Land Acquisition and Resettlement Plan September 2019

UZB: Third CAREC Corridor 2 Karakalpakstan Road Project (A380 Kungrad to Daut-Ata Section) Prepared by State Committee of Roads of Uzbekistan, Republic of Uzbekistan for the Asian DevelopmentBank.

CURRENCY EQUIVALENTS

(as of 10 September 2019) Currency unit – Uzbekistan Som (UZS)

UZS 1.00 = $ 0.0001 $1.00 = UZS 9361.53

ABBREVIATIONS

ADB – Asian Development Bank BCP – Border Control Point CAREC – Central Asia Regional Economic Cooperation GCDP – Gender and Community Development Plan GRC – Grievance Redressal Committee FGD – Focus Group Discussion LARP – Land Acquisition and Resettlement Plan LMCRE – Land Management Control and Real Estate State

Enterprise PIU – Project implementation Unit PMU – Project Management Unit PRoW – Proposed Right of Way RoW – Right of Way SSO – Social Safeguards Officer SPS – Safeguard Policy Statement UZS – Uzbekistan Som (currency) WIM _ Weigh-in-Motion

NOTES

(i) The fiscal year (FY) of the Republic of Uzbekistan, its ministries and committees ends on 31 March. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 31 March 2020.

(ii) In this report, "$" refers to US dollars. This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS EXECUTIVE SUMMARY ............................................................................................................. i I. PROJECT DESCRIPTION .................................................................................................. 1

A. Background ..................................................................................................................... 1 B. Profile of the Subproject Area .......................................................................................... 1 C. Subproject Road Description ........................................................................................... 2 D. Subproject Impacts .......................................................................................................... 5 E. Minimizing Involuntary Resettlement ............................................................................... 7 F. Impact to Indigenous Peoples ......................................................................................... 7 G. Scope and Objective of Resettlement Plan ...................................................................... 7

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ................................................. 9 A. Introduction ..................................................................................................................... 9 B. Scope of Land Acquisition ............................................................................................... 9 C. Impact to Structures .......................................................................................................10 D. Loss of Private Structures ..............................................................................................10 E. Magnitude of Impact on Structures .................................................................................10 F. Loss of Livelihood ...........................................................................................................10 G. Loss of Trees..................................................................................................................11 H. Loss of Common Property Resources ............................................................................11

III. SOCIO-ECONOMIC INFORMATION PROFILE .................................................................12 A. Involuntary Resettlement Impacts ...................................................................................12 B. Methodology Adopted .....................................................................................................12 C. Demographic Profile of Project Affected Families ...........................................................12 D. Socio-economic Profile ...................................................................................................13 E. Key Socio-economic Indicators ......................................................................................15 F. Resettlement Preferences ..............................................................................................15

IV. CONSULTATION, PARTICIPATION AND DISCLOSURE .................................................16 A. Consultation in the Project ..............................................................................................16 B. Methods of Consultation .................................................................................................16 C. Outcome of the Consultations ........................................................................................17 D. Plan for further Consultation in the Project .....................................................................19 E. Disclosure ......................................................................................................................19

V. POLICY AND LEGAL FRAMEWORK ................................................................................21 A. Background ....................................................................................................................21 B. National Legislations, Policies and ADB Policy ...............................................................21 C. Resolutions of the Cabinet of Ministers ..........................................................................23 D. ADB’s Safeguard Policy Statement (SPS), 2009 ............................................................27 E. Comparison of Government and ADB Policies ...............................................................27 F. Involuntary Resettlement Safeguard Principles for the Project .......................................28 G. Valuation of land and assets ...........................................................................................29

VI. ENTITLEMENTS, ASSISTANCE AND BENEFITS .............................................................31 A. Introduction ....................................................................................................................31 B. Eligibility Criteria .............................................................................................................31 C. Entitlement Matrix ...........................................................................................................31

VII. RELOCATION OF HOUSING AND SETTLEMENTS .........................................................34 VIII. INCOME RESTORATION AND REHABILITATION ...........................................................35

A. Loss of Livelihood in this Project ....................................................................................35 B. Entitlements for Loss of Livelihood .................................................................................35 C. Income Restoration Measures ........................................................................................35

IX. RESETTLEMENT BUDGET AND FINANCING PLAN........................................................36

A. Introduction ....................................................................................................................36 B. Compensation ................................................................................................................36 C. Assistances ....................................................................................................................36 D. RP Implementation Cost .................................................................................................36 E. Source of Funding and Fund Flow ..................................................................................37 F. Resettlement Budget Estimates .....................................................................................37

X. GRIEVANCE REDRESSAL MECHANISM .........................................................................39 A. Grievance Redressal Committee ....................................................................................39 B. Functions of GRC ...........................................................................................................39

XI. INSTITUTIONAL ARRANGEMENT AND IMPLEMENTATION ...........................................41 A. Project Management Unit ...............................................................................................41 B. Project Implementation Unit ............................................................................................41 C. Project Supervision Consultants .....................................................................................41 D. Capacity Building ............................................................................................................42

XII. IMPLEMENTATION SCHEDULE .......................................................................................43 A. Introduction ....................................................................................................................43 B. Schedule for Project Implementation ..............................................................................43 C. RP Implementation Schedule .........................................................................................43

XIII. MONITORING AND REPORTING .....................................................................................46 A. Introduction ....................................................................................................................46 B. Internal Monitoring ..........................................................................................................46 C. Semiannual Reporting ....................................................................................................46

APPENDICES Appendix 1: Typical Cross Section of The Project Road ...........................................................47 Appendix 2: Copy of Resolution of The Khokim of Kungrad District Dated 08.02.2017 .............50 Appendix 3: Documents To Establish Land Usage Right And Tenancy Agreement ..................55 Appendix 4: Alignment Drawing with Affected Structure ............................................................61 Appendix 5: Summary of Affected Families Losing Structure ....................................................62 Appendix 6: Participants in Consultation ...................................................................................63 Appendix 7: Comparison Between ADB Involuntary Resettlement Policy Requirements and Republic of Uzbekistan Legislation, Decree and Resolution with Gap Filling Measures ............66 Appendix 8: Letters from Design Institute Initiating Land Request for Project ............................71 Appendix 9: Unit Rate for Structure Valuation Obtained Through Kungrad Cadastral Department .................................................................................................73 LIST OF TABLES table 1: Summary of Involuntary Resettlement Impacts .............................................................. 6 Table 2: Category of Land Being Acquired ................................................................................. 9 Table 3: Classification of Land Acquired and its Use .................................................................10 Table 4: Intensity of Land Impact ..............................................................................................10 Table 5: Head of Affected Family by Sex ..................................................................................12 Table 6: Size of The Family.......................................................................................................13 Table 7: Age Group of Paps ......................................................................................................13 Table 8: Educational Level of PAPs ..........................................................................................13 Table 9: Occupation of DPs ......................................................................................................14 Table 10: Key Socio-Economic Indicators .................................................................................15 Table 11: Consultation Methods ................................................................................................16 Table 12: Summary of Consultation Outcome ...........................................................................17 Table 13: Entitlement Matrix ......................................................................................................31 Table 14: Budget Estimate ........................................................................................................37

LIST OF FIGURES Figure 1: Location of Karakalpakstan Road Project .................................................................... 2 Figure 2: Location of Wim At Km 2.7 in Road A373 (Near Rohat Post) ...................................... 3 Figure 3: Location of Wim At Km 817.9 in Road M39 (Near Erkin Post) ..................................... 4 Figure 4: Location of Existing Wim At Km 192.4 in Road A373 (Near Kamchik Pass) ................ 4

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EXECUTIVE SUMMARY

1. Government of Uzbekistan has proposed to upgrade its regional transport corridors to address the logistical challenge of being a landlocked country and is committed to improve its roads that are part of the Central Asia Regional Economic Cooperation’s (CAREC) six priority corridors. The proposed Third CAREC Corridor Road Investment Program aims to complement the ongoing efforts to improve the CAREC Corridors by providing the last missing link to the international border with Kazakhstan, rehabilitate roads in Khorezm and Kashkadarya, and develop of road side infrastructure.

2. Identified by the Republic of Uzbekistan as part of the priority road development program, the Karakalpakstan Road Project involves rehabilitation/construction of the 240km long Kungrad to Daut-Ata section of the Guzar-Bukhra-Nukus-Beyneu highway (A380) from km 964 to km 1204 connecting to the Kazakh border. Further, along with the improvements proposed in A380, two Weigh-in-Motion (WIM) facilities have been proposed at km 2.7 in road A373 and at km 817.9 in road M39, and improvements to an existing WIM at km 192.4 in road A373. The State Committee of Roads of Uzbekistan, which is mandated to undertake improvement and upgradation of various roads at different locations in the Republic of Uzbekistan will be the executing agency.

3. The State Committee of Roads (SCR) has prepared this resettlement plan based on the final and detailed design for the 240km long Kungrad to Daut-Ata section of A380, proposed under Third CAREC Corridor Road Investment Program and the proposed three weigh-in-Motion (WIM) facilities. This resettlement plan addresses social issues arising out of acquisition of land and other assets, resulting in physical and / or economic displacement to families / individuals / community, either direct or indirect and is in compliance with ADB's Safeguard Policy Statement, 2009 and legislations of Republic of Uzbekistan. On approval of the project, valuation of the affected structure will be completed and this resettlement plan will be updated incorporating the valuation details and changes, if any, in the design. The updated resettlement plan will be submitted to Asian Development Bank for approval and disclosed before award of contract.

4. The project involves permanent acquisition of land under private use measuring 0.0613 ha belonging to 1 owner, acquisition of 311.62 ha of valley and other land plots not used in agriculture and 1.5 ha of valley and other land plots for construction of training centres at Jaslik and Karakalpakstan, totalling 313.18 ha and owned by the State. Further, the project will involve temporary acquisition of 915.77 ha of valley and other land plots not used in agriculture for the open pits and owned by the State. In addition, two of the proposed new WIM facilities will involve use of 1.67 ha of land, which is currently managed by Uzavtyoul regional department, a unit of State Committee of Roads, being land parcels abetting the highway and free from encumbrance. The improvements proposed for the third existing WIM facility involves only installation of equipment within the available facility. The permanent acquisition of land for the road project will cause economic displacement to 2 families, comprising of 1 structure owner who would be losing the rental income derived from the structure that will be affected and 1 tenant who is having a restaurant in the affected structure. Further, 1 motel-owner will face non-significant impact by way of temporary disruption during shifting of water and gas supply pipeline to his motel as part of utility shifting. There is no impact to common property resource in this project. Altogether the project will cause impact to 2 families and temporary disruption to 1 family.

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5. The objective of this resettlement plan is to assist the affected people to improve or at least restore their living standards to the pre-project level. This resettlement plan is based on the final and detailed design of the road project and captures the involuntary resettlement impacts arising out of the proposed improvements to the project road Kungrad to Daut-Ata section of A380 proposed under CAREC. The document describes the magnitude of impact, mitigation measures proposed, method of compensating for land, structure and other assets, eligibility criteria for availing rehabilitation and resettlement assistances, baseline socio-economic characteristics, entitlements based on type of loss and tenure, the institutional arrangement for delivering the entitlements and mechanism for resolving grievances and monitoring.

6. The existing right-of-way1 has been considered for the proposed improvement and the existing right-of-way (RoW) for the entire length could not be utilised as widening in most part of the road was not possible due to the international gas pipeline running close to the existing road. Hence, the road construction would entail acquisition of 313.18 ha of land comprising of 0.0613 ha of land under private use, 311.62 ha of valley and other land plots not used in agriculture for the project right-of-way2 and 1.5 ha of valley and other land plots not used in agriculture and proposed for construction of training centres at Jaslik and Karakalpakstan.

7. The improvements proposed will cause impact to 1 private structure, there is 1 tenant in the private structure being impacted and there are no common property resources affected under this project. Further, there are no employees affected in the project.

8. During the census and socio-economic survey, 7 FGDs were conducted in Jaslik and Karakalpakstan along the project road and a total of 99 persons (including 84 women) participated in the consultation meetings. All relevant aspects of project design, details of land required and impact to private property were discussed with the affected communities.

9. Information will be disseminated to affected persons at various stages. Information including magnitude of loss, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments, displacement schedule, civil works schedule will be disclosed by the PIU with assistance from the Khokimiyat. This will be done through focus group discussions and made available to affected persons as brochures, leaflets, or booklets, etc. in Karakalpak.

10. The policy framework and entitlements for the project is based on national laws: Land Code of the Republic of Uzbekistan, 1998, the various Resolutions of the Cabinet of Ministers, and ADB’s Safeguard Policy Statement (SPS), 2009.

11. An Entitlement Matrix has been developed, that summarizes the types of losses and the corresponding nature and scope of entitlements; and is in compliance with legislations of Republic of Uzbekistan and ADB SPS. The matrix presents the entitlements corresponding to the tenure of the affected persons and the total resettlement cost for the project is 907.09 million UZS.

1 Existing Right-of-Way (RoW) is the land on which the existing gravel road or the existing A380 traverses and

includes the land abetting the carriageway as per the cadastral records. 2 The cross section of the project road is wider than the one of the existing gravel road. Also, at junctions, the police

control and border crossing point, additional lanes will be added. Thus, the project ROW is different from the existing ROW.

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12. Grievance Redressal Committee (GRC) will be established at two-levels, one at the Project Implementation Unit (PIU) level and second at PMU level, to receive, evaluate and facilitate the resolution of displaced persons concerns, complaints and grievances. The GRC will be in place immediately after the project is approved and will function during the entire life of the project including the defects liability period.

13. The Project Director, Project Management Unit, State Road Committee, will be overall in charge of coordination between the Project Implementation Unit (PIU) and the Khokimiyat of Kungrad District for social safeguards compliance.

