CORRECTIVE ACTION PLAN ON UNANTICIPATED IMPACTS

LARP1 AND LARP3

Armenia: Sustainable Urban Development Investment Program Tranche 1

Project Number: 42417

Loan Number: L2752

Prepared: July 2015

Prepared by the Yerevan Municipality

Yerevan Project Implementation Unit

ABBREVATIONS

ADB Asian Development Bank

AF Affected Family

AP Affected Person

AH Affected Household

AMD Armenian Dram

DESC Detailed Engineering and Construction Supervision Consultant

DMS Detailed Measurement Survey

LAR Land Acquisition and Resettlement

LARF Land Acquisition and Resettlement Framework

LARP Land Acquisition and Resettlement Plan

YM Municipality of Yerevan

PIU Project Implementation Unit

RA Republic of Armenia

SES Socioeconomic Survey

SPS Safeguard Policy Statement

SRS Social and Resettlement Specialist

USD American Dollar

TABLE OF CONTENTS

1 INTRODUCTION ...................................................................................................... 4 1.1 Procedures to be initiated due to new project impact cases (changes) emerged during the LARP implementation ................................................................................... 4 1.2 Background to the design changes ...................................................................... 5

2 IMPACT ASSESSMENT AND CENSUS OF AFFECTED HOUSEHOLDS ............. 7 2.1 Background ............................................................................................................ 7 2.2 Survey Methodology .............................................................................................. 7 2.3 Impact on Land ....................................................................................................... 8

2.3.1 Land classification by the Armenian Land Code...................................................... 8 2.3.2 Land Losses ........................................................................................................... 8

2.4 Impact on Building and Structures ....................................................................... 9 2.4.1 Permanent and Movable Structures ........................................................................ 9 2.4.2 Fences and Improvements ..................................................................................... 9

2.5 Crops ..................................................................................................................... 10 2.6 Trees ..................................................................................................................... 10 2.7 Census of Affected Households and Affected Persons .................................... 11

2.7.1 Gender and Ethnicity of APs ..................................................................................12 2.7.2 Impact on Poor and Vulnerable Groups .................................................................12

3 RESSETLEMENT BUDGET .................................................................................. 13 3.1 Background .......................................................................................................... 13 3.2 Sources and Allocation of Funds ........................................................................ 13 3.3 Compensation for Acquired Land ....................................................................... 13

3.3.1 Valuation Approach ...............................................................................................13 3.4 Compensation for Buildings, Structures and Improvements ............................ 14

3.4.1 Non Residential Buildings ......................................................................................14 3.4.2 Fences and Improvements ....................................................................................14

3.5 Compensation for Crops and Trees .................................................................... 15 3.5.1 Crops .....................................................................................................................15 3.5.2 Fruit Trees .............................................................................................................15 3.5.3 Wood Trees ...........................................................................................................17

3.6 Relocation Allowances ........................................................................................ 18 3.7 Budget (Cost) Summary ...................................................................................... 19

4 CONSULTATION AND INFORMATION DISCLOSURE ....................................... 19 4.1 Meeting with APs .................................................................................................. 19 4.2 Signing of Protocol, Agreements and Contract ................................................. 20

1.1 Procedures to be initiated due to new project impact cases (changes)

emerged during the LARP implementation

1. Due to some changes in design or/and issues not envisaged during the project preparation, some additional land acquisition cases emerged at the Artashat Highway Section covered by LARP 1 and the New Shirak Street Section, covered by LARP 3. The following paragraphs (1-4) summarize steps that will be taken by the PIU when the impacts defined by LARP 1 and LARP 3 are changed during the LARP implementation:

(i) Surface of land plots to be acquired is changed:

(ii) The recalculation of compensation price will be based on the same unit price for 1m

2 used for valuation of assets acquired under LARP (Valuation report) and

multiplied by the new affected area.

