Land Acquisition and Resettlement Plan. Loan 3285-UZB: Northwest Region Power Transmission Line Project

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1 Land Acquisition and Resettlement Plan October 2020 (Draft) Loan 3285-UZB: Northwest Region Power Transmission Line Project Zafarabad Sirdarya 220 kv Transmission Line and Associated Substation Project This Land Acquisition and Resettlement Plan was prepared by the National Electric Grid of Uzbekistan for the Asian Development Bank. This Land Acquisition and 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 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.

2 Land Acquisition and Resettlement Planning Document Document: Land Acquisition and Resettlement Plan (draft) Document Stage: Draft Date: October 2020 Republic of Uzbekistan: Northwest Region Power Transmission Line Project ADB Loan 3285-UZB Zafarabad Sirdarya 220 kv Transmission Line and Associated Substation Project Prepared by the Joint-Stock Company «National Electric Grid of Uzbekistan» for the Asian Development Bank. This Land Acquisition and 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. i

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4 Unofficial Translation With reference to the LARP for the project <<construction of substation 220 kv <<Zafarobod>> and two OHL 220kV <<Syrdarya TPP substation Zafarobod>> (Loan No.3285-UZB). JSC <<National Electric Grid of Uzbekistan>> thanks you for activities and support in the realization of projects for the development of the energy sector of the Republic of Uzbekistan. In connection with the above, JSC <<National Electric Grid of Uzbekistan>> sends to you the LARP for the above-referenced project for review and further publication on ADB s official website. Attachments: LARP report in electronic form. Respectfully Deputy chairman of the board [signature] F. Kurbanov

5 ABBREVIATIONS ADB Asian Development Bank AH Affected Household AP Affected Person CoM Cabinet of Ministers of Uzbekistan DDR Due Diligence Report DLARC District Land Acquisition and Resettlement Commission DMS Detailed Measurement Survey EA Executing Agency EMP Environmental Management Plan EPC Engineering, Procurement and Construction FGD Focus Group Discussion GFP Grievance Focal Point GRM Grievance Redress Mechanism Ha Hectare HHs Households IA Implementing Agency IOL Inventory of Losses JSC Joint-Stock Company kv Kilovolt LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan NEGU JSC National Electric Grid of Uzbekistan NWRTLP Northwest Region Power Transmission Line Project O&M Operation and Maintenance PIC Project Implementation Consultant PMU Project Management Unit RoW Right-of-Way SAESP Design Institute JSC Sredazenergosetproject SES Socio-Economic Survey SCLRGCSC State Committee on Land Resources, Geodesy, Cartography, and State Cadaster SPS Safeguard Policy Statement, 2009 TL transmission line ToR Terms of Reference TPP Thermal Power Plant USD United States Dollar UZS Uzbek Soum EXCHANGE RATES (As of 16 October 2020, ADB Book Rate) Currency Soum (UZS) UZS 1.00 = $ $1.00 = UZS 10, NOTE in this report, i. $ Means US dollars (USD) ii. UZS stands for Uzbek Soum When preparing any country program or strategy, financing any project, or referring to or referencing a specific territory or geographical area in this document, the Asian Development Bank does not intend to make an assessment regarding any official or other status of the territory or area. ii

6 Affected persons GLOSSARY The term affected persons (APs) is commonly used by the executing agency to refer to the members of the project affected households who experience full or partial, permanent or temporary 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) resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. ADB s SPS uses this definition to define displaced persons. The SPS defines affected persons in a broader and inclusive sense in the context of disclosure, consultations and participation, and grievance redress mechanism. Affected household A household consists of one or more people who live in the same dwelling and share meals or living accommodations and may consist of a single family. In the project, the leaseholder of a project affected household is the unit for compensation and all the members of a household are considered as affected persons. Cut-off-date Detailed measurement survey Economic Displacement Eminent domain Entitlement Hokimiyat Household plot The date after which people will not be considered eligible for compensation, i.e., they are not included in the list of AHs as defined by the project census. If the country expropriation law does not specify a cut-off date, usually, the cut-off date is the date of the detailed measurement survey which is based on the final engineering design. The validity of the cut-off date in ADB projects typically is three years. With the aid of the approved detailed engineering design, this activity involves the finalization and/or validation of the results of the inventory of losses (IOL), the severity of impacts, and the list of AHs earlier done during RP preparation. The final cost of resettlement can be determined following the completion of the DMS. 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 access to legally designated parks and protected areas. The right of the state using its sovereign power to acquire land for public purposes. National law establishes which public agencies have the prerogative to exercise eminent domain. The range of measures comprising the cost of compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration, which is due to AH, depending on the type and degree nature of their losses, to restore their social and economic base. All entitlements are given to all affected households as per the entitlement matrix. The local government authority that interfaces between local communities and the government at the regional and national level. It has ultimate administrative and legal power over local populations residing within its jurisdiction. A plot of land allocated in the manner and amount established by law in addition to the residential household as inheritable lifetime possession to one of the family members for the production of iii

7 Illegal agricultural products both for free sale and for the needs of the family. The construction of residential structures is not allowed. Households that are not registered their business, agriculture, residential and orchard and those 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 i.e. those people without legal lease to land and/or structures occupied or used by them. ADB s SPS explicitly states that such people are entitled to compensation for their non-land assets. Income Restoration This is the re-establishment of sources of income and livelihood of the affected households. Land Acquisition Land allocation Land use rights Makhalla Physical displacement Private farm Rehabilitation Relocation The process whereby a person is compelled by a public agency to alienate all or part of the land s/he owns or possesses, to the ownership and possession of that agency, for the State purposes, in return for fair compensation. The term used when land is being allocated out of the unproductive/ unsettled State Reserve Land or from the areas that are being used by the State Organization for the modernization/construction of a new substation, and transmission line towers as well as stringing the power cables. According to Land Code (article 17) real persons (can have the land plot under the lifelong inheritable possession right and land parcel use transferred as a descent. This right is given to individual residential housing construction and collective gardening and vineyard (orchards), peasant farms. Juridical persons (enterprises, stores, and businesses) can possess land parcels according to the right to permanent possession, permanent use, temporary use, lease, and property. In the two above cases, when a person wants to sell the property (land and building), he will sell the building & structure, and subsequently, the land parcel sold as an attachment (right is sold). A local level community-based organization recognized officially by the State that serves as the interface between state and community. It is responsible for facilitating a range of social support facilities and ensuring the internal social and cultural cohesiveness of its members and; local communities to elect Makhalla leaders. Relocation, loss of residential land, or loss of shelter as a result of (i) involuntary acquisition of property, or (ii) involuntary restrictions on land use or access to legally designated parks and protected areas. A legal entity engaged in agricultural activity with larger land plots. Farmland is managed by the head of the household and there are a number of criteria for a private farm, such as the availability of agricultural machinery, the agricultural education background of the head of the farm and others. The private farm is responsible to the Government for the execution of certain requirements on crop production and other agricultural projects. Additional support provided to AHs losing productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of pre-project living standards and quality of life. The physical relocation of an AH from her/his pre-project place of residence and/or business. iv

8 Replacement Cost The term used to determine the value enough to replace affected assets and/or cover transaction costs necessary to replace the affected assets without depreciation for such assets as well as material advantage, taxes and/or travel expenses. Resettlement Means all social and economic impacts that are permanent or temporary and are (i) caused by the acquisition of land and other fixed assets, (ii) by change in the use of land, or (iii) restrictions imposed on land, as a result of a project. Resettlement Plan A time-bound action plan with budget setting out compensation and resettlement, entitlement, actions, responsibilities, monitoring, and evaluation. Safety zone Severely Affected Households The area below, and around, transmission lines in which activities and land use that are incompatible with the safe and efficient operation of the national electricity transmission network are avoided. The safety zone corridors do not restrict normal farming activities such as cropping, harvesting, grazing, plowing. Only incompatible activities, milking sheds, residential dwellings, and some major earthworks - primarily around the foundations of the transmission towers would be restricted. Affected households who will (i) lose 10% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the Project. Significant impact 200 persons or more will experience major impacts, which are defined as; (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income-generating). Vulnerable Group Distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically, include: (i) female-headed households without support, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support. v

9 Table of Contents ABBREVIATIONS... ii EXCHANGE RATES... ii GLOSSARY... iii EXECUTIVE SUMMARY... ix 1. INTRODUCTION General Provisions Project Description Approach and Methodology Current LARP Status LARP and Project Implementation Conditions SCOPE OF LAND ACQUISITION AND RESETTLEMENT Scope of Land Acquisition Methodology for Determining the Impact of the Project Census and Inventory of Losses Construction of Power Transmission Towers Permanent Land Acquisition for Power Transmission Towers Temporary Impacts When Stringing Power Transmission Lines Loss of Trees and Forestry Vegetation Severity of Impact Legal Status of Land Tenure Unanticipated Impacts SOCIO-ECONOMIC INFORMATION AND PROFILE Field Methodology Affected Households Affected Persons Vulnerable Households Occupation Pattern of the Affected Persons Monthly Income and Expenditure of Affected Households Education Status of the Sample Affected Persons Age Structure of the Affected Persons Women s Issues INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION Consultations vi

10 4.2. Disclosure of Information GRIEVANCE REDRESS MECHANISM General Existing complaint handling mechanism in Uzbekistan Proposed project level GRM LEGAL FRAMEWORK Laws, Regulation, and Provision relating to LAR in Uzbekistan Constitution of the Republic of Uzbekistan Land code (30 April 1998) Civil Code (29 August 1996) Resolution of the Cabinet of Ministers No. 146 (May 25, 2011) Resolution of the Cabinet of Ministers 911 of November 16, Resolution of the Cabinet of Ministers No. 317 (September 21, 2016) Decree of the President of the Republic of Uzbekistan No. PP-3857 dated July 16, Presidential Order F-5491 (3 August 2019) Law of Uzbekistan on Protection of Private property and Guarantees of Ownership rights #336 (22 September 2012) Decree of the President of Uzbekistan 5495 (1 August 2018) Resolution of Cabinet of Ministers 1047 (26 December 2018) Resolution of Cabinet of Ministers # 63 ( ) Resolution of Cabinet of Ministers 44 (15 February 2013) Tax code Resolution of the President # 4555 ( ) Labor code and employment law Resolution of Cabinet of Ministers About Approval of Rules of Protection of Power Supply Facilities The National Construction Standards and Rules # KMK Land allocation standards for construction of kv power networks ADB Safeguards for Involuntary Resettlement Policy differences and reconciliation COMPENSATION, ASSISTANCE AND BENEFITS Eligibility for Compensation and Assistance Legalization and Registration of Lease/Ownership of land Compensation and Property Valuation Land Facilities vii

11 Crops and Trees Loss of Income / Livelihood Vulnerable Households (cross-linked with Section 3.3) Compensation Assessment Procedure & Entitlement Matrix INCOME RESTORATION RELOCATION BUDGET AND RESETTLEMENT FUNDING Temporary Impact on Agricultural Land Holdings Permanent Land Acquisition Harvest Compensation Trees and Forestry Vegetation Tentative Budget INSTITUTIONAL ARRANGEMENTS PMU of JSC "National Electric Grid of Uzbekistan" Office of Land and State Cadastre District hokimiyats of Sirdarya and Djizzak provinces Community-based Organizations and Non-Governmental Organizations (NGOs) Independent Valuation Companies SCHEDULE OF LARP UPDATING AND IMPLEMENTATION MONITORING AND REPORTING ANNEX 1. Maps of the HV line corridor and substation area ANNEX 2. Lists of participants and photos of public consultations ANNEX 3. PROJECT INFORMATION Brochure viii

12 Project Description EXECUTIVE SUMMARY 1. The Government of Uzbekistan has requested a Technical Assistance (TA) from the Asian Development Bank (ADB) for the preparation of the 220 kv Zafarabad-Sirdarya Transmission Line and Associated Substation project LARP. The main objective of the project is to construct 220 kv Power Transmission Line that will transmit power from Sirdarya Thermal Power Station in Sirdarya province of Uzbekistan to Zafarabad substation in Djizzak province. 2. The project expects to be funded using saved funds of ADB loan for the project Construction of 220 kv transmission lines Takhiatash TPS Khorezm substation - Sarymay settlement (Khorezm region). On September 27, 2019, ADB approval was received for the use of the saved ADB loan funds for the implementation of Djizzak - Zafarabad Power Transmission Line Project. 3. The project includes the following components: Construction of 142 km two parallel single-circuit 220 kv power transmission lines (including one 2.75 km double-circuit transmission line which will divide in two parallel single-circuit line with the length of km) from the biggest thermal power plant in the country Sirdarya Thermal Power Plant located in Sirdarya province to Zafarabad substation to be newly constructed in Djizzak province. Construction of the 220/110/10 kv Zafarabad substation in Forish district of Djizzak province to provide reliable power supply to population of Djizzak province as well as to several new big industrial plants. Increase capacity of existing switchgear inside Sirdarya Thermal Power Plant by installation of two new cells. Institutional capacity building for project monitoring including consulting services on capacity building and efficiency of project management. Current LARP Status 4. This draft land acquisition and resettlement plan (LARP) has been prepared based on a project level inventory of losses and socio-economic survey of the potentially affected persons and a feasibility study for construction of the power line prepared by the Design Institute - JSC Sredazenergosetproekt. Inventory of losses was carried out by regional offices of Uzdavyerloyikha (State Research and Design Institute for Land Management) in the Sirdarya and Djizzak provinces from May to August The LARP establishes principles and procedures to compensate for the possible loss of land, houses, buildings, crops and livelihoods during the implementation of the project in accordance with the ADB Safeguard Policy Statement (SPS, 2009) and related country land regulations, policies and guidelines as reflected in the approved LARPs under ADB Loan This document has been approved by the JSC National Electric Grid of the Republic of Uzbekistan (NEGU). This draft LARP will be updated into an implementable LARP subsequent to the detailed engineering design of the project. Commencement of physical works will be conditional to the full implementation of the LARP. Scope of Land Acquisition and Resettlement 5. Allocation of totally ha of agricultural irrigated-cultivated and non-agricultural lands will be required permanently as well as temporarily within the corridor line for the 142 km power transmission lines. For the transmission towers, a permanent alienation of approximately 2.65 ha of land will be required and another ha will be needed temporarily during implementation of works related to stringing of power lines. Table 1 summarizes information on the estimated permanent and temporary land acquisition and requisition for the project. A total of 203 households are likely to be affected by the project ix

13 including 195 farm enterprises which are both under permanent and temporary impact, 3 farm enterprises which are only under permanent impact, 1 farm enterprise which is only under temporary impact, 1 household which will be displaced due to safety reasons, 1 household which will be restricted to construct dwelling house on already existing basement due to safety reasons and 2 households whose crops may be damaged during the project works. The loss of agricultural land due to permanent impact varies between 0.001% and 0.376% of the total agricultural land area leased by the affected households. While 1 household will be relocated, the quantum of loss of the residential lands of 3 households has been put under temporary impact in Table ES1 because, after the project implementation, they will be allowed to carry out agricultural activities on the residential lands. They will receive a one-time assistance. Table ES1. An overview of the overall impact of land acquisition and requisition Provinces No. of Power Transmission Towers to be installed Permanent Impact Total (ha) Agricultural lands Orchards Total (ha) Temporary Impact Agricultural lands Orchards Residential lands Sirdarya province Total, ha Djizzak province TOTAL Socio-economic Profile of AHs 6. The field work methodology consisted of a project level census including an inventory of losses (IOL), of all potentially affected households (AH) and a sample socio-economic survey (SES) of about 30% of the 202 AHs (totally 60 AHs). The surveyed 60 AHs have an estimated 378 members including 200 males and 178 females with an average household size of The livelihood of the potentially project affected households is mainly agriculture based either as lease holders or as agricultural laborers. Young household members (0-6 years) comprise 12.3 % while older members (66 years old and above) comprise 1.8%. No households were identified as vulnerable following the definition of vulnerability used in the approved LARPs under ADB Loan 3285-UZB. All households will be assessed in terms of their vulnerability status during the updating of the LARP. Information Disclosure, Consultation and Participation 8. Consultations were carried out with the identified stakeholders and affected persons during the preparation of the project including during the inventory of losses and census survey exercise and during the environmental studies. It ensured that the affected people and other stakeholders are informed, consulted and allowed to participate in project preparation and implementation; reducing public resistance to the project, if any; helping mitigate and minimize any probable negative impact and bringing in the benefit of the project to the people. A total of 2 public consultations were organized, one in Sirdarya and another in Djizzak province in February 2020, where totally 82 people took part. The public consultations were organized by NEGU with the support of ADB and consulting firm Eco Standard. Besides, meaningful consultations were carried out with the affected persons during the inventory of losses and the census and socio-economic survey process. 9. Meeting for information disclosure the final LARP will be organized for all the AHs and the relevant public and governmental organizations during the evaluation phase and LARP updating targeted by the 4 th quarter of A local language information brochure will be x

14 prepared and distributed to the AHs, relevant agencies and community organizations during the publicity meetings. The information brochure will describe the project information and land requirements for the project, the payment matrix, as well as the grievance redress mechanism and the schedule for the implementation of the LARP. An information brochure in English is appended as Annex 3 of this draft LARP. This draft LARP and its updated version will be posted on the websites of NEGU and ADB after concurrence by ADB and approval by NEGU. Grievance Redress Mechanism 10. The APs will have the right to file complaints and queries on any aspect of project implementation including land acquisition and resettlement issues, if any. The EA will ensure that grievances and complaints on any aspect of the project implementation are addressed in a timely and satisfactory manner. Complaints can be submitted to the mahalla, the council of farmers, or directly to NEGU as the EA and to the offices of NEGU in Sirdarya and Djizzak province as the IA. Sirdarya and Djizzak offices of NEGU are the complaints receiving authority or are known as the Complaints Coordinating Authority (CCA). Upon receipt of a complaint, the Grievance Focal Point (GFP) will establish contact with the Project Management Unit (PMU) and the makhalla, as well as with other relevant authorities. The PMU will create a complaints handling group, the management of which will be carried out by one of the employees of the IA appointed to handle complaints related to the project. All complaints will be resolved in 15 days, and in case of additional information requirement, the maximum period for satisfaction and closing of the complaint will be 30 days. The APs may access the country s legal system at any stage of the GRM process for project related complaints using national GRM provisions. A minimum of two APs can also file complaints with the ADB Accountability Mechanism if there has been a violation of ADB s policy requirements. Legal Framework 11. In preparing this LARP, the country s relevant legal provisions and the latest Government decisions as well as ADB s involuntary resettlement safeguard requirements from the Safeguard Policy Statement (SPS, 2009) have been used. The differences in the regulatory documents of the Government of Uzbekistan (GOU) and ADB were resolved, as necessary. The most important mechanisms, in accordance with the results of the studies and consultations, to ensure protective measures in the context of this project are the policies for compensating for the allotted land in the absence of an acceptable option for providing land in return, transparent formulas for assessing the cost of land compensation and other tangible assets, timely payment compensation for APs affected by job loss and benefits for a small number of poor and vulnerable AP. Entitlements and Compensation Strategy 12. Compensation eligibility will be limited by a cut-off date corresponding to the completion date of the data collection based on the last day of processing of the AH census data and loss record. Households, which settle in the impacted areas and/or carry out any improvements on land that will be allotted for the project, after the cut-off date will not be eligible to receive compensation. However, they will receive an advance notice asking them to vacate the land and dismantle the affected buildings before the start of the project. Their dismantled facilities will not be confiscated and will not be subject to fines or compensation. 13. In accordance with the rehabilitation and resettlement measures proposed for the project, all affected households will be entitled to a combination of compensation packages and resettlement assistance depending on the nature of ownership rights on lost assets and scope of the impacts including socio-economic vulnerability of the displaced persons and measures to support livelihood restoration if livelihood impacts are envisaged. Unanticipated impacts will be mitigated in accordance with the policy principles of the LARP for this project. Compensation shall be paid before taking possession of the affected land. xi

