SFG2382 V2 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 February, 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 Revised in : February, 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/SIAR-387/17 Date of Contract : May 31, 2011                                           Aghsu Rayon SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents Table of Contents …………………………………………………………………………………………………………… i List of Annexe ………………………………………………………………………………………………………………. vi List of Tables ………………………………………………………………………………………………………………….. vi List of Figures …………………………………………………………………………………………………………………. vii 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 Ismayilli……………………………………………………………………. 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……………………………………………………………………………. 1.9 1.3 Scope of the Land Acquisition & Monetary Valuation Plan (LA&MVP)………………………………….…. 1.12 1.4 Project Background and measures taken to minimize the project impact………………………………… 1.13 1.5 Methodology……………………………………………………………………………………………………. 1.14 1.5.1 Data Collection……………………………………………………………………………………….. 1.14 1.5.2 Stakeholders Consultations………………………………………………………………………… 1.16 1.5.3 Data Analysis………………………………………………………………………………………… 1.17 1.6 Report Structure ……………………………………………………………………………………………….. 1.18 Chapter II 2 Policies Related to Legal Aspects & Social Safeguards 2.1. Involuntary Resettlement requirements under the World Bank Involuntary Resettlement Policy (OP 2.1 4.12) ……………………………………………………………………………………………………………... 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 i Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents Law on Acquisition of Lands for States Needs dated April 20, 2010 & Presidential Decree 2.2.5 2.4 # dated Feb. 16, 2011…………………………………………………………………………….. 2.2.6 Law on Land Market dated 1999 and Law on Land Reform dated 1996…………………… 2.4 Presidential Decree (10 January 1997, N534) - On Rules about Selling and Buying the 2.2.7 Lands and Presidential Decree (15 March 2002, N274) - On Charter about Rules 2.5 Municipalities` Lands………………………………………………………………………………. Presidential Decree (23 October 2003, N972) - On Additional Steps Relating to 2.2.8 Implementation of Law “On Land Rent” and approving the Rules about the running of 2.5 auctions relating to the allocation (ownership or renting) of state or municipality lands…… Cabinet of Ministers Resolution N158 (1998) – On Establishment of New Normative 2.2.9 2.5 Prices for Land in the Republic of Azerbaijan………………………………………………….. Cabinet of Ministers Resolution N110 (1999) – On Approval of Regulations for an 2.2.10 2.5 Inventory Cost Estimation of Buildings Owned by Natural Persons…………………………. Cabinet of Ministers Resolution N42 (March 15, 2000) – On Some Normative and Legal 2.2.11 2.5 Acts Relating to the Land Code of the Republic of Azerbaijan………………………………. 2.2.12 Land Tenure and Title…………………………………………………………………………….. 2.6 2.2.13 Power of Eminent Domain………………………………………………………………….…….. 2.6 2.3.13.1 Legal Procedure for Compulsory Purchase of Land…………………………….. 2.6 2.3 Compensation Valuation Methods in Azerbaijan…………………………………………………………… 2.8 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 Comparison of Azerbaijan Government Policy and WB Policy on Resettlement (WB OP 4.12 on 2.4 2.9 Involuntary Resettlement)……………………………………………………………………………….......... 2.4.1 Resettlement Planning & Procedural Requirements…………………………………………… 2.10 2.4.2 Public Consultation and Participation……………………………………………………………. 2.10 2.4.3 Compensation Eligibility…………………………………………………………………………… 2.11 2.4.4 Loss compensation at at replacement cost…………………………………………………….. 2.12 2.4.5 Income Restoration………………………………………………………………………………… 2.12 2.4.6 Extent of Compensation and Resettlement Assistance……………………………………….. 2.13 2.4.6 Legal Assistance to Project Affected People (PAPs)………………………………………….. 2.13 2.5 Project Measures relating to Compliance with WB/IFC Requirements……………….…………….……… 2.14 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 Land Acquisition 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 ii Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents 3.1.2.2 Construction Phase Negative Impacts……………………………………………... 3.5 3.1.2.3 Operation Period Negative Impacts………………………………………………… 3.7 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…………………………………………… 3.12 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 3.12 (AGFs)…………………………………………………………………………………. 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 Project affected Public/Private Non-residential Plots: Commercial / Industrial, 3.14 and Public Institutions 3.2.2.7 Affected Rivers’ Flood Plains………………………………………………………... 3.15 3.2.2.8 Municipal & Governmental Useless Lands to be affected by the Project 3.15 3.2.3 3.15 3.2.3.1 Losing Income from the Loss of Annual/Seasonal and Perennial Crops due to Restriction of Use with Establishing Servitude on the Private Lands to be 3.15 Affected……………………………………………………………………………….. 3.2.3.2 Losing Income from the Loss of Annual / Seasonal Crops due to Routine 3.16 Maintenance Activities……………………………………………………………….. 3.2.3.3 Privately owned/used/possessed Land Parcels that are severely affected by 3.16 the Project 3.2.3.4. Project affected Vulnerable PAPs………………………………………………….. 3.16 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 and…………………………………………………………………………………………….. 4.7 iii Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents Chapter V 5 Mitigation Measures 5.1 Project Resettlement Principles and Scope of Mitigation…………………………………………………. 5.1 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………………………………………………………………………. 6.3 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 6.12 Programs………………………………………………………………………………………………………… Chapter VII 7 Cost Calculation For Mitigation Of Negative Impacts 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 Calculation for Private Lands Affected…………………………………………………………………. 7.5 7.4 Costs of Mitigation Measures for Governmental and Municipal Lands Affected by the Pipeline 7.7 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\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Consolidated Table for PAPs (excel sheet), including cost calculations for mitigation List of Tables : Chapter I Table 1,1 Predicted Population Figures to be used in the Systems Design…………………………………….... 1.3 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 Population Profile along the project elements, by 2012 and the number of directly affected PAPs Table 1.9 1.10 according to the locations…………………………………………………………………………………… Table 1.10 Household Income by Sector in the Project Area…………………………………………………….….. 1.11 Table 1.11 Comperative Consumption Expenditures of Households in Ismayilli…………………………………… 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………………………………………………………………………………………………… 1.17 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 during the entire project cycle……………………………… 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 Summary of Impacted Private Agricultural lots Losing Part of the Seasonal / Perennial Crops (20-m Table 3.8 3.14 Project Corridor)……………………………………………………………………………………………….. Agricultural Properties that will be impacted, and are owned by Districts Municipalities and Table 3.9 3.14 Government (20-m Project Corridor)……………………………………………………………………… Residential Plots & Homestead Lands which will be impacted by the Project in the City (within 6-m Table 3.10 3.14 Project Corridor)…………………………………………………………………………………………………. Project Affected Non-residential Plots; Commercial / Industrial, and Public Institutions located within Table 3.11 3.15 6-m Project Corridor ……………………………………………………………………………………………. Table 3.12 Project Affected River Flood Plains (within 20-m and 6-m Project Corridor)……………………………. 3.15 Municipal & Governmental Useless Lands which will be Impacted by the Project (within 20-m and 6- Table 3.13 3.15 m Project Corridor)……………………………………………………………………………………………… Table 3.14 Properties to be impacted from the Restriction of Use and Planting Restriction……………………….. 3.16 Properties to be Impacted by the Loss of Annual/Seasonal/Perennial Crops due to Right of Access Table 3.15 3.16 for routine maintenance activities throughout the Operation Period………………………………………. Table 3.16 List of Land Parcels severely Affected by the Project………………………………………………………. 3.16 Table 3.17 List of Vunerable PAPs………………………………………………………………………………………… 3.17 Table 3.18 Summary of the Project of Impacts…………………………………………………………………………… 3.17 v Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents Chapter IV Table 4.1 Stakeholders’ Statements…………………………………………………………………………………… 4.3 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 and Severely Affected PAPs…………………………………………. 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 – 20-m and 6-m strip over the Pipelines & Restriction of Use 5.12 over 20 m corridor for 20 Years…………………………………………………………………………….. Table 5.5 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 ……………………….. 5.12 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……………………………………… 6.11 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 for 1 Hectare Agricultural Land and Homestead Lands……………………….. 7.4 Table 7.8 Severe Impact Allowances …………………..………………………………………………………….. 7.4 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………………… 7.5 Table 7.11 Total Costs of the Mitigation Measures for Private Agricultural Lands Affected………………………. 7.6 Table 7.12 Costs of Mitigation Measures for Private Residential & Homestaead Lands Affected……………….. 7.6 Table 7.13 Costs of Mitigation Measures for Private Non-residential Lands Affected……………………………... 7.7 Table 7.14 Costs of Mitigation Measures for Government and Municipal Lands…………………………………... 7.7 Table 7.15 Costs of Public Awareness Programs……………………………………………………………………… 7.9 Table 7.16 Costs to be Incurred during Performance of Valuation Commission…………………………………… 7.9 Table 7.17 Estimated Costs to be Incurred during Performance of Valuation Commission………………………. 7.9 Table 7.18 Total Costs of Mitigation Measures………………………………………………………………………… 7.10 List of Figures : Chapter I Figure 1.1 Project Corridor in Ismayilli……………………………………………………………………………. 1.2 Figure 1.2 Project Corridor and ROWs…………………………………………………………………………… 1.3 Cadastral Maps designed by Cadastre Department of SRERS, showing land ownerships and Figure 1.3 1.15 part of the lots that are affected by the Project activities……………….………………………….. vi Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents Chapter II The legal procedures for compulsory purchase of land (Eminent Domain), (Source: Civil Figure 2.1 2.7 Procedures Code of Azerbaijan, September 01, 2000)…………………………………………… Figure 2.2 Types of Ownership and Livelihood Interest in Land in Azerbaijan……………………………… 2.11 Chapter III Pipelines (Drinking water transmission main and Interceptor sewer) Protection Zone, see Figure 3,1 3.8 Table 2.4 and 2.5 (SNIP II.04.02 (and 0.3) – 84 and 85)…………………………………………... Tree Planting Schedule in Restricted Zone along the Drinking Water Transmission Main and Figure 3,2 3.9 Interceptor Sewer………………………………………………………………………………………. Chapter VI Figure 6,1 Implementation Mechanism (Illustrated by Consultant’s Team)…………………………………… 6.2 vii Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 SCRI State Committee for Refugees and IDPs SCPI State Committee for Property Issues SLCC State Land and Cartography Committee SIA Social Impact Assessment 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\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. 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 ix Aim_Texas_Trading\OMG\Az\Baku_RAPs\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Table of Contents and advantages of another's property short of the destruction 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\ISM_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK EXECUTIVE SUMMARY Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Aghsu. 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 Aghsu rayon of Republic of Azerbaijan, and specifically in rayon centre and surroundings. The rayon is situated in the foothills of the Great Caucasus Mountains, and the Aghsu region of Shirvan plain. The population of the Aghsu rayon including the urban and rural areas has been recorded as 70,882 inhabitants at the population census conducted in 2009. Its density becomes 69 persons per km2. The rayon has one town (rayon centre city – Aghsu city) and 78 villages. The project corridor passes through an area that collectively sustains almost 30 % of the rayon's population (approx. 21,714 inhabitants by 2010 and 24,952 by 2030) for water supply and sewerage systems. The relief of the project corridor in Aghsu rayon varies from 174.50 masl on raw water source to 207.70 at the northern part of the city, and 84.78 masl at WWTP site. The service area both for water supply and waste water systems is limited with the city and its prospective development areas indicated in city land use and master plans. 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 Aghsu Population Values in Future Year Water Supplied (Pirhasanlı Wastewater Treatment (Muradli Sewerage Served Included) and Tecile Included) 2009 23.130 20.899 20.899 2015 23,680 22.100 22.100 2020 23,800 23.100 23.100 2025 24,500 23.800 23.800 2030 25,000 24.200 24.200 Source: Feasibility Study The Study Area Boundaries 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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 drinking water transmission main travels 17.467 km along a corridor from pump station to the city border. The project affected persons (PAPs) along the Project corridor are 483. They belong to 105 families and were interviewed in the household survey during the field studies. Total of 25.12 hectares of land will be affected by the project along the 20-m pipeline corridor, only 5.30 (21.12% 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 19.82 hectares of lands (78.90% 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 following Table). 