(iii) There are fixed improvements (crops, trees etc.) on the affected land:

2. Extent of impact and recalculation of the compensation amount will be based on measured and verified affected surface and valuated by using the established methodology and the unit rates used for other assets acquired under the LARPs 1 and 3. A new map (plan) will be prepared to define the verified acquired part of the land.

3. New private lands to be acquired during the project implementation stage are subject to the requirements set under the Negotiation Resettlement or Eminent Domain Government Decree, which will be initiated for the new lands. Appropriate procedures will be carried out as defined by the “RA Law on Alienation of the property for public and state purposes”, in particular:

(i) Public consultation will be organized for new APs (including the notification on Eminent Domain)

(ii) DMS/Census/SES will be initiated for the newly affected lands or other assets (such as, private trees on public land) and their owners

(iii) Appropriate maps (plans) will be prepared based on a detailed measurement

(iv) Description protocols will be developed and signed with the APs

(v) Valuation of assets will be done according to the valuation methodology approved for this LARP

(vi) Draft acquisition contracts will be notified and negotiated with APs to sign the contracts, otherwise the PIU will initiate an expropriation.

4. If other unforeseen issues/changes which would trigger new impact and due compensation, the appropriate mechanism to address it, will be developed and agreed with ADB. Such unforeseen changes will be verified and recorded by the external monitoring expert/firm in the compliance reports.

1 INTRODUCTION

1.2 Background to the design changes

5. Unanticipated impacts found under LARP1 and LARP3 in Artashat highway are caused by the design changes needed for the relocation of utilities and for providing accesses to the not-directly-affected properties.

6. Artashat highway: During the construction works in Artashat, a new industrial sewage pipeline was found. As the relevant information was not available during preparation of the utility design, relocation of the pipeline were not envisaged at that stage. The pipeline was buried deep 4m underground. It is 330m long and 4-5m wide which caused temporary effect on additional land area. As a result of pipe relocation, 2 land plots illegally used by 2 AHs, are temporary impacted. There are 8 fruit trees affected on these two land plots. Out of this, 6 trees are fruit-bearing and 2 are not-yet productive tree.

7. The utility design envisaged the water pipeline (see the blue line) to run under the Railway (see yellow lines) at Artashat highway (km 0+280 - km 0+320). The existing duct was fixed under the bridge (see the red circle) according to the Initial Survey conducted during the design preparation stage. The utility survey conducted prior to the construction works, revealed that the duct actually needs to be positioned a bit more to the right from the designed part (see the blue circle) on the relocation line (see green line). This caused a temporary effect on an illegally used land plot and resulted in cutting of 3 fruit-bearing trees. The affected trees belong to one household.

8. These new impacts are located at the area covered by LARP1. The land plots were temporarily affected during the placement of pipes; thus, only the inventory and valuation of permanently affected trees were conducted.

Figure 1-1 Water pipeline relocation Map

9. Artashat highway-New Shirak roundabout (km 0+100-km 0+180): It has become necessary to shift the alignment of the bridge at Km 0+140 оn Artashat highway in order to accommodate а service road to provide access to adjacent owners. This area refers to LARP 3. The change in the alignment resulted in an impact on 1 owned and 2 illegally used land-plots with 1,775.9 m

2

affected area, 1 permanent affected (34.97 m2) and 2 movable structures, 56 l.m fence, 34.1 m

2

concrete area, 192 m2 cable In total, 343 fruit trees, 56 wood trees and 400m

2 crop are affected

on 2 illegally held land plots used as an orchard.

Figure 1-2 Map of shifted design

2.1 Background

10. For this document, the data was prepared in May - June 2015. As the impact under LARP 1 is a temporary impact on illegally used land which became usable immediately after the placement of the pipes, only the inventory and valuation of permanently affected trees were conducted. In order to accurately assess the extent of the unanticipated impacts under LARP3, the following surveys were undertaken:

(i) Detailed Measurement Survey (DMS) - to measure the affected area of the lands, buildings space and the number and types of affected assets.

