Resettlement Framework Document Stage: Draft Project Number: March 2011

UZB: Khauzak-Shady and Kandym Gas Field Development

Prepared by

LUKOIL Uzbekistan Operating Company Ltd.

This resettlement framework 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 of this website.

Resettlement Planning Document

ABBREVIATIONS

ADB Asian Development Bank

CAP corrective action plan

CSR corporate social responsibility

DMS detailed measurement survey

DP displaced person

EMA External Monitoring Agency

GRC Grievance Redress Committee

MIGA Multilateral Investment Guarantee Agency

NGO Non-government organization

RCS replacement cost survey

RF resettlement framework

RP resettlement plan

ROW Right-of-Way

SES socio-economic survey

SPS Safeguard Policy Statement

SR Safeguards Requirement

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GLOSSARY

Assets Physical property and/or rights that have monetary, cultural, or religious value to a person or household or a community. Assets can comprise personal property or common property.

Compensation Payment in money or in kind to the owner of a property expropriated or acquired.

Community engagement is an on-going process involving disclosure of information, consultation with affected communities, and the establishment of a grievance mechanism.

Compensation framework 1) identifies all affected people; 2) provides an inventory of affected assets; 3) describes the methods applied for valuing land and other affected assets at full replacement costs; 4) indicates the rates of compensation to be paid; 5) outlines a schedule of land take and compensation payments; and 6) describes the process whereby affected people can appeal property valuations they deem to be inadequate.

Cut-off date Date of completion of the census of displaced people. Any person who purchases or occupies land in the demarcated Contract Area after this date is not eligible for cash compensation or resettlement assistance or both. Similarly, fixed assets (such as built structures, crops, fruit trees, and woodlots) established after the date of completion of the assets inventory, or alternative mutually agreed date, will not be compensated.

Displaced persons In the context of involuntary resettlement, displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Displaced persons in a Contract Area could be of three types: (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and (iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land. The involuntary resettlement requirements apply to all three types of displaced persons.

Economic displacement refers to loss of land, assets, access to assets, income sources, or means of livelihoods as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Ethnic Minority/Indigenous people are those with a social or cultural identity distinct from the dominant or the mainstream society, which makes them vulnerable to being disadvantaged in the process of development.

Hokim Head of Local Government (Governor)

Hokimiyat Office and administration of Hokim of district or province

Mahalla Local self-management committee, a traditional cultural form of local government usually comprised of a committee of elders.

Income restoration Re-establishing productive livelihood of displaced person to enable income generation equal or better than that generated by the displaced person before the resettlement.

Involuntary resettlement refers to physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. Resettlement is considered involuntary when affected communities or individuals do not have the right to refuse land acquisition that results in physical or economic displacement.

Meaningful Consultation. A process that (i) begins early in the preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

People without legal rights (i.e. non-titled) include those who have no recognizable rights or claims to the land that they are occupying and/or using. Restoration measures must be determined in consultation with affected communities, including those people who might not be formally recognized in national legislation.

Physical displacement refers to relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Relocation assistance refers to support provided to people who are physically displaced by the project. Assistance may include transportation, food shelter, and social services that are provided to affected people during their relocation. Assistance may also include cash allowances that compensate affected people for the inconvenience associated with resettlement and defray the expenses of a transition to a new locale, such as moving expenses and lost work days.

Replacement Cost The calculation of full replacement cost will be based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments, if any. Qualified and experienced experts will undertake the valuation of acquired assets. In applying this method of valuation, depreciation of structures and assets should not be taken into account.

Resettlement information Information provided in simple formats and appropriate language to

displaced people regarding the project and its resettlement policies. Such information includes land acquisition procedures (measurement of losses, detailed asset valuations); compensation (replacement value, schedule of

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payments, application towards replacement housing, land, production improvements); and relocation/resettlement assistance (houses and infrastructure, income generation programs, allowances); consultation and participation arrangements; and grievance procedures.

Stakeholders Persons or groups who are directly or indirectly affected by a project, and those

who have interests in the project and/or the ability to influence its outcome, either positively or negatively. Stakeholders may include project-affected people or their representatives, national or local government authorities, politicians, religious leaders, civil society organizations, the academic community, or businesses.

Vulnerable Groups those families whose income falls below the poverty line, widows/widowers, physically and mentally handicapped, single female households (with dependents), elderly persons, among others to be identified during the socio-economic survey.

TABLE OF CONTENTS

A. INTRODUCTION 1

B. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS 2

1. Legal Framework on Land Acquisition and Resettlement in Uzbekistan 2

2. Policies International Financial Institutions on Involuntary Resettlement 5

3. Gaps and Consistencies between Uzbekistan Laws and ADB’s Safeguards Requirements on Involuntary Resettlement 8

4. LUOC’s Involuntary Resettlement Policy 9

5. Screening for Involuntary Resettlement Impacts 10

6. Identification of Eligible Displaced Persons 11

7. Project Entitlements 11

C. SOCIOECONOMIC INFORMATION 13

D. CONSULTATION, PARTICIPATION AND DISCLOSURE 14

E. COMPENSATION, INCOME RESTORATION AND RELOCATION 15

F. GRIEVANCE REDRESS MECHANISMS 15

G. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION 16

H. MONITORING AND EVALUATION 18

I. RESETTLEMENT BUDGET 19

ATTACHMENTS

Attachment 1 - Involuntary Resettlement Screening Checklist Attachment 2 - Outline of a Resettlement Plan

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RESETTLEMENT FRAMEWORK A. INTRODUCTION