5.30 hectares of lands will permanently be acquired for above ground facilities (AGFs) for siting of pump sation and its access road at the catchment, 50 m3 buffer reservoir and its acces road nearby Gursulu village, 1500 m3 reservoir North of Elabad village, and WWTP and its Access road South of Muradli village. Details of Affected Public/Private Land Parcels and PAPs Property Im pacted Impact Modality Number of Affected Number of Restriction of Use for Right % of Land Use Category Affected Fam ilies Affected Permanent Acquisition of Access during operation % of Affected Nos Area (PAF) People (PAP) of Land period (20 Years) w ith Affected Area Servitude Area Ha Nos inh. Nos Area -ha % Nos Area -ha Private 1 Agricultural lots 69 8.36 69 318 0 0.00 0.00% 69 8.36 33.30% 2 Residential & Homestead Plots 33 0.54 33 151 0 0.00 0.00% 33 0.54 2.17% 3 Non-residential plots 3 0.17 3 14 0 0.00 0.00% 3 0.17 0.68% Sub-total 105 9.08 105 483 0 0.00 0.00% 105 9.08 36.14% Public 1 Municipal Grazing 32 10.22 0 0 4 4.59 18.27% 28 5.63 22.41% 2 Municipal & Gov. Useless 5 0.27 0 0 0 0.00 0.00% 5 0.27 1.06% 3 Gov. & Municipal Non-residenti 9 0.34 0 0 0 0.00 0.00% 9 0.34 1.34% Gov. River Flood Plain 2 0.71 2 0.71 2.83% 0 0.00 0.00% 5 Gov & Municipal - Agricultural 9 4.51 0 0 0 0.00 0.00% 9 4.51 17.94% Sub-total 57 16.04 0 0 6 5.30 21.10% 51 10.74 42.76% Total Land Affected 162 25.12 105 483 6 5.30 21.12% 156 19.82 78.90% Source: Feasibility Study, Contractor’s records, SRERS, and Consultant’s Surveys. The project impact will potentially be extended over 162 project affected land parcels; among them 105 are agricultural (69), residential and homestead (33) and non-residential plots (3) under private ownership, possession or leased from the government (State or Municipality). The magnitude of project impact in terms of land acquisition and resettlement is as follows   Summary Magnitude of Project Impacts 1  Physical Resettlement  None  2  Economic Displacement  None  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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Executive Summary 2  Purchase of a part of a private land  None  3  Temporary long-term impact  156  4  Temporary long-term impact on private parcels  105  5  Temporary short-term impact on private parcels  105  6  Structures (residential, supplementary, fences/walls) impacted  0  7  Commercial facilities affected None  8  Business stoppage (temporary /permanent) None  9  Loss of salaries/wages None  10  Annual crops affected 69  11  No of PAHs with affected perrenial crops 3  12  Total number of project affected fruit bearing perennials 676  13  PAHs requiring assistance during title registration in SRERS 14  14  Affected land parcels with unknown owner/user 38  15  Vulnerable PAPs 27  16  Severely affected land parcels (more than 10 % of income generating land affected) 63    2. Socio-Economic Environment in Aghsu According the results of the Consultant’s census and socio-economic survey, the total number of project affected persons (PAPs) is 483, and PAHs 105 in the Corridor of Impact (COI). Approximately 32% (159) PAPs are located in Aghsu city. The project will affect 324 PAPs (68% of PAPs) in villages located along the drinking water transmission main and interceptor sewer. All 324 PAPs are farmers. 2.8% of PAPs (14 persons) subsisting three (3) project affected private non-residential parcels (commercial)2 are also located in the city. The average age of household heads within the RoW is 48 years. Among the 105 PAFs the youngest household head is 23 years old while the oldest is 72 years old. Most of the household heads (76%) are married while 16% are widow/er. Among the households surveyed, 85 % are male headed while 15% (16 famillies) are female headed ones3, 5 of women headed households are listed as vulnerable since they are widows and have no grown up children to support them. The majority of the PAPs (household heads) in the city are the government employee (49%). 21.1% are the employee in private sector while 11% of household heads are traders in the local market, 6.6% are retired; 4.1% work persons/craft persons and 8.2% are own retail business. A majority of dwellings (72%) are comprised of two or three rooms, and very few have an inside toilet (4.5%). While 62% of total households has running water, 22% of them has private water well in their plot. The household size by respondent households is 4.60, assuming each unclaimed4 land supports one household and each household shelters 5 people. 2 All of three non-residential parcels are commercial parcels located in the city. Pipelines travel on the lands of these parcels within the pipeline RoW of 6m and no damage occurres on the commercial premises and their attachments. No blockage also occurres on the access of all three premises during the construction period, therefore, no income loss occurred by the project activities on the income of the owners. 3 Based on the census and socio-economic survey results project affected female headed HHs do not qualify as vulnerable groups; these females confirmed they are not bread-winners as their grown up children provide them full support. Nevertheless, 5 of women headed households are listed as vulnerable since they are widows and have no grown up children to support them 4 Unclaimed refers to land parcel registered at the State Cadastre that does not belong to Municipality or State, but through land reform was alienated to local households. However, legitimate possessor has not yet applied to undertake initial registration of private ownership rights or update of the title. Notable that "unclaimed" land parcel is registered according to its cadastre coordinates, land survey drawing is available showing factual area of occupied land and designated use of a given land parcel. The ownership column is filled in with the word unlcaimed"instead of the name of a landowner. The PIU will coordinate with State Cadastre and Real Property Registration Body to assist PAPs in the process of legalization and title registration prior to processing Sales and Servitude Agreements. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Executive Summary 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 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 Land Acquisition and Monetary Evaluation 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 compensation and the As a result of census, socio-economic survey and inventory of project affected assets the "unclained" project affected land parcels are divided into two groups: a. the possessors/land user is identified and included in the list of PAPs; b. possessor/user of " unclaimed" land parcel is unknown, In the first case the identified PAPs will be assisted in legal procedures required for obtaining ownership title to land/real property and receive relevant cash compensation after signing official agreements; The principle of escrow accounts will be exercised in the second case, the amount of cash compensation will be deposited on the specially account designated by AWM OJSC and will be issued only after the legitimate landowners are identified, and registered and legally valid extract is presented. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Executive Summary land acuisition and compensation budget is 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. The rayon representative of AWM OJSC, and the social staff of the project will be responsible to address minor matters. At the next level, complaints will 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 will 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 land acquisition, compensation, land use restrictions and possible 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 also use its web-site to disseminate the information of this Plan. 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 systems5/ 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 item). 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 Aghsu rayon are given in the following Table. Total Costs of Mitigation Measures 5 Anticipated livelihood impacts of the project are addressed in Chapter 3 and 5, compensation and mitigation measures are addressed and addressed in Chapters 5 and 7. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Executive Summary Costs of Mitigation Measures Cost Items US$ 1 Costs of Mitigation Measures for the Lands to be permanentley Acquired for AGFs 7,600.29 2 Costs of the Mitigation Measures for Pirivate Agricultural Lands Affected 191,012.28 3 Costs of Mitigation Measures for Private Residential & Homestaead Lands Affected 171,129.14 4 Costs of Mitigation Measures for Private Non- residential Lands Affected 3,950.24 5 Costs of Mitigation Measures for Governmental and Municipal Lands Affected 59,348.80 6 Public Awareness Programs(estimated) in Rayon 3,000.00 7 Costs to be Incurred during Performance of Valuation Commision (VC) & Land Acquisition Commission (LAC) 44,000.00 to be established in the Rayon 8 Estimated Notarization Costs 35,640.00 9 Social Safeguards Training Program 3,000.00 10 Cost for Monitoring and Evaluation (M&E) of Social Safeguards including Grievance Redress Mechanism 15,000.00 (GRM) 11 Provisional Sum for Additional Measures 55,000.00 Total Costs of Mitigation Measures 588,680.74 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 February, 2016 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 AWM OJSC of AZERBAIJAN/WORLD BANK 1 INTRODUCTION & METHODOLOGY Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Aghsu. 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 potable 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 Aghsu rayon of Republic of Azerbaijan, and specifically in rayon centre and surroundings. The rayon is situated in the foothills of the Great Caucasus Mountains, and the Aghsu region of Shirvan plain. The population of the Aghsu rayon including the urban and rural areas has been recorded as 70,882 inhabitants at the population census conducted on year 2009. Its density becomes 69 persons per km2. The rayon has one town (rayon centre city – Aghsu city) and 78 villages. The project corridor passes through an area that collectively sustains almost 30 % of the rayon's population (approx. 21,714 inhabitants by 2010 and 24,952 by 2030) for water supply and sewerage systems. The relief of the project corridor in Aghsu rayon varies from 174.50 masl on raw water source to 207.70 at the northern part of the city, and 84.78 masl1 at WWTP site. 1 masl - meters above sea level. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology Figure 1.1: Project Corridor in Aghsu The service area both for water supply and waste water systems is limited with the Aghsu 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology Table 1.1: Predicted Population Figures to be used in the Systems Design Aghsu Population Values in Future Year Water Supplied (Pirhasanlı Wastewater Treatment (Muradli Sewerage Served Included) and Tecile Included) 2009 23.130 20.899 20.899 2015 23,680 22.100 22.100 2020 23,800 23.100 23.100 2025 24,500 23.800 23.800 2030 25,000 24.200 24.200 Source: Feasibility Study 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 Aghsu 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 Aghsu 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 Aghsu rayon administrative borders. In this respect therefore, all activities concerning compensation will be centred at the rayon centre – Aghsu city in which the Project elements traverse. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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. 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, including drinking water transmission main from pump station to the distribution reservoirs, feeder and distribution mains, lateral and collector sewers in the city, interceptor sewer and outfall line for treated waste water, ancillary facilities such as valve, air vent, discharge, outflow chambers, and manholes. 3. Temporary facilities, to be used during construction period. Land Requirement for Above Ground Facilities (AGFs) Project’s above ground facilities (AGFs) include;  Pump Station at the catchment,  Water Reservoir for buffering  Water Reservoirs for distribution,  Above ground fire hydrants,  Waste Water Treatment Plant and ancillary facilities, and  Permanent Access Roads. Land Requirement for ROW of the Pipelines According to SNIP II.04.02-84, the buffer zone (protectionzone) for the drinkable transmission main is 20 m wide, 10 m on either side of the center-line of the pipe from raw water catchment to the drinkable water distribution reservoir North of Aghsu city (see following Table). In a similar manner, the buffer for the interceptor sewer is 20 m wide, 10 m on either side of the center-line of the pipe from Aghsu to Wastewater Treatment Plant (WWTP) nearby Muradli village South of the city (see following Table and SNIP II.04.03-85). 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 Pipeline of the center-line 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 25.12 ha is composed of 162 land plots. The following table shows breakdown of project affected land parcels according to land tenure per type of impact. Table 1.3: Breakdown of Project Affected Land Parcels according to Land Tenure per Type of Impact Affected area Form of land Type of impact on Private land Municipality State- Total per Impact per type of acquisition land/ Land Tenure parcel land owned land Category impact (ha) Permanent Sales - 4 2 6 5.30 acquisition Agreement Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology (purchase/sales agreement) Temporary long- Servitude term impact Agreement (easement 105 41 10 155 19.82 /servitude agreement) Totals 105 45 12 162 25.12 Among the total 162 project affected land parcels there are 105 private land parcels, 45 Municipal, and 12 State-owned land parcels. Out of 45 Minicipality land parcels 4 will be permanent acquired and 41 will subject to easement. As per the 12 State-owned project affected land parcels 2 will be permanenty acquired, while easement will be established with regard to remaining 10 State-owned land parcels. 