FINAL REPORT Resettlement Action Plandocuments.worldbank.org/curated/en/107641468338452384/pdf/RP1409v20P... · Uzbekistan Drainage, Irrigation and Wetlands Improvement Phase I Project

Uzbekistan

Drainage, Irrigation and Wetlands Improvement

Phase I Project

Consulting Services for Environmental and Social Assessment for

the South Karakalpakstan Water Resources Management

Improvement Project

(Loan No. 4707-UZ / Credit No. 3796-UZ)

Submitted to:

PIU-WI of the Ministry of Agriculture and Water Resources

FINAL REPORT

Resettlement Action Plan

Submitted by:

March 2013

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Typewritten Text

RP1409v2

АНТ/ Ekspert Fikri Page 3 of 114

CONTENTS

LIST OF DIAGRAMS: ........................................................................................................ 5

LIST OF TABLES: ............................................................................................................. 5

LIST OF MAPS: ................................................................................................................. 5

GLOSSARY: ...................................................................................................................... 8

EXECUTIVE SUMMARY ................................................................................................. 10

INTORDUCTION ............................................................................................................. 15

1.1 THE PROJECT AREA ................................................................................................ 16

1.3 PROJECT COMPONENTS ........................................................................................ 17

CHAPTER II POTENTIAL IMPACTS ............................................................................... 19

1.1 THE PROJECT PLANNING ACTIVITY ....................................................................... 19

2.2 RAP COMPONENETS ............................................................................................... 22

2.3 MEASURES APPLIED TO MINIMIZE RESETTLEMENT AND ACQUISITION OF

LAND ............................................................................................................................... 23

CHAPTER III THE MAIN PRINCIPLES AND OBJECTIVES OF THE RESETTLEMENT ACTION PLAN ................................................................................... 24

3.1 THE MAIN PRINCIPLES OF THE RESETTLEMENT POLICY ................................... 24

3.2 OBJECTIVES OF THE RESETTLEMENT POLICY .................................................... 24

CHAPTER IV SOCIECONOMIC STUDIES ...................................................................... 26

4.1 RESULTS OF THE INVENTORY OF THE AFFECTED PEOPLE ASSETS ................ 26

4.2 RESULTS OF THE ASSESSMENT OF THE PROJECT-AFFECTED

AGRICULTURAL LAND ................................................................................................... 33

4.3 EXPROPRIATION OF LAND ALONG THE SECONDARY CANALS (preliminary

calculations) ..................................................................................................................... 34

4.4 PROJECT’S IMPACT ON EMPLOYMENT RATE ....................................................... 35

4.5 GENERAL DEMOGRAPHIC AND SOCIO-ECONOMIC SITUATION OF THE

PROJECT AREA ............................................................................................................. 36

4.5.1 Population ........................................................................................................... 36

4.5.2 Labor activity of the regions ................................................................................. 38

4.5.3 Population’s incomes ........................................................................................... 39

4.6 SOCIAL ASSESSMENT OF THE AFFECTED HOUSEHOLDS .................................. 39

CHAPTER V LEGAL FRAMEWORK ............................................................................... 42

5.1 LIST OF THE RAP-RELATED REGULATIONS OF UZBEKISTAN ............................. 42

5.2 THE LAND CODE....................................................................................................... 42

5.3 THE ORDER OF ALLOTMENT OF LAND FOR TOWN PLANNING AND NON-

AGRICULTURAL PURPOSES ........................................................................................ 45

5.4 THE CIVIL CODE ....................................................................................................... 49

5.5 THE ORDER OF COMPENSATION PAID TO INDIVIDUALS AND LEGAL

ENTITIES IN CASE OF THE LAND ACQUISITION FOR THE STATE AND PUBLIC

NEEDS ............................................................................................................................ 50

5.6 DISCREPANCIES BETWEEN NATIONAL LEGISLATIO AND WORLD BANK

REGULATIONS ............................................................................................................... 56


CHAPTER VI INSTIUTIONAL FRAMEWORK ................................................................. 58

6.1 GOVERNMENTAL ORGANIZATIONS AND STRUCTURES RESPONSIBLE

FOR RESETTLEMENT ISSUES ...................................................................................... 58

6.2 LEGAL ACTS REGULATING INSTITUTIONS WHICH ARE RESPONSIBLE FOR

THE RESETTLEMENT IMPLEMENTATION .................................................................... 58

CHAPTER VII ELLIGIBILITY FOR COMPENSATION .................................................... 62

7.1 DEFINITION OF DISPLACED PERSONS .................................................................. 62

CHAPTER VIII VALUATION AND COMPENSATION FOR LOSSES ............................... 66

8.1 THE METHODOLAGY OF ASSESSMENT ................................................................. 66

CHAPTER IX COMMUNITY PARTICIPATION ................................................................ 68

9.1 POSSIBLE BENEFITS AND RISKS OF THE PROJECT ............................................ 68

CHAPTER X GRIEVANCE REDRESS MECHANIZM ...................................................... 70

10.1GRIEVANCES REDRESS MECHANISM .................................................................. 70

CHAPTER XI IMPLEMENTATION SCHEDULE............................................................... 72

CHAPTER XII EXPENSES AND BUDGET ...................................................................... 73

CHAPTER XIII MONITIORING AND EVALUATION (M&E) ............................................. 75

CONCLUSION ................................................................................................................. 76