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I. PROJECT DESCRIPTION

A. Background 1. Government of Uzbekistan has proposed to upgrade its regional transport corridors to address the logistical challenge of being a landlocked country and is committed to improve its roads that are part of the Central Asia Regional Economic Cooperation’s3 (CAREC) six priority corridors. The proposed Third CAREC Corridor Road Investment Program aims to complement the ongoing efforts to improve the CAREC Corridors by providing the last missing link to the international border with Kazakhstan, rehabilitate roads in Khorezm and Kashkadarya, and develop of road side infrastructure. 2. Identified by the Republic of Uzbekistan as part of the priority road development program4, the Karakalpakstan Road Project involves rehabilitation/construction of the 240km long Kungrad to Daut-Ata section of the Guzar-Bukhra-Nukus-Beyneu highway (A380) from km 964 to km 1204 connecting to the Kazakh border. Further, along with the improvements proposed in A380, two weigh-in-Motion (WIM) facilities have been proposed at km 2.7 in road A373 and at km 817.9 in road M39 , and improvements to an existing WIM at km 192.4 in road A373. The State Committee of Roads of Uzbekistan, which is mandated to undertake improvement and upgradation of various roads at different locations in the Republic of Uzbekistan will be the executing agency. 3. The State Committee of Roads (SCR) has prepared this resettlement plan based on the final and detailed design for the 240km long Kungrad to Daut-Ata section of A380, proposed under Third CAREC Corridor Road Investment Program and the proposed three weigh-in-Motion (WIM) facilities. This resettlement plan addresses social issues arising out of acquisition of land and other assets, resulting in physical and / or economic displacement to families / individuals / community, either direct or indirect and is in compliance with ADB's Safeguard Policy Statement, 2009 and legislations of Republic of Uzbekistan. On approval of the project, valuation of the affected structure will be completed and this resettlement plan will be updated incorporating the valuation details and changes, if any, in the design. The updated resettlement plan will be submitted to Asian Development Bank for approval and disclosed before award of contract. B. Profile of the Subproject Area 4. The project road lies entirely within the District of Kungrad, Republic of Karakalpakstan and provides connectivity to two major settlements viz. Jaslik and Karakalpakstan. Both these settlements are away from the project road which passes along uninhabited barren land. 5. Kungrad district spread over an area of 76 thousand km2, is one of the biggest districts in the republic and constitutes 12 percent of Uzbekistan’s territory and 46 percent of Karakalpakstan’s territory. The population5 is 128.3 thousand people and comprises of 80.9 thousand people (63%) living in urban areas and 47.4 thousand people (37%) in rural areas. The total employed is 52,580 residents, with 42 percent employed in formal sector and 58

3 The Central Asia Regional Economic Cooperation (CAREC) Program is a partnership of 11 countries and

development partners working together to promote development through cooperation, leading to accelerated economic growth and poverty reduction

4 Resolution of the President of the Republic of Uzbekistan No 2313 on the Program of Development and Modernization of the Engineering‐Communication and Road and Transport Infrastructure for the period 2015‐2019, dated 06 March 2015

5 As on 01 January 2019, State Committee of the Republic of Uzbekistan on Statistics

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percent employed in informal sectors. The level of unemployment is 10 percent and the average salary is 2,017,800 UZS. 6. Jaslik is a settlement of Kungrad district in Republic of Karakalpakstan and is 5km away from the project road. It has a population of 4,027 persons, comprising of 51.2 percent women and 48.8 percent men. Karakalpakstan settlement is spread over an area of 18,000 km2. It has a population of 3,254 persons, comprising of 52.3 percent men and 47.7 percent women. C. Subproject Road Description 7. The proposed project involves the rehabilitation and upgrading of a 240 kilometer section along the existing A380 between Kungrad and Daut-Ata terminating at the border control point (BCP) between Uzbekistan and Kazakhstan. The existing road will be upgraded to a two lane with shoulders and with cement concrete pavement. The project road follows the existing A-380 from kilometrage 0.000 to about 9.207 and then re-aligns to the left from until 79.000 with a maximum separation distance of almost 4.6 kms. Between 79.000 and 119.00 the project alignment again follows the existing A380. The project alignment then runs parallel on the left hand side to the existing road until 109.000 km at a distance of about 35m. The separation distance increases to about 850m from 109.000 to 219.000km and from there joins the existing road alignment to Kazakhstan. Of the total 240km project road, 61.5kms or 25 percent will follow the existing alignment while the rest will be a realigned new road. The location of the road is presented in Figure 1. The design typical cross section is given in Appendix 1.

Figure 1: Location of Karakalpakstan Road Project

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8. In addition to the proposed improvements to A380, two new weigh-in-Motion (WIM) facilities are proposed at km 2.7 in road A373 (near Rohat Post) and at km 817.9 in road M39 (near Erkin Post). The facility envisages the design, supply and installation of WIM systems to allow the collection of axle load data and implement enforcement against overloading to protect the accelerated deterioration of transportation infrastructure. Further, an existing WIM facility at km 192.4 in road A373 (near Kamchik pass) will be involves only installation of equipment within the available facility. These three facilities proposed will enable the State Committee of Roads to: (i) implementing axle load control data collection process that provide the required data to the specified accuracy; (ii) implementing enforcement process, using data collected, against overloaded vehicles owners and drivers; and (iii) develop a WIM system team within a wider intelligent transportation system group who can successfully manage Axle Load Control and enforcement process.

Figure 2: Location of WIM at km 2.7 in road A373 (near Rohat Post)

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Figure 3: Location of WIM at km 817.9 in road M39 (near Erkin Post)

Figure 4: Location of Existing WIM at km 192.4 in road A373 (near Kamchik pass)

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Location of WIM at km 2.7 in road A373 Location of WIM at km 817.9 in road M39

Location of Existing WIM at km 192.4 in road A373

D. Subproject Impacts 9. Road network is a key element of the economy of the Republic of Uzbekistan. Its effective functioning and sustainable development are important for its economic growth, integrity and national security, as well as to improve living standards and livelihoods. Roads are an essential part of the transport infrastructure. The share of road transport accounts for 89.2 percent of the volume of freight traffic. On average, vehicle fleet increased by 7 - 10 percent annually in the country. Also, there is a steady increase in long-distance journeys. The primary economic benefits of the investment program are cost savings from vehicle operation, reduction in travel time, and lower transaction costs related to transportation. Other benefits are: i) the establishment of international transport corridors, ii) improvements in road transport efficiency, iii) increase in freight and passenger transport due to improvements in the quality of roads, iv) increase axle load capacity to 13 tons, and v) less road crashes due to improvements in road safety. 10. The settlements in the project area that are located away from the project road would have improved connectivity with major trading, educational and administrative centres. Further, the improved road will reduce the travel time to the residents of the settlements along this road, to workplace, hospitals and markets. Better connectivity to the district headquarters and to the border of Kazakhstan will lead to industrial growth along the project road that will result in

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employment generation. However, the project will require land under private use and removal of a structure for improving the road, resulting in negative impact to two families. 11. The project involves acquisition of land under private use measuring 0.0613 ha belonging to 1 owner, acquisition of 311.62 ha of valley and other land plots not used in agriculture, 1.5 ha of valley and other land plots for construction of training centres at Jaslik and Karakalpakstan and temporary acquisition of 915.77 ha of valley and other land plots not used in agriculture, all for the A380 road project and the proposed training centres. All land required for the project are owned by the State. These lands are barren and uncultivable due to the low soil fertility and absence of irrigation. The acquisition of land will cause economic displacement to 2 families, comprising of 1 structure owner who would be losing the rental income derived from the commercial building that will be affected and 1 tenant who is having a restaurant in the affected commercial building. Further, 1 motel-owner will face non-significant impact by way of temporary disruption during shifting of water and gas supply pipeline to his motel as part of utility shifting. The shifting of the water and gas supply pipeline is in the scope of the contractor as part of the utility shifting and will be completed prior to commencement of civil works and the Project Implementation Unit (PIU) established at Kungrad will ensure that there is no disruption to the business activity during the shifting of utility. In the event of any disruption to the business activity during the utility shifting, the impact will be mitigated in accordance with the involuntary resettlement safeguard principles of this LARP. There is no impact to common property resource in this project. Altogether the project will cause impact to 2 families and temporary disruption to 1 family. In addition, two of the proposed new WIM facilities will involve use of 1.67 ha of land, which is currently managed by Uzavtyoul regional department, a unit of State Committee of Roads, being land parcels abetting the highway and free from encumbrance. The improvements proposed for the third existing WIM facility involves only installation of equipment within the available facility. The involuntary resettlement impacts have been summarized in Table 1.

Table 1: Summary of Involuntary Resettlement Impacts Impacts Extent / Numbers

Permanent Land Acquisition - Private Use 0.06136 ha

Permanent Land Acquisition - Valley and other land plots not used in agriculture 313.127 ha

Permanent Land Acquisition - Land plots along the highway 1.678 ha

Temporary Land Acquisition - Valley and other land plots not used in agriculture 915.77 ha

Affected Families 3 Physically Displace Families (Loss of Residence) -

Economically Displaced Families (Loss of Rental/Business Income) 29

Non-Significant Impact 110

6 Land under private use, required for strengthening and widening of the road. 7 Includes 311.62 ha of land required for strengthening and widening of the road and 1.5 ha of land for construction of

training centres at Jaslik and Karakalpakstan 8 Includes 1.67 ha of land required for the two WIM facilities and the land is managed by Uzavtyoul regional

departments (a unit of State Committee of Roads) and is free from encumbrance. There is no land requirement for the third existing WIM facility involving installation of equipment.

9 Comprises of 1-structure owner losing the structure and 1-tenant having a restaurant in the affected structure 10 Involves temporary disruption to 1 motel-owner during shifting of water and gas supply pipeline.

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Impacts Extent / Numbers Total Affected Persons 12 Titled11 Affected Persons 12 Non-titled Affected Persons - Affected Employees - Affected Structure 1 Affected Private Trees - Affected Common Property Resources -

Source: Census and Social Survey, March 2019 12. There are no affected families in this project who would qualify under the vulnerable category. None of the affected families belong to low income group12 and there are no indigenous peoples, nor families headed by elderly or families having differentially abled persons. The project will cause impact to 1 woman headed family, where the woman is receiving pension, her adult son is employed and is having salaried income, the family income reported is 1,310,000 UZS and the rental income loss arising out of the affected structure constitutes 28 percent of the family income. Since the family headed by the woman has an adult earning member and the family income is above the low-income category, the affected family has not been considered as vulnerable. E. Minimizing Involuntary Resettlement 13. The project road passes through barren land and the realignment proposed is also along barren and non-agricultural land. Hence, no specify design changes was required to minimise involuntary resettlement impacts. However, widening along the existing road has been avoided in about 75 percent of the length and realignment has been proposed to avoid impact to the international gas pipeline on the right-hand side of the existing road. F. Impact to Indigenous Peoples 14. The census and socio-economic survey and consultations held along the project area confirm that there are no indigenous people in the settlements along the project road and further the project does not impact any indigenous peoples communities. G. Scope and Objective of Resettlement Plan 15. The objective of this resettlement plan is to assist the affected people to improve or at least restore their living standards to the pre-project level. This resettlement plan is based on the final and detailed design of the road project and captures the involuntary resettlement impacts arising out of the proposed improvements to the project road Kungrad to Daut-Ata section of A380 proposed under CAREC. The document describes the magnitude of impact, mitigation measures proposed, method of compensating for land, structure and other assets, eligibility criteria for availing rehabilitation and resettlement assistances, baseline socio-economic characteristics, entitlements based on type of loss and tenure, the institutional

11 Title as per land code comprises of right of lifelong inherited possession, permanent use, term

(temporary) use and lease (Article 17 of Land Code). In this project the title is permanent use and the tenant with license.

12 Low income is measured as 1.5 times of minimal wage per-capita in the given family. The definition of income is given as a total amount of revenues for the last 12 months obtained by all family members from all kinds of economic activities and subsidies. The minimum wages as per the November 2018 order of the President of Republic of Uzbekistan is 202,730 UZS. Hence, low income families are those with less than the monthly per capita income of 304,095 UZS

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arrangement for delivering the entitlements and mechanism for resolving grievances and monitoring.

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II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

A. Introduction 16. The project involves the rehabilitation and upgrading of a 240 kilometer section along the existing A380 between Kungrad and Daut-Ata terminating at the border control point (BCP) between Uzbekistan and Kazakhstan. The existing two-lane road is proposed for widening to two lane with shoulders. B. Scope of Land Acquisition 17. The existing right-of-way13 has been considered for the proposed improvement and the existing right-of-way (RoW) for the entire length could not be utilised as widening in most part of the road was not possible due to the international gas pipeline running close to the existing road. Hence, the road construction would entail acquisition of 313.18 ha of land owned by the State comprising of 0.0613 ha of land under private use, 311.62 ha of valley and other land plots not used in agriculture for the project right-of-way14 and 1.5 ha of valley and other land plots not used in agriculture and proposed for construction of training centres at Jaslik and Karakalpakstan, resulting in adverse impacts to two families. In addition, the proposed two new WIM facilities will involve use of 1.67 ha of land, which is currently managed by Uzavtyoul regional department, a unit of State Committee of Roads, being land parcels abetting the highway and free from encumbrance.

Table 2: Category of Land being acquired Type of Ownership Extent in Hectare

Private use owned by the State 0.0613 Valley and other land plots not used in agriculture owned by the State 313.12

Land owned by the State and under the use of State Committee of Roads 1.67

Source: Land plan prepared by LMCRE15 State Enterprise, March and August 2019 18. The barren land of 313.12 ha includes about 1.5 ha of land in the two settlements in the project area viz. Jaslik and Karakalpakstan, where training centres have been proposed. The location of the training centre would be finalised by Khokiyamat in consultation with the women committee of these two settlements. While identifying land for these training centres, Khokiyamat will ensure that only land free from encumbrance and not under any private use is selected. The Khokim of Kungrad district having approved the land request from Road Design Bureau, LLS, General Design Institute through his resolution dated 08 February 2017 has requested for payment to be made to affect the transfer. The copy of resolution of the Khokim of Kungrad district is given in Appendix 2. The land proposed for acquisition, categorised by its use is presented in the following table

13 Existing Right-of-Way (RoW) is the land on which the existing gravel road or the existing A380

traverses and includes the land abetting the carriageway as per the cadastral records. 14 The cross section of the project road is wider than the one of the existing gravel road. Also, at

junctions, the police control and border crossing point, additional lanes will be added. Thus, the project ROW is different from the existing ROW.

15 Land Management and Real Estate State Enterprise, Kungrad District

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Table 3: Classification of Land Acquired and its Use Use of Land Number of Affected

Family Hectare

Agricultural - - Residential - - Commercial 1 0.06 Barren Land - 313.12 Land abetting the highway - 1.67

Total 1 314.85 Source: Census and Social Survey, March and August 2019.

19. The land being acquired has been categorized based on the extent of land lost and is presented below. The affected family will be losing 30 percent of the productive asset resulting in the entire productive asset (building) becoming unviable and entitled for full compensation and assistances.

Table 4: Intensity of Land Impact Scale of Impact Number of Affected

families Up to 10% - ≥ 10% and below 25% - ≥ 25% and below 50% 1 ≥ 50% and below 75% - 75% and above -

Total 1 Source: Census and Social Survey, March 2019 C. Impact to Structures 20. The improvements proposed will cause impact to 1 private commercial building, there is 1 tenant in the private commercial building being impacted and there are no common property resources affected under this project. Further, there are no employees affected in the project. The documents to establish usage right of land and the tenancy agreement are given as Appendix 2. D. Loss of Private Structures 21. The single commercial building getting affected is on land under private use, is permanent in type and has been rented out, in which a tea shop is functioning. E. Magnitude of Impact on Structures 22. The project will cause impact to 1 building and 30 percent of the building is within the proposed right-of-way. The removal of the affected portion of the building will result in damage to the entire structure and hence the building will be fully affected requiring to be compensated for the full building. The alignment drawing depicting the structure affected is given in Appendix 3. F. Loss of Livelihood 23. The project will cause significant impact on the livelihood of 2 families, comprising of 1 affected structure owner who would be losing the rental income and 1 tenant who is having a tea shop and who would be losing the business income.

