Technical Assistance Layout with Instructions
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Resettlement Plan December 2017 Georgia: Urban Services Improvement Investment Program (Tranche 6) GEO: CHI - 01 Chiatura Water Supply System Construction Project PR: 43405-ICB-CHI-01 – Urban Services Improvement Investment Program (USIIP Tranche 6) Prepared by the United Water Supply Company of Georgia LLC of the Ministry of Regional Development and Infrastructure for the Asian Development Bank.
Transcript of Technical Assistance Layout with Instructions
Resettlement Plan
December 2017
Georgia: Urban Services Improvement Investment Program (Tranche 6) GEO: CHI - 01 Chiatura Water Supply System Construction Project
PR: 43405-ICB-CHI-01 – Urban Services Improvement Investment Program
(USIIP Tranche 6)
Prepared by the United Water Supply Company of Georgia LLC of the Ministry of Regional
Development and Infrastructure for the Asian Development Bank.
This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................................... 3
CHAPTER 1. PROJECT BACKGROUND AND OBJECTIVES ......................................................................................... 7
CHAPTER 2: SOCIOECONOMIC PROFILE OF PROJECT AFFECTED PERSONS ........................................................... 13
CHAPTER 3: COMPENSATION ENTITLEMENTS ................................................... ERROR! BOOKMARK NOT DEFINED.
CHAPTER 4: LEGAL-REGULATORY FRAMEWORK ................................................................................................. 29
CHAPTER 5: INSTITUTIONAL ARRANGEMENTS .................................................................................................... 35
CHAPTER 6: PUBLIC CONSULTATIONS AND LARP DISCLOSURE ............................................................................ 36
CHAPTER 7: GRIEVANCE REDRESS MECHANISM .................................................................................................. 38
CHAPTER 8: MONITORING AND REPORTING REQUIREMENTS............................................................................. 42
CHAPTER 9: LARP IMPLEMENTATION SCHEDULE ................................................................................................ 43
CHAPTER 10: COMPENSATION UNIT RATES AND LARP BUDGET ......................................................................... 44
APPENDIXES ....................................................................................................................................................... 46
ABBREVIATIONS
ADB Asian Development Bank
AH Affected Household
AP Affected Person
DMS Detailed Measurement Survey
DP Displaced Person
EA Executing Agency
GRC Grievance Redress Commission
GRM Grievance Redress Mechanism
IPMO Investment Program Management Office
IP Indigenous People
IVS International Valuation Standards
LARP Land Acquisition and Resettlement Plan
MFF Multi-tranche Financial Facility
NAPR National Agency of Public Register
NGO Non-Governmental Organization
MLARO Municipality Land Acquisition and Resettlement Office
MOISD Ministry of Infrastructure and Sustainable Development
PMU Project Management Unit
ROW Right of Way
SPS Safeguards Policy Statement
USIIP Urban Service Improvement Investment Program
UWSCG United Water Supply Company of Georgia (LLC)
i
Definition of Terms
Affected Persons Please see below definition for Displaced Persons.
Compensation Payment in cash or in-kind for an asset to be acquired or affected by a
Project at replacement cost at current market value.
Cut-off-date The completion date of census1 of project affected persons2.
Detailed
measurement
Survey
The detailed survey of project affected land parcels and inventory of
affected assets.
Displaced Person
(DP) / Affected
Household (AH)
All the people affected by the Project through land acquisition,
relocation, or loss of incomes and includes any person, household
(sometimes referred to as Project affected family), firm, or public or
private institution. DPs therefore include: (i) persons affected directly by
the project corridor, right-of-way, or construction work area; (ii) persons
losing privately owned or used buildings and structures (residential
dwellings and supplementary structures); (iii) persons whose agricultural
land or other productive assets such as trees or crops are affected; (iv)
persons whose businesses are affected and who might experience loss of
income due to the Project impact; (v) persons who lose
work/employment as a result of Project impact; and (vi) people who lose
access to community resources/property as a result of the Project. For
the purposes of this LARP, displaced person (DP) and affected person (AP)
may be considered synonymous.
Encroachers People who move into the Project area after the cut-off date and are
therefore not eligible for compensation or other rehabilitation measures
provided by the Project.
Entitlement The range of measures comprising cash or in-kind compensation,
relocation cost, income rehabilitation assistance, transfer assistance,
income substitution/business restoration, which are due to AHs,
depending on the type, extent and nature of their losses, and sufficient
to restore their social and economic base.
Inventory of losses Pre-appraisal inventory of assets as a preliminary record of assets to be
affected or lost as a result of the Project
1 June 22, 2017 for the proposed project. 2 2 p. ii; Involuntary Resettlement Safeguards A Planning and Implementation Good Practice Sourcebook (ADB 2012)
https://www.adb.org/sites/default/files/institutional-document/32827/files/ir-good-practices-sourcebook-
draft.pdf
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Livelihood Means of support; subsistence (source of income)
APs with no formal
rights
Physical persons who have no recognizable rights or claims to the land
that they are occupying and includes people using private or state land
without permission, permit or grant.
Replacement cost The replacement cost is the amount enough to replace an affected asset
in its existing condition, without deduction of transaction costs or for any
material salvaged and depreciation for age. The Calculation of
compensation amount at full replacement cost will be based on the
following elements: (i) fair market value of construction materials;
(ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration
costs; and (v) other applicable payments, if any.
Sharecropper Same as tenant cultivator or tenant farmer, i.e., a person who cultivates
land they do not own for an agreed proportion of the crop or harvest.
Severely affected
Ahs
Those physically displaced or economically displaced losing 10% or more
of income generating assets.
Vulnerable Any person who might suffer disproportionately or face the risk of being
marginalized from the effects of resettlement and includes; (i) female-
headed households with dependents; (ii) disabled household member;
(iii) poor households (below poverty line); (iv) landless; (v) elderly
households with no means of support; (vi) households without security
of tenure; (vii) ethnic minorities.
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Executive Summary
1. The Government of Georgia applied to the Asian Development Bank (ADB) for the financing of the construction
and completion of water supply system for Chiatura within the framework of the Loan 3441-GEO: Urban Services
Investment Program – Project 6: titled CHI-01, Water Supply System, Chiatura3.
2. The water supply system of Chiatura – constructed 40-50 years ago, with minor monitoring, maintenance and
replacement of pipes and electro-mechanical installations - is in urgent need of upgrading and rehabilitation. In
addition, the water sources are affected by mountain ore and turbidity during rainfall periods, thus creating a
threat to the health of local population.
3. For the above reasons, following the request of UWSCG, the present design considers a new water source
located along the left bank of the Kvirila River in Sachkhere Municipality.
4. The results of hydrological investigation conducted during preparation of Chiatura Water Supply System
rehabilitation design, confirmed that the most suitable area for drilling the exploration boreholes for Chiatura
water supply is the studied area located parallel to the river Kvirila on the terrace, at the distance of 150 meters
from the river. To supply the city with 75 l/sec of water extraction, it is sufficient to drill seven (7) boreholes at
50 m distance from each other. The document, in accordance with appropriate standards and norms, requires
installation of security-sanitary zone around the boreholes.
5. According to the final design, the total area of land allocated within the ROW of the proposed project will
comprise 3.94 hectares.
6. Currently, the project territory is owned by the residents of village of Chikha in Sachkhere rayon and used
exclusively for agricultural purposes. Therefore, allocation of territory for project purposes will require
acquisition of some privately owned arable agricultural land parcels. The territory allocated for project purposes
will be fenced and no trespassing allowed to aliens. In addition, new access roads will be constructed to allow
owners releasing portion of their land parcels, to maintain uninterrupted use of remaining agricultural land
parcels.
7. To adequately address land acquisition and related economic and social impacts, compensation entitlements
and maintenance of livelihood of project affected people, the UWSCG has prepared a draft LARP in compliance
with the applicable laws of Georgia and ADB Safeguards Policy Statement (SPS 2009) on Involuntary
Resettlement.
3 The proposed project considers construction and completion of water supply system in Chiatura, in particular the arrangement
for 7 water supply wellfields (boreholes), rehabilitation of 4 raw water pumping stations, including civil works and provision of
new pump sets, construction of two reservoirs (1400 and 500 m³), rehabilitation of existing 8 reservoirs (4 of them with less
than 520 m3 volume, remaining 4 of 850, 1190,1340 and 2720 m3), installation of about 16 km long main transmission line (400
and 500 mm diameter pipes), about 10 km long transmission lines (114 to 355 mm diameter pipes), and about 68 km of
distribution network pipe works. The estimated construction period for the completion of works is 540 days.
4
8. The LARP sets out the project goals and project implementation schedule, defines the project affected persons
(APs), eligibility criteria for compensation and cut-off date, grievance redress mechanism, legal framework and
institutional involvement, procedures for AP participation and public consultation, determines compensation
unit rates based on the elaborated valuation methodology, defines compensation entitlements and additional
rehabilitation and mitigation measures which will be employed to compensate, and restore the livelihoods and
living standards of project affected persons and households.
9. The water supply system construction activities will be carried out within the identified ROW occupying the
agricultural land parcels located in vicinity of the regional road to Sachkhere. Most landowners are residents of
the village of Chikha which is almost contiguous with the town of Sachkhere4. According to the proposed project
design, the suggested ROW will require permanent acquisition of seventy-seven (77) land parcels. Out of these
77 land parcels, 74 land parcels with total affected area of 34,570 sq.m.) are privately owned and three (3) land
parcels composing 4,784 square meters of arable land are under legitimate possession of local residents. In total
seventy-seven land parcels to be acquired for project purposes will compose 39,354 sq.m. of rain fed, arable
agricultural land mainly used for growing corn, beans, wheat and even pumpkin. Some of the land parcels have
not been cultivated for a couple of years due to diverse reasons5.
10. These land parcels were distributed to the residents of village Chikha during 1994-1996 under the land reform
launched in Georgia following the break-up of the Soviet Era. In early 2000s systematic registration was
undertaken within the framework of the International donor funded projects to support title registration.
11. The total area of project affected seventy-seven (77) land parcels equals 39,354 sq.m. Among these 77 only
sixteen (16) project affected land parcels (19,147 sq.m.) will subject to full acquisition. The remaining sixty-one
(61) land parcels (with total area of 122,045 sq.m.) will subject to partial acquisition of 20,207 sq.m.) with major
portion of these land parcels remaining outside of the project ROW. The owners of these 61 land parcels will be
able to continue agricultural activities as the remaining portion (101,838 sq.m.) of these land parcels will still
maintain economic viability. Thus, the total affected area of land to be acquired will equal to 39,354 sq.m. The
table below scopes the project impact within the ROW.
Table 1. The summary of project affected land parcels and area of land acquisition
12. Overall, the APs with the residual land, meaning that remaining piece of land which as a result of land take has
lost previous designation and became economically unviable will be eligible to claim full cash compensation for
the entire area of such land parcel.
4 Some landowners have moved to other towns including the capital city, Tbilisi; however they retain land and real property in
their village to visit in the summer time. 5 Some landowners mentioned a lack of cash to cover land cultivation costs, while for others it was related to paid jobs located
outside of the rayon.
Scope of Impact
No of parcels
Total area
(sq.m.)
Area to be acquired
(sq.m.)
Area remaining
with AHs (sq.m.)
Full acquisition 16 19,147 19,147 0
Partial acquisition 61 122,045 20,207 101,838
Total 77 141,192 39,354 101,838
5
13. Importantly, land acquisition for project purposes will not cause any need for physical resettlement of affected
households as there are no residential dwellings on these land parcels. The project affected land parcels are
exclusively used for farming, producing agricultural produce and sometimes local people allow seasonal grazing
before the start of the plowing and sowing season.
14. The project impact will require demolition of one almost completely ruined structure located on privately owned
land parcel of 400 sq.m. The land parcel is registered in the NAPR as non-agricultural. In 2002 the AP acquired
this land parcel and attached deteriorated structure from the state through privatization. This parcel is located
right next to other project affected land parcels designated as agricultural and being used for growing seasonal
crops.
15. There are no metal fences or stone walls to be affected by the proposed project.
16. The project will most likely affect seasonal crops as a result of project construction activities that might cause
so e disruptio to APs’ atte pti g to gro seaso al rops o the re ai i g portio of la d par els.
17. Eleven perennials, in particular nine (9) fruit bearing trees and two (2) non-fruit bearing perennials are standing
within the ROW on one (1) project affected land parcels. These perennials, instead of being felled, will be
preserved within the sanitary zone of water reservoir. Since the APs will lose access and right to use these
perennials, the APs will be cash compensated as described in the Entitlement Matrix of this LARP.
18. The LARP provides detailed information on the volume of project impact, such as the number of all project
affected land parcels, full names of landowner(s), grown annual and seasonal crops, and perennials (including
fruit bearing and non-fruit trees).
19. During the LARP preparation, the following activities were undertaken:
a. Review of officially available data at the NAPR on land parcels registered under systematic and
sporadic registration;
b. Preparation of the initial list of project affected land parcels and their owners / possessors;
c. Onsite identification and enumeration of project affected land parcels;
d. Census and collection of socio-economic data on each located project affected household;
e. Demarcation and survey of all project affected land parcels in the presence of owner, or owner's
legitimate representative, owners of the adjacent land parcels, representatives of local government
and municipality;
f. Inventory of project affected assets being determined during demarcation and land survey in the
presence of the owner, or owner's legitimate representative and representatives of local
government and municipality;
g. Additional inventory of project affected assets conducted by the licensed valuator who also
conducted market research on secondary land sales6 prior to preparation of valuation report and
determination of compensation unit rates for affected land and assets;
h. Preparation of cash compensation package separately per each project affected land parcel and
broken down per type and volume of impacts subject to cash compensation.
6 Secondary land sales is the term often used in Georgia to describe sales transaction when a private person is willing to sell
land/real property acquired from the State through the privatization process.
6
20. According to the results of these surveys the entire project impact has been clearly defined and all steps and
legal procedures required for land acquisition, registration sales transactions and payment of cash compensation
were identified, scheduled and presented to APs and project stakeholders.
21. The project will impact 77 land parcels owned by 70 affected households.
22. Below is the summary of impact for the given project:
a. The total number of project affected land parcels: 77 / affected area 39,354 sq.m.
b. The total of number affected households: 70 (persons: 158 persons; among them 89 male and 69
female)
c. Physical resettlement 0:
d. Economic Displacement: 70 AH
e. Affected agricultural land parcels: 76 / affected area 38,954 sq.m.
f. Affected non-agricultural land parcels: 1 / affected area 400 sq.m.
g. Land parcels subject to full acquisition: 16 / 19,147 sq.m.
h. Land parcels subject to partial acquisition: 61 / 20,207 sq.m.
i. Land parcel attached with affected structure-building: 1 /100 sq.m.
j. Land parcel attached with structure (residential and /or commercial) used by the AP: 0
k. Land parcels with annual crops /hey: 76/38,954 sq.m.
l. Land parcels attached with affected perennials: 1/400 sq.m
m. Project affected fruit-bearing perennials: 9
n. Project affected non-fruit bearing trees: 2
o. Permanent /temporary stoppage of business: 0
p. Loss of wages/salary from business employer: 0
q. Affected supplementary structures, fences, walls, etc.: 0
r. Total of severely affected land parcels: 747
s. Total of Vulnerable: 13 AHs.