ANNEX 1 ......................................................................................................................... 78

ANNEX 2 ......................................................................................................................... 79

ANNEX 4 Table of key conclusions on the results of consultation / public meeting and workshops with stake holder and residents of Turtkul, Beruni and Ellikkala raions. ............................................................................................................................ 111

ANNEX 5 Comparative Table of the Uzbek Legislation and the WB’s Policy ................. 114


LIST OF DIAGRAMS: Diagram 1 Natural growth of population .................................................................................... 36

Diagram 2 The number of rural and urban population in thousand people of Turtkul, Ellikkala

and Beruni regions .................................................................................................................... 37

Diagram 3 Migration of the project area .................................................................................... 38

Diagram 4 Age groups of PAP .................................................................................................. 40

Diagram 5 Land location for the object planning (allocation of land, preparation and approval of

land location documents) in the absence of town planning documentation (general plan, RAP )

................................................................................................................................................. 47

Diagram 6 Preparation, agreement and approval of documents on allotment of land plot and its

designing .................................................................................................................................. 48

LIST OF TABLES:

Table 1 Flow rates for the canals in m3/s are planned to be as follows: ..................................... 21

Table 2 Summary list – assessed value of PAP ........................................................................ 26

Table 3 The number of registered unemployed and economically active population in thousand

people within the project area ................................................................................................... 39

Table 4 Entitlement matrix ........................................................................................................ 64

Table 5 Estimated costs of the land expropriation and resettlement issues ............................... 74

LIST OF MAPS:

Map 1 Beruni, Ellikkala, Turtkul regions location ....................................................................... 17

Map 2 Option A: Proposed Bustan Canal .................................................................................. 20

Map 3 The image oft he planning Bustan canal ........................................................................ 78

Map 4 ....................................................................................................................................... 79

Map 5 ....................................................................................................................................... 80

Map 6 ....................................................................................................................................... 81

Map 7 ....................................................................................................................................... 82

Map 8 ....................................................................................................................................... 83

Map 9 ....................................................................................................................................... 84

Map 10 ..................................................................................................................................... 85

Map 11 ..................................................................................................................................... 86

Map 12 ..................................................................................................................................... 87

Map 13 ..................................................................................................................................... 88

Map 14 ..................................................................................................................................... 89

Map 15 ..................................................................................................................................... 90

Map 16 ..................................................................................................................................... 91

Map 17 ..................................................................................................................................... 92

Map 18 ..................................................................................................................................... 93

Map 19 ..................................................................................................................................... 94

Map 20 ..................................................................................................................................... 95

Map 21 ..................................................................................................................................... 96

Map 22 ..................................................................................................................................... 97

Map 23 ..................................................................................................................................... 98

Map 24 ..................................................................................................................................... 99

Map 25 ................................................................................................................................... 100

Map 26 ................................................................................................................................... 101

Map 27 ................................................................................................................................... 102

Map 28 ................................................................................................................................... 103

Map 29 ................................................................................................................................... 104


Map 30 ................................................................................................................................... 105

Map 31 ................................................................................................................................... 106


LIST OF ABBREVIATIONS:

DIWIP Drainage, Irrigation and Wetlands Improvement Project

FE Farmer enterprise

FGD Focus-group discussions

GoU Government of Uzbekistan

HH Household

IS Irrigation system

LAR Land Acquisition and Resettlement

MAWR Ministry of Agriculture and Water Resources

M&E Monitoring and Evaluation

NGO Nongovernmental organization

NSPA National Standard for Property Assessment

OP Operational Policy

PAP Project-affected households

PAP Project-affected persons

PIU Project Implementation Unit

PS Pumping Station

RAP Resettlement Action Plan

RBC Right Bank Canal

RCM Resolution of the Cabinet of Ministers

RAP Resettlement Action Plan

RPF Resettlement Policy Framework

RUz Republic of Uzbekistan

SES Sanitary and Epidemiological Stations

SA Social Assessment

SK South Karakalpakstan

SKRBC South Karakalpakstan Right Bank Canal

SKWRMIP South Karakalpakstan Water Resources Management Improvement Project

WB World Bank

WUA Water Users’ Association


GLOSSARY:

Acquisition of land Legal operations on discharge right of land possession by legal

entities and individuals on the ground of state jurisdiction and in

order established by law.

Construction documents Construction documentation is a ground for issuance of permits for

the construction. Construction documentation defines scope, design

and technical specifications, cost of construction, reconstruction and

rehabilitation as well as improvements of buildings, structures and

other facilities.

Dekhkan Dekhkan farm consists of homestead lands, allotted to heads of

families under inheritable life tenure, producing and selling

agricultural products on the basis of the labour of family members.

Farmer A farmer of land on which crop production is undertaken for

commercial or similar purposes. This excludes dekhkan farms,

which for this definition are considered to engage in crop production

for domestic and private use.

Goskomzemgeocadastre State Committee for Land Resources, Geodesy, Cartography and

State Cadastre

Khokimiyat Local authorities/government.

Lease of land

A type of financial arrangement in which the ground under a

structure is leased, rather than sold to the builder, meaning that the

land and the structure are owned independently.

