public enterprise for state roads republic of macedonia · 2018-03-13 · development (ibrd) and...

PUBLIC ENTERPRISE FOR STATE ROADS

Republic of Macedonia

Abbreviated Resettlement Action Plan (ARAP)

For the construction waste landfills in the first section from the project Construction of state road A2, SectionRankovce – Kriva Palanka

DRAFT

October 2016

Contents

ABBREVIATIONS

4GLOSSARY

51. Introduction

71.1. Project Background

71.2. Rationale for Preparation of Abbreviated Resettlement Action Plan

81.3. Objectives of the ARAP

82. Institutional and Legal Framework

92.1. Institutional Framework

92.2. Legal Framework

92.2.1. Expropriation Process

102.3. WB Principles and Procedures of Resettlement adopted in this ARAP

122.4. Gap analysis – Macedonian legislation for expropriation and World Bank Safeguard Policies

123. Approach and Methodology

143.1. Overarching Approach

143.2. Identification of affected parcels

153.3. Identification of Affected Land Users

153.4. Cut-off Dates

153.5. Analysis of Gathered Data

164. Project Impacts

164.1. Loss of Land

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164.1.1. Total Land Loss

164.1.2. Loss of Privately Owned Land

174.1.3. Loss of Governmentally Owned Land

184.1.4. Loss of Land in Mixed Ownership

184.2. Loss of Structures

194.3. Loss of Plants and Crops

194.4. Land Use, Physical Resettlement and Livelihood Restoration

195. Eligibility and Entitlements

205.1. Eligibility

205.2. Entitlements

216. Compensation

226.1. Valuation of Affected Assets

226.2. Replacement valuation

247. People’s Participation and Disclosure

247.1. Resettlement Related Meetings

247.2. Future Participation and Disclosure Activities

258. Implementation Arrangements

258.1. RAP Implementation Unit

258.2. ARAP Implementation Process

269. Grievance Redress Mechanism

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269.1. Grievance Redress Committee: Tasks and composition

269.2. Procedure

279.3. Court

2710. Supervision and Monitoring

2711. Costs and Budgets

28Annex 1: Location of Construction Waste Landfills along First Subsection

1Annex 2: List of parcels to be acquired with compensation price

2Annex 3: Grievance Form

8Annex 4: Summarized Report for Realized Meetings with Affected Parties

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ABBREVIATIONS

ARAP - Abbreviated Resettlement Action Plan

BP - Bank Procedures

IBRD - International Bank for Reconstruction and Development

MTC - Ministry of Transport and Communications

OP - Operational Policies

PAP - Project Affected People/Persons/Parties

PESR - Public Enterprise for State Roads

PIU - Project Implementation Unit

RAP - Resettlement Action Plan

RIU - RAP Implementation Unit

RM - Republic of Macedonia

SEP - Stakeholder Engagement Plan

WB - World Bank

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GLOSSARY

Abbreviated Resettlement Action Plan (RAP): A planning document that describes what will be done to address thedirect social and economic impacts associated with involuntary displacement. This term is applicable where the projectaffected persons are less than 200.

Census: Household survey that covers all Project Affected Persons irrespective of entitlement or ownership. It providesa complete inventory of all project affected persons and their assets. It can be used to minimize fraudulent claims madeby people who move into the area affected by the project in the hope of being compensated and/or resettled.

Compensation: Payment in cash or in kind of the replacement value of the acquired property

Involuntary: Actions that may be taken without the displaced person’s informed consent or power of choice.

Involuntary Resettlement (IR): The unavoidable displacement of people and/or impact on their livelihood, assets andcommon property resulting from development projects that create the need for rebuilding their livelihood, sources ofincome and asset bases.

Project Affected Person (PAP) includes any person or persons who, on account of the execution of the Program, orany of its Projects, sub-components or parts thereof, will have their right, title, or interest in any house, land (includingresidential, agricultural and grazing land) or any other fixed or moveable asset acquired or possessed, in full or in part,permanently or temporarily, adversely affected; or business, occupation, work, place of residence or habitat adverselyaffected; or standard of living adversely affected;

Public Involvement: The dialogue encompassing consultation and communication between a project proponent and thepublic. It includes dissemination, solicitation and presentation of information.

Resettlement: General term related to land acquisition and compensation for loss of assets, whether it involves actualrelocation, loss of land, shelter, assets or other means of livelihood and includes all the measures taken to mitigate anyand all adverse impacts of the Project on PAPs’ property and/or livelihood, including compensation, relocation (whererelevant), and rehabilitation;

Resettlement Action Plan (RAP): A time-bound action plan with a budget, setting out resettlement strategy, objectives,options, entitlements, actions, approvals , responsibilities, monitoring and evaluation.

Resettlement Policy Framework (RPF) refers to the present document which is the overall Policy Framework forResettlement of Project Affected Persons (PAPs). The RPF describes the process and methods for carrying outresettlement under the Program, including compensation, relocation and rehabilitation of persons affected by theProgram

Replacement Value: Method of valuation of assets that helps determine the amount sufficient to replace lost assets andcover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be takeninto account;

Relocation: Physical relocation of a PAP or PAPs from their pre-Program place of residence

Stakeholders: Those who have an interest in project development and who will be involved in the consultative process,and includes any individual or group affected by, or that believes it is affected by the project; and any individual or groupthat can plan a significant role in shaping or affecting the project, either positively or negatively, including the hostcommunity/population.

Vulnerable Groups: Distinct groups of people who might suffer excessively from resettlement effects, such as, the old,the young, the handicapped, the poor, isolated groups and single parents.

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EXECUTIVE SUMMARY

The Public Enterprise for State Roads (PESR) intends to construct a new express road from road interchange Stracin(Kratovo – Kumanovo - Kriva Palanka) to Kriva Palanka, a section called “Rankovce - Kriva Palanka” (the ‘Project), apart of the national A2 road network with international importance that connects Republic of Bulgaria with Republic ofAlbania (Corridor VIII). The road section forms part of the core national transportation network and is categorized as astate road – A2. This document refers only to part of this project, namely, six of ten construction waste landfills located allin first subsection Dlabochica - Kriva Palanka.

This document is Abbreviated Resettlement Action Plan (ARAP), a planning document that describes what PESR will doto address the direct social and economic impacts associated with involuntary displacement regarding first section of thisproject. In accordance with the World Bank resettlement policy (OP 4.12) this document, instead of full RAP is preparedwhere the project affected persons are less than 200. This project affects 158 owners. No tenants on affected land in thefirst subsection have being identified.

The ARAP sets out the project goals and project implementation schedule, eligibility criteria for project affected people(PAPs), legal framework and institutional involvement, determines valuation methodology, establishes compensationentitlements and unit rates, participation and consultation procedures, and grievance redress mechanism which will beemployed to compensate, and restore the livelihoods and living standards of PAPs.

There are total of 192 project affected parcels, among them 158 are privately owned land parcels, 5 are of mixedownership (government and individuals), while 29 are completely governmentally owned parcels. Also there are 3unpopulated structures (former homes, abandoned for more than 30years).

Regarding corps and plants, at the landfill Petralica1, there will be loss of 16 pear trees and 2 parcels with rye. InPetralica2 there is a parcel with ploughland and 8 walnut trees, and 3 parcels with rye. In Rankovce landfill there are 4parcels with wheat, while in Stracin two parcels hold in total 17 (1+16) oak trees. All other agricultural parcels are fieldwithout active plants, either unused pastures or meadows.