7 In total 74 land parcels will lose more than 10 % of income generating land.
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Chapter 1. Project Background and Objectives
Project Overview
23. Water supply system of Chiatura – constructed 40-50 years ago, with minor monitoring, maintenance and
replacement of pipes and electro-mechanical installations - is in urgent need of upgrading and rehabilitation. In
addition, the water sources are affected by mountain ore and turbidity during rainfall periods, thus creating a
threat to the health of local population.
24. According to the Detailed Design Report of Rehabilitation of Chiatura water supply system prepared by Eptisa in
December 2016, the water sources in Chiatura have similar characteristics, high values of hardness, conductivity
and nitrate concentration. In addition during rainy periods there are also high levels of MN content. During some
periods of the year, pollution interrupts the supply of water. According to Chiatura-UWSCG, customers complain
about the turbidity of water, in particular during rainy periods.
25. For the above reasons, following the request of UWSCG, the present design considers a new water source in
Sachkhere, along the left bank of the Kvirila River, near the site where the water is drained /extracted to supply
the town of Sachkhere.
26. The proposed project will: (i) provide potable water to Chiatura residents, and (ii) help stimulate livelihood
standards and improve health and safety of local residents as final recipients of the project. The expected
outcome of the proposed project is improved efficiency of water supply, and the installation of meters
supporting collection of fees for the consumed potable water within the project area. Project will benefit
Chiatura population of approximately 15,400 persons.
Methodological Introduction
27. During LARP preparation, several activities were undertaken. On April 7, 2017, at the starting phase of LARP
preparation, the UWSCG organized an extended public orientation meeting in the village Chikha of Sahckhere
rayon. The meeting was held in the Municipality building and attended by 65 persons: local population, project
affected persons, representatives of Sachkhere and Chikha Municipalities, Design Engineer Company - EPTISA
and UWSCG. The attendees were provided with information on project objectives, outcomes and expected
outputs, scope of impact including the need for land acquisition, expected cash compensation and mitigation
measures.
28. Later the LARP Consultant accompanied by the UWSCG Resettlement Team conducted several more public
orientation meetings with local population and potential APs. The objective of these meetings was to inform
the public on pending activities and surveys required for LARP preparation aiming to ensure that livelihood of
project affected persons, if not improved, would at least be maintained at pre-project levels. The sufficient
amount of adequate information shared with local population through face-to-face meetings, discussions and
question-answer sessions oti ated APs’ illi g ess to parti ipate i the sur e s u dertake et ee May –
June 2017.
8
29. During the seven (7) public orientation meetings held in Chiatura (one meeting), Sachkhere (one meeting) and
five (5) public orientation meetings in village Chikha, during the time period from April 7, 2017 through June 22,
20178. The Consultant, together with the UWSCG Resettlement Team, interacted with the majority of APs (in
total 70 AHs) and shared general information on project objectives, the goals of the pending surveys, and
introduced the general principles of valuation methodology, compensation entitlements, cut-off date, and
eligibility criteria. Additionally, APs were informed about the pending surveys (census, socio-economic and
inventory of project affected assets), and the survey date and time was scheduled at APs' convenience and
availability. The summary table of the Public Orientation meetings held during LARP preparation period is
presented in the Annex 1 in the Section of Appendixes.
30. The Consultant together with UWSCG Project Team conducted a desk review and initial examination of available
data. After transposing project design drawings with NAPR Cadaster maps, the team walked through the entire
project ROW and identified each project affected land parcel in situ. NAPR public records on land tenure and
copies of Receive–Delivery Acts available at the local Municipality have been collected and analyzed.
31. Based on this information, the initial data on APs was developed. The data contained: full names of project
affected land parcels owners, ID numbers and contact details, area of project affected land parcel, and title
registration status.
32. After all project affected land parcels were physically identified and their owners determined, the Consultant
commenced the remaining surveys: census, socio-economic survey, demarcation, and detailed inventory of
project affected assets and valuation; in addition, a thorough title search was conducted for assessment of land
tenure status, deter i atio of APs’ eligi ilit for ash o pe satio , earl ide tifi atio of any absent and
deceased APs.
33. This information has been revised, checked for accuracy and later fulfilled according the findings of census, socio-
economic survey (SES), demarcation, land surveys and title search undertaken during LARP development period.
34. In parallel, qualitative study was undertaken at the project initial phase to gain an understanding of
livelihood patterns of project affected community. The obtained information and insights were used to
design questionnaire for socio-economic survey. The Consultant used open-ended and semi-structured
questionnaires to collect qualitative data. Besides, information was collected through individual in-depth
interviews, focus group discussions with APs and other local residents, to not be affected by the
proposed project. To preserve homogeneity focus group discussions were conducted individually in
each category (directly and indirectly affected) through face-to-face interviews. In-depth interviews
(KIIs) were conducted with the representatives of (i) local municipality, (ii) local executive power, (iii)
NAPR (Tbilisi and Sachkhere), (iv) local business people (male and female) trading in Sachkhere
agricultural market, teachers, and youth.
35. On May 2-3, 2017 the Consultant field tested the form of semi-structures questionnaire to be used for census
and socio-economic data collection. In Chikha village ten (10) randomly selected APs have been interviewed to
test time required for filling in the questionnaire and be confirmed the APs would not be reluctant to answer
the questions and provide the information requested under the questionnaire to be used during census and SES.
8 The detailed information on the public orientation meetings conducted during LARP development period is presented in
Chapter 6 and Annex 1.
9
All ten APs willingly answered the questions. The field testing confirmed that questionnaire was suitable for the
assignment.
36. The Data collected through semi-structured questionnaire with number of open questions equipped the
Consultant with information on lifestyle, cultural and social issues, income and wage patterns, general trends
and current prices at the commodity and real property markets.
37. Based on the qualitative survey findings the Consultant developed initial understanding and sound base for
further planning and undertaking the required studies and surveys.
38. The Census and SES has been conducted during June 1-22, 2017. The objective of the SES, similar to census, was
to cover all project affected households. Privacy policy was followed while interviewing the APs permitting them
to feel comfortable sharing information during the surveys. The Consultant used face-to-face interviews (68 AHs)
and telephone interviews (2 AHs) for AHs being away from their permanent residence during the census/ SES
period.
39. Inventory of project affected assets was undertaken by the Consultant together with the UWSCG Resettlement
Team and independent licensed valuator. Valuation methodology and compensation unit rates were developed
by the valuator and revised by the Consultant. The unit rates and LARP Budget was prepared according to the
inventory results and based on the valuation principles in compliance with IVS, best international practice,
country legislation, and ADB SPS 2009.
Title Search conducted during LARP preparation
40. In the process of LARP preparation during census and title search the legal status of project affected land parcels
have been defined. Thirty-one (31) APs presented updated registration documents, while Thirty-nine (39) APs
presented the title documents registered under the systematic registration undertaken in Georgia in early 2000s.
Noteworthy, under the current legislation prior to land acquisition owner of a land parcel registered during
systematic registration is required to first update the registration based on the Receive - Delivery Acts issued in
90s or Title Certificate issued during Land Reform, whichever is available, to confirm the origination of ownership
status9.
41. The licensed land survey company demarcated and surveyed all project affected land parcels and issued cadaster
survey maps in compliance with the legal requirement. The APs were provided with free cadaster survey maps,
guided and instructed on how to apply to NAPR for updated registration.
9 Georgia, after gaining independence from the Soviet Union, determined private possession on land through disposition and
management of land par els for erl , i “o iet Era used olle ti e far s Kolkhozes su sidized the “tate. Withi the framework of economic reforms undertaken in the country, large land parcels being under collective farms possession and use,
were subdivided into smaller parcels and alienated among the households that did not any more receive agricultural subsidy
from the State. Land Reform in Georgia has been undertaken through several phases, staring from 1992 through 2005 years.
Presently, land parcels registered within the framework of the Land Reform require specifying the coordinates and registration
of corrections to ensure that these corrections are reflected in the NAPR electronic base that is active since 2006 and cover the
entire country.
10
42. The APs submitted documents to Sachkhere NAPR office to update registration of project affected land parcels.
Similar action was undertaken by APs residing in Tbilisi, who applied for registration update to the NAPR Office
in Tbilisi.
43. The UWSCG Resettlement Team put additional efforts to reach out to the APs with suspended registration and
provided them with new and correct cadaster survey maps issued by the survey company.
44. Significant attention and correct approach was used during determination of project affected land parcels
(including portion of a land parcel subject to partial acquisition for proposed project purposes) through the
demarcation of project affected land parcels. Demarcation was undertaken by a licensed company practicing in
the field of land surveys. The surveyors used professional equipment and in situ identified the factual location
of the boundaries of all project affected land parcels located within the ROW. The initial list of APs was double
checked and data added as collected during the census and SES.
45. Members of the household whose project affected land parcel was registered in the name of a deceased owner
were provided with updated cadaster survey maps, accompanied to the NAPR and instructed on application
procedures to update their titles. Most APs accepted UWCSG assistance with gratitude.
46. Overall, title search allowed timely detection of all procedural gaps and identified necessary legal actions and
bureaucrat steps to be accomplished prior to commencement of LARP implementation, and permitted
successful handling of time consuming legal procedures.
47. During demarcation and land surveys of project affected land parcels, no cases of land capture (encroachment)
was observed. All land parcels are registered either during systematic registration or as a result of sporadic
registration10. Although, according to the current legislation, almost 90 % of project affected land parcels will
need to be re-registered prior to land acquisition as stipulated under the active legislation of Georgia.
Magnitude of Project Impact
48. According to the proposed project design, the project construction activities will be carried out on the territory
used for agricultural activities by the residents of village Chikha and entail permanent acquisition of seventy-
seven (77) privately owned rain fed arable agricultural land parcels being under private possession of 70 AHs.
49. The total area of project affected seventy-seven (77) land parcels equals 39,354 sq.m. Among these 77 only
sixteen (16) project affected land parcels (19,147 sq.m.) will subject to full acquisition. The remaining sixty-one
(61) land parcels (with total area of 122,045 sq.m.) will subject to partial acquisition of 20,207 sq.m.) with major
portion of these land parcels remaining outside of the project ROW. The owners of these 61 land parcels will be
10 Title Certificates and/or Receive – delivery acts are the major legal documents verifying private possession/ownership to rural /arable
agricultural land parcels of the households. In case of the given project, the majority of Chikha residents (APs) presented the valid copies of
Receive-delivery Acts. The information on land possession was confirmed with village Chikha Municipality and compared for accuracy with
the information provided from the local archive. Based on the information retrieved from the receive-delivery acts combined with census
data, additional land surveys were conducted by UWSCG professional land surveys. This was free-of-charge service provided to APs. The land
surveys allowed to specify precise coordinates and update registration data in the NAPR. This procedure was undertaken in compliance with
the NAPR requirements. At the starting phase of LARP development the legal procedures and steps to be undertaken during land acquisition
were informally discussed with the key leads of relevant department of the NAPR.
11
able to continue agricultural activities as the remaining portion (101,838 sq.m.) of these land parcels will still
maintain economic viability.
50. Overall, the APs with the residual land, meaning that remaining piece of land which as a result of land take has
lost previous designation and became economically unviable will be eligible to claim full cash compensation for
the entire area of such land parcel.
51. Importantly, land acquisition for project purposes will not cause any need for physical resettlement of affected
households as there are no residential dwellings on these land parcels.
52. The project affected land parcels are exclusively used for farming, producing agricultural produce and sometimes
local people allow seasonal grazing before the start of the plowing and sowing season.
53. The project impact will require demolition of one almost completely ruined structure located on privately owned
land parcel of 400 sq.m. The land parcel is registered in the NAPR as non-agricultural. In 2002 the AP privatized
from the State this land parcel and attached deteriorated structure. This parcel is located right next to other
project affected agricultural land parcels.
54. There are no metal fences or stone walls to be affected by the proposed project.
55. The project will most likely affect seasonal crops as a result of project construction activities that might cause
so e disruptio to APs’ atte pti g to gro seaso al rops o the re ai i g portio of la d par els.
56. Eleven perennials, nine (9) fruit trees and two (2) non-fruit bearing perennials are standing within the ROW on
one (1) project affected land parcels. These perennials, instead of being felled, will be preserved within the
sanitary zone of water reservoir. Since the AP will lose access and right to use these perennials, the AP will be
cash compensated as described in the Entitlement Matrix of this LARP.
57. In addition, there are more perennials growing on the edge of the river Kvirila bank and along the current access
road. These perennials will not be directly affected by the project as they grow outside of the boundaries of
project affected land parcels. None of the APs have claimed ownership rights to these perennials during
demarcation, cadaster surveys and inventory of affected land and assets. Besides, none of the APs confirmed
using these perennials for collection of firewood or fruits11. Therefore, the trees grown along the river bank but
not on private land parcels will not be subject to any cash compensation.
11 Since none of the APs will experience loss of income by losing access to these perennials, these trees are not included in the
cash compensation package developed separately per each project affected land parcel. The purpose of this information is to
ensure that no unfair claim for compensation is made during construction period by any AP or any interested person.
12
58. During LARP preparation significant attention was given to the needs of the disadvantaged, vulnerable groups12
and severely affected13 AHs. These APs were provided with transportation to the project site to attend land
surveys. Legal advisory was provided to female headed HHs on how to apply for update registration of project
affected land parcels. Two single elderly APs were provided with free of charge land survey services for additional
land parcels rather than project affected ones to proceed registration of titles.
59. The summary table below shows the scope of project impact identified based on the project design drawings,
census, socio-economic survey, title search, and inventory of project affected assets, undertaken on site during
the preparation of this draft LARP.
Table 2. Summary of project impact covered under this LARP
Project Affected Unit Number of Units
Land parcel 77
Household 70
Total of project affected persons 158
Vulnerable AHs 13
Severe impact 74
Land parcels to be fully acquired 16
Land parcels to be partially acquired 61
Structure (deteriorated) 1
Land parcels with annual crops/hey 76
Fruit bearing perennials 9
Decorative/timber perennials 2
60. The UWSCG made a decision to prepare LARP for the proposed project ROW. According to the magnitude and
the level of severity of project impact on affected persons and communities, considering the ADB SPS 200914,
the project is suggested to be classified as Category B.
12 Any person who might suffer disproportionately or face the risk of being marginalized from the effects of resettlement and
includes; (i) female-headed households with dependents; (ii) disabled household heads; (iii) poor households (below poverty
line); (iv) landless; (v) elderly households with no means of support; (vi) households without security of tenure; (vii) ethnic
minorities. 13 Severely Affected AHs are those losing 10 % or more of income generating (producing) land/assets as a result of project related
physical and/or economic displacement 14 http://www.adb.org
13
Chapter 2: Socioeconomic Profile of Project Affected Persons
61. Population of village Chikha counts 800 households. The majority of project affected persons are located in
village Chikha. Some AHs hold the land ownership and also keep the residential house in village Chikha, but
permanently live and work in Tbilisi, the Capital city of Georgia. In terms of the magnitude of land take this
project will impact around 8.75 % of the village households.