Makhalla Territorial community, and at the same time institution of local

government of citizens

Project Area Irrigated area of nearly 100,000 hectares located in South

Karakalpakstan on the right bank of the Amu Darya river

Project districts Three administrative districts of Republic of Karakalpakstan (Beruni,

Turtkul and Ellikkala) where the Project Area is located.

State land cadastre

The system of information and documents on the natural,

agricultural, legal regime of land, its categories, quality

characteristics and values, on the location and dimension of land

parcels, its distribution to land owners, users and lease holders.

Tuman Administrative district (Uzbek form of Russian “rayon”)

Tomorka (dekhkan land

plot)

Household garden plot up to 0.25 ha (fruit trees, vegetables)

Viloyat Administrative region. (Uzbek form of Russian “oblast”).Uzbekistan

is divided into 12 viloyats plus the Republic of Karakalpakstan.

Viloyats are subdivided into tumans. The Republic of

Karakalpakstan is divided directly into tumans.

Vulnerable groups Socially vulnerable groups, citizens, families who have low income

and accumulated wealth. Mainly, they are elderly people, disabled

people, large families and single-parent families as well as families

with incomes below the living wage.


As a result of SKWRMIP construction works and involuntary expropriation of land, the

cost of compensation payments constitutes:1

Cost of project-affected households: 5 712 186 714 Uzbek Sums

3 159 098 US Dollars*

Cost of mulberry trees: 280 000 000 Uzbek Sums

154 853 US Dollars*

Total: 5 992 186 714 Uzbek Sums

3 313 951 US Dollars

*At the rate of the Central bank (CB) of the Republic of Uzbekistan on 24.01.2012 was equal to

1808, 17

1 5% is incorporated in Feasibility Study for contingencies. These expenses are applicable to those exceptional

cases if Project affected people refuses the offer of the land plot for a number of reasons, or if notification is not proveded in time and leads to relative losses of crops and other cases.


EXECUTIVE SUMMARY

The government of the Republic of Uzbekistan obtained a credit of the World Bank (WB) to fund

the DIWIP, Phase-I. There have already been built a main sewer and reconstructed on-farm and

inter-farm drainage systems within the project frameworks. These measures allowed improving

the irrigation system as water flows by gravity now. In addition to the success of the DIWIP, the

SKWRMIP feasibility study is seeking to improve water management of the combined irrigation

and drainage system in general and irrigation aspects of the system in particular. Thus, the

South Karakalpakstan Water Resources Management Improvement Project was worked

out in order to provide construction services for the Bustan Canal and secondary canals. These

measures will make it possible to irrigate land of the project area by means of gravity and

without need to use pumping stations of the Amu Darya River.

The total project irrigated area of nearly 100,000 ha2 is fed by the canal system of the Amu

Darya River or by the water gravity via the South Karakalpakstan Right Bank Canal (SKRBC)

taking water from the Tuyamuyun Reservoir or by pumping water from the river to the north of

the reservoir. However, on the average the real irrigated area of the SKRBC system is about

65,000 ha. The situation is caused by problems with inappropriate functioning of the irrigation

system.

The SKWRMIP is covering the territory of three south regions of the autonomous Republic of

Karakalpakstan, namely Beruni, Ellikkala, and Turtkul, located right to the Amu Darya River

bank. The SKWRMIP area is located less than 100 km from the city of Nukus (the capital of

Karakalpakstan) in the north, and about 20 km from the city of Urgench (the capital of Khorezm

Region) in the west.

The total population of the project area is more than 400,000 people or 26 per cent of the

republic population. The main type of economic activity of all three regions is farm production,

as nearly 80 per cent of population involved in agriculture. Taking into account that existing

irrigation system is not able to satisfy demand for water of most households, especially those

located at the end part of the system and also in drought years, project implementation seeks to

improve the socio-economic status of the region and well-being of the rural population in

particular.

It is determined that the Project will require certain amount of land for permanent occupation,

displacement of households and existing settlement infrastructure. As individuals affected by the

project can partially or entirely lose their houses, land parcels, sources of income and business

due to involuntary resettlement actions, the RAP and RFP (Resettlement policy framework)

consistent with the WB OP 4.12 on Involuntary Resettlement was formulated. These documents

allow identifying displaced persons, calculating the cost of their damages and losses, revealing

key rights and guarantying compensation/support to the project affected people regardless

legality or illegality of their ownership.

The PIU (Project Implementation Unit) has prepared a first comprehensive list of farms and

households affected by construction activities in order to carry out legitimate resettlement and

compensation activities. Thereafter, the group of socio-economic evaluation carried out a socio-

economic survey of households whose land should be seized. All farmers and households were

2 Beruni – 33,397 ha; Ellikkala – 34,392 ha; and Turtkul – 32,222 ha


notified of the project and its possible effect (acquisition of land and resettlement). The

comprehensive Resettlement Action Plan (RAP) was developed.

The RAP was prepared on the basis of the socio-economic survey of households holding land

within the project area, evaluation of their property and consultations and meetings with

stakeholders.

The route of the future Bustan Canal was identified on the basis of maps provided by the PIU

and GIS technologies, so objects located within the alienation area were assessed. This

assessment was carried out by the independent appraisal company.

The primary assessment of PAP assets, inventory of tangible and intangible property was

carried out in December 2011 and January 2012. Thus, assessment identified 82 targets

including 64 households (63 dwelling houses and 1 uninhabited house) and 18 other

targets3, which include incompleted constructions, foundations, a garage, a hen house, a petrol

station and a service station.

