Municipal Development Fund of Georgia
(MDFG)
Sustainable Urban Transport Investment Program
(SUTIP – 2879-GEO)
Tbilisi – Rustavi Urban Link – Section 2
Land Acquisition and Resettlement Plan
Draft
English Language
Prepared by:
Frédéric Giovannetti
fgiovannetti@yandex.ru
4 Rue Grivolas, 84000 Avignon, France
Prepared for:
Dohwa Engineering
Municipal Development Fund of Georgia
Date:
25 August, 2013
Revision:
4
Contributors:
Coordination, International Resettlement Specialist: Frederic Giovannetti
National Resettlement Specialists: Irakli Kaviladze and Keti Debguadze
Surveys and valuation: Aligator/ATOS
Project design: Dohwa Engineering/Transproject
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
1
Contents:
EXECUTIVE SUMMARY ................................................................................................................................. 8
SCOPE OF THE LARP AND SUMMARY PROJECT DESCRIPTION........................................................................ 8
LARP PREPARATION PROCESS ......................................................................................................................... 9
PROJECT LAR IMPACTS ..................................................................................................................................... 9
POLICY AND SOCIAL BACKGROUND .................................................................................................................10
LAR STRATEGY AND ENTITLEMENTS .............................................................................................................11
VALUATION .......................................................................................................................................................14
NEGOTIATIONS, EMINENT DOMAIN AND LEGALISATION ...............................................................................14
SUPPORT TO RELOCATION AND LIVELIHOOD RESTORATION .......................................................................14
LARP IMPLEMENTATION ARRANGEMENTS ...................................................................................................15
CONSULTATION PROCESS AND GRIEVANCE MANAGEMENT AND REDRESS ..................................................15
LARP BUDGET AND FINANCING ......................................................................................................................15
MONITORING & EVALUATION .........................................................................................................................17
1.
INTRODUCTION – PROJECT BACKGROUND........................................................................................19
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
2.
SCOPE OF THIS DOCUMENT ..................................................................................................................19
LAND ACQUISITION AND RESETTLEMENT FRAMEWORK ...................................................................19
PROJECT BACKGROUND ........................................................................................................................19
1.3.1 Overview .............................................................................................................................................. 19
1.3.2 Project Objective............................................................................................................................... 19
1.3.3 Project Summary Description ..................................................................................................... 20
MINIMISATION OF DISPLACEMENT ......................................................................................................23
LARP PREPARATION PROCESS ............................................................................................................25
1.5.1 Field Surveys ...................................................................................................................................... 25
1.5.2 Consultation........................................................................................................................................ 25
PENDING LARP IMPLEMENTATION TASKS .........................................................................................26
LARP-RELATED ADB CONDITIONALITIES .........................................................................................26
LIMITATIONS .........................................................................................................................................26
PROJECT IMPACTS ......................................................................................................................................27
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
METHODOLOGY OF CENSUS AND SURVEYS ..........................................................................................27
IMPACTS TO LAND .................................................................................................................................27
IMPACTS TO STRUCTURES ....................................................................................................................28
IMPACTS TO CROPS AND TREES ...........................................................................................................29
IMPACTS TO BUSINESSES ......................................................................................................................30
IMPACTS TO EMPLOYMENT...................................................................................................................32
OTHER IMPACTS ....................................................................................................................................32
2.7.1 Impacts to Indigenous Peoples ................................................................................................... 32
2.7.2 Gender Impacts ................................................................................................................................. 32
2.7.3 Access Impacts / Severance ......................................................................................................... 32
2.7.4 Non-viable (“Orphan”) Land ........................................................................................................ 32
VULNERABLE HOUSEHOLDS .................................................................................................................33
SEVERELY AFFECTED HOUSEHOLDS ....................................................................................................33
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2.10 SUMMARY OF IMPACTS .........................................................................................................................33
2.11 ANALYSIS OF LAR SENSITIVE ISSUES ...................................................................................................35
2.11.1 Impacts to Internally Displaced Persons ................................................................................ 35
2.11.2 Partially Affected Two-Storey Apartment Building ........................................................... 35
2.11.3 Unregistered, Not Legalizable Land.......................................................................................... 35
2.11.4 Contentious Situation with Residents of a Five-Storey Building .................................. 36
2.11.5 Businesses ........................................................................................................................................... 36
2.11.5.1
2.11.5.2
Ardjevani ............................................................................................................................................. 36
GeoPVA/BIG ....................................................................................................................................... 36
2.11.6 Participation of Local Governments ......................................................................................... 37
3.
SOCIO-ECONOMIC SURVEY .......................................................................................................................38
3.1
3.2
INTRODUCTION ......................................................................................................................................38
SOCIO-ECONOMIC CHARACTERISATION OF THE AFFECTED POPULATION ........................................38
3.2.1 Demography ....................................................................................................................................... 38
3.2.2 Nationality ........................................................................................................................................... 38
3.2.3 Economic Activities and Livelihoods ....................................................................................... 39
3.2.3.1
3.2.3.2
3.3
4.
OVERVIEW..............................................................................................................................................42
GEORGIAN LEGISLATION .......................................................................................................................42
INVOLUNTARY RESETTLEMENT REQUIREMENTS UNDER THE ADB'S SPS (2009) .........................43
COMPARISON OF GEORGIA LAWS AND REGULATIONS WITH ADB'S SPS .........................................44
RESETTLEMENT AND COMPENSATION STRATEGY .........................................................................46
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6.
VULNERABILITY .....................................................................................................................................41
LEGAL AND POLICY BACKGROUND .......................................................................................................42
4.1
4.2
4.3
4.4
5.
Livelihoods .......................................................................................................................................... 39
Household Income and Expenditures ....................................................................................... 40
KEY SPECIFIC SOCIAL FACTORS DRIVING THE STRATEGY .................................................................46
LARF PRINCIPLES AND ENTITLEMENTS APPLICABLE FOR THE PROJECT ........................................46
ELIGIBILITY ............................................................................................................................................46
ENTITLEMENTS ......................................................................................................................................47
5.4.1 Entitlement Matrix........................................................................................................................... 47
5.4.2 Specifics for Certain Entitlements ............................................................................................. 49
VALUATION ............................................................................................................................................50
COMPENSATION RATES FOR LAND .......................................................................................................50
COMPENSATION CALCULATION FOR STRUCTURES..............................................................................52
COMPENSATION RATES FOR PERENNIAL CROPS .................................................................................52
CONDITIONS FOR EMINENT DOMAIN AND LEGALIZATION .................................................................55
IMPLEMENTATION......................................................................................................................................56
6.1
6.2
INTRODUCTION ......................................................................................................................................56
KEY LARP IMPLEMENTATION TASKS .................................................................................................56
6.2.1 Overview .............................................................................................................................................. 56
6.2.2 Sequence of Key LARP Tasks ....................................................................................................... 56
6.2.3 Negotiation and Compensation Process ................................................................................. 59
6.2.4 Support to Relocation ..................................................................................................................... 60
6.2.5 Support to Livelihood Restoration of Business Owners .................................................. 60
6.2.6 Support to Livelihood Restoration of Business Employees ............................................ 60
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7.
ORGANISATIONAL ARRANGEMENTS ....................................................................................................62
7.1
7.2
7.3
7.4
7.5
8.
OVERVIEW..............................................................................................................................................62
CURRENT RESETTLEMENT CAPACITY AT MDFG ................................................................................62
RESETTLEMENT UNIT ...........................................................................................................................63
7.3.1 Project Manager – Job Description and Requirements ..................................................... 63
7.3.2 Resettlement Consultant – Job Description........................................................................... 63
7.3.3 Engagement Specialist – Job Description ............................................................................... 64
7.3.4 Data Manager – Job Description ................................................................................................. 65
SUPPORT TO THE RESETTLEMENT UNIT AND CAPACITY BUILDING .................................................65
ROLE OF OTHER AGENCIES AND INSTITUTIONS ..................................................................................65
CONSULTATION AND DISCLOSURE .......................................................................................................67
8.1
CONSULTATION FOR THE PREPARATION OF THIS LARP ...................................................................67
8.1.1 Introduction and Overview .......................................................................................................... 67
8.1.2 Consultation Process....................................................................................................................... 67
8.1.3 Key Issues Raised in Consultation ............................................................................................. 68
8.1.3.1
8.1.3.2
8.2
8.3
9.
Local Residents ................................................................................................................................. 68
Businesses ........................................................................................................................................... 69
FURTHER CONSULTATION AND DISCLOSURE FOR THE FINALISATION OF THIS LARP ....................70
PUBLIC ENGAGEMENT DURING LARP IMPLEMENTATION .................................................................70
GRIEVANCE MANAGEMENT AND REDRESS ........................................................................................72
9.1
9.2
9.3
9.4
9.5
9.6
10.
3
OVERVIEW..............................................................................................................................................72
LOGGING AND INTERNAL REVIEW OF GRIEVANCES ............................................................................72
9.2.1 Avenues Available to Lodge a Grievance ................................................................................ 72
9.2.2 Grievance Logging and Review................................................................................................... 72
GRIEVANCE REDRESS COMMITTEE.......................................................................................................73
NON-VIABLE LAND CLAIMS ..................................................................................................................73
LAST RESORT: JUDICIARY .....................................................................................................................73
REPORTING ON GRIEVANCES ................................................................................................................74
IMPLEMENTATION SCHEDULE ...............................................................................................................75
10.1 OVERVIEW..............................................................................................................................................75
10.2 LARP IMPLEMENTATION SCHEDULE ...................................................................................................75
10.3 PHASING OF COMPLIANCE AUDITS.......................................................................................................75
11.
COST OF THE LARP AND FINANCING ....................................................................................................77
11.1 LARP BUDGET ......................................................................................................................................77
11.1.1 Overview .............................................................................................................................................. 77
11.1.2 LARP Budget ....................................................................................................................................... 77
11.2 FINANCING OF THE LARP .....................................................................................................................77
11.3 TAXES .....................................................................................................................................................77
12.
MONITORING AND EVALUATION ...........................................................................................................80
12.1 INTRODUCTION AND OVERVIEW ..........................................................................................................80
12.2 INTERNAL MONITORING .......................................................................................................................80
12.3 INDEPENDENT MONITORING ................................................................................................................81
12.3.1 Overview .............................................................................................................................................. 81
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12.3.2 Phase I – Compliance of LARP Implementation .................................................................. 81
12.3.3 Phase II – Livelihood Restoration .............................................................................................. 81
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Annexes:
ANNEX 1 – PHOTOGRAPHS ..................................................................................................................................83
ANNEX 2 – SURVEY AND CENSUS FORM ..........................................................................................................85
SOCIO-ECONOMIC SURVEY FORM ....................................................................................................................85
INVENTORY FORM ............................................................................................................................................87
ANNEX 3 – INFORMATION LEAFLET.................................................................................................................90
ANNEX 4 – PUBLIC CONSULTATION REPORT ...............................................................................................97
CURRENT STATUS OF PUBLIC CONSULTATIONS AND PLANS FOR FURTHER CONSULTATIONS ...................97
CONSULTATIONS CONDUCTED DURING JULY 7 - 18 ......................................................................................97
ANNEX 5 – BUILDING VALUATION METHODOLOGY – EXAMPLE OF CALCULATION SHEET ...... 113
ANNEX 6 – LIST AND CHARACTERISTICS OF AFFECTED PLOTSERROR! BOOKMARK NOT DEFINED.
Figures:
FIGURE 1. PROJECT OVERVIEW .......................................................................................................................21
FIGURE 2. ALTERNATIVE ROUTING OPTIONS ................................................................................................22
FIGURE 3. OCCUPATIONS OF AFFECTED HOUSEHOLD MEMBERS .................................................................39
FIGURE 4. MAIN OCCUPATIONS OF AFFECTED HOUSEHOLD MEMBERS.......................................................39
FIGURE 5. NEGOTIATION AND COMPENSATION FLOW CHART .....................................................................59
FIGURE 6. IMPLEMENTATION SCHEDULE........................................................................................................76
Tables:
TABLE 1. OVERVIEW OF MAIN LAR AND SOCIAL IMPACTS OF SECTION 2 ..................................................23
TABLE 2. CHANGES IN DESIGN DRIVEN BY RESETTLEMENT MINIMISATION ...............................................24
TABLE 3. LAND TENURE REGIME OF AFFECTED LAND PLOTS......................................................................28
TABLE 4. IMPACTS TO STRUCTURES ...............................................................................................................28
TABLE 5. AFFECTED TREES .............................................................................................................................29
TABLE 6. IMPACTS TO BUSINESSES .................................................................................................................30
TABLE 7. SEVERELY AFFECTED HOUSEHOLDS ...............................................................................................33
TABLE 8. IMPACT SUMMARY ...........................................................................................................................34
TABLE 9. AGE AND GENDER DISTRIBUTION OF AFFECTED PEOPLE ............................................................38
TABLE 10. DEMOGRAPHIC PROFILE OF AFFECTED HOUSEHOLDS ...............................................................38
TABLE 11. NATIONALITY OF AFFECTED HEADS OF HOUSEHOLDS ...............................................................39
TABLE 12. HOUSEHOLD INCOME AND EXPENDITURES .................................................................................40
TABLE 13. POSSESSION OF HOUSEHOLD ITEMS AND VEHICLES ...................................................................41
TABLE 14. COMPARISON OF GEORGIA LAWS/REGULATIONS ON LAR AND ADB RESETTLEMENT
POLICY ....................................................................................................................................................44
TABLE 15. ENTITLEMENT MATRIX .................................................................................................................47
TABLE 16. LAND COMPENSATION RATES ......................................................................................................51
TABLE 17. COMPENSATION RATES FOR PERENNIAL CROPS .........................................................................53
TABLE 18. SEQUENCE OF KEY LARP FINALISATION AND IMPLEMENTATION TASKS ................................56
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TABLE 19. MEETINGS HELD ............................................................................................................................67
TABLE 20. MAIN ISSUES RAISED IN CONSULTATION MEETINGS AND ASSOCIATED ANSWERS –
LOCAL RESIDENTS .................................................................................................................................68
TABLE 21. MAIN ISSUES RAISED IN CONSULTATION MEETINGS AND ASSOCIATED ANSWERS –
BUSINESSES ............................................................................................................................................69
TABLE 22. FINALISATION OF THE LARP AND RELATED CONSULTATION AND DISCLOSURE
PROCESS .................................................................................................................................................70
TABLE 23. LARP BUDGET ..............................................................................................................................78
Abbreviations:
ADB
AH
AP
DMS
GoG
GRC
IA
EMA
IEE
Km
LAR
LARC
LARF
LARP
M&E
MDFG
MFF
MOESD
MOF
NAPR
NGO
PFR
PPR
PPTA
PRRC
R&R
RoW
RU
SES
SPS
Asian Development Bank
Affected Household
Affected Person
Detailed Measurement Survey
Government of Georgia
Grievance Redress Committee
Implementing Agency
External Monitoring Agency
Initial Environmental Examination
kilometre
Land Acquisition and Resettlement
Land Acquisition and Resettlement Consultant
Land Acquisition and Resettlement Framework
Land Acquisition and Resettlement Plan
Monitoring and Evaluation
Municipal Development Fund of Georgia
Multitranche Financing Facility
Ministry of Economy and Sustainable Development
Ministry of Finance
National Agency of Public Registry
Non-Governmental Organization
Periodic Financing Request
Project Progress Report
Project Preparatory Technical Assistance
Property Rights Recognition Commission
Resettlement and Rehabilitation
Right of Way
Resettlement Unit
Socioeconomic Survey
Safeguard Policy Statement
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
7
Definitions:
Beneficiary Community - All persons and households, situated within the government-owned or
acquired property, who voluntarily seek to avail and be part of the Project and represented by a
community association that is duly recognized by the community residents, accredited by the local
government, and legally registered with the appropriate institutions.
Compensation - Payment in cash or in kind of the replacement cost of the acquired assets.
Entitlement - Range of measures comprising compensation, income restoration, transfer
assistance, income substitution, and relocation which are due to affected people, depending on the
nature of their losses, to restore their economic and social base.
Host population - Community residing near the area where the Project beneficiaries propose to
voluntarily resettle as part of the Project.
Improvements - Structures constructed (dwelling unit, fence, waiting sheds, animal pens, utilities,
community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household,
institution, or organization.
Land Acquisition - The process whereby a person is compelled by a government agency to alienate
all or part of the land a person owns or possesses to the ownership and possession of the
government agency for public purpose in return for a consideration.
Affected Person/People - Any person affected by Project-related changes in use of land, water,
natural resources, or income losses.
Affected Household - All members of a household, residing under one roof and operating as a
single economic unit, who are adversely affected by the Project or any of its components. It may
consist of a single nuclear family or an extended family group.
Non-Viable Land (or “Orphan” Land): Land that is affected partially but to such to an extent that
the remainder is not usable.
Rehabilitation - Compensatory measures provided under the Policy Framework on involuntary
resettlement other than payment of the replacement cost of acquired assets.
Relocation - the physical relocation of a AP/AF from her/his pre-Project place of residence.
Replacement Cost - The value determined to be fair compensation for land based on its productive
potential, the replacement cost of houses and structures (current fair market price of building
materials and labor without depreciation or deductions for salvaged building material), and the
market value of residential land, crops, trees, and other commodities.
Resettlement - All measures taken to mitigate any and all adverse impacts of the Project on AP’s
property and/or livelihood, including compensation, relocation (where relevant), and rehabilitation
of the damaged/removed infrastructure and installations.
Rayon (District): Local self-government
Sacrebulo (Village): Village level self-government unit
Exchange rate considered in the document: 1.65 GEL = 1 USD
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
8
EXECUTIVE SUMMARY
SCOPE OF THE LARP AND SUMMARY PROJECT DESCRIPTION
1.
This document is the Land Acquisition and Resettlement Plan (LARP) for Section 2 of the
Tbilisi Rustavi Urban Link Road (the Project). It was developed by the Municipal Development
Fund of Georgia (MDFG), with support from consultants. Its objective is to identify and assess
Land Acquisition and Resettlement (LAR) impacts and to plan associated compensation for
section 2 (km 4 to 10.8) of the “Tbilisi-Rustavi Road Improvement Project”. The draft LARP has
been prepared based on the concept design. It is submitted in advanced draft to facilitate the
progress of ADB and MDFG decision making process, and will be updated later to an
“implementation-ready” stage based on the detailed engineering design. It is prepared in
conformance with both ADB requirements (the Safeguard Policy Statement or SPS) and
Georgian legislation pertaining to LAR. It has been developed in the period between May and
July 2013, and has involved consultation with potentially affected people, interaction with the
design team, and interaction with Georgian authorities.
2.
Together with other projects, the Tbilisi-Rustavi Road Improvement Project (hereafter
“Project”) is included in Tranche 3 of the Sustainable Urban Transport Investment Program
(SUTIP, hereafter “Program”). The Program is financed through an ADB Multi-Tranche Facility
(MFF), and previous sections of the same road (section 1 from KM 0 to KM 4.0 and section 3
from KM 10.8 to 17.1) are financed by Tranche 2 of the MFF. LARPs for sections 1 and 3 were
prepared earlier, are finalised and publicly disclosed.
3.
The Project has two key objectives:
o
o
4.
The existing 2-lane highway between Tbilisi and Rustavi has not enough capacity to carry the
whole traffic entering or exiting Tbilisi at peak hours. The road is one of the busiest in the
country. The Government of Georgia has therefore decided to upgrade this road, and has
declared the modernization of the Tbilisi-Rustavi road as a priority project. The project
envisages upgrading the existing 17.1 km long, 2-lane road between Tbilisi and Rustavi into an
international standard, “Category I” highway, with 4 lanes and a general design speed of
120km/hour. The Tbilisi-Rustavi section is part of the larger Tbilisi – Red Bridge (Azerbaijan
border) highway. The Tbilisi-Rustavi part consists of three sections:
o
o
o
5.
A local and urban one, associated to the improvement of the urban link between Tbilisi
and Rustavi;
An international one, the enhancement of the link between Azerbaijan and Georgia, and
thereby between the Caspian sea (Baku port) and the Black Sea (Poti and Batumi ports).
Section 1 (KM 0 to KM 4+000) is an upgrade and widening of the existing road and has
relatively limited LAR impacts as a result; a LARP was approved in 2012;
Section 2 (KM 4+000 to KM 10+800) is a new road as in this section the widening of the
existing highway would have caused significant impacts. In contrast with Sections 1 and
3, Section 2, which is the one addressed in this LARP, will entail significant physical and
economic displacement;
Section 3 (KM 10+800 to KM 17+400) is also an upgrade and widening of the existing
road; LAR impacts are relatively limited and a LARP was approved in 2012.
The 6.8 km long section 2 passes through housing and industrial areas, and generates
significant displacement impacts as a result. For this reason several routing and design
options have been considered to avoid or minimize involuntary resettlement. Three
alternatives for this section were considered and evaluated taking into account technical,
economic and resettlement aspects. Alternative 3, which is the one considered in this LARP,
was selected as offering the best compromise between cost, technical constraints, and
displacement impact minimisation.
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9
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
6.
The preferred option avoids the most densely populated areas and the largest buildings by
being pushed towards the Mtkvari River wherever this is technically possible (an option with
higher construction costs but one that entails less displacement impacts). Further design
refinement took place in cooperation between the design and the resettlement teams as
presented in detail in section 1.4 of the main report. The outcome of this impact minimisation
process is that impacts to the largest residential buildings have been avoided by pushing the
Right-of-Way towards the Mtkvari river and changing the design of the road from a 120 kph
motorway to a slower, urban road for part of its length and that a number of active industrial
facilities have been avoided as well.
LARP PREPARATION PROCESS
7.
This LARP was prepared based on surveys carried out between end June and end July 2013,
including the following:
o
o
o
o
An inventory of losses,
A detailed asset valuation for each affected plot/affected item,
A census; and
A socio-economic survey (SES) of those Affected Households who could be located and
interviewed (152 out of 282).
8.
This draft LARP will be finalised and made “implementation-ready” when the final Project
design is approved by the Government of Georgia and will be submitted to ADB’s formal
approval and certain complements have been undertaken.
9.
Consultation was conducted during the LARP preparation process and included:
o
o
o
Public meetings in the affected area,
Information meeting and focus group with businesses,
Face to face interviews with affected people.
PROJECT LAR IMPACTS
10.
The following table provides a summary of Project LAR impacts:
Table ES1: Summary of Project LAR Impacts
TYPE OF IMPACT
LAND
A. Private Land
Type 1: Private registered land
Type 2: Land owned by Housing Partnership
Type 3: Unregistered legalizable land
Sub-total A
B. Public Land
Type 4 Public Land leased to private users
Type 5: Public Land informally used by unregistered
private users and not legalizable
Type 6: Public Land (not used by private users)
Sub-total B
Total (Land)
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IMPACT INDICATORS
Affected Plots
(number)
Affected Area
(sq.m.)
Affected
Households
187
2
25
214
173,245
854
16,969
191,068
198
27
225
1
140
1
59
14,158
56
38
98
312
89,380
103,678
294,746
57
282
10
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
TYPE OF IMPACT
IMPACT INDICATORS
STRUCTURES
Residential structures (houses)
Apartment Blocks
Industrial and commercial buildings
Minor structures (excluding asphalt covered areas)
Total (Structures)
TREES
Young (0-4 year old)
Affected
Structures
81
1
90
520
692
Affected Area
(m2)
8,580
500
19,930
31,820
60,830
Affected
Households
81
40
75
160
322
Affected Trees
1,611
Young adult (5-9 year old)
2,437
Adult (10-14 year old)
793
Adult (15 and more)
1,831
Total (Trees)
6,672
BUSINESSES
Large industrial companies
Affected Businesses
2
Filling stations (5 functional, 3 not functional)
8
Car maintenance workshops and washing bays
5
Restaurants and hotels
4
Bakeries
2
Shops
3
Light industrial workshops and others
9
Total (Businesses)
33
Affected Business Employees
137
VULNERABLE HOUSEHOLDS
Affected Vulnerable Households
Total (Vulnerable Households)
SEVERELY AFFECTED HOUSEHOLDS
100
Severely Affected Households
Physically displaced households
121
Households losing 10% of their productive assets or
more
197
Business owners
Total (Severely Affected
11.
33
People)1
270
Project impacts are significant, particularly as physical displacement and resettlement will
occur as a result of the Project, and this needs to be reflected in adequate implementation
arrangements.
POLICY AND SOCIAL BACKGROUND
12.
Land acquisition and resettlement for the Project and specifically the development of this
LARP are conducted in conformance with the following:
o
o
o
1
Georgian legislation;
The ADB Safeguards Policy Statement 2009 (SPS 2009);
The Land Acquisition and Resettlement Framework prepared in April 2010 by the
Municipal Development Fund's Sustainable Transport Project and agreed with the ADB.
The total is lower than the sum of the three categories because there are overlaps.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
13.
11
Socio-economic information on the affected AH was gathered based on the full (100%) census
of AHs available on site. Out of 282 directly affected households, 152 could be located and
were available for an interview (54%). It transpires from the social baseline that the affected
area presents a unique mix of social and economic characteristics that have to be taken into
consideration in the resettlement and compensation strategy:
o
o
o
There is a mix of modern industries (including one “high tech” pharmaceutical firm) and
artisanal or semi-industrial activities in old, dilapidated Soviet-era buildings.
There is a mix of a fairly poor population living in poor-quality Soviet apartment blocks
or in unregistered structures along the river, and a mid to high-income category of people
living in individual housing of varying quality, with some fairly valuable houses towards
the end of the Project on the Rustavi side.
The population of vulnerable households, including Internally Displaced People (IDPs)
living either in small unregistered individual houses along the Mtkvari river or in
apartment blocks is sizable. For those who are physically displaced, specific assistance
provisions have to be put in place as cash compensation of their structures would live
them at risk of impoverishment. This particularly applies to the IDP population.
LAR STRATEGY AND ENTITLEMENTS
14.
Based on Georgian laws on land acquisition and the Safeguards Policy Statement (2009), the
core principles applicable to LAR induced by the Project are as follows:
o
o
o
o
o
o
o
o
o
o
o
15.
Compensation eligibility is limited by a cut-off date (24 July 2013). AHs entitled for
compensation or at least rehabilitation provisions under the Project are:
o
o
o
o
16.
Affected People will be assisted in improving or at least restoring their pre-project
standards of living;
Information and consultation will be continue to be carried out to fully inform Affected
Households about the LAR process and allow them to provide inputs to LAR planning;
The final LARP will be disclosed to the public and a summary information pamphlet in
Georgian will be disseminated to all AHs;
A grievance redress mechanism will be established;
Formally held properties will be compensated at full replacement value per Georgian law
and the SPS;
Legalizable APs will be legalized and fully compensated for land losses;
Non-titled APs (informal dwellers or squatters) will receive a livelihood allowance in lieu
of land compensation and will be fully compensated for losses other than land;
Non-viable (“orphan”) land may be compensated in full subject to a request to this effect
being lodged to the Execution Agency and to review of this request;
Physically displaced, vulnerable and severely affected AHs will be provided special
assistance, specifically to secure alternative dwelling;
Compensation entitlements will be provided to AHs before the occurrence of impacts
(prior to commencement of construction activities);
The execution and the achievement of the livelihood restoration objectives of the LARP
will be monitored and disclosed.
