Public Disclosure Authorized
Public Disclosure Authorized
Kakheti Regional Development Program
Kvareli Urban Regeneration
ABBREVIATED
RAP
Public Disclosure Authorized
Public Disclosure Authorized
RP1250 v3
March 20, 2012
Municipal Development Fund Georgia
1
CURRENCY EQUIVALENTS
(as of 16 march 2012)
Currency Unit
–
lari (GEL)
$1.00
=
GEL1.65
ABBREVIATIONS
ACS
–
Acquisition and compensation Scheme
AB
–
Affected Business
AH
–
Affected Household
AP
–
Affected Person
CBO
–
Community Based Organization
CSC
–
Construction Supervision Consultant
DMS
–
Detailed Measurement Survey
EPARD
–
Environment Protecction Analysis and Resettlment Division
GoG
–
Government of Georgia
GRC
–
Grievance Redress Committee
IA
–
Iimplementing Agency
IFI
-
International Financial Institution
IP
–
Indigenous Peoples
EMA
–
External Monitoring Agency
km
–
Kilometre
LARC
–
land acquisition and resettlement commitee
RAP
–
Resettlement Action Plan
MDF
–
Municipal Development Fund
RPF
–
Resettlement Policy Framework
M&E
–
Monitoring and Evaluation
MFF
–
Multitranche Financing Facility
2
MOF
–
Ministry of Finance
MPR
–
Monthly Progress Report
MRDI
–
Ministry of Regional Development and Infrastructure
NAPR
–
National Agency of Public Registry
NGO
–
Non-Governmental Organization
PEMI
–
Persons Experiencing Major Impact
PFR
–
Periodic Financing Request
PPR
–
Project Progress Report
PPTA
–
Project Preparatory Technical Assistance
R&R
–
Resettlement and Rehabilitation
RoW
–
Right of Way
SES
–
Socioeconomic Survey
3
Table Contenst
Executive Summary
8
1
Introduction
13
1.1
Project Background
13
1.2
Kvareli Subproject
13
1.3
Expected Impacts and Applicable Resettlement Instrument
14
1.4
Preparation of Abbreveiated RAP
15
1.5
Conditions for Project Implementation
15
2
Census and Impact Assessment
16
2.1
Introduction
16
2.2
Impact Assessment
16
2.2.1 Impact on land, Crops and Trees
16
2.2.2 Impact on Buildings and Relocation Needs and
16
2.2.3 Business Impacts and loss of incomes
16
2.2.4 Vulnerable Persons
18
2.2.5 Impact on Common Property Resources
18
3
Legal and policy Framework
19
3.1
General
19
3.2
Legal Framework
19
3.2.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement 19
3.2.2 WB’s Policy on Involuntary Resettlement
20
3.2.3 Comparison of Georgian Legislation on LAR and WB Resettlement 23
Policy
4
3.2.4 Resettlement Policy Commitments for the Project
23
3.2.5 Compensation Eligibility and Entitlements Eligibility
22
4
4.1
Institutional Arrangement
Introduction
25
25
4.1.1 Kvareli Municipality
25
4.1.2 Municipality Registration Office
26
4.2
Other Organizations and Agencies
26
4.2.1 Civil Works Contractor
26
4.2.2 Court of Georgia
26
4.2.3 Ministry of Finance
26
4.2.4 Ministry of Justice
26
4.2.5 The World Bank
26
5
Consultation and Participation
26
5.1
Introduction
26
5.2
Summary of Consultation during SECHSA Study
27
5.3
6
6.1
Consultation meetings with the APs during RAP Preparation and
Disclosure of Draft Abbreviated RAP
Grievance Redress Mechanism
Objectives
28
31
31
6.2
Grievance Resolution Process
32
6.3
Formation of GRC
32
7
Implementation Schedule
33
8
Costs And Financing
33
8.1
Compensation for Business Interruption
33
5
8.2
Summary LAR Cost and Flow of Funds
33
9
Monitoring and Reporting
34
9.1
Introduction
34
9.2
Monitoring and Evaluation Indicators
34
9.3
Level of Monitoring
34
6
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: Lump-sum Payment 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.
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.
Affected People (AP): Individuals affected by Project-related impacts.
Affected Household (AH): All members of a household residing under one roof and
operating as a single economic unit, who are adversely affected by the Project. It may
consist of a single nuclear family or an extended family group.
Affected Business(AB): Businesses affected by Project-related impacts.
Relocation: The physical temporary relocation of a AP/AH/AB from her/his pre-Project place
of residence.
Relocation Cost: The value determined to be fair compensation for land based on its
productive potential and location.. The replacement cost of houses and structures (current
fair market price of building materials and labour without depreciation or deductions for
salvaged building material), and the market value of residential land, crops, trees, and other
commodities.
Mitigation Measures: 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.
Sakrebulo: Representative body of local self-government. The representative and executive
branches of self-government are represented accordingly by Local Council (Sakrebulo) and
the Gamgebeli of municipal level. The exclusive responsibilities of self-government include
land-use and territorial planning, zoning, construction permits and supervision, housing, and
communal infrastructure development.
7
Executive Summary
The main objective of implementation of RAP is to improve or at least restore the social and
livelihood resources of the APs at their pre-project level. The process of implementation
should ensure that this objective is achieved over a reasonable time with allocated
resources. Therefore, monitoring of the process of RAP implementation and delivery of
institutional and financial assistance to the APs has been designed as an integral part of the
overall functioning and management of the Project.
The Government of Georgia has asked the World Bank to support financing of regional
development project in Kakheti region. The proposed program of interventions will
emphasize tourism and agriculture as two key pillars and drivers of economic growth. The
proposed initial project will focus on support for the tourism sector and enabling the
environment for the private sector to invest in Kakheti.
Kvareli, one of the most beautiful cities of Georgia, has a rich history. It is located in 160 km
from Tbilisi. Records and archeological findings demonstrate the existence of considerable
dwellings on that territory.
One of the components of Kvareli subproject is restoration of buildings in the central part of
the town. Conservation-restoration designs have been developed for following buildings in
selected areas:
– restoration of Kvareli Castle;
– rehabilitation of Local Government building;
– restoration of façade of administrative building (Chavchavadze str. N87);
– restoration of fences and gates on Chavchavadze and Kudigora Streets
Expected Impacts and Applicable Resettlement Instrument
The zone of rehabiltiation is located on two central streets of Kvareli, in particular: Kudigora
and Chavchavadze Streets. Physical work will take place in a total of 71 buildings, out of
which three are non-residential. These include two administrative buildings and the Kvareli
Castle. The remaining 68 residential buildings are resided by 71 households and occupied by
33 businesses, majority of which are of small size.
The project does not involve any permanent resettlement or physical relocation of affected
households or businesses; only temporary disruptions to businesses are anticipated. No
temporary relocation of households is anticipated at this stage To mitigate any negative
impacts on houselholds and business welfare, this Abbreviated RAP was prepared in
accordance to the WB OP/BP 4.12 and the RPF approved for the KRDP.