No homes or people are going to be resettled and no livelihood endangered in this subsection of the project.

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1. Introduction

1.1. Project Background

The Government of Republic of Macedonia, i.e. Public Enterprises for State Roads (PESR) has requested the WorldBank’s support for construction of a new expressway A2, Section Kriva Palanka - Rankovce. The section Kriva Palanka -Rankovce is part of the Corridor VIII (National Road A2, East – West: Kafasan, Kicevo - Gostivar - Kumanovo - KrivaPalanka - Deve Bair), which is one of the two most important international corridors in Republic of Macedonia.

Figure 1: Map Showing Wider Location of the Project (Source: OpenStreetMap)

The Project falls under the current National Transport Strategy (2007-2017), PESR’s Annual Program for Construction,Reconstruction, Rehabilitation, Maintenance and Protection of the State Roads for year 2015. The Project has beendeveloped by PESR in response to the Macedonian spatial planning and legislative requirements and those of the WorldBank (WB). WB is considering the provision of a loan to finance the Project.

The Project to be financed is divided into two subsections. The first subsection, named Dlabochica - Kriva Palanka, iswith length of 14.1km, while the second subsection, named Chatal (Stracin) - Dlabochica is with length of 10.34km.Overall length of the expressway will be 24.45km.

Figure 2: Map Showing Subsections of the Project (Source: OpenStreetMap)

The Project will be implemented by the Public Enterprise for State Roads (PESR). The PESR has engaged consultingservices (an independent expert) for the preparation of the Environmental and Social Impact Assessment (ESIA) andEnvironmental Management Plan (EMP) for the construction of the state road A2 Section Rankovce – Kriva Palanka.

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The development of this project has started more than a decade. Initially it was planned as highway solution. Apreparatory works for its realization started, but due to the exaggerated need for such solutions, which is not in line withthe traffic demand, the Developer (PESR) has stopped its realization and sets redesign of the project to lower trafficoption: an Express road.

This ARAP document applies only to the expropriation process of construction waste landfills in the first subsection.Additional RAP will be created that will embrace land for road from second subsection and the remaining fourconstruction waste landfills located in second subsection.

This ARAP considers only six of ten planned construction waste landfills, namely those located in the cadastralmunicipalities Stracin, Rankovce, Ljubinci, Petralica and Psaca.

1.2. Rationale for Preparation of Abbreviated Resettlement Action Plan

This document represents the Abbreviated Resettlement Action Plan (ARAP) for six construction waste landfills locatedin the first subsection of the proposed PESR project. It describes the policies, procedures and processes that will befollowed throughout the project in the course of mitigation of adverse social impacts due to project activities among theproject affected persons, with and without legal title, whose land/properties, businesses and other assets areexpropriated for the execution of the construction works.

Abbreviated Resettlement Action Plan is prepared to guide land acquisition and resettlement for the construction of theroad in accordance to the requirements of the World Bank (WB) - International Bank for Reconstruction andDevelopment (IBRD) and its Operational Policy 4.12 and fit with the national legislation.

According to OP 4.12 (see chapter 2.3), all projects that entail land acquisition or/and resettlement require a RAP. Thescope and level of detail of the resettlement plan vary with the magnitude and complexity of land acquisition or/andresettlement impact, i.e. a full RAP is required whenever land acquisition in a project affects more than 200 people, takesmore than 10 percent of any holding, and involves physical relocation of population. An abbreviated RAP is acceptable iffewer than 200 people are displaced. Even if more than 200 people are affected, if all land acquisition is minor (10percent or less of all holdings is taken) and no physical relocation is involved, an abbreviated RAP is acceptable. Thisproject does not include displacement of any PAPs.

1.3. Objectives of the ARAP

Unless properly managed, involuntary resettlement may result in long-term hardship and impoverishment for the affectedcommunities and persons, as well as environmental damage and adverse socio-economic impacts in areas to which theaffected persons have been displaced.

The main objective of this ARAP is to ensure that the following land acquisition / and potential resettlement issues, allpersons affected by it are properly consulted, made available to affordable and accessible grievance mechanisms andproperly and in time compensated at replacement cost or market value (which ever higher) for their losses, and providedwith rehabilitation measures so that they are at least as well off as they would have been in the absence of the Project.

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2. Institutional and Legal Framework

2.1. Institutional Framework

Following institutions, each with different roles and responsibilities, are main actors in the process of expropriation are:

State Attorney's Office of the Republic of Macedonia is a Governmental institution which takes a measures and legalmeans for legal protection of property rights and interests of the Republic of Macedonia and performs other dutiesprescribed by law.

Ministry for Transport and Connections is the governmental body responsible for issuing permits for construction andmonitoring the process of expropriation in means of completion of the process of expropriation.

The Real Estate Cadaster Agency of the Republic of Macedonia holds and registers the information on ownershiprights of the land in Republic of Macedonia. It can be consulted during the process of obtaining valuable and validinformation on ownership and current land use/leasing.

Ministry of Agriculture, Forestry and Water Supply conducts transformation of agricultural land into construction land.

The following institutions offer wide spectrum of assistance that can enable, support and facilitate the consultationprocess for implementation of RAP.

National level:

Ministry of Agriculture, Forestry and Water Supply It can be consulted during the process of creation ofpackages for compensation. Also it can be consulted in the process of estimating compensation for lost crops.

Ombudsman can be consulted on various legal advices related to litigations of PAPs with the governmentalbodies.

Local level:

The Inter-municipal Centre for Social Work established by the Government that can be consulted during theprocess of realization of RAP. The Center can give valuable input into identification, communicating andaddressing of the vulnerable social groups, thus giving appropriate direction for setting compensationmeans/packages for such groups.

Local community level (Village): Official representatives of the local villages be consulted for and activelyinvolved in the preparation and execution of resettlement processes in their area of jurisdiction. They might beconsulted and involved as mediators in the processes of redressing the complaints/grievances, before thoseare deposited with the Grievance Redress Committee.

2.2. Legal Framework

In the Republic of Macedonia, the legislative acts given below regulate the issues of obtaining State ownership rights toprivately owned land parcels based on the necessary public needs caused due to road constructions activities:

Expropriation Law (Official Gazette of Republic of Macedonia No. 95/12, 131/12, 24/13, 27/14, 104/15, 192/15,23/16);

Law on Public Roads (Official Gazette of the Republic of Macedonia No. 84/08; 52/09; 114/09; 124/10; 23/11;53/11; 44/12; 168/12; 163/13; 187/13; 39/14; 42/14; 166/14, 44/15, 116/15, 150/15, 31/16, 71/16);

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Law on Construction (Official Gazette of Republic of Macedonia No. 130/09, 124/10, 18/11, 36/11, 54/11, 13/12,144/12, 25/13, 79/13, 137/13, 163/13, 27/14, 28/14, 42/14, 115/14, 149/14, 187/14, 44/15, 129/15, 217/15,226/15, 30/16, 31/16, 39/16, 71/16).