All AHs losing land either covered by legal title, legalizable, or without registered
ownership status;
Tenants whether registered or not;
Owners of buildings, crops, plants, or other objects attached to the land; and
AHs losing business, income, and salaries.
The following table presents the entitlement matrix applicable to the Project, based on the
LARF and adapted to fit the circumstances of the affected population.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Table ES2: Entitlement Matrix
Type of Loss
Land
Application
Definition of APs
Permanent loss of
agricultural land
AH losing agricultural
Owner with full
land regardless of impact registration
severity
Legalizable Owner
Informal Settlers (AHs
with no
registration/valid
documentation and non
legalizable)
Non-Agricultural Land AH losing their
Owner with full
commercial/ residential registration
land
Legalizable Owner
Compensation Entitlements
Cash compensation at replacement cost.
These AP will be supported to obtain
legalisation and provided with cash
compensation at replacement cost.
One time self-relocation allowance in
cash. The relocation allowance is not
dependent on the number of AH
members or land characteristics and is a
fixed amount per family equal to 1 year of
minimum subsistence income2.
Cash compensation at replacement cost.
These APs will be legalized and provided
with cash compensation at replacement
cost..
Renter/Leaseholder
Rental allowances in cash equal to 3
months of leasing costs, according to
leasing fees approved by the
municipalities for leasing the land of such
category.
Informal Settlers (AHs
with no
registration/valid
documentation and not
legalizable).
One time self-relocation allowance in
cash The relocation allowance is not
dependent on the amount of AH members
or land characteristics and constitutes
fixed amount per family equal to 1 year at
minimum subsistence income.
Non-viable (“orphan”) Land that is affected
Owner with full
land)
partially but to such to an registration or
extent that the remainder legalizable owner
is not usable
(subject to legalisation)
Subject to a request being lodged by the
land owner, orphan land may be
compensated in full if the review of the
request indicates that the remainder
cannot be used economically
Buildings and Structures
Residential and non
residential
structures/assets
All AHs regardless of
their legal ownership/
registration status
(including legalizable
and Informal Settlers)
Full impact: Cash compensation for loss
of building/ structures at full
replacement costs free of depreciation
and transaction costs
Partial impact: compensation for repairs
Loss Of Community Infrastructure/Common Property Resources
Loss of common
property resources
2
Community/Public
Assets
Community/Government Reconstruction of the lost structure in
consultation with community and
restoration of their functions
The minimum subsistence income is calculated based on a 5 people family and the monthly-updated benchmarks
indicated by the National Statistics Office of Georgia at the end of the impacts survey (June 2013: 298 GEL x month).
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Type of Loss
Application
Definition of APs
Compensation Entitlements
Loss of Income and Livelihood
Crops
Standing crops affected
All AHs regardless of
Crop compensation in cash at market rate
legal status (including
at gross crop value of expected harvest.
legalizable and Informal
Settlers)
Trees
Trees affected
All AHs regardless of
legal status (including
legalizable and Informal
Settlers)
Cash compensation at market rate on the
basis of type, age and productive value of
the trees. In addition, trees will be cut by
the construction contractor and made
available to APs for timber
All AHs regardless of
legal status (including
legalizable and Informal
Settlers)
Owner:
(i). (permanent impact) cash indemnity
of 1 year net income; and technical and
administrative support from the RU to
relocate the business in appropriate
premises
Business/Employment Business/employment
loss
(ii) (temporary impact) cash indemnity of
net income for months of business
stoppage. Income will be calculated
based on tax declaration or in its absence
on minimum subsistence income.
Permanent worker/employees:
(i) indemnity for lost wages equal to 3
months of minimum subsistence income
AND
(ii) support to business owner to relocate
the business as quickly as possible (see
above)
AND
(iii) support from RU to enrolment into
existing livelihood restoration
programmes such as business training
and micro-credit
Allowances
Severe Impacts
>10% land impact
Physically displaced
households
Owners of businesses
that have to interrupt
activity permanently or
temporarily
All severely affected AHs Agricultural income: additional crop
including informal
compensation covering 1 year yield from
settlers
affected land.
Other income: additional compensation
for 3 months of minimum subsistence
income.
Relocation/Shifting
Transport/transition
costs
All AHs to be relocated
Vulnerable People
Allowances
F.Giovannetti - Rev.4
Assistance to identification of a suitable
replacement dwelling
Provision of an allowance of 298 GEL
covering transport expenses and
livelihood expenses for a 3 months
transitional period.
AHs below poverty line, Allowance equivalent to 3 months of
headed by Women,
minimum subsistence income and
disabled or elderly
employment priority in project-related
jobs
14
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Type of Loss
Application
Definition of APs
Compensation Entitlements
IDPs living in
municipal or other
housing
Support to relocation
Registered IDPs
Assistance to the identification of suitable
municipal housing in cooperation with
relevant authorities in charge of support
to IDPs
Temporary impact
during construction
All AFs
A Rent fee will be assessed and paid
based on LARP principles during
construction.
Damages during
construction
All AHs
Case by case basis: compensation will be
assessed and paid based on rates in this
LARP if damages occur during
construction.
Other Losses
Unforeseen impacts, if
any
EA will compensate unforeseen
resettlement impact during project based
on this LARP provisions
VALUATION
17.
All valuation is at full replacement value.
o
o
o
o
o
Land is valued at market rates determined through a survey of land sales in the three
months before the survey with transaction cost added;
Houses/buildings are valued at replacement rate;
Annual crops (very limited in the Project footprint): gross market value of the harvest for
one year of production;
Trees: these receive compensation as follows:
o Saplings are valued based on transplanting costs;
o Fruit/productive trees were valued based on tree type and the net market value of 1
year income x number of years needed to grow a new fully productive tree;
The unit compensation rates were assessed by a certified valuer (audit company “ATOS”)
based on the methods described above in general terms, and which are further detailed
below for land, structures and perennial crops.
NEGOTIATIONS, EMINENT DOMAIN AND LEGALISATION
18.
Eminent domain procedures are applicable to this project. Land acquisition through
expropriation will be pursued as a last resort where no agreement between APs and MDFG
can be reached through negotiations.
19.
APs who do not have proper registration or titles but are legitimate occupants of the plots they
lose, will be legalized and registered in the land records. After this legalization is complete
they will receive equal compensation to any other legal APs. Legalizable APs will receive
technical and legal support to prepare their legalization applications.
SUPPORT TO RELOCATION AND LIVELIHOOD RESTORATION
20.
Specific support provisions are included in the LARP to accommodate the needs of specific
categories of affected people:
o
o
IDPs and vulnerable people living in poor conditions in a two-storey building that will be
demolished will receive specific support to be able to relocate and re-establish their
livelihods;
Business owners will receive specific assistance to relocation of their premises, in
addition to compensation for immoveables and business losses;
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
15
Business employees will likewise be supported to re-establish employment either in
affected businesses or elsewhere.
LARP IMPLEMENTATION ARRANGEMENTS
21.
MDFG will take the lead in the implementation of the LARP. MDFG will coordinate
interventions of other parties as needed. MDFG will establish a Resettlement Unit staffed by
experienced personnel for the purpose of LARP implementation. The main report presents a
detailed list of tasks to be undertaken, as well as a detailed implementation schedule and job
descriptions for the specialist constituting the MDFG Resettlement Unit.
22.
Specific capacity building activities are identified in the main report, which will provide
technical assistance and on-the-job coaching to the Resettlement Unit.
CONSULTATION PROCESS AND GRIEVANCE MANAGEMENT AND REDRESS
23.
The preparation of the LARP included consultation and participation. The focus of these
consultations was to ensure that APs and other stakeholders would be well informed of the
Project and of the LAR process, and could participate in planning. Consultation tasks started
after a first alignment was available in end June 2013, and were undertaken in parallel and
concurrently with the surveys in July 2013. Consultation activities will continue throughout
design finalization and LARP updating activities.
24.
The consultation process included three key activities:
o
o
o
Face to face interaction with APs, where the Project and its LAR impacts were explained
in one to one meetings to all APs, during the survey and valuation exercise in July 2013;
Formal information and consultation meetings carried out concurrently with the surveys,
which gathered about 100 individuals in total;
Specific meeting with business owners.
25.
A leaflet was developed in Georgian language to support the information and consultation
process.
26.
The main report presents all issues raised by participants in the meetings and the answers
that were then given by the team.
27.
Further public consultation will be conducted during the LARP finalisation phase, as well as
during its implementation, and will involve the main following tasks:
o
o
o
o
o
o
Grievance management and redress, including the establishment of a Grievance Redress
Committee;
On-going information to APs on compensation rules, entitlements, compensation and
payment process;
On-going consultation on any issues with affected people and/or other stakeholders;
Support to legalisation of unregistered plots;
Support to relocation for physically displaced people;
Support to vulnerable people.
LARP BUDGET AND FINANCING
28.
All funds for compensation and allowances will be provided from the Government of Georgia’s
budget. MDFG will ensure the allocation of funds for compensation to be paid for land
acquisition and resettlement. MDFG will get the budget approved from the Ministry of Finance
and allocate the funds in advance for implementation of the LARP.
29.
Taxes will be added to the compensation if and where such taxes are due by affected people.
30.
The LARP budget is shown in the following table.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
F.Giovannetti - Rev.4
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17
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Table ES3: LARP Budget
#
A
A1
A11
A12
A13
A2
A20
A21
A22
A3
A4
A5
B
B1
B2
B3
B4
C
C1
C2
C3
C4
C5
Item
COMPENSATION
Land
Private land
Public land
Unregistered land
Buildings and structures
Buildings and structures
Two storey apartment building (including top-up)
Rehabilitation of housing for 6 IDP families
Trees
Annual crops
Business losses
SUB-TOTAL A COMPENSATION
ALLOWANCES
Severe impact (228 beneficiaries)
Vulnerable people (82 beneficiaries)
Relocation (81 beneficiaries)
Loss of employment (137 beneficiaries)
SUB-TOTAL B ALLOWANCES
IMPLEMENTATION
Operational cost of the Resettlement Unit (12
months x GEL 8,000)
Consultants
Legal support
Independent Monitoring Agency
Livelihood restoration plan
SUB-TOTAL C IMPLEMENTATION
GRAND TOTAL BEFORE CONTINGENCIES
CONTINGENCIES 12.5%
GRAND TOTAL WITH CONTINGENCIES
Cost GEL
Cost USD
12,572,864
-
7,619,918
-
21,104,936
3,300,000
260,000
449,805
231
1,451,296
39,139,132
12,790,870
2,000,000
157,576
272,609
140
879,573
23,720,686
203,832
73,308
72,414
122,478
472,032
123,535
44,429
43,887
74,229
286,080
96,000
58,182
60,000
40,000
60,000
330,000
586,000
40,197,164
5,024,646
36,364
24,242
36,364
200,000
355,152
24,361,918
3,045,240
45,221,810
27,407,157
MONITORING & EVALUATION
31.
LAR tasks will be subjected to both internal and external monitoring:
o
o
Internal monitoring will be conducted by MDFG,
External monitoring will be assigned to an Independent Monitoring Agency (IMA) to be
hired by MDFG with ADB’s approval.
32.
Internal monitoring will be carried out by MDFG through the services of an in-house LAR
consultant integrated into MDFG’s teams. Results will be communicated to ADB through the
quarterly Project implementation and monitoring reports submitted by MDFG. The main
report provides details on indicators.
33.
Independent monitoring will be carried out during LARP implementation (“Phase I”) and
thereafter (“Phase II”) by an Independent Monitoring Agency selected with ADB’s approval.
34.
The Independent Monitoring Agency (IMA) will assess the compliance of the implementation
of the LARP and prepare a Compliance Report. A conclusive Compliance Report is a condition
to start the implementation of physical civil works for the project. The IMA will prepare the
Compliance Report immediately after the completion of LARP implementation. The
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
18
Compliance Report will provide a conclusion as to the general compliance of LARP
implementation and a recommendation to ADB regarding the provision of No Objection Letter
to start the civil works.
35.
Within 6 months from the end of the implementation of the whole SUTIP program, the IMA
will also assess the degree of income restoration achieved by the LAR compensation and
resettlement program.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
19
1.
INTRODUCTION – PROJECT BACKGROUND
1.1
SCOPE OF THIS DOCUMENT
1.
This document is the Land Acquisition and Resettlement Plan (Draft) prepared for the TbilisiRustavi Highway, Section 2. It was developed by the Municipal Development Fund of Georgia
(MDFG), with support from consultants. Its objective is to identify and assess Land Acquisition
and Resettlement (LAR) impacts and to plan associated compensation for section 2 (km 4 to
6.8) of the so-called “Tbilisi-Rustavi Road Improvement Project”. The LARP is based on
detailed design. It is submitted in advanced draft to facilitate the progress of ADB and MDFG
decision making process, but will need to be complemented later to an “implementationready” stage.
2.
3.
The LARP is prepared in conformance with both ADB requirements (the Safeguard Policy
Statement or SPS) and Georgian legislation pertaining to LAR. It has been developed in the
period between May and July 2013, and has involved consultation with potentially affected
people, interaction with the design team, and interaction with Georgian authorities.
1.2
LAND ACQUISITION AND RESETTLEMENT FRAMEWORK
4.
A Land Acquisition and Resettlement Framework (LARF) was agreed in 2010 between MDFG,
on behalf of the Government of Georgia, and the ADB upon the inception of SUTIP. The
objective of the LARF is to provide overall guidance in the preparation and implementation of
Land Acquisition and Resettlement (LAR) tasks for the projects under each tranche and to
establish the necessary covenants to ensure that this is done in compliance to the ADB’s SPS
and procedures and relevant Georgian legislation. The LARF sets out the procedures for the
preparation of Land Acquisition and Resettlement (LAR) tasks for projects under the Program
and the objectives, principles, compensation eligibility and entitlement criteria,
legal/institutional frameworks, participation and /consultation procedures and grievance
redress mechanisms to be employed to compensate, resettle and rehabilitate the living
standards of Affected Families (AF) and People (APs.) The LARP for the Project has been
updated to a minor extent to ensure it meets the specific needs of section 2. This LARP has
been prepared in compliance with provisions in the updated LARF. The LARF is publicly
available on ADB’s website3.
1.3
PROJECT BACKGROUND
1.3.1 Overview
5.
Together with other projects, the Tbilisi-Rustavi Road Improvement Project (hereafter
“Project”) is included in Tranche 3 of the Sustainable Urban Transport Investment Program
(SUTIP, hereafter “Program”). The Program is financed through an ADB Multi-Tranche Facility
(MFF), and previous sections of the same road (section 1 from KM 0 to KM 4.0 and section 3
from KM 10.5 to 17.1) are financed by Tranche 2 of the MFF. LARPs for sections 1 and 3 were
prepared earlier, are finalised and publicly disclosed.
1.3.2 Project Objective
6.
The Project has two key dimensions:
o
o
3
A local and urban one, associated to the improvement of the urban link between Tbilisi
and Rustavi;
An international one, the enhancement of the link between Azerbaijan and Georgia, and
thereby between the Caspian sea (Baku port) and the Black Sea (Poti and Batumi ports).
http://www.adb.org/projects/documents/sustainable-urban-transport-investment-program-resettlement-framework
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
20
7.
Tbilisi is the capital of Georgia, with a population of about 1 million people, and its main
economic and political centre. Rustavi, located only 25km to the South East of the capital, is
the administrative centre of the province of Kvemo Kvartli. Rustavi used to be a major
industrial centre during the Soviet period but has lost many of its mainly metallurgical
industries following the collapse of the centrally planned economy. Its current population is
estimated at around 120,000 people, making it the third city in Georgia by population size.
With the loss of local economic activity Rustavi has evolved into a satellite city of the broad
Tbilisi urban area and many Rustavi residents commute daily to Tbilisi where they are
employed.
8.
The existing 2-lane highway (one lane in each direction) has not enough capacity to carry the
whole traffic entering or exiting Tbilisi at peak hours. The road between Tbilisi and Rustavi is
one of the busiest in the country. Recent traffic measurements indicate an average of about
18,000 vehicles per day (2011), which is well beyond the capacity of a two lane road. Most of
the traffic (about 95%) is comprised of light vehicles (cars and minibuses), which reflects a
commute pattern rather than a long haul one. The Government of Georgia has therefore
decided to upgrade this road and has assigned the project responsibility to the MDFG.
1.3.3 Project Summary Description
9.
The Government of Georgia has declared the modernization of the Tbilisi-Rustavi road as a
priority project. The project envisages upgrading the existing 17.1 km long, 2-lane road
between Tbilisi and Rustavi into an international standard, “Category I” highway, with 4 lanes
and a general design speed of 120km/hour.
10.
The Tbilisi-Rustavi section is part of the larger Tbilisi – Red Bridge (Azerbaijan border)
highway. The Tbilisi-Rustavi part consists of three sections (see Figure 1 below):
o
o
o
Section 1 (KM 0 to KM 4+000) is an upgrade and widening of the existing road and has
relatively limited LAR impacts as a result; a LARP has been prepared in 2012 and was
approved by both the Government of Georgia and the ADB;
Section 2 (KM 4+000 to KM 10+800) is a new road as in this section the widening of the
existing highway would have caused significant impacts. In contrast with Sections 1 and
3, Section 2, which is the one addressed in this LARP, will entail significant physical and
economic displacement;
Section 3 (KM 10+800 to KM 17+400) is also an upgrade and widening of the existing
road; LAR impacts are relatively limited and have been assessed in a LARP also prepared
and approved in 2012.
11.
The 6.8 km long section 2 passes through housing and industrial areas, and generates
significant displacement impacts as a result. For this reason several routing options have been
considered to avoid or minimize involuntary resettlement. Economic analysis for Section 2
was performed by Design Consultant Dohwa Engineering. Three alternatives for this section
were considered and evaluated taking into account technical, economic and resettlement
aspects. Alternative 3 was selected as offering the best compromise between cost, technical
constraints, and displacement impact minimisation. This choice was endorsed by the Highway
Department of Georgia. Figure 2 presents the location of the three routing options that were
considered.
12.
The preferred option avoids the most densely populated areas and the largest buildings by
being pushed towards the Mtkvari River wherever this is technically possible (an option with
higher construction costs but one that entails less displacement impacts). Further design
refinement took place in cooperation between the design and the resettlement teams as
presented in detail in section 1.4 below.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Figure 1. Project Overview
F.Giovannetti - Rev.4
21
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Figure 2. Alternative Routing Options
F.Giovannetti - Rev.4
22
23
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
13.
From an impact and social perspective, Section 2 can be divided into several sub-sections as
described in Table 1 below.
Table 1. Overview of Main LAR and Social Impacts of Section 2
SubKM… to
Section
KM…
1
4+000 to
4+600
2
4+600
Summary Description of
the Sub-Section
Widening of existing road
Interchange with Marneuli
highway (Interchange 2.1)
New highway
3
4+700 to
5+750
4
5+750 to
7+200
New highway
5
7+200 to
7+600
New highway
6
7+600 to
8+200
New highway and
interchange 2.2 with existing
Tbilisi Rustavi road
7
8+200 to
9+700
Widening of existing road
and creation of a diversion
road
8
9+700 to
10+800
Widening of existing road
Key Elements of Social Context
and LAR impacts
Several road side businesses affected, no
impact on residential structures
Restaurant and other road side businesses
affected, no impact on residential structures
Residential area with several apartment
blocks either directly affected (two storey)
or in close proximity of the proposed
project (two nine storey and one two
storey), as well as informal structures,
residential or not, established in
unregistered land plots right along the
Mtkvari River
Industrial area with a mix of old, Soviet area
buildings with limited or no industrial
activity, some of which in very poor
condition, and a few more recent, active
small to mid-size businesses with varied
activities. One residential building (5
storey) in between, in very poor condition
(unaffected)
Small residential area in the area of
Marneuli Street with a number of private
residential houses (affected) in between the
two industrial areas 4 and 6
Industrial area in which two large industrial
companies are affected (essentially land and
a few ancillary structures). No residences
affected
Residential area with a few interspersed
businesses. Mainly linear impacts along the
existing road to residential land and
ancillary structures (fences and gates), no
residential property affected
Agricultural and unused land (public and
Patriarchate of Georgia)
1.4
MINIMISATION OF DISPLACEMENT
14.
Project displacement impacts are significant. The first task the resettlement team assigned
themselves, in the spirit of the SPS, was to seek the minimisation of displacement impacts
wherever this was reasonably possible. A joint effort was made by the resettlement team,
project designers Dohwa Engineers and Transproject, and MDFG, initially based on a first
reconnaissance of the site and the preliminary scoping of potential impacts, and taken further
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
24
when the first results of the topographic surveys became available. Results obtained through
this effort are reflected in the table below.
Table 2. Changes in Design Driven by Resettlement Minimisation
KM
Sta.4+550
(Right side)
Impact of Initial Design
Partial impact to
restaurant Marabda and
loss of access
Design Change
Change of horizontal
alignment and inclusion of
an access road from the
interchange
Sta. 5+220
(Right side)
Total impact to one two
storey residential building
Sta. 5+300
(Right side)
The Project road is
located very close to a two
storey building
(separation distance
about 3.0m)
Minimization of impacts
through installation of
retaining wall on the
Mtkvari River side and
moving the horizontal
alignment towards the
River
Installation of retaining
wall on the Mtkvari River
side and moving the
horizontal alignment
towards the River
Sta. 4+980
to 7+060
(both sides)
Local residents, including
those of two nine-storey
buildings, are exposed to
noise and vibration in
both construction and
operations phases
(distance from the Project
road is about 17~24m)
Sta. 6+520
(Right side)
Potential displacement of
an industrial and
administrative building
(Arjevani)
Potential displacement of
chicken factory
Sta. 6+630
(Right side)
F.Giovannetti - Rev.4
Change of design concept
from an international
highway to an urban road
seeking a better
environmental and social
integration of the road in
the urban area. Inclusion of
3 parks and green zones on
right side of Project road
Inclusion of a retaining wall
and moving the RoW
towards the river
Include a retaining wall and
move the ROW toward the
river (same provisions as
above)
Residual Impact
The restaurant plot is
entirely avoided by change
of horizontal alignment and
there is no impact to the
restaurant. A specific access
road will be created. No
residual impact
A non residential part of the
building is affected but the
whole residential part of
the building remains
unaffected
Distance between the
Project road and the
building (unaffected) is no
less than 7.0m.
No physical impact on the
building, however there
will be noise, vibration, and
air quality impacts that are
mitigated through
measures planned in the
IEE
The two nine storey
buildings are not affected.
Minimisation of
environmental and social
impacts of the road.
Inclusion of noise screens,
diminution of design speed,
and general move of the
RoW towards the river
The building is only partly
affected and can stay and
continue to be used for its
initial purpose
The chicken factory is
avoided and can continue
to be used without any
business losses
25
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
KM
Sta. 7+460
(Right side)
Impact of Initial Design
Potential displacement of
an electrical substation (a
part of the substation was
affected by the original
alignment of the Project
road)
Several residential
buildings cannot be
approached from
Marneuli street any longer
Design Change
Inclusion of a retaining wall
and moving the RoW
towards the left side
Residual Impact
The substation is avoided
and can continue to be used
A new junction is included
in the design to connect
these residential plots to
the side road
Access to these residential
plots is reinstated
Sta. 7+980
(Right side)
The original design made
it difficult to delivery
trucks and light vehicles
serving pharmaceutical
company GMP to use the
existing road
A box culvert at sta.7+980
has been added to the
design (and the vertical
alignment changed
accordingly) to connect
GMP to the existing road
Sta. 8+040
~9+820
(Both side)
Local residents cannot
easily and directly
connect to the new road
as one can enter the new
road only from designated
interchanges
A parallel road is added to
the design along the Project
to allow for local service in
both directions
GMP can continue using the
existing road and there
should be no impact on its
business activity as
confirmed by preliminary
consultation with the
management of the
company
No business or other
impacts to local residents.
No impacts to access to
Tbilisi or Rustavi, nor to
local facilities such as the
primary school near GMP
company
Sta. 7+550
(Right side)
1.5
LARP PREPARATION PROCESS
1.5.1 Field Surveys
15.
This LARP was prepared based on surveys carried out between end June and end July 2013,
including the following:
o
o
o
o
16.
An inventory of losses,
A detailed asset valuation for each affected plot/affected item,
A census; and
A socio-economic survey (SES) of those Affected Households who could be located and
interviewed (152 out of 282).
This draft LARP will be finalised and made “implementation-ready” when the final Project
design is approved by the Government of Georgia and will be submitted to ADB’s formal
approval after implementation tasks detailed in section 1.6 are executed, and subject to the
conditionalities spelled out in section 1.7.
1.5.2 Consultation
17.
Consultation was conducted during the LARP preparation process and included:
o
o
o
18.
Public meetings in the affected area,
Information meeting and focus group with businesses,
Face to face interviews with affected people.
Public consultation is addressed in details in Chapter 8 and the associated Annex 4.
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
26
1.6
PENDING LARP IMPLEMENTATION TASKS
19.
This LARP is in draft version. To reach the “implementation-ready” stage, the following tasks
will have to be implemented:
o
o
o
o
o
Provision of compensation finances to the EA by Ministry of Finance;
Legalization of legalizable APs;
Signing of compensation agreements with all APs;
Deposit of compensation amounts in escrow for any absentee APs; and
Initiation of expropriation proceedings with the deposit in a designated escrow account
of compensation amounts for all APs rejecting an amicable agreement. Expropriation
ordinances will have to be issued by the relevant Court before physical civil works begin.
1.7
LARP-RELATED ADB CONDITIONALITIES
20.
Per ADB rules, the commencement of the implementation of the Tbilisi – Rustavi Urban Link
(Section 2) sub-project is subject to the following conditions:
o
o
Prior to signature of the civil works contract: formal approval of final LARP
(“implementation-ready”)by ADB and the Government of Georgia;
Prior to commencement of construction works: complete LARP implementation (full
delivery of compensation per the LARP), and submission of an independent Compliance
Report prepared by an independent expert testifying to the compliance of
implementation with the agreed final LARP, and approval of this compliance report by
the ADB.
1.8
LIMITATIONS
21.
LARP preparation included the following limitations:
o
o
o
22.
Survey data were received by the LARP author four days before the deadline for draft
LARP submission, as the period allocated for the surveys was very short; while an
integrity check has been carried out, and the LARP author could satisfy himself that data
were generally sound, it is not impossible that a number of omissions or mistakes affect
the field data;
Business owners have generally proved reluctant to submit proper accounting
information (tax return declarations or balance sheets certified by a chartered
accountant). As a result the evaluation of business losses is incomplete at this point and
will need to be complemented as business financial data are communicated to the
valuers, which is expected to be the case at the time a second iteration of this LARP is
submitted;
A few properties could not be accessed by the survey team for measurement and
valuation; specifically about 15 garages are known to be affected but local residents
prevented the survey team to access them (see section 2.11.4).