(ii) Inventory of Losses- to identify and evaluate the characteristics of the land, buildings and assets to be acquired.

(iii) Valuation of Replacement Cost of the Affected Assets - to identify the cost of compensation of lost assets, income and other livelihood sources and allowances for development of the LAR budget.

(iv) Census Survey - to identify the exact number of AHs and their members, including some elementary social characteristics such as gender and ethnicity.

2.2 Survey Methodology

11. The scope of the DMS and assets inventory included identification, classification, measurement and valuation of the following assets, or attributes:

(i) Land (agricultural, residential, industrial and commercial plots), including improvements on affected land

(ii) Buildings/structures (non-residential structures, including classification by building category and construction type)

(iii) Legal status of the AP land occupancy

(iv) Area and type of crops

(v) Number and type of trees

2 IMPACT ASSESSMENT AND CENSUS OF AFFECTED

HOUSEHOLDS

2.3 Impact on Land

2.3.1 Land classification by the Armenian Land Code

12. Based on the actual usage, the affected land categories are grouped into commercial and agricultural categories.

(i) Agricultural Land, which is used to grow some fruit or wood/ decorative trees and bushes.

(ii) Commercial Land, which is used for businesses such as shops, car repair stations and petrol stations.

2.3.2 Land Losses

13. Affected land-plots are located in Artashat highway covered by LARP 3. In total, there are 3 land plots covering surface area of 1,775.90 m². Two land plots (1,461.50 m2) are categorized as agriculture land as are used to grow orchards. The third land plot is used for the commercial purposes. Overall, 3 households are affected by impact on land. (Table 2-1)

14. Based on the legal status, the affected land plots are categorized as private and community land:

(i) Private-titled land - 1 land plot belongs to a person having a legal title over the affected land parcels;

(ii) Community land - this is the land that belongs to the communities. The survey found that 2 land plots are illegally used by 2 APs without any legal title.

Table 2-1 Land impact

LARP 3

Type of Land

Commercial Agriculture Total

No of AH

No of Land plots

m2

No of AH

No of Land plots

m2

No of AH

No of Land plots

m2

Private 1 1 314.40 - - - 1 1 314.40

Community land (illegally used)

- - - 2 2 1,461.50 2 2 1,461.50

Total 1 1 314.40 2 2 1,461.50 3 3 1,775.90

2.4 Impact on Building and Structures

2.4.1 Permanent and Movable Structures

15. In total, two1 households will have some impact on structures. Two households have a temporary

impact as their structures are movable (Table 2-3). There is only one affected illegal structure with an area of 34.97m

2. The structure is a metal shed located on the legally used land plot.

(Table 2-2).

Table 2-2 Impact on Permanent Structure

LARP 3

Type of affected structure

Construction type

Building Affected surface

Land plots AH Legal Illegal total

No m2 m

2 m

2 No Usage type No

Shed Metal 1 - 34.97 34.97 1 owned 1

16. Two movable structures, one shop and one non-operating greenhouse, will be affected. Dismantling and assembling as well as the transportation costs as per the LARP entitlements, will be provided to the APs to relocate structures. (Table 2-3)

Table 2-3 Impact on Movable Structure

LARP 3

Type of affected structure

Construction type

Building Affected surface

Land plots AH

No m2 No Usage type No

Shop Metal 1 22.16 1 Legally used 1

Non-operating greenhouse

Metal 1 140 1 Illegally used 1

Total 2 162.16 2 - 2

2.4.2 Fences and Improvements

17. A total of 56 linear meters of fence and 226.1m² of improvements made by the AP on 1 land plot is measured and valuated for compensation. These are 34.1m

2 concrete area 42m of metal pillar

and 150m Cable. (Tables 2-3, 2-4)

Table 2-4 Impact on Fence

LARP 3

Material Length Land plots AH

M No No

Metal fence 56.0 1 1

1 1 AH has a 1 permanent affected shed and 1 movable shop.