The total value of the affected assets according to the market value calculation is about 5 712

186 714 Uzbek sums or 3 159 098 US dollars.4 The value of agricultural trees (mulberry trees,

fruit trees) is 280 000 000 Uzbek sums or 154 853 US dollars5. The government will allocate

the equal (alternative) land plots for withdrawn agricultural land plots (cotton, wheat and other

crops). Additional compensation will take place if the notification is not in due time and as a

consequence PAPs have agricultural losses. A special commission will identify the value of

additional compensation.

The primary assessment of value of compensation (on the basis of market rate) for specified 82

PAPs was carried out in December 2011 and January 2012.

Information on planned construction of Bustan canal and its location was presented to all the

stakeholders and institutions on conducted seminars, consultations and public meetings in

project area. Focus-group discussions conducted in Project area included at least one women

group as well.6

The total area of the project-affected territory (construction of Bustan canal) is 427 ha, namely:

335 ha is irrigated agricultural land plots and gardens (including mulberry trees, fruit

trees);

17 ha is the area of PAP;

75 ha is non-irrigated land, roads and etc..

Agricultural land plots that would be expropriated as a result of the construction works consist of

different types of crops and trees. Thus, the cotton and wheat are prevalent among crops and

mulberry trees are prevalent among trees, although apple and peach are rather spread within

the territory as well.

3 See Table 2 Summary list – assessed value of PAP assests

4 At the rate of the Central bank (CB) of the Republic of Uzbekistan on 24.01.2012

5 At the rate of the Central bank (CB) of the Republic of Uzbekistan on 24.01.2012

6 See Annex 3


As mulberry trees are rather precious species of trees and have “natural drainage” qualities,

then payment of compensation for its damage should be applied.

Technical area of construction (Bustan canal)

Acquisition or temporary expropriation of land for organization of the technical area access

roads to the site and other builders’ needs will not be required. The existing municipal and road

infrastructures are sufficient for the project implementation. There is no need to construct

additional roads through the land plots or residential (dwelling) houses of project area.

Secondary canals

Reconstruction of the secondary canals of the system will require temporary and permanent

acquisition of 4000 ha of land. Mathematically it was determined the calculated value of real

property along these canals equals to 5 193 731 600 Uzbek Sums or 2 872 369 US Dollars.

More detailed assessment will be based on RPF.

Recovery of losses

Recovery of agricultural losses to the main categories of the project affected people, namely

land tenants (dekhkan households7), leaseholders (farmer households), land users (enterprises,

organizations and institutions) will be implemented in compliance with the land legislation of the

Republic of Uzbekistan. If any discrepancies between the WB policy and legislation of the

Republic of Uzbekistan exist the World Bank policy prevails

In case of expropriation of the land plot with houses, enterprises, and other buildings,

constructions, trees, assets of the equal value are provided and damages related to acquisition

are compensated to them.

Besides that, khokimiyats of appropriate region (city) must notify owners of residential,

production and other types of buildings, constructions and plantations of the made decisions in

written form under their signature not later than six months prior to demolition and attach to

the notification copies of the appropriate decisions of the Council of Ministers of the Republic of

Karakalpakstan and regional and Tashkent city khokims on the land allotment, demolition of

residential, production or other types of buildings, constructions and plantations located on the

land plot. Acquisition of land would be possible only after payment of compensation to PAP.

These measures would allow reducing losses of PAP because they will have an opportunity to

prepare for forthcoming acquisition of land (harvest and sell their crops, dig up and replant

young plants, cut trees (for example, firewood) so forth).

Thus, government legislation of the Republic of Uzbekistan and the WB policy consider interests

and provide protection of rights of land tenants, land users, leaseholders and land owners.

During the project implementation the local authorities will provide all the farmers who lose their

land plots with alternative land plots. At present the negotiations are being conducted with

Khokimiats, cadastral and other official organizations about providing the available land plots of

7 Family small commodity household that exercises production and realization of agricultural products on

basis of family members labour at a plot land attached to a house that allocated to the head of a family for inheritable tenure.


equal value to farmers. If farmer is not satisfied with the provided land plot, he can refuse the

offer of provided the land plot. In these exceptional cases (actual refusal) the issue of each

farmer will be considered individually and compensation will cover the percent of loss of the

agricultural income. (as the land is state property and farmers are leaseholders).

However, the regular activity should be conducted with farmers and local authorities in order to

find out the most acceptable conditions of providing the land plots for growing the crops.

Currently there is a process of consolidation of farms that doesn't allow to make the detailed

calculation of losses of each farmer and how many will refuse the land plots.

Discrepancies between the WB policy and legislation of the Republic of Uzbekistan8

The prevalence of the World Bank policy

The cut-off date of assessment was January 24, 2012.

There are some discrepancies between the WB policy and legislation of the Republic of

Uzbekistan.

Persons who took up their residence or any other tangible or intangible property other on the

area after the cut-off date (the date of conducted primary assessment, December 2011 –

January 2012, is considered in this case, are not entitled to compensation form of resettlement

assistance upon the Project.

National legislation (unlike the WB policy) does not stipulate compensation of the value of

illegally built residential, production and other types of buildings, constructions as well as

compensations paid to the persons illegally occupying the land plot. In these cases the WB

policy prevails.