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G. Loss of Trees and Crops 24. The project will not involve removal of any private trees and there are no crops in the land being acquired.

H. Loss of Common Property Resources 25. There is no impact to common property resources in this project.

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III. SOCIO-ECONOMIC INFORMATION PROFILE

A. Involuntary Resettlement Impacts 26. This resettlement plan is based on the census and socio-economic survey carried out in March 2019 based on final and detailed design of the road project. The census survey identified 1 family losing their land and / or structure, 1 commercial tenant who would be affected and 1 family who would be facing temporary disruption during utility shifting. The salient findings of the census and socio-economic survey is presented in the following sections. B. Methodology Adopted 27. The census survey enumerated all private assets/properties within the proposed right-of-way (PRoW) of 45m for two-lane with paved shoulders and 47.3m in the police check post and in the border control point sections. For the affected family, a pretested structured questionnaire was administered during the census survey. The survey recorded details of: (i) identity of the affected family; (ii) tenure; and (iii) type, use and extent of loss to the affected family. 28. In addition to recording the above information, detailed socio-economic characteristics, including demographic profile of members of the family, standard of living, inventory of physical assets, vulnerability characteristics, indebtedness level, health and sanitation, and ascertaining perceptions about project, resettlement options and compensation, was collected from the affected families. The structure was photographed for reference and record. There were no common property resources within the PRoW to be enumerated.

29. The affected families were categorised based on the severity of impact as significant (loss of 10% and above of the productive asset or structure) and non- significant (loss of less than 10% of the productive asset or structure). The summary of affected families is presented in Appendix 4. 30. The census survey enumerated both the significantly affected families and also the family that would be facing temporary disruption. The socio-economic characteristics of the 2-significantly affected families captured through a socio-economic survey carried out along with the census enumeration is presented in the following sections. C. Demographic Profile of Project Affected Families 31. Family by Sex: One family is headed a woman and the other is headed by men. Males account for 42.9% and female account for 57.1% amongst Displaced Persons (DPs).

Table 5: Head of Affected Family by Sex

Number Percentage Male 1 50.0 Female 1 50.0

Total 2 100 Source: Census and Social Survey, March 2019.

32. Family by Religion and Social Group: Both the affected family belong to Islam and with regard to ethnicity, 1-affected family belongs to Kazakh and the other belongs to Karakalpak. 33. Family by Size of Family: One affected family reported a family of size 5, followed by

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the other affected family with family of size 2 and the average family size is 3.5 members or say 4.

Table 6: Size of the Family Size of the Family Number Percentage

Up to 2 1 50.0 3 to 4 - - 5 to 6 1 50.0 Above 6 - -

Total 2 100.0 Average size of the family is 3.5 Source: Census and Social Survey, March 2019.

34. Age group of affected persons: In all, 43% of the affected persons are in the age group of 21 and below, followed by 29% in the age group of 51 and 65 and 14% each in the age group of 22 and 35 and 36 and 50.

Table 7: Age Group of PAPs Age Group Male Female Total

Number Percentage Number Percentage Number Percentage Up to 21 1 33.3 2 50.0 3 42.8 > 21 and ≤ 35 1 33.3 - - 1 14.3 > 35 and ≤ 50 - - 1 25.0 1 14.3 > 50 and ≤ 65 1 33.3 1 25.0 2 28.6 Above 65 - - - - - -

Total 3 100 4 100 7 100 Source: Census and Social Survey, March 2019. D. Socio-economic Profile 35. Educational level of affected persons: Eighty six percent of the affected persons have completed secondary vocational education, followed by 14 percent who has studied up to 4th standard.

Table 8: Educational level of PAPs Educational Male Female Total

Number Percentage Number Percentage Number Percentage Kindergarten - - - - - - Up to 4th - - 1 25.0 1 14.3 5th to 11th - - - - - - Vocational 3 100.0 3 75.0 6 85.7 Bachelor - - - - - - Master - - - - - - Uneducated - - - - - -

Total 3 100 4 100 7 100 Source: Census and Social Survey, March 2019. 36. Occupation of affected persons: The not in workforce account for 31%, comprising largely of children, students, elderly, housewives and females who do not go for work. Thirty two percent are involved in cultivation, followed by 20% who are into agriculture labour, 9% are self-employed, 4% are into business, 3% are salaried and 1% each are in government service and work as daily wage earners.

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37. The 22% not in workforce among women is low compared to men with 35% not in workforce. Sixty six percent of the women are into agriculture, either as cultivators (43%) or as agricultural labourers (23%) and 11% are reported as self-employed. Among men, cultivators account for 28%, followed by 19% agricultural labourers and 8% self-employed. The occupation of the affected persons is given in the following table.

Table 9: Occupation of DPs Occupation Male Female Total

Number Percentage Number Percentage Number Percentage Farmer - - - - - - Employed Private - - - - - - Employed Public 1 33.3 - - 1 Private Entrepreneur 2 66.7 2 50.0 4 Livestock - - - - - - Pension - - 1 25.0 1 Un Employed - - - - - - Not in workforce - - 1 25.0 1

Total 3 100 4 100 7 100 Source: Census and Social Survey, March 2019. 38. Income of affected family: The monthly family income from all sources was reported as 9,560,000 UZS by 1-affected family (tenant having the tea shop), followed by 1,310,000 UZS by the other affected family (structure owner). 39. Impact to vulnerable family: The project does not cause impact to any vulnerable family. None of the affected families belong to low income group16 and there are no indigenous peoples, nor families headed by elderly or families having differentially abled persons. Though the project will cause impact to 1 woman headed family, with the woman receiving pension, her adult son employed and having salaried income, the family income reported is 1,310,000 UZS and the rental income loss arising out of the affected structure constitutes 28 percent of the family income. Since the family headed by the woman has an adult earning member and the family income is above the low-income category, the affected family has not been considered vulnerable.

16 Low income is measured as 1.5 times of minimal wage per-capita in the given family. The definition of income is

given as a total amount of revenues for the last 12 months obtained by all family members from all kinds of economic activities and subsidies. The minimum wages as per the November 2018 order of the President of Republic of Uzbekistan is 202,730 UZS. Hence, low income families are those with less than the monthly per capita income of 304,095 UZS.

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E. Key Socio-economic Indicators 40. The key socio-economic indicators established based on the census and socio- economic survey carried out amongst the 2-affected families during March 2019 is presented below. These indicators would form the baseline indicators, in addition to other indicators identified by PMU, SRC, and would be compared with the evaluation post implementation carried out by the PMU.

Table 10: Key Socio-economic Indicators SNo Indicator Unit Value/Figure

a) Income (N = 2) 1 Monthly family income Average 5,435,000 UZS 2 Number of earners Average 3.0 b) Impact (N =2) 3 Residence Number 0 4 Business / Shop Number 1 c) Social Characteristics (N=2) 5 Family size Average 3.5 6 Women headed family17 Number 1

Source: Census and Social Survey, March 2019. F. Resettlement Preferences 41. The affected families were asked to indicate their preferred resettlement and rehabilitation option of either self-managed cash assistance or project supported land/livelihood assistance. The affected families preferred project supported land/livelihood assistance.

17 The women headed family does not qualify under the vulnerable category as the women is a

pensioner and has an adult earning member in the family.

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IV. CONSULTATION, PARTICIPATION AND DISCLOSURE

A. Consultation in the Project 42. In order to engage with the community and enhance public understanding about the project and address the concerns and issues pertaining to the proposed project, compensation, rehabilitation and resettlement, individual interviews, focus group discussions (FGD) and meetings were undertaken with the affected persons and the community in the two settlements along the project road. These were carried out during the census and socio-economic survey that was carried out as part of the project preparatory activities for the project. The opinion of the affected persons, community and their perceptions were obtained during these consultations. The consultations with the affected persons and other stakeholders will continue throughout the RP implementation period. B. Methods of Consultation 43. Consultations and discussions were held along with the census and socio-economic survey, with both primary and secondary stakeholders. The primary stakeholders being project affected persons, project beneficiaries and implementing agency (SRC). The secondary stakeholder being the Khokimiyat, Cadastral Department and women committee of the Kungrad District. 44. During the census and socio-economic survey consultations were held with affected families, officials of the district Khokimiyat, cadastral department and members of women committee. In order to hear and address the concerns of women, women were encouraged to participate and opportunity to express their concern was provided during the consultations. The consultation methods followed and proposed are detailed in the following table.

Table 11: Consultation Methods Stakeholders Consultation Method

Affected Persons Census and Socio-economic Survey Affected Persons Individual interviews Local Communities Focus Group Discussions District Khokimiyat, Cadastral department Individual interview, discussion Concerned Officials of SRC Individual meeting/interview, discussion

45. In addition to the web disclosure of the Land Acquisition and Resettlement Plan (LARP), detailed consultations regarding the extent of involuntary resettlement impact, the mitigation measures proposed in the LARP and the details of the proposed project, will be disclosed to the affected persons and general public through FGDs held in the settlements along the project road during resettlement plan implementation.

46. During the census and socio-economic survey, FGDs were conducted in the two settlements along the project road. All relevant aspects of project design, details of land required and impact to private property were discussed. 47. The number of participants and the photographs are provided as Appendix 5 to this report and the attendance sheets are available in the project file with the State Road Committee.

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C. Outcome of the Consultations 48. Consultations were carried out in the two settlements along the project road, to create awareness about the project among the people. Consultation locations were selected within the settlements in such a way to ensure maximum possible participation. 49. The people generally were happy to note that the road was going to be improved and considered that the improved road will reduce travel time and that they will be able to access health care, market and other requirements at Kungrad (District headquarters) with ease. The two settlements lack in higher educational facilities, health facilities, markets and even employment opportunities, which was reported as affecting the overall social and economic development and added to it the lack of access to regular public transport was reported to make things worse. People consider that the development of the road will improve the connectivity to Kungrad and with possible public transport, their children would be able to seek higher education. The present bad condition of the road results in increased travel time and higher cost incurred in maintaining their vehicles. 50. Women felt that the proposed road project will provide (i) better access to higher levels of education to their children, health services (especially in emergencies) and (ii) possible public transport facility, and better and more frequent private transport options. The salient discussion points are summarized in the following table.

Table 12: Summary of Consultation Outcome Location Issues / Concerns Response

Jaslik 1. Unemployment is major concern 2. Absence of public transport

(buses) greatly affects access to health care, markets and higher education

3. High cost of private bus ticket 4. Frequency of private operator

very poor 5. Insecure road to the Kungrad as

there are no lights 6. Condition of the road is bad and it

takes long time to travel to Kungrad

1. With improved roads, newer opportunities are likely, as there could be development happening along the highway

2. The people should address the requirement of public transport to the administration

3. With improved road, more private operators may be interested in operating services and hence prices may come down

4. If more people are commuting and the road is good, chances are there for an increase in services.

5. In the highway lights will not be provided, but the rest areas and junctions at Jaslik and Karakalpakstan will have lighting.

6. Once the road work is completed, you will have a high-quality road

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Location Issues / Concerns Response Jaslik (Women’s Committee, kindergarten teachers and Gas Company employees

1. Lack of the regular public transportation

2. Lack of the access to healthcare, market, college and universities

3. Lack of ambulance car 4. Lack of the facilities along the

road, no bus stops and no toilet

1. The people should address the requirement of public transport to the administration

2. Improved road will reduce the travel time to Kungrad and people will have faster and safer access to markets, health care and education.

3. Once the road is developed, some hospital in Kungrad may be asked to provide ambulance services

4. Rest areas and bus shelters have been proposed and these will have separate toilets for men and women.

Karakalpakstan 1. Unemployment is high as there are no opportunities

2. No public bus service available 3. High cost for taxi service 4. Accidents on the road

1. Improved road would help in encouraging newer economic activities in the region and thereby there is a possibility of more opportunities

2. The people should address the requirement of public transport to the administration

3. Once the road is improved, there is a possibility that the rates would come down and also more operators could be interested in offering the services.

4. The proposed road with two lanes will result in fewer accidents and there is also a road safety component under the project to create awareness and assess the safety requirement

Karakalpakstan (women)

1. Lack of the regular public transportation

2. Lack of the access to healthcare/ hospitals, market, and universities

3. Lack of ambulance car 4. Lack of the facilities along the

road 5. High cost of taxi service 6. Unsafe and poor-quality road

1. The people should address the requirement of public transport to the administration

2. Once the road is improved, access to Kungrad, where healthcare, market and educational facilities are available, will be easier and faster.

3. Once the road is developed, some hospital in Kungrad may be asked to provide ambulance services

4. Rest areas with some shops and bus shelters are proposed under the project

5. Once the road is improved, there is a possibility that the

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Location Issues / Concerns Response rates would come down and also more operators could be interested in offering the services.

6. Road will become very safe after it is made into a two lane road with shoulders. The quality will be very good

D. Plan for further Consultation in the Project 51. The extent and level of involvement of affected persons and other stakeholders at various stages of the project from design stage and through resettlement plan implementation will open up the line of communication between the various stakeholders and the project implementing authorities, thereby aiding the process of resolving conflicts at early stages of the project rather than letting it escalate into conflicts resulting in implementation delays and cost overrun. Participation of the local community in decision-making will help in incorporating their learnings on safety issues and in mitigating adverse impacts. 52. Further, successful implementation of the resettlement plan is directly related to the degree of involvement of those affected by the road-project. Consultations with affected persons has been proposed during implementation and the PIU (Kungrad unit of PMU, State Road Committee) and the Kungrad Khokimiyat will be responsible for conducting these consultations. The proposed consultation plan will include the following.

(i) In case of any change in project design, the affected persons and other stakeholders will be consulted regarding the factors that necessitated the change, efforts taken to minimize resettlement impacts and mitigation measures available in accordance with the involuntary resettlement safeguard principles of the LARP.

(ii) The PIU, with the assistance of the Khokimiyat, will carry out information dissemination sessions in the project area, in particular among the people of Jaslik and Karakalpak.

(iii) During the implementation of resettlement plan, PIU will organize public meetings, focus group discussions and will appraise the communities about the schedule/progress in the implementation of civil works, including awareness regarding road construction, road safety and HIV-AIDS prevention.

