AZERBAIJAN REPUBLIC

MINISTRY OF TRANSPORT

AZERROADSERVICE OJC

ALAT-ASTARA MOTORWAY

The Selection of Preferred Alternatives Preparation of Preliminary and Detailed Design for Alat-Astara Highway including Resettlement Plan

and Land Acquisition Plan

Contract Amendment No. 1

Resettlement Action Plan for Section 1 (1A and 1C)

FINAL REPORT

March 2010

TABLE OF CONTENTS

Executive Summary ......................................................................................................................... 1

1. INTRODUCTION ....................................................................................................................... 3 1.1. Project Description .............................................................................................................. 3 1.2. Road Section under Evaluation .......................................................................................... 5 1.3. Summary of Key Impacts .................................................................................................... 6 1.4. Land Acquisition and Resettlement Objectives .................................................................. 7 1.5. Options Considered to Minimize Impacts .......................................................................... 7 1.6. Unavoidable Impacts .......................................................................................................... 7

2. SOCIOECONOMIC BACKGROUND OF THE PROJECT AREA .............................................. 8 2.1. National Context ................................................................................................................. 8 2.2. Local Context (Subproject Profile) ...................................................................................... 9

3. POLICY AND LEGAL FRAMEWORK ...................................................................................... 15 4.1. Azeri Legislation ............................................................................................................... 15 4.2. World Bank Policy ............................................................................................................ 21

4.3. Differences of the Azerbaijan legislation and the World Bank Operational Policy and Measures to Bridge the Gaps ........................................................................... 21 4. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ..................................................... 25

4.1. Census of Affected Households and Persons .................................................................. 25 (i) Socioeconomic Profile of Project Affected Persons .................................... 25 4.2. Affected Assets ................................................................................................................. 27

(i) Affected Land ............................................................................................. 27 (ii) Land Impacts .............................................................................................. 27 (iii) Impacts on Buildings and Structures .......................................................... 30 (iv) Impacts on Crops and Trees ...................................................................... 30 (v) Other Impacts ............................................................................................. 31

4.3 Impact Assessment: Approach and Methods .................................................................... 32 (i) Cadastral Mapping ...................................................................................... 32

(ii) Census ......................................................................................................... 32 (iii) Asset Inventory/Detailed Measurement Survey (DMS) and Socioeconomic Survey .......................................................................................................................... 32

(iv) Inventory of Project Impacts ....................................................................... 33 (v) Compensation Methodology ........................................................................ 33 (a) Land Values ......................................................................................... 33 (b) Compensation for Trees and Crops ...................................................... 38 (c) Compensation for Building and Structures ............................................ 39 (d) Severe Impact ....................................................................................... 39

5. GRIEVANCE AND REDRESS MECHANISM .......................................................................... 40 6. INFORMATION DISSEMINATION, CONSULTATION, PARTICIPATORY APPROACHES

AND DISCLOSURE REQUIREMENTS ................................................................................ 41 6.1. Identification of Project Stakeholders .......................................................................... 41 6.2. Information Dissemination, Participation, Consultation ............................................... 41 (i) Phase 1: Consultation during the Project RAP Preparation ....................... 41

(ii) Phase 2: Consultation during RAP Implementation ................................... 42 7. COMPENSATION AND REHABILITATION MEASURES UNDER THIS RAP ........................ 44

7.1. Entitlement Matrix and Compensation Measures ............................................................. 44 (i) Compensation Entitlements ....................................................................... 44 (ii) Eligibility and Cut- off .................................................................................. 45

7.2. Gender Impacts and Other Mitigating Measures .............................................................. 48 8. RAP IMPLEMENTATION AND INSTITUTIONAL RESPONSIBILITY ..................................... 49

8.1. Implementation Activities and Timetable ........................................................................ 49 (i) Preparation/Finalization of RAP ................................................................. 49 (ii) RAP Implementation .................................................................................. 50 (iii) Expropriation Proceedings ......................................................................... 51 (iv) Construction Phase ................................................................................... 52 (v) Grievance and Redress Action and Monitoring Activities .......................... 52 (vi) External Monitoring .................................................................................... 56 8.2. Institutional Responsibility ............................................................................................ 57 (i) “Azerroadservice” OJSC - MOT ................................................................. 57 (ii) Court of Azerbaijan .................................................................................... 57 (iii) State Committee on Property Issues ......................................................... 57 (iv) Contractor .................................................................................................. 58 (v) Monitoring Consultant ................................................................................ 58

9. MONITORING AND REPORTING .......................................................................................... 59 9.1 Internal Monitoring ......................................................................................................... 59 9.2 External Monitoring ........................................................................................................ 60

10. RESETTLEMENT COST AND BUDGET ................................................................................ 61 10.1 Compensation for Land Acquisition ............................................................................... 61 10.2 Compensation for Affected Structures and Buildings .................................................... 61 10.3 Compensation for Affected Crops and Trees ................................................................. 61

10.4 Administrative Costs ...................................................................................................... 62

10.5 Summary of RAP Budget Requirement ........................................................................ 62

GLOSSARY

Affected person People (households) affected by project-related changes in use (or household) of land, water or other natural resources

Compensation Money or payment in kind to which the people affected are entitled in order to replace the lost asset, resource or income

Expropriation Government's action in taking or modifying property rights in the exercise of sovereignty

Eminent domain Regulatory measure by government to obtain land

Entitlement Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base

Host population Community residing in or near the area to which affected people are to be relocated

Income restoration Re-establishing income sources and livelihoods of people affected

Involuntary Development project results in unavoidable resettlement losses, resettlement that people affected have no option but to rebuild their lives, income and asset bases elsewhere

Relocation Rebuilding housing, assets, including productive land, and public infrastructure in another location

Rehabilitation Re-establishing incomes, livelihoods, living, and social systems

Replacement rates Cost of replacing lost assets and incomes, including cost of transactions

Resettlement effect Loss of physical and non-physical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms

Resettlement plan A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation

Social preparation Process of consultation with affected people undertaken before key resettlement decisions are made, to build their capacity to deal with resettlement

Vulnerable groups Distinct groups of people who might suffer disproportionately from resettlement effects

CURRENCY EQUIVALENTS (as of March 2010)

Currency unit - manat (AZN)

1 US $ = .80 AZN 1 AZN = 1.25 US$

ACRONYMS

/ha = per hectare ADB = Asian Development Bank ARS OJSC = Azerroadservice Open Joint Stock Company CPS = Country Partnership Strategy DMS = Detailed Measurement Survey EMP = Environmental Management Plan GDP = Gross Domestic Product GEC = Grievance Examination Committee IAS = Individual Agreement Statement IDA = International Development Association IDP = Internally Displaced Persons LAD = Land Acquisition Department MENR = Ministry of Ecology and Natural Resources MOT = Ministry of Transportation NGO = Non Government Organisation PAP = Project Affected People PIU = Project Implementation Unit PIB = Project Information Brochure RAP = Resettlement Action Plan RMO = Road Maintenance Office ROW = Right of Way SLCC = State Land and Cartography Committee SES = Socio-economic Survey TOR = Terms of Reference WB = World Bank List of Annexes:

Annex 1 - Sample Form: Asset Inventory and Detailed Measurement Survey Annex 2 - Sample Form: Socioeconomic Survey Annex 3 - List of Private Landowners and Size of parcels required for ROW Annex 4 - List of Owners/Location of affected Trees and Values Annex 5 - List of Owners/Location of affected Structures and Values Annex 6 - Compensation for affected lands per village Annex 7 - Sample: Project Information Brochure Annex 8 - Summary of Consultation Activities: List of Participants and Issues Annex 9 - Summary of APs and corresponding Compensation for Assets Annex 10 - LARP Approval Process according to the latest (04.04.2009) Resolution of the Cabinet of Ministers Annex 11 - Sample of Notification Letter

List of Figures: Figure 1 - Project Location Map Figure 2 - Proportion of PAPs in various sources of primary HH Income Figure 3 - Sample: Cadastral Lot pattern in Project Area

List of Tables: Table 1 - Area and Number of Settlements of the Subproject Districts Table 2 - Population Data of the Subproject Districts Table 3 - Land Classification and Uses in the Project Area Table 4 - Proportion of Households with Access to utilities in the project Regions Table 5a - Availability of Social Welfare Service in the Project Area Table 5b - Availability of Facility and Services in the Project Area Table 6 - Comparative Income Profile of Aran and Baku Economic Region Table 7 - Sources of Income by Gender Category in the Project Area Table 8 - Incidence of Poverty in Azerbaijan Table 9 - Overview of National Regulatory Framework in Road Sector Table 10 - Summary of Losses of Affected Persons/households Table 11 - Selected Demographic Data of APs, Section 1 Table 12 - Asset Ownership and Access to Basic Services Table 13 - Sources of Income of the APs, Section 1 Table 14 - Summary of Impacts on Lands of Various Categories Table 15 - Summary of Private Land Take in the concerned districts of Section 1 Table 16 - Summary of Municipal Lands Affected by Section I Alignment Table 17 - Summary of State Land Reserve Affected by Alignment Table 18 - Summary of Affected Structures by Location Table 19 - Location, Category and Number of Affected Trees Table 20 - Revised unit prices of land in Section 1 Table 21 - Average market prices of agricultural land in Mugan-Salyan Table 22 - Average market price of agricultural and residential land in Gobustan Table 23 - Average market price of agricultural and residential land in Shamakhy Table 24 - Category and type of Affected Trees Table 25 - Average cost of Affected Buildings Table 26 - Data on severely affected people Table 27 - Entitlement Matrix Table 28 - RAP Implementation Schedule Table 29 - Internal Monitoring Indicators Table 30 - Summary of Land Compensation Cost Table 31 - Summary of Compensation Cost for Structures Table 32 - Summary of Compensation Cost for Trees Table 33 - Summary for Administrative Costs Table 34 - Summary of RAP Budget Requirement

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EXECUTIVE SUMMARY

This Resettlement Action Plan (RAP) has been prepared in accordance with the laws and regulations on land acquisition and resettlement in Azerbaijan as well as the Resettlement Policy Framework (RPF) which was prepared as part of the Highway II Project in line with the Involuntary Resettlement Policy (OP4.12) of the World Bank. The Highway II project will upgrade the M3 highway between Alat and Masalli over 143km. The entire itinerary is divided into three sections. This RAP covers the 32.4km section of Alat-Astara Highway which consists of 9km section of Alat settlement and 23.4km section of the M3 Highway between Kursangi and Salyan Section (Section 1A and 1C). In this RAP, negative impacts expected to occur from the construction of Alat-Salyan Section of the M3 Highway are described, and measures to mitigate the impact, as well as the estimated cost and implementation arrangements, are presented. The final alignment as provided by the Design Consultant and approved by the Azerroadservice OJSC (ARS) of the Ministry of Transport was overlaid over the digitized cadastral maps of the area in the State Land and Cartography Committee records. The extent of impact on land and properties for this road section is the result of the construction of standard dual carriageways with two lanes each, junctions and interchanges, bridges and underpasses, drainage structures and culverts, off-road service areas, installation of road furniture, signs and markings for traffic safety and control devices and others. The project will affect 149 households of which 25 are women-headed. All of the households will lose part of their privately-owned agricultural lands. A total of 241.0625 ha of land, including 45.6688 ha of private land, 21.6929 ha of municipal land and 173.7008ha of state land, is required as the right of way for the proposed construction of the approximately 32.4km section of the highway itinerary. Most of the affected private lands are cultivated to produce grain, alfalfa, and potato. There are three structures within the affected plots. There are only three structures (a house, a stable and incomplete structure) that will be affected. The RAP provides measures and mitigations to ensure that the quality of life of the affected persons and families are not negatively affected by the motorway. The RAP provides mitigations and rehabilitation measures to ensure that the livelihood of the affected persons and families will not be lowered as a result of the project. The entitlement matrix provides different measures to address these losses. The RAP also provides for mitigating measures for temporary impacts resulting from civil work. Such measures include the following: • Provision of temporary access/crossings for pedestrians, livestock and vehicles during

the construction activities. • Measures for traffic safety and accident prevention. • Rehabilitation of affected local roads, pedestrian sidewalks, etc. • Relocation of public utilities (electricity lines, irrigation canals, etc). Addressing these temporary impacts will be the primary responsibility of the Civil Work Contractor and will be ensured through the inclusion of such provisions in the Civil Work Contract and compliance by the Contractor to these provisions will be duly monitored as part of Environmental Monitoring Plan (EMP).

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The Land Acquisition Department (LAD) of ARS is responsible for the implementation of this RAP. Cost of compensation and mitigating measures including information disclosure, public consultation and internal monitoring activities will be part of the Project budget allocated to the ARS. Compensation will be paid to project affected persons (PAP) by the LAD. RAP implementation will be completed before the start of civil work activities.

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RESETTLEMENT ACTION PLAN FOR SECTION 1 OF THE ALAT TO SOUTH OF MASALLI HIGHWAY

1. INTRODUCTION

This Resettlement Action Plan (RAP) has been prepared in accordance with the laws and regulations on land acquisition and resettlement in Azerbaijan as well as the Resettlement Policy Framework (RPF) which was prepared as part of the Highway II Project in line with the Involuntary Resettlement Policy (OP 4.12) of the World Bank. The Highway II Project will upgrade the M3 highway between Alat and Masalli over 143km. The entire itinerary is divided into three sections. This RAP covers the 32.4km section of the M3 Highway (Section 1A and 1C). RAPs for other sections of the M3 Highway are under development. In this RAP, negative impacts expected to occur from the construction of Alat -Salyan Section of the M3 Highway are described, and measures to mitigate the impact, as well as the estimated cost and implementation arrangements, are presented. The RAP seeks to ensure that persons and households unavoidably losing land or properties as a result of the Project, after exerting all effort to avoid and/or minimize negative impacts, attain equal if not better standard of living than it would have been without the project. All policies, proposals, compensation and rehabilitation measures included in this RAP are aimed to meet this objective. The Azerroadservice OJSC (ARS) under the Ministry of Transport, which has the lead responsibility for road construction, shall also be responsible for the implementation of the RAP through its Land Acquisition Department (LAD). The RAP for Section 1A and 1C of Alat – Astara Highway has been prepared based on: (i) the Resettlement Policy Framework for Azerbaijan Highway Improvement and Development endorsed by the World Bank (published in http://worldbank.org/az); (ii) field assessments of the concerned alignment in consonance with the Technical Consultant during the Detailed Design Phase; (iii) verification of the centreline and right of way (ROW) boundaries against the cadastral maps of the area as prepared by the State Land and Cartography Committee; (iv) census/survey of affected parcels and the respective affected persons/households; (v) detailed measurement survey and inventory of the affected plots and assets therein; (vi) socioeconomic survey of a sample affected households; (vii) valuation of affected lands, property and other assets; (viii) consultation with the local officials, key informants in the affected villages as well as the project affected persons (PAP); (ix) assessment of potential relocation requirements (x) unit prices determined by the MoF for the affected land and structures; and (xi) secondary data obtained by consultant hired by ARS to verify the unit prices determined by the MoF.

1.1 Project Description Azerbaijan’s geographical position makes it an important link between the Black and Caspian Seas and between Russia and Iran. Trade with its neighbours, both transit and bilateral, is an important feature of the economy of Azerbaijan. Economic prospects are bright on the short and middle terms, hinging heavily on the development of the oil and gas sectors. The overall GDP has increased from 8.5 billion USD in 2004 to 43.2 billion USD in 2009, with non oil GDP increasing from 5.7 billion USD in 2004 to 19.6 billion USD in 2009. With much of the non-oil trade being small size shipments transported by road to neighbouring countries, access to international markets requires the provision of suitable road transport infrastructure on corridors, ready to meet mid-term strong traffic increase, to replace the presently narrow, low quality roads.

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The World Bank’s Country Partnership Strategy FY07-10 for Azerbaijan identified the importance of transport links and transit corridors as a vital component to the development strategy of the country, particularly for the non-oil sector. Roads and transport network connecting the main regional centres with markets in Baku, neighbouring countries and Europe are crucial. The Bank’s assistance to the transport sector targets the rehabilitation and construction of main highway networks connecting Azerbaijan to its neighbours in the region particularly for improving several road segments to the west and south of Baku under the Azerbaijan Motorway Improvement and Development or Highway II Project. The Section under evaluation is part of the main highway (the Alat – Astara road under the Highway II Project) proposed to connect the country’s capital to its immediate neighbour in the southern border. It aims to improve the transport of goods and services from and to the central capital, Baku with the south border in Astara with Iran. The road to be constructed is a four lane road category with no toll gate, but would allow per design a possible upgrade to a toll way. It is expected that the type of vehicles allowed to access the road will be limited to trucks, cars and motorbike above 125 cm3. It is also expected that per design, access to the road will only be allowed through the intersections. The newly designed highway will pass through new terrains: in its northern section, the itinerary crosses sparsely populated semi arid area of the Kura flood plains, followed by intensively irrigated farmlands further south and finally reaching the Mahmudchala and the Akhchala Wetlands, then finally again through intensively cultivated agricultural lands in the southern portion of the corridor with a predominantly subtropical characteristic. The highway crosses over numerous channels and rivers of which the predominant is the Kur River, thus requiring construction of a number of bridges to enable passage. The World Bank is supporting the realization of this itinerary by financing the construction from the beginning of the Section in Alat up to south of Masalli for approximately 143 km stretch, inclusive of the 22-km stretch of the itinerary currently under construction1. The southern part of the itinerary from south of Masalli to Astara and the Iranian Border will be implemented with the support of the Asian Development Bank (ADB). On the other hand, Section 1B (22 km) of the northern portion of the Alat to south of Masalli itinerary has already started construction under WB financing. The design characteristics of the cross section are as follows:

• Sub-grade width: 27.5 m • Number of lanes: 4 • Lane width: 3.75 m • Carriageway width: 15 m (2 x 2 x 3.75 m) • Width of shoulder: 3.75m (2x3.75m) of which 2.5m (2x2.50 m) will

be paved • Median strip width: 5.0 m (of which 2x1 m will be paved); • Carriageway gradient: 2% (where there is no super-elevation) • Shoulder inclination: 4% (where there is no super-elevation) • Fencing along the itinerary: • New Jersey type crash barriers at the edges of the paved part of the median - Embankment slope ratio (v & h):

• 1:3 up to 2.5m height of embankment slope; • 1:2 > 2.5m to 4.0m height of embankment slope; • 1;1.5 > 4.0 m height of embankment.

1 The TOR of RRI for this current assignment does not include the 22-km stretch.

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For embankments higher than 6.0 m, a berm of 2.0 m width is proposed. The design speed of 120km/h for flat terrain is used for design purpose. Road furniture (e.g. crash barriers, reflective road markers, traffic signs, fencing, lighting and markings) will be according to the national standards for a Category I road. It is anticipated that the new highway will be fenced off over its entire length and consequently will separate the areas though which it is passing. For this reason, bridges and underpasses will be built depending on local demands in order to maintain the connectivity of the areas separated by the new motorway. The project falls under the responsibility of the ARS of the Ministry of Transport and its implementation is coordinated by the Project Implementation Unit (PIU). The PIU has been established to implement various projects financed by the Bank. The ARS and its various departments and offices particularly the LAD are the main counterpart of the Consultant.

1.2 Road Section under Evaluation Section 1C (within the so called Northern Section) is part of the planned Alat – Astara road which will cross mainly the northern portion of the Kura flood plain. Section 1A starts at km 0 of the main Project which is at the proposed junction of the existing dual carriageway (M4) and crosses the Alat Railway Station near the beginning of the two-track railway section eastward in a trumpet like design and will connect to the beginning portion of the currently constructed 22-km stretch for the length of about 9 km. At km31, which is the end portion of the 22km stretch, Section 1C starts and curves westward away from the existing highway and continues onward to Salyan and to the proposed bypass at Yenikand then runs almost parallel with the existing M3 to avoid a restricted area, then veers westward again until the beginning of the crossing over the Kur River, running for approximately 23.4 km and finally ending at km54.4. Section 1 is approximately 54.4km of which Section 1B is about 22km (already constructed), Section 1A is about 9km), and Section 1C is about 23.4 km. The last section (Section 1C) of Section 1 which is approximately 23.4km is the area under evaluation (see project location map in Figure 1 below).

The Northern Section alignment is constrained by several issues: engineering – there are major roads and railway lines at the beginning of the itinerary; utilities – the area traversed by the first 9 km of the Alat subsection (Section 1A) is crisscrossed by pipelines, overhead cables and oil rigs and similar infrastructure; and environmental, cultural and resettlement issues – graveyard 1 near Alat, Kersengi dag (a hill near Yenikand village), villages of Yenikand, Xalaj and Chukhanli, and military sites north of Salyan town of Section 1C. These issues pose major challenges to avoiding and minimizing land acquisition and resettlement concerns.

1 The final selected alignment is in the distance of about 250-300 meters from the graveyard and does not have any impact on the access to the graveyard.

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Figure 1: Project Location Map

The scope of works for the Section 1C includes the construction of standard dual carriageways with two lanes each, the construction of two bridges (Bridges 6 and 7), a road tunnel and 10 underpasses. Installation of road furniture, signs and markings for traffic safety and control devices and others as well as drainage culverts and canals will also be undertaken.

The proposed construction of this section as part of the entire itinerary is anticipated to lead to the accelerated socioeconomic development of local districts (Garadagh and Salyan as well as immediate areas nearby), with the improved traffic and traffic efficiency resulting in the reduction in congestion and accidents on the existing M3. The construction of the Alat-Astara Motorway will provide an efficient and faster road network that is anticipated to have the immediate positive impact of improving international trade. It is likewise anticipated that the motorway will facilitate the distribution of regional goods thus helping regional economic growth in the long term.

1.3 Summary of Key Impacts The Project implementation will result in unavoidable impacts both permanent and temporary because of the acquisition of road right of way (ROW). The key impacts resulting from land acquisition and the dismantling of structures and other properties and assets, both private and communal, include the following:

• Loss of agricultural land and other assets such as standing crops, trees, building structures

• Decline in the level of income as a result of the loss of agricultural land • Permanent or temporary disruption in the access to basic services and facilities • Threat to health and safety • Possible disruption in the community’s way of life

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This RAP covers impact on loss of agricultural land and other assets, decline in the level of income and permanent disruption in the access to basic services. 1.4 Land Acquisition and Resettlement Objectives The primary objective of the RAP for this Project is to ensure the minimization of negative impacts and the institution of mitigating measures for those negatively affected through providing a package of compensation and rehabilitation measures that will allow them to restore pre-project level of livelihood. The RAP aims to accomplish the following:

• Present a strategy to achieve the objectives of the Resettlement Policy Framework; • Provide a plan for the implementation of the stated strategies to ensure timely

acquisition of assets, payment of compensation and delivery of other benefits to project affected persons;

• Ensure that the Plan enables the PAP to improve and/or maintain their income levels and living standards from the pre-project level;

• Define the principles and mechanics for public consultation and information campaign; • Estimate resources required to implement the recommended interventions; and • Provide a plan for monitoring and supervision of RAP implementation.

1.5 Options Considered to Minimize Impacts Several approaches were employed to reduce the impacts. These included (i) undertaking a study to examine various alignment options and selecting the one with the least impact; (ii) developing a road cross section design with features to mitigate and enhance access to agricultural lands; (iii) proposing the construction of underpasses to ensure the connectivity of communities both sides of the road; (iv) selecting an interchange design with minimum ROW requirements and ensuring connectivity to existing local roads; (v) fine-tuning final designs to minimize impact; (vi) using the cadastral maps and overlaying the alignment to determine minimum impacts on structures and properties in congested areas, and (vii) proposing the construction of bypasses to avoid impacts on congested areas. 1.6 Unavoidable Impacts The unavoidable impacts include the acquisition of parcels of land within the required road reserve of 60m wide and the additional ROW requirement for junctions and interchanges to ensure the technical integrity of the design in terms of standard width of pavement and shoulders and heights of embankments as well as the minimum acceptable radius for certain road curvatures and the like. While the majority of the lands in this Section are municipal and state-owned, some privately owned lands are going to be affected by the ROW acquisition. Accordingly, aside from lands affected there are only three immovable assets therein that will have to be destroyed/demolished as a result of the construction. Acquisition of small portion of grazing areas will be also required. The public lands which can be used for grazing purposes are abundant in these places and comprise vast areas, especially in the Salyan district. The grazing area to be affected is a narrow strip of land at the edge of a big grazing area which constitutes only about 0.03 percent of total grazing area in Salyan (4.5 ha out of 15 000 ha grazing area in Salyan). In spite of this, relevant mitigation measures, such as construction of underpasses for cattle at the km 6+810, km 41+925, km

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45+850 and km 46+450 were included in the Project design1. Thus, acquisition of a narrow strip of the grazing area, combined with the installment of underpasses will not have significant negative impact on animal husbandry and the livelihood of local people. Finally, concerns for safety and other social-environmental impacts as well as the temporary impacts brought about by the civil work activities during construction periods may be unavoidable and measures will be instituted to mitigate them as part of the RAP.

1 Local population was consulted for the the appropriate location of underpasses, and their inputs were taken into consideration in the final design.

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2. SOCIOECONOMIC BACKGROUND OF THE PROJECT AREA

2.1 National Context

Azerbaijan is a lower middle-income country with a gross national income per capita of 3,064 AZN (Atlas method) in 2008. Azerbaijan is rich in mineral resources, mainly in oil and gas. The country also has fertile agricultural land and a well-educated labor force with a strong entrepreneurial tradition. The oil and gas sector contributes approximately one-third of GDP, while agriculture contributes about 9 percent but provides livelihoods to just under half of all households.

The impressive GDP growth of the past five years - with an average annual growth rate of 12 percent - was led mainly by oil and gas production. Growth in non-oil output has picked up since 1999 with an average annual growth rate of more than 15 percent. However, oil production is expected to peak in 2011 and decline thereafter in the absence of major new discoveries. Diversified development of the non-oil sector is critical for generating jobs and promoting long-term growth.

Despite the country's natural resources, poverty continues to pose a major challenge for Azerbaijan. Notwithstanding the country’s substantial poverty reduction over the last two years, in 2009, some 11 percent of the population lived in poverty. There are significant regional variations in poverty rates, with the incidence of income poverty highest in provincial towns. Access to services is limited in rural areas, giving rise to significant rural-urban migration.

Part of the strategy to address the pervasive poverty particularly in the rural areas was the stimulation of regional economic development through improved infrastructure and providing closer access of remote areas to the capital and allowing a more efficient exchange of goods and services within and among them. Improved and safer transit and transport systems would help attain the goal.

The Baku-Alat-Astara Highway (M2/M3) is a 313 km road which runs from Baku to the Iranian border in a north-south direction. The 4-lane Baku-Kurdamir (M2) Highway and mainly 2-lane Alat-Astara (M3) Highway intersect at Alat. The existing M3 links the district centres of Alat (Garadagh)-Salyan-Bilasuvar-Neftchala-Jalilabad-Masalli-Lankaran-Astara. The new highway financed under the Highway II Project will have a new alignment passing mainly through new terrains over the aforementioned districts. Four of the eight administrative districts (Astara, Lankaran, Masalli and Jalilabad) crossed by the final alignment belong to the Lankaran Economic Region while Bilasuvar, Neftchala and Salyan belongs to Aran Economic Region and Alat settlement of Garadagh is grouped under Baku City which is classified as a separate economic region. The socioeconomic profiles of these districts are diverse and varied. The Lankaran Economic Region, which is climatically and ecologically different from the other regions, constitutes only 7% of the total land area of the country but has about 10% of its total population, while Aran Economic Region has about a quarter of the total land area of the country and only about 20.5% of its total population. Baku City on the other hand has a total land area of 2,130 km2 or approximately 2.5% of the whole country but has 22.3% of the total population; however, unofficially, it could be higher.

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Lankaran region has harnessed its favourable climate, idyllic topography and fertile soils and abundant springs and mineral water to its competitive advantage in the sector of agriculture, fishery, recreation and tourism. On the other hand, Aran region’s rich mineral resources, particularly oil, gas, iodine and bromide ground water as well as aggregates and construction materials fuel its economic growth. Baku City meanwhile remains the driving force of the country where major social, economic, financial, political and administrative decisions emanate. The transport network helps to sustain the vital link and access of these regions to the heart of the country and other regions as well as outside the country. Transport efficiency as translated into reduced cost and improved and safer access and transit could help bolster further regional and local economy.