However, it should be noted that illegally built constructions were not found in the project area.

Hence, all project-affected structures were assessed in accordance with the National Standards

for Property Assessment which stipulated full compensation for its damage respectively.

During the assessment of PAP property and family conditions in project area the most

vulnerable groups (single mothers, unemployed persons, pensioners and disabled people) were

not identified. For detailed information see Annex #5 Comparison table of legislation of the

Republic of Uzbekistan and the WB policy.

Conclusion

Acquisition of land and involuntary resettlement are complex procedures that can be

accompanied with trials caused by compensation payments grievances and defaults of

obligations on assistance to displaced persons.

If affected persons do not agree with decisions of organizations and institutions responsible for

compensation issues, they can bring their complaints and problems to the regional or municipal

8 For detailed information see Annex #4 Comparison table of legislation of the Republic of Uzbekistan and the WB

policy


khokimiyats or PIU9.. In case of rejection of a complaint an appeal can be directed to the

appropriate court.

Thus, RAP is required to carry out the most efficient implementation of procedures on disposal

and withdrawal of land as well as determination of entitlement payment/ compensation. Persons

who will be involved in land disputes, loss of the agricultural income, and also property loss

have right to obtain compensation throughout project implementation.

Withdrawal of the earth and other property can be carried out only after payment of the

corresponding compensations, or after allocation of new lands to resettled persons. Moreover,

RAP and Resettlement Policy framework provide additional measures for informing of

farmers/households to minimize damage to available crops and other measures, in order not to

leave any negative consequences for local population after the project termination.

Compensations will be completely provided to the mentioned parties prior to the beginning of

any construction or rehabilitation works.

Implementation of the RAP will be monitored through internal monitoring by the PIU /khokimiats

as well as an external monitoring by the independent expert group, consisting of three

members. PIU will prepare ToR for internal and external monitoring.

9 Detailed information in Chapter Х Griverance redress mechanism


INTORDUCTION

The following report introduces the Resettlement Action Plan (RAP) prepared for the South

Karakalpakstan Water Resources Management Improvement Project (SKWRMIP).

Lately, unbalanced water table (in some areas very high or very low) and salinization are the

main problems in South Karakalpakstan that negatively influence on irrigated cropping of the

region.

As a rule, the high or low level of water table occurs due to an inappropriate drainage system

that regulates this level or in case of worsening of the system’s functioning due to lack of

maintenance works; in addition, various problems occur because of insufficient methods of

water resources management.

The government of the Republic of Uzbekistan obtained a credit of the World Bank (WB) to fund

the DIWIP, Phase-I. There have already been built a main sewer and reconstructed on-farm and

inter-farm drainage systems within the project frameworks. These measures allowed to improve

the irrigation system as water flows by gravity now. In addition to the success of the DIWIP, the

SKWRMIP feasibility study is seeking to improve water management of the combined irrigation

and drainage system in general and irrigation aspects of the system in particular.

Thus, a part of credit funds will be invested in design of the SKWRMIP. This project includes

construction of the new concrete-lined 35 meters long (up to the Bogyap canal junction) Bustan

canal. This canal will irrigate land of the project area by means of gravity and without need to

use pumping stations of the Amu Darya river.

Despite the fact that there are clear advantages of the project implementation, some

disadvantages are still exist. The project works will have adverse socio-economic effects on

people living within the project area. Individuals affected by the project can partially or entirely

lose their houses, land parcels, sources of income and business due to involuntary resettlement

actions and land acquisition. So, the RAP that corresponds to the WB Operation Policy (OP)

4.12 “Involuntary Resettlement” is developed in order to minimize the scale of resettlement.

According to the preliminary data, the RAP was prepared on the basis of the socio-economic

survey of households holding land within the project area, primary evaluation of their property as

well as consultations and meetings with stakeholders. The RAP describes the number of

households within the project area; provides estimates of losses of these households;

determines principles and legal basis of compensations for damages due to project

implementation, including temporary losses; reveals mechanism of compensation procedures;

and provides monitoring arrangement and grievance redress.


CHAPTER I INTRODUCTION

1.1 THE PROJECT AREA

The total project irrigated area of nearly 100,000 ha10 is fed by the canal system of the Amu

Darya River or by the water gravity via the South Karakalpakstan Right Bank Canal (SKRBC)

taking water from the Tuyamuyun Reservoir, or by pumping water from the river north of the

reservoir. However, on the average the real irrigated area of the SKRBC system is about 65,000

ha. The situation is caused by problems with inappropriate functioning of the irrigation system.

The South Karakalpakstan Water Resource Management Improvement Project (SKWRMIP)

area is located less than 100 km from the city of Nukus (the capital of Karakalpakstan) in the

north, and about 20 km from the city of Urgench (the capital of Khorezm Region) in the west.

The SKWRMIP is covering the territory of three south regions of the autonomous Republic of

Karakalpakstan, namely Beruni, Ellikkala, and Turtkul, located right to the Amu Darya River

bank.

According to the data on January 1, 201111 Beruni region consists of Beruni town, Bulish

settlement and thirteen residential communities (Abay, Azad, Altinsay, Beruni, Biybazar, Dustlik,

Kizilkala, Matonat, Navoiy, Sarkop, Tinchlik, Shabaz, Shimai).