E. Disclosure 53. The resettlement plan will be disclosed by the PMU and uploaded in the SRC website (http://www.uzavtoyul.uz/en/) along with the gist of the resettlement plan translated in local language (Karakalpak language). The translated gist of the resettlement plan would provide details of the project, magnitude of impact to land and assets, eligibility and entitlement, institutional arrangement and grievance redressal process. Hard copies of the gist of the resettlement plan in local language will be made available at the office of the PMU, PIU, Kungrad Khokimiyat and distributed to the affected persons. 54. Information will be disseminated to affected persons at various stages. Information including magnitude of loss, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments, displacement schedule, civil works schedule will be disclosed by the PIU with assistance from the Khokimiyat. This will be done through focus group

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discussions and made available to affected persons as brochures, leaflets, or booklets, etc. in Karakalpak. 55. Hard copies of the resettlement plan will also be made available at: (i) the offices of the PIU (Kungrad unit of the PMU, State Road Committee); and (ii) office of the Khokimiyat; as soon as the plans are available and certainly before initiating land acquisition (withdrawal/redemption) process for the project. Electronic version of the resettlement plan will be placed on the official website of the SRC and in Asian Development Bank website. In addition, all safeguard documents including the quarterly progress reports, list of eligible affected persons will be disclosed. Resettlement plan will be maintained in the website throughout the life of the project.

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V. POLICY AND LEGAL FRAMEWORK

A. Background 56. Recognizing the social issues that can arise in road projects, the Republic of Uzbekistan has passed many Resolutions to align the National Legislation with the safeguards requirement of multilateral agencies. The policy framework for this project is based on Land Code of the Republic of Uzbekistan, 1998, Resolutions of Cabinet Ministers and ADB Safeguards Policy Statement. The policy framework describes the principles and approach in avoiding, minimizing and mitigating adverse social impacts that may arise in implementing the project. B. National Legislations, Policies and ADB Policy 57. The policy framework and entitlements for the project is based on national laws: Land Code of the Republic of Uzbekistan, 1998, the various Resolutions of the Cabinet of Ministers, and ADB’s Safeguard Policy Statement (SPS), 2009.

1. Land Code of Republic of Uzbekistan, 1998 58. The Land Code of Republic of Uzbekistan was adopted on 30 April 1998 and subsequently amended few times and the amended version as on 01 August 2019 describes the basic principles of land legislation, roles and responsibilities of various arms of the government in land regulation, land ownership, rights of individuals and legal entities with regard to land, powers and procedure to adopted in withdrawal/redemption of land and rights and obligations of land owner, land user and tenant. 59. Land is a State property, and individuals can have land plots on the right of lifelong inherited possession, permanent use, term (temporary) use and on lease, while legal entities can have land on the right of permanent ownership, permanent use, term (temporary) use and on rent. When transferring ownership, economic management rights or operational management rights to an enterprise, building, structure or other real estate, these objects also pass the right of ownership and permanent use of the land plot occupied by these objects and necessary for their use. When individuals transfer ownership (purchase, donation or inheritance, etc.) of a residential house, a garden house, along with the ownership of these buildings goes the right of lifelong inherited ownership of the entire land plot on which these buildings are located. 60. With regard to making land available for construction of industrial enterprises, railways and highways, communication lines and electricity transmission lines, trunk pipelines, as well as for other non-agricultural needs, non-agricultural land, either unsuitable for agriculture or agricultural land of inferior quality, is provided. Legal entities and individuals owning land in their possession and use and ownership pay for land. Payment for land is charged in the form of an annual land tax, the size of which is determined depending on the quality, location and water supply of the land plot. 61. The withdrawal of a land plot or its part for state and public needs is carried out with the consent of the landowner or in agreement with the land user and the tenant by decision of the Khokim of the district, city, region or decision of the Cabinet of Ministers of the Republic of Uzbekistan respectively. If the landowner, the land user and the tenant disagree with the decision of the Khokim of the district, city, region, or the decision of the Cabinet of Ministers of the Republic of Uzbekistan respectively, to withdraw the land plot, this decision may be appealed to the court. Thus, there exists an inbuilt grievance redress mechanism.

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62. Rights of landowner, land user, tenant and owner of a land plot include right for compensation of losses caused to him (including lost profits), in case of withdrawal of a land plot, or compensation of expenses in case of voluntary refusal of a land plot. Further, while defining the process of withdrawal/redemption for state or public needs of land plots provided to individuals, it is specified that it should be done after the Khokim of a district, city, region has allocated an equivalent land plot, constructed at a new place by enterprises, institutions and organizations for which land is allocated, production and other buildings to replace the seized and reimbursement in full of all other damages (including lost profits). 63. Further, the losses caused to landowners, land users, tenants and owners of land plots is to be reimbursed in full (including lost profits) when the state withdraws/redeems or takes land for temporary occupation.

2. Housing Code of Republic of Uzbekistan, 1998 64. The Housing code governs the relations of citizens, legal entities, government bodies and local government bodies with regard to origins, implementation, change and termination of the property right, right of ownership and use of residential premises; accounting of housing stock; ensuring safety, content and repair of housing stock; control of observance of housing laws of citizens and target use of housing stock. 65. The housing code apart from dwelling into the ownership of dwelling units, the responsibilities and modalities of transfer and rental, deals with withdrawal of land, wherein, in the event of demolition of residential buildings (apartments) owned by citizens in connection with the withdrawal of land plots for state or public needs, the owners of the property, at their choice and by agreement of the parties, shall be provided with another equivalent well-appointed residential space of an area not less than the social norm of the dwelling area. If in case the market value of building provided exceeds the market value of the demolished house (apartment) or the right to land, the difference is to be paid by the owner. 66. Further, in case of demolition of residential buildings (apartments) owned by citizens in connection with the withdrawal of land plots for state or public needs, alternate land plot is provided for individual housing construction within the established norm at their choice. In addition, temporary housing is provided on the terms of a tenancy agreement for the period of land development, for a period of up to three years, with reimbursement in full of the market value of demolished houses (apartments), buildings, structures, trees and crops, as well as the difference between the market value of land withdrawn and the land provided, where the market value of land withdrawn is greater than that of the land provided. 67. For citizens and legal entities whose houses (apartments) are to be demolished, equivalent residential houses and buildings are provided at their choice at the new place, and transferred to them as property. At the same time, payment of the monetary compensation for the market value of the structure taken down, as well as the difference between the market values of the land provided and the land being withdrawn, in case the market value of the land withdrawn is greater than the market value of the land provided, is made in full.

3. Civil Code of Republic of Uzbekistan, 1995 68. The civil code confirms the supremacy of international treaty or agreement over the civil code, as such if an international treaty or agreement establishes rules other than those stipulated by civil legislation, the rules of the international treaty and agreement would prevail.

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69. The code describes the bases for the origin of civil rights and duties arise from the bases provided by legislation and that property rights subject to state registration arise from the time of registration of the respective rights to the property, unless otherwise established by a Law. Similarly, the right of ownership and other rights in things to immovable things, their arising, passage, limitation and termination of these rights are subject to state registration. Fundamentally, the right to a property will stay only if it is registered under the State. 70. A person whose right has been violated may demand full compensation for the losses caused to him unless a Law or a contract provides for compensation for losses in a lesser amount. Losses means the expenses that the person whose right was violated made or must make to reinstate the right that was violated, the loss of or injury to his property (actual damage), and also income not received that this person would have received under the usual conditions of civil commence if his right had not been violated (forgone benefit). If the person who has violated a right has received income thereby, the person whose right has been violated has the right to demand along with other losses, compensation for forgone benefit in a measure not less than such income.

4. Labour Code and Employment Law 71. These two documents are main legislations regulating labor relations of individuals employed with labor contract by enterprises, institutions, organizations of all type ownership form, including contracted by individuals. These legislations are considering interests of employees and employers provide efficient function of labor market, just and secure labor conditions, protection of labor rights and employees health, promote to growth of labor productivity, increase of work quality, raising on this matter welfare and social livelihood level of the population.

5. Law on Automobile Roads 72. This law deals with the design, construction, reconstruction, repair, storage and exploitation of highways. Article 24 of the law stipulates the obligations of landowners, owners and users of land parcels adjacent to the highway. C. Resolutions of the Cabinet of Ministers 73. The resolutions passed by cabinet of ministers since May 2016 have made many amends to the Land Code provisions with regard to withdrawal/redemption of land and related compensation for losses to citizens and legal entities.

1. Resolution of Cabinet Ministers No. 97 dated 29 May 2006 74. This resolution deals with regulations that determine the procedure for withdrawal/redemption of a land plot or its part, as well as the procedure for calculating the amount of compensation to citizens and legal entities for demolished residential, industrial and other buildings, structures and trees and crops in connection with the withdrawal/redemption of land plots for state and public needs. 75. The resolution specifies the purpose for which land can be withdrawn/redeemed and demolition of residential, industrial and other buildings, structures and trees and crops can be done. Land can be withdrawn/redeemed for the needs of defence and state security, protected natural territories, the creation and functioning of free economic zones, fulfilment of obligations arising from international treaties, the discovery and development of mineral deposits, construction (reconstruction) of roads and railways, airports, airfields, air navigation facilities and aero technical centres, railway transport facilities, bridges, subways, tunnels, energy systems

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and power transmission lines, communication lines, space facilities, main pipelines, engineering and communication networks. 76. Payment of compensation in full as per market value to the owner is made mandator prior to demolition of structures in case of withdrawal/redemption of land plots. Khokimiyats of the respective districts are obliged to notify the owners of residential, industrial and other buildings, structures and plantings of the decision in writing for signature not later than six months before the demolition, with attachment to the notification of copies of the relevant decisions of the Council of Ministers of the Karakalpakstan region and the city of Tashkent on the withdrawal/redemption of land, demolition of residential, industrial and other buildings, structures and trees and crops located on the land plot. 77. The resolution in unambiguous terms states that self-willed residential, industrial and other buildings and structures shall not be reimbursed. In other words, non-titleholders or those without user right, are not reimbursed for the losses. 78. In case of withdrawal of seized land plots to enterprises, institutions and organizations, payment of reimbursements, provision of residential buildings (apartments) and provision of temporary housing, as well as covering all costs associated with moving to a new location, by decision of the Khokims of the respective districts (cities) are to be borne by these enterprises, institutions and organizations. 79. The withdrawal/redemption of land is provided with the following types of compensation: (i) providing citizens with the property of another equivalent well-appointed living space of an area not less than the social norm of the living space and paying the cost of trees and crops; (ii) payment to citizens of the market value of the demolished residential building, other buildings, structures and trees and crops, as well as compensation for losses caused to owners in connection with the withdrawal of the land plot; and (iii) providing citizens with a land plot for individual housing construction within the established norm with provision of temporary housing under the terms of a tenancy agreement for the period of land development, for a period of up to two years, with full reimbursement of the market value of demolished houses (apartments), buildings, structures and plantings losses caused to owners in connection with the withdrawal of the land. 80. The affected person does not have the right to salvage material as all materials from the dismantling of demolished houses (apartments), other buildings and structures (except for unauthorized construction) located in the land that is withdrawn, will remain at the disposal of the enterprise/institution for whom land is acquired and who pays for the cost of building. The owner of the structure has the right to salvage material on payment of the cost determined by the Khokims, allowing for depreciation.

2. Resolution of Cabinet Ministers No. 146 dated 25 May 2011 81. This resolution was promulgated to further improve the procedure for granting land plots, ensuring the protection of rights of legal entities and individuals to land, improving the architectural appearance of populated areas of the republic, optimal use of their development land in accordance with the Land Code and Town Planning Code of the Republic of Uzbekistan. Further, these regulations establish the procedure for determining the size and compensation of losses of owners, users, tenants and owners of land plots, as well as losses of agricultural and forestry production.

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82. The size of losses of owners, users, tenants and owners of land plots, as well as losses of agricultural and forestry production are determined by the State Research and Design Institute and its territorial divisions, branches of state enterprises of Land Management and Real Estate Cadastre of the Republic of Karakalpakstan, regions and the city of Tashkent in the respective districts. 83. Losses of owners, users, tenants and owners of land plots, as well as losses of agricultural and forestry production are reimbursed before the new owner, user and tenant is presented with documents certifying the right to a land plot. Further, owners, users, tenants and owners of land plots that are seized, and who are given land, in disagreement with certain amounts of losses and losses of agricultural and forestry production can go to court. 84. With regard to compensation for losses arising out of withdrawal, redemption or temporary occupation of land plots or their part, the value of the land, which is privately owned by legal entities and individuals; the cost of residential buildings, structures and structures, including facilities whose construction has not been completed, as well as those located outside the designated area, if their further use is impossible due to land acquisition; the cost of fruit, protective and other perennial plantations; the value of unfinished agricultural production; and lost profit, will be reimbursed. 85. However, unauthorised occupied land by persons are not entitled for the above listed compensation. 86. Estimation of the cost of residential houses, buildings and structures, including objects, the construction of which is not completed, as well as those located outside the designated area, if their further use is impossible due to land acquisition, is carried out by the Khokimiyats of the respective districts through a commission constituted with the deputy Khokim of the district as its head, consisting of representatives of financial and other departments of Khokimiyats, the state inspector for control over the use and protection of land, the self-government body of citizens, the landowner (land user, tenant) from whom land is withdrawn, representative of the enterprise, institution or organization which requires the land, and representatives of other competent bodies as required and as decided by the Khokimiyats. 87. Valuation of fruit bearing, fruit and berry plantations, as well as grafted trees and other perennial plantations is done to include the cost of seedlings and the cost of planting and growing them before the start of fruit bearing or closure of crowns at current prices during the assessment period. Valuation of non-fruit bearing, fruit-berry plantations, as well as grafted trees and other perennial plantations with uncrowned crown, is made according to the actual expenses incurred. 88. The cost of unfinished agricultural production, which includes the cost of consumed materials (seeds, mineral and organic fertilizers, toxic chemicals, herbicides, etc.) and work actually performed (preparing the soil for sowing, cleaning the irrigation and drainage network, sowing seeds, watering, processing agricultural crops, etc.), is accepted according to primary accounting documents. 89. The cost of lost profits of legal entities related to the seizure of land plots with the demolition of buildings and structures located on it is determined on the basis of the average annual income for the last three years taken from the financial activity report for the relevant years and the period required for recovery activities in the new location. The period required for

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the restoration of activities in the new location is the time for obtaining the land plot, the regulatory deadlines for the design and construction of the same facility to be demolished. 90. The size of lost profits when excluding land from agricultural production is defined as the sum of the average annual net income from the agricultural land excluded from the agricultural production multiplied by four years for which the design will be carried out, their irrigation and the development of new lands cultivation and other work to improve soil fertility. The amount of net income for one year is determined based on the average annual net income for the last 3 years per 1 hectare of agricultural land and multiplied by the area of agricultural land being withdrawn.