Consultations were conducted with population living in planned project area. During the
consultations it was revealed that in case temporary relocation of businesses or households
are required for unforeseen reasons, none of households or businesses prefers to be
relocated to temporary accommodation facilitated by the project. All ABs agreed to take
8
lump-sum compensation and continue to pay regular salaries to their employees. Before the
launch of construction activities the information boards with contact requisites and addresses
will be arranged in all business offices according to which employees will have information to
whom to address in case of violation of their rights. The committee is entitled to consider all
complaints and to have the final decision within 7 days.
Based on the type of works for Buildings Restoration envisaged under Kakheti Regional
Development Project, buildings are categorized into three types:
 Category I - Residents/users of buildings will not require temporary relocation;
 Category II Residents/users of buildings will be given the option to relocate
temporarily;
 Category III - Residents/users of buildings would be required to relocate
temporarily.
The following 20 criteria are used to define the category of the buildings:
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
description of Works
Finishing of facade
Installation of doors/windows
Arrangement of balconies
Strengthening of foundations and retaining walls outside the building
Strengthening of foundation in basement (in non-residential area)
Arrangement of seismic belt in attic
Replacement of roof covering
Partial replacement of roof structures
Rehabilitation of fences and gates
Strengthening of foundations and retaining walls inside the building
Partial re-arrangement of load-bearing walls
Complete replacement of roof structures
arrangement of new floor (storey)
arrangement of attic
Arrangement of balcony and stairs, when access to the building is limited
Extension and strengthening of openings
Arrangement of new reinforced-concrete floor covering
Arrangement of seismic belt at floor covering level
Complete re-arrangement of walls
complete demolition of building
Buildings that only involve works under items 1-9 belong to category I.
Buildings that involve any of the works under items 10-16, but not 17-20 belong to category II
Buildings that involve any of the works under items 17-20 belong to category III.
All 71 households and 33 businesses occupying the buildings subject to physical work are in
category I.
Affected Households
Overall, all of the 71 households residing in the 68 buildings are in category I, and will not be
affected for the duration of the project related civil works. In the process of rehabilitation
9
impact on the househols residing at the above mentioned buildings will be minimal, whereas
all above mentioned households have some benefit due to the project implementation.
The complete list of the 71 households is found in Annex 1
Business Impacts and loss of profit
There are 33 businesses operating in the 68 buildings subject to physical work, which may
experience loss of profit due to reduced number of customers during restoration work. This
loss is estimated to be less than 20%. Businesses in buildings subject to physical work will
be compensated for expected 20% decline of profit during 3 months (see Annex 1). Based
on survey data, none of businesses will be requierd to close during construction work.
Compensation amount, which was calculated as 20% of profit was established with close
consultations with business owners. All business owners assured that they are not going to
decrease the amount of salaries to employees, and that they are not going to give temporary
leave to them. These provisions on the compensation for 20% loss of profit and the
continued payment of salaries to employees will be reflected in letters of agreement, which
will be signed by business owners prior to the transfer of compensation funds. No
construction work will commence on a building until (a) the letters of agreement are signed
by the owners of businesses operating in the building and (b) compensation is paid to them.
If business owners incur loss of profit greater than 20% during the period of disruption and
can demonstrate it with verifiable proof, they would be able to request additional
compensation through the grievance redress mechanism described in the RAP.
Vulnerable Project Affected People
No vulnerable housholds will be affected by this subproject. Although there are 10
vulnerable households (all under poverty line) residing in the 68 buildings where physical
work will take place, since they are in Category I buildings where temporary relocation is not
required, they are not considered as AHs. , ..
Costs and Financing
The 33 owners of the temporarily affected businesses are eligible for compensation of
business profit losses corresponding to the period of business interruption. The losses are
valuated based on tax declaration, or in case of abscense of such proof, based on minimum
subsitence income for the households consisting of 5 persons. Amount of business
employees affected by the project is 0. All employees will be paid salaries uninterrupted.
Compensation for expected losses due to decline of business activities (20% of net monthly
profit multiplied on 3 months) for 33 businesses constitutes 5,818.00 GEL.
In case the duration of business disruptions lasts longer than anticipated the contingency
funds will be available to cover additional compensation costs. Contingency funds will be
sufficient for additional three month. If business owners incur loss of profit greater than 20%
during the period of disruption and can demonstrate it with verifiable proof, they would be
able to request additional compensation through the grievance redress mechanism described
in the RAP, which will be covered by the contingency fund. In case the category of buildings
would be changed to category II or III in the future for unforeseen reasons, the additional cost
of compensation and allowance related to these changes would also be covered by the
contingency fund.
10
Summary LAR Cost and Flow of Funds
The table below summarizes the types and amounts of compensation and allowance to be
awarded to the project affected households and businesses. In addition to the total amount
stated in the table, contingency funds of 5,818.00 GEL (equivalent to the compensation cost
of affected businesses) will be made available. The Government has agreed to make these
compensations in lump-sum.
11
Compensation Entitlement Matrix
Affected Households (AHs): Occupants (including owners and renters) residing in buildings subject to
physical work
Building Category
Compensation Measure
Number of Households
Total
Compensatio
n Cost
None
GEL 0
0
Lump-sum compensation equivalent to 3
months of rental cost plus
GEL 200 relocation cost
GEL 0
Category III: Inhabitants require
temporary relocation. Works
considerably restrict living
conditions of the inhabitants and
infringes sanitary standards. Safety
of the inhabitants may not be
secured.
0
Lump-sum compensation equivalent to 6
months of rental cost plus GEL 200
relocation cost
GEL 0
Subtotal
0
Category I (0 AHs):
No relocation required. Works
cause no considerable restriction of
living conditions of inhabitants,
discomfort or infringement of
sanitary standards. No impact on
safety of population.
Category II: Temporary relocation
of inhabitants may be needed.
Works restrict living conditions of
the inhabitants to an extent.
Infringement of sanitary standards is
expected in certain cases. Possible
impact on safety of population.