Law on Assessment (Official Gazette of the Republic of Macedonia No. 115/10, 158/11, 185/11, 64/12, 188/14,104/15, 153/15, 192/15, 30/16)

Methodology for assessment of the market value of the real estate (Official Gazette of the Republic ofMacedonia No. 54/12)

Rulebook on the method of cadastral classification and determination and registration of the change ofcadastral culture and land class (Official Gazette of Republic of Macedonia No. 144/13)

Law on acting upon illegally constructed buildings (Official Gazette of the Republic of Macedonia No. 23/11,54/11, 155/12, 53/13, 72/13, 44/14, 115/14, 199/14, 124/15, 129/15, 217/15, 31/16)

Law on Property and Other Real Property Rights (Official Gazette of the Republic of Macedonia No. 18/01,99/08, 139/09 and 35/10);

Law on acting upon complaints and proposals (Official Gazette of Republic of Macedonia No.82/2008, 13/13,156/15, 193/15);

Law on Property Cadaster (Official Gazette of the Republic of Macedonia No. 55/13, 41/14, 115/14, 116/15,153/15, 192/15, 61/16);

2.2.1. Expropriation Process

Macedonian legislation deals with involuntary resettlement and livelihood restoration under its legal framework forexpropriation, with the basic notion that owners of properties are to be compensated for their losses, most often inmonetary terms.

The Law on expropriation (“Official Gazette of Republic of Macedonia” No. 95/12, 131/12, 24/13, 27/14) regulates theprocedure for the expropriation of property for projects that are of public interest and the connected rights for real estates(immovable properties). Construction of linear infrastructure, in this case Express road, falls under a project ofnational/public interest. The legal justification of why the project is believed to be in the public interest is submittedtogether with the request for expropriation (as part of the same process), to the State Attorney, by the expropriationbeneficiary. The State Attorney of the Republic of Macedonia also represents public companies, funds, agencies,departments, public institutions, trade companies and other institutions established by the Government. For this project,the Government of Republic of Macedonia accepts the initiative for expropriation, the State Attorney conducts it.

Expropriation Authority, upon the proposal for expropriation, schedules debate where owner of the property or theholders of other property rights of the property that is subject to expropriation and Proposer of the expropriation areinvited. At the hearing the existence of public interest is determined, than the right of ownership and other property rights,as well as the type and amount of compensation and other facts and circumstances relevant to the process ofexpropriation.

The Authority must, after submission of the proposal for expropriation to the owner of the property or the holders of otherproperty rights of the property, to schedule and hold a hearing on the proposal within 15 days of submission of theproposal to the owner of the property or the holders of other property rights of the property.

The hearing may end up with an agreement for compensation (payment in money or providing other suitable property),and for the amount of the fee if it is determined in money, as well as timeframes for payment. This agreement as anexecutive document and by signing of the agreement is considered the expropriation process and procedure for thedetermination of compensation as completed and final.

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If agreement is not reached the expropriation authority, relying on the facts set out in the procedure will issue a decisionon expropriation. The decision on expropriation can be appealed to the Administrative Court within 15 days of receipt ofthe decision.

Ministry of agriculture, forestry and water economy leased the governmentally owned agricultural land to the tenants.This ministry terminates the existing contract with the tenant and sign a new one with the same terms as before, butwithout the amount of land that will be acquired. PESR will compensate these tenants, by using the same compensationmethodology as for the land owners, but without compensation for land.

Other key aspects of the Expropriation Law are shown below:

Compensation - Article 18 “for the expropriated property there is a fair compensation that cannot be lower than themarket value of the property. The market value of the property shall be established under conditions determined by thislaw, according to the methodology, rules and standards pursuant to the Law on Assessment. The right to seekcompensation for expropriated property cannot become obsolete”. Article 37 states that the market value of expropriatedproperty and property that is given as compensation shall be determined by a qualified appraiser, pursuant to the Law onAssessment. Compensation for expropriated property usually is determined in financial means if the former owner or thepossessor of other property rights and proposer of expropriation agree otherwise.

The owner of expropriated property shall also be entitled to compensation for crops, seeds, forests on the land and fruits,if they were not incorporated in the market value of the land. The owner of the property shall not be entitled tocompensation for investments made after the date of submission of the proposal for expropriation.

If economic activity is performed in a property which is to be expropriated, the effect of interruption of this activity shouldbe taken into account when determining the compensation due for expropriation. This amount shall be determined by anexpert, pursuant to the Law on Assessment.

Proposal for expropriation, separate for each individual property, contains information on:

The proposer of the expropriation; The property for which expropriation is proposed; The owner of the property (personal name or title, residence, main office); The holders of other real property rights (personal name or title, residence, main office); The type of facility or performing works for which expropriation is proposed.

The Proposal for expropriation is accompanied by the following documentation:

An extract of the spatial planning act or approved project for infrastructure; A geodesic report with numerical data for the property which is proposed for expropriation; An offer of compensation equivalent to the market value of the property determined by a qualified appraiser

pursuant to the Law on Assessment; A list of property under proposal for expropriation; Proof the funds for compensation are in place.

In addition to the Expropriation Law, provisions of the Constitution and the Law on Property and Other Real PropertyRights are also relevant to land acquisition and resettlement:

- The Constitution of the Republic of Macedonia guarantees legal protection of ownership and states that noperson may be deprived of his/her property or of the rights deriving from it, except in cases concerning thepublic interest determined by law. If property is expropriated or restricted, rightful compensation not lower thanits market value is guaranteed.

- According to the Law on Property and Other Real Property Rights, no person may be deprived of his/herproperty or of the rights deriving from it, except in cases concerning the public interest determined by law and

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the acts for spatial planning. In case of deprivation (complete expropriation) or restriction (incompleteexpropriation), rightful compensation for the property not lower than its market value at the time of expropriationis guaranteed.

2.3. WB Principles and Procedures of Resettlement adopted in this ARAP

Requirements of World Bank in regards with the Involuntary Resettlement is covered with OP 4.12 InvoluntaryResettlement. This policy includes safeguards to address and mitigate impoverishment risks: people faceimpoverishment when their productive assets or income sources are lost; people are relocated to environments wheretheir productive skills may be less applicable and the competition for resources greater; community institutions and socialnetworks are weakened; kin groups are dispersed; and cultural identity, traditional authority, and the potential for mutualhelp are diminished or lost.

The main objectives of OP 4.12 are the following:

Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative projectdesigns;

Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed assustainable development programs, providing sufficient investment resources to enable the persons displacedby the project to share in project benefits. Displaced persons should be meaningfully consulted and shouldhave opportunities to participate in planning and implementing resettlement programs;

Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or atleast to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning ofproject implementation, whichever is higher.

To achieve the objectives of this policy, particular attention is paid to the needs of vulnerable groups among thosedisplaced, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples,ethnic minorities, or other displaced persons who may not be protected\ through national land compensation legislation.

2.4. Gap analysis – Macedonian legislation for expropriation and World Bank Safeguard Policies

The main gaps between the national legal expropriation framework in the Republic of Macedonia and World BankSafeguard Policies are described below. A Gap Analysis is presented in Table 1.

Table 1: Differences between Macedonian law/regulation and WB policy

Macedonian legislation WB InvoluntaryResettlement Policy

Conclusion on gaps Actions to address thegaps

Eligibility Macedonian law does not recognize persons who do not have formal legal title

a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country);

b) those who do not have formal legal rights to land at the time the census begins but havea claim to such land or

In general the provisions ofthe Macedonian legislationand WB’s OP 4.12 are thesame, except of provisionon persons lacking theformal legal right over theproperty.

The governmental initiative for legalization of objects without proper building permits started in 2010 andended in June 2014. The initiative for legalization of illegally occupied land (backyard) started in 2011 and ended in October 2014. Therefore there are no (c) category PAPs

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assets provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan

c) those who have no recognizable legal right or claim to the land theyare occupying.