Turtkul region consists of Turtkul town, Amirabad, Miskin, Nurli-Yul, Tozabog, Turkmanuli

settlements and Akbashli, Akkamish, Atauba, Djambaskala, Kana Turtkul, Kelteminar, Kokcha,

Kumbaksan, Pakhtaabad, Pakhtachi, Tazagyab, Uzbekiston, Ullubag, Shuran and Durdieva

residential communities.

There are approximately 39 thousands residents living in the Turtkul area. Turtkul agricultural

organizations produce vegetables and fruit, cultivate seeds.

Ellikkala region consists of thirteen residential communities and a city. This region is one of the

most beautiful regions of Karakalpakstan, where unique historical sites were conserved.

Habitants of this area were involved in agriculture, livestock farming and fishery, mined and

processed ore. The national composition of the region is presented by karakalpak and uzbek

people, Turkmen Russian and Ukrainian.

Administrative centre of Turtkul is Bustan. Enterprises of Bustan develop light industry. There

are thirteen residential communities (informal local associations) in the region, which are

Akchakul, Amirabad, Gulistan, Guldirsin, Dustlik, Navoiy, Kilchinak, Kizilkum, Sarabiy, Tazabog,

Shark-Yulduzi and Ellikkala.

The total population of the project area is more than 400,000 people or 26 per cent of the

republic population. The main type of economic activity of all three regions is farm production,

as nearly 80 per cent of population involved in agriculture.

10 Beruni – 33,397 ha; Ellikkala – 34,392 ha; and Turtkul – 32,222 ha

11 SOATO - Designation System of Objects of Administrative Division


The project area has arid continental climate with hot dry summer (maximal temperature above

28°C in July) and cold dry winter (minimal temperature under -40°C in January). On the

average, there are about 195 frost-free days a year. Average annual precipitations constitute

about 100 mm, mostly during the winter and spring period, whereas evaporation nearly 1300

mm. As a result, irrigation is extremely essential for crops of this area.

Cotton, wheat, rice, feed crops, watermelon, vegetables, meat, dairy products and fish are main

production within the project area. That is why, it is so important to carry out restoration and

improvement of drainage and irrigation systems works in order to provide adequate agricultural

production. However, involuntary resettlement within the bounds of the project may have

adverse effect on traditional way of living of indigenous population who hereditary occupied

these territories over the years. So, the RAP was elaborated in order to minimize all possible

damages that would occur through the project implementation.

Map 1 Beruni, Ellikkala, Turtkul regions location

1- Amudarya raion 2 - Beruni raion 3 - Chimbay raion 4 – Ellikkalla raion 5 – Kegeyl raion 6 – Muynak

raion 7 – Nukus raion 8- Kanlikul raion 9 –Kungrad raion 10 – Karauzyak raion 11 – Shumanay raion 12 –

Takhtakupir raion 13- Turtkul raion 14 –Khojeyl raion

Source: Council of Ministers of the Republic of Karakalpakstan

1.3 PROJECT COMPONENTS

The project includes the following components:

Component A: The irrigation system improvement

A1. The irrigation system improvement (international competitive bids for

reconstruction of canals, building/restoration of constructions and inter-

farm activity, etc.)


A2:.Activity of the nature-conservative department (including international

competitive bids/national competitive bids12 for minimizing ecological

effect of the project)

A3:.Resetllement policy framework and resettlement action plan

(Compensation for losses to project affected people)

A4: Design engineering, supervision for building and contract

management (Consulting services)

Component B: Consolidation and maintenance of agricultural development

B1: Consolidation of social organizations (institutional construction and

training activity, acquisition of equipment and mechanisms of exploitation

and maintenance)

B2: Pilot farms, demo land parcels and training for Water Users

Association (creation of pilot farms for trial and determination of various

irrigation systems/technologies efficiency; demo land parcels and farmers

field schools for training)

Component C: Project management, audit and M&E (monitoring and evaluation) of

project effects

C1: Project management

C2: Annual audit

C3: M&E of the project (Consulting services)

Component A is the most costly and refers to the WB OP 4.12 ‘Involuntary Resettlement’.

12 International bids/National bids


CHAPTER II POTENTIAL IMPACTS

1.1 THE PROJECT PLANNING ACTIVITY

According to ToR, there were considered and estimated various options of water resource

management improvement in South Karakalpakstan. For each option, the physical (capital)

works are described, the operational and maintenance requirements of the completed works,

and then significant issues relating to the proposal. These solutions are then summarized and

compared, and the optimum option proposed, in this case it is Option A-2.

Option A-2: Full Bustan Canal (Q=80 m3/s)

During the World Bank supervision mission held in September 2011, it was required to identify

the possible methods for reducing the head discharge of the Bustan Canal. After discussions

with the stakeholders a hybrid option, which is a modification of Option A-1 (which was

previously Option A), have been considered.

The main difference between the sub-variants of Option A is that: under this Option A-2, tail

ends of the major canals Bogyap and Keltaminor will be connected back into Bustan Canal, thus

allowing water to flow into the western reaches of Bustan Canal via the Pakhta Arna system.

Therefore design capacities of Bogyap and Keltaminor Canals will be as 20 m3/s and 17 m3/s

respectively. This will create a difference in the size of the replacement structures.