Table 2-5 Impact on Improvements

LARP 3

Type Material Land plots Area Length AH

No m2 l.m No

Area Concrete

1

34.1 -

1 Cable - - 150

Pillar Metal - 42

Total 1 34.1 192 1

2.5 Crops

18. There will be 400 m2 of greens (seed) on 1 plots used by 1AH under LARP 3. There were not any

crops affected on the land plots under LARP 1.

Table 2-6 Impact on Crops

LARP 3

Type of crop

Affected

area

Annual

productivity Land plots AH

m² kg/ m² No No

Greens (seed) 400 0.3 1 1

Total 400 - 1 1

2.6 Trees

19. Total 354 fruit trees will be affected, 295 of which are productive. Out of this, 343 fruit trees are included in LARP 3 and 11 fruit trees are included in LARP 1.

20. Most of the affected bushes are dewberries and grapes and of the affected trees are Dwarf (Malus pumila) apples, peaches and cherries. In total, 2 households under LARP 3 and 3 households under LARP 1 will be affected by fruit trees and bushes loss. A summary of information on the affected fruit bushes and trees is presented in the following table.

Table 2-7 Impact on Fruit Trees

Type of tree Seedling

Not yet productive

Productive Total Land plot

AH

No No No No No No

LARP 3

Cherry - 1 24 25

2 2

Peach - 19 7 26

Walnut - 8 6 14

Fig - - 3 3

Mulberry 1 1 4 6

Grape 4 8 27 39

Apple 1 - 10 11

Type of tree Seedling

Not yet productive

Productive Total Land plot

AH

No No No No No No

LARP 3

Apricot - 1 5 6

Dwarf apple (Malus Pumila)

12 - 71 83

Dewberry - - 120 120

Plum (shlor) - - 1 1

Plum - - 3 3

Quince - - 3 3

Pear - - 1 1

Hazelnut - 1 1 2

Subtotal 18 39 286 343

LARP 1

Pear - 1 - 1

3 3

Apple - 1 1 2

Apricot - - 3 3

Plum(shlor) - - 1 1

Quince - - 1 1

Mulberry - - 2 2

Walnut - - 1 1

Subtotal - 2 9 11

Grand Total 18 41 295 354 5 5

21. There will be 56 wood trees affected by the LARP 3 section. The most affected is poplar (43). Of all affected trees, about 76.8% are seedlings. 2 households will be affected by loss of wood trees. There are no affected wood trees on the land plots under LARP 1.

Table 2-8 Impact on Wood Trees

LARP 3

Type Seedling

Medium growth

Full growth

Total Land plot

AH

No No No No No No

Ash tree 6 7 - 13

2 2 Poplar 40 - 3 43

Total 46 7 3 56

2.7 Census of Affected Households and Affected Persons

22. The Census identified 6 affected families with a total of 30 members. 3 AHs were already included in the LARP 1. Remaining 3 AHs are newly affected.

Table 2-9 Affected AH and APs

Section AH AP

No No

LARP 3 3 13

LARP 1 3 17

Total 6 30

2.7.1 Gender and Ethnicity of APs

23. The Census data shows that the number of female APs is 16 (53%) of the total number of APs and male 14 (47%). All APs are Armenians.

Table 2-10 Gender Profile of Affected Persons

Gender AH Members

No % of the total

Male 14 47

Female 16 53

Total 30 100

2.7.2 Impact on Poor and Vulnerable Groups

24. The Census data shows that there are no poor2, woman and elderly headed households affected

by these unforeseen impacts.

2 As defined in the LARF.

3.1 Background

25. This chapter describes the methodology adopted for the determination of unit rates, cost of LAR and compensation that will be paid to APs for the unanticipated impacts caused by sections of LARP 3 and LARP 1. The compensation entitlements of different categories of APs presented in this chapter have been defined according to the principles adopted in the LARF. The compensation rates were determined by a certified independent evaluator using transparent methodology that was accepted by the ADB, the PIU/YM and GoA.