15 Income Restoration 14. There is no income restoration issue in this project as the losses are marginal. Compensation at replacement cost will be provided for the losses. PMU and the IAs (Sirdarya and Djizzak offices of NEGU) will be responsible for planning and implementing the support measures described above. For this purpose, IAs will work closely with the mahalla, district hokimiyats, local offices of land resources and state cadaster departments and labor authorities for effective implementing the income restoration strategy. Relocation household is proposed to be displaced from housing for safety reasons of overhead high-tension cables according to the relevant laws of the country, and not because of land acquisition by the project. Resettlement Budget and Financing 16. The estimated LARP budget, based on the calculation of compensation payments for the loss of agricultural land, crops, relocation and replacement housing, is estimated at UZS 2,972,161,318, equivalent to approximately USD 287,000 using ADB s Book Rate as of 16 October The cost of internal monitoring and evaluation, as well as updating and implementation of LARP will be included in the contractual package of services. Institutional Arrangement 17. NEGU will have overall responsibility for the implementation of LARP as the executive agency. It will be responsible for the ongoing management of LARP implementation. PMU of NEGU will consist of a resettlement specialist who is responsible for planning, implementing and monitoring the LARP as well as for preparing the LARP implementation completion report. PMU will work closely with relevant state bodies and public organizations for implementing the LARP. Implementation Schedule 18. The implementation of this LARP for the project will be planned after consideration and concurrence by ADB of the updated, final LARP. All activities related to land acquisition and resettlement will be planned in such a way that compensation is paid before taking over the land and starting construction work. Consultations with the public, monitoring and consideration of complaints will be carried out periodically throughout the duration of the project. Construction will begin when compensation is fully paid. The completion of the LARP implementation will be documented in the LARP implementation completion report that shall be approved by ADB for the commencement of the civil works. Monitoring and Reporting 19. Implementation of the LARP will be monitored by the PMU of NEGU. For this, the PMU has a resettlement specialist on its roll. The resettlement specialist will conduct an internal monitoring of the LARP implementation on a regular basis in close collaboration with local hokimiyats and community and non-governmental organizations. The monitoring activities that start with the loan effectiveness will continue until the completion of all construction work. The PMU resettlement specialist will prepare semi-annual monitoring reports that will be submitted to ADB for review and posting on the ADB website. The PMU will disseminate relevant information from such reports to the project affected households. 20. Apart from the continual semi-annual monitoring report mandated by ADB s SPS, the resettlement specialist will prepare a detailed LARP implementation completion report that will include detailed information on actual land acquisition and requisition, impacts, listing affected households and payment of compensation as well as relocation efforts, which shall be submitted to ADB. The LARP implementation completion report will be used by ADB and NEGU as the basis for issuing notice of commencement of construction work to contractor. xii

16 1.1. General Provisions 1. INTRODUCTION 1. The project is expected to be funded using saved funds of ADB loan for the project Construction of 220 kv transmission lines Takhiatash TPP Khorezm substation - Sarymay settlement (Khorezm region). On September 27, 2019, ADB approval was received for the use of the saved ADB loan funds for the implementation of 220 kv Zafarabad-Syrdarya transmission line and associated substation. 2. This draft land acquisition and resettlement Plan (LARP) has been prepared based on the preliminary alignment for the feasibility study to address all possible land acquisition and resettlement (LAR) issues that may arise due to the implementation of the project involving permanent land acquisition for the construction of transmission line (TL) towers and temporary land requisition for stringing the conductor cables of the TL. This project follows the lead of Loan 3285-UZB and establishes principles and procedures to compensate for the loss of land, houses, buildings, crops and livelihoods during the implementation of the project in accordance with ADB s Safeguard Policy Statement (SPS, 2009) and related country land regulations, policies and guidelines as provided for in the approved LARPs under ADB Loan This document has been approved by the Joint-Stock Company National Electric Networks of the Republic of Uzbekistan (NEGU), which is the project executing agency (EA). This draft LARP will be updated upon availability of the detailed engineering design and subsequent to the conduct of a detailed measurement survey (DMS) Project Description 3. The 220 kv Zafarabad Sirdarya power transmission line will be located in service areas which are under the charge of Sirdarya and Djizzak offices of NEGU. Administratively, the project will be implemented in the Bayavut and Khavast districts of Sirdarya province and in Zomin, Sardoba, Pakhtakor, Sharof Rashidov, Zafarobod and Forish districts of Djizzak province. 4. The total investment cost of the project is estimated at USD 75 million, including physical and non-physical components. The actual completion of the project is expected by the end of The project involves the commissioning of the high-voltage electricity transmission in order to ensure security of supply. The project includes the following components: (i) Construction of 142 km two parallel single-circuit 220 kv power transmission lines from the biggest thermal power plant in the country - Sirdarya Thermal Power Plant located in Sirdarya province up to Forish district of Djizzak province. 1 (ii) Construction of new 220/110/10 kv Zafarabad substation in unsettled steppe area near Djizzak city. This substation is the main part of the power transmission line project designed to cover the growing electrical loads of consumers in Djizzak province and to provide reliable power supply to population and major industrial plants of Djizzak province. (iii) Increase capacity of existing switchgear inside Sirdarya Thermal Power Plant by installation of two new cells. (iv) Institutional capacity building for project monitoring including consulting services on capacity building and efficiency of project management. 5. The total length of the proposed Zafarabad-Sirdarya transmission line is about 142 km including: a) about 2.75 km of double circuit line at the beginning of transmission line and b) two parallel single circuit lines of about km length each. Preliminary consultations with 1 The total length of the power line in the design documentation and the documentation for topographic survey may vary during the updating of the LARP. The exact extent will be estimated after the installation of landmarks for all supports. 1

17 project design engineers showed that most of the route of the transmission line will be equipped with steel towers as shown in Figure 1.3. Figure 1.1. Proposed 220 kv power transmission line on Uzbekistan map Project Area Figure 1.2. Corridor of power line from "Sirdarya TPP Zafarabad substation 2

18 Figure kv towers to be installed for the double-circuit line (left photo) and for two parallel single circuit lines (right photo) 6. Totally, approximately 1250 towers will be installed along the 142 km transmission line, including 504 in Sirdarya province and 746 in Djizzak province. The distance between two towers, depending on the type of relief and tower, varies from 200 to 250 meters. The average distance between towers on the transmission line is 225 meters. 7. As per the national construction standard # KMK , the width of a land strip temporarily needed for installation of a power tower to be installed in the first 2.75 km section and stringing power cables is 18 meters (Figure 1.4). Permanent land acquisition needed for one tower to be installed in the first section will be about 70.56m2. 8. The width of a land strip (for one line) temporarily needed for installation of a power tower to be installed in the remaining km section and stringing power cables is 15 meters (30 meters for two lines) as shown in Figure 1.5. Permanent land acquisition needed for one tower will be about m2. 3

19 Figure 1.4. RoW needed for installing towers and stringing cables at 2.75 km section Figure 1.5. RoW needed for installation and wiring of two parallel 220 kv TLs with single-circuit towers 4

20 1.3. Approach and Methodology 9. In order to conduct a preliminary assessment of the LAR impact, the following measures were adopted: a) An inventory of losses (IOL) identified the potentially affected households (AH) based on a preliminary power route line and assessed the size and type of land as well as identified and surveyed the property of business entities and farms that will be affected by land acquisition. b) The AH/AP Census enumerated the potential project affected persons/households and collected information on their socio-economic status. c) Consultations with relevant government agencies and the affected parties. 10. The IOL was carried out by the regional offices of Uzdavyerloyikha (State Research and Design Institute of Land Management) with professional surveyors in May October , who measured the area of the affected land allocation. The results of the IOL were verified and finalized by the Resettlement Specialist of the Project Management Unit (PMU) of NEGU. 11. After identifying a property proposed to be affected for land acquisition, a study was conducted of the socio-economic situation of land users in order to cover both informal and legal usership of land-property. In addition to the informal interviews, a questionnaire was administered based on cultural characteristics for registering accurate answers, which was used as a census tool. The questionnaire reflects the following aspects: (i) enumeration of a household members; (ii) the composition and socio-economic characteristics of the household (age, ethnic group, education, gender, etc.); (iii) the type of income earning activity and items of expenditure of the household; (iv) owned / occupied land and agricultural activities; (v) debts and assets; and (vi) preferences for compensation payments and assistance in restoring sources of income Current LARP Status 12. This LARP was prepared by the PMU of NEGU with ADB s assistance in August- October 2020 based on the preliminary alignment as followed by the feasibility study. The necessary survey for baseline data was based on the feasibility study data for construction of the power line. Inventory of losses was carried out by regional offices of Uzdavryerloyikha (State Research and Design Institute for Land Management) in the Sirdarya and Djizzak provinces from May to October 2020, with a long period of work stoppage in between due to the Covid-19. Overall, previous LARPs prepared under the ADB Loan 3285-UZB were used for guidance in preparing this draft LARP. 13. This LARP will be updated and finalized through a detailed measurement survey (DMS) after the detailed design of the project becomes available. The updated LARP will include new field studies to confirm or identify additional AHs and APs, systematic consultation with AHs and APs, and dissemination of information to the APs on their entitlements and complaint handling mechanisms LARP and Project Implementation Conditions 14. This LARP complies with relevant Uzbek laws and ADB's Safeguard Policy Statement (SPS, 2009) requirements. In accordance with the requirements of the resolution of the Government 911 ( ) and 146 ( ) any land acquisition and demolition of structures can be implemented only after full compensation of damages is paid to the land users and owners of facilities. Other legal texts of the Government of Uzbekistan and 2 The census and survey activities fell behind by more than two months, as some of the enumerators were down with Covid-19 and there were severe restrictions on movement due to the lockdown in the country. 5

21 resolutions related to land allocation also require that construction works can be started only after all compensation payments for land acquisition have been made. 15. ADB's involuntary resettlement safeguard also requires that project implementation follows the LARP implementation. The most important conditions are: (i) land acquisition is permitted only after all compensation payments have been made, and (ii) the commencement for construction work follows the implementation of the updated or final LARP, as confirmed by a LARP implementation compliance report. 16. For design and build, EPC (engineering procurement construction) or turnkey contracts wherein the contractor is mobilized to complete the design before the LARP is finalized, ADB policy allows the awarding of contract provided that the contract expressly provides that the installation and construction phase (and commencement thereof) is strictly conditional upon: (i) the final LARP based on the Project s detailed design having been submitted to, and cleared by, ADB; and (ii) the Borrower having notified the contractor and ADB in writing that due consultation, compensation payments and other entitlements have been provided to affected people fully in accordance with the LARP. For this Project, this condition will be clearly indicated in the EPC contract and will be monitored closely. 17. It is important that the detailed design will be prepared by choosing such a construction territory and a distribution route that can minimize the impact of land acquisition within the framework of this project. Implementation of this project in accordance with LARP will require compliance with the following key steps: (i) NEGU will update the LARP after completion of detailed design by the EPC contractor, which will strive to minimize land acquisition. An updated LARP will be prepared in consultation with the AHs. (ii) All field works associated with the construction of power transmission lines and other supporting field work can only be started after ADB has agreed on an updated LARP and all compensation payments in accordance with the updated LARP is completed. (iii) NEGU will send to ADB a report on the completion of LARP implementation, in particular, on making compensation payments to the AHs. (iv) A LARP Compliance Report will be prepared by NEGU, subject to verification by ADB, in order to confirm that all monetary compensation and other AH benefits have been fully paid in accordance with the LARP provisions. The report will be used by ADB as one of the conditions for the commencement of civil works. 18. The PMU will monitor the implementation of the LARP and prepare a report based on its results. For these purposes, the PMU will appoint a qualified and experienced resettlement specialist. The designated specialist will oversee the implementation of the LARP and prepare a report on compliance with the LARP before starting the construction works. 19. An information brochure in Uzbek/Russian with a brief description of the Project, selection criteria, and entitlement matrix and implementation schedule will be distributed to AHs and any other affected parties by representatives of NEGU through the local authorities and the mahalla. Both the draft LARP and the updated LARP after the detailed design will be available on websites of NEGU and ADB. This draft LARP includes a sample information brochure in English (Annex 3), to be further developed when the draft LARP is updated. 6

22 2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 20. This chapter discusses the scope of land acquisition and the consequent impacts of the project and summarizes the main consequences in terms of loss of assets and affected households Scope of Land Acquisition 21. This project will require: (i) permanent land acquisition required for the construction of towers for power transmission line and (ii) temporary land requisition for stringing power lines on to towers. Construction of the new Zafarabad substation in Djizzak province will not require acquisition of privately used lands. The substation will be constructed in unsettled steppe area not occupied by any private user and not suitable for agricultural activity (Figure 2.1.). the substation will occupy about 9 ha of land. 22. The corridor for the 142 km power lines will cover an estimated area of about hectares, which is necessary for the construction of transmission lines and stringing tension wires. This quantum of land is a combination of 2.65 ha of permanent land acquisition and ha of temporary requisition of land. Details of lands to be affected are shown below in Table 2.2 while Table 2.1 presents an overview. 23. For the construction of power transmission towers, it is estimated that totally 2.65 ha of permanent land acquisition will be needed. The acquisition and requisition of land will affect a total of 203 farms and households including 195 farm enterprises which are both under permanent and temporary impact, 3 farm enterprises which are only under permanent impact, 1 farm enterprise which is only under temporary impact, 1 household which will be displaced due to safety reasons, 1 household which will be restricted to construct dwelling house on already existing basement due to safety reasons 3 and 2 households whose crops may be damaged during the project works. The household to be displaced will require relocation. The household with existing basement that will be restricted to construct a house does not own the land plot but leases it and it is understood that the structure is not officially registered with the cadaster department. Compensation for this household can be made based on the agreement prepared and signed between the household and NEGU. Figure 2.1. The site selected for the construction of Zafarabad substation 3 Resolution No on the approval of the procedures for the protection of electric grids facilities, dated 28 Dec 2018; KMK-Standards and Norms on land acquisition for electric networks with a voltage of kv. 7

23 Table 2.1. An overview of the overall impact of land acquisition and requisition Province Number of power towers to be installed Permanent Impact (ha) including: Total (ha) Agricultural lands Orchards Total (ha) Temporary Impact (ha) including: Agricultural lands Orchards Residential lands Total impact (ha) Sirdarya Djizzak TOTAL As mentioned above, 1 AH s dwelling house (AH3 in Figure 2.2 below) which is located within the safety zone of the transmission line will be demolished and the household members will be relocated due to safety reasons. Some rooms of the dwelling house behind the main body of the dwelling house have not been completed yet and they are not suitable for living. (Figure 2.3). The quantum of loss of the residential lands of the 3 other households have been put under temporary impact in Table 2.1 because, after the project implementation, they will be allowed to carry out agricultural activities on the residential lands. Their loss is negligible, and they have sufficient available remaining land. More details on these three affected households (AH1, AH2, and AH4) with individual maps follow. Figure 2.2. Affected dwelling plots on Google map 25. The total area of land plot of the AH1 is 0.2 ha. The total area under impact is about 0.1 ha or 50%. The area under impact is highlighted in red color. This area will be located inside the legally mandated safety zone of the new transmission line. The red area includes agricultural land, trees and a cow shed. During the project works trees, a cow shed, and crops may be damaged. AH1 can reuse the entire affected area and continue planting crops in the red zone after the project is completed. The cow shed may be left in the red zone if it will not hinder the operation and maintenance of the new transmission line. This issue will be verified by the NEGU engineers who will give their expert opinion on it. Otherwise, the shed can be relocated to the area highlighted in green. The area which is highlighted in green color is outside the safety zone of the new transmission line. The green area includes a residential 8

24 house and agricultural land. The green area is big enough to construct additional residential house in future. The reason the land plot is called residential land is that the land was allocated to the family to construct a house and live there. However, the red area is currently used for agricultural purposes only. It should be noted that the red area is already located within the safety zone of existing 35 kilovolt transmission line and is under restriction for construction of a residential house (blue line in Figure 2.3). This existing 35 kilovolt line will be removed and new 220 kilovolt transmission line will be constructed instead. Figure 2.3. Impact on the Land Plot of AH1 26. The total area of land plot of the AH2 is 0.3 ha. The total area under impact is about 0.15 ha or 50%. The area under impact is highlighted in red color. This red area will be located inside the legally mandated safety zone of the new transmission line. The red area includes only an orchard land with growing trees. During the project works trees are expected to be damaged. AH2 can reuse the entire affected area and continue planting crops in the red zone after the project is completed. Also, trees may be allowed for planting in the red zone if they will not hinder the operation and maintenance of the new transmission line. This issue will be verified by the NEGU engineers who will give their expert opinion on this matter. The area which is highlighted in green color is outside the safety zone of the new transmission line. The green area includes orchard land with growing trees and a temporary residential structure. The green area includes a site prepared for construction a residential house. Currently nobody lives on this land plot. The family of AH2 now lives outside this land plot and plans to settle to this land after a new house is constructed in the future. 27. The green area which is outside the safety zone of the new transmission line is sufficient to construct additional residential houses in future. The reason the land plot is called residential land is that the land was allocated to the family to construct a house and live there. However, the red area is currently used for agricultural purposes only. It should be noted that the red area is already located within the safety zone of existing 35 kilovolt transmission line and is under restriction for construction of a residential house (blue line in Figure 2.4). This existing 35 kilovolt line will be removed and new 220 kilovolt transmission line will be constructed instead. Figure 2.4. Impact on the Land Plot of AH2 9

25 28. The total area of land plot of the AH4 is 0.15 ha. Total area under impact is about 0.06 ha or 40%. The area under impact is highlighted in red color. This area will be located inside the safety zone of the new transmission line. The red area includes agricultural land, some trees, a basement (for residential house) constructed several years ago and some auxiliary facilities. During the project works trees, existing basement, auxiliary facilities, and crops may be damaged. AH4 can reuse the entire affected area and continue planting crops in the red zone after the project is completed. Also, the auxiliary structures may be left in the red zone if these will not hinder the operation and maintenance of the new transmission line. This issue will be verified by the NEGU engineers who will give their expert opinion on it. Otherwise, they need to be relocated to the area highlighted in green. The area which is highlighted in green color is outside the safety zone of the new transmission line. The green area includes a residential house, agricultural land, a basement for a new house and some auxiliary facilities. The green area has sufficient area to construct additional residential house in future. The reason the land plot is called residential land is that the land was allocated to the family to construct a house and live there. However, the red area is currently used for agricultural purposes only. The family of AH4 lives in the residential house located in the green area (Figure 2.5). Figure 2.5. Impact on the Land Plot of AH4 10