Under this option, it is not proposed to line the canals with concrete due to the potential cost.

Under both sub-variant of Option A, bridges along Pakhta Arna, Bogyap and Keltaminor Canals

would need to be replaced to suit the higher water levels required to command the adjacent

fields.

For both Option A-1 and Option A-2 the reprofiled section of Bogyap and Keltaminor Canals will

be designed to fit within the footprint of the existing canal. The design has also been checked to

ensure that this fits with the existing railway bridge over Keltaminor Canal.


Map 2 Option A: Proposed Bustan Canal

The map was designed by PIU consultants and presented in Feasibility Study


Table 1 Flow rates for the canals in m3/s are planned to be as follows:

Option A-1 Option A-2

Pakhta Arna 30.6 56

Bogyap 5 20

Keltaminor 7 17

Bustan (with functioning Yanbash Canal) 105 80

Bustan (without functioning Yanbash Canal) 130 105

The table was designed by PIU consultants and presented in Feasibility Study

The scope of construction work for this option would involve the following elements:

West section of Bustan Canal:

Construction of 34 km of canal predominantly through agricultural land.

This is a completely new construction;

The head flow of this section of the canal is 55 m3/s;

This would include small hydraulic outlet structures and two major canal

structures;

There would be 17 road bridges, two pedestrian crossings and 9 culverts,

four of which are major collectors;

A tail escape will be constructed to the river by undertaking minor re-

profiling works of the shorter Nayman Beshtam Pump Station inlet channel.

Pakhta-Arna trunk system:

The area south of Bustan Canal will require significant fill works to change

the section to suit the new significantly lower discharge;

A new tail escape will be constructed for the RBC from PK 38,

approximately with a length of 1.75 km to the river through farmland having

a flow rate of 60 m3/s in order to maintain a minimum flow in the RBC.

East Section of Bustan Canal:

Construction of 35 km of canal, 25 km of which is through desert;

The canal would have a head flow of 105 m3/s;

An existing 55 m3/s earth channel has been constructed on this route, but

this requires significant re-profiling to suit the new hydraulics;

This proposed channel would be concrete lined, and incorporate adequate

under-drainage;

There are three major hydraulic structures.

There is no need in measures on additional resettlement and compensation activity for East

section of Bustan canal. The territory of bed of the canal and alienation zone, where there are

no residential building and farmers’ areas under crop.


2.2 RAP COMPONENETS

It will required acquisition of land for the Bustan canal construction works, the length of the

canal will be 35 km and the width – 22 m as well as the area of 50 m to the right and 50 m to the

left of the canal will be seized as the canal site. In the course of designing of the project it was

determined that involuntary resettlement of persons living within the project area would be an

inevitable measure. Thus, the PIU (Project Implementation Unit) has prepared comprehensive

list of farms and households affected by construction activities in order to carry out resettlement

and compensation activities. Hence, the group of socio-economic evaluation carried out a socio-

economic survey of households whose land should be seized. All farmers and households were

notified of the project and its possible effect (acquisition of land). The comprehensive

Resettlement Action Plan (RAP) was elaborated for the project as well.

The implementation of the RAP includes the following steps:

1. Collection of basic data which are necessary for preparation of the RAP:

a) Overall census of landowners and their family members (temporarily or

permanently living on land parcel);

b) Overall inventory of affected assets like e.g. land, infrastructure, crops and trees;

c) Calculation of losses for each household

d) Analysis of laws describing the valuation, allotment and acquisition of land;

e) Analysis of valuation, allotment and acquisition of land standard procedures;

f) Documentation describing measures minimizing acquisition of land/resettlement

procedures; and

g) Final results of compensation for damages to affected persons.

2. Elaboration of the layout of affected property, houses and other constructions, also

trees vegetation, map covering project works;

3. Identification and determination of alternatives that minimizing allotment of land,

resettlement and relocation procedures before Project implementation;

4. Planning and realization of a participatory program that involves beneficiaries in

elaboration of conceptual models, planning, realization and assistance;

5. Preparation of the resettlement strategy;

6. Description of rights for each affected person and determination that resettlement

implementation will be based on special regulations of the RAP. Description of

valuation methods for affected constructions, land, trees and other assets, and

preparation of legislation principles, such as redress of grievances and appeal

mechanisms;

7. Preparation of the RAP authorization and its policy matrix;

8. Realization of meetings for RAP implementation, including project implementation

agencies, nongovernmental organizations (NGO) and other appropriate

organizations;


9. Calculation of budget for implementation of the RAP, including administration costs,

consulting services, equipment expenditures and compensation of losses such as

land, houses, trees and other properties; and

10. Definition of alternative options in order to avoid any delay in Project

implementation;

11. Griverance redress mechanism;

12. Monitoring arrangements.

Thus, the implementation of the Project will require physical resettlement that will create

potential social and environmental issues. These problems will be fixed by national security

measures, including situations where private property (houses, garden) may be lost as a result

of the canal construction. Local authorities will study the measures to minimize the negative

affect of potentional problems by conducting the activity on lowering of losses of resettlement

and land acquisition in accordance with legislative of RUz. However, mostly people living in the

rural area of the project zone will gain from the implementation of the project.