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. Instead of purchase, land will be temporarily acquired through long-term easements; i.e. Servitude Agreements will be eneterd between PAP and Azersu to obtain the leave way 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 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 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, 5.30 ha composed of 6 land parcels: 4 Municipal and 2 State-ownedland parcel will be acquired permanently for above ground facilities. 155 easements will be established to 105 private land plots, 41 Municipal and 10 State-owned land parcels through processing of Servitude Agreements to regulate restriction of use and right of access during construction and operation period to be applied to 19.89 hectares of lands (78.96% of affected lands). Landowners including all 105 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 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. 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology The drinking water transmission main travels 17.467 km along a corridor from pump station to the city border, 12.80 km of which travel within the ROW of Aghsu-Yevlakh highway, Padar – Gursulu village connection road, and open irrigation channel which lies at the bottom of Langabiz range. Although 25.12 hectares of land will be affected by the project along the 20-m pipeline corridor, only 5.30 (21.12% 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 19.82 hectares of lands (78.90% of affected lands), establishing servitude which will be effective to the end of project operation period (see Table 3.4). 5.30 hectares of lands will permanently be acquired for above ground facilities (AGFs) for siting of pump sation and its access road at the catchment, 50 m3 buffer reservoir and its acces road nearby Gursulu village, 1500 m3 reservoir North of Elabad village, and WWTP and its Access road South of Muradli village. 1.2 Socio-economic Environment in Aghsu The rayon centre Aghsu city is located at the 162th km of Baku – Shamaxi - Yevlakh highway. Road Exploitation Office (REO) of the rayon reports that the Rights of Way (RoW) of the highway is 60 m (30 m + 30 m according the road center line). REO reports that the traffic in line with Aghsu is currently at about 2500 – 3000 vehicle per day (vpd) on the highway. 38 km of this highway section travel in the rayon area. There is no railway in the rayon area. The general land form of Aghsu has evolved from salty sediments, and the area is generally known as steppe, which is characterized by relatively slow infiltration capacity. However, accumulative alluvial plains are more frequent around the flood plains of the rivers such as Girdimanchay, Aghdarchay, Nazircahy, and Aghsuchay rivers. The natural slope of Aghsu area varies from between one and five meters per km. The land form is even with shallow river-beds. Groundwater is found at varying depth with low mineral content. Mountainous areas have been characterized with rivers, valleys and the landscape of the complex fragmented ravines, and hights vary between 700 – 1000 masl. The project area considered as semi-desert and dry steppe climate and is peculiar for warm winter and dry warm summer (Aghsu Meteorological Station). The number of non-frost days is 255 days in the rayon area. Annual monthly air temperature is 1,9 C in winter, and is 26,6 C in summer. The annual precipitation is 510 mm, and is not equally distributed. Higher precipitation values have been recorded in spring and autumn. The average annual relative air humidity is 70%, which is 80-81% in the winter period and is 50-55% in the summer period. During the warmer period of the year south- east winds prevails as 22-27%, and during the colder period of the year west winds prevails as 22- 29%. Average annual wind speed is 2 m/s. The Project corridor is mainly located between Kulullu village and Aghsu city, and on the settled area of the city. The population of the full service area is 23,130 (inhabitants) by 2009, 25,000 by 2030 including 100 % of Aghsu city. 1.2.1 Land Use While the majority of the rayon area is arable, only 35.49% 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 102,000.00 Arable Land 75,700.00 74.22% Planted Land 36,200.00 35.49% Useless Land for Agriculture (non-arable) 22,300.00 21.86% Pastures for cattle-breeding 35,400.00 34.71% Fruit and gardens 3,600.00 3.53% Saline Land 7,500.00 7.35% Source: Consultant’ survey Result. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology The central business districts in Aghsu city are commonly densed along Baku – Shamaxi - Yevlakh highway, Samad Vurgun Street, 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. 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 23,100 for water supply by 2009, and 24,200 for sewage 70,882 by 2009 collection system by 2009 Employed population 9,328 unknown Unemployed 13,772 unknown Population Density 1482 69 Number of inhabited 321 1,774 IDPs Land Total area 7.77 sq.km 1,020 sq.km Arable land Not registered 75,700 ha Cultivated land Not registered 36,200 ha Forest None 3,275 Urbanization City 1 1 Municipality 1 58 Economics 132,691,104 GDP 1872 USD per year USD per year Major Crops Grain, vegetables, fruit,, wine, cottton Catlle and Small Cat. Not registered 149,535 Major Industry Canned and bottled Fruit juice industry, dairy products Minor Businesses 274 Not registered Touristic Facility 3 6 Infrastructure Expressway None None Highway, - km - 56 Railway, - km None None Power Distribution st. 1 1 WTP None None WWTP None None Water Supply Yes, unhygienic None Sewage Network Yes, partly None Social Services Medical Facilities 4 40 Secondary Schools 6 69 Day Care 7 13 Cultural Facility 7 81 Public Hall 1 1 Archeological sites 4 18 Museum 2 2 Stadium 1 1 Sport Complex 2 6 GDP: Gross Domestic Product ha: Hectare USD: United States Dolar WTP: Water Treatment Plant WWTP: Wastewater Treatment Plant Sources: State Statistical Committee, AWM OJSC of Azerbaijan, Rayon Land and Cartography Department, Feasibility Report, and findings of Consultant’s Study Team. 1.2.3 Living Conditions 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 confirms its results of the poverty trends to be similar to those reported by the SSC. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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, 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. 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. The official poverty line (which in Azerbaijan is US$3.31 a day or US$ 100/- per month in March 2015) 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 Aghsu Rayon (Azerbaijan) Unemployment Rate - Rural 5.6 5.1 Unemployment Rate - Urban 6.1 7.3 Employment-to-working-age-population ratio – aged 15-61 66.2 61.7 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$ 2.2 3.1 4.7 5.2 6.1 8.1 Billion 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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 Aghsu during the surveys. 1. Residential Households (PAPs) inside the city, 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, and interceptor sewer. In addition, two water reservoirs (buffer tank nearby Gursulu and distribution reservoir North of Elabad village) and waste water treatment plant (WWTP) (South of Muradli village) are located in the municipal lands. 4. Government Lands such as educational, health or medical facilities, vocational, and business enterprises, where impact on land is limited to 6 m4 strip of land take for pipeline construction without causing any impact to structures attached or operating institutions and enterprises located on these lands. No IDPs is affected 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 Pump Station at the catchment Padar village Padar Municipality Drinking water transmission main Padar village Padar Municipality Gursulu (Gurcuvan) village, Yenilik Municipality Yenilik Village, Gurcuvan Municipality Elabad village Kalagayli village Kalagayli Municipality Pirhasanli village Pirhasanli Municipality Buffer Tank, 50 cu.m Gursulu village Yenilik Municipality Drinking Water Distribution Reservoir, Elabad village Yenilik Municipality 1500 cu.m Feeder and Distribution Mains, and Aghsu city Aghsu Municipality Collector and Lateral mains inside the city Pirhasanli Village Pirhasanli Municipality Interceptor Sewer Muradli Village Muradli Municipality Takla Village Waste Water Treatment Plant Muradli Village Muradli Municipality Source: Consultant’s survey results. The following Table shows the population of communities that are affected 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. 4 To have rights of access to 6m pipeline corridor for routine maintenance and repair works during the operation period. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology Table 1.9: Population Profile along the project elements, by 2012 and the number of directly affected PAPs according to the locations5 Project Project Project Project Total Affected Affected Affected Affected affected Municipal Location Male Female Total Municipal PAHs6 Male Female persons Area Area per Location ha Nos İnh. İnh. Gurcuvan Gurcuvan 225 1034 2110 21 50 51 101 0.42 Pirhasanli Pirhasanli 40 216 447 23 52 54 106 Muradli Muradli 23 817 1676 0.52 22 50 53 103 Aghsu City Aghsu City 28 190 389 0.17 39 83 90 173 Total 105 235 248 483 Source: Consultant’s survey results. According the results of the Consultant’s census and socio-economic survey, the number of PAPs is 483, and PAHs 105 in the Corridor of Impact (COI). Approximately 32% (159) PAPs are located in Aghsu city. The project will affect 324 PAPs (68% of PAPs) in villages located along the drinking water transmission main and interceptor sewer that all of them are farmers. 2.8% of PAPs (14 persons) who are subsisting within the private non-residential parcels are also affected in the city. The average age of household heads within the RoW is 48 years. Among the 105 PAFs the youngest household head was 23 years old while the oldest was 72 years old. Most of the household heads (76%) were married while 16% were widow/er. Among the households surveyed, 85 % were male headed while 15% (16 famillies) were female headed7. The majority of the PAPs (household heads) in the city were the government employee (49%). 21.1% were the employee in private sector while 11% of household heads were traders in the market, 6.6% were retired; 4.1% work persons/craft persons and 8.2% were own retail business. Housing Size, Type, and Household Size by Respondent Households Housing represents households’ most significant assets, and also provides an indication of relative wealth. A majority of dwellings (72%) are comprised of two or three rooms, and very few have an inside toilet (4.5%). While 62% of total households has running water, 22% of them has private water well in their plot. The household size by respondent households is 4.60, assuming each unclaimed land8 supports one household and each household shelters 5 people. Household Income and Budget Project affected households in Aghsu have relatively low incomes compared with Azerbaijan averages, but higher than those as in average of Daghlig Shirvan 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 5 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. 6 Number of Project affected land parcels equals to the number of project affected households (PAHs) 7 Mitigation measures for female headed HHs are described in the Chapter 5 of this document. 8 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\Aghsu_LA&MVP\387_17 1.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology According to SSC, by According to results of the Consultant's survey, 2012 by first six m onths of 2013 (Daghlyg Shirvan 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. Table 1.11: Comparative Consumption Expenditures of Households in Aghsu According to results of the According to SSC, by 2012 Consultant's surveys 1 (Daghlyg Shirvan 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 85% of food consumed in the majority of families. Most families that were interviewed bought about 60% of their food products in shops in Aghsu city. The local diet includes vegetables that are grown in homestaead lands both in Aghsu city and villages along the pipelines. Most respondents in Aghsu 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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/infrastructure9/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;  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. 9 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\Aghsu_LA&MVP\387_17 1.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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) (ii) minimizing land acquisition, as far as possible, restiriction 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 Agsu 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 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 25.12 acquired as protection zone - ha 2 Pipeline to be traveled on private parcels with servitude agreement - ha 9.08 Pipeline traveled within the RoW of existing water pipelines, inter-village roads, 3 22 and through the rivers’ flood plains – ha 4 Decrease on required land to be permanently be acquired - ha 19.82 5 Decrease on required land to be permanently be acquired - % 79% 6 Decrease on number of PAPs - inhabitant 67 7 Decrease on number of PAPs - % 12% 8 Decrease on number of PAHs - HH 13 9 Decrease on number of PAHs - % 11% Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.13 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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 Questionnaires,  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. 