shrub to maturity plus value of lost plus value of lost production for the total production for the total re- re-establishment period. establishment period. Loss of annual crops, Cash compensation for Cash compensation for Triangular negotiation including Hayfields annual crops equivalent to annual crops equivalent to (LAT, User & land Cash compensation to the 3 season’s production 3 season’s production owner) to agree equitable municipality when no less input costs less input costs basis for distributing other user identified after (irrespective of whether or (irrespective of whether or compensation based on reasonable time has not crop is in ground at not crop is in ground at historical arrangements, elapsed. the time servitude to be time of servitude to be based on 3 season’s established). established). production. Where crop/crop incomes are otherwise shared with owner, triangular negotiation (LAT, User & land owner) to agree equitable basis for distributing compensation based on historical arrangements between owner & user – based on 3 season’s production Yield reduction for 2- One-off lump sum cash -One-off lump sum cash Triangular negotiation One-off cash payment to 3 year period of soil payment equivalent to 30 payment equivalent to 30 (LAT, User & land owner) the municipality where no recovery following percent of a season’s percent of a season’s to agree equitable basis other eligible user crop production for three crop production for three for distributing identified, after construction years years. compensation based on reasonable period has completion. historical arrangements elapsed. -Where crop/crop – compensation incomes are otherwise calculated as for private shared with owner, land owners triangular negotiation (LAT, User & land owner) to agree equitable basis for distributing compensation based on historical arrangements between owner & user. Loss of Pasture Cash compensation Cash compensation Cash compensation equivalent to 3 season’s equivalent to 3 season’s equivalent to 3 season’s Cash compensation to the pasture production, based pasture production, based pasture production, based municipality when no on value of grass on value of grass on value of grass other user identified after consumption/sheep/year x consumption/sheep/year x consumption/sheep/year x reasonable time has stocking rate (sheep/ha) stocking rate (sheep/ha) stocking rate (sheep/ha) elapsed. Minimum Total Compensation Minimum compensation payment will be 500 US$ Notarization & Registration Costs for Cost covered by the Cost covered by the Cost covered by the NA establishing Servitude Project Project Project on affected lands Abbreviation: LAT: Land Acquisition Team of AWM OJSC. Table 5.4: Entitlements for Rights of Access – 20-m and 6-m strip over the Pipelines & Restriction of Use over 20 m corridor for 20 Years Compensation Entitlements Type of Loss Un-registered Private Satate/Municipal Private Land Owners Registered User Users Lands Eligibility -Land owner with -State agricultural -Private users with verbal -State Land registered land ownership enterprise with registered or informal agreement certificate lease over state or with land owner -State Funds forest land municipal land -Land owner with -Private users of state -State Funds agricultural passport (or registerable) -Private user or entity or municipal land without land Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 5; Mitigation Measures ownership documentation. with registered lease over lease or formal agreement state or municipal land -Municipal land -Land owner with right to -Private users of ownership from long -Private user or entity with private land without possession. registered lease over agreement of landowner private land (subject to reasonable -Person with notarized verification) Power of Attorney to act -Private user or entity with on behalf of absentee/ third party rights to the incapacitated owner land -Next of kin awarded temporary ownership rights by Civil Court Restriction of use (20- Cash compensation Cash compensation Cash compensation Cash compensation metre corridor) equivalent to 20 percent equivalent to 20 percent equivalent to 20 percent equivalent to 20 percent of the “project offered of the “project offered of the “project offered of the “project offered rate” for the subject land rate” for the subject land rate” for the subject land rate” for the municipal land Right of Access Cash compensation Cash compensation Cash compensation Cash compensation (6-metre pipeline equivalent to 80 percent equivalent to 80 percent equivalent to 80 percent equivalent to 80 percent strip) of the “project offered of the “project offered of the “project offered of the “project offered rate” for the subject land rate” for the subject land rate” for the subject land rate” for the municipal land   Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 5.12 | P a g e 6 IMPLEMENTATION MECHANISM Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Overview Overall responsibility for planning and execution of land acquisition / compensation and income rehabilitation / restoration rests with AWM OJSC. The Cabinet of Ministers of Azerbaijan commissioned AWM OJSC with the Cabinet Minister Decree No 75 dated May 03, 2013 as Executing Agency for performing the land acquisition, and other relevant resettlement activities. Implementation Unit (PIU) created by AWM OJSC specifically for the SNWSSP II of Azerbaijan. The PIU has trained personnel on implementation of this Resettlement and Land Acquisition Plan. The construction supervision unit of PIU also will play an active role in the implementation of this plan. Institutional arrangements and their responsibilities for implementation of resettlement activities are summarized and given below. 6.1 Implementation Plan Implementation will commence with a public awareness program. The PIU will ensure that this plan will be implemented properly. The implementation of this plan involve at least following agencies, including;  AWM OJSC (PIU) as Authorized Purchaser,  Ministry of Finance as Monitoring Agency commissioned by the Law on acquisition of lands for state needs dated April 20, 2010,  State Real Estate Registry Services as authorized agency for registring of all lands and immovable properties in all country,  Local governments (Rayon Executive Power),  Relevant District MUnicipalities,  Local CBOs and NGOs, and  WB. In accordance with the Law on acquisition of lands for state needs dated April 20, 2010, the implemetation plan should follow a path (implementation mechanism) shown in the following Figure. See mentioned Law Article 43.4, 44.1.1, and 44.1.7. The major events in the course of implementation is summarized in the following Table; Table 6.1: Major Events on the Course of Implementation Time Activities Location Responsibility (Days) Land Acquisition Step 1 – Submission of Consultant 0 Days Baku Consultant Within 15 days after Step 2 – Preparation of Comments for LA&MVP submission of Baku AWM OJSC & MOF LA&MVP Within 30 days after Step 3 – Refering the LA&MVP to Valuation submission of Shabran AWM OJSC & MOF Commission with comments LA&MVP Step 4 – Approval of Costs by Valuation Within 60 days after Valuation Commission, holding series of meeting with submission of Shabran Commission PAPs LA&MVP Within 75 days after Step 5 – Sending of approved costs to AWM Valuation submission of Baku OJSC by the Valuation Commission Commission LA&MVP Within 90 days after Step 6 – Submission of approved costs to MOF submission of Baku AWM OJSC by AWM OJSC LA&MVP Step 7 – Obtaining approval from MOF for the Within 105 days final costs and assigning to Land Acquisition after submission of Baku AWM OJSC Team in Rayon LA&MVP Within 105 days Step 8 – Arranging Public Awareness Program Land Acquisition after submission of Shabran by Land Acquisition Team Team LA&MVP Within 135 days Land Acquisition Step 9 – Accomplishing full compensation after submission of Shabran Team LA&MVP Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Within 135 days AWM OJSC, Land Step 10 – Implement Land Transfer Procedure after submission of Shabran Acquisition Team, LA&MVP SRERS AWM OJSC, PIU, Throughout the AZERSU, Rayon Project period Step 11 – Grievance Redressing Project Area Sukanal (Construction plus Department, Rayon operation preiod) Executive Power AWM OJSC, MOF, AZERSU, Rayon Throughout the Step 12 – Internal Monitoring Project Area Sukanal Project period Department, Rayon Executive Power Independent External Monitoring At the end of Land Step 13 – External Monitoring Project Area Panel, MOF, AWM Acquisition Process OJSC, PIU, AZERSU Figure 6.1: Implementation Mechanism (Illustrated by Consultant’s Team) 6.2 Institutional Roles and Responsibilities Planning, formulation and successful implementation requires the roles and responsibilities of different stakeholders and interest groups to be clearly defined and communicated. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Overall responsibility for planning and execution of land acquisition / compensation and income rehabilitation / restoration rests with AWM OJSC. Roles and responsibilities for the tasks of planning and execution of land acquisition / compensation and income rehabilitation / restoration are summarized in the following Table. Table 6.2: Land Acquisition & Resettlement Roles and Responsibilities Responsible Activity Purpose Period Implementation Authority Application for land To secure Azerbaijan Planning AWM OJSC AWM OJSC allocation for the Government approval for project allocation of land fort he project Research of Land Title Identification of Project Planning AWM OJSC, AWM OJSC researches title and ownership details affected land, parcels, SCPI, SRERS and ownership information. landowners and users SCPI and SRERS assist with GIS database development Census of Project To provide a record of all Planning Consultant, Land Land Acquisition Team Affected Households households & enterprises Acquisition eligible for compensation Team Notification and Meetings to advise Planning AWM OJSC, Land Acquisition Team with Preliminary landowners / users of the And Consultant assistance from district Consultation with need to acquire their lands, executive authority and affected community and explain procedures to village representatives be followed Socio-economic To assess affected Planning AWM OJSC, International Consultant Survey of affected households living standards And Consultant together with National social people & livelihood sources as a assessment consultant basis for identifying impacts, and establishing a monitoring baseline Preparation of To comply with national / Planning AWM OJSC, International Consultant and LA&MVP international good practice, And Consultant Land Acquisition Team ational regulations / WB OP 4.12, and lender requirements Signing of preliminary MOU with each affected Planning AWM OJSC AWM OJSC signes the Memorandum of owner / user agreeing that MOUs with owners and Understanding (MOU) the Project corridor land leaseholders may be acquired, with a description of affected area & its condition including crops, trees and other immovable assets. Survey & Loss To assess all lands, assets, Planning Consultant’s Consultant’s social survey assessment livelihood impacts as basis social survey and valuation Team for valuation and valuation Team Valuation of Land, To define amount of Planning Consultant’s Land acquisition team and assets, and livelihood compensation payable for social survey consultant’s social survey to be lost temporary and permanent and valuation and valuation Team use of land Team Final negotiation of Based on the Pre-construction AWM OJSC Land Acquisition Team compensation recommendation of the Land Acquisition RAP Consultant’s valuation Team team, the Land Acquisition team negotiates final compensation with affected people Execution of Land To formalize acquisition of Pre-construction AWM OJSC AWM OJSC and owner / Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Acquisition rights necessary for Land Acquisition user sign the agreement, Agreements construction / operation of Team witnessed by register notary the projects Payment of To disburse cash 30 days before AWM OJSC AWM OJSC by depositing to Compensation compensation to all eligible construction the bank accounts affected land owners / designated for landowners / users users Issue of new To formalise all transfers of Post- Cabinet of SCPI prepares Certificates ownership documents land ownership (Permanent construction Ministers, of Land Ownership under and lease agreements Acquisition), and AWM OJSC agreement signed with with public registration of rights of AWM OJSC; Ministry of departments lease (parts of the Project Justice registers in SRERS. corridor located on the lands which are owned by governmental departments, public utility departments, municipalities, and etc.) , and use restrictions. Restoration of To ensure land affected by Post AWM OJSC Construction Contractor Agricultural Land the Project construction is Construction restored to its pre-project productivity following construction completion Other Livelihood To facilitate Project affected Post-contruction AWM OJSC AWM OJSC Restoration Measures land owners, users and others to restore or enhance their livelihoods Ongoing Consultation To keep Project affected Construction / AWM OJSC E & S department of AWM and Disclosure communities informed Post- OJSC about Project activities construction Monitoring To monitor reinstatement, All Phases AWM OJSC Ministry of Finance receipt of entitlements and effectiveness of livelihood E&S Department of AWM restoration OJSC A matrix is given below for illustrating of managing the negative social impacts of the project. Table 6.3: Matrix for Managing Negative Social Impacts Impact # Activity Receptors Source of Impact Mitigation Assessment 1 Construction Host population, In-migration of new Process of Contractor will practice fair, transparent and equal period local staff, in- workers of integration of host rights and benefits labor policy migrated contractors and in-migrated personnel communities may experience some social tension 2 Mobilization Local job seekers Contractor will not High expectation on Each project related public outreach event will of local staff require as large stuff job opportunities mention that: for to satisfy all job may disappoint local Contractor is responsible for quality of performed commencem seekers in project population leading to work, therefore is eligible, authorized and even ent of works influence area complaints and obliged to hire most suitable, candidates. activities dissatisfaction Contractor Company will maintain transparent HRM1 policy rely on the best practise experience and relevant country laws and policy 3 Earth works Business onwers, Earth works and Construction works Contractor is responsible to provide daily and pipeline hired personnel operating machinery takes longer than passage/access to public and construction within project COI temporarily limit planned, limited commercial facilities; agricultural, homestead, activities access to access to road side grazing land parcels and pasture lands to ensure businesses facilities business force them uninterrupted access and elinimate any risk of to income loss due to the lack of access. temporarily suspend Contractor will compensate any income loss if fails business activities to meet such requirements. 