Age Composition of AHs
62. The Socio-economic profile of the APs is based on the information obtained during census and the results of
socio-economic survey of all located AHs. The total number of affected households (70 AHs) comprise 158
persons (89 male and 69 female). Out of these 158, the underage persons are 14 (5 boys and 9 girls). The average
size of a household is 2.26 persons. However, several households count from six to seven household members.
63. The table below shows the age composition of the APs disaggregated according to gender and age groups of
adults and underage persons.
Table 3: Breakdown of APs according to Age Groups and Gender
Project Affected
persons
Male Female Total
Number % Number % Number %
Adult 84 94.4 60 86.96 144 91.14
Underage (below
18 years) 5 5.6 9 13.04 14 8.86
Total 89 100 69 100 158 100
Occupation and Main Source of Income of AHs
64. Many of the local population is mainly engaged in horticulture (cattle breading) and agriculture. Main annual
crops grown are wheat and corn. Corn stems are used as the main fodder for cattle; wheat is grown for family
consumption, and they only sell a small share of their produce at the local market. Vegetables, mainly potato,
cabbage, carrot, garlic, and onion is grown in the orchards organized in the backyards of the land parcels assigned
for residential purposes.
65. Some AHs are involved in farming, in the local context being associated with horticulture and utilization
agricultural land mainly for growing annual crops to feed the cattle. Both men and women are pre-occupied with
cattle. Most households keep only one cow and several chicken. Mainly men herd the cattle on rotation
schedules. APs collect grass from their land parcels; plus they purchase some hey for winter and use remnants
of food not consumed in the family to surplus daily ration of the only cow, to collect milk and make cheese for
self-consumption or for sale at the Sachkhere agriculture food market.
14
66. Therefore, one of important element for the proposed project is provision of access roads to the remaining
portions of the land parcels so that APs are able to use agricultural machinery to cultivate and collect yield during
harvest period.
67. During key informant interviews, census and socioeconomic survey, most of the AHs confirmed that arable
agricultural land is of vital importance for their livelihood. Anyhow, during the demarcation and re-survey of
project affected land parcels the inventory of project affected assets confirmed that less than half of land parcels
have been cultivated this year. According to the AHs they cannot cover the cultivation costs since the
government stopped issuance of vouchers they used last couple of years for cultivation these land parcels.
68. Few men have temporary jobs in construction and often leave home to earn for leaving. Few men drive cars and
provide taxi services to the villagers. Many of adult men do not have salary-paid employment, therefore placing
a majority of men into the category of interested in full time employment opportunities.
69. Most of the females are housewives taking care of family and children and they also tend to the fields growing
crops. A few have paid jobs as civil servants or assist their family members to run local shops selling consumer
goods.
70. Worth to be noted that AHs did not properly quantify their annual income gained from agricultural activities,
but indicated that they use grown seasonal crops mostly for personal consumption. In terms of cash inflow, they
found it easier to report monthly salary rates, retirement pension, and/or disability aid and regular costs for
food, consumer goods, utilities, communication and health care.
71. The median source of cash flow is retirement pension (180 GEL/month) and State targeted aid for disability (the
amount varies according to the 1st, 2nd, and 3rd category of disability).
72. Overall livestock remains the main source of making a living, and also a reliable source of cash income for most
of the AHs. Though some interviewed persons did not nominate livestock and farming as their main activity, but
rather confirmed that they were looking for stable and regular paid employment.
73. As composed in the table below, the major source of income of AHs is based on the information obtained during
census and socioeconomic survey of 100% of located AHs.
Table 4: Breakdown of PAPs according to their Occupation Disaggregated by Gender
Occupation
Male Female Total
Number
of
Persons
% Number of
Persons %
Number of
Persons %
Farmer 16 17.98 0 0.00 16 10.13
Housewife 0 0.00 29 42.03 29 18.35
Pensioner 17 19.10 26 37.68 43 27.22
Civil Servant 5 5.62 5 7.25 10 6.33
Unemployed 18 20.22 0 0.00 18 11.39
Schoolies 5 5.62 9 13.04 14 8.86
15
Expenses of AHs
74. The biggest share of expenses relates to clothing, health care, purchase of consumption goods and food, plowing
and sowing costs, keeping livestock, and interest rates for swift loans.
Table 5: Breakdown of Percentage Ratio of Average Annual Expenditures of the AHs
AH expenditures Percentage Ratio of AH expenses
Food 32.84
Health care 14.53
Vehicle maintenance 11.08
Utilities 7.27
Clothing 6.17
Bank loan Interests 5.49
Farming & Livestock 4.09
Housing repairs 3.40
Transportation costs 3.36
Education /University 3.07
Telecommunication 2.50
Agriculture activity costs 2.05
Cigarettes /Alcohol 1.64
Consumer Goods 1.33
Internet 0.68
Business Operational costs 0.00
Travel/leisure 0.50
Total 100
Possessions of AHs
75. People in project affected area live in residential dwellings built of bricks and blocks. The houses are mainly two-
storied, 3 to 4 bedrooms, and kitchen, storage and living room on the first level. Besides, all households have
supplementary structures being used as storage facilities, summer kitchens, cattle barns, and bathrooms. Usually
these structures, including latrines, baths and kitchens are built separately with external access. The roofs of the
residential dwellings are mainly newly covered by green or purple metal sheets. For several years the
businessman originally coming from this rayon of Georgia has been providing significant technical and financial
Business/Self-
employed 11 12.36 0 0.00 11 6.96
Hired labor 16 17.98 0 0.00 16 10.13
Working
abroad/out of
region
1 1.12 0 0.00 1 0.63
Total 89 100 69 100 158 100
16
aid to local people. The support included new roof covers, gas heaters, free gas and electricity supply and free
health care in local hospital meeting international standards.
76. Local people possess several land parcels, aside to residential land plots often attached with smaller land plots
used as orchards where they often grow small gardens of vegetables (cabbage, carrots, garlic, onion, beans and
etc.). Majority of AHs have about 2000-4000 sq.m. of agricultural land parcels received during the land reform.
These land parcels are located further from the village settlement but still on the walking distance. The AHs use
them for agricultural activities to grow annual crops and fodder for their cattle.
77. The level of possessed durable goods varied. All AHs have Color TVs and Satellite Dishes. Many AHs have more
than one mobile phone. 52 % of AHs have washing machines. 12 AHs out of 85 keep automobiles. Internet is
only available to 8 AHs. WCs are mainly outside of the residential houses. Hot water is available to most AHs
operating on electricity or wood file. Natural gas and electricity is provided to all AHs. Potable water is provided
from private wells built decades ago by grandparents. Besides, many families receive water through rubber pipes
downstream from the mountain springs. Such self-organized water supply systems are traditional to rural areas,
especially in the villages located in the bottom of the hills. Only limited number of AHs managed to organize
inside the house WCs.
Table 6: Breakdown of the Possession of Durable Assets of AHs
Item Number of AHs %
Color TV & Satellite Dish 70 100.00
Mobile phone 107 152.86
Landline telephone 20 28.57
PC and/or Laptop 10 14.29
Internet 6 8.57
Well in private yard 4 5.71
Gas Heater (being used) 43 61.43
Electric heater 10 14.29
Wood Stove 54 77.14
Washing machine 38 54.29
Refrigerator 65 92.86
Motor cycle 4 5.71
Automobile 11 15.71
Mini tractor 3 4.29
Mini Bus 6 8.57
TOTAL of AHs 70 100
Education and Literacy of AHs
17
78. The level of literacy of AHs is reported to be 100%. The adults (89 male and 69 female) attended secondary
school. Ten (10) females have higher education degrees, while twenty (20) men are University graduates. Six (6)
men managed to obtain technical education and /or /vocational trainings.
Table 7: Sex-disaggregated Education and Literacy Level of Adults Members of AHs
Education/Literacy Male Female Total
Number
of
Persons
% Number
of
Persons
% Number
of
Persons
%
Primary 0 0.00 0 0.00 0 0.00
Secondary 67 75.28 61 88.41 128 81.01
Technical 5 5.62 0 0.00 5 3.16
Higher (university) 17 19.10 8 11.59 25 15.82
Total 89 100 69 100 158 100
Vulnerability among AHs
79. The total of thirteen (13) persons composing thirteen (13) vulnerable AHs have been identified during the census
and socio-economic survey. Five (5) AHs are below poverty line and receive State targeted aid. Six (6) households
are headed by females. Besides, two (2) persons are registered as disabled and receive State aid. Since
vulnerability category is assigned to the household. In total thirteen (13) project affected households are
qualified as vulnerable according to their socio-economic status.
Table 8: Breakdown of Vulnerable APs per AHs
Female Headed
Household
HH Below
Poverty Line APs with disability Vulnerability Index
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
6 5 2 13
18
Indebtedness
80. Several AHs reported bank loan liability and shared the amount of monthly interest rate they are liable to pay to
the lending institution.
Infrastructure
81. Major health care center – newly built clinic with qualified medical personnel and modern equipment is located
in town of Sachkhere, the administrative center of the rayon with the similar name. The secondary school
offering full educational program (12 grades) is located in village Chikha. Sport facilities are easily accessible to
local teenagers. Several Banks, ATMs are provided in the rayon center. Agricultural market, several restaurants,
number of pharmacies, small supermarkets and other trade facilities are organized in the center of Sachkhere,
in close vicinity to Regional Bus Station.
82. Population of Chikha is provided with natural gas supply and electricity. However, in winter time most
households prefer to use firewood for heating and cooking rather and attempt to minimize natural gas and
electivity consumption to keep the utility costs relatively low.
83. Local municipality issues spe ial so alled passes to ea h household allo i g the to olle t fire ood i the designated forest areas.
Women in the Local Context
84. Women are mainly involved in household activities such as horticulture, animal husbandry, and general
household works. Women participate in household decision-making processes and organizing family matters.
During census and socioeconomic survey, female respondents were active and willing interviewees.
85. The majority of affected households are headed by men. The Receive-Delivery Acts are issued on the name of
Household Head. However, during the registration of land parcels distributed and allocated to the HHs, all family
members including parents, spouses and children born before 2006 are recorded at the NARP as the co-owners.
Impact on Minorities
86. No ethnic minorities are among the Project Affected Persons. The APs are primarily Georgian. No group of local
residents showed any specific or unique features that could be identified as a distinct minority group. No impact
on Indigenous People is expected from the Project. The investment program area does not include communities
that may be defined as indigenous peoples under ADB's Safeguard Policy Statement (2009). Consequently, the
indigenous peoples' impact classification for the proposed project is C.
19
87. The project at the construction phase will include appropriate measures to mitigate the potential risk of
HIV/AIDS and other sexually transmitted diseases, as well as drugs and human trafficking. These measures
include raising public awareness and shall be undertaken by Construction Contractor and/or Supervision
Consultant as requested according to the specific contractual agreements.
Chapter 3: Compensation Entitlements
Objectives of Compensation Policy
88. The implementation of resettlement activities is linked to the implementation of the investment component of
the project to ensure that displacement or restriction of access does not occur before necessary measures for
resettlement have been fully implemented and confirmed.
89. As stipulated in SPS 2009 and described in this LARP all project related impacts identified during the relevant
studies should be addressed accordingly, meaning that all project affected persons will be provided with relevant
compensation and other assistance required for relocation, prior to displacement, and preparation and provision
of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets
may take place only after compensation has been paid and, where applicable, resettlement sites and moving
allowances have been provided to the displaced persons.
Compensation Eligibility Criteria and Cut-Off Date
90. Compensation eligibility is limited to AHs by the cut-off date, June 22, 2017. The APs have been informed about
the essence and meaning of the cut-off date and communicated that this is the completion date of the census,
demarcation and land surveys, title search, socioeconomic survey and inventory of project affected assets
undertaken by the Consultant from May 2 to June 22 of the year 2017 in close cooperation with licensed survey
company, UWSCG Resettlement Team, APs and the representatives of local Municipality.
91. All project affected land parcels within the ROW have been surveyed. The results of land parcel survey was
printed out on a large format and displayed in the meeting hall of Chikha Municipality. The cadaster drawing
showed all 77 land parcels. The land parcels were enumerated, the name of landowner and area of the land
parcels was applied on each plot and in the separate table provided on the margin of the same printout.
92. The APs were introduced to the displayed drawing - Cadaster Survey Map - and explained how to identify their
own land parcel. They were invited to identify their land parcels, double check the accuracy and confirm with
personal signature, or report any discrepancy if revealed with regard to the area, location, names of owners of
adjacent land parcels etc.
Photo 1. Cadaster design map displayed in the Meeting Hall of Chikha Municipality
20
Photo 2. APs checking the accuracy of presented data and provide their feedback
93. After all signatures have been applied to the disclosed drawing and all comments and feedback of APs
considered, the relevant corrections have been made to finalize the sequence and area of affected land parcels.
Then the closure date – June 22, 2017 was applied to the drawing and the same date was established as the cut-
off-date for the given project.
94. The cut-off date for the project has been established as June 22, 2017.
95. AHs who settle in the affected areas after the cut-off date will not be eligible for compensation, as they will be
classified as illegal encroachers. These AHs, if any detected within the project ROW, will be given three months
advance notice to vacate premises and dismantle structures, if any prior to project implementation. Their
dismantled structures will not be confiscated and they will not be penalized or sanctioned. Indeed, forced
eviction will only be considered following exhaustion of all other efforts.
96. The LARP determines eligibility criteria of affected households (AHs) and provisions for compensating all types
of impact expected as result of the proposed project. In particular:
a. Loss of entire agricultural land parcel
b. Loss of portion of agricultural land parcel
c. Loss of entire non-agricultural land parcel attached with condemned structure
d. Loss of income from growing seasonal crops
e. Loss of some perennials15
15 There are a number of perennials including fruit trees standing between the land parcels or even outside of land parcel
boundaries. None of the APs claimed ownership or possession of these perennials, or confirmed receiving any income from
21
97. Loss of land will be cash compensated at full replacement cost16 according to current market value as determined
under the Valuation Report17 prepared by the independent licensed Valuator specifically for the given project.
98. The criteria for eligibility to compensation are based on AHs belonging to one of three groups:
a. those who have certified and/or formal rights of use of the occupied land;
b. those who do not have formal legal rights (i.e. legitimate possession) to land at the time of the
census and SES accomplishes but have a legal basis to claim for such land or assets—provided that
such claims are recognized and/or become recognized in accordance with the effective legislation
of Georgia;
c. those who have no recognizable legal right or claim to the land they are occupying (i.e. land users
without registered certificate and informal settlers) eligible for compensation of income and assets
lost but not land18.