As a result of these limitations, a 20% contingency percentage has been added to the LARP
budget. This contingency percentage will be reduced to a more usual value when the gaps
above are bridged, which is expected to be the case before submission of a second iteration of
this LARP.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
27
2.
PROJECT IMPACTS
2.1
METHODOLOGY OF CENSUS AND SURVEYS
23.
This LARP impact assessment details losses to land, structures, businesses, and other assets
entailed by the Project. The detailed inventory/measurement of affected assets was based on a
tentative alignment prepared by Dohwa Engineering and delivered in early July 2013. An
alignment fine-tuning process was carried out as the survey results were becoming available
to avoid or minimise some of the most sensitive impacts, as described in Section 1.4 above.
Digitized cadastral maps and related parcel information were collected from the National
Agency of the Public Registry (NAPR) and the road alignment was superimposed on cadastral
maps to identify affected parcels.
24.
On the basis of cadastral records, a topographic survey was conducted by surveying company
Alligator from end June to mid-July 2013 to identify in the field the borders of the affected
plots, the limits of the road Right-of-Way, contact affected landowners, identified land users
where relevant, and verify all information in the cadastral records pertaining to landowners.
Information was also collected in regards to unregistered land parcels and related informal
land users.
25.
Based on these topographic surveying activities and the identification of affected landowners
and land users, the survey teams conducted a census of Affected Households (AH), including
the administration of a systematic socio-economic questionnaire to all identified AH. These
surveys were conducted in the same time window by the same teams. Annex 2 presents the
questionnaire and survey form used.
26.
Lastly, a valuation exercise was conducted by valuation company ATOS for all identified
affected properties and any business losses. This was undertaken based on the results of the
survey and census, and in the same time frame. All teams were working together in an
integrated manner.
27.
The end date of the census survey (24th July, 2013) is the eligibility cut-off date for this LARP,
subject to the processing of claims and grievances that may be deemed founded by MDFG or
by Courts of Law.
2.2
IMPACTS TO LAND
28.
312 land plots are affected by the Project, with an associated 282 landowners and landusers.
The total surface of these land plots is 709.83 hectares, but the affected part is 29.4746
hectares (294,746 m2). The average impact rate in terms of surface is approximately 4%.
However, this ratio is biased because there are a few very large parcels (including a 200
hectares plot belonging to the Patriarchate of Georgia at the end of the Project towards
Rustavi), which are affected only marginally. In fact, 183 land plots are affected in totality
(100%), and a total of 229 plots are affected by more than 50%.
29.
The distribution of land plots by ownership regime is shown in details in the following table.
Key features are the following:
o
o
o
69% of land plots are private (65% if counted in terms of surface rather than number of
parcels), and 31% of plots are public (35% of surface);
A significant number of land plots are currently occupied under informal arrangements:
either it is unregistered but legalizable land (8% of plots and 6% of surface) or informal
occupation of public land (19% of plots and 5% of surface);
58% of land plots are officially categorised as agricultural (in the register, which may
have no relation with the actual land use), while the rest (42%) is officially categorised as
non-agricultural. However, this categorisation has not been taken into account when
calculating land values as it is clearly disconnected from current land use, where
agriculture is marginal.
F.Giovannetti - Rev.4
28
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Table 3. Land Tenure Regime of Affected Land Plots
Affected
Plots
(number)
Land tenure type
Affected
Area (sq.m.)
Number of
Affected
Households
A. Private Land
Type 1: Private registered land (not
including Housing Partnership)
Type 2: Land owned by Housing Partnership
Type 3: Unregistered legalizable land
Sub-total A
187
173,245
198
2
854
-
25
16,969
27
214
191,068
225
1
140
1
59
14,158
56
38
89,380
-
98
103,678
57
312
294,746
282
B. Public Land
Type 4 Public Land leased to private users
Type 5: Public Land informally used by
unregistered private users and not
legalizable
Type 6: Public Land (not used by private
users)
Sub-total B
Grand Total
2.3
IMPACTS TO STRUCTURES
30.
Impacts to structures of various categories are shown in the following table.
Table 4. Impacts to Structures
Structure Category
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Office
Petrol Station
Workshop
Other commercial or industrial building
Restaurant and Hotel
Residential houses
Apartment block
Ancillary building
Shed
Bath and toilet
Garage
Greenhouse
Asphalt cover
Others
F.Giovannetti - Rev.4
Number
3
8
50
25
4
81
1
104
246
35
15
57
53
63
Total surface (m2)
179
1,421
13,209
4,582
539
8,581
500
2,906
15,573
103
1,602
7,688
18,657
3,952
29
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
31.
Key numbers in the above table are the following:
o
o
o
o
1 two storey apartment block is affected, with a total surface of 400 m2 and 40 resident
households that are physically affected;
81 residential structures are affected, with an average built surface of 106 m2;
90 industrial and commercial buildings of some significance are affected, with an average
built surface of 221 m2;
520 minor structures (not including the asphalt covered areas) are affected, with an
average built surface of 61 m2.
2.4
IMPACTS TO CROPS AND TREES
32.
Impacts to annual crops are insignificant. Only two plots bear annual crops and the total
compensation for annual crops is less than GEL 500.
33.
Impacts to trees are significant as the gardens along the river (most of them unregistered,
some with residential structures) bear large numbers of trees of all species, as described in
the following table. A total of almost 7,000 trees of various species are affected (6,672).
Anecdotal information suggests that these trees are unlikely to play a major role in livelihoods
but they certainly provide healthy fruit to local residents and may be important to the
livelihoods of some of the poorest affected people who sell the fruit.
Table 5. Affected Trees
Number of trees by age category
Tree species
Age 0 to 5
Age 5 to 9
Age 10 to 15
Age 15
and more
Cherry
160
266
85
Peach
102
63
9
Cherry
66
42
38
16
116
222
66
7
Laurel
8
10
4
Orange
2
Apricot
34
42
51
9
Pomegranate
Capers
9
7
Nut-tree (Big)
73
58
53
91
Persimmon
30
152
46
208
Cry
8
7
Quince
9
62
Burberries
17
6
Fig
79
178
139
68
Pear
25
39
12
30
4
8
3
Plum
185
172
14
Cornel
13
12
5
Mulberry
20
56
Almond
F.Giovannetti - Rev.4
48
85
30
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Number of trees by age category
Tree species
Age 0 to 5
Age 5 to 9
Age 15
and more
Age 10 to 15
Hazelnut
30
75
41
Wild plum
41
185
33
135
Nectarine
13
Apple
88
124
10
31
179
547
151
1094
Vineyard
Medlar
4
5
Bilberry
10
Palm
17
Decorative plant
60
Other
Total
322
17
1611
2437
11
793
1831
2.5
IMPACTS TO BUSINESSES
34.
Project impacts to the 33 affected businesses are shown in the following table.
Table 6. Impacts to Businesses
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Business name
LLC t.m.
LLC t.m.
PP Qesanashvili Tengiz
LLC a.g.d.
LLC San Petroleum
Georgia
LLC Georgian Energy
Solution
LLC Black Sea
Industries
LLC Mustangi
PP Bukhrashvili Nunu
LLC Mshenebeli 29
LLC Avto
LLC Fonichala-Praim
LLC Geo PVA
LLC Imedi 70
Owner or
tenant
(O/T)
Affected
totally
Y/N
Y
Y
Y
Y
Affected
partially or
temporarily
Y/N
N
N
N
N
O
T
O
O
Petrol Station
Car Wash
Restaurant
Petrol Station
Y/N
N
Y
Y
Y
O
Petrol Station
Y
Y
N
O
Petrol Station
N
Y
N
T
Petrol Station
Y
Y
N
O
O
O
O
O
T
O
Car repair service
Restaurant
Warehouse
Car repair service
Chemical Industry
Chemical Industry
Chemical Industry
Building Material
Industry
Mattress workshop
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
N
Y
N
N
N
Y
Y
Y
N
Y
Y
N
Y
Y
Y
N
15 LLC Fonichala 3
T
16 PP Macharadze Raul
O
F.Giovannetti - Rev.4
Activity
Working
Business
31
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
#
Business name
Owner or
tenant
(O/T)
N
N
Y
Y
Y
Y
Y
Y
Y
N
N
N
N
Y
N
Y
O
Petrol Station
Y
Y
N
T
O
Shop
Bakery
Y
Y
Y
Y
N
N
O
Restaurant & Hotel
Y
Y
N
O
T
O
Shop
Car Wash
Shop
Y
Y
N
Y
Y
Y
N
N
N
O
Petrol Station
Y
Y
N
Y
Y
N
Y
N
Y
Y
N
Y
LLC Avzi
LLC Avzi
LLC VBR
PP Fashaevi Keigubad
O
O
T
T
22 PP Tsurtsumia Elguja
T
26
27
28
29
30
Y/N
Y
18
19
20
21
24
25
Y/N
Affected
partially or
temporarily
Y/N
Y
O
LLC San Petroleum
Georgia
PP Gogokhia Otar
PP Chkadua Elguja
PP Gulmamedovi
Shaxin
PP Alievi Vahid
PP Galaxvaridze Elguja
PP Askerova Shamama
LLC Socar Petroleum
Georgia
Affected
totally
Wood and Iron
Workshop
Petrol Station
Bakery
Car repair service
Day resale
Metal-Plastic
workshop
17 LLC Selko
23
Activity
Working
Business
31 PP Gubeshvili Eliko
O
32 LLC GMP
O
33 LLC Ambawood
O
Restaurant & Car
Wash
Pharmaceutical
company
Furniture
35.
The Project affects two large businesses, companies GMP (pharmaceutical) and Ambawood
(furniture). These are affected in a relatively marginal manner, which will not compromise
their operations or cause any business losses. Compensation will be paid in respect of affected
land and a few affected structures, which are either unused or obsolete, or of secondary
importance. Attention will need to be paid to access issues, and it is important that MDFG
engage with these two companies on an on-going basis to mitigate any access issues that may
appear, particularly during construction. Employees of these two large businesses are not
considered as affected and are therefore excluded from the total of affected employees (137)
mentioned in section 2.6 below.
36.
The Project affects a number of mid-size road side businesses, including:
o
o
o
37.
8 filling stations, 3 of which were observed to be out of service;
Car washing bays (2) and car maintenance workshops (3);
Restaurants and hotels (4), bakeries (2), and shops (3).
The Project also affects businesses, essentially dedicated to light industrial activities (vehicle
maintenance, light chemistry, welding and metallic carpentry, retail of building materials,
printing), in the industrial area located along the Mtkvari River between the residential
buildings west of the railway and Marneuli Street. These activities generally occupy old, Soviet
buildings, most of which are in a dilapidated condition.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
32
2.6
IMPACTS TO EMPLOYMENT
38.
A total of 137 employees are affected by potential permanent loss of employment as a result of
Project impacts to businesses. As mentioned above in paragraph 35, the two large businesses
(Ambawood and GMP), which are affected partially and whose activity will not be interrupted,
even temporarily, are excluded from this count.
2.7
OTHER IMPACTS
2.7.1 Impacts to Indigenous Peoples
39.
The Project has no impact on Indigenous Peoples as there are no Indigenous Peoples in
Georgia.
2.7.2 Gender Impacts
40.
Based on the percentage derived from the socio-economic survey (see section 3.3), it is
estimated that the Project affects a total of 21 female headed households. Other potential
impacts to females include severance but this is mitigated through changes to the Project
design (see below section 2.7.3).
2.7.3 Access Impacts / Severance
41.
As mentioned in section 1.4 above, the initial design had significant severance impacts. At least
two sizable businesses (restaurant Marabda and pharmaceutical company GMP) were left
without proper access. These impacts have been eliminated by amendments to the design
(based on preliminary consultation with the owners and operators of these businesses) and
other severance impacts are not anticipated at this point.
2.7.4 Non-viable (“Orphan”) Land
42.
Non-viable, “orphan” land is land that is affected partially to such an extent that the unaffected
remainder becomes uneconomical. This can be the case in a variety of situations, including,
but not necessarily limited to the following:
o
o
o
Because the remainder is too small to be used for any economically meaningful purpose
(particularly in the area to build a house or industrial building);
Because vehicular or pedestrian access to the remainder is not possible any longer after
the Project is built;
Because access to vital infrastructure (for example irrigation, sewerage or electricity) is
not possible any more.
43.
In such situations, Georgian expropriation regulations provide that the landowner may lodge a
claim and that non-viable land may be compensated in full if the review of the landowner’s
request indicates that the remainder is indeed not usable. The Project will adopt a similar
strategy with regards to non-viable land, even where land acquisition is not undertaken
through expropriation.
44.
Along Marneuli street4, a number of land plots are affected partially and demolition of
residential houses is required for several of them. The remainder of the plot has not been
evaluated for the purpose of this LARP. However, preliminary interaction with some of the
landowners indicates that these plots may be deemed non-viable land, and could be subject to
a claim to this effect. If this is the case (and, in contrast, other landowners have indicated that
they may want to keep the remainder in ownership), such claims should be viewed in a
positive manner. They will be processed through the normal grievance redress mechanism
4
This case is presented here as an example but orphan land may apply elsewhere too, particularly along the existing
Tbilisi – Rustavi road, where a number of properties are bisected by the widening and the front road.
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
33
(see section 9.4), and would be elevated to the Grievance Redress Committee in case of
disagreement.
2.8
VULNERABLE HOUSEHOLDS
45.
Based on the percentage derived from the socio-economic survey (see section 3.3), it is
estimated that 100 of the total 282 affected households are vulnerable.
2.9
SEVERELY AFFECTED HOUSEHOLDS
46.
The LARF defines severely affected households as those losing 10% of their income or more.
Past practice has been to assume that households losing 10% of their land were severely
affected. However, while this was adequate for marginal impacts of linear projects to
agricultural land, it needs to be complemented by supplemental provisions for the present
Project, as recommended in the following paragraph.
47.
Severely affected households include:
o
o
o
48.
All physically displaced households (those who lose their primary residence);
All households losing 10% or more of their productive, income generating assets ;
All business owners losing their business partially or temporarily.
The following table shows the breakdown of severely affected households:
Table 7. Severely Affected Households
Category of severely affected households
Number of households
Physically displaced households
121
Households losing 10% of their productive,
197
income generating assets or more
Business owners
33
Total
2705
2.10 SUMMARY OF IMPACTS
49.
5
The following table shows the overall summary of impacts:
All physically displaced households also lose more than 10% of their land, but they are counted once in the total.
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34
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Table 8. Impact Summary
TYPE OF IMPACT
IMPACT INDICATORS
Affected Plots
(number)
LAND
A. Private Land
Type 1: Private registered land
Type 2: Land owned by Housing Partnership
Type 3: Unregistered legalizable land
Sub-total A
B. Public Land
Type 4 Public Land leased to private users
Type 5: Public Land informally used by unregistered
private users and not legalizable
Type 6: Public Land (not used by private users)
Sub-total B
Total (Land)
STRUCTURES
Residential structures (houses)
Apartment Blocks
Industrial and commercial buildings
Minor structures (excluding asphalt covered areas)
Total (Structures)
TREES
Young (0-4 year old)
Affected Area
(sq.m.)
Affected
Households
187
2
25
214
173,245
854
16,969
191,068
198
27
225
1
140
1
59
14,158
56
38
98
312
89,380
103,678
294,746
57
282
Affected
Structures
81
1
90
520
692
Affected Area
(m2)
8,580
500
19,930
31,820
60,830
Affected
Households
81
40
75
160
322
Affected Trees
1,611
Young adult (5-9 year old)
2,437
Adult (10-14 year old)
793
Adult (15 and more)
1,831
Total (Trees)
BUSINESSES
Large industrial companies
6,672
Affected Businesses
2
Filling stations (5 functional, 3 not functional)
8
Car maintenance workshops and washing bays
5
Restaurants and hotels
4
Bakeries
2
Shops
3
Light industrial workshops and others
9
Total (Businesses)
33
Affected Business Employees
137
VULNERABLE HOUSEHOLDS
Affected Vulnerable Households
Total (Vulnerable Households)
SEVERELY AFFECTED HOUSEHOLDS
100
Severely Affected Households
Physically displaced households
121
Households losing 10% of their productive assets or
more
197
Business owners
Total (Severely Affected People)6
6
The total is lower than the sum of the three categories because there are overlaps.
F.Giovannetti - Rev.4
33
270
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
35
2.11 ANALYSIS OF LAR SENSITIVE ISSUES
2.11.1
Impacts to Internally Displaced Persons
50.
The Project affects about 6 IDP (Internally Displaced Persons) families (five in two structures
located in private land near the railway bridge, and one in another private structure owned by
an foreign citizen who could not be located by the survey team. In both cases, these IDP
families have been “inherited” by the current owner from the previous one (typically a public
entity). In a situation that is not uncommon in Georgia, the buyers were obliged, upon
privatisation of the land and structures, to keep the IDP families in the houses they had
purchased. This obligation will disappear when land and the houses are acquired. As a result
of the land acquisition process, these IDPs could be left without a shelter as they are normally
not entitled to compensation for either land or structures since they do not own them.
51.
This situation shall be addressed by MDFG in consultation with the Ministry of Internally
Displaced Persons from the Occupied Territories, Accommodation and Refugees. MDFG will
ensure that the 6 IDP families are provided with housing in similar or better condition in
accordance with Georgian Laws, and cost of this housing replacement is included in the LARP
budget (see Chapter 11, Budget Line A22). MDFG will work with the Municipality of Tbilisi to
identify vacant municipal housing and will rehabilitate apartments if needed to bring them to
an acceptable condition.
2.11.2
Partially Affected Two-Storey Apartment Building
52.
A two-storey apartment building is affected near the railway bridge and hotel restaurant Rose.
This building was initially considered as partially affected because the part that is bisected by
the Project RoW contains only toilets. The building (a former dormitory) is inhabited by about
40 families living in small apartments of one to two rooms.
53.
It was initially assumed that only the part that falls in the RoW could be demolished, while the
remainder of the building (which contains the residential apartments) would be left
unaffected. However, this solution is impractical, for the following reasons:
o
o
o
54.
The relocation of all households residing in this building (in its entirety) is therefore included
in this LARP (40 families living in small apartments, including a few vulnerable households).
Compensation at replacement value for the same floor areas that the residents currently
occupy would be insufficient to purchase an apartment of reasonable floor areas in reasonable
condition. Compensation will therefore be sufficient to purchase an apartment of reasonable
size in reasonable condition. A provision is made in the budget accordingly (see Chapter 11,
Budget Line A21).
2.11.3
55.
7
The building is in poor general condition and it would be very hazardous to demolish
only the wing that falls in the RoW7;
Toilets will need to be reinstated elsewhere in the building, which would then either
require a few apartments to be vacated or a specific sanitary facility to be added outside
of the building;
Residents would be significantly affected by nuisances from the Project in both
construction and operations phases.
Unregistered, Not Legalizable Land
As mentioned above in section 2.2, a significant proportion of the affected plots of land are
unregistered. Of these 84 land plots, it is assumed at this point that 25 could be legalizable via
the process provided in Georgian legislation in this respect. Landowners will be supported to
complete the legalization process. This leaves 59 plots that are not legalizable. Some of these
The structural stability of the whole building may be compromised, although it appears that some of the part to be
demolished is a later addition to the building.
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
36
plots bear residential structures, of which some appear to be registered8 but most are not.
According to entitlement principles in the LARF, while unregistered structures can be
compensated according to the same rules that apply to registered ones, unregistered, not
legalizable land cannot be compensated as this would violate Georgian law.
56.
Such informal landowners will receive compensation for their structure, trees, as well as any
additional allowance that they may be eligible to in regards of relocation and severe impacts.
Structures and trees form the biggest part of compensation (as opposed to land) and it is not
envisaged that these affected people would be left at risk of impoverishment as a result of
Project impacts.
2.11.4
Contentious Situation with Residents of a Five-Storey Building
57.
During the surveys it appeared necessary to survey a number of affected, unregistered garages
located within the Project Right-of-Way. These garages belong to residents of a near-by,
unaffected five-storey residential building. This building is in poor condition. Residents
prevented the survey team to access the garages as they wanted another issue to be addressed
by authorities. They claim that the residential building is in an “accident situation”, and want
to be relocated to better conditions. However, relocating this building is an issue that is
beyond the remit of this LARP and of MDFG in general, insofar as this building is not affected
by the Project.
58.
The residential building itself does not belong in this LARP since it is not affected by the
Project. However, residents’ garages are affected. During the preparation of the detailed
design, ongoing consultations will be undertaken by MDF with these people to minimize the
impacts. For the unavoidable impacts, a compensation and rehabilitation package will be
developed for the affected people based on market value and replacement cost, which will be
included in the updated LARP with funds drawn from the contingency.
2.11.5
Businesses
2.11.5.1 Ardjevani
59.
This building is new and rented out to a printing business. As a result of impact minimisation
efforts (see Table 2 in section 1.4), the building itself, which includes an administrative and an
industrial part, is outside of the RoW and the plot is partially affected. However the layout of
the building is such that access to the industrial part of the building may become potentially
hazardous when the urban road is built as trucks will be unable to turn.
60.
To address this issue, MDFG has consulted with the affected business to identify a preferred
solution from a number of options. The approach preferred by the business is for the project
to fund some rearrangement and rationalization of the buildings and site infrastructure so
that the impacts can be effectively reduced. The Project has agreed to undertake this work and
will prepare the design solutions during the final design phase of the project.
2.11.5.2 GeoPVA/BIG
61.
8
This is a situation, in which a landowner (GeoPVA) and a lessee (BIG) have entered one year
ago into an agreement whereby the lessee is authorised to build an industrial structure on the
land plot, pays no rent and will surrender the building after a 10-year period. The building is
totally affected. While the agreement between the landowner and the lessee is beyond the
remit of the LARP, it is important to make sure that none of the parties loses out when
compensation is paid. After consultation with both parties, the agreed approach is that the
land compensation be paid to the land owner and the building compensation be split between
the landowner and the lessee such that the land owner receives 10% of the building value and
the lessee receives 90% of the building value. This approach will ensure that each party is
fairly compensated for both the land, and their respective share of the building.
The item in the registered structure ownership title deed that deals with land ownership mentions “joint ownership of
the parcel”, which is somewhat mysterious.
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2.11.6
62.
37
Participation of Local Governments
Upon the initiation of the survey exercise in June-July, 2013, MDFG contacted the two local
governments involved (Municipality of Tbilisi and Krstanisi sakrebulo) in writing. These two
entities allocated the responsibility of participating in the surveys and public consultation to
two individuals. However, it appeared that these persons were not actively involved in the
implementation of surveys and public consultation. This will be given attention as of August
2013 such that active local governments’ participation can be secured for further stages of
LARP preparation and implementation.
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3.
SOCIO-ECONOMIC SURVEY
3.1
INTRODUCTION
63.
Socio-economic information on the affected AH was gathered based on the full (100%) census
of AHs available on site.
64.
Out of 282 directly affected households, 152 could be located and were available for an
interview (54%).
3.2
SOCIO-ECONOMIC CHARACTERISATION OF THE AFFECTED POPULATION
3.2.1 Demography
65.
The age and gender distribution of affected people is shown in the following table:
Table 9. Age and Gender Distribution of Affected People
Male
Female
Total
66.
<6 year
69
44
113
7-18 year
58
47
105
19-65 year
208
212
420
65+ year
52
61
113
Total
387
364
751
The demographic profile of households is shown in the following table:
Table 10. Demographic Profile of Affected Households
Average size of affected households
Minimum size of affected households
Maximum size of affected households
First household size quartile
Second household size quartile
Third household size quartile
Fourth household size quartile
67.
4.9
1
15
4
5
6
15
12 women-headed households were identified (7.6%).
3.2.2 Nationality
68.
9
Nationality9 of interviewed Heads of Households is shown in the following table:
Note that in former Soviet Union countries, including Georgia, “nationality” means “ethnicity” and is not necessarily
related to “citizenship”: people identifying themselves as “Azeri”, “Armenian” or “Greek” are most likely Georgian
citizens. One foreign business operator (Iranian) has been reported.
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Table 11. Nationality of Affected Heads of Households
Nationality
Georgian
Azeri
Armenian
Greek
Total
69.
Number
87
50
14
1
152
Percentage
57%
33%
9%
1%
100%
Like much of South-Eastern Georgia, and particularly the towns of Marneuli and Gardabani,
which are economically connected to this district of Tbilisi, the affected area includes a sizable
Azeri population. It is worth noting that some individuals in the Azeri and Armenian
minorities, particularly the elderly, may not have full command of the Georgian language and
could find Russian easier to understand.
3.2.3 Economic Activities and Livelihoods
3.2.3.1
70.
Livelihoods
Figures 3 and 4 below show, respectively:
o
o
The occupations of household members (ie. on the graph in Figure 3, 8% of affected
households have one member that is a Government employee);
The occupations that constitute the main source of income for household members (ie. on
the graph in Figure 4, Government salaries are the main source of income for 9% of
affected households.
Figure 3. Occupations of Affected Household
Members
Agriculture
2%
Agriculture Permanent
3%
government
employment
9%
Permanent
government
employment
8%
Permanent private
sector
employment
17%
Daily labor
32%
Figure 4. Main Occupations of Affected
Household Members
Daily labor
43%
Business
10%
Pensions
31%
71.
Permanent
private sector
employment
24%
Business
14%
Pensions
7%
Agriculture is relatively marginal in the overall socio-economic setting. However, it is
important to note that for those few who do engage in agriculture (typically fruit trees for sale
on the local markets) it is their main source of income. Hence the criticality of adequate
compensation for trees.
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72.
The contrast between the two graphs above in the numbers for pensions (ie. 31% of
households have a member that receives a pension, but pensions are the main source of
income for 9% of households only) reflects three social facts:
o
o
o
73.
Overall the livelihood picture in the affected area is a multi-faceted one:
o
o
3.2.3.2
74.
Pensions (typically around GEL 100 to 125 per month) are insufficient to cater for the
needs of many household;
Many households are multigenerational, with one or two elderly members that receive a
pension and other members that receive a salary or engage in other activities;
Many younger pensioners seek to engage in another activity to complement their income.
Only 25% of households are wage earners, including both Government employees and
private sector employees); these households tend to have only one livelihood source;
For the other households, livelihoods often have several sources, typically a combination
of business sources, daily labor, and pensions.
Household Income and Expenditures
The following table shows household income and expenditures.
Table 12. Household Income and Expenditures
Average
Minimum
Maximum
First quartile
Second quartile
Third quartile
Fourth quartile
Income
(GEL per month)
600
0
2,000
232
325
600
10,350
Expenditures
(GEL per month)
51
0
863
21
31
50
863
75.