71 (not counted as AHs)
GEL 0
Affected Businesses (ABs): Owners of businesses operating in the buildings subject to physical work
Building Category
Category I
Number of Affected
Businesses
33
Category II
0
Category III
0
Compensation Measure
Lump-sum compensation for 20% monthly
profit based on tax declaration x 3 months
Lump-sum compensation for 20% monthly
profit based on tax declaration x 3 months
Lump-sum compensation for 20% monthly
profit based on tax declaration x 6 months
Subtotal
33
Vulnerable People: Households living below the poverty line residing in the buildings subject to physical work
Building Category
Category I (Not Affected)
Number of Vulnerable
Households
10 (Not considered as Ahs)
Allowance
None
Total
Compensation
Cost
GEL 5,818
GEL 0
GEL 0
GEL 5,818
Total
Compensation
Cost
GEL 0
Category II
0
Allowance of GEL 313 (minimum subsistence
cost of 1 month) per Vulnerable Households
GEL 0
Category III
0
GEL 0
Subtotal
0
Allowance of GEL 313 (minimum subsistence
cost of 1 month) per Vulnerable Households
Allowance
GEL 0
Grand Total
Grand total
GEL 5,818
12
1. INTRODUCTION
1.1
Project Background
Following four years of rapid growth, backed by far-reaching reforms and strong financial
investment inflows, Georgia experienced a sharp economic downturn resulting from the
August 2008 conflict and the global financial crisis. Economic recovery is underway, with
growth of an estimated 6.3 percent in 2010. The authorities responded to the downturn with a
countercyclical fiscal stimulus coupled with a marked reallocation of public expenditures
toward social and infrastructure investments. As economic recovery takes hold, driven by
higher exports and private investment, the authorities are winding down the stimulus and
implementing fiscal adjustment to safeguard sustainability. There is, however, uncertainty
regarding the pace of economic recovery. Georgia will need to refinance a public debt
amortization spike in 2013. The authorities are addressing these vulnerabilities through well
designed fiscal, monetary and debt management policies. Infrastructure projects are
considered by the Government as part of the physical stimulus package.
The Government refocused efforts in the past six years by launching several initiatives to
attract private investors in selected regions (Tbilisi, Adjara, and Imereti) on various sectors.
Georgia, however, has not yet fully tapped its potential to promote sustainable tourism in
promising regions, such as Kakheti, or transform the rural economy through investment in
agriculture supply chains for both export and import substitution. There is also a need for
skills development in order to provide the skilled labor needed for a growing economy and
increased productivity.
The Government of Georgia has asked the World Bank to support regional development in
Kakheti by applying a vertical programmatic approach. The proposed program of
interventions will emphasize tourism and agriculture as two key pillars and drivers of
economic growth. The proposed initial project will focus on support for the tourism sector and
enabling the environment for the private sector to invest in Kakheti.
Proposed Kakheti Regional Development Program consists of 2 major components:
–
–
Component 1: Infrastructure Investment
Component 2: Institutional Development
Provision of financial resources to local self-governments (LSGs), in particular, comprises
Investment Subprojects for Urban regeneration: Integrated approach to urban transformation
of Telavi, Kvareli and Dartlo (as a heritage village)
1.2
Kvareli Subproject
Kvareli is one of the most beautiful cities of Georgia, Kakheti region, in 160 km from Tbilisi
that has a rich history. Records and archeological findings demonstrate the existence of
considerable dwellings on that territory.
Components for Kvareli subproject include:


Rehabilitation of Roads in Kvareli streets (Central Part of Kvareli Town) ;
Rehabilitation Outdoor Lighting in Kvareli streets (Central Part of Kvareli Town);
13



Rehabilitation of Underground Utilities in Kvareli streets (Central Part of Kvareli
Town);
Urban Regeneration Works in Kvareli Streets (Central Part of Kvareli Town);
Conservation/restoration of selected historical buildings.
For restoration of buildings in the central part of the town Kvareli, conservation-restoration
designs have been developed for following buildings in selected areas:
– restoration of Kvareli Castle;
– rehabilitation of Local Government building;
– restoration of façade of administrative building (Chavchavadze str. N87);
– restoration of fences and gates on Chavchavadze and Kudigora Streets
1.3 Expected Impacts and Applicable Resettlement Instrument
The project is designed to exclude any permanent resettlement impact and physical
relocation of affected households and businesses. Longterm social impact of the project is
beneficial, as the sanitation conditions in appartment buildings will be improved and
appearance and the real estate value of the rehabilitated buildings enhanced. There are 33
legal persons (businesses) and 71 households (physical persons) occupying the buildings
subject to physical work. The rehabilitation of certain part of buildings (which is limited to
fences and gates) will not require temporary relocation of the residents for the duration of the
rehabilitation works but may cause interruption of business activities of the commercial
structures located in these buildings.
According to the WB OP/BP 4.12 and the RPF approved for the KRDP, preparation of
Abbreviated RAP is required . An abbreviated plan covers the following minimum elements:
(a) A census survey of affected persons, assets, and their anticipated loss of
income;
(b) Institutional responsibility for implementation and procedures for grievance
redress;
(c) Arrangements for monitoring and implementation; and
(d) A timetable and budget.
For the purpose of preparing the Abbreviated RAP, buildings subject to physical work have
been categorised in the following way:
(a) Residents/users of Category I buildings will not require temporary relocation;
(b) Residents/users of Category II will be given the option to relocate temporarily;
(c) Residents/users of Category III would be required to relocate temporarily.
The following 20 criteria are used to define the category of the buildings:
Table 1.1
#
description of Works
1
2
3
4
Finishing of facade
Installation of doors/windows
Arrangement of balconies
Strengthening of foundations and retaining walls outside the building
14
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Strengthening of foundation in basement (in non-residential area)
Arrangement of seismic belt in attic
Replacement of roof covering
Partial replacement of roof structures
Rehabilitation of fences and gates
Strengthening of foundations and retaining walls inside the building
Partial re-arrangement of load-bearing walls
Complete replacement of roof structures
arrangement of new floor (storey)
arrangement of attic
Arrangement of balcony and stairs, when access to the building is limited
Extension and strengthening of openings
Arrangement of new reinforced-concrete floor covering
Arrangement of seismic belt at floor covering level
Complete re-arrangement of walls
complete demolition of building
Buildings that only involve works under items 1-9 belong to category I.
Buildings that involve any of the works under items 10-16, but not 17-20 belong to category
II.
Buildings that involve any of the works under items 17-20 belong to category III.
According to elaborated categorization all residential buildings belong to I category. In the
process of rehabilitation impact on the househols will be minimal and none of them will be
subject to temporal relocation. All above mentioned househols will have some benefit that
will be reflected in rehabilitation of their buildings (fences and facades).
1.4
Preparation of Abbreveiated RAP
1.
This RAP has been prepared as a condition to contract award signing. The document
complies with relevant Georgian laws and provisions of the WB OP 4.12 on Involuntary
Resettlement, as well as the updated version of the Resettlement Policy Framework
developed by MDF in 2011 for the “Kakheti RDP”. RAP preparation entailed survey and
consultations: (i) a detailed census of affected households and commercial entities (ii)
description of project related resettlement impacts, valuation of temporary losses and
estimation of required compensations and rehabilitation allowances and measures (iii)
Intensive consultations with all affected households, businesses and other stakeholders were
conducted during the process. The survey and consultation activities have been carried out
in February 2012.
1.5
Conditions for Project Implementation
2.
Based on the WB policy/practice, the approval of project implementation will be based
on the following RAP-related conditions:
(i)
Signing of Contract Award: Conditional to the approval of the RAP by WB
and Government.
15
(ii)
Notice to Proceed to Contractors: Conditional to the implementation of RAP
for the buildings of category I buildings were not a business structures, as well
as rehabilitation of streets and undeground utilities could be strated upon the
approval of the present Abbreviated RAP.