99. Where land is to be acquired, land possessors (APs) with registered Certificate and/or AHs not holding Title
Certificates but are eligible to claim for Certificate will be assisted in the process of title registration and receive
full compensation at replacement cost for acquired land.
100. The APs that are not eligible to register ownership title to land pursuant to the rules, laws or any regulations
being in force in Georgia are not eligible for compensation for land but will receive compensation for assets
attached to land and other assistance as described in the Entitlement Matrix.
101. Households headed by single women with dependents and all other vulnerable households will be eligible
for further assistance19 to fully mitigate project impacts.
102. Considering the volume of impact on separate land parcels, all 70 AHs owners of 74 land parcels are severely
affected, as the percentage of land take is more than 10 % in case of partial acquisition and 100 % when entire
land parcel subject to land acquisition for project construction purposes.
103. In compliance with ADB SPS 2009 and this LARP special care20 will be given to vulnerable and severely
affected AHs.
these wildly grown plum trees. However, cash compensation package contains cash compensation for the perennials standing
along the two project affected land parcels. 16 No additional resources of similar land are available to exercise land-for-land compensation (provision of land of equal size
and productive value). 17 Calculation of cash compensation at income capitalization rates was not required due to the fact that real property market
proved to be sufficiently active in the project influence area. 18 According to ADB SPS 2009, AHs falling to the 3rd category beside the cash compensation for loss of assets and income will
receive one-time allowance as additional rehabilitation measure to assist them maintenance of their livelihoods at least to
the pre-project levels.
19 The specific description of further assistance for vulnerable people is described in the Entitlement Matrix provided below in
this chapter. 20 Vulnerable APs will be provided with transportation to the NAPR office to sign Sales Agreement. Besides, UWSCG
will provide necessary technical assistance as needed in the process of LARP implementation and beyond.
22
Compensation Entitlements and Mitigation Measures
104. Entitlement provisions are defined specifically for this project and applicable to APs facing loss of land, assets
and income, incorporate cash compensation at full replacement cost at the current market values in compliance
with the ADB SPS 2009 and active legislation of Georgia.
105. The entitlements are detailed below:
106. Agricultural arable land will be cash compensated at full replacement cost in the amount sufficient to
purchase replacement land of equal in value and productivity in vicinity to the project affected land parcel.
Method for calculation of full replacement cost will include cost of preparation of land to levels similar to those
of the affected land. The taxes and fee related to processing transaction registration will be covered by the
Executing Agency.
107. Non-Agricultural land will be cash compensated at replacement cost in the amount sufficient to purchase
land of equal in value, designation and location in vicinity to the project affected land parcel. Method for
calculation of full replacement cost will include cost of preparation of the land to levels similar to those of the
affected land. The taxes and fee related to processing transaction registration will be covered by the Executing
Agency.
108. "Orphan land": remaining piece of land which as a result of land take has lost previous designation and
became economically unviable. In such case, landowner is eligible to claim full cash compensation for the entire
area of such land parcel.
109. Structures: Structure-buildings (including condemned one) will be compensated in cash at full replacement
cost, i.e. construction cost without any deductions for depreciation, salvaged materials, or transaction costs. The
compensation for houses/buildings will include the cost of lost utility (water, electricity, sewerage, gas)
connections. Construction cost calculation considers market cost of the materials to build a replacement
structure with an area and quality similar to or better than those of the affected structure, or to repair a partially
affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any
la or a d o tra tor’s fees. A appli a le ta es a d fees for tra sa tio registratio ill e o ered the Executing Agency.
110. Deteriorated structure: cash compensation for deteriorated structure was determined based on the
salvaged materials. The ruined remnant of the structure, fragments of remaining walls composed by old
construction blocks and bricks can hardly be used for further construction purposes. Therefore, in given case
evaluation was conducted according to the current market value of the salvaged materials.
111. Fruit bearing perennials: Cash compensation shall reflect income replacement. Cash compensation will be
calculated at current market value and according to type, age, and productive value of project affected fruit tree.
Annual yield capacity of a mature fruit bearing tree multiplied to market price of a fruit (kg/GEL) and multiplied
to the number of years required to grow a new tree to same productivity age.
23
112. Decorative /non fruit bearing perennials: Compensation will be calculated for timber value of decorative
trees and perennials not bearing fruits at current market value and according to type and age of affected tree.
113. Besides, eligible APs will receive additional cash for purchase of seedlings per each project affected tree
including fruit bearing, decorative and timber trees.
114. NOTE: Construction of water supply system does not require any trees to be cut. However several dozen
perennials are standing on the portion of land to be acquired for project purposes to arrange sanitary zone of
the reservoir. Therefore, although these trees will not be logged, the APs will not have access to these perennials.
The loss of access to these perennials will be cash compensated as described above.
115. Annual Crops: Default payment of cash compensation at current market rates for annual crops per entire
area of project affected land parcel. Compensation will be issued even in case the APs have managed to collect
the yield. Crop compensation will be paid to landowners. In case of tenancy agreement, cash compensation will
be paid to owner/tenant based on the specific sharecropping agreements (written/verbal) being made between
these two parties.
116. Community Structures and Public Utilities: If affected, assets will be fully relocated or rehabilitated to meet
their pre-project functions and utilities.
117. Contractor's Temporary Requirements: The civil works contract will require the contractor to be responsible
for the temporary acquisition and reinstatement of all land required outside the road reserve for construction
camps, offices, borrow pits, materials storage sites, materials processing sites, and haul roads. The contractor
will select the land parcels they require and they will be responsible for negotiating agreements directly with
land owners to occupy the land. In the event that a contractor fails to obtain the agreement of a landowner, the
contractor would be required to select an alternative site and negotiate a new agreement. No involuntary
occupation of land for temporary construction purposes would occur. Provision will be made in the civil works
contract for the contractor to be responsible for providing adequate measures to cater for existing traffic while
the construction works are in progress. The contractors shall be required to obtain the approval of the executing
agency for all proposals for traffic management during the construction of the civil works contracts and also they
shall be required to maintain all temporary diversion roads and existing roads used to carry diverted traffic from
the main road.
Additional Rehabilitation Measures
118. The LARP considers additional rehabilitation measures to be provided to AHs that qualify as vulnerable and
severely affected.
119. One-time allowance for vulnerability: In addition to the compensation of lost land and crops, vulnerable
AHs will be provided with additional rehabilitation measures; in particular, one-time allowance set to cash
compensation calculated based on the minimum subsistence monthly income level for the household of five (5)
persons multiplied to 3 months per AH. The amount (1036 GEL per affected household) of compensation are
calculated based on the data retrieved from official website of the National Statistics Office of Georgia –
24
GEOSTAT21. Additionally, the members of vulnerable families will be given priority in employment in project-
related jobs.
120. One-time allowance for severe impact: APs losing more than 10 % of income generating land, in addition
to the compensation of lost land and crops, will be provided with additional rehabilitation measures; in
particular, one-time allowance set to cash compensation calculated based on the minimum subsistence monthly
income level for the household of five (5) persons multiplied to 3 months per AH. The amount (1036 GEL per
severely affected land parcel) of compensation is calculated based on the data retrieved from official website of
the National Statistics Office of Georgia – GEOSTAT22. Additionally, the members of vulnerable families will be
given priority in employment in project-related jobs.
Taxation and Bank Service Fees
121. In no case will the AHs be liable for any taxes and eventual transaction fees; these will be paid by the UWSCG.
Deposit/Escrow Accounts
122. Amount of cash compensation will be deposited on the special account with the UWSCG if during LARP
implementation process any AP is missing, absent, or deceased and issuance of compensation is postponed due
to legal procedures.
Entitlement Matrix
123. The table below describes the Entitlements and additional allowances to compensate all type of income and
assets loss identified in the context of this specific project.
Table 9: Entitlement Matrix
Project
/Affected
Asset
Specification Affected
People
Compensation Entitlements
Permanent
Loss of land
(agricultural
/ non-
agricultural)
All AHs as
owners/legitima
te possessors of
all project
affected land
parcels
independent
from impact
severity
AHs with
registered
/recognizabl
e title
Cash compensation calculated at full
replacement cost at current market
value to be sufficient to purchase
land parcel of equal size, location, soil
productivity /designation to project
affected land parcel.
Method for calculation of full
replacement cost besides the value of
affected asset will also include cost of
preparation of the land to levels
21 http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng. Minimum monthly income subsistence level for the
household of 5 members is 345/30 GEL. In particular: 345.30 X 3= 1035.90 GEL; rounded to 1036 GEL per affected household. 22 Same as above.
25
Project
/Affected
Asset
Specification Affected
People
Compensation Entitlements
similar to those of the affected land.
AHs will be free of taxes, land parcel
sub-division and transaction
registration costs.
The taxes and fee related to
processing transaction registration
will be covered by the Executing
Agency.
All AHs holding
excess (surplus)
land23
AHs who
use more
area then
allocated
under title
documents
Captured land will not be cash
compensated, unless registered in
the NAPR according to the decision of
land legalization commission.
However, any loss of annual crops
and other improvements will be cash
compensated in cash at full market
rate for annual harvest to be paid to
land-user.
Orphan land Any privately
owned land that
will lose previous
designation and
economic
viability as a
result of project
related land
acquisition
All AHs
facing the
risk of
keeping
"Orphan
land"
If proven the loss of economic
viability of remaining portion of land,
AP is eligible to claim full cash
compensation and alienation of the
entire area of such land parcel.
APs interested in full acquisition will
apply to UWSCG (GRC)24. The GRC will
involve local agricultural expert to assess
and determine whether the residual land
is economically viable or not. The
decision of GRC will be provided to AP.
Cash compensation will be calculated
as usual at full replacement cost at
current market value as applicable to
the cases of permanent loss of land
for title holders /legitimate
possessors.
23 Excess (surplus) land refers to the cases when AP uses more area of land than as shown in documents originating land
ownership rights. Such cases will be transferred for the review and approval /rejection of local land legalization commission
prior to updating the registration. 24 If such need arise, UWSCG /GRC may invite agricultural specialist who will assess whether the residual land is or is not economically viable. In
general terms this depends on the size, access, configuration of land parcel and etc.
26
Project
/Affected
Asset
Specification Affected
People
Compensation Entitlements
Agricultural
Sharecroppers
Agricultural
Sharecropp
ers/APs
without
valid
contract
Agricultural sharecroppers will
receive cash compensation in the
amount equal to their share of
harvest at market rates.
Structures Any structure
subject to
demolition for
project purposes
Owners/use
rs of such
structures
(including
squatters)
Cash compensation at replacement
rates for affected structure and other
fixed assets without deduction for
salvageable materials, depreciation,
and transaction costs.
Deteriorated structure: cash
compensation for deteriorated
structure was determined based on
current market value of the salvaged
materials.
Crops
Entire area of all
project affected
land parcels of
agricultural
designation
All AHs
(including
squatters)
Crop compensation in cash at full
market rate for annual harvest to be
paid to land-user or tenant will be
determined based on specific
sharecropping agreements made
between these parties.
Trees Trees affected:
Fruit bearing
perennials
All APs
(including
squatters)
Cash compensation at market value
on the basis of type, age, and
productive value of fruit tree;
Each fruit bearing tree in addition
shall be compensated for purchase of
saplings.
AHs will be eligible to dispose logged
trees themselves. Construction
company ensures free delivery of
timber to the residence of AHs.
Trees affected:
Non-fruit
bearing
perennials
Cash Compensation will be calculated
for timber value of decorative trees
and perennials not bearing fruits. APs
will receive additional cash for
purchase of seedlings per each
project affected tree including fruit
bearing, decorative and timber trees.
Community
Resources
Access shall be maintained or
reinstated;
Rehabilitation/substitution of the
27
Project
/Affected
Asset
Specification Affected
People
Compensation Entitlements
affected structures/utilities (i.e.
bridges, roads, schools, health-
centers, water pipes, irrigation
channels, etc.).
Vulnerable
AHs
AHs below
poverty
line;
disabled
people;
pensioners;
widows;
female
headed
households;
In addition to land and crops
compensation, one-time allowance
set to cash compensation calculated
based on the minimum subsistence
monthly income level for the
household of 5 members multiplied
to 3 months per AH. The amount of
compensation is calculated based on
the data retrieved from official
website of the National Statistics
Office of Georgia – GEOSTAT25.
Besides, the members of vulnerable
families will be given priority in
employment in project-related jobs.
Severe
Impact
Additional
provisions for
severe impacts
(loss of 10% or
more of income
generating land
/assets)
AHs
(titleholders
and/or
without title
but eligible
to claim title
registration,
Leaseholder
,
Squatters
In addition to land and crops
compensation, one-time allowance
set to cash compensation calculated
based on the minimum subsistence
monthly income level for the
household of 5 members multiplied
to 3 months per AH. The amount of
compensation is calculated based on
the data retrieved from official
website of the National Statistics
Office of Georgia – GEOSTAT26.
Besides, the members of severely
impacted households will be given
priority in employment in project-
related jobs.
Temporary
impact
Loss of access to
land parcel
Owners
/Users
Temporary access will be set up by
Construction Company.
Income loss due
to lack of
temporary
Business
units
Temporary access will be set up by
Construction Company.
25 http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng 26 http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng
28
Project
/Affected
Asset
Specification Affected
People
Compensation Entitlements
access road to
the business
activity
Temporary loss
of income
caused by
occupying land
parcels for the
camps and
quarries
Owners/use
rs
During camps' site selection process,
Construction Company should
coordinate with relevant state
agencies and give priority to vacant
lands not used for agricultural
/residential purposes. But in case the
land parcels selected for camps and
quarries will have private land-users,
all losses, and amount of due
compensation shall be determined
according to the principles of
compensation entitlements provided
under this LARP.
Any other
unforeseen
Impacts
As required Any As required, according to the
requirements and principles of SPS
2009 and guided by the approved
LARF and MFF.
29
Chapter 4: Legal-Regulatory Framework
Legislation of Georgia
124. The following laws and Normative Acts regulate land/real property ownership rights, rules and procedures
for land acquisition, and obtaining State ownership right to privately owned land parcels based on the necessary
public needs for infrastructure rehabilitation project purposes.
a. The Constitution of Georgia, August 24, 2995
b. The Law of Georgia on ownership rights to agricultural land, March 22, 1996
c. The Civil Code of Georgia, June 26, 1997
d. The Procedural Civil Code of Georgia, November 14, 1997
e. The Law of Georgian on the Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999
f. Tax Code of Georgia, 2005
g. Labor Coode of Georgia, May 25, 2006
h. The Law of Georgia on Protection of Cultural Heritage, May 8, 2007
i. The Law of Georgia on Public Health, June 27, 2007
j. The Law of Georgia on Declaration private ownership rights to land parcels under possession (use)
of physical and persons and legal persons of private law, July 11, 2007
k. The Law of Georgia on Public Register, December 19, 2008
l. The Law of Georgia on Notary Activity, December 4, 2009
m. The Law of Georgia on State Property, July 21, 2010
n. The Law of Georgian on Entrepreneurs, October 28, 1994
125. Overall, the above listed laws and normative acts consider compensation of resettlement costs at the market
values. Legislation determines the types of loss subject to compensation and define that compensation should
be issued for damaged assets as well as lost income. Pursuant to the legislation consultations and notifications
are important to ensure participatory involvement of project affected persons in the process of project
preparation and implementation.