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. Irrigation Channel Yenilik Village Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.14 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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 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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.15 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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 carried10 out in accordance with the World Bank Operational Policy (OP 4.12) on Involuntary 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 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). 10 Please see Chapter 4 for the detailed information on Public Consultations held within project influence area. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.16 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 1.17 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 1; Introduction & Methodology 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\Aghsu_LA&MVP\387_17 1.18 | P a g e 2 POLICIES RELATED TO LEGAL ASPECTS & SOCIAL SAFEGUARDS Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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\Aghsu_LA&MVP\387_17 2.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Regustry 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\Aghsu_LA&MVP\387_17 2.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 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. 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\Aghsu_LA&MVP\387_17 2.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 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\Aghsu_LA&MVP\387_17 2.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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\Aghsu_LA&MVP\387_17 2.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 2.3 Compensation Valuation Methods in Azerbaijan 2.4.1 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\Aghsu_LA&MVP\387_17 2.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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, and 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 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, 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 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 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. 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, thiscategory 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\Aghsu_LA&MVP\387_17 2.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 (potentially vulnerable),  Private users of state or municipal land without lease or formal agreement (potentially vulnerable),  Private users of private land without formal agreement with landowner (potentially vulnerable). User/owener of Sevrely affected land  Private owners and or/unregistered possessors of land parcels parcels where project impact exceeds 10 % of the 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 are no private lands to be permanently acquired by the project in Agsu case, and cash compensation in one stage for the income loss of PAPs during both construction and operation periods are envisioned, there is no need to envisage additional income restoration. 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. The WB OP 4.12 recommends that displaced persons should be able to choose few feasible options such as; 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework  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 o 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.13 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 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. 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&MVP in 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 As no displacement occurs within the project due to permanent acquisition of least restore) living standards and private lands in Aghsu, and cash compensation in one stage for the income livelihood loss of PAPs during both construction and operation periods are envisioned, no additional income restoration is envisaged within the project for Aghsu. 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 vulnerable3 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 3 Please see Definition of Terms for vulnerable groups Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.14 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 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 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 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, 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 2.15 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 2; Policy, Legal, and Administrative Framework 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 Valuation and Land assets, and livelihood compensation payable for social survey Acquisition Commisiions to be lost temporary and permanent and valuation and 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\Aghsu_LA&MVP\387_17 2.16 | P a g e 3 LAND ACQUISITION SOCIAL IMPACTS OF THE PROJECT Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition 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 project affected persons (PAPs) along the Project corridor are 483. They belong to 105 families and were interviewed in the household survey during the field studies. In additon, 57 parcels which belong to government and municipalities are affected by the project activities along the Project corridor. 36.01% (9.08 hectares) of affected properties (25.12 hectares) are private lands, approximately 92.12% of which are private agricultural lots (8.36 hectares). 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,  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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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 Aghsu will be started in the late 2015. 2 Construction / Construction activities include; Rehabilitation Works For Water Supply System  A horizontal water diversion unit in Gursulu village along the flood plain of Girdimanchay river (raw water catchment area),  A pump station in the catchment,  A transmission main from the pump station to distribution reservoir North of Aghsu town, approx. 18 km in length.  A 50 cum buffer reservoir nearby Gursulu village,  A distribution reservoir in drinkable water storage capacity of 2,000 cum,  A distribution reservoir in drinkable water storage capacity of 1,500 cum,  A distribution reservoir in drinkable water storage capacity of 500 cum,  Feeder mains and distribution mains of approx. 85 km for piped network. For Waste Water System  An interceptor sewer from the southeastern part of the city to WWTP South of Muradli village, approx. 7.7. km in length.  Collector, and lateral mains of approx. 79 km for the waste water collection, and  Wastewater Treatment Plant, which is in the max. hourly wet weather design capacity of 580 cum/h, South of Muradli village 3 Normal Operation Year around 2018 will begin when all system elements are completed and commissioned, and will lasts up to decommisioning of the systems (not before 2038). 4 Operation in case of This will occur throughout the operation period (at least 20 years of project horizon) due Accidents and to 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 2038. Source: SIAR for Aghsu, Aim Texas Trading, LLC, Baku, November, 2013. 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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 during 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 during the entire project cycle 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 private lands such as non-residential, Long- Likely small High Moderate agricultural, agricultural term perennial, residential and homestead 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 impacts on Likely small Short- High Minor2 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. 2 Some parts of pipeline will traverse non-residential district and impact nine (9) public parcels, more specifically perennials standing on the territory of public school, State owned vacant land parcels and Municipality owned land plots leased for Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Public/Private Non- term residential Plots; Commercial / Industrial, and Public Institutions by the pipeline construction Temporary impacts on Short- government and Likely small High Minor term municipal forest areas Short- Rivers’ Flood Plains Likely small High Minor term 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 3.3, 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. 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. commercial purposes and privately owned commercial parcels (5). According to survey results, 9 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. For 5 privately owned non-residential parcels; 4 of which will require to be compensated against right of access for the operation period, while one of these four will also require to be compensated for loss of perennial crops (fruit trees). Only one privately owned non- residential parcel will require to be compensated against the impact of loss of perennial crops and income loss of fruit for cutting these trees. See Table 7.11 and Annex 4. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of 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 (trees - fruit or non-fruit), and income loss from perennial crops by cutting the fruit and non-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 lands. Temporary 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 the Lands Losing part of the land permanently will occur on two (2) government owned parsels (river flood plain areas) and four (4) municipal grazing lands in Aghsu. 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:  Pump station at the catchment,  50 cum buffer reservoir in Gursulu (Gurcivan) village,  1500 cum distribution reservoir North of Elabad village,  Waste Water Treatment Plant (WWTP) South of Muradli village, 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) are temporarily used by the project during the 4-year construction period. Pastures include only municipal lands. In Aghsu there is no municipal land leased either for short-term and long-term grazing use or used by anyone without agreement along the Project corridor, therefore, there is no significant impact on these lands due to temporary use of grazing and pasture lands by the project.3 Losing Part of Perennial Crops (trees - fruit or non-fruit), and Income Loss by Cutting the Fruit and Non-fruit Trees in the Homestead Lands, Gardens, Residential and Non-residential Parcels, and Agricultural Lands The project will result in loss of a number of 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. This impact came into existence minor as indicated in Table 3.3. Income loss of PAPs from the homestead lands, gardens, and agricultural lands by cutting fruit and non-fruit trees will occur during the construction phase. While the areas of affected fruit trees will be relatively small, the impacts on affected owners’ incomes are long in duration 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, impact will come into existence moderate as indicated in Table 3.3. Methodology for determination of appropriate mitigation measures are given in Chapter 5 of this report . 3 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\Aghsu_LA&MVP\387_17 3.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Losing Part of the Seasonal Crops and Income Loss Losing Seasonal Crops on Cultivated Agricultural Lands and Homestead Lands A part of the cultivated land with annual and seasonal crops along the project corridor will be affected by the Project during construction of pipelines. This impact will come into existence minor as indicated in Table 3.3. Methodology for determination of appropriate mitigation measures is given in Chapter 5 of this report. Income loss from losing part of seasonal crops will occur on the cultivated agricultural lands and homestead lands along the Project corridor during construction. This impact will come into existence moderate as this impact will affect the agricultural lands partly, but it is long-term in nature ( Table 3.3). Appropriate mitigation measures is given in Chapter 5 of this report. Possible Temporary Impacts on Public/Private Non-residential Plots; Commercial / Industrial, and Public Institutions by the Pipeline Construction during Construction Temporary impact will occur on a number of these lands that are owned public and private during construction of pipelines in the city. This type of impact may occur as a result of; i. temporarily closing access to these lands; ii. damaging soil quality of the land; iii. damaging some main and complementary structures on the lands; iv. damaging some attachments4 of the affected lands, and v. losing income by cutting fruit trees. However, in Aghsu, there are no main5 and complementary structures6 that will be damaged during the construction of pipeline and above ground facilities. Only three (3) private non-residential plots and nine (9) public non-residential parcels will suffer from loss of income by cutting the fruit trees during the construction phase. Actually, the project affects any main and/or complementary structure attached to the project affected land parcels. In case, if any facility are damaged by the project such as animal shelters / depot and/or any structure adjacent to the main structure (residential houses and commercial or institutional building), damages on these type of structures 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 Company during the construction, 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 Impacts on Government and Municipal Forest Areas Temporary impact occurs on a number of government and municipal forest areas within project corridor during construction of the pipelines. Seven government and municipal forest parcels are affected by the pipeline construction temporarily during construction period. The Construction Contract envisages measures both for minimizing this type of impact and relevant mitigations if trees need to be cut down. Mitigation measures for non-fruit trees to be damaged during construction in the forest area are in place by an agreement between Regional Department of Ministry of Ecology and AWM OJSC before the construction starts. Besides, Construction Contractor will 4 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. 