EntitlementsMacedonian laws does notinclude socio-economicassessment in order todetermine the realmagnitude of impact to thePAP

Implementation of a censusand a social-economicassessment within anaffected area, to identifythe persons who will bedisplaced and determinewho will be eligible forcompensation andassistance.

The difference between OP4.12 practice and nationallegislation is that by OP4.12 apart from inventory ofloses, a socio –economicassessment is done todetermine how andwhether the losses areimpacting the livelihood ofproject affected person.

Law does not forbid gettingmore information from all affected persons those withand without title. Thus not only the lost assets have been surveyed but also other assets and features that helps in profiling of the affected persons and determining impact. WB OP 4.12 to be followed

Compensation under theExpropriation law isdetermined in accordancewith the prevailing marketprice after taking intoaccount the value of land,cost of structures(residential and business)& installations, crops, forestland and timber, also itcovers compensation fortransaction costs.

Compensation levelsshould be sufficient toreplace the lost land andother assets at fullreplacement cost in localmarkets.

The difference between OP4.12 practice and national legislation is that by OP 4.12 gives beneficiary to the PAP in means of improvement of quality of life or restoration to a previous condition.

Compensation will be at replacement value.

Timing of Compensation PaymentAccording to paragraph 48of the law Compensationhas to be paid/providedwithin 30 days from the daywhen a compensationagreement has beensigned or the court decisionon compensation hasbecome final.

Taking of land and relatedassets may take place onlyafter compensation hasbeen paid and, whereapplicable, resettlementsites and movingallowances have beenprovided to the displacedpersons.

There is a gap of 15 dayswhere the land can beacquired before it is paid.

PESR must deposit fundsequal to the offered amount ina secure form of escrow orother interest bearing depositacceptable to the Bank incase where affected persondoes not accept proposedcompensation and ifcompensation is equivalent toat least replacement value.Compensation of land andassets must be fully paid priorto taking of land.

Information and consultationThose who have formallegal rights are informedthroughout theexpropriation process (i.e.

Information related toquantification and costingof land, structures andother assets, entitlements,

There is no legal obligationfor PESR to conduct earlyInformation disseminationand consultation with PAPs

Plans for consultations withall project affected people,including host communitiesshould be incorporated in

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that a request forexpropriation has beensubmitted), before thedecision on expropriation ispassed, the municipaloffice in charge ofexpropriation has to invitethe affected person withformal legal rights to ameeting to present anyfacts which may berelevant for expropriation.

and amounts ofcompensation and financialassistance are to bedisclosed in full to theaffected persons.Displaced persons andtheir communities areprovided timely andrelevant information,consulted on resettlementoptions, and offeredopportunities to participatein planning, implementationand monitoring ofresettlement

prior to the process ofexpropriation. PAPs are notconsulted or offeredopportunity to participate inplanning, implementationand monitoring ofresettlement.

the ARAP. Also, the draftARAP itself must besubject to publicconsultation.

3. Approach and Methodology

3.1. Overarching Approach

In order to adequately collect information pertaining to the project area, dominantly quantitative methods were used.These methodologies and included:

Identification of affected parcels Census survey of affected PAP Valuation of assets (Real estate, other affected property and Crops) Analysis of gathered data, Data check

3.2. Identification of affected parcels

A professional geodetic survey has been conducted for this project and it was completed in late November 2015. Thegeodetic survey gives the exact figures and amount of land take for the need of Construction waste landfills. Inpreparation of the land scheme an updated geodetic bases were used, as well as a list of indications of all cadastralparcels on the site through which construction waste landfill passes.

Data gathered from the Cadastral office about affected parcels (number, category, type of land), were verified by theproject designers at the planning stage, as well as the RAP team before completion of this document. Also, several visitswere made by the designers in order to examine the availability of the planned land and the level of its use by the localpopulation.

All landfills were planned to be located on currently unused land. Although some are located next to abandoned andruined houses, no existing house has been affected.

3.3. Identification of Affected Land Users

Information about parcels that is to be acquired for this project has been provided from the official Cadastre officeAgency for Real Estate Cadastre of Republic of Macedonia, for which required amount of finances has been paid.

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Initially, data from the Cadastral office comes with the name of the owners, but RAP team made two site visits to allaffected Construction waste landfills (12.04.2016 and 22.06.2016) in order to determine whether there are land usersthat have been leasing project affected land, or illegally using it.

Two interviews in Petralica/Ginovci and three in Rankovce were conducted in order to identify whether there areintensive agricultural activities on the affected parcels. Findings, both from site visits and interviews of local population,show that there are rare to none agricultural activities on the project affected land. No squatters or other type of illegalland users were registered on the affected land, treated by this ARAP.

3.4. Cut-off Dates

There are actually two cut-off dates. The first one is for the plants and crops on the affected land, while the other is forvaluation of the land.

For the affected crops and plants the cut-off date was 26.04.2016, and the valuation last till 29.04.2016. For landvaluation the cut-off date, actually the valuation day, was 30.05.2016. An interval of month for land valuation was given inorder to provide opportunity to potentially affected people to complete the ownership documents.

A notice for the forthcoming land and crops census was set on the bulletin board of the Municipality of Rankovce, on21.04.2016.

3.5. Analysis of Gathered Data

Gathered data, both from land value assessment and crops value assessment has been merged and compared. Someof the ownership data were checked on the Cadaster website (free service), since it was necessary to determine whethersome land owners who will lose major part of parcels actually possess other land elsewhere, or they just rely on the landthat is to be acquired for the purpose of the project. This approach helped a lot in determination of initial vulnerability ofthe land owners.

The following findings from the process of data analysis were concluded:

Some of the land that was registered in the Cadaster as certain culture, at crop survey it occurs different

There are many land owners that actually live far from the affected land (mainly in Skopje)

Most of the land owners, also own other lands nearby or elsewhere.

Agricultural activities are not the main provider of livelihood, but it is a secondary, additional, source of income

No detailed socio-economic survey needs to be conducted, since the census, of assets and its valuation,survey revealed that there is no impact on livelihood.

4. Project Impacts

4.1. Loss of Land

4.1.1. Total Land Loss

For the purpose of the planned project, the six proposed construction waste landfills will acquire 51.8ha, distributed to192 parcels of which 45.47% belongs to privately owned land, while 48.85% belongs solely to the Government ofRepublic of Macedonia. The remaining 5.68% of land to be acquired for the six construction waste landfills located in the

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first subsection is in mixed ownership, where dominantly share holds the Government of Republic of Macedonia andsmall share different private individuals.

The following table 2 shows both, distribution of parcels to be acquired by each landfill, and the amount of land to beacquired, also by landfill. Major share of number of plots to be acquired resides in the landfill called Petralica 1 (32.3%),followed by Petralica 2 (26%) and Rankovce (24%). Most of the parcels are registered as Pastures (48%), followed byarable land, fields (36%).

The location of landfill in Rankovce shows that it will mainly occupy arable land (fields), while in the location of Petralica1pastures will be mainly acquired for the purpose of landfill. The location of Petralica 2 shows some diversity and balanceregarding the number of parcels, even though transferred into land quantity some 2/3 of the total land of this landfill isactually registered as pasture.

Although there is a small number of plots to be acquired in Psaca, hence it holds the biggest part of total area ofpastures that will be acquired (45.2%). Compared to the total quantity of land that will be acquired for all six landfills, thepastures in Psaca is quarter (25%) of whole required land.