1. Lukoil Uzbekistan Operating Company (LUOC, the Company) is seeking financial assistance for the development of the Kandym gas fields (the Project). The Kandym Gaz Processing Plant will start production in 2017 and will reach its peak production of 8 billion cubic meters (bcm) per year of natural gas in 2019 and will continue production at the peak level till 2029. It is part of a development program governed by production sharing agreements (PSA) signed by the Government of Uzbekistan and a consortium of investors including the LUKOIL. The gas fields are located in the Karakul district of Bukhara province of the Republic of Uzbekistan. The border with Turkmenistan is to the south and south-west of the Contract Area (Fig. 1). 2. LUOC plans to drill 126 production wells and develop gathering stations, field pipeline transfers, gas processing plant, gas main pipelines and other infrastructure facilities such as power substations, transmission lines, access roads and railway for logistics and supply. The gas facilities will be located in several sites within the Kandym gas fields comprised of 114,000 hectares of land. The land plots comprising the Kandym gas fields are classified as agricultural lands (pasture). Prior to the Project, these lands were being leased to 6 farms (Alat corporate farm, Uzbekistan corporate farm, Rinat Sherov private leasehold farm, Abid A’zam private leasehold farm, Alat forestry farm, and Karakul forestry farm). However, due to the specific soil and climate, these lands have not been cultivated nor used for pasture by these cooperative/farm enterprises. 3. The land plots required for the first 42 production wells, temporary workers camp, power substations among other support facilities have been withdrawn from two corporate farms and compensation has been paid to prior LUOC taking possession of the land. A Social Safeguards Compliance Audit has been prepared as a separate report. 4. The Project will also require the construction of a new 48km railway spur from Bokhara region to the Kandym field and possibly ancillary support facilities (Project Railway). Laying of gas pipelines, construction of access roads and establishment of transmission line (T/L) towers will also require right of way and entail temporary disturbance of land. Development of the following satellite fields, namely, Akkum and Parsankul Fields, Zapandy Field, West Khoji and Khoji Fields and Kuvachi – Alat Fields will also require land. Presently, the detailed design and final alignment of the Project Railway, the gas pipelines, field access roads, transmission line alignment has not been prepared. Land acquisition for these facilities is expected to commence in 2013. With respect to the development of the satellite fields gas fields within the KGF, plans have not been finalized and will not likely happen until after 2024. 5. Without the detailed design and final alignment of these facilities, LUOC cannot confirm whether certain project facilities, e.g. the Project Railway, access road, T/L alignment will affect assets and livelihoods of people living in the nearby kishlaks e.g. Jigachi, Mirzakala, Kuwacha, Chandyr, Vahim, Ketmandugi, Arabkhona, Carakhodja and Asiya. While these areas are sparsely populated and the landscape en route to the Project site is vast and mostly uninhabited arid desert land, there are cultivated lands located close to these settlements. Because of this, there is potential for the Project to cause limited involuntary resettlement impacts, therefore, categorized as B with respect to ADB’s SPS. LUOC will ensure that the final location and alignment of project facilities will avoid any physical displacement from housing or affect any

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buildings or structures. In the event that there are unavoidable permanent or temporary involuntary resettlement impacts caused by the construction of the project facilities, LUOC prepared this resettlement framework in accordance with the requirements of ADB's Safeguards Policy Statement – Safeguards Requirements on Involuntary Resettlement.

6. The Resettlement Framework (RF) presents the general guidelines and procedures in preparing the resettlement plan in case detailed engineering design of the Project railway, transmission line, gas pipelines, field access roads and development of other gas fields in the Contract Area entail any physical or economic displacement. It aims to: (i) avoid or minimize involuntary resettlement impacts; and (ii) if unavoidable, to compensate and assist affected families to restore or improve their existing social conditions. B. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS

7. LUOC’s resettlement framework is built upon the laws and regulations of the Government of Uzbekistan and the ADB’s Safeguards Policy Statement – Safeguards Requirements (SR) 2 on Involuntary Resettlement (2009). If there are any gaps between the ADB’s SPS SR2 requirements and the Government’s policy, LUOC will adopt principles to ensure that ADB's requirements will be met.

1. LEGAL FRAMEWORK ON LAND ACQUISITION AND RESETTLEMENT IN UZBEKISTAN

8. There are no laws or legislation in Uzbekistan that specifically address matters related to involuntary resettlement (IR). Rather land acquisition is governed by the following laws and resolutions:

(i) The Land Code; approved by the Law of the Republic of Uzbekistan from 30.04.1998, taking the changes of 2003-2004 into account;

(ii) The Civil Code of Republic of Uzbekistan from 1996, taking the changes of 2004-2008 into account;

(iii) Law of the Republic of Uzbekistan on “State Cadastre” N171-II from 15.12.2000

(iv) Law of the Republic of Uzbekistan on “State land cadastre” N666-I from 28.08.1998г taking the changes of 2002-2004 into account

(v) Cabinet of Ministers Resolution on “Approval of Regulation on the order of legalization of seizure and allocation of land plots for non-agricultural needs in the Republic of Uzbekistan” No. 248, 27 May 1992

(vi) Cabinet of Ministers Resolution on “Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan” №246 from 25.05.1992;

(vii) Cabinet of Minister Resolution on “Order of realization into private property of objects of trade and public services together with land plots, where they are located, and land plots into life inheritance tenure” №126 from 11.04.1995, taking the changes of CoM Resolution № 202 from 30.04.1999 into account;

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(viii) Resolution of Cabinet of Ministers “On approval of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management” № 223 from 16.06.1995;

(ix) Resolution of Cabinet of Ministers “On approval of the regulation on the order of identification of the sizes of agricultural production losses compensation, relating to land acquisition, for needs not connected with farming or forestry management” № 282 from 15.06.1992;

9. Collectively, these regulations provide a sound basis for acquiring land for public purposes and for compensating land users according to the registered use of the land (i.e. for cultivation, business, residence etc). A brief account of legislation pertaining to compensation and the provision of land is given below.

a. Land Code of Republic of Uzbekistan (2003)

(i) According to Article 16 of the Land Code of the Republic of Uzbekistan, land is a state property, and considered to be national wealth and protected by the state.

(ii) Article 17 provides rights of legal entities and individuals for land plots on the basis of constant possession, constant and temporary use, lease and property.

(iii) Article 23 regulates the assignment of the land plots. Assignment (realization) of land plots is only made after the specific issuance of a legislative order by the Cabinet of Ministers, provincial, Tashkent, districts and cities hokimiats (local governing authority) via a recognized legislative order.

10. Lands which are not suitable for agricultural purposes or are of low-quality are assigned for construction of industrial enterprises, housing projects, railway, automobile, water and air transport, electric transmission lines, communications and pipelines and for other nonagricultural purposes.

11. It is forbidden to take possession of or use the given (realized) land plots before the appropriate the land surveying authority has defined the plot borders and issued documents identifying rights for this plot.

(iv) Article 35 establishes that the right of entities and individuals for land plots is subject to state registration by local authority and that the appropriate documentation must to be completed within 10 days of the appropriate documents being submitted.

(v) Article 37 defines conditions for reclaiming/acquiring land for public needs. Such land acquisition should be carried out with the agreement of landowners or with the concurrence of land user and lease holder after consultation with the district or province hokim or Cabinet of Ministers. In case of disagreement with landowner, landuser and leaseholder, the decision can be appealed in court.

(vi) Article 41 ensures the rights for land plots and establishes, that removed rights of land owners, landusers, leaseholders agricultural and forest enterprises, agricultural scientific - research institutions, experimental and training farms and owners of land plots are subject to reinstating in legislative order. Losses caused by the infringement of rights of landowners, landusers, leaseholders and owners of plots (including lost profits) are subject to full compensation. Compensation for land acquisition for state and public needs is regulated by Article 85.

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(vii) Article 80 defines environmental requirements regarding location, design, construction and operation of objects, buildings and constructions with reference to environmental protection legislation. Where new construction or rehabilitation and/or the introduction of new of new technologies have a negative impact to the condition of land, land protection activities shall be provided and carried out (as defined by reputable environmental experts). The construction/rehabilitation of buildings or the introduction of new technologies without appropriate environmental safeguards is forbidden.