5 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”. 6 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\Aghsu_LA&MVP\387_17 3.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project provide passage/access to the forest areas for local people to collect berries, herbs and mashrooms, and fire wood for those with formal permits. Methodology for determination of appropriate mitigation measures are given in Chapter 5 of this report. Temporary Impacts on Rivers’ Flood Plains Temporary impact occurs on the rivers’ flood plains for river crossings of the pipeline within the project corridor in two locations. Methodology for determination of appropriate mitigation measures are 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 construction7 (4 years) and operation8 (20 years) period of the project, but servitude agreement will be established for operation (20 years) period, restiriction of use 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, including local municipalities, local government (REP), and AWM OJSC. Restriction of use will mainly be 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 transmission main from pump station to Aghsu city, and around the interceptor sewer 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 agreements to be signed with each project affected land owner. The following Figure illustrates the pipeline protection zone of the drinking water transmission main and Interceptor sewer. 7 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. 8 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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. 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 parcle will be attached to the Servitude Agreements so that PAPs are clearly informed on specific restictions they will be responsible to adhere during the validity period of Servitude Agreements. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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 drinking water transmission main and 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\Aghsu_LA&MVP\387_17 3.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition 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 3.3. 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 3.3). 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 Buildings9  Complementary Structures10  Attachments11  infrastructure facilities12,  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. 9 Main building and any adjacent structure to the main building such as animal shelter, depot, open and closed garages etc.. 10 shelter, any kind of depot, open and closed garrage located separately from the main building in the project affected plot. 11 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. 12 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\Aghsu_LA&MVP\387_17 3.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition 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. Rivers’ Flood Plains which are owned by the government. Impacted properties are detailed under three phases of the project which are; 1. Pre-construction Phase. 2. Construction Phase, and 3. Operation Period The details of affected public/private land parcels and affected persons are given in the following Table; Table 3.4: Details of Affected Public/Private Land Parcels and PAPs Property Impacted Impact Modality Number of Number of Restriction of Use for Right Affected % of Affected Affected Permanent Acquisition of Access during operation % of Land Use Category Families Affected Nos Area People (PAP) of Land period (20 Years) w ith Affected (PAF) Area Servitude Area Ha Nos inh. Nos Area -ha % Nos Area -ha Private 1 Agricultural lots 69 8.36 69 318 0 0.00 0.00% 69 8.36 33.30% 2 Residential & Homestead Plots 33 0.54 33 151 0 0.00 0.00% 33 0.54 2.17% 3 Non-residential plots 3 0.17 3 14 0 0.00 0.00% 3 0.17 0.68% Sub-total 105 9.08 105 483 0 0.00 0.00% 105 9.08 36.14% Public 1 Municipal Grazing 32 10.22 0 0 4 4.59 18.27% 28 5.63 22.41% 2 Municipal & Gov. Useless 5 0.27 0 0 0 0.00 0.00% 5 0.27 1.06% 3 Gov. & Municipal Non-residenti 9 0.34 0 0 0 0.00 0.00% 9 0.34 1.34% Gov. River Flood Plain 2 0.71 2 0.71 2.83% 0 0.00 0.00% 5 Gov & Municipal - Agricultural 9 4.51 0 0 0 0.00 0.00% 9 4.51 17.94% Sub-total 57 16.04 0 0 6 5.30 21.10% 51 10.74 42.76% Total Land Affected 162 25.12 105 483 6 5.30 21.12% 156 19.82 78.90% Source: Feasibility Study, Contractor’s records, SRERS, and Consultant’s Surveys. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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.). 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 5.30 hectares of land is 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 Land Use Project Elements for ROW Land Owner Category of (ha) Land Pump station in the catchment 0.0851 Government River Flood Plain Permanent acces road for the pump station 0.63 Government River Flood Plain Padar Permanent acces road for the pump station 1.29 Grazing Land Municipality Buffer Reservoirs nearby Gursulu village (50 m3) , including its acces Gurcuvan 0.3481 Grazing Land road Municipality Gurcuvan Water Reservoir North of Elabad village (1500 m3) 0.4969 Grazing Land Municipality Waste Water Treatment Plant South of Muradli village , including its Muradli 2.4607 Grazing Land acces road Municipality Total 5.30 Source: Feasibility Study, Contractor’s records, SRERS, and Consultant’s surveys. All lands required for above ground facilities and their access roads are owned by government and district municipalities. However, because the land required for ROW of raw water catchment is currently owned by AZERSU, no land acquisition is required for the water intake facilities of the project. 3.2.2.2 Grazing and Pasture Lands Affected Temporarily, Losing of Use According to cadastral study conducted by SRERS, amount of loss of use of grazing and pasture lands temporarily during construction phase is 5.63 hectares, and details are given in the following Table. Of 60.12% belong to Gurcuvan municipality, 28.34% Pirhasanli municipality, 11.21% Muradli municipality, and 0.34% Aghsu municipality. According to report of the district municipalities who own the grazing land that will be affected temporarily, no lease contract which is short or long-term uses of the land for grazing purposes related to these lands currently exists. Properties’ detail is given below. Table 3.6: Temporary Loss of Use of Grazing and Pasture Lands Used Area by the Land Plot Percent of Total Land Owner Category of the Land Project Nos Hectare % Gurcuvan Municipality Grazing Land 16 3.38 60.12% Pirhasanli Municipality Grazing Land 8 1.60 28.34% Aghsu Municipality Grazing Land 1 0.02 0.34% Muradli Municipality Grazing Land 3 0.63 11.21% Total 28 5.63 100.00% Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.12 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Figure 3.3: Temporary Loss of Use of Grazing and Pasture Lands 3.2.2.3 Agricultural Lands Losing Part of Perennial Crops (trees - fruit or non-fruit) The project will result in loss of 676 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 Affected Owners13 trees to be cut HHs ** Location of Trees Affected Municipal Area Private / Government / (Nos) (Nos) Municipality 1 Aghsu city 599 15 Aghsu Municipality Private 2 Pirhasanli Village 55 1 Pirhasanli Municipality Private 3 Yenilik Village 22 1 Yenilik Municipality Private Total 676 17 *Source: Consultant’s survey team, 2014 - 2015. **HHs: Households. 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 properties that will be impacted by the Project. 13 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\Aghsu_LA&MVP\387_17 3.13 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Table 3.8: Summary of Impacted Private Agricultural lots Losing Part of the Seasonal Crops (20-m Project Corridor) Property Impacted Number of Number of Affected People Land Use Category Total Area Affected Area Affected HHs * Nos (PAP) Ha Ha % Nos inh. Private Agricultural lots 69 56.03 8.36 14.92% 69 318 Among them severly 43 30.31 6.84 12.2% 43 205 affected Source: Social survey for Rap, and SRERS’ cadastral studies, conducted 2014, and revised October 2015. *HHs: Households. The Table below also summarizes the impacted properties owned by Municipalities and Government. Table 3.9: Agricultural Properties that impacted, and are owned by Districts Municipalities and Government (20-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. Agricultural lots owned by 9 - 4.51 0 0 Municipalities and Government Total 9 - 4.51 0 0 Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. *HHs: Households. Since all impacted municipal and government owned agricultural lots are not cultivated, there will be neither loss of seasonal crops nor income loss due to losing of seasonal crops from these lands. 3.2.2.5 Residential Plots and Homestead Lands to be Impacted Residential plots and homestead lands that will be impacted by the project activities are located in the city in Aghsu No residential plots or properties will be affected in the villages and districts located along the Project corridor. Although pipelines in the city will travel through some private residential parcels and homestead lands due to technical and topographic requirements, no physical damage will occur on the main & complementary structures and attachments. Damage which will be occured on the perimeter walls, doors, and damage on the homestead lands and gardens during construction should be compensated adequately. The Table below summarizes the residential plots and homestead lands which will be affected by the project in the city. Table 3.10: Residential Plots & Homestead Lands which will be impacted by the Project in the City (within 6-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. Residential Plots and 33 4.13 0.63 15% 33 151 Homestead Lands Among them severly 19 1.89 0.35 19% 19 90 affected Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. 3.2.2.6 Project affected Public/Private Non-residential Plots: Commercial / Industrial, and Public Institutions Non-residential (commercial, industrial, and public institutions) properties which will be impacted by the project are summarized in the Table below. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.14 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Table 3.11: Project Affected Non-residential Plots; Commercial / Industrial, and Public Institutions located 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. Non-residential land leased from Municipality by private persons 3 2.39 0.17 3 14 for Commercial activities Among them severely affected 0 0 0 0 0 Public Institutions (schools) and 9 - 0.34 0 0 government owned lots Total 12 0.51 3 14 Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. *HHs: Households. 3.2.2.7 Affected Rivers’ Flood Plains River flood plains which will be affected by the project are summarized in the Table below. Table 3.12: Project Affected River Flood Plains (within 20-m and 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. River Flood Plains 1 _ 0.71 0 0 Total 1 _ 0.71 0 0 Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. *HHs: Households. 3.2.2.8 Municipal & Governmental Useless Lands to be affected The data on project afected Municpal and Governmental (os State owned) useless lands which are summarized in the Table below. Table 3.13: Municipal & Governmental Useless Lands which will be Impacted by the Project (within 20-m and 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. Government and Municipal 5 _ 0.27 0 0 owned Useless Lands Total 5 _ 0.27 0 0 Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. *HHs: Households. 3.2.3 Properties to be Impacted on the Operation Period 3.2.3.1 Losing Income from the Loss of Annual / Seasonal & 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.15 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Properties to be impacted are summarized in the following Table; Table 3.14: Properties to be impacted from the Restriction of Use and Planting Restriction Property Impacted Land Use Category Total Area Affected Area Nos Ha Ha 1 Private Agricultural lots 69 56.03 8.36 2 Agricultural Properties owned by 9 - 4.51 Municipalities and Government 3 Affected Homestead Lands 33 4.13 0.62 Total 111 - 13.49 Source: Social survey for Rap, and SRERS’ cadastral studies, 2014. 