Table 2: Total Land Loss for six Construction waste landfills

4.1.2. Loss of Privately Owned Land

Privately owned land that will be acquired for six Construction waste landfills located in the first subsection counts 82.3%considered as a number of parcels. But, considered as a quantity of land it only counts 45.47% of the total required land.In other words, although it seems that high portion of land belongs to private individuals, however the real share ofprivate land does not exceeds half of the total required land.

Landfill located in Rankovce will take fertile land the most (65157m2 arable land, field - 6.5 ha), but it is the only land thatwill embrace. Landfill Petralica 1 takes 85711m2 (8.5ha) agricultural land of which 2.6% are meadows, 87.1% are

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pastures and10.2% is arable land (fields). Landfill in Rankovce will be constructed on land that represents, actually, 2/3of the total arable land (fields) that will be acquired for all six landfills.

Pastures represent 55.4% of all privately owned land, followed by 40.9% arable land (fields). Other quantities of type ofland are relatively insignificant and in total they count 3.7%. It is worth to mention that livestock breeding is very poorlyrepresented nowadays in this area.

Table 3: Loss of Privately owned land for six Construction waste landfills

4.1.3. Loss of Governmentally Owned Land

Governmentally owned land represents significant amount of land that needs to be acquired for setting of Constructionwaste landfill. In total, it counts 48.85% of the total land to be acquired where near 2/3 (61.4%) are pastures. Orchardspresent also a significant part, with 37.8% of the total land where the Government is the solely owner .

Table 4: Loss of Governmentally owned land for six Construction waste landfills

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4.1.4. Loss of Land in Mixed Ownership

There are only 5 parcels that are going to be affected and have mixed ownership title which consists of privateindividuals and Government. One parcel is a field and it is located in Rankovce (with affected 395m2), while oneuncharted road (with affected 279m2) and three orchards (with affected 28756m2) are located in Ljubinci. Actualownership status of all three orchard is that 15/16 (93.8%) belongs to the government, and the remaining part is equallydivided (1/32 each) to two individuals.

4.2. Loss of Structures

There is only one parcel with three housing-alike objects set on it that will suffer demolition. Actually, all three objectsbelong to two owners who apparently moved to Skopje area in period 70s/80s of the past century. One object used toserve as a barn for housing livestock. Second and third objects are old family houses, obviously abandoned and ruinedhousing structures, older than 40 years. The ownership list where these three objects are registered also counts fields,meadows and orchard.

4.3. Loss of Plants and Crops

At the landfill Petralica1, there will be loss of 8 pear trees and 2 parcels with rye. In Petralica2 there is a parcel withploughland and 8 walnut trees. In Rankovce landfill there are 3 parcels with wheat, while in Stracin two parcels hold intotal 17 (1+16) oak trees. All other agricultural parcels are field without active plants, either unused pastures ormeadows.

4.4. Land Use, Physical Resettlement and Livelihood Restoration

No physical resettlement is envisaged, since selection of location was carefully examined. Also, no Livelihoodendangered has been identified.

No lease on the affected land has been identified, both, nor for private, or governmentally owned parcels. The followingtable 5 gives image of the structure of parcel’s ownership in a sense of number of owners.

Table 5: Ownership structure by number of owners

During conduction of crops assessment, the assessors noted and assessed that more than half (52.5%) privately ownedparcels have actually changed the type of land due to the long period of agricultural inactivity. That is evident in bothdumpsites located in Petralica 1 and Petralica 2, and particularly Rankovce. Some 2/5 of the land that will be acquired in

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Petralica 1 and almost half of the land in planned dumpsite Petralica 2 experienced change in type of culture present onsite. In Rankovce this change is significant and only three of total number of parcels weren’t assessed as change of cropculture.Change in crop culture means that the parcel haven’t been utilized for a certain period of time, and all previouslyregistered land features and qualities naturally decreased.

Table 6: Number of parcels that naturally changed type of culture

Project affected area experienced strong wave of migration some 40 years ago, and since than it continuously losespopulation due to migration toward urban centers. Agricultural way of life has been significantly decreased andmarginalized due to the need to provide stabile income for the household from other industrial/service related sources.Thus, agricultural activities lost their dominance as main livelihood pillar. Nowadays, there is almost no household in theaffected area that lives solely on agricultural activities. Almost all affected parcels are abandoned and are not used foragricultural activities. Most of the listed owners have moved to the city and do not use their lands as a source of income.

There are 157 people registered as owners of affected parcels, being sole owner or own share in some parcel.Considering the home address, some 57 owners are registered to be living in the affected settlements, while theremaining 100 land owners live elsewhere, dominantly in Skopje area.

Some 17% (28 of 163) parcels will lose between 0 and 20 % of the land size, where 12 belong to individual owners. Lessthan 11% of parcels will lose between 20% and 40% of its size. Some 8% of the parcels will lose 40% to 60% of its size,and 12% will lose 60% to 80% of its size. The remaining 52% will lose between 80 and 100% of the size, i.e. will becompletely acquired.

Some 5% of the owners will be affected with more than one parcel, and more than 2/3 have other parcel in their propertylist, which are not being identified to be affected with this project. This was determined by examining the publiclyavailable data on property listing, available on the Cadastral Office’s website. Some of the owners have strong list ofland and housing items that are aligned together with the affected parcel(s).

There are only thirteen parcels with registered plants other beside pasture. A single parcel is registered as a forest, whiletwo parcels hold pears (8+8 trees) and one parcel walnuts (8 trees). The parcel with walnuts is actually activeploughland, without any particular culture planted. Rye is planted on five parcels, while wheat is cultivated on fourparcels. All affected parcels with planted rye will lose 100% of the parcel in total of 6585m2 or (0.66ha). Three of fourwheat planted parcels will lose 8656m2 (0.87ha), while the fourth parcel will only lose 1699m2 (47% parcel’s area). Intotal, 10355m2 (1ha) of wheat will be affected with construction of these six landfills..

The overall impact of upcoming process of land acquisition is very small. No livelihood will be serious affected, althoughthere will be complete parcel acquisition. Nine of these thirteen parcels have more than one owner, and most of them donot live in the affected area. Only one owner has three affected parcels, all with rye and in total area of 3422 m2 (0.3ha).This owner also has significant list of other property, and it can easily be verified from the official records of the Cadastraloffice.

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Both, rye and wheat, give similar quantity of annual yield, average 2 tons per 1ha (3.2 tons in best years). Each kg cropis paid 8-12 MKD/kg. Investment costs are not calculated.

According to the State Statistical Office the official average salary in Republic Macedonia1 is 22294 MKD2, and fourmember household’s monthly spending is 32263 MKD (according to the Federation of Trade Unions of Macedonia).Compared with the annual income from crops yield, these parcels, individually, barely influence the household’s income(for 3000m2, 6000 MKD, i.e 500 MKD /monthly). Land lost by expropriation can be replaced with other available inactiveand/or abandoned agricultural land, nearby.

5. Eligibility and Entitlements

5.1. Eligibility

The basic principle followed in this document is that PAPs should be assisted in their efforts to improve their former livingstandards, income earning capacity, and production levels, or at least to restore them to pre-Program level whereby lackof legal title does not exclude individuals from the eligibility to receive compensation and/or rehabilitation assistance.

PAPs eligible for compensation include those who have formal legal rights to land or other assets, and those who initiallydo not have formal legal rights to land or other assets but have a claim to legal rights based upon the laws of the country;upon the possession of documents such as land tax receipts and residence certificates; or upon the permission of localauthorities to occupy or use the project affected plots.