(viii) Article 86 defines procedures of compensation to landowners, landusers, leaseholders and owners of plots. Landowners, landusers, leaseholders and owners of plots will be compensated in full (including lost profits) in the following cases:

- Acquisition, reclamation or temporary occupation of lands;

- Limitation of land use rights in connection with assignment of conservation, sanitary and protection zones around state reservations, wildlife preserves, national recreation areas, natural monuments, cultural-historical monuments, water reservoirs, water supply sources, resorts, along rivers, canals, water escapes, roads, transmission lines, communication and electrical lines;

- Deterioration of lands caused by construction and operation of reservoirs, canals, ponds and other objects; the remittance of harmful or noxious substances by legal entities or individuals which cause crop damage and/or decreases in crop yields.

- Compensation allocated under such circumstances will be paid by the offending enterprises, organizations and agencies, to the owners/users who use the affected plots.

(ix) Article 91 provides for the requisition of illegally occupied lands. State acquisition of such lands will be done without compensation and the cost of returning the land to its original condition will be borne by the occupier. Such reclamation will be conducted after agreement between the occupiers and the local authority or under a court order.

b. Civil Code (1996/1997)

12. Section II states the right of ownership is the right of a person to possess, to use and to dispose of the property belonging to him at his discretion and in his interest, and also demand elimination of any violations of his right of ownership from whom the come. 13. Article 167 states that private and public forms of ownership are recognized in the Republic of Uzbekistan. 14. Article 170 specifies that right of ownership and other things in right in land and other natural resources shall be regulated by the present Code and other laws. 15. Article 187 states that a person who is not the owner of property but who has in good faith, openly, and uninterruptedly possessed as his own immovable property for fifteen years shall acquire ownership of this property.

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16. Article 199 states that the alienation of property from an owner shall only be allowed by the procedure provided by legislative acts. If property is possessed by a person who is prohibited from owning this property under law, the right of ownership for this property shall be terminated by the procedure of a court with compensation. 17. Article 206 states that termination of the right of ownership in connection with a decision of state body to acquire land and chattels shall only be conducted with due accord to the appropriate legislative acts and the owner shall be provided with property of equal value or be given full compensation for lost assets. In case of disagreement with a decision entailing termination of the right of ownership, acquisition shall not be made before a court decision on the dispute. 18. Article 212 pertains to illegal construction on land not allocated for this purpose and/or without the necessary permits. Anyone erecting structures under such circumstances does not have the right of ownership or the right to dispose of the building. 19. An unauthorized building must be demolished at the constructor’s expense following a legal petition by a person whose rights have been violated. The right of ownership to an unauthorized building on land not belonging to the constructor may be recognized by a court on the condition that the given parcel shall be granted to this person under established procedures for both the land and the construction. The right of ownership to an unauthorized building will not be recognized if the granting of such rights violates the rights and interests of other persons or creates a threat to the life and health of citizens.

2. POLICIES OF INTERNATIONAL FINANCIAL INSTITUTIONS

20. LUOC is seeking financial assistance from international financial institutions such as the Asian Development Bank and the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA). LUOC will comply with ADB Safeguards Policy Statement (SPS) Safeguards Requirements 2 and MIGA’s Performance Standards 5 on land acquisition and involuntary resettlement. a. ADB 2009 SPS – Safeguards Requirement 2 on Involuntary Resettlement

21. ADB's SPS - Safeguards Requirements 2 on Involuntary Resettlement aims to (i) avoid involuntary resettlement wherever possible; (ii) minimize involuntary resettlement by exploring project and design alternatives; (iii) enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and (iv) improve the standards of living of the displaced poor and other vulnerable groups. The involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. Key principles of the policy are as follows:

(i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

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(ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs.

(iii) Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations.

(iv) Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns.

(v) Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

(vi) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

(vii) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required.

(viii) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

(ix) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

(x) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets.

(xi) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

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(xii) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders.

(xiii) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

(xiv) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

(xv) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

b. MIGA’s Performance Standard 5 on Land Acquisition and Involuntary Resettlement

22. MIGA’s defines involuntary resettlement as both physical displacement (relocation or loss of shelter) and economic displacement (loss of assets or access to assets that leads to loss of income sources or means of livelihood) as a result of project-related land acquisition. Resettlement is considered involuntary when affected individuals or communities do not have the right to refuse land acquisition those results in displacement. This occurs in cases of: (i) lawful expropriation or restrictions on land use based on eminent domain; and ii) negotiated settlements in which the buyer can resort to expropriation or impose legal restrictions on land use if negotiations with the seller fail.

23. Project related resettlement and compensation will cover physical or economic displacement resulting from the following types of land transactions: Type I: Land rights for a private sector project acquired through expropriation or other compulsory procedures; Type II: Land rights for a private sector project acquired through negotiated settlements with property owners or those with legal rights to land, including customary or traditional rights recognized or recognizable under the laws of the country, if expropriation or other compulsory process would have resulted upon the failure of negotiation. 24. With respect to policy principles and objectives, compensation and entitlements, the need for meaningful consultation and community engagement, ADB and MIGA’s policy requirements covering involuntary resettlement aspects of projects are compatible on all substantive issues.

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3. COMPARISON OF UZBEK LAND ACQUISITION AND RESETTLEMENT RELATED LAWS/REGULATIONS AND ADB’S SPS SR 2 ON INVOLUNTARY RESETTLEMENT

25. When finalizing the alignment of the Project Railway and other project facilities for which detailed design has not been prepared and preparing the resettlement plan, if required, consideration will be given to national legal requirements and that of ADB. Noted gaps and consistencies are presented in Table 1.

Table 1. Comparison of Related Uzbek Laws/Regulations and ADB’s SPS SR on Involuntary Resettlement

Uzbekistan Laws and Regulations ADB SPS SR2 on Involuntary Resettlement

Land Code (LC) of Republic of Uzbekistan stipulates and land is the property of state. People apply for registration for particular of use land and are granted for specific possession against fixed rate of taxes along with provision of all documents related to land details, quality, area, which give evidence for occupancy right in the court of law.

Provides for direct negotiated settlements with land owners, whereas, the Land Code states that all land is the property of the state. Land withdrawal from leaseholders and land allocation are all done through the provincial and district governments. Lack of title should not be a bar to compensation and/or rehabilitation.

Article 86 defines procedures of compensation to landowners, land users, leaseholders and owners of plots. Landowners, land users, leaseholders and owners of plots will be compensated in full including lost profits

Persons with formal legal rights to the affected land or those who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws will be provided adequate and appropriate replacement land and structures or cash compensation at full replacement cost for lost land and structures, adequate compensation for partially damaged structures, and relocation assistance, if applicable.