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 corridor due to right of access for routine maintenance activities that will continue throughout the operation period within the 6-m Project corridor. Properties tha will be impacted are summarized in the following Table; Table 3.15: Properties to be Impacted by the Loss of Annual/Seasonal 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 Agricultural lots 69 56.03 8.36 2 Agricultural Properties owned by 9 - 4.51 Municipalities and Government 3 Affected Homestead Lands 33 4.13 0.62 Total 111 - 13.49 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 63 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 3.16: 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 44 31.4519 7.1226 22.65% 44 202 Residential & Homestead Land 19 1.8985 0.3522 19% 19 87 Total 63 33.3504 7.4748 22% 63 289 Source: Surveys of Consultant’s census survey team, and interview results. 3.2.3.4. Project affected Vulnerable PAPs Total 14 households are determined as vulnerable during the surveys, 13 of which are female headed households. Of 13 female headed households 7 of them are widow. While 17 PAPs within14 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.16 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project vulnerable households have chronical disease, 6 vulnerable households are the pensioners. The detail is given in the following Table. Table 3.17: 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 14 6 17 7 13 14 Source: Surveys of Consultant’s census survey team, and interview results. 3.3 Summary of Project Impacts No severe impact will occur on any individual PAP in Agsu because of the following reasons;  No private land will permanently be acquired for the above ground facilities;  No acces to the land or 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);  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 3.18: Summary of the Project 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 5.30 hectares of land is All lands required for above ground facilities Lands Permanently For required for installation of above ground and their access roads are owned by Above Groung Facilities facilities and their access roads within the government and district municipalities. (AGFs) project. This impact is minor in nature as it will occur on the very small portion of the impacted 5 parcels will be affected by this impact, all of lands, and it causes no damage on them are owned by the government and assets/livelihood of the PAHs affected. district municipalities. This impact has high mitigation potential. See Chapter 5.3.1. Grazing and Pasture Lands Amount of loss of use of grazing and pasture This impact will occur minor in nature as Affected Temporarily, Losing lands temporarily during construction phase indicated in Table 3.2 as there is no of Use is 10.22 hectares on 32 municpal grazing municipal land lease agreement for short- parcels. 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 calculated grazing land by vicinity villagers or to be paid to the relevant district municipality. public/private enterprise Impact is a short term impact which will occur only construction period, and will be disappeared opnce the constrcution is completed. Agricultural Lands Losing The project will result in loss of 676 fruit and Impact magnitude is modarate in nature as it Part of Perennial Crops non-fruit trees, vines and other perennial is not a temporary impact, and will last until (trees - fruit or non-fruit) crops in some parts of pipeline alignment. end of Project life time. This impact has high mitigation potential and The landholders will suffer temporarily from will be mitigated through one time cash loss of income during the construction period compensation. See Chapter 5.3.1 and for pipeline constrcution, and also during Section C of this Table. operation period for 20 years (see below Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.17 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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 result in losing part of the Impact magnitude is modarate in nature as it Part of the Seasonal Crops seasonal crops on 69 private cultivated is not a temporary impact, and will last until agricultural lots, and 9 agricultural lots owned 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 cash compensation. The landholders will suffer temporarily from 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 construction completed). Impacted Residential Plots The project will affect 33 residential pacels Impact magnitude is modarate in nature as it and Homestead Lands and homestead lands in the city within the 6- is not a temporary impact, and will last until m Project corridor. end of Project life time. The landholders will suffer temporararily from This impact has high mitigation potential and loss of income during the construction period will be mitigated through cash compensation. for pipeline construction, and also during See Chapter 5.3.1 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). Municipality land leased by 3 non-residential14 land parcels are not Altough impact appears permanent in nature private persons (physical / allowed for agricultural activities due to land for 20 years, its magnitude is minor ) as legal) for commercial use classification. These land parcels are project impact is extended over the small purposes owned by Municipality but leased by private portion of land but no business structure will persons for comemrcial activities. The land be affected and construction company is still belongs to the Municipality but based on responsible to provide access to business the lease agreement private person is facilities to eliminate even temporary granted with the right to build a structure and stoppage of business. run business. Therefore, no income loss and livelihood deterioration is expected. This impact does not cause to loss of income Project impact is extended over the small portion of Municipality land leased by private persons for commercial purposes. As a result of project activities such structures will not be affected, as project ROW will require only small portion of land for pipeline. No sturcutres or access to strucutres will be affected, therefore project related activities will not cause interruption of any business acitivities, therefore no income loss is expected during construction /opeartion period. 14 Non-residential is an official land use classification in Azerbaijan legislation. Legitimate owner of non-residential land is only Municipality; non-residential land can be leased to a private physical or legal person for using of commercial and/or industrial purposes only with long-term lease agreement for 25, 49 or 99 years. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.18 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project Affected Rivers’ Flood Plains Two lands located in Girdmanchay River Altough impact appears permanent in nature Flood Plain will permanently be acquired for along the project life span, its magnitude is pump station in the catchment and road for minor as it will not cause income loss and pump station. Two of them are the livelihood damage. on any PAP. government owned lands. No PAP will affect from this impact, losing their income and asset/livelihood damage. C. Operation Period (No severe impact is expected)15 Losing Income from the Residential and homestead lands (14) and Impact magnitude is moderate as it will Loss of Perennial Crops due agricultural lands (3) will suffer from this cause loss of income during the Project life. to Restriction of Use with impact due to planting restriction and Establishing Servitude on restriction of use within the 6-m and 20-m This impact has high mitigation potential as the Lands Affected project corridor, to protect the pipelines from planting restriction doesn’t mean completely the plant roots and normal agricultural banning the agricultural activity and/or activities. growing perennial crops on the restricted area, but it will re-arrange the agricultural This impact appears permanent in nature as activity on the restricted area during the it will last during Project life (20 years). Project life (20 years). Losing Income from the 69 private agricultural and homestead lands Impact magnitude is moderate as it will Loss of Annual / Seasonal will suffer from this impact due to right of cause loss of income during the Project life. Crops and subsistance Access within the 6-m pipeline corridor. farming due to Routine This impact has high mitigation potential as Maintenance Activities This impact appears permanent in nature as planting restriction doesn’t mean completely it will last during Project life (20 years). banning the agricultural activity and/or growing perennial crops on the 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 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 of case of Accidents and emergency operation response plans, and the service provider (Rayon Sukanal Emergency Situation, and emergency manager of the service provider departments - AZERSU) will be provided by natural disasters such as (Rayon Sukanal Dept.). 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 - The same impact with the impacts temporary Access to the agricultural lands occured in normal operation period and 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. 15 As the non-residential lands will suffer from restriction of use during operation phase of the project, there will be no income loss and livelihood damage on these lands becuase of the access to the lands for routine maintenance. Nevertheless, impacts occured on the non-residential lands will be mitigated by cash compensation prior to the constrcution starts. However, restriction of use impacts on the residential lands will last during operational life of the project (20 years). The costs of the mitigation measures are calculated taking into account the loss of income from trees cut, loss of lumber value of trees cut, loss of income from the subsitence farming on the homestead lands for 20 years, and right of access to 6m pipeline corridor for routine maintenance, and all costs of mitigation measures will be paid in one time prior to construction start. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 3.19 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 3; Land Acquisition Impacts of the Project 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\Aghsu_LA&MVP\387_17 3.20 | P a g e 4 STAKEHOLDERS CONSULTATION Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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\Aghsu_LA&MVP\387_17 4.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 4.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation 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.  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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 4.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation 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.  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 for the 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 4.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation 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. 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 17 and October 30, 2013. These consultations gave the SA team the opportunity to inform the public about the planned public hearings and to gather information on key issues in eight potentially affected communities (Padar, Gursulu, Kalagayli, Yenilik, Elabad, Pirhasanli, Muradli, Takla villages and Aghsu city). 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 SIA. Table 4.3: Details of meetings held in the consultation process Department / Number of Meeting Institution/Intrested Date Attending parties/General Public REP Office REP, First Deputy of REP, June 17, 2013 4 representatives from AWM OJSC, and Consultant’s SA team Meeting Room at First Deputy of REP, July 02, 2013 14 REP Representatives from AWM OJSC, Consultant’s SA team, rayon department of Ministry of Finance, regional representative from MENR (Ismayilli region), Representatives from local NGOs (reps. From WUAs in Elabad and Padar villages, and Rayon elders society), representative from Local press, PAPs from villages along the pipelines and Aghsu city, and representatives from the local municipalities. Meeting room at the Representatives from AWM July 18, 2013 6 Constructor’s Camp OJSC and Consultant’s SA team, representatives from Contractor’s design team, and reps. from Municipalities (Agsu and Pirhasanli). Conference Hall of First Deputy of REP, August 01, 2013 23 REP Representatives from AWM OJSC, Consultant’s SA team, Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 4.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation rayon department of Ministry of Finance, regional representative from MENR (Ismayilli region), Representatives from local NGOs (reps. From WUAs in Elabad and Padar villages, and Rayon elders society), representative from Local press, PAPs from villages along the pipelines and Aghsu city, and representatives from the local municipalities. Road-side Reps. From Consultant’s SA August 22, 2013 6 consultation in team, AWM OJSC, Yenilik Yenilik village with Municipality, and PAPs from the PAPs yenilik and Elabad villages. Consultation with the Reps. From Consultant’s SA September 11, 6 villagers from Padar team, AWM OJSC, Yenilik 2013 village at the Pump Municipality, and PAPs from station site (Raw yenilik and Elabad villages. water catchment area) Consultation with the Reps. From Consultant’s SA September 13, 4 villagers from team, AWM OJSC, Mayor of 2013 Muradli village and Muradli Municipality, and PAPs Mayor of Muradli from Muradli village. village from Padar village at the prospective WWTP location Consultation with the Reps. From Consultant’s SA September 18, 2 PAPs along the team, and PAPs 2013 interceptor sewer Consultation with the Reps. From Consultant’s SA September 27, 4 PAPs along the team, and PAPs 2013 interceptor sewer Consultation with the Reps. From Consultant’s SA October 09, 2013 3 PAPs along the team, and PAPs drinking water transmission main Consultation with the Reps. From Consultant’s SA March 13, 2014 4 PAPs along the team, and PAPs drinking water transmission main Consultation with the Reps. From Consultant’s SA July 14, 2014 3 PAPs located in team, and PAPs Aghsu city Consultation with the Reps. From Consultant’s SA December 15, 2 PAPs located in team, and PAPs 2014 Aghsu city Consultation with the Reps. From Consultant’s SA February 28, 2015 3 PAPs located in team, and PAPs Aghsu city Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 4.