26 29. During a discussion with the AH3, the head of the household expressed his preference to have a new land plot not far from the affected residential land plot. The AH was informed that NEGU would do its best to arrange allocation of new land plot in the location nearest to the affected land plot. At this moment, a potential new land plot was not selected because the location might change during the detailed design of the project. After confirmation of this land plot acquisition based on detailed design new land plot allocation will be discussed with the local government offices to allocate a new land plot at the location nearest to the affected land plot. Since it may take long to build a new house for the relocating household, the cost of temporary renting of accommodation as well as transition cost will be covered by the project as mentioned in detail in section 9 and is included in the budget. 30. Impacts on crops and trees during the construction period is expected for all AH1 and AH2, and a shed of the AH1 may be damaged, as stated above. There will be no damage on the dwelling house of the AH4 which is located outside of the safety zone. A restriction to build dwelling structures in the safety zone of the transmission line will be established for all 4 AHs. Figure 2.6. Dwelling house of AH3 31. The plot of the AH1 is located close to the transmission line RoW but there are no dwelling structures within the safety zone. However, there will be a possible damage to a shed and some trees located on this plot. The AH4 has a basement constructed several years ago. The basement was originally planned for the construction of a dwelling house and due to the project it cannot be further used for the construction of a dwelling house because the basement will be located in the safety zone of the transmission line (Figure 2.7). Figure 2.7. AH4 - Restriction to build additional living house) 11

27 32. In accordance with the Resolution of the CoM 1050 the land area within transmission line buffer corridor shall not be acquired from land users, including lease holders and tenants. After completion of the construction works safety zone does not restrict normal farming activity, such as, cropping, harvesting, grazing, plowing. Residential dwellings and some earthworks - primarily around the foundations of the transmission towers would be restricted. 33. Other non-residential and not major structures such as milking sheds, storerooms, toilets etc. located within safety zone may be allowed if they do not cause trouble to normal operation, maintenance & emergency repair of the transmission line and after technical review and no objection of NEGU. Also, agricultural and other types of businesses can continue their activities within the safety zone by following the norms in the Resolution of CoM#1050. Planting of fruit and other trees under the transmission line is also possible, if the height of trees is not more than 4 meters (tops of the trees are the subject of regular monitoring and cutting). Thus, the 3 AHs will not be provided with alternative land plot due to restrictions prescribed by the law. However, they will be able to continue with their agricultural activities on the affected land after the stringing activity and they can construct house structures on other parts of their land plots which are outside the safety zone. For their loss of income, they are entitled to compensation ("loss of profit") for the duration of the project works, as proposed in the entitlement matrix. In addition, they will receive a one-time assistance equal to three times of minimal wage for one month. Minimal wage is 679,330 UZS x 3 times = 2,037,990 UZS. This is in consideration of restriction on building housing structures, although they can construct auxiliary structures. As for the AP that requires relocation (AH3), they will receive relocation cost and loss of profit. A transition support is not explicitly mentioned but is included as bundled under other costs and damages incurred due to land acquisition in the entitlement matrix, Line A2 and budgeted accordingly Methodology for Determining the Impact of the Project Census and Inventory of Losses 34. The survey methodology is described in Chapter 3. The potential impacts of the Project was determined through the inventory of losses (IOL), during which exercise all real estate located in the corridors of the line was identified, measured, estimated, and registered, as well as the owners of these properties were established and their place of residence agreed with the local authorities. In assessing potential property losses, the magnitude of the impact on AHs was determined from their sources of livelihood to their productivity. Estimates were made based on the results of the detailed evaluation study/loss inventory and information provided by APs on livelihood sources, income level and ownership of productive assets. Census and inventory losses were conducted from May to October 2020 based on the preliminary route for the transmission line. 12

28 2.3. Construction of Power Transmission Towers 35. In accordance with the results of the technical requirements provided by the design institute, the approximate number of power transmission towers is calculated at 1250 that includes 504 in Sirdarya province and 746 in Djizzak province. The towers will be erected at a distance of meters Permanent Land Acquisition for Power Transmission Towers 36. Totally, 64 privately owned farm enterprises in Sirdarya province and 134 in Djizzak province are expected to be under permanent impact due to installation of power towers. Total area to be expected under permanent impact is 2.65 hectares including ha of agricultural lands and ha of orchards land. Details are given in Table 2.2. Based on the presentation in Table 2.2, it is confirmed that the quantum of permanently affected land in all cases in Sirdarya and Djizzak provinces is a fraction of 1% of the total land holding size of the farms. Therefore, the impacts are not significant. Table 2.2. List of farm enterprises and scope of permanent impact # Farm Enterprise Total land holding, ha Permanent Impact (ha) Sirdarya Province Including Agricultural land Orchards % of total land holding 1. Okibat Chorva Nurobod Boglari Fayzi Abdurashid Hoji Dalasi , Shuhrat Kamolot Chavondoz Shabbona Umarhon Muborak Chorvachilik Hayrulla Asadbek Ismoil Hayrulla Ota Fayzli Boglari 11. Farhod Kelajagi Avazbek Mamurov Sardor Rahimjon Bahodir Abdurahmonovich 15. Asadbek Mamatkulov Kosim Nematulla Boitov Elmurod Bogi Tura Ota Zayniddin Mirzabek Jasmin Guli Jilosi Abdugaffor Tillaboev Farhod Samo Boglari Sharofiddin Hidirovich Mamurjon Omonboevich 26. Apilak Kungirot Ugloni

29 # Farm Enterprise Total land holding, ha Permanent Impact (ha) Including % of total Agricultural land Orchards land holding Nurmuhammad 28. Ibrohimovich Sharkobod Jilvasi Kuklam Kurki Joziba Elyor Ugli Aslbek Bunyodkor Havaskhon 33. Sarojlik Begzod Goibnazar Ugli Sobir Imomov Otabek Soibnazarov Shukhrat 37. Raimkul Ota Eshkulov Abdulhay Farhodobod Nurbek Tillaboev Obodlik Turmush Tolibbek Polvon Mamurbekov 43. Azizobod Jonobul Shodmonov Abdurashid Boglari 46. A.Boshmonov Orzigul Holikova Dilbar Soatovna 49. Al Jamshid Hazratkul Nazirkul Jonibek Hurshid Dustlik 52. Karshiboev Begzod Turkistondagi Bog Korli Tog Kurki Muso Norkulov Razzokov Temurbek Hovos Shukronalik Berdibek Ota Havos Aziz Chorvo Havoslik Temurbek Chorvosi 62. Obod Ulka Hosili Kuk Bulut Havos Dalalari Subtotal Djizzak Province 65. Berdiyorov Yorkin Kudratov Davlatbek Miromon Mir Juma

30 Total land holding, ha Permanent Impact (ha) Including % of total land holding # Farm Enterprise Agricultural Orchards land 68. Karshiboev Jamshid Ayubjanov Jahongir Zamira Bog Maydoni Abdunabiev Hurshid Zomin Gold Fish Jizzakh Organik Alfa Invest Rustam Mirabror Ugli Mirbahrom 76. Korabayir Shulpon Shuhrat Uktamhon Goybar Nasldor Chorvasi 79. Sangirov Hamid Temurbek Chorvalari Forovon Eksport Mamadaliyev Yorkin Kosimjon Shahobjon Mamurov Gayrat Animal Gren Food Hayot Sukmogi Suvli Sardoba Bogi Jaloir burisi Hujakulov Nurbek Yovkiron Achchi Hosildor Navruz Zamin 92. Beksulton Hoshimbek Zarrada Ziyo Rivoj Davri Shavkat Erbutaev Uch Alp Maydoni Mamarajab Nizomiddin Dalasi Rohila Unumdor Dalasi 99. Zafarsoy Yuli Sobir U Gren Agro Barat Fahri Galaba Gallakori Hosimov Ozodbek Namuna Okar Yuksak Harvest Sardor Abbosbek Farhod Asl Sabzavoti Baraka Ziyo Nur Great Harvest Ikrom Rejasi

31 # Farm Enterprise Total land holding, ha Permanent Impact (ha) Including % of total land holding Agricultural Orchards land Fayozbek Shahrambek 113. Okarlik Bek Zarbdor Eksport Shajara Zanjiri Elegant Pahtazori Bik Oltinsoy Invest Klaster 118. Bekmurod Gallakori Nurafshonlik Fermer Fidokor Firdavs Agro Kayzen Mega Shunkor Behruzhuja Dalasi Fabo Nurafshon Servis Biznes 126. Nur Sara Don Sadokat Umidi Saitkul Davoni Shark istikboli Unumli dala sari Barakali manzil Yuksak Tulkin Abduvohidjon Abduvositjon 134. Agro Gren Zarbdor Fidokor Sarvar Zarbdor of Rechar Polvon Boychibori Gulsevar Chamani Yangi Namuna Pahtazori 140. Shohruz Gallazori Buyuk Intilish Istikboli Nurli Hayot Dalasi Kurbon Davoni Shijoatli Alihan Dalasi Yaz Begzod Begzod Naslli Mollari Shoh Oga Islomjon Okburaev Hasan Isokovich 149. Hon Saroy Bek Zafar Ezoza Ohunjon S Javlonbek Holmurodov Karim Uch sada niholi Botir Kilich

32 Total land Permanent Including % of total # Farm Enterprise holding, Impact Agricultural land ha (ha) Orchards land holding 156. Isok Bobo Murodbek Diyorbek Dalasi 158. Uchkir Jiyron Parvozi Bogi Nur Hosili Hamkor Elita Fays Otabek Tulkin Elmurod Tojinor Ota Bobosher Charos Laziz Laziza Zohida Shudring Bulogi Niyatjon Suvonov Uch Arik Tarovati Shavkat Sarobek Bobo Terakzor Chashma Obod Makon Ok Yul S-Fayzikul Bobo Yahtanlik Tarovati Buronov Sunnat Norkuziev Sukhrob Nurafshon Zamin Jilosi 180. Yuksak Samo Golden Fayz Hosili Kili Chamani Bakhmal Chorvasi Diamond Dala Khosili Tomchi Jilosi Kulpisar Osmoni Kulpisar Kumush Tola 188. Abdunazarov Akmal Firdavs Golden Hirmoni 190. Begzod Elbek Nurzod Shodiyor Asl Chorvolari 193. Belamur Baligi Sher Agro Eksport Gigant Kuyon Zotlari Subhidam Baraka Nur 197. Kapital Uzum Servis Gold Grount Subtotal:

33 Total land Permanent Including # Farm Enterprise holding, Impact Agricultural ha (ha) Orchards land TOTAL Temporary Impacts When Stringing Power Transmission Lines % of total land holding 37. Temporary impacts are expected during the implementation of the project due to the need for temporary access of vehicles that will deliver finished steel structures, equipment, cables and engineering support systems, as well as construction materials to work sites. The actual required area for temporary needs will be based on specifications prepared at the detailed design stage. The TL project requires temporary placement corridor width of 30 meters during the period of stringing power lines. The time frame for the temporary requirement of vehicle access in any given section does not usually exceed several days. Table 2.3 shows the province-wise details of temporary land requisition. # Farm Enterprise Table 2.3. List of farm enterprises and scope of temporary impact Total land holding, ha Temporary Impact, ha Including, ha Agricultural lands Orchards % of total land holding Sirdarya Province 1. Okibat Chorva Nurobod Boglari Fayzi Abdurashid Hoji Dalasi Shuhrat Kamolot Chavondoz Shabbona Umar Arhan Muborak Chorvachilik Hayrulla Asadbek Ismoil Hayrulla Ota Fayzli Boglari 11. Farhod Kelajagi Avazbek Mamurovich Sardor Rahimjon Bahodir Abdurahmonovich 15. Asadbek Mamatkulov Kosim Nematulla Boitov Elmurod Bogi Tura Ota Zayniddin Mirzabek Jasmin Guli Jilosi Abdugaffor Tillaboev Farhod Samo Boglari Sharofiddin Hidirovich Mamurjon Omonboevich Apilak Kungirot Ugloni Nurmuhammad Ibrohimovich 29. Sharkobod Jilvasi

34 30. Kuklam Kurki Joziba Elyor Ugli Aslbek Bunyodkor Havaskhon Sarojlik Begzod Goibnazar Ugli Sobir Imomov Otabek Soibnazarov Shukhrat Raimkul Ota Eshkulov Abdulhay Farhodobod Nurbek Tillaboev Obodlik Turmush Tolibbek Polvon Mamurbekov 43. Azizobod Jonobul Shodmonov Abdurashid Boglari 46. A.Boshmonov Orzigul Holikova Dilbar Soatovna Al Jamshid Hazratkul Nazirkul Jonibek Hurshid Dustlik Karshiboev Begzod Turkistondagi Bog Korli Tog Kurki Muso Norkulov Razzokov Temurbek Hovos (Kobilov Halim) Shukronalik Berdibek Ota Havos Aziz Chorvo Havoslik Temurbek Chorvosi 62. Obod Ulka Hosili Kuk Bulut Havos Dalalari Norbuta Nabijon Subtotal Djizzak Province 66. Berdiyorov Yorkin Kudratov Davlatbek Miromon Mir Juma Karshiboev Jamshid Ayubjanov Jahongir Zamira Bog Maydoni Abdunabiev Hurshid Zomin Gold Fish Jizzakh Organik Alfa Invest Rustam Mirabror Ugli Mirbahrom Korabayir Sholpang

35 78. Shuhrat Uktamhon Goybar Nasldor Chorvasi Sangirov Hamid Temurbek Chorvalari Forovon Eksport Mamadaliyev Yorkin Kosimjon Shahobjon Mamurov Gayrat Animal Grem Food Hayot Sukmogi Suvli Sada Bogi Jaloir burisi Hujakulov Nurbek Yovkiron Achchi Hosildor Navruz Zamin Beksulton Hoshimbek Zarrada Ziyo Rivoj Davri Shavkat Erbutaev Uch Alp Maydoni Mamarajab Nizomiddin Dalasi 99. Rohila Unumdor Dalasi Zafarsoy Yuli Sobir U Gren Agro Barat Fahri Galaba Gallakori Hosimov Ozodbek Ozodjon Siddik Bogi Namuna Okar Yuksak harvest Sardor Abbosbek Farhod Asl Sabzavoti Baraka Ziyo Nur Great Harvest Ikrom Rejasi Fayzbek Shahrambek Okarlik Bek Zarbdor Eksport Shajara Zanjiri Elegant Pahtazori Bik Oltinsoy Invest Klaster 120.Bekmurod Gallakori Nurafshonlik Fermer Fidokor Firdavs Agro Kayzen Mega Shunkor Zamin Behruzhuja Dalasi Fabo Nurafshon Servis Biznes Nur Sara Don

36 129 Sadokat Umidi Saitkul Davoni Shark Istikboli Unumli Dala Sari Barakali Manzil Yuksak Tulkin Abduvohidjon Abduvositjon 136 Agro Gren Zarbdor Fidokor Sarvar Zarbdor of Rechar Polvon Boychibori Gulsevar Chamani Yangi Namuna Pahtazori Shohruz Gallazori Buyuk Intilish Istikboli Nurli Hayot Dalasi Kurbon Davoni Shijoatli Adham Yaz Begzod Begzod Naslli Mollari Shoh Oga Islomjon Okburaev Hasan Isokovich 151.Hon Saroy Bek Zafar Ezoza Ohunjon S, Javlonbek Holmurodov Karim Uch sada niholi Botir Kilich Isok Bobo Murodbek Diyorbek Dalasi 160.Uchkir Jiyron Parvozi Bogi Nur Hosili Hamkor Elita Fays Otabek Tulkin Elmurod Tojinor Ota Bobosher Charos Laziz Laziza Zohida Shudring Bulogi Niyatjon Suvonov Uch Arik Tarovati Shavkat Sarobek Bobo Terakzor Chashma Obod Makon Ok Yul S-Fayzikul Bobo Yahtanlik Tarovati

37 179 Buronov Sunnat Norkuziev Sukhrob Nurafshon Zamin Jilosi Yuksak Samo Golden Fayz Hosili Kili Chamani Bakhmal Chorvasi Diamond Dala Khosili Tomchi Jilosi Kulpisar Osmoni Kulpisar Kumush Tola Abdunazarov Akmal Firdavs Golden Hirmoni Begzod Elbek Shodiyor Asl Chorvolari Belamur Baligi Sher Agro Eksport Gigant Kuyon Zotlari Subtotal: TOTAL Loss of Trees and Forestry Vegetation 38. Along with the above-mentioned impacts due to construction of power transmission lines there may be loss of trees and forestry vegetation. It should be noted that the transmission line will pass through one protected zone in Sirdarya province - the state owned Yangiyer Nursery of Wood Vegetation. Here grow trees which are used as the main planting material in landscape construction. Also, on territories of residential quarters and along streets in project areas there are such trees as platanus orientalis, fraxinus exelcior, catalpa speciosa, populus alba, plane tree, poplar, ailanto, ash, maples, sophora, etc. that may be affected. Transplantation or felling of trees will take place only within the sanitary protection zone of power lines. The number of trees to be affected by the construction works will be calculated in the next phase of the project. However, by virtue of being state owned, the tree felling will not be compensated by the LARP although, the environmental management plan of the project has proposed appropriate environmental action. The affected privately owned trees will be compensated. 39. Due to the fact that during the construction of the 220 kv HV line tree-felling may take place, after the completion of the works there will be a compensation planting of trees. Compensation planting will be undertaken based on the number of trees to be removed and using an appropriate re-planting ratio as recommended by the relevant country laws On Protection and Use of Flora 543-I dated , Law On forest No. 770-I dated ; Resolution of the Cabinet of Ministers On Regulation of the Use of Biological Resources and Procedure for Licensing Procedures in Environmental Management 290 dated ; Resolution of the Cabinet of Ministers On Approval of Certain Legal Texts for Protection of Forests No. 506 dated This matter is addressed in the project s environmental management plan (EMP). Translocation of existing individuals may also be considered, and suitable protection will be provided to protect them from grazing Severity of Impact 40. The data analysis shows that the affected persons will not experience much impact due to permanent land acquisition, as in percentage terms the impact is a maximum of 0.376% and a minimum of 0.001%, and a fraction of 1% in all cases (details above in Table 2.2). Hence, there is no severity of impacts in the project. The temporary requisition of land, depending on the time of the year when the project construction works take place, may be 22