Civil Code Article 187 states that a person who is not the owner of property but who has in good faith, openly, and uninterruptedly possessed as his own immovable property for fifteen years shall acquire ownership of this property

Displaced persons in a Contract Area could be of three types: (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and (iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land. The involuntary resettlement requirements apply to all three types of displaced persons. The borrower/client will provide adequate and appropriate replacement land and structures or cash compensation at full replacement cost for lost land and structures, adequate compensation for partially damaged structures, and relocation assistance, if applicable, to those persons described in para. 7(i) and 7(ii) prior to their relocation.

Civil Code Article 206 states that termination of the right of ownership in connection with a decision of state body to acquire land and chattels shall only

Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods

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Uzbekistan Laws and Regulations ADB SPS SR2 on Involuntary Resettlement be conducted with due accord to the appropriate legislative acts and the owner shall be provided with property of equal value or be given full compensation for lost assets. In case of disagreement with a decision entailing termination of the right of ownership, acquisition shall not be made before a court decision on the dispute.

are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns.

Land Code Article 91 provides for the requisition of illegally occupied lands. State acquisition of such lands will be done without compensation and the cost of returning the land to its original condition will be borne by the occupier. Such reclamation will be conducted after agreement between the occupiers and the local authority or under a court order.

Displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non land assets.

Civil Code Article 212 pertains to illegal construction on land not allocated for this purpose and/or without the necessary permits. Anyone erecting structures under such circumstances does not have the right of ownership or the right to dispose of the building

Displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non land assets.

Under Land Code of Uzbekistan Republic all land, houses, buildings, shops have to be registered at the respective province / district level. Unlicensed occupation of land and unlicensed structures are illegal and their expropriation is not compensated

All houses/buildings are compensated for damage or demolition caused by a project irrespective of the status of formal title.

No compensation for crop loss/loss of trees/forest farming on illegally occupied land parcels.

Crop losses compensation provided to landowners and sharecroppers/lease tenants whether registered or not

No provision for compensation of income/ livelihood loss or expenses incurred during relocation under State Land Code

Requires compensation for income/livelihood losses and for expenses incurred by the DPs during the relocation process.

4. LUOC’S INVOLUNTARY RESETTLEMENT POLICY

26. Based on the preceding comparisons and noting their gaps and consistencies, LUOC has adopted the following involuntary resettlement policy principles:

The Project facilities shall be planned and designed in a manner so as to avoid or at least minimize physical and economic displacement and adverse impacts on displaced persons (DPs);

Loss of structures, other assets and incomes will be avoided or minimized by exploring all viable options;

DPs are entitled to compensation for all affected assets, incomes and business assets at replacement cost prior to dispossession of or displacement from land or other assets;

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DPs will be provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, incomes and productive capacity as part of LUOC's corporate social responsibility (CSR) program;

DPs with formal legal rights to the affected land or DPs who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under Uzbek laws will be provided adequate and appropriate replacement land and structures or cash compensation at full replacement cost for lost land and structures, adequate compensation for partially damaged structures, and relocation assistance, if applicable.

DPs without formal or legal titles to land will be entitlement to compensation for improvements on land such as structures, standing crops and trees.

DPs will be systematically informed and consulted about project and its impacts on them, the entitlements and options available to them and the proposed mitigating measures

An implementation schedule and budget for resettlement planning (including socio-economic survey/census) and implementation will be incorporated into the overall Project budget.

Special measures will be incorporated in the RP to protect the socially and economically vulnerable groups like the poorest affected people, and households headed by women, the elderly and disabled. Special assistance will focus on the livelihood opportunities and employment for female heads of households. Skills enhancement for permanent employment is the preferred intervention for women. Assistance to these vulnerable groups will aim to improve their livelihoods rather than merely re-establishing their levels of poverty or marginalization, and will be carried out with respect for their cultural values and specific needs.

Effective mechanism for hearing and resolving grievances and complaints during implementation of RP will be established with representation from affected people.

Ensure that qualified and experienced social development staff or consultant will be employed to effectively implement this framework and any future RP.

In the unlikely event that there is physical displacement and relocation, the host community that shall accommodate DPs in their locality will be involved in resettlement planning and decision making. DPs will be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted.

Adequate budgetary support will be fully committed and made available to cover the costs of compensation, resettlement and rehabilitation within the agreed implementation period.

Appropriate reporting (including auditing and redress functions), monitoring and evaluation mechanisms, will be identified and set in place as part of Project management.

5. SCREENING FOR INVOLUNTARY RESETTLEMENT IMPACTS

27. As part of the due diligence process during detailed engineering design , LUOC will carry out a screening process to determine whether the Project Railway, gas pipelines, transmission

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lines, access roads and other project facilities (for which the final location or alignment has not been decided yet) will involve involuntary resettlement impacts. A sample screening checklist is attached (Attachment 1). The results of the screening process will be included in the semi-annual monitoring reports to ADB.

28. If after exploring all design options, LUOC deems that the final alignment or locations of these project facilities are expected to entail any involuntary resettlement impacts, a resettlement plan will be prepared following the outline in Attachment 2.

6. IDENTIFICATION OF ELIGIBLE DISPLACED PERSONS

29. Each draft RP will be prepared based on a census of displaced persons and 100% inventory of affected assets. All DPs are entitled to compensation and rehabilitation. However, eligibility to compensation and other assistance will be limited by a cut-off date to be set for each subproject on the day corresponding to the beginning of its impacts assessment. In this project, the cut-off date will be the starting date of the census of DPs and the detailed measurement survey (DMS) of DPs' land and/or non-land assets. The cut-off date defines "eligibility" and "affected person". DPs settling at the project site after the cut-off date will not be eligible for compensation and other assistance.

7. PROJECT ENTITLEMENTS

30. Resettlement impacts will be avoided as much as possible. The entitlement matrix below is a sample and is based on existing practices for projects financed by ADB in the Uzbekistan. It should be noted that actual impacts and corresponding entitlements can only be determined following the identification of rehabilitation works involving involuntary resettlement and in consultation with DPs and concerned groups. The entitlements below will be revised, as necessary, and will be presented in detail in the RP to ensure that losses are restored, if not improved. Any changes in the entitlements will be reflected in the RP for ADB review and approval.

Table 2: Entitlement Matrix1

Type of Loss Specification Affected People Compensation Entitlements Farmer/Titleholder

Land for land compensation with plots of equal value/productivity, comparable location and services (or compensation to provide such services) to plots lost; or cash compensation at full replacement cost with, registration and transfer charges if any to be borne by the project. Unaffected portions of a plot will also be compensated if they become unviable after impact occurs.

Leaseholder (registered or not)

Transfer of lease to other plots of equal value/productivity of plots lost, or Cash equivalent to the net income from the land calculated on the basis of the market value of annual production of affected land for the remaining lease years (up to maximum 10 years).