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation Meeting with REP, Deputy REP, Reps. of AWM OJSC and Meeting with mayors, local NGOs, reps of AWM OJSC, Consultant in REP Office, June 17, 2013 and Consultant at meeting room in REP, July 18, 2013 Public Consultation meeting in Conference Hall of REP in Public Consultation meeting in Conference Hall of REP in Aghsu, August 01, 2013 Aghsu, August 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. Walk-through consultation with the PAPs along Drinking Walk-through consultation with the PAPs along Water Transmission Main, Oct. 09, 2013 Interceptor Sewer, March 13, 2014 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 4.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation Walk-through consultation with the PAPs along Walk-through consultation with the PAPs along Drinking Interceptor Sewer, July 14, 2014 Water Transmission Main, July 14, 2014 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 Consultant’s Social 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 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 nulled 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\Aghsu_LA&MVP\387_17 4.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 4; Stakeholders Consultation  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.  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\Aghsu_LA&MVP\387_17 4.9 | P a g e 5 MITIGATION MEASURES Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 the areas where the project is located, community leaders, local government, and community- based organizations (CBOs).  5.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures  Vulnerable groups1 (households below the recognized poverty line; disabled, elderly persons or 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. 3 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. The project will identify and implement policies to mitigate any adverse impacts that may appear during implementation of the project. 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.  5.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures 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 Table 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 this case, the AWM OJSC shall conduct additional research developing alternative designs to find another alternative which does not involve acquisition of relevant land. After all these invetigative efforts, if there will be no alternative other than acquisition of this land due to technical requirements, The AWM OJSC will implement Land Acquisition Process in Azerbaijan to acquire the required lands 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.  5.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures 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 fruit trees have been valued according to the annual income of fruits multiplied to the number of years required to reach similar yield productivity and timber price at market. Non -fruit (timber) trees on public/ municipality land will be valued at market timber price per tree. 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 8.36 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;  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,  5.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures  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 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.  5.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures 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.  5.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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: Assitance 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 Legal entitlement to compensation Project assistance to achieve registration or at least, to under Azeri law for replacement costs get written agreements with land owners and damaged movable assets only (Law on Acquisiton of Lands for State Needs Project will offer same compensation entitlements as dated April 20, 2010, Artcile 7.3.5 and to registered users, except providing compensation for 7.5. land, but all non-land assets (movable/immovable) will be compensated. However, no informal land user is detected in Aghsu. 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 Only one elderly person is determine in Yenilik village, who is living alone, and is a farmer for entitling as vulnerable – namely Şikarov Nadirşah Kalbaxan oğlu. 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.  5.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures  Monitoring teams will be given gender awareness training and will include women members. Nine (9) women headed households among PAHs along the drinking water transmission main and interceptor sewer, who are located in Yenilik and Elabad villages and Muradli villages, are detected for entitling as vulnerable people. All of them are farmers. In addition four (4) women headed households are detected for entitling as vulnerable in the city. People falling to poverty Potential difficulties for claiming their Vulnerable people (PAPs below poverty line) will be line rights, and not meeting the required given an allowance corresponding to 3 months of licences. minimum subsistence 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 RAP 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: Survey Team was not able to locate and interview possessors of 34 project affected land parcels, 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 Total 14 vulnerable people are detected in Aghsu for entitling as vulnerable, and vulnerability allowances are included in the costs of mitigation measures, see Chapter 7, and Annex 4. 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 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 Resettlent, 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.  5.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures  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  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 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 forest5 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- 5 Project affected forest areas (forest blades) are included in compensation entitlements. In fact some section of the pipeline from catchment travels through the forest area, Although pipeline ROW is already owned by the AZERSU with existing pipeline. New pipeline will be installed along the old pipeline in the existing RoW. However, existing ROW will need to be registered at the SRERS, requiring cadastral surveys and preparation of other formal documents required for completion legal actions for the ROW registration at the SRERS.  5.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures 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 equitable basis for distributing compensation based on historical arrangements between owner & user – overall compensation basis as for private owners. 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) 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. 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  5.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures No permanent Acquisition of Land Loss of Land 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.  5.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 5; Mitigation Measures 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 Lands6 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 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 Table 5.5: 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  Compensation Entitlements Type of Loss Un-registered Private Satate/Municipal Private Land Owners Registered User Users Lands 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.  6 Entitlements for State/Municipal owned land is incorporated in the document in accordance to the procurement procedures defined in accordance to the requirements of Azerbaijani Legislation.  5.12 | P a g e 6 IMPLEMENTATION MECHANISM Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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) Step 1 – Submission of Consultant 0 Days Baku RAP 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 Aghsu 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 Aghsu 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 Aghsu by Land Acquisition Team Team LA&MVP Within 135 days Land Acquisition Step 9 – Accomplishing full compensation after submission of Aghsu Team LA&MVP Step 10 – Implement Land Transfer Procedure Within 135 days Aghsu AWM OJSC, Land Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms after submission of 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) Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms 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. 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 for the project Research of Land Title Identification of Project Planning AWM OJSC, AWM OJSC researches title and ownership details affected land, parcels, SLCC, SRERS and ownership information. landowners and users SLCC and 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 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 Land acquisition team and assets, and livelihood compensation payable for social survey RAP consultant’s social to be lost temporary and permanent and valuation survey 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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms 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 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 SLCC 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, 1 Human Resource Management. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms Impact # Activity Receptors Source of Impact Mitigation Assessment 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. 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\Aghsu_LA&MVP\387_17 6.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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\Aghsu_LA&MVP\387_17 6.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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\Aghsu_LA&MVP\387_17 6.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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. 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms 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. 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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms  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 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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.10 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms 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. 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 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 6.11 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 6; Implementation Mechanisms 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 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\Aghsu_LA&MVP\387_17 6.12 | P a g e 7 COST CALCULATION FOR MITIGATION OF NEGATIVE IMPACTS Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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$ Privatly owned agricultural lots for seasonal / annual crops 0.27 2,700 Privatly owned agricultural lots for perennial crops 0.5 - 1.1 11,000 – 25,000 Government / Municipal owned agricultural lots for 0.25 2,500 seasonal/annual crops Privately owned Residential and Homestead lands in the city 9 _ 11 90,000 – 110,000 Privately owned Non-residential plots in the city 13.00 130,000 Government / Municpal owned Non-residential plots in the city 12 120,000 Privately owned Non-residential, Commercial / Industrial / 1.20 12,000 Animal Breeding - out of the city Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.1 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation Municipal and/or Government Grazing Lands 0.15 1,500 Useless Lands (salty lands) 0.10 1,000 Flood Plains 0.10 1,000 Forest, excluding trees (timber values) 0.15 1,500 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. 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 US$ / AZN Parity: 0.7844 (Central Bank of Azerbaijan, September 30, 2014 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\Aghsu_LA&MVP\387_17 7.2 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Sort (≥5 years) 1 Crop 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 Rose trees 28.00 0.00 0.00 Plane Trees 22.00 0.00 0.00 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 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$/ha annum Labor Costs Plowing 40.00 Weeding 35.00 Seeding 25.00 Harvesting 45.00 Transport 20.00 Fertilizing 20.00 Sub-total I 185.00 Other Costs Watering 70.00 Cost of sapling per tree 15.00 Seed 125.00 Fertilizer 50.00 Pest Control 70.00 Sub-total II 330.00 Total 515 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. Cost of Soil Recovery for Agricultural Lands and Homestead Lands Following Construction (3 Years Period) 1 As a result of inventory of project affected fruit bearing trees the approximate age and productive was assessed in the presence of PAPs. Majority of trees were confirmed to be relatively younger. The PAPs will receive 15 USD per each affected fruit tree to purchase 2-3 years of good quality sapling. In five years time 3 years old saplings will reach similar productivity age. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.3 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation Cost of soil recovery for yield reduction following construction completion for 3 years period is calculated both for 1 hectare agricultural and homestead lands using above unit prices per hectare per annum, which are as follows; Table 7.7: Cost of Soil Recovery for 1 Hectare Agricultural Land and Homestead Lands Agricultural Lands Homestead Lands Cost Items US$/annum per hectare US$/annum per 100 sq.m Plowing 40.00 4 Weeding 35.00 2 Fertilizing 20.00 3 Watering 70.00 8 Fertilizer 50.00 02 Pest Control 70.00 4 Total - per hectare 285.00 23 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. The following calculations are conducted using the unit prices determined by Consultant’s land and crop valuation team (local firm). Cost calculation for lands is conducted on the basis of guidelines and methodology discussed in Chapter 5 of this report. If any land owner is not willing to sell his/her land to the AWM OJSC, the AWM OJSC can take actions to acquire the required land under normal acquisition procedure of the Law on acquisition of lands for state needs dated April 20, 2014. Severe Impact Allowance Households whose lands are affected more than 10% of total area are entitled additional one time allowance in the amount of mitigation cost equal to one year income from the affected area (see Table 5.1 and 3.18). Table 7.8: Severe Impact Allowances Severe Impact Description No of PAPs No of HHs Allowance (US$) Severe Impact Allowances for Private Agricultural Lands 202 44 7,279.54 Severe Impact Allowances for Private Homestead Lands 87 19 4,560.00 Total 289 63 11,839.54 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) a number of 9 woman headed households and one elderly male headed household who are dependent upon agriculture as major source of livelihood are included in the list of vulnerable HHs. In addition, four (4) households headed by women in the city are included in the 14 vulnerable HHs. The amount of vulnerability assistance to vulnerable households is US$ 8.400.00. 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. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.4 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation Table 7.9: Vulnerability Allowances Vulnerability Allowance Total Amount Description No of PAPs No of HHs per HH (US$) (US$) Vulnerability Allowance to 14 HHs 27 14 600 8,400.00 Source: Consultant’s social surveys, and survey results of Consultant’s social team. 7.2 Cost Calculation for the Lands to be premanently acquired for Above Ground Facilities (AGFs) All lands required for above ground facilities and their access roads are owned by government and district municipalities. Only one cost item is defined for acquisition lands permanently for AGFs in Ahgsu case as all lands owned by government and district municipalities, and no short and long-term lease agreement on grazing lands to be permanently acquired. 1. Costs: Costs of the land to be permanently acquired for AGFs with the Project offered rates (market rates of the lands). Summary of the costs are given in the following Table. For calculation detail, see Annex 4; Table 7.10: Costs of Mitigation Measures for the Lands to be permanentley Acquired for AGFs Costs of Project Offered Rate Used Area by the Permanent Land for the Lands to be project Acquisition for Land Use permanently acquired # Land Owner AGFs Category S POR Costs ha US$/hectare US$ 1 2 3 4 5 6 1 Government River Flood Plain 0.09 1,000.00 85.01 2 Government River Flood Plain 0.63 1,000.00 628.44 3 Padar Municipality Grazing 1.29 1,500.00 1,929.35 4 Gürcüvan Municipality Grazing 0.35 1,500.00 522.18 5 Gürcüvan Municipality Grazing 0.50 1,500.00 745.32 6 Muradlı Municipality Grazing 2.46 1,500.00 3,690.00 Total 5.30 7,600.29 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. 7.3 Cost Calculation for Private Lands Affected Costs of Mitigation Measures for Private Agricultural Lands Affected 70 private agricultural lots are affected negatively along the pipelines in Ismayilli. Six 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 (4 Years); Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.5 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation 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: Costs of Severe Impact Allowances; 7. Cost 7: Costs of Vulnerability Allowances. Summary of the cost calculation for private agricultural lands to be affected by the pipeline construction is given in the following Table, and for detail of the calculation see Annex 4; Table 7.11: Total Costs of the Mitigation Measuresfor Pirivate Agricultural Lands Affected 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 69 185,093.23 191,012.28 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 Five 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: Cost of Severe Impact Allowances; 6. Cost 6: Costs of Vulnerability Allowances. Summary of the cost calculation for private residential & homestead lands 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 & Homestead Lands Affected Number of Parcels Total Costs of Mitigation Measures Land Owner Land Use category Nos US$ Private Residential & Homestead Lands 33 171,129.14 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. Cost of Sapling and cultivation, including labor costs after construction; 3. Costs of loss of crops for construction period – 4 years (see Chapter 5.3.1 & 5.3.2); Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.6 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation 4. Cost of Loss of Crop for 3 Years Maturity Period after Construction Period, 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. Costs of Mitigation Measures for Private Non-residential Lands Affected Only one cost item are defined for calculation of costs of mitigation of this impact as there is no income lost from cutting of fruit and non-fruit trees; 1. Cost 1: Cost of Right of Acces and Restriction of Use for 6-m pipeline strip through out the operation period (20 Years), (see Chapter 5.3.1 & 5.3.2). Detail of the cost calculation is given in Annex 4. Table 7.13: Costs of Mitigation Measures for Private Non-residential Lands Affected Total Costs of Mitigation Number of Parcels Land Owner Land Use category Measures Nos US$ Private Non-residential Parcels 3 3,950.24 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. 7.4 Costs of Mitigation Measures for Governmental and Municipal Lands Affected by the Pipeline Construction 51 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). 9 of which are municipal agricultural lands. Three 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) – for only agricultural lands, (see Chapter 5.3.1 & 5.3.2); 2. Cost 2: Cost of Right of Acces and Restriction of Use for 6-m pipeline strip throughout the operation period (20 Years), (see Chapter 5.3.1 & 5.3.2); and 3. Cost 3: Cost of Soil Recovery for 3 Years Period following Construction – for only agricultural lands, (see Chapter 5.3.1 & 5.3.2). 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 7.14: Costs of Mitigation Measures for Governmental and Municipal Lands Affected Total Costs of Mitigation Measures Corrected Amount According to Land Owner Minimum Compensation Cost US$ US$ 1 Gürcüvan Municipality 205.70 500.00 2 Gürcüvan Municipality 274.63 500.00 3 Gürcüvan Municipality 340.30 500.00 4 Gürcüvan Municipality 463.04 500.00 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.7 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation 5 Gürcüvan Municipality 213.86 500.00 6 Gürcüvan Municipality 256.92 500.00 7 Gürcüvan Municipality 224.42 500.00 8 Gürcüvan Municipality 217.43 500.00 9 Gürcüvan Municipality 87.61 500.00 10 Gürcüvan Municipality 156.00 500.00 11 Gürcüvan Municipality 182.17 500.00 12 Gürcüvan Municipality 184.87 500.00 13 Gürcüvan Municipality 189.12 500.00 14 Gürcüvan Municipality 2,560.90 2,560.90 15 Gürcüvan Municipality 1,659.55 1,659.55 16 Pirhəsənli Municipality 270.11 500.00 17 Pirhəsənli Municipality 171.69 500.00 18 Pirhəsənli Municipality 55.44 500.00 19 Pirhəsənli Municipality 247.11 500.00 20 Gürcüvan Municipality 464.11 500.00 21 Gürcüvan Municipality 325.39 500.00 22 Gürcüvan Municipality 274.89 500.00 23 Aghsu City Municipality 1,720.82 1,720.82 24 Government- Taze Bazar 5,760.00 5,760.00 25 Government 1,212.79 1,212.79 26 Government 7,833.60 7,833.60 27 Aghsu City Municipality 2,592.00 2,592.00 28 Government 498.10 500.00 29 Government 2,115.50 2,115.50 30 Government 1,022.49 1,022.49 31 Government 2,497.36 2,497.36 32 Government 8.59 500.00 33 Government 9.60 500.00 34 Government 4,252.92 4,252.92 35 Aghsu City Municipality 22.78 500.00 36 Pirhəsənli Municipality 31.88 500.00 37 Pirhəsənli Municipality 396.29 500.00 38 Pirhəsənli Municipality 196.02 500.00 39 Pirhəsənli Municipality 398.51 500.00 40 Pirhəsənli Municipality 417.30 500.00 41 Pirhəsənli Municipality 5,573.70 5,573.70 42 Muradlı Municipality 1,477.60 1,477.60 43 Muradlı Municipality 176.65 500.00 44 Muradlı Municipality 502.68 502.68 45 Muradlı Municipality 36.89 500.00 46 Muradlı Municipality 566.89 566.89 47 Muradlı Municipality 209.83 500.00 48 Muradlı Municipality 85.05 500.00 Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.8 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation 49 Muradlı Municipality 422.19 500.00 50 Muradlı Municipality 124.92 500.00 51 Muradlı Municipality 73.87 500.00 Total 49,262.08 59,348.80 Source: Consultant’s social surveys, and survey results of Consultant’s valuation team. 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 7.15: 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 1,500.00 Land Acquisition Team (LAT) Total Costs of 2 Programs 3,000.00 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 7.16: Costs to be Incurred during Performance of Valuation Commission 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; Table 7.17: Estimated Costs to be Incurred during Performance of Valuation Commission 1 Total Unit Price Cost Items Unit Quantity Amount US$ US$ Estimated Costs of Notarization of the Agreements 1 Nos 162 80 12960 arranged and signed by and between VC and PAPs Estimated Costs of Notarization of the Agreements 2 Nos 162 140 22680 arranged and signed by and between LAC and PAPs Total 35640 Source: Consultant’s own estimation. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 7.9 | P a g e SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – CH 7; Cost Calculation 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 PAP sor institute to improve safety; Provisional Sum: US$ 55,000.00 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$ 589,020.02 will be required in Aghsu. Details of the costs of mitigation measures for Aghsu are given in the following Table. Table 7.18: Total Costs of Mitigation Measures Costs of Mitigation Measures Cost Items US$ 1 Costs of Mitigation Measures for the Lands to be permanentley Acquired for AGFs 7,600.29 2 Costs of the Mitigation Measuresfor Pirivate Agricultural Lands Affected 191,012.28 3 Costs of Mitigation Measures for Private Residential & Homestaead Lands Affected 171,129.14 4 Costs of Mitigation Measures for Private Non- residential Lands Affected 3,950.24 5 Costs of Mitigation Measures for Governmental and Municipal Lands Affected 59,348.80 6 Public Awareness Programs(estimated) in Rayon 3,000.00 7 Costs to be Incurred during Performance of Valuation Commision (VC) & Land Acquisition Commission (LAC) 44,000.00 to be established in the Rayon 8 Estimated Notarization Costs 35,640.00 9 Social Safeguards Training Program 3,000.00 10 Cost for Monitoring and Evaluation (M&E) of Social Safeguards including Grievance Redress Mechanism 15,000.00 (GRM) 11 Provisional Sum for Additional Measures 55,000.00 Total Costs of Mitigation Measures 588,680.74 Source: Consultant’s calculation results and his own estimations. Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_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 Aghsu, Land Acquisition & Monetary Valuation Plan (LA&MVP) SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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_RAP\Aghsu_LA&MVP\387_17 Annex-1, 1 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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_RAP\Aghsu_LA&MVP\387_17 Annex-1, 2 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Aim_Texas_Trading\OMG\Az\Baku_RAP\Aghsu_LA&MVP\387_17 Annex-1, 3 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey Agricultural 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_RAP\Aghsu_LA&MVP\387_17 Annex-1, 4 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_LA&MVP – Annex 1, Census and Set Questionnaire for Socio-economic Survey Aim_Texas_Trading\OMG\Az\Baku_RAP\Aghsu_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 Aghsu_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\Aghsu_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/SIAR-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 Terms of Reference of the Assignment Aim_Texas_Trading\OMG\Az\Baku_RAPs\Aghsu_LA&MVP\387_17 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\Aghsu_LA&MVP\387_17 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\Aghsu_LA&MVP\387_17 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\Aghsu_LA&MVP\387_17 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\Aghsu_LA&MVP\387_17  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\Aghsu_LA&MVP\387_17  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\Aghsu_LA&MVP\387_17 SNWSSP, REPUBLIC OF AZERBAIJAN RAPs in 4 rayons -Aghsu, Ismayilli, Shabran and Siyezen Aghsu_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 Aghsu_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