2.2 Local Context (Subproject profile) Section 1 has three potential areas of impact, namely: (1) 4 villages and state land traversed by the road where land acquisition will be undertaken; (2) 2 districts where the affected villages and state lands are located; and (3) Economic Regions to which these affected districts/villages belong to, namely, Aran and Baku (Garadagh district including the Alat settlement belongs to the Baku Economic Region) which may benefit from the road construction. 2.2.1 Geography of the Impact Areas The Project area lies within similar geographic and topographic zones. Salyan and Garadagh districts are located in an area that is generally flat and are characterized by a semi arid land and sparse vegetation. Hot semi-desert and sub-tropical climate of dry lakes prevails over most of the area during summer. Average temperatures in July is between 27-300C while absolute maximum temperature is 40-43o C. The annual precipitation is 230-280 mm which is below the average. Only a few cultivated lands are found in this section of the road; those cultivated are normally planted to grains, alfalfa, and potato. Many of the lands are used as grazing ground for animals and livestock during the winter season. 2.2.2 District and Villages The combined area of the two districts is approximately 2,798 km2 with Garadagh having a total area of 1,008 km2, while Salyan has 1,790 km2 (see Table 1 below). Garadagh constitutes approximately 36% of the total land area. 3 of the traversed villages by the road section are in Salyan, while one of them (Alat settlement) belongs to Gardagh district. Table 1: Area and Number of Settlements of the Subproject Districts

District Total Land Area (km2)

No of villages and settlement

# villages traversed

Total population (2006)

% Male

% Female

Azerbaijan 86,600 4272/239 - 8,436,400 49.3 50.7 Garadagh 1,008 0/22 1 99,807 49 51 Salyan 1,790 42/8 3 119,100 49 51 TOTAL 2,798 42/30 4 218,907 49 51

Source: Socioeconomic Assessment, Preliminary Design Phase, RRI GmbH, February 2008 As shown in Table 2, the total population of the two districts in 2007 was approximately 218,907 composed of about 47,494 households. Gender composition is about 49% male to 51% female. Majority (63%) are rural population. The population is not characterized by ethnic diversity. It is composed mainly of Azerbaijanis. In 2007, it was reported that Salyan had 297 individual refugees and 1,369 internally displaced persons (IDP).

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Table 2: Population of the Subproject Districts

District Total population (2007)

Average density (person/ km2)

Total No of HH

Average HH Size

Male (%)

Female (%)

Garadagh 99,807 99 22,179 4.5 49 51 Salyan 119,100 67 25,315 4.7 49 51 TOTAL 203,34 63.5 47,494 4.05 49 51 Source: Socioeconomic Assessment, Detailed Design Phase, RRI GmbH, February 2008

Of the total 2,798 km2 of land area in the two districts, approximately 321 km2 or 11.5% are productive lands. But of these so-called productive lands less than 39.1 km2 (approx. 12%) are cultivated; the rest are either fallow or used as pasture lands as shown in Table 3 below. Table 3: Land Classification and Use in the Project Districts

District Name Land Area (km2)

Productive Land (km2)

Fallow agro-land

Pasture lands

Cultivated lands

Orchard lands

Saline lands

Garadagh 1,008 -- - -- -- -- -- Salyan 1,790 321 572 150 39.1 .14 6 TOTAL 2,798 321 572 150 39.1 .14 6

Source: Socioeconomic Assessment, Preliminary Design Phase, RRI GmbH: February 2008

The economy of the affected communities is generally similar to that of the districts, supported mainly by oil industry, light manufacturing, fishery/agriculture (privately run farms) and small and medium-size non-agricultural enterprises. Grain and vegetable-growing and cattle breeding are the main sectors of the agriculture in the region. Dry-subtropical fruits and water melon cultivation are also important agriculture products. There exists a factory for processing plastic materials and cotton in Salyan. During the Soviet Union, Salyan was one of the biggest fish farm regions of the country. At the moment Salyan has a big share in the fish farm sector in Azerbaijan. Alat is a small settlement with an economy based on oil extraction and on stone quarries. The town is divided in two by the main Baku-Ganja road. The coastal railway, going south to Astara, also has a station in Alat. Located there is a nice place for tea and a couple of places to get some basic food. The settlement's main attraction is the mud volcanoes that dot the landscape just north of it, particularly the Firuz crater. These miniature volcanoes splutter mud, gases, water, the occasional rock and sometimes mud mixed with oil. Often with multiple vents, usually they are not dangerous, but occasionally can have rather violent eruptions sometimes the terrain around them can be the real danger, especially for vehicles. In the western direction there are beaches used by local people, but do not seem to attract other visitors. (Foreign tourists either come for the mud volcanoes or simply stray to Alat when visiting, or looking for the petro glyphs of Gobustan.) Since independence, little has been done to maintain the infrastructure for utility provision that was common place during the soviet period. The 1999 survey presents a similar story to that of today. Table 4 below shows the household access to some of the basic utilities in the area. About 60% in Aran and 99% in Baku have access to piped water while 39% have access to gas in Aran and 99% in Baku. Lesser percentage (9.5%) of households has access to heating system in Aran, while 86.6% in Baku. 51.4% in Aran and 96.8% in Baku have bathroom and about 45% has telephone in Aran, while 93.4%in Baku. Electricity is generally

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available but availability of such utility at the household level is constrained by the current high cost. Table 4: Proportion of Households with Access to Utilities (%) in the Project Regions

Indicators Economic Region Aran ER Baku

Total Households 892,526 458.426 Electricity 100 100 Gas 39 99 Heating System 9.5 86.6 Piped Water 59.8 99.6 Bathroom 51.4 96.8 Sewerage 86.8 100 Telephone 44.9 93.4 Source: 2006 National Census, SSC 2007 Although people generally have access to social services (see Table 5) established during the Soviet period, the condition of these facilities is inadequate. This is true of both medical and educational facilities, with buildings and equipment in disrepair, supplies are limited and inadequate and staff underpaid, and had been without adequate training for a long time now. In 2006, there were 726 hospitals in the country of which 107 and 14 were located in Baku and Salyan, respectively. There are 81 hospitals beds available for every 10,000 population on average at the national level. In the two districts, the average number of person per bed is 124.2 in Baku and 115 in Salyan. On the other hand, the national average of the number of doctors available per 10,000 persons is 37; in Baku there are around 95 doctors available for every 10,000 persons while this is lower in Salyan at 27 per 10,000. The figure for paramedical staff at the national and regional levels is higher though. Table 5a: Availability of Social Welfare Services in the Project Area

Economic regions

Physicians, person

Number of physicians per 10,000 population

Paramedical staff,

person

Number of paramedical

staff per 10000

population

Number of

hospitals

Number of

hospitalbeds

Number of hospital beds per 10,000

population

Number of ambulance- polyclinic

service organizations

Azerbaijan Republic 30766 36.6 61582 73.2 726 68356 81.3 1589

Baku 17907 94.6 23112 122.1 107 23509 124.2 196 Salyan 318 26.7 937 78.7 14 1370 115 38 Source: 2006 data from SSC 2,007 One of the great concerns for the development of Azerbaijan is maintaining the high level and quality of literacy and education attained during the Soviet period. Although the levels of enrollment are being maintained, there is grave concern as to the quality of the schooling. Table 5b: Availability of Facilities and Services in the Project Area

Economic regions

No of preschool

institutions per 10,000 persons

No of children in preschool

institutions

# of children per 100 places in preschool institution

General educational

state day school

No of students in day time attendance

Number of public

libraries

Azerbaijan Republic 1,737 109,263 79 4516 1,528,533 4,021 Aran Economic

Region 369 19,334 86 921 324,421 1,041

Baku 21 34918 74 336 380,232 112 Salyan 17 992 100 53 22,435 56

Source: 2006 data from SSC, 2007

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The level of education does not differ significantly by gender. On the other hand, it differs by age groups: 9.2% of aged people have higher education, 15.8% - specialized secondary education and 74.9% - secondary and lower education. At the same time among middle aged people 23.5% have higher education, 27.0% - specialized secondary education and 49.5% - secondary and lower education. It is worth mentioning that according to the data of 1996 35.2% of middle aged people had higher education. This can also be explained by intensification of migration processes due to hard social and economic condition existing in rural areas: qualified young people can not apply their knowledge and experience in rural areas, so they are forced to migrate to cities in search of employment. The more educated aged members of the population are left to stay to cope with the responsibility of supporting families. They are also less able to meet the challenges and demands that change entails; moreover, competition in a new environment is more intense. Studies have shown that household members under 15 usually do not work. There are 3.2 persons over 15 in an average household. In particular a household member over 15 spends 46% of time working in his/her own farm, 30% of time is dedicated to household (home) activities, 2% - to non-agricultural family business, 2% of time as employee in others’ farms, 10% - employed in non-agricultural field, 5% are dedicated to education and 5% to leisure. In 2006, the national per capita monthly income was about AZN72. In the Aran Economic Region where the Project districts belong, the average per capita monthly income was only slightly lower at AZN70. On the other hand Baku City’s per capita income per month was AZN89.7. Income from self-employment and employment substantially contributes to the total income per capita per month in Aran (AZN18.4 and AZN15.6, respectively). Furthermore, the contribution from agriculture was comparatively high in Aran (AZN17.2 which is approximately 24.6% of total per capita per month). Table 6 shows the share of various sources of income to the total average per concerned economic regions. Table 6: Income Profile of Aran Econ Region-AZN, per capita per month

Income Sources

Income per capita per month (AZN) Aran

AZN Share % Share Total Income 70.0 100 Income from Employment 15.6 22.3 Income from self employment 18.4 26.4 Income from agriculture 17.2 24.6 Income from rent 0.8 1.1 Income from property 0.2 0.3 Current transfers received 8.5 12.2 Pensions 6.9 9.9 Benefits and social contributions 0.9 1.3 Social Transfers in kind 0.7 1.0 Other income 9.2 13.2 Income from other households 7.6 10.8 Money received from abroad 1.6 2.3 Source: Household Budget Survey, SSC 2006 In terms of income sources by gender, there is a significant difference in the income sources for men and women in Aran (Table 7). Free professional activity provides most of the work for the men (8.5%) while work in personal ancillary provides income for the highest proportion of women (19.4%) out of the total. On the other hand, work in ancillary activity among the men provides income for only 11.1%. There are substantially more women (22.3%) than men (12.9%) who obtain income from pension or through dependents.

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Table 7: Sources of Income in the Project Area in Percent by Gender Category

Income Sources Income Share by Gender Category (%)

Aran Region Male(46.9) Female (53.1)

Hired work in public sector 7.1 6.5 Hired work in private sector 1.4 0.2 Hired work in agriculture 0 0 Incomes of business, commerce, craft 5.9 1.0 Work in personal ancillary 11.1 19.4 Free professional activity 8.5 1.1 Work as a private person 2.8 0.4 Unemployment benefit - 0.1 Pensions 5.0 11.1 Study grants 0.1 0.3 Social grants 0.3 1.7 Dependents 4.3 11.2 From outside of the country 0.1 0.2 Others - 0.1 Source: Household Budget Survey, SSC 2006 While the country had made a significant dent in poverty over the years, to date the problem still poses a major challenge to the government and development planners as shown in Table 8. Table 8: Incidence of Poverty in Azerbaijan, Urban-Rural Category (2002-2005)

Population Group Poverty level (%) Poor Very Poor 2002 2003 2004 2005 2002 2003 2004 2005 All Azerbaijan 44.6 39.7 28.5 24 26.9 22.1 13.4 9.2 Urban (Baku) 41.6 34.8 18.6 14.7 25.6 19.3 8.0 6.6 Urban (non-Baku) 48.7 46.0 35.4 27.2 31.5 27.9 19.0 11.9 Rural 43.7 38.4 29.6 26.9 24.7 20.0 13.0 8.9 Source: Household Budget Survey, SSC 2007 As the trends show, incidence of income poverty appears to be highest in urban areas (non-Baku) and lowest in Baku itself. The rural areas have not been doing too badly compared to the urban areas (non-Baku) in terms of incidence of extreme income poverty. From 2002 to 2005, the reduction in incidence of poverty had been significantly lower. While Baku had been able to substantially reduce extreme income poverty through targeted social interventions, the other urban areas may not have been able to do enough. While the poverty rate in Baku is significantly lower, still the concentration of poor population in absolute number in the City is significantly higher due to its share of total population in the country and due to the continuing influx of migrants and Internally Displaced People (IDP) looking for work and other opportunities therein. The Project area is predominantly rural (74% on average). Accordingly, poverty incidence in the area is reflective of the rural situation. The incidence of poverty in the district would be lower than the national average. Attitudes towards poverty are influenced by the reality that recent economic development in the country has been focused in the oil-sector primarily in Baku, and that little development has been distributed to the districts. But more recently, the central government had already instituted several measures to address this imbalance. However, key informant interviews and focus groups discussions in the project area indicate the general sentiment of the people that still there is only minimal improvement; that there is the continued lack of employment opportunities, frequent lack of water for drinking and other basic amenities, rising cost of energy sources, and the poor condition of medical facilities resulting in common illness. People observed that poverty was experienced when there was not enough food and clothes

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for the family, when they were unable to heat their houses in winter, have clothes for their children to wear to school, or when they could not afford needed medicines. Poverty is experienced most within communities by the elderly, widows or unmarried women, the disabled and IDPs.

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3. POLICY AND LEGAL FRAMEWORK

3.1 Azeri Legislation

The Alat Astara Highway Project will have major impacts on the lives and properties of households and communities in the areas traversed by the road. Accordingly, the review of laws and regulations guiding the property ownerships and rights of individuals is necessary. It will provide the framework and rationale to the assessment and bring to fore the basic considerations that must be addressed in the preparation of the RAP.

Laws and Regulations: The construction of the Salyan-Shorsulu Section of the Alat-Astara road as well as the implementation of adequate safety measures in the areas adjacent to the road require the partial and/or complete takeover of assets and properties of private individuals by the government for public interest. Therefore, the review of laws and regulations guiding the property ownerships and rights of natural and legal persons is an integral part to the RAP. Article 29 of the Constitution of Azerbaijan (12 November 1995) establishes the right of citizens to possess properties and ensures the protection of such “property rights”. It also ensures that those dispossessed of land are provided legal recourse and that alienation of properties for state needs shall only be allowed upon fair reimbursement of its value. There are no laws or legislation in Azerbaijan that specifically consider matters of involuntary resettlement. However, a few regulatory instruments exist in the country providing the basis for regulating and managing the acquisition of land, properties and productive assets and for compensation for the loss of these assets. These instruments include (i) Land Code (25 June 1999), (ii) Civil Code (1 December 1998), (iii) Resolution of the Cabinet of Ministers No. 42 (15 March 2000), (iv) Resolution of the Cabinet of Ministers No. 110 (June 1999), (v) Decree on Application of the Road Law (2000), and (vi) Decree on Additional Activities for Regulating the Use of Road Reserves (2004), and Resolution of the Cabinet of Ministers No. 54 (4 April 2009). Among these, the Land Code is a critical one as it (a) provides for compensation principles for the loss of land, established on the basis of the Resolution of the Cabinet of Ministers No. 54 and Standard Code of Azerbaijan No. 158, 1998; (b) allows recourse through courts; and (c) provides the basis for a land-for-land compensation option. The Civil Code and Land Code provide the basis for acquisition of land for projects of national interest and municipal needs while the Cabinet of Ministers Resolution No. 42 outlines procedures for the acquisition. Collectively, these regulations provide options for land acquisition from legal landowners: (i) land-for-land and, (ii) compensation based on market prices. Dispute over compensation is subject to resolution in the courts. Beside these, Resolution of the Cabinet of Ministers No. 54 outlines procedures for valuation of assets which are acquired for State needs. The Decree on the Application of the Road Law and the Decree on Additional Activities for Regulating the Use of Road Reserves designate the Cabinet of Ministers as the agency to approve road reserves and acquisition of affected properties. The current legislation related to the status and control of the road reserves has its foundations in the land laws of the Soviet era. Prohibition of activities in the road reserve is outlined in the 1989 Road Decree, which itself refers to an earlier legal instrument, Decree No. 228 of 3rd July 1976. Since independence, a Decree on the Application of the Road Law of 2000 and a recent Decree No. 18 of February 2004 on additional activities aimed at regulated usage of the road reserve have provided greater clarity on the situation of the road reserve. In addition, there is a decree of the President dated 8 July 2008 which defines

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standards for noise and vibration pollution. Summaries of instructions given in these and other decrees are given in the following sections. 1976 Road Decree The 1976 Decree refers back to a Russian state construction standard SNIP 467/74 that defined the requirements for a 60 metre wide road reserve1 for State and Republican Roads and a 25 metre wide road reserve for Local Roads. This decree gives legal standing to the width requirements for road reserves given in the construction standard.

1989 Road Decree No. 461 The 1989 decree again reinforces the road reserve width requirements given in the 1976 Decree. Article 7 outlines prohibited activities and constructions in the road reserve and assigns rights for the roads authority to evict illegal occupants on 15 days notice, at the conclusion of which, the roads authority may demolish the constructions without compensation and use the resultant materials in the construction of the road. This 1989 decree provides a procedure for the road authority to review and authorise applications for developments within 200 metres of each side of the road centreline in respect of aspects including maintenance of the road reserve and access provisions to the main road.

2000 Decree on Application of the Road Law One of the main purposes of this decree was to update the 1989 decree, especially in regard to the designation of responsible agencies. Article 14 outlined that the width of road reserves will be confirmed by the Cabinet of Ministers. Processes for inclusion of new areas into the road reserve, and acquisition of affected properties, are described, and it is stated that those permitted to use lands within the road reserve must be notified of the conditions of this use upon agreement of use terms. Article 33 states that commercial enterprise may be undertaken with Roads Authority approval within the road reserve.

2004 Decree on Additional Activities Aimed at Regulating the Usage of Road Reserves in the Republic of Azerbaijan This recent decree designates responsible agencies for various issues relating to the road reserve and adjacent land use, including the preparation of an inventory of national road reserve to identify illegal and legal occupiers and properties, and for ongoing maintenance and protection of the road reserve. The legal basis of land use and the value of existing properties inside the road reserve must be submitted to the Cabinet of Ministers. Other Legal Instruments Azeri Law has the following instruments, which provide instructions on matters relating to land, land acquisition and compensation for other property losses:

• The Land Code, 25 June 1999; • The Civil Code, 1 December 1998; • Resolution of the Cabinet of Ministers No. 54. April 4, 2009; • Resolution of the Cabinet of Ministers No. 42, March 15, 2000; • Resolution of the Cabinet of Ministers No. 110, June 1999.

1 The road reserve width is defined as being 30 metres wide on each side of the centre-line, totaling 60 metres.

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Aspects of these instruments that relate to the use and protection of the road reserve are given in the following sections. Land Code dated 25 June 1999 When land is required for projects of national interest, compensation is initially offered on the basis of valuations made in accordance with a standard code (no. 158 dated 1998). If landowners are unhappy with this valuation, the market price will be used as a basis for valuation. In the event that such agreement cannot be reached, the acquiring authority can process its application for acquisition through the courts, but this is often a long and complex process. The landowner also has an option for seeking recourse through the courts if negotiation fails. The Land Code also allows provision of alternative lands equivalent in value to the land being acquired. Significantly, the Land Code does not allow acquiring agencies to physically and legally acquire land unless every household member of the affected households have signed the legal document certifying the transfer of land to the acquiring agencies. The existing regulation also requires that the acquiring agency must submit the signed agreements with all land owners in order for the budget of land acquisition to be released. Experience from the construction of Tovuz bypass (see page 28) shows that these requirements cause significant delay in land acquisition as many land owners unsatisfied with the amount of compensation offered refuse the sign the agreements, which forces the acquiring agency to increase compensation to the level that is satisfactory to the majority of land owners.

Where a relevant local executive authority decides a land case, the decision shall come into force immediately and this decision will not be terminated by the lodgement of a complaint with the relevant court. Articles 110 and 111 describe wilful occupation of land plots, implementation of illegal construction on land plots as violations of the land legislation, and state that these are prohibited acts. The articles state that such land plots will be returned to the relevant authorities without reimbursement of the expenses incurred during the illegal utilization. Rehabilitation of the lands should also be carried out by the illegal occupants, at their own expense. These different decrees are summarized in Table 9.

Civil Code dated 1 December 1998

This Civil Code states that any rights to immovable properties must be registered with the State, and that land may be recalled from owners for state or municipal needs as approved by the relevant courts.

Resolution of the Cabinet of Ministers No. 42 - On Some Normative and Legal Acts Relating to the Land Code of the Azerbaijan Republic dated 15 March 2000 - This resolution outlines procedures for the compulsory acquisition of land for state or municipal needs.

Resolution of the Cabinet of Ministers No. 110 – On Approval of Regulations for an Inventory Cost estimation of Buildings Owned by Natural Persons dated June 1999 - This Resolution outlines procedures for acquisition and compensation valuation for affected buildings and immovable properties. It refers to the standard code No. 58 that is to be used for making valuations of land and property to be acquired. These valuations are made on the basis of standard unit rates for different types of construction in different regions of Azerbaijan. Decree of the President dated 26 December 2007 on ensuring the execution of the law No. 506-3 QD dated 7 December 2007 on “Amendments and Additions to the Civil Code of the Azerbaijan Republic” - This decree states that 20% additional compensation should be added to the calculated market price of the acquired property to compensate for the damages

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resulting from the purchase of property, including lost income and loss connected with the pre-termination of commitments against third parties. Resolution of the Cabinet of Ministers No. 54 on Approval of the Procedures for Calculating the Acquisition Price of Real Property for Public Needs - According to the Resolution, the State Committee on Property Issues (SCPI) has overall responsibilities for land acquisition and resettlement issues. The executive agency in need of land acquisition should submit all necessary documents (including preliminary budget estimate) to the SCPI. SCPI reviews the documents submitted jointly with the Ministries of Finance and Economic Development. Based on the results of this review the Cabinet of Ministers issues a resolution on the acquisition of property for public needs.

After the resolution is passed a written notification should be sent to property owners by the Executive Agency within 3 calendar days. The Executive Agency should involve Independent Appraiser in order to value affected assets. The appraiser should meet the minimum qualification requirements set by the State Property Committee with agreement of the Ministry of Finance and Ministry of Economic Development.

Calculation of the market price of the acquired property is based on:

- market value of the real property in the respective administrative area; or - replacement value of the property and land, if there has not been any real property

transaction in that area to formulate a fair price of land or if the land is to be replaced with another parcel of land; or

- in case it is impractical to use market or replacement value to formulate a fair and real price of land, any price which is no less that normative price of land;

- if more than one method of valuing the land can be used, then the method that formulated the highest price shall be applied.

In case the acquired land is swapped with another parcel of land with the agreement of the land owner, the following will also be provided in order to recover the livelihood of land owners after resettlement: - for agricultural land: costs of preparing the land for planting, as well as expected costs of

fees and taxes related to transfer of land title; - in the residential areas (towns, suburban, and rural): infrastructure of the same or

improved quality, fees and taxes for obtaining and registering property titles. - costs incurred to reinstate land, if not undertaken; - Moving and transportation costs; - salvage materials will be returned to owners with his/her agreement. Upon the receipt of the appraisal report, the Executive Agency shall send a notice to the owner within one day and with all supporting documents attached. Compensation shall be transferred to the bank accounts of physical and legal entities not later than 120 days of submission of the first notice sent to the owner of the property.

Table 9: Overview of Existing National Regulatory Framework Related to Social Aspects in Road Sector Azerbaijan Constitution (12 November 1995) Article 29

Established the right of individuals to possess property and that such ‘property rights’ shall be protected by law; also, establishes that no-one will be dispossessed of land without a ‘decision of court’, and that alienation of property for state needs shall only be allowed upon ‘fair reimbursement of its value’

Land Code of Azerbaijan Republic (25 June 1999)

1. All lands in use or in rent can be bought for state, municipality or for public needs

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Article 70

3. Lands in use could be taken back by Local Executive Power and Municipalities via the legal enforcement on the basis of the court decision 4. Privately owned land can be forced to be sold if there is planning to locate something for state, municipality or public needs 8. People can be compensated with the same amount and same category of land in other place if the expropriated land is used for state, municipality of public needs

Article 86

1. Following categories of lands and their rights can be sold: private land, municipality lands, and lands under privatized state property. 4. Foreigners and non-citizens are not allowed to buy land in the Republic of Azerbaijan

Article 94

2. There are two kinds of values for lands: nominal and market price

Article 95

1. The nominal price of lands is a value indicator reflecting quality and productivity 2. The nominal price is used as a basic value in the following situations: when lands are expropriated from owners and when the land is sold by owner, and when the lands category is changing 3. Nominal price is indexed by inflation rate and calculated by the District’s Executive Power (Local Executive Body)

Article 96

2. When the privately owned land is purchased by other private individuals the value is calculated by agreement of correspondent sides based on the market price (seller and buyer) 3. When municipality land is sold, market prices must be higher than nominal price and determined by municipality administration 6. When the land is sold for public needs, the price of this land will be determined by independent experts in this process. There must be an agreement by both sides.

Article 103

Disputes about land are solved by the District’s Executive Power, Municipalities and Court.

Law on Land Market (7 May 1999)

Establishes requirements for land transactions such as purchasing and selling of land, mortgages, transferring of rights to other users and lessees, and transfer of land through inheritance; makes recommendations on the nature of land market agreements and contracts; requires registration of all land rights and sets out documentation requirements; and outlines penalties for failure to comply with regulations.

Resolution No.42 of “On some Normative and Legal Acts Relating to the Land Code of the Azerbaijan Republic” (15 March 2000)

Expands on provisions of the Land Code with respect to the following areas: a) procedures for determining payments for agricultural and forestry production losses and damage resulting from restriction of use, or change in land use; b) procedures for resumption of private land for state or public needs; c) procedures for granting leases for grazing and hayfield use; and, d) procedures for allotting land for industrial, transportation, communication and other purposes.

Cabinet of Ministers DecreeNo.158 on normative Costs of Land (23 July 1998)

Sets out standard or normative values of land for each district in Azerbaijan. For Lankaran-Astara region, which includes the Masalli district, the normative price for 1 ha agricultural land is 1695.4 AZN, while 1 ha of pasture land is specified as 474.64 AZN. For Jalilabad district normative price of 1 ha agricultural land is 848.16 AZN, while normative price of 1 ha of pasture land is 530.52. For Mugan-Salyan region, which includes Bilasuvar and Neftchala districts, normative price of 3rd category agricultural land is 1086.98 AZN.

Law on Land Leases (11 December 1998)

Sets general rules governing leasing of land, procedures for changing lease conditions and establishes the requirement for registration of leases.

Civil Code (1 September 2000)

Defines types of legal interests in property (full ownership, lease, third party); requires proprietary rights and other rights for immovable

21

property, as well as restrictions, formation, assignment or transfer of rights to be registered with the State. Use rights, servitude rights and mortgages must also be registered. Requires that land acquired for state or public needs shall be purchased by ‘an authorized body of the Azerbaijan Republic’ or municipality, by paying the market price in advance. Provides for people to have the right to register their ownership due to long, actual possession.

Civil Procedures Code (1 September 2000) Article 360

Sets out procedures and applicable timeframes for actions and appeals through the courts. Court decisions on compulsory acquisition and the basis of any land valuation must be appealed with the higher court within one month of such decision

Land Acquisition (Memorandum of Understanding on Land Acquisition between IDA and the Government of Azerbaijan for Highway Project)

The Memorandum of Understanding on Land Acquisition between the International Development Association (IDA) and the Government of Azerbaijan, which is used in the Baku-Gazakh-Georgia Borders road construction, states which information is collected for compensation applications. This includes (a) the type of land: if sowing land, pasture, garden, dry-farming or irrigated land, (b) buildings, (c) plants already sown or to be sown during the next season and (d) perennial herbs, trees and their age and quantity. This information is collected by the representatives of the District’s Executive Power and Azerbaijan State Land and Cartography Committee for compensation which is finally approved and accepted by the Cabinet of Ministers.

Compensation Funds (Memorandum of Understanding on Land Acquisition between IDA and the Government of Azerbaijan for Highway Project)

Although the state is responsible to compensate, there is no permanent and clear compensation system and the accepted compensations are paid from different state funds as the case maybe. For the Tovuz Bypass Project it was recommended that compensations be paid from the Government funds of the IDA loan project and monitored by the RTSD or a supervision consultant engaged in the project. Compensations must be paid immediately after the final road design has been finished and those eligible to compensation are known. Compensations must be completed before any of the construction work starts.

Law of the Protection of Historical and Cultural Monuments Article 10:

Protection of Monuments states that no historical and/or cultural monuments which are declared as such by the Azerbaijan Science Academy, are to be demolished. No such monuments were found in the corridors under study.