2. CENSUS AND IMPACT ASSESSMENT
2.1
Introduction
Based on the project information and with assistance of Kvareli municipality 100% Census
were undertaken. These surveys were conducted started on Feabruary 24, 2012 and was
terminated on Feabruary 29, 2012. The start date of the census survey is considered as the
compensation eligibility cut-off date for the project which is therefore February 24, 2012.
2.2
Impact Assessment
2.2.1 Impact on land, Crops and Trees
The project does not envisage any permanent or long term acquisition of private land plots
owned by physical or legal persons. The residential buildings have adjacent private land
plots. However, these land plots are not occupied even for temporary needs and the trees
growing on these land plots are not affected. The land plots adjacent to the residential
houses constitute small yards of the appartment houses and none of the mentioned land
plots will be affected, nor are they used for crop cultivation.
Therefore, the project is not associated with losses of residential or agricultural land plots,
trees or crops. Accordingly no compensations for the land, trees or crops are included in
current RAP.
2.2.2 Impact on Buildings and Relocation Needs and Strategy
The zone of rehabiltiation is located on two central streets of Kvareli, in particular: Kudigora
and Chavchavadze Streets. Phsyial work will take place in a total of 71 buildings, out of
which three are non-residential. These include two administrative buildings and the Kvareli
Castle. The remaining 68 residential buildings are resided by 71 households and occupied by
33 businesses, majority of which are of small size.
All Buldings in the project area belong to category I, and there will be no temporary or
permanent relocation of households or businesses. Works cause no considerable restriction
of living conditions of inhabitants, discomfort or infringement of sanitary standards, and the
safety of population will not be impacted. None of the 71 households residing in these
buildings are considered as affected households.
2.2.3 Business Impacts and loss of incomes
Longterm social impact of the project on businesses is beneficial, as the project will reslult in
increased flow of tourists, general economical growth in the region and this will have indirect
positive effect on the businesses (shops, cafes and other service providers), which are
located in the buildings subject to physical work. However, the 33 businesses operating in
the buildings subject to physical work could experience negative impacts in a short term,
16
entailing temporary interruption of business activity due to the disturbance (noise, dust,
emissions), limitation of access and safety risks related to the construction activities.
Based on survey data, none of businesses will need to be closed during construction
activities. The businnesses may have some partial losses in profits related to the decline of
business activities. However, this loss is estimated to be less than 20%. All 33 businesses in
buildings subject to physical work will be compensated for expected 20% decline of profits
during 3 months (see Annex 1).
Compensation amount, which was calculated as 20% of profit was established with close
consultations with business owners. All business owners assured that they are not going to
decrease the amount of salaries to employees, and that they are not going to give temporary
leave to them. These provisions on the compensation for 20% loss of profit and the
continued payment of salaries to employees will be reflected in letters of agreement, which
will be signed by business owners prior to the transfer of compensation funds. No
construction work will commence on a building until (a) the letters of agreement are signed
by the owners of businesses operating in the building and (b) compensation is paid to them.
If business owners incur loss of profit greater than 20% during the period of disruption and
can demonstrate it with verifiable proof, they would be able to request additional
compensation through the grievance redress mechanism described in the RAP.
Before the launch of construction activities the information billboards with contact requisites
and addresses will be arranged in all business offices according to which employees will
have information to whom to address in case of violation of their rights. The committee is
entitled to consider all complaints and to have the final decision within 7 day period.
The composition of the affected businesses are summarized in the table below:
Table 2.1
Affected Businesses (ABs): Owners of businesses operating in the buildings subject to
physical work
Building Category
Number of Compensation Measure
Affected
Businesses
Total
Compen
sation
Cost
Category I
33
GEL
5,818
Lump-sum compensation for 20%
monthly profit based on tax
declaration x 3 months
Category II
0
Category III
0
Total
number
businesses
of
affected
33
Lump-sum compensation
monthly profit based
declaration x 3 months
Lump-sum compensation
monthly profit based
declaration x 6 months
Total compensation amount
for 20%
on tax
for 20%
on tax
GEL 0
GEL 0
GEL
5,818
17
The 33 owners of the temporarily affected businesses are eligible for compensation of
business profit losses corresponding to the period of business interruption. The losses
should be evaluated based on tax declaration, or in case of absence of such proof, based on
minimum subsistence income for the households consisting of 5 persons.
2.2.4 Vulnerable Project Affected Persons
Affected households attributed to the group of vulnerable people (households below poverty
line, headed by woman, family member with a disability) are elgible for one time rehabilitation
allowance equal to 1 month of minimum subsidence income for a family of five. There are 10
vulnerable households (all under poverty line) residing in the buildings subject to physical
work, but since all of these 10 households are in Category I buildings, and are not
considered as AHs, there will be no households receiving this allowance.
2.2.5 Impact on Common Property Resources
In the long term, public infrastructure, such as water supply, sewage etc. will be improved.
Short-term interruption of the water supply may take place during the rehabilitation of the
water supply networks. The residents will be timely notified to enable water storage, as
usually done during the routine maintenance works. In unlikely case of long-term
interruption, bottled water will be provided to the affected households. PAPs have raised a
concern of increased utility fees as a result of these improvements; they were given
assurances that there will be no increase of taxes or fees related to this project and that no
increase of utility fees is envisaged.
18
3. LEGAL AND POLICY FRAMEWORK
The aforementioned impacts of this subproject are addressed through the measures stated in this
RAP, which were prepared in line with the legal and policy framework of the project as described in
this section.
3.1 General
1.
The legal and policy framework of the Project is based on national laws and
legislations related to Land Acquisition and Resettlement (LAR) in Georgia and the World
Bank Involuntary Resettlement Policy (OP/BP 4.12). Based on the analysis of applicable
laws and policies and Policy requirements of the mentioned IFIs, project related LAR
principles have been adopted.
3.2 Legal Framework
3.2.1 Georgia’s Laws and Regulations on Land Acquisition and Resettlement
2.
In Georgia, the legislative acts given below regulate the issues of obtaining State
ownership rights to privately owned land parcels based on the necessary public needs
caused due to constructions activities:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
The Constitution of Georgia, August 24, 1995
The Civil Code of Georgia, June 26, 1997
The Law of Georgia on Protection of Cultural Heritage, 2007
The Law of Georgia on Notary Actions, December 4 2009;
The Law of Georgia on Privatization of State-owned Agricultural Land, July 8,
2005
The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996
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 Public Register (No820 –IIs; December 19 of 2008;
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
3.
The existing Laws provide that compensation for lost assets, including land,
structures, trees and standing crops, should be based on the current market price without
depreciation. Overall the above laws/regulations provide that the principle of replacement
cost compensating at market value is reasonable and legally acceptable. The laws also
identify the types of damages eligible to compensation and indicate that compensation is to
be given both for loss of physical assets and for the loss of incomes. Finally, these laws
place strong emphasis on consultation and notification to ensure that the APs participate in
the process. Income loss due to loss of harvest and business closure will be compensated to
cover net loss. The above-listed laws and regulations give the possibility of applying the
following mechanisms for legal application of the property rights:
19
(i) Obtaining the right of way (servitude) without expropriation through the payment of
due compensation (on the basis of a contract of agreement or a court decision) prior
to commencement of the activities.