1 Human Resource Management. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Impact # Activity Receptors Source of Impact Mitigation Assessment 4 Earth works, Users of water, Exisiting linear Temporary cut of Contractor will identify all pipes (including man construction electricity and structures may get water supply, made water pipe systems often being invisible) and natural gas damaged during electricity or natural before commencement of earth works and inform maintenance construction or gas may cause local community early enough about temporary activities operation period discontent of local stoppage of water/electricity and gas. population and if not Important, to ensure that people are timely addressed timely informed of the works schedule (i.e. time when they and accordingly may should expect stoppage and reinstatement of the cause some social supply to avoid gas poisoning, electric shocks or protests water leakage) 5 Earth works Local population As a result of Open tranches, Construction Contractor and Supervisor will be and mailnly pregnant negligence of uncovered holes, responsible to ensure that applicable safety norms construction women, mothers workers and/or, pipes, other and standards are closely followed during activities with younger construction construction construction and maintenance operations to avoid kinds and supervisors open materials and any physical damages oddlers, elderly holes, tranches left machinery left in people and and uncover to create wrong places may people with threat for physical cause physical disablity well ness of people damages of local within project people and their affected area. assets (cattle, vehicles etc). 6 Routine or Owners/users of As a result of Loss of income or AZERSU will have to imemdiately notify affected urgents land/assets that negligence of assets caused by person (physical and/or legal) and negotiate ters maintenance may be affected workers and/or, unauthorized and conditions of compensation: activities during the earth construction intervention and a)provide relevant cash compensation; or works, supervisors extra occupation of b) fully reinstate all damages at its own cost construction or land (private or territory outside of maintenance public assets) may the compensated period be occupied and area even damaged 6.2.1 Compensation and Disbursement Mechanism AWM OJSC with financial support from Government of Azerbaijan and implemented through the Land Acquisition Team will pay all compensation/entitlements as laid out in the entitlement matrix to all eligible affected persons/households. Regardless whether an affected person/household is registered user, all title holders and non-title holders will be compensated according to entitlement matrix (see Chapter 5.5 of this report). All the payments will be made by AWM OJSC through bank transfers. 6.3 Grievance Redress Mechanism This Chapter will illustrate the measures and procedures needed to redress or mitigate grievances. The sole purpose of the measures of redresses recommended is to avoid economic and social hardships to people resulting from the construction effects of the project. In order to accomplish this purpose, it is essential that the mitigation measures recommended in this report should be followed closely by the project implementing agency. All of the recommended mitigation measures are essential and none is significantly more important than the others. Some adverse impacts like resettlement of people are not likely to occur due to the scope of this project. This, notwithstanding, will be essential that certain measures recommended are closely followed prior to actual implementation of the scheduled work. On the basis of the social research and monitoring conducted before, the note below provides a draft for the grievance redress measures, steps and procedures to be adopted by the AWM OJSC. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms 6.3.1 Proposed Grievance Redress Steps and Procedures Maintaining of Complaint Register Care will always be taken to prevent grievances rather than going through redressal system. Grievance can be minimized through careful project design and implementation by ensuring active participation and consultation with PAPs, establishing rapport between the community and AWM OJSC through frequent interactions, transparency and monitoring. As a first step of the grievance redress steps a complaint register will be maintained in each Resident Engineer’s (RE) office. On receiving a complaint, it will be registered at the RE’s office and complaint will be given a reference number. Then RE will review the complaint received and its documentation and also make arrangements to redress it. If the issue cannot be handled / settled by the RE himself / herself the complaint will be referred to the Grievance Redress Committee. Establishment of a Grievance Redress Mechanism Committee (GRC) Grievance Redress Committees (GRC) will be formed by the AWM OJSC in the rayon or other appropriate project location consisting of the following members as given in Table. Table 6.4: Positions and Duties of the GRC Members Function in the Designation / Official Position Task assigned Remarks Committee Chairing the GRC Grievance Meetings, making Notice should be 1 Director – AWM OJSC Chairman recommendations and Headed within a for action month Secretary, Chief Officer, representing Maintaining minutes, engineer or Exective 2 AWM OJSC, at the Correspondence on Engineer can act as project area Decisions by the GRC the secretary of GRC. Representative from To represent local 3 Local Government Member authority, and its (Executive Power) concerns. To represent district Representative from 4 Member municipalities, and its local muncipalities concerns. Representative from To represent monitoring 5 MOF of rayon Member authority, and its department concerns. Representative from a To represent local 6 local community Member community, and its organization (CBO) concerns. A representative of To represent the 7 Member Local PAPs concerned PAPs Resident Engineer (RE) – He/She could also attend as a non-member to offer his observations if requested and clarify the matters related to the claims based on the field investigation of applications and show the implication that may emerge in project implementation. Contractors Representative - He/She could also attend as a non-member. If requested and clarify the matters and answers and make comments regarding the related issue. Creation of Awareness of the Grievance Redress Mechanism AWM OJSC should inform the relevant PAPs/Communities, Local Executive Powers, Municipalities and rayon officers of MOF, Resident Engineer, and Contractor about the existence of grievance redress mechanism. AWM OJSCshould prepare flyers indicating;  Project brief including the benefits of the rehabilitated road for the public,  Procedures for registering a complaint,  Categories of persons, institutions and property/assets affected that can claim compensation, Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms  Explanation of those who would not be considered as an affected person, property etc.  The address of the authority to receive and register the application with the name of the officer in-charge, address, and telephone/fax numbers to contact. Receiving Application for Redress The applications regarding grievances for redressal can be submitted to the Resident Engineer (RE) on week days during office hours. These applications are registered in the RE‟s office with all details such as names of the person, type of grievances etc. The RE along with the social safeguards staff will be responsible for the resolution of the grievance at the local level and if required will request a meeting of the GRC and inform the other committee members regarding the grievance registered and actions taken so far. A copy of the application for redress should be sent promptly to Director/AWM OJSC and Secretary/GRC with the observation of the RE. 6.3.2 Redress Committee Meetings, Hearings, Proceedings and Recommendations Depending on the applications to be considered, Redress Committee Meetings will be held in the Office of the Resident Engineer on the Thursday of every second week of the month at 2.00 p.m. If this day falls on a holiday, the meeting will be held on the following day at 2.00 p.m. In some cases, a need will arise to hold more than one sitting. In such instances, Director of GRC will schedule additional meetings and inform the applicant early in writing. Schedule must be strictly adhered to. If a member cannot attend a scheduled sitting, a representative should be sent. Minutes of the meetings, including the decisions taken regarding redress or otherwise, will be recorded by the GRC Secretary. Minutes should be signed by all members of GRC. Applications, investigation reports, minutes of meetings and the decisions of the GRC on each of the application for redress should be maintained in the office of the Director / AWM OJSC for future reference. 6.3.3 Implementation of Decision of GRC The minutes of the GRC signed by the GRC members are maintained at the office of the Director of GRC. The recommendations along with other issues will be sent to the Project Director at the PIU of AWM OJSC within a week after the GRC meeting. The same information will also be sent to the relevant applicants for his information. The recommendations will be implemented before the construction work is started in the sections where affected persons have claimed for redress. 6.3.4 Monitoring and Evaluation Mechanism Monitoring and evaluation are vital activities of the project. The project has the responsibility to implement all activities identified and on time. The objectives of monitoring of the LA&MVP are to; 1. Ensure all activities of the LA&MVP are implemented, 2. Ensure that the standard of living of affectees is restored or improve, 3. Monitor whether the time lines are being met, 4. Assess whether mitigation efforts are sufficient, 5. Identify construction related problems or potential problems, and 6. Identify methods of responding immediately to mitigate hardships. The monitoring and evaluation of the mitigation process is carried out by the AWM OJSC. The SNWSSP II project office and the consultant’s office are responsible for implementing a suitable program for monitoring and evaluation of the social impact mitigation with active participation of the staff of RE’s office in the respective sub-project areas. The staff attached to the RE’s offices is involved in supervision of the construction activities and also mitigation of negative impacts. One of the main roles assigned to this group is frequent monitoring of the field condition on impact mitigation. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms The reports they prepare based on their monitoring are sent to AWM OJSC project Office located in Baku. The monitoring indicators consist of activities, performance and outcome as laid out in the entitlement matrix to ensure that the affected persons are identified in the LA&MVP and receive the compensation on time for those that they eligible for (see Table for monitoring & evaluation indicators). In addition the Grievance Redressal Meetings will be closely monitored to ensure that all complaints are resolved on time and in a satisfactory manner. The conflict filter, that is a part of the project, will also be monitored. The specific objectives of the M&E program are;  to ensure that the existing livelihood system of APs is not disturbed;  to monitor whether the timelines are being met;  to assess if compensation, rehabilitation measures are sufficient;  to identify problems or potential problems;  to identify methods of responding immediately to mitigate problems. Furthermore, the M&E program will; a) record and assess project inputs and the number of persons affected and compensated, and b) confirm that former subsistence levels and living standards are being re-established. A set of indicators is shown in the following Table; Table 6.5: Monitoring & Evaluation Indicators Type Indicator Examples of Variables Process Indicator Consultation,  Number of consultation and participation programs held with Participation, & various stakeholders on entitlements, valuation as per Grievance Resolution replacement value etc.  Grievances by type and resolution.  Number of field visits by AWM OJSC staff, GRC members.  Number of NGOs/civil society organizations participating in Project. Procedures in  Joint asset verification/quantification procedures in place. Operation  Effectiveness of compensation delivery system.  Coordination between AWM OJSC and other line agencies. Outcome No. of lands plots  Area of agricultural, nonagricultural lands acquired or Indicator purchased, acquired and purchased. compensated.  Area of other private lands purchased or acquired.  Area (and type) of state lands acquired. Amount of  Total quantity of land to be purchased and acquired. compensations out of the total resettlement budget. Structures  Number, type and size of structures belongs private parties affected and also replaced /paid compensation by AWM OJSC.  Number, type and size of common structures affected and also replaced / paid compensation by AWM OJSC.  Number, type and size of government structures affected and also replaced / paid compensation by AWM OJSC. Trees & Crops  Number and type of crops and trees in private land acquired and compensated.  Number and type of crops and trees in government or other common lands acquired or purchased. Compensation &  Number of owners compensated by type of loss. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Rehabilitation  Number of replacement of structures and amount of compensation paid as replacement cost by the AWM OJSC.  Number of poor and vulnerable APs assisted /supported by AWM OJSC.  Assistance/support provided by the AWM OJSC to the Communities. Impact Indicator Settlement and  Growth in number and size of settlements. Population  Growth in market areas.  