The average income is exactly in line with national data for Georgia (the Georgian average
disposable income (after tax) is GEL 600 per month). However, the median at GEL 325 is
significantly below this average and indicates broad disparities in income (50% of affected
households indicate that their monthly income is lower than GEL 325 and 75% indicate that it
is less than GEL 600). The average is drawn upwards by a few high households with income
above GEL 5,000, all of these being business owners.
76.
As a reference the minimum subsistence income for a household is five was estimated by the
Georgian Institute of Statistics at GEL 298 per month (mid-2013). This implies that about 30%
of affected households are below this minimum subsistence income.
77.
That income are generally low is also reflected in the fact that expenditures are overall rather
low (average: GEL 51 per month) and that food is the most important source of expenditures
for more than 50% of households.
78.
Lastly possession of household items and vehicles, which is shown in the following table,
confirms that the affected population is generally in line with Georgian averages. For example,
average possession of cars in Georgia (World Bank, figures for year 2010) is 130 cars per
1,000 inhabitants. This is equivalent to about 60% of households having a car, slightly higher
than the average in the affected area.
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Table 13. Possession of Household Items and Vehicles
Refrigerator
Washing machine
Car
Motorcycle
Bicycle
Gas cooker
Heating system (not urban
heating)
Air conditioner
Possess (%)
88%
67%
45%
0%
0%
82%
Do not possess (%)
13%
33%
55%
100%
100%
18%
23%
77%
13%
87%
3.3
VULNERABILITY
79.
22% of households receive social allowances of some sort (this includes invalids). As
mentioned above, 7.6% of households are women headed, but there is an overlap between
these two parameters (as some households are both female headed and receiving social
assistance) and the total percentage of potentially vulnerable households is 27%.
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42
4.
LEGAL AND POLICY BACKGROUND
4.1
OVERVIEW
80.
Land acquisition and resettlement for the Project and specifically the development of this
LARP are conducted in conformance with the following:
o
o
o
Georgian legislation (summarized below in section);
Relevant requirements of the ADB Safeguards Policy Statement 2009 (SPS 2009 summarized below in section 4.3);
The Land Acquisition and Resettlement Framework prepared in April 2010 by the
Municipal Development Fund's Sustainable Transport Project and agreed with the ADB.
4.2
GEORGIAN LEGISLATION
81.
This section provides a brief summary of Georgian law applicable to land acquisition and
resettlement. In Georgia, the following legislative acts regulate land acquisition and eminent
domain (expropriation for public needs):
o
o
o
o
o
o
o
o
o
The Constitution of Georgia, August 24, 1995
The Civil Code of Georgia, June 26, 1997
The Law of Georgia on Cultural Heritage, 2007
The Law of Georgia on Notary Actions, December 4 2009
The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996
The Law of Georgia on Public Register (No820 IIs; December 19 2008)
The Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land
Plots Owned (Used) by Physical Persons or Legal entities; 2007
The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public
Need, July 23, 1999
The Civil Procedural Code of Georgia, November 14, 1997
82.
Existing laws provide that compensation for lost assets, including land, structures, trees and
standing crops, should be at current market price without depreciation. They also identify
types of damages eligible to compensation and indicate that both loss of physical assets and
loss of income should be compensated. Income loss due to loss of harvest and business closure
should be compensated to cover net loss.
83.
Land acquisition for public interest may include eminent domain procedures, through a two
phase process as follows:
o
o
Phase1: A negotiated settlement is sought in a first phase, based on a first compensation
proposal at market/replacement value.
Phase2: If no agreement is reached, land acquisition is further pursued through a judicial
expropriation process (the implementing agency applies to Court to order expropriation
and to fix compensation).
84.
The Minister of Economics and Sustainable Development issues expropriation applications for
each property where no agreement could be reached, based on dossiers filed by the
implementing agency. On this basis, the implementing agency applies to Court, which, in a first
stage, validates whether the application is justified by public interest and whether the
appropriate procedures have been followed. Following this ruling validating the fact that
eminent domain proceedings (expropriation) can be followed, the Court in a second stage
appoints an expert to assess the compensation amount.
85.
In the case of this project, eminent domain is applicable and expropriation will be sought
where no amicable agreement is reached.
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43
86.
Another possibility is the use of “Necessary Right-of-Way”, a legal alternative to expropriation,
which is regulated by the Civil Code of Georgia (Article 180). Per the Civil Code, Necessary
Right-Of-Way can be invoked “if a tract of land lacks access to public roads, electricity, oil, gas
and water supply lines that are necessary for its adequate use”. The owner may then claim
from a neighbor to use his/her land parcel “for the purpose of providing the necessary access”.
“Necessary Right-Of-Way” is granted by a District Court based on an application by the
“neighbor” that must contain a justification of the urgency. Compensation may either be
amicably agreed or be decided by the Judge further to the decision granting “Necessary Rightof-Way”.
87.
Fundamentally “Necessary Right-Of-Way” is intended to allow a landowner to obtain right of
way through a neighbouring land parcel for utilities serving his/her land parcel. It can be used
where amicable agreements cannot be reached due to refusal or absence of affected
landowners.
4.3
INVOLUNTARY RESETTLEMENT REQUIREMENTS UNDER THE ADB'S SPS (2009)
88.
The ADB Involuntary Resettlement requirements are contained in the SPS 2009 and are based
on the following principles:
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Involuntary resettlement is to be avoided or at least minimized.
LAR preparation is to be based on careful planning/impacts assessment efforts inclusive
of a detailed impacts measurement survey, a census of AH/AP, a socio-economic survey,
gender analysis and, in complicated LAR cases, thorough social analysis;
The above efforts should result in the preparation of a LARP providing a full base-line
information on impacts and AH/AP numbers, a description of livelihood restoration
strategies, institutional arrangements, monitoring plan, budgets and implementation
schedule.
Compensation/Rehabilitation provisions should ensure the improvement or at least the
maintenance of the APs' pre-project livelihood standards.
LARP and other relevant documents are to be disclosed to the APs in a form
understandable to them.
APs should be fully informed and consulted so as to participate in the definition of
compensation and rehabilitation options.
LAR planning should include the establishment of well functioning grievance redress
mechanisms.
APs' socio-cultural institutions should be supported/used as much as possible.
Compensation will be carried out with equal consideration of women and men.
Lack of legal title should not be a bar to compensation and/or rehabilitation.
Particular attention and appropriate assistance should be provided to vulnerable
households including poor or women-headed households and other potentially
disadvantaged groups, such as Indigenous Peoples.
LAR should be conceived and executed as a part of the project, and the full costs of
compensation should be included in project costs and benefits.
Compensation and resettlement subsidies will be fully provided prior to clearance of
right of way/ ground leveling and demolition.
LARP implementation needs to be properly monitored by an independent party.
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4.4
COMPARISON OF GEORGIA LAWS AND REGULATIONS WITH ADB'S SPS
89.
Overall, the legislation of Georgia is generally compatible with the major provisions of the ADB
SPS (2009) but a few gaps are to be noted. The most significant of these differences are (1)
that under Georgian legislation/regulation, only formal property owners are eligible to
compensation, while the SPS (2009) provides that both formally owned affected assets and
those that are held under no legal title should be compensated, and (2) that the SPS puts
emphasis on the general rehabilitation of the livelihood of Affected People (AP) and
Households (AH), which is not addressed in Georgian legislation. Also, Georgian law does not
include a formal and comprehensive process of consultation with affected people, nor does it
require the preparation, submission and disclosure of resettlement planning documents.
90.
The ADB safeguards policy on Involuntary Resettlement complements the Georgian
legislation/regulation with additional requirements related to (i) the economic rehabilitation
of all AP/AF (including those who do not have legal/formal rights on assets acquired by a
project); (ii) the provision of indemnities for loss of business and income, (iii) and the
provision of special allowances covering AP/AH expenses during the resettlement process or
covering the special needs of severely affected or vulnerable AP/AH. Key differences between
Georgia law/regulation and ADB policy are outlined in the table below.
Table 14. Comparison of Georgia Laws/Regulations on LAR and ADB Resettlement Policy
Georgia Laws and Regulations
Land compensation only for titled
landowners. In practice legalizable land
owners are also compensated after they are
issued with the necessary papers
Only registered houses/buildings are
compensated for damages/demolition
caused by a project
Crop losses compensation provided only to
registered landowners.
ADB SPS (2009)
Lack of title should not be a bar to compensation
and/or rehabilitation. Non-titled landowners
receive rehabilitation.
All affected houses/buildings are compensated
for buildings damages/demolition caused by a
project
Crop losses compensation provided to all
relevant APs including landowners,
sharecrop/lease tenants and land cultivators
without title whether registered or not
Land Acquisition Committee is the only pre- Complaints & grievances are resolved informally
litigation final authority to decide disputes through community participation in the
and address complaints regarding
Grievance Redress Committees (GRC), Local
quantification and assessment of
governments, and NGO and/or local-level
compensation for the affected assets.
community based organizations (CBOs).
Decisions regarding LAR are discussed only Information on quantification, affected items
between the landowners and the Land
value assets, entitlements, and
Acquisition Authorities.
compensation/financial assistance amounts are
to be disclosed to the APs prior to appraisal.
No provision for income/livelihood
ADB policy requires rehabilitation for
rehabilitation, allowances for severely
income/livelihood, severe losses, and for
affected or vulnerable APs, or resettlement expenses incurred by the APs during the
expenses.
relocation process.
No specific plan for public consultation is
Public consultation and participation is the
provided under the Georgian laws
integral part of ADB’s policy which is a
continuous process at conception, preparation,
implementation and finally at post
implementation period
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91.
45
To bridge any gaps between Georgia laws/regulations and ADB's SPS (2009), MDFG has
drafted an overarching LAR Framework for the whole MDFG project, which was endorsed by
the Government, and is a tool for ensuring compensation at replacement cost of all items, the
rehabilitation of informal settlers, and the provision of subsidies or allowances for AFs that
may be relocated, suffer business losses, or may be severely affected. This LARP is prepared in
compliance with the previously submitted and officially endorsed LARF.
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46
5.
RESETTLEMENT AND COMPENSATION STRATEGY
5.1
KEY SPECIFIC SOCIAL FACTORS DRIVING THE STRATEGY
92.
The affected area presents a unique mix of social and economic characteristics that have to be
taken into consideration in the resettlement and compensation strategy:
o
o
o
There is a mix of modern industries (including one “high tech” pharmaceutical firm) and
artisanal or semi-industrial activities in old, dilapidated Soviet-era buildings.
There is a mix of a fairly poor population living in poor-quality Soviet apartment blocks
or in unregistered structures along the river, and a mid to high-income category of people
living in individual housing of varying quality, with some fairly valuable houses towards
the end of the Project on the Rustavi side.
The population of vulnerable households, including Internally Displaced People (IDPs)
living either in small unregistered individual houses along the Mtkvari river or in
apartment blocks is sizable. For those who are physically displaced, specific assistance
provisions have to be put in place as cash compensation of their structures would live
them at risk of impoverishment. This particularly applies to the IDP population.
5.2
LARF PRINCIPLES AND ENTITLEMENTS APPLICABLE FOR THE PROJECT
93.
Based on Georgian laws on land acquisition and the Safeguards Policy Statement (2009), the
core principles applicable to LAR induced by the Project are as follows:
o
o
o
o
o
o
o
o
o
o
o
Affected People will be assisted in improving or at least restoring their pre-project
standards of living;
Information and consultation will be carried out to fully inform Affected Households
about the LAR process and allow them to provide inputs to LAR planning;
The final LARP will be disclosed to the public and a summary information pamphlet in
Georgian will be disseminated to all AHs;
A grievance redress mechanism will be established;
Formally held properties will be compensated at replacement value per Georgian law and
the SPS;
Legalizable APs will be legalized and fully compensated for land losses;
Non-titled APs (informal dwellers or squatters) will receive a livelihood allowance in lieu
of land compensation and will be fully compensated for losses other than land;
Non-viable remainders of land may be compensated in full subject to a request to this
effect being lodged to the Execution Agency and to review of this request;
Physically displaced, vulnerable and severely affected AHs will be provided special
assistance, specifically to secure alternative dwelling;
Compensation entitlements will be provided to AHs before the occurrence of impacts
(prior to commencement of construction activities);
The execution and the achievement of the livelihood restoration objectives of the LARP
will be monitored and divulgated.
5.3
ELIGIBILITY
94.
AHs entitled for compensation or at least rehabilitation provisions under the Project are:
o
o
o
o
All AHs losing land either covered by legal title, legalizable, or without registered
ownership status;
Tenants whether registered or not;
Owners of buildings, crops, plants, or other objects attached to the land; and
AHs losing business, income, and salaries.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
95.
Compensation eligibility is limited by a cut-off date (24 July 2013). AHs who settle in the
affected areas after the cut-off date are not eligible for compensation. If such situations occur,
interested individuals will be given reasonable advance notice, requested to vacate premises
and dismantle affected structures prior to Project implementation. Their dismantled
structures materials will not be confiscated and they will not pay any fine or suffer any
sanction.
5.4
ENTITLEMENTS
5.4.1 Entitlement Matrix
96.
The entitlement matrix applicable to the Project is presented in the table below.
Table 15. Entitlement Matrix
Type of Loss
Land
Application
Definition of APs
Permanent loss of
agricultural land
AH losing agricultural
Owner with full
land regardless of impact registration
severity
Legalizable Owner
Informal Settlers (AHs
with no
registration/valid
documentation and non
legalizable)
Non-Agricultural Land AH losing their
Owner with full
commercial/ residential registration
land
Legalizable Owner
Cash compensation at replacement cost.
These AP will be supported to obtain
legalisation and provided with cash
compensation at replacement cost.
One time self-relocation allowance in
cash. The relocation allowance is not
dependent on the number of AH
members or land characteristics and is a
fixed amount per family equal to 1 year of
minimum subsistence income10.
Cash compensation at replacement cost.
These APs will be legalized and provided
with cash compensation at replacement
cost.
Renter/Leaseholder
Rental allowances in cash equal to 3
months of leasing costs, according to
leasing fees approved by the
municipalities for leasing the land of such
category.
Informal Settlers (AHs
with no
registration/valid
documentation and not
legalizable).
One time self-relocation allowance in
cash The relocation allowance is not
dependent on the amount of AH members
or land characteristics and constitutes
fixed amount per family equal to 1 year at
minimum subsistence income.
Non-viable (“orphan”) Land that is affected
Owner with full
land)
partially but to such to an registration or
extent that the remainder legalizable owner
is not usable
(subject to legalisation)
10
Compensation Entitlements
Subject to a request being lodged by the
land owner, orphan land may be
compensated in full if the review of the
request indicates that the remainder
cannot be used economically
The minimum subsistence income is calculated based on a 5 people family and the monthly-updated benchmarks
indicated by the National Statistics Office of Georgia at the end of the impacts survey (June 2013: 298 GEL x month).
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Type of Loss
Application
Definition of APs
Compensation Entitlements
All AHs regardless of
their legal ownership/
registration status
(including legalizable
and Informal Settlers)
Full impact: Cash compensation for loss
of building/ structures at full
replacement costs free of depreciation
and transaction costs
Partial impact: compensation for repairs
Buildings and Structures
Residential and non
residential
structures/assets
Loss Of Community Infrastructure/Common Property Resources
Loss of common
property resources
Community/Public
Assets
Community/Government Reconstruction of the lost structure in
consultation with community and
restoration of their functions
Loss of Income and Livelihood
Crops
Standing crops affected
All AHs regardless of
Crop compensation in cash at market rate
legal status (including
at gross crop value of expected harvest.
legalizable and Informal
Settlers)
Trees
Trees affected
All AHs regardless of
legal status (including
legalizable and Informal
Settlers)
Cash compensation at market rate on the
basis of type, age and productive value of
the trees. In addition, trees will be cut by
the construction contractor and made
available to APs for timber
All AHs regardless of
legal status (including
legalizable and Informal
Settlers)
Owner:
(i). (permanent impact) cash indemnity
of 1 year net income; and technical and
administrative support from the RU to
relocate the business in appropriate
premises
Business/Employment Business/employment
loss
(ii) (temporary impact) cash indemnity of
net income for months of business
stoppage. Income will be calculated
based on tax declaration or in its absence
on minimum subsistence income.
Permanent worker/employees:
(i) indemnity for lost wages equal to 3
months of minimum subsistence income
AND
(ii) support to business owner to relocate
the business as quickly as possible (see
above)
AND
(iii) support from RU to enrolment into
existing livelihood restoration
programmes such as business training
and micro-credit
Allowances
Severe Impacts
>10% land impact
Physically displaced
households
Owners of businesses
that have to interrupt
activity permanently or
temporarily
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All severely affected AHs Agricultural income: additional crop
including informal
compensation covering 1 year yield from
settlers
affected land.
Other income: additional compensation
for 3 months of minimum subsistence
income.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Type of Loss
Application
Definition of APs
Compensation Entitlements
Relocation/Shifting
Transport/transition
costs
All AHs to be relocated
Assistance to identification of a suitable
replacement dwelling
Provision of an allowance of 298 GEL
covering transport expenses and
livelihood expenses for a 3 months
transitional period.
Vulnerable People
Allowances
IDPs living in
municipal or other
housing
AHs below poverty line, Allowance equivalent to 3 months of
headed by Women,
minimum subsistence income and
disabled or elderly
employment priority in project-related
jobs
Support to relocation
Registered IDPs
Assistance to the identification of suitable
municipal housing in cooperation with
relevant authorities in charge of support
to IDPs
Temporary impact
during construction
All AFs
A Rent fee will be assessed and paid
based on this LARP principles during
construction.
Damages during
construction
All AHs
Case by case basis: compensation will be
assessed and paid based on rates in this
LARP if damages occur during
construction.
Other Losses
Unforeseen impacts, if
any
EA will compensate unforeseen
resettlement impact during project based
on this LARP provisions
5.4.2 Specifics for Certain Entitlements
97.
Entitlement provisions for APs losing land, houses, and livelihood rehabilitation allowances
include provisions for permanent or temporary land losses, buildings losses, crops and trees
losses, a relocation subsidy, and a business losses allowance based on tax declarations and/or
lump sums. These entitlements are detailed below:
o
o
o
o
Non-agricultural land (Residential/commercial land). Legal settlers will be compensated
at replacement rate either in cash at current market rates. Renters/Leaseholders will
receive a 3 month rent allowance. Non-titled/non-legalizable land users will be
compensated with a one-off self-relocation allowance in cash equal to 1 year of minimum
subsistence income. This allowance is to be calculated based on a 5 people family and the
monthly-updated benchmarks indicated by the National Statistics Office of Georgia at
time of LARP approval (298 GEL).
Houses, buildings, and structures: Compensation will be provided in cash at replacement
cost based on cost of construction material, labor, transport of materials and specific
features of the buildings free of deductions for depreciation, transaction costs or salvaged
materials. All relevant APs are entitled to this provision by default irrespective of the
registration status of the affected item.
Trees: Cash compensation at market rate based on type, age and productivity of trees.
Business losses: a) Permanent: cash compensation equal to a 1-year income based on tax
declaration or, if this is unavailable, based on the official minimum subsistence income at
the time of impact (298 GEL x 12= 3,576 GEL); b) Temporary: cash compensation for the
business interruption period based on tax declaration or, if unavailable, official minimum
monthly subsistence income at the time of the end of the impacts survey (298 GEL x
months of interruption). In addition, business owners who are permanently affected will
be supported by the Resettlement Unit to identify and secure new premises.
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
o
o
o
Affected business workers/employees: Indemnity for lost wages for the period of
business interruption up to a maximum of 3 months. The allowance is based on the
minimum monthly subsistence income x a 5 people family at the time of the end of the
impacts survey (298 GEL). In addition, employees who are permanently affected will be
supported by the Resettlement Unit to enroll into existing small business establishment
programs and/or micro-credit schemes, or into training programs to enhance their
employability.
Relocation allowance: APs forced to relocate will receive a relocation subsidy sufficient to
cover transport costs (300GEL) and living expenses for 3 months. The living expenses
allowance is based on 3 months of the monthly minimum subsistence income x a 5 people
family of 5 people at the time of the end of the impacts survey (298 GEL x 3= 894 GEL.).
Vulnerable AP Allowance: Vulnerable AP (AHs below poverty line or women headed AHs
will receive) will receive an allowance equal to 3 months of the monthly minimum
subsistence income x a 5 people family at the time of the end of the impacts survey
(298GEL x 3= 894 GEL).
Severe Impacts Allowance: APs losing >10% of agricultural land or >10% of nonagricultural income, including business owners, and physically displaced people will
receive will an allowance equal to 3 months of the monthly minimum subsistence income
x a 5 people family at the time of the end of the impacts survey (298GEL x 3= 894 GEL).
5.5
VALUATION
98.
The valuation methodology is as follows:
o
o
o
o
o
50
Land is valued at market rates determined through a survey of land sales in the three
months before the survey with transaction cost added; details are provided below in
paragraph 99;
Houses/buildings are valued at replacement rate based on construction type, cost of
materials, labor, transport and value of specific features of the building. No deduction for
depreciation and transaction costs is applied;
Annual crops (very limited in the Project footprint): market value for one year of
production;
Trees: these receive compensation/indemnities as follows (see details further in
paragraphs 101 to 103):
o Saplings are valued based on transplanting costs;
o Fruit/productive trees were valued based on tree type and the net market value of 1
year income x number of years needed to grow a new fully productive tree;
The unit compensation rates were assessed by a certified valuer (audit company “ATOS”)
based on the methods described above in general terms, and which are further detailed
below for land, structures and perennial crops.
5.6
COMPENSATION RATES FOR LAND
99.
The land plots to be evaluated are located close to the existing Tbilisi – Rustavi road, where
about 200 transactions were registered by NAPR. Of these, 7 “analogue” transactions were
selected (having occurred less than three months ago). All information was processed, and
based on these reference transactions and a thorough examination of land use categories at
the site and commercial and residential conditions, 9 value groups were defined (both
agricultural and non-agricultural hence 18 value categories). The following table presents
applicable compensation rates for land based on these categories, as well as their description
and factors used for the valuation.
F.Giovannetti - Rev.4
51
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Table 16. Land Compensation Rates
#
1
2
3
4
Description
Roadside, non residential
land along existing road,
from the start of the Project
for about 1,200m along the
road until hotel restaurant
"Rose" inclusive
Roadside land, from GMP
plant for about 1,200m until
the cross road at the level of
the veterinarian institute 1st line of houses along the
road
Roadside land, from GMP
plant for about 1,200m until
the cross road at the level of
the veterinarian institute –
2nd line of houses along the
road
Residential land from hotel
restaurant "Rose" (not
included) along the river for
530m
Residential area for 300 m in
between the two industrial
areas mentioned in item 4
below
Roadside land, not
residential, from the
veterinarian institute to the
end of the Project
Residential area in the
surroundings of Marneuli
street until GMP plant essentially residential
Old industrial area for
1,000m along the river
Old industrial area for 450
m until Marneuli street
F.Giovannetti - Rev.4
Key Factors for Valuation
Non
agricultural
USD
GEL
Agricultural
USD
GEL
Roadside land, highly
valuable for roadside
businesses such as filling
stations or restaurants
65
108
61
100
The 2nd row of plots does not
have the same commercial
potential as the first one as
access and visibility are less
favourable
46
75
39
65
Residential land of average
value
33
54
27
45
Industrial land, with
reasonable but not prime
access conditions
15
25
15
25
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
5.7
52
COMPENSATION CALCULATION FOR STRUCTURES
100. The calculation sheet for structures is based on replacement values for all elements
constitutive of the building. Annex 5 provides an example, which shows the typical sheet used
for valuation of all structures.
5.8
COMPENSATION RATES FOR PERENNIAL CROPS
101. Compensation rates for perennial crops are calculated according to the following formula:
o
o
Seedlings: are not compensated but the owner receives compensation for transplanting
costs.
Fruit Trees in Productive Age: The value of these items is defined according to the
following parameters:
o Product of the tree at the productive stage or age of the tree at the moment of cutting
(which is defined by tables prepared by the consultants based on figures from the
Department of Statistics of Georgia and recognized academic publications which
detail the average productivity of a tree within intervals of 5 years) of the tree at the
moment of cutting;
o Average net value (deduced of inputs) of future produce lost at farm gate market
price based on number of productive years from the year a tree is cut to the year
when a tree will stop production), and;
o Number of years needed to re-grow the tree at the productive stage (age) in which it
was cut.
102. The valuation of the tree obtained is discounted for: the value of yearly productive inputs (the
future income to be compensated is virtual and therefore should not involve productive inputs
costs). The formula to compensate one productive tree will thus be:
C= (K*V*L) - M
Where:
o
o
o
o
o
C=compensation value of tree.
K =average annual productivity of 1 tree for remaining productive years
V=market price at farm gate of 1 kg product
L =years to be compensated (years needed for growing up a tree of the same rate of
productivity as the one cut.