Sharecroppers (registered or not)

Cash compensation equal to market value of the lost harvest share once (temporary impact) or twice (permanent impact)

Agricultural workers losing their contract

Cash indemnity corresponding to their salary in cash and in kind for the remaining part of the agricultural year/or contractual period.

All land losses independent of impact severity

Non-titled cultivators

Rehabilitation allowance equal to 1 year's net income from the affected land (in addition to lost crop compensation) for land use loss.

Permanent loss of Arable Land

Additional Farmer/Titleholder Severe impact allowance equal to the net income from annual

1 The sample entitlement matrix will be revised during actual resettlement planning to reflect local conditions, actual impacts and

categories of affected persons. All compensation rates will be established and negotiated during the preparation of the RP.

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Type of Loss Specification Affected People Compensation Entitlements Leaseholder

crop production (inclusive of winter and summer crop in addition to standing crop compensation) and the waiving of taxes and fees

provisions for severe impacts (> 10% of land loss)

Sharecroppers (registered or not

Severe impact allowance equal to the net income from their annual share of harvest lost (additional to standard crop compensation)

Temporary Land Acquisition

All APs (including those, who has right of use)

Affected land/communal infrastructure will be restored or reconstructed to pre-project conditions. Rent shall be agreed between landowner and contractor equal to the revenue lost at market value (e.g. compensation for harvests lost at average yield/hectare). Payment of such compensation to be assured by the Project.

Titleholder Land for land compensation through provision of a plot comparable in value/location to the plot lost; OR Cash compensation for affected land at full replacement cost. Registration and transfer costs, if any, to be borne by the project. Auction costs paid by project if the land plot is obtained at auction Unaffected portions of a plot will also be compensated if they become unviable after impact occurs

Residential/ Commercial Land

Non-titled land owners

Provision of a new plot or a plot to lease

Owners (with/without house or building registration)

Cash compensation at replacement rate for affected structure/fixed assets and labor, and free of salvageable materials, depreciation and transaction costs. Salvageable material will be allowed to be taken away. For partial impacts, cash compensation at replacement rates to restore remaining structure. Cost of lost/ rehabilitation of water and electricity connections will be included in the compensation. Unaffected portions of the structure will also be compensated if they become unviable after impact occurs

Housing and structures

Full/partial loss of structures

Tenant/ Leaseholder)

Compensation of income lost as a result of the loss of the tenancy of houses, buildings and structures plus new lease or cash compensation for the remaining period of the lease.

Standing Crops

Crops affected

All APs (including non-titled land owners

Cash compensation equivalent to the gross income from the crop calculated at the market value of the total annual produce from affected land. To be paid both to landowners and tenants based on their specific sharecropping agreements.

Trees Trees affected All APs (including non-titled land owners)

Cash compensation shall reflect income replacement. Fruit trees will be valued at market value multiplied on the number of years until the end of fruiting period; or in case of granting the land plot ,the compensation of full cost of seedling, cost of preparation of a garden and lost profit at annual income multiplied the number of years till the trees gain fruiting period will be paid.

Livelihood Vulnerable AP: AP below poverty line

Additional allowance equal to 3 months at $35 per family member per month. 2 Priority for employment in project-related jobs, training opportunities, self-employment and wage employment assistance

All APs affected by relocation

Provision of cash compensation to cover transport expenses to the new locations.

Relocation Transport Cost /transitional livelihood costs

House owners and tenants

Livelihood expenses for up to three months when the impacts are severe on the basis of documents, confirming the income of household members, but no less than 1 minimum salary per member

Community assets

Loss/damage to public infrastructure/ utilities Loss/damage to grazing land

Rehabilitation/replacement of affected structures/utilities (i.e. mosques, footbridges, roads, schools, health centres, etc.) to pre- Project level Rehabilitation/ replacement to the new grazing areas

2 This is the equivalent of the minimum threshold level below which people qualify for mahalla economic assistance.

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C. SOCIOECONOMIC INFORMATION

31. If resettlement impacts are unavoidable and preparation of a resettlement plan (RP) is therefore required, an RP will be prepared based on detailed engineering design following these procedures:

i. Undertake a census of all DPs.

ii. Undertake detailed measurement survey (DMS) of all losses of all DPs. At the same time, inform potential DPs, without discrimination, of the project, its likely impacts, and principles and entitlements as per this RF.

iii. Undertake a socioeconomic survey of the affected households whose land and/or structures are severely affected. If the impacts on all affected households are all marginal, at least 10% of the total affected households will be surveyed.

iv. Determine replacement cost of affected assets. With respect to agricultural land, replacement cost means the market value of land of equal productive use or potential located in the vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the affected land, and transaction costs such as registration and transfer taxes. With respect to housing and other structures, it is the cost of purchasing or building a new structure, with an area and quality similar to or better than those of the affected structure, or of repairing a partially affected structure, including labor and contractors’ fees and transaction costs such as registration and transfer taxes.

v. Provide project and resettlement information to all persons affected in a form and language that are understandable to them, and closely consult them on compensation and resettlement options, including relocation sites and economic rehabilitation.

vi. Prepare the draft RP with time-bound implementation schedule, procedures for grievance mechanism and monitoring evaluation, and a budget.

vii. Disclose the draft and final RP in accordance with ADB's policy on public communications3 to the affected communities and on ADB's website.

Table 3: Surveys for RP Preparation

Census and Detailed Measurement Survey (DMS)

The census and detailed measurement survey (DMS) of lost assets will collect data on the affected assets from 100% of DPs following detailed engineering design. The data collected during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation. For each AP, the scope of the data will include: Total and affected areas of land, by type of land assets; Total and affected areas of structures, by type of structures (main or secondary); Legal status of affected land and structure assets, and duration of tenure and

ownership; Quantity and types of affected crops and trees; Quantity of other losses, e.g. , business or other income, jobs or other productive

assets; estimated daily net income from informal shops; Quantity/area of affected common property, community or public assets, by type; Impact assessment will disaggregate the DPs by gender and will indicate the

number of affected women-headed households and their pre-Program socioeconomic status. The RP will present summary data on households, by

3 ADB, 2005, Public Communications Policy, Manila.

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ethnicity, gender of head of household, household size, primary and secondary source of household income, viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, or poor;

Identify whether affected land or source of income is primary source of income; and Knowledge of the project and preferences for compensation and, as required,

relocation site and rehabilitation measures. Socioeconomic Survey

The socioeconomic survey (SES) will collect information from 10% of DPs whose land/income generating assets and/or structures will be affected, disaggregated by gender and ethnicity. The purpose of the socioeconomic survey is to provide baseline data on households to assess resettlement impacts, and to be sure proposed entitlements are appropriate, and to be used for resettlement monitoring. The scope of data to be collected includes; A. Household head,: name, sex, age, livelihood or occupation, income, education and

ethnicity; B. Household members: number, livelihood or occupation, school or age children and

school attendance and literacy, disaggregated by gender; C. Living conditions: access to water, sanitation and energy for cooking and lighting;

ownership of durable goods; and D. Access to basic services and facilities.