(ii) Expropriation which gives the possibility of obtaining permanent right to land and/or
other real estate property on the basis of Eminent Domain Law or a court decision
through the payment of due compensation.
Land will be acquired through eminent domain, first on the basis of negotiated settlement
with individual affected entities. Should the contract fails, the expropriation process under the
eminent domain will start. Under the existing Law in Georgia, the president will issue an
order for expropriation based on the request from relevant state agencies. Relevant regional
court will assess the presidential order and determine the case of public needs, and grant the
expropriation entity rights to obtain land. The court will also appoint a third party to assess
the market value of lost assets and determine the compensation payable to relevant land
owners accordingly to the value of assets thus found.
3.2.2 WB’s Policy on Involuntary Resettlement
All projects funded by the WB must comply with the WB social and environmental
safeguards.
The WB financed projects, in their turn, require compliance with the WB safeguards and
guidelines. WB BP/OP 4.12 Involuntary Resettlement is one of the most important
safeguards guiding land acquisition and related resettlement/compensation issues during
project implementation. In line with the principles of host-country responsibility, Georgia is
committed to implement the WB financed projects in compliance with the requirements of
WB BP/OP 4.12.
Generally, the Georgian legislation is compatible with the major provisions of the WB
Resettlement Policy but a few important differences are to be noted. The WB resettlement
policy is directed at improving (or at least restoring) incomes and living standards, rather than
merely compensating people for their expropriated assets. This improvement of incomes and
living standards broadens the objective of the policy to include the restoration of income
streams and retraining of people unable to continue their old income-generating activities
after displacement. The emphasis on incomes and living standards, in contrast to the
conventional emphasis on expropriated property, expands the range and number of people
recognized as adversely affected. Recognition of this broader range of adverse impacts
leads to a greater appreciation of the issues to be considered in resettlement and
consequently requires careful delineation of responsibilities, elaborate risk management and
explicit and distinct resettlement planning.
The WB policy complements the Georgian legislation/regulation with certain additional
requirements, which are mandatory for the WB financed projects. In particular, appropriate
planning/management instruments must be developed prior to project appraisal, like
Resettlement Policy Framework (RPF) and Resettlement Action Pan (RAP), as
appropriate.
Resettlement Policy Framework (RPF). A policy framework was prepared because the
extent and location of resettlement was not known at appraisal.. The policy framework
20
establishes resettlement objectives and principles, organizational arrangements, and funding
mechanisms for any resettlement operation that may be necessary during project
implementation. The framework also assesses the institutional capability to design,
implement, and oversee resettlement operations.
Resettlement Action Pan (RAP). This RAP was prepared in line with the OP4.12 and the
RPF. It is a location-specific action plan including preliminary studies (sociological survey,
census, valuation of impacts, and consultation with affected persons), a set of
compensation/mitigation measures for each affected person/household, and detailed
implementation plan with indication of responsible parties and schedule.
The WB Policy on Involuntary Resettlement, as defined in the OP/BP 4.12, is based on the
following principles:









Involuntary resettlement is to be avoided or at least minimized.
Compensation/Rehabilitation provisions provide affected persons with
opportunity to improve, or at least restore, pre-project incomes and living
standards.
Affected Persons should be fully informed and consulted on Land Acquisition
and Resettlement compensation options.
Affected Persons’ socio-cultural institutions should be supported/used as
much as possible.
Compensation will be paid at replacement cost to affected persons, without
deduction for depreciation or any other purpose.
Lack of legal title should not be a bar to compensation or alternative forms of
assistance as needed to achieve policy objectives.
Particular attention should be paid to households headed by women and other
vulnerable groups.
Land Acquisition and Resettlement 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.
21
Comparison of Georgian Legislation on LAR and WB Resettlement Policy
Generally the Georgian legislation is compatible with major provisions of the WB
Resettlement Policy but a few differences are to be noted. The most significant of these
differences is that under Georgian legislation/regulation, emphasis is put on the definition of
formal property rights and on how the acquisition of properties for public purposes is to be
implemented and compensated while in the case of WB policy emphasis is put both on the
compensation of rightfully owned affected assets and on the general rehabilitation of the
livelihood of the Project Affected People (PAP) and Households (AH). Also, in addition, the
legislation of Georgia does not require any specific planning/implementation instrument like
RPF or RAP based on extensive public consultations. The differences between the
legislation of Georgia and WB policy are outlined in Table 3.1 below.
Table 3.1: Comparison of Georgia Laws/Regulations on LAR and WB Resettlement Policy
Georgia Laws and Regulations
WB Involuntary Resettlement Policy
Land compensation only for titled landowners
Lack of title should not be a bar to compensation or
alternative forms of assistance. Non-titled
landowners may receive alternative forms of
assistance in lieu of formal compensation payments.
Only registered houses/buildings are compensated for
damages/demolition caused by a project
All affected houses/buildings are compensated for
the damages/demolition caused by a project
Crop losses compensation provided only to registered
landowners.
Crop losses compensation provided to landowners
and sharecrop/lease tenants whether registered or
not
Land valuation based on replacement cost: (i) current
market value where active land markets exist; (ii)
Reproduction cost of an identical plot where no active
land markets exist.
Land valuation based on replacement cost.
PAP the grievance should lodge the complaints at the
court.
Adequate grievance redress mechanism, which
consists of both formal and informal venues, should
be developed and made accessible to all PAP
No formal requirements to organize public consultation
to inform the PAP of the nature of the project and
expected impact
Information on quantification, affected items value
assets, entitlements, and compensation/financial
assistance amounts is to be disclosed to the APs
prior to appraisal.
No provision for income/livelihood rehabilitation,
allowances for severely affected or vulnerable APs, or
resettlement expenses.
Income loss, disturbance allowance, and expenses
incurred by the PAPs during the relocation process,
should be compensated.
3.2.3 Resettlement Policy Commitments for the Project
22
Considering the above-mentioned differences, WB policy 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 PAP expenses during the resettlement process and
covering the special needs of severely affected or vulnerable PAPs. Therefore, during
implementation of the Regional Development the MDF is committed to ensure that:
1. For each subproject that involves acquisition of private land, temporary or permanent
income loss, or other impact that triggers the OP 4.12, a Resettlement Action Plan
(RAP) will be developed in compliance with policies and procedures set out in this
RPF, the WB OP 4.12 and Georgian legislation.
2. Municipalities that propose subprojects to the MDF will be responsible for developing
the relevant RAP, and the MDF will provide technical support.
3. No civil work can start at the section where impacts that trigger OP 4.12 occur before
a RAP is deemed acceptable by the Bank and implemented.