126. Under the active legislation, during the implementation of resettlement action plan the following
mechanism are to be undertaken:
a. Acquisition of project affected land and assets located within the ROW through the negotiation and
issuance of defined compensation prior to the commencement of civil works;
b. Exercising the right of expropriation based on the Court decision and after issuance of defined
compensation in case the negotiations fail.
Expropriation
127. Expropriation of project affected land and assets takes place only in case if negotiations fail.
30
128. Process of expropriation is undertaken in accordance to the procedures defined under the law and is
implemented on the basis of the order of the Minister of Economy and Sustainable Development of Georgia and
relevant court decision.
129. The order of the Minister defines the case of public need and grants the Expropriator with the right to occupy
the land. The Court defines the State agency, or legal person public/private law to be granted with the right of
expropriation. Court decision shall also contain detailed inventory of property/assets subject to expropriation
and statement on amount of compensation to be paid to a landowner.
130. Project affected land cannot be occupied until the following is being implemented:
a. Court proceeding is accomplished;
b. Relevant communication with project affected persons after the obtainment of Court restriction
c. Compensation amount is deposited on the relevant account27.
ADB Safeguard Policy Statement
131. The Safeguard Policy Statement on Involuntary Resettlement describes common objectives of ADB's
safeguards, lays out policy principles, and outlines the delivery process for ADB's safeguard policy.
132. The objectives of the IR policy are as follows:
a. To avoid involuntary resettlement, wherever possible;
b. To minimize involuntary resettlement by exploring Sub-Project and design alternatives;
c. To enhance, or at least restore, the livelihoods of all displaced persons in real terms, relative to pre-
Sub-Project levels; and
d. To improve the standards of living of the displaced poor and other vulnerable groups.
133. Scope and Triggers: 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.
134. ADB Policy Principles:
1. 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.
2. 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
27 Treasury escrow account, UWSCG project account or bank account of project affected person.
31
resettlement programs. 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. Establish a grievance
redress e ha is to re ei e a d fa ilitate resolutio of the affe ted perso s’ o er s. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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 non-land assets.
8. Prepare a resettle e t pla ela orati g o displa ed perso s’ e title e ts, the i o e a d li elihood
restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and
time-bound implementation schedule.
9. 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.
32
10. Conceive and execute involuntary resettlement as part of a development project or program. Include
the full osts of resettle e t i the prese tatio of proje t’s osts a d e efits. For a proje t ith significant involuntary resettlement impacts, consider implementing the involuntary resettlement
component of the project as a stand-alone operation.
11. Pay compensation and provide other resettlement entitlements before physical or economic
displacement. Implement the resettlement plan under close supervision throughout project
implementation.
12. 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.
LARP Principles Adopted for the Project
135. The UWSCG has prepared draft LARP in compliance with the laws and regulations of Georgia and ADB SPS
to serve as the tool to ensure that project implementation process meets the core principles of involuntary
resettlement as listed below:
a. Land acquisition, and other involuntary resettlement impacts will be avoided or minimized exploring
all viable alternative project designs;
b. Where unavoidable, a time-bound RP will be prepared and AHs will be assisted in improving or at
least regaining their pre-project standard of living;
c. Meaningful Consultation with AHs on compensation, disclosure of resettlement information to AHs,
and participation of AHs in planning and implementing sub-projects will be ensured;
d. Vulnerable and severely affected AHs will be provided special assistance;
e. Non-titled AHs (informal dwellers or squatters) will receive a livelihood allowance in lieu of land
compensation and will be fully compensated for losses other than land;
f. Legalizable AHs will be legalized and fully compensated for land losses;
g. Provision of income restoration and rehabilitation to all AHs;
h. The RP will be disclosed to the AHs in the local language;
i. Payment of compensation, and rehabilitation measures will be completed prior to the contractor
taking physical acquisition of the land and prior to the commencement of any construction activities
on a particular package; and
j. Establishment of appropriate grievance redress mechanism to solve AHs grievance if it occurs.
k. Internal monitoring and disclosure of reports.28
136. Notice to contractors cannot be given until the UWSCG officially has confirmed in writing, stating that:
Payment has been fully disbursed to the displaced persons and rehabilitation measures are in place; Already-
compensated/assisted displaced persons have cleared the area in a timely manner; and area is free from any
encumbrances.
28 Please see for details the Chapter 8.Monitoring and Reporting Requirements
33
Measures to bridge the gaps between country legislation and ADB SPS 2009
137. The Legal Matrix given in table 10 describes the differences between the legislation of Georgia and ADB SPS
2009 and describes the mitigation measures suggested to bridge these gaps.
Table 10. Legal Gap Analyses and Mitigation Measures
Country Legislation ADB SPS 2009 Mitigation measures
suggested for the proposed
project
Only the owners of registered
project affected structures are
eligible to cash compensation
All owners/possessors of
project affected structures are
eligible to full compensation
The only condemned structure
to be affected by the proposed
project will be valued by
Independent Licensed valuator
and relevant compensation
issued as foreseen in the
approved LARP.
Only the owners of registered
project affected land parcels
are eligible to cash
compensation
Lack of registered title does not
deprive project affected
persons right to loss
compensation
Land titles are already being
updated and prior to land
acquisition all APs will free of
charge receive updated titles
prior to commencement LARP
implementation.
Loss of annual crops to be
compensated only to the
owners of registered project
affected land parcels
Loss of annual crops o be
compensated to APs
notwithstanding the title
registration status
Same as above.
No legal requirement on
compensation loss of
salary/wages/profit as a result
of business stoppage
Business
temporary/permanent
stoppage subject to
compensation to cover the loss
of salary/wages/profit
No business stoppage is
expected within the
framework of the proposed
project.
Law does not regulate the
activity of Grievance Redress
Committee
Grievances to be resolved
informally, through Grievance
Redress Committees, at the
level of local self-government
units, NGOs and/or through
participatory involvement of
local CBOs
Grievance Redress Committee
and two-tier Grievance Redress
Mechanism is already being
established under the UWSCG
to handle grievances,
complaints of APs and of any
third parties and run the
Grievance Log for monitoring
and supervision purposes.
Law does not specify the
requirement on provision of
preliminary information of APs
on compensation eligibility
conditions
APs need to be informed on
compensation eligibility for
project affected assets prior to
appraisal
APs were provided information
on valuation methodology to
determine compensation unit
rates per each type of assets,
income loss; besides, APs were
present and actively involved in
34
Country Legislation ADB SPS 2009 Mitigation measures
suggested for the proposed
project
the process of inventory of
project affected assets.
Law does not require provision
of relocation costs or
additional rehabilitation
measures income/livelihood
restoration for vulnerable and
severely affected persons
Resettled APs need to be
provided with rehabilitation
measures and assisted in the
process of income/livelihood
restoration
Within the framework of the
proposed project all vulnerable
and severely affected persons
will be provided with additional
one-time allowances; besides,
capable household members
will be given priority in
employment in project related
jobs.
Georgian legislation does not
require development of
Resettlement Plan
Prior to issuance of
compensations Resettlement
Plan has to be prepared and
endorsed (No Objection issued
by ADB & Client)
Final LARP will be reviewed and
approved (No Objection
issued) by the ADB and GOG,
prior to commencement of
LARP implementation, i.e. land
acquisition and issuance of
cash compensation to APs.
Georgian legislation does not
require holding Official Public
Consultations
Ongoing public communication
and encouragement of
participatory involvement of
APs in project planning,
implementation and
monitoring is the integral part
of the ADB SPS 2009
To achieve participatory
involvement of APs and raising
awareness of rights,
responsibilities of APs, project
objectives, outcome and
output, including land
acquisition and compensation
procedures number of public
orientation meetings have
been hold. APs have been
active involved in each activity
conducted during LARP
preparation, review, public
disclosure and acceptance of
APs’ feed a k to e incorporated in the Final LARP
submitted for ADB/GOG
review and approval.
35
Chapter 5: Institutional Arrangements
138. The Chapter describes the role, authority, and responsibility of state agencies involved in the process of LARP
preparation and implementation. These agencies are: Executing Agency - United Water Supply Company of
Georgia of the Ministry of Regional Development and Infrastructure of Georgia, Municipality Land Acquisition
and Resettlement Office (MLARO), NAPR, Ministry of Regional Development and Infrastructure, Ministry of
Finance, ADB, NGOs, and consultants.
139. Below are described their roles and responsibilities with regard to the proposed project:
140. UWSCG: Carries responsibility to for all LARP related issues on local and National levels. Besides, the UWSCG
is in charge to:
a. Hire and supervise consultant involved in preparation LARP based on the detailed design;
b. Formation of MLARO in relevant Municipality;
c. Coordination all LARP related activities;
d. Presenting all necessary documents to ensure rapid allocation of resettlement budget and undertaking
further payment of defined compensation amounts to project affected persons;
e. Provision of internal monitoring through supervision consultant
f. Deploying independent monitoring agency, in case such is requested by the ADB
141. MLARO: Involvement in LARP preparation and implementation and coordination of LARP implementation
related activities on Municipality level. UWSCG will join the MLARO composition, together with the following
candidates:
a. Representative of local Municipality
b. UWSCG representative responsible for LARP activities
c. UWSCG local representative
d. Representative of project affected community (population
142. Supervision Consultant: Supervision Agency responsible for construction supervision activities, to observe
and monitor completion of all compensation/rehabilitation payment procedures prior to construction
contractor entering the site.
143. Ministry of Finance: Allocates compensation and rehabilitation funds based on the submitted land
acquisition and resettlement plan and relevant budget.
144. UWSCG will supervise the economic displacement of APs, monitor construction and reinstatement process
with support from the supervision consultant. The institutional arrangement for the Project implementation is
presented in the following figure.
36
Chapter 6: Public Consultations and LARP Disclosure
Public Consultation Meetings
145. The public consultation meetings have been conducted since the early phase of LARP preparation. The public
meetings were open to any interested person including population from project affected village, representatives
of local government, municipality of Sachkhere and Chiatura, and NGOs were invited to attend the meetings
too.
Table 11. Brief review of public orientation meetings held during LARP development period
No Date Location Lead No of
Attende
es
Target
Audience
Topics Discussed Meeting
outcome
1 April
7,
2017
Chikha of
Sachkhere
Municipalit
y
UWSCG,
PIU
65 Sachkhere
Municipality
,
Project
Stakeholder
s
Introduction of project
design, output and outcome
Participatory
involvement and
support of the
local
government
2 April
7,
2017
Chiatura UWSCG,
PIU
12 Chiatura
Municipality
,
Project
Stakeholder
s
Introduction of project
design, output and outcome
3 April
16,
2017
Chikha PIU, LARP
Consultan
t
36 Chikha
residents,
potential
APs
Scope and objectives of the
project; expected impact on
APs, importance of surveys
required for LARP
preparation, compensation
eligibility and entitlements
Potential APs
agreed to
participate in
census, SES and
land surveys 4 April
17,
2017
Chikha PIU, LARP
Consultan
t
28 Chikha
residents,
potential
APs
5 May
4,
2017
Chikha PIU, LARP
Consultan
t
32 APs,
Representati
ves of
Chikha
Municipality
Importance of inventory,
demarcation and land
surveys of project affected
parcels in presence of APs
Participatory
involvement of
APs in inventory,
demarcation and
surveys achieved
and scheduled in
agreement with
APs
6 May
5,
2017
Chikha PIU, LARP
Consultan
t
56 APs,
Representati
ves of
Chikha
Municipality
7 June
22,
2017
Chikha PIU, LARP
Consultan
t
70
APs Displaying the Cadaster
Survey Map showing the
actual results of
demarcation/land surveys
and reveled discrepancies
requiring to be corrected in
the records of NAPR.
APs agreed to
accept technical
assistance
offered from
UWSCG and
submit new
survey cadaster
maps free-of
charge provided
to APs together
37
with application
for update
registration data
at the NAPR.
146. All participants were provided with information on pending project and introduced to the safeguards
principles of ADB SPS 2009.
LARP Public Disclosure
147. The Final Draft LARP has been publicized during the LARP Disclosure period for review and comments by
project stakeholders. The draft LARP Public Disclosure meeting was held on January 16, 2018. The Notification
on the location, time and date of Public Disclosure was provided to APs together with the copy of Information
Pamphlet through the local Municipality personnel. Besides, the relevant notifications were displayed on the
Information Desk in the lobby of the Municipality buildings in Sachkhere and village Chikha. The Notification
were made early enough to enhance attendance of any interested person, APs, government agencies and NGOs.
148. The final version of the LARP in English will be disclosed on ADB website29. Georgian versions will be
uploaded on UWSCG website30 and hard copies be made available in Sachkhere and Chikha Municipalities.
149. The Information Booklet summarizes essence of cut-off date, compensation eligibility criteria, brief review
of valuation methodology and compensation entitlements, project schedules and implementation features, and
the rights and responsibilities of APs and other project stakeholders, grievance redress mechanism and
monitoring patterns.
150. The English version of the Information Booklet is presented in the Annex 5 of this LARP.
29 www.adb.org 30 www.water.gov.ge
38
Chapter 7: Grievance Redress Mechanism
Objectives
151. The Grievance Redress Mechanism (GRM) is a process through which the affected people may voice and
seek resolution of concerns throughout the entire project cycle. In this project, the grievance redress mechanism
is in place by which the affected people will be fully informed of their rights and procedures for addressing
complaints whether verbally or in writing during consultation, DMS, and at the time of receiving compensation
and resettlement assistance.
152. The UWSCG has functioning GRC and mechanism for grievance redress established under the UWSCG Order
No 12231, dated April 30, 2014 developed in compliance with the Article 8, paragraph 7 of the UWSCG Charter.
153. Grievance Redress Commission (GRC) is being established, fully functioning and provided with required
administrative support by PIU through the entire project circle including the LARP implementation, construction
and operations period.
154. The role and responsibility of the GRC is to accept claims and complaints, assess its validity, determine the
scope of eventual impacts, and timely resolve the issue, including the claims regarding the compensation and
maintain grievance redress mechanism as flexible and efficient mechanism to address and resolve the claims as
raised during project planning and implementation period.
Mechanism exercised to address grievances within ADB funded projects
155. The UWSCG has establish three-phased (three-tiered) Grievance Redress Mechanism to be applied during
processing the grievances submitted by project affected persons (hereinafter as named in the i terested parties duri g the i ple e tatio for ADB fu ded proje ts.
156. 1st Phase: Subscribers Service Centre32 of the UWSCG Local Office will accept oral and written
claims/complaints submitted by interested person and review within two-week time period.