Cabinet of Ministers Decree No. 42, section I, article 2

This decree states that, wherever possible, impacts on agricultural land and forests should be avoided.

Decree of the President (8 July 2008) on standards of noise and vibration pollution

This law defines norms and standards for noise and vibration pollution.

Decree of the President dated 26 December 2007 on ensuring the execution of the Law # 506-3 QD dated 7 December 2007 about “Amendments and Additions to the Civil Code of the Azerbaijan Republic”

This decree states that 20% additional compensation is added on to calculated market price of the acquired property

Resolution of the Cabinet of Ministers # 54,

This resolution defines procedures for LARP valuation and implementation.

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(Source: IDA Credit 3517 – AZ, TECHNICAL ASSISTANCE FOR TOVUZ BYPASS, LAND ACQUISITION PLAN, Finnroad, Baku, May 2005)1

3.2 World Bank Policy The proposed construction of the Alat - Salyan Section of the Alat - Astara Motorway is being implemented with the financial support of the World Bank and therefore it will comply with the requirements of the World Bank policy documents and regulations, including:

• The World Bank Operations Manual • OP/BP 4.12 Involuntary Resettlement:

http://lnweb18.worldbank.org/ESSD/sdvext.nsf/52ByDocName/InvoluntaryRese • OPN 11.03 Management of Cultural Property in Bank-financed Projects:

http://lnweb18.worldbank.ogp/ESSD/sdvext.nsf/52ByDocName/CulturalProperty • The World Bank Procedures on Information Disclosure

http://www1.worldbank.org/operations/disclosure/

The requirement of the World Bank's Policy (WB OP4.12) is to avoid involuntary resettlement whenever possible. Where displacement is unavoidable the following measures shall be ensured:

• Compensation should be based on the replacement cost; • Participation of displaced persons in planning and implementation of the

resettlement process; • Assistance in their efforts to restore their living standards and income earning at

least to their pre-settlement levels; • Completion of compensation measures prior to construction activities considered

by the project.

3.3 Differences between the Azeri legislation and the World Bank Operational Resettlement Policy and Measures to Bridge the Gap

WB OP 4.12 on Involuntary Resettlement Many of the key tenets of the WB’s OP 4.12 are covered in full or in part by current Azerbaijan law. These include:

• The requirement to pay compensation in advance where land is compulsorily acquired (Land Code, article 70.5);

• The need to compensate based on full market value or through grant of another land plot or building of equal quality, size and value (Land Code articles 8 and 70.5);

• The need to avoid, wherever possible, impacts on agricultural land and forests (Decree of the Cabinet of Ministers No. 42, section I, article 2);

• The requirement to compensate for losses, whether temporary or permanent) in production or damage to productive assets and crops (Cabinet of Ministers Decree No. 42, Sections I and II); and

• Provision for pre-judicial avenues for resolution of disputes and rights of appeal.

1 Equivalent Nature Protection Law deals with issues on environmental issues, which are covered under the Environmental Assessment.

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There are, however, three broad areas where the borrower’s obligation under OP 4.12 extends beyond those required under Azerbaijan legislation. These are as follows:

• Resettlement planning and procedural requirements • Public consultation and participation of project affected communities • Extent of compensation and types of assistance to be offered • Categories of people eligible for compensation • Property measurement • Income restoration

Resettlement Planning and Procedural Requirement There is presently no requirement to prepare a formal Resettlement Action Plan (RAP) under Azerbaijan law, nor to undertake any of the component activities of a resettlement action plan such as, as a ‘census’, socio-economic survey, consultation with project affected people, monitoring or reporting. There are no specific references in the legislation to ‘involuntary resettlement’. Core WB planning requirements such as the need for community participation in the resettlement planning process and the requirement to improve or enhance project affected people’s living standards and income and production levels, are not explicitly addressed in current legislation.

While Azerbaijan legislation is silent on involuntary resettlement, previous Azerbaijan government agreements with international companies working in Azerbaijan have stipulated that industry standards and practices comply with international standards and best practice.

Measures listed below have been employed to ensure compliance with OP41.2:

• Consulting with potential project-affected people on feasible measures for resettlement and rehabilitation

• Drafting and implementing a full public consultation strategy and disclosure plan before construction. Funds will need to be allocated for consultation activities.

• A scoping study had been carried out to identify the need for Resettlement Action Plan (RAP).

• PAP have been informed of their rights to assistance with supporting information and material, where appropriate.

Public Consultation and Participation OP 4.12 specifies that project affected people should be informed about their options and rights pertaining to resettlement and ‘…consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and provided prompt and effective compensation at full replacement (Clause 6, (i), (ii)). Currently there is no explicit consultation requirement in Azeri law. The Resolution of the Cabinet of Ministers No. 54 says that a written notification (its form is attached in Annex 11) should be sent to the property owner by the Executive Agency within 3 calendar days after the resolution on property acquisition is passed by the Cabinet of Ministers. The second notification should be sent to the property owner(s) within one working day after the value of the acquired property is submitted to the Executive Agency by Independent Appraiser in order to inform him of compensation amount for the acquired property. Measures listed below have been employed to ensure compliance with OP41.2:

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• Information about the project have been disclosed in an early stage • Disclosure of project environmental and social information has been conducted an

integral part of the public consultation process, with information being provided about both benefits and disadvantages of the project

• Information about the project and expected impact have been clearly presented in appropriate local languages and dialects and in modes that are sensitive to local communities

• Information has been disclosed in locations that are open to the public and that are readily accessible to PAP

Compensation Eligibility in Azerbaijan The categories of people who must be compensated under Azerbaijan legislation are narrower than those defined under OP 4.12. Under the legislation, the only people and entities entitled for compensation are those with registered property rights, for example, registered landowners, leaseholders, users and those with registered third party rights or those who have legally obtained the right to register their title but whom, for some reason, have not completed registration. This potentially precludes many categories of affected people that would be entitled to compensation under WB Group policies. Furthermore, under the existing decree, those who illegally use the existing Right-of-Way (ROW) are required to finance activities necessary to clear the ROW out of their own finance.

These categories would include, in Azerbaijan:

• Users who use land on the basis of an informal agreement often with a relative or extended family member (share croppers, tenant farmers)

• Owners who occupy land that was transferred by informal agreement from another owner • Owners who have not registered a change in ownership following a family death,

marriage annulment or similar situation • Internally Displaced People (who have no rights to land) • People who make use of communal resources to which they have no formal title • Informal dwellers Measures listed below have been employed to ensure compliance with OP41.2:

• All users of land (including those with legal documents and those without) are entitled to compensation for loss of land, structures and livelihoods. For illegal dwellers, ARS will compensate for loss of livelihood and in case of affected structures ARS will provide alternative structures that are agreeable to the owners. Also, they are exempted from any cost that may be necessary to clear the required ROW. All land users have been informed, in a timely and appropriate manner, of their rights. Leaseholders and users are entitled for reasonable compensation subject to evidence of use of the land for 2 years or more.

Provisions for Illegal Land Use in Azerbaijan Although the Azeri law does not make provision for people with no legal title, the practice on the ground is often different. Anecdotal information suggest that people with no legal titles to their businesses are given compensation of the value of the business but are not provided with income restoration measures, they are also given assistance with physical relocation. This practice on the ground does adhere to the World Bank OP4.12; but as it is not in law, it is conducted on a discretionary case-by-case basis and is not systematically monitored.

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Measures listed below are employed to ensure compliance with OP41.2:

• Adequate rehabilitation assistance will be provided for those who do not have official titles to the land but who use the land for lawful activities, without regard to the legal status;

• Rehabilitation assistance will be provided including, for example, free house plots or subsidized plots.

Property Measurement Under the WB safeguard policies, compensation for lost properties will be calculated based on full replacement cost, in other words, compensation should be equal to what enables the PAP to restore their livelihood at the level prior to the resettlement. Under the Azeri law, compensation must be equal to or above the market value of lost properties – law provides that if the state determined normative prices for affected properties are below the market prices, then compensation should be based on market prices. Compensation based on market value may not be sufficient to restore livelihood. Also, PAP may not be able to recover the pre-project level of livelihood if impact is severe.

Measures listed below have been employed to ensure compliance with OP41.2:

• Compensation for losses of assets will be equal to full replacement cost; • Severely affected people (who will loose more than 20% of agricultural land) will benefit

from rehabilitation measures (i.e., privileged access to employment opportunities under the Civil Works activities which will be stipulated in the Contractor’s contract)

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4. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

4.1 Census of Affected Households and Persons The distribution of affected households and persons by villages and districts and by private and public lands is provided in Table 10. All affected households (149) are from Salyan district. The 149 households will lose 157 parcels of agricultural land of approximately 45.6688 ha. No loss of standing crops is also anticipated since the construction schedule will be adjusted so farmers will be able to harvest the annual crops on the affected land. Table 10: Summary of Losses of Affected Persons/households

District/Village Total PAP

PAPs losing land Loss of structure Trees/crops loss Business loss # PAPs Total ha # PAPs Type loss # PAPs Type loss # PAPs Type loss

Garadagh 0 0 0 Salyan 149 149 45.6688

Xalac 45 45 14.5023 2 fruit bearing

trees

Yenikand 67 67 23.1748

Cukhanli

37 37 7.9917s

3 stable, incomplete structure, house

3 fruit bearing trees

Total 149 149 45.6688 3 5s 0 Source: Census Result – RRI/SLCC: August 2008 4.1.1 Socioeconomic Profile of Project Affected Persons

(i) Demographic profile

The socio-economic survey covered all households (149) directly affected by project implementation. The average size of these households is 4.95 persons. All households reported Azeri as their ethnic origin. The survey revealed that the affected population in the project-affected area has the following demographic characteristics: 48.1 % of members of surveyed households are men while 51.9% are women. Of the total (149) affected households, 25 or 16.8% are women headed. Table 11 below shows the distribution of the households in terms of specific indicators. Table 11: Selected Demographic Data of the PAPs, Section 1

Indicator Number and Percent of PAPs by Location HH total

Garadagh Salyan Total Number Percent Number Percent Number Percent

0 0 149 100 149 100 Total Person 0 0 744 100 744 100

Male 358 48.1 358 48.1 Female 386 51.9 386 51.9

Women headed HH

0

0 25 16.8 25 16.8

Ethnicity 0 0 Azeri 744 100 744 100

AveHH - - 4.95 4.95 Source: Census Result – RRI/SLCC: August 2008

(ii) House and Homestead

All of the households own the house and the plot they occupy, except one affected house. This affected house is located on municipal land. Houses are generally built of stone clay bricks with cement finish and with tile slates as roof.

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The affected households own livestock along with the land plots and houses. Ownership of livestock is as follows: 43.6% of households own big horned animals; 21.5% small-horned animals and 68.5% poultry. See Table 12 for details. Table 12: Asset Ownership and Access to Basic Services, Section 1

Indicator

Number and percent of PAPs by Location

Garadagh Salyan Total

Animal Ownership # % # %

Big Horned - - 65 43.6 65 43.6

Small Horned - - 32 21.5 32 21.5

Poultry - - 102 68.5 102 68.5

Presence of :

Electricity - - 149 100 149 100

Gas - - 110 73.8 110 73.8

Water - - 125 83.9 125 83.9

Car ownership - - 45 30.2 45 30.2 Source: Census Result – RRI/SLCC: August 2008

(iii) Basic services

Of the total affected households, 100% has access to electricity, 73.8% has gas supply, while 83.9% has access to potable water supply. Of these households, 30.2% reported ownership of car. In case of medical need, the households have reported that more often they availed of the services of the district hospital or local ambulance while some indicated that they avail of the services of a private doctor or private hospital from time to time. Children of the affected households generally go to nearby schools for their elementary education. Very few respondents could name an active non-governmental organization or cooperative society in the affected communities.

(iv) Incomes and Expenditures

Table 13 below shows the details for the source of income of PAP. Table 13: Source of Income of the PAPs, Section 1

Source

Number and percent of PAPs by Location Garadagh Salyan Total # % # % # %

Total HHs - 149 100 149 100 Salary/wages - - 44 29.5 44 29.5 State pension - - 12 8.1 12 8.1 Agriculture - - 84 56.4 84 56.4 Aid from Relative - - 0 0 0 0 Other - - 9 6 9 6

Source: Census Result – RRI/SLCC: August 2008

Some 56% percent of affected households identify agriculture related activities as their main source of income; pensions, state allowances and benefits are the main sources of income for 8% of households; salaries and wages are reported by 29.5% of the affected households as their primary source of income; while 6% of respondents indicated other source of income.

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Almost all PAP refused to provide information on the amount of household income. Thus, it is difficult to say whether the potential land take will have a significant impact on the quality of life of the PAPs. It is however, worthwhile to note that majority (56%) of the PAPs has indicated that agriculture is their main source of income.

Figure 2: Proportion of PAPs in various sources of primary income (2008).

Almost all of the lands which will be affected are agricultural lands cultivated mainly to grains, alfalfa, and potato. The proportion of PAP experiencing land take of less than 40% of the cultivated area is approximately 76.4% of the total; the remaining proportion will experience land take of varying proportions from 40 and above.

(v) Attitude toward the project and expectations

By the time of the survey, all of the affected households had been informed about the project of the construction of the Alat Astara Highway. The primary source of this information is the officials of the Executive Power and the local land offices. All PAP consider the project beneficial and they indicated their willingness to give up the land they occupy or cultivate if needed for the purpose of road construction. Monetary compensation is the preferred option for all PAPs to compensate for loss of land.

4.2 Affected Assets

The following discussion presents the results of the investigation on the category and types of impacts of the Project on land and other assets and property as well as the unavoidable temporary impacts on the community particularly during the period of construction. (i) Affected Land Section 1A and 1C will traverse 3 villages affecting private, municipal as well as state lands in one district, namely Salyan, and state land in Alat settlement of Gardagh district. All of the

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private lands affected are agricultural lands generally used to cultivate grains, alfalfa, and potato. However, in municipal land, a number of public infrastructures like local roads and irrigation ditches as well as pasturelands, and public building area will be affected. The total area of the land required as ROW for the alignment of the concerned section is approximately 241.0625 ha composed of state, municipal and private lands in 3 villages within the districts of Salyan and Garadagh, respectively. See Table 14 below for the summary of affected lands of various categories. Table 14: Summary of Impacts on Lands of Various Categories

District Village

# Village Name Private land Municipal

land (ha) State land (ha) Subtotal No. plots Size (ha) Garadagh - 0 0 0 82.07 82.07

Salyan 1 Cukhanli 38 7.9917 6.0729 2.8308 16.8954

2 Xalac 49 14.5023 10.29 12.3 37.0923

3 Yenikand 70 23.1748 5.33 7.72 36.2248

4 Salyan State Land Fund 0 0 0 68.78 68.78

Total 157 45.6688 21.6929 173.7 241.0625 Source: DMS and SES Data, RRI International and SLCC, August 2008

• Affected Private Land

The affected private land used to be part of the communal plots used to cultivate various crops and grazing crops during the soviet times which have been parcelled and transferred to individual families as a result of the privatization process during the late 1990’s. Currently, due to its uneconomic size, the plots are normally extensively cultivated for grains, alfalfa, and potatoes; some are merely left fallow to be used as grazing area. In Salyan area, these plots are generally used to cultivate root crops, wheat, barley and some patches of vegetables during spring and early summer season but left mostly fallow during the height of summer and autumn due to insufficient irrigation. The road alignment is designed so it will traverse these plots in such a way that it will affect only a small portion of the area. But because of the configuration of land parcels against the proposed road alignment (diagonal rather than parallel), a substantial number (157 plots owned by 149 private individuals) is affected. Table 15 below provides the summary of private land take in Section 1. A sample of this land cadastral pattern is shown in Figure 3 below. Table 15: Summary of Private Land Take in the concerned districts of Section 1

Affected Private Land Location and Size (ha) Total (ha) Garadagh Salyan

Size 0 45.6688 45.6688 No of Plots 0 157 157 No of HHs 0 149 149 DMS Results, RRI: August 2008

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Figure 3: Sample of Cadastral Lot Pattern in the Project Area As can be seen, some land plots are inevitably divided into two pieces by the project road. If the remaining part(s) of the divided land plot is less than or equal to 0.04 ha, the part will also be acquired and duly compensated to the owner based on the same market price as the acquired portion. Underpasses or overpasses are deliberately designed, based on the consultation with local population, to minimize disruption in mobility between both sides of the road.

• Affected Municipal Lands Table 16 below presents the various categories of affected municipal lands. Table 16: Summary of municipal land affected by Section 1 alignment. Land Classification of affected

Municipal Land Location and Size (ha) Total (ha)

Garadagh Salyan Local Road - 8.4286 8.4286 Unusable - 3.6182 3.6182 Irrigation Ditch - - - Pasture - 4.5462 4.5462 Agricultural - 2.7722 2.7722 Municipal Reserve - 1.3744 1.3744 Public Building area - - - Prospective Expansion Area - 0.9533 0.9533 TOTAL - 21.6929 21.6929DMS Results, RRI: August 2008 Approximately 21.6929 ha of municipal lands are affected in the Section 1 alignment in Salyan district. The biggest impact is in municipal lands utilized as local roads, followed by grazing area, agricultural and unusable areas.

• Affected State Land Reserve Table 17 shows the summary of the state land reserve in the different districts that will have to be acquired for Section 1 alignment. Table17: Summary of State Land Reserve affected by Section 1 alignment Land Classification of affected

State Land Location and Size Total (ha)

Garadagh Salyan Local Road 0.73 0.1 0.83 Unusable Marshy Irrigation canals 22.089 22.089

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Pasture 80.09 61.26 141.35 Agricultural Railway and Highways 1.12 5.1 6.22 Public Building area Prospective Expansion Area Forest Reserve 3.081 3.081 Oil and gas pipelines 0.13 0.13 TOTAL 82.07 91.63 173.7DMS Results, RRI: August 2008 In summary, a total of 241.0625 ha of various categories of land had been identified as required for the right of way of the final alignment for Section 1A and 1C, which consists of 45.6688 ha (18.9%) of private plots, 21.6929 ha (9%) of municipal plots and 173.7 ha (72.1%) of state lands. (iii) Impacts on Buildings and Structures The alignment was carefully selected to avoid affecting buildings and structures and minimize dislocation and impact on residential and commercial establishments. So, only three structures will be affected by the proposed road construction located in Chukhanli village of Salyan as shown in Table 18. While the incomplete structure and the stable are privately owned, the house owner has no relevant documents for ownership registration. Table 18: Category and Number of Affected Structures by Location

Location

Land Category Type of structure

Dimension of structure

Materials used

Cukhanli Municipal plot House 8.4x8=67.2 m2 Stone, cement finished, roof slate

Cukhanli Private Animal stable 4x9.4=37.6 m2 Stone, roof slate

Cukhanli Municipal plot Incomplete structure 1

27x8 =216 m2 Stone, cement

Source: DMS and SES Data, RRI International and SLCC, August 2008 The only affected residential building under the project is located in the Chukhanli municipality of Salyan district (approx: km 49+000 of the Alat-Masalli Highway). The building is located at the outskirts of Chukhanli village. This structure was built in 1960s and served as a guard station for the nearby water reservoir, but subsequently was abandoned. The current condition of the structure is poor. The building consists of two rooms, 8.4m x 4m each (see photos below). One of the rooms has windows and is currently used as residential. The second room does not have any windows and can be used as a storehouse. Several years ago the structure was occupied by the local family with informal consent of the municipality and was repaired slightly to meet minimal living conditions. The family consists of 3 persons - Mansura Karimova, 45 years old unemployed woman and her two children, 17 years old daughter and 15 years old son. The daughter is disabled and receiving financial assistance from the state. Social allowances amounting to about 150 AZN a month and poultry keeping are the main income sources of the family.

1 This incomplete structure was intended to be a big restaurant with total floor space of 216 m2. Compensation equivalent to the value of the entire incomplete structure (i.e. the reinforced concrete foundation and part of the walls that have been built), including the design and other costs that were borne by the owner, will be paid. The owner stopped construction works when the final road alignment was approved by ARS and disclosed during public consultations. Since the floor space is much larger, the amount of compensation eligible to the owner is naturally much larger than what would be provided to the owners of the other structures

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Photo 1: Residential part of the building Photo 2: Storehouse in the background

Given the vulnerability of this family, the local authorities and road administration are assisting the family to move and settle in the new location. Chukhanli municipality has already provided the family with a new plot of land in the Chukhanli village and is currently assisting to build the residential house. In addition, the family is entitled for financial assistance from the government within the Highway II Project compensation program (see the Table 25). Currently, the compensation amount is calculated based on the normative price of the building and equals to about 5.8 thousand AZN. This amount should be sufficient for implementation of works. In an unlikely case if adjustment is needed the contingency budget will provide additional funding to allow full restoration of pre-project living standards of the family. The new land plot granted to family will also allow them to continue poultry keeping activities. Thus, the assistance package for this family is designed to help them even to improve the pre-project living conditions given allocation of the land parcel which they did not have before and enhanced quality of the residential house. The monitoring consultant will pay a particular attention to this family and help them fully benefit from the social compensation plan.

(iv) Impacts on Crops and Trees The DMS revealed that the project will affect a number of trees (fruit-bearing and otherwise) owned by six households, three in Cukhanli, two in Xalac and another one in Yenikand. Table 19 below shows the detailed inventory of the affected trees in terms of type and number and years of maturity. Table 19: Location, Category and Number of Affected Trees

Location

Number of Household Affected

Category and Type of trees

Age Category in years TOTAL < 5 5-10 10-15 >15

Salyan Cukhanli 1 HH

Plum 10 10 Quince 5 8 13 Cherry-plum 3 3 Apple 3 3

Pomegranate 2 2

Subtotal 5 26 31 Salyan

Cukhanli 1 HH Quince 8 8 Medlar 3 3 Apricot 1 2 3 Apple 4 1 5

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Cherry-pum 1 1 2 Cherry 2 1 3 Pomegranate 9 1 10 Fig 1 2 3 Peach 1 1 Blood orange 2 2 Albuxara 1 1 Pear 2 2 Blackthorn 1 1

Subtotal 25 19 44

Salyan Cukhanli 1 HH

Medlar 2 2 Apple 18 18 Fig 3 3 Plum 11 11 Cherry 4 4 Blood orange 1 1 Peach 6 6 Pomegranate 18 19 37 Pear 25 25 Mulberry 3 4 7 Cherry-plum 9 9 Hazel-nut 2 2 Quince 31 10 41 Apricot 4 4

Subtotal 49 117 4 170 Salyan Xalac 1HH

Peach 18 18 Subtotal 18 18

Salyan

Yenikand Municipality plot Willow 8 8 Pomegranate 152 152 Cherry 36 100 136 Peach 55 55 Apple 6 14 20

Plum 11 11 Subtotal 42 332 8 382

Grand Total 4 HH +Municipal 121 512 4 8 645Source: DMS and SES Data, RRI International and SLCC, August 2008 nfb = non fruit bearing No crops like grains, cereals or vegetables will be affected in the ROW area as its harvest will be allowed and ensured even before construction. In case crops need to be uprooted and damaged before they are harvested, they will be compensated at their replacement cost based on the valuation methodology laid out in this RAP. (v) Other Impacts Other impacts include direct or indirect effects of the proposed construction on utilities, common/public properties, cultural and archaeological sites. Likewise, a detailed inventory of these affected utilities and other public infrastructure was undertaken. However, the mitigating measures for these impacts will be addressed by the Civil Work Contractor and will be incorporated in the terms of reference for the civil work contract. The sum effects of these impacts on income and quality of life of the affected person or households will be determined as the case maybe.

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4.3 Impact Assessment: Approach and Methods Following approaches and methods were utilized to identify the project affected persons and assess and determine the scope of impacts of the Project on them:

4.3.1 Cadastral Mapping

The plans and coordinates of the final alignment of the itinerary for the Alat-Salyan Section (1A and 1C) were overlaid over the land cadastre data for the areas in the records of the State Land and Cartography Committee (SLCC). From this cadastral data, the information on all publicly and privately owned land parcels within 30 m width zone from both sides of the centerline was extracted and mapped. Accordingly, an integrated database was developed where the information on specific location, ownership, land category, land-use profile, and potential land take for ROW is indicated for each land parcel. The mapping for each subsection and for each affected parcel was done and printed on a scale of 1:2000. SLCC will ask all concerned and relevant local officials (Executive Power and Local Land Offices) to certify the updated cadastral maps reflecting the size of the parcel required for the ROW of the Project and update ownership status.

4.3.2 Census A census was conducted for all households affected by the land take using the detailed cadastral maps printed on a scale of 1:2000 as reference. With the cadastral map as basis, staking of the centerline and delineation of the 60m ROW requirement were undertaken in the field. The staked out centerline and delineated ROW boundaries were the basis for the subsequent field investigations:

- all property ownership were identified/rechecked through the conduct of “on-site” census in cooperation with the local administration and community key informants;

- the boundaries of the affected parcels were delineated and measured; - the profiles for all land parcels were prepared, revised/updated; - the condition of all agricultural lands (irrigated and non-irrigated, arable and non-

arable, perennial, etc.) were recorded; - all non-agricultural properties and facilities were identified and recorded: public

properties including schools, commercials including shops and petrol stations, etc; - all houses/buildings were identified and recorded (number of floors, profile, condition

permanent/temporary, etc); and - analysis of the non-agricultural property were conducted.

All affected land owners are found to have proper registration to stand as legal land owners, except for three for whom registration process is under way with the assistance of the Consultant. 4.3.3 Asset Inventory/Detailed Measurement Survey and Socioeconomic Survey The list of land owners within the ROW requirement of the final road alignment was obtained from the SLCC. After the determination and identification of the affected parcels, the Team undertook an inventory and detailed measurement of assets (i.e., structures, trees, crops, utilities, communal resources, etc.,) within each affected parcels as well conducted a socioeconomic survey of sample of affected households to come up with a profile and determine the impact of the land take and displacement on their standard of living.

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The information contained in the profile per parcel included the category of affected land and updated ownership, size of land that is affected, size of the parcel to be acquired for ROW, the structures to be damaged within the affected parcel, standing crops and trees within the said parcel that will be cut down, income to be lost and access to be lost. A sample of the Asset Inventory and Detailed Measurement Form used for such purpose is shown in Annex 1. It will also contain the demographic and socioeconomic data of the affected person and household. Annex 2 provides the sample form for the Socioeconomic Survey. 4.3.4 Inventory of Project Impacts Based on the cadastre map and census data, an inventory of project impacts was developed. The inventory will sum up the overall effect and impacts of permanent and temporary loss of land, structures, crops and trees, business and other social, environmental and cultural benefits on the income and quality of life of the persons or households affected by the proposed road construction.

4.3.5 Compensation Methodology

(i) Compensation for Land PAP will be offered a choice between the cash compensation and the provision of alternative land plot of the same size and quality. Based on discussions during public consultations as well as land acquisition experience with other projects in Azerbaijan, it is expected that most PAP will prefer cash compensation, especially when the size of land to be acquired is minor. . However, the land swap option will be offered to PAP since some PAP, especially those who will lose significant part of their farm land, may prefer receiving alternative lands of the same size and quality. Indeed, land swap is commonly practised in acquisition of land, property and other assets for public needs in Azerbaijan. The methodologies for cash compensation and land swap are described below.

Cash Compensation The unit compensation values for private and public lands are determined based on the following approaches: - Assessment of the value of private land is based on current market price (Assessment

was made by the District Valuation Commission in assistance with Ministry of Finance. Specialists of the Ministry of Finance partially applied the Cabinet of Ministers Resolution No 54 in the assessment process. The criteria for determining current market prices specified in the Resolution No. 54 were used, but the assessment was not conducted by an independent appraiser as the legal framework for the independent appraisers institution was not established yet;

- Value of municipal land was assessed based on the normative price established for each district by the Cabinet of Ministers.

- 20% additional compensation is added on to calculated market price of the acquired land (based on the Decree of the President dated 26 December 2007 on ensuring the execution of the law No 506-3 QD dated 7 December 2007 about “Amendments and Additions to the Civil Code of Azerbaijan Republic).