Standard of living. Internal Monitoring Internal monitoring will be conducted by AWM OJSC with the involvement of project office, construction supervisory consultant office and especially the RE’s office in the project area. The resettlement specialists with support from staff of construction supervision and also the environmental officers hired by the contractors will collect information from the project site and reflect them in the form of a monthly or quarterly progress report to assess the progress and results of LA&MVP implementation, and adjust the work program, where necessary, in case of any delays or problems. Baseline census, socio-economic survey and the land purchasing and acquisition data will provide the necessary benchmark for field level monitoring. The methods that will be used to carry out field level monitoring include; a) Review of census / information for all PAPs; b) Consultation and informal interviews with PAPs; c) In-depth case studies; d) Informal sample survey of PAPs; e) Key informant interviews; and f) Community public meetings. The project will appoint an independent external social expert (consultant) on resettlement to carryout field level monitoring. External Monitoring – Third party validation External monitoring or third party validation will be conducted by an independent external body. Objective of Third Party Validation (TPV) will be to validate the results of the internal monitoring system and to measure the effectiveness of implementing the RAP on the lives of PAPs. Special attention will be paid on issues of land acquisition and restriction of use. AWM OJSC will make arrangement to conduct TPV at two stages. The first TPV will be carried out once the entire land acquisition process is completed. The second one will be conducted at the end of the project. Management Information System (MIS) The SNWSSP II project office in Baku should maintain a computer based data base, on all construction activities of the project. Some information on mitigatory actions of social impacts is also included in the data base. However the AWM OJSC will enhance the data on resettlement issues and the actions taken for mitigation of such issues. The information reported by each RE office will be used to develop the data base. Reporting Requirements The Project Management Unit of the SNWSSP II office is the overall responsible organization for reporting of the project progress and other aspects to the Bank. Each RE office will prepare progress reports and submit to Baku based offices, Project Director’s office and the construction supervisory consultant’s office. The Project director’s office will send progress reports to the Bank based on the report submitted by the supervisory consultant. This reporting will be carried out quarterly or biannually. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms Awareness Programs It is important to pay special attention to provide real information about the proposed project and activities for all parties through awareness programs in project area in this project (see following Table). The awareness programmes should cover following groups;  General Public  Villagers  Community leaders/ Religious leaders  Project affected parties  Beneficiary community of the project influenced area  Government Institutes and Government Officers  Project implementing, executing, supervising agencies (AWM OJSC, PIU, and Consultant etc.)  Private Sector  System Users  Security Forces  Local Politicians  Labors  Contractors  CBOs and NGOs Table 6.6: Awareness Programs for targeted groups Target Group When & Where to Conduct Information need to be disseminated Trainers General Public, It should be conducted 1. WB policies in this regards. Resettlement Experts before commencement of 2. Proposal to rehabilitate the systems. attached to the Community construction. 3. New service area of the project Environmental Section Leaders, 4. Funding agency of AWM OJSC and This program should have 5. Commencement date Environment and Social Religious each section of the project 6. Target end date Specialist of PIU. Leaders, 9. Possible threats to each group of people. Villagers, 10. The type of support expected from the public during the construction phase Beneficiary 11. Safety measures. community of 12. Grievance Redress Mechanism the project 13. Negative impacts during the influence area, construction phase 14. Mitigatory measures to be taken System Users, 15. Compensation packages 16. Awareness about the LA&MVP Private sector 17. Targeted benefits after completion of the project Security forces 18. Creation of job opportunities for local people Local 19. Additional income generation Politicians, activities during the project CBOs and NGOs Project Affected It should be conducted 1. Proposal to rehabilitate the systems. Resettlement Experts Parties (PAPs) before commencement of 2. New Service Area of the Project attached to the road construction. 3. Land acquisition process Environmental Section 4. Compensation packages of AWM OJSC and This program should have 5. Commencement date of construction Environment and Social each section of the project. 6. Target end date Specialist of PIU. 7. Possible threats to each group of people. 8. The type of support expected from the public during the construction phase 11. Grievance Redress Mechanism 12. Negative impacts during the construction phase 13. Mitigatory measures to be taken Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms 14. Awareness about the RAP 15. Targeted benefits after completion of the project 16. Creation of job opportunity for local people 17. Additional income generation activities during the project 18. Funding agencies Government It should be conducted 1. Proposal to rehabilitate the systems. Resettlement Experts institute and before commencement of 2. NewProject Service area attached to the Government road construction. 3. Expected administrative support to the Environmental Section officers project of AWM OJSC and This program should have 4. Approvals need to be obtained Environment and Social each section of the project. 5. Compliance of policies available in the Specialist of PIU. government and the World Bank to mitigate negative impacts. 6. Land acquisition process 7. Compensation packages 8. Commencement date of construction 9. End date of the project 10. Possible threats to each group of people. 11. The type of support expected from the public during the construction phase 12. Grievance Redress Mechanism 13. Negative impacts during the construction phase 14. Mitigatory measures to be taken 15. Awareness about the RAP 16. Targeted benefits after completion of the project 17. Creation of job opportunity for local people 18. Additional income generation activities during the project Project It should be conducted 1. Importance of ensuring safety of the Hired Social implementing , before commencement of community. Development expert executing , construction and it should 2. Compliance of WB policies in this Resettlement experts supervising have for each group of regards. attached to the agencies laborers related to contractor. 3. Land acquisition process and Environmental Section ( AWM OJSC, compensation packages of AWM OJSC PIU, 4. Possible threats to each group of Consultant. people. Etc.) 5. Vulnerable families 6. Ensure villager’s livelihood minimizing construction related disturbances. 7. Labor laws and rights. 8. Creation of job opportunities for local people 9. Implementation of Grievance redress mechanism 10. Social activities monitoring plans 11. Implementation of mitigatory measures for mitigating negative social impacts 12. Ensure villager‟s livelihood minimizing construction related disturbances. Labors It should be conducted 1. Importance of ensuring health seeking Social specialists before commencement of behavior. attached to the construction and it should 2. WB policies in this regards. Environmental Section have for each group of 3. Possible threats to each group of of AWM OJSC and PIU. laborers related to contractor. people. Medical health officers 4. Safety measures. Traffic police officers 5. Child and women rights and abuses. Hired social 6. Ensure villager’s livelihood minimizing development and construction related disturbances. gender specialists. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms The PIU should focus special attention to raise awareness among the key stakeholders of the project. The major aspects to be covered by training programs are given in following Table. Table 6.7: Major Aspects to be Included to Awareness / Training Programs Training Aspects Target Groups Trainers World Bank Social Safeguards Policies AWM OJSC staff, Social Development Environmental Section Experts of World Bank. staff of AWM OJSC, PIU staff, Consultants, Contractors, Staff from Local REP, Rayon Land officers form SRERS, Rayon representatives of AWM OJSC. Implementation of LA & MV Plan – SNWSSP II AWM OJSC staff, PIU Resettlement specialists staff, Consultants staff, attached to Environmental Contractors, Staff from Section of AWM OJSC Local REP, Rayon Land and Social Specialist officers form SRERS attached to PIU. Community, NGOs and CBOs Involuntary Resettlement Policy of Azerbaijan AWM OJSC staff, PIU Hired Resettlement and Land Acquisition process of Azerbaijan staff, Consultants staff, Social Development Compensation Packages, Contractors, Staff from experts and Gender Social Impact Monitoring tools Local REP, Rayon Land specialists. Screening of Vulnerable families and officers form SRERS Women and Child rights Community, NGOs and Women participation for project work CBOs Traffic Management & Prevention of Safety Hazards AWM OJSC Staff, Experts attached to the Environmental Section Planning Unit of the AWM Staff of AWM OJSC, PIU OJSC. staff, Consultants, Staff from Local REP, Rayon Land officers form SRERS and Contractors. Relocation of Utilities AWM OJSC staff, PIU Resource Persons from Reduction of Interruptions/disturbances to the community staff, Consultants staff, Utility Agencies Contractors, Staff from Local REP 6.4 Strategies to Obtain Community Support to Minimize Negative Social Impacts through Awareness Programs The NWSSP II will provide funds for a wide range of training programs on social safeguards of the project. Training programs will be organized by the project management unit by obtaining services from outside experts for AWM OJSC staff, PIU staff, Consultants staff and Contractor to raise their awareness of social safeguards policies. These awareness programs will help them to deal effectively with negative social issues raised by the public. The training programs include public awareness programmes, local seminars and workshops. The capacity building programs on social safeguards will be conducted in each of the section of the project. The information related to Land Acquisition and Monetary Valuation (LA&MV) Plan will be disseminated for the public information on the project and its implications. Suggested mitigatory measures for negative social impacts will be discussed during the awareness programmes. All information about the project activities will be provided to help minimize negative impacts and obtain support of the community affected. The Resident Engineer and staff members will closely Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 6; Implementation Mechanisms contacts with the project affected families, the community, community leaders, religious leaders and local politicians of the project area. Several training programs / awareness programs will be conducted for the contractor and laborers to make them aware of the project and their role in dealing with social issues. The contractor will be provided with all information of the project including negative impacts that may emerge during the construction period and entitlement policies to minimize the negative impacts. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 6.13 | P a g e 7 COST CALCULATION Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Overview The overall responsibility for implementing mitigatory measures of the Project Implementation Unit (PIU), created specifically for the SNWSSP II. The Construction Supervision Unit also plays an active role in the implementation of the resettlement activities. Under requirements of the Consultant’s Equal Employee (EO) Policy, the local professionals are involved in this part of the assignment. A local firm for determining the market value of the lands to be permanently acquired, annual, seasonal, and perennial crops damaged during construction is selected from the qualified local land valuation firms which have sufficient experience on land, and annual/seasonal crop valuation. No open tender process is followed. Accordingly, Rec-Invest, LLC which has sufficient experiences on valuation procedures and process for such this project in Azerbaijan, has been awarded for performing the independent valution of current prices of the lands, other immovable assets (including main buildings and attachments), trees, crops affected, and their productivities and yieldings. A contract has been signed with Rec-Invest, LLC in September 01, 2014. 7.1 Market Values of Lands, Yield, and Other Cost Items The unit prices and total amounts related to acqusition of lands affected are figured out as follows; 1. On- the- spot investigations with representative of AWM OJSC, examining the last land selling and buying unit prices in the local market. 2. Measuring the length of the pipes traversing the lands and calculating the number of square meter and hectrare for each of the land parcels in accordance with the results of the study conducted by cadastre team of SRERS. 3. Examine the current conditions of the properties affected. 4. Examine the last selling and buying unit prices in the local market. 5. Examine the productivity and yield of the lands with respect of the annual / seasonal crops. 6. Examine the yields of the fruit trees growing in the area. 7. Examine the market values of the annual / seasonal / perennial crops growing in the area. 8. Analyzing current prices of seeds and droppings (fertilizer, manure, etc.) in the area. 9. Examine labor and equipment costs related to cultivation in the area. The following market values are used for the cost calculations conducted on basis of guidelines, methodology, and the principles for compensation entitlements discussed in Chapter 5. Market Values of Lands Impacted Market values of land categories impacted by the Project is given in the following Table. Table 7.1: Impacted Lands Market Values Used in the Cost Calculations Market Value Land Use Category m2/US$ Hectare/US$ Agricultural lotsfor seasonal / annual crops 0.35 3,500 Residential and Homestead lands in the city 10 100,000 Municipal residential plots in the city 4 40,000 Municipal and/or Government Agricultural Lands 0.35 3,500 Municipal and/or Government Grazing Lands 0.20 2,000 Municipal / Governmental Useless Lands (salty 0.10 1,000 lands) Government - Flood Plains /Irrigation Canals 0.10 1,000 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Yield and Market Values of Annual Crops (Grain) The yield and market values of annual crops (grain) cultivated in the area is given in the following Table. Table 7.2: Yield and Market Values of Annual Crops (Grain) Market Price Estimated total average Yield Summer Winter Average income Sort ton/hectare per US$ US$ US$ US$/hectare per annum annum Wheat 3.5 212 371 292 1,022 Barley 3.5 160 320 240 840 Rye 3.5 160 320 240 840 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Yield and Market Values of Seasonal Crops (Clover) from Agricultural Lots The yield and market values of seasonal crops (clover) cultivated in the area is given in the following Table. Table 7.3: Yield and Market Values of Seasonal Crops (Clover) Yield Market Price Estimated total average Sort stock/hectare per season Summer Winter Average income 1 2 3 4 annum US$/stock US$/stock US$/stock US$/hectare per annum Clover 180 150 100 60 490 2.15 3.2 2.68 1313 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Market Values of Seasonal Crops from Homestead Lands (Various Vegetables) for Subsistence Farming Market values of seasonal crops (various vegetables) cultivated in the homestead lands for subsistence farming are given in the following Table. Table 7.4: Market Values of Seasonal Crops (various vegetables) from Homestead Lands Est. Income or Benefit loss from Homestead Land for 1 Sort Family US$/annum Various Vegetables grown in the Homestead 240.00 Lands for subsistence farming Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Yield and Market Values of Perennial Crops (Fruit and non- fruit trees) The yield and market values of perennial crops (fruit and non-fruit trees) cultivated in the area is given in the following Table. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Table 7.5: Yield and Market Values of Perennial Crops (Fruit and non-fruit trees) Timber Values of Trees Market Price of Yield Crop Sort (≥5 years)1 US$ / Tree kg/annum US$ / kg Grape 55.00 100.00 0.65 Pear 44.00 65.00 0.60 Walnut 66.00 85.00 2.40 Hazelnut 66.00 40.00 3.45 P.granete 44.00 40.00 0.65 Mulberry 44.00 125.00 0.72 Quince 50.00 35.00 0.50 Apricot 50.00 55.00 1.45 Plum 44.00 40.00 0.45 Fig 50.00 50.00 1.25 Apple 44.00 80.00 0.35 Cherry 50.00 45.00 0.80 Peach 50.00 40.00 0.70 Persimmon 50.00 75.00 0.75 Medlar 44 175 1.25 Almond 44 50 1.50 Rose trees 28.00 0.00 0.00 Plane Trees 22.00 0.00 0.00 Bay-tree 25 80 0.3 Various immature trees 17.00 0.00 0.00 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Labor and Other Cultivation & Harvesting Costs Labor and other cultivation and harvesting costs of 1 hectare agricultural land are given in the following Table. Table 7.6: Labor and Other Cultivation Costs for 1 Hectare Agricultural Land Cost Cost Items US$/ha annum Labor Costs Plowing 40.00 Weeding 35.00 Seeding 25.00 Harvesting 45.00 1 As a result of inventory of project affected fruit bearing trees the approximate age and productive was assessed in the presence of PAPs. Majority of trees were confirmed to be relatively younger. The PAPs will receive 15 USD per each affected fruit tree to purchase 2-3 years of good quality sapling. In five years time 3 years old saplings will reach similar productivity age. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Transport 20.00 Fertilizing 20.00 Sub-total I 185.00 Other Costs Watering 70.00 Cost of sapling per tree 15.00 Seed 125.00 Fertilizer 50.00 Pest Control 70.00 Sub-total II 330.00 Total 515 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Cost of Soil Recovery or Land Peparation Cost for Agricultural Lands and Homestead Lands Following Construction of Permanent Land Acquisition (3 Years Period) – See WB OP 4.12, and WB Handbook for Resettlement, Chapter 4, Resettlement Cost for Land Cost of soil recovery for yield reduction following construction completion and land preparation following permanent land acquisition for 3 years period are calculated both for 1 hectare agricultural and homestead lands using above unit prices per hectare per annum, which are as follows; Table 7.7: Cost of Soil Recovery or Land Preparation Cost for 1 Hectare Agricultural Land and Homestead Lands Agricultural Lands Homestead Lands Cost Items US$/annum per hectare US$/annum per 100 sq.m Plowing 40.00 4 Weeding 35.00 2 Fertilizing 20.00 3 Watering 70.00 8 Fertilizer 50.00 02 Pest Control 70.00 4 Total - per hectare 285.00 23 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. The following calculations are conducted using the unit prices determined by Consultant’s land and crop valuation team (local firm). Cost calculation for lands is conducted on the basis of guidelines and methodology discussed in Chapter 5 of this report. If any land owner is not willing to sell his/her land to the AWM OJSC, the AWM OJSC can take actions to acquire the required land under normal acquisition procedure of the Law on acquisition of lands for state needs dated April 20, 2010. Severe Impact Allowances Households whose lands are affected more than 10% of total area are entitled additional one time allowance in the amount of mitigation cost equal to one year income from the affected area (see Table 5.1 and 3.18). Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Table 7.8: Severe Impact Allowances Severe Impact Description No of PAPs No of HHs Allowance (US$) Severe Impact Allowances for Private Agricultural Lands 20 4 1,517.78 Severe Impact Allowances for Private Homestead Lands 17 3 720.00 Total 37 7 2,237.78 Vulnerability Allowances Though there is no household falling under the official poverty line (which in Azerbaijan is US$3.31 a day or US$ 100/- per month in March 2015) 21 woman headed households who are dependent upon agriculture as major source of livelihood and three (3) woman headed household in the city are included in the list of vulnerable HHs. The amount of vulnerability assistance to vulnerable households in total is US$ 13,800.00. Vulnerability allowance is equal to US$ 100 per month based on the US$ 3.31 per day for seven days a week or a period of six months per family. Table 7.9: Livelihood Assistance to Vulnerable Households Total Amount Description No of PAPs No of HHs (US$) Assistance to vulnerable HHHs 28 23 13,800.00 Source: Consultant’s social surveys, and survey results of Consultant’s social team. 7.2 Cost Calculation for the Lands to be permanently acquired for Above Ground Facilities (AGFs) While five (5) parcels required for AGFs are owned district municipalities, three (3) parcels are owned by private land holders. Seven cost items are defined for calculation of costs of mitigation of this impact; 1. Cost 1: Costs of loss of annual / seasonal crops during construction period (3 years); 2. Cost 2: Costs of Land Preparation following Land Acquisition (for 3 Years), WB OP 4.12; 3. Cost 3: Costs of permanent land acquisition for AGFs; 4. Cost 4: First additional payment for willingness to sell the property for stet needs (10% of the market price of the land to be acquired, see Chapter 51, and Azerbaijani Law on Acquisition of Lands for State Needs dated April 20, 2010, Article 32.3); 5. Cost 5: Second additional payment for Landholderhips more than 10 years (10% of market price of the land to be acquired, see Chapter 51, and Azerbaijani Law on Acquisition of Lands for State Needs dated April 20, 2010, Article 66) 6. Cost 6: Severe Impact Allowance; 7. Cost 7: Vulnerability Allowance. Summary of the costs are given in the following Table. For calculation detail, see Annex 4; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Table 7.10: Costs of Mitigation Measures for the Lands to be permanently Acquired for AGFs Total Area Used Total Costs of Permanent Number of Parcel Land Owner Land Use Category by the Project Land Acquisition for AGFs Affected (ha) ($) District Municipalities Useless 3 0.79 1,678.23 District Municipalities Grazing Land 1 2 2.65 8,668.33 Private Agricultural Land 2 3 1.48 14,054.25 Total 8 4.92 24,400.81 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. *&** See Chapter 5.1, and Azerbaijani Law on Acquisition of Lands for State Needs dated April 20, 2010, Article 32.3 and 66. 7.3 Cost Calculations for Private Lands to be Affected Costs of Mitigation Measures for Private Agricultural Lands to be Affected by Pipeline Construction While 63 private agricultural lots are affected negatively along the pipelines in Shabran, servitude will be established only on 60 of which are traversed by the pipelines physically, and two (2) private agricultural lots are encroached by the construction activities during construction phase. These two (2) lots are included in the calculation for adequate compensation because they suffered from income loss during construction, and are highlighted with blue in the following Table. Seven cost items are defined for calculation of costs of mitigation of this impact; 1. Cost 1: Cost of Restriction of Use for 7-m pipeline strip in either side of the pipeline through out the operation period (20 Years); 2. Cost 2: Cost of Right of Acces and Restriction of Use for 6-m pipeline strip through out the operation period (20 Years); 3. Cost 3: Cost of Loss of Annual /Seasonal Crop during Construction Period (3 Years); 4. Cost 4: Cost of Soil Recovery for 3 Years Period following Construction; 5. Cost 5: Cost of Loss of Perennial Crops; 6. Cost 6: Sever Impact Allowance; 7. Cost 7: Vulnerability Allowance. Summary of the cost calculation for private agricultural lands to be affected affected by the pipeline construction is given in the following Table, and for detail of the calculation see Annex 4; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Table 7.11: Total Costs of the Mitigation Measures for Pirivate Agricultural Lands to be Affected by Pipeline Construction Corrected Amount Number of Total Costs of According to Minimum Land Owner Land Use category Parcels Mitigation Measures Compensation Nos US$ US$ Agricultural Land Parcels (Annual / Private 58 61,218.93 66,615.58 Perennial) Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Costs of Mitigation Measures for Private Residential and Homestead Lands Affected Four cost items are defined for calculation of costs of mitigation of this impact; 1. Cost 1: Cost of Right of Acces and Restriction of Use for 6-m pipeline strip through out the operation period (20 Years); 2. Cost 2: Cost of Loss of Subsistance Farming during Construction Period (3 Years); 3. Cost 3: Cost of Soil Recovery for 3 Years Period following Construction; 4. Cost 4: Cost of Loss of Perennial Crops; 5. Cost 5: Severe Impact Allowances; 6. Cost 6: Vulnerability Allowances. Summary of the cost calculation for private residential & homestead lands to be affected affected by the pipeline construction is given in the following Table, and for detail of the calculation see Annex 4; Table 7.12: Costs of Mitigation Measures for Private Residential & Homestaead Lands Affected Number of Parcels Total Costs of Mitigation Measures Land Owner Land Use category Nos US$ Private Residential & Homestead Lands 6 41,890.99 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Costs of Mitigation Measures for Loss of Perennial Crops (Trees Cutting) Five cost items are defined for calculation of costs of mitigation of this impact; 1. Costs of timber value of trees cut; 2. Total costs of sapling and cultivation costs for three years after construction (labor costs are included); 3. Costs of loss of crops for construction period – 4 years for construction period (see Chapter 5.3.1 & 5.3.2); 4. Costs of crop losts for maturity period after construction – three (3) years; and 5. Cost of yield reduction for 3 years soil recovery (30% of crop production for 3 years), (see Chapter 5.3.1 & 5.3.2). Detail of the cost calculation is given in Annex 4. 7.4 Costs of Mitigation Measures for Governmental and Municipal Lands to be Affected by the Pipeline Construction Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation 41 governmental and municipal lands are negatively affected due to right of Access and restriction of use for 6-m pipeline strip throughout the operation period (20 years). Only one cost item is defined for calculation of costs of mitigation of this impact; 1. Cost 1: Cost of Right of Acces and Restriction of Use for 6-m pipeline strip throughout the operation period (20 Years); and Summary of the cost calculation for governmenta/municipal grazing, useless, residential, and agricultural lands affected by the pipeline construction is given in the following Table, and for detail of the calculation see Annex 4; Table 7.13: Costs of Mitigation Mesures for governmental / Municipal Grazing, Useless, Residential and Agricultural Lands affected by the Pipeline Construction Total Costs of Mitigation Measures Land Owner US$ 1 Shabran City Municipality 197.29 2 Shabran City Municipality 43.49 3 Tazakend Municipality 267.03 4 Tazakend Municipality 68.51 5 Shabran City Municipality 594.37 6 Shabran City Municipality 89.31 7 Shabran City Municipality 92.20 8 Shabran City Municipality 96.14 9 Shabran City Municipality 58.27 10 Shabran City Municipality 47.71 11 Shabran City Municipality 2,346.95 12 Shabran City Municipality 399.79 13 Shabran City Municipality 778.14 14 Shabran City Municipality 7,995.81 15 Shabran City Municipality 972.88 16 Shabran City Municipality 692.74 17 Shabran City Municipality 1,293.06 18 Shabran City Municipality 1,206.75 19 Shabran City Municipality 1,370.26 20 Shabran City Municipality 950.47 21 Shabran City Municipality 389.74 22 Shabran City Municipality 318.74 23 Shabran City Municipality 129.31 24 Shabran City Municipality 606.04 25 Shabran City Municipality 7,150.43 26 Shabran City Municipality 37.31 27 Shabran City Municipality 115.62 28 Shabran City Municipality 2,543.31 29 Shabran City Municipality 1,250.17 30 Shabran City Municipality 121.35 31 Shabran City Municipality 802.17 32 Shabran City Municipality 19,610.14 33 Shabran City Municipality 56.24 Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation 34 Shabran City Municipality 56.56 35 Shabran City Municipality 57.00 36 Shabran City Municipality 69.14 37 Shabran City Municipality 77.35 38 Shabran City Municipality 196.88 39 Shabran City Municipality 160.75 40 Government 33.82 41 Shabran City Municipality 37.09 Total 53,380.35 7.5 Costs of Other Mitigation Measures Costs for Public Awareness Program in Rayon At least two public awareness program shall be conducted in the Rayon during performance of Land Valuation Team and Land Acquisition Team of AWM OJSC. Table 7.14: Costs of Public Awareness Programs Estimated Cost Public Awareness Program US$ Program 1 - cost of first public awareness program during performance of Land Valuation Team (LVT) 1,500.00 Program 2 - cost of second public awareness program during performance of Land 1,500.00 Acquisition Team (LAT) Total Costs of 2 Programs 3,000.00 Source: Consultant’s own estimation. Costs to be Incurred during Performance of Valuation Commision (VC) & Land Acquisition Commission (LAC) to be established in the Rayon The Valuation Commission (VC) will work approximately 120 days (four months), and Land Acquisition Commission 180 days in each of the rayon. An administrative cost will occur during their performances. The costs to be incurred during their performances are detailed in the following Table; Table 7.15: Costs to be Incurred during Performance of VC & LAC 1 Total Unit Price Cost Items Unit Quantity Amount US$ US$ 1 Office Lease in rayon Month 10 350 3500 2 Office Furniture & Equipment LS 1 5000 5000 3 Office Overheads LS/month 10 800 8000 4 Local Transportation Costs Month 10 750 7500 5 Drafting & Reproduction LS 1 5000 5000 5 Per Diem - 1 sectretary, and 1 driver staff/month 20 750 15000 Total 44000 1 No wages and / or salaries are assessed for the members of the commissions as all members of the commissions will be assigned among existing personnels of the relevant institutions (see Figure 6.1). Source: Consultant’s own estimation. Estimated Notarization Costs Since all notarization costs to be incurred for notarization of the agreements to be signed between AWM OJSC and PAPs and governmental and municipal institutions