3. Resolution of Cabinet Ministers No. 3857 dated 17 July 2018 91. This resolution provides for certain measures for improving the efficiency of preparation and implementation of projects with the participation of international financial institutions and foreign government financial organizations. 92. The resolution provides for compensating for land and structure in accordance with the provisions of the international funding agencies. In Clause 2, it is specified that payment of compensation for the seizure of land, demolition of houses, other buildings, structures or plantings in the framework of projects with the participation of the International Financial Institutions (IFI) / Foreign Government Financial Organizations (FGFO), if provided for by project agreements, is carried out by authorized bodies in accordance with the requirements of the IFI / FGFO. 93. Further, the resolution deals with procurement procedures, process of entering into project agreements, identification of projects for financing, modalities of financing project preparatory activities, the procedure for conducting loan negotiations and signing of loan agreements, requirements and structure of project implementation units and its obligations and other matters related to procurement and project implementation.

4. Resolution of Cabinet Ministers No. 5495 dated 01 August 2018 94. This resolution provides for certain measures for further improving the investment climate, measures to stimulate the attraction of direct investments, strengthen investor confidence in the consistency of government policy in this direction and increase the responsibility of government agencies in working with investors. 95. The resolution stipulates that the affected person will have the right for prior information about withdrawal of land and its cost and other benefits entitled before a decision is made on the withdrawal of such land. 96. Further, payment for losses is to be made prior to dispossession of the assets and the resolution in clause 2 specifies that demolition of residential, industrial premises, other buildings and structures owned by individuals and legal entities when seizing land plots is allowed after a full refund of the market value of real estate and losses caused to owners in connection. 97. The resolution also provides for long lease of non-agricultural land for enterprise with foreign investment and simplified criteria for investment to encourage foreign investment.

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5. Resolution of Cabinet Ministers No. 342 dated 26 December 2011 98. The rules pronounced through a decision of the cabinet ministers deals with measures to ensure traffic safety on public highways and city streets of the Republic of Uzbekistan. The rules define the safety zone for public highways (the distance to the red line) based on the category of roads, wherein no development is permitted. D. ADB’s Safeguard Policy Statement (SPS), 2009 99. ADBs Safeguard Policy Statement (SPS) 2009 describes the policy objective, its scope and triggers and principles of (i) environmental safeguards; (ii) involuntary resettlement safeguards; and (iii) indigenous people’s safeguards. The objectives of involuntary resettlement safeguards are: (i) avoid involuntary resettlement where possible; (ii) if avoidance is not possible, minimize involuntary resettlement by exploring project and design alternatives; (iii) enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre project levels; and (iv) improve the standards of living of the displaced poor and other vulnerable groups. 100. The involuntary resettlement safeguards policy covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of; (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. 101. The three important elements of involuntary resettlement safeguards are: (i) compensation at replacement cost for lost assets, livelihood, and income prior to displacement; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to enhance, or at least restore, the livelihoods of all displaced persons relative to pre-project levels and to improve the standard of living of displaced poor and other vulnerable groups. E. Comparison of Government and ADB Policies 102. A comparison between Republic of Uzbekistan Legislations and ADB’s involuntary resettlement safeguards policy that provides gap-filling measures reflected in the entitlement matrix is presented as Appendix-6. The Land Code of Republic of Uzbekistan, 1998, recognizes only owners (those having lifelong inherited possession rights, permanent users, temporary users and on rent), affected by withdrawal/redemption of land by the State. Wherein, the non-titleholders (self-willed structures) are excluded from the purview of the legislation. 103. The key difference between the Republic of Uzbekistan and ADB’s involuntary resettlement safeguards policy is with regard to the cut-off date for determining the eligibility for compensation and R&R assistance to all those who are affected by the project irrespective of the ownership title to the land. To bring the policy framework of this project in line with ADB’s requirements, the LARP mandates that in the case of withdrawal of land from owners (those having lifelong inherited possession rights, permanent users, temporary users and on rent), the date of issue of notification by Khokimiyats will be treated as the cut-off date for owners, and for non-titleholders, whom the country legislation does not recognize, the cut-off date for eligibility and entitlement will be the start date of the project census survey. This project does not involve any non-titleholder per se but involves impact to a tenant who holds a license from the District Khokimiyat to run a business, but is not explicitly recognised as entitled person for assistance as per the country legislations. For this tenant category affected person, livelihood assistance is

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proposed in the entitlement matrix. Land Code and the resolutions provide for land for land, compensation for structure at market value to all owners. However, in the land code and the resolutions, there is no provision for livelihood assistance for loss of rental income as land for land is being provided. To bridge the gap, assistance has been provided in the entitlement matrix. 104. Significant developments in country legislation are: (i) the withdrawal of a land plot or its part for state and public needs is carried out with the consent of the landowner or in agreement with the land user and the tenant by decision of the Khokim of the district, and if the landowner, the land user and the tenant disagree with the decision of the Khokim of the district, this decision may be appealed to the court; (ii) Khokimiyats of the respective districts are obliged to notify the owners of residential, industrial and other buildings, structures and plantings of the decision in writing for signature not later than six months before the demolition; and (iii) payment of compensation in full as per market value to the owner, prior to demolition of structures in case of withdrawal/redemption of land plots, is made mandatory. F. Involuntary Resettlement Safeguard Principles for the Project 105. Based on the above analysis of provisions of Republic of Uzbekistan legislations and ADB policy, the following resettlement principles are adopted for this Project:

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

(ii) Adopt measures to avoid and minimize involuntary resettlement impacts by taking the following measures: (i) explore siting the project components in government land or locations which are less impacting; (ii) ensure use of appropriate technology to reduce land requirement; and (iii) modify the designs of project components to minimise land requirement and ensure involuntary resettlement is avoided or minimized.

(iii) Where displacement is unavoidable, improve, or at least restore, the livelihoods of all displaced persons through: (i) land-based resettlement strategies, where possible, when affected livelihoods are land based, and when loss of land is significant, or cash compensation at replacement cost for land when the loss of land does not undermine livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; and (iii) prompt compensation at full replacement cost for assets that cannot be restored.

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

(v) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets at replacement value.

(vi) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to country minimum standards or standard before displacement whichever is higher.

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(vii) Carry out meaningful consultations with displaced persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those low-income families, the landless, the elderly, women and children, and indigenous peoples, and those without right to use the land, and ensure their participation in consultations.

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

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

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

(xi) Establish a grievance redress mechanism to receive and facilitate resolution of the concerns of displaced persons.

(xii) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement18to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

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

G. Valuation of land and assets 106. Compensation for Land: Compensation for acquisition of the land used for commercial purpose will be provided “land for land”, by the Kungrad District Khokimiyat following assessment of the land. Such land will be of equal value/productivity in a nearby location and with comparable associated services/facilities. The unviable, unaffected portions of a plot will also be treated as acquired land.

107. Compensation for Structures: The affected building is a registered structure with the Kungrad Khokimiyat and will be compensated at replacement cost (market value) and if the impact is partial, compensation for the full structure will be paid as the SRC does not recommend presence of structures close to the carriageway.

18 ADB SPS 2009 (Safeguards Requirements 2) does not apply to negotiated settlements. The policy encourages

acquisition of land and other assets through a negotiated settlement wherever possible, based on meaningful consultation with affected persons, including those without title to assets. A negotiated settlement will offer adequate and fair price for land and/or other assets. Also, an independent external party will be engaged to document the negotiation and settlement processes. In cases where the failure of negotiations would result in expropriation through eminent domain or the buyer could acquire the property regardless of its owner’s decision to sell it or not, will trigger ADB’s involuntary resettlement policy. The Safeguard Requirements 2 will apply in such cases, including preparing a resettlement plan.

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108. Compensation for Trees: There are no trees affected in this project.

109. Even after payment of compensation, the affected person would be allowed to take away the materials salvaged from the dismantled commercial structure and no charges will be levied upon for the same. A notice to that effect will be issued intimating that affected person can take away the materials so salvaged within 15 days of the demolition; otherwise, the same will be disposed by the project authority without giving any further notice.

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VI. ENTITLEMENTS, ASSISTANCE AND BENEFITS

A. Introduction 110. The project will have two types of displaced persons i.e. (i) persons with formal legal rights to land lost in its entirety or in part; and (ii) persons who have neither formal legal rights nor recognized or recognizable claims to such land. The involuntary resettlement requirements apply to all these two types of affected persons. B. Eligibility Criteria 111. In accordance with the involuntary resettlement safeguard principles of the project, the affected persons falling in any of the following two categories will be eligible for compensation and resettlement assistance:

(i) affected person having formal legal rights to land lost in its entirety or in part; and (ii) tenant registered under the Khokimiyat

112. Cut-off Date: For owner having formal legal rights, the cut-off date will be date of notification of the intended withdrawal of land by the Kungrad Khokimiyat and for the tenant, the start date of project census survey (19 March 2019) for the project will be the cut-off date. There will be adequate notification of cut-off date and measures will be taken to prevent encroachments/squatting after the cut-off date is established. 113. Non-title holders 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 (60 days) to vacate the premises and dismantle affected structures prior to project implementation. C. Entitlement Matrix 114. In accordance with the rehabilitation and resettlement measures suggested for the project, all affected families and persons will be entitled to a combination of compensation packages and resettlement assistance depending on the nature of ownership rights on lost assets and scope of the impacts including socio-economic vulnerability of the displaced persons and measures to support livelihood restoration if livelihood impacts are envisaged. Unforeseen impacts will be mitigated in accordance with the involuntary resettlement safeguard principles of the LARP for this project. 115. An Entitlement Matrix has been developed, that summarizes the types of losses and the corresponding nature and scope of entitlements; and is in compliance with legislations of Republic of Uzbekistan and ADB SPS.

Table 13: Entitlement Matrix SNo Impact Category Entitlements Implementation Guidelines

Impact on Land (Withdrawal of Land by State) 1 Loss of Land

(commercial)

Land for Land Land will be of equal value / productivity in a nearby location and with comparable associated services / facilities. Khokimiyat of Kungrad district will notify the owners of commercial building, of the decision of withdrawal / redemption

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SNo Impact Category Entitlements Implementation Guidelines by State in writing for signature not later than six months before the demolition

Impact on Structure (Withdrawal of Land by State) 2 Loss of Structure

(commercial) Compensation at replacement cost

The estimation of the market value of structures will be carried out by the Khokimiyat of Kungrad district through a commission constituted with the deputy Khokim of the district as its head Costs associated with the valuation of the structure will be borne by the project

Right to salvage affected material

The structure owner will have the right to salvage the affected material from the demolished structure at no cost to the structure owner

Impact to Income and Livelihood 3 Rental Income to the

building owner Onetime assistance of three months rental income as livelihood assistance

The average monthly rental received from the affected structure based on the preceding 12-months rental received will be the basis for computing 3-month rental assistance

4 Loss of business income to the commercial tenant

One time assistance of 1-year income as livelihood assistance

If income proof is available, then the average annual income from the preceding 3-year income will be treated as the annual income for computing 1-year income loss. If income proof is not available, then the latest per capita monthly minimum wages will be multiplied by the number of family members and used to compute annual income of the family (per capita monthly minimum wages x number of persons in the family x 12 months)

Temporary Impacts 5 Temporary disruption

to business during utility shifting

Livelihood assistance for actual number of days of disruption to livelihood

Livelihood assistance for income loss shall be based on average income deduced from tax or income return document or latest applicable minimum wage rate, if record of income is not available,

Relocation Assistance 6 Relocation

assistance to the building owner and the commercial tenant

One time relocation assistance of three months minimum wages

In line with Clause 7 of the Resolution of the Cabinet Ministers Number 97 dated 29 May 2006, provision of all costs associated with moving to a new location or The latest per capita monthly minimum wages will be multiplied by 3 (for 3 months) and paid towards transportation/shifting expenses.

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SNo Impact Category Entitlements Implementation Guidelines Assistance to Vulnerable Families

7 One time additional assistance to vulnerable families

One time additional assistance of three months minimum wages as vulnerable assistance to vulnerable families who are physically/economically displaced

The latest per capita monthly minimum wages will be multiplied by 3 (for 3 months) and paid to all vulnerable families

Unforeseen Impacts Unforeseen impacts encountered during implementation will be addressed in accordance with the principles of legislations of Republic of Uzbekistan and the ADB Safeguard Policy Statement 116. Compensation for land and structure, in accordance with the eligibility and entitlement, will be paid prior to economic displacement. One-time livelihood assistances and relocation assistances paid as cash will also be disbursed prior to economic displacement.

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VII. RELOCATION OF HOUSING AND SETTLEMENTS

117. The project does not involve any physical relocation and hence the question of relocation of housing and settlements does not arise.

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VIII. INCOME RESTORATION AND REHABILITATION

A. Loss of Livelihood in this Project 118. The project causes significant impact to 2-affected families comprising of 1-structure owner who would be losing the rental income derived from the affected structure and 1-commercial tenant, who would be losing the business income derived from the affected structure. B. Entitlements for Loss of Livelihood 119. The affected persons losing livelihood will be assisted to improve or at least restore their income levels to pre-project level. The project entitlements for loss of livelihood include the following entitlements in accordance with the entitlement matrix of this project.

i) Loss of livelihood to owner of the structure a. cash compensation at replacement cost (market cost) for affected structure as per

estimation of Khokimiyat of Kungrad district; b. onetime assistance of three months rental income as livelihood assistance; c. right to salvage affected materials, d. one-time relocation assistance of three months minimum wages.

ii) Loss of livelihood to owner of the business

a. one-time assistance of 1-year income as livelihood assistance; and b. one-time relocation assistance of three months minimum wages.

iii) Temporary disruption to business

a. assistance for number of days of disruption to livelihood 120. Effort will be made by the PIU with the support of the Khokimiyat to assist the affected persons in their effort to restore their income by lining them to government livelihood programme. C. Income Restoration Measures 121. Towards the restoration of livelihood of the commercial tenant losing business income, in addition to the entitlements proposed under this project, the project will provide a built shop in Karakalpakstan from the shops proposed under the Gender and Community Development Plan (GCDP) component of the project. The tenant being a woman, will be eligible for allocation of a shop earmarked for women under the GCDP and with the experience of managing a restaurant, will be able to operate a restaurant efficiently. Further, the skill development training proposed under GCDP will enhance the ability of the woman to manage the affairs of the business.