D. CONSULTATION, PARTICIPATION AND DISCLOSURE

32. LUOC Government Relations and Public Relations Department will adopt a mechanism to ensure meaningful consultation with DPs and the informed participation of DPs in preparing, implementing and monitoring RPs. Each RP will be prepared and implemented in close coordination with the hokimiyats and mahallas and will involve focus group discussions and meetings, particularly with the affected people. The consultative process will also include representatives civil society organization such as NGOs and members of local people’s organizations (e.g. women's groups or youth groups, etc). Women will be encouraged to actively participate in all land acquisition-related consultations and negotiations about compensation for loss of productive assets. Every consultation meeting will be recorded through minutes of consultation, and these will be available to affected persons for reference at the LUOC local office in the Contract Area and in the town of Bukhara. Agreements reached will be documented and payment of compensation must be completed prior to dispossession of or displacement from land or other assets.

33. Key information4 from the resettlement plan will be translated into local language (s) and made available to affected people during focus group discussions and meetings at the village/community level. Copies of the full version of draft and final RPs will be made available in English and Uzbek/Russian at the LUOC field office, at the Project site and at the relevant hokimiyat office. The final RP in English and Uzbek/Russian will be posted on ADB website in accordance with the requirements of ADB's Public Communications Policy (PCP) 2005. Resettlement monitoring reports will be disclosed to DPs in a form and language they can understand and in full on ADB’s website.

4 Key information includes project description, scope of land acquisition and resettlement impacts, eligibility and

entitlements for compensation, valuation of assets, compensation entitlements, grievance redress mechanism, timing of payment, project implementation and contact details of responsible persons at LUOC.

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E. COMPENSATION, INCOME RESTORATION AND RELOCATION

34. Asset Valuation and Compensation. Compensation for the land will be based on The Land Code of the Republic of Uzbekistan and Addendum to Resolution of the Cabinet of Ministers of the Republic of Uzbekistan № 97 of 29.05.2006. This compensation will be based on “like for like”, with land being provided to owners by the Hokimiyat. Such land will be of equal value/productivity in a comparable location and with comparable associated services/facilities, or compensation to provide such services, to plots lost; or cash compensation at full replacement cost with, registration and transfer charges if any to be borne by the project.

35. In the unlikely event that business structures are affected, compensation for loss of business/income will be calculated based on estimated loss of income after demolition of structure and the time required for rebuilding the new business in the relocation area. Compensation for the workers will be based on regular wage rate multiply with the numbers of months that the business will stop operating due to relocation and reconstruction of business in the new site.

36. Fruit trees will be valued based on age of the trees, such as seedling, not yet productive or productive. Productive trees will be valued at market price of 1 year produce multiplied by the number of years until the end of fruiting period: or in case of granting the land plot instead of alienated one, the compensation of full cost of seedling, cost of preparing a garden and lost profit at annual income multiplied the number of years till the trees come to fruiting period will paid. 37. Assets valuation and compensation disbursement will be performed through calculating values at replacement cost and compensation disbursed through the provincial/district authorities. Where women are de facto household heads, LUOC, either through the Chief Surveyor or the social specialist hired to prepare the RP will pay particular attention to ensure that women are the recipients of the compensation pertaining to their activities and to ensure they are listed as beneficiaries of compensation and rehabilitation assistance. Support and monitoring will be provided by LUOC Surveying Department to help ensure the requirements as stated in this RF are followed. 38. Income and Livelihoods Restoration. Preferences of DPs will be considered in developing income and livelihood restoration strategies. 39. Assistance to Vulnerable Groups. Compensation and other assistance to vulnerable DPs will be conceived, planned and implemented with the informed participation of affected communities. Vulnerable households will receive assistance for house relocation and reconstruction.

F. GRIEVANCE REDRESS MECHANISMS

40. In order to avoid potential delays on the commencement of construction works or operation of the Project, a grievance redress mechanism will be developed for addressing the any grievances or decisions not agreeable to DPs. DPs will be fully informed of their entitlements and the procedures for addressing complaints/ grievances during public consultation, census survey, and during the verification of measurement survey at the time of implementation.

41. The grievance redress procedure will be disseminated to the DPs in a form and language they can understand prior to RP implementation. The primary objective will always be

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to prevent grievances rather than going through a redress process. This can be obtained by ensuring full participation and consultation with DPs, nearby communities, and local governments during land acquisition and resettlement planning and implementation stages. LUOC will maintain a community complaints-management register (CCMR) at the field level to record all grievances related to social or environmental issues, including land acquisition and resettlement. This will help ensure that complaints are appropriately redressed by the Operator.

42. The LUOC grievance procedure will involve the following steps:

Under Article 18 No 1064-XII, all citizens', including DPs, appeals in writing, containing the data on its proposer, shall be reviewed within one month period from the date of receipt, except for such appeals that require more detailed analysis, and the proposer is informed about such case within ten days. With respect to grievances related to land acquisition and resettlement, grievances will be reviewed by the LUOC Surveying Department. Anonymous appeals will not be reviewed.

DPs may also approach the mahalla, relevant provincial or district government office who on their behalf will appeal to LUOC on issues relating to land acquisition and compensation.

All appeals from individuals or legal entities are to be reviewed at the Corporate Records Department and are further transferred to the LUOC CEO, who makes an order on their execution and appoints the person in charge. With respect to land acquisition and involuntary resettlement, LUOC Surveying Department will make a recommendation in consultation with the mahallas and relevant local government (e.g. Provincial Commission on Land Acquisition, Evaluation Commission established under the district khokim decision, etc) to the LUOC CEO on how to address the grievance or complaint.

Requests and grievances are handled within a month from the date of receipt by LUOC. The requests and grievances that do not require additional review and checks are addressed within the deadlines not longer than fifteen days.

When handling a request of a grievance requires checks, requesting for additional information or taking other steps, the deadlines for handling the requests or grievances may be extended, as exceptions, by the LUOC CEO but not longer than a month, the applicant who filed this request or grievance being notified.

In all cases, the latter’s response will be formally communicated to the complainant in writing.