3.2 Sources and Allocation of Funds

26. As the LARP 1 Project is closed, all compensation costs of unanticipated impacts measured and valuated under LARP 3 and LARP 1 will be covered by the funds of LARP 3. The compensation costs will be financed from the following sources:

27. The PIU should undertake measures to request funds from the relevant financing sources needed for implementation of LARP 3 and timely allocate them to APs transferring to the AP's individual account opened in his/her name in a commercial bank operating in the RA.

3.3 Compensation for Acquired Land

3.3.1 Valuation Approach

28. For the valuation of all unanticipated impacts was applied the same methodology defined in the previous LARPs. Compensation to Legal Land Owners and Rehabilitation Allowance for Illegally Used Land

29. The compensation to be paid to legal land owners was calculated at replacement cost plus addition of 15% which is in accordance with the RA Law on Eminent Domain. The total cost for the compensation to legal landowners is 10,521,396.00 AMD.

30. The rehabilitation allowance for illegally used land will amount to 25% of the market value of the land. In total 1,806,092.19 AMD for 1,461.50 m² will be paid to illegal users of Yerevan Municipality land as a rehabilitation allowance for their livelihood losses.

Table 3-2 Compensation for Private and Community land

LARP 3

3 RESSETLEMENT BUDGET

Land category

Type

Land plot

Affected area

Unit price

Total cost Total

compensation (+15%)

Total compensation

(+25%) Total

No m2 AMD AMD AMD AMD AMD

Commercial Private 1 314.40 29,100.0 9,149,040.0 10,521,396.00 - 10,521,396.00

Agriculture Community

land 2 1,461.50 4,943.12 7,224,368.78 - 1,806,092.19 1,806,092.19

Total 3 1,775.90 - 16,373,408.8 10,521,396.00 1,806,092.19 12,327,488.19

3.4 Compensation for Buildings, Structures and Improvements

3.4.1 Non Residential Buildings

31. In total, 430,830AMD for 1 affected structure with an area of 34.97 m², will be paid to non-legal users of structures as a result of land acquisition.

Table 3-4 Compensation for Non-residential building LARP 3

Type of affected structure

Construction type

Building Affected surface Unit

price Total Cost

Total Compensation

Legal Illegal total

No m2 m

2 m

2 AMD/m

2 AMD AMD

Shed Metal 1 - 34.97 34.97 15,400.0 538,538.0 430,830.0

3.4.2 Fences and Improvements

32. All improvements done by APs, regardless of their status, are subject to compensation. In total 782,650 AMD will be paid for different types of improvements. Compensation for affected fences amounts to 214,971 AMD.

Table 3-6 Compensation for Improvement LARP 3

Type Material Land plots Area Length Unit price Compensation

No m2 l.m AMD AMD

Area Concrete

1

34.1 - 6,500 221,650.00

Cable - - 150 1,500 225,000.00

Pillar Metal - 42 8,000 336,000.00

Total 1 34.1 192 - 782,650.00

Table 3-7 Compensation for Fence

LARP 3

Material Length

Land plots

Unit price

Market value Compensation for legal

(market value +15%)

M No AMD/m AMD AMD

Metal 56.0 1 3,338.0 186,931.0 214,971.0

3.5 Compensation for Crops and Trees

3.5.1 Crops

33. The crop compensation is 360,000AMD for greens/herbs (seed). Crop compensation will be paid in cash at market rate at the gross crop value of the expected annual harvest.

Table 3-8 Compensation for Crops

LARP 3

Type of crop

Affected area

Annual productivity

Price Sum

m² kg/ m² AMD/m² AMD

Greens (seed)

400 0.3 900 360,000

Total 400 - - 360,000

3.5.2 Fruit Trees

34. Compensation for fruit trees is different for productive, not yet productive trees and seedlings:

(i) Fruit bearing trees: compensation at replacement cost for lost income based on the net market value of one year’s income multiplied by the number of years needed to grow a fully productive tree.

(ii) Not-yet-fruit-bearing trees: regardless of their age these trees will be compensated at replacement cost of productive inputs for the number of years needed to grow a tree to the productive age.

(iii) Seedlings: compensation for the market value of the seedling

35. In total 18 fruit trees saplings will be compensated in the amount of 18,000 AMD. 41 not-yet productive trees will be compensated in amount of 284,243 AMD. 295 Fruit bearing trees and bushes will be compensated in amount of 8,497,327 AMD. The particulars of compensation for the affected seedlings and fruit-bearing trees are summarized in the following tables.

Table 3-9 Compensation for Seedling

LARP 3

Type Trees Seedling cost Total compensation

No AMD/tree AMD

LARP 3

Type Trees Seedling cost Total compensation

No AMD/tree AMD

Dwarf apple 12 1,000 12,000

Grape 4 750 3,000

Apple 1 1,000 1,000

Mulberry 1 2000 2000

Total 18 - 18,000

Table 3-10 Compensation for Not-yet Productive Trees

Not yet productive

Type of tree Trees

Not yet productive cost

Total compensation

No AMD/tree AMD

LARP 3

Cherry 1 5,610 5,610

Peach 19 3,211 61,009

Walnut 8 14,896 119,168

Mulberry 1 7,270 7,270

Grape 8 6,020 48,160

Apricot 1 10,610 10,610

Hazelnut 1 14,896 14,896

Subtotal 39 - 266,723

LARP 1

Apple 1 8,510 8,510

Pear 1 9,010 9,010

Grand Total 41 - 284,243

Table 3-11 Compensation for Fruit Bearing Trees Fruit bearing trees

Type of tree

Affected trees

Annual yield

Unit cost

Years to regrow to productive

level

Unit cost per tree

Total compensation

No kg AMD/kg No AMD AMD

LARP3

Cherry 24 20 308.1 4 24,648 591,552

Peach 7 40 327 3 39,240 274,680

Walnut 6 30 1118 6 201,219 1,207,314

Fig 3 25 700 4 70,000 210,000

Mulberry 4 90 400 4 144,000 576,000

Grape 27 25 321.5 4 32,150 868,050

Apple 10 50 333.7 6 100,110 1,001,100

Fruit bearing trees

Type of tree

Affected trees

Annual yield

Unit cost

Years to regrow to productive

level

Unit cost per tree

Total compensation

No kg AMD/kg No AMD AMD

LARP3

Apricot 5 80 374.75 6 179,880 899,400

Dwarf apple (Malus Pumila)

71 15 334 6 4,008 284,568

Dewberry 120 2 600 3 3,600 432,000

Plum(shlor) 1 25 250 5 31,250 31,250

Plum 3 30 321 4 38,520 115,560

Quince 3 25 824.1 6 123,615 370,845

Pear 1 60 642.15 6 231,174 231,174

Hazelnut 1 20 1000 6 120,000 120,000

Sub Total 286 - - - - 7,213,493

LARP 1

Apple 1 50 333.7 6 100,110 100,110

Apricot 3 80 374.75 6 179,880 539,640

Plum(shlor) 1 25 250 5 31,250 31,250

Quince 1 25 824.1 6 123,615 123,615

Mulberry 2 90 400 4 144,000 288,000

Walnut 1 30 1118 6 201,219 201,219

Sub Total 9 - - - - 1,283,834

Grand Total 295 - - - - 8,497,327

3.5.3 Wood Trees

36. The compensation for wood trees is different for seedlings, medium growth and fully grown trees:

(i) Saplings: compensation at replacement cost of productive inputs. Seedlings are defined as trees with a diameter up to 12 cm.

(ii) Medium and fully-grown trees: compensation at replacement cost of wood value of the tree to be calculated based on the volume of the wood. Medium growth trees are defined as trees with a 12-36 cm diameter and fully grown trees as those with a diameter greater than 36cm.

37. Wood trees compensation amounts to 96,180 AMD for seedlings, 51,450 AMD for medium growth trees, as well as 253,890 AMD for fully grown trees with an overall total compensation of 401,520 AMD, as indicated in the following table.

Table 3-12 Compensation for Fruit Bearing Trees

Type

Seedling (up to 12 cm diameter) Medium growth (13-22cm) Full growth (22cm+) Total

No Unit cost Diameter Subtotal

No Unit cost Diameter Subtotal

No Unit cost Diameter Subtotal

No AMD AMD sm AMD AMD sm AMD AMD sm AMD

Ash tree 6 630 7 3,780 7 7,350 14 51,450 - - - - 13 55,230

Poplar 40 2310 1 92,400 - - - - 3 84,630 50 253,890 43 346,290

Total 46 - - 96,180 7 - - 51,450 3 - - 253,890 56 401,520

3.6 Relocation Allowances

38. The relocation allowances were calculated taking into account the costs that will be incurred for the transportation of movable assets. Transportation costs were determined according to the average cost for such services offered by several freight shipping organizations accepted in the market. It was calculated in such a manner that the AP can move his/her property within a 20 km. radius. The allowance is calculated for all APs that need to relocate their assets. In total 426,750AMD will be paid for the relocation of the assets of AHs.

Table 3-13 Transportation cost for movable structures

LARP 3

Type of allowance Trips required Unit rate Total

AMD AMD

Shop 1 90,000 90,000

Unfinished greenhouse 1 90,000 90,000

Transportation costs, big gabarites 7 35,250 246,750

Total 2 - 426,750

3.7 Budget (Cost) Summary

39. The total implementation cost of unanticipated impacts amounts to 23,743,779.19AMD which is equivalent to USD 50,198.26 as shown in the following table.

40. Table below presents the budget summary per source of financing.

Table 3-14 Summary Budget

Item Source of Finance

Total/AMD

I. Compensation Budget, Including Allowances

Compensation for private land (Including 15% surcharge) YM 10,521,396.00

Rehabilitation allowance for illegal land usage YM 1,806,092.19

Compensation for Non-residential Buildings ADB Loan 430,830.00

Compensation for Fences ADB Loan 214,971.00

Compensation for Improvements ADB Loan 782,650.00

Compensation for Crops ADB Loan 360,000.00

Compensation for Seedlings ADB Loan 18,000.00

Compensation for Not-yet productive trees ADB Loan 284,243.00

Compensation for fruit bearing trees ADB Loan 8,497,327.00

Compensation for wood trees ADB Loan 401,520.00

Transportation costs ADB Loan 246,750.00

Movable structures transportation costs ADB Loan 180,000.00

Total LAR budget (AMD) 23,743,779.19

Total LAR budget (USD) 50,198.26

473 AMD, Exchange rate on May 22 2015, Central Bank of the Republic of Armenia

4 CONSULTATION AND INFORMATION DISCLOSURE

4.1 Meeting with APs

41. PIU conducted working discussion with 5 APs on 12th and 15

th of June 2015. The aim of the

meetings was to inform affected persons about unforeseen impacts which are the result of

the design changes. During the working discussions, the resettlement and social specialists of the Implementation team, presented to affected persons property description protocols, valuation reports and explained APs’ entitlements for compensation. The meeting was attended by the representatives of DESC and IMA.

4.2 Signing of Protocol, Agreements and Contract

42. The Description Protocols and compensation Agreements are signed with 5 APs, illegal land users, between 17-23 June, 2015. One Description protocol and Contract will be signed with the owner in the coming days.