157. The authorized representative of UWSCG local Service Center of UWSCG is authorized obliged to review
and register a complaint according to the format approved in Annex 1 of the Order No 122 and in order to
resolve the problem raised in a complaint coordinate with the following persons:
a. Head of the local Service Center (Director/Manager);
b. Representative of the Department for International Procurement and Relationship with Donors;
c. Representative of the Department for Environment Protection, Resettlement and Permits;
d. Representative of Construction Contractor
e. Representative of Supervision Company.
158. 2nd Phase: in case the complaint is not resolved at the 1st Phase, complainant, seeking timely and efficient
31 UWSCG Order No 122 on Mechanism for Redress Grievances within the Framework of ADB funded projects. 32 UWSCG runs 50 Service center in various Municipalities of Georgia.
39
review and resolution of the complaint, is eligible to address the Grievance Redress Commission.
Composition of the Grievance Redress Commission:
159. The Grievance Redress Commission33 (GRC) is formed under the paragraph 5 of Order No. 122 with
following composition:
a. Representative of local municipality - Chairman of the Commission
b. Manager/Director of UWSCG Service Centre
c. Representative of Investment Project Management Department of UWSCG
d. Representative of local respected NGO
e. Female representative of persons affected by the sub-project
f. Informal representative identified by the population affected by the sub-project34
160. The CRC shall meet ad-hoc to review any complaint not resolved at the 1st Phase. The GRC shall review and
resolve the issue raised in the compliant within two-week time period from the date of grievance registration.
161. 3rd Phase: Interested person is eligible to apply to ADB to the address provided below, in case the GRC fails
to resolve problem raised in the complaint and grievance still remains unresolved after two-week time period
since its official submission.
Asian Development Bank Georgia Mission
1, G. Tabidze St; Tbilisi Georgia
Tel: + 9995 32 225 06 19
162. IMPO (Investment Program Management Office) will ensure provision of relevant trainings35 to designated
staff of Local Service Centers of USWCG on how to proceed and address grievances. Representative of the local
service center responsible for GRM has to be acquainted with Environmental Management Plan and mitigation
measures to identify what type of Claims has to be considered under GRM. In addition, Grievance Log36 and
enough supply of blank Grievance Forms37 will also be provided.
163. Responsible person assigned at the local service center will register grievances in the Grievance Log.
Temporary offices located at the construction sites also keep the Grievance Log to allow aggrieved person file
the claim right on spot.
164. Contact Details (telephone numbers and full names of persons in charge) and the daily hours for receiving
phone calls of APs and any interested person is included in the Information Booklet and also displayed on Public
Information Boards in the Local Service Centers and Municipalities within project affected area.
33 In each city there is one Commission and members of the Commission do not change in accordance with the content of the
complaint. 34 A representative of the affected community 35 UWSCG ensures that on-job trainings are provided to every new employee of local service center to be responsible for GRM
operations. These on-job trainings are provided by USIIP and Supervision Company environmental specialists soon after hiring
of a new employee. 36 Sample attached in Annex 4. 37 Sample attached in Annex 3.
40
Grievance Resolution Process Cycle
165. The complaints and grievances from the APs will be addressed through the process described below:
Phase Action
Level
Process Timeline
1st
Phase
UWSCG
Local
Service
Center
The designated person at the UWSCG Local Service
Center will first give hearing to the aggrieved person,
then register the grievance and assign registration
number. Then he/she will inform about the grievance
upper level person to the local service center
responsible for grievances, and circulating the
document exchange intranet the grievance is provided
to UWSCG Department of International Procurement
and Donors Relationship, Department of Environment
Protection, resettlement and Permits; besides he/she
contacts the representatives of the Construction
Contractor and Construction Supervision Company.
2 weeks
2nd
Phase
UWSCG
GRC
In case the complaint is not resolved on the 1st Phase,
AP (complainant), seeking timely and efficient review
and resolution of the complaint, is eligible to address
the Grievance Redress Commission.
After receiving written complaints of AP, the GRC will
review and prepare a Case File for GRG hearing and
resolution. A formal hearing with GRC will be scheduled
in agreement with aggrieved AP. Liaison persons
assigned by the PIU will keep communication with AP to
schedule meetings, advise AP submission of additional
supporting documents or proves to support his/her
claim, collect such documents presented by AP and
present to the GRC during formal hearing. Besides, the
support includes assistance in preparation written
complaint to GRC, if required.
The decisions from majority of the members will be
considered final from the GRC and will be issued to AP
after signed by GRC members. The case record will be
updated and the decision will be communicated to the
complainant within 14 days of submission.
2 weeks
3rd
Phase
ADB
Georgian
Mission
In case the GRC fails to resolve problem raised in the
complaint and grievance still remains unresolved after
two-week time period since its official submission, the
interested person is eligible to apply to Asian
Development Bank Georgia Mission.
41
166. Any physical and legal person, any appellant can communicate his/her concern to the Court at any stage of
grievance redress. The GRC will not influence or restrict the AP from applying to court for legal remedies.
167. If the complaint is found invalid, the GRC formulates a response and sends a written letter to the
complainant, explaining the reasons of rejection. The complainant can appeal the decision and bring the case to
the local Court.
42
Chapter 8: Monitoring and Reporting Requirements
168. The Project will establish systems for internal monitoring and evaluation. The main purpose of the
monitoring and evaluation programme is to ensure that resettlement and acquisition of land and properties
have been implemented in accordance with the pro isio of ADB’s “P“ 2009, the la s of Georgia a d ith this LARP.
169. The objectives of the monitoring and evaluation programme are:
a. To ensure that the standard of living of AHs is restored or improved;
b. To monitor whether or not the time lines are being met;
c. To identify problems or potential problems;
d. To identify immediate/rapid response methods to mitigate problems or potential problems; and
e. To ensure that the GRM is functioning and grievances, if any, are being addressed timely and
effectively.
Internal Monitoring
170. The UWSCG will conduct monitoring and assessment of the given project.
171. To achieve the main purpose and objectives of internal monitoring the UWSCG will ensure to provide
significant attention to the following aspects of project implementation process:
a. Frequency and quality of information campaign and consultations hold for project affected people
b. Status of land acquisition and payments of compensations for project affected assets
c. Status of provision of additional rehabilitation and mitigation measures
d. Close monitoring of complaints and grievance management.
Reporting Requirements
172. The results of internal monitoring during LARP implementation as well as project related construction
activities will be communicated with UWSCG, Ministry of Infrastructure and ADB through the quarterly project
implementation reports.
173. The information on possible social/economic impact incurred during earth works and project construction
activities will be collected directly from the field by the Supervision Consultant and will be reported through the
project Coordinator at the UWSCG HQ on a monthly basis.
174. These monthly reports will then be quarterly consolidated by UWSCG and submitted to Ministry of
Infrastructure and ADB.
43
Chapter 9: LARP Implementation Schedule
175. The LARP preparation and implementation schedule is described in Table 9 below.
Table 12. Implementation Schedule for May, 2017 – March, 2018
Activities/ Months May June July Aug Sept Oct Nov Dec Jan Feb Mar
2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018
Preparation of Initial LARP
Public Orientation Meetings
Enumeration, demarcation and
survey of project affected parcels
Census, SES, Inventory
Title Search
Deploying Valuator /Inventory &
appraisal
Data analyses
Developments of initial LARP &
tentative budget
UWSCG & ADB review, provision
comments to initial draft LARP &
Budget
Incorporating comments &
announcement of LARP Public
Disclosure
UWSCG & ADB No Objection for
LARP implementation
commencement
LARP Implementation - Land
Acquisition & Issuance of
Compensations
Technical Assistance to APs
(registration updates, legal
consultancy)
Negotiations & Cash Compensation
of AHs
Processing Sales Agreements &
Issuance of Compensations
Internal Monitoring, .Resolving
outstanding issues & grievances
Construction Contract award
44
Chapter 10: Compensation Unit Rates and LARP Budget
176. The independent licensed valuator has been deployed to prepare Valuation Report and determine compensation unit rates
per each type of affected asset and income loss.
177. The Valuation Report describes the methods used for determination of compensation unit rates as replacement cost at
current market values. The Valuation Report developed in Georgian language is being presented to the UWSCG and is
readily available upon request of interested APs.
178. Besides, the description of approaches exercised during determination compensation unit rates are summarized in the
Information Booklet specifically designated for APs. The Information Booklets will be individually distributed to AH.
Together with Information Booklets, they will received One-page Description document prepared separately for each
project affected land parcel and reflecting the breakdown of cash compensation package individually handed to the AP.
179. The unit rates for assets (land, structure, perennials) and income loss (annual crops) are defined under the Valuation Report
prepared by the independent licensed valuator. Whereas, the amount of one-time allowances, in addition allocated to
severely affected and vulnerable APs, are defined based on the principles of RPF, ADB SPS 2009, and the good practice
examples.
180. Below is presented the summary table of LARP budget calculated based on suggested compensation unit rates.
181. NOTE: The Detailed Compensation Package provides the breakdown of compensation package per types of impact and
compensation items separately for each project affected land parcel. The information presented in this table is designed
for official use only and does not subject to public disclosure38.
Table 13: Budget for Cash Compensation for AHs and LARP Implementation
# Compensation Item Quantity Unit Measure Unit Rate (GEL) Total per Item
(GEL)
1 Agricultural land 38,954 sq.m. 12 467,448
2 Non-agricultural Land 400 sq.m. 12 4,800
3 Sub-total of land replacement 39,354 Sq.m. 12 472,248
4 Replacement cost for deteriorated
structure (100 sq.m.) 1 sq.m. 290 290
5 Sub-total of structure 100 Sq.m. N/A 290
6 Replacement value for fruit bearing
perennials (sour plu , i.e. Tke ali 4 number 143 572
7 Replacement value for hazel nut bushes 5 number 130 650
8 Timber value of project affected perennial
(Hornbeam) 2 number 130 260
9 Purchase of best quality saplings 11 number 15 165
38 Full names, contact phones numbers, and detailed cash compensation package (per AP and compensation items) is provided
as a separate document for internal use during project implementation, monitoring, and assessment process. To protect the
confidentiality of personal information of APs the document will not be subject to public disclosure.
45
# Compensation Item Quantity Unit Measure Unit Rate (GEL) Total per Item
(GEL)
10 Sub-total for compensation for affected
perennials 22 number N/A 1,647
11 Annual Crops (corn) 22,067 sq.m. 0.4 8,827
12 Annual Crops (wheat) 39,948 sq.m. 0.4 15,979
13 Annual Crops (corn and beans) 12,720 sq.m. 0.55 6,996
14 Annual Crops (pumpkin) 65 number 2 130
15 Perennial crops (Lucerne) 1,800 sq.m. 0.14 252
16 Annual crops (hay) 60,064 sq.m. 0.12 7,208
17 Sub-total of crops compensation N/A Sq.m. N/A 39,392
18 Vulnerability 13 AHs 1036 13,468
19 Severe Impact 74 Parcels 1036 76,664
20 Sub-total of one-time allowances N/A 90,132
21 Total of Cash Compensation 603,709
22 Contingency (20%) 120,742
23 TOTAL of LARP Compensations (GEL)
724,450
Additional LARP Implementation Costs
24 Registration of subdivided land parcels 61 number 102 6,222
25 Registration of Sales Transaction 77 number 51 3,927
26 Sub-total of registration costs 10,149
27 Contingencies during registration (20 %)
2,030
28
Income tax (20 %) to be added to
Compensation Amount excluding the
price for land acquisition 39
26,292
29 Total Implementation costs 38,471
30 SUM of Total Expenses GEL 762,921
31 SUM of Total Expenses in USD
281,521 At Exchange Rate 1 USD -2.71 GEL
39 mount of land acquisition is deducted from the total Compensation Amount as sales transactions will not subject to Income Tax
46
Appendixes
47
Annex 1. Review of Conducted Public Consultations
Table 14. Questions raised by the APs during public orientation meetings and the answers provided
# Name of AP Question raised Answer provided by LARP Consultant and UWSCG
Resettlement Team
1 This question
was asked by
many APs
When is expected the
commencement of
Construction
activities?
Civil works and construction activities will start after the
Construction Contractor and Supervision Company are
selected through International tender and the relevant
contracts are awarded.
2 This question
was asked by
many APs
How long will the
construction process
last?
Tentatively the construction process will last a year and a
half, more specifically the total of 540 calendar days.
3 This question
was asked by
many APs
Will there be any job
opportunity for local
residents?
According to the proven practice, construction
companies are keen to hire local people with relevant
skills and work experience.
Besides, the LARP will recommend that family members
of severely affected and vulnerable AHs to be given
priority in employment in project-related jobs.
4 Mrs. Izolda
Zabakhidze
Mr. Vazha
Tsukhishvili
How will be
determined
compensation
amount?
The Licensed Appraiser will evaluate the full market value
of your land parcels in accordance to the relevant
legislation of Georgia and International Valuation
Standards and in compliance with the ADB Safeguards
Policy Statement 2009. The market value will be based on
the comparison analyses of current market data; in
particular the most recent sales prices of arable
agricultural land parcels located in vicinity of project site.
No land acquisition process will start until the Draft LARP
is publicly disclosed, compensation entitlements
introduced to you and your feedback, comments
obtained and considered in the FINAL LARP.
5 Mrs. Lia
Lominashvili
I need to buy two flats
for my student
children; will I be able
to buy a flat in Tbilisi
with the
compensation
amount issued for
our land parcels?
The Licensed Appraiser will evaluate the full market value
of your land parcels in accordance to the relevant
legislation of Georgia and International Valuation
Standards and in compliance with the ADB Safeguards
Policy Statement 2009. The market value will be based on
the comparison analyses of current market data; in
particular the most recent sales prices of arable
agricultural land parcels located in vicinity of project site.
In any case, as soon as the Draft LARP and Budget is
prepared official disclosure will take place. The date, time
and place of Public Disclosure meeting will be notified to
each of you, so that you attend, get introduced to the
compensation entitlements, valuation methodology, unit
rates for each type of impact and composition of cash
Compensation package.
Anyone of you will be invited to participate in discussion,
comments and suggestions. Your position will be taken
48
# Name of AP Question raised Answer provided by LARP Consultant and UWSCG
Resettlement Team
into close consideration and if reasonable relevant
amendments will be made to the Final LARP, which will
be made publicly available prior to commencement of
LARP implementation.
6 Mr. Ramaz
Tsukishvili
Our land parcels are
all similar, used for
growing annual
crops; We suppose
that market value of
these parcels should
be similar, meaning
that unit rate per
square meter of land
will be the same for
all, but price will
differ because of the
square meter of a
land parcel.
Thank you for correct statement. Land parcels located
within the project ROW are homogeneous; They are of
similar designation in terms of the land use capacity,
productivity, accessibility and location. Therefore, we
also expect that Licensed Valuator will follow similar
approach and determine one unit rate for land. However,
annual crops, will be evaluated separately, according to
the type of crops each of you grow; in addition any
perennials (although only three of you have trees
standing on your land parcel) will be evaluated at full
replacement cost and cash compensated will be paid in
addition to land and annuals crops compensation.
7 Mr. Pridon
Tsukhishvili
During and after
construction period
how will we get to our
land parcels, we
mean the access road
on foot and by car?