The existing laws require that the price determined still needs to be mutually agreed by both sides (buyer and seller). This agreement is critical as shown by the experience in various projects, e.g., Tovuz Bypass (see the box below). In this example, market price for the

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affected plots was agreed initially between parties during the finalization of the RAP, but payment on the agreed price could only be implemented after two years when construction was about to start. Accordingly, landowners required price adjustment to consider current market prices which take into account inflation. The Road Department had then to renegotiate with the PAPs with the adjusted price being considered. Under the Highway II Project, the Executive Power of the district of Salyan formed the District Commission composed of various members of the Executive Power and individuals with expertise in land, agriculture and construction determined the current market prices of the affected lands. Garadagh did not participate since no private and municipal lands will be affected within its area of jurisdiction. The District Commission determined the price of both agricultural and non-agricultural land at 18,000 AZN /ha and informed the local population about determined land prices at the public consultation meetings. The Ministry of Finance determined that this price do not reflect the true market value of land in the project area and inquired the State Real Estate Registration Agency (SRERA) for data on recent transactions with land prices. SRERA responded to the inquiry of the Ministry of Finance in the letter dated May 19, 2009 and provided information on market prices of land in project area based on its records of recent transactions with land deals. In addition, specialists of the Ministry of Finance conducted anonymous informal survey in the project area. Based on the collected information the Ministry of Finance established new land prices in collaboration with the District Commission (Table 20). Table 20: Revised unit prices of land in Section 1 Location Unit price of

residential land

(AZN/ha)

20% additional compensation

bonus (AZN/ ha)

Total unit price of

Residential Land

(AZN/ha)

Unit Price of agricultural

land (AZN/ha)

20% additional compensation

bonus (AZN/ ha)

Total unit price of agricultural

land (AZN/ha)

Residential

Agricultural

Salyan 5,000 1,000 6,000 1,800 360 2,160 Source: District Identification and Valuation Commission, August 2009 ARS attempted to conduct a survey in order to corroborate the prices thus determined by the Minister of Finance. However, local population who were informed about the revised prices

Tovuz Bypass Lessons (unofficial version): Tovuz Bypass Project is one of the road rehabilitation projects financed by the World Bank under the Highway II Improvement and Development Project. It is an 11km road intended to bypass the main town of Tovuz through which the Baku-Qazakh Highway of the East West Corridor passes. As part of the Bypass development, a RAP was formulated in 2006 to mitigate impacts of road ROW acquisition (58ha of agricultural lands) affecting 399 HH. Based on cadastral maps from SLCC, the Executive Power approved the list of affected parcels and PAPs as well as agreed with PAPs on the market value of the affected land. This is the basis for the negotiation between LAD ARS and PAP to be finalized in a purchase agreement. The voluntary agreement is the basis of LAD ARS for the compensation payment. Unfortunately, RAP implementation has been confronted with a number of issues, foremost of which are the following: • Some affected landowners were not in the original

list of the SLCC cadastral map which is the basis of the purchase agreement.

• Because of the delays (1-2years) in compensation payment, PAPs demanded adjustment in the land pricing which unfortunately LAD had been unable to respond to because its basis for purchase and payment is the original estimate approved by DEP .

• The original list of PAPs and land valuation agreement was the basis for budget allocation by the Ministry of Finance. Changes as a result of negotiation could not be accommodated in the RAP budget allocated to LAD ARS.

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at the public consultation meetings complained to a local NGO for the significantly reduced prices. As a result, any attempt to collect data on land prices in project areas became extremely sensitive. Therefore, it was determined that existing, secondary data on market prices of comparable land would be used to verify whether the land prices established by the Ministry of Finance and District Commission reflect the true market values of land in project area. The consultant analyzed two surveys on land prices that have been carried out recently in Azerbaijan in areas that are comparable to project areas. Summary of these surveys is discussed below. Survey 1: The survey was conducted in the framework of the World Bank financed Azerbaijan Rural Investment Project to assess the value land in Salyan-Mugan area (Aran Economic Region) in February 2010. The survey is based on interviews of local residents who were asked to reveal their knowledge about prices of their land. As such, the collected data do not necessarily reveal the actual transaction value of land during the survey time. The survey was conducted in seven districts of the Aran region of which the Project will affect Salyan district. The following table summarizes results of the survey: Table 21: Average market prices of agricultural land in Mugan-Salyan: District Salyan Neftchala Jalilabad Saatly Sabirabad Imishli Bilasuvar Price of agricultural land (AZN/ha) 400 – 800 320 - 720 480 –

800 320 – 720 480 – 800 400 –

800 320 - 720

The price of agricultural land across districts varies between 320 – 1,600 AZN/ha. The prices are significantly correlated both to the distance from relevant district centers and main roads as well as availability of irrigation water in the area. The survey found that the price of most agricultural land in the region is below 800 AZN. Only 10% of agricultural land surveyed had the price above 1,600 AZN, and those agricultural lands with the price between 800 and 1,600 AZN account for less than 10% of the surveyed land. The remaining 80% of agricultural land has the value lower than 800 AZN. The survey results also revealed that about 60% of the farmlands in the region are irrigated and have good irrigation system. The prices for these lands are at the range of 640 – 1,600 AZN/ha. 40% of the farmlands are not or poorly irrigated with land prices at the range of 320 -640 AZN. The survey found that prices of residential land vary across districts between 4,000 – 8,000 AZN/ha. The price of residential land is significantly correlated to the distance from respective district centers. Survey 2: Survey was conducted by a consultant hired by the ARS for the estimation of land acquisition cost under the World Bank financed Highway III Project. The objective of the assignment was to conduct a survey on current market prices of agricultural and non-agricultural land in areas affected by the Project. The survey covered lands in districts of Gobustan and Shamakhi that are adjacent to the Baku-Shamakhi road. The survey was conducted based on interviews with individuals who intended to sell or buy land. Result of the survey is summarized in Tables 23-24. Table 22: Average market price of agricultural and residential land in Gobustan: N Village Category of land Type of land parcel Distance from the main road Unit price (1 ha/AZN)

Agricultural land

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1 Gobustan town 3 Agricultural 500 m 2,400

2 Gobustan town 3 Agricultural 800 m 1,900

3 Gobustan town 3 Agricultural 400 m 2,600

4 Gobustan town 3 Agricultural 100 m 2,700

Average: 2,400

5 Shikhzarli 3 Agricultural 300 m 1,200

6 Shikhzarli 3 Agricultural 100 m 1,700

7 Shikhzarli 3 Agricultural 400 m 1,400

8 Shikhzarli 3 Agricultural 100 m 1,600

Average: 1,475

9 Badalli 3 Agricultural 200 m 1,300

10 Badalli 3 Agricultural 100 m 1,500

Average: 1,400

11 Takla 3 Agricultural 200 m 1,700

12 Takla 3 Agricultural 100 m 1,800

13 Takla 3 Agricultural 50 m 1,900

Average: 1,800

Total Average: 1,823

Residential land

1 Gobustan town 3 Residential 700 m 8,000

2 Gobustan town 3 Residential 500 m 11,000

3 Gobustan town 3 Residential 500 m 13,000

4 Gobustan town 3 Residential 100 m 16,000

Total Average: 12,000

Table 23: Average market price of agricultural and residential land in Shamakhy: N Village Category of land Type of land Distance from the main road Unit price (1 ha/AZN)

Agricultural land

1 Muganli 1 Agricultural 400 m 5,000

Average: 5,000

2 Shahriyar 2 Agricultural 1.7 km 2,500

3 Shahriyar 2 Agricultural 1.6 km 2,600

4 Shahriyar 2 Agricultural 1.8 km 3,000

5 Shahriyar 2 Agricultural 1.6 km 3,500

Average: 2,900 6 Sabir 3 Agricultural 150 m 5,000

7 Sabir 3 Agricultural 100 m 6,000

8 Sabir 3 Agricultural 50 m 6,500

9 Sabir 3 Agricultural 300 m 4,500

10 Sabir 3 Agricultural 400 m 4,900

11 Sabir 3 Agricultural 500 m 4,000 Average: 5,150

12 Marzandiya 3 Agricultural 50 m 7,000

13 Marzandiya 3 Agricultural 100 m 6,700

Average: 6,850

Total Average: 4,708 Residential land

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1 Muganli 1 Residential 200 m 25,000

Average:

2 Shahriyar 1 Residential 1.2 km 10,000

3 Shahriyar 1 Residential 1.1 km 12,000

Average: 11,000

4 Sabir 1 Residential 400 m 15,000

5 Sabir 1 Residential 100 m 21,000

Average: 18,000

6 Marzandiya 1 Residential 300 m 16,000

7 Marzandiya 1 Residential 200 m 19,000

Average: 17,500 Total Average: 16,857

Gobustan district is more comparable to Salyan area given similarities in climate and land quality (although Gobustan is significantly closer to Baku), while Shamakhi is a popular touristic attraction within the quick driving distance from Baku with more fertile land and scenic landscape. The survey found that the average prices of agricultural and residential lands adjacent to M4 Baku-Shamakhi Highway in Gobustan area are 1,823 AZN and 12,000 AZN, respectively. The survey also revealed that land prices, both agricultural and residential differ among municipalities and the difference is more substantial in Shamakhi. The price difference is a function of the degree of economic development and potential and prices are strongly correlated with the distance to the main roads. Apparently, those areas with significant tourism attractions have higher land values than those that do not have particular non-agricultural businesses. For example, the prices of agricultural land are 5,000 AZN/ha in Muganli, 2,900 AZN/ha in Shahriyar, 5,150 AZN/ha in Sabir and 6,850 AZN/ha in Marzandiya. Prices of land are higher in Sabir, Muganli and Marzandiya villages of Shamaki, because these villages are tourism/recreation areas and/or located close to the main road. The revised unit prices of lands in the project area determined by the Ministry of Finance and approved by the District Commission (Table 21) are significantly higher than the prices resulted from Survey 1. Survey 1 indicates that only 10% of surveyed agricultural lands have the value above 1,600 AZN. The revised prices for agricultural land are also consistent with prices for comparable lands in Gobustan area determined under the Survey 2 (average price of 1823 AZN/ha). As for the residential lands, the area affected by the Project (which builds a new highway on greenfield) is distant from the existing main highway; and therefore the price thus determined is consistent with the Survey 1 findings (Survey 2 did not study land prices in the remote areas from main arterial roads). The assessment of existing survey findings indicates that unit prices of lands determined by the Ministry of Finance and approved by the District Commission are broadly consistent with the market value of lands in the project area. Nonetheless, since only secondary data were used in the analysis, strong grievance redress mechanisms, specified in the Section 5 of this document, are employed under the Project to ensure that PAP receive compensation equal to replacement value. Additional rehabilitation measures will be provided to those who lose more than 20% of agricultural land in the form of jobs created under the project construction works 1 and in the service/rest areas 1 to be established along the project road. Elderly,

1 Experience shows that contractors commonly hire local people for manual labor due to lower cost, and pay about $600 per month.

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disabled and woman-headed families will have a choice between land swap - provision of land plots of the same size and quality from the state or municipal land reserve near the current farmland - and the cash compensation based on the unit price used under the RAP. If the former option is chosen, the cost of preparing land or other costs associated with starting the use of alternative land plots would be covered by the ARS. Without regard to which option is chosen, they will be offered job opportunities as manual workers in civil works and in service/ rest areas that will be created once the motorway becomes operational. Finally, the applicable unit prices will be adjusted every 6 months in order to incorporate inflation.

Land Swap

The land swap option will be provided to the affected households if they prefer getting land plots of the same size and quality to cash compensation. As already mentioned, land swap is commonly practised in acquisition of land, property and other assets for public needs in Azerbaijan. Public land is available for swap in the affected areas, and local government and municipal officials confirmed during the public consultation meetings and inquiries from ARS that alternative land plots of the same size and quality can be provided to those who prefer. The transaction cost and other start up costs of using new land plots would be compensated by the ARS through contingency budget. The land swap process will be implemented as specified below:

- Individual PAP will be first offered cash compensation as determined based on the principles laid out in the RAP. If they prefer land swap, then land owners will apply to LAD/ARS with standard application stating their preference for the land swap option;

- Application are reviewed, documented and filed by LAD/ARS to Rayon Executive Powers and local municipalities with requests to allocate appropriate land plots. Rayon Executive Powers and local municipalities propose alternative land plots for consideration of the land owners. In the process, more than one land plots may be offered to land owners, if necessary, till agreements can be reached between land owners and ARS. After consideration of all available options, PAP has the right to drop their preference to land swap and elect cash compensation;

- Once the land plot for swap is agreed between the land owner and local authorities, transaction is registered in the records of Local Land Office/SLCC and State Real Estate Registration Service. Related registration and transaction costs are covered by ARS. Throughout the process the monitoring consultant will be accessible to PAP and provide necessary assistance in addressing any grievances.

All land swaps will be completed prior to initiation of civil works. The monitoring consultant will work closely with ARS to ensure that the land swaps are processed appropriately and timely and all related transaction costs are covered by ARS.

1 The design of the road envisages that rest and service areas would be established at several locations along the M3 motorway to be operated by the Ministry of Transport/ ARS. At least 2 service areas out of 10 fall under the Section 1 (48.3 km). This is very close to Chukhanli and other project affected villages in Salyan. Two major criteria used for the selection of the locations of service areas were (i) proximity to villages so employees of the service areas can commute easily and (ii) location on state owned lands to minimize the land acquisition.

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(ii) Compensation for Trees and Crops Trees are valued based on classification/ type and age category/ productive capacity (i.e., seedling, not yet productive and productive). The ARS has a price index based on their experience and records of the replacement value of the different categories of trees as shown in Table 24 below. This is also used as a basis for negotiation on the compensation with the PAP. Table 24: Category and Type of Trees and Estimated Value per Age Group Category and Type

of trees Age Category in years and Estimated Value TOTAL

Age Value per tree (AZN)

Age Value per tree (AZN)

Age Value per tree (AZN)

Age Value per tree (AZN)

# Value AZN

< 5 5-10 10-15

>15

Trees in Private lands

Quince 36 9.6 26 20.8 886.4 Cherry plum 1 9.6 13 20.8 280

Fig 1 9.6 5 17.6 97.6 Mulberry 3 17.6 8 35 334.4

Pomegranate 27 9.6 174 17.6 3321.6 Peach 1 10.4 79 19.4 1400.8 Medlar 5 19.4 97 Apple 9 6.4 33 17.6 638.4 Pear 2 9.6 25 17.6 459.2

Blood orange 2 7.7 1 10.8 26.2 Apricot 1 5 6 12.4 79.4 Cherry 38 6.4 105 9.6 1251.2

Albuxara 1 5.2 5.2 Blackthorn 1 5.2 5.2

Plum 33 10.8 356.4 Hazel-nut 2 9.8 19.6

Willow (nfb) 4 4 16 Total 120 512 4 8 642 9274.6

Trees in State lands

Source: DMS and Expert Opinions, RRI International and SLCC, August 2008 nfb = non fruit bearing Crops on the other hand are allowed to be harvested but if unavoidably affected by the scheduled construction will also be valued based on the formula below. Data on the productivity of crops and the average price of produce issued by the district Department of Statistics1 were used.

CrC = ((RP x Yd) – CC) x A x T

Where:

CrC = the compensation for loss of income from annual crops RP = the retail price of the produce (AZN/100 kg) Yd = the yield (100 kg/hectare) CC = the growing costs including material inputs, agro-technical activities, transport, and taxes and duties (AZN/hectare) A = the area cleared by the Project (hectares) T = the number of lost growing seasons

1 The procedure to be used in preparing these certificates is prescribed in Cabinet of Ministers Resolution No. 164 (25 November 1996).

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The complete list of owners and the estimated compensation value of these trees is provided in Annex 4.

(iii) Compensation for Structures, Immovable Asset and Land Attachments

Other privately-owned immovable assets and properties that are affected will be valued according to the principle of replacement value. Public utilities located in the affected private plots are also identified and inventoried and will be relocated and/or replaced in kind by the concerned Civil Work Contractor and this will be so indicated in the TOR of the Civil Work contracts. The replacement value for affected structures is determined by the specialists of the Ministry of Finance by calculating of market prices of construction materials needed to rebuild the same size and shape structure in the new area. Affected structures are inventoried and measured based on its dimension, materials used in the construction, labor cost and basic amenities present therein. Replacement value is then calculated based on all of these considerations. A survey of the cost of similar materials in the area was undertaken and compared with the price index of comparable materials in the recent records of the ARS OJSC which has already been undertaking similar price inventory based on their experience on compensation for similar items in similar projects. Houses and buildings’ valuation were based on the average value at replacement cost based on current prices of materials, type of construction, labour, transport and other construction cost as surveyed by the RAP Team and compared with the price index in the records of a concerned department of ARS (estimated cost to build a similar structure). Based on the normative value, the replacement value for the affected structures in the Project area is provided in the Table 25. Table 25: Average cost of affected buildings/structures by category and location Type of structure

Owner Dimension Materials Calculated Price

AZN

20% addition

Total AZN

House Karimova Mansura Panah

8.4x8=67.2 m2 Stone, cement finished, roof slate

4863 972.6 5835.6

Animal Stable

Bunyatov Saxavat Shahbaz

4x9.4=37.6 m2 Stone, roof slate

2512 502.4 3014.4

Incomplete structure

”La Vida” MMC 27x8=216 m2 Stone, cement 17120 3424 20544.0

Source: DMS and Expert Opinions, RRI International and SLCC, August 2008

(iv) Severe Impact

Severely affected people, those who will lose over 20% of land, as well as vulnerable people such as elderly, disabled and female-headed households, will benefit from additional rehabilitation measures, including provision of alternative land plots, priority in job opportunities in civil works during the construction period and in service areas after the road opening. 73 households out of 149 will lose more than 20 percent of their land. The main type of impact is loss of land in one plot.1 The level of the impact on affected people, including on woman headed households in each village is described in Table 26.

1 During the land reform many households in the area were provided with several land plots of different quality.

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Table 26: Data on severely affected people

Village

Total number of

Households

Of which who will lose over 20% of land

Of which who will lose over50% of land

Number of Households

% Number of

Households

%

Chukhanli 37 10

27 8

21 including woman-headed HHs 7 1

14 0

0

Xalac 45 27

60 5

11 including woman-headed HHs 10 7

16 1

10

Yenikand 67 36

54 7

10 including woman-headed HHs 8 4

50 0

0

Total for Section-1 149 73 49 20 13 including woman-headed HHs 25 12

48 1

4

To minimize the impact on severely affected people, they will be offered a choice between (i) the cash compensation based on the unit price used under the RAP and (ii) the provision of alternative land plots of the same size and quality near the current farmland from the state or municipal land reserve. If the latter option is chosen, the transaction cost and other start up costs of using new land plots would be compensated by the ARS through contingency budget. Public land is available for swap in the affected areas, and district government and municipal officials confirmed during the consultation meeting that such land swap is available to those who prefer. The monitoring consultant will work closely with ARS to ensure that the land swaps are processed appropriately and timely and all related transaction costs are covered by ARS. As an additional rehabilitation measure, severely affected people will be the priority group for job opportunities in civil works during the road construction. It is estimated that civil works for this section of the road will require about 2000 local workers in total, for two years of construction. 1 The experience from the rehabilitation of Baku-Shamakhi road under the Highway II Project demonstrated that the contractor employed about half of labour from local people living in villages along the road. The civil work contracts in Azerbaijan are based on standard FIDIC contract provisions with a clause encouraging engagement of local labour force, especially women and unskilled labour. Under the present project ARS will modify the language in civil work contracts to ensure that severely affected people will be given priority in benefiting from job opportunities created by the project. Thus, the specific provision of contracts on “Engagement of Staff and Labour” (Part B, sub-clause 6.1) will use the following language: “The Contractor is encouraged to employ women. Subject to availability of suitable 1 The experience of road projects in Azerbaijan suggests that every10 million USD investment in construction of roads results in 170 local employment places in average. Estimation is based on data from recent investments on construction of Baku-Shamakhi road and first 22km of Alat-Masalli road. Experience shows that that local people hired by contractors for manual labor are paid about $600 per month.

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candidates, the Contractor shall engage unskilled labour from Azerbaijan. In all instances of engaging labour, the Contractor is encouraged to give priority to people severely affected by the project as determined in the Resettlement Action Plan for Section 1 of Alat-Masalli road, dated ____”. In addition, severely affected people, especially widows and women headed households will be given priority in job opportunities in service/rest areas to be created once the road becomes operational. This is an economic activity to be generated in the mid-term with employment opportunities for local people. One of the major criteria for selection of the location of service areas was the proximity to villages so employees of the service areas can commute easily. The Ministry of Transport / ARS, as the operator of service areas, will attach the list of the severely affected people in the concession or lease contracts and encourage businesses in the service areas to hire severely affected people.

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5. GRIEVANCE AND REDRESS MECHANISM

As mentioned above, only secondary data were available to determine the unit prices of compensation. While these secondary data indicate that the unit prices established by the Ministry of Finance are equivalent to or higher than the market prices of lands in the project affected area, a considerable variance between municipalities observed means that there may well be cases where higher land prices prevail in exceptional cases. Under the RAP, a strong grievance redress mechanism will be applied in order to ensure that all PAP would receive compensation that is sufficient to restore their livelihood.

Under the existing law in Azerbaijan, ARS cannot acquire land and start civil works without land purchase agreements signed by land owners, or they need to go through the extremely complex and time consuming expropriation process. Grievance redress mechanisms to be employed under the Project will help ARS and PAP avoid such a lengthy expropriation process for mutual gain. Specifically, the Consultant will receive grievances from PAP and convey them to the LAD to ensure that grievances are duly and timely addressed. The monitoring consultant will help ARS develop solutions to redress grievances from PAP. The consultant will report to the management of ARS on implementation progress.

Throughout the implementation, the consultant will be accessible to the PAP through the hotline and regular field visits and meetings, and receive grievances from PAP. Prior to RAP implementation, a consultation meeting will be conducted in each municipality to explain the applicable grievance redress mechanisms. A handbook will be prepared that summarizes the grievance redress mechanisms, together with applicable unit prices, valuation methodology and implementation arrangements including swap option, which will be made available at public spaces like schools and health posts.

The consultant will be responsible for investigating grievances received and reporting the results in the monthly progress report with brief description of complaints received, assessment conducted and solutions recommended to the ARS. Solutions would be developed on the principle of replacement cost, so as to ensure that the livelihood of PAP with grievance will be restored after their implementation. The ARS and relevant local Executive Powers will help the Consultant obtain necessary data to develop such solutions. The consultant will prepare, prior to the commencement of the task, a screening mechanism to guide through the assessment that need to be conducted, the response time by which measures to redress grievances need to be delivered, and whether the Bank task team’s prior clearance is required before compensation is paid or recommended solutions to grievances are implemented. The monthly progress report will be sent to the ARS and the Bank task team. The consultant will keep the log book of complaints received and attach it in the monitoring completion report which will be submitted to the ARS and the Bank task team. The Monthly progress report will be disclosed at publicly accessible places. The scope of work and responsibilities of the monitoring consultant will be detailed in the consultant’s Terms of Reference.

The monitoring consultant will pay a particular attention to the relocated family and help them fully benefit from the social compensation plan. Where PAP with grievances are not satisfied with the solutions thus developed and cleared by the Bank task team, they may apply to the court for mediation. The Consultant will provide them necessary support. Where the compensation determined by the court is less than what would enable the restoration of livelihood, the ARS would implement additional rehabilitation measures, under the guidance of the Consultant, so the livelihood of PAP in question would be restored.

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6. INFORMATION DISSEMINATION, CONSULTATION, PARTICIPATORY APPROACHES AND DISCLOSURE REQUIREMENTS 6.1 Project Stakeholders

To ensure that stakeholders are aware of resettlement policies for the construction of the Salyan-Shorsulu Section of the Alat – Astara Motorway, comprehensive information campaigns and public disclosure programs have been undertaken. The primary stakeholders of this RAP are the private owners of land and buildings within the required road ROW of the final alignment, officials (executive power and local land offices) of concerned municipalities traversed by the alignment, private contractors who will undertake the civil works, the State Land and Cartography Committee, the Ministry of Finance and its regional representatives, and the ARS (MOT) as the executing agency. The secondary stakeholders include officials of the affected villages and districts; nongovernmental organizations (NGOs); the SLCC; general public and the World Bank. The stakeholders’ view and recommendations were properly considered in the preparation and implementation of the RAP.

6.2 Information Dissemination, Participation, Consultation and Disclosure Information about the project was properly disseminated and issues were discussed during consultation meetings. During RAP preparation, stakeholders were informed through the distribution of the Project Information Brochure (PIB) and Resettlement Information Booklet (RIB) translated to local language, containing the details of the Project and the RAP (see Annex 7 for the sample of the Information Brochure). Initial discussions were held during the preliminary and detailed design phases of the Project with the primary stakeholders (community members/landowners and community and district officials) on the project concept and planned interventions. The LAD, SLCC, district officials and the Consultant in consonance undertook this first major consultation. The draft RAP was prepared in consultation with the stakeholders and PAP after the final road alignment had been determined and staked out. A major consultation concerning the draft RAP was undertaken. Notices for such consultation, indicating the place, date and time, was appropriately disseminated in public places. Consultation meetings concerning the draft RAP have been undertaken, first on July 24, 2007, secondly on August 28, 2008 and September 24, 2009, in Salyan District with the participation of 30, 35 and 32 local people and NGOs representatives, respectively. Minutes of meetings and the summary of opinions expressed can be found in the Annex 8 to this RAP. Notices for such consultation, indicating the place, date and time, was appropriately disseminated in public places.

Based on the result of initial consultation and information dissemination, the LAD-ARS and Consultant had been able to achieve the following: (a) avoid critical areas and minimize dislocation and resettlement through the adjustment of the road alignment; (b) reduce potential conflicts with the affected communities; (b) minimize the risk for sub-project delays due to grievances. Consultations are conducted in three phases, as described below.

(i) Phase 1: Consultation during the Project RAP Preparation

This phase occurred during the RAP development and preparation. During this phase, the public, particularly the PAP, have been informed of the Project and the RAP, the anticipated project impacts, compensation policies and institutional arrangements. Preliminary consultation meeting and focused group discussions have already been undertaken. The following were discussed in that consultation meeting:

a. Project Background and Objectives

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b. Description of the Final Alignment c. Potential impacts including environment, land acquisition and resettlement d. Mitigation Measures for Adverse Impact e. Implementation Schedule and Activities f. Consultation and Participatory Development Process

PAP, community officials and other stakeholders took part in these meetings. It was also in these meetings that the PAP has confirmed their consent that their land and assets/properties could be acquired by the Project, subject to proper compensation. They will be again consulted after the final RAP has been cleared by the World Bank.

The PAP, stakeholders and local institutions as well as women had been consulted as part of the participatory planning process.

During the conduct of the transect walk, the Consultant had informal discussions with potential PAP on potential impact of the project including land acquisition.

During these initial consultations, wide ranging issues and concerns were raised, the summary of which is presented below:

• Affected communities recognize that the new road network will contribute to and accelerate socio-economic development in impacted areas.

• But PAP also raised a number of concerns that have to be addressed: - Fair and immediate compensation for affected assets and properties - Address the environmental and safety issues concomitant to construction and

improved traffic - Impact on public utilities should be avoided if not minimized; if unavoidable repair

and rehabilitation measures should be instituted immediately; - Protection of cultural and historical sites and monuments; and - Community/public access across the road during and after construction should be

ensured. The ARS responded that (i) compensation would be based on the valuation methodology and inventory attached to the RAP to ensure transparency; (ii) EMP would provide measures to mitigate project impact on environment, safety and cultural heritage; (iii) road would be designed to minimize impact on utilities and any damaged utilities will be repaired; and (iv) overpasses and underpasses would be constructed to allow easy communication both sides of the Highway. (ii) Phase 2: Consultations on the Draft RAP

The LAD held public consultation with the assistance of the Consultant to inform again the stakeholders and PAP about the draft RAP with a list of exact scale and scope of impacts under the Project, anticipated based on the final design of the project road, the Compensation Matrix and the procedure for payment. Likewise, the project implementation schedule was shared with the public and the PAP. The participants to this consultative meeting included the following persons and organizations:

• representatives of affected people, both beneficiaries and aggrieved; • officials from relevant local governmental bodies; • representatives of local government; • competent and authoritative community representatives, women, and elders; and

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• representatives of local NGOs and businesses as the case may be

Results of the official consultation undertaken in the different districts with various stakeholders were fully documented and comments and reaction to the draft were integrated into the Final RAP. Following the approval of this draft final RAP, consultation meeting would be held in municipalities to inform the PAP the grievance redress mechanisms and detailed valuation methodology.

(iii) Phase 3 – Consultation after approval of the RAP

Prior to the implementation of the RAP, the ARS, together with the monitoring consultant, will conduct a consultation meeting in every affected village, where the scope of impact, compensation methodology and rates, land swap option and grievance redress mechanisms would be explained to PAP. These issues will be also described in a simple handbook to be distributed among affected people. The contact address of ARS and monitoring consultant will be spelled out in the handbook. The monitoring consultant will be accessible to PAP with grievances through his/ her own mobile. PAP will be also informed about the hotline to send grievances.