M = average annual expenses for agricultural works
103. The following table presents applicable compensation rates for perennial crops:
F.Giovannetti - Rev.4
53
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Age category
Average
productivity
(kg/year)
Age when
production
starts
Years
considered for
reinstatement
Value of
seedling
Value of one kg
Income for one
year
Expenses for
one year
Price of one
tree
Plum
Peer
Apple
muSmala
Persimmon
Fig
Peach
Apricot
Ayva
Tree species
Table 17. Compensation Rates for Perennial Crops
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
young (<5)
5-10
10-15
15-20
20+
2
10
50
50
35
4
20
20
15
11
3
30
30
15
10
3
10
20
20
10
3
10
20
20
10
3
10
20
20
10
2
10
50
50
35
2
10
60
60
60
3
10
30
25
7
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
6
6
6
6
6
5
5
5
5
5
5
10
10
10
8
5
5
5
5
5
5
7
7
7
7
5
7
7
7
7
5
7
7
7
7
5
7
7
7
7
5
10
10
10
8
5
10
15
15
13
5
10
10
10
10
5
5
5
5
5
2
2
2
2
2
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
4
4
4
4
4
2.0
2.0
2.0
2.0
2.0
1.5
1.5
1.5
1.5
1.5
1.0
1.0
1.0
1.0
1.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
1.5
1.5
1.5
1.5
1.5
4
20
100
100
70
6
30
30
23
17
3
30
30
15
10
6
20
40
40
20
6
20
40
40
20
6
20
40
40
20
4
20
100
100
70
4
20
120
120
120
5
15
45
38
11
3
10
80
80
60
4
8
8
5
5
2
10
10
10
10
3
10
20
20
10
3
10
20
20
10
3
12
25
25
12
3
10
80
80
60
3
11
100
100
100
1
8
32
26
5
5
100
200
200
80
10
110
110
88
58
5
140
140
35
0
15
70
140
140
70
15
70
140
140
70
15
56
105
105
56
5
100
200
200
80
5
90
300
300
260
18
70
130
115
55
F.Giovannetti - Rev.4
54
Mul
berry
Feikhao
Black
currant
Kiwi
Grapes (in row)
Grapes
Hazelnut
Walnut
Tree species
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Age
categor
y
Average
productivit
y (kg/year)
Age when
productio
n starts
Years
considered
for
reinstatemen
t
Value of
seedlin
g
Valu
e of
one
kg
Incom
e for
one
year
Expense
s for one
year
Pric
e of
one
tree
2
10
5
5
5.0
10
3
35
4
20
30
30
10
10
10
10
10
15
20
20
5
5
5
5
5.0
5.0
5.0
5.0
20
100
150
150
10
80
130
130
100
300
400
400
4
3
5
2
1.5
6
4
10
7
15
12
10
3
3
3
3
8
8
8
8
2
2
2
2
1.5
1.5
1.5
1.5
11
23
18
15
4
5
5
5
52
140
104
80
10
3
3
1
1.0
10
5
15
15
30
30
25
3
3
3
3
5
5
5
5
1
1
1
1
1.0
1.0
1.0
1.0
15
30
30
25
10
15
15
15
25
75
75
50
3
3
3
1
1.0
3
2
3
15
15
15
10
3
3
3
3
5
5
5
5
1
1
1
1
1.0
1.0
1.0
1.0
15
15
15
10
13
13
13
9
10
10
10
5
10
3
3
1
1.5
15
7
24
15
30
30
25
3
3
3
3
5
5
5
5
1
1
1
1
1.5
1.5
1.5
1.5
23
45
45
38
11
20
20
20
58
125
125
88
2
3
3
1
4.0
8
3
15
4
6
6
4
3
3
3
3
5
5
5
5
1
1
1
1
4.0
4.0
4.0
4.0
16
24
24
16
8
10
10
10
40
70
70
30
10
3
3
1
1.5
15
7
24
15
30
30
25
3
3
3
3
5
5
5
5
1
1
1
1
1.5
1.5
1.5
1.5
23
45
45
38
11
20
20
20
58
125
125
88
4
3
5
2
1.5
6
4
10
20
20
15
11
3
3
3
3
5
5
5
5
2
2
2
2
1.5
1.5
1.5
1.5
30
30
23
17
8
8
5
5
110
110
88
58
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
F.Giovannetti - Rev.4
55
Others
Capers
Pomegranate
Almond
Cherry
Tree
species
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
5.9
Age
category
Average
productivity
(kg/year)
Age when
production
starts
Years
considered
for
reinstatement
Value of
seedling
Value
of
one
kg
Income
for one
year
Expenses
for one
year
Price
of
one
tree
8
3
3
1
1.5
12
7
15
15
34
34
25
3
3
3
3
5
5
5
5
1
1
1
1
1.5
1.5
1.5
1.5
23
51
51
38
11
20
20
20
58
155
155
88
2
10
5
5
5.0
10
3
35
6
20
20
20
10
10
10
10
10
15
15
15
5
5
5
5
5.0
5.0
5.0
5.0
30
100
100
100
10
80
80
80
200
300
300
300
4
3
5
2
1.5
6
4
10
15
20
15
11
3
3
3
3
5
5
5
5
2
2
2
2
1.5
1.5
1.5
1.5
23
30
23
17
8
8
5
5
73
110
88
58
4
3
5
2
1.5
6
4
10
10
20
15
11
3
3
3
3
5
5
5
5
2
2
2
2
1.5
1.5
1.5
1.5
15
30
23
17
8
8
5
5
35
110
88
58
4
3
5
2
1.5
6
4
10
20
20
15
11
3
3
3
3
5
5
5
5
2
2
2
2
1.5
1.5
1.5
1.5
30
30
23
17
8
8
5
5
110
110
88
58
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
young
(<5)
5-10
10-15
15-20
20+
CONDITIONS FOR EMINENT DOMAIN AND LEGALIZATION
104. Eminent domain procedures are applicable to the Project. Expropriation will be pursued only
as a last resort where no agreement between APs and MDFG can be reached. The flow chart in
Figure 5 (section 6.2.3) shows the conditions under which expropriation may be triggered.
Where expropriation is pursued, the Project will not occupy the needed plots until: (i) the
proper judicial process as defined by the law is complete in first instance (notwithstanding
appeals); (ii) a court injunction is obtained and communicated to the APs; and (iii) the
compensation/rehabilitation amounts are deposited in an escrow account.
105. APs who do not have proper registration or titles but are legitimate ("bona fide") occupants of
the plots they lose, will be legalized and registered in the land records. After this legalization is
complete they will receive equal compensation to any other legal APs. Legalizable APs will
receive technical and legal support to prepare their legalization applications.
F.Giovannetti - Rev.4
56
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
6.
IMPLEMENTATION
6.1
INTRODUCTION
106. The compensation/rehabilitation program involves different actors in implementation. These
actors include:
o
o
o
o
o
o
MDFG as the Executing agency (EA),
Municipal governments (City of Tbilisi and Gardabani District/Krstanisi Sakrebulo),
the Government of Georgia (GoG) at central level,
the National Agency of Public Registry (NAPR),
the ADB, and
Contractors and consultants.
107. Related organisational arrangements are discussed further in Chapter 7.
6.2
KEY LARP IMPLEMENTATION TASKS
6.2.1 Overview
108. MDFG takes the lead in implementation of the LARP. MDFG coordinates interventions of other
parties as needed. MDFG establishes a Resettlement Unit staffed by experienced personnel for
the purpose of LARP implementation. MDFG has already implemented LARP tranches 1 and 3
for the Tbilisi-Rustavi highway and has good experience in undertaking land acquisition to
ADB standards. However, this tranche has significant physical displacement impacts and
MDFG’s capacity will need to be enhanced to handle these new issues.
6.2.2 Sequence of Key LARP Tasks
109. The following table shows the sequence of LARP tasks from the submission of this draft LARP
to the end of LARP implementation. A LARP implementation schedule is also presented in
Chapter 10. Specifics on Consultation and Monitoring & Evaluation are presented in Chapters
8 and 12, respectively.
Table 18. Sequence of Key LARP Finalisation and Implementation Tasks
Step
Tasks / Objectives / Outcomes
Lead
A
LARP FINALISATION TASKS
A-1 Submission of LARP Rev.0 (this document)
LAR Consultants
A-2 Review of, and decision on “sensitive issues” outlined in section
MDFG
2.11
A-3 Comments to LARP Rev.0
MDFG & ADB
A-4 Incorporation of comments to LARP Rev.0 and inclusion of final
LAR Consultants
data on businesses, vulnerable persons, and business employees
A-5 Generation of LARP Rev.1
LAR Consultants
A-6 Formal establishment of Resettlement Unit, recruitment of related
MDFG
staff (particularly Data Manager – see section 0), confirmation of
their tasks and duties in formal assignment letters from MDFG
Director General, and communication of related documentation to
ADB (see paragraph 119)
A-7 Establishment of Resettlement Unit database (transfer of all
MDFG
electronic and paper files from Aligator/ATOS to MDFG)
F.Giovannetti - Rev.4
Date
July 31, ‘13
Aug ‘13
Aug ‘13
Aug ‘13
Aug ‘13
Aug ‘13
Aug ‘13
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Step
Tasks / Objectives / Outcomes
Lead
A-8 Establishment of grievance management mechanism, including
MDFG
the Grievance Redress Committee (see section 9.3)
A-9 Translation of LARP Rev.1 in Georgian (including QA/QC of the
LAR Consultants
translation by MDF/ADB)
A-10 Establish draft compensation agreements (1. Sale/Purchase
MDFG
Agreement for Land and attached real property; and 2.
Compensation Agreement for all other cases), and draft minutes of
disagreement with legal support (internal or external)
A-11 Liaise with Ministry of Finance on LARP budget mobilisation and
MDFG
payment procedures
A-12 Liaise with Ministry of Economy and Sustainable Development on
MDFG
expropriation/eminent domain and legal instruments to be
prepared in this respect
A-13 Engage on an individual basis with each affected business per the
MDFG
provisions in section 6.2.4 below
A-14 Prepare detailed livelihood restoration plan for business
MDFG
employees per section 6.2.4 below
A-15 Establish escrow account for expropriation
MDFG
A-16 Establish escrow account for absentee landowners
MDFG
A-17 Dissemination of the Non-Technical, Executive Summary of LARP
MDFG
Rev.1 in Georgian to affected people
A-18 Two formal public consultation meetings in the affected area with
MDFG & LAR
support from the municipality of Tbilisi and the District of
Consultants
Gardabani on the basis of LARP Rev.1
A-19 Identify all AHs in need of legalisation and reflect in database
MDFG & LAR
Consultants
A-20 Provide support to legalisation by APs of their unregistered
MDFG
properties
A-21 Focus groups with specific stakeholders, including (but not
MDFG & LAR
necessarily limited to) affected residents, businesses and
Consultants
residents of unaffected apartment blocks
A-22 Liaise with Ministry in charge of IDPs and Municipality of Tbilisito
MDFG
identify relocation solutions in existing vacant housing for affected
IDPs and organise upgrades to this vacant housing if warranted
A-23 Negotiations with affected people and finalisation of
MDFG
compensation agreements
A-24 Reflect outcomes of negotiations in database and generate
MDFG
compensation agreements accordingly
A-25 Establishment of lists of disagreement and individual minutes of
MDFG
disagreement
A-26 Communication of lists of disagreement to Ministry of Economy
MDFG
and Sustainable Development for initiation of expropriation
proceedings
A-27 Corrections to Draft LARP based on the outcomes of public
LAR Consultants
consultation and negotiations with APs and finalisation of an
“implementation ready” LARP (Rev.2)
A-28 Disclosure of the final “implementation ready” LARP
MDFG and ADB
F.Giovannetti - Rev.4
57
Date
Aug ‘13
Aug ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Sep ‘13
Oct ‘13
Oct – Dec ‘13
Oct ‘13
Oct ‘13
Oct – Dec ‘13
Oct – Dec ‘13
Dec ‘13
Dec ‘13
Dec ‘13
Dec ‘13
58
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Step
Tasks / Objectives / Outcomes
A-29 Discuss and agree with ADB the format and content of quarterly
monitoring reports
A-30 Submit first quarterly monitoring report (task to be replicated
throughout implementation every quarter)
B
LARP IMPLEMENTATION TASKS
B-1 Mobilise LARP budget from Ministry of Finance
B-2 Effect compensation payment to APs and reflect status of
payments in database
B-3 Monitor expropriation proceedings
B-4 Provide support to physically displaced people in identifying
adequate relocation housing
B-5 Provide support to vulnerable people, including IDPs
B-6 Reflect relocation monitoring in database (whereabouts of APs
after relocation)
B-7 Prepare ToR for IMA
B-8 Recruit IMA
B-9 Organise IMA Compliance Audit
B-10 Provide IMA Compliance Report to ADB
F.Giovannetti - Rev.4
Lead
Date
MDFG and ADB Dec ‘13
MDFG and ADB Jan ‘14
MDFG
MDFG
Dec’ 13
Jan – Apr ‘14
MDFG
MDFG
Jan – Apr ‘14
Jan - Apr ‘14
MDFG
MDFG
Jan - Apr ‘14
Jan - Apr ‘14
MDFG
MDFG
MDFG / IMA
IMA
Jan ‘14
Feb ‘14
Mar Apr ‘14
Apr ‘14
59
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
6.2.3 Negotiation and Compensation Process
110. The negotiation and compensation process is outlined in the following flow chart:
Figure 5. Negotiation and Compensation Flow Chart11
Generation of draft compensation
agreement from the RU database
AH absent and
cannot be visited
Best effort to locate AH or
obtain Power of Attorney
Inclusion of AP in the list of
expropriation to be
communicated to MoESD
AH present and can
be visited
Expropriation
First negotiation
visit to AH
If agreement reached in 1st visit:
signature and notarisation of
compensation agreement
If no agreement reached in
1st visit:
second negotiation visit to AH
If agreement reached in 2nd visit:
signature and notarisation of
compensation agreement
If no agreement reached in
2nd visit:
Preparation, signature, and
notarisation of a minute of
disagreement
Payment of compensation
per agreement
Payment of compensation
per agreement
Inclusion of AP in the list of
expropriation to be
communicated to MoESD
Expropriation
111. In general, two negotiation visits will be conducted. If no agreement is reached after the
second visit, a minute of disagreement will be drafted and notarised. The AH will be included
in the list for expropriation to be communicated to the Ministry of Economy and Sustainable
Development, or an application to Court for Necessary Right-of-Way will be prepared.
112. Where AHs cannot be located, a best effort approach will be taken to contact them and enter
into negotiations (contact with local authorities, neighbors, etc…). Notices will be published in
the local press at least once and people will be given one month to come forward before they
are included in the expropriation list (or Necessary Right-of-Way procedure).
11
As mentioned above in paragraph 86, “Necessary Right-of-Way” can be used as an alternative to expropriation.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
60
6.2.4 Support to Relocation
113. Physically displaced people will be supported by the Resettlement Unit (RU) in their efforts
towards securing alternative housing, as follows:
o
o
o
Identification of suitable housing developments where physically displaced people could
relocate themselves;
Support in negotiations with estate agents or developers;
Support in administrative procedures.
114. Vulnerable people will be subject to specific, more intensive support, particularly those who
are not eligible to compensation because they do not own their structures. For IDPs, the RU
will liaise with the Ministry in charge of IDPs and the Municipality of Tbilisi to identify suitable
relocation solutions as described above in paragraph 51. MDFG will identify vacant municipal
housing and provide any assistance that may be required to the relocation of IDPs in such
vacant housing. A cost item is included in the resettlement budget for such purpose (Table 23).
The Resettlement Unit of MDFG will identify and record in its database the whereabouts of all
relocated AHs such that monitoring of livelihood restoration and associated support can take
place.
6.2.5 Support to Livelihood Restoration of Business Owners
115. Apart from two large businesses, which are only marginally affected (land only), most of the
31 other small and mid-size businesses are affected to such an extent that their relocation will
usually be required. In such cases, most business owners indicate that they will be willing to
re-establish their business elsewhere. Previous experience indicates that this process can take
time, and business owners are therefore compensated for one year interruption of activity. In
addition, given the complexity of re-establishing a business in Tbilisi, the relocated business
owners will be supported by the Resettlement Unit in their efforts to secure suitable new
business premises. This will involve the following activities:
o
o
o
o
o
Supporting business owners in liaising with the Municipality of Tbilisi and real estate
agents to identify available commercial plots;
Supporting them in paperwork required to secure, purchase or lease, and register such
commercial plots;
Supporting them in seeking required construction permits, where warranted;
Supporting them in the commercial and marketing re-establishment of the business (such
as advertisement, sign-posting at both the new and old locations, contact with previous
clientele, etc…).
The outcome of these activities will be updated in the final implementation ready LARP.
6.2.6 Support to Livelihood Restoration of Business Employees
116. A livelihood restoration plan targeting business employees will be developed and included in
the implementation ready LARP by the Resettlement Unit of MDFG. MDFG is committed for
implementing such plan, and the cost of the plan is included in the resettlement budget (Table
23). The livelihood restoration plan will address all identified business employees (137 were
identified by the census) assuming at this point a “worst case scenario” according to which
none of these employees would be able to re-establish their employment immediately. The
methodology for establishment of this plan is the following:
o
o
Finalisation of the list of affected employees and preparation of a dedicated database;
Individualised interviews with each and every affected business owner having employees
to understand their intentions in terms of relocation and re-establishment of their
business:
o Will they relocate the business or terminate its activities?
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
61
Will they keep the affected employees after the relocation or seek to terminate and
hire others?
o
Establishment of a list of employees that may not be rehired by their current employers
and interviews with all of these affected employees to understand their projects and
capacities:
o Current position and skills;
o Assessment and discussion of their intentions in terms of new jobs (where, what);
o Assess their employability in the long term (employability potential of their current
skills and capability to acquire alternative skills);
o Assess their willingness and capacity to create their own business (provided they get
adequate support);
o Assess their training needs and willingness, and identify training opportunities
within existing schemes sponsored by the Government or by private institutions;
o Reflect the above in database for further monitoring;
o
Devise an individualised livelihood support and monitoring plan for all business
employees including detailed information related to livelihood restoration of each and
every affected business employee:
o Skill enhancement (technical training, small business awareness and training,
including business planning, marketing and management), with a detailed
identification of training curricula and institutions delivering these curricula;
o Enrollment into existing small business creation and support schemes for those with
the willingness and capability to engage into small business creation;
o Enrollment into existing micro-credit schemes;
o Costing, timeframe, monitoring arrangements;
o General facilitation and monitoring on an individual basis of each affected business
employee;
o
Monitoring of business employees during 18 months after the relocation for livelihood
restoration and any potential hardship.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
7.
ORGANISATIONAL ARRANGEMENTS
7.1
OVERVIEW
62
117. MDFG has experience in LARP implementation to ADB standards, particularly tranches 1 and
3 of the Tbilisi Rustavi highway, which were implemented in 2012. However, the scale of
tranche 2 is larger, it also involves new tasks, and MDFG will need to establish and support a
dedicated organisation, the Resettlement Unit.
118. Starting in August 2013, a Resettlement Unit (RU) shall be established comprising of the
following professionals on a full time basis for the period of LARP finalisation and
implementation (from August 2013 to June 2014):
o
o
o
o
Project manager;
Resettlement consultant;
Public engagement specialist;
Data manager.
119. The establishment of the Resettlement Unit shall be sanctioned by an MDFG internal order
under the signature of the MDFG Director General, allocating responsibilities to designated
individuals and based on the following job descriptions. This internal order shall be
communicated to the ADB for information no later than 31st August, 2013.
120. The Resettlement Unit will also be supported by external consultants, ie. the following:
o
o
o
o
o
o
7.2
International resettlement consultant (under the auspices of Dohwa Engineering) for the
finalisation of the LARP;
Local resettlement consultants (under the auspices of Transproject) for the finalisation of
the LARP;
Survey and valuation companies for the finalisation of the LARP (Aligator/Atos);
Legal support for the drafting of the compensation agreements (to be determined);
Independent Monitoring Agency (IMA), per tasks described in section 12.3 (services to be
procured following competitive bidding);
Translation services.
CURRENT RESETTLEMENT CAPACITY AT MDFG
121. While MDFG currently does not have a dedicated resettlement unit, it already has significant
LAR capacity as it successfully implemented tranches 1 and 3 of the LARP for the TbilisiRustavi highway. These two tranches did not entail physical displacement but included the
acquisition of a total of about 240 land plots, and exposed MDFG personnel to the
management of the following issues:
o
o
o
o
o
o
o
Acquisition of commercial land plots with significant commercial ventures (filling
stations, restaurants);
Acquisition of agricultural land plots and compensation of trees and annual crops;
Legalisation of informal owners;
Dealing with absentee landowners and refusals (triggering expropriation);
Dealing with vulnerable people and severely affected people;
Organising compliance audits and monitoring per ADB requirements;
Administration of a total compensation budget of about USD 10.36 Million (consolidated
over the two tranches).
122. These two tranches were essentially managed by one MDFG very experienced staff, who will
remain involved in the further implementation of the LARP for Section 2. This staff member
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
63
took care of consultation, negotiations, and compensation administration, with support other
MDFG personnel for administrative and other tasks.
123. This LARP for Section 2 is, however, larger (both from a quantitative impact and a budget
perspective), and more complex as it involves new tasks that MDFG was not exposed to in the
previous exercises:
o
o
o
Management of physical displacement, including support to physical relocation;
Support to specific layers of vulnerable people (IDPs for example);
Complex livelihood restoration for businesses (owners and employees).
124. The MDFG Resettlement Unit (described in Section 7.3 below) will therefore need capacity
building activities (describe in Section 7.4 below)
7.3
RESETTLEMENT UNIT
7.3.1 Project Manager – Job Description and Requirements
125. The Project Manager is responsible for the execution of the LARP. His/her tasks include the
following:
o
o
o
o
o
o
o
o
o
Liaison with Government and municipal authorities (establishment of joint negotiation
commissions, expropriation issues, identification of resettlement housing, support to
vulnerable people including IDPs, sensitive issues related to businesses and unaffected
apartment blocks);
Overall coordination of the work of the Resettlement Unit, including conducting weekly
coordination and task allocation meetings;
Internal coordination within MDFG with other departments involved;
Coordination of negotiations and intervention in sensitive negotiations;
Oversight of the work of all specialists and consultants involved in the LARP finalisation
and implementation;
Oversight of the preparation and implementation of the livelihood restoration plan for
affected business employees described in section 6.2.4;
Responsibility for compliance with the general implementation schedule presented in
Chapter 10;
Liaison with contractors involved in design, procurement and construction, particularly
during the construction phase and in the event of damages or grievances from the local
population;
Liaison with ADB and quality control of all documents communicated to ADB and other
stakeholders.
126. The Project Manager is an experienced MDFG professional with 10 years of experience in
project management or more, including experience in liaising with International Finance
Institutions, and excellent communication skills. The Project Manager should have good
command of the English language.
7.3.2 Resettlement Consultant – Job Description
127. The Resettlement Consultant advises the Project Manager on resettlement and compensation
issues. His/her tasks include the following:
o
o
o
Review of LARP successive iterations and coordination of MDF comments thereupon;
Coordination of resettlement, support to identification of alternative housing by APs,
liaison with responsible authorities, and monitoring of actual relocation by APs;
Participation to negotiations;
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
o
o
o
o
o
o
o
o
o
64
Coordination of support to vulnerable people, including, but not limited to IDPs
(identification of relocation solutions, liaison with responsible authorities, monitoring
during relocation and thereafter);
Verification of data communicated by survey and valuation consultants before the
establishment of compensation agreements;
Preparation and implementation of the livelihood restoration plan for affected business
employees described in section 6.2.4;
Coordination of the services of external consultants mentioned above in paragraph 120;
Participation in internal coordination meetings as needed;
Participation in engagement meetings as needed;
Preparation of internal monitoring reports per the provisions of section 12.2;
QA/QC of Georgian versions of documents intended for public consultation, particularly
the Executive Summary of the LARP;
Establishment of Terms of Reference for IMA, coordination of the services of the IMA,
review of IMA reports before their communication to ADB for potential factual
inaccuracies;
Participation in liaison with ADB and Government stakeholders at the request of the
Project Management and as needed.
128. The Resettlement Consultant is an experienced resettlement specialist with 10 years of
experience or more, excellent social and communication skills, and fully conversant with ADB
policy requirements and Georgian expropriation legislation. The Resettlement Consultant
should have good command of the English language.
7.3.3 Engagement Specialist – Job Description
129. The Engagement Specialist coordinates public consultation, disclosure, and grievance
management. His/her tasks include the following:
o
o
o
o
o
Organisation of public meetings and focus groups, including identification of venues,
notices to participants, establishment of agenda, establishment of minutes and
photographic records, signatures of lists of attendance;
Responsibility for disclosure and dissemination of all documents, particularly the LARP
Executive Summary;
Negotiations of compensation with AHs;
Information to local authorities on Project and LAR policies;
Grievance management:
o Logging of all grievances,
o Organisation of the first tier of grievance review (internal), including allocation of the
grievance to a designated individual for review,
o Engagement with aggrieved individuals,
o Ensuring that grievances are acknowledged receipt of and responded to within the
periods of time committed upon in Section 9.2,
o Feedback to aggrieved people (in writing and through direct engagement) on the
results of the internal grievance review;
o Establishment of the Grievance Review Committee,
o Organisation and documentation of GRC hearings (establishment of protocols),
o Establishment of quarterly grievance statistics for monitoring reports.
130. The Engagement Specialist is an experienced specialist with 10 years of experience or more in
similar assignments, and excellent social and communication skills.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
65
7.3.4 Data Manager – Job Description
131. The Data Manager is responsible for all aspects of compensation and AP data management,
including the following:
o
o
o
o
o
Establishment of the MDFG database of affected people and compensation
administration, based on files to be submitted by Aligator/ATOS upon finalisation of
LARP;
Management of the database, updates to circumstances of APs, establishment of
compensation agreements from the database;
Oversight of the grievance database;
Monitoring of compensation payments and update to database accordingly;
Preparation of information required for quarterly monitoring reports.
132. The Data Manager is an experienced specialist with 5 years of experience or more in data
management. Prior experience of the specific issues (legal, economic, social) raised in LAR
programs would be beneficial.
7.4
SUPPORT TO THE RESETTLEMENT UNIT AND CAPACITY BUILDING
133. The Resettlement Unit will be supported on a daily basis by the ADB national LAR consultant
based in Tbilisi under Regional Technical Assistance (RETA) program 7743 (“Mainstreaming
Land Acquisition and Resettlement Safeguards”12). This RETA program can also mobilise an
international consultant for on the job coaching and ad-hoc support. Thematic workshops are
anticipated to be organised in the same time frame that the LARP will be implemented
(second half of 2013 and 2014). Examples of issues that will be addressed in the workshops
include:
o
o
o
o
Valuation and business losses,
Consultation and disclosure,
Support to vulnerable people,
Support to relocation of businesses and households.
134. Under this RETA program the different LAR units active in different institutions of the
Georgian government (such as the Roads department, which has broad experience, or the
water and power utilities) will get together on a periodic basic to share experience and to
raise questions to the international and national consultants. International experience sharing
is also anticipated to take place in 2014.
135. The Resettlement Unit will also be supported by internal ADB resources. A training session on
ADB SPS was already organised for MDFG professionals, and additional support will be
provided by the internal safeguard specialists in charge of the Project.
136. Lastly a specific consulting budget is identified in the LARP budget (see lines “C”) to allow the
Resettlement Unit to resort to Georgian or international consultants for legal support and for
general resettlement support, would the need arise.
7.5
ROLE OF OTHER AGENCIES AND INSTITUTIONS
137. A number of other institutions have a role in the preparation and/or implementation of the
LAR for Projects under the Program, among these the most notable are:
o
12
Government of Georgia at central level:
o Ministry of Finance (MoF): The finances for the implementation of the LARPs will be
provided by MoF to MDFG upon presentation of the LARP and relative budgets. As
the implementation of the LARPs is a condition to start the civil works it will be
essential that MoF executes payments immediately. It is recommended that MDFG
Approval by ADB on 11 December, 2009; total budget: USD 5 Million over 10 countries including Georgia.
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
o
o
o
66
should liaise with MoF early in the process to clarify their procedural requirements.
Also, the MoF may take the lead in establishing administering escrow accounts to be
established for expropriation and absentees. Requirements in this respect should
also be clarified by MDFG in liaison with MoF;
Ministry of Economy and Sustainable Development (MoE): the MoE is responsible for
the establishment and communication to competent District Courts of the lists of
properties to be expropriated (see also Figure 5 above). Similarly, it is recommended
that MDFG should liaise with MoE early in the process to clarify associated
procedural requirements;
NAPR: NAPR will handle legalisation process for unregistered properties;
Courts: where expropriation has to be used (refusals and absentees), the competent
District court will review expropriation cases based on legal due process, undertake a
hearing, will possibly commission an independent expert to support the review of the
case and a fresh valuation of the property, and decide whether the land can be
expropriated and at what price;
ADB: in addition to the support role mentioned above in section 7.4, ADB will review
successive versions of the LARP and provide the relevant clearance letters in view of
contract awards and initiation of civil works based on the Compliance Report established
by the IMA.