Prior to any civil works or construction activities the
Construction Company will arrange access road for
vehicles to allow you harvest the crops; besides, the
existing pedestrian access will also be maintained, with
slight detour to avoid the boundaries of project
catchment boundaries, so that you are capable to walk to
your parcels for cultivation purposes as well.
8 Mr. Giorgi
Nozadze
The area for the
access road will be
allocated from the
land the UWSCG will
acquire from us, or
we will have to
release extra portion
of land to organize
access road to the
remaining portion of
land parcels after
land acquisition is
accomplished?
The UWSCG will allocate sufficient area/territory to
organize access road, both for vehicles and walking path
for pedestrians out of the land acquired from you for
project purposes.
You will not have to release any extra land from the
remaining portion of land for access road purposes.
Access road will be organized by Construction Company
and Supervised by Construction Supervision and UWSCG.
9 Gela Katsitadze What if our crops we
will grow next year on
the remaining portion
of land parcel is
damaged during
construction
process?
If such damage is incurred during the construction period,
a landowner is encouraged to take advantage of
grievance redress mechanism and visit UWSCG local
service center to register the grievance.
The claim will be revised, on spot examination
undertaken and relevant compensation issued to
reimburse the loss incurred by damage caused during
construction process.
Amount of compensation will be determined according to
the principles of compensation entitlements provided
under the approved LARP for the proposed project.
49
# Name of AP Question raised Answer provided by LARP Consultant and UWSCG
Resettlement Team
10 Mr. Zaza
Tsukhishvili
Mrs. Zina
Chighladze
Will we be able to
harvest the crops
prior to
commencement of
construction
activities?
Most likely you will have sufficient time to collect your
yield prior to commencement of construction activities.
In any case, the LARP will consider one year cash
compensation for annual crops according to the entire
area of project affected land parcels.
50
Annex 2. Minutes of LARP Disclosure Meeting
Minutes of the Public Disclosure Meeting
Land Acquisition and Resettlement Plan prepared for Chiatura Water Supply System Construction financed under the
Urban Service Improvement Program (USIIP Tranche 6)
Date: January 16, 2018
Location: Meeting Hall of Sachkhere Municipality
Participants:
Zaza Sikharulidze – Deputy Director for Technical Issues, UWSCG
Maka Goderdzishvili - Head of the Environment Protection, Resettlement and Permits, Lela Shatirishvili - Resettlement
Consultant for ADB funded Chiatura Water Supply System Construction Project
Beniamin Palavandishvili – Mayor of Sachkhere Municipality
Paata Nadiradze - Mayor of Chiatura Municipality
Levan Ivanashvili - Head of Sakrebulo at Sachkhere Municipality
On January 16, 2018 an official Public Disclosure Meeting was held in Sachkhere Municipality (Meeting Hall) on the Final Draft
LARP of Chiatura Water Supply System Construction financed under the Urban Service Improvement Program (USIIP Tranche 6).
The Public Disclosure Meeting was attended by representatives of UWSCG, Municipality and Sakrebulo of Chiatura and
Sachkhere, ADB Georgia Mission, construction supervision company Hill International Temelsu J.V, independent licensed
valuator and project affected persons.
Mr. Zaza Sikharulidze, Deputy Technical Director at UWSCG, and the Mayors of Chiatura and Sachkhere municipalities opened
the meeting. The opening speech was followed by Mr. Zaza Sikharulidze, who briefed the audience on the objectives of Chiatura
Water Supply Construction project and its importance for the population of Chiatura city.
Maka Goderdzishvili, Head of Environment Protection, Resettlement and Permits of UWSCG introduced Lela Shatirishvili, ADB
Resettlement Consultant for Chiatura Water Supply Construction Project.
Lela Shatirishvili made a presentation in power point and briefly described major aspects and objectives of Chiatura Water
Supply System Construction Project LARP prepared in compliance with ADB SPS 2009, LARF and active legislation of Georgia.
She described the activities undertaken during LARP preparation and highlighted their importance to develop fair compensation
package for each and every project affected household. She also touched upon the method of calculation of compensation unit
rates for annual crops, perennials and replacement saplings; spoke about additional one-time allowance allocated for vulnerable
households and owners of severely affected land parcels.
The presenter briefly reviewed valuation methodology, calculation of replacement value at market prices and the composition
of the compensation package. Additionally, she once again explained the importance of the cut-off date, June 22, 2017 as
defined for the given project; touched on the legislative instruments of country active legislation as used in general practice
during implementation of land acquisition and resettlement projects.
At the end of the presentation, reference was made to the Grievance Redress Mechanism and Grievance Redress Commission
operating within the company and being available for any interested person.
At the completion of presentation, Information Booklets were distributed to every AP.
51
After the completion of presentation, the panel opened a question-answer session. (Annex 1).
During the question-answer session, two project affected persons, Lia Lominashvili and Liza Mosiashvili, at first expressed
discontent with the land price. Maka Goderdzisvili, the Head of Environment Protection, Resettlement and Permits invited Lia
Lominashvili to have a closer view at the drawi g of ROW displa ed i the Meeti g Hall. After the AP’s prior o se t, Ms. Goderdzishvili once again publicly explained the breakdown of full composition package of the given land parcel. Ms.
Goderdzishvili clearly showed that aside to land compensation, all other types of project impact to this specific land parcel, such
as loss of annual crops and severe impact to the land parcel were calculated separately and counted into the full compensation
package.
After additional discussion on the composition of cash compensation package, project affected persons expressed that full
compensation package including land compensation unit rate-12 GEL per square meter was satisfactory.
In the closing phase, the UWSCG once again voiced that the company will put all efforts to ensure LARP implementation
procedures were held smoothly through meaningful negotiations with APs.
The official Public Meeting was then closed.
52
Annex 1
N
Question asked by
Question
Answer
1 Demur Tsukhishvili What is price identified for land acquisition, i.e. what will
be the price on one square meter of land?
Zaza Sikharulizde: Land compensation has been determined
according to the location, designation and productivity and
based on the current market price comparison approach.
Considering that project affected land parcels located is the
mail source of income for local population, during evaluation
the upper limit of price range was defined, that is 12 GEL per
one square meter of land.
2 Demur Tsukhishvili
Will any other compensation issued to the owners of land
parcels not cultivated by the moment of inventory?
Zaza Sikharulidze: As described in the LARP prepared by
UWSCG owners of project affected land parcels that were not
cultivated by the moment of inventory will receive cash
compensation for hey calculated according to the entire area of
the land parcel.
3 Imeda Chitadze This land parcels are major source of income for local
population, what should we do now?
Maka Goderdzishvili:
UWSCG took into consideration that land parcel subject to
acquistion are main source of income for local population.
Therefore, project impact to land parcels has been minimized.
Larger portion of land will still remain under private ownership
and will maintain pre-project designation and value.
4 Lia Lominashvili Population did not expect such a low price? According to
what were the land parcels evaluated?
Mindia Tabaghua: In general, land market value is determined
according to the market price comparison approach; i.e.
through research and analyses of the most recent sales prices of
land parcels of similar designation, location and ect.
In addition, we studied the listings, obtained the information
of recent transactions and conducted analyses of sales prices.
For the given project we studied land sales prices at the local
market. Besides we took into consideration that in real terms,
often pushed by some circumstances, potential sellers agree to
lower sales price. In addition, we obtained various listing
announcements and information on auctions. As a result of
data analyses and price comparison approach
53
N
Question asked by
Question
Answer
It was determined that 12 GEL per sq.m. is the most optimal
value for land and will be fair replacement value for project
affected land parcels.
5 Liza Mosiashvili Will there be any access road to get to the land parcels?
Maka Goderdzishvili: UWSCG will ensure to organize access
road to the land parcels
54
40
40 For public meeting, see the following link: http://water.gov.ge/news/full/1337
55
56
57
58
59
60
61
Annex 3. Grievance Form
Grievance Form
Section of Complainant:
Full Name:
_________________________________
_________________________________
Mailing/Permanent Residence Address:
Village: ---------------------------------------------
Municipality: -------------------------------------
Preferred option of communication: Mark
with X
Response mailed to:
______________________________
Face-to-face meeting in GR Focal Point
______________________________
Contacts
Mobile: ------------------------------------------------
Landline: ------------------------------------------------
E-mail: ------------------------------------------------
Language for Communication (mark with X) Georgian
Other_____________________ (please specify)
Complain submission date: Date of hearing:
Please, describe the reason of your discontent or claim in details. Use extra pages if needed.
Present copies of the relevant documents, if available
62
Complainant
Full Name:___________________________
Signature: ___________________________
Date: _______________________________
Received by:
Full Name:________________________
Signature:__________________________
Date: ____________________________
Annex 4. Sample of the Grievance Log
Grievance Log
No Date /
Location
Name of
Complainant
Contact Details
Details of Complaint
Investigation / Mitigation
Action
Resolution
Status*
63
*Open or Closed (If closed include date)
Filed by PIU Environment Specialist::________________________________________________ Date:___________________________
64
Annex 5. Information Booklet
Information Booklet For Land Acquisition and Resettlement Plan
Of
Chiatura Water Supply System Construction Project GEO: CHI-01
Dear Reader,
This Information Booklet is developed for you to share the information about the Project for Construction and Operation of Chiatura Water Supply System. This public
document briefs the important activities defined in the Land Acquisition and Resettlement Plan (LARP) prepared in compliance with the legislation of Georgia and the
guidelines of the Social Performance Statement of the Asian Development Bank (ADB SPS 2009).
Project Overview and Scope of Impact
Chiatura Water Supply System Construction Project41 is implemented within the framework of Urban Service Improvement Investment Program (USIIP Tranche 6),
financed by the government of Georgia and Asian Development Bank. Project Executing Agency is United Water Service Company of Georgia LLC.
The results of hydrological investigation conducted during preparation of Chiatura Water Supply System rehabilitation design, confirmed that the most suitable area
for drilling the exploration boreholes for Chiatura water supply is the studied area located parallel to the river Kvirila on the terrace, at the distance of 150 meters from
the river. To supply the city with 75 l/sec of water extraction, it is sufficient to drill seven (7) boreholes at 50 m distance from each other.
According to the final design, the total area of land allocated for boreholes, i.e. project ROW will comprise 3.94 hectares of agricultural land. In particular, 77 agricultural
land parcels owned by the residents of village of Chikha in Sachkhere rayon. Among these 77 land parcels 16 land parcels will be fully acquired, while 61 land parcels
will subject to partial acquisition only.
41 PR: 43405-ICB-CHI-01
65
Table 1. The summary of project affected land parcels and area of land acquisition
The table below describes the scope of project impact determined as a result of census, socio-economic surveys, demarcation, land surveys and title search of project
affected land parcels followed with inventory of project affected assets.
Table 2. Summary of project impact
Description of Impact Number
Land parcel 77
Household 70
Total number of project affected persons 158
Vulnerable HH 13
Severe Impact 74
Land parcels to be fully acquired 16
Land parcels subject to partial acquisition 61
Structure (deteriorated) 1
Land parcel with annual crops and/or hey 76
Fruit bearing trees 9
Decorative /timber perennials 2
According to the magnitude and the level of severity of project impact on affected persons and communities, considering the ADB SPS 200942, the project was classified
as Category B.
42 http://www.adb.org
Scope of Impact
No of parcels
Total area
(sq.m.)
Area to be acquired
(sq.m.)
Area remaining with
AHs (sq.m.)
Full acquisition 16 19,147 19,147 0
Partial acquisition 61 122,045 20,207 101,838
Total 77 141,192 39,354 101,838
66
LARP Preparation Activities
During the LARP preparation, the following activities were undertaken:
a. Onsite identification and enumeration of all project affected land parcels;
b. Census and collection of socio-economic data on each located project affected household;
c. Demarcation and survey of all project affected land parcels in the presence of owner, or owner's legitimate representative, owners of the adjacent land parcels,
representatives of local government and municipality;
d. Inventory of project affected assets being determined during demarcation and land survey in the presence of the owner, or owner's legitimate representative and
representatives of local government and municipality;
e. Additional inventory of project affected assets conducted by the licensed valuator who also conducted market research on secondary land sales43 prior to
preparation of valuation report and determination of compensation unit rates for affected land and assets;
f. Preparation of cash compensation package separately per each project affected land parcel and broken down per type and volume of impacts subject to cash
compensation.
ADB Resettlement Policy Principles
The UWSCG has prepared LARP in compliance with the applicable laws of Georgia, LARF and ADB Safeguards Policy Statement (SPS 2009) on Involuntary Resettlement.
The document will exercised as the guiding instrument, to ensure that project implementation to meet ADB major objectives of ADB on IR. In particular, to
a. avoid involuntary resettlement, wherever possible;
b. minimize involuntary resettlement by exploring Sub-Project and design alternatives;
c. enhance, or at least restore, the livelihoods of all displaced persons in real terms, relative to pre-Sub-Project levels; and
d. improve the standards of living of the displaced poor and other vulnerable groups.
The land will be acquired in accordance with the laws of Georgia and the ADB Safeguards Policy Update (2009). All affected persons (APs) will be compensated for the
lost and/or damaged assets at replacement costs and receive adequate allowances depending on the severity of impacts and vulnerability status.
Notice to contractors cannot be given until the UWSCG has confirmed that payment has been fully disbursed to the displaced persons and rehabilitation measures are
in place, and already-compensated/assisted displaced persons have cleared the area in a timely manner; and area is vacated and free from any encumbrances.
43 Secondary land sales is the term often used in Georgia to describe sales transaction when a private person is willing to sell land/real property acquired from the State through the
privatization process.
67
June 22, 2017 is defined as the cut-off date for the given project.
Compensation eligibility is limited to AHs by the cut-off date, June 22, 2017. The cut-off date is the completion date of the census, demarcation and land surveys, title
search, socioeconomic survey and inventory of project affected assets. These surveys have been undertaken from May 2 to June 22 of the year 2017.
Thus, the owners of all seventy-seven (77) project affected land parcels eligible to cash compensation under the LARP are identified.
Worth to be noticed: any person(s) who attempt to occupy any territory with the project ROW after June 22, 2017 will be classified as illegal encroachers and will not
receive cash compensation for expenses undertaken within the ROW after June 22, 2017. Such person, if any, will be given three months advance notice to vacate
premises.
Legal-Regulatory Framework
In Georgia specific laws and normative acts regulate ownership rights. Legislation of Georgia also determines the rules for expropriation of ownership for public need
and considers issuance of compensation to cover resettlement costs at market value. The types of loss subject to compensation are determined and defined that
compensation should be issued for damaged assets as well as lost income. Pursuant to the legislation consultations and notifications are important to ensure
participatory involvement of project affected persons in the process of project preparation and implementation.
Under the active legislation, during the implementation of resettlement action plan the following mechanism are to be undertaken:
a. Acquisition of project affected land and assets located within the ROW through the negotiation and issuance of defined compensation prior to the
commencement of civil works;
b. Exercising the right of expropriation based on the Court decision and after issuance of defined compensation in case the negotiations fail.