38 able to avoid affecting the agricultural activities. However, 1 household will lose its residential structures due to mandatory relocation for safety reasons and not for land acquisition Legal Status of Land Tenure 41. Consultations with the affected households and the local administration show that all AHs legally occupy all the land that will be required for the project. As the country does not offer private land ownership, legal landholding is lease-based, typically for up to 50 years but, as the government periodically redistributes land under an optimization program, the lease period may be reduced Unanticipated Impacts 42. Apart from the marginal loss of agricultural land due to permanent land acquisition and the loss of housing structures of 1 household for safety reasons, no impacts on other structures and community facilities have been identified in this draft LARP. Along the 142 km RoW within the territory of farms fields there are about 13 structures found that will be further situated within the safety zone of the TL. All of them were checked and it is confirmed that there are no dwelling structures among them. These are mostly used for drainage pumping stations and small sheds used by farmers to store agricultural tools/implements. There will be no impact on these structures during the civil works period. However, if such impacts are identified during the LARP updating, the provisions of the entitlement matrix in the approved LARPs under Loan 3285 will be used to address such impacts. 23

39 3. SOCIO-ECONOMIC INFORMATION AND PROFILE 43. This section contains the results of a socio-economic study conducted in the local communities along the 142-km project corridor with the goal of understanding the existing socio-economic conditions as well as the vulnerability of people and families potentially affected in the study areas. The purpose is to establish a baseline for resettlement monitoring Field Methodology 44. After obtaining the necessary location information, marking up fields and profile drawings, field work was carried out to generate data for preparing this draft document. The field methodology consisted of 100% of census and inventory of losses (IOL) of 203 potentially project affected households (AH) as well as a sample socio-economic survey (SES) covering 60 (30%) households which are under both permanent and temporary impact. The sample size of 60 households is randomly arrived at, for which complete data were generated by NEGU. The SES consisted of interviews, consultations, and discussions with members of AHs in Djizzak province. A. Socio-Economic Profile 3.2 Affected Households 45. The number of affected households in the provinces which are under temporary and permanent impact are given in Table 3.1. It is noted that most households are both permanently and temporarily affected in that, while they permanently lose a fraction of 1% of their land holding, they will also be temporarily affected for several days during the project construction. Province Number of Households under both Permanent and Temporary Impact Table 3.1. Affected Households Number of Households under Permanent and Temporary Impact due to Application of TL Safety Zone Restrictions TOTAL Sirdarya Djizzak Total Affected Persons 46. The total number of affected persons of the 60 sample households under both permanent and temporary impact for which SES was carried out include 378 APs. The total number of male APs are 200 (53%) and the total number of female APs are 178 (47%). The average family size of the sample affected households is 6.3 persons. Ethnically 100% of the APs are the Uzbeks. Component-wise distribution of male and female APs are shown in Table 3.2. Permanent and Temporary Impacts 3.4 Vulnerable Households Table 3.2. Details on Affected Persons Average family size (Total) Male (%) Fem. (%) Total (%) Male Fem. Total The approved LARPs of the ADB Loan 3285-UZB defines vulnerable groups as distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically, include: 24

40 (i) female-headed households without support, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support. 48. The socio-economic details of the affected households show that there are 8 households that fall under the category of vulnerability, as defined in ADB s SPS. The national legal texts, however, do not use the term vulnerable household. Instead, the term low income family is used. The 8 AHs which fall under the low-income family category as defined by the Government of Uzbekistan are based on several poverty and social criteria. A national level poverty line, the subsistence level, and methodology for estimating the indicators have yet to be established by the national legislation in Uzbekistan. According to the existing methodology in Uzbekistan the low-income families are classified by makhalla committees as households where the monthly per capita income is less than the equivalent of 52.7% of minimum wage. On 30 December 2019, a Presidential Resolution No. PP-4555 was adopted titled About Implementation Measures of the Law of the Republic of Uzbekistan About State Budget of the Republic of Uzbekistan for the year This resolution fixed the minimum monthly wage in the amount of UZS 679,330 per month per person, applicable since 1 February Accordingly, the determined poverty line is UZS 358,007 per month per person (approximately US$ 1.25 per capita per day). 3.5 Occupation Pattern of the Affected Persons 49. Agriculture is the primary occupation of members of the sample affected households. Totally 122 persons (32.3%) are involved in agriculture. Children who attend schools are the second major group. Totally 80 persons (21.1%) attend schools. The third major group is housewives. Totally there are 56 housewives (14.8%). The next group comprises children who attend kindergartens or stay home. The number of members of this group is 47 or 12.4% of the total number of sample APs. The next ranked groups are: people involved in government jobs 25 people (6.6%), students 19 (5%), pensioners 17 (4.5%), unemployed 7 (1.8%) and people involved in private work 5 (1.3%). Details of occupational pattern of the sample affected persons are given in Table 3.3. Table 3.3. Occupation Pattern of Affected Persons Occupation Number % of Total Agriculture % School pupils % Housewives % Attending kindergartens % Government jobs % Students 19 5 % Pensioners % Unemployed % Private works % Total % 3.6 Monthly Income and Expenditure of Affected Households 50. The socio-economic study gathered the average monthly household income and expenditure of the affected households and worked out family-wise monthly per capita income of each of these families. According to this information, the average monthly income is homogenous among the affected households. The average monthly income of the sample affected households is 5,139,615 UZS and the average monthly expenditure per household is 25

41 3,298,077 UZS. Average monthly per capita income of a family is 1,083,641 UZS which is three times more than the family poverty line equal to 358,006 UZS as per the resolution of the government #44 dated which describes low-income family as the family with average per capita monthly income less than times of monthly minimum wage rate (679,330 UZS at the current rate). However, the SES shows 8 families whose monthly per capita income is less than 358,006 UZS. The low-income family issue has been addressed in the entitlement matrix. However, these families are already being assisted by the government under the country s relevant laws; so, no duplication of assistance is required. The LARP updating exercise will establish the number of low-income families (vulnerable households) through the census exercise for capturing information on all such families. A summary of average annual income and expenditure composition of the sample population is shown in Table 3.4. Table 3.4. Annual Income and Expenditure Information Average Monthly Income, UZS Average Monthly Expenditure, UZS Average Monthly Per Capita Income of Familiy 5,139,615 3,298,077 1,083, Education Status of the Sample Affected Persons 51. Most of the affected persons have a secondary school degree comprising 235 persons which make 62.1% of total affected persons. The number of affected persons with a university degree is also significant, 63 persons which is 16.7% of total number. The number of affected persons with pre-school degree is also 54, which is 14.3% of the total number of the sample affected persons. APs with a college degree is the smallest group equaling to 26 people or 6.8%. Various educational levels of the affected persons are shown in Table 3.6. Table 3.5. Educational Level of the Affected Persons Description Number % of total Pre-school Secondary school College University/Institute Total % 3.8 Age Structure of the Affected Persons 52. Age structure analysis shows that the persons between is the major group among the affected persons (29.3%) followed by the age group of (20.3%). The third major group is the age group of which makes up 20%. The two groups from 26 to 65 which are considered economically active make up 49.6% of the total number of affected persons from the surveyed 60 households. Details of age structure of affected persons is given in Table 3.8. Table 3.6. Age structure of affected persons Age group to TOTAL Number of APs % of total 12.3 % 15.3 % 20 % 29.3 % 20.3 % 1.8% 100% 3.9 Women s Issues 53. Women have been considered as an integral part of the stakeholders and made aware about the project and due participation for women was ensured during the consultations. The 26

42 project will pay particular attention to ensure that women are the recipients of the compensation pertaining to their activities and to ensure that women who are de-facto household heads are clearly listed as beneficiaries of compensation and rehabilitation proceedings under the loan. Special attention will be given to the impact of resettlement on women and other vulnerable groups during monitoring of the LARP implementation. During the project construction, if a female headed household is identified as affected, it will be considered as vulnerable and additional assistance as outlined in the entitlement matrix will be applicable. 27

43 4. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 4.1. Consultations 54. In order to engage with the community and enhance public understanding about the project and address the concerns and issues pertaining to the proposed project compensation, rehabilitation and relocation, individual interviews, focus group discussions (FGD) and meetings were undertaken as part of the consultations with the affected persons and the relevant farmers in the project area. These were carried out during the preparatory activities for the project. The opinion of the affected persons, community and their perceptions were obtained during these consultations. The consultations with the affected persons and other stakeholders will continue through the LARP updating and implementation period. 55. The consultations were carried out to: (a) identify and assist AHs in addressing issues related to the preparation and implementation of the LARP; (b) obtain data on AHs preferences regarding the type and method of making compensation; (c) inform AHs and APs of the completion date of the LARP; and (d) minimize AHs concerns and ensure transparency of LARP activities. Information about consultations and participants is summarized in Table Table 4.1. Information on Public Consultations Meetings Location of consultations meetings Sirdarya province. Yangier city. Yangiyer district hokimiyat Djizzak province. Djizzak city. Djizzak province office of NEGU Date Number of participants February 26, February 27, Totally, more than 80 people participated in the well-publicized public consultations in the two project provinces. The list of participants included representatives of local communities to be covered by the project, including heads of makhallas, citizens, representatives of NGOs, farmers to be affected, etc. Representatives of local government bodies, such as, local hokimiyat, environment department, cadaster department and others attended the consultations. 57. During the consultation meetings, local community members and APs raised important issues, including questions/requests related to land acquisition and resettlement, as well as compensation. Table 4.2 presents the main questions raised and the answers provided to these questions. Attendance lists of the meetings as well as photos of the events can be found in Appendix 2. Table 4.2. Key Issues Addressed During the Consultation Key questions raised Clarifications / answers 1 2 Will there be an increase in the impact on the atmospheric air due to increase of the power plant capacity? Has the project made any calculations on this issue? Yangiyer nursery of timber vegetation is located on the way of the project transmission line. Some towers of existing power lines already exist on the territory of the nursery. During the construction of the Environmental expert participated in the public consultation and commented on this issue. When drawing up the project, the necessary calculations were made which show that when the capacity of the TPP is increased emissions of pollutants into the air will increase, but at the same time they will remain within the permissible concentration. Also, the results of the calculations were shown in the presentation. Conditions of construction of transmission lines according to the national regulations had been explained. 28

44 Key questions raised Clarifications / answers new line will trees be felled to install new towers? The distance between transmission line towers is too long and the wires are very saggy. There was an accident in A young man who worked on a combine harvester in a field died from electric shock. Farmers work 4 seasons a year. They always carry out sowing works under or around transmission line. Transmission lines are serious threat to agricultural workers' lives. Is it possible to reduce distances between towers? Heavy machinery will pass through farmlands during construction works. As a result, soil quality will deteriorate due to heavy weight of machines. Lands become very hard. What measures will be taken to prevent land degradation? Local roads will be damaged by construction vehicles. Children can also suffer in accidents with vehicles. Farmers must be notified of the start of the project works because they will start sowing wheat. They should be informed about: - the area of land to be affected, - terms of construction works. The second proposal. Contractors may not be familiar with the land structure. If construction workers will work in winter they may prevent the land from being washed out of salt, resulting in soil degradation and loss of crops. Therefore, farmers participating in the meeting suggested that the time of construction works should be agreed with the farmers on whose territory transmission lines will pass. There are many stork nests on power towers along the transmission lines. The presentation provided information on equipment to protect birds. In most cases, simple bird protection equipment sometimes The construction of tower lines is based on the national standards. In accordance with the Resolution of the Cabinet Ministers 93 dated , if the power supply facility is located on land of land users such land users must coordinate their activities with owners of power supply facilities. In accordance with paragraph 18 of this resolution, the following works are prohibited on the safety zones of power supply facilities without written permission of NEGU: implementation of any kind of mining, loadingunloading, dredging, blasting, land reclamation works, planting and cutting trees and bushes, locating field camps and shelters for cattle, installing wire fences, tapestries for vineyards and orchards as well as irrigation of agricultural crops. A representative of NEGU PMU who participated at the public consultations answered this question. The construction works are short-term and will not be conducted during the sowing or harvesting period. Entrance to the territory of agricultural lands will be carried out with the permission of heads of farm enterprises. According to the contract with a contractor, the contractor is obliged to carry out improvement of disturbed lands after completion of construction works and installation of towers. Road condition surveys will be undertaken prior to the start of construction and all roads will be rehabilitated at least to their previous condition after completion of project works. Traffic management plans and community health and safety plans will be prepared and implemented by contractor to help reduce the risk of accidents. It was assured that the farmers would be notified before the start of the construction works. The proposal was fixed in the meeting protocol and will be submitted to the NEGU. It would be desirable if this proposal is received from farmers in writing, indicating the terms of construction works, which will not cause damage to the farms. A number of measures have been included in to the IEE, including measures to prevent electrocution. 29

45 Key questions raised Clarifications / answers 8 9 cannot protect birds. It is necessary to install more modern bird protection equipment to achieve good results. What type of protection equipment will be installed on transmission lines? Can you tell or show which part of the agricultural land will be included? When will construction works start in project areas? I think that informing and agreeing with farmers on the terms of construction will reduce losses of crops and income Disclosure of Information Representatives of the NEGU have a Google map with indication route of transmission line. At the end of the public consultations, the map was reviewed jointly with the farmers in attendance. At this moment, a design for the construction of transmission line route and substation is being developed. Development of all design documentation, including documents for payment of compensations will be completed approximately by November We will notify all farmers in advance about the start of construction works. It should be noted that construction works are planned to be carried out after harvesting of crops. 58. A promulgation meeting explaining the final LARP will be organized for all AHs and relevant government organizations during the LARP updating and finalizing phase. The organized meeting will bring together all interested parties in order to explain and answer in detail all the questions raised, unresolved or emerging. A local language information brochure will be distributed to all APs, relevant agencies and organizations during the publicity meeting. An English version of the information brochure is included as Annex 3. The information brochure will describe the project information and land requirements for the project, the payment matrix, as well as the grievance redress mechanism and the schedule for the implementation of LARP. This draft LARP as well as the updated, final LARP will be posted on the website of NEGU (in the local language) and ADB (in English) after concurrence and approval by ADB and NEGU, respectively. 30

46 5.1. General 5. GRIEVANCE REDRESS MECHANISM 59. Consultation meetings were carried out with relevant stakeholders, including cadastral office, land use engineer, design engineers, transmission line operators of the project. As a result of discussions and consultations, a simple Grievance Redress Mechanism (GRM) is developed for the AHs who may have complaints or questions during the LARP implementation, and the project construction works. 60. The PMU through NEGU offices in Sirdarya and Djizzak provinces and contractors will establish a simple and accessible grievance redress mechanism which ensures some instruments and levels for grievance resolution and appeals process. PMU s Safeguards Specialist, through a representative of the NEGU offices on the site will carry out monitoring of the LARP implementation and GRM. Thus, the same system will be applied in this project. 61. The primary goals of GRM are ensuring the receipt and timely redress of grievances and concerns submitted by the aggrieved project affected persons and resolve complaints at the project level and prevent escalation to the national courts or ADB Accountability Mechanism. 62. The project area people will have the right to file complaints and queries on any aspect of land acquisition, compensation, and resettlement. The PMU will ensure that grievances and complaints on any point of the project implementation during the construction works are addressed in a timely and satisfactory manner Existing complaint handling mechanism in Uzbekistan 63. The existing complaints handling mechanism in the country is governed by the relevant law, according to which complaints can be submitted to makhalla, village assembly of citizens, farmer councils and, in the case of the project, directly to EA and Sirdarya/Djizzak office of NEGU. Local office of NEGU is the entry point for receiving a complaint, known as a Grievance Focal Point (GFP). Upon receipt of a complaint, the GFP will establish contact with the PMU, makhalla and other relevant bodies. The PMU will establish a complaint handling team headed by one of the project management staff designated for handling grievances of the project. All complaints will be resolved in 15 days, and in case additional details are required, a maximum of 30 days will be used to resolve and close the complaint. The project level GRM does not prevent any AH to approach the national/government legal system to resolve their complaints at any stage of the grievance redress process. The APs can address their complaints to the courts at any time and not only after using the GRM. AP can also vent their grievances in the ADB Accountability Mechanism. 64. The National law on the appeals of individuals and legal entities4 obliges state authorities to deal with requests and provides a clear framework to handle the case. This law has recently replaced the previous law on the requests of citizens and gives the right for individuals and legal entities to file requests. The requests can be in the form of applications, proposals and complaints and submitted in three ways: oral, written and digital format. 65. Any citizen in Uzbekistan has several channels to air his/ her complaints. Village (or Makhalla) level: - Physical visit to Makhalla Citizens Assembly Office to meet with Chair; - Call to President s Virtual reception (tel. number is 1000 or ) or send message to President s Virtual reception online ( - Call to hotlines established at each district or regional Hokimiyat; - Send written complaint (letter) to district/regional Khokim/ line Ministry/President; 4 The Law of Republic of Uzbekistan on the appeals of individuals and legal entities (# ZRU-378, ). 31

47 - Attend meetings with district/regional Heads of Sectors on integrated socioeconomic development of regions (4 sectors established in each district); - Attend meetings with the leadership of line ministries and agencies that have to regularly meet with citizens in rural areas. If a citizen is not satisfied with the reply provided by Makhalla Chair, or he has received an incomplete response, the citizen can apply to the upper level, specifically to District Hokimiyat. District level: - Physical visit to Hokimiyat on citizens reception days to meet with district Khokim or deputy Khokims - Call to hotlines established in each Hokimiyat - Physical visit to Public reception offices under President s Virtual reception and established in each district nationwide - Call to President s Virtual reception (tel. number is 1000 or ) or send message to President s Virtual reception online ( - Send written complaint (letter) to district Khokim/ line Ministry/President - Attend meetings with district/regional Heads of Sectors on integrated socioeconomic development of regions (4 sectors established in each district) - Attend meetings with the leadership of line ministries and agencies that have to regularly meet with citizens in rural areas If a citizen is not satisfied with the reply provided at the district level, or he has received an incomplete response, the citizen can apply to the upper level, specifically to Regional Hokimiyat. Regional level: - Physical visit to Hokimiyat on citizens reception days to meet with regional Khokim or deputy Khokims - Call to hotlines established in each Hokimiyat - Physical visit to Public reception offices under President s Virtual reception and established in each regional center nationwide - Call to President s Virtual reception (tel. number is 1000 or ) or send message to President s Virtual reception online ( - Send written complaint to a portal of the Ministry of Energy ( - Send written complaint (letter) to regional Khokim/ line Ministry/President - Attend meetings with regional Heads of Sectors on integrated socio-economic development of regions (4 sectors established in each district) - Attend meetings with the leadership of line ministries and agencies that have to regularly meet with citizens in rural areas Proposed project level GRM 66. The AHs will be afforded all possible ways to express their dissatisfaction at the project implementation stage, if any. As part of the proposed grievance redress mechanism, the AHs may appeal any decision, practice or activity related to land or other property valuation, allotment and compensation. 67. All AHs will be informed of the procedures that they can use to resolve complaints. Information on the project level GRM will be distributed through the LARP information brochure, which will be distributed to the AHs through the hokimiyat, mahalla or village gathering of citizens or the farmers association. 68. The PMU will create a simple mechanism for handling and resolving complaints. The GRM provides a range of ways and methods for resolving complaints and conducting appeals processes. The main objective of the project complaints handling and resolution mechanism is the timely and convenient project level process for AHs resolution of complaints received 32