Those who have no recognizable legal right or claim to the land they are occupying are also eligible for compensation forimmoveable assets. The check of all affected parcels for these six landfills shows that there are found no such PAPs

The WB’s OP 4.12 recognizes that individuals and households who occupy project-affected areas after the cut-off dateare not eligible for compensation. All people moving into the project area and/or people conducting construction works,planting trees, etc. after the cut-off date are non-eligible PAPs and thus will not receive any compensation. Advancenotice will be given, requesting them to vacate their premises and dismantle affected structures prior to projectimplementation.

5.2. Entitlements

Land acquisition and resettlement are implemented according to a compensation and entitlements framework in line withMacedonian laws and regulations and WB OP 4.12. Where they are different, the entitlements most favorable to thePAPs are applied, as set out in the Entitlement Matrix below.

The entitlement matrix is based on the premise that resettlement, rehabilitation and compensation programs shouldimprove or, at a minimum, maintain the PAPs pre-Project living standards and ensure their participation in Projectbenefits. This is reflected in the following principles of compensation.

All PAPs living in the Project area before the cut-off date are considered for compensation for their losses and/orrehabilitation assistance. Lack of legal rights or titles does not make them ineligible for entitlements;

1 August 2016.

2 1 MKD = ca. 57 USD

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Table 7: Entitlement Matrix

Category of

PAP

Property Type of Projectaffected right orproperty or loss

Entitlement

Owner (1) Land Loss of fraction ofagricultural land andthe rest of the parcelis viable

Registration of land parcels according to Macedonianlegislation, prior to expropriation, free of costs. Cashcompensation for affected land at replacement cost(equivalent to the market value of the property, sufficient toreplace the lost assets and cover transaction costs)

Owner (1) Loss of fraction ofagricultural landRest of the parcel isnot usable

Registration of land parcels according to Macedonian legislation,prior to expropriation, free of costs. Cash compensation for allaffected land at a replacement cost, orLand plot of similar size and characteristics, with a secure tenurestatus

Tenant (1) Assistance in lease of alternative land/property to re-establish use

Owner /Tenant(1)

Housingstructures

Loss of structure Cash compensation for affected structure at replacementcost

Owner /Tenant(1)

StandingCrops

Loss of annual Crops The right to harvest crops or Cash compensation for annualcrops at replacement value

Claim toownership (2)

Land Loss of land Cash compensation for affected land at replacement cost

No recognizablelegal right orclaim (3)

Land andotherassets

Loss of land andassets

No cash compensation for affected land at replacement cost.Cash compensation for assets at replacement costs.

6. Compensation

PAPs will be compensated at full replacement and substitution costs without depreciation, and relocated or resettled inand after due consultation with them. The preliminary compensation rates for replacement and substitution cost will beproposed to the PAPs to give them an opportunity to compare those with the prevailing market rates.

All fees and taxes on land and/or house transfers are waived or otherwise fees and taxes are included in acompensation package for land and/or house.

Cash compensation is preferred mean for compensation. Payment of cash compensation for lost assets may beappropriate where (a) livelihoods are land-based but the land taken for the project is a small fraction3 of the affectedasset and the residual is economically viable; (b) active markets for land, housing, and labor exist, PAPs use suchmarkets, and there is sufficient supply of land and housing; or (c) livelihoods are not land-based. Cash compensationlevels should be sufficient to replace the lost land and other assets at full replacement cost in local markets, calculatedas of the cut-off date.

3 As a general principle, this applies if the land taken constitutes less than 20% of the total productive area; see also WB OP 4.12, point 12, footnote 17.

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Compensation in cash for all residential, commercial or other structures will be paid at replacement cost of thesestructures, without any depreciation of the structure and without deduction for salvageable materials.

6.1. Valuation of Affected Assets

During RAP preparation, PESR has engaged services of a competent and certified independent assessor (Bureau forForensic Expertise), responsible for determining replacement cost of affected properties and assets. The methodology ofassessment of non-movable assets is described in the Methodology for assessment of the market value of the realestate (Official Gazette of the Republic of Macedonia No. 54/12), while the methodology of assessment of value ofmovable assets is described in the Methodology for assessment of value of the movable assets (Official Gazette of theRepublic of Macedonia No. 178/11).

The methodology for assessment of value of crops and plants is based on several academic and statistical resources:

1. Field crops, orchards and vineyards 2013-2015, Statistical Review. State Statistical Office, Skopje.

2. Prices of agricultural products on retail, wholesale and livestock markets, 2011-2015. State Statistical Office.

3. Costs and Calculation (Textbook) – M. Milanov, A.Martinovski Stojcevska, Faculty for Agricultural Sciences andFood, Skopje

4. Taxations in Agriculture (Textbook) – M. Milanov, A.Martinovski Stojcevska, Faculty for Agricultural Sciencesand Food, Skopje

The following table 8 shows the assessed compensation price for acquired plants and crops for privately owned land,distributed by landfill.

Table 8: Valuation price for Crops and Plants

The Market Value of agricultural land, forests and pastures is determined in accordance with the average price ofconducted purchases of land during the previous year. If no purchases are made in the concrete municipality in theprevious year, as a market value is considered the average compensation for m2 expropriated agricultural land in themunicipality. If there is still lack of information on the purchased and expropriated land in the previous year, in theconcrete municipality, than the prices of neighbouring municipalities will be taken into consideration.

During the valuation process, PAPs, local officials and relevant government offices (such as the Cadaster) are consulted.

Following table 9 shows valued price of land per m2, for each type and class of land to be acquired per landfill.

Table 9: Valuation of the Market price of the land

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In formation of the market price, the following documents from local self-governments Kratovo, Rankovce and KrivaPalanka:

- Decision No. 07-134/7 from 02.03.2011 for Determining the market price of real estate in the Municipality ofRankovce, by Council of Municipality of Rankovce

- Decision No. 07-828/1 from 28.05.2010 for Determining the approximate market price of agricultural land inthe Municipality of Kratovo, by Council of Municipality of Kratovo

- Decision No. 07-779/1 from 30.05.2014 for changes in the Decision for Determining the real estate tax ratein the Municipality of Kratovo, by Council of Municipality of Kratovo

- Decision No. 09-581/7 from 27.02.2015 for Assessment of the market price of the real estate, constructionand agricultural land by zones in the Municipality of Kriva Palanka for 2015, by Council of Municipality ofKrica Palanka.

At the moment of creation of this document the Assessment of Lost structures and the Assessment for Crops and Plantsfor the landfill Ljubinci were not conducted.

6.2. Replacement valuation

With regard to land and structures, the replacement value is defined as follows:

(i) For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equalproductive potential or use located in the vicinity of the affected land, plus the cost of preparing the land tolevels similar to those of the affected land, plus the cost of any registration and transfer taxes.

(ii) For land near settlement areas, it is the pre-displacement market value of land of equal size and use, withsimilar or improved public infrastructure facilities and services and located in the vicinity of the affected land,plus the cost of any registration and transfer taxes.

(iii) For houses and other structures, it is the market cost of the materials to build a replacement structure with anarea and quality similar to or better than those of the affected structure, or to repair a partially affected structure,plus the cost of transporting building materials to the construction site, plus the cost of any labor andcontractors’ fees, plus the cost of any registration and transfer taxes.

In determining the replacement cost to be compensated to the PAP, depreciation of the asset and the value of salvagematerials are not taken into account, nor is the value of benefits to be derived from the project deducted from thevaluation of an affected asset. Where domestic law does not meet the standard of compensation at full replacementcost, World Bank guidelines and technical specifications for compensation at replacement cost are applied.