43. APs will have the right to take the dispute to an appropriate court of law if they do not accept LUOC’s decision.

G. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION

44. The LUOC corporate office in Tashkent will have the overall coordination, planning, implementation and financing responsibilities. LUOC fully recognizes the complexity of the land acquisition and involuntary resettlement element in the Project. Therefore, experienced resettlement specialists or if necessary non-government organizations (NGOs) will be hired to assist the preparation and implementation of RPs with clearly defined tasks, including

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community-based social development programs as appropriate. LUOC will ensure that the consultant or NGO responsible for RP preparation is aware of this resettlement framework and procedures for resettlement planning so that appropriate entitlements and mitigation measures are established in the RP. 45. The LUOC Surveying Departments in Tashkent will review the overall Project design and work closely with the design engineers to screen the proposed Project Railway alignments for involuntary resettlement impacts using the checklist in Attachment 1. If land requirements for the Project Railway is expected to affect lands currently under leaseholding or is in formal or informal residential, agricultural or commercial use, LUOC Chief Surveyor will determine extent of impacts, hire a resettlement/social specialist who work closely with the relevant local government office and LUOC staff at the field level to prepare the resettlement plan. The LUOC field level staff will supervise RP preparation and implementation on a day-to-day basis and report to the LUOC Chief Surveyor at the Tashkent office on progress on resettlement planning and implementation. Income restoration activities and other commitments to local development will be implemented by the LUOC with assistance from local experts part of the Company's corporate social responsibility program. LUOC will further ensure that resettlement budgets are delivered on time for timely RP implementation. 46. LUOC will work closely with the State Committee on Land Resources, Geodesy, Cartography and State cadastre, the province (oblast) and district (rayon) executive authorities, provincial/district level land officials, local hokimyat valuation committee, farmers and dekhan (family-owned farms) associations and mahalla authorities to ensure that the legal rights and interests of land users who are subject to land acquisition and resettlement are protected. 47. In accordance with Uzbekistan legislation, provincial land acquisition and valuation committees, with representatives of the following organizations involved are responsible for resettlement activities:

(i) Provincial/district department of Goskomzemgeocadastre State Committee on Land Resources, Geodesy, Cartography and State cadastre (SCLRGCSC),

(ii) Provincial/district Hydrogeology and land reclamation expedition,

(iii) Provincial department on environment protection,

(iv) Provincial/district subdivisions of state sanitary-epidemiologic service,

(v) Provincial/district subdivisions of fire-fighting service,

(vi) Organizations (i.e. LUOC), and civil works subcontractors to whom the alienated lands are transferred for use.

48. The Provincial Commission on Land Acquisition, established under the Province Khokimiyat decision undertakes the following: (i) outlines location of constructions and structures, envisaged by the project; (ii) selects land plot for construction site, (iii) prepares and approves Act for the right to use the land plot (title) and (iv) approved the Act for the right to use the land plot, specifying areas of the acquired farm land, accepted norms and total agricultural production losses. In addition to permanent members the Commission includes affected legal entities and individuals. 49. The Evaluation Commission established under the district khokim decision estimates losses of land owners and land users in accordance to the standard procedure, as well as losses in agricultural output as a result of the farm land acquisition. The Commission prepares

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Act for the right to use the plot of land specifying the acquired farm land area, accepted norms and total value of losses and agricultural output losses. 50. The regional representatives of the SCLRGCSC is the key executive authority responsible for the following: i) identify land losses, incurred by land owners and land users as well as agricultural output losses; ii) determine the degree and area of land recultivation, including removal and temporary storage of productive soil layer; iii) determine the need for protective sanitary and water protection zones around the constructions being built and regime of their use; (iv) prepare proposals on allocation of land plots of equal value under land for land; (v) investigate alternatives to acquiring currently used land through developing unused land; (vi) approving the Implementation Act; (vii) amending government edicts on land use and land ownership as well as other cadastre documents.

51. LUOC will coordinate with the abovementioned government agencies and work closely with them to ensure that Uzbek laws and ADB requirements are complied that all activities related to land acquisition (both temporary and permanent) will be planned carefully in order to ensure that compensation and resettlement assistance are paid prior to displacement and commencement civil works. H. MONITORING AND EVALUATION

52. ADB's Safeguards Policy Statement policy principles and safeguard requirements on involuntary resettlement stipulates the need for both internal and external monitoring of the resettlement plan implementation to ensure that the affected persons are being compensated adequately and their incomes and livelihoods have been restored, and that no unanticipated resettlement impacts have occurred. The monitoring and evaluation team, both internal and external, will pay special attention on the impact of resettlement on women and other vulnerable groups and will documents such impacts.

53. Internal monitoring of resettlement implementation will be the responsibility of LUOC Surveying Department. Internal monitoring will include:

(i) information campaign and consultation with DPs;

(ii) status of land acquisition and payments on land or income compensation;

(iii) compensation for affected assets, crops and trees;

(iv) progress on (if any) payments for loss of income and income restoration activities;

(v) complaints/grievances raised during the reporting period and how these grievances were resolved;

(vi) effectiveness of resettlement implementation arrangements and collaboration with relevant local agencies.

54. This information will be collected by the local LUOC office which will monitor the day-to-day resettlement activities of the project through the following instruments: (i) review of census information for all DPs; (ii) consultation and informal interviews with DPs; (iii) key informant interviews; and (iv) community public meetings. Semi-annual monitoring and evaluation reports documenting progress on resettlement plan implementation will be provided by LUOC to ADB for review. Upon completion of resettlement activities, LUOC will submit a resettlement completion report with a financial statement to ADB.

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55. In the unlikely event that the Project will entail any significant involuntary resettlement impacts, LUOC will engage the services of an external monitoring agency (EMA), which should be a consulting firm, an NGO, university or a research institute, to serve as an external auditor to carry out an independent evaluation of the resettlement process. The EMA will

(i) verify the internal monitoring activities done by LUOC and their outcomes;

(ii) review of the socio-economic and census and inventory of losses baseline information of pre-displaced persons; (iii) identify and select impact indicators;

(iii) consult DPs, officials, community leaders for preparing review report;

(iv) assess the resettlement efficiency, effectiveness, impact and sustainability, drawing lessons for future resettlement policy formulation and planning; and

(v) ensure the gender mitigation measures are implemented.

56. The EMA will also assess the situation of affected vulnerable groups such as female-headed households, disabled/elderly, the landless and families below the poverty line. The following will be considered as the basic indicators in monitoring and evaluating the RP implementation:

(i) socio-economic conditions of DPs in the post-resettlement period;

(ii) communications and reactions from DPs on entitlements, compensation, options, alternative developments and relocation timetables etc.;

(iii) changes in housing and income levels;

(iv) rehabilitation of DPs below poverty line, severely affected people, and different vulnerable groups;

(v) valuation of property;

(vi) ability to replace lost assets;

(vii) disbursement of compensation and other entitlements;

(viii) level of satisfaction of APs in the post resettlement period;

(ix) quality and frequency of consultation and disclosure; and

(x) conduct of grievance procedures.

57. The expert will make recommendations to LUOC on ways to improve its performance if found to be unsatisfactory. The agency will submit an annual monitoring and evaluation report for submission to the ADB. All social monitoring reports will be posted on ADB website in accordance with the PCP requirements.