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IX. RESETTLEMENT BUDGET AND FINANCING PLAN

A. Introduction 122. The resettlement cost estimate for the project road Kungrad to Daut-Ata section of A380 proposed under Third CAREC Corridor Road Investment Program, include compensation payable to Republic of Karakalpakstan for the land being withdrawn/redeemed by the State and valley and other land plots not used in agriculture, determined by the Kungrad District Khokimiyat in accordance with the Land Code of Republic of Uzbekistan. 123. The compensation for structures is at replacement cost (market value) without depreciation, resettlement and rehabilitation assistances to owners (titleholders) in accordance with the legislations of Republic of Uzbekistan and to non-titleholders in accordance with the provisions of the entitlement matrix of this LARP and cost of RP implementation. The total resettlement cost for the project is 907.09 million UZS. The major heads of budget items are listed below. B. Compensation 124. Land: The compensation for land has been calculated by the Kungrad District Khokimiyat in accordance with Article 6, 20, 23, 36 and 87 of the Land Code of Republic of Uzbekistan, based on the request letter from Road Design Bureau, LLS, General Design Institute19 (Appendix 7) and approved vide a Resolution of Khokim of Kungrad District. An amount of 71,121,120 UZS is payable to the Department of Land Resources and State Cadastre of the Republic of Karakalpakstan towards the land cost. 125. Structure: The compensation for structures have been arrived at based on the market rate arrived at by Department of Land Resources and State Cadastre, Kungrad District of the Republic of Karakalpakstan for building works, material and labour. For budgetary purpose, the replacement cost for structure without depreciation has been taken as 6,000,000 UZS per square meter (Appendix 8). However, detailed valuation will be done by the department prior to making payment and the valuation report, if any, received from the affected person obtained from an independent valuer will also be considered. Both the valuation reports will be placed before the commission constituted with the deputy Khokim of the district as its head for finalising the market value of the affected building and if the independent valuer report provides for higher compensation than that of the department valuation, then the independent valuer report will be considered for payment of compensation, after due scrutiny. C. Assistances 126. The rehabilitation and resettlement assistances that are based on monthly minimum wages is as per the November 2018 order of the President of Republic of Uzbekistan, “About increase of wages, pensions, stipends and social allowances”. The minimum wages stipulated vide the order is 202,730 UZS. With regard to loss of rental income, the actual rental received has been adopted. D. RP Implementation Cost 127. A budgetary provision for meeting administrative expenses including the allocation towards grievance redressal mechanism related expenses and disclosure related expenses are included as part of the project cost. Further, the staff training, in particular the PMU, PIU and

19 Letter No.1641/11 from Road Design Bureau, LLS, General Design Institute, dated 31.10.2016

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Khokimiyat staff involved in resettlement plan implementation, has been provided under the supervision consultants scope. E. Source of Funding and Fund Flow 128. The Ministry of Finance, Republic of Uzbekistan will provide adequate budget for all land acquisition compensation, rehabilitation and resettlement assistances and resettlement plan implementation costs as budgetary allocation. The funds as estimated in the budget for a financial year and additional fund required based on revised estimates, shall be available at the disposal of the Project Director, Project Management Unit, State Road Committee, at the beginning of the financial year. The PD, PMU, being the executing agency for this project, will provide necessary funds for compensation for land and structure and the cost of resettlement assistances in a timely manner to the Kungrad District Khokimiyat. The PMU will ensure timely availability of funds for smooth implementation of the resettlement plan. The PIU (Kungrad unit of the PMU, State Road Committee), will facilitate disbursements through the Kungrad District Khokimiyat, but the responsibility of ensuring full and timely payment to displaced persons will be that of PMU. F. Resettlement Budget Estimates 129. The budget for this project is based on data and information collected during census and socio-economic surveys conducted in March 2019. The unit rates for structure has been worked out from the details provided by the Department of Land Resources and State Cadastre, Kungrad District. The total budget for Kungrad and Daut-Ata section of A380 is estimated at 907.09 million UZS. Further, the project will provide additional budget, as required, to meet the additional structure compensation that may arise due to the independent valuer’s valuation of the structure, if it is higher than the valuation of cadastral department.

Table 14: Budget Estimate Item Input Unit Rate Quantity Amount in

UZS Compensation Land Cost ha - 313.1820 71,121,120 Permanent Structures Sq.m 6,000,000 123 738,000,000 R&R Assistance One time rental assistance to owner One Time 1,110,000 1 1,110,000 One time livelihood assistance to commercial tenant One Time 12,163,80021 1 12,163,800

Relocation assistance for owner and commercial tenant One Time 608 190 2 1,216,380

Provisional sum towards livelihood assistance for temporary disruption to livelihood

LS 1,013,65022 1 1,013,650

20 If the land that Khokiyamat has committed to make available for the project to build 2-training centres (at Jaslik and Karakalpakstan), involves any additional cost, the same will be made available by the project. 21 Per capita monthly minimum wages for November 2018 is 202 730 UZS and the same for a family of 5 members for 1-year (202 730 x 5 members x 12 months) 22 Per capita monthly minimum wages for November 2018 is 202 730 UZS and the same for a family of 5 members for 1-month (202 730 x 5 members x 1 months) is provided

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Item Input Unit Rate Quantity Amount in UZS

Administrative Cost Disclosure Expenses23 LS - - - Training for PIU and PMU Staff24 LS - - -

Sub total 824,624,950 10 % Contingency 82,462,495

Total 907,087,445 Total in UZS Million 907.09

23 Provided under project cost 24 Included in the scope of the supervision consultant

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X. GRIEVANCE REDRESSAL MECHANISM

A. Grievance Redressal Committee 130. Grievance Redressal Committee (GRC) will be established at two-levels, one at the Project Implementation Unit (PIU) level and second at PMU level. The GRC will be in place immediately after the project is approved. The GRC will receive, evaluate and facilitate the resolution of affected persons concerns, complaints and grievances. GRC will provide an opportunity to the affected persons to have their grievances redressed prior to approaching the Court of Law. GRC is aimed to provide a trusted way to voice and resolve concerns linked to the project and to be an effective way to address affected persons concerns without allowing it to escalate resulting in delays in project implementation. 131. The GRC will aim to provide a time-bound and transparent mechanism to voice and resolve social and environmental concerns linked to the project. The GRC is not intended to bypass the government’s inbuilt redressal process, nor the provisions of the statute, but rather it is intended to address displaced persons concerns and complaints promptly, making it readily accessible to all segments of the displaced persons and is scaled to the risks and impacts of the project. 132. The project resettlement plan provides for entitlements for the various types of losses corresponding to the tenure and an institutional mechanism to disburse compensation and rehabilitation and resettlement assistances. A consultations and disclosure plan is also provided for meaningful consultations and timely disclosure. The GRC is expected to resolve the grievances of the affected persons arising in the implementation of the project resettlement plan in a transparent and timely manner. The decision of the GRCs will be final unless vacated by the court. 133. The GRC will continue to function, for the benefit of the affected persons, during the entire life of the project including the defects liability period. The response time prescribed for the GRCs would be six weeks. Since the entire resettlement component of the project has to be completed before the construction starts, to resolve the pending grievances, the GRC, at PIU and PMU level, will meet at least once every month in the first year of resettlement plan implementation and as and when required thereafter. GRC will review grievances involving eligibility, valuation, resettlement and rehabilitation entitlements, relocation and payment of assistances. 134. First Level GRC: First level GRC will be a single contact point with the jurisdictional Road Engineer, PIU, Kungrad and the Khokim of Kungrad District. Aggrieved persons can contact either of them and they will be responsible for receiving, hearing and resolving the grievances. 135. Second Level GRC: Second level GRC will be a 3 member committee at PMU, chaired by Project Director, PMU, Safeguards Officer, PMU acting as its member secretary and the Road Engineer, PMU.

B. Functions of GRC 136. Field Level Complaint Handling System: The Road Engineer, PIU or the Khokim of Kungrad District, will hear grievances at least once in a month in the respective offices in Kungrad. Petitions received from affected persons or any person, of any concerns or complaints

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or grievances will be taken up. The PIU will maintain a register of all grievances received with details of date of receipt of the grievance, date of hearing, if any, along with nature of complaint/concern, action taken and date of communication sent to the complainant. Communication, in writing will be sent to the aggrieved person about the date, time and venue of the hearing and make it known that s/he is entitled for a personal hearing. 137. Decision of the PIU will be final unless an appeal is preferred to the 2nd level GRC at PMU. The complaint/concern will be redressed in 6-weeks’ time and written communication will be sent to the complainant about the decision taken. If the complainant is not satisfied with the decision of the PMU, s/he will have the right to approach the court of law. 138. Republic of Uzbekistan’s Complaint Handling System: 139. In addition to the project level grievance redressal mechanism, affected persons can submit their grievances through the Virtual reception of the President of the Republic of Uzbekistan, that contributes to the unquestioning implementation of the constitutional rights of citizens to appeal to the President of the Republic of Uzbekistan. Through this information system, any persons can send their applications, suggestions and complaints to the President of the Republic of Uzbekistan. 140. The online portal25 provides contact details of the persons of various agencies and state committees and the days and time at which they are available to resolve grievances, with an option of sending the grievance through an email also. The portal has provisions for checking the status of the grievance and further appeal if the appellant has been harassed for raising the grievance. 141. The Law of the Republic of Uzbekistan on the Appeals of Individuals and Legal Entities was introduced on 29 October 2014 and this law replaced the earlier law on Appeal of Citizens that was introduced on 13 December 2012. This law guarantees the right to appeal and prescribes the requirements of an appeal, its form and structure. Further, the timeline for addressing the appeal, the procedure for personal hearing, need for maintaining record of appeals and procedure for second appeal are prescribed. 142. Documentation of Grievances: The complaint / grievance will be redressed in 6-weeks’ time and written communication will be sent to the complainant. A complaint register will be maintained both at PIU and PMU, with details of complaint lodged, date of personal hearing, action taken and date of communication sent to complainant. Further, all stakeholders will have access to ADB’s Accountability Mechanism26, however, they are expected to exhaust the project level grievance mechanism and the republics inbuild grievance system before writing to the banks complaint resolution mechanism.

25 https://pm.gov.uz/ru#/map_app_root 26https://www.adb.org/contact?target=Hmzj1lzfKqMSRDKA0C6/kg==&name=Complaint%20Receiving%20Officer&referrer=node/81970

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XI. INSTITUTIONAL ARRANGEMENT AND IMPLEMENTATION

A. Project Management Unit 143. The Project Director, Project Management Unit, State Road Committee, will be overall in charge of coordination between the Project Implementation Unit (PIU) and the Khokimiyat of Kungrad District for social safeguards compliance. 144. The officer designated as Social Safeguards Officer (SSO) at the PMU level will be responsible for assisting Project Director, the PIU and the Kungrad Khokimiyat in the resettlement plan implementation and ensure that project complies with the involuntary resettlement safeguard principles of the resettlement plan. 145. The Social Safeguards Officer (SSO) at the PMU will have the following responsibilities:

(i) will assess the capacity of the PIU in identifying and managing social safeguard issues and facilitate capacity building of PIU officers and Kungrad Khokimiyat through the supervision consultants;

(ii) will facilitate coordination between various government departments in withdrawal/redemption of land and implementation of the resettlement plan;

(iii) will carry out periodic review of the progress on resettlement plan implementation and ensure that the progress reports are submitted in a timely manner;

(iv) will carry out concurrent internal monitoring of resettlement plan implementation; (v) will verify whether all payments are made prior to the PIU hands over the land to

the contractor; and (vi) will prepare and submit semi-annual social monitoring reports to ADB for

disclosure in the ADB website, and submit any other information with respect to resettlement as required by ADB in a timely manner.

B. Project Implementation Unit 146. There will be a PIU established at Kungrad by the State Road Committee and will be under the direct control of the Project Director, PMU. The PIU will be responsible for the implementation of the project and the jurisdictional road engineer will be vested with the responsibility of overseeing the implementation of the resettlement plan with the assistance of the Kungrad Khokimiyat. 147. The following will be the responsibility of the road engineer, PIU:

(i) coordinate with Kungrad Khokimiyat and ensure timely allocation of land for land to the affected person;

(ii) ensure timely disbursement of affected persons entitlements, as per the eligibility and entitlement contained in the resettlement plan;

(iii) obtain necessary approval for the disbursement of compensation and assistances from PMU and make necessary funds available to the Khokimiyat for timely disbursement;

(iv) assist the affected persons in resolving their grievances; and (v) report progress in resettlement plan implementation to the SSO at PMU

fortnightly and submit monthly progress report to PMU. C. Project Supervision Consultants 148. The project supervision consultant (PSC) will assist PMU to monitor the implementation of safeguards in accordance with ADB’s Safeguard Policy Statement (2009). PSC will have a

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safeguard specialist (social and gender) who will be responsible to ensure that implementation of the Resettlement Plan is in accordance with ADB's Safeguard Policy Statement (SPS) (2009) and other related policies such as the Public Communications Policy (2011). Specifically, the specialist will ensure that PMU hands over sites to the contractor only after affected persons have received compensation and assistances. The specialist will provide monthly and quarterly reports to Project Director, PMU on resettlement implementation. The specialist will be responsible for providing training on safeguards to the officials of PMU, PIU and the Khokimiyat and Cadastral department of Kungrad District. D. Capacity Building 149. The officials of PMU, PIU and the Khokimiyat and Cadastral department of Kungrad District, who are involved in the project, withdrawal/redemption of land and rehabilitation and resettlement will require to be familiar with Republic of Uzbekistan’s procedures of withdrawal/redemption of land and ADB’s Social Safeguards policy requirements. In order to build the capacity of the PMU, PIU and the Khokimiyat and Cadastral department of Kungrad District, an orientation and training in resettlement management at the beginning of the project will be undertaken and will be repeated every quarter with sessions on sharing of field experience in implementation. The training activities will focus on issues concerning (i) principles and procedures of land withdrawal/redemption, (ii) public consultation and participation, (iii) eligibility and entitlement; (iv) entitlements and compensation disbursement mechanisms, (v) Grievance redressal, and (v) internal monitoring of resettlement operation. The project supervision consultants will be responsible in providing these trainings and adequate budgetary provision has been made for the same.

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XII. IMPLEMENTATION SCHEDULE

A. Introduction 150. Implementation of resettlement plan mainly consists of providing land for land, compensation to be paid for private structure, assistance for loss of livelihood resulting in economic displacement, and relocation assistance. Consultations, monitoring and grievance redressal will be an ongoing process throughout the resettlement plan implementation period but will happen intermittently. B. Schedule for Project Implementation 151. The proposed resettlement plan implementation activities are divided into three broad phases viz. project preparation phase, resettlement plan implementation phase, and monitoring and reporting phase, and the activities envisaged in each phase is discussed below. 152. Project Preparatory Phase: The activities to be performed in this phase include: (i) designating or appointing an officer/staff as social safeguards in PMU to be in charge of (social) safeguards; (ii) submission of resettlement plan to ADB for approval; (iii) disclosure of the approved resettlement plan; and (iv) establishment of the project level GRC. The information dissemination and stakeholder consultations will commence in this stage and continue till the end of the project. 153. Resettlement Plan Implementation Phase: In this phase, key activities will be carried out including: (i) verification of records of the affected persons and issue of notification; (ii) hiring of an independent valuer; (iii) valuation of structure including obtaining valuation report from an independent valuer; (iii) submission of updated resettlement plan to ADB for approval; (iv) disclosure of the approved updated resettlement plan; (v) identification and provision of alternate land; (vi) payment of compensation for structure; (vii) payment of other assistances; and (viii) issuing site clearance certificate to enable commencement of civil works. 154. Monitoring and Reporting Phase: Internal monitoring will commence as soon as resettlement plan implementation begins and continue till end of resettlement plan implementation. C. RP Implementation Schedule 155. An implementation schedule for land withdrawal/redemption, payment of compensation and resettlement and rehabilitation activities in the project including various sub tasks and time line matching with civil work schedule is provided in the work plan. The following are the key implementation activities that are presented in the work plan.