48 from them. However, the grievance redress mechanism does not prevent AHs from accessing the country s legal system at any stage of the grievance redress process. AHs can submit complaints to the courts at any time and not only after using the GRM. The following is a brief description of the GRM process. 69. Level 1 (Mahalla/Rural Assembly). According to the grievance redress mechanism, complaints can be submitted to the mahalla, rural gathering of citizens, the council of farmers or directly to IA. Mahalla/Rural gathering will try to resolve the complaint within 15 days. Unsolvable problems will be submitted to the contact person of the next level of the GRM process. 70. Level 2 (National Electric Grid of Sirdarya and Djizzak provinces). National Electric Grid of Sirdarya and Djizzak province offices will be the place to receive complaints, acting as the GRM. These offices will contact the mahalla and local organizations such as the rural gathering of citizens, the council of farmers of which AH is a member and will try to resolve the issue within 15 days. 71. Level 3 (Project Management Unit). The PMU will regularly (every week) and upon request, ask the NEGU regional offices in Sirdarya and Djizzak provinces about complaints. Upon receipt of an unresolved complaint from the NEGU regional offices, the PMU will immediately take the following actions: (i) Inform the applicant within five days the status of the complaint resolution; (ii) Inform the ADB headquarters and representative office; (iii) It will create a complaints handling group including the head of PMU, representatives from NEGU, the district hokimiyat, the cadastre and land administration, the mahalla or rural community of residents and/or the farmers' association and/or women's associations. 72. The team will be led by a senior PMU staff member appointed to manage project complaints (i) The group will advise the plaintiff and collect information about the plaintiff's questions; (ii) The panel will also engage independent appraisers (in the case of complaints in need of evaluation); (iii) All complaints will be examined within 15 days, and if additional information is needed, the consideration and resolution of the complaint will take a maximum of 30 days; (iv) If the complaint cannot be resolved by the project complaint review team, the PMU will inform ADB and the District hokimiyat about this. 73. Level 4 (Provincial Hokimiyat). If the complaint is not resolved within 30 days, the plaintiffs or their representatives can submit their complaint to the Provincial Hokimiyat. The hokimiyat has 15 days to resolve the complaint. 74. The PMU will be responsible for registering complaints, taking steps to resolve the problem, recording the meetings, and preparing a report for each complaint. The report on the complaints process will be submitted to ADB through the quarterly report on the implementation of the project as well. The entire GRM process is a subject matter of the semiannual resettlement monitoring reporting. 33

49 6. LEGAL FRAMEWORK 75. This section describes the laws and regulations of Uzbekistan on land allotment and resettlement, as well as ADB policies and principles on involuntary resettlement. The project will be guided by the approved policy framework and standards as provided in the approved updated LARPs from Loan Laws, Regulation, and Provision relating to LAR in Uzbekistan 76. In Uzbekistan, a land expropriation takes place for the State and public needs under the Land Code and other legal documents. The expropriation in this context refers to the taking away of privately used land for a state and public purpose by the government with or without the lease holder s consent subject to laws of eminent domain, which stipulates prompt and adequate compensation. Recent legal documents issued by the Presidential Decrees and the Cabinet of Ministers of Uzbekistan foresee to protect citizen s and legal entities private ownership to land and for the building and structures. Collectively, these regulations provide a sound basis for acquiring land for the State and public purposes and for compensating land users a replacement cost at market values for the affected structures. 77. In Table 6.1 below a summary of the relevant legal documents used in the development of this draft LARP is presented, followed by a detailed discussion of the laws. Table 6.1. Legal instruments applicable for Land acquisition and Resettlement Legal Framework Functional Relationship to Resettlement A Land Acquisition and Resettlement 1 Constitution of the Republic of Uzbekistan Prescribes that everyone shall have the right to own property and an owner, at his discretion, shall possess, use and dispose of his property. 2 The Land Code (LC) dated 30 April 1998 Describes a condition for permanent land expropriation and temporary land acquisition 3 Civil Code (CC) dated on 29 August 1996 Regulates general rules of property seizure, determination of property cost and rights for compensation, terms of rights termination 4 The resolution of CoM On measures to improve the procedure for granting land plots for urban development activities and other non-agricultural purposes dated on 25 May 2011 # Resolution of the CoM Regulation on the procedure for acquisition of land and the provision of compensation to owners of real estate located on the acquired land" 911 of November 16, The resolution of CoM On amending and adding to some decrees of the Republic of Uzbekistan, aimed the further improvement of registration of cadastral document on a real property dated on 21 September 2016 # Presidential resolution On measures to improve the effectiveness of training and realizing projects with participation of international financial institutions and foreign government financial organizations dated on 16 July 2018 #3857. Regulates resettlement compensations for the income loss, the value of agricultural loss belonging to landowners, users, tenants in case of land acquisition. Also, it regulates the provision of land to land compensation in case of agricultural and forest relates losses. Regulates the procedure for the acquisition of residential land plots for state and public needs and compensation payment. It defines the procedure of registration of titled and non-titled land users and real property owners. It also establishes the process and payment method for compensation in case of land acquisition. Confirms that the resettlement costs are paid based on assessment documents prepared by IFI by their methodology. 34

50 Legal Framework Functional Relationship to Resettlement 8 Presidential Order F-5491(3 August 2019) On additional measures to provide unconditionally the property rights of citizens and business entities. 9 The Law of Uzbekistan on Protection of Private property and Guarantees of Ownership rights dated 22 September 2012 # 336. The purpose of this Law is to regulate relations in the field of protection of private property and guarantees of property rights. It regulated the entitlement of property owners to full market value compensation in case of acquisition for the State needs. B Implementation of Land Acquisition and Resettlement 10 Presidential Decree On measures on major Defines that land expropriation can be improvement of the investment climate in the implemented only after meaningful consultation Republic of Uzbekistan" dated on 1 August 2018 with PAPs. The resolution prohibits a land #5495. confiscation without the consent of the Republican Centralized Fund. 11 The resolution of CoM On the procedure for the formation and use of funds of centralized funds for the compensation to affected individuals and legal entities for the expropriation of land for the state or public needs dated 26 December 2018 # The resolution of CoM Additional measures for the implementation of modern and transparent mechanisms of the provision of land plots with long-life inherited possession rights for individual housing dated on 28 January 2019 #63. It defines the source of compensation payments based on the type of projects. Establishes Republican Centralized Fund (RCF) as the main body which is responsible for the compensation payments to AHs. The Supervisory Board of RCF decides on the allocation of funds for compensation. Annex 2 of the Resolution clarifies the definition of land expropriation for the State and public needs. Also, it regulates the allocation of land plots after the involuntary resettlement of physical and legal entities. The responsible authorities for the implementation of LAR are defined. C 13 The resolution of CoM On approval of the order of the appointment and payment of social allowances and material (financial) assistance to low-income families dated on 15 February 2013 #44. Categorization of Vulnerable Groups Regulates the mechanism to the determination of vulnerable groups ( low-income families ) and their entitlements. 14 Tax Code of Uzbekistan Regulates compensation for a vulnerable group of people regarding applying for discounts or exemption from property taxes, land tax, income tax, and other taxes. 15 Presidential Decree About measures to implement the law On the state budget of the Republic of Uzbekistan for the year 2020 dated # PP Annex 2 of this Decree fixes exact amounts of all types of social allowances to be given to lowincome families in Uzbekistan. 16 Labor Code and Law on employment Regulates labor relations of individuals employed with labor contracts by enterprises, institutions, organizations of all types of ownership form, including contracted by individuals. D Establishment of Restrictions and Safety Zones 17 The resolution of CoM On the approval of the This resolution defines safety zones for power rules of protection of power transmission facility transmission lines both horizontally and vertically. objects dated # This resolution applies to all infrastructures and facilities in relation to power up to 500 kv. 35

51 Legal Framework 18 KMK Land allocation norms for power transmission lines kv. Functional Relationship to Resettlement This set of norms regulates the land allocation for the temporary and permanent period during the construction of transmission lines Constitution of the Republic of Uzbekistan 78. The Constitution of the Republic of Uzbekistan (December 8, 1992) provides that: Everyone shall have the right to own property (Article 36). The economy of Uzbekistan, evolving towards market relations, is based on various forms of ownership. The state shall guarantee freedom of economic activity, entrepreneurship, and labor with due regard for the priority of consumers rights, equality and legal protection of all forms of ownership (Article 53); An owner, at his discretion, shall possess, use and dispose of his property. The use of any property must not be harmful to the ecological environment nor shall it infringe on the rights and legally protected interests of citizens, juridical entities and the state (Article 54); The land, its minerals, waters, fauna and flora, other natural resources shall constitute the national wealth and shall be rationally used and protected by the state (Article 55) Land code (30 April 1998) 79. The Land Code (LC) is the primary regulatory framework for land-related matters in Uzbekistan. The LC regulates allocation, transfer, and sale of land plots, defines ownership and rights on the land. It describes responsibilities of different state authorities (Cabinet of Ministers, province, district, city Hokimiyat) in land management; rights and obligations of the land possessor, user, tenant, and owner; land category types, land acquisition, and compensation, resolution of land disputes and land protection. The LC also defines the terms of rights termination on the land plot, seizure and land acquisition of land plot for state and public needs, and conditions of confiscation of a land plot in violation of land legislation. According to the new version of the Code, currently, the granted lands for the construction of infrastructure, business, and residential houses shall be carried out within the three years. After that, the land will be taken back by local municipalities. The land can be given for temporary use as a short-term period (up to three years) or long term (from three to ten years). The Code clearly defines (i.e., Article 23) that the land for construction of power transmission line shall be allocated out of the low quality agricultural or non-agricultural lands. The legal entity whom the land was allocated cannot use and take possession of the land until property deed has been issued Civil Code (29 August 1996) 80. The Civil Code (CC) defines the legal status of participants of public relations, the grounds, and procedure of implementation of property rights and other proprietary rights, rights of intellectual property, regulates the contractual and other obligations, as well as other property and related personal non-property relations. The CC defines general rules of property seizure, determination of property cost and rights for compensation, terms of rights termination. 81. The CC provides that: a person whose right has been violated may demand full compensation for damages unless the law or the contract provides compensation for losses in a smaller size (Article 14, Clause 1). The Civil Code (Article 14, Clause 2) also specifies that losses are understood as: expenses that the person whose right is violated, made or must make to restore the violated right; 36

52 the loss of or damage to property; the revenues that this person would have received under normal conditions of civil turnover if his right had not been violated (lost incomes). 82. According to article 14, Clause 3 If the person has violated the law, revenues received as a result of this, the person whose rights were violated, has the right to demand compensation along with other losses, lost profits in the amount not less than such profits Resolution of the Cabinet of Ministers No. 146 (May 25, 2011) 83. This Resolution is aimed to improve the procedure of granting land plots, protect the rights of legal entities and individuals on land, and improve the architecture of settlements and the efficient use of their land for construction by the Land Code and the Town Planning Code. This resolution has approved two Regulations: (i) Regulation on the procedure for granting land for urban development and other non-agricultural purposes, (ii) Regulation on the method of compensation for landowners, users, tenants, and proprietors (in case of residential land), as well as losses of agriculture and forestry. 84. The Regulation on the method of compensation for landowners, users, tenants, and proprietors, as well as losses of agriculture and forestry, includes the following: Compensation for losses of landowners, users, tenants, and proprietors (hereinafter AHs); Compensation for losses of agriculture and forestry; cost of irrigation and developing the equal new land plot in return for seized irrigated agricultural land; Cost of fundamental improvement of grassland and pasture; Scheme for determination of losses of land possessors, users, tenants, and owners, as well as damages of agriculture and forestry; Coefficients on the location of seized land plots. 85. In this LARP, the entitlements and compensation for AHs per resolution #146 have been included. According to this resolution, AHs are entitled to the following compensations: - The cost of the land plot under the ownership of legal and physical entities - The cost of residential houses, structures, unfinished structures and structures that are not directly affected but unviable to use after land acquisition. - The cost of fruit trees, windbreak forests and other perennial plantations - The cost of not harvested agricultural crops - Agricultural income loss (in case of land for land development compensation provided to AHs, then agricultural income loss will not be provided) 86. Compensation for AHs is provided in case of: - Permanent acquisition of land - Redemption of land - Temporary acquisition of land Resolution of the Cabinet of Ministers 911 of November 16, On November 16, 2019, the Cabinet of Ministers approved the Regulation on the procedure for acquisition of land and the provision of compensation to owners of real estate located on the acquired land." This Regulation defines the procedure for acquisition of residential land plots for state and public needs and compensation payment. The regulation applies if the land is in the possession, use or temporary use of individuals or legal entities (individual entrepreneurs, citizens of Uzbekistan, foreign citizens, business entities, NGOs) and does not apply to land owned (physical right of private ownership) by physical and legal entities. In this regard, it is not clear whether this provision applies only to lands that will be privatized in accordance with the Law on the Privatization of Non-Agricultural Land No. 552 (August 13, 2019).This key document relating to the LAR provides for the introduction of new 37

53 rules regarding the procedure for compensation for land acquisition for public use and replaces the Cabinet Resolution No. 97 (May 29, 2006). To date, the process was not transparent and did not have adequate protection for property owners. This rule applies to cases where land occupied by real estate is property on the basis of rights of permanent or temporary use. 88. The document clearly defines the term state and public needs, which, among other things, includes the implementation of investment projects aimed at improving infrastructure facilities, including the construction and reconstruction of energy systems and power lines. 89. In accordance with the procedure introduced in the document, land acquisition is allowed subject to both of the following conditions: (i) the owner / user / tenant expressly gives his consent and (ii) the project is approved by the local Council of People's Deputies, or the investment project is specifically mentioned in the Decree of the President or the Resolution of the Cabinet of Ministers. 90. According to this resolution, both local municipalities (hokimiyats) and investors can initiate the seizure of land in accordance with the procedures provided for in the rules. An open discussion is held with the representatives of the hokimiyat, investors and owners if land acquisition is necessary. A preliminary assessment of losses will be carried out by the hokimiyat or cadastral authorities. The Regulation mentions that a complete list of real estate objects located on the site should be prepared, as well as other information relating to real estate. Trees and standing crops are not mentioned as a subject of assessment and additional compensation; therefore, the Cabinet of Ministers Resolution No. 146 (05/25/2011) will be applied to compensate for these assets. Kengashs of people's deputies will consider the benefits and costs of land grabbing, and if there are sufficient resources, as well as if the benefits and costs are exceeded, a decision will be taken to seize the land. The property that will be confiscated will be evaluated at the expense of the initiator. When 75% of the owners give their consent to the seizure of land, the initiator has the right to go to court to receive a binding order to sell the remaining portion of the 25% of the owners. In such cases, compensation should be determined by a court decision and not by an agreement on compensation. This procedure, in any case, guarantees the full cost of replacement. New items that are part of the compensation for confiscation must be provided within 2 years, otherwise fines are imposed for each day of delay. The demolition of real estate is permitted only after full compensation to its owner, as provided for in the compensation agreement (or by a court decision in the event of a dispute). The hokimiyats are not authorized to make decisions on the seizure of land. The hokimiyat or investor and owners, and this agreement is notarized. The initiator and the owner of the property must enter into an appropriate compensation agreement subject to notarization. The agreement should include the type(s) of compensation, its size and terms of payment and / or provision of other compensatory measures. Demolition of real estate without agreed compensation is not permitted. 91. After providing the agreed compensation to the owners: (i) the real estate / property is issued by the owner (ii) the draft resolution on the demolition is sent by the hokimiyats to the justice authorities to issue an opinion. The decision on the demolition of real estate is adopted only if there is a positive opinion of the justice authorities. (iii) The transfer of real estate located on the seized land to another person is allowed only with the written consent of the initiator after signing the Agreement or in case of termination of the Agreement (in the manner provided for by the Agreement, with the consent of the parties or in court). (iv) The owner who has acquired the property subject to demolition is the assignee of the rights and obligations of the previous owner arising from the Agreement concluded in accordance with this Regulation. (v) Monitoring the implementation of legal requirements for the seizure of land, the demolition of real estate, the resettlement of citizens, as well as the provision of compensation is carried out by prosecution authorities. (vi) The owner, by agreement with the initiator / investor, now has the right to carry out the demolition of property / structures at his own expense with the subsequent removal of all materials (recyclables) and construction waste, as well as with proper cleaning of the territory for the construction needs. 38

54 92. This procedure took effect on January 1, It is also important to note that in case of untimely or incomplete provision of compensation by the project initiator, the hokimiyat must provide compensation with a subsequent appeal to the court with a request to recover compensation from the perpetrators. 93. The ability to store recyclables is a very important issue for displaced households (as they can use lifesaving equipment to build new homes). Previous Ordinance No. 97 (May 25, 2006) determined that all rescue equipment is the property of the investor (after compensation has been fully provided by the displaced AH). However, even with this strict requirement, most of the projects supported by international financial organizations in Uzbekistan (including projects funded by ADB) allowed displaced APs to save salvation as an additional measure of protection. During this LARP preparation, the issue of rescue materials was addressed by NEGU in the light of the new Regulation No The new option/privilege provided by the relocated AH allows that by agreement with NEGU, the AH will have the right to carry out the demolition of property/facilities at its own expense with the further removal of all materials and construction waste and with appropriate cleaning of the territory for the needs of construction. With the exception of the economic burden for AHs related to the complete proper cleaning of the area, several issues should be considered: (i) There is no definition in the Regulation proper cleaning. This may be an obstacle to the implementation of the project. (ii) Construction waste management issues are very important. Cleaning up residential yards can result in hundreds of tons of waste being thrown into neighboring areas instead of relatively remote designated areas. Therefore, this process should only be controlled by the Contractor. (iii) The Regulation does not contain specific time frames for the self-destruction of houses. In practice, people will not be able to meet the construction schedule, and the Contractor will wait until AHs clears everything. Based on Decree No. 911 and after considering the problems mentioned above, NANU will allow people to begin the process of self-destruction in order to obtain recyclables at least two weeks before the Contractor begins cleaning the territory. The AG will also be able to collect rescue funds from their previous sites even during demolition (but during non-working hours of construction work). 94. This resolution defines the procedure for the appointment and payment of benefits for the mahalla for: a) low-income families with children under the age of 14, b) benefits for parents with low incomes for caring for a child until they reach the age of two and with; ) allowance for low-income families. In accordance with this resolution, the following types of families are eligible for benefits: Families where the average monthly income does not exceed 52.7% of the minimum wage per person over the past three months (along with the income that family members receive officially, members of the makhalla committee must also take into account additional factors, including land availability, employment status of family members and the presence of people in need of care); Lost parents and children in the care of relatives; Families in which one or both parents are disabled; a widow raising two or more children under the age of 14 years living separately from other relatives; a family with children with disabilities; mothers or fathers raising children in a single-parent family. In this case, the fact of raising the child by the mother (father) in an incomplete family created by the mahalla; families in which one or both parents are unemployed, who are registered with state employment agencies (regional and city departments of the Ministry of Employment and Labor Relations) as job seekers; single pensioners Resolution of the Cabinet of Ministers No. 317 (September 21, 2016) 39