4. No structural demolition that would cause physical relocation of households or
businesses is allowed under the Project.
5. The private sector investments to be supported under this project will not involve
involuntary resettlement or restriction of access to land or other natural resources,
including informal usage.
6. PAP will receive compensation or support of various kinds, without regard to the
status of land registration and ownership, in accordance with the entitlement matrix
included in this RPF and in compliance with the active legislation of Georgia and the
World Bank safeguard policy.
7. PAP will be informed about their rights and existing alternatives;
8. PAP will be consulted on, offered choices among, and provided with technically and
economically feasible resettlement alternatives.
9. PAP will be offered effective compensation at full replacement cost for losses of
assets;
10. PAP will be offered additional support in case impact is considered to be severe, to
support their livelihood during the transition period, based on a reasonable estimate
of the time likely to be needed to restore their livelihood and standards of living;
11. PAP will be provided with development assistance in addition to compensation
measures described, such as land preparation, credit facilities, training, or job
opportunities;
12. Special attention will be paid to the needs of the most vulnerable groups of the
population – children, women, the elderly, those below the poverty line, disabled,
refugees, etc.
13. A fair and accessible grievance redress mechanism will be developed.
14. Compensation measures are completed prior to start up of the particular construction
activities that trigger OP 4.12.
3.2.4 Compensation Eligibility and Entitlements
PAPs entitled for compensation or at least rehabilitation provisions under the Project are:
1. Residents of category III buildings who are required to relocate temporarily and those
of the category II buildings, who will be given the option to relocate temporarily.
2. Owners of the businesses located in the buildings of all three categories (Categories
I-III);
3. Vulnerable households (women headed, under the poverty line, family member with
disability) living in buildings subject to physical work of categories II and III.
23
Compensation eligibility will be limited by a cut-off date, which was February 24, 2012 for this
subproject. Persons who have settled in the affected areas after this locally publicized cut-off
date will not be considered project-affected, and persons initiating improvements to land or
structures after a locally publicized cut-off date will not be eligible for additional
compensation. They, however, will be given sufficient advance notice prior to project
implementation.
Assessment of Compensation Unit Values for Affected Households
Since all of the 71 households residing in the buildings subject to physical work are in
building category I and do not require temporary relocation, none of them are considered as
affected households; therefore, there will be no compensation for households under this
subproject.
In case unforeseen changes in the project design or circumstances require the category of
these buildings to change to category II or III, households residing in those buildings would
be compensated as follows: households residing in category II buildings will be entitled to a
lump-sum compensation equivalent to three months of rental costs plus a transportation cost
of GEL 200; affected households residing in category III buildings are entitled to a lump-sum
compensation equivalent to six months of rental costs plus a transportation cost of GEL 200.
Monthly rental costs are estimated on the basis of family size as follows and according to the
local market survey:
1. Group I: one and two-person households – 2-room apartments;
2. Group II: three and four-person households – 3-room apartments;
3. Group III: five and six- person households – 4-room apartments;
4. Group IV: seven and more -person households – 2-storey apartments.
Assessment of Compensation Unit Values for Affected Businesses
The 33 owners of the temporarily affected businesses are eligible for compensation of
business profit losses corresponding to the period of business interruption. The losses
should be evaluated based on tax declaration, or in case of absence of such proof, based on
minimum subsistence income for the households consisting of 5 persons.
Compensation for expected losses due to decline of business activities (20% of net monthly
profit multiplied by 3 months) for 33 businesses constitutes GEL 5,818.
The present RAP does not provide any compensation for employees working for affected
businesses, since the business owners have committed to continue paying full salaries to
their employees during the period of business disruption.
Allowances for Vulnerable People
No vulnerable housholds will be affected by this subproject. Although there are 10
vulnerable households (all under poverty line) residing in the 68 buildings where physical
work will take place, since they are in Category I buildings where temporary relocation is not
required, they are not considered as AHs.
24
In case any of these households would be affected by the subproject due to unforeseen
changes in the physical work, they would be entitled to receive an adjustment and transition
allowance equal to one month’s minimum subsistence along with priority access to project
related employment. Households are considered as vulnerable if they are registered as poor
in the local social services, headed by a woman, or have members with disabilities.
The above households will receive an allowance of 313 GEL x month x 1 months or 313 GEL
in all. These figures are taken from the National Statistics Office of Georgia Department data
on minimum subsistence income for a family of 5 persons in February 2012).
Compensation Entitlement Matrix
Tasks under the Project will be implemented according to a compensation eligibility and
entitlements framework in line with both Georgia laws and regulation, WB OP 4.12. A
summary entitlements matrix is included in Table 3.2 below.
Table 3.2 Compensation Entitlement Matrix
Affected Households (AHs): Occupants (including owners and renters) residing in buildings subject to physical work
Building Category
Compensation Measure
Number of Households
Total
Compensatio
n Cost
None
GEL 0
0
Lump-sum compensation equivalent to 3
months of rental cost plus
GEL 200 relocation cost
GEL 0
Category III: Inhabitants require
temporary relocation. Works
considerably restrict living
conditions of the inhabitants and
infringes sanitary standards. Safety
of the inhabitants may not be
secured.
0
Lump-sum compensation equivalent to 6
months of rental cost plus GEL 200
relocation cost
GEL 0
Subtotal
0
Category I (0 AHs):
No relocation required. Works
cause no considerable restriction of
living conditions of inhabitants,
discomfort or infringement of
sanitary standards. No impact on
safety of population.
Category II: Temporary relocation
of inhabitants may be needed.
Works restrict living conditions of
the inhabitants to an extent.
Infringement of sanitary standards is
expected in certain cases. Possible
impact on safety of population.
71 (not counted as AHs)
GEL 0
Affected Businesses (ABs): Owners of businesses operating in the buildings subject to physical work
Building Category
Category I
Number of Affected
Businesses
33
Category II
0
Category III
0
Compensation Measure
Lump-sum compensation for 20% monthly
profit based on tax declaration x 3 months
Lump-sum compensation for 20% monthly
profit based on tax declaration x 3 months
Lump-sum compensation for 20% monthly
profit based on tax declaration x 6 months
Subtotal
33
Vulnerable People: Households living below the poverty line residing in the buildings subject to physical work
Total
Compensation
Cost
GEL 5,818
GEL 0
GEL 0
GEL 5,818
25
Building Category
Category I (Not Affected)
Number of Vulnerable
Households
10 (not counted as AHs)
Allowance
None
Total
Compensation
Cost
GEL 0
Category II
0
Allowance of GEL 313 (minimum subsistence
cost of 1 month) per Vulnerable Households
GEL 0
Category III
0
GEL 0
Subtotal
0
Allowance of GEL 313 (minimum subsistence
cost of 1 month) per Vulnerable Households
Allowance
GEL 0
Grand Total
Grand total
GEL 5,818
4. INSTITUTIONAL ARRANGEMENTS
4.1
Introduction
The Municipal Development Fund of Georgia (MDF) is the executing agency (EA) of the
Project on behalf of the Government of Georgia. The World Bank (WB) will be financing the
Project for civil works construction and construction supervision. MDF is responsible for
construction as well as resettlement compensation of the APs affected due to project
construction. MDF has the lead responsibility for rehabilitation works, as well as
implementation of Abbreviated RAP with assistance from consultants.