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7. COMPENSATION AND REHABILITATION MEASURES UNDER THIS RAP

Land acquisition and resettlement under this Project will be implemented based on a compensation eligibility and entitlement framework in line with the Azeri laws and regulations and the World Bank’s Involuntary Resettlement Policy (OP 4.12). 7.1 Entitlement Matrix and Compensation Measures

(i) Compensation Entitlements.

Compensation entitlement will include provisions for permanent land losses, house and building losses, crops and tree losses. Table 27 of the entitlement matrix shows these details. These entitlements are as follows:

• Private Land Impact. PAPs with legal title will be compensated in cash at the current market rates. Eventual transaction taxes/fees will be paid by the Executing Agency (ARS) or waived by the government.

• Public Land Impact. Municipal owners will be compensated based on the nominal value in the form of cash at normative price as indicated in the Cabinet of Ministers Resolution providing nominal prices for land of various categories in the different districts of the country. Public land leased to private individuals will not be compensated as it is stipulated in the leased contract that such lease will be subject to cancellation in case the government needs the said land for public use.

• Houses, buildings and structures. The affected structure will be compensated in cash based on the normative value free of deductions for depreciation, salvaged materials.

• Community Structures and Public Utilities. If damages are unavoidable, these will be fully replaced or restored to meet their pre-project functions. This will be part of the responsibility of the Civil Work Contractor and will be stipulated in the civil work contract.

• Trees and standing crops. The construction schedule is adjusted so farmers will be able to harvest the annual crops. In the event that the schedule cannot be adjusted and some loss of crops becomes inevitable, compensation based on the replacement value will be provided. Cash compensation for affected trees will be based on replacement value as used by LAD ARS in the various road projects.

• Severe impact. If more than 20% of total land holding is to be affected by the Project, then jobs created under the constructions works and in the service/ rest areas to be established along the motorway would be offered to restore future flow of income. Elderly, disabled and woman-headed families will have a choice between land swap - provision of land plots of the same size and quality from the state or municipal land reserve near the current farmland - and the cash compensation based on the unit price used under the RAP. If the former option is chosen, the cost of preparing land or other costs associated with starting the use of alternative land plots would be covered by the ARS. Without regard to which option is chosen, they will be offered job opportunities as manual workers in civil works and in service/ rest areas that will be created once the motorway becomes operational.

• Temporary impact during construction. Temporary impacts concerning traffic diversion and rerouting during construction is a major consideration. Mitigating measures for these temporary impacts will be instituted. The civil works contract will require the contractor to be responsible for the temporary acquisition and reinstatement of all land required outside the road reserve for construction camps, offices, borrow pits, materials storage sites, materials processing sites and haul roads. The contractor will select the land parcels they require and they will be responsible for negotiating

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agreements with land owners to occupy the land. In the event that a contractor fails to obtain the agreement of any landowner, they would be required to select an alternative site and negotiate a new agreement. No involuntary occupation of land for temporary construction purposes would occur. Provision will be made in the civil works contract for the contractor to be responsible for providing adequate measures to cater for existing traffic while the road/bridge rehabilitation/construction works are in progress. The contractors shall be required to obtain the approval of ARS for all proposals for traffic management during the construction of the civil works contracts and they shall also be required to maintain all temporary diversion roads and existing roads used to carry diverted traffic from the main road.

(ii) Eligibility and Cut Off. PAP entitled to compensation or at least rehabilitation provisions under the Project are (i) PAP losing land and other assets with legal title and rights will be compensated, and PAP will be rehabilitated; and (ii) owners of buildings, crops, plants, or other assets attached to the land. Compensation eligibility was limited by a cut-off date which is the date of the approval of the census results by the district Executive Power. It is on this date that all impacted persons and properties were identified and the nature of impact determined. Any land transfer or modification to the affected land and properties after this date will not be considered affected by the Project. All affected people but one are found to have legal ownership to the land they occupy. The individual whose documentation is found to be incomplete is under assistance of the consultant to formalize the ownership. Therefore, no illegal land owner will be affected by the Project. Persons who settled in the affected areas after the cut-off date will not be eligible for compensation and modifications made to the property will not be considered. These illegal settlers will be given sufficient advice to vacate the premises and dismantle whatever structure they may have constructed without threat of confiscation, fine or sanction during the period of deadline for compliance to vacate; otherwise forced eviction will be instituted.

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Table 27: Entitlement Matrix

Type of Loss

Application Entitled Person12

Compensation Measures Policy Basis Responsible Agency

1

Permanent loss of private land

Agricultural, residential and commercial land

Land owners with title

PAP with legal title or traditional right will be compensated based on market value in cash free of transaction cost. 20% additional compensation will be paid to land owners according to the Presidential Decree dated 26.12.2007. If preferred, land plots of the same size and quality may be provided instead of cash compensation. All transaction costs related to land swap will be covered by ARS from contingency budget. Severely affected people (over 20% land take), as well as the elderly, widows and female-headed households will benefit from rehabilitation measures in addition to the compensation for loss of land (i.e., privileged access to employment opportunities under the Civil Works activities which will be stipulated in the Contractor’s contract, and jobs created in service/ rest areas that will be established once the motorway becomes operational).

Azerbaijan Constitution, Land Code of Azerbaijan Article 96, 101 & 102, Cabinet of Ministers Resolution #110. Resolution of the Cabinet of Ministers No 54, April 4 2009.

LAD-ARS, SLCC

Permanent loss of public land

Municipal lands Municipality and Rayon

Compensation will be paid to municipality for affected municipal lands which is calculated on the normative price. 20% additional compensation will be paid for only agricultural and perspective housing areas of municipal land. Leaseholders will not be reimbursed by the municipality (Masalli) for the period of lease not utilized on the portion retaken as the lease has set limitation in case of recall by the government of the said land for public use.

Cabinet of Ministers’ Decree#158 (1998), Land Code (1999): Article 46/47/71/72 & 96. Resolution of the Cabinet of Ministers No 54, April 4 2009.

LAD-ARS, SLCC and the Executive Powers of respective areas

2 Loss of structures

Private Residential, commercial and other types Community structures and public utilities

Owners with holding numbers Leaseholders, Rayon Administration

Compensation will be in cash based on replacement cost free of deduction for depreciation, salvaged materials and transaction costs irrespective of the registration status of the structure. Owners of legal structures will be assisted in the transfer of the affected buildings to new premises; if damaged, cash compensation will be provided. If damages to public structures and utilities are unavoidable, replacement or restoration to pre-project status will be undertaken as part of the Contractor’s responsibility. 20% additional compensation will be paid to structure owners according to the Presidential Decree dated 26.12.2007.

Land Code of Azerbaijan (1999): Article 101/102 Contractor’s Contract

LAD-ARS,

3 Loss of trees, crops

Standing crops and trees

Owner/cultivator, tenants, leaseholders

No loss is expected for standing crops as the construction schedule will be adjusted so they can be harvested. If unavoidable, 60 days advance notice is given - if crops cannot be harvested within the 60 days, cash compensation for crops (or share of crops) equivalent to prevailing market price Cash compensation for perennial crops and fruit bearing trees based on replacement principle. Cash compensation equivalent to prevailing market price of timber for non-fruit trees No compensation will be provided for crops already harvested. Affected trees and other perennials will be compensated per policy but the lumber from these trees maybe kept by the owner.

Land Code of Azerbaijan (1999): Article 101/102

LAD-ARS and the Civil Work Contractor

12 Identified during cut-off date

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6 Temporary impacts

Various types: Temporary impacts concerning traffic diversion and rerouting during construction; temporary loss of access

General public, owners of roadside structures

The contract will require the civil work contractor to be responsible for the temporary acquisition and reinstatement of all land required outside the road reserve for construction camps, offices, borrow pits, materials storage sites, materials processing sites and haul roads. The contractor will select the land parcels they require and they will be responsible for negotiating agreements with land owners to occupy the land. In the event that a contractor fails to obtain the agreement of any landowner, they would be required to select an alternative site and negotiate a new agreement. No involuntary occupation of land for temporary construction purposes would occur.

Contractor’s Contract PIU-ARS and Executive Powers

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7.2 Gender Impact and Mitigation Measures In general women compose about 51.9% of the total affected population. Almost 17% of the affected households are women-headed. Women play important economic role in the project areas and engage in a variety of income generating activities in the agriculture and marketing sectors. The Project will ensure that women also share in the benefit derived from the Project as will well as receive the appropriate compensation directly as PAP. Women headed households are identified in the survey and they are listed as the beneficiary of project compensation and resettlement measures under the RAP. In order to ensure their future flow of income would not be lowered, the following measures would be employed under the Project. They will be offered a choice between (i) the provision of alternative land plots of the same size and quality from the state or municipal land reserve near the current farmland and (ii) the cash compensation based on the unit price used under the RAP. If the former option is chosen, the cost of preparing land or other costs associated with starting the use of alternative land plots would be covered by the ARS. Without regard to which option is chosen, they will be offered job opportunities as manual workers in civil works and in service/ rest areas that will be created once the motorway becomes operational. .

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8. RAP IMPLEMENTATION AND INSTITUTIONAL RESPONSIBILITY

8.1 Implementation Activities and Timetable The schedule for the implementation of the Resettlement Action Plan presented in Table 28 shall correspond to the project implementation schedule. All activities considered by the Resettlement Action Plan shall be completed prior to commencing the construction activities at specific sections. Table 28: Resettlement Action Plan Implementation Schedule

# Activities Months 1 2 3 4 5 6 7 8 9 10 11 12

1. Preparation/Finalization of the RAP 1.1 Consultation/Disclosure Activities on the draft RAP 1.2 Revision and Submission of Final RAP 1.2 Pursuing RAP approval 1.3 Organization of mechanism for compensation payment and

transfer of fund

1.4 Preparing RAP Implementation mechanism (i) Mobilization of LAD Working Team (ii) Review of the DMS results and cadastral maps (iii) Establishment of Compensation Payment Mechanism 2. RAP Implementation 2.1 Hiring of monitoring consultant 2.2 Information Dissemination on construction schedule 2.3 Conduct of field assessment/verification/audit of ownership 2.4 Preparation of land documents for registration with the Public

Register

2.5 Verification of preference between cash compensation versus swap

2.6.1 Cash Compensation (i) Negotiation/agreement on compensation between the

Working Team and the PAP and execution of Land Purchase Agreement

(ii) Opening of bank account by PAP. In case of missing PAP, opening an account by ARS and deposit of payment.

(iii) Demarcation of ROW area and documentation in a cadastre (iv) Processing of land purchase agreement and its registration at

the Land Offices and SLCC

(v) Payment of compensation 2.6.2 Land Swap

(i) Application of land owners to LAD/ARS on their preference for the land swap option

(ii) Review of application by LAD/ARS, local executive authorities and municipalities

(iii) Allocation of alternative land plots by local executive authorities and municipalities

(iv) Review and acceptance by PAP of the land offered (v) Processing of land swap agreement and its registration at the

Land Offices and SLCC

2.7 In case of negotiation failure on cash compensation or land swap, ARS pursues the expropriation proceedings.

3 Construction Phase 3.1 Sending of notification to vacate purchased/sold property 3.2 Dismantling/takeover of ROW structures by Contractor 3.3 Start of Construction 3.4 Grievance Redress Action and Monitoring Activities The presented schedule of implementation of the Resettlement Action Plan considers the following:

• time required to undertake the cadastral and topographic surveys and prepare land documentation for registration;

• time required for providing public with necessary information;

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• time required for negotiations and reaching agreement, as well as time needed for giving out compensations;

• time required to secure a decree and proceed with the expropriation proceeding through the court.

The schedule considers synchronization of the above components and the time necessary for the grievance redress.

8.1.1 Preparation/Finalization of the RAP

• RAP Approval Process. The Final RAP are approved by the ARS and cleared by the World Bank.

• Budgetary Allocation and Release. In accordance with the approved RAP, budget for compensations will be allocated from the state to the ARS.

8.1.2 RAP Implementation

The Land Acquisition Department (LAD) of the ARS is responsible for carrying out the implementation of RAP.

• Information dissemination regarding the project activities and schedule. Prior to start of civil works activities, PAP will be informed about the schedule of civil works, likely impacts, mitigating measures and the schedule and procedure of compensation and land acquisition. Before the start of the RAP implementation a monitoring consultant will be hired by ARS who will work closely with ARS LAD and will inform PAP about the Project implementation, including grievance redress mechanisms set in the RAP.

• Demarcation of the project affected parcels. The Contractor and ARS working in coordination will demarcate the affected parcels in the presence of land owners and their neighbours as well the representatives of the Rayon based on the final alignment and the approved RAP. During the RAP preparation, the individual land parcels that will be affected had already been measured and surveyed and adjustment in the cadastral maps already been undertaken. In each affected village, the list of property owners with signed copies of their consent to the result of the measurement as mapped out in the cadastral drawing will be developed. These formal documents constitute the initial demarcation act that will serve as basis for the subsequent action in the demarcation activities to be undertaken during the RAP implementation. The affected land parcels had already been adjusted in the records of the Local Land Offices and the SLCC as a basis for issuance of new land documents for the affected landowners. All of these inventory data and cadastral maps are presented in Volume 2 of this RAP document. These documents will serve as a basis for the physical demarcation by the Contractor of the ROW areas for the Project road.

• Mobilization of Working Team. The Working Team under the LAD will be mobilized and field reassessment would be conducted. The Working Team, in cooperation with the Supervision Consultant for the Civil Work Contract, representatives of Executive Power and the Local Land Offices and PAP, will undertake the verification of the RAP census and asset inventory data on the demarcated parcel.

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• Land Acquisition Procedures. The process of ROW acquisition for private land requires the pursuance of four basic sequential activities as follows:

Confirmation of Land Ownership by the Affected Persons. Undertaking of Land Purchase Agreement between the concerned PAP and

the Roads Department Demarcation and Registration of ROW required parcels Payment of Compensation

These steps are described in more details below.

• Land Ownership Document. To ensure that the land transaction and sale is official and legitimate the appropriate document by the affected land owner establishing his right to the property is required. During the conduct of the DMS, the RAP Team also collected copies of these documents from the owners or land holders and these are attached as part of the land documentation which is included in the Volume II records. Except for one PAP whose formal land registration is in progress (having acquired the property by inheritance or purchase and has yet to finalize the change of records with the SLCC) all other documentations are in order. For those whose land documents are still in process, copy of the said transaction had also been procured by the RAP Team from the land occupants. It is anticipated that the payment of compensation to these persons will not cause a problem as long as supporting documents are in order. The concerned individuals will have to complete their ownership registration though with the SLCC.

• Final negotiation on compensation and Undertaking Land Purchase Agreement. Negotiation on the final compensation is undertaken by the LAD Working Team with the concerned PAP to institute the procedure for the release of payment. In case of a successful negotiation; according to current legislation, the land purchase agreement/deed will be signed and registered with the Local Land Offices and SLCC and will serve as a basis for paying compensation. In case of negotiation failure, the expropriation procedure will be pursued.

• Processing of land purchase agreement and its registration with the Local Land Office and the SLCC. After a successful negotiation for land purchase by LAD-ARS, the said transaction will be duly documented and registered in the records of the Local Land Offices and the SLCC.

• Opening of bank accounts for PAP. PAP may open individual bank account in local on any other bank according to their preference/choice. In case of missing PAP, the ARS OJSC will open an escrow account to deposit the compensation payment. All payments of cash compensation shall be undertaken through the banking system.

• Payment of compensation. After the successful negotiation between the PAP and the Working Team on the scope of impact, the amount of compensation and the manner of payment, the purchase agreement (deed) will be notarized (or, in line with current legislations, certified by the Executive Power and Local Land Office). Based on purchase agreement the equivalent cash value of compensation will be deposited to the PAP’s bank account. The purchase agreement shall be concluded in accordance with the Civil Code of Azerbaijan as the main legal document regulating the deed between ARS OJSC and the PAP.

• Land Swap. The land swap option will be provided to the affected households if they prefer getting land plots of the same size and quality to cash compensation. All land swaps will be completed prior to initiation of civil works. The land swap process will be implemented as specified below:

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- Individual PAP will be first offered cash compensation as determined based on the principles laid out in the RAP. If they prefer land swap, then land owners will apply to LAD/ARS with standard application stating their preference for the land swap option;

- Application are reviewed, documented and filed by LAD/ARS to Rayon Executive Powers and local municipalities with requests to allocate appropriate land plots. Rayon Executive Powers and local municipalities propose alternative land plots for consideration of the land owners. In the process, more than one land plots may be offered to land owners, if necessary, till agreements can be reached between land owners and ARS. After consideration of all available options, PAP has the right to drop their preference to land swap and elect cash compensation.

- Once the land plot for swap is agreed between the land owner and local authorities, transaction is registered in the records of Local Land Office/SLCC and State Real Estate Registration Service. Related registration and transaction costs are covered by ARS. Throughout the process the monitoring consultant will be accessible to PAP and provide necessary assistance in addressing any grievances

8.1.3 Expropriation Proceedings

• The monitoring consultant will help ARS to get agreement with land owners, and if agreement still fails, then expropriation procedure will start. The consultant will file all records of discussion that ARS had with land owners prior to expropriation. Expropriation will proceed in accordance with the "Law of Azerbaijan on Procedures for the Expropriation of Property for the Urgent Public Needs" (Rule of Acquisition of Private Property in Case of Urgent Public Need). Legal procedures for expropriation are not yet well established in Azerbaijan. Currently, legislation of the expropriation proceedings is being drafted (a draft will be submitted to the President for approval and corresponding submission to the Cabinet of Ministers for passage as legislation by 2008) which will make it easier for the Government to take over a private property for the interest of the common good.

The steps to pursue the expropriation procedure are as follows:

• Submission to the Court of request for expropriation. ARS submits to the Court a request for expropriation of a particular property for the road project.

• The amount of compensation for the expropriated property shall be deposited in favour of the legitimate owners in escrow account in bank nearest to them.

• Based on Court decision, the ARS will implement the right of Expropriator and take over the expropriated property.

If the compensation determined by the court is lower than the replacement value established by ARS and monitoring consultant, then the ARS will add the balance to ensure PAP would be compensated as per requirements under the RAP. 8.1.4 Construction Phase

• Notice to vacate the purchased/sold property sent to the individual PAP. After the release of payment for the impacted properties, ARS OJSC will officially notify the PAP on the need to vacate or clear the property for the road construction giving a deadline after which, the said property shall be subject of forced takeover by the government through the Civil Work Contractor.

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• Dismantling/takeover of ROW by ARS OJSC/Contractor. After the lapse of the deadline to vacate and clear the purchased property, the Project will physically take over them.

• The Construction Supervision Consultant which will be contracted to assist the Civil Work Contractor will support the LAD in ensuring that the RAP is implemented in accordance with the Plan and the Policy Framework.

• Start of Construction. The Contractor may now proceed with the construction after this.

8.1.5 Grievance Redress Action

Legitimate complaints and grievance shall be addressed according to the procedures outlined in Chapter 5. The monitoring consultant will keep the log book of complaints received and attach it in the monitoring completion report which will be submitted to the PIU and the Bank task team. The Monthly progress report will be disclosed at publicly accessible places. The monitoring consultant will conduct ex-post review of the implementation of this RAP. If cases are found where PAP fail to restore pre-project levels of livelihood, measures will be identified by the consultant to address them which the ARS will implement, based on the consultation with the Bank task team. The LAD and PIU, in assistance with the independent consultant, will undertake internal monitoring using the following instruments: (i) review of census information for all PAP, (ii) consultation and informal interviews with PAP; (iii) regular visit by the monitoring consultant to project affected areas and scheduled meetings with PAP; (iv) consultation with knowledgeable experts such as local notaries; (v) grievances received through hotline or regular site visits; and (vi) the monthly monitoring report that summarizes the results of RAP implementation, grievances received, investigations made and solutions employed. The monthly monitoring report would be submitted to the ARS and shared with the Bank. ARS will be responsible for providing funds for internal monitoring. Prior to the implementation of the RAP, the ARS, together with the monitoring consultant, will conduct a consultation meeting in every affected village, where the scope of impact, compensation methodology and rates, land swap option and grievance redress mechanisms would be explained to PAP. These issues will be also described in a simple handbook to be distributed among affected people. The hotline to send grievances would be established in the PIU, and the record of grievances will be kept. The monitoring consultant will be accessible to PAP with grievances through his/ her own mobile. The contact address will be spelled out in the handbook. The database of land prices and values of other assets will be developed to record the agreed prices and other rehabilitation and grievance redress measures provided under the RAP. A screening mechanism will be established which categorizes grievances in terms of severity and defines respective response times. Upon the completion of the RAP implementation, monitoring consultant will prepare the final report. 8.1.6 External Monitoring Following the completion of RAP implementation, the ARS will hire an independent consultant who will conduct an ex post evaluation of RAP implementation in order to determine whether the level of livelihood have been at least restored. The tasks for external monitoring will be to (i) review and verify internal monitoring reports; (ii) review the socioeconomic baseline census information; (iii) undertake impact assessment through surveys or focus groups with affected people; (iv) assess if adequate compensation was provided to a sample of PAP as per the requirements under the RAP; (v) assess if those PAP

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who faced severe impacts and vulnerable people have received rehabilitation measures as defined in the RAP; and (vi) assess the resettlement efficiency, effectiveness, impact, and sustainability to draw lessons for preparation and implementation of future resettlement planning documents. The external monitoring will pay particular attention to whether vulnerable people and those who faced severe impact did receive jobs to be created in service/ rest areas. The external monitoring consultant will prepare the RAP completion report and submit it to the PIU and the Bank.

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8.2 Institutional Responsibility

8.2.1 The AzerRoadService of the Ministry of Transport of Azerbaijan

The ARS OJSC of the MOT of Azerbaijan is responsible for supervising the road construction activities undertaken by the Contractor and shall also have oversight responsibility for the implementation of the Resettlement Plan. The LAD of the ARS OJSC shall be responsible for implementation and coordination of activities specified in the Resettlement Plan. It shall also be and ensure that RAP related impacts (permanent and temporary) are properly addressed as indicated in the RAP. Land Acquisition Department The LAD shall be responsible for the day to day implementation of the various activities related to RAP implementation. The LAD’s tasks involve the coordination and supervision of the activities of the Working Team. It ensures the acquisition of the road ROW; it takes decisions on compensation and expropriation which should be agreed with the ARS OJSC management. The LAD is responsible for ensuring that all PAP are duly compensated and that mitigating measures are instituted by the Civil Work Contractor as a result of temporary impacts. Accordingly, monitoring of RAP shall be duly undertaken. The LAD since its creation in 2006 has had extensive and varied experiences in resettlement and land acquisition of various roads projects of the Agency which are either state-, bilaterally, or multi-laterally funded. In carrying out the tasks for this RAP, the LAD staffs bring with them their wealth of experience in dealing with similar issues in cognizance of the policy requirement of the funding institutions like the WB. 8.2.2 Court of Azerbaijan The Court of Azerbaijan shall be the body of last resort for issues and concerns regarding the implementation of the RAP. In case of failure in the negotiation between the ARS OJSC and the PAP concerning the acquisition of private properties, the ARS OJSC with the mandate for expropriation based on existing legislations will submit to the Court a request for expropriation. Upon its approval and following prescribed procedure, ARS can then take over the concerned property after having been given by the Court the right of the Expropriator. Furthermore, in cases where complaints and grievances regarding the RAP implementation and compensation are not solved at the various levels as prescribed in the agreed Grievance and Redress Mechanism for this RAP, the PAP will have the right to appeal the case to the Court as a last resort. Its decision shall be final and executory. 8.2.3 State Committee on Property Issues (SCPI) The SCPI is responsible for ensuring that ARS MoT comply with the procedure for preparing the various documents for the acquisition of properties for state needs. Real Estate State Register Service of the State Committee on Property Issues - The agency reviews whether the said property has been mortgaged and counterchecks the ownership of the said property and gives certificate form No 1 for all assets in order to be used by LAD to register land acquisition in notary. After the land acquisition process completed, the Agency

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updates the land and property register documents of all the PAP removing the right to the parcel of land or property purchased by the ARS MoT. 8.2.4 Contractor A Civil Work Contractor appointed by the ARS OJSC to undertake the construction will be responsible for mitigating temporary impacts resulting from the construction activities. Based on the RAP and the Technical Design, the parcel of land that had been identified and acquired as part of road ROW will be demarcated to clearly delineate it from the remaining non affected parts. Contractor will be responsible for implementing measures for temporary impact as laid out in the EMPs. The construction activities shall be monitored closely by the LAD and Monitoring Consultant to ensure compliance to the temporary mitigating measures. 8.2.5 Monitoring consultant. An independent consultant will be hired who will work closely with the ARS and monitor the implementation of the RAP closely. Throughout the implementation, the consultant will be accessible to the PAP through the hotline and regular field visits and receive grievances from PAP. Prior to RAP implementation, the Consultant will organize a consultation meeting in each municipality and explain the applicable grievance redress mechanisms. The Consultant will also prepare a handbook which summarizes the grievance redress mechanisms, together with applicable unit prices, valuation methodology and implementation arrangements, which will be made available at public spaces like schools and health posts.

The monitoring consultant will be responsible for investigating grievances received and report the results in the monthly progress. The consultant will keep the log book of complaints received and attach it in the monitoring completion report which will be submitted to the PIU and the Bank task team. The monitoring consultant will also provide necessary support to PAP with grievances not satisfied with the solutions.

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9. MONITORING AND REPORTING

In accordance with the World Bank’s Resettlement Policy, all projects that result in land acquisition and resettlement need to be properly monitored and evaluated. To ensure that the Project is implemented in compliance with the provisions of the RAP, an internal and external monitoring will be carried out during and after the implementation of the RAP.

9.1 Internal Monitoring To ensure that the project is implemented in accordance with the WB policy requirements and the approved RAP, the internal monitoring will be undertaken by the LAD, PIU in ARS. ARS will hire independent monitoring consultant to work closely with PIU to carry out internal monitoring to assess the progress and results of RAP implementation. Indicators for internal monitoring will be those related to process and immediate outputs and results. Specific internal monitoring indicators are shown in Table 29. Table 29: Internal Monitoring Indicators

Monitoring Indicators Basis for Indicators

Budget and Timeframe

• Have all land acquisition and resettlement staff been appointed and mobilized for the field and office work on time?

• Have capability building and training activities been completed on schedule? • Have resettlement activities been completed according to the agreed timeframe? • Are funds for resettlement being allocated to the resettlement agencies on time? • Have ARS received the scheduled funds? • Have funds been disbursed to the affected families according to the RAP? • Has all land required been acquired in time for project implementation?

Delivery of PAP Entitlements

• Have all PAP received compensation and/ or rehabilitation measures sufficient to restore livelihood?

• Have all PAP received complete payments on time? • Have all PAP losing temporary land been compensated? • Is restoration proceeding for social infrastructure and services? • Are PAP able to access schools, health services, cultural sites, and activities? • Have vulnerable people and those with severe impact been hired in civil works? • Have vulnerable people and those with severe impact been hired in service/ rest areas?

Consultation, Grievance and Special Issues

• Have consultations taken place as scheduled? • Have resettlement booklets and announcement been delivered? • How many PAP know their entitlements? How many know if they have been received? • Has any PAP used the grievance redress procedures? What were the outcomes? • Have conflicts been resolved? • How many PAP have reported their grievances? • Has the grievance screening mechanisms developed? • Has monthly monitoring report been prepared and submitted to the Bank? • Has database of land prices and other asset values been established and regularly updated? • Has the monitoring consultant visited every district in a month? • Are PAP aware of the contact of the monitoring consultant?

The LAD, PIU in assistance with the independent consultant will undertake internal monitoring using the following instruments: (i) review of census information for all PAP, (ii) consultation and informal interviews with PAP; (iii) regular visit by the monitoring consultant to project affected areas and scheduled meetings with PAP; (iv) consultation with knowledgeable experts such as local notaries; (v) grievances received through hotline or regular site visits; and (vi) the monthly monitoring report that summarizes the results of RAP implementation, grievances received, investigations made and solutions employed. The

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monthly monitoring report would be submitted. ARS will be responsible for providing funds for internal monitoring.