55 95. The losses of land possessors, users, tenants, and owners, as well as losses in agriculture and forestry, should be compensated before granting of documents certifying rights on the land plot. The regulation also orders that demolition of the house or building shall be done only after agreeing on compensation and providing replacement premises. The replacement procedure is done according to the Resolution of CoM 63 which is detailed in section in this report. The regulation orders that compensation has to be paid before starting any construction work. AHs whose land plots are seized and to whom land plots are granted, in case of disagreement with a defined amount of losses, can appeal to the court. In Uzbekistan, no monetary compensation for land to land for the affected residential lands is foreseen. Therefore, replacement land will be allocated in agreement with the physical and legal entity whose land is being acquired. This agreement is regulated through the Resolution of CoM 63. This resolution shall be implemented together with the Resolution of Cabinet of Ministers #317 dated 21 September In resolution # 317, there is no indication that in case of the above-mentioned purposes AHs will also not be compensated. Based on this we consider that even though the land is being expropriated for public needs; still, the compensation for AHs shall be paid. By this resolution, the Government defined the procedure of legalization cadastral document of the titled and not titled (illegal) land users. The main requirements for the legalization of non-titled land users are to provide i) explanation of circumstances of unlawful use of land, ii) certificate from local self-governed bodies on possession of the last 15 years, iii) payment of land tax for the previous five years. This resolution updates the compensation mechanism of agricultural and forest-related losses. Therefore, in the calculation of compensation, this resolution shall be used together with Resolution of Cabinet of Ministers #146, dated 25 May Decree of the President of the Republic of Uzbekistan No. PP-3857 dated July 16, The resolution On measures to improve the effectiveness of training and realizing projects with participation of international financial institutions and foreign government financial organizations partly provides that payment of compensation for the land acquisition, demolition of houses, structures, plantings within the framework of projects with the participation of International Financial Institutions (IFIs). If it is agreed and stated in agreements, then the project implementation procedure will be followed by authorized bodies following the requirements of IFIs or Foreign Governmental Finance Organizations (FGFOs). This resolution gives to Executing Agencies to implement ADB s LAR or other principles in case of discrepancies between national legislation and ADB policies Presidential Order F-5491 (3 August 2019) 98. The order On additional measures to unconditionally provide guarantees of ownership rights of citizens and business entities has been issued after a number of breaching the national legislation in connection with involuntary resettlement and land expropriation for the State needs by local authorities in Uzbekistan. The main requirements of the Order are the following: All the Involuntary resettlement activities in connection with the expropriation for the public and the State needs must be consulted with the centralized fund that was established under the Cabinet of Ministers to compensate for the LAR activities. LAR Implementation can be carried out only after meaningful consultation with PAPs (residents and business entities) and valuation of compensation, and payment of the value of demolished buildings at replacement cost Inappropriate/illegal issuance of the administrative documents by the respective authorities to residents and business entities will be firstly compensated by the special budget of the local respective authorities and sooner the compensation will be reimbursed by the guilty person who issued that document. 40

56 Starting from August 5, 2019, all the LAR activities in connection with the expropriation for the public and the State needs shall be carried out in 3 stages. 1 st stage includes that all the LAR documents shall be submitted to the Cabinet of Ministers (CoM), 2 nd stage includes the issuance of conclusion by the responsible persons at CoM, and in 3 rd stage, the prepared conclusions shall be submitted to the Prime Minister for review and issuance of final decisions. 99. In general, this Order fully complies with the ADB s SPS 2009 on Safeguard Requirements - Involuntary resettlement in regard to public consultation, compensation at replacement cost and provision of relocation costs. This Order clearly states that all the inappropriate documents that made property owners as illegal owners will be compensated as well. However, one discrepancy includes that property owner without any document (squatter) is not subject to compensation Law of Uzbekistan on Protection of Private property and Guarantees of Ownership rights #336 (22 September 2012) 100. The purpose of this Law is to regulate relations in the field of protection of private property and guarantees of property rights. It regulates the entitlement of property owners to full market value compensation in case of acquisition of the property and land for the State needs According to the Law, withdrawal of the property, including a privately owned land, in cases of nationalization and requisition, is carried out only after payment of full compensation to the owner at market value, as well as losses incurred to the owner in connection with such a withdrawal, unless otherwise provided by law. The owner has the right to appeal in court the decision on land expropriation, confiscation, and requisition of property in private ownership. According to Article 19, the Demolition of buildings and structures before the payment of full compensation is not allowed Decree of the President of Uzbekistan 5495 (1 August 2018) 102. The decree On measures on cardinal improvement of the investment climate in the Republic of Uzbekistan" regulates that the seizure of land for state and public needs is allowed only after an open discussion with interested parties whose land plots are confiscated. It also sets that demolition of residential, industrial premises, other structures, and structures belonging to individuals and legal entities and seizure of land is allowed after the full compensation of the market value of immovable property and losses caused to owners in connection with such seizure Resolution of Cabinet of Ministers 1047 (26 December 2018) 103. This full name of the resolution is called On the procedure for the formation and use of funds of centralized funds for the compensation to affected individuals and legal entities for the expropriation of land for the state and public needs. This resolution appoints Republican Centralized Fund (RCF) under the Cabinet of Ministers for calculation and distribution of compensation during the involuntary resettlements to affected households and affected entities. Involuntary resettlement can be done only for the public and the state needs. RCF will be responsible for the Governmental level and internationally funded projects. This resolution sets the procedure of compensation payments to affected physical and legal entities. The Supervisory Board under RCF has the right to decide, and the decisions are compulsory to execute. The Board will also monitor the allocation of funds to AHs during the resettlement implementation period. Local managing bodies (i.e., Hokimiyats) should start the process by inquiring to RCF on the distribution of necessary funds for LAR. The Board will review this application, and the appropriate decisions will be accepted. Regional Hokimiyats issue the Decree on the allocation of compensation based on the RCF s decision. The Decree serves as a legal instrument to provide compensation to affected physical and legal entities Resolution of Cabinet of Ministers # 63 ( ) 41

57 104. The resolution of CoM Additional measures for the implementation of modern and transparent mechanisms of a provision of land plots with long-life inherited possession rights for individual housing. Annex 2 of this resolution defines the procedure for the provision of land for the State and public needs. The state needs 5 provision of land plot for the needs of: - the needs of defense and state security, the creation of protected natural territories, the creation and functioning of free economic zones; - fulfillment of obligations arising from international treaties of the Republic of Uzbekistan; - discovery and development of mineral deposits; - construction (reconstruction) of roads and railways, airports, airfields, air navigation, and aero technical centers, railway facilities, bridges, subways, tunnels, energy systems and power lines, communication lines, space activities, trunk pipelines, engineering, and communications networks ; - execution of master plans for settlements in the construction of facilities at the expense of the State budget of the Republic of Uzbekistan, as well as in other cases provided for by the legislation of the Republic of Uzbekistan; Public needs - the need for construction of: - automobile motorways and pedestrian walkways to buildings and structures, territories belonging to legal entities, regardless of legal forms, as well as individuals; - engineering communications to buildings and structures, territories belonging to legal entities, regardless of their legal form, as well as to individuals; - irrigation canals and other water arteries, reservoirs designed to supply water to the population, green spaces, and crops; - state educational and medical institutions, boarding schools, houses of mercy, as well as in the framework of public-private partnerships; - areas, as well as recreation parks, alleys, boulevards, recreation areas, lakes, reservoirs, ponds and other recreational facilities financed from the State budget of the Republic of Uzbekistan and funds of state organizations formed from sources not prohibited by law; - affordable residential buildings for typical projects in rural areas and cities as part of the targeted programs It clearly defines what kind of organizations is eligible to get land in the frame of the State and public needs. According to the Resolution, there are 15 stages for a procedure for the provision of land for the State and public needs In case of allocated land is under the ownership of the legal or physical entity, the provision of a land plot for state and public needs for the interested organization is carried out only after the acquisition (procurement) of the land plot from the physical and legal entities in the established order. The decree on land acquisition is regulated through the Presidential Order #5495, which regulates that the seizure of land for state and public needs is allowed only after an open discussion with interested parties whose land plots are confiscated. It also sets that demolition of residential, industrial premises, other structures, and structures belonging to individuals and legal entities and seizure of land is allowed after the full compensation of the market value of immovable property and losses caused to owners in connection with such seizure The size of the land plot to be offered as a replacement for the acquired land due to the public and state needs is agreed with the owner of the affected land plot. In Uzbekistan, 5 Note: According to this resolution, land for the construction of TL for the section 1 is considered as allocation of land for the State needs. 42

58 all the lands are to be allocated on the electronic platform by participating in the auctions. According to this resolution, affected households are exempted from the participation in auctions and land will be given by the Hokimiyats directly. A procedure for land allocation without auctions is done through an application to be submitted by the affected household to Hokimiyat. Hokimiyat then offers to AHs a suitable land. If AHs agree with the replaced land plot, then they shall declare their agreement by writing manually agreement letter Resolution of Cabinet of Ministers 44 (15 February 2013) 108. This resolution determines the procedure for the appointment and payment of Makhalla allowances for a) low-income families with children under the age of 14 years, b) allowances for low-income parents for childcare until the age of two years and c) allowance for low-income families. According to this resolution the following types of families are entitled to benefits: families where the average monthly total income 6 does not exceed 1.5 minimal wages per person during the last three months. Along with incomes household members gain officially, additional factors are also to be considered by makhalla committee members, including the availability of land, employment status of family members, and presence of persons in need of care; the preferential rights for makhalla allowances have families who have lost both parents and children involved in family education; families where one or both parents are disabled children; widow(er), raising two or more children under the age of 14, living separately from other relatives; family with disabled children; mothers or fathers who are bringing up the children in a single-parent family. In this case the fact of a child-rearing mother (father) in an incomplete family established by makhalla; families in which one or both parents are unemployed who have been registered at state employment bodies (regional and city departments of the Ministry of Employment and Labor Relations) as job-seekers; single retired persons The amount of allowances is determined by the Ministry of Finance of the Republic of Uzbekistan according to calculations submitted by the People s Bank. According to the interpretation of this Resolution by the Ministry of Finance7, the amount of financial assistance can be from 1.5 times up to three times of minimum wage8. The maximum duration of giving an allowance is up to six months The family, recognized by the citizens' assembly as the family in need, has the right to receive only one type of allowance or financial aid Tax code 111. The Tax Code (TC) is a regulatory framework for taxation related matters of individuals and legal entities. This law regulates compensation for a vulnerable group of people regarding applying for discounts or exemption from property taxes, income tax and other taxes stipulated in this TC. 6 The total family income are considered as earnings in the form of wages, property income, income of an individual entrepreneur, the amount of money from family members working abroad or doing business, pensions, scholarships and allowances (described in this explanation), other than the allowance or financial assistance received by the family, income from running a personal dekhkan farm and other incomes established by the legislation of the Republic of Uzbekistan Since August 2019 the minimal wage was set at 223,000 UZS per month, thus the low-income line has been set at 334,500 UZS (35 USD) per month per person. Based on this methodology the official low-income line (as nominal indicator) is about 1.2 USD per day per capita. 43

59 112. By article 121, the use of entire land plot or expanding the territory without documents or illegally is subject for sanctions in the amount equivalent to: Four times of land taxes for legal entities Three times of land taxes for physical bodies 113. According to the Presidential Decree 5421, this fine is not applied during the campaign period till 1 st May Resolution of the President # 4555 ( ) 114. This resolution is issued to approve and implement the law On the State Budget for the year It describes budget incomes and expenditures in 2020, spheres and amounts of the state duget spending, roles of different central and local government bodies in the process of state implementation of state budget parameters and other issues related to budgeting The resolution fixes the following minimum amounts which are considered effective since 1 February minimum wage 679,330 UZS/month; basic amount for pensions calculation 238,610 UZS/month; minimum pension amount 466,680 UZS/month; allowance to disabled people who are disabled since childhood 466,680 UZS; minimum amount of allowances for elderly and incapable people who do not have necessary work experience 286,390 UZS/month Annex 2 of the resolution fixes amounts of allowances amounts for families with children under the age of 14, childcare allowances until the child reaches the age of two and financial assistances to low-income families. The Annex 2 parameters are given in the below table. Table 6.2. Financial aid and allowances amount fixed in Annex 2 of the Resolution of the President of Uzbekistan #4555 Type of allowances and financial aid Amount (UZS) 1. Allowances for families up to age14 including: families with one child 131,000 families with two children 217,000 families with three and more children 304, Childcare allowance up to 2 years 434, Allowance to low income families from 326,000 to 653, One-time financial aid to low income families in Karakalpak Republic and Khorezm province Labor code and employment law from 434,000 to 1,085, These two documents are central legislation regulating labor relations of individuals employed with labor contracts by enterprises, institutions, organizations of all type ownership forms, including contracted by individuals. These legislations are considering interests of employees and employers provide the efficient function of the labor market, just and secure labor conditions, protection of labor rights and employees health, promote the growth of labor productivity, an increase of work quality, rising on this matter welfare and social livelihood level of the population Both ADB policy and the Uzbek law provide for the indemnification of APs who lose a job because of land/assets acquisition under a public interest project. The two, however, differ 44

60 substantially on how the matter is conceptualized and resolved in practice. ADB policy compounds the case as an income rehabilitation issue and thus requires that the actual job income lost by the APs is fully reimbursed to them. This approach covers temporary and permanent job losses and is generally implemented through an allowance providing the APs their declared monthly salary (what should be substantiated by the supporting documents) for the number of months of business stoppage up to a maximum of 12 months which is the benchmark for permanent job loss. For informal permanent jobs without declared salaries, the approach is the same but based on the national minimum wage. To guarantee proper policy application the payment of the job loss allowances is to be directly disbursed to the APs by the project proponent The national legislation, instead, limits the matter to the payment as mandated by the Labor Code of fixed employment termination indemnities due by an employer to his employees and to the obligation of the project proponent to reimburse the employer of the cost of those indemnities mandate by the Civil Code. Such an approach excludes from job loss compensation informal employees without a declared salary, applies only to permanently affected jobs and does not automatically guarantee that the APs receive their job termination dues Resolution of Cabinet of Ministers About Approval of Rules of Protection of Power Supply Facilities 120. The Resolution with the reference number 1050 dated is the legal text which regulates issues related to Right of Ways of power supply facilities. The resolution says that in case of agricultural land plot that is located on the right of way of power supply facilities including transformers, networks, substations etc., repair works on such power supply facilities can be implemented in a season when there is no crop on the land. If agricultural crops are damaged due to emergency repair works on power supply facilities, such crops must be compensated According to this resolution land plots of users located within the right of way of existing power supply facilities cannot be acquired permanently. In case such lands are needed to be acquired, then the requirements of the government resolution No.97, dated and No.146, dated shall be triggered, i.e. full compensation shall be paid due to land acquisition and before the land acquisition Land users whose lands are located in the right of way of power supply facilities do not have rights to construct structures, facilities, houses, plant trees or bushes which can disrupt the safe operation of the power facilities or block access to them. In such cases, a power supply company can apply to local administration with a request to demolish such facilities or plantings. No compensation is paid in this case The National Construction Standards and Rules # KMK Land allocation standards for construction of kv power networks 123. Adopted on by the State Architecture and Construction Committee of Uzbekistan. This document specifies width of land strips and size of land plots to be temporarily and permanently allocated for construction of kv power supply lines, transmission towers, transformer substations and switchyards. The document is intended for design and cost estimates development purposes The document specify the following formula to determine land plots required permanently for double column transmission towers: F = n (F0 + f) where F0 land area to be occupied by tower, n number of towers, f 1 or 1.5 meter (depending on soil type) land strip area around a tower. For tricycle towers the following formula shall be applied: F = η π R2 9 Based on the Labor Code of 1996, last amended on 2015 (Article 67) loss of employment is to be compensated with 2 months average salary plus a severance pay of a maximum of 1 month average salary depending on the length of the employment lost. Also, according to the Civil Code (Article 14) all losses (including real damage, lost incomes) are to be compensated. 45

61 where R 1.5 meter radius circle around tower column, η number of columns, The document mentions that lands required for installation of 1.0 kv line towers and towers of communication lines shall not be acquired from land owners and land users As per the document, width of land strips allocated temporarily for installation of power lines varies from 8 meters for 0.4 kv lines up to 32 meters for double-chain 220 kv lines. Land areas to be allocated for construction of switchyards and substations vary from 50 m2 to 25 hectares. The document mentions that based on conditions and methods of construction land allocation requirements can be fixed individually for each project Based on this document, a 15-meter wide land strip for a temporary period of three years will be allocated to NEGU for construction power transmission towers and stringing power transmission lines. Civil works contractor(s) will clean the corridor before the start of construction works, therefore all the structures, houses, crops and trees are subject to demolition and cleaning ADB Safeguards for Involuntary Resettlement 127. ADB adopted its Safeguard Policy Statement (SPS) in 2009 including safeguard requirements for environment, involuntary resettlement, and indigenous people. The objectives of the Involuntary Resettlement Safeguard policy is to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups The involuntary resettlement safeguards cover 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. The three essential elements of ADB s SPS are: (i) compensation at replacement cost for lost assets, livelihood, and income prior to displacement; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. The SPS gives special attention to poor and vulnerable households to ensure their improved well-being as a result of project interventions The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. The calculation of full replacement cost will be based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments if any. Where market conditions are absent or in a formative stage, the borrower/client will consult with the displaced persons and host populations to obtain adequate information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and district, and other related information. The borrower/client will also collect baseline data on housing, house types, and construction materials. Qualified and experienced experts will undertake the valuation of acquired assets. In applying this method of valuation, depreciation of structures and assets should not be taken into account. The following are the basic policy principles of ADB s SPS, 2009: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and census of displaced persons, including gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Inform all displaced persons of their 46

62 entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of 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 mechanism to receive and facilitate the resolution of the affected persons concerns. 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. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (a) landbased 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, (b) prompt replacement of assets with access to assets of equal or higher value, (c) immediate compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit-sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (a) 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; (b) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (c) civic infrastructure and community services, as required. (v) 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. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through a negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) 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. (viii) Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a final resettlement plan, including documentation of the consultation process promptly, 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. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the project s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) 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 47

63 achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports Policy differences and reconciliation 130. A summary comparison between the Uzbekistan law and regulation and ADB policies, and reconciliation provisions to fill the gaps is presented in Table 6.2 below: Table 6.3. Comparison of ADB resettlement safeguards with Uzbekistan law and regulation for land acquisition and resettlement Aspect ADB National Uzbek Regulations Involuntary Resettlement Categorization Compensation entitlements SOCIAL SAFEGUARDS REQUIREMENTS ADB Safeguard Policy Statement (2009) ADB carry out project screening and categorization at the earliest stage of project preparation when sufficient information is available for this purpose. Type of project categorizations is A, B, C, FI. APs with the formal title has to be compensated for lost land/other assets. APs with the legalizable title have the right to be compensated for lost land and assets after the EAs help them in legalizing assets. their C. APs with no legal title are compensated for lost non-land assets. The legal and policy framework of the project is based on national laws and legislation related to land acquisition and compensation policy in Uzbekistan, that are described in Table 7.2 According to legislation, there is no categorization in Resettlement documents. A. APs with the formal title is compensated for lost land/other assets. B. APs with legalizable or no legal title can be legalized per Presidential Decree #5421. Only lands of residential houses that are located in safety zones, safety zones, protected areas, military zones cannot be legalized. C. APs with nonlegalizable titles considered non-titled as legalization is a burden of the APs. Non-legal APs have no right to be compensated for land and non-land assets. Harmonized Framework The analysis of national legislation shows that Uzbekistan is adopted a number of presidential decrees and governmental resolution that fits policies of SPS 2009 ADB s SPS 2009 will be used. A. Same in principle/application. No reconciliation needed. B. Same in principle/application. No reconciliation needed. C. Per Resolution of CoM #3857, in case of discrepancies between International Financial Institution in terms of payment of compensation for the land acquisition then IFI policies prevail. So ADB policy will be used Compensation A. Permanent loss of land. Replacement land as a preferred A. Permanent loss of land. Replacement land for legal APs. A. Same in principle/application for legal APs. Reconciliation needed both for principle 48