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Compensation for land, structures, business, fixed improvements and other temporary assets are based on marketvaluation, productivity valuation, negotiated settlements, material and labor valuation, disposition of salvage materialsand other fees paid. It should be noted that lack of title, license or permit is not a bar to compensation.

7. People’s Participation and Disclosure

This project has been ongoing for more than two decades, and experienced several changes. For the whole period localpopulation has been informed that this project must meet its realization, sooner or later. But the exact alignment andamount of land that will be acquired was unknown by the moment of completion of final design which was submitted tothe governmental institutions for provision of Construction permit. Once official permits were obtained the localpopulation, and particularly affected persons were invited personally to participate on the series of meetings where theywere informed about the project activities and discussed compensation measures, and particularly planned resettlementactivities.

7.1. Resettlement Related Meetings

Three such meetings were held with land owners that are going to be affected with the land acquisition process, fromboth subsections, including Construction waste landfills. In the period 15-17 March 2016, three meetings with theaffected parties (individuals and legal entities) were held in three different locations (Kriva Palanka – 15.03.2016, Skopje- 16.03.2016, Rankovce - 17.03.2016). In Kriva Palanka and Rankovce, premises of Local Self Government were used,while in Skopje the meeting was held in the premises of PESR. All meetings were scheduled at noon (12.00 o’clock).

More on this series of Disclosure and Participation Activities can be found in Annex 4.

7.2. Future Participation and Disclosure Activities

PAP participated throughout the development activities of this project and will continue to participate in implementationprocess of resettlement activities /land acquisition process. They are consulted by the PESR and the RIU and are invitedto participate in public meetings held by PESR in every stages of the process. The PAPs are provided with reliableinformation on the project, its impacts and the proposed mitigation strategies and economic rehabilitation activities.

An information meeting is planned to be held early in November 2016, where this document will be presented,compensation rates will be disclosed and discussed and the procedure for expropriation, as well as available assistanceoffered by PESR will be clarified.

The affected parties will be provided with an opportunity of presenting their ideas and suggestions as inputs into theplanning and implementation of the land acquisition activities. These will be achieved through a series of participatoryexercises and focused discussions with the PAPs, thus ensuring that the affected parties have a stake in the outcomesof the process.

PAPs will be also involved in the committees to be established, which will ensure their participation in the decision-making process in various stages of the RAP process: preparation and implementation.

After completion of RAP, a brief survey will be undertaken by the RIU amongst PAPs to assess their satisfaction with the process and results of the RAP.

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8. Implementation Arrangements

8.1. RAP Implementation Unit

A RAP Implementation Unit (RIU)4 within PESR is established to implement approved RAPs. All activities indicated in theRAP are covered from PESR funds and be completed prior to commencing of the construction activities. PESR ProjectImplementation Unit PIU is responsible for preparing and implementing approved RAPs, under the supervision of theWorld Bank.

Major responsibilities and activities of the RIU/ PIU include – but may not be limited to – the following:

Verify the ARAP census and asset inventory data on the demarcated parcel;

Undertake cadastral and topographic surveys and ensure correction of data of measuring and inventory as requiredby possible design changes;

Closely consult with PAPs and settlements representatives;

Prepare documentation for registration of new land plots;

Provide the public with necessary information;

Negotiations and agreement with PAPs;

Delivery of compensation and, as needed, implementation and supervision of rehabilitation measures. Cashcompensations will be paid on bank transaction account.

Observe grievance procedures;

Court processing of cases where no agreement is reached;

Expropriation proceedings through the court, as required;

Construction of infrastructure (in case resettlement is necessary) and arrangement of relocation of PAPs;

Prepare quarterly reports

Satisfactory completion of the ARAP is a condition for any (physical) works to start.

8.2. ARAP Implementation Process

The ARAP implementation schedule is described in the following table below.

Table 10: Crops and Plants Valuation

Task Period

ARAP Preparation October 2016Draft ARAP public discussions and finalization November 2016ARAP Disclosure November 2016Organizational Preparations November 2016

ARAP Implementation December 2016 - January 2017

Final Monitoring Report March 2017

4 Responsible person for social aspects from the Environmental and Social Aspects Unit within in Development Department and a person from the Legal Department

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9. Grievance Redress Mechanism

9.1. Grievance Redress Committee: Tasks and composition

A Grievance Redress Committee at Program level has been established to address complaints and grievancespertaining to resettlement and to pre-empt all disagreements being referred to the court. The Committee includes PESRstaff, a representative of affected municipality and representative of the local communities affected by the Project. Asimilar grievance redress committee composed of representatives from the PIU, local NGOs and Communities, as wellas an independent expert will be convened by the PESR PIU on a case by case basis, to address complaints andgrievances pertaining to any resettlement This is informal mechanism in addition to existing formal grievance tool thatexists through the legal system.

All grievances should be addressed, through the form set in the Annex 3, to the following responsible person:

Mrs Biljana Lazevska, Manager of Human Resources Management and General Affairs Unit

Tel: + 389 (0)2 3118-044 ext.119

Fax: + 389 (0)2 3220-535

email: [email protected]

Address: Public Enterprise for State Roads

Dame Gruev str. 14,

1000 Skopje, Republic of Macedonia

9.2. Procedure

Under the supervision of the PESR, the RIU/ PIU will make every effort to achieve an amicable settlement of all identifiedresettlement issues under the RAP at the Project. If this attempt fails, the PAP may at his/her discretion, deposit acomplaint either with the court or Grievance Redress Committee. The proposed redress procedure and mechanisms willbe presented to and discussed with the PAPs at the early stages of the RAP preparation process. In order to effectivelycollect all grievances from the potential PAPs, a specific site(s) may be designated for timely depositing and collection ofall complaints. The PAPs can deposit complains orally (these shall be properly documented at the moment of depositingcomplain at the designated site) or in written. The response will be provided within a period of two weeks after receivingthe complaint. If the case is not resolved at the level of the Grievance Redress Committee, it may be submitted by eitherparty to the Court. Any fees required for this purpose will be paid by PESR after verifying that the PAP is a recipient ofSocial Cash benefits. All other PAPs will be responsible for their own costs.

9.3. Court

If the RIU and the PAP fail to reach an agreement on the acquisition of private properties, lack of agreements will besettled by the court proceedings. In cases where complaints and grievances regarding the RAP implementation andcompensation are not amicably settled and mediation by the Grievance Redress Committee remains also unsuccessful,the PAP will also have the right to appeal the case to the Court as a last resort. The Courts’ decision shall be final and beexecuted.

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10. Supervision and Monitoring

Resettlement activities will be regularly supervised and monitored by personnel of PESR (the PIU). Reporting on internalmonitoring will be carried out quarterly by PIU and at the end of each RAP completion. A RAP completion report will besubmitted to World Bank. Internal monitoring and supervision will:

(a) verify that the census of all PAPs has been carried out;

(b) verify that the RAP and baseline survey (as appropriate) has been prepared for Project;

(c) verify that property valuation and resettlement has been carried out in accordance with the provisions of RPF andthe respective RAP;

(d) oversee that all resettlement measures are implemented as approved;

(e) ensure that funds for implementing resettlement activities are provided in a timely manner, are sufficient for theirpurposes, and are spent in accordance with the provisions of this RPF and the respective RAP.