F.Giovannetti - Rev.4
67
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
8.
CONSULTATION AND DISCLOSURE
138. Annex 4 provides full details on consultation, including the detailed records of the different
meetings held, photographs, and signed list of attendants. An English translation of the
information leaflet used during the consultation process is also presented in Annex 3.
8.1
CONSULTATION FOR THE PREPARATION OF THIS LARP
8.1.1 Introduction and Overview
139. The preparation of the LARP included consultation and participation. The focus of these
consultations was to ensure that APs and other stakeholders would be well informed of the
Project and of the LAR process, and could participate in planning. Consultation tasks started
after a first alignment was available in end June 2013, and were undertaken in parallel and
concurrently with the surveys in July 2013.
8.1.2 Consultation Process
140. The process included two key activities:
o
o
Face to face interaction with APs during the surveys, where the Project and its LAR
impacts were explained in one to one meetings to all APs, taking the opportunity of the
survey and valuation exercise in July 2013; and
Formal information and consultation meetings carried out concurrently with the survey
process.
141. A leaflet was developed in Georgian language to support the information and consultation
process. This leaflet is presented in Annex 3. Outcomes of Consultation Meetings
142. The following table summarises the meetings held. The total number of participants is about
100 individuals. In addition:
o
o
A large number of residents approached the survey team informally in the street while
the surveys were being carried out (see an example of such interaction on one of the
photographs in Appendix 1),
All affected households were interviewed and such face-to-face interaction allowed direct
information to each and every head of household in the area.
Table 19. Meetings Held
N°
1
2
3
4
5
Date
08 July 13
09 July 13
10 July 13
12 July 13
13 July 13
Location
Ponichala
Ponichala
Ponichala
Ponichala
Ponichala
6
18 July 13
MDFG office Business owners and
in Tbilisi
operators
F.Giovannetti - Rev.4
Type of stakeholder
Local residents
Local residents
Local residents
Local residents
Local residents
Number of participants
9
9
15
13
About 20 – no list of attendance
signed as the meeting was
antagonistic
30
68
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
8.1.3 Key Issues Raised in Consultation
8.1.3.1
Local Residents
143. The following table summarises main issues raised by participants in the meetings with local
residents and the answers that were then given by the team. More details can be found in
Annex 4.
Table 20. Main Issues Raised in Consultation Meetings and Associated Answers – Local
Residents
N°
Issue Raised
Number of times
issue raised
4
1
Timing of the construction and
compensation
2
What are the compensation rates for
trees, land, buildings
5
3
What happens if the plot is only partly
affected? Can we keep the remainder?
We currently live in an individual
house and do not want to be relocated
to an apartment block
What happens if we refuse to sell the
property at the proposed price
3
6
Is the alignment you just presented
final or will it change?
2
7
How can we legalise our right to the
affected property if we hold only a
Chevardnaze passport?
1
8
What if the registered owner is
deceased?
1
9
I have timber on the affected plot. Will
it be considered when the property is
valued?
1
4
5
F.Giovannetti - Rev.4
4
4
Comment or response
Construction is scheduled to start
in the first quarter of 2014.
Compensation will take place in
the second half of 2013.
This is being researched at the
moment based on past
transactions and current market
prices
This is subject to a case by case
review
You will be paid compensation
sufficient to replace your current
property by an equivalent one
Expropriation would then be
triggered and the process would
be handled by the competent
district court
It is almost final. Minor changes
can be considered by the general
alignment is now fixed
There is a process to do this. If
your property is in this case, the
project will help you obtain the
required documentation from the
National Agency of the Public
Registry
You must register the new
rightful owner. You will be
supported to do this.
If the timber is not moveable it
will be included in the
compensation. This will not be
the case if you can move it
elsewhere
69
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
N°
10
Issue Raised
We demand that the situation of our
five storey apartment building be
addressed by the Government. It is in
"accident situation” and we demand to
be relocated at the Government’s
expense. We are not letting you
measure and value our garages as long
as this issue is not addressed
8.1.3.2
Number of times
issue raised
About 20 residents
of said apartment
block
Comment or response
Your issue is not one that our
project can address as your
building is not affected by the
project. It is not in your
immediate interest to take this
position
Businesses
144. The following table summarises main issues raised by participants in the meetings with
business owners and operators and the answers that were then given by the team. More
details can be found in Annex 4.
Table 21. Main Issues Raised in Consultation Meetings and Associated Answers – Businesses
N°
Issue Raised
1 What happens if we refuse the compensation
proposal
2 Market prices are currently low. How can we
be sure that compensation is going to be
adequate?
3 In our case the restaurant of our hotel is
affected, but the hotel itself is not affected.
The impacts to the restaurant will have
negative consequences for the hotel. How are
these indirect losses taken into consideration?
4 What is the construction date? What is the
compensation date
5 We are a network of many filling stations.
Only one is affected but our accounting
records are not specific to each station but
established in a consolidated manner. How
will you establish the business losses for this
particular filling station?
6 Are we going to pay taxes on compensation?
7
8
9
I am at the same time a shareholder and an
employee of the company
How is compensation shared between
shareholders
We have made investments at the launch of
the business. How are these going to be taken
into consideration
F.Giovannetti - Rev.4
Comment or response
Expropriation is triggered per Georgian
legislation
Compensation is paid on replacement value
evaluated by reputable professional auditors
with lots of experience
This is subject to a case by case review. You
have to demonstrate the losses
Respectively first quarter 2014 and second
half 2013
If we cannot base our assessment on the
records you file to the tax inspection, we’ll
have to make a reasonable joint assessment
and mutually agree on it
No, taxes will either be exempted or they will
be added to the compensation amounts
As an employee you will be eligible to
employee compensation
Per the shareholder agreement. You have to
present it to us
This is subject to a case by case review. You
have to submit evidence of these expenses
and to demonstrate that they cannot be
recovered
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
8.2
FURTHER CONSULTATION AND DISCLOSURE FOR THE FINALISATION OF THIS LARP
145. The process that will be followed for finalisation of this LARP, including related consultation, is
shown in the table below.
Table 22. Finalisation of the LARP and Related Consultation and Disclosure Process
Step
Tasks / Objectives / Outcomes
1 Submission of LARP Rev.0 (this document)
2
3
4
5
Comments to LARP Rev.0
Incorporation of comments to LARP Rev.0 and inclusion of final data
on businesses, vulnerable persons, and business employees
Generation of LARP Rev.1
14
Translation of LARP Rev.1 in Georgian (including QA/QC of the
translation by MDF/ADB)
Dissemination of the Non-Technical, Executive Summary of LARP
Rev.1 in Georgian to affected people
Two formal public consultation meetings in the affected area with
support from the municipality of Tbilisi and the District of Gardabani
on the basis of Draft LARP
Focus groups with specific stakeholders, including (but not
necessarily limited to) affected residents, businesses and residents of
unaffected apartment blocks
Formation of the Grievance Redress Committee (see section 9.3)
Negotiations with affected people and finalisation of compensation
agreements
Finalisation of minutes of disagreement and consignation of the
related compensation in escrow account
Establishment of lists of disagreement
Corrections to LARP Rev.1 based on the outcomes of public
consultation and negotiations with APs and finalisation of an
“implementation ready” LARP
Disclosure of the final “implementation ready” LARP
15
Compensation to APs
6
7
8
9
10
11
12
13
8.3
Lead
Date
LAR
July 31,
Consultants ‘13
MDFG & ADB Aug ‘13
LAR
Aug ‘13
Consultants
LAR
Aug ‘13
Consultants
LAR
Aug ‘13
Consultants
MDFG
Sep ‘13
MDFG with
LAR
Consultants
LAR
Consultants
Sep ‘13
MDFG
MDFG
Oct ‘13
Oct –
Dec ‘13
Dec ‘13
MDFG
Oct ‘13
MDFG
LAR
Consultants
Dec ‘13
Dec ‘13
MDFG and
ADB
MDFG
Dec ‘13
Jan to
Apr ‘14
PUBLIC ENGAGEMENT DURING LARP IMPLEMENTATION
146. Public engagement during the implementation of this LARP will involve the following tasks:
o
o
Grievance management and redress, per the provisions detailed in Chapter 9, including
the establishment of a Grievance Redress Committee as of commencement of negotiations
with APs and for the whole duration of the Project, including most prominently the
construction phase (see above paragraph 145 and the associated table);
On-going information to APs on compensation rules, entitlements, compensation and
payment process;
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
o
o
o
71
On-going consultation on any issues that may arise from affected people and/or other
stakeholders (central and municipal authorities, civil society organisations, others);
Support to legalisation of unregistered plots, including support to absentee landowners
(deceased, other succession situations, establishment of Powers of Attorney, etc…);
Support to relocation for physically displaced people;
Support to vulnerable people.
147. As mentioned in Chapter 6, MDFG will establish a Resettlement Unit for the whole duration of
this Project. One individual within the Resettlement Unit will be allocated the responsibility of
public engagement and grievance management.
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9.
GRIEVANCE MANAGEMENT AND REDRESS
9.1
OVERVIEW
72
148. An amicable grievance redress mechanism is available to allow an AP to lodge any claim or
grievance with regards to compensation without resorting to the judiciary. APs will be fully
informed of their rights and of the procedures for addressing complaints whether verbally or
in writing during consultation, survey, and time of compensation. Care will always be taken to
prevent formal grievances to arise rather than going through a redress process. This can be
obtained not only through careful LAR design and implementation, but also by ensuring full
participation and consultation with the APs and by establishing constant communication and
coordination between the affected people, the EA, and the relevant local governments of
Tbilisi and Krstanisi.
149. The principles of the grievance redress system are the following:
o
o
o
o
9.2
Any formal grievance should be logged and acknowledged receipt of within a period of 7
calendar days or less;
After a period of internal review of the grievance, a proposed resolution should be
formally notified to the complainant within a period of 30 calendar days (or less) after
the grievance was originally received;
If the complainant remains unhappy with the proposed resolution he/she can resort to a
second tier of grievance review and resolution, the Grievance Redress Committee (GRC),
which includes MDFG representatives and individuals independent from MDFG, thereby
providing a level of independent review of grievances;
In case the resolution proposed by the GRC does not satisfy the complainant, they can
exert the right to resort to Justice, which they can anyway at any stage in the process.
LOGGING AND INTERNAL REVIEW OF GRIEVANCES
9.2.1 Avenues Available to Lodge a Grievance
150. Grievances can be lodged:
o
o
o
At the MDFG office in Tbilisi;
At Municipal offices in Tbilisi and Krstanisi;
With any MDFG staff working in the area.
151. A grievance register will be opened at each of the locations above. In addition, any MDFG staff
working in the area will have the possibility to record a grievance. Grievances can also be
lodged by phone to MDFG.
9.2.2 Grievance Logging and Review
152. Grievances will be logged into an electronic register (MS Excel or similar) by a designated
grievance officer within MDFG. Each grievance will be allocated to one designated staff within
the Resettlement Unit for resolution. Review of the grievance will typically involve the
verification of the compensation dossier, including NAPR data, survey and valuation forms,
and possibly the interview at site of the complainant and other interested parties such as
neighbours or people involved in the grievance.
153. A resolution proposal will be drafted and communicated formally to the complainant, with a
signed acknowledgement of receipt. If the resolution is satisfactory to the complainant and
other aggrieved or interested parties, a minute of agreement will be drafted for signature by
all interested parties. The proposed resolution letter will include information on the
possibility to resort to the second tier of grievance resolution, ie. the Grievance Redress
Committee.
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9.3
73
GRIEVANCE REDRESS COMMITTEE
154. In order to mitigate possible disputes and conflicts during LARP implementation, Grievance
Redress Committees (GRC) will be established. As the Project interests two different
administrative units (Tbilisi Municipality and Gardabani District), two distinct GRC will have
to be established. Each GRC shall include the following five members:
o
o
o
One representative of MDFG (secretary of the Committee, preferably with a legal
background);
One representative of interested municipal offices;
o Head, Department of Social Issues of the Municipality of Tbilisi or of the Gardbani
District - Chair;
o Gamgabeli or his/her representative (for the respective sacrebulos);
Three representatives of affected persons (three persons in each of the two GRCs, with a
reasonable gender mix – ie. not all males) from each affected community (preferably a
well-regarded individual in each community, such as a doctor or teacher living in the
community, a well-regarded business person, a representative of a local civil society, or a
representative of religious authorities).
155. MDFG will ensure that the GRCs obtain some initial training to understand the basics of the
LARP, of relevant Georgian law, of ADB policy, and of the Project. A one day training seminar
will be organised at inception of the GRCs in this purpose.
156. The GRC will hear grievance cases once every three months as a minimum and more
frequently if warranted by the number of grievances received. The GRC will make
recommendations to MDFG for a positive resolution of the grievance, but these
recommendations will not necessarily be binding to MDFG.
9.4
NON-VIABLE LAND CLAIMS
157. Non-viable (“orphan”) land (see section 2.7.4 for the definition and potential examples of nonviable land) will undergo the normal grievance process. Land owners will be specifically
informed that they can lodge a non-viable land claim if their land is partially affected and
partially acquired for the Project. Claims will be lodged and reviewed as any other grievances.
The review of non-viable land claims will involve the following:
o
o
o
o
o
Size of the remainder;
What can the remainder be used for by the current owner (agriculture, including garden,
building, commercial, other);
Can it be sold on the normal land market in its current condition?
Assessment of access (may severed vehicular or pedestrian access cause the plot to
become uneconomical given its potential purpose?);
Assessment of access (may severed access cause the plot to become uneconomical?).
158. Based on the results of this assessment, a resolution (either positive – land should be deemed
non-viable and compensated, or negative – land is not to be purchased) will be proposed by
MDFG to the landowner.
159. In case of disagreement between the landowner and MDFG, the non-viable land claim could be
escalated to the GRC per the procedure outlined above in section 9.3.
9.5
LAST RESORT: JUDICIARY
160. Every Georgian citizen can resort to the judiciary, and complainants aggrieved by the LAR
process can exert this right at any point in the LAR process. In addition, if the resolution
proposed by the GRC is unacceptable to the MDFG or the complainant, one or the other party
can resort to the judiciary (District Court).
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9.6
74
REPORTING ON GRIEVANCES
161. Every quarterly report will include a detailed situation of grievances (see also paragraph 173).
Specifically the following will be reported upon:
o
o
o
o
Number of grievances collected in the grievance management system during the
reporting period;
Number of grievances resolved internally during the reporting period;
Number of grievances brought to the attention of each of the two GRCs;
Number of grievances left outstanding at the end of the reporting period, with a
categorisation of grievances by theme, comments pertaining to the most sensitive or
difficult ones, number of Court cases and resolution thereof.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
75
10. IMPLEMENTATION SCHEDULE
10.1 OVERVIEW
162. All activities related to LAR have been planned by MDFG to ensure that compensation is paid
prior to displacement and start of any physical civil works.
163. The LAR preparation and implementation process includes four main phases, as reflected in
the detailed implementation schedule presented in Figure 5 below:
o
o
o
o
LARP preparation;
LARP finalisation;
LARP approvals; and
LARP implementation.
164. Key milestones include:
o
o
o
o
LARP preparation:
o Submission of a first draft LARP (this document);
o Submission of a second draft LARP after incorporation of any outcomes of public
consultation;
LARP finalisation:
o Submission of an implementation-ready LARP after negotiation and agreement with
Affected Households;
LARP approval:
o Approval of the above implementation-ready LARP by the ADB, and related PFR
signing;
LARP implementation:
o Submission of the IMA Compliance Report (see below 166) after verification that the
LARP implementation complies with commitments in this LARP;
o Non Objection Letter to proceed with physical civil works based on the IMA
Compliance Report; and
o Notice to proceed to Civil Works contractor.
10.2 LARP IMPLEMENTATION SCHEDULE
165. The LARP implementation schedule is presented in the figure below.
10.3 PHASING OF COMPLIANCE AUDITS
166. To allow for start of civil works on certain sections where LAR implementation would be
complete, the ADB may authorise that compliance audits be carried out in phases. This will be
planned in detail after the progress of LAR has been jointly reviewed.
F.Giovannetti - Rev.4
76
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Figure 6. Implementation Schedule
LARC: LARP Consultants
#
1
11
12
13
14
15
16
17
18
19
2
21
22
23
24
25
26
27
3
31
32
33
34
35
4
41
42
43
44
45
ACTIVITY
LARP PREPARATION
Initial due diligence and scoping of LAR impacts
Tentative alignment available
Initial consultation with Affected People
RoW optimisation
LARP surveys and valuation
First draft LARP (this document)
Initial consultation with Affected People based on draft LARP
Amendments to draft LARP as warranted by consultation
Second draft LARP based on consultation and final design
LARP FINALISATION IN VIEW OF FINAL APPROVALS
Establishment of grievance redress mechanism and GRC
Notification of land acquisition proposals to AP
Negotiations and agreements with AP
Preparation of livelihood restoration plan for employees
Legalisation of legalisable AP
Establishment of list of expropriation cases
Finalisation of "implementation-ready" LARP
LARP APPROVALS AND DISCLOSURE
LARP disclosure
LARP approval by Asian Development Bank
LARP budget allocation by Government of Georgia
Trigger any expropriation proceedings that may be necessary
Periodic Financing Request (PFR) approval by ADB
LARP IMPLEMENTATION
Compensation to APs having signed amicable agreements
Monitoring of vulnerable people and assistance
Expropriation proceedings
Compliance audit and report
Start of civil works
F.Giovannetti - Rev.4
Lead
ADB
Dohwa
LARC
Dohwa & LARC
LARC
LARC
MDF
MDF
LARC
MDF
MDF
MDF
MDF
MDF
MDF
MDF
MDF
ADB
GoG
MDF
ADB
MDF
MDF
Justice
IMA
Contractor
2013
May June July
Aug
Sep
2014
Oct
Nov
Dec
Jan
Feb
Mar
Apr May
Jun
June July
Aug
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
77
11. COST OF THE LARP AND FINANCING
11.1 LARP BUDGET
11.1.1
Overview
167. The LARP budget includes compensation, allowances to vulnerable and severely affected AH,
and LARP implementation costs. A 10% contingency provision is included. In case of any overrun in cost, MDFG will provide additional funds as needed in a timely fashion. MDFG through
the approval of MOF is responsible for timely allocating and disbursing the budget. Budget
items included in the following assessment include the following:
o
Compensation:
o Land
o Buildings
o Trees and other crops
o Business losses
o
Allowances:
o Severe impacts
o Vulnerability
o Relocation
o Loss of employment
o
LARP implementation costs.
11.1.2
LARP Budget
168. The following tables provide the budget for all above items. Full details of compensation
calculation for each affected household are provided in Annex 6.
11.2 FINANCING OF THE LARP
169. All funds for compensation and allowances will be provided from the Government of Georgia’s
budget. MDFG will ensure the allocation of funds for compensation to be paid for land
acquisition and resettlement. MDFG will get the budget approved from the Ministry of Finance
and allocate the funds in advance for implementation of the LARP in conformance with the
implementation schedule shown in Section 10.2.
11.3 TAXES
170. Either compensation will be exempt of taxes, or any taxes that may be due by AHs in respect of
compensation will be added on top of their compensation and supported by the LARP budget.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
Table 23. LARP Budget
#
A
A1
A11
A12
A13
A2
A20
A21
A22
A3
A4
A5
B
B1
B2
B3
B4
C
C1
C2
C3
C4
C5
Item
COMPENSATION
Land
Private land
Public land
Unregistered land
Buildings and structures
Buildings and structures
Two storey apartment building (including top-up)
Rehabilitation of housing for 6 IDP families
Trees
Annual crops
Business losses
SUB-TOTAL A COMPENSATION
ALLOWANCES
Severe impact (228 beneficiaries)
Vulnerable people (82 beneficiaries)
Relocation (81 beneficiaries)
Loss of employment (137 beneficiaries)
SUB-TOTAL B ALLOWANCES
IMPLEMENTATION
Operational cost of the Resettlement Unit (12
months x GEL 8,000)
Consultants
Legal support
Independent Monitoring Agency
Livelihood restoration plan
SUB-TOTAL C IMPLEMENTATION
GRAND TOTAL BEFORE CONTINGENCIES
CONTINGENCIES 12.5%
GRAND TOTAL WITH CONTINGENCIES
F.Giovannetti - Rev.4
Cost GEL
Cost USD
12,309,393
-
7,460,238
-
21,104,936
3,300,000
260,000
449,805
231
1,451,296
38,875,661
12,790,870
2,000,000
157,576
272,609
140
879,573
23,561,007
203,832
73,308
72,414
122,478
472,032
123,535
44,429
43,887
74,229
286,080
96,000
58,182
60,000
40,000
60,000
330,000
586,000
39,933,693
4,991,712
36,364
24,242
36,364
200,000
355,152
24,202,238
3,025,280
44,925,405
27,227,518
79
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
#
A
A1
A11
A12
A13
A2
A20
A21
A22
A3
A4
A5
B
B1
B2
B3
B4
C
C1
C2
C3
C4
C5
Item
COMPENSATION
Land
Private land
Public land
Unregistered land
Buildings and structures
Buildings and structures
Two storey apartment building (including top-up)
Rehabilitation of housing for 6 IDP families
Trees
Annual crops
Business losses
SUB-TOTAL A COMPENSATION
ALLOWANCES
Severe impact (228 beneficiaries)
Vulnerable people (82 beneficiaries)
Relocation (81 beneficiaries)
Loss of employment (137 beneficiaries)
SUB-TOTAL B ALLOWANCES
IMPLEMENTATION
Operational cost of the Resettlement Unit (12
months x GEL 8,000)
Consultants
Legal support
Independent Monitoring Agency
Livelihood restoration plan
SUB-TOTAL C IMPLEMENTATION
GRAND TOTAL BEFORE CONTINGENCIES
CONTINGENCIES 12.5%
GRAND TOTAL WITH CONTINGENCIES
F.Giovannetti - Rev.4
Cost GEL
Cost USD
12,572,864
-
7,619,918
-
21,104,936
3,300,000
260,000
449,805
231
1,451,296
39,139,132
12,790,870
2,000,000
157,576
272,609
140
879,573
23,720,686
203,832
73,308
72,414
122,478
472,032
123,535
44,429
43,887
74,229
286,080
96,000
58,182
60,000
40,000
60,000
330,000
586,000
40,197,164
5,024,646
36,364
24,242
36,364
200,000
355,152
24,361,918
3,045,240
45,221,810
27,407,157
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
80
12. MONITORING AND EVALUATION
12.1 INTRODUCTION AND OVERVIEW
171. LAR tasks will be subjected to both internal and external monitoring:
o
o
Internal monitoring will be conducted by MDFG,
External monitoring will be assigned to an Independent Monitoring Agency (IMA) to be
hired by MDFG with ADB’s approval. The IMA may be selected among NGOs, academic
institutions, consulting firms, or independent experts with relevant experience of
resettlement in the contact of Government sponsored projects in Georgia. ADB will advise
MDFG on the IMA's terms of reference once Project implementation has begun.
12.2 INTERNAL MONITORING
172. Internal monitoring will be carried out by MDFG through the services of an in-house LAR
consultant integrated into MDFG’s teams. Results will be communicated to ADB through the
quarterly Project implementation and monitoring reports submitted by MDFG. Indicators for
internal monitoring will be those related to the LAR process, inputs, outputs and immediate
results and are detailed below.
173. The quarterly Project implementation and monitoring reports will include a dedicated chapter
on LAR, with relevant information structured in tabular form with brief explanatory
narratives. The LAR chapter of the Project quarterly report will be consolidated from monthly
LAR reports prepared by the MDFG resettlement team. Specific LAR monitoring benchmarks
and indicators will be the following:
o
o
o
o
o
o
o
Information campaign and consultation with APs (numbers of APs consulted with,
numbers, location and purpose of meetings, participation of local authorities, issues
raised and outcomes);
Status of land acquisition (progress in terms of numbers of plots and numbers of square
metres) and status of payments of land compensation (in GEL);
Compensation for affected structures and other assets (number of structures
compensated for, compensation paid in GEL, same for compensation other assets);
Relocation of APs (status in terms of number of people relocated, analysis of their
destination, qualitative analysis of any difficulties that they may have experienced);
Compensation payments for loss of business income and payments to employees (in
terms of number of payments made and numbers of compensation and employees paid);
Income restoration activities (facilitation of access to employment, any other assistance);
and
Grievance management (number of grievances collected in the grievance management
system during the reporting period, number of grievances resolved during the reporting
period, and number of grievances left outstanding at the end of the reporting period, with
a categorisation of grievances by theme, comments pertaining to the most sensitive or
difficult ones, number of Court cases and resolution thereof).
174. The above information will be collected through the following instruments:
o
o
o
o
o
Informal interviews with APs;
Key informant interviews (local authorities, local leaders, such as priests, local doctors or
teachers);
Focus group discussions;
Processing of grievance management information; and
Community public meetings when and where needed.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
81
12.3 INDEPENDENT MONITORING
12.3.1
Overview
175. Independent monitoring is carried out during LARP implementation (“Phase I”) and thereafter
(“Phase II”). Phase I is focussed on the compliance of LARP implementation with
commitments contained in the LARF and LARP, while Phase II aims at demonstrating that
affected livelihoods are restored.
176. Results of independent monitoring are communicated to MDFG and ADB through monitoring
reports. Independent monitoring is carried out by an Independent Monitoring Agency selected
according to procedures acceptable to the ADB and the choice of which is submitted to ADB
for approval.
12.3.2
Phase I – Compliance of LARP Implementation
177. This is carried out by the Independent Monitoring Agency (IMA) in parallel with the
implementation of the LARP and is concluded after the LARP implementation is complete by
the preparation of a Compliance Report. A conclusive Compliance Report is a condition to start
the implementation of physical civil works for the project.
178. MDFG and the Government of Georgia will authorise the IMA to access any relevant
information, including compensation records and AP databases.
179. Tasks of the IMA include the following:
o
o
o
o
o
o
Review of all compensation payment documentation, and verification that compensation
paid complies with entitlements as envisaged in this LARP (verification that
compensation was paid in the amounts provided in this LARP for all different types of
entitlements);
Verification that several affected AP and vulnerable people were served the specific
entitlements envisaged in this LARP and that specific livelihood restoration measures
were implemented;
Implementation of an AP satisfaction survey targeting a 40% sample of affected
households, with stratification of the 40% sample to take account of all categories of AH
outlined in this LARP, including business owners and employees;
Review of implementation arrangements, including consultation and participation,
information disclosure, monitoring and evaluation and grievance management, and
resources allocated to implementation by MDFG, and verification that they comply with
provisions in this LARP;
Review of the informal land legalization process and assessment of its effectiveness,
specifically that no eligible informal land user was left without a compensation or
assistance solution; and
Review complaints and grievances, with particular focus on outstanding grievances, and
assess the legal risk to MDFG and ADB arising from outstanding grievances.