64 Aspect ADB National Uzbek Regulations option or cash compensation at full market rate. At least for legal/legalizable APs. Harmonized Framework and application to allow the compensation of all non-land losses of legalizable and non-legal APs, which shall be covenanted. B. Replacement of leased land. Based on the replacement of lost income through cash compensation of gross income x the remaining lease years or a replacement land lease. C. Loss of structures/ buildings. Cash compensation at replacement cost for a lost item free of depreciation, transaction costs, and other deductions. D. Loss of indirectly affected items. Not affected parts of an asset no longer usable after impact will have to be compensated as well. E. Business losses. Reimbursement of actual losses + B. Replacement of leased land. Based on lease replacement and compensation in cash all losses including lost income. C. Loss of structures/buildings. Cash compensation at market cost for a lost item free of depreciation, transaction costs, and other deductions. D. Loss of indirectly affected assets. Law requires that all losses including lost incomes are to be compensated to all legal APs. E. Loss of business. Cash compensation at market value for all damages/opportunity costs incurred. The burden of B. Same in principle. Application to be further improved. No reconciliation needed. To be reflected through instruction for ADB projects. C. No reconciliation of principles and application needed. However, it is required the establishment of a protocol allowing the compensation of structures/ building at replacement cost, when the salvageable materials remain with the developer or landowner provides full reimbursement to the owner. It is hoped that this can be formalized without legal reform but only a Decree for ADB projects or through the inclusion of additional safeguard covenants into the loan agreements which are equivalent of the international treaty or agreement. D. No reconciliation of principles and application needed. E. Same in principle but ADB does not consider opportunity cost. Application reconciliation 49

65 Aspect ADB National Uzbek Regulations business reestablishment costs. For an application based on tax declared income for a period of business stoppage. In the absence of a tax declaration based on maximum nontaxable salary. proving opportunity costs rest on the AP based on recognized documented evidence but no clear methodology. Harmonized Framework needed to define a clear methodology and distinguish short- and long-term losses. F. Loss of trees: i) Unproductive. Irrespective of legal land occupancy status compensation at market rate. Application-based on tree type/ wood volume or other methods ensuring AP rehabilitation. ii) Productive. Compensation at replacement cost based for application on various methods: tree reproduction cost, income lost (x tree type x market value of 1- year income x full production years lost). F. Loss of unproductive and productive trees. Unproductive as well as productive trees affected by a public project are to be compensated according to the independent valuator's report, but with no right to have felled trees. F. Same in principle, different in application. Already adjusted for previous ADB projects but Application reconciliation shall be covenanted ensuring systematic law implementation, and also cash compensation is provided by default, ensuring and use of valuation standards fitting SPS Involuntary Resettlement Planning, assessment, and valuation of impacts G. Loss of crops. Compensation of crop in cash at market price. Land Acquisition and Resettlement Plan (LARP). LARP preparation includes: a) impacts assessment/ap census; G. Loss of crops. Loss of crops to be compensated. There are two forms of compensation of loss of crops: i) compensation of uncompleted agriculture production and ii) compensation of lost income by multiplying four (years) average income for the last three years. Resettlement Plan. There are no requirements to prepare integrated and stand-alone LARP. LAR planning entails similar but less extensive/simpler assessment/survey efforts G. No reconciliation for a policy is needed, but shall be covenanted to ensure that crops are compensated at the moment close as much as possible to the date of calculation lost income. Partly different in principle and application. No reconciliation needed as law/regulation is silent on this matter and SPS (2009) requirements have been already applied in previous ADB 50

66 Aspect ADB National Uzbek Regulations b) definition of entitlements, income/livelihood restoration strategy, compliance & grievance redress mechanisms, institutional arrangements; c) consultations results; d) monitoring schemes; e) budget and implementation schedule. LARP requires the following surveys: i. Measurement survey. Measures all affected items. ii. AP Census. Identifies all APs and establishes legitimate beneficiaries based on legal status. iii. Socioeconomic survey. Provides background information on AP socio-economic features. iv. Valuation survey a) Land: If land market exist based on a survey of recent transactions; without land market based on land productivity/ income; than ADB Policy, as detailed below: i. Measurement survey. Land and buildings impacts measured. Other impacts identified but not measured; ii. APs Identification. Identifies only legal APs; iii. Socio-economic survey. No comparable requirements exist; iv. Valuation survey; a) Land: valued at a market rate based on a transactions survey. The valuation includes transaction costs/third party liabilities; b) Buildings and structures. Replacement cost but the salvageable materials remain with the developer or landowner provide full reimbursement to the owner; c) Trees/crops. Based on the methodology detailed in section Compensation F. and G. Harmonized Framework projects. Still, clear instructions regarding ADB projects ensuring the measurement of all impacts and the counting of all AP are needed for mainstream purposes. i. Detailed Measurement Surveys to be mainstreamed for all impacts; ii. Detailed count of individuals to be mainstreamed; iii. The execution of the survey is to be mainstreamed; iv. Valuation survey a) The land is not valued because of compensation land to land; there is only measuring land area and valuation of land quality (productivity/soil quality) to compensate land to equal land; b) Already reconciled for previous ADB projects. b) Buildings and structures. The replacement cost of materials, labor and transport and special features of building/structure without discounting depreciation, 51

67 Aspect ADB National Uzbek Regulations Procedural mechanisms salvageable materials, and transaction costs; c) Trees/crops. Based on the methodology detailed in section Compensation. A. Information disclosure. Resettlementrelated documents to be timely disclosed in the AP language. A. Information disclosure. No disclosure requirement exists. Harmonized Framework A. Different in principle and application. Already reconciled for ADB projects. B. Public consultations. Meaningful public consultations are to be held with the APs. APs should be informed about their entitlements and options, as well as resettlement alternatives. B. Public consultations. Matters of local importance to be publicly discussed with local authorities. But no requirement to consult the APs directly. B. Same in principle but different in application. This is already reconciled for ADB projects. C. Grievance procedure. A Grievance Redress Mechanism (GRM) is to be established for each project. Information on GRM to be communicated to the APs. D. Asset acquisition conditions. C. Grievance Procedures. Each state agency/ministry must follow to detail instructions (approved by the government) on registering and reviewing the concerns and claims from citizens. D. Asset acquisition conditions. Property can only be acquired after full compensation is paid to APs. C. No reconciliation is needed. D. Same in principle, but unsystematic in the application. Application to be improved. Assistance to vulnerable and severely affected AP Property can be acquired only after full compensation is paid to the APs. A. These APs are to be identified, and special assistance is to be provided to restore/ improve their pre-project A. There are no special laws or regulations for livelihood restoration due to land acquisition and involuntary resettlement impact. However, there are a number of legislative documents A. According to Resolution #165 of the Cabinet of Ministers dated onetime financial allowance amounting to 2 to 5 times of minimum wage can be 52

68 Aspect ADB National Uzbek Regulations level of livelihoods. related to social support and livelihood improvement measures considered by the government of Uzbekistan to consider social allowances and needy families through Cabinet of Ministers resolutions (#350 dated 12 December 2012, #44 dated 15 December 2013, and #165 dated ) and to consider disabled people through the Law on social protection of disabled people (#422-XII, 18 November 1991). According to the Presidential Decree #4555 dated , the exact amount of all types of social allowances to low-income families within Uzbekistan is given Harmonized Framework given to needy families living in Khorezm and Karakalpakstan and who are not officially registered as low-income families. Based on these standards, a one-time allowance amounting to 5 times of the minimum wage can be allocated in this project. Thus, support of vulnerable groups of the population is provided on the regular base by the Government on central and local levels and does not require additional payments in connection with the project implementation. 53

69 7. COMPENSATION, ASSISTANCE AND BENEFITS 131. This chapter describes in detail the rights and types of compensation payments for property that is under the influence of the project Eligibility for Compensation and Assistance 132. Compensation eligibility will be limited by a cut-off date comprising the completion date of the data collection based on the last day of processing of the AH census data and loss record. The data collection completion date for the Sirdarya and Djizzak provinces is October 10, Affected households located in affected areas and/or making any land improvements for the project after cut-off date will not be eligible for compensation. However, they will receive an advance notice asking them to vacate the land and dismantle the affected buildings before the start of the project. These dismantled buildings will not be confiscated and will not be subject to fines or compensation. Besides, in sections where there will be a change in alignment during the final detailed design, a new cut-off date will be determined Legalization and Registration of Lease/Ownership of land 133. The inventory of losses exercise established that no AH is unofficially using their assets and no AH exists without registering their land ownership /usership. However, at the time of the LARP update after the detailed engineering design and the DMS exercise, if it is found that unregistered land users are affected and claim compensation, the Cadastre and Land Administration will advise such affected land users to register or renew registration of their land. According to the LARP, unregistered lands will be legalized and registered before compensation is paid. NEGU will identify and list all AHs whose lands must be legalized and/or registered. To facilitate the legalization process, the PMU will make a request with a list of such affected households to the local Hokimiyat. The local hokimiyat will instruct the cadastre and land administration to assist the AHs in legalizing/registering their land. The Office of Cadastre and Land Resources will conduct an assessment and inventory of the land and buildings of each AH to prepare land lease/ownership documents Compensation and Property Valuation 134. This section describes the types of compensation payments for property that is being affected by the project Land 135. The compensation method for agricultural land, which exists in Uzbekistan, is based on compensation on the principle of "land for land". However, in situations where there is only marginal loss of land, the Government may calculate the cash compensation for restriction of land use right due to the permanent land acquisition. Regarding the affected residential land plot proposed to be replaced, the household will be provided with a new land plot for the construction of a residential house For this power transmission line, compensation for the loss of agricultural land is based on cash. This approach was chosen not only because the negative impacts are so small as to justify both logistically and economically for replacement plots, but also because it is preferable for the AHs themselves Compensation for the irretrievable loss of agricultural land use right will be paid in the amount of four times the average net income over the past 3 years (from the impacted annual crop) If a land lease becomes partially or completely unprofitable, land plots that are not affected by the project will also be compensated. This issue will be considered by the Office of the Cadastre and Land Resources and in case of disputes the disputes will be resolved with the participation of the local Hokimiyat and the Department of Agriculture and Water Resources. 54

70 139. Operating costs, registration costs, if any, will be borne by NEGU Facilities 140. Buildings and structures (registered or not) will be compensated at replacement cost and without considering depreciation. In relation to partial impacts (walls, building fences, etc.), monetary compensation will be paid in the amount of replacement cost so as to be able to replace such structures. The unaffected parts of a structure will also be compensated, should they become unsuitable or unviable Crops and Trees 141. Loss income from crops planted on the affected land will be compensated in monetary value at replacement cost based on average net income computed based on the average income over the past 3 years multiplied to construction period years to restore the lands for an affected portion of land. The results of the reports of the Design Institute Uzdavyerloyiha are used as a reference to pay compensation for crop loss to AHs in this LARP. Loss of income from fruits trees and timber trees will be compensated in monetary value based on the market value of wood. Fruit trees were evaluated based on the average annual income for the past 3 years multiplied by the remaining productive life of the fruit-bearing trees. In the case of loss of timber trees, compensation will be based on the market value of their dry wood volume Loss of Income / Livelihood 142. Loss of income/livelihood will be compensated for the period of business interruption. This will be calculated based on the estimated average monthly income in the past 3 years multiplied by the number of months of business interruption. Workers from the affected businesses will be paid for lost wages for the duration of business interruption up to 12 months. In case of agricultural workers losing their employment as a result of land acquisition, monetary compensation will correspond to their salary (in monetary value and in-kind) for the remaining part of the agricultural year or contractual period whichever is higher Vulnerable Households (cross-linked with Section 3.3) 143. Vulnerable households, including women headed households without support, low income household, a household headed by an elderly person with no support and a household headed by a physically challenged person will be provided with a one-time additional allowance equivalent to 5 times of minimum wage. Additionally, members of vulnerable households will also be prioritized in project-related employment. Since 1 February 2020 the minimum wage is set at 679,330 UZS per month, thus the financial aid allowance is determined by the Presidential Decree #4555 of 30 December 2019 for The makhallas and village assembly of citizens have a record of all households in the communities and will be tapped in identifying and certifying vulnerable households Compensation Assessment Procedure & Entitlement Matrix 144. All compensation payments for assets and income losses will be calculated at replacement cost. The LARP sets eligibility and entitlement provisions establishing compensation rates in accordance with the requirements of the resolutions of the Government of Uzbekistan (No. 911; No. 146, No. 317) and ADB s SPS Compensation for affected structures will be based on the results of the market estimation of the cost of the specified object, including all the related payments (cost of materials, type of construction, labor costs, transportation), depreciation and transaction costs and relocation costs. The cost of reconnecting water, electricity, gas and telephone will also be included in the compensation (new plots of land should have similar services). Suitable residual AH materials may be collected free of charge The calculation of compensation of affected assets will be calculated by an independent valuation company hired for this project. The results of the independent valuation 55

71 company for the valuation of structures will be used as a reference to pay compensation to the AHs in LARP All types of compensation and assistance to be provided during the implementation of the project are summarized in the entitlement matrix below (Table 7.1). Table 7.1: Entitlement Matrix Type Specifications AHs Entitlement A. Impact on Land A.1. Agricultural Permanent land losses caused land by tower construction A.2. Residential land Temporary land losses caused by tower construction and transmission line stringing All AHs, Leaseholders with Lifelong inheritable possession/ permanent possession (hereinafter as All AHs) All AHs 1. Monetary Compensation at replacement cost by providing compensation for loss of land use rights equivalent to 4 years of the net average income 10 of the past 3 years (of the affected annual crops.); 2. Unaffected portions of an affected arable plot will also be compensated if the same becomes unviable after impact. 3. Transaction cost, registration fee, related to new plot allotted will be borne by UNPN. 4. Independent Valuation Companies will be engaged only in cases where AHs disagree with compensation rates determined by Sirdarya and Djizzak branches of Uzdavyerloyiha Land Use Planning Institute. 1. Monetary Compensation at replacement cost by providing compensation for loss of land use rights equivalent to temporary period years of the net average income 11 of the past 3 years (of the affected annual crops.); 2. Unaffected portions of an affected arable plot will also be compensated if the same becomes unviable after impact. 3. Independent Valuation Companies will be engaged only in cases where AHs disagree with compensation rates determined by Sirdarya and Djizzak branches of Uzdavyerloyiha Land Use Planning Institute. Land Loss All AHs 1. The following components shall be compensated due to residential land acquisition and demolition of real estate properties: (i) market value of real estate facilities; (ii) market value of land use right; (iii) relocation costs; (iv) cost of temporary renting of other real estate facilities; (v) loss of profit and (vi) other costs and damages incurred due to land acquisition; 2. Land for land compensation through the provision of a land plot comparable in value/location to the plot lost including services (or compensation to provide such services) to plots lost with registration and transfer charges if any to be borne by the project; OR 3. Unaffected portions of a plot will also be compensated if they become unviable after the impact occurs; 4. All mandatory fees for registering the land, completion of required house design, surveys, acquiring permission for construction under the AHs name and any other related costs will be paid by NEGU; 5. Affected residential land will be kept by the land user who will be allowed to carry out only agricultural activity on the affected land. 10 Based on the Tax authority information 11 Based on the Tax authority information 56

72 Type Specifications AHs Entitlement B. Impact on Structures Residential / Full or partial Business loss of structures structures C. Impact on Crops and Trees Agriculture land, orchard All AHs 1. Monetary compensation at full replacement rate for affected structure/fixed assets free of salvageable materials, depreciation and transaction costs. OR 2. In case of partial impacts on structures (structure wall, fences, etc.), monetary compensation at replacement rates to restore the remaining structure. 3. Unaffected portions of the structure will also be compensated at replacement value if they become unviable after impact. 4. Monetary Compensation at replacement cost to be determined by the Independent Valuator and cost of valuation shall be paid by NEGU. Loss of crops All AHs 1 Monetary compensation at replacement cost for primary (and secondary crops if any) on affected land-based on 1 year of production costs (inputs) plus an allowance equivalent to 1-year average net income based on the average income over the past 3 years. 2 Monetary compensation at replacement cost will be determined by Uzdavyerloyiha Institute. 3 Independent valuator will be engaged only in cases where AHs disagree with monetary compensation rates determined by Uzdavyerloyiha Loss of fruit trees Loss of timber trees All AHs (including the non-leased landowner) All AHs D. Impact on Income and Livelihood Employment Loss of Agricultural from affected employment workers agricultural from affected losing their land agricultural land contract E. Vulnerable and Severely Affected Households Assistance to Low-income households, Vulnerable female-headed households with and Severely fewer than 2 adult incomeearners, Affected Households HHs with disabled family members, and severely affected households) 1. Monetary compensation for fruit trees will be based on the average annual income for the past 3 years multiplied by the remaining productive life of the fruitbearing trees. 2. Production costs (inputs) of trees till to cut date. 3. Monetary Compensation at replacement cost to be determined by the Independent Valuator and cost of valuation shall be paid by NEGU. 4. Felled trees will be kept by the AHs. 1. Monetary compensation for timber trees will be compensated based on the market value of dry wood volume. OR 2. Production costs (inputs) of trees till to cut date. 3. Monetary compensation at full replacement rate for affected 4. Felled trees will be kept by the AHs. 1. Monetary indemnity corresponding to their salary (in monetary value and in-kind 12 benefit) for the remaining part of the agricultural year/or contractual period whichever is higher in monetary value. 1. One-time financial aid allowance to vulnerable and severely affected households is equivalent to 3 times of minimal wage to be paid as a lump sum amount. The Presidential Decree # PP dated fixed the minimal wage amount as 679,330 UZS. Plus, 50,000 UZS as additional financial aid amount paid monthly to low income families according to the resolution of the Cabinet of Ministers # 866 dated Total financial aid allowance to be paid to 12 Products which workers used to receive as payment and/or additional benefit for on-farm work such as wheat, rice, hay etc. 57