11. Costs and Budgets

A detailed cost of resettlement, with a breakdown by agricultural land, residential land, houses and other assets to beaffected is presented in the following table. All costs for resettlement will be funded through PESR funds.

Table 11: Direct Costs for Expropriation

Task Costs (MKD) 5

Agricultural land 14 860 010

-- Pastures 7 056 215-- Field 5 224 670-- Meadow 176 325-- Orchards 2 279 930-- Forest 38 300-- Uncharted Road 83 700-- Rocks 870

Crops and plants 303 590

-- Pastures 226440-- Ploughland 370-- Walnuts 14720

-- Pears 28240-- Rye 6112-- Wheat 27708Residential land (housing structures) 33 000

TOTAL: 15 196 600

Contingency 15% 2 279 500Grand TOTAL: 17 476 100

5 1 MKD = ca. 57 USD

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ANNEXES

Annex 1: Location of Construction Waste Landfills along First Subsection

1

Annex 2: List of parcels to be acquired with compensation price) 6

6 Names and addresses has been removed in order to protect privacy of the affected individuals.

2

DESCRIPTION OF TABLE ITEMS

P. list: Property list

Location Called: Micro location of the parcel whose name is not official, but recognized and used by local community

Culture: Identifies the type of land (Field, Pasture, Meadow, Forest, River Bank, Orchards, Uncharted Road etc)

Class: Class / Quality of land

Parcel +: Current number of affected parcel in Cadastral Municipality

Parcel –: Assigned number of impacted parcel in Cadastral Municipality (New Parcel)

Area +: Current area (in m2) of affected parcel in Cadastral Municipality

Area – Area (m2) that will be taken from current parcel:

Land: - Amount that will be compensated for taken land (“Area –“ x “Compensation rate”)

Plants: Amount that will be compensated for standing crops/plants (determined by assessors)

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Annex 3: Grievance Form

Grievance Form

Reference No:

Name and Surname

Contact Information:

Please note how you liketo be contacted (mail,phone, e-mail)

By Post: Please provide mailing address:______________________________________________________________________________________________ By Phone: _______________________________________________ By E-mail _______________________________________________

Preferred language forcommunication

[Macedonian] [Other:____________________________]

Description of Grievance:

Date of Grievance One tme incident/grievance (date _______________) Happened more than once (how many tmes? _____) On-going (currently experiencing problem)

What would you like to see happen to resolve the problem?

Signature: ___________________________ Date: ________________

Please return this form to:

Ms Biljana LazevskaTel: + 389 (0)2 3118-044 ext.119Fax: + 389 (0)2 3220-535email: [email protected]

Public Enterprise for State Roads

Dame Gruev str. 141000 Skopje, Republic of Macedonia

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Annex 4: Summarized Report for Realized Meetings with Affected Parties

SUMMARIZED REPORT FOR REALIZED MEETINGS WITH AFFECTED PARTIES FOR THE PROJECT

Construction of state road A2, Section Rankovce – Kriva Palanka

In the period 15-17 March 2016, three meetngs with the affected partes (individuals and legalenttes) were held in three different locatons (Kriva Palanka – 15.03.2016, Skopje - 16.03.2016,Rankovce - 17.03.2016). In Kriva Palanka and Rankovce, premises of Local Self Government wereused, while in Skopje the meetng was held in the premises of PESR. All meetngs were scheduled atnoon (12.00 o’clock).

Three meetngs were held in different locatons due to relatvely large number of affected partes andtheir different locaton of residence. In order to decrease the traveling cost of the affected, andhaving respect of their tme and working obligatons, this type of organizaton of informatonalmeetngs regarding the incoming land acquisiton process, seemed very logical.

Number of identfied affected partes with residence in both affected municipalites, Rankovce andKriva Palanka, counts 353 partes (people/legal enttes) - 132 in Rankovce and 221 in Kriva Palanka.They were all invited in their local municipal center. The remaining 228 affected partes (people/legalenttes), with residence mainly in Skopje and other cites in Macedonia (213) or abroad (15), wereinvited at the meetng in Skopje.

The meetng in Kriva Palanka was visited by at least 123 people (according the presence list), whilethe meetng in Rankovce was attended by at least 41 people. At the meetng in Skopje, 58 peoplewere present. Statstcally, nearly half of the affected people living in the project area attended bothmeetngs in Kriva Palanka and Rankovce. The land owners invited at the meetng in Skopje showeddrastcally lower interest for the project. Slightly above quarter of all invited people appeared at theSkopje meetng.

The team of speakers was conducted by both external profiles: Project designer (Civil engineer),Social /Resettlement Specialist (Sociologist) and PESR representatves (Environmental Advisor andLegal Advisor for Expropriaton).

The meetngs were of an informatve character. Only land owners were personally invited (by officialpost) due to the fact that there has been ongoing land, plants and property assessment (census)conducted by The Bureau of Court Expertse, and it was necessary to check and secure first what ison the ground and later to engage illegal / non-formal land users (if any).

The meetngs were opened by the PESR representatve and speakers were introduced.

The Project designer presents the Project from technical perspectve set on the satellite image layer.The PESR’s Legal Advisor for Expropriaton explains the whole process of expropriaton, together withthe logic of the process itself and the reason for its practce. Legal mechanism that exists in natonal

9

law for protecton of affected people was presented. Social/Resettlement Specialist presents theWorld Banks’ Operatonal Policy 4.12 Involuntary Resettlement, the existence of grievancemechanism for affected partes and ongoing socio-economic survey for vulnerable affectedhouseholds. Environmental Advisor within PESR led the presentaton and discussion of all threemeetngs.

After presentatons, the affected individuals asked series of questons to which all presenters, each inits specialty, replied appropriately.

Dominant interest at all three meetngs was the price for land that will be paid. The process ofexpropriaton was also set as an interest, but it was not in the forefront. Affected people were willingto know:

when the expropriaton will begin how expropriaton process is planned to be conducted when people will get their compensaton can they disagree with the proposal and what happens after can PESR buy the whole plot, not just partally, regardless of the proportons of needed land questons regarding fair compensaton other questons related to expropriaton

Significant characteristc that deviates from the other two meetngs (Skopje and Kriva Palanka) is thatin Rankovce the situaton with ownership ttle is not so organized. At the meetng in Rankovce twopeople claimed that they don’t hold legal ownership of the land they use, but they use it anywaysince this land used to belong to their ancestors. Also, since there was a strong migraton some 40-50years ago, when the owners of the land past away some small amount of parcels is stll enttled tothem and no probate has been conducted. So it is expected, along the whole expropriaton line, thenumber of successors to increase.

During the meetng a questonnaire was distributed and kindly asked to return it fulfilled at the endof the meetng. The surveyed owners that returned the uncompleted questonnaire, when TheBureau of Court Expertse completes the Land, plants and property assessment (the Census), will bealso contacted in order to assess the vulnerability of their household due to the changes made withthis projects in their local environment.

Skopje, 19.04.2016

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APPENDIX 1: QUESTIONNAIRE FOR AFFECTED PARTIES (PEOPLE/LEGAL ENTITIES)

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APPENDIX 2: IMAGES FROM THE MEETINGS WITH AFFECTED PARTIES (PEOPLE/LEGAL ENTITIES)

Image 1: Meetng in Kriva Palanka


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Image 5: Meetng in Skopje

Image 6: Meetng in Skopje

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Image 7: Meetng in Rankovce


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APPENDIX 3: LIST OF PARTICIPANTS

Meetng: Kriva Palanka

Meetng: Skopje

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Meetng: Rankovce

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