Valuation Methodology and Compensation Unit Rates
The independent licensed valuator has been deployed to prepare Valuation Report and determine compensation unit rates per each type of affected asset and income
loss. The Valuation Report describes the methods used for determination of compensation unit rates as full replacement cost at current market values.
The Valuation Report developed in Georgian language is being presented to the UWSCG and is readily available upon request of interested APs.
68
The unit rates for project affected assets (land, structure, perennials) and income loss (annual crops) are defined under the Valuation Report prepared by the
independent licensed valuator. Whereas, the amount of one-time allowances, in addition allocated to severely affected and vulnerable APs, are defined based on the
principles of RPF, ADB SPS 2009, and the good practice examples.
During LARP implementation One-page Description document prepared separately for each project affected land parcel reflecting the breakdown of cash compensation
package individually will be handed to the AP.
Table 3: Cash Compensation Unit Rates
# Compensation Item Unit Measure Unit Rate (GEL)
1 Agricultural /non-agricultural land sq.m. 12
2 Replacement cost for deteriorated structure
(100 sq.m.) sq.m. 290
3 Replacement value for fruit bearing perennials
sour plu , i.e. Tke ali number 143
4 Replacement value for hazel nut bushes number 130
5 Timber value of project affected perennial
(Hornbeam) number 130
6 Purchase of best quality saplings number 15
7 Annual Crops (corn) sq.m. 0.40
8 Annual Crops (wheat) sq.m. 0.40
9 Annual Crops (corn and beans) sq.m. 0.55
10 Annual Crops (pumpkin) number 2.00
11 Perennial crops (Lucerne) sq.m. 0.14
12 Annual crops (hay) sq.m. 0.12
13 Vulnerability No of AHs 1036
14 Severe Impact No of Parcels 1036
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Compensation Entitlements and Mitigation Measures
Compensation Entitlements are defined specifically for this project and applicable to APs facing loss of land, assets and income, incorporate cash compensation at full
replacement cost at the current market values in compliance with the ADB SPS 2009 and active legislation of Georgia.
The entitlements are detailed below:
Non-agricultural / Agricultural arable land will be cash compensated at full replacement cost in the amount sufficient to purchase replacement land of equal in value
and productivity in vicinity to the project affected land parcel. Method for calculation of full replacement cost will include cost of preparation of land to levels similar
to those of the affected land. The taxes and fee related to processing transaction registration will be covered by the Executing Agency.
"Orphan land": remaining piece of land which as a result of land take has lost previous designation and became economically unviable. In such case, landowner is
eligible to claim full cash compensation for the entire area of such land parcel.
Structures: Structure-buildings (including condemned one) will be compensated in cash at full replacement cost, i.e. construction cost without any deductions for
depreciation, salvaged materials, or transaction costs. The compensation for houses/buildings will include the cost of lost utility (water, electricity, sewerage, gas)
connections. Construction cost calculation considers market cost of the materials to build a replacement structure with an area and quality similar to or better than
those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any
la or a d o tra tor’s fees. A appli a le ta es a d fees for tra sa tio registratio ill e o ered the Executing Agency.
Deteriorated structure: cash compensation for deteriorated structure was determined based on the market price of the salvaged materials. The ruined remnant of the
structure, fragments of remaining walls composed by old construction blocks and bricks can hardly be used for further construction purposes. Therefore, in given case
evaluation was conducted according to the current market value of the salvaged materials.
Fruit bearing perennials: Cash compensation shall reflect income replacement. Cash compensation will be calculated at current market value and according to type,
age, and productive value of project affected fruit tree. Annual yield capacity of a mature fruit bearing tree multiplied to market price of a fruit (kg/GEL) and multiplied
to the number of years required to grow a new tree to same productivity age.
Decorative /non fruit bearing perennials: Compensation will be calculated for timber value of decorative trees and perennials not bearing fruits at current market
value and according to type and age of affected tree.
Replacement Samplings: eligible APs will receive additional cash for purchase of seedlings per each project affected tree including fruit bearing, decorative and timber
trees.
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Annual Crops: Default payment of cash compensation at current market rates for annual crops per entire area of project affected land parcel. Compensation will be
issued even in case the APs have managed to collect the yield. Crop compensation will be paid to landowners. In case of tenancy agreement, cash compensation will
be paid to owner/tenant based on the specific sharecropping agreements (written/verbal) being made between these two parties.
Community Structures and Public Utilities: If affected, assets will be fully relocated or rehabilitated to meet their pre-project functions and utilities.
Additional Rehabilitation Measures
The LARP considers additional rehabilitation measures to be provided to AHs that qualify as vulnerable and severely affected.
One-time allowance for vulnerability: In addition to the compensation of lost land and crops, vulnerable AHs will be provided with additional rehabilitation measures;
in particular, one-time allowance set to cash compensation calculated based on the minimum subsistence monthly income level for the household of five (5) persons
multiplied to 3 months per AH. The amount (1036 GEL per affected household) of compensation are calculated based on the data retrieved from official website of the
National Statistics Office of Georgia – GEOSTAT44. Additionally, the members of vulnerable families will be given priority in employment in project-related jobs.
One-time allowance for severe impact: APs losing more than 10 % of income generating land, in addition to the compensation of lost land and crops, will be provided
with additional rehabilitation measures; in particular, one-time allowance set to cash compensation calculated based on the minimum subsistence monthly income
level for the household of five (5) persons multiplied to 3 months per AH. The amount (1036 GEL per severely affected land parcel) of compensation is calculated based
on the data retrieved from official website of the National Statistics Office of Georgia – GEOSTAT45. Additionally, the members of vulnerable families will be given
priority in employment in project-related jobs.
Contractor's Temporary Requirements: The civil works contract will require the contractor to be responsible for the temporary acquisition and reinstatement of all
land required outside the road reserve for construction camps, offices, borrow pits, materials storage sites, materials processing sites, and haul roads. The contractor
will select the land parcels they require and they will be responsible for negotiating agreements directly with land owners to occupy the land. In the event that a
contractor fails to obtain the agreement of a landowner, the contractor would be required to select an alternative site and negotiate a new agreement. No involuntary
occupation of land for temporary construction purposes would occur. Provision will be made in the civil works contract for the contractor to be responsible for providing
44 http://www.geostat.ge/index.php?action=page&p_id=179&lang=eng. Minimum monthly income subsistence level for the household of 5 members is 345/30 GEL. In particular:
345.30 X 3= 1035.90 GEL; rounded to 1036 GEL per affected household. 45 Same as above.
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adequate measures to cater for existing traffic while the construction works are in progress. The contractors shall be required to obtain the approval of the executing
agency for all proposals for traffic management during the construction of the civil works contracts and also they shall be required to maintain all temporary diversion
roads and existing roads used to carry diverted traffic from the main road.
Taxation and Deposit/Escrow Accounts
In no case will the AHs be liable for any taxes and eventual transaction fees; these will be paid by the UWSCG.
Amount of cash compensation will be deposited on the special account with the UWSCG if during LARP implementation process any AP is missing, absent, or deceased
and issuance of compensation is postponed due to legal procedures.
Procedures to Address Grievances
The Grievance Redress Commission will be operating within the framework of the project. The role and responsibility of the GRC is to accept claims and complaints,
assess its validity, determine the scope of eventual impacts, and timely resolve the issue, including the claims regarding the compensation.
Project related claims and grievances will be addressed according to the below described procedures
Phase Action
Level
Process Timeline
1st
Phase
UWSCG
Local
Service
Center
The designated person at the UWSCG Local Service
Center will first give hearing to the aggrieved person,
then register the grievance and assign registration
number. Then he/she will inform about the grievance
upper level person to the local service center
responsible for grievances, and circulating the
document exchange intranet the grievance is provided
to UWSCG Department of International Procurement
and Donors Relationship, Department of Environment
2 weeks
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Phase Action
Level
Process Timeline
Protection, resettlement and Permits; besides he/she
contacts the representatives of the Construction
Contractor and Construction Supervision Company.
2nd
Phase
UWSCG
GRC
In case the complaint is not resolved on the 1st Phase,
AP (complainant), seeking timely and efficient review
and resolution of the complaint, is eligible to address
the Grievance Redress Commission.
After receiving written complaints of AP, the GRC will
review and prepare a Case File for GRG hearing and
resolution. A formal hearing with GRC will be scheduled
in agreement with aggrieved AP. Liaison persons
assigned by the PIU will keep communication with AP to
schedule meetings, advise AP submission of additional
supporting documents or proves to support his/her
claim, collect such documents presented by AP and
present to the GRC during formal hearing. Besides, the
support includes assistance in preparation written
complaint to GRC, if required.
The decisions from majority of the members will be
considered final from the GRC and will be issued to AP
after signed by GRC members. The case record will be
updated and the decision will be communicated to the
complainant within 14 days of submission.
3 weeks
3rd
Phase
ADB
Georgian
Mission
In case the GRC fails to resolve problem raised in the
complaint and grievance still remains unresolved after
two-week time period since its official submission, the
interested person is eligible to apply to Asian
Development Bank Georgia Mission.
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Any physical and legal person, any appellant can communicate his/her concern to the Court at any stage of grievance redress. The GRC will not influence or restrict the
AP from applying to court for legal remedies.
If the complaint is found invalid, the GRC formulates a response and sends a written letter to the complainant, explaining the reasons of rejection. The complainant
can appeal the decision and bring the case to the local Court.
Contact Information
For any additional information and advice, please approach the following persons:
United Water Supply Company of Georgia
Address: 76-b Vazha-Pshavela Ave., Tbilisi, Georgia
Telephone: +(995 32) 291 90 60
Maka Goderdzishvili, Head of Resettlement and Environmental Unit
Mobile Phone: +995 599 22 99 25
The Copy of the Grievance Form is attached in the Annex 1.
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Appendices
Annex 1. Grievance Form
Grievance Form
Section of Complainant:
Full Name:
_________________________________
_________________________________
Mailing/Permanent Residence Address:
Village: ---------------------------------------------
Municipality: -------------------------------------
Preferred option of communication:
Mark with X
Response mailed to:
______________________________
Face-to-face meeting in GR Focal Point
______________________________
Contacts
Mobile: ---------------------------------------------
Landline: -------------------------------------------
E-mail: ----------------------------------------------
Language for Communication (mark with
X)
Georgian
Other_____________________ (please
specify)
Complain submission date: Date of hearing:
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Please, describe the reason of your discontent or claim in details. Use extra pages if needed.
Present copies of the relevant documents, if available
Complainant
Full Name:___________________________
Signature: ___________________________
Date: _______________________________
Received by:
Full Name:________________________
Signature:__________________________
Date: ____________________________
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Annex 2. Project Implementation Schedule
Activities/ Months May June July Aug Sept Oct Nov Dec Jan Feb Mar
2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018
Preparation of Initial LARP
Public Orientation Meetings
Enumeration, demarcation and survey of
project affected parcels
Census, SES, Inventory
Title Search
Deploying Valuator /Inventory &
appraisal
Data analyses
Developments of initial LARP & tentative
budget
UWSCG & ADB review, provision
comments to initial draft LARP & Budget
Incorporating comments &
announcement of LARP Public Disclosure
UWSCG & ADB No Objection for LARP
implementation commencement
LARP Implementation - Land Acquisition
& Issuance of Compensations
Technical Assistance to APs (registration
updates, legal consultancy)
Negotiations & Cash Compensation of
AHs
Processing Sales Agreements & Issuance
of Compensations
Resolving outstanding issues &
grievances
Construction Contract award
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Annex 6. Sample of Questionnaire
Census & Socio Economy Survey Questionnaire Municipality: Sachkhere / Village: Chikha Date: ___________, 2017
AP Code (map number of affected land parcel): Full name of HH Head:
Number of persons in HH: ID Number of Landowner:
Male: ID Valid until:
Female: Contact Phones:
Vulnerability:
Demography of HH
Member (Head) Spouse Son Daughter Fathe
r
Mother Daughter-in-
law
Son-in-
law
Grand-
daughter
Grand-
son
Broth
er
Sist
er
Other
Male
Other
Female
Relationship to
HH Head – enter
names
Age or Date of
Birth
Social /Marital
Status
Gender (M/F)
Primary
occupation
Educational level
See codes below
Disability or
chronic illness
Ethnicity
Religion
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Primary Occupation: 1. Farmer 2. Pensioner 3. Unemployed 4. Civil Servant 5. Business (non-farming) 6.Intermitent job (outside of rayon) 7. Housewife
8. University student; 9. Secondary school student; 10. In the kindergarten 11. Army; 12Other
Educational Level: 1. Primary 2. Secondary 3. Technical 4. Higher (University) 5. None (primary not completed)
Disability: 1. Invalid 1st Category 2. Invalid 2nd Category 3. Invalid 3rd Category 4. Other invalidity or chronic illness
Possessions of HH
Does your household own one or several of the following items:
Brief description of residential house:
Color TV Satellite Dish Telephone Mobile
phone
Internet Private well Hot water Gas heater
Wood
stove
Electric
heater
Laptop PC
Washing
machine
Refrigerator Bicycle Motorcycle Car Tractor Mini tractor Microbus Lorry Cattle Goat Chicken
House Built in (year) Number of floors Number of bedrooms Fully furnished Livable (unfinished
renovation)
Poor condition
Building material – Bricks
& Blocks
Kitchen inside WC Inside Bathroom Inside Wooden house WCs outside
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Costs and Expenditures of HH
What is the approximate annual expenditures of your household? ______________GEL/Year
Food Clothing Spirits/
Cigarettes
Consumer
goods
House
maintenance
Schooling University Utilities Health Mortgage loan Quick
loans
Farming/
agricultur
e
Livestock Business Transport Vehicle
maintenance
Renting
Land/assets
Sports/ Leisure Travelling Vocational
training
Other
Other: ______________________ (please, specify)
How much in average do you spend monthly: _________________________GEL?
Land Tenure:
How many land parcels does your HH own: ________________________
Type /designation of a land parcel Used for Annual yield (kg/Year) Income if any (GEL/Year)
Residential-homestead
Orchard/Garden
Agricultural arable
Agricultural grazing
Rented from private owner
Rented from the State/Municipality
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Sources of Income of HH
What is the approximate annual income in GEL from sources listed below?
Farming
Annual
crops
Livestock
/Meat
Milk
product
s
Poultry
(chicken
/eggs)
Business Regular
Salary
Intermittent
seasonal job
Remitta
nces
Selling agricultural
produce at the local
market
Sellin
g
cattle
Worki
ng
abroad
Tradin
g
If other, please specify: _________________________________________________________________________________________
Do you self-consume some of your produce? (YES /NO) __________ Approximately how much (%) of your produce is self-consumed per year?
______________________________________
Vulnerability
I e u erator’s assess e t (not a question), is there potential for vulnerability in this household: Yes / No
If yes, please specify:________
1: Single Elderly
2: Person with disability
3: Very poor, cannot cope with their basic needs
4: Female-Headed Household
5: Targeted Social Assistance
6: Other