73 Type Specifications AHs Entitlement F. Impact on Community Structures and Assets Community Loss or damage Communityowned Structures and Assets to public infrastructure Assets vulnerable and severely affected families is equal to 3 x 679, ,000 UZS = 2,087,990 UZS. 2. Priority for employment in project-related jobs. 1. Rehabilitation/replacement of affected structures/utilities (i.e. footbridges, roads, communication lines, water pipelines, power transmission lines, etc.) to pre-project level. and utility G. Any unanticipated Impacts Any unanticipated impacts identified during the Project implementation will be compensated in full at replacement rate, subject to independent valuation methodology AHs Income Restoration 8. INCOME RESTORATION 148. Under this project, the AHs do not have significant losses in terms of productive assets (agricultural, pasture or fruit trees and vegetable lands). The analysis of the assets inventory data shows that the maximum loss for a farmer in percentage is 0.376% of total production assets. In this context, additional measures to restore the income of the AH will not be needed but, compensation for the losses recommended in the entitlement matrix will be followed Compensation at replacement cost. In this project, the households will be marginally but permanently affected by the loss of productive lands. Therefore, compensation at replacement cost for affected lands will be provided, as provided for in the entitlement matrix and budgeted. 58

74 9. RELOCATION 150. As stated in Section 2.1, 1 household will lose its housing structures due to safety reasons. Some parts of these structures are not completed yet and not used for living purposes. Relocation of this affected household shall be implemented and compensated strictly according to the national legal texts of the Republic of Uzbekistan. The basic legal document regulating relocation issues in Uzbekistan is the Resolution of the Cabinet of Ministers "About Additional Measures to Guarantee Property Rights of Individual Persons and Legal Entities and to Improve Procedures of Land Acquisition and Compensations" This resolution with the reference number 911, which was adopted on and became effective on , sets out procedures for payment of compensation to individuals and legal entities in case of acquisition of residential lands for public needs and investment projects. This regulation deals with residential land plots, houses, building and structures of individuals and legal entities. The regulation does not apply to privatized residential land plots The following are the general principles and procedures of the resolution to be followed for the acquisition of residential land of the identified 1 household. Land shall be acquired with the land user s consent, based on the resolution of Council of People s Deputies as well as resolutions of the President and Cabinet of Ministers of Uzbekistan. Based on such resolutions local Hokimiyats shall issue their resolutions for demolition of real estate facilities standing on the land acquired to be acquired. Resolutions of Hokimiyats shall be reviewed and approved by local justice departments. Compensation agreement must be prepared and signed by the initiator of land acquisition and the land user. Agreement shall be effective after official notary certification. Structures existing on the acquired land can be demolished only after full payment of compensation indicated in the compensation agreement. Compensation agreement shall include conditions and amounts of relocation including hiring of temporary living space, missed profit, times frame of compensation payments, other compensation and relocation conditions which will be agreed by land user and initiator of land acquisition. Compensation amounts including relocation costs shall be evaluated by a licensed valuation firm. Initiator of land acquisition shall pay for the hiring of a valuation firm. Demolition of real estate facilities, both with formal title or without, due to land acquisition is allowed only after full compensation of the facilities and losses at market value. In case if lands are acquired for public needs by local Hokimiyats, compensation shall be paid from the fund of the National Fund for Land Acquisition and Resettlement Compensation. If lands are acquired for investments project then the investor organization will be responsible for payment of compensation, provision of houses or apartments, and temporary housing, as well as the reimbursement of all relocation costs. Local Hokimiyats shall disclose land acquisition and resettlement related resolutions, dates and venue of consultations with APs, consultations minutes and other related information on their web sites and/or on mass media. Land users may appeal to a court of law on resolution of district/town Hokim on demolition and estimation of the value of residential, manufacturing, and other-purpose buildings, facilities, and plantings to be demolished The following components shall be compensated due to land acquisition and demolition of real estate properties: i. market value of real estate facilities; ii. market value of land use right; 59

75 iii. relocation costs; iv. cost of temporary renting of other real estate facilities; v. loss of profit; vi. other costs and damages incurred due to land acquisition The following types of compensations can be provided for land acquisition and demolishing real estate properties: i. cash compensation; ii. land for land compensation iii. other equivalent real estate properties; iv. other types of compensation which can be agreed in compensation agreement In case of land for land compensation, a similar size land plot in the same district (town) shall be provided to AP. The resolution does not specify how far a compensation land shall be located from present location. The affected residential land plot will be kept by affected household who will be allowed to carry out only agricultural activity on such land Salvage materials from the demolished real estate facilities can be taken by owner in case these facilities are demolished at the expense of the owner. This issue shall be agreed between owner of the facilities and the initiator of land acquisition Local Hokimiyats shall continually inform Cabinet of Ministers about the land acquisition process, payment of compensations including relocation, demolishing of real estate facilities and implementation of construction works on the acquired land The affected structures in the resettlement budget table have been estimated based on the market value by an independent valuation company, used in a similar project. 60

76 10. BUDGET AND RESETTLEMENT FUNDING 159. This section contains a tentative budget for the resettlement activities, including all compensation payments, assistance costs, and LARP implementation costs To ensure that sufficient funds are available for the tasks of LAR, NEGU will allocate 100% of the funds for compensation of replacement costs and expected benefits according to the calculations in each LARP plus unforeseen expenses prior to the implementation of the LARP. PMU will be responsible for the timely allocation of funds for the implementation of each LARP. The PMU will compensate for the loss of property and other expenses in accordance with the social assistance standards established in the LARP and reflected in the entitlement matrix The compensation calculation methodology for each category is presented in the following subsections. The compensation costs indicated in section 10.5 are approximate and indicative which were taken from other similar projects under the same ADB loan. The resettlement budget shall be updated when the draft LARP is updated after the detailed engineering design becomes available and, as required by the country s relevant law, will be confirmed by a licensed valuation firm and by requesting tax/income reports before payment of compensation and assessment of actual impact Temporary Impact on Agricultural Land Holdings 162. Compensation for the temporary loss of the right to use the affected agricultural land is calculated according to the following formula: Compensation = Total area of land affected (ha) x net profit (average net profit for the last 3 years) 163. Data for calculating compensation come from affected farmers and other secondary sources. For calculation, the average net profit is used. However, during compensation payments, farmers will need to provide a tax return Permanent Land Acquisition 164. Permanent land acquisition is required for the construction of transmission line towers. Compensation for the permanent loss of land use rights is calculated using the following formula: Compensation = total area of affected land (ha) x net profit based on average earnings over the past three years x Harvest Compensation 165. The PMU will take on responsibilities to minimize and prevent the negative impact on to the AHs. So, the beginning of all construction works will be planned to be initiated at the time of completion of harvesting. In case this condition cannot be observed and there is a need to immediately begin the construction work, the PMU shall compensate for crop losses (primary and auxiliary crops) from the affected lands based on the following formula: Compensation = (total area of the affected crop) x (1 year of production costs per 1 ha) + (1 year of average net profit from 1 ha based on the average for the last 3 years) The amount of compensation shall cover all expenses for sowing and caring for the crop (tillage, oil and gas, chemical fertilizers, seeds, labor costs, organization of irrigation, etc.) as well as lost profits. 61

77 10.4. Trees and Forestry Vegetation 167. The loss of trees, if any and forestry vegetation will be compensated based on the evaluation report of an independent evaluation company. The exact number, types and compensation amounts for loss of trees and forestry vegetation will be determined during updating/finalization of this LARP. As of this time, it is noted that no affected trees were found but only forest vegetation on potentially affected state land was found. The proposed budget is indicative, based on a similar previous LARP and not based on any actuals. As stated above, the valuation report shall finalize this Tentative Budget 168. The tentative budget estimate for implementing this LARP is approximately UZS 2,972,161,318 equal to approximately USD 287,000 converted using the ADB Book Rate as of 16 October The compensation cost is indicative which is based on similar Northwest Region Power Transmission Line and Guzar-Regar 500kV Power Transmission Line Rehabilitation (for Building and structures replacement budget line) projects implemented by NEGU. The Northwest Region Power Transmission Line Project affected 169 households, which is 1.2 times less than this project. Therefore, the tentative budget of Northwest Region Power Transmission Line Project has been multiplied by 1.2 times to arrive at an indicative budget for this project, which will be made more realistic through the detailed measurement survey (DMS) at the time of the LARP updating subsequent to the availability of the detailed project design. The tentative budget includes rental allowance that is up to two years by law. A decent housing in Djizzak province costs around USD 300 per month according to the local renting advertisements. It is assumed to be the same in Sirdarya province. Also, the budget includes cost of relocation and one-time assistance to the families whose residential land plots will be partly restricted for construction of dwelling houses. Details of the tentative budget are shown below in Table 9.1, which will be recalculated during the LARP updating exercise with breakdown of the different assistance/support that will be considered in the compensation payment. Description Table 9.1 Indicative Budget Cost Estimate UZS Cost Estimate USD (A) Direct cost 1 Temporary impacts 1,366,314, ,935 2 Trees and forest vegetation 972,881,246 93,944 3 Compensation for restriction of land use 149,436, rights due to permanent land acquisition 4 Building and structures replacement and 212,059, other costs and damages (transition suppt) 5 Cost of temporary rental (up to 2 years) 74,562,984 7,200 6 Relocation and one-time assistance 10,355,970 1,000 Subtotal (A) 2,785,610, ,986 (B) Indirect cost 7 Reimbursement of Valuation fee 12,427, Consultations, GRM administration (lump 12,427, sum) 9 Duty and fees (if any) 50,628, Subtotal (B) 75,482, Total of (A)+(B) 2,861,093, , Contingency cost 111,067,778 10,725 GRAND TOTAL 2,972,161, ,000 62

78 11. INSTITUTIONAL ARRANGEMENTS 169. This section provides a comprehensive assessment of institutional capacity and resource potential for the preparation, implementation, and monitoring of resettlement activities, and describes additional measures necessary to increase institutional capacity. It describes the organizational procedures for making payments, as well as the progress of implementation, including how the preparation, approval and implementation of the relocation process will be related to the award of contracts and the start of construction work on the project NEGU the EA, will bear overall responsibility for the implementation of the LARP and will provide the entire budget for the implementation of the LARP. There are other relevant government agencies that will also be involved in land allotment and resettlement (LAR) activities, such as the local hokimiyats of Sirdarya and Djizzak provinces and the branches/divisions of the National Cadaster Committee PMU of JSC "National Electric Grid of Uzbekistan" 171. JSC National Electric Grid of Uzbekistan (NEGU), variously also known as "National Electric Networks of Uzbekistan" will have a common responsibility for all aspects of the project. The Project Management Unit (PMU) of NEGU as the implementing agency will be responsible for the day-to-day management of the project, including interagency coordination, as well as for the implementation of LARP and monitoring of compensations and payments through the in-house Resettlement Specialist (RS) RS of the PMU will be directly involved in all aspects of planning, implementation, interagency coordination, monitoring and reporting related to land acquisition and resettlement. The RS will, if necessary, be supported by the relevant project consultants, as well as information from the Design Institute, executive district/city and the Department of Land Resources and State Cadastre The provincial branches of NEGU in Sirdarya and Djizzak provinces are responsible for the transmission of electricity and the maintenance of high voltage power lines and substations in these provinces of Uzbekistan. The JSC "National Electric Grid of Uzbekistan" is a joint-stock company, responsible for sustained and regular power supply to consumers, as well as the maintenance of the high voltage power supply national networks in constant proper technical operation. NEGU has fourteen regional branches. Through its branches, electricity is transferred from the power station to the regional energy systems Provincial branches will be the starting point for the receipt of the complaint under the GRM process by acting as the contact body dealing with complaints. In addition, they will provide on-site monitoring of LARP implementation and assist the PMU in implementing the LARP activities Office of Land and State Cadastre 175. This is a permanent government body at the district and city levels which plays an increased role throughout the implementation of the project. It is responsible for: (i) identification of land losses by landowners and land users, as well as losses of agricultural production; (ii) determining the extent and area of land restitution, including the removal and temporary storage of the productive soil layer; (iii) determining the need for sanitary protection zones and water protection zones around structures; (iv) preparation of proposals for the allocation of equal value lands based on the principle of "land for land ; (v) research on land allotment alternatives currently used by developing unused lands; (vi) approval of the Enactment Act; 63

79 (vii) amending government orders on land use and land ownership, as well as other cadastre documents District hokimiyats of Sirdarya and Djizzak provinces 176. District hokimiyats will actively participate in the consideration and implementation of LARP and establishment of a Land Allocation and Evaluation Commission. They will participate in the establishment of District Land Allocation and Resettlement Commission (DLARC) with the following functions: (i) indicate the location of buildings and structures affected by the project; (ii) select land for construction sites; (iii) prepare and approve legislative acts on the right (lease) to use land plots and; (iv) approve resolutions on land use rights In addition to the permanent members, the Commission may include representatives of NEGU as well as affected persons including legal entities and individuals. The Land Allocation and Assessment Commission, as part of the District Land Allocation and Resettlement Commission is expected to consist of the following members: (i) NEGU (ii) Local Department of Agriculture and Water; (iii) Local Environmental Protection Committee; (iv) Uzbekistan Farmers Council; (v) Chairmen of the Mahalla Committees; and, (vi) Representatives of APs Community-based Organizations and Non-Governmental Organizations (NGOs) 178. The Farmer and Farm Associations (FFA) and the Mahalla Committees will be involved in relocation activities to ensure the rights and interests of the affected households. Implementing the LARP will require close coordination with local Mahalla committees and farmer associations. This coordination will help NEGU in the following: (i) Dissemination of information related to LARP; (ii) Verification of timely payment of compensation to relocated households; (iii) Receive early warning of complaints from relocated households; (iv) Checking whether relocated vulnerable families have been identified in accordance with the requirements set forth in this LARP; and (v) Obtaining information on any unplanned consequences, if any, that affect the displaced households Community-based organizations and NGOs will ensure that vulnerable households, if any, receive adequate support in accordance with the national social support program Independent Valuation Companies 180. Independent valuation companies are accredited private companies with a valid valuation license. These companies will be involved in estimating the replacement cost of the affected assets Figure 11.1 below illustrates the institutional and project implementation mechanisms for this project. 64

80 Figure 11.1: Project Implementation Chart Cabinet of Ministers JSC «NEGU» ADB Sirdarya and Djizzak Province Hokimiyats PMU Internal monitoring Regional and District Office of Land Resources and State Cadastre (including the Committee on Land Allocation and Assessment and the Committee on Land Allocation and Resettlement) NEGU Independent Valuation Company Affected households Farmer Councils, Mahalla Committees Consultation Information exchange Reporting 65

81 12. SCHEDULE OF LARP UPDATING AND IMPLEMENTATION 182. This section provides a detailed implementation timeline for all key land acquisition and resettlement activities, linked to the project schedule for the construction work. Table 12.1: Stages of LARP Activities Stage Event Responsible The timing A LARP PREPARATION 1. LARP Preparation 2. Submission of the project to ADB and the Government of Uzbekistan for comments and approval Resettlement expert through technical assistance and specialist of NEGU Resettlement expert as part of technical assistance, ADB and NEGU October, 2020 October, AH disclosures NEGU III Quarter B C EPC MOBILIZATION AND DETAILED DESIGN PREPARATION LARP IMPLEMENTATION LARP update after final detailed design decision NEGU/PIC 5. Compensation plan preparation NEGU/PIC 6. Public consultations and information disclosure on LAR activities NEGU/PIC/Contractor 7. Compensations to AH NEGU Allocation of replacement residential land plot Monitoring to assess the implementation of LARP within the filing of the report on LARP implementation NEGU/local hokimiyats NEGU 10. Construction Started After paying all compensation D MONITORING 11. Internal Monitoring: AH Dissemination NEGU 12. Preparing and submission Monitoring Reports to ADB NEGU I Quarter 2021 After completion and approval of the detailed design After the completion and approval of updated LARP by ADB Before Compensation to AHs Prior to awarding a contract for any construction work that entails land acquisition It should begin at the same time, when the AP will receive compensation. Before submitting a monitoring report Every six months during the implementation of the project AH=affected household; EPC=Engineering, Procurement and Construction; NEGU=JSC (Joint Stock Company) National Electric Grid of Uzbekistan; PIC=Project Implementation Consultant 66

82 13. MONITORING AND REPORTING 183. While effective institutional arrangements can facilitate implementation, effective monitoring will ensure compliance with the progress and pace of implementation, as originally planned. Monitoring is important to ensure the effective implementation of LARP, timely identification of unforeseen consequences associated with land acquisition activities and the adoption of appropriate measures on them The internal monitoring of LARP implementation will be carried out by NEGU. For this, the PMU will appoint a Resettlement Specialist in charge. Implementation of monitoring will be carried out in close coordination with the local hokimiyats and community and nongovernmental organizations. Internal monitoring will be carried out in parallel with the implementation of the project, and at different stages, respectively. By monitoring, NEGU will be able to provide: (i) in the event that there are any unforeseen social risks and consequences during the construction, implementation or operation of the Project that were not considered by the LARP, immediately inform ADB about the occurrence of such risks or impacts, with a detailed description of the event and a proposal for a plan and corrective actions; and (ii) report any actual or potential violations of the measures and requirements set forth in the LARP as soon as they become aware of the violation Indices of internal monitoring will be associated with immediate actions to implement the LARP and its interim and final results. This information will be collected directly on the ground and from the district land services and cadaster. The information will be used to evaluate the progress and results of the LARP implementation and adjust the work program, if necessary. Quarterly reports will be included in the standard supervision reports submitted to ADB. These monitoring activities will continue until the completion of all construction works and constantly provide semi-annual reports. These reports shall be submitted by NEGU to ADB. The PMU will disseminate relevant information from such reports to the APs. Specific interim monitoring steps will include: (i) AH disclosures. (ii) Status of land acquisition and compensation payments for land. (iii) Compensation for affected structures and other assets. (iv) Relocation of AHs. (v) Payments for the loss of assets It is noted that the IR Policy Principle #12 of ADB s SPS says "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...." Therefore, the semiannual monitoring report that should start from loan effectiveness shall include reporting on the evaluation as well when relevant. A separate evaluation report will not be required Apart from the semi-annual monitoring report mandated by ADB s SPS, upon completion of the LARP s implementation, the resettlement specialist of the PMU will prepare and NEGU will submit to ADB a LARP implementation completion report indicating the completion of compensation payment to all AHs (including 1 household for relocation). This LARP implementation completion report is subject to possible verification by ADB, which shall be the basis for issuing a notice of commencement of construction works to the site preparation contractor. 67

83 ANNEX 1. MAPS OF THE HV LINE CORRIDOR AND SUBSTATION AREA Figure A1. Corridor of two 220 kv HV lines "Syrdarya TPP - Zafarabad substation" Coordinates of the beginning and end of the route of 220 kv HV line: 1. Syrdarya TPP '57.57"N. 69 4'24.51"E.; 2. Zafarabad substation '35.85"N '24.87"E. Figure A2. Territory of the Zafarabad project substation in Jizzakh region Substation angular coordinates: 40 17'49.29"N., 67 34'16.36"E '42.46"N., 67 34'29.47"E '32.26"N., 67 34'20.70"E '38.69"N., 67 34'7.19"E. 68

84 Figure A3. A fragment of the map of flora along the route of 220 kv HV line 69

85 ANNEX 2. LISTS OF PARTICIPANTS AND PHOTOS OF PUBLIC CONSULTATIONS I. Sirdarya province, 26 February

86 71

87 72

88 73

89 II. Djizzak province, 27 February

90 75

91 76