180. The IMA will prepare the Compliance Report immediately after the completion of LARP
implementation. The Compliance Report will provide a conclusion as to the general
compliance of LARP implementation and a recommendation to ADB regarding the provision of
No Objection Letter to start the civil works.
12.3.3
Phase II – Livelihood Restoration
181. Within 6 months from the end of the implementation of the whole SUTIP program, the IMA
will assess the degree of income restoration achieved by the LAR compensation and
resettlement program.
182. This exercise will be based on a categorisation of impacts on livelihoods consistent with the
one presented in Chapter 2 of this LARP, ie:
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August 2013
o
o
82
Physical displacement (loss of residence) and related impacts on livelihoods (loss of
employment, loss of gardens and trees, loss of economic opportunities in general);
Economic displacement (loss of livelihoods):
o Loss of land,
o Business losses,
o Loss of employment as a result of Project impacts on a business.
183. The following main parameters will be used for the investigations to be carried out in this
assessment of livelihood restoration:
o
o
o
o
o
o
o
Socio-economic circumstances of APs and standard of living;
Security of tenure in the new location;
Changes in housing and income levels;
Access to employment;
Rehabilitation of informal settlers;
Effectiveness of grievance procedures;
Level of satisfaction of APs in the post resettlement period.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Annex 1 – Photographs
Two storey residential building at Station 5+200.
The building is partially affected
Same building at 5+200: view of the affected
wing (currently used only for toilets)
Residential house within an industrial plot at
Station 5+080. The house is occupied informally
by 5 IDP families
Residential house (affected) on unregistered land
at Station 5+200 (located between the 2-storey
building above and the river)
Marneuli Street at Station 7+500.
Some of these houses are affected
Population of Marneuli Street interacting
informally with survey team to ask questions
and look at Project drawings (27 June, 2013)
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
84
Typical industrial buildings (affected) of the Soviet Informally established garages at Station 6+800
period at Station 6+900
belonging to the residents of a neighbouring 5
storey building. Surveyors were denied access to
these garages by the disgruntled owners
“Arjevani” building at Station 6+500. The building
is partially affected
Same building: this area is used for vehicular
access and is affected, hindering access to the
building in the future
Current gate and security check point into the
industrial site of GMP company
(pharmaceuticals) at Station 8+100
Park of GMP company in the area affected by the
Project. The planes, cedars and the fence are
affected
F.Giovannetti - Rev.4
85
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Annex 2 – Survey and Census Form
SOCIO-ECONOMIC SURVEY FORM
Cheklist for social survey
Family #
Name of household
head
1. Household composition
Education
#
Gender
Age
Nationality
Pre-School
Primary
Proffesional
school
University
(profteqnical)
Illiterate
1
2
3
4
5
6
7
2. Social status
Does your household
receive any kind of
social
allowence/assistance
from the Government
Below poverty line/
subsistance allowence
Insurance
Other social assistance
2. Place of residence
Place of residence
In town/city
In village
4. Woman headed household
Yes
Main source
of income
Agricul
ture
5. Household annual income (GEL)
Regular
Regular
wages
wages
Own
Wages for
from
from
business casual labour
Governme
private
nt service
company
No
Pension - How many people
receive pension in
household and how much
6. Loan and its structure (yes/no and from private person or from bank)
Bank loan
Loan from private person
No
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
7. Household assets/real estate
Type of assets
(structure, land, etc.)
Category
Features
Land
(agricultural/ residential/
commercial)
area
Type of structure
(residential/ancillary building
(cow shed, garage,
etc.)/commercial
How many storey house/brick, concrete or
wooden
Land plot #1
Land plot #2
Land plot #3
Land plot #4
Land plot #5
Structures
Structure #1
Structure #2
Structure #3
Structure #4
Structure #5
8. Movable property (quantity)
Refrigerator
Washin
g
mashin
e
Car
Motorbike
Bicycle
Gas stove
Heating
system
Air conditioner
9. Cattle
Cow
Pig
Sheep
Horse and donkey
Poultry
10. Household main current expenses (Gel per year)
For food
Other
Total
11. Infrastruqture (yes/no)
Central
water supply
Well
Central
sewage
system
Elqtrisity
Natural
gas
supply
Gaz container
Fuel
Wood
12. Availability of education, medical and communal services (yes/no)
Local
policlinic
Local hospital
F.Giovannetti - Rev.4
Kinder garden
School
Local
road
Highway
87
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
INVENTORY FORM
Inventory of Losses
Date:
1
2
3
3
Owner's name and ID #:
Owner's address:
# of land plot:
Total area:
3
Affected land plot in sq.m.:
4
Ownership status: (state, private)
5
6
7
8
9
10
11
Tenure status: 1-registered/legal owner, 2-rightfull owner/legalizable owner, 3-nonrightfull owner/legalizable owner, 4-informal settler/non-legalizable landowner)
Legal status of user: Owner/tenant-1, official leaseholder -2, non-official leaseholder -3,
new settler-4
Land use: Agricultyral-1, Non-agricultural-2
Agricultural-1, Residential-2, commercial-3, other non-agricultural-4
Use of agricultural land: cropland-1, orchard-2, pasture-3, other-4
Irrigation: irrigated-1, drainage-2, not land-reclamation -3
Relief: plain-1, inclination-2, steep-3, mixed-4
Plantations on affected land
#
Name of plants
Quantity
Age
Productivity
(kg/tree)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Annual crops on affected land
#
1
2
3
4
Harvest type
F.Giovannetti - Rev.4
Harvested area/ kv.m.
Avarage productivity kg/ha
88
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Affected structures
Features
1
Purpose of the structure
2
3
4
5
6
7
Construction date
Seismic stability
Quantity of floors
Total area:
Area of attic/mansard
Structure #1
Structure #2
Area of basement
Constructional part
8
9
10
11
12
Foundation
Walls
Partitions
Attic
Roof
Coverings/Facing
13
14
15
16
17
18
Outside coverings
inside coverings
Floor
Ceiling
Windows
Door
Communications
19
20
21
22
23
Sewage system
Water supply
Electricity
Heating
Gas supply
Fencing and gate
Title
1
2
3
4
5
Length
Height
Thickness
Parameters of socle/base
Construction materials used
1
2
3
Length
Height
Materials used
Fence #1
Fencing
Gate
F.Giovannetti - Rev.4
Fence #2
Structure #3
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Business on affected land
#
1
2
3
4
5
Title
Type of business
Annual income
Quantity of staff
Avarege salary
Taxes
Comments and notes:
Owner:
Interviewer:
Sakrebulo (local governemnt)
representative:
F.Giovannetti - Rev.4
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
90
Annex 3 – Information Leaflet
INFORMATION LEAFLET
LAND ACQUISITION AND RESETTLEMENT POLICY
THE MODERNIZATION OF TBILISI_RUSTAVI SECTION OF THE TBILISI-RED BRIDGE
(AZERABAIJANI BORDER) ROAD
Section-2 (Phonichala)
Introduction
1. The Government of Georgia has received a loan (USD 60 million) from the Asian Development
Bank (ADB) for the Modernization of Tbilisi-Rustavi Section (section 2) of the Tbilisi to Azerbaijani
Border Road, under the Sustainable Urban Transport Investment Program. Section-2 is 6.8km.
2. The Municipal Development Fund of Georgia (MDFG) is the project executing, implementing and
disbursing agency. The MDFG acts on behalf of the municipality and the Road Department of
Georgia. The objective of the Project is to improve transport conditions between Tbilisi and Rustavi,
facilitate daily commutes and freight transport between the two cities, and enhance road safety, in
an environmentally sustainable way
3. As the project entails land acquisition and potential displacement of people, it requires the
preparation and implementation of Land Acquisition and Resettlement Plans. These plans will
provide compensation and resettlement assistance to affected families/persons and will aim at
protecting or improving their current livelihoods
4. This Leaflet is an instrument to inform affected people about compensation policy/procedures
developed in the Land Acquisition and Resettlement Plan for section-2.
5. The Land Acquisition and Resettlement Plan will be prepared in conformance with ADB’s policies
and Georgian law.
Planning the Compensation and Resettlement Program for the Project
6. The Municipal Development Fund of Georgia will prepare a Land Acquisition and Resettlement
Plan. The hard copy of this plan in Georgian will be deposited for public consultation at the office of
the Municipal Development Fund of Georgia. An electronic version of the plan will be placed on
MDFG and ADB web-sites. The plan will detail impacts, compensation eligibility and entitlements,
compensation rates for different affected assets and procedures for land acquisition and
resettlement as summarized in the following sections.
Resettlement Policy and Principles
7. Land for construction of the new road will be acquired under the laws of Georgia and the ADB
Safeguards Policy Statement (2009). Affected persons will be compensated at replacement value
and receive adequate allowances according to the severity of impacts and their vulnerability status,
if applicable. The detailed design consultant has investigated alternatives to minimize impacts.
Land acquisition for the project is based on the following principles:
o
The design will seek to minimize land acquisition and resettlement impacts;
o
A time-bound action plan will be prepared and implemented to improve or at least
restore pre-program standard of living of affected people;
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
o
o
o
o
o
o
o
91
Affected people will be consulted and their opinions will be considered in project design
and implementation;
Compensation will be based on replacement cost following current market value at the
time of land acquisition;
Affected people without title to land will be compensated for lost assets other than land
and provided with a livelihood allowance;
Affected people will be assisted in their efforts to legalise informal occupation, where
applicable, and further compensated;
Vulnerable people and severely affected people will be provided with special assistance;
Compensation and resettlement assistance will be provided prior to the start of
construction; and
Appropriate mechanisms will be established to solve grievances.
Compensation Eligibility and Entitlements
8. APs entitled to compensation or at least rehabilitation provisions under the Project are:
o
All APs losing land either with legal title or traditional land rights, legalizable, or without
legal status;
o
Tenants and sharecroppers whether registered or not;
o
Owners of buildings, crops, plants, or other objects attached to the land; and
o
APs losing business, income, and salaries.
9. In particular the eligibility to land compensation for this project has been elaborated as follows:
o
Titled APs will be fully compensated
o
Untitled APs who were legitimate leasers under the old Soviet system and have either
plots with a house or adjacent to a plot with a house will be legalized and then
compensated.
o
Untitled APs who were not legitimate leasers under the old Soviet system and who use or
cultivate the land they occupy only extemporaneously will not be legalized nor
compensated. They however, are still eligible for crop or income compensation.
10. Compensation eligibility will be limited by a cut-off date to be set for each subproject on the day
of the beginning of the AP Census and DMS. APs who settle in the affected areas after the cut-off date
will not be eligible for compensation. They, however will be given sufficient advance notice,
requested to vacate premises and dismantle affected structures prior to project implementation.
Their dismantled structures materials will not be confiscated and they will not pay any fine or suffer
any sanction.
11. The provisions for APs losing land, houses, and income and rehabilitation subsidies are defined
below in table 1.
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Table 1: Compensation Matrix
Type of Loss
Land
Application
Definition of APs
Permanent loss of
agricultural land
AH losing agricultural
Owner with full
land regardless of impact registration
severity
Legalizable Owner
Informal Settlers (AHs
with no
registration/valid
documentation and non
legalizable)
Non-Agricultural Land AH losing their
Owner with full
commercial/ residential registration
land
Legalizable Owner
Compensation Entitlements
Cash compensation at replacement cost.
These AP will be supported to obtain
legalisation and provided with cash
compensation at replacement cost.
One time self-relocation allowance in
cash. The relocation allowance is not
dependent on the number of AH
members or land characteristics and is a
fixed amount per family equal to 1 year of
minimum subsistence income13.
Cash compensation at replacement cost.
These APs will be legalized and provided
with cash compensation at replacement
cost..
Renter/Leaseholder
Rental allowances in cash equal to 3
months of leasing costs, according to
leasing fees approved by the
municipalities for leasing the land of such
category.
Informal Settlers (AHs
with no
registration/valid
documentation and not
legalizable).
One time self-relocation allowance in
cash The relocation allowance is not
dependent on the amount of AH members
or land characteristics and constitutes
fixed amount per family equal to 1 year at
minimum subsistence income.
Non-viable (“orphan”) Land that is affected
Owner with full
land)
partially but to such to an registration or
extent that the remainder legalizable owner
is not usable
(subject to legalisation)
Subject to a request being lodged by the
land owner, orphan land may be
compensated in full if the review of the
request indicates that the remainder
cannot be used economically
Buildings and Structures
Residential and non
residential
structures/assets
All AHs regardless of
their legal ownership/
registration status
(including legalizable
and Informal Settlers)
Full impact: Cash compensation for loss
of building/ structures at full
replacement costs free of depreciation
and transaction costs
Partial impact: compensation for repairs
Loss Of Community Infrastructure/Common Property Resources
Loss of common
property resources
13
Community/Public
Assets
Community/Government Reconstruction of the lost structure in
consultation with community and
restoration of their functions
The minimum subsistence income is calculated based on a 5 people family and the monthly-updated benchmarks
indicated by the National Statistics Office of Georgia at the end of the impacts survey (June 2013: 298 GEL x month).
F.Giovannetti - Rev.4
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Type of Loss
Application
Definition of APs
Compensation Entitlements
Loss of Income and Livelihood
Crops
Standing crops affected
All AHs regardless of
Crop compensation in cash at market rate
legal status (including
at gross crop value of expected harvest.
legalizable and Informal
Settlers)
Trees
Trees affected
All AHs regardless of
Cash compensation at market rate on the
legal status (including
basis of type, age and productive value of
legalizable and Informal the trees.
Settlers)
Business/Employment Business/employment
loss
All AHs regardless of
legal status (including
legalizable and Informal
Settlers)
Owner:
(i). (permanent impact) cash indemnity
of 1 year net income; and technical and
administrative support from the RU to
relocate the business in appropriate
premises
(ii) (temporary impact) cash indemnity of
net income for months of business
stoppage. Income will be calculated
based on tax declaration or in its absence
on minimum subsistence income.
Permanent worker/employees:
(i) indemnity for lost wages equal to 3
months of minimum subsistence income
AND
(ii) support to business owner to relocate
the business as quickly as possible (see
above)
AND
(iii) support from RU to enrolment into
existing livelihood restoration
programmes such as business training
and micro-credit
Allowances
Severe Impacts
>10% land impact
Physically displaced
households
Owners of businesses
that have to interrupt
activity permanently or
temporarily
All severely affected AHs Agricultural income: additional crop
including informal
compensation covering 1 year yield from
settlers
affected land.
Other income: additional compensation
for 3 months of minimum subsistence
income.
Relocation/Shifting
Transport/transition
costs
All AHs to be relocated
Vulnerable People
Allowances
IDPs living in
municipal or other
housing
Assistance to identification of a suitable
replacement dwelling
Provision of an allowance of 298 GEL
covering transport expenses and
livelihood expenses for a 3 months
transitional period.
AHs below poverty line, Allowance equivalent to 3 months of
headed by Women,
minimum subsistence income and
disabled or elderly
employment priority in project-related
jobs
Support to relocation
F.Giovannetti - Rev.4
Registered IDPs
Assistance to the identification of suitable
municipal housing in cooperation with
relevant authorities in charge of support
to IDPs
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Type of Loss
Application
Definition of APs
Compensation Entitlements
Temporary impact
during construction
All AFs
A Rent fee will be assessed and paid
based on LARP principles during
construction.
Damages during
construction
All AHs
Case by case basis: compensation will be
assessed and paid based on rates in this
LARP if damages occur during
construction.
Other Losses
Unforeseen impacts, if
any
EA will compensate unforeseen
resettlement impact during project based
on this LARP provisions
* Minimum subsistence income to be calculated based on a 5 people family and the monthlyupdated benchmarks indicated by the National Statistics Office of Georgia at time of LARP approval.
Complaints and Grievance Redress Mechanism
12. In order to mitigate the possible disputes and conflicts during the LARP implementation process
a Grievance Redress Committee (GRC) will be established. The GRC shall comprise of the following
members:
o
Representative of Rayon Municipality
o
Representative of the Mayors and villages (Sacrebulo);
o
Designated informal leader of project affected communities;
o
Representative of permanently affected persons from each affected community; and
o
Representative of local NGOs or local (rayon level) society, if available.
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
95
Grievance Resolution Process
1. First, complaints resolution will be attempted at local municipality level with the involvement of
village authorities, the assisting NGO and informal mediators.
2. If still unsettled, a grievance can then be lodged to the GRC. The AP will be invited by the GRC two
weeks after the complaints had been filed to hear the case. Two days after the hearing the GRC will
inform the AP whether the case is to be dismissed or whether recommendation has been made to
MDFG for settling the case.
3. If after the GRC intervention no solution has been reached a grievance can be directly lodged to
MLARO. The AP must lodge the complaint within 2 weeks after receiving response on the original
complaint from the GRC and must produce documents supporting his/her claim. The MLARO will
provide a response within 2 weeks of registering the complaint.
4. Should the grievance redress system fail to satisfy the AP, they can pursue further action by
submitting their case to the appropriate court of law (Rayon Court). The implementing NGO may
help the APs in this process.
Special Recommendations to APs for Legalization of legalizable plots
13. It is likely that some land parcels to be acquired are not registered or not properly registered.
Affected people who occupy such land plots may be legalized, as long as these land plots are not
owned by others or the state and are legitimately used by them. Only after legalization can these
affected people be compensated.
14. The Municipal Development Fund of Georgia and local governments of project areas are already
assisting affected people by preparing accurate land parcel maps with geometric descriptions which
will be provided to them. However in order to do so in the best possible the Project authorities need
affected people collaboration for the following: as soon as the documentation is available please
register your land parcels to avoid complexity and delays in land acquisition and receipt of
compensation. The cost of registration of land parcels will be included in the replacement cost of
land.
Contact Information
15. For any information and advice, please feel free to approach the following contacts:
MDF office Tbilisi, Georgia
Survey Team: Avto Oqromchedlishvili – Mob: 577 500896
Malkhaz Komladze – Mob: 599 360322
F.Giovannetti - Rev.4
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Complaints and Grievance Submission Form
Name, Last name
Contact Information
Mail:
Please
indicate
the
postal
address:
_________________________________________________________________________________
Please indicate the _________________________________________________________________________________
preferable means of ______
communication (Mail,
Telephone, E-mail)
Telephone:
_______________________________________________
E-mail:____________________________________________
The language desirable Georgian
for the communication
English
Russian
Describe the grievance/claim:
Date of Negotiation:
What is the complaint about? What is the claim?
When it happened, what is the problem result?
Resolution of Negotiation:
In your opinion how this claim should be resolved?
Signature: _____________________________
Date: _______________________________
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Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Annex 4 – Public Consultation Report
CURRENT STATUS OF PUBLIC CONSULTATIONS AND PLANS FOR FURTHER CONSULTATIONS
184. Currently, the process of public consultations is ongoing. One large meeting has been
conducted with business representatives (July 18), and the other with the residents of
apartment buildings losing their garages (July 12). Meetings in smaller groups (7 – 10 affected
households) were conducted during the period of July 7 – July 12. The Survey Team is
continuing consultations on individual level with each affected household.
185. After completion of draft LARP, draft EIA and Design for section 2 Ponichala, the brief
summary and supplemented information leaflet will be disclosed publicly and public
consultations will be continued. During the LARP finalization process consultation meetings
will be conducted with all project affected families. The meetings with larger group of affected
households will be carried out in Municipal Offices.
CONSULTATIONS CONDUCTED DURING JULY 7 - 18
Overview
186. The meeting were facilitated by:
o
o
o
o
o
o
Keti Dgebuadze – Ltd. “WEG” Social/Resettlement Expert,
Avto Okromchedlishvili – Representative of Audit Company “Atos” hired by the “Dohwa”
Ltd.
David Baindurashvili, MDF
Revaz Gigilashvili, MDF
Otar Nemsadze, MDF
The meeting with business sector was attended by Medgar Chelidze – ADB Resettlement
Consultant;
187. The meetings were attended by the members of affected households, their neighbors and
representatives of affected businesses (see attached lists).
188. The presentations (based on the leaflet present in Annex 3) were followed by a Questions and
Answers session. The questions and comments of participating parties were replied by the
relevant experts of the project: Questions and answers are presented in the tables below.
July 8, 2013, Meeting with Affected Households, Ponichala
Issues Raised by Participants and Answers
No.
1.
Question/Comment
When will the
construction of road
start?
Author
Askerova Elmira
2.
What is the land
compensation price?
Local Population
F.Giovannetti - Rev.4
Answer
The construction of road will start in
February - March 2014.
The process of resettlement and
compensation will start in October December of 2013.
At present the research/evaluation
process of identification of market rate
for land compensation is underway.
Evaluation methodology implies
identification of market price on the
basis of actual transactions recorded in
National Agency of Public Register and
real market proposals reflected in data
bases of the real estate traders and
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Question/Comment
Author
3.
In case when only part
of the whole land parcel
is affected, is the
residual land parcel
subject for
compensation?
Natia Jgenti
98
Answer
advertizing sources (electronic sources
and periodical publications)
The viability of the residual land parcel
will be estimated by the independent
auditor. In case where residual land
parcel is considered unviable, the owner
will be asked to make a choice: to get
cash compensation for the residual land
or to keep the land under the
ownership.
The auditing company will inform the
Municipal Development Fund (MDF) of
Georgia about this kind of cases and if it
is confirmed that the residual land
parcel is unviable, the Government will
acquire this residual land parcel.
4.
5.
6.
We do not want to go to
apartments. We live in
private houses and
would like to get
possibility to live in the
same type of
environment and the
same type of houses.
If AP would not like to
sell the land plot what
will happen in this case?
Alieva Sevda
How the trees will be
compensated?
Aliev Solnmas
F.Giovannetti - Rev.4
Local population
Land for land compensation is limited
and is possible only in that case when
there is a land available in reserve.
You will get compensation for the lost
land and structures in amount sufficient
to buy similar land and construct the
same type buildings. In case if you will
buy similar existing house, you can even
make some savings.
The project is of Public Interest and for
such cases the Eminent Domain Law is
in force. According to this law, The land
plot needed for the projects of public
interest will be expropriated upon the
Court decision. The landowner will
receive fair compensation defined by
the Court in accordance with
expropriation rules set forth in Eminent
Domain Law. AP may request allocation
of similar land plot instead of getting
cash compensation (if it is possible).
However, in most cases there are no
available public land plots in reserve.
Compensation value of trees will be
defined according to the cash
compensation at market rate on the
basis of type, age and productive value
of the trees.
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Photographs of Meeting
Signed Attendance List
F.Giovannetti - Rev.4
99
100
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
July 9, 2013, Meeting with Affected Households, Ponichala
Issues Raised by Participants and Answers
No.
1
2
3
Question/Comment
Is the mentioned alignment
final or some changes will be
envisaged?
We have documents of
Shevardnadze period, are
these documents enough for
registration process?
When the compensation
process will start?
Author
Answer
Minor changes can be envisaged, but it will be
insignificant for main alignment.
Based on these documents you will be able to
start registration process in NAPR.
Local population
Compensation process will start before
commencement of construction activities, and
only after that construction process will start.
Presumably compensations will be paid
during November – December 2013;
All AHs regardless of their legal ownership/
registration status will receive cash
compensation for loss of building/ structures at
full replacement costs free of depreciation and
transaction costs.
4
Some houses will be
destroyed during the road
construction, how the
compensation will be
implemented in this case ?
Local population
5
We do not want to go to
apartments. We live in
private houses and would
like to get possibility to live
in the same type
environment and the same
type houses.
Will we have enough time
for construction of new
house?
Saladin Pashaev
You will get compensation for the lost land
and structures in amount sufficient to by
similar land and construct the same type
buildings. In case if you will by similar
existing house, you can even make some
savings.
Saladin Pashaev
After receiving the compensation you will be
given about 6 months for house construction
or purchasing existing house, if this period is
not enough, this issue should be agreed with
RDMRDI.
6
Photographs of Meeting
F.Giovannetti - Rev.4
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Signed Attendance List
F.Giovannetti - Rev.4
101
102
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
July 10, 2013, Meeting with Affected Households, Ponichala
Issues Raised by Participants and Answers
No.
1
Question/Comment
In case if the
compensation price will
not be acceptable for us,
what is the scenario:
will be land taken
anyway?
Author
2
How is the registration
and compensation
process handled in case
if the owner of the land
has died?
What are the prices for
land and how the price
has been determined?
Local population
3
4
In case when only part
of the whole land parcel
is affected, is the
residual land parcel
subject for
compensation?
F.Giovannetti - Rev.4
Tabatadze Anaida
Answer
The LAR process is conducted under the
Eminent Domain law and in case of
disagreement, the land will be expropriated
upon the court decision. Court will review
the prices provided by independent
auditors, who has prepared RAP, proposal
of your valuators and besides, the Court
can engage other independent auditors. The
Court decision is final. No land acquisition is
done before the payments are executed
according to the Court decision. The issue
could be solved at pre-litigation stage
through negotiations and Grievance Redress
Mechanism. In the information booklets you
can find Claims and Comments Submission
Forms.
There will not be a problem with land
registration process on heir apparent after
submission of the relevant documents to
NAPR.
The price have not been determined yet –
but you will be informed about the rates,
when the draft RAP is disclosed.
The rates for different land plots will be
derived based on the official transactions
related to selling/purchase of similar land
plots during the recent years and official
proposals advertised by real estate
companies.
CONSULTANT of the MDF will come to each
APs and will prepare precise and accurate
land parcel maps with detailed
measurement and geometric descriptions.
They will prepare a special matrix, where
everything will be defined. For each
landowner inventory will be made together
with landowner, which will be signed after
reviewing and agreement by the landowner.
After defining the compensation price
contract will be prepared. In the mentioned
case contract will be signed between the
MDF and the landowner.
The viability of the residual land parcel will
be estimated by the independent auditor. In
case of residual land parcel is considered
unviable, the owner will be asked to make a
choice: to get cash compensation for the
residual land or to keep the land under the
ownership.
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Question/Comment
Author
5
If AP would not like to
sell the land plot what
will happen in this case?
Sukhishvili Izolda
6
We do not want to go to
apartments. We live in
private houses and
would like to get
possibility to live in the
same type environment
and the same type
houses.
When the compensation
process will start?
Setrakian Rita
7
Photographs of the Meeting
F.Giovannetti - Rev.4
Local population
103
Answer
The auditing company will inform the MDF
about this kind of cases and if it is confirmed
that the residual land parcel is unviable, the
Government will acquire this residual land
parcel. Land compensation for land is
restricted and is possible only in that case
when there is a land available in reserve.
The project is of Public Interest and for such
cases the Eminent Domain Law is in force.