(i) Designating an officer at PMU as social safeguards officer; (ii) Approval of resettlement plan and disclosure; (iii) Constitution and notification of GRCs; (iv) Verification of affected persons and intimating to affected persons; (v) Provision of land for land; (vi) Hiring of independent valuer for structure valuation; (vii) Structure valuation by the independent valuer and the cadastral department; (viii) Updation of the resettlement and submission to ADB for approval; (ix) Disclosure of updated resettlement plan; (x) Disbursement of structure compensation; (xi) Payment of rehabilitation and resettlement assistance;

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(xii) Certification of payment of structure compensation, land allocation and rehabilitation and resettlement assistances; and

(xiii) Award of contract.

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RP Implementation Work Plan

Tasks Workplan in Months

M-1 M-2 M-3 M-4 M-5 M-6 M-7 M-8 M-9 M-10

Designating an Officer as Social Safeguards Office

Approval of resettlement plan and Disclosure

GRC formation

Verification of affected persons and issue notification

Provision of land for land

Hiring of an independent valuer

Structure Valuation (by Independent Valuer and by Cadastral Department)

Updation of resettlement plan and submission to ADB for approval

Disclosure of approved updated resettlement plan

Submission of proposal for payment of R&R assistances to PMU for approval and funds

Transfer of funds from PMU to Khokimiyat

Disbursement of Structure compensation

Payment of R&R assistances

Certification of full payment

Award of Contract

Handing over of land to contractor

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XIII. MONITORING AND REPORTING

A. Introduction 156. The objective of monitoring is to provide the Project Management Unit (PMU) with an effective tool for assessing rehabilitation progress, identifying potential difficulties and problems areas and provide an early warning system for areas that need correction. Continuous supervision and periodic monitoring are an integral part of successful implementation. Monitoring is a warning system for project managers and a channel for the affected persons to express their needs and reactions to the programme. B. Internal Monitoring 157. The PMU will carry out concurrent monitoring of resettlement plan implementation through the Social Safeguards Officer (SSO), PMU and prepare monthly and quarterly progress report in terms of physical and financial progress. In addition, the monitoring process will also look into: the communication and reactions of affected persons; use of grievance procedures; information dissemination to affected persons on benefits; and implementation time table. The monthly internal monitoring reports based on the outcome of consultations and feedback with affected persons who have received assistance and compensation and review of progress of other implementation activates including complains/concerns/issues raised by the affected persons, will be submitted to Project Director, PMU by the end of 1st week of the subsequent calendar month. The progress report will be reviewed by the Project Director, PMU and comments if any, will be communicated to PIU for immediate action. C. Semiannual Reporting 158. The Social Safeguards Officer (SSO), PMU will prepare and submit semi-annual social monitoring reports to Project Director, PMU for review and onward transmission to ADB for disclosure in the ADB website.

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Appendix 1: Typical Cross Section of the Project Road

Typical cross section applied for new construction

Typical cross section applied on existing earth road fill.

Project End

Project Start

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Typical cross section applied on existing road

Typical cross section applied on police check post.

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Typical cross section applied on boarder check post

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Appendix 2: Copy of Resolution of the Khokim of Kungrad District dated 08.02.2017

Кунгратский район; Kungrad district; О возвращении одной части земельных участков Кунгратского государственного лесного охотничьего хозяйства Государственному земельному фонду и о выборе, о выделении для постоянного пользования земельных площадей для строительства и для выполнения ремонтных работ автомобильной дороги на промежутке 964,0-1204,0 км автодороги А-380 “Гузар-Бухара-Нукус-Бейнеу” ремонтно-эксплуатационному предприятию, основанному на ремонте автомобильных дорог Северо-Западного международного и государственного значения.

About the returning part of the Kungrad State Forestry to the State land fund and selection, allocation of lands for permanent use for constructing and performing repair works of motorway roads on the interval 964.0-1204.0 km of the A-380 “Guzar -Bukhara-Nukus-Beyneu " to the repair and service enterprise, based on the repairing highways of the North-West international and national importance.

Рассмотрев Акт комиссии, рассматривающей вопросы по владению районными земельными площадями, эксплуатацией, сдачей в аренду, по выбору, выделению и возвращению земельных участков от 19 декабря 2016 года, на основе статей 6,20, 23,36 и 87 Земельного кодекса Республики Узбекистан, письма Главного проектного института ООО “YO`L-LOYIHA BYUROSI" №1641/11 от 31.10.2016 г., Постановления Президента Республики Узбекистан №ПП-2313 от 6.03.2015 г. о «Программе развития и модернизации в 2015-2019 гг. инженерных коммуникаций, дорожно-транспортных инфраструктур», итога договора от 14.12.2016 г. Кунгратского государственного лесного охотничьего хозяйства о возвращении одной части земельных площадей государственному земельному фонду, Постановления Кабинета Министров Республики Узбекистан №317 от 21.09.2016 г. о внесении изменений в приложение №2 «Закона о порядке покрытия ущерба, нанесенного владельцам земельных участков, пользователям, арендаторам и имущественникам, а также урону, нанесенному сельскому хозяйству и лесному хозяйству», утвержденного Постановлением Кабинета Министров Узбекистана №146 от 25.05.2011 г., Постановляю:

Having considered the Act of the Commission, which considers issues on the posession of district land areas, operation, rent, choice, allocation and return of land plots from 19.12.2016, on the basis of articles 6,20, 23,36 and 87 of the Land Code of the Republic of Uzbekistan, letters of The Main Design Institute LLC “YO`L-LOYIHA BYUROSI" No. 1641/11 from 31.10.2016, Resolution of the President of the Republic of Uzbekistan No. PP-2313 dated on March 6, 2015 on the “Development and Modernization Program of engineering communications, road and transport infrastructures in 2015-2019 ", the results of the contract from 14.12.2016 Kungrad State Forestry on the return one part of land to the State land fund, Regulation of the Cabinet of Ministers of the Republic of Uzbekistan No. 317 from 09/21/2016 about making changes in Appendix No. 2 of the Law on the Order for Covering Damage to land owners, users, tenants and property owners, as well as damage to agriculture and forestry ”, approved by the Regulation of the Cabinet of Ministers of Uzbekistan No. 146 from May 25, 2011, I decree:

1. Утвердить Акт комиссии, рассматривающей вопросы по владению районными земельными площадями, эксплуатацией, сдачей в аренду, по выбору, выделению и возвращению земельных участков от 19 декабря 2016 года и итога договора от 14.12.2016 г. Кунгратского государственного лесного охотничьего хозяйства о возвращении одной части земельных площадей государственному земельному фонду.

1. To approve the Act of the Commission considering the ownership of district land areas, operation, rent, choice, allocation and return of land plots from 19.12. 2016 and the results of the contract from 14.12.2016 on the return of one part of the Kungrad State forestry to the State land fund.

2. Выбрать, а также выделить для постоянного пользования земельные участки, которые возвращаются Государственному земельному фонду для выполнения работ по строительству и ремонту автомобильной дороги на

2. Select, as well as allocate for permanent use land plots that are returned to the State land fund for the construction and repair of the highway in the interval 964.0-1204.0 km of the A-380 “Guzar-Bukhara-Nukus-Beyneu”

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промежутке 964,0-1204,0 км автодороги А-380 “Гузар-Бухара-Нукус-Бейнеу” ремонтно-эксплуатационному предприятию, основанному на ремонте автомобильных дорог Северо-Западного международного и государственного значения; общая площадь одной части земельных площадей Кунгратского государственного лесного охотничьего хозяйства составляет 772,8 га (ширина 32,2 м длина 240000 м =общая площадь 7728000 м2) из них: 292,8 га долины и 480,0 га другие земельные участки, не используемые в сельском хозяйстве.

highway to the repair-operational enterprise based on the repairing highways of the North-West international and national importance; the total area of one part of the land area of Kungrad State Forestry is 772.8 hectares (width 32.2 m, length 240000 m = total area is 7728000 m2) from which: 292.8 hectares of the valley and 480.0 hectares other land plots not used in agriculture

3. Перевести на расчётный лист 23402000300100001010 ИНН:201122919, МФО:00014 Центрального Банка города Ташкента Управления Казначейства Министерства финанасов Республики Узбекистан, на личный расчётный счёт Управления Земельных ресурсов и государственного кадастра Республики Каракалпакстан ИНН:200358284 № 401021860354017950100186001 общую сумму-71121120 (Семьдесят один миллион сто двадцать одна тысяча сто двадцать) сум для покрытия ущерба, нанесённого хозяйству аула на земельных участках долин 292,8 га (292,8 га х 242900 сум= 71121120 сум) Республиканскому Дорожному фонду при Министерстве финансов Республики Узбекистан после полного оформления документов для выделения земель для земельных участков, выделяемых под пастбища на основе статьи № 87 Земельного кодекса Республики Узбекистан и на основе требований Постановления Кабинета Министров Республики Узбекистан № 317 от 21.09.2016 г.

3. To transfer to the payment sheet 23402000300100001010 ITN: 201122919, MFO: 00014 Central Bank of the Tashkent the Treasury Department of the Ministry of Finance of the Republic of Uzbekistan, to the personal payment account of the Department of Land resources and the State Cadastre of the Republic of Karakalpakstan ITN: 200358284 No. 401021860354017950100186001 total amount - 71121120 (seventy one million one hundred twenty one thousand one hundred twenty) soums to cover damage caused to the aul’s economy on land plots of valleys 292.8 ha (292.8 ha x 242900 soum = 71121120 soum) to the Republican Road Fund under the Ministry of finance of the Republic of Uzbekistan after the complete execution of documents for the allocation of land for pasture on the basis of article No. 87 of the Land Code of the Republic of Uzbekistan and based on the requirements of Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 317 of 09.21.2016.

4. После окончания работ по строительству и ремонту автомобильной дороги предприятие, осуществляющее дорожно-строительные работы обязано за свой счёт привести в порядок сети газоснабжения, электросети, кабели связи, канавы и другие коммуникационные сети с обоих сторон дороги.

4. After completion of the construction and repair of a highway the enterptise that makes road-construction works must put in order the gas supplying, electricity, communication cables, gutters and other communication networks on both sides of the road from his own expenses.

5. Поручить Районному отделу Земельных ресурсов и районного кадастра на основе этого Постановления внести изменения в отчёт районного земельного участка.

5. To charge the District Department of Land resources and district cadastre, and on the basis of this Reguation make changes to the report of the district land plot.

6. Поручить районному отделу архитектуры и строительства на основе этого Постановления подготовить архитектурно-проектное задание (АПЗ 1-2).

6. On the basis of this Regulation, charge the district department of architecture and construction to prepare architectural design task. (APZ 1-2).

7. Предложить Совету Министров Республики Каракалпакстан рассмотреть и утвердить это Постановление.

7. Suggest to the Council of Ministers of the Republic of Karakalpakstan to consider and approve this Regulation.

8. Поручить проверку исполнения этого Постановления Первому заместителю районного хокима А.Косымбетову.

8. To entrust the verification of the execution of this Regulation to the First Deputy District Khokim A. Kosymbetov.

Хоким Кунгратского района Khokim of Kungrad district

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Кунгратский район;

О возвращении одной части земельных участков Кунгратского государственного лесного охотничьего хозяйства Государственному земельному фонду и о выборе, о выделении для постоянного пользования земельных площадей для строительства и для выполнения ремонтных работ автомобильной дороги на промежутке 964,0-1204,0 км автодороги А-380 “Гузар-Бухара-Нукус-Бейнеу” ремонтно-эксплуатационному предприятию, основанному на ремонте автомобильных дорог Северо-Западного международного и государственного значения.

Рассмотрев Акт комиссии, рассматривающей вопросы по владению районными земельными площадями, эксплуатацией, сдачей

в аренду, по выбору, выделению и возвращению земельных участков от 19 декабря 2016 года, на основе статей 6,20, 23,36 и 87 Земельного кодекса Республики Узбекистан, письма Главного проектного института ООО “YO`L-LOYIHA BYUROSI" №1641/11 от 31.10.2016 г., Постановления Президента Республики Узбекистан №ПП-2313 от 6.03.2015 г. о «Программе развития и модернизации в 2015-2019 гг. инженерных коммуникаций, дорожно-транспортных инфраструктур», итога договора от 14.12.2016 г. Кунгратского государственного лесного охотничьего хозяйства о возвращении одной части земельных площадей государственному земельному фонду, Постановления Кабинета Министров Республики Узбекистан №317 от 21.09.2016 г. о внесении изменений в приложение №2 «Закона о порядке покрытия ущерба, нанесенного владельцам земельных участков, пользователям, арендаторам и имущественникам, а также урону, нанесенному сельскому хозяйству и лесному хозяйству», утвержденного Постановлением Кабинета Министров Узбекистана №146 от 25.05.2011 г.,

Постановляю:

I. Утвердить Акт комиссии, рассматривающей вопросы по владению районными земельными площадями, эксплуатацией, сдачей в аренду, по выбору, выделению и возвращению земельных участков от 19 декабря 2016 года и итога договора от 14.12.2016 г. Кунгратского государственного лесного охотничьего хозяйства о возвращении одной части земельных площадей государственному земельному фонду.

II. Выбрать, а также выделить для постоянного пользования земельные участки, которые возвращаются Государственному земельному фонду для выполнения работ по строительству и ремонту автомобильной дороги на промежутке 964,0-1204,0 км автодороги А-380 “Гузар-Бухара-Нукус-Бейнеу” ремонтно-эксплуатационному предприятию, основанному на ремонте автомобильных дорог Северо-Западного международного и государственного значения; общая площадь одной части земельных площадей Кунгратского государственного лесного охотничьего хозяйства составляет 772,8 га (ширина 32,2 м длина 240000 м =общая площадь 7728000 м2) из них: 292,8 га долины и 480,0 га другие земельные участки, не используемые в сельском хозяйстве.