MDF is assisted by a number of other government departments and private agencies in the
design, construction and operation of the Project.
4.1.1 Kvareli Municipality
The Kvareli Municipality has major role in supporting MDF in RAP implementation and will
participate in special Committee (RAP Implementation Unit) consisting of municipal officials,
heads of other relevant services of Municipalities, the Environment Protecction Analysis and
Resettlment, monitoring divission spesialist of MDF and and the lawyer of MDF etc. On a
basis of agreement with MDF management and the Committee, if necessary the structure of
the committee can be expanded on the account of the invitation of professionals of different
spheres in view of the specification of the concrete project.
Compensation/rehabilitation measures will be implemented as the civil works progress but
prior to the start of the construction on a particular section.
4.1.2 Municipality Registration Office
NAPR is in charge of the registration of property ownership and is helping MDF in
identification of the residents and owners of the 71 buildings subject to physical work.
4.2
Other Organizations and Agencies
4.2.1 Civil Works Contractor
26
A Civil Works Contractor to be contracted by the MDF to undertake the construction will be
responsible for mitigating impacts resulting from the construction activities. The construction
activities shall be monitored closely by the MDF to ensure compliance to the temporary
mitigating measures.
4.2.2 Court of Georgia
The Court of Georgia shall be the last resort for issues and concerns regarding the
implementation of the RAP. In case there is no agreement between the MDF and the APs
concerning the implementation of RAP, the court will grant the MDF with the mandate for
execution of works based on Georgian legislation.
4.2.3 Ministry of Finance
The budgets for the implementation of RAP will be provided to MDF by the Ministry of
Finance following its official approval.
4.2.4 Ministry of Justice
The Ministry of Justice is responsible for legal matters regarding land ownership, and
National Agency of Public Registry (NAPR) within the Ministry of Justice is in charge of the
registration of land ownership and its transfer through purchase agreement from landowners
to the MDF.
4.2.5 The World Bank
Besides supervising of the Project periodically, the WB will review Abbreviated RAP and
provide clearance to contract awards signing and initiation of civil works for
construction/rehabilitation.
5. CONSULTATION AND PARTICIPATION
5.1
Introduction
Consultation and participation is a process through which stakeholders influence and share
control over development initiatives, and the decisions and resources that affect them. It is a
two way process where the executing agencies, policy makers, beneficiaries and AP discuss
and share their concerns in a project process. Consultation and participation has been a
major principle in the planning and preparation of the detailed design of the Project. WB OP
4.12 gives high priority on public consultation and participation to enhance the community
voice and assure incorporation of community’s views in design and implementation of a
socially and environmentally compliant project. The Georgian laws also place strong
emphasis on consultation and notification to ensure that the AP participate in the process.
The focus of these consultations are to ensure that the AP and other stakeholders are
informed, educated, consulted and allowed to participate actively in the process of project
development and preparation of social and resettlement plan; reducing public resistance to
change; helping mitigate and minimize any probable negative impact and bringing in the
benefit of the project to the people. The project design and preparation of Resettlement
Action plans, therefore, attempted consultation and participation of the AP and communities
to incorporate their views, needs and aspirations into the Project components. People were
consulted during the prpeparation of RAP.
27
.
5.3
Consultation meetings with the APs during RAP Preparation and Disclosure of
Draft Abbreviated RAP
Individual consultations with the affected households and businesses have been
conducted during January/February 2012.
Disclosure
Electronic version of the Abbreviated RAP will be disclosed on MDF web-site and the World
Bank’s Infoshop. The RAP is translated into local language (Georgian) and is disclosed to
APs at local level. The copy of the RAP (Georgian version) is available at the Kvareli
Municipality.
Public Consultations February 28, 2012
Preface: Municipal Development Fund of Georgia will manage elaboration and
implementation of the projects envisaged under Kakheti’s Regional Development Program in
coordination with other state organizations of Georgia. The program aims at rehabilitating
infrastructure that is essential for development of tourism in Kakheti region and conservingrestoring historic buildings-structures and monuments of cultural heritage. The project in
particular envisages renewal, restoration of the facades for the buildings that are located at
several central streets of Telavi and Kvareli Towns and rehabilitation of urban infrastructure of
the town.
Under the program was implemented the sub-project–Kvareli urban regeneration component
what for the Municipal Development Fund has elaborated the Resettlement Action Plan which
reflects possible resettlement issues concerning rehabilitation works that are to be conducted in
Kvareli – possible temporal impact on the households residing at the houses to be rehabilitated.
On 28th of February, 2012 the meeting with the populating residing at rehabilitative buildings
was conducted at Kvareli Municipality Building. At the meeting was held the presentations for
the above mentioned resettlement document and general project. Special attention was paid to
the project description and depicting of impact on each building, evaluation of temporal
problems and discomfort in the project implementation process and introduction of the WB’s
resettlement principles.
At the meeting the presentation for the project was provided by the representatives of the
Municipal Development Fund. Environmental and Social Expert of MDF Nino Patarashvili
delivered a speech regarding resettlement principles and possible options of compensation.
The presentation was followed with the discussion. Attitude of the population toward the
project was positive however there were raised some considerable issues regarding the
problems that could have place during rehabilitation of existing infrastructure and residing
28
houses as well as after the rehabilitation process.
The list of the attendees and questions/replies are provided in the attached table:
The meeting was attended by 32 residents (the minutes of the meeting is available).
Following representatives of local government were presented:
Mr Gia Tsintsadze –Deputy Head of Gamgebeli
irakli loliashvili - Deputy Head of Gamgebeli, tel: 577 95 50 25
giga TsiTsriashvili - Head of Administrative Service, tel: 577 79 32 32
koka Philishvili - Chief specialistof Public Relations of Administrative Service , tel: 577 95 53
83
levan kokorashvili – Rwmunebuli ofTown Kvareli, tel: 577 95 50 36
Tamaz Gugoshvili – Chairman of infrastructure Development comiision of Sakrebulo, tel: 577
95 17 27
Municipal Fund of Georgia was presented by:
Tengiz Aleksishvili – Chief specialist of Monitoring Department, MDF
Nino Patarashvili – Environment Protecction Analysis and Resettlment Division Chief
Specialist, MDF
NGOs:
Zaza Davitidze – “Youth Centre 2011”, member of Gamgeoba, tel: 593 57 54 64
levan Zandarashvili - “Youth Centre 2011”, member of Gamgeoba, tel: 577 97 96 23
Deputy Head of Gamgebeli – Mr Cia Tsintsadze has opened the meeting and Nino
Patarashvili – Environmental and Social Specialist, MDF has presented the Abbreviated
RAP. Discussions took place after completion of the presentation. The questions and
answers are given in the table below:
#
1.