will be covered by the Project, the following notarization costs will occur; Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – CH 7; Cost Calculation Table 7.16: Estimated Costs to be Incurred during Performance of VC & LAC 1 Unit Quantity Unit Price Total Amount Cost Items AZN AZN Estimated Costs of Notarization of the Agreements 1 Nos 116 80.00 9,280.00 arranged and signed by and between VC and PAPs Estimated Costs of Notarization of the Agreements 2 Nos 116 140.00 16,240.00 arranged and signed by and between LAC and PAPs Total 25,520.00 Source: Consultant’s own estimation. Costs for Social Safeguard Training Program Social safeguards training program shall be conducted for AWM OJSC regional officers, PIU Project engineers, Consultant, local executive power and relevant govt. officers in the Project area. Cost for 1 Training program: US$3,000.00 Cost for Monitoring and Evaluation (M&E) of Social Safeguards including Grievance Redress Mechanism (GRM) Cost of M&E of social safeguards and implementation of GRM: US$15,000.00 Provisional Sum for Additional Measures Based on requests, complaints received by the community or PAPs or institute to improve safety; Provisional Sum: AZN28,000.00 7.6 Total Costs of Mitigation Measures for Project Affected Properties and PAPs In the projections and calculations conducted in this report, the investment for project’s social impacts (permanent land acquisition and other resettlement measures) totalling of US$ 304,807.75 will be required in Shabran case. Details of the costs of mitigation measures are given in the following Table and Annex 4. Table 7.17: Total Costs of Mitigation Measures Cost of Mitigation Cost Items Measures US$ Costs of Mitigation Measures for the Lands to be permanentley 1 24,400.81 Acquired for AGFs 2 Costs of Mitigation Measures for Private Agricultural Lands Affected 66,615.60 Costs of Mitigation Measures for Private Residential & Homestaead 3 41,890.99 Lands Affected Costs of Mitigation Measures for the Government and Municipal lands 4 53,380.35 affected 5 Public Awareness Programs(estimated) in Rayon 3,000.00 Costs to be Incurred during Performance of Valuation Commision (VC) 6 44,000.00 & Land Acquisition Commission (LAC) to be established in the Rayon 7 Estimated Notarization Costs 25,520.00 8 Social Safeguards Training Program 3,000.00 Cost for Monitoring and Evaluation (M&E) of Social Safeguards 9 15,000.00 including Grievance Redress Mechanism (GRM) 10 Provisional Sum for Additional Measures 28,000.00 Total 304,807.75 Source: Consultant’s calculation results and his own estimations. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 7.10 | P a g e ANNEXE ANNEX 1 - Census and Set Questionnaire for Socio-economic Survey ANNEX 2 - Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring ANNEX 3 - Terms of Reference of the Assignment ANNEX 4 - Calculation Details of Costs of Mitigation Measures ANNEX 5 - List of PAP Shabran, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey Census and Set Questionnaire for Socio-economic Survey Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 Annex-1, 1 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey SECTION A – LAND TENURE 1. Is the property, Residential House Business Enterprise Business with Residence Agricultural Land Forestry Land Other (please specify) 2. Would you mind explaining to me, does a member of your household own this land plot? Yes (go to Question No. 2.1). No, we are not owners (go to Question No. 2.3). 2.1 Do you have documents to support this? Non-beneficiary Affected Persons (BN APs) do not have to show these documents. Type of document a) land certificate b) land title c) other d) don’t know e) none Person(s) whose name in the document is; a) Mother / Father (M / F) b) Joint c) Don’t know 2.2 How did the household come to own the land? Land transfer by; a) M / F b) Joint transfer Government allocation to; a) M / F b) Joint allocation Inherited by M /F Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 Annex-1, 2 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey 2.3 If no, who is the owner? Public property? a) Government b) Village land Private a) Relative, Name & Location (Village / Town / District) of Owner: ……………. b) Friend, Name & Location (Village / Town / District) of Owner: ……………… Private other, Name & Location (Village / Town / District) of Owner: ………………… 2.4 Do you have permission to use it? Yes, renting; a) Monthly rent: ……………….AZN / Month b) Deposit paid: ……………….AZN / Month Yes, live free with agreement of owner. No, live without petition from anyone. No, squatting – owners do not permit. Other (please specify). Unknown 3. How long have you been on this land? …………… years 3.1 If less than five years, where did you live before? a) Village: …………………………… b) District: …………………………… c) Rayon: ………………………….... 4. Apart from this land, do you have any other land nearby and somewhere else? (If No, go to Question 5.) 4.1 What do you use it for? Homestead Commercial Residential / Commercial Agricultural Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 Annex-1, 3 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey Fallow Other (please specify) 4.2 What is the distance from here to that land? ………….. km 5. How many households live here? ………….. (If more than one, please complete a separate census questionnaire for each additional household.) SECTION B – HOUSEHOLD SOCIO-ECONOMIC DATA 6. What is your household’s ethnicity? Turk Talish Russian Other (please specify) 7. What language(s) are spoken in your household? ……………………………… 8. Please provide details of your household members in the following way (Enter respondent’s name in row 1) * and ** Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 Annex-1, 4 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 Annex-1, 5 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_SIAR – Annex 2, Census and Socio-economic Questionnaire A B C D E F G H I J K L M N O P Q Total Estimated Illness Household Members Primary Income Secondary Income Monthly Occassions Earning Memebers Average Average over 6 Location of Location of Total - AZN Name - Last Relationship to Marital Physical Level of Monthly Monthly Over the last M/ F Age years old; Income Source Business / Income Source Business / Columns Name HH; Status Condition Education Income Income six months Can read Employment Employment (L + O) AZN AZN and w rite? 1 - M 1-Head 1.Single 1.Blind 1.Junior Highschool 1. YES 1.Gov Employ ee For responses of 1.Gov Employ ee For responses of 1. Nev er 2 - F 2-Spouse 2.Married 2.Deaf /Dumb 2.Highschool 2. NO 2.Priv ate Empl. items 1 - 11 and 2.Priv ate Empl. items 1 - 11 and 17 2. Once or Twice 3- M / F 3.Widow/er 3.Single Amputee 3.Vocational/ 3.State Enterprise Empl. 17 of column J 3.State Enterprise Empl. of column M where 3. Frequently 4-Son/Daughter 4.Multiple Amputee Technical College 4.Employ er where these 4.Employ er these inv olv e work; 4. Constantly 5.Other Relativ e 5.Intellectually 4.Undergraduate 5.Own Retail Bus. inv olv e work; 5.Own Retail Bus. 1.In the house 6.Non-relativ e/staf f Handicapped 5.Post Graduate 6.Own Busi. Other 1.In the house 6.Own Busi. Other 2.In the 7.Non-relativ e other 6.Chronic illness 6.Other 7.Farming rice 2.In the 7.Farming rice district/v illage (describe - zero 8.Farming f ruit district/v illage 8.Farming f ruit 3.Another district in means no 9.Farming Liv estock 3.Another district 9.Farming Liv estock the ray on disability ) 10.Farming Other in the ray on 10.Farming Other 4.In another ray on 11.Casual Laborer 4.In another ray on 11.Casual Laborer 5.Cross border 12.Trader in market 5.Cross border 12.Trader in market 6.Other (describe) 13.Unpaid Family worker 6.Other (describe) 13.Unpaid Family worker 14.Unemploy ed 14.Unemploy ed 15.Student 15.Student 16.HH Duties 16.HH Duties 17.Retired/Sick/too old 17.Retired/Sick/too old 18.Other (describe) 18.Other (describe) 1 2 3 4 5 6 7 8 * In completing the Table, ensure that the person being interview ed is in fact the HH head, w hether it is effectively a w oman or elderly headed HH (w here all members apart from the adult w oman and elderly member(s) are less than 20 years old. ** Also ask if there are any HH members w hoare w orking elsew here and sending remittance. Make sure the amounts they send back to the family are recorded. M: Mother - F: Father - HH: Household - AZN: Azeri Manat 9. Please show the breakdown of your household’s average monthly expenses in AZN (…………………………) Food & Drinks (…………………………) Clothing & Footwear (…………………………) Housing (…………………………) Household utensils & Operations (…………………………) Medical Care (………………………...) Transport & Communication (………………………...) Education (…………………………) Recreation (…………………………) Alcohol & Tobacco (…………………………) Paying of Credit / Loans (…………………………) Other (Please specify) ------------------------------------ (…………………………) Total Average Monthly Expenses (Review this total to see that they are not greater than the average monthly income) 10. In an average year, how much would you estimate you are self-sufficient for various products? Rice ……………… % or ……… months per year (convert to %) Vegetables ……………… % or ……… months per year (convert to %) Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_SIAR\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_SIAR – Annex 2, Census and Socio-economic Questionnaire Meat & Eggs ……………… % or ……… months per year (convert to %) Fish ……………… % or ……… months per year (convert to %) Wheat ……………… % or ……… months per year (convert to %) Dairy Products ……………… % or ……… months per year (convert to %) Fruit ……………… % or ……… months per year (convert to %) 11. Do you currently have any outstanding loans / debts? If yes, who to? Family Friends Crops sold in advance of harvest Bank Other (please specify) 12. Does any member of your household currently have any major illness? Illness …………..... Age ………… Treated Y / N Improved Y / N Illness ……………. Age ………… Treated Y / N Improved Y / N 13. Do you have any concerns about health issues in your household? …………………………………………………………………………………………………………… ……………………………………………………………………………………………………… 14. What is the source of drinking water and cooking water of your household? Piped Water Private Well Well / Borehole Collect from nearby water sources (river / stream / dam) Rain Water Other (please specify) Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_SIAR\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_SIAR – Annex 2, Census and Socio-economic Questionnaire 15. How does your household access electricity? Electricity Power Grid (own meter) Electricity Power Grid (shared meter) Generator Battery Have no electricity Other (please specify) 16. What type of sanitation does your household use? Household Pit Latrine Connected to Sewage Network None Other (please specify) 17. How far is the nearest school? ……………… km 18. How far is the nearest operational health clinic? ………………km 19. How far is the nearest market? …………….. km 20. What types of transport do you own? Truck Car Motorcycle Bicycle Animal Cart Tractor Other (please specify) 21. In a month, how many times would your household use the following transport services? Truck ……………… trips Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_SIAR\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_SIAR – Annex 2, Census and Socio-economic Questionnaire Car / Taxi ……………… trips Bus ……………… trips Microbus ……………… trips Fruit ……………… trips 22. What type of good / assets do you have in your home? (Please tick or cross all items) Hand Pump Refrigerator Gas Stove Radio Sewing Machine Telephone Mobile Phone Color TV Satellite Antenna Computer 23. Are there any communal resources in this district / village that you use? What do you use them for? Ponds / Canals / Other Forest Vacant Land Rivers (Please specify) Grazing Irrigation Water Grazing Fuel Collection Domestic Water Fuel Collection Collection of Fishing Collection of Plants / Herbs Plants / Herbs Other - Please Livestock Other - Please specify Watering specify Fish Raising Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_SIAR\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_SIAR – Annex 2, Census and Socio-economic Questionnaire Other - Please specify SECTION C – OPINIONS ON PROJECT IMPACT 24. Given the impacts we have just measured, do you expect any significant negative effect to your livelihood or lifestyle as a result of the project? 24.1 If yes, please describe the nature and severity of the impact. …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………….. 25. What skills would be useful to you to improve your livelihood when this project is improved? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………. 26. What skills would be useful for other male and female members of your household? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………………………………. 27. Do you expect any significant positive effects on your livelihood or lifestyle as a result of the project? 27.1 If yes, please describe the nature of the impact. SECTION D – IMPACT ON BUSINESSES (Only for affected Enterprises) 28. Could you please tell us more about any business that you operate from this property? 28.1 What type of business is this? Please describe. ………………………………………………………………………… ………………………………………………………………………… 28.2 How long have you been operating this business? ……… years 28.3 Do you have a business license? Y/N 28.4 What is the average monthly profit? ……… AZN / Month 28.5 How many members of your household work in this business? ………. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_SIAR\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_SIAR – Annex 2, Census and Socio-economic Questionnaire 28.6 How many additional employees do you have? .………. 29. Given the impacts to your business premises that we have just measured; do you expect any negative effects to your business? 29.1 If yes, would the effect be temporary or permanent? Temporary/Permanent 29.2 Please describe the effect. ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………….. 29.3 What measures would be needed to help restore business income from this impact? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………….. 30. Do you expect any positive effect to your business? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………… Interviewer Name Signature Date Survey Processing Checked against Reviewed By Data Entry Database Name Date Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_SIAR\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP_Working Paper on Reporting Format and Procedure for Rap Monitoring and Evaluation Working Paper on Reporting Format and Procedure for Rap Monitoring and Evaluation Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17       CONSULTING SERVICES FOR PREPARATION OF RESETTLEMENT ACTION PLANS (RAP) FOR WATER SUPPLY AND WASTEWATER INVESTMENTS IN FOUR   RAYONS                              Baku, October, 2013  (AGHSU, ISMAYILLI,                           SHABRAN, SIYEZEN)                               Consulting Engineering Overseas Management Group  A division of Aim Texas Trading, LLC www.aimtexas.com           Document Title : Working Paper on Reporting Format & Procedure for RAP Monitoring Status : Draft Date : October, 2013 Project Name : Second National Water Supply & Sanitation Project (SNWSSP) of Republic of Azerbaijan Client : Amelioration & Water Management Open Joint Stock Company (AWM OJSC) of Republic of Azerbaijan Loan Number : 4937 – AZ Project ID : P109961 Consultancy : Preparation of Resettlement Action Plans for Water Supply and Wastewater Investments in Four Rayons (Aghsu, Ismayilli, Shabran, and Siyezen) Consultant : Aim Texas Trading LLC , Engineering Department Overseas Management Group, Central Asia Division Reference : CA\Az\Baku\SNWSSP-Az\RAPs-Draft/ LA&MVP- 387/17 Date of Contract : May 31, 2013                                           SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Table of Contents ……………………………………………………………………………………… i List of Tables …………………………………………………………………………………………. ii List of Figures …………………………………………………………………………………………. ii Acronyms ……………………………………………………………………………………………… iii 1 Background …………………………………………………………………................................ 