Prior to the implementation of the RAP, the ARS, together with the monitoring consultant, will conduct a consultation meeting in every affected village, where the scope of impact, compensation methodology and rates, land swap option, and grievance redress mechanisms would be explained. These issues will be also described in a simple handbook to be distributed among affected people. The hotline to send grievances would be established in the PIU, and the record of grievances will be kept. The monitoring consultant will be accessible to PAP with grievances through mobile. The contact address will be spelled out in the handbook. Database of land prices and other asset values will be developed based on the agreed land transactions conducted under the Project and in consultation with local notaries. A screening mechanism will be established which categorizes grievances in terms of severity and defines respective response times. Upon the completion of the RAP implementation, monitoring consultant will prepare the final report.

9.2 External Monitoring

Following the completion of RAP implementation, the ARS will hire an independent consultant who will conduct an ex post evaluation of RAP implementation in order to determine whether the PAP have the level of livelihood at least as same as before the road construction. The tasks for external monitoring will be to (i) review and verify internal monitoring reports; (ii) review the socioeconomic baseline census information of pre-displaced persons; (iii) undertake impact assessment through surveys or focus groups with affected persons; (iv) assess compensation provided to a sample of PAP was adequate; (v) assess if those PAP who faced severe impacts and vulnerable people have received rehabilitation measures as defined in the RAP; and (vi)assess the resettlement efficiency, effectiveness, impact, and sustainability to draw lessons for preparation and implementation of future resettlement planning documents.

The external monitoring will pay particular attention to whether vulnerable people and those who faced severe impact did receive jobs to be created in service/ rest areas. The external monitoring consultant will prepare the RAP completion report and submit it to the PIU and the Bank.

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10. RESETTLEMENT COST AND BUDGET

10.1 Compensation on Land Acquisition Table 30: Summary of Land Compensation Costs

Category

District

Land classification

Area

Unit Cost(including 20%

additional bonus)

Cost (AZN)

Total (AZN)

Private Salyan Agricultural 44.8538 2160 96884.21 98,644.61 Homestead 0.815 2160 1760.40

Municipal Salyan

Agricultural 5.0999 1500 7649.85 12,330.74 Non-Agricultural 12.0468 209.44 2523.08

Pasture 4.5462 474.64 2157.81

Total: 110,975.35 10.2 Compensation for Structures Impacted Table 31: Summary of Compensation Costs for Affected Structures Type of structure Dimension Calculated cost

(AZN) 20% addition

(AZN) Total(AZN)

House 8.4x8=67.2 m2 4863 972.6 5,835.6 Animal Stable 4x9.4=37.6 m2 2512 502.4 3,014.4 Incomplete structure Height=1.4m,

Length=14m 17120 3424 20,544.0

Total: 29,394.0

10.3 Compensation for Affected Trees

Table 32: Summary of Compensation Costs for Affected Trees Category and Type

of trees Age Category in years and Estimated Value TOTAL

Age Value per tree (AZN)

Age Value per tree (AZN)

Age Value per tree (AZN)

Age Value per tree (AZN)

# Value AZN

< 5 5-10 10-15

>15

Trees in Private lands

Quince 36 9.6 26 20.8 886.4 Cherry plum 1 9.6 13 20.8 280

Fig 1 9.6 5 17.6 97.6 Mulberry 3 17.6 8 35 334.4

Pomegranate 27 9.6 174 17.6 3321.6 Peach 1 10.4 79 19.4 1400.8 Medlar 5 19.4 97 Apple 9 6.4 33 17.6 638.4 Pear 2 9.6 25 17.6 459.2

Blood orange 2 7.7 1 10.8 26.2 Apricot 1 5 6 12.4 79.4 Cherry 38 6.4 105 9.6 1251.2

Albuxara 1 5.2 5.2 Blackthorn 1 5.2 5.2

Plum 33 10.8 356.4 Hazel-nut 2 9.8 19.6

Willow (nfb) 4 4 16 TOTAL 120 512 4 8 642 9274.6

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10.4 Administrative Cost Table 33: Summary for Administrative Cost

Item Cost (AZN)

Communication expenses 2 000

Cost for Internal Monitoring 18 500

Cost for External Monitoring 40,000

Consultation campaign 2000 Total administrative expenses 62 500 10.4 Summary of RAP Budget Requirement Table 34: Resettlement Budget in Summary

Item Qty Unit Cost (AZN)

Land 67.3617 ha 110,975.35

Structure 3 number 29,394.0

Trees/crops 642 number 9274.6

RAP Administration / Internal Monitoring 62,500

Total: 212,143.95

Contingency:13 15 percent 31,821.59

GRAND TOTAL: 243,965.54

13 If more compensation will be needed to ensure livelihood restoration, it will be paid from the contingency budget. In an unlikely event that the contingency budget is not sufficient to pay compensation of replacement value to all eligible households, ARS will secure an additional budget from the Ministry of Finance.

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References

2.1 IDA Credit 3517 – AZ, TECHNICAL ASSISTANCE FOR TOVUZ BYPASS, LAND ACQUISITION PLAN, Finnroad, Baku, May 2005.

2.2 Country Assistance Strategy for Azerbaijan Republic; The WB (2003) 2.3 BTC co (2002): BTC Project Resettlement Action Plan Azerbaijan Final Report 2.4 World Bank (2001) Poverty Assessment and Poverty Alleviation in Azerbaijan’s Central

Corridor: Final Report, Baku/Rotterdam, May 2001 2.5 Phase 1 Report: HIV/AIDS Activity Summary – Preparation of Environmental Assessment

and Management Plans and Capacity Building. Azerbaijan Motorway Improvement and Development. Scott Wilson Ltd with Swiss Center for International Health, Swiss Tropical Institute. November 2006.

2.6 The following World Bank documents:

• The World Bank Operations Manual • OP/BP 4.12 Involuntary Resettlement:

http://lnweb18.worldbank.org/ESSD/sdvext.nsf/52ByDocName/InvoluntaryRese • OPN 11.03 Management of Cultural Property in Bank-financed Projects:

http://lnweb18.worldbank.ogp/ESSD/sdvext.nsf/52ByDocName/CulturalProperty • The World Bank Procedures on Information Disclosure

http://www1.worldbank.org/operations/disclosure/

Volume 2 includes the land compensation drawings which will be prepared at a scale of 1:2,000 showing:

• details of the cadastral survey with boundaries of identified plots and corresponding numbers;

• details of the land compensation planning including affected structures with number as well as determined areas of land replacement with corresponding numbers;

and associated land compensation tables/schedules providing detailed information on:

• the item number of identified plots and affected structures with indication on which drawing they are shown;

• the name of the land user and the identified land use or type of affected structure;

• the land requirement for the new road (affected area of land or structure); and • the determined compensation requirement with land replacement (area and new plot

number), if available, and calculated costs of compensation for affected trees, the loss of income and the relocation of affected structures.

Annex 1: Sample Inventory Form INVENTORY AND ASSESSMENT FORM

Alat-Astara (Alat to South of Masalli)

Section:____________ Sub-section:_______________

Rayon:___________________

Village:___________________

Date 2007 ______ _______

Project officer _____________________________________________

Full name of land owner/user and address:

______________________________________________________________________________

(should be controlled according to SLCC's information. If the owner is not the person indicated in the documents, ask for supporting documents and specify here

Plot identification corresponding to the cadastre map data

1,1 No of Land Parcel:

1,2 Area of Plot: m2

1,3 Area required by Project: m2 1,4 Plot classification 1.4.1 private 1.4.2 municipal 1.4.3 state Land/plot use

2,1 Please indicate the type of the plot: 1-agricultural 2-household 3-commercial 4-other non-agricultural

2,2 In case of agricultural use please indicate:

2.2.1 Type of land use

1-perennial 2-arable

3-pasture

2.2.1.1 In case of perennials please indicate their type:

1-orchard,

2-vineyard 3-other

2,3 In case of arable plot please indicate the type of its use:

2.3.1 use area (m2)

harvest (kq)

price (AZN\kg)

wheat barley sun flower

alfalfa vegetables corn

melons and gourds

cotton 2.3.2 rested 2.3.3 uncultivated 2,4 If the plot is used under perennials please indicate the type of its use:

sort area(m2) trees in total

fruit bearing trees harvest (kg)

price (AZN\kg)

apple pear quince plum cherry apricot peach walnut hazelnut vine other

2,5 In case of non-agricultural plot please give information of perennials existing within the plot trees in total fruit-bearing trees other information apple pear quince plum cherry apricot peach walnut hazelnut vine other

3 Structures and other facilities located on the plot

3,1 Please indicate the structures and other facilities located on the plot and relevant information:

3.1.1 residential 1-operational 2-non-operational

3.1.1.1 area as indicated in the plan (m2)

3.1.1.2 number of floors: (0-under construction)

3.1.1.3 construction materials and other relevant information

_______________________________________________

3.1.1.4 full name and address of the owner

_______________________________________________

3.1.2 commercial building 1-operational 2-non-operational

3.1.2.1 area as indicated in the plan (m2)

3.1.2.2 number of floors: (0-under construction)

3.1.2.3 construction materials and other relevant information

_______________________________________________

3.1.3 wall or fence 1-operational 2-non-operational 3.1.3.1 construction materials and other relevant information

_______________________________________________

3.1.3.2 full name and address of the owner

_______________________________________________

3.1.4 Warehouse 1-operational 2-non-operational

3.1.4.1 area as indicated in the plan (m2)

3.1.4.2 number of floors: (0-under construction)

3.1.4.3 construction materials and other relevant information

_______________________________________________

3.1.5 public building 1-operational 2-non-operational

3.1.5.1 area as indicated in the plan (m2) 3.1.5.2 number of floors: (0-under construction) 3.1.5.3 construction materials and other relevant information

_______________________________________________

3.1.5.4 full name and address of the owner

_______________________________________________

3.1.6 stable 1-operational 2-non-operational

3.1.6.1 area as indicated in the plan (m2) 3.1.6.2 construction materials and other relevant information

_______________________________________________

3.1.6.3 full name and address of the owner

_______________________________________________

3.1.7 place for poultry 1-operational 2-non-operational

3.1.7.1 area as indicated in the plan (m2) 3.1.7.2 construction materials and other relevant information

_______________________________________________

3.1.7.3 full name and address of the owner

_______________________________________________

_______________________________________________

3.1.8 other 1-operational 2-non-operational

3.1.8.1 area as indicated in the plan (m2) 3.1.8.2 construction materials and other relevant information

_______________________________________________

3.1.8.3 full name and address of the owner

_______________________________________________

3.1.8.4 purpose

_______________________________________________

3,2 If the building is used for commercial purpose please indicate the following:

3.2.1 number of employees

3.2.2 average salary of employees AZN

3.2.3 net profit per day AZN

3.2.4 price of building AZN

4 what type of public building are there?

4,1 architectural building

4,2 graveyard

4,3 spring

4,4 other (specify)

Name and signature of the representative of Regional Commission

____________________________________ / _____________/

Name and signature of municipality representative

____________________________________ / _____________/

Name and signature of the land owner ____________________________________ / _____________/

Annex 2: Socioeconomic Survey Form

Socioeconomic Survey Alat Astara Highway Corridor

Date: 2007

Month

Day

Interviewer:

Respondent background information

1. Respondent: The respondent shall be the head of a household or the second responsible person. If the respondent is not a head or second responsible person, please indicate his/her relation to the head of a household.

2. sex 1-male, 2-female 3. nationality 1-Azeri, 2- Talish , 3-Other 4. category In the table below please determine the category of respondents and land plots. Indicate the area (m2)

Respondent Category Land Plot Category

Road reserve private state owned/ municipal other

Land owner just land owner resident farmer entrepreneur other Land user resident farmer entrepreneur other

5. Please determine the type of use and the area (m2) of affected land plots

Type of use Land Plot Category

Road reserve private state owned/ municipal other

agricultural household industrial/commercial other 6. Please identify approximate location of the affected land plot along the motor road 6.1. KP 6.2. N/S

7. How long do you own or cultivate the land plot you are residing, farming or using for other activities? (indicate number of years)

8. Where did you live before coming to this place? ------------------------------------------------------------------------------ code 9. Why did you move to this place? ------------------------------------------------------------------------------

code 10. What is your main source of income? 10.1. primary 10.2 secondary 1- incomes from self-employment in agriculture 2- incomes from self-employment in non-agricultural field 3- salary from employment in agriculture 4- salary from employment in non-agricultural field 5- income from property (rent, saving accounts, etc.) 6- pension, state allowances and benefits 7- aid from relatives 8- other (specify) b. Social-economic data 1.1. How many members are in your household? Indicate household members ( #1-head of the household) and their data

# name relation sex age education employment 1 2 3 4 5

Relation (to the head of a household)

Sex education (the highest level reached) employment

1-spouse 1-male 1-uneducated 1-mainly self-employed 2-son/daughter 2-female 2-elementary 2-mainly employed 3-parent 3-incomplete secondary 3-unemployed 4-sister/brother 4-general or vocational secondary 4- not labour force 5-son in law/daughter in law

5-secondary special

6-other 6- incomplete higher 7-higher 8-other

1.2. Please indicate the field of employment for mainly employed household members # primary employment code secondary employment code average monthly income 1 AZN 2 AZN 3 AZN 4 AZN 5 AZN

1.3. Please specify the main construction material of your house 1- concrete block 2- concrete block and wood 3- improvise material (specify) 4- other materials (specify) 1.4. Please specify the status of your house and homestead: 1.4.1. house 1.4.2. home yard

1-owned, 2-rented, 3-other (specify)

1.5. If house and home yard are rented specify the rent amount 1.4.1. house (AZN/month) 1.4.2. home yard (AZN/month) 1.6. Indicate other structures/premises existing in the homestead 1-yes, 2-no 1.6.1. fence

1.6.2. animal pen 1.6.3. warehouse 1.6.4. commercial building 1.6.5. other (specify) 2. Incomes and expenditures 2.1. Has your family any other sources of income? 1-yes, 2-no 2.2. What are these sources and how much do you earn from these sources? 2.2.1. agricultural activities (AZN/month) 2.2.2. non-agricultural activities (AZN/month) 2.2.3. income from property (rent, saving accounts, etc.) (AZN/month) 2.2.4. pension, state allowances and benefits (AZN/month) 2.2.5. aid from relatives (AZN/month) 2.2.6. other (specify) (AZN/month) 2.3. Do you cultivate land plot within the alienation corridor of the motor road? 1-yes, 2-no

2.4. if "yes", what crops do you cultivate on the roadside plot (s)?

2.4.1. on a seasonal basis? (specify) code 2.4.2. What perennials grow on the roadside plot? (specify) code 2.5. How much do you earn from this roadside plot per year? AZN 2.6. do you have domestic animals? how many? 2.6.1. cattle heads 2.6.2. pig heads 2.6.3. sheep/goat heads 2.6.4. rabbit heads 2.6.5. poultry heads 2.6.7. bee beehive 2.6.8. other (specify) code 2.7. Do you use pastures? 1-yes, 2-no 2.8. If “yes” has you livestock to cross the road to reach the pasture? 1-yes, 2-no 2.9. Do you have any other major assets? 1-yes, 2-no 2.10 if “yes” indicate the type of assets code 2.11 Do you have the following in your household : 1-yes, 2-no 2.11.1. electricity supply 2.11.2. water supply 2.11.3. gas supply 2.11.4. indoor toilet 2.11.5. telephone or cell phone 2.11.6 refrigerator 2.11.7. washing machine 2.11.8. gas stove 2.11.9. TV set 2.11.10. radio set 2.11.11. motor car, motorcycle

2.11.12. agricultural machinery/equipment (specify) 2.11.13. other household appliances (specify) 2.12 How much do you spend for the following per month or year? per month AZN per year 2.12.1. food 2.12.2. house rent 2.12.3. water 2.12.4. electricity 2.12.5. gas and other fuel 2.12.6. transport 2.12.7. communication 2.12.8. education 2.12.9. health care 2.12.10. leisure 2.12.11. other expenses 2.13 Indicate specific sources of income which may be lost if you have to resettled 2.13.1. code 2.13.2. code 2.13.3. code 3. Basic services 3.1 Presence of electricity/water/gas connection 3.2 What are your HH’s sources of drinking and cooking water? 3.3 HH’s sanitation 3.1. How you handle garbage? 1-yes, 2-no 3.1.1. through waste collection services 3.1.2. burn 3.1.3. bury 3.1.4. dispose in official landfill 3.1.5. other (specify) 3.2. Please indicate whom do you address when your household member gets sick 1-yes, 2-no 3.2.1. hospital 3.2.2. private clinic 3.2.3. local ambulance 3.2.4. private doctor 3.1.5. other (specify)

3.3. How many of your children go the school: total including:

number distance to the school km)

3.3.1. secondary school 3.3.2. incomplete secondary school 3.3.3. elementary school 3.1.4. other (specify)

4. Public organizations and involvement 4.1. Is any public organization in your community? 1-yes, 2-no 4.2. if "yes", indicate the existence of these organization and your involvement in them 1-yes, 2-no existence involvement 4.2.1. Governmental organization 4.2.2. Cooperative society 4.2.3. NGO 4.2.4. other 4.3. If you are involved in a public organization pleas indicate your function within the organization 1-yes, 2-no 4.3.1. Official 4.3.2. member 4.3.3. other (specify) 5 Credit availability 5.1. Can you borrow money if required? 1-yes, 2-no 5.2. if "yes", whom will you address for credit first of all? 1-bank, 2-your organization, 3-relatives, 4-friends 5-other 5.3. Usually in what cases do you need credit? code 6 Perception of poverty 6.1. How do you characterize economical conditions of your household? 1- no regular sources of income 2- insufficient food intake 3- no heating capacity 4- no sufficient money for education of children 5- no sufficient money for clothes 6- other (specify) 7 Attitude toward the project 7.1. Have you heard about the proposed Project on Rehabilitation of the Alat Astara Road Project? 1-yes, 2-no 7.2. if "yes", please indicate the source of information: 1-yes, 2-no 7.2.1. Project representatives 7.2.2. local government 7.2.3. neighbours 7.2.4. newspapers, radio, TV 7.2.5. other (specify) if "no" provide the respondent with brief information about the project 7.3. How does you household use the motor road? code 7.4. How do you think, is the proposed construction of the ALAT ASTARA Project Section useful? 1-yes, 2-no, 3- do not know 7.5. You may be aware that the Project implementation may require the use of a part of the land which

is currently occupied, cultivated or otherwise used by you. If you are requested by the Government would you give up this part of your land?

1-yes, 2-no

7.6. What is your preferred option for compensation for the land? 1-yes, 2-no 7.6.1. monetary compensation 7.6.2. allocation of a new land plot 7.6.3 other (specify) 7.7. If in this case certain structures within you land plot are damaged, what is your preferred option for

compensation?

code 7.8. If in this case the trees, perennials and harvest are damaged, what is your preferred option for

compensation?

7.8.1. in case of trees code 7.8.2. in case of perennials code 7.8.3. in case of harvest code 7.9. If in this case your commercial activity is affected what is you preferred option for compensation? code 7.10 If your livelihood is seriously affected what type of assistant you deem appropriate? 7.10.1. primary code 7.10.2. secondary

RequiredDistrict/Village Name of Person No of

PlotsSize of affected

plot (ha)ROW required

(ha)Garadagh - - - -Salyan

Cukhanli Мящяррямов Сяфяр Эцлаьа 1 2.85 0.4243Мящяррямова Бибиханым Сяфяр 1 0.57 0.2831Мящяррямов Ъябрайыл Мящяррям 1 1.74 0.3054Мящяррямов Ъябрайыл Мящяррям 1 0.81 0.4504Сямядов Йусиф Мярдалы 1 1.05 0.0917Сямядов Ибращим Йусиф 1 1.14 0.0992Сямядов Акиф Мярдалы 1 4.1 0.3587Сямядова Сяриййя Абдуляли 1 3.42 0.3002Сямядов Хейрулла Шяриф 1 2.73 0.2411Сямядов Ейнулла Шяриф 1 2.21 0.2203Сямядов Ялиф Мядят 1 3.42 0.2785Микайылов Мязащим Йусиф 1 2.28 0.204Мещдийев Сярщяд Шафабат 1 2.85 0.2561Бабайев Ябцлфяз Апрел 2 1.7 0.3148Бабайева Шювкят Яждяр 1 1.71 0.1583Ъавадова Эцлязяр Ялиш 1 1.71 0.1579Щясянова Сяринэцл Талыб 1 1.14 0.1052Ибадова Анаш Зякулла 1 0.57 0.0527Зцлфцгарова Эцлтякин Яшряф 1 0.57 0.0527Ясядов Елнур Ялван 1 0.57 0.0667Ясядов Ялван Шабан 1 1.48 0.1362Бабайев Ъямил Албаба 1 1.7 0.1564Бабайев Албаба Ханбаба 1 1.15 0.1042Байрамов Рясул Надир 1 1.31 0.1197Бцнйатов Сяламят Сяхавят 1 0.12 0.12Мурадов Чинэизхан Абдуляли 1 0.04 0.04Шыхялийев Шащмар Няриман 1 0.12 0.12Шыхялийев Асяф Няриман 1 0.12 0.12Еминова Шяфаят Теййуб гызы 1 0.13 0.0177Бцнйятов Вугар Ядалят 1 0.13 0.13Адыэюзялов Ялясэяр Щясян 1 0.12 0.12Мирзяйев Рамил Теййуб 1 0.13 0.13Бцнйатов Оруъ Мящяррям 1 0.12 0.0048Бцнйатов Сяхавят Шащбаз 1 0.11 0.0128Ващидов Заур Адил 1 3 2.2386

Xalac Щянифяйева Тящминя Ейнал 1 0.51 0.12Етибаров Мещдигулу Абдулла 1 0.73 0.34Мяъидов Вякилаьа Ейнал 1 0.68 0.43Мяъидов Заманхан Усуфбала 1 0.39 0.11Аьайева Шяфигя Щаъыбала 1 0.17 0.01Мяммядов Асиф Эцлсафа 1 1.2 0.39Мяммядова Шяфяг Ялизадя 1 0.8 0.46Гарайев Йащйа Тофиг 1 0.54 0.13Кяримов Айдын Ъавид 1 1.3009 0.44Сяфяров Елшад Сярхош 1 1.83 0.366Эюзялов Гурбан Щясян 1 1.61 1.612Эюзялов Рауф Абдулязиз 1 1.2 0.11Эюзялов Сядйар Щясян 1 1.03 0.27Эюзялов Йадиэар Щясян 1 0.86 0.81Нязярова Дурнися Щясян 1 1.43 0.02

Annex 3. List of Private Landowners by Location and Size of Parcel Affected and ROW

Эюзялов Абдулязиз Дадашбала 1 1.48 0.96Сялимов Исран Имран 1 0.47 0.19Сялимова Шамама Бяйалы 1 1.08 0.32Сялимова Щяваня Имран 1 0.36 0.11Сялимов Имран Имангулу 1 0.38 0.1Сямядов Играр Бяйалы 1 1.45 0.26Ибращимов Мцшфиг Ютярхан 1 0.1216 0.01Ибращимов Гисмят Манаф 2 1.23 0.1Ибращимов Мцсейиб Манаф 1 1.39 0.301Нясиров Йудиф Байрам 1 1.11 0.18Нясиров Йусиф Йудиф 1 0.36 0.09Нящмядов Щцммят Нямяди 2 1.82 0.41Бахышов Адил Гулу 1 1.39 0.3Байрамова Азадя Балоьлан 2 1.64 0.36Бяширов Эцлсафа Ялифхан 1 0.84 0.17Рювшян Йавяр оьлу 1 1.25 0.25Зийадов Мисир Атахан 1 2.44 0.47Бяширов Шираьа Абдулхейир 1 0.4 0.095Щцсейнов Малик Ялиаьа 1 1.77 0.24Бахышов Мцрсял Гулу 1 2.1 0.16Бяйлярова Ъяващир Тапдыг 1 0.28 0.01Мяммядов Видади Бяйбала 2 2.15 0.48Аьащясянов Щилал Билал 1 1.86 0.26Гараханова Тават Гылвяли 1 3.21 0.73Сялимова Земфира Билал 1 1.39 0.41Абдуллайев Аьаверди Теймур 1 2.18 0.54Мяъидов Ялишащ Ейнал 1 0.44 0.05Гарайев Зющраб Тофиг 1 0.92 0.01Бяширов Шираьа Абдулхейир 1 0.58 0.0013

Yenikand Məhərrəmov Saleh Məhərrəm 2 2.03 0.3933Məhərrəmov Nəriman Məhərrəm 1 0.73 0.2956Məhərrəmov Əlverdi Məhərrəm 1 1.05 0.5621Cavadov Rövşən Sabir 1 1.41 0.393Cavadov İsmayıl Sabir 1 1.05 0.2599Cavadov Şahin Sabir 1 0.7 0.16Xankişiyeva Ayna Məmmədağa 1 0.7 0.1512İsmayılov Adbala Ağabala 1 0.13 0.0535Rəhimov Nazimhikmət Firudin 1 0.14 0.0502Şıxəliyev Davud Əmir 1 1.02 0.1888Şıxəliyeva Zümrüd Əfsus 1 1.04 0.1815Heydərov Həbib Möhsüm 1 0.67 0.1124Heydərov Adəm Həbib 1 1.76 0.2786Heydərov Faiq Həbib 1 1.05 0.1583Heydərov Aydın Həbib 2 1.71 0.2231Heydərov Vaqif Həbib 1 2.37 0.361Heydərov Rauf Həbib 1 1.43 0.2462Ağayev Nüsrət Rza 1 0.19 0.0494İsmayılov Allahverən Süleyman 1 1.76 0.8343Adıgözəlov Xanlar Hacıməmməd 1 0.93 0.0037Adıgözəlov Şahlar Hacıməmməd 1 2.11 1.1004Tağıyev Rasim Zəkulla 1 1.53 0.1207Tağıyev Teymur Rasim 1 0.77 0.7738Əliyev Allahverən Bəybala 1 1.82 0.2916Canatov Seyfəddin Vəzir 1 1.94 0.3959Canatov Şakir Ağaqulu 1 1.6 1.0395Babayev Vasif Vəli 1 1.83 0.2212

Babayev Vəli İslam 1 1.55 0.6371Xankişiyev Hacağa Əvəzağa 1 2.28 0.905Əliyev Asif Abdulla 1 2.24 1.222Əliyev Vasif Abdulla 1 2.28 1.1277Məmmədov İdris Baba 1 0.71 0.0934Məmmədov Mübariz İdris 1 1.83 1.2942Məmmədov Vidadi İdris 1 1.37 0.0564Şirinov Əlverdi Abas 1 2.28 0.1627Ağalarov Nuşirəvan Cahangir 1 0.77 0.0115Аьаларовова Сядайя Сащиб 1 1.94 0.2339Абышова Сачлы Ялсейран 1 0.77 0.0984Абышов Ağaverdi Ağaqulu 1 1.94 0.2267Нящмядов Огтай Ярястун 1 1.85 0.2257Нящмядов Ряшад Иманверди 1 0.28 0.0603Хяляфов Малик Ящмядалы 1 1.14 0.2933Хяляфов Осман Малик 1 1.08 0.7356Xələfov Arzu Malik 1 0.77 0.3076Dadaşov Afət Əzizağa 137 0.77 0.0357Салащов Əliyar Щейбят 1 0.35 0.0317Салащов Рафаел Щейбят 1 0.39 0.1273Нязиров Кяримаьа Бюйцкаьа 1 2.32 1.0072Бабашова Гялям Абдулла 1 0.39 0.1692Салащов Ъямил Мирзяхан 1 0.39 0.1895Салащова Сцдабя Щейбят 1 1.45 0.4371Ширийев Шярафяддин Гядир 1 1.29 0.0576Нящмядов Рящман Сабит 1 1.72 0.3244Salahov Ağayar Heybət 1 2.93 0.0136Нящмядов Елдар Сабит 1 1.33 0.4628Нящмядов Сабит Тявяккцр 1 0.55 0.1936Ящядов Орхан Бюйцккиши 1 0.39 0.1343Ящядов Елхан Бюйцккиши 1 1.16 0.4069Ящядова Эювщяр Ибращим 1 0.9 0.5496Ящядов Мащир Бюйцккиши 1 0.65 0.0042Ящядов Ислам Бюйцккиши 1 1.55 0.2702Ящядова Ханымана Ширалы 1 0.12 0.0137Ъяфяров Мющцббят Щясянаьа 1 3.1 0.052Щясянов Вятян Аббасяли 1 0.18 0.0214Абузяров Щясян Яли 1 2.93 1.107Щясянова Нязакят Мяммяд 1 1.8 0.7216Сяфяров Рювшян Мяммяд 1 1.16 0.2365Сяфяров Мяммяд Яли 1 1.65 0.0171