According to this law, The land plot needed
for the projects of public interest will be
expropriated upon the Court decision. The
landowner will receive fair compensation
defined by the Court in accordance with
expropriation rules set forth in Eminent
Domain Law. AP may request allocation of
similar land plot instead of getting cash
compensation (if it is possible). However, in
most cases there are no available public
land plots in reserve.
You will get compensation for the lost land
and structures in amount sufficient to by
similar land and construct the same type
buildings. In case if you will by similar
existing house, you can even make some
savings.
Compensation process will start before
commencement of construction activities,
and only after that construction process will
start. Presumably, payments will be done in
November – December 2013;
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Signed Attendance List
F.Giovannetti - Rev.4
104
105
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
July 12, 2013, Meeting with Affected Households, Ponichala
Issues Raised by Participants and Answers
No.
1.
Question/Comment
When the construction
of road will start?
Author
Local resident
2
Is the mentioned
alignment final or some
changes will be
envisaged?
How the harvest will be
compensated?
Local resident
4
My land plot is affected
by the project, where I
have timber, how it will
be compensated?
Local resident
5
In case if the
compensation price will
not be acceptable for us,
what is the scenario:
will be land taken
anyway?
Oganesian Andranik
6
In case when only part
of the whole land parcel
is affected, is the
residual land parcel
subject for
compensation?
Basilov Eduard
3
F.Giovannetti - Rev.4
Local resident
Answer
The construction of road will start in
February - March 2014.
The process of Resettlement and
compensation will start in October December of 2013.
Changes can be envisaged, but it will be
insignificant for main alignment.
In any case, crop compensation for 1 year
will be given to APs in cash at market rate
by default at to gross crop value of
expected harvest, even in case if you
already taken this year crop before starting
the land acquisition process. As for prices
of the trees – it depends on type, age and
productive value of the trees.
Timber will be left under your possession.
The LAR process is conducted under the
Eminent Domain law and in case of
disagreement, the land will be
expropriated upon the court decision.
Court will review the prices provided by
independent auditors, who has
prepared RAP, proposal of your
valuators and besides, the Court can
engage other independent auditors. The
Court decision is final. No land
acquisition is done before the payments
are executed according to the Court
decision. The issue could be solved at
pre-litigation stage through
negotiations and Grievance Redress
Mechanism. In the information booklets
you can find Claims and Comments
Submission Forms.
The viability of the residual land parcel
will be estimated by the independent
auditor. In case of residual land parcel is
considered unviable, the owner will be
asked to make a choice: to get cash
compensation for the residual land or to
keep the land under the ownership.
The auditing company will inform the
MDF about this kind of cases and if it is
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
7
Question/Comment
We do not want to go to
apartments. We live in
private houses and
would like to get
possibility to live in the
same type environment
and the same type
houses.
Photographs of Meetings
F.Giovannetti - Rev.4
Author
Todadze Irma
106
Answer
confirmed that the residual land parcel
is unviable, the Government will acquire
this residual land parcel. Land
compensation for land is restricted and
is possible only in that case when there
is a land available in reserve.
You will get compensation for the lost
land and structures in amount sufficient
to by similar land and construct the
same type buildings. In case if you will
by similar existing house, you can even
make some savings.
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
107
Signed Attendance List
July 12, 2013, Meeting with Residents of a Five-Storey Building, Ponichala
Issues Raised by Participants and Answers
No. Question/Comment
Author
Answer
The residents were strongly opposing the construction of the new road, although the residential
building is located at a distance of 18m from the edge of the planned road and no direct impact on
the apartment building is envisaged. Affected are only garages. However people have two major
claims:
o
traffic will worsen quality of air and noise
o
their apartment building is not in a good condition and construction activities and traffic
related vibration may easily damage the building
The residents refused even to discuss the problem and to take information leaflet (only 6 leaflets
have been distributed). The Consultants managed to inform the people about ADB regulations and
approaches but no questions/answers session could be conducted under the specific
circumstances. The residents have intention to write letter against the project to MDF and Mayor’s
office.
F.Giovannetti - Rev.4
108
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Photographs of Meeting
July 18, 2013, Meeting with Affected Business Representatives
Issues Raised by Participants and Answers
No.
Question/Comment
What happens in case if
we do not accept project
and proposed
compensation
Author
GMP representative
Current market prices
are low. The
compensation may not
be fair in that case.
Representative of
business
F.Giovannetti - Rev.4
Answer
The project is of Public Interest and for such
cases the Eminent Domain Law is in force.
According to this law, The land plot needed
for the projects of public interest will be
expropriated upon the Court decision. The
landowner will receive fair compensation
defined by the Court in accordance with
expropriation rules set forth in Eminent
Domain Law.
The land is compensated at replacement cost
based on evaluation of actual transactions.
For that price you can buy similar land at
present. The structures are compensated at
replacement cost – the price is based on cost
estimation for building similar new structure
at the same place. This price is even higher
than market price. This compensation is
enough to purchase similar existing structure
and make some additional savings, or to
109
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Question/Comment
We have the hotel with
associated restaurant.
Restaurant will be
destroyed but the losses
are not limited to direct
loss of restaurant
income and assets, but
also there are expected
indirect losses:
significant reduction of
hotel income, which was
supported by operations
of restaurant.
How is scheduled the
start up date for
construction?
In case of network of
gas-filling stations we
have only aggregated
figures of incomes from
all stations submitted to
tax department. What
the document should we
provide to confirm net
income of the affected
station?
When the LARP
implementation will
finish
How will be
compensated the
movable assets, in case
if we do not continue
the business at other
sites and finish our
business activity?
In case if the
compensation payment
is based on a
sales/purchase
agreement, will be we
imposed to pay taxes?
I am shareholder and at
the same time –
employee of the affected
plant. Am I eligible also
for compensation of
job?
F.Giovannetti - Rev.4
Author
Answer
construct new similar structure.
This case will be subject to more detailed
analysis. The income losses should be
compensated fairly.
The construction of road will start in
February - March 2014.
The process of Resettlement and
compensation will start in October December of 2013.
MDF will agree with the Tax Department that
the incomes in such cases are estimated
based on the separate cost estimations
provided by businesses (this report will be
considered as acceptable, although it is not
submitted to Tax Department).
The process of Resettlement and
compensation is planned to start in October December of 2013 and will be finished for
February 2014;
The movable assets will be purchased by the
Government (MDF as Executive Agency) and
they will decide what to do with the assets.
In RAP it will be clearly determined, that the
compensation prices are free of depreciation
and taxes. Either the MDF, as Executive
Agency, will negotiate with the Government
to exempt you from tax payments, or the tax
amounts will be added to the net
compensation price given to you and later
you will pay taxes.
Yes, in addition to the compensation of assets
and business losses, you will receive 3 allowance
in amount of 1 month minimum subsistence for
losing job.
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Question/Comment
How will be distributed
the compensation – to
company or to each
shareholder?
When are the
compensations planned
to be paid
As you have mentioned
for business losses you
will provide cash
indemnity of 1 year net
income, though I would
say that the business is
not only income and for
launching the business
activities certain
investments are needed.
Part of investments is
made based on bank
loans and certain
obligations against third
parties.
Photographs of Meeting
F.Giovannetti - Rev.4
Author
110
Answer
To each shareholder according to their shares
defined in the shareholders agreement.
The process of Resettlement and
compensation will start in October December of 2013.
Under the project for business losses cash
indemnity of 1 year net income will be
provided. At the same time land plot will be
fully acquired under the project according to
the owners desire. For buildings/structures
losses cash compensation at full replacement
costs free of depreciation and transaction will
be provided; Also, for equipment
installation/deinstallation and transportation
expenses special allowances will be provided.
Bank loan % to be paid and obligations
against third parties will be assessed as a
special case to define fair compensation. This
will be done by the Consultant and MDF in
consultation with you.
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Signed Attendance List
F.Giovannetti - Rev.4
111
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
F.Giovannetti - Rev.4
112
113
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Annex 5 – Building Valuation Methodology – Example of Calculation Sheet
Construction estimate for 1H-Code building
Materials
Unit
of
Qty
Unit
sum
meas.
price
No.
Work description
1
2
3
4
1
Treatment of continuous footings with
an excavator and loading on dump
trucks m3X1.23
m3
30,80
l
11,55
haul
10,00
l
40,00
m2
40,00
m3
4,96
m3
29,50
m3
t
t
pcs.
kg
pcs.
30,72
2,35
0,89
921,60
330,73
16,23
m2
20,00
m3
kg
t
0,27
4,00
0,010
m2
38,4
m2
t
42,24
0,03072
Arranging a 10-cm-thick gravel layer
foundation with hand
m2
112,00
Gravel
m3
13,89
Compaction of the gravel layer with a
self-propelled road compactor
m2
112,00
l
16,80
m2
101,00
m3
10,30
m3
6,14
m3
t
t
kg
3,13
0,30
0,0243
1,60
Diesel fuel
2
4
5
6
7
8
9
10
11
Transportation of ground with dump
trucks to the distance of 5 km
Diesel fuel
Arranging a 10-cm-thick gravel layer
with hand
Gravel
Arranging a monolithic reinforced
concrete continuous footing over
50X80 cm with concrete M-200 by
using a Motorized crane
Concrete M-200
Reinforcement A-III D-22
Rolled wire A-1 D-8
Making a column collar
Binding wire
Iron cutting stone
Making moulds, their arrangement to
make a reinforced concrete continuous
footing
Wooden material 40 mm, Class 4
Nails
Rolled wire A-1 D-6
Arranging a horizontal dampproofing
with ruberoid over the continuous
footings
Ruberoid
Tar
Diesel fuel
Arrangement of a 10-cm-thick
concrete layer with M-100 concrete
with hand
Concrete M-100
Arrangement of reinforced concrete
columns with concrete M-200 with the
concrete section of 40X40
Concrete M-200
Reinforcement A-III D-18
Rolled wire A-1 D-6
Binding wire
F.Giovannetti - Rev.4
5
1,9
sum
6
7
8
9
0,00
3
92,40
92,40
0,00
21,95
400,00
400,00
0,00
76,00
240,00
240,00
0,00
83,33
1327,50
1327,50
0,00
0,00
0,00
184,32
0,00
3778,56
3576,74
1364,57
184,32
992,19
64,90
60,00
60
0,00
0,00
0,00
104,00
9,2
15,30
153,60
153,60
0,00
0,00
63,36
36,71
672,00
672,00
0,00
233,32
224,00
224,00
0,00
31,92
707,00
707
0,00
978,69
368,64
368,64
0,00
0,00
0,00
0,00
385,41
448,44
37,25
4,79
21,95
3
4
3778,56
3576,74
1364,57
0,00
992,19
64,90
0,00
390
2,3
1530
6
2
7
978,69
0,00
123
1520
1530
3
4
31,92
0,00
95
3
233,32
0,00
1,9
0,2
63,36
36,71
0,00
16,8
45
104,00
9,20
15,30
0,00
1,5
1195
6
83,33
0,00
123
1520
1530
40
76,00
0,00
16,8
Total
Unit
price
0,00
1,9
Wage
385,41
448,44
37,25
4,79
60
114
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Work description
1
2
12
Construction estimate for 1H-Code building
Materials
Unit
of
Qty
Unit
sum
meas.
price
Iron cutting stone
Making of hooks (collars)
Arrangement of wooden falsework for
columns
Wooden material 40 mm, Class 4
Nails
Rolled wire A-1 D-6
Arrangement of 40-cm-thick walls
with small blocks (single block)
13
14
Small block 40X20X20
Black sand
Cement M-400
Arrangement of walls with a halfblock (20)cm
Small block 40X20X20
Black sand
Cement M-400
Arrangement of partitions at wet
points with a half-brick
15
16
17
18
19
Brick
Black sand
Cement M-400
Arrangement of reinforced concrete
blinding and beams with concrete M200, 40X20 cm
Concrete M-200
Reinforcement A-III D-14
Rolled wire A-1 D-6
Making column collars
Binding wire
Iron cutting stone
Arrangement of wooden moulds over
the reinforced concrete blinding
40X20 cm
Wooden material 40mm, Class 4
Cellophane
Nails
Rolled wire A-1 D-6
Arrangement of roof with cast
reinforced concrete,
18-cm thick
(with double reinforcement)
Concrete M-200
Reinforcement D-10 A-III
Reinforcement D-12 A-III
Binding wire
Iron cutting stone
Arrangement of wooden floors
Wooden floor material in plucker, 4
cm-thick
Wooden material on logs (0,06X0,12)
cm
Skirting
F.Giovannetti - Rev.4
3
0
pcs.
4
0,80
129
5
4
m2
34,56
m3
kg
t
0,23
3,46
0,004
m2
46,00
pcs.
m3
t
575,00
1,91
0,40
m2
110,70
pcs.
m3
t
691,88
2,30
0,5384
m2
155,95
pcs.
m3
t
3929,94
2,69
0,562
m3
6,16
m3
t
t
pcs.
kg
pcs.
6,28
0,65
0,11
385
7,59
3,79
123
1520
1530
3,5
4
772,43
990,81
163,38
0,00
26,55
15,17
m2
53,87
0
0,00
m3
m2
kg
t
0,72
59,26
10,77
0,0269
390
1
2,3
1530
m3
25,34
m3
t
t
kg
pcs.
m2
12,92
0,4124
0,5919
5,02
2,51
114,00
123
1520
1520
3
4
m2
2,39
500
m3
0,66
lin.m.
87,50
390
2,3
1530
6
3,19
0,00
0,00
Wage
Unit
price
7
sum
Total
0,2
8
0,00
25,80
9
3,19
25,80
3
103,68
103,68
0,00
0,00
0,00
89,86
7,95
6,61
89,86
7,95
6,61
0,00
17,2
791,20
791,20
517,50
42,10
60,06
0
0,00
0,00
0,00
517,50
42,10
60,06
0,00
8,6
952,02
952,02
0,00
0,00
0,00
622,69
50,66
80,77
1559,50
1559,50
0,00
0,00
0,00
1414,78
59,14
84,37
369,41
369,41
0,00
0,00
0,00
76,96
0,00
0,00
772,43
990,81
163,38
76,96
26,55
15,17
3
161,62
161,62
280,13
59,26
24,78
41,21
0
0,00
0,00
0,00
0,00
280,13
59,26
24,78
41,21
0,00
65
1646,89
1646,89
0,00
0,00
0,00
0,00
912,00
1589,38
626,78
899,74
15,06
10,04
912,00
1197,00
0,00
1197,00
390
255,65
0,00
255,65
3
262,50
0,9
22
150
0,9
22
150
622,69
50,66
80,77
0,00
0,36
22
150
10
1414,78
59,14
84,37
0,00
1589,38
626,78
899,74
15,06
10,04
0,00
60
0,2
8
262,50
115
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Work description
1
2
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Construction estimate for 1H-Code building
Materials
Unit
of
Qty
Unit
sum
meas.
price
3
4
5
6
Wage
sum
7
8
0,00
17,53
306,75
0
220
0
2760,75
13,63
2420,00
28,00
52
286,00
0
1,17
67,35
67,35
0
0
0
104,95
26,09
0,22
2160,00
2160,00
0,00
0,00
0,00
0,00
1080,00
13,80
27,30
1080,00
504,00
504,00
Nails
kg
7,62
2,3
17,53
Assembly of wooden doors unit
A 750-gr tank of vortex foam
Assembly of wooden window unit
A 750-gr tank of vortex foam
m2
0
m2
pcs.
20,45
1,70
22,00
3,5
120
8
100
8
2454,00
13,63
2200,00
28,00
15
lin.m.
13,00
18
234,00
4
kg
0,39
3
1,17
m2
22,45
m2
lin.m.
kg
10,50
65,22
0,0528
Arrangement of one-slope roof with
wooden bearing structures and smooth
zinc-plated tin
m2
120,00
Wooden material
Nails
Metal cast bindings
Smooth zinc-plated tin
m3
kg
kg
m2
2,40
6,00
7,80
120,00
lin.m.
42,00
m2
18,48
pcs.
2,00
m2
3,00
lin.m.
12,00
m2
4,36
lin.m.
26,00
m2
pcs.
8,11
104,00
Plastering 2-cm-thick façade walls
with cement mortar
m2
272,00
Yellow sand
Cement M-400
m3
t
6,66
2,04
Plastering 3 cm-thick interior walls
with cement mortar at wet points
m2
42,00
m3
t
1,56
0,503
m2
284,00
t
12,780
m2
114,00
t
5,130
m2
18,00
Arrangement
of
20-25-cm-thick
wooden window sills
Wooden glue
Cutting and placing the glass in the
door units
Glass 4 mm (core)
Glass glazing
Nails
Making and assembly of roof ridge
and water intake ducts
Smooth zinc-plated tin
Making and assembly of water catch
funnels
Smooth zinc-plated tin
Making and assembly of water
pipelines
Smooth zinc-plated tin
Making a drainage system and its
arrangement at the windows with
sheet slates
Smooth zinc-plated tin
Fired pins
Sand
Cement M-400
Plastering interior walls and partitions
with plasterboard with the thickness of
2.5 cm
Plasterboard
Plastering
the
ceilings
with
plasterboard with the thickness of 2.5
cm
Plasterboard
Making ceramic tiles on the walls at
wet points
F.Giovannetti - Rev.4
0,00
10
0,4
4,2
450
2,3
3,5
9
38
150
3
6
6
6
6
343,71
0,00
50,00
144,00
144,00
39,20
856,26
0,00
67
12
59,37
75,39
0,00
67
50,00
27,00
253,03
306,44
0,00
38
150
25
73,01
10,40
0,00
9
166,32
39,20
0,00
9
0,1
12
27,00
0,00
9
18
166,32
0,00
9
3
1080,00
13,80
27,30
1080,00
0,00
9
10
104,95
26,09
0,22
0,00
Total
Unit
price
16
78,00
78,00
0,00
73,01
10,40
1632,00
1632,00
0,00
0,00
253,03
306,44
252,00
252,00
0,00
0,00
59,37
75,39
1704,00
1704,00
0,00
856,26
684,00
684,00
0,00
343,71
288,00
288,00
116
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
No.
Work description
1
2
Construction estimate for 1H-Code building
Materials
Unit
of
Qty
Unit
sum
meas.
price
3
m2
kg
kg
lin.m.
4
18,90
90,00
9,00
1,00
Arrangement of 4-cm-thick cement
lining at wet points
m2
12,60
Black sand
Cement M-400
m3
t
0,67
0,14
Arrangement of suspended ceilings
with plastic at wet points
m2
12,60
Plastic panel (a set with metal cramp,
angle bars, CD and UD initial
profiles)
m2
13,23
12
pcs.
pcs.
pcs.
lin.m.
50,40
132,30
50,40
13,86
0,15
0,02
0,1
0,7
m2
12,60
m2
kg
kg
kg
13,23
0,30
63,00
6,30
m2
156,00
lin.m.
kg
31,20
130,42
m2
228,00
kg
102,60
m2
62,50
kg
kg
kg
lin.m.
15,63
5,21
15,63
1,25
m2
136
Ceramic tiles
Gluing cement
Decorative cement for filling furrows
Decorative angle bar
34
35
Dowels with plastic cases
Screw
Iron dowel
Plastic angle bar
Arrangement of ceramic tiles over the
floors at wet points
36
37
38
39
40
41
42
43
44
45
46
Ceramic tiles
Glue
Gluing cement
Decorative cement for filling furrows
Refinement of floors and applying 3
layers of varnishing
Coated abrasive
varnish
Double dyeing of ceilings with
aqueous dispersion
Aqueous dispersion
Puttying, scraping and double dyeing
of doors and windows with oil-bound
paint
Oil-bound paint
Solvent
Putty
Coated abrasive
Arrangement of wall sputter on the
pane
Cement
Coarse-grain sand
PVA glue
Pigment
Electricity
Assemblage of electric control unit
Assemblage of electric switches
Assemblage of electric sockets
Assemblage of service boxes
Assemblage of 25-amp electric
automations
Assemblage of 16-amp electric
F.Giovannetti - Rev.4
5
16
0,5
0,9
0,7
22
150
9
302,40
45,00
8,10
0,70
0,00
6
75,60
75,60
0,00
0,00
14,77
21,08
100,80
100,80
158,76
0,00
158,76
7,56
2,65
5,04
9,70
0,00
0,00
0,00
0,00
7,56
2,65
5,04
9,70
201,60
201,60
0,00
0,00
0,00
0,00
211,68
1,05
31,50
5,67
1092,00
1092,00
0,00
0,00
124,80
586,87
684,00
684,00
0,00
307,80
312,50
312,50
0,00
0,00
0,00
0,00
87,50
20,83
7,81
5,63
3
408,00
408,00
15,00
6,00
6,00
0,50
0,00
0,00
0,00
0,00
0
15,00
66,00
114,00
5,50
32,64
24,81
71,40
34,00
0
75,00
132,00
228,00
12,10
14,77
21,08
16
7
124,80
586,87
3
307,80
0,00
5
87,50
20,83
7,81
5,63
0,00
150
38
3,5
5
8
211,68
1,05
31,50
5,67
0,00
5,6
4
0,5
4,5
Total
8
0,00
0,00
0,00
0,00
0,00
3
sum
7
0
0,00
4
4,5
Unit
price
6
302,40
45,00
8,10
0,70
0,00
16
3,5
0,5
0,9
Wage
t
m3
kg
boTli
0,22
0,65
20,40
6,80
pcs.
pcs.
pcs.
pcs.
1,00
11,00
19,00
11,00
60,00
6,00
6,00
0,60
32,64
24,81
71,40
34,00
0
60
66
114
6,6
pcs.
4,00
7,00
28
5,00
20,00
48,00
pcs.
3,00
5,00
15
5,00
15,00
30,00
117
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Construction estimate for 1H-Code building
Materials
Unit
of
Qty
Unit
sum
meas.
price
No.
Work description
1
2
automations
Assemblage of 2X2 copper electric
cables
2X2 copper electric cable
Insulating tape
Cable clips
Assemblage of 2X1.5 copper electric
cables
Insulating tape
Cable clips
Outer Water Piping
Treatment of ground by means of an
excavator in band excavation up to
0.4*0.6 m and pouring it aside
(sewerage, for water)
Diesel fuel
Assemblage of D-32 mm- pn25 pipes
Fittings
Ground backfilling with an excavator
47
48
49
50
51
Wage
Unit
price
sum
Total
3
4
5
6
7
8
9
lin.m.
425
0
0
1
425,00
425
lin.m.
pcs.
pcs.
433,5
8,67
510
1,3
2
0,05
563,55
17,34
25,5
0,00
0,00
0,00
563,55
17,34
25,5
lin.m.
125
0
0
125,00
125
pcs.
pcs.
2,5
150
2
0,05
5
7,5
0
0,00
0,00
0,00
5
7,5
0
m3
15,50
46,50
46,50
l
lin.m.
pcs.
m3
5,81
50
20,00
15
2
3,9
0,3
0,00
100
0
60,00
11,63
295
6
60,00
lin.m.
lin.m.
pcs.
pcs.
pcs.
pcs.
pcs.
9
7
3
4
3
3
2
3,9
1,61
0,42
0,25
0,51
0,25
7,63
53,1
21,77
1,26
1
1,53
0,75
21,26
komp
1,00
pcs.
pcs.
pcs.
pcs.
pcs.
1,00
1,00
1,00
1,00
0,20
komp
1,00
pcs.
pcs.
pcs.
pcs.
pcs.
pcs.
1,00
2,00
1,00
1,00
2,00
0,40
95
1
7
40
8
2
95,00
2,00
7,00
40,00
16,00
0,80
0
1
0,00
3
11,63
195
6
2
4
Inner Water Piping, Plumbing
52
53
54
55
56
Assemblage of D-32 mm pn25 pipes
Assemblage of D-20 mm pn25 pipes
Angle bar D-32 mm
Angle bar D-20 mm
T-junction D-32 mm
T-junction D-20 mm
Assemblage of D-32 mm valve
Assemblage of closet basins with a
reservoir
Closet basin
Closet basin gauffre
Flexible hosepipe
Angle valve
Insulating tape
Assemblage of wash basins together
with stands
Washbasin and stand
Fasteners
Assemblage of siphon
Mixing drainage
Angle valve
Insulating tape
Arrangement of Outer Sewerage
120
12
3
8
2
35,1
11,27
1,26
1
1,53
0,75
15,26
2
1,5
3
18
10,5
0,0
0,0
0,0
0,0
6
0,00
50
50,00
50,00
0,00
0,00
0,00
0,00
0,00
120,00
12,00
3,00
8,00
0,40
50,00
50,00
0,00
0,00
0,00
0,00
0,00
0,00
0
95,00
2,00
7,00
40,00
16,00
0,80
0
250,00
1200,00
200,00
60,00
0
47,60
200,00
60,00
0
120,00
12,00
3,00
8,00
0,40
0,00
57
Assemblage of D-150 mm pipes for
outer sewerage
lin.m.
50
19
950,00
pcs.
haul
m3
7
2
15
6,8
47,6
58
59
Muff angle branch
Loading and removal of extra ground
Ground backfilling with an excavator
Interior Sewage System
F.Giovannetti - Rev.4
50
5
100
4
0
118
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
Construction estimate for 1H-Code building
Materials
Unit
of
Qty
Unit
sum
meas.
price
No.
Work description
1
2
Assemblage of inner sewage system
D-100 mm plastic pipes, sizes 2m,
0,5m 0,3m
2-m plastic pipe D-100mm
1-m plastic pipe D-100 mm
0,5-m plastic pipe D-100 mm
T-junction 100X50X100
Coupling 100X50
Angle bar D-100 mm
60
61
62
63
Total
Unit
price
sum
6
7
8
9
0
3
43,5
43,5
3
4
lin.m.
14,5
lin.m.
lin.m.
lin.m.
pcs.
pcs.
pcs.
8
4
1,5
4
3
4
Assemblage of D-50 mm plastic pipes,
sizes: 1m, 0,5 m, 0,3m
lin.m.
10
1-m plastic pipe D-50mm
0,5-m plastic pipe D-50 mm
lin.m.
lin.m.
8
3
2,12
1,69
16,96
5,07
pcs.
6,00
2,5
15
0
15
0
36834,72
0
23750,14
0
60584,86
2578,43
63163,29
8481,88
69066,74
6906,67
75973,42
13675,22
89648,63
Fittings for D-50 mm sewerage plastic
pipes
Gas Supply
Total
Transport charges 7 %
Total
Overhead expenses 14 %
Total
Planned accumulation 10 %
Total
VAT 18 %
Total
Construction cost for 1m2
F.Giovannetti - Rev.4
800
800
5
Wage
3,81
4,24
1,69
2,54
14,41
2,12
30,48
16,96
2,535
10,16
43,23
8,48
30,48
16,96
2,535
10,16
43,23
8,48
2,5
25
25
16,96
5,07
Tbilisi – Rustavi Highway – Section 2 – LARP – 25 August, 2013
F.Giovannetti - Rev.4
119