III. Перевести на расчётный лист 23402000300100001010 ИНН:201122919, МФО:00014 Центрального Банка города Ташкента Управления Казначейства Министерства финанасов Республики Узбекистан, на личный расчётный счёт Управления Земельных ресурсов и государственного кадастра Республики Каракалпакстан ИНН:200358284 № 401021860354017950100186001 общую сумму-71121120 (Семьдесят один миллион сто двадцать одна тысяча сто двадцать) сум для покрытия ущерба, нанесённого хозяйству аула на земельных участках долин 292,8 га (292,8 га х 242900 сум= 71121120 сум) Республиканскому Дорожному фонду при Министерстве финансов Республики Узбекистан после полного оформления документов для выделения земель для земельных участков, выделяемых под пастбища на основе статьи № 87 Земельного кодекса Республики Узбекистан и на основе требований Постановления Кабинета Министров Республики Узбекистан № 317 от 21.09.2016 г.

53

IV. После окончания работ по строительству и ремонту автомобильной дороги предприятие, осуществляющее дорожно-строительные работы обязано за свой счёт привести в порядок сети газоснабжения, электросети, кабели связи, канавы и другие коммуникационные сети с обоих сторон дороги.

V. Поручить Районному отделу Земельных ресурсов и районного кадастра на основе этого Постановления внести изменения в отчёт районного земельного участка.

VI. Поручить районному отделу архитектуры и строительства на основе этого Постановления подготовить архитектурно-проектное задание (АПЗ 1-2).

VII. Предложить Совету Министров Республики Каракалпакстан рассмотреть и утвердить это Постановление. VIII. Поручить проверку исполнения этого Постановления Первому заместителю районного хокима А.Косымбетову.

Хоким Кунгратского района

Kungrad district; About the returning part of the Kungrad State Forestry to the State land fund and selection, allocation of lands for

permanent use for constructing and performing repair works of motorway roads on the interval 964.0-1204.0 km of the A-380 “Guzar -Bukhara-Nukus-Beyneu " to the repair and service enterprise, based on the repairing highways of the North-West international and

national importance.

Having considered the Act of the Commission, which considers issues on the posession of district land areas, operation, rent, choice, allocation and return of land plots from 19.12.2016, on the basis of articles 6,20, 23,36 and 87 of the Land Code of the Republic of Uzbekistan, letters of The Main Design Institute LLC “YO`L-LOYIHA BYUROSI" No. 1641/11 from 31.10.2016, Resolution of the President of the Republic of Uzbekistan No. PP-2313 dated on March 6, 2015 on the “Development and Modernization Program of engineering communications, road and transport infrastructures in 2015-2019 ", the results of the contract from 14.12.2016 Kungrad State Forestry on the return one part of land to the State land fund, Regulation of the Cabinet of Ministers of the Republic of Uzbekistan No. 317 from 09/21/2016 about making changes in Appendix No. 2 of the Law on the Order for Covering Damage to land owners, users, tenants and property owners, as well as damage to agriculture and forestry ”, approved by the Regulation of the Cabinet of Ministers of Uzbekistan No. 146 from May 25, 2011,

I decree: I. To approve the Act of the Commission considering the ownership of district land areas, operation, rent, choice, allocation and

return of land plots from 19.12. 2016 and the results of the contract from 14.12.2016 on the return of one part of the Kungrad State forestry to the State land fund.

II. Select, as well as allocate for permanent use land plots that are returned to the State land fund for the construction and repair of the highway in the interval 964.0-1204.0 km of the A-380 “Guzar-Bukhara-Nukus-Beyneu” highway to the repair-operational enterprise based on the repairing highways of the North-West international and national importance; the total area of one part of the land area of Kungrad State Forestry is 772.8 hectares (width 32.2 m, length 240000 m = total area is 7728000 m2) from which: 292.8 hectares of the valley and 480.0 hectares other land plots not used in agriculture.

III. To transfer to the payment sheet 23402000300100001010 ITN: 201122919, MFO: 00014 Central Bank of the Tashkent the Treasury Department of the Ministry of Finance of the Republic of Uzbekistan, to the personal payment account of the Department of Land resources and the State Cadastre of the Republic of Karakalpakstan ITN: 200358284 No. 401021860354017950100186001 total amount - 71121120 (seventy one million one hundred twenty one thousand one hundred twenty) soums to cover damage caused to the aul’s economy on land plots of valleys 292.8 ha (292.8 ha x 242900 soum = 71121120 soum) to the Republican Road Fund under the Ministry of finance of the

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Republic of Uzbekistan after the complete execution of documents for the allocation of land for pasture on the basis of article No. 87 of the Land Code of the Republic of Uzbekistan and based on the requirements of Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 317 of 09.21.2016.

IV. After completion of the construction and repair of a highway the enterptise that makes road-construction works must put in order the gas supplying, electricity, communication cables, gutters and other communication networks on both sides of the road from his own expenses.

V. To charge the District Department of Land resources and district cadastre, and on the basis of this Reguation make changes to the report of the district land plot.

VI. On the basis of this Regulation, charge the district department of architecture and construction to prepare architectural design task. (APZ 1-2).

VII. Suggest to the Council of Ministers of the Republic of Karakalpakstan to consider and approve this Regulation. VIII. To entrust the verification of the execution of this Regulation to the First Deputy District Khokim A. Kosymbetov.

Khokim of Kungrad district

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Appendix 3: Documents to Establish Land Usage Right and Tenancy Agreement

56

57

58

59

60

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Appendix 4: Alignment Drawing with Affected Structure

Affected Restaurant

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Appendix 5: Summary of Affected Families Losing Structure

SNo Name Tenure Type of Loss Photograph of Affected Structure 1 Ms. Bazarkhan Structure

Owner Loss of rental income

2 Ms. Kudaybergenova Anar

Tenant Loss of business income

3 Bahauddin Alyanov Structure Owner

Temporary disruption during utility shifting

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Appendix 6: Participants in Consultation

SNo Place Date Numbers of Participants Photo

1 Jaslik (Mahalaya)

20.03.2019 17 (including 10

women)

2 Jaslik

(Women’s Committee)

20.03.2019 24 (all women)

3 Jaslik

(kindergarten teachers)

20.03.2019 6 (all women)

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SNo Place Date Numbers of

Participants Photo

4 Jaslik (Gas Company employees)

20.03.2019 5 (including 4

women)

5 Karakalpakstan 21.03.2019 24

(all women)

6 Karakalpakstan 21.03.2019 11

(including 4 women)

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SNo Place Date Numbers of

Participants Photo

7 Karakalpakstan 21.03.2019 12 (all women)

Summary 99

(including 84 women)

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Appendix 7: Comparison between ADB IR Policy Requirements and Republic of Uzbekistan Legislation, Decree and Resolution with Gap filling measures

SNo Asian Development Bank’s Involuntary Resettlement Policy Requirement

Uzbekistan National Laws and Policies

Remarks and provisions in Decree and Resolutions

Measures to bridge the Gap

Policy Objectives 1 Avoid involuntary resettlement (IR)

wherever feasible x No specific provision The proposed road

passes through barren land and as such the scope for avoidance did not arise. The involuntary resettlement safeguard principles provide for this requirement.

2 If IR is unavoidable, minimize involuntary resettlement by exploring viable alternate project design

x No specific provision The proposed road passes through barren land and as such the scope for minimsing IR did not arise The involuntary resettlement safeguard principles provide for this requirement.

3 DPs should be assisted in their efforts to enhance or at least restore the livelihoods in real terms to pre-project levels

x

No specific provision Provisions made in the Entitlement matrix will help in restoring the livelihoods to pre-project level.

Scope of Application 4. Involuntary acquisition of land The land code provides for withdrawal,

redemption of land for State and Public need

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SNo Asian Development Bank’s Involuntary Resettlement Policy Requirement

Uzbekistan National Laws and Policies

Remarks and provisions in Decree and Resolutions

Measures to bridge the Gap

[Ref: Article 37 of Land Code] 5 Involuntary restriction of land use or on

access to legally designated parks and protected areas.

Land code recognises restrictions of rights of land owners, users, tenants and owners of land plot, in connection with the establishment of water protection zones, coastal strips, sanitary protection zones of water bodies, zones of surface and groundwater formation, zones of resort natural territories, zones of state biosphere reserves, protected zones around state reserves, sanctuaries, state nature monuments cultural heritage, discharges, roads, pipelines, communication lines and electricity transmissions [Ref: Article 86 of Land Code]

Eligibility Criteria 6 Those who have formal legal rights to land

lost in its entirety or in part Losses of owners, users, tenants and

owners of land plots are determined and reimbursed in full (including lost profits), in case of withdrawal, redemption or temporary occupation of land plots or their part [Ref: Clause 5 and 6 of Resolution No.146]

7 Those who do not have formal legal rights to land lost but who have a claim to such land that are recognized or recognizable under national laws

x Losses related to the seizure of unauthorized occupied lands shall not be reimbursed [Ref: Clause 7 of Resolution No.146]

In the LARP, under eligibility criteria, this is addressed.

8 Those who have neither formal legal rights nor recognized or recognizable claim to land lost

x Losses related to the seizure of unauthorized occupied lands shall not be reimbursed [Ref: Clause 7 of Resolution No.146]

In the LARP, under eligibility criteria, this is addressed.

9 Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance.

x No specific provision In the LARP, the cut-off date has been defined.

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SNo Asian Development Bank’s Involuntary Resettlement Policy Requirement

Uzbekistan National Laws and Policies

Remarks and provisions in Decree and Resolutions

Measures to bridge the Gap

Policy Principles 10 Carry out meaningful consultations with

affected persons, host communities and concerned non-government originations

x

No specific provision Consultations have been held during census and socio-economic surveys. Further, plan for meaningful consultation is described in the LARP

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

x

People can make use of the help line or the email of Government bodies to redress grievances. Further, people can approach the District Khokimiyat for resolution of grievances. The land code has provision for appeal to the court, on matters related to withdrawal, redemption of land. [Ref: Article 37 of Land Code] Further, decision of the Khokim of a District with respect to demolish and approve the cost of structure and plantings (trees and cops) can be appealed to the council of Ministers of the Republic of Karakalpakstan, regional and city Khokimiyats of Tashkent, as well as the court. [Ref: Paragraph 5 of Resolution No.97] No project specific time bound grievance redress mechanism in place.

The LARP provides for a District level GRC to resolve grievances in the First Level and the State Road Committee at the Second Level of grievance resolution mechanism, prior to approaching the Court.

12 Preference to land-based resettlement strategies for displaced persons whose livelihoods are land-based.

Land for land is provided for agricultural land and in such cases, the loss of profit is not refunded.

Land for land option, is provided in the EM.

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SNo Asian Development Bank’s Involuntary Resettlement Policy Requirement

Uzbekistan National Laws and Policies

Remarks and provisions in Decree and Resolutions

Measures to bridge the Gap

[Ref: Paragraph 12 of Resolution No.146]

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

Land for land for residential loss with provision for temporary housing for 2-years. Land for land commercial loss is provided and as well as compensation for losses caused to the owners. [Ref: Paragraph 8 of Resolution nO.97 and Paragraph 12 of Resolution No.146]

Suitable mitigation measures provided in the EM

14 Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards

x

No such provision Required to be addressed in the EM. However, there are no vulnerable in this project.

15 Develop procedures in a transparent, consistent, and equitable manner if actuation is through negotiated settlement.

Not applicable Land is a state property and withdrawal, redemption of land for state and public need is to be carried out with the consent of the landowner [Ref: Article 37 of Land Code]

16 Prepare a resettlement plan elaborating on displaced persons entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget and time bound implementation schedule

x

No such provision LARP has been prepared for the project

17 Disclose a draft resettlement plan, including documentation of the consultation

x

No such provision. However, Khokimiyats of the respective districts

LARP discussed the disclosure

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SNo Asian Development Bank’s Involuntary Resettlement Policy Requirement

Uzbekistan National Laws and Policies

Remarks and provisions in Decree and Resolutions

Measures to bridge the Gap

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

are required to notify the affected person of the decision in writing for signature no later than six months before the demolition, with attachment to the notification of copies of the relevant decisions. [Ref: Paragraph 4 of the Resolution No.97]

requirements.

18 Pay compensation and provide other resettlement entitle before physical or economic displacement. Implant the resettlement plan under close supervision throughout project implementation

Demolition of objects in case of seizure of land plots is allowed after full reimbursement of the market value. [Ref: Paragraph 3 of Resolution No.97]

LARP addresses the condition for payment of compensation and resettlement assistance prior to dispossession of asset and links it to award of contract.

19 Monitoring and assess resettlement outcomes, their impacts on the standard of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

x

No such provision LARP discusses the monitoring requirement.

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Appendix 8: Letters from Design Institute initiating Land Request for Project

English Translation To:Mr. Sh. Temirbaev, the Khokim of Kungrad district CC to: Mr. T.Sultanov, Chief of Land Management and Cadastral Real Estate Department.

In pursuance of the Decree of the President of the RUz №PP-3213 dated March 6,2015 on the “Development and Modernization Program of engineering communications, road and transport infrastructures in 2015-2019 ", the main Design Institute LLC “YO`L-LOYIHA BYUROSI"is carrying out feasibility studies for reconstruction of 240km from km 964 to km 1204 on the road A-380 “Guzar-Bukhara-Nukus-Beyneu” of 2-lane road with asphalt-concrete pavement. In this regard, we request you to prepare 1st and 2nd part of APZ (architectural-planning task) for the reconstruction of the abovementioned road. Total area of the permanent land acquisition for the road is 7732841m2, including 481368m2 for the existing road. For the designed road land acquisition area is 9157720m2 or 915,7720ha. Enclosure:

1. Shortened route plan-1sheet. 2. Cross-section design-1 sheet.

Signed Chief Engineer A. Juraev №1641/11 dated October 31,2016

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English Translation

To:Mr. B.S. Saparov, the Khokim of Kungrad district CC to: Mr. J. Embergenov, Minister of Construction of the Republic of Karakalpakstan

In pursuance of the Decree of the President of the RUz №PP-3213 dated March 6,2015 on the “Development and Modernization Program of engineering communications, road and transport infrastructures in 2015-2019 ", The Main Design Institute LLC “YO`L-LOYIHA BYUROSI"is carrying out feasibility studies for reconstruction of 240km from km 964 to km 1204 on the road A-380 “Guzar-Bukhara-Nukus-Beyneu”. In this regard, we request you to prepare 2nd part APZ (architectural-planning task) for the reconstruction of the abovementioned road. Total area of the permanent land acquisition for the road is 9 072 599m2, including 5 955 830м2 for the existing road. For the designed road land acquisition area is 3 116 769m2 or 311,68ha. Temporary land acquisition for the open pits equals to 9157720m2 or 915,7720ha. Enclosure:

1. Shortened route plan-1sheet. 2. Cross-section design-1 sheet. 3. Copies of technical specifications. 4. Brief information on the designed road-1 sheet.

Signed General Director in charge A. Juraev №2224/11 dated December 17,2018

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Appendix 9: Unit Rate for Structure Valuation Obtained through Kungrad Cadastral Department