1 2 Purpose of this Working Paper…………………………………………………………………… 1 3 RAP MonitoringApproach ………………………………………………………………………. 1 3.1 Monitoring Framework …………………………………………………………………… 2 3.2 Performance Indicator ……………………………………………………………………. 2 4 Monitoring Tasks………………………………………………………………………………….. 4 4.1 Internal Monitoring Teams………………………………………………………………… 4 4.1.1 Objectives ……………………………………………………………………… 4 4.1.2 Activities ………………………………………………………………………. 4 4.1.3 Implementation ………………………………………………………………… 5 4.2 RAP Expert Monitoring Panel …………………………………………………………… 6 4.2.1 Objectives ………………………………………………………………………. 6 4.2.2 Activities ……………………………………………………………………….. 7 4.2.3 Implementation ………………………………………………………………… 8 4.3 RAP Completion Audit……………………………………………………………………. 9 5 Reporting ………………………………………………………………………………………….. 9 6 Organization ……………………………………………………………………………………….. 10 7 Logistics …………………………………………………………………………………………… 11 8 Implementation Actions …………………………………………………………………………… 11 9 Review & Reporting Schedule …………………………………………………………………….. 12 i Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P/387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring List of Tables: Table 1 Performance Indicators for Monitoring & Evaluation 2 Table 1 Reporting Requirements 9 List of Figures: Figure 1 RAP Monitoring Organizational Framework ……………………………… 11 Figure 2 Schedule of Internal and External Monitoring …………………………….. 13 ii Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P/387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Acronyms: AWM OJSC Amelioration and Water Management Open Joint Stock Company BP Bank Procedures COI Corridor of Impact EIA Environmental Impact Assessment IDP Internally Displaced Person IFC International Finance Corporation IMT Internal Monitoring Team LA Land Acquisition LAT Land Acquisition Team M&E Monitoring & Evaluation MEI Ministry of Economy and Industry of Azerbaijan MENR Ministry of Ecology and Natural Resources of Azerbaijan MOF Ministry of Finans MOH Ministry of Health of Azerbaijan NGO Non-Governmental Organization PAP Project Affected People PAF Project Affected Family PIU Project Implementation Unit RAP Resettlement Action Plan RC Regional Commissioner RPF Resettlement Policy Framework ROW Right of Way SLCC State Land and Cartography Committee SCRI State Committee for Refugees and IDPs SIAR Social Impact Assessment Report SNWSSP Second National Water Supply and Sanitation Project SUDAC State Urban Development and Architecture Committee SSC State Statistical Committee TOR Terms of Reference WB World Bank WB OP World Bank Operational Policy WSS Water Supply and Sanitation iii Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P/387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring 1. Background This Working Paper is a part of the assignment on preparation of Resettlement Action Plan (RAP) for Water Supply and Waste Water Investments in four rayons (Aghsu, Ismayilli, Shabran, and Siyezen) of Azerbaijan. The project’s social impacts are related to land acquisition and temporary disruption of economic activities and land degradation along the Project corridor, and these will be addressed in the Resettlement Action Plans (RAPs) to be prepared for the Project rayons. Other social impacts are addressed in the Environmental Impact Assessment (EIA) reports prepared for the mentioned investments. Requirements for monitoring and evaluation of the implementation of the RAPs for Water Supply and Waste Water Investments in the Project rayons are defined in the following instruments;  World Bank Operational Policy OP / BP 4.12, and their annexe,  IFC Handbook, and  The laws and regulations of Azerbaijan relating to resettlement and land acquisition. The project RAP will encompass the impacts and mitigation measures for all sub-projects in the project rayons, and establish the broad framework for the project’s resettlement monitoring. This Paper describes the actions and logistical preparations necessary to implement the RAP monitoring and evaluation program. Except where necessary for clarity, this paper does not repeat the content of the RAPs, but refers to them. The logistical demands and time required to conduct RAP monitoring over approximately 899 kilometres of pipeline through four rayons (Aghsu, Ismayilli, Shabran, and Siyezen should not be underestimated. However, if basic data collection, record keeping and grievance procedures are made an integral part of project operations and administration at the outset, the task can be made relatively straightforward. 2. Purpose of this Working Paper The objectives of this Working Paper are as follows;  To describe the concrete steps necessary to implement the monitoring and evaluation program.  To define organizational resources and logistical requirements for internal and external monitoring.  To expand on the framework to be established in the RAP in terms of monitoring implementation. 3. RAP Monitoring Approach Various models for undertaking RAP monitoring are considered as part of the RAP planning phase, with particular consideration of the role and composition of the External Monitoring Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 1|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Panel. A management consensus is reached that the RAP monitoring process should be set up to provide practical guidance and troubleshooting advice to the projects’ management teams on how to solve problems that arise during the land acquisition and reinstatement process, rather than simply to identify areas of compliance and non- compliance. For this reason, it was determined that a panel comprised of international resettlement and social development experts would best meet the needs of the project. The Expert Panel will also undertake a compliance review. 3.1 Monitoring Framework There are three components of the RAP monitoring framework for the Project; 1. Internal Monitoring by Environmental and Social Experts of AWM OJSC’s in conjunction with the environmental and social experts of the Consultant, and augmented by inputs from community affected. 2. Monitoring by a three persons Expert Monitoring Panel. 3. RAP completion audit (External Monitoring) by an Independent Expert Monitoring Panel. However, only the first two components will be fulfilled within the performance period of this assignment. 3.2 Performance Indicators The following subjects, indicators, and variables are the key instruments for arranging a RAP monitoring report; Table 1: Performance Indicators for Monitoring & Evaluation Subject Indicator Variable 1 Land Acquisition of Area of cultivated land acquired for Land project development. Area of communal land acquired for project development. Area of private land acquired. Area of government land acquired. 2 Buildings / Acquisition of Number, type and size of private buildings Structures Buildings acquired. Number, type and size of community buildings acquired. Number, type and size of government buildings acquired. Acquisition of Number, type and size of other private Other Structures structures acquired. Number, type and size of other community structures. 3 Trees & Crops Acquisition of Number and type of trees Trees Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 2|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Destruction of Crops destroyed by area, type and Crops ownership 4 Compensation, Compensation Number of owners compensated by type of Reestablishment and loss. and reestablishment Amount compensated by type and owner. Rehabilitation of affected Number of replacement houses constructed. owners / Size, construction, durability and individuals environmental suitability of replacement houses. Wastewater connection. Water supply Access. Number of replacement businesses constructed. Re- Number, type of plants lost. establishment of Number of seedlings supplied by type. community Number of trees planted. resources 5 Hazards & Introduction of Number of homesteads affected by hazards Disturbances nuisance factors and disturbances from construction. 6 Social/ Changes to homestead structure Demographic Population migration Changes to access Changes to health status Changes to educational status Changes to status of women Changes on Homestead earning capacity 7 Consultation Consultation Number of local meetings. Program Type of issues raised at local meetings. operation Involvement of local community in AWM OJSC development planning. Number of participating NGOs. Information Staffing, equipment, documentation of dissemination Information Centres. Activities of Information Centres. Number of people accessing Information Centres. Information requests, issues raised at Information Centres. Grievances Number of grievances resolved. resolved Number of cases referred to court. 8 Management Staffing Number of Government of Azerbaijan ministry officials available by function. Number of office and field equipment, by type. Procedures in Effectiveness of compensation delivery operation system. Number of land transfers effected. Co-ordination between local community structures, AWM OJSC and Government of Azerbaijan officials. Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 3|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring 4. Monitoring Tasks Social impacts for the project are related to land acquisition, losing seasonal / annual and perennial crops and related incomes, cutting of a number of trees and related incomes, and temporary disruption of economic activities along the pipeline route. The project doesn’t involve resettlement and/or relocation of the people, public / private institution, community and IDPs in all project rayons (Aghsu, Ismayilli, Shabran, and Siyezen). The project will also involve social and economic impacts on the househods and nearby community due to the restriction of use along the pipelines. The monitoring and evaluation procedure should include internal and external monitoring and evaluation. 4.1 Internal Monitoring Teams 4.1.1 Objectives The objectives of internal monitoring are:  To measure and report progress against the RAP schedule,  To verify that agreed entitlements are delivered in full to affected people,  To identify any problems, issues or cases of hardship resulting from the resettlement process, and to develop appropriate corrective actions, or where problems are systemic refer them to the management team,  To monitor the effectiveness of the grievance system,  To periodically measure the satisfaction of project affected people. 4.1.2 Activities It is recommended that an Internal Monitoring Team (IMT) should be established for a period of 36 months by AWM OJSC, and be appointed to monitor and evaluate impelementation of compensation and resettlement process, and to verify that compesation, resettlement and rehabilitation have been implemented inaccordance with the agreed RAP. The IMT should also involve the complaints and grievance procedures to ensure concerns raised by PAPs are addressed. The following activities for the Internal Monitoring Team (IMT) should be undertaken; 1. Liaison with the Land Acquisition Team, construction contractor, local NGOs, and project affected communities to review and report progress against the RAP. 2. Verification that land acquisition and compensation entitlements are being delivered in accordance with the RAP. 3. Verification that agreed measures to restore or enhance living standards are being implemented. 4. Identification of any problems, issues, or cases of hardship resulting from the resettlement process. Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 4|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring 5. Assessment of project affected peoples’ satisfaction with resettlement outcomes through household interviews. 6. Collation of records of grievances, follow-up that appropriate corrective actions have been undertaken and that outcomes are satisfactory. 7. When required, assist with verification activities to support the expert panel, and 8. Preparation of brief quarterly progress and compliance reports for AWM OJSC Management, and the Expert RAP Monitoring Panel to be established for the External Monitoring. 4.1.3 Implementation The way in which internal monitoring is implemented will vary between countries. Internal monitoring teams’ activities might involve 30 percent of time in the office and 70 percent of time in the field. Typical office review activities might entail;  Liaison with Land Acquisition Teams to collate up-to-date information on land acquisition progress such as agreement signing, compensation disbursement, RAP Funds milestones and disbursement, land areas under construction, land areas reinstated and the like.  Review of RAP Fund milestones and disbursement, including liaison with organizations or agencies undertaking RAP Fund activities.  Review of grievance register and basic analysis of grievance types, numbers, and closures, and,  Report preparation. Fieldwork activities might entail:  Liaison with the Community Liaison officers to gather information about progress, incidents, grievances and issues.  Spot checking on complainants who had lodged grievances to verify outcomes of corrective actions.  Liaising with and learning from local NGOs.  Conduct semi-structured interviews with a cross-section of affected households including vulnerable groups to verify receipt of entitlements, review effectiveness of measures, assess satisfaction with outcomes.  Conduct interviews with other key informants, and,  Issues identification. Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 5|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring 4.2 RAP Expert Monitoring Panel It is proposed that the external monitoring panel should consist of, at least, the following international and national resettlement and social development experts for monitoring of the land acquisition and resettlement activities / measures taken in the relevant monitoring (generally semi-annual) period;  An international Resettlement and Land Acquisition Expert,  An international Socio-economic Expert,  A national Legal & Land Acquisition Expert. Given that the duration of the RAP monitoring period is at least 3 years after commissioning of the project, the new panel(s) should be established for the subsequent external monitoring land acquisition and resettlement activities / measures. Whilst the primary purpose of the Expert Monitoring Panel is to provide an external review of implementation activities undertaken in terms of the RAPs, the panel will also provide an overview of other activities undertaken to address social impacts identified in the Social Impact Assessments (SIARs). This will ensure that a holistic overview of the monitoring of social impacts is obtained, any significant issues are not missed, and any necessary corrective actions are applied synergistically. 