Annex 4. List of Owners of Affected Trees by Location and Assessed Value

Location Number of

Household Affected Category and Type of trees

Age Category in years TOTAL < 5 5-10 10-15 >15

Salyan Cukhanli 1 HH

Plum 10 10 Quince 5 8 13 Cherry-plum 3 3 Apple 3 3

Pomegranate 2 2

Subtotal 5 26 31 Salyan

Cukhanli 1 HH Quince 8 8 Medlar 3 3 Apricot 1 2 3 Apple 4 1 5 Cherry-pum 1 1 2 Cherry 2 1 3 Pomegranate 9 1 10 Fig 1 2 3 Peach 1 1 Blood orange 2 2 Albuxara 1 1 Pear 2 2 Blackthorn 1 1

Subtotal 25 19 44

Salyan Cukhanli 1 HH

Medlar 2 2 Apple 18 18 Fig 3 3 Plum 11 11 Cherry 4 4 Blood orange 1 1 Peach 6 6 Pomegranate 18 19 37 Pear 25 25 Mulberry 3 4 7 Cherry-plum 9 9 Hazel-nut 2 2 Quince 31 10 41 Apricot 4 4

Subtotal 49 117 4 170 Salyan Xalac 1HH

Peach 18 18 Subtotal 18 18

Salyan

Yenikand Municipality plot Willow 8 8 Pomegranate 152 152 Cherry 36 100 136 Peach 55 55 Apple 6 14 20

Plum 11 11 Subtotal 42 332 8 382

Grand Total 4 HH +Municipal 121 512 4 8 645

Annex 5. List of Owners of Type of Affected Structures by Location and Value Type of structure

Owner Dimension Materials Calculated Price

AZN

20% addition

Total AZN

House Karimova Mansura Panah

8.4x8=67.2 m2 Stone, cement finished, roof slate

4863 972.6 5835.6

Animal Stable

Bunyatov Saxavat Shahbaz

4x9.4=37.6 m2 Stone, roof slate

2512 502.4 3014.4

Incomplete structure

”La Vida” MMC Height=1.4m, Length=14m

Stone, cement 17120 3424 20544.0

1 2 3 4 5 6 7 8 9 10 11 12

1 Məhərrəmov Saleh Məhərrəm 677 1.35 0.0654 1800 360 117.72 23.54 141.26

2 Məhərrəmov Saleh Məhərrəm 677A 0.68 0.3279 1800 360 590.22 118.04 708.26

3 Məhərrəmov Nəriman Məhərrəm 679 0.73 0.2956 1800 360 532.08 106.42 638.50

4 Məhərrəmov Əlverdi Məhərrəm 678 1.05 0.5621 1800 360 1011.78 202.36 1214.14

5 Cavadov Rövşən Sabir 505 1.41 0.393 1800 360 707.40 141.48 848.88

6 Cavadov İsmayıl Sabir 506 1.05 0.2599 1800 360 467.82 93.56 561.38

7 Cavadov Şahin Sabir 507 0.7 0.16 1800 360 288.00 57.60 345.60

8 Xankişiyeva Ayna Məmmədağa 508 0.7 0.1512 1800 360 272.16 54.43 326.59

9 İsmayılov Adbala Ağabala 509 0.13 0.0275 0.026 1800 360 96.30 19.26 115.56

10 Rəhimov Nazimhikmət Firudin 521A 0.14 0.0262 0.024 1800 360 90.36 18.07 108.43

11 Şıxəliyev Davud Əmir 522 1.02 0.1888 1800 360 339.84 67.97 407.81

12 Şıxəliyeva Zümrüd Əfsus 523 1.04 0.1815 1800 360 326.70 65.34 392.04

13 Heydərov Həbib Möhsüm 524 0.67 0.1124 1800 360 202.32 40.46 242.78

14 Heydərov Adəm Həbib 525 1.76 0.2786 1800 360 501.48 100.30 601.78

No Name, Surname of the PAP

No of Land

Parcel Total Area (ha)

Affected area by

the Road (ha)

Seperated small

portion (ha)

Total Compensation

(AZN)10+11

Market price for 1 ha(AZN) 20% bonus

Compensation for

the affected

Land(AZN)

(5+6)x8

Bonus Compens

ation(AZN)

(5+6)x9

Annex 6: List of the PAP Salyan District Yenikand villageList of the Affected People

S M E T A S I

Normatve price(AZN)

15 Heydərov Faiq Həbib 526 1.05 0.1583 1800 360 284.94 56.99 341.93

16 Heydərov Aydın Həbib 527 0.38 0.0219 0.023 1800 360 80.82 16.16 96.98

17 Heydərov Aydın Həbib 527A 1.33 0.1781 1800 360 320.58 64.12 384.70

18 Heydərov Vaqif Həbib 528 2.37 0.361 1800 360 649.80 129.96 779.76

19 Heydərov Rauf Həbib 529 1.43 0.2462 1800 360 443.16 88.63 531.79

20 Ağayev Nüsrət Rza 530 0.19 0.0354 0.014 1800 360 88.92 17.78 106.70

21 İsmayılov Allahverən Süleyman 534 1.76 0.8343 1800 360 1501.74 300.35 1802.09

22 Adıgözəlov Xanlar Hacıməmməd 537A 0.93 0.0037 1800 360 6.66 1.33 7.99

23 Adıgözəlov Şahlar Hacıməmməd 538 2.11 1.1004 1800 360 1980.72 396.14 2376.86

24 Tağıyev Rasim Zəkulla 556 1.53 0.1207 1800 360 217.26 43.45 260.71

25 Tağıyev Teymur Rasim 557 0.77 0.7738 1800 360 1392.84 278.57 1671.41

26 Əliyev Allahverən Bəybala 558 1.82 0.2916 1800 360 524.88 104.98 629.86

27 Canatov Seyfəddin Vəzir 562 1.94 0.3959 1800 360 712.62 142.52 855.14

28 Canatov Şakir Ağaqulu 561 1.6 1.0395 1800 360 1871.10 374.22 2245.32

29 Babayev Vasif Vəli 573 1.83 0.2212 1800 360 398.16 79.63 477.79

30 Babayev Vəli İslam 572 1.55 0.6371 1800 360 1146.78 229.36 1376.14

31 Xankişiyev Hacağa Əvəzağa 406 2.28 0.905 1800 360 1629.00 325.80 1954.80

32 Əliyev Asif Abdulla 394 2.24 1.222 1800 360 2199.60 439.92 2639.52

33 Əliyev Vasif Abdulla 391 2.28 1.1277 1800 360 2029.86 405.97 2435.83

34 Məmmədov İdris Baba 360 0.71 0.0934 1800 360 168.12 33.62 201.74

35 Məmmədov Mübariz İdris 359 1.83 1.2942 1800 360 2329.56 465.91 2795.47

36 Məmmədov Vidadi İdris 358 1.37 0.0564 1800 360 101.52 20.30 121.82

37 Şirinov Əlverdi Abas 119 2.28 0.1627 1800 360 292.86 58.57 351.43

38 Ağalarov Nuşirəvan Cahangir 348 0.77 0.0115 1800 360 20.70 4.14 24.84

39 Аьаларовова Сядайя Сащиб 349 1.94 0.2339 1800 360 421.02 84.20 505.22

40 Абышова Сачлы Ялсейран 350 0.77 0.0984 1800 360 177.12 35.42 212.54

41 Абышов Ağaverdi Ağaqulu 351 1.94 0.2267 1800 360 408.06 81.61 489.67

42 Нящмядов Огтай Ярястун 352 1.85 0.2257 1800 360 406.26 81.25 487.51

43 Нящмядов Ряшад Иманверди 353 0.28 0.0303 0.03 1800 360 108.54 21.71 130.25

44 Хяляфов Малик Ящмядалы 134 1.14 0.2933 1800 360 527.94 105.59 633.53

45 Хяляфов Осман Малик 135 1.08 0.7356 1800 360 1324.08 264.82 1588.90

46 Xələfov Arzu Malik 136 0.77 0.3076 1800 360 553.68 110.74 664.42

47 Dadaşov Afət Əzizağa 137 0.77 0.0357 1800 360 64.26 12.85 77.11

48 Салащов Əliyar Щейбят 44A 0.35 0.0317 1800 360 57.06 11.41 68.47

49 Салащов Рафаел Щейбят 45 0.39 0.1273 1800 360 229.14 45.83 274.97

50 Нязиров Кяримаьа Бюйцкаьа 46 2.32 1.0072 1800 360 1812.96 362.59 2175.55

51 Бабашова Гялям Абдулла 47 0.39 0.1692 1800 360 304.56 60.91 365.47

52 Салащов Ъямил Мирзяхан 48 0.39 0.1685 0.021 1800 360 341.10 68.22 409.32

53 Салащова Сцдабя Щейбят 49 1.45 0.4371 1800 360 786.78 157.36 944.14

54 Ширийев Шярафяддин Гядир 50 1.29 0.0576 1800 360 103.68 20.74 124.42

55 Нящмядов Рящман Сабит 39 1.72 0.3244 1800 360 583.92 116.78 700.70

56 Salahov Ağayar Heybət 40 2.93 0.0136 1800 360 24.48 4.90 29.38

57 Нящмядов Елдар Сабит 37 1.33 0.4628 1800 360 833.04 166.61 999.65

58 Нящмядов Сабит Тявяккцр 38 0.55 0.1936 1800 360 348.48 69.70 418.18

59 Ящядов Орхан Бюйцккиши 36 0.39 0.1343 1800 360 241.74 48.35 290.09

60 Ящядов Елхан Бюйцккиши 35 1.16 0.4069 1800 360 732.42 146.48 878.90

61 Ящядов Мащир Бюйцккиши 34A 0.9 0.5496 1800 360 989.28 197.86 1187.14

62 Ящядов Мащир Бюйцккиши 34 0.65 0.0042 1800 360 7.56 1.51 9.07

63 Ящядов Ислам Бюйцккиши 33 1.55 0.2702 1800 360 486.36 97.27 583.63

64 Ящядова Ханымана Ширалы 32 0.12 0.0137 1800 360 24.66 4.93 29.59

65 Ъяфяров Мющцббят Щясянаьа 31 3.1 0.052 1800 360 93.60 18.72 112.32

66 Щясянов Вятян Аббасяли 5 0.18 0.0214 1800 360 38.52 7.70 46.22

67 Абузяров Щясян Яли 4 2.93 1.107 1800 360 1992.60 398.52 2391.12

68 Щясянова Нязакят Мяммяд 3 1.8 0.7216 1800 360 1298.88 259.78 1558.66

69 Сяфяров Рювшян Мяммяд 2 1.16 0.2365 1800 360 425.70 85.14 510.84

70 Сяфяров Мяммяд Яли 1 1.65 0.0171 1800 360 30.78 6.16 36.94

Total for Private: 23.0368 0.138 50057.57

Municipal reserve area 0.54 1250 250 675 135 810

road 4.79 209.44 1003.22

Municipal trees 341 əd. 4066 813.2 4879.20

Total for Municipality : 5.33 6692.42

canal 4.04

Forest 2.74 5116.06

road 0.94

Total for State : 7.72 5116.06

Total: 36.2248 61866.05

1 2 3 4 5 6 7 8 9 10 11 12

1 Щянифяйева Тящминя Ейнал 352Х 0.51 0.12 1800 360 216 43.2 259.2

2 Етибаров Мещдигулу Абдулла 361Х 0.73 0.34 1800 360 612 122.4 734.4

3 Мяъидов Вякилаьа Ейнал 362 0.68 0.36 0.007 1800 360 660.6 132.12 792.72

4 Мяъидов Заманхан Усуфбала 363 0.39 0.11 1800 360 198 39.6 237.6

5 Аьайева Шяфигя Щаъыбала 369 0.17 0.01 1800 360 18 3.6 21.6

6 Мяммядов Асиф Эцлсафа 368 1.2 0.39 1800 360 702 140.4 842.4

7 Мяммядова Шяфяг Ялизадя 367Х 0.8 0.46 1800 360 828 165.6 993.6

8 Гарайев Йащйа Тофиг 373Х 0.54 0.13 1800 360 234 46.8 280.8

9 Кяримов Айдын Ъавид 637А 1.3009 0.44 1800 360 792 158.4 950.4

10 Сяфяров Елшад Сярхош 639 1.83 0.33 0.036 1800 360 658.8 131.76 790.56

11 Эюзялов Гурбан Щясян 638 1.61 1.59 0.022 1800 360 2901.6 580.32 3481.92

12 Эюзялов Рауф Абдулязиз 651 1.2 0.11 1800 360 198 39.6 237.6

13 Эюзялов Сядйар Щясян 653 1.03 0.27 1800 360 486 97.2 583.2

Total Compensation

(AZN)10+11

Market price for 1 ha(AZN) 20% bonus

Compensation for

the affected

Land(AZN)

(5+6)x8

Bonus Compensa

tion(AZN)

(5+6)x9

Salyan District Xalac villageList of the Affected People

S M E T A S I

No Name, Surname of the PAP

No of Land

Parcel Total Area (ha)

Affected area by

the Road (ha)

Seperated small

portion (ha)

Normatve price(AZN)

14 Эюзялов Йадиэар Щясян 652 0.86 0.81 1800 360 1458 291.6 1749.6

15 Нязярова Дурнися Щясян 655 1.43 0.02 1800 360 36 7.2 43.2

16 Эюзялов Абдулязиз Дадашбала 654 1.48 0.96 1800 360 1728 345.6 2073.6

17 Сялимов Исран Имран 617 0.47 0.19 1800 360 342 68.4 410.4

18 Сялимова Шамама Бяйалы 616 1.08 0.32 1800 360 576 115.2 691.2

19 Сялимова Щяваня Имран 615 0.36 0.11 1800 360 198 39.6 237.6

20 Сялимов Имран Имангулу 614 0.38 0.1 1800 360 180 36 216

21 Сямядов Играр Бяйалы 613 1.45 0.26 1800 360 468 93.6 561.6

22 Ибращимов Мцшфиг Ютярхан 612А 0.1216 0.01 1800 360 18 3.6 21.6

23 Ибращимов Гисмят Манаф 720 1.15 0.08 1800 360 144 28.8 172.8

24 Ибращимов Гисмят Манаф 720А 0.08 0.02 1800 360 36 7.2 43.2

25 Ибращимов Мцсейиб Манаф 721 1.39 0.29 0.011 1800 360 541.8 108.36 650.16

26 Няzиров Йудиф Байрам 722 1.11 0.18 1800 360 324 64.8 388.8

27 Няzиров Йусиф Йудиф 723 0.36 0.09 1800 360 162 32.4 194.4

28 Нящмядов Щцммят Нямяди 724 0.09 0.03 1800 360 54 10.8 64.8

29 Нящмядов Щцммят Нямяди 724А 1.73 0.38 1800 360 684 136.8 820.8

30 Бахышов Адил Гулу 725 1.39 0.3 1800 360 540 108 648

31 Байрамова Азадя Балоьлан 726 1.24 0.28 1800 360 504 100.8 604.8

32 Байрамова Азадя Балоьлан 726А 0.4 0.08 1800 360 144 28.8 172.8

33 Бяширов Эцлсафа Ялифхан 728 0.84 0.17 1800 360 306 61.2 367.2

34 Рювшян Йавяр оьлу 729 1.25 0.25 1800 360 450 90 540

35 Зийадов Мисир Атахан 730 2.44 0.47 1800 360 846 169.2 1015.2

36 Бяширов Шираьа Абдулхейир 731 0.4 0.07 0.025 1800 360 171 34.2 205.2

37 Щцсейнов Малик Ялиаьа 732 1.77 0.24 1800 360 432 86.4 518.4

38 Бахышов Мцрсял Гулу 733 2.1 0.16 1800 360 288 57.6 345.6

39 Бяйлярова Ъяващир Тапдыг 734 0.28 0.01 1800 360 18 3.6 21.6

40 Мяммядов Видади Бяйбала 735 0.62 0.01 1800 360 18 3.6 21.6

41 Мяммядов Видади Бяйбала 735А 1.53 0.47 1800 360 846 169.2 1015.2

42 Аьащясянов Щилал Билал 894 1.86 0.26 1800 360 468 93.6 561.6

43 Гараханова Тават Гылвяли 810Г 3.21 0.73 1800 360 1314 262.8 1576.8

44 Сялимова Земфира Билал 897А 1.39 0.41 1800 360 738 147.6 885.6

45 Абдуллайев Аьаверди Теймур 898 2.18 0.54 1800 360 972 194.4 1166.4

46 Мяъидов Ялишащ Ейнал 364 0.44 0.05 1800 360 90 18 108

47 Гарайев Зющраб Тофиг 374 0.92 0.01 1800 360 18 3.6 21.6

48 Бяширов Шираьа Абдулхейир 731а 0.58 0.0013 1800 360 2.34 0.468 2.808

49 Мещдийев Мятляб Мещди оьлу№0005

993 7.5 1.38 1800 360 2484 496.8 2980.8

50 Bəşirov Şirağa Abdulxeyir ağaclar 18 ədəd 19.2 3.84 345.6 69.12 414.72

Total for Private: 14.401 0.101 31739.69

Sarıyev Eldar (leased) 1 1250 250 1250 250 1500

Pasture 3.19 474.64 1514.10

Road 2.97

Agricultural 0.36 1250 250 450 90 540

Unusable 2.77 209.44 580.15

Municipality Trees 41 ədəd 19.2 3.84 787.2 157.44 944.64

Total for Municipality : 10.29 5078.89

Road 3.43

Canal 8.87

Total for State : 12.3

Total: 37.0923 36818.58

1 2 3 4 5 6 7 8 9 10 11 12

1 Мящяррямов Сяфяр Эцлаьа 711 2.85 0.4186 0.0057 1800 360 763.74 152.75 916.49

2 Мящяррямова Бибиханым Сяфяр 710 0.57 0.2831 1800 360 509.58 101.92 611.50

3 Мящяррямов Ъябрайыл Мящяррям 709 1.74 0.3054 1800 360 549.72 109.94 659.66

4 Мящяррямов Ъябрайыл Мящяррям 709А 0.81 0.4504 1800 360 810.72 162.14 972.86

5 Сямядов Йусиф Мярдалы 734А 1.05 0.0917 1800 360 165.06 33.01 198.07

6 Сямядов Ибращим Йусиф 735 1.14 0.0992 1800 360 178.56 35.71 214.27

7 Сямядов Акиф Мярдалы 736 4.1 0.3587 1800 360 645.66 129.13 774.79

8 Сямядова Сяриййя Абдуляли 737 3.42 0.3002 1800 360 540.36 108.07 648.43

9 Сямядов Хейрулла Шяриф 738 2.73 0.2411 1800 360 433.98 86.80 520.78

10 Сямядов Ейнулла Шяриф 739 2.21 0.2203 1800 360 396.54 79.31 475.85

11 Сямядов Ялиф Мядят 740 3.42 0.2785 1800 360 501.30 100.26 601.56

12 Микайылов Мязащим Йусиф 741 2.28 0.204 1800 360 367.20 73.44 440.64

13 Мещдийев Сярщяд Шафабат 742 2.85 0.2561 1800 360 460.98 92.20 553.18

Salyan District Cukhanli villageList of the Affected Persons

Normatve price(AZN)

Market price for 1 ha(AZN) 20% bonus

Compensation for the affected

Land(AZN)

(5+6)x8

Bonus Compens

ation(AZN)

(5+6)x9

Total Compensation

(AZN)10+11No Name, Surname of the PAP

No of Land

Parcel Total Area (ha)

Affected area by the Road (ha)

Seperated small

portion (ha)

14 Бабайев Ябцлфяз Апрел 744 0.64 0.2674 1800 360 481.32 96.26 577.58

15 Бабайев Ябцлфяз Апрел 744А 1.06 0.0474 1800 360 85.32 17.06 102.38

16 Бабайева Шювкят Яждяр 745 1.71 0.1583 1800 360 284.94 56.99 341.93

17 Ъавадова Эцлязяр Ялиш 746 1.71 0.1579 1800 360 284.22 56.84 341.06

18 Щясянова Сяринэцл Талыб 747 1.14 0.1052 1800 360 189.36 37.87 227.23

19 Ибадова Анаш Зякулла 748 0.57 0.0527 1800 360 94.86 18.97 113.83

20 Зцлфцгарова Эцлтякин Яшряф 749 0.57 0.0527 1800 360 94.86 18.97 113.83

21 Ясядов Елнур Ялван 750 0.57 0.0667 1800 360 120.06 24.01 144.07

22 Ясядов Ялван Шабан 752 1.48 0.1362 1800 360 245.16 49.03 294.19

23 Бабайев Ъямил Албаба 753 1.7 0.1564 1800 360 281.52 56.30 337.82

24 Бабайев Албаба Ханбаба 754 1.15 0.1042 1800 360 187.56 37.51 225.07

25 Байрамов Рясул Надир 728a 1.31 0.1197 1800 360 215.46 43.09 258.55

26 Бцнйатов Сяламят Сяхавят 454А 0.12 0.0886 0.031 resident 5000 1000 600 120 720

27 Мурадов Чинэизхан Абдуляли 189б 0.04 0.0163 0.024 resident 5000 1000 200 40 240

28 Шыхялийев Шащмар Няриман 363А 0.12 0.12 resident 5000 1000 600 120 720

29 Шыхялийев Асяф Няриман 362А 0.12 0.12 resident 5000 1000 600 120 720

30 Еминова Шяфаят Теййуб гызы 191А 0.13 0.0177 resident 5000 1000 89 18 106

31 Бцнйятов Вугар Ядалят 413А 0.13 0.13 resident 5000 1000 650 130 780

32 Адыэюзялов Ялясэяр Щясян 412А 0.12 0.12 resident 5000 1000 600 120 720

33 Мирзяйев Рамил Теййуб 411А 0.13 0.0935 0.037 resident 5000 1000 650 130 780

34 Бцнйатов Оруъ Мящяррям 378a 0.12 0.0048 resident 5000 1000 24 4.80 28.80

35 Бцнйатов Сяхавят Шащбаз 460Ф 0.11 0.0128 resident 5000 1000 64 12.80 76.80

36 Ващидов Заур Адил жн-0855 3 2.2386 1800 360 4029.48 805.90 4835.38

37 Şirəliyev Asəf Nəriman 362F ağaclar 31 əd. 330 66 396

38 Bünyatov Səxavət Şahbaz 460F ağaclar 44 əd. 340 68 408

39 Bünyatov Səxavət Şahbaz tövlə 600 120 720

40 Vahidov Zaur Adil ağaclar 170 əd. 1860 372 2232

41 Vahidov Zaur Adilhasar

(tor setka) 200 m. 1340 268 1608

42 "La Vida" MMCyarımçıq

tikili 20544.00

Total for Private: 7.8944 0.0973 46300.82

Road 0.6686 209.44 140.03

Unusable 0.7713 209.44 161.54

Perspective Dev-t area 0.9533 1250 250 1191.63 238.33 1429.95

Reserve area 1.3744 1250 250 1718.00 343.60 2061.60

Pasture 1.3562 476.64 646.42

Ditch 0.0769 209.44 16.11

Agricultural 0.8722 1250 250 1090.25 218.05 1308.3

Total for Municipality : 6.0729 5763.95

canal 2.4897

forest 0.3411

Total for State : 2.8308

Total : 16.8954 52064.77

However, some social, environmental and resettlement impacts maybe inevitable and will be experienced by persons and communities as a result of land acquisition for road right of way (ROW) , construction as well as operation of the highway

For further information Contact: PIU/LAD, ARS OJSC, MoT

Local Executive Power:

Potential Environmental Impacts The socioeconomic well-being of the community as well as the general environmental and ecological condition and bal-ance of the area traversed by the highway maybe adversely affected. Water resources, existing forest and wildlife, cul-tural heritage, etc., maybe affected; noise, air/water pollu-tion, and health and safety-related hazards may increase during construction and operation of the highway.

Basic Facts About

Alat to South of Masalli Motorway Project

Potential Land Acquisition/Resettlement Impacts Acquisition of settled and cultivated private lands in some villages crossed by the itinerary is inevitable as shown in Table 1; likewise, there maybe houses and other structures, as well as crops and trees affected.

Mitigating Measures for Adverse Impacts

Environmental Management Plan A comprehensive Environmental Impact Assessment (EIA) had been undertaken to ensure thorough assessments and formulation of appropriate mitigating measures and the insti-tution of Environmental Management Plans (EMP) for the various Sections of the proposed Motorway. Resettlement Action Plan (RAP) Land acquisition and resettlement impact assessments were undertaken. A participatory resettlement action planning are undertaken for the three major sections of the Motorway. To ensure that the RAP will safeguard the standard of living of Project-affected Persons and Families, consultation and full disclosure to whole process is ensured.

Consultation and Participation

The implementation of the Project will substantially change the lives of persons and communities affected by it. For the most part, the Project will benefit the general population and the areas traversed by the Motorway; but for some, this may result in environmental and socioeconomic ill-effects. Accordingly, awareness of and participation in project plan-ning and implementation is critical to ensuring avoidance and minimization of negative and adverse impacts as well as the optimization of benefits. Information dissemination, disclosure and public consultation are important instru-ments to public awareness and community participation. The Project will ensure that community participation re-mains an important strategy to optimizing benefits and minimizing and/or avoiding negative impacts. For the RAP at least two formal consultations will be car-ried out: one immediately after the finalization of the align-ment to explain anticipated impacts; second, after the draft RAP is developed to consult and disclose mitigating meas-ures on land acquisition and resettlement.

Table 1: Areas and location affected in concerned villages

Schedule of Activities The Motorway Project started in 2006 with the selection of the best alignment from Alat to Astara. The design for the sections up to Masalli is almost complete. A 22-km stretch near Alat is under construction and on other portions, construction could start in 2008 on a section basis as soon as land expropriation and resettlement are completed.

The design of the itinerary had been elaborated with due atten-tion to environmental and socioeconomic considerations with the mitigating measures duly incorporated. Ensuring connectivity of the areas traversed by the Motorway was given special focus.

Figure 1: Implementation Schedule

Background

As a fast connection to the southern border of the country from Baku, the Government of Azerbaijan plans to construct a new 4-lane motorway from Alat to Astara, complete with interchanges at main roads and connection to all major cen-ters in the area. The actualization of the plan for the northern section (142.9 km from Alat to south of Masalli) is supported by the World Bank with the 22 km stretch already under con-struction and the design for the 120.9 km nearly complete.

Description

The final alignment of the new motorway had been fixed after comparison of different variants. The Preferred Alternative avoids crossing Yenikand village, traverses the Kur River north of Salyan and keeps a western alignment to avoid cut-ting across intensively cultivated areas , then runs parallel to the existing railway. From Masalli Station, it again veers away from settlement areas until it comes into the M3 south of Masalli where the southern portion (under ADB financing) starts.

Table 1 shows the sectional division of the Preferred Align-ment of the motorway and the corresponding land areas of the different villages crossed.

The Project Project Benefits

As part of the Highway 2 Project, the construction of the Alat to south of Masalli highway will reduce transport costs and improve access, transit and safety within the north-south corridor. For road users, it will lead to better road quality, better safety through new alignments and bypasses of cities, avoiding haz-ardous crossing of villages by heavy transit traffic, lower travel costs and shorter travel time.

Potential Adverse Impacts

Efforts had been undertaken to minimize occurrence of ad-verse impacts as a result of the highway construction through the following: (i) Conduct of technical, environmental and socioeconomic studies to examine various alignment options and selection of one with least impacts; (ii) Development of road-cross section design with features to mitigate and enhance access to agricultural lands; (iii) Proposed construction of underpasses to ensure connec-tivity of community on both sides of the highway; (iv) selection of interchange design with minimum ROW re-quirements and ensuring connectivity to existing local roads; (v) Proposed additional design studies to reduce impacts by fine-tuning alignments in places of impacts; (vi) Use of cadastral maps and overlay of alignment to deter-mine minimum impacts on structures and property in settle-ment areas, and; (vii) Proposed construction of bypasses to avoid impacts on congested areas.

Se-lectio

2006, 2007, 2008, 2006,

Preliminary Design

Detailed Design

2011

Construction

EIA/Social Assessment RAP Preparation

RAP Implementation

Which methodology is involved for a valuation of assets?

In order to determine prices of the affected assets based on the above mentioned criteria, the specialists of the Ministry of Finance in assistance with District Identification and Valuation Commission used the following methodolgy:

Obtained a copy of the result of the survey conducted by the State Real Estate Registration Service (SRERS) about the latest market prices of different categories of land in different dis-tricts;

Requested information from notary about the latest mar-ket prices of property transactions;

Conducted anonymous inquiries among the population of the affected villages (towns) about the prices which is used in local property trans-action agreements.