2.3 MEASURES APPLIED TO MINIMIZE RESETTLEMENT AND ACQUISITION OF LAND

There were applied efforts to minimize adverse effects of the project in order to prepare the

RAP corresponding to the WB Involuntary Resettlement requirements. Thus, the following

measures were applied:

1. All possible project land alternatives, especially non-agricultural land, badlands and

agricultural land of poor quality were explored for construction purpose;

2. To minimize cases to avoid land acquisition within the agricultural land the necessity

of maximal conservation of extremely precious fertile land, architectural and in-farm

territory organization; advancement and conservation of the ecological system;

preservation of soil against erosion and swamping was taken into consideration;

3. The selection of land parcels was based on the principle to minimize or avoid

unreasonable demolition of houses and constructions, particularly dwelling houses,

and avoid inconveniences for water, pipeline and network exploitation;

4. It was determined presence of buildings and constructions, houses, including illegally

constructed, underground pipelines and networks, composition of households

located at the seized land;

5. It was determined the amount of losses on owners, users and tenants of land due to

acquisition (buyout) of their land;

6. It was determined the necessity and ways of revegetation of affected land (for

agricultural, forestry, fishery or other purposes), removal of fertile soil; and

7. It was determined the order of acquisition of land belonging to owners, users and

tenants.


CHAPTER III THE MAIN PRINCIPLES AND OBJECTIVES OF THE

RESETTLEMENT ACTION PLAN

3.1 THE MAIN PRINCIPLES OF THE RESETTLEMENT POLICY

In compliance with the WB policy OP 4.12 (Involuntary Resettlement), all possible measures

were applied by the Feasibility Study Team in order to reduce impacts on residential areas

and/or on immovable property, and minimize physical resettlement as a result of the Project

activities. Similarly, the temporary use of land will be minimized through screening of

rehabilitation options and continuous monitoring procedures during the construction period.

The Feasibility Study indicates that the subprojects will require insignificant amount of

permanent allotment of land, displacement of households and existing settlement infrastructure;

there may be some, but minimal, temporary occupation of land for the completion of the works.

As possibilities of adverse economic displacement impacts on people still exist, RAP was

developed in accordance with the WB policies on Involuntary Resettlement.

The main objectives of the given RAP is to provide all stakeholders with information on main

procedures of acquisition of land and compensation as well as adequate assessment of PAP

assets in compliance with legislative of the Republic of Uzbekistan and the WB policy.

Besides that several principles will guide Project implementation

1. It is essential to minimize rehabilitation works that will cause physical displacement

(resettlement); all these works will decrease adverse impacts on homes and

infrastructure;

2. Allotment of land on continuing basement should be minimized during the planning

period;

3. It is also necessary to implement additional measures in order to inform

farmers/households about forthcoming construction/rehabilitation works so that

damage on standing crops can be minimized;

4. Every effort will be made to limit the number of construction and rehabilitation works

on the territory of dekhkan farms (inside and outside villages); If it is impossible to

avoid construction works on the territory of dekhkan farms outside of the settlement

areas, affected land and standing crops/trees should be compensated;

5. The amount of damages to leaseholders and to dekhkan farmers for affected crops

and trees will be determined by retail market prices;

6. Indemnity of farmer’s losses should be advertised widely and in a transparent

manner, involving, among others, the Water User Association (WUA)

representatives;

7. Farmers and households should have an opportunity to assert their claims and

should make an effort to gain compensations;

8. Implementation of RAP policies outlined here will be monitored not only internally by

PIU but by Independent Panel of Experts, composed of three members; and

9. Compensation will be fully offset to the injured parties before starting of any

construction and rehabilitation works.

3.2 OBJECTIVES OF THE RESETTLEMENT POLICY

Main objectives of the structure of the resettlement policy are:


1. Ensure implementation of all recommendations and principles during the term of

construction, restoration, and rehabilitation/repair works;

2. Provide a basis for consultations with relevant parties concerned;

3. Enable farmers and households to have firm knowledge of their rights and obligations;

4. Guide affected groups to raise their claims through appropriate channels; and

5. Ensure monitoring of compensation procedures.


CHAPTER IV SOCIECONOMIC STUDIES

4.1 RESULTS OF THE INVENTORY OF THE AFFECTED PEOPLE ASSETS

According to the inquiry No DIWIP/SKWRMIP/Con/2 dated 27.10.2011 about providing

electronic and paper copies of DIWIP maps, PIU provided all essential data related to the

projecting Bustan and other canals (Option A-2 in ToR). That information made it possible not

only to prepare and conform the final map of Bustan canal (Annex 1).

Census and assessment of PAP assets was carried out by an independent appraisal company

"MEZON BAHOLASH" Ltd. registered at the address: 6, Tashkent district, Urgench city and

having a license RR0146 dated 10.10.2011 for the right to exercise assessment. The appraiser

Masharipov Rakhim, who carried out assessment of affected assets, has the certificate №00291

on the right to exercise assessment issued by the State Property Committee of the Republic of

Uzbekistan on 02.12.2008. A detailed inventory of project-affected households and the

calculation of their losses (constructions, trees and other crops) will be enclosed with the report.

The primary assessment of PAP assets was carried out in December 2011 and January 2012.

Thus, assessment identified 82 households, namely 63 houses, 12 incompleted construction

projects, 2 foundations, one uninhabited house, a garage, a hen house, