GEO: East–West Highway (Shorapani–Argveta Section ... · GEL Georgian Lari GoG Government of...

Safeguards Due Diligence Report

Project Number: 53178-001 September 2019

GEO: East–West Highway (Shorapani–Argveta

Section) Improvement Project

Prepared by the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia for the Asian Development Bank. This safeguards due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CORRECTIVE ACTION PLAN

TA-9755 GEO: Preparing the East-West Highway (Shorapani-Argveta Section)

Improvement Project - 05

CORRECTIVE ACTION PLAN

FOR

LAND ACQUISITION AND RESETTLEMENT PLAN

Preparing of the East-West Highway

(Section F 4: Shorapani-Argveta Section) Improvement Project

SEPTEMBER 2019

This corrective action plan is a document of the borrower. The views expressed herein do not

necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be

preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any

designation of or reference to a particular territory or geographic area in this document, the

Asian Development Bank does not intend to make any judgments as to the legal or other status

of any territory or area.

Table of Contents

Table of Contents ................................................................................................................. 2

ABBREVIATIONS ................................................................................................................ 3

1 Introduction ............................................................................................................................. 4

2 Brief review of the project .................................................................................................... 5

3 LARP Review Methodology ................................................................................................. 6

4 Level of LARP Compliance with ADB SPS 2009 ............................................................. 7

5 Corrective Actions Proposed ............................................................................................. 22

6 Consultations ....................................................................................................................... 25

ABBREVIATIONS

ADB Asian Development Bank

AP Affected Person (refers to person affected by LAR)

AH Project Affected Household

CAP Corrective Action Plan

DMS Detailed measurement survey

GEL Georgian Lari

GoG Government of Georgia

GRC Grievance Redress Committee

IA Implementing Agency

JICA Japan International Corporation Agency

LAR Land acquisition and resettlement

LARP Land acquisition and resettlement plan

M&E Monitoring and Evaluation

NAPR National Agency of Public Registry

PIU Project Implementation Unit

PPTA Project Preparation Technical Assistance

RD Roads Department

RDMRDI Roads Department of the Ministry of Regional Development and Infrastructure

of Georgia

RoW Right of way

RDRD Road Development and Resettlement Division

RU Resettlement Unit

SES Socio-economic survey

SPS Safeguard policy statement

1 INTRODUCTION

1. The Government of Georgia (GOG) has received a loan from the Asian Development Bank

(ADB) through a Multi tranche Financing Facility (MFF) for implementing the Road Corridors

Development Program (the Program) to rehabilitate, improve or construct several roads in various

regions of Georgia. The program includes the Khevi–Ubisa-Shorapani-Argveta section (E60

Highway Route) which are financed under separate funding arrangements.

2. The LARP was prepared by IRD and SPEA consulting was based on a preliminary survey

appraisal conducted on November 16, 2017, according to the requirements of the ADB’s

Safeguard Policy Statement (SPS) (2009) as well to the Resettlement Policy Framework prepared

by the East –West Highway Corridor Improvement Project AF- Upgrading and construction of

Khevi-Argveta Section F4 of the E-60 Highway approved on April 2017.

3. Section F4 was originally under consideration for funding from JICA. Accordingly the

LARP was prepared and approved according to JICA guidelines for Environmental and Social

Considerations (April, 2010). The approved LARP was produced as implementation-ready and

approved by Roads Department of Georgia and JICA.

4. The approved LARP was developed in compliance with the Resettlement Policy

Framework (RPF) of the East West Highway Improvement Corridor Project, prepared by the

Roads Department of the Ministry of Regional Development and Infrastructure of Georgia

(RDMRDI) with support from the World Bank (WB). The RPF was disclosed in 2016 under the

parent EWHCI Project, and specificities of the Khevi-Argveta section road section under the

EWHCIP Additional Financing.

5. However, when the Government of Georgia (GOG) had received a loan from the Asian

Development Bank (ADB) through a Multi tranche Financing Facility (MFF) for implementing the

Road Corridors Development Program (the Program) to rehabilitate, improve or construct several

roads in various regions of Georgia, including Khevi–Ubisa-Shorapani-Argveta section (E60

Highway Route) to be financed under a separate funding mechanism; it was identified that the

road section (F 4) to which this LARP applies would then be financed by the ADB.

6. Therefore a decision was made to conduct due diligence of approved LARP, review

existing documentation for land acquisition activities on F4, and assess LARP compliance with

ADB SPS 2009, and then based on the LARP audit, prepare Corrective Action Plan (CAP) for the

LARP to achieve the project consistency with ADB's Safeguards Policy Statement (2009).

2 BRIEF REVIEW OF THE PROJECT

7. The Shorapani–Argveta Road Section F4 (E60 Highway) (the Project) was prepared under

a small-scale technical assistance program. The proposed section improvement required the

construction of 12 tunnels (6 double tubes), 14 bridges, 4 interchanges and several deep cuttings

and high embankments with a total length of 14.7 km.

8. A preliminary survey appraisal on the localization, assessment and evaluation measures

to be delivered to the APs had been done on November 16th 2017 intending to devise the amount

and magnitude of the compensation. The survey was conducted together with the national and

international resettlement expert and an Independent Professional Assessor according to the

international standard on property evaluation.

9. According to the approved LARP, in total 609 (642,825 sq.m.) land parcels owned and/or

possessed by 455 AHs (2047 persons) are affected by the proposed road project requiring

permanent acquisition of land parcels of agricultural (493), residential (50) and non-agricultural

(66) designation.

10. As per approved LARP in total 379 land parcels are severely affected. 40 PAHs belong to

vulnerable groups and 21 households face physical resettlement. Aside to the local households,

the project impact is extended over the owners of 14 project affected business facilities causing

the loss of jobs of 41 employees.

3 LARP REVIEW METHODOLOGY

11. The Consultants, within the scope of the assignment conducted necessary activities, desk

reviews and on-site studies, conducted due diligence of land acquisition and resettlement plan

(LARP review) currently under implementation.

12. The LARP review identified aspects requiring additional improvement and specific

activities to allow the updated LARP to meet the requirements and standards of the

“Implementation Ready LARP” developed in compliance with country legislation and ADB SPS

2009, and best practice from recent ADB financed projects in Georgia. Results and gaps identified

during the LARP audit are described in this CAP to ensure that the project is prepared to

acceptable safeguards standards.

Desk review

13. The Consultants reviewed the approved LARP and LAR detailed budget, reviewed the

records of Grievance Log, and analyzed legal gap analyses and Entitlement Matrix.

14. Since LAR activities have not yet been completed, no External Monitoring Report is

available. No internal monitoring reports have been prepared in the course of LARP

implementation.

15. During the LARP review process, the Consultants focused on the following areas:

Assessment the quality of the LARP document and its compliance with ADB SPS 2009

and Legislation of Georgia required close review of the following aspects:

a. LARP and detailed LAR budget

b. Review and professional evaluation of the valuation methodology exercised to

determine land compensation rates. This task is being undertaken by a firm of

professional valuers – 17 representative sample land plots have been selected

along the length of the proposed highway and these are currently under valuation. 1.

c. Review of Compensation Entitlement Matrix and Compensation Eligibility Criteria

d. Legal Gaps and Mitigation Measures suggested under the LARP

e. Review and assess of communication strategy provided through public

consultations during LARP preparation.

1 Colliers deployed directly by ADB for supplementary valuations on F4.

4 LEVEL OF LARP COMPLIANCE WITH ADB SPS 2009

a. Compensation eligibility criteria

16. Assessment of compatibility of eligibility criteria and entitlement matrix suggested in the

LARP with ADB. As per the approved LARP Compensation Eligibility is defined as below. APs

entitled to compensation or at least rehabilitation provisions under the Project are:

All APs losing land either covered by legal title/traditional land rights, Legalizable, or without

legal status

Tenants and sharecroppers whether registered or not

Owners of buildings, crops, plants, or other objects attached to the land, and

APs losing business, income, and salaries.

17. The approved LARP defines Cut-off date which is the start date of DMS which is 10th of

December, 2017. APs who settle in the affected areas after the cut-off date will not be eligible for

compensation. They will be given sufficient advance notice, requested to vacate premises and

dismantle affected structures prior to project implementation. Their dismantled structures

materials will not be confiscated and they will not pay any fine or suffer any sanction.

18. The Eligibility Criteria defined in the approved LARP meets ADB SPS policy principles.

19. The Khevi-Ubisa project, or F2 Road, provides an appropriate example of a recent ADB

approved LARP of the Roads Department of Georgia that meets the requirements of ADB’s SPS

2009. Since this project, approved in 2018, is part of the same East West Highway as the section

covered by the current LARP, it is considered appropriate that the entitlement matrix of the current

LARP for F4 be compared with the F2 LARP and corrective actions identified and proposed as

required. The following table provides a direct comparison.

Comparison of F2 and F4 Entitlement Matrices

Comparison analyses of F 4 and F 3 Entitlement Matrix

Type of Loss Application Definition of

AH/APs Compensation

Entitlements F 4 Compensation

Entitlements F 2 Corrective

Action NOTE

Land

Permanent loss of all types of land (arable, residential, industrial, commercial) Agricultural Land: Permanent land loss, access or damage.

All land losses independent from impact severity AP losing productive land regardless of impact severity

PAPs (with fully registered title)

PAPs will receive cash compensation at full replacement cost at current market value. The unit rate will be confirmed in the LARP. If any remaining part of the land owned by the registered owners is no longer appropriate for use, such remaining part will also be purchased subject to the agreement with the owner. .

Cash compensation at full replacement cost based on current market value. If the residual plot becomes unviable for cultivation, the project will acquire it if the owner so desires.

No corrective Action required

PAPs (possessors of legalizable land parcel) Legalizable Owner: (APs with title formalization pending and APs who are not registered but legitimately use the land and have residential land or agricultural plots adjacent to the residential land)

Assistance to PAPs in the process of legalization of project affected land parcel being under their possession. Once legalization and registration of ownership title is accomplished, land acquisition will be undertaken and PAP will receive cash compensation at full replacement cost at current market value at unit rate proposed in approved LARP. If any remaining part of the land owned by the registered owners is no longer appropriate for use,

The ownership rights of these Aps will be recognized, the land registered in NAPR and the PAPs provided with cash compensation at full replacement cost. Registration costs will be paid by the Project.

Corrective Action required EM to to specify that: a. “Registration cost will be covered by the Project” b. If any remaining part of the land owned by the registered owners is no longer appropriate for

The F4 EM does not specify that registration costs will be paid by the Project, unlike the F2 EM, though it does mention assistance in the legalization process.


AH/APs Compensation



Action NOTE

such remaining part will also be purchased subject to the agreement with the owner.

use, such remaining part will also be purchased subject to the agreement with the owner.

Leaseholder of private or public lands Agricultural Tenant

Free of charge renewal of lease in other plots of equal value/productivity of affected land parcel or cash compensation equivalent to market value of gross yield of affected land for the remaining lease years (up to a maximum of 3 years). In addition, cash compensation to reimburse the proven investments incurred by the Leaseholder to improve the leased land.

Full Compensation of income of lost crops x the remaining years (up to 4 years) of lease. In case of tenancy no crop compensation will be given to the land owner.

Corrective Action required Additional compensation to be specified in the amount equal to full compensation of lost income for 1 extra year No budget implications at present as no APs identified in this category.

The F4 EM gives compensation for up to 3 years yield plus any proven improvements to the leased land. F2 EM gives compensation for up to 4 years yield, but improvements are not mentioned

Leaseholder (not registered)

Cash compensation equivalent to market value of gross yield of affected land for the remaining lease years (up to a maximum of 3 years).

This category is missing from F2 EM

Non-titled, non-legalizable land users/Squatters

Non-legalizable APs losing agricultural land plot, which is the only land plot owned

Non-legalizable APs losing

Corrective Action required

F4 EM – 3 months


AH/APs Compensation



Action NOTE

Non-legal/Informal Settler: APs that are not legitimate land users or squatters

by AH and provides main source of income for AH, will be compensated with one-time self-relocation allowances in cash equal to 3 months of minimum subsistence income.

agricultural land plot, which is the only land plot owned by AH and provides main source of income for AH, will be compensated with one time allowances in cash equal to 1 year of minimum subsistence allowance.

The amount of minimum subsistence level to be increased up to 1 year. 1 AP is currently identified as eligible for increased compensation.

subsistence allowance

F2 EM – 12 months subsistence allowance

Permanent loss of community land (pastures, grazing land)

Local community losing access to pasture, grazing land

Affected community will be free of charge allocated replacement land of similar size, productivity, and location acceptable to affected community by the local government. If such replacement is not possible, Livelihood Restoration Plan will be prepared and implemented to address the needs of affected community and preserve their livelihood at least similar to pre-project level.

No Corrective Action required

F2 EM mentions Loss Of Community Infrastructure/Common Property Resources And its compensation entitlement reads: “Reconstruction of the lost resource/asset in consultation with community and restoration of their functions

Structures


AH/APs Compensation



Action NOTE

Residential house and auxiliary buildings Residential and non- residential structures/assets

Project affected residential auxiliary buildings dwellings subject to partial/full demolition

All PAPs All AHs regardless of their legal ownership/ registration status (including legalizable and Informal Settlers)

All impacts will be considered as full impacts disregarding the actual impact percentage. Impacts will be compensated in cash at full replacement costs free of depreciation and transaction costs. In addition, Livelihood Restoration initiatives will be provided to PAPs that may face deterioration of livelihood through indirect impact of proposed road project. (e.g. project impact is extended only on residential dwelling subject to full cash compensation at replacement costs and additional one-time allowances to transport salvaged materials and personal belongings. However, other income generating assets (agricultural land/private commercial facilities) may remain outside of project impact; correspondingly, these assets may not be included in the suggested compensation package. PAPs after moving and settling down to a new location may at least temporarily lose income due to lack of access (increased travel time, complicated

Cash compensation for building/structures losses at full replacement costs free of depreciation and transaction costs.

No corrective action required


AH/APs Compensation



Action NOTE

accessibility) to the above mentioned income generating assets not affected by the proposed project.

Residential tenants/renters

One-time allowance equals monthly rental fee (specified in the lease agreement) multiplied by 3; if Lease agreement is not available, minimum monthly salary multiplied by 3; In addition one-time technical assistance for transportation personal belongings to a new location; or one-time cash allowance to cover costs for transportation personal belongings. LARP developer consultant will determine reasonable amount depending on the project nature and specificity.


This sub-category is not included in the F2 EM

Commercial structure

Project affected commercial facilities subject to partial/full demolition

Titleholder Cash compensation at replacement cost at current market value calculated for project affected structure and other fixed assets free of salvageable materials, depreciation and transaction costs. If partial demolition threats deterioration of structure or raises safety and security concerns the cash


This category is not included in the F2 EM


AH/APs Compensation



Action NOTE

compensation, will apply to the full structure.

Tenant of commercial facility

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


This sub-category is not included in the F2 EM

State/Municipality owned buildings affected by project Loss of common property resources

Project affected state/Municipality owned buildings subject to partial/full demolition Community / Public Assets

IDPs, refugees, squatters occupying facilities for residential purposes Community / Government

Accommodation in a government resettlement area or a self-relocation allowance as stipulated in the approved LARP.

Reconstruction of the lost resource/asset in consultation with community and restoration of their functions

No corrective action required No IDPs identified.

This is worded differently between the two EMs and do not necessarily imply or apply to the same things.

Wording can be revised in updated LARP

Fences/Walls All PAPs with fences to be affected

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


This category is not included in the F2 EM


AH/APs Compensation



Action NOTE

Annual Crops Crops

Crops affected Standing crops affected or affected agricultural land, used permanently for crop cultivation.

All PAPs (including squatters) All APs regardless of legal status (including legalizable and Informal Settlers)

Crop compensation in cash at gross market value of actual or expected harvest. Compensation for this item will be provided even in case if the crops were harvested. Crop compensation will be paid to landowners, land users, tenants or other users based on their specific sharecropping agreements being made between these parties, if any.

Crop compensation in cash at market rate for gross crop value of expected harvest.

No Corrective Action Required

Perennials standing on private land parcels Trees

Project affected Fruit bearing perennials Trees affected


Cash compensation at market value on the basis of type, age, and productive value of fruit tree; Each fruit bearing tree in addition shall be compensated for purchase of saplings. PAPs will be eligible to dispose logged trees themselves. Construction company ensures free logging and delivery of timber to the residence of PAPs.

Cash compensation at market rate on the basis of type, age and productive value of the trees. (Based on the expected yield of the tree, multiplied by the number of years required to grow a tree of equivalent productivity).


Unlike the F4 EM, the compensating the costs of purchase of saplings and arrangements by the Contractor to deliver of the logged timber to the residence of PAPs is not mentioned in the F2 EM

Project affected non-fruit bearing perennials

All PAPs (including squatters)

No cash compensation will be issued for perennials not bearing fruits. PAPs will be eligible to dispose logged trees themselves.


Non-fruit bearing perennials are not mentioned in the F2 EM separately.


AH/APs Compensation



Action NOTE

Wording can be revised in updated LARP

Though the Compensation Entitlement column for Trees reads the following: Cash compensation at market rate of the basis of Type, age and productivity value of the trees.

Perennials (on public/State land)

Standing trees Perennials standing outside of private land

Construction Company will deliver logged down trees and transfer to the Municipality. Municipality may later distribute to local population below poverty levels.


This category is not included in F2 EM

standing on the forestry land

Standing non fruit trees

Perennials standing outside of private land

The legal implementation of the mentioned activity requires, that Perennials standing on the forestry land must be delisted from the State forest fund in accordance with the corresponding Decrees of Government of Georgia Construction Company will deliver logged down trees and transfer to the Municipality. Municipality may later distribute to local population below poverty levels.


This category is not included in F2 EM

Income loss


AH/APs Compensation



Action NOTE

Lessors/landlords Crops Trees

Loss of income through termination of Lease agreements Standing crops affected or affected agricultural land, used permanently for crop cultivation. Trees affected

All PAPs holding lease/rental agreement All APs regardless of legal status (including legalizable and Informal Settlers)

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

Crop compensation in cash at market rate by default at to gross crop value of expected harvest. Cash compensation at market rate on the basis of type, age and productive value of the trees. (Based on the expected yield of the tree, multiplied by the number of years required to grow a tree of equivalent productivity).

No corrective action required Wording can be revised in updated LARP

Income loss is defined differently between the two EMs. The F4 emphasizes on the lease of land and its duration, whereas the F2 emphasizes on the crop affected and its value based on type, age and expected harvest.

Business Employment Business Employment

Temporary or permanent loss of business or employment Business/employment loss


All kind of running business (officially registered or not-vendors etc.) will be compensated in cash equal to 1-year based on tax declaration or, if unavailable (Loss of income from both formal and informal economic activities) based on the official minimum substance income. All kind of unofficial business (e.g. street venders) will compensate based on official minimum substance income multiple on active period up to 1 year.

Owner: (i) (permanent impact) cash indemnity of 1 year net income or in the absence of income proof, One time minimum subsistence allowance in cash up to 12 months; (ii) (Temporary impact) cash indemnity of net income for months of business stoppage. Assessment to be based on tax declaration or, in its absence, minimum subsistence allowance

Corrective action required Reword to match F2 and adjust compensation tables.

F4 Wording incomplete : 1 year of what? Income, NET profit? F4 does not specify whether temporary or permanent and combines both to be paid a compensation for 1 year.


AH/APs Compensation



Action NOTE

Worker/employees: Indemnity for lost wages for the period of business interruption. In cases where tax declaration reports are unavailable, then official minimum monthly salary multiplied to the number of months of actual stoppage of business.

for months of business stoppage; Permanent worker/employees: indemnity for lost wages equal to one time minimum subsistence allowance in cash for 3 months. Business income shall also cover all individual value-added activities beyond direct consumption/sale of agricultural produce (i.e. informal business activities at household level which are currently unaccounted for due to the lack of economic activity data for the affected populations). There will be a verification process during the LARP implementation to fully account for such activities.

In contrast, the F2 EM divides allowances in accordance to the duration of impact.

Agricultural workers losing their contract

Cash indemnity corresponding to their salary for the remaining part of the agricultural year, and where needed livelihood restoration measures


No similar sub-category in F2 EM

Additional Rehabilitation Measures

Technical assistance in legalization,

All PAPs with registered title/possessors of

Free of charge technical assistance to PAPs during legalization, sub-division of


This is covered in the F2 EM under


AH/APs Compensation



Action NOTE

registration procedures

legalizable land parcels

project affected parcel, registration of corrections and/or sales transaction. Project related State taxes, official fees and transactions costs if not waived will be covered by the GoG.

the legalizable land registration process

Relocation/Shifting allowance

Transport and transitional livelihood allowances Transport/transit ion costs

All PAPs affected by relocation All AHs to be relocated

Will equal allowance for 3 months of consumer basket for family of five members, plus 200 Gel for transportation.

An allowance covering transport and livelihood expenses for the transitional period. (200 GEL as vehicle hire charge + minimum subsistence allowance x 3 months.

No corrective action required.

Community Resources

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

No corrective action required.

Vulnerable PAPs Vulnerable People Allowances

PAPs below poverty line; disabled people; pensioners; widows; Female headed household; impoverished; IDPs; Refugees Particularly disadvantaged Households who might

Allowance equivalent to 3 months of minimum subsistence income** and employment priority in project-related jobs.

One time minimum subsistence allowance in cash for 3 months and employment priority in project related jobs where feasible. Additional assistance in kind will be provided to facilitate relocation or transition – this may include logistics, relocation planning,

Corrective action required 3 categories: elderly

households with no means of support; household

s without

F2 more inclusive


AH/APs Compensation



Action NOTE

suffer disproportionately or face the risk of being marginalized from the effects of land acquisition and resettlement. These are; (i) female-headed households with and/or without dependents; (ii) disabled household heads; (iii) poor households as defined by the official poverty line; (iv) elderly households with no means of support; (v) households without security of tenure; (vi) cultural or ethnic minorities; and (vii) refugees or internally displaced people.

assistance with replacement

security of tenure; cultural or

ethnic

minorities are left out from the F4 EM and need to be included

Severely Affected Severe Impacts

>10% income loss

Aps who will lose more than 20% of land plot. All severely affected AHs

Severely AH will receive an allowance equivalent to 3 months minimum subsistence for a family of 5 person

Agricultural income: 1 additional crop compensation for 1 year’s yield of affected land or, for other

Corrective action required


AH/APs Compensation



Action NOTE

Including informal settlers

incomes: an allowance covering 3 months of minimum subsistence.

Threshold for severe impacts needs to be decreased from 20% to 10%.

Temporary impact Unforeseen impacts during construction, including temporary impacts and impacts on livelihoods not otherwise assessed.

Loss of access to land parcel Impacts during construction to properties or assets out of the corridor of impact or RoW

Owners/Users All APs

Temporary access will be set up by Construction Company. In cases of temporary loss of access to land parcel results in loss to crops, the construction company will be compensate APs. All losses and amount of due compensation shall be determined according to the principles of compensation entitlements provided under the RPF and LARP.

Due compensation to be assessed and paid when the impacts are identified based on the above provisions and on the requirements of SPS 2009.


Avoidance of interruption of temporary access road to the business activity

Business units

Temporary access will be set up by Construction Company.


No such sub category in F2 EM

Temporary loss of income caused by occupying land parcels for the

Owners/users During camps' site selection process, Construction Company should coordinate with relevant state agencies and give priority to vacant lands not used for



AH/APs Compensation



Action NOTE

camps and quarries

agricultural /residential purposes. In case the land parcels selected for camps and quarries will have private land-users, all losses and amount of due, compensation shall be determined according to the principles of compensation entitlements provided under the RPF and LARP.

Any other unforeseen Impacts

As required Any Road Department and the construction contractor will address and mitigate/compensate unforeseen resettlement impact during project.


5 CORRECTIVE ACTIONS PROPOSED

Compensation

20. Compensation, over and above that provided for in the JICA approved LARP, is

determined to be payable in the following areas:

Compensation for Land

21. The JICA approved LARP, in Table 2-7 indicates one AH in the category of “State Owned

Illegally used by Private Users (Non-legalizable).” In accordance with the revised entitlement

matrix, this AP will be eligible for one year of minimum subsistence allowance, equal to GEL 4184

Compensation for Loss of Business and other Incomes

22. The JICA approved LARP determined compensation for loss of business and other

incomes payable in accordance with the following tables:

Table 9-3 Businesses (original)

N Income with tax

declaration Employs (With tax declaration)

Employs (Without tax declaration)

Income Compensation

Salary Compensation

1 119204 3 0 119204 6000

2 624 0 14 624 0

3 1300 0 0 1300 0

4 700 0 0 700 0

5 -71 0 6 4184.4 0

6 2445 4 0 2445 10500

7 3759 0 5 3759 0

8 8156 0 0 8156 0

9 3767 0 0 3767 0

10 -1783 3 4 4184.4 4800

11 - 0 0 4184.4 0

12 - 0 1 4184.4 0

13 - 0 1 4184.4 0

10 31 160877 21300

23. Based on additional compensation deemed payable, the tables are updated as follows:

Table 9-3 Businesses (revised)

N Income with tax

declaration Employs (With tax declaration)

Employs (Without tax declaration)

Income Compensation

Salary Compensation

1 119204 3 0 119204 6000

2 624 0 14 624 58716

3 1300 0 0 1300 0

4 700 0 0 700 0

5 0 6 4184.4 25164

6 2445 4 0 2445 10500

7 3759 0 5 3759 20,900

8 8156 0 0 8156 0

9 3767 0 0 3767 0

10 - 3 4 4184.4 21576

11 - 0 0 4184.4 0

12 - 0 1 4184.4 4184.4

13 - 0 1 4184.4 4184.4

10 31 160877 151224

Resettlement Assistance

24. The JICA approved LARP determined compensation for resettlement assistance in

accordance with the following table:

Table 9-8 Resettlement Assistance (original)

Assistance Unit price (Gel) Number Total compensation

Severe affected households 1,046 379 396,434

Socially vulnerable families 1,046 36 37,656

Relocation/Shifting 1,246 21 26,166

Total 460,256

25. Based on additional compensation deemed payable, the tables are updated as follows:

Table 9-8 Resettlement Assistance (revised)

Assistance Unit price (Gel) Number Total compensation

Severe affected households 1,046 426 455,596

Socially vulnerable families 1,046 36 37,656

Relocation/Shifting 1,246 21 26,166

Total 519,418

26. In addition, the numbers of households deemed vulnerable shall be updated during CAP

implementation to take into account the broadened definition as provided in the revised

entitlement matrix and the total compensation amount increased accordingly for the respective

allowance.

6 CONSULTATIONS

27. According to the approved LARP, two (2) LARP Pubic Disclosure meetings were

conducted in Zestaphoni city; one on 20.12.2017 attended by 27 persons and another for 48

attendees on 24.01.2017.

28. In addition, individual consultations were held with the owners of the residential houses,

business owners and some vendors. Consultant’s team contacted and had consultations with

stakeholders who didn’t attend on first Public Consultation. During the consultations, Stakeholders

was given Information leaflets and Information about project impact.

29. Individual consultation meetings were held on 25th and 26th of January by representatives

of Gamma Consulting. Questions from stakeholders as asked during the consultations are given

below, as well as photos taken at the meetings. For APs who didn’t attended the Public

Consultation meeting and were not visited individually because of their absence at location,

information leaflets and contact information were left for them at the Zestaphoni City Hall Building.

30. Although the compensation procedures and approaches for determination compensation

amounts for affected assets, such as land, annual crops and fruit bearing perennials were briefly

described, no compensation rates were voiced to have the feedback of PAPs. The limited

information the PAPs were provided was that Independent auditors were “fixing the land market

price” by then based on relevant research of land market and valuation of project affected land

plots.

31. The opportunity to explain the approach used for determinations market value of land was

not described and explained in informal language that would allow PAPs to ask more questions

at that phase and share their opinion and comments instead of later complaints during LARP

implementation with already approved unit rates.

32. Additional public consultations will be conducted to cover all villages where the reside the

AHs eligible to severe impact compensation in compliance with ADB SPS 2009 and findings of

corrective action. These consultations will be held immediately after the substantial completion of

the implementation of the current JICA approved LARP.

33. The information on the date, time and location of the venue for Public Consultations will

be widely disseminated through the LARP Consultant and RD regional office staff.

34. To ensure high attendance all AHs who in compliance with ADB SPS 2009 became eligible

to onetime allowance for severe impact will be individually invited through telephone calls.

35. In order to avoid any misunderstanding among the rest of the PAPs the organizers of

public consultation meetings will ensure the attendance of other PAPs who already received

compensation and are not eligible to extra payment.

36. The purpose of this initiative is to ensure that local people are well informed on the reason

and fairness of this change and feel kept involved in LARP implementation process.

37. This approach will prevent uncertainly or wrong expectation of other PAPs who have

already receive full compensation according to the approved LARP.

38. The revised Public Information Booklets will be handed over to all attendees. Extra hard

copies will be available at the RD regional center and local government office.

Village/town Location of Public

Consultations

Zsetaphoni Meeting hall in c.

Zestaphoni

Gamgeoba Building

Argveta

Qveda Sakara

Shorapani Building of Pubic

Center in v.

Shorapani Puti

Ilemi

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