After reviewing all data, the Identification and Valuation Commis-sion of each district signed a statement confirming the new market prices for a 1 ha residential and 1-ha of agricultural lands. Description of unit prices Unit price calculation for an affected asset includes the followings:

Market price of the asset – the upper limit of the prices got on the basis of above mentioned methodology. (e.g: if the price of 1 ha land is detremined as 1400 AZN by the notary, 1200 AZN by SRERS and 1600 AZN by anonymous inquiries, so the upper limit of market prices is 1600 AZN).

20% additional compensation – all PAPs are entitled to 20 % additional compensation according to the decree of the President dated 26 December 2007. (e.g: if calculated market price of an affected house is 25000 AZN, so 20% additional compensation is added on the

Contact:: Land Acquisition Division/

Azerroadservice OJSC

Brochure on Asset Valuation Procedure

PURPOSE OF THE BROCHURE As a fast connection to the southern border of the country from Baku, the Government of Azerbaijan plans to construct a new 4-lane motor-way (142.9 km) from Alat to Astara, complete with interchanges at main roads and connection to all major centers in the area. 22 km stretch of this road already constructed and the design for the 120.9 km completed. This brochure aims to describe how this road impacts on welfare of people in project areas. The brochure consists of expla-nation of compensation measures, valuation methodology and de-scription of the prices which is used to value affected assets.

Market prices of lands for various districts The market price of different categories of land in the various districts which was decided by the District Valuation and Identification Commission are as follows:

No 

District  Date of the statement of commis-

sion 

Market price of

1 ha agricultural land (AZN) 

20% additional on 1 ha

agricultural land (AZN) 

Market price of

1 ha residential area (AZN) 

20% addition

al on 1 ha

residential land (AZN) 

1  Salyan  16.06.2009  1800  360  5000  1000 

2  Neftchala  12.06.2009  1800  360  N/A  N/A 

3  Jalilabad  16.06.2009  1800  360  5000  1000 

4  Masallı  16.06.2009  2500  500  7000  1400 

Compensation is given to the owner, user or leaseholder of af-fected assets in the following circumstances and conditions:

WHAT ARE THE COMPENSATION MEASURES?

Type of Loss

Definition of Entitled Person

Compensation Policy

Loss of agricultural land

Owner(s), user(s) and/or leaseholder(s) of plot as per land record at census (cut-off) date

a) compensation in cash based on market price b) additional rehabilitation measures such as employ-ment and training opportuni-ties on livelihood and income generation for severely af-fected persons (those who will lose more than 20% of land)

Loss of residential and com-mercial land

Owner(s), user(s) and/or leaseholder(s) of plot as per land record at census (cut-off) date

a) compensation in cash based on market price b)additional rehabilitation measures such as employ-ment and training opportuni-ties for severely affected PAPs (who will lose more than 20% of land)

Loss of structure

Owner(s), (user(s), leaseholder(s)) of structure

a) Compensation in cash based on market price (market price should be equal to replacement cost which is enough to build same struc-ture of the same quality). b) additional rehabilitation measures for severely af-fected PAPs

Loss of income

Persons living in the affected areas and engaged in wage labor in agri/non agriculture sectors and whose means of livelihood is negatively affected

a) cash compensation for lost income b) compensation for losses related to termination of liabili-ties against others

Loss of trees/ perennials

Persons whose trees are logged down

Compensation in cash based on type, age and diameter of trees

Loss of annual crops

Farmers whose land are acquired before annual crops planted on the land can be harvested

Compensation in cash based on market price.

HOW IS THE VALUATION OF ASSETS CARRIED OUT?

The following criteria are used for the valuation of affected assets:

The market price of the property within the concerned adminis-trative area (e.g: According to surveys sell price of 1 ha agricultural land was 1200-1400 AZN in last three months in the affected villages of Jalilabad district);

When real estate sale transaction record in the area is not avail-able the replacement value of the affected asset (e.g: re-placement cost of affected house is determined by calcula-tion of market prices of construction materials needed to rebuild same size and shape structure in the new area);

When it is not possible to determine real and fair price of land, the price should not be less than the normative price (e.g: normative price of 1 ha second category agricultural land in Salyan is 1417 AZN and first category (residential) land is 1514 AZN);

In case of use of several methods to estimate prices, a method determining an upper limit of price is applied.

Costs connected with decision of the owner refusing from selling of the area (advocate services, evaluation costs and etc.) and costs related to a newly constructed building on concerned parcel of land after census (cut-off date) will not be paid to PAPs.

What are the steps of the process of the valuation and documentation of the affected assets? Valuation and documentation of the assets is carried out by the following succession:

No Steps Responsible Agency 1 Census of affected assets (land,

structures, trees and etc.) Land Acquisition Division, Azerroadservice JSC, Ministry of Transport

2 Updating and checking of the census data and conducting survey in order to determine market prices of assets

District Identification and Valuation Commission and Ministry of Finance

3 Reviewing and checking of the validity of the maps and lists of the PAPs

State Committee on Prop-erty Issues

4 Reviewing and approval of the prepared documents

State Committee on Prop-erty Issues in assistance with Ministry of Finance and Ministry of Economic Development

5 Form №1 certificate confirming property rights and situation of the affected assets and prepara-tion of the transaction documents

State Real Estate Regis-ter Service/State Commit-tee on Property Issues and LAD/Azerroadservice JSC

6 Submission of the prepared docu-ments to the Cabinet of Ministers for approval

State Committee on Prop-erty Issues

7 Issuing a decree for the purpose of acquiring affected propertied for state needs

Cabinet of Ministers

8 Allocation of the budget according to the appropriate decree of the Cabinet of Ministers and opening of bank account for PAPs

Ministry of Finance

9 Carrying out the monitoring after the compensation payment

LAD/Azerroadservice JSC

Annex 8a. Summary of Public Consultations Date District

Visited Persons/Groups Met Expressed Appreciation Concerns Issues Raised Comments/Remarks

24 July 2007 Salyan 30 participants 1. Who supervises the Mitigation Measures indicated in presented EA document. He indicated that up to date only the companies working with oil contracts (Salyan oil, Shirvan oil) held some works on protection of environment at Shirvan National Park. The local people were very anxious about the construction caused adverse impact on environment. 2. What about compensation for lands acquired from municipality 3. What will be rate of compensation for private lands?

1. The project was financed by WB and that is why the EA document was of great importance. He added that the monitoring were being held. Mitigation Measures for all components of the Environment were indicated in the presented document under the title of Mitigation Measures and Environmental Management Plan. ARS JSC will supervise that construction company should follow them. In case of any violation the authorized representatives and local people can address to ARS JSC and WB. 2. Told that if the district has land reserve in fund, the acquired lands would be compensated with land areas from fund, in case of lack of land reserve land owners would be paid corresponding to market price. 3. The cost of the land areas will be exacted according to categories. The market price will be analyzed and at last Executive Power will give Order according to this information.

27 September 2008

Salyan/ Xalac village

55 participants In general expressed agreement with the plan to build the highway

1. When will the construction works begin? How will the PAPs be compensated?

2. What will be the rate for municipal land

6. Approximately, the construction will be in the first part of the next year. The ARS OJSC will open an escrow account to deposit the compensation payment. All payments of cash

compensation? What type of municipal lands will be compensated?

3. Will there be any overpasses in our village? How will we cross the road to the other side in Cukhanli area?

4. Land parcel divided by the alignment – what can be done to address this concern?

5. Can the PAPs cultivate their lands in this season?

compensation shall be undertaken through the banking system.

7. All types of affected lands will be compensated. Compensation for municipal lands are calculated based on normative value.

8. There will be underpasses in Cukhanli village for pedestrians, livestock and cars. (Mr.Arastun showed the locations of underpasses on the cadastral map.

9. We had proposed with the SLCC and the LAD that land parcels in similar situation on one side of the alignment be integrated and titled to one individual and the parcels at the other side be done the same way. SLCC and LAD will consider this problem

. 10. They can cultivate this season

only for annual crops. 28 September 2008

Salyan/ Cukhanli

25 participants 1. Will there be overpass or underpass in the middle of Cukhanli? 2. What will be rate for compensation for affected trees? 3. Will there be employment opportunities for our village in the construction period?

1. Yes there are 2 underpasses in Cukhanli 2. LAD will assess affected trees based on normative price, then they will agree with the owner. 3. Yes, the Contractor will employ peoples from the villages.

Annex 8b: Minutes of Consultation Meeting held in Salyan on 24th July 2007

MINUTE №2 Place: Salyan District. (HOEP assembly hall) Date: 24 July 2007 Attendees: 30 persons (see: Annex A) PURPOSE OF THE PUBLIC CONSULTATION: To inform public about the final alignment of Alat-Astara Highway, to explain the chosen alignment out of possible alternatives and public disclosure of Alat Interchange – Xidirli Interchange, Kursangi Interchange – north of Salyan Interchange and Kur River bridge to Jalilabad Interchange Environmental Assessment and Environmental Management Plan. Meeting with Head of Salyan rayon Executive Power: Firstly, meeting held with Rasim Bashirov (Head of the Executive Power of Salyan). Here Project Coordinator from Scott Wilson Nargiz Assadova, Environmental specialist Manaf Suleymanov, ARS JSC – LAD Head Engineer Adil Rahimov, Resettlement specialist from RRİ Consulting Elshan Rustamov participated this meeting. Information about last situation of Project was given to Mr. Rasim Bashirov by Nargiz Assadova. Afterwards, she introduced working group and gave information about purpose of site visit. She stated that, according to the letter by ARS JSC it is proposed that public consultation should be held by the participation of municipalities and other interested organizations. Then, areas crossing by road alignment with the corresponding names of villages introduced. Then, reasons of chosen alignment were explained by Mr.Elshan Rustamov. After listening to the above speeches Mr.Rasim Bashirov gave his comments: He stated that it would be better if the existing road widened till Kur river in Salyan section. To substantiate his comments he said that there is no free space between Xalac and Yenikand and in Cukhanli village to construct a Highway. As a respond to that comment Mr. Adil Rahimov commented that he had been in those areas with the specialists of RRI and made some amendments to

the alignment to avoid possible physical relocation. And there is free space to make Highway between above mentioned villages and these land areas are cultivated mainly for grain and alfalfa. Also in Cukhanli village several amendments had been made to the alignment to avoid resettlement. At 13:00 – meeting was held by the participation of corresponding municipality representatives and interested organizations. ATTENDEES WHO MADE SPEECH: Nargiz Assadova (Project Coordinator) welcomed the meeting attendees and introduced them the specialists. Afterwards she gave the floor to Manaf Suleymanov. Manaf Suleymanov gave general information about the Project. At the end of his speech Manaf Suleymanov addressed to Abbasov Aladdin, deputy head and asked whether there was any place for waste disposal in that area or not. Aladdin Abbasov told that, there was place for domestic wastes, but no place had been selected for industrial and construction wastes, as there was no need for it before. Abbasov Aladdin (Deputy head) asked who supervises the Mitigation Measures indicated in presented EA document. He indicated that up to date only the companies working with oil contracts (Salyan oil, Shirvan oil) held some works on protection of environment at Shirvan National Park. The local people were very anxious about the construction caused adverse impact on environment. Manaf Suleymanov answered that the project was financed by WB and that is why the EA document was of great importance. He added that the monitoring were being held. Mitigation Measures for all components of the Environment were indicated in the presented document under the title of Mitigation Measures and Environmental Management Plan. ARS JSC will supervise that construction company should follow them. In case of any violation the authorized representatives and local people can address to ARS JSC and WB. Elshan Rustamov (RRİ) showed the map of the road section for Salyan area, gave information about affected land parcels, showed the place of interchanges and crossings. He stated that there are a lot of private land parcels between Xalac and Yenikand and gave information about scope of land acquisition for municipal, private and state lands. Aladdin Abbasov (deputy head) expressed his thought on the map and told that the designed road passes through productive land areas till the military aerodrome, and all land parcels located in that area are main source of the population of Yenikand and Xalac. Their acquisition and compensation with other land parcels will cause a lot of problems, as there is not land reserve which in planting circulation and this may cause unemployment in the area. At the end of his speech he stated that, these two villages were connected

and there were a lot of planting areas, irrigation sets, collectors, and etc., and these systems had been rehabilitated during authority of Heydar Aliyev. He offered to construct the new Highway on the route of the existing Highway. Elshan Rustamov (RRI) stated that 3 possible alternative alignments had given to RRI to choose best of them. And RRI had chosen one of them that after the ecological, economical, hydrological, engineering and social investigations. Widening of existing road into 60 m 1st category road is impossible in that section. For social aspect is not allowed to divide same community into two sections by closed tall road. Engineers analyzed all possible alignments and held consultations with interested organizations. Aladdin Abbasov (deputy head) told that there is almost no land reserve at Salyan. The government has a program on grape cultivation. Compensation of vineyards located at the Salyan will be very high. Adil Rahimov (ARS JSC., LAD) told that the proposed alignment had comprehensive analyzed. Alternatives were analyzed according to hydrological, engineering, social-economical studies and that was the baseline presented variant (with 60 m corridor). He added that, before that meeting RRI and the representatives of ARS JSC met with some municipalities and all variants had been discussed. Above mentioned vineyard areas had been investigated. According to RRI’s results vineyard covers only a small portion of lands that will be affected by proposed highway. Thus, new highway will have a few impacts on your vineyard farm. Possible adjustments had been made to the alignment to avoid vineyards. Huseynov Eyyub (Salyan Exec. Power. Head of Architecture and Construction Division): Scope of private land acquisition will deprive income source and may enforce people to migrate to other settlements. But there is no problem in the existing road to demolish some structures. Gambarov Fazil (Head of Shakarli municipality) asked to show all private areas of Shakarli municipality on the map. Elshan Rustamov (RRİ) showed them on the map. Hasanov Aziz (Head of Nokhudlu municipality) stated that he is agree with the decision of the government. And asked the prices considered for land acquisition compensation. Adil Rahimov (ARS JSC., LAD) told that cost of the land areas will be exacted according to categories. The market price will be analyzed and at last Executive Power will give Order according to this information. Sarkhanov Gadir (head of Xalac municipality) asked about compensation for lands acquired from municipality. Adil Rahimov (ARS JSC., LAD) told that if the district has land reserve in fund, the acquired lands would be compensated with land areas from fund, in case of lack of land reserve land owners would be paid corresponding to market price of their land area.

Elshan Rustamov (RRI) stated that, beginning from August of this year RRI will start the census of land areas and all properties will get information about it. Sadıqov Aladdin (Salyan Road Maintenance Unit) told to meeting attendees that all information will be defined more preciously in the future. Then he informed municipalities that this is the job of our republic. All of you have to help us in this job. Then he stated that interests of APs will be determined and all impacts will be compensated. Elshan Rustamov (RRI) stated that, beginning from August of this year RRI will start the census of land areas and all properties will get information about it. He also told that, the area from Alat to intersection in south of Masalli is divided into 3 sections. I section from Alat to Kur river, II section from Kur river to Shorsulu (intersection on Bilasuvar road (km 80.6)), and III section from Shorsulu to south of Masalli. The construction of I section is considered in I Lot, III section in II Lot, and II section in III Lot. The construction of the bridge on Kur river will be the last, and this is considered in IV Lot. The information about land use and land owners\users will be changed by RRI and submitted to ARS –Land Acquisition Division. Nargiz Assadova (Project Coordinator) thanked to meeting attendees and gave the contact data of the company to the attendees. She told that she gave a copy of EA document to the Executive Power and asked them to feel free to contact to her regarding any questions and problems after reading this document. At the end of the meeting Abbasov Aladdin (deputy head) thanked to the specialists presenting the project.

Annex 8c: Minutes of Consultation Meeting held in Salyan on 24th September 2009

 

PUBLIC CONSULTATION WITH PROJECT‐AFFECTED GROUPS  

 

 

Place: Salyan city. (Office of the Head of Executive Power, assembly hall) 

Date: 24 September 2009 

Time: 15:00 

Attendees: 32 persons (see: Annex) 

 

Agenda: 

 

Public disclosure of the Resettlement Action Plan and the new methods used for valuation of affected assets. 

 

Deputy  of  the  Head  of  Executive  Power  of  Salyan  opened  the meeting  and  explained  its  objectives.  He  gave  brief  information  about  the brochure, which provides details and mechanisms for addressing the  land aqcquisition  issues pertaining to reconstruction of Alat‐Masalli road under Highway II Project and was distributed among meeting participants. He gave floor to the representatives of the Road Administration who  informed that calculation of the price of property   acquired  for state needs  is now carried out according to the methodology set by the new Resolution of  the Cabinet of Ministers,    therefore  the Resettlement Action Plan which was discussed with the community  last year has been 

revised. The participants were provided with detailed  information on  these  revisions. During  general debates,  representatives of  respective government agencies provided answers to questions and issues raised by PAPs.   

 

 

Summary of Key Issues and Mitigation Mechanisms 

 

No  Issue  Mitigation Measure  Responsible Party 

1  The established market prices of land are not satisfactory for some PAP.  

Market prices of land are determined according to the methodology established by the Resolution of the Cabinet of Ministers No 54 dated 04 April 2009. The PAP will have an option of agreeing to the offered compensation amount, opting for allocation of equivalent land parcels to them in other locations, or benefiting from grievance redress mechanisms. Strong grievance mechanisms are designed to ensure that all complaints are addressed adequately. The RAP implementation budget has a special contingency fund for unexpected cases. 

ARS, Monitoring Consultant, Local Executive Power 

       

2  Some houses are located close to the proposed right of way. Does the project guarantee that these houses will not be damaged during construction? 

Necessary safety and precautinary measures will be underataken by Contractror and Supervision Engineer. In an unlikely case if damages happen they will be fully compensated.  

ARS, Contactor, Supervision Engineer  

3  Some land plots are divided into two parts by the road. Will the government pay compensation for the divided land parcels? 

The divided land plots which are less than 0.04ha so cannot be used will be aqcuired/compensated. Access to the divided land parcels will be provided. The Monitoring Consultant will ensure that all PAPs are adequately treated and compensated.  

ARS, Monitoring Consultant 

4  Some PAPs are concerned about the quality of the land plot to be offered  as a compensation for the affected land.  

The offered piece of land should be of same or better and quality size. The Moniitoring Consultant will ensure that all PAPs are provided with satisfactory land parcels. 

ARS, Local Executive Power, Monitoring Consultant 

5  PAPs expressed concern that during construction of the project road some of the interior access roads can be seriously damaged or destroyed.   

All access roads will be rehabilitated by the Contractor . The ARS and Supervison Engineer will monitor satisfaction of the affected people during construction works.  

ARS, Contractor, Supervision Emgineer, Monitoring Consultant 

 

 

SubtotalHa AZN Categories AZN Type Quantity AZN AZN

SalyanCukhanli Municipal 6.0729 5763.95 - - 5763.95

711 0.4243 916.49 - - 916.488710 0.2831 611.50 - - 611.496709 0.3054 659.66 - - 659.664

709А 0.4504 972.86 - - 972.864 734А 0.0917 198.07 - - 198.072

735 0.0992 214.27 - - 214.272736 0.3587 774.79 - - 774.792737 0.3002 648.43 - - 648.432738 0.2411 520.78 - - 520.776739 0.2203 475.85 - - 475.848740 0.2785 601.56 - - 601.56741 0.204 440.64 - - 440.64742 0.2561 553.18 - - 553.176744 0.2674 577.58 - - 577.584

744А 0.0474 102.38 - - 102.384745 0.1583 341.93 - - 341.928746 0.1579 341.06 - - 341.064747 0.1052 227.23 - - 227.232748 0.0527 113.83 - - 113.832749 0.0527 113.83 - - 113.832750 0.0667 144.07 - - 144.072752 0.1362 294.19 - - 294.192753 0.1564 337.82 - - 337.824754 0.1042 225.07 - - 225.072

728a 0.1197 258.55 - - 258.552 454А 0.12 259.20 - - 259.2

Trees

Annex 9. List of APs by Location with Corresponding Categories of Impacts and its Assessed Value

Location Person Code

Land Structures

189б 0.04 86.40 - - 86.4 363А 0.12 259.20 - - 259.2

362А 0.12 259.20- fruit bearing

trees 31 396 655.2191А 0.0177 38.23 - - 38.232413А 0.13 280.80 - - 280.8412А 0.12 259.20 - - 259.2411А 0.13 280.80 - - 280.8378a 0.0048 10.37 - - 10.368

460Ф 0.0128 27.65stable

720fruit bearing

trees 44 408 1155.648

жн-0855 2.2386 4835.38- fruit bearing

trees 170 2232 7067.376Mun-land - house 5835.6 - 5835.6Mun-land - incompl.struct 20544 - 20544

Xalac Municipal 10.29 5078.89 - - 5078.89352Х 0.12 259.2 - - 259.2361Х 0.34 734.4 - - 734.4362 0.367 792.72 - - 792.72363 0.11 237.6 - - 237.6369 0.01 21.6 - - 21.6368 0.39 842.4 - - 842.4

367Х 0.46 993.6 - - 993.6373Х 0.13 280.8 - - 280.8637А 0.44 950.4 - - 950.4639 0.366 790.56 - - 790.56638 1.612 3481.92 - - 3481.92651 0.11 237.6 - - 237.6653 0.27 583.2 - - 583.2652 0.81 1749.6 - - 1749.6655 0.02 43.2 - - 43.2654 0.96 2073.6 - - 2073.6617 0.19 410.4 - - 410.4

616 0.32 691.2 - - 691.2615 0.11 237.6 - - 237.6614 0.1 216 - - 216613 0.26 561.6 - - 561.6

612А 0.01 21.6 - - 21.6720 0.08 172.8 - - 172.8

720А 0.02 43.2 - - 43.2721 0.301 650.16 - - 650.16722 0.18 388.8 - - 388.8723 0.09 194.4 - - 194.4724 0.03 64.8 - - 64.8

724А 0.38 820.8 820.8725 0.3 648 648726 0.28 604.8 - - 604.8

726А 0.08 172.8 - - 172.8728 0.17 367.2 - - 367.2729 0.25 540 - - 540730 0.47 1015.2 - - 1015.2731 0.095 205.2 - - 205.2732 0.24 518.4 - - 518.4733 0.16 345.6 - - 345.6734 0.01 21.6 - - 21.6735 0.01 21.6 - - 21.6

735А 0.47 1015.2 - - 1015.2894 0.26 561.6 - - 561.6

810Г 0.73 1576.8 - - 1576.8897А 0.41 885.6 - - 885.6898 0.54 1166.4 - - 1166.4364 0.05 108 - - 108374 0.01 21.6 - - 21.6

731а 0.0013 2.808- fruit bearing

trees 18 414.72 417.528

№0005993№0005994 1.38 2980.8

Yenikand Municipal 5.33 6692.42- fruit bearing

trees 341 2033 8725.42677 0.0654 141.26 - - 141.264

677A 0.3279 708.26 - - 708.264679 0.2956 638.50 - - 638.496678 0.5621 1214.14 - - 1214.136505 0.393 848.88 - - 848.88506 0.2599 561.38 - - 561.384507 0.16 345.60 - - 345.6508 0.1512 326.59 - - 326.592509 0.0535 115.56 - - 115.56

521A 0.0502 108.43 - - 108.432522 0.1888 407.81 - - 407.808523 0.1815 392.04 - - 392.04524 0.1124 242.78 - - 242.784525 0.2786 601.78 - - 601.776526 0.1583 341.93 - - 341.928527 0.0449 96.98 - - 96.984

527A 0.1781 384.70 - - 384.696528 0.361 779.76 - - 779.76529 0.2462 531.79 - - 531.792530 0.0494 106.70 - - 106.704534 0.8343 1802.09 - - 1802.088

537A 0.0037 7.99 - - 7.992538 1.1004 2376.86 - - 2376.864556 0.1207 260.71 - - 260.712557 0.7738 1671.41 - - 1671.408558 0.2916 629.86 - - 629.856562 0.3959 855.14 - - 855.144561 1.0395 2245.32 - - 2245.32

573 0.2212 477.79 - - 477.792572 0.6371 1376.14 - - 1376.136406 0.905 1954.80 - - 1954.8394 1.222 2639.52 - - 2639.52391 1.1277 2435.83 - - 2435.832360 0.0934 201.74 - - 201.744359 1.2942 2795.47 - - 2795.472358 0.0564 121.82 - - 121.824119 0.1627 351.43 - - 351.432348 0.0115 24.84 - - 24.84349 0.2339 505.22 - - 505.224350 0.0984 212.54 - - 212.544351 0.2267 489.67 - - 489.672352 0.2257 487.51 - - 487.512353 0.0603 130.25 - - 130.248134 0.2933 633.53 - - 633.528135 0.7356 1588.90 - - 1588.896136 0.3076 664.42 - - 664.416137 0.0357 77.11 - - 77.11244A 0.0317 68.47 - - 68.47245 0.1273 274.97 - - 274.96846 1.0072 2175.55 - - 2175.55247 0.1692 365.47 - - 365.47248 0.1895 409.32 - - 409.3249 0.4371 944.14 - - 944.13650 0.0576 124.42 - - 124.41639 0.3244 700.70 - - 700.70440 0.0136 29.38 - - 29.37637 0.4628 999.65 - - 999.64838 0.1936 418.18 - - 418.17636 0.1343 290.09 - - 290.08835 0.4069 878.90 - - 878.904

34A 0.5496 1187.14 - - 1187.13634 0.0042 9.07 - - 9.07233 0.2702 583.63 - - 583.63232 0.0137 29.59 - - 29.59231 0.052 112.32 - - 112.325 0.0214 46.22 - - 46.2244 1.107 2391.12 - - 2391.123 0.7216 1558.66 - - 1558.6562 0.2365 510.84 - - 510.841 0.0171 36.94 - - 36.936

municipalityfruit bearing

trees 341 4879.2 4879.2

Annex 10 a: LARP Approval Process according to the latest (04.04.2009) Resolution of the Cabinet of Ministers

Box 1: Client or Executing Agency

Box 3: State Committee for

Management of State Properties

Box 6:Cabinet of Ministers

Box 2: • Map showing size of acquired land • Information about category and owner of land plots • Inventory of structures on affected land • List of owners, leaseholders and users of land • Preliminary budget and source (procedure is being

formulated) • Other relevant documents (initial agreement w/PAPs

re property acquisition, decree by EP and municipality re allocation of affected parcels for road ROW, SLCC’s approval of cadastral and parcel maps with signature and stamp

Box 5: Ministry of Finance

Box 4: Ministry of Economic

Development

Decree re Acquisition

of the property

Annex 10 b: LARP Implementation Process

1. Procedural Requirement for Valuation and Notification of PAPs re acquisition and compensation:

_______________________________________________________________________________

2. Budget Request and Money Transfer Procedural Requirements:

Client or Executing

Agency

Project Affected Persons

Valuator

Result (Price) of valuation is

submitted

Decree re Acquisition of the

property

Client or Executing Agency

Ministry of Finance

Project Affected Persons

First Notification: Within 3 days after passage of Decree, PAPs are notified re the acquisition of the properties

Second Notification: A day after the price is determined the PAPs are informed re compensation offer and purchase agreement is finalized

After the first notification (no more than 80 days), a Valuator is chosen by the EA.

After valuation and pricing (not more than 3 days), the Client requests MF for budget release

After 1st notification (not more than 120 days) money is transferred to PAP’s bank account

Fund Transfer

Annex 11: Sample of Notification Letter (approved by Cabinet of Ministers (4. 4.2009)

NOTIFICATION

___________________________________________________________________________

(proprietor of real estate: name, surname, patronymic and address of juridical person;

___________________________________________________________________________

(Name and address of person)

We want to inform you of the decision by the Cabinet of Ministers of the Azerbaijan Republic made last _______________based on Resolution No. __ concerning the need to acquire property rights for state needs on a property that is situated ____________________________________________________________________________

(location of real estate)

Accordingly, you will be notified between the period “___” 20__ till “____” 20__ about the purchase and compensation price of the above real estate property as soon as the value of said property had been estimated following the guideline provided by the aforementioned Resolution.

Risks indicated in Article 249.2 of the Civil Code of the Azerbaijan Republic concerning costs and losses connected with the improvement of old ones, reconstruction and construction of the same real estate or property within this period of time will be your own responsibility.

Authorized person’s signature____________________________

Name, surname, patronymic and position of the authorized person________________________ _____________________________________________________________________________

M.Y.

Date