Question/Comment
Will replacement of the
fences of our houses on
the site of the yard cause
cutting of the fruit trees
in the vicinity of the
fence
2
Will the water tariff be
increased after
completion of
rehabilitation works
Author
Expert’s Comment
Cutting of the fruit or other kind of
trees is not envisaged under the
project. If during the project
implementation the tree is damaged
accidentally, project will reimburse
the damage.
The project does not envisage
possibility of water tariff increasing.
29
3
We have signed the
agreement on project
implementation but is it
possible the project to be
changed during the
project implementation
in a way that will cause
our resettlement from
our houses
Project changing is inadmissible. If
the decision on widening of
rehabilitation works is made, for
example changing of the facades of
residential houses and replacement of
the roofs and it is considered as the
new project then the author of the
project will be obliged to conduct the
project consideration again and to
conclude the memorandum on mutual
agreement with each inhabitant.
4
The project envisages
replacement of facades
at only central street of
Kvareli, but is not it
envisaged the similar
activity to be
implemented on other
streets as well
Unfortunately such activity is not
envisaged under this project.
5
Regarding replacement
of fences we are
interested if we are able
to have such fences as
we like
No, design and material of fences are
proved under the project and its
changing on personal basis is not
possible
6
Is it possible the
population of Kvareli to
be employed during the
project implementation
If your qualification is sufficient, you
as the locals will have the privilege
than the ones with the similar
qualification. Contractor is also
assigned to employ the locals.
6. GRIEVANCE REDRESS MECHANISM
6.1 Objectives
A grievance mechanism will be established to allow a AP appealing any disagreeable
decision, practice or activity arising from land or other assets compensation. 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 grievances rather than going through a redress process. This can be done through
careful LAR design and implementation, by ensuring full participation and consultation with
the APs, and by establishing extensive communication and coordination between the
affected communities, the MDF, and local governments in general.
30
6.2 Grievance Resolution Process






PAPs dissatisfied with compensation or other resettlement assistance at any stage of
the process can complain directly to Environment Protecction Analysis and Resettlment
Division Head of MDF – Aleksander Dumbadze and Deputy Head of Gamgebeli – Mr
Gia Tsintsadze on a local phone number – 577 78 11 00. In order to resolve grievances
within maximum 3 days. Email address, postal address, and SMS service will be
available for this purpose. .
If the PAP is not satisfied with the solution provided by the environment and social
specialist, then the established Grievance Committee can be called upon to hear the
case of the PAP. The committee should have its findings completed within seven days of
the complaint being lodged.
At any point an independent valuation or assessment of the value of the asset to be
acquired can be conducted in order to support the grievance redress process.
At any point, the PAP is entitled to go to court in order to resolve the grievance.
PAPs will be made aware of their rights under the grievance redress mechanism and
Georgian law as soon as it is clear that they will be affected.
If during the process of rehabilitation residing at the building is impossible due to
unforeseen incident (demolishing or cracking of the wall) or risk of such, the Committee
should immediately provide the resident with the relevant compensation specified by
RAP.
6.3 Formation of GRC
A Grievance Redress Committee (GRC) has been established at the Kvareli Municipality
Level and will include :
(i) Representatives of MDF
: Alexandre Dumbadze (Head
of Environment Protecction
: Analysis and Resettlment
Division of MDF);
Baka Alavidze – Chief
Specialist
of
Monitoring
Division of MDF;
Anzor Andguladze - Chief
Specialist of Project Analysis
Division of MDF;
Irakli Javakhia – Loyer of
MDF
(ii) Representative Kvareli Municipality
(iii) Representative of Sakrebulo
Deputy Head of Gamgebeli
– Mr Cia Tsintsadze
: Tamaz
Gugoshvili
Chairman of Infrastructure
Development comiision of
Sakrebulo
31
(iv) Representative of APs
: Zaza Tsiklauri (Cholokashvili
st # 20)
(v) Representative local NGO
: Zaza Davitidze
7. IMPLEMENTATION SCHEDULE
Compensations for expected partial losses of businesses will be paid in March.
8. COSTS AND FINANCING
8.1. Compensation for Business Interruption
Compensation for expected losses due to decline of business activities (20% of net monthly
profit multiplied by 3 months) for 33 businesses constitutes 5,818 GEL
In case the duration of business disruptions lasts longer than anticipated, the contingency
funds will be available to cover additional compensation costs. Contingency funds will be
sufficient for additional three month. If business owners incur loss of profit greater than 20%
during the period of disruption and can demonstrate it with verifiable proof, they would be
able to request additional compensation through the grievance redress mechanism
described in the RAP, which would be financed by the contingency fund. In case the
category of buildings would be changed to category II or III in the future for unforeseen
reasons, the additional cost of compensation and allowance related to these changes would
also be covered by the contingency fund.
8.2. Summary LAR Cost and Flow of Funds
ITEMS
COSTS
Compensation Relocation Expenses
Additional
sources
(contingency fund) for
next three months
GEL 0.00
GEL 5,818
GEL 5,818
Compensation for Business Losses
GEL 0
Allowances for Vulnerable People
Total
GEL 5,818
SUB TOTAL
GEL 5,818
GEL 11,636
9. MONITORING AND REPORTING
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9.1 Introduction
The main objective of implementation of RAP is to improve or at least restore the
social and livelihood resources of the APs at their pre-project level. The process
of implementation should ensure that this objective is achieved over a reasonable
time with allocated resources. Therefore, monitoring of the process of RAP
implementation and delivery of institutional and financial assistance to the APs
has been designed as an integral part of the overall functioning and management
of the Project.
9.2 Monitoring and Evaluation Indicators
Compliance of the RAP policy and targets in the implementation process will be
monitored against set indicators. These indicators and benchmarks will be judged
for implementation process, outcomes and impacts.
Output level indicators:
a) All 33 businesses are paid for expected decline of the business activity;
b) All common use utilities and infrastracture damaged during the project
implementation are restored
c) All AHs are fully compensated for temporary relocation costs (this
indicator applies only if cases arise due to unforeseen reasons)
Outcome level indicators:
a) Percentage of affected businesses whose monthly profit (including compensation
during the period of disruptions) has not declined since the commencement of the
project (to be monitored during periods of disruption and after completion of project
work);
b) Percentage of affected households satisfied with the conditions of housing
and livelihood during temporary relocation (this indicator applies only if
cases arise due to unforeseen reasons);
c) Percentage of affected households satisfied with the conditions of housing
and livelihood after return to rehabilitated buildings (this indicator applies
only if cases arise due to unforeseen reasons).
9.3 Level of Monitoring
Internal monitoring is executed by MDF with involvement of the Construction
Supervising Company (CSC).
External Monitoring:
appropriate consultant.
WB may execute external monitoring and involve
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