4.2.1 Objectives The RAP will identify the following objectives for the expert monitoring panel;  To assess overall compliance with the RAP.  To verify that measures to restore or enhance project affected peoples’ quality of life, and livelihood are being implemented and to gauge their effectiveness.  To assess the extent to which the quality of life and livelihoods of affected communities have been restored. The panel will also assess overall compliance with other mitigation measures to address social impacts contained in the SIARs. RAP monitoring reviews will encompass the social management related commitments that require actual visits and interaction with community members in order to verify whether the commitment has been implemented or complied with. Social commitments that can be verified on project sites through discussion with project personnel, and by review of project documentation, will remain as part of the semi-annual monitoring visits. The types of commitments that would be verified within the RAP monitoring program include;  Infrastructure and services - reinstatement of damaged infrastructure and compensation process; project use of water not affecting communities; and roads used by project are maintained in reasonable condition.  Community liaison - Community awareness of project activities; complaints procedures; construction camp rules; recruitment process; project traffic speed limits; Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 6|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring pre-warning of noisy activities and other planned disruptions; procurement process and regular community meetings.  Grievance management – follow up of grievances reported; community awareness of complaints procedures and complaints close out. The main findings of the monitoring visits will be supplied to the RAP Expert Panel ahead of each review. 4.2.2 Activities The RAP will identify the following activities for the expert monitoring panel;  Review of internal monitoring procedures and reporting to ascertain whether these are being undertaken in compliance with the RAP.  Review internal monitoring records as a basis for identifying any areas of non- compliance, any recurrent problems, or potentially disadvantaged groups or households.  Review grievance records for evidence of significant non-compliance or recurrent poor performance in resettlement implementation.  Discussions with AWM OJSC Environmental Department staff, and others involved in land acquisition, compensation disbursement or livelihood restoration to review progress and identify critical issues.  Interview a representative cross-section of affected households and enterprises to gauge the extent to which project affected people’s standards of living and livelihood have been restored or enhanced as a result of the Project.  Interviews with a cross section of affected community people and key informants to ascertain effectiveness of non-RAP related social measures which will be defined in the SIARs and RAP.  Assess overall compliance with the RAP requirements and WB OP 4.12.  Attend close out meetings with the AWM OJSC Environmental Department staff to feed back key findings in each site.  Meet with and liaise with contractor community liaison teams to discuss on-the- ground implementation challenges, and  Receive notification of the changes, and review such changes for social and RAP implications, and advise accordingly. The expert monitoring panel will also undertake a review of the following monitoring activities;  Review the monitoring reports (internal and external), audits and Action Tracking System as a basis for identifying any non-compliance or recurrent problems with respect to overall social issues (including, but not limited to: employment and labour; Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 7|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring economic environment; public safety; and, access to project benefits and opportunities; induced social impacts; health- e.g., vulnerable groups; social conflict and grievance resolution).  Review the monitoring reports as a basis for assessing the overall contribution of these “value-added” programs towards sustainable social development of project affected communities, and  Review the reports on on-going consultation, and other RAP monitoring reports with respect to consultation, as a basis for providing an external overview of the effectiveness of overall community liaison and identifying any critical issues that need to be addressed. 4.2.3 Implementation The logistics and time that would be taken for the three person Expert Monitoring Panel to visit (as a panel) all three countries every six months would be onerous on the project and the panel. The following alternative approach will be followed; Every six months;  The Expert Monitoring Panel will initially convene in person and discuss the review agenda - overall and rayon-by-rayon.  Each Expert Monitoring Panel member will then travel to one of the four rayons along - this will be done on a rotational basis so that each panel member will review a different rayon, each six monthly period.  In-country, a panel member will; o Spend time in the project office reviewing internal monitoring reports, grievance registers, interviewing internal monitoring team members, project / government officers, NGOs as necessary to assess functioning of monitoring and grievance systems, assess progress against the RAPs and social issues addressed in the SIARs and identify issues arising. o Brief/ prepare terms of reference for asset and livelihood restoration verification surveys, when required. o Spend a period in field interviews with affected people, local NGOs, key informants, project field staff, contractor’s Community Liaison Officer(s), and the like  All panel members will then re-convene to run through rayon findings and develop key conclusions and recommendations.  Panel members will return to home offices to draft and finalize the semi-annual external monitoring report, and  All panel members would sign-off on the final draft of each report. Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 8|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Based on the above, the input from each expert monitoring panel member would be approximately 30 days per semi-annual monitoring report. The report will include an overview section which brings together key themes, and discusses, explains differences in approaches and other rayon issues. Expert Panel review reports will be available for public disclosure within 60 days of field trips having been completed. 4.3 RAP Completion Audit A key objective of the RAP is that resettlement actions and mitigatory measures should lead to sustainable restoration or enhancement of affected peoples’ pre-project living standards and income levels. At such time as affected peoples’ quality of life and livelihood can be demonstrated to have been sustainably restored, the resettlement process can be deemed “complete”. Resettlement planning for the project assumes that livelihood restoration of affected landowners will be complete when the productivity of agricultural land affected by pipeline construction has been fully restored and community and all cash and in-kind compensations are delivered to all PAPs. This is anticipated to occur within three years of project construction completion. It is proposed that the resettlement completion audit be conducted by the Expert RAP Monitoring Panel 36 months following project construction completion or at such time as the Expert RAP Monitoring Panel determines affected peoples’ living standards, and income levels have been fully restored, or all cash and in-kind compensations are delivered to all PAPs, whichever occurs earlier. 5. Reporting Reporting Requirements are defined in the following Table. Table 2: Reporting Requirements To be prepared Report Type Frequency For Recommendation By Internal RAP Quarterly, 36 AWM OJSC’s AWM OJSC 10-15 page report (plus Monitoring months after Internal Monitoring management; may supporting documentation) Report construction Team (IMT) also be reviewed by summarizing progress completion, or Expert Rap against the RAP; outline of at such time as Monitoring Panel any issues and agreed related living during RAP Semi- actions; standards & annual monitoring summary schedule of livelihood reviews grievance status; restoration & minutes of any stakeholder all cash / in- or affected people kind consultations or meetings. compensation are complete. External RAP Semi-annual, Expert RAP AWM OJSC and 25-35 page report (plus Monitoring 36 months Monitoring Panel, WB Supporting Report after comprising 3 documentation) Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 9|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring construction international Full findings to be summarizing completion, or resettlement and made available assessment of progress at such time as social development publicly after towards living standard living consultants submitting to the restoration, livelihood standards & AWM OJSC. restoration. livelihood restoration & WB OP / BP 4.12 all cash / in- compliance. kind compensation Discussions of any are complete. RAP and social issues of concern, Identification of any areas of non-compliance and agreed corrective actions. Summary of resettlement status. Identification of any areas of non-compliance by dialogue with communities. RAP 36 months Expert RAP AWM OJSC and RAP Completion Audit to Completion after Monitoring Panel WB verify AWM OJSC will Audit Report construction comply with undertakings completion, Full findings to be defined by the RAP and that or at such made available land acquisition and time as the publicly after compensation has been Expert RAP submitting to the completed in accordance Monitoring AWM OJSC. with the WB OP / BP 4.12 Panel assess principles. living standards & livelihood restoration & all cash / in- kind compensation are complete. Expert RAP Monitoring Panel assess living standards & livelihood restoration is complete. 6. Organization An organizational framework for the AWM OJSC’s RAP monitoring is illustrated in the following Figure; Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Figure 1: RAP Monitoring Organizational Framework 7. Logistics For each semi-annual visit by an expert panel member, the following types of logistical support will be required to cover 3-4 days of office reviews and approximately 7-10 days of fieldwork. Semi-annual visits will occur for the three- year period after construction completion, or at such time as living standards & livelihood restoration & all cash / in-kind compensation are complete.  Visa and arrivals documentation,  HSE and security inductions,  In-country transport,  Orientation / local guides – for locating particular land parcels or affected households or officials,  Interpreting and occasional translation of documents, and  Field accommodation. 8. Implementation Actions Key actions for implementing the monitoring process are as follows;  Review and firm up monitoring arrangements for the Project rayons,  Prepare Terms of Reference for internal monitoring (where required), Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring  Confirm RAP monitoring budgets (all Project rayons),  Confirm composition and commission RAP Expert Monitoring Panel members,  Convene RAP Monitoring Panel to agree (i) monitoring protocols; (ii) input, output, process and outcome performance indicators; (iii) basic report formats; and, (iv) internal monitoring team training requirements,  Update monitoring budgets and identify associated logistical support requirements,  Prepare and conduct internal monitoring team training sessions,  Walk-through fieldwork and first internal monitoring report preparation (all four Project rayons), and  Conduct first external monitoring review. 9. Review & Reporting Schedule An indicative program for ongoing monitoring reviews and report delivery is summarised in following Table. The timing varies slightly from the RAP in order to;  Shift external monitoring reviews outside of periods of sever weather in the country of in the region, and  To reflect the fact that the first internal monitoring review will be late November, 2013 as to be documented in the RAP. Some notes on the program are as follows;  The schedule below assumes that the construction is completed within a three year construction period from first quarter of 2012 for Aghsu and Ismayilli rayon, and second quarter of 2011 for Shabran and Siyezen.  Internal review reports should be completed and available ahead of the semi- annual expert monitoring reviews.  In the event, the expert consultant team determines that livelihood restoration is completed earlier than the second quarter of 2017; the Expert Panel can perform the Completion Audit at that time. Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen LA&MVP_Working Paper on Reporting Format & Procedure (WPRF&P) for RAP Monitoring Figure 2: Schedule of Internal and External Monitoring 2011 2012 2013 2014 2015 2016 2017 Quarters 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Aghsu C o n s tru c tio n 2 Ismayilli P e rio d 3 Shabran 4 Siyezen 1. Internal Review Review M o n ito rin g E v en ts Review Period Report Issued 2. External Review Review Review Period Report Issued 3. Completion Audit Aim_Texas_Trading\OMG\Az\Baku_LA&MVP_WPRF&P\387_17 1|Page SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment Terms of Reference of the Assignment Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment TERMS OF REFERENCE FOR THE SOCIAL IMPACT ASSESSMENT REPORTS (SIARS) & LAND ACQUISITION AND MONETARY VALUATION (PLAN) REPORTS (LA&MVP) FOR WATER SUPPLY AND WASTEWATER SYSTEM INVESTMENTS IN 4 RAYONS (SHABRAN, SIYEZEN, AGHSU, ISMAYILLI) WITHIN SECOND NATIONAL WATER SUPPLY AND SANITATION PROJECT (SNWSSP) Project Background The Government of Azerbaijan is implementing the Second National Water Supply and Sanitation Project. The objective of the Project is to improve access to safe, reliable, and sustainable water supply and sanitation (WSS) services in 8 regions (rayons) (Aghsu, Ismayilli, Shabran, Siyazan, Jalilabad, Masalli, Lerik, and Yardimli) across Azerbaijan. The project is part of the Government’s efforts to improve infrastructure services in order to improve the living conditions of people in secondary towns and cities and to support local economic growth and poverty reduction. Objective The objective of this assignment is to prepare Social Impact Assessment Reports (SIARs) & Land Acquisition and Monetary Valuation Reports for any sub-project sites, where construction and rehabilitation activities under the project will entail land acquisition. This assignment includes 4 project sites such as Aghsu, Ismayilli, Shabran and Siyezen rayons. The assignment also entails development of Land Acquisition (LA) monitoring procedure and preparation and disclosure of LA monitoring reports. All reports will be prepared in accordance with the Resettlement Policy Framework (RPF) developed for this project, which is attached as an annex to this TOR. Description of the Services The aim of this assignment is to support improvement of SNWSSP of Azerbaijan, and reduce the adverse environmental and social impacts of the project (SNWSSP). Duration of the services will be 7 (seven) months. The Assignment will include the following tasks. Task 1: Social Impact Assessment Reports (SIAs) for each of the project rayons, Task 2: Preparation of Land Acquisition and Monetary Valuation (Plan) Reports (LA&MVPs) for each of the project rayons, Task 3: Development of Land Acquisition (LA) monitoring procedure, Task 4: Preparation and disclosure of LA monitoring report after 6 months from the assignment start. The Consultant will work on the tasks in close cooperation with the Social and Communication Coordinator of the PIU and the Public Relations officers of Sukanal Departments in each rayon. Major elements of the tasks are described below. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment Social Impact Assessment Reports (SIARs) To identify and assess the magnitude of potential impacts associated with or resulting from Project activities, the Consultant will obtain from the Client (i) the design plans for the construction and rehabilitation works at each sub-project (ii) the cadastral maps showing land ownership at the sites, and will assess the following 1. Identify sources of impacts and the impacts themselves that are generated by any aspect of the Project; 2. Create a census of persons potentially negatively affected by the project, with an inventory of land and other property assets, which may be lost as a result of the project activities; 3. Liaise with the SNWSSP team to discuss alternative designs, which would mitigate the those negative project impacts and losses 4. Create a profile of project affected persons (PAP) including the baseline conditions before the project in terms of their living conditions and livelihood situation; The impacts will be subject to assessment in terms of duration, likelihood and consequences. The impacts will be specified for the preparatory works, closure / decommissioning, construction / rehabilitation works, normal operation, operation in case of accidents and emergency situations. Development of Land Acquisition and Monetary Valuation Reports (LA&MVPs) The Consultant will work on this task in close cooperation with the Social Communication Specialist of the PIU. is the LA&MVPs are the document, in which the PIU specifies the procedures that it will follow and the actions that it will take to mitigate adverse effects, compensate losses of lands to be acquired, and provide development benefits to persons and communities affected by the project. The key guiding documents for this task are the World Bank Operational Policy 4.12 on Involuntary Resettlement the IFC Handbook for Preparing a Resettlement Action Plan. The Consultant will follow the Resettlement Policy Framework (RPF) prepared for Second National Water Supply and Sanitation Project (SNWSSP) of Azerbaijan in line with OP 4.12 (February 29, 2008). OP 4.12 recognizes that land acquisition and involuntary resettlement is an integral part of project design that should be dealt with from the earliest stages of project preparation based on the following principles;  Land acquisition and involuntary resettlement should be avoided.  Where land acquisition and involuntary resettlement is unavoidable, all people affected by it should be compensated fully and fairly for lost assets.  Land acquisition and involuntary resettlement should be conceived as an opportunity for improving the livelihoods of the affected people and undertaken accordingly.  All people affected by land acquisition and involuntary resettlement should be consulted and involved in resettlement planning to ensure that the mitigation of adverse effects as well as the benefits of resettlement are appropriate and sustainable. The key objective of LA&MVPs for the SNWWS project is to ensure that any potential adverse impacts arising from land acquisition activities are mitigated and, where possible, avoided through early recognition of and response to the issues. The Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment LA&MVRs will ensure that land acquisition and compensation activities within the project meet the WB/IFC policy guidelines and procedures and are in accordance with the national legal framework. The Consultant will prepare Land Acquisition and Monetary Valuation (Plan) Reports (LA&MVPs) based to the following outline: Introduction  Briefly describe the project.  List project components including associated facilities (if any).  Describe project components requiring land acquisition, give overall estimates both for land acquisition and compensation for other assets lost from the project activities. Minimizing Land Acquisition  Describe efforts made to minimize land acquisition.  Describe the results of these efforts.  Describe mechanisms used to minimize land acquisition during implementation. Census and Socioeconomic Surveys  Provide the results of the census, assets inventories, natural resource assessments, and socio-economic surveys.   Summarize consultations on the results of the various surveys with affected people.  Describe need for updates to census, assets inventories, resource assessments, and socio-economic surveys, if necessary, as part of LA monitoring and evaluation. Legal Framework  Describe all relevant local laws and customs that apply to resettlement.  Identify gaps between local laws and World Bank Group policies, and describe project specific mechanisms to address conflicts.  Describe entitlement policies for each category of impact and specify that land Acquisition implementation will be based on specific provisions of agreed (LA&MVPs).  Describe method of valuation used for affected structures, land, trees, and other assets.  Prepare entitlement matrix. Land Acquisition Sites  Does the project require community relocation sites? Have affected people been involved in a participatory process to identify sites, assess advantages and disadvantages of each site, and select preferred sites?  Does the project involve allocation of agricultural land or pasture/rangeland?  Give calculations relating to site requirements and availability for land acquisition.  Describe mechanisms for: 1) procuring, 2) developing and 3) land acquisition, including the awarding of title or use rights to the lands that will partially and/or entirely be acquired for the project needs.  Have the host communities been consulted about the Land Acquisition and Monetary Valuation?  Have they participated in the identification of likely impacts on their communities, appropriate mitigation measures? Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment Income Restoration  Are the compensation entitlements sufficient to restore income streams for each category of impact? What additional economic rehabilitation measures are necessary?  Briefly spell out the restoration strategies (if required) for each category of impact and describe their institutional, financial, and technical aspects.  Describe the process of consultation with affected populations and their participation in finalizing strategies for income restoration (if required).  How do these strategies vary with the area of impact?  Does income restoration require change in livelihoods? Describe the process for monitoring the effectiveness of the income restoration measures.  Describe any social or community development programs currently operating in or around the project area. If programs exist, do they meet the development priorities of their target communities? Are there opportunities for the project proponent to support new programs or expand existing programs to meet the development priorities of communities in the project area? Institutional Arrangements  Describe the institution(s) responsible for delivery of each item/activity in the entitlement policy; implementation of income restoration programs (if require); and coordination of the activities associated with and described in the LA&MVRs.  State how coordination issues will be addressed in cases where land acquisition is spread over a number of jurisdictions? Identify the agency that will coordinate all implementing agencies. Does it have the necessary mandate and resources?  Describe the external (non-project) institutions involved in the process of land acquisition and the mechanisms to ensure adequate performance of these institutions.  Discuss institutional capacity for and commitment to land acquisition.  Describe mechanisms for ensuring independent monitoring, evaluation, and financial audit of the Land Acquisition and for ensuring that corrective measures are carried out in a timely fashion. Implementation Schedule  List the chronological steps in implementation of the Land Acquisition, including identification of institutions responsible for each activity and with a brief explanation of each activity.  Prepare a month-by-month implementation schedule of activities to be undertaken as part of land acquisition implementation.  Describe the linkage between land acquisition implementation and initiation of civil works for each of the project components. Participation & Consultation  Describe the various stakeholders.  Describe the process of promoting consultation/participation of affected populations and stakeholders in land acquisition preparation and planning.  Describe the process of involving affected populations and other stakeholders in implementation and monitoring.  Describe the plan for disseminating LA&MVPs information to affected populations and stakeholders, including information about compensation for lost assets, eligibility for compensation, resettlement assistance, and grievance redress. Grievance Mechanism Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment  Describe the step-by-step process for registering and addressing grievances and provide specific details regarding a cost-free process for registering complaints, response time, and communication modes.  Describe the mechanism for appeal.  Describe the provisions for approaching civil courts if other options fail. Monitoring & Evaluation Procedure The procedure can include internal and external monitoring and evaluation. For the internal monitoring procedure;  Describe the internal/performance monitoring process.  Define key monitoring indicators derived from baseline survey.  Provide a list of monitoring indicators that will be used for internal monitoring.  Describe institutional (including financial) arrangements.  Describe frequency of reporting and content for internal monitoring.  Describe process for integrating feedback from internal monitoring into implementation. For the external monitoring procedure;  Define methodology for external monitoring.  Define key indicators for external monitoring.  Describe frequency of reporting and content for external monitoring.  Describe process for integrating feedback from external monitoring into implementation.  Describe arrangements for final external evaluation. Costs & Budgets  Provide a clear statement of financial responsibility and authority.  List the sources of funds for land acquisition and describe the flow of funds.  Ensure that the budget for land acquisition is sufficient and included in the overall project budget.  Identify land acquisition costs, if any, to be funded by the government and the mechanisms that will be established to ensure coordination of disbursements with the land acquisition and the project schedule.  Prepare an estimated budget, by cost and by item, for all land acquisition costs including planning and implementation, management and administration, monitoring and evaluation, and contingencies.  Describe the specific mechanisms to adjust cost estimates and compensation payments for inflation and currency fluctuations.  Describe the provisions to account for physical and price contingencies.  Describe the financial arrangements for external monitoring and evaluation including the process for awarding and maintenance of contracts for the entire duration of land acquisition process. Annex  Copies of census and survey instruments, interview formats, and any other research tools.  Information on all public consultation including announcements and schedules of public meetings, meeting minutes, and lists of attendees. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 3, Terms of Reference of the Assignment  Examples of formats to be used in monitoring and reporting on land acquisition implementation.  Disclosure schedule and procedure for the land acquisition monitoring reports. Development of Land Acquisition Monitoring Procedure The Consultant will support the PIU during implementation of Land Acquisition (LA) and its monitoring. The internal monitoring of LA implementation will be carried out by the PIU. Regular consultation with affected persons will allow the PIU to monitor the adequacy and effectiveness of the LA's compensation packages, livelihood restoration efforts, and development initiatives. A format for the LA monitoring reports developed by the Consultant should be acceptable for the World Bank and the AWM OJSC of Azerbaijan. A procedure of disclosure of LA monitoring reports will be agreed with the World Bank and the PIU. Preparation and disclosure of LA monitoring report after 6 months from the assignment start. After 6 months from the assignment start, the Consultant in cooperation with the PIU will prepare the LA monitoring report. The monitoring objectives are as follows:  To assess overall compliance with the (LA&MVPs) ;  To verify that measures for restoration or enhancement of project affected comrnunities'/people's quality of live and livelihood are being implemented;  To evaluate effectiveness of the implemented measures and recommend adjustments. Thus the report will describe progress achieved in implementation of the LA and possible suggestions for updating of the (LA&MVPs) . The report will be made available for the public. Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 4, Calculation Details of Costs of Mitigation Measures Calculation Details of Costs of Mitigation Measures INTENTIONALLY LEFT BLANK Aim_Texas_Trading\OMG\Az\Baku_RAPs\SH_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Shabran_LA&MVP – Annex 4, Consolidated Table for PAPs (excel sheet), including cost calculations for mitigation Consolidated Table for PAPs (excel sheet), including cost calculations for mitigation INTENTIONALLY LEFT BLANK Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17