I. RESETTLEMENT BUDGET

58. Detailed budget estimates for involuntary resettlement will be an important component of each RP. LUOC will allocate sufficient funds for the formulation of a satisfactory RP and for its implementation. The budget estimates will include (i) detailed costs of land acquisition, compensation at replacement cost for developments on land, relocation and livelihood and income restoration and improvement, (ii) source of funding, (iii) arrangements for approval, and the flow of funds and contingency arrangements. LUOC will pay land acquisition costs and compensation at replacement cost for developments on land, and, if required, relocation/moving expenses and allocate funds for income restoration activities prior to physical displacement or dispossession of assets. All land acquisition costs, compensation, relocation/moving expenses and rehabilitation of income and livelihood will be integral components of the project costs.

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Attachment 1 Involuntary Resettlement Screening Checklist

Name of Project Facility:

Description of Project Facility: Probable Involuntary Resettlement Effects

Yes No

Not Known Remarks

Involuntary Acquisition of Land 1. Will there be land acquisition? 2. Is the site for land acquisition known? 3. Is the ownership status and current usage of land to be acquired known?

4. Will easement be utilized within an existing Right of Way (ROW)?

If yes, prepare an RP.

5. Will there be loss of shelter and residential land due to land acquisition?

If yes, prepare an RP.

6. Will there be loss of agricultural and other productive assets due to land acquisition?

If yes, prepare an RP.

7. Will there be losses of crops, trees, and fixed assets due to land acquisition?

If yes, prepare an RP.

8. Will there be loss of businesses or enterprises due to land acquisition?

If yes, prepare an RP.

9. Will there be loss of income sources and means of livelihoods due to land acquisition?

If yes, prepare an RP.

Involuntary restrictions on land use or on access to legally designated parks and protected areas 10. Will people lose access to natural resources, communal facilities and services?

If yes, prepare an RP.

11. If land use is changed, will it have an adverse impact on social and economic activities?

If yes, prepare an RP.

12. Will access to land and resources owned communally or by the state be restricted?

If yes, prepare an RP.

Information on Displaced Persons: Any estimate of the likely number of persons that will be displaced by the Project? [ ] No [ ] Yes If yes, approximately how many? ______________________ Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes Are any displaced persons from indigenous or ethnic minority groups? [ ] No [ ] Yes

IR Impact Category Plan required: A Significant (200 people or more will experience major impacts)5 RP B Not significant (Less than 200 people will experience major impacts) RP C No impact None

5 Major impacts is defined as 200 or more people will experience physical displacement or lose more than 10% of

their productive assets.

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Attachment 2 Outline of a Resettlement Plan A resettlement plan is required for all projects with involuntary resettlement impacts. Its level of detail and comprehensiveness is commensurate with the significance of potential involuntary resettlement impacts and risks. The substantive aspects of the outline will guide the preparation of the resettlement plans, although not necessarily in the order shown. A. Executive Summary This section provides a concise statement of project scope, key survey findings, entitlements and recommended actions. B. Project Description This section provides a general description of the project, discusses project components that result in land acquisition, involuntary resettlement, or both and identify the Contract Area. It also describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified data and provide a rationale for the final decision. C. Scope of Land Acquisition and Resettlement This section: (i) discusses the project’s potential impacts, and includes maps of the areas or zone of impact of

project components or activities; (ii) describes the scope of land acquisition (provide maps) and explains why it is necessary for

the main investment project; (iii) summarizes the key effects in terms of assets acquired and displaced persons; and (iv) provides details of any common property resources that will be acquired. D. Socioeconomic Information and Profile This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including: (i) define, identify, and enumerate the people and communities to be affected; (ii) describe the likely impacts of land and asset acquisition on the people and communities

affected taking social, cultural, and economic parameters into account; (iii) discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and other

vulnerable groups; and (iv) identify gender and resettlement impacts, and the socioeconomic situation, impacts, needs,

and priorities of women. E. Information Disclosure, Consultation, and Participation This section: (i) identifies project stakeholders, especially primary stakeholders; (ii) describes the consultation and participation mechanisms to be used during the different

stages of the project cycle; (iii) describes the activities undertaken to disseminate project and resettlement information

during project design and preparation for engaging stakeholders; (iv) summarizes the results of consultations with affected persons (including host communities),

and discusses how concerns raised and recommendations made were addressed in the resettlement plan;

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(v) confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and

(vi) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project implementation.

F. Grievance Redress Mechanisms This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive. G. Legal Framework This section: (i) describes national and local laws and regulations that apply to the project and identify gaps

between local laws and ADB's policy requirements; and discuss how any gaps will be addressed.

(ii) describes the legal and policy commitments from the executing agency for all types of displaced persons;

(iii) outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided.

(iv) describes the land acquisition process and prepare a schedule for meeting key procedural requirements. H. Entitlements, Assistance and Benefits This section: (i) defines displaced persons’ entitlements and eligibility, and describes all resettlement

assistance measures (includes an entitlement matrix); (ii) specifies all assistance to vulnerable groups, including women, and other special groups;

and. (iii) outlines opportunities for affected persons to derive appropriate development benefits from

the project. I. Relocation of Housing and Settlements This section: (i) describes options for relocating housing and other structures, including replacement housing,

replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified);

(ii) describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs;

(iii) provides timetables for site preparation and transfer; (iv) describes the legal arrangements to regularize tenure and transfer titles to resettled

persons; (v) outlines measures to assist displaced persons with their transfer and establishment at new

sites; (vi) describes plans to provide civic infrastructure; and (vii) explains how integration with host populations will be carried out.

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J. Income Restoration and Rehabilitation This section: (i) identifies livelihood risks and prepare disaggregated tables based on demographic data and

livelihood sources; (ii) describes income restoration programs, including multiple options for restoring all types of

livelihoods (examples include project benefit sharing, revenue sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets);

(iii) outlines measures to provide social safety net through social insurance and/or project special funds;

(iv) describes special measures to support vulnerable groups; (v) explains gender considerations; and (vi) describes training programs. K. Resettlement Budget and Financing Plan This section: (i) provides an itemized budget for all resettlement activities, including for the resettlement unit,

staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation.

(ii) describes the flow of funds (the annual resettlement budget should show the budget-scheduled expenditure for key items).

(iii) includes a justification for all assumptions made in calculating compensation rates and other cost estimates (taking into account both physical and cost contingencies), plus replacement costs.

(iv) includes information about the source of funding for the resettlement plan budget. L. Institutional Arrangements This section: (i) describes institutional arrangement responsibilities and mechanisms for carrying out the

measures of the resettlement plan; (ii) includes institutional capacity building program, including technical assistance, if required; (iii) describes role of NGOs, if involved, and organizations of affected persons in resettlement

planning and management; and (iv) describes how women’s groups will be involved in resettlement planning and management, M. Implementation Schedule This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the project schedule of civil works construction, and provide land acquisition process and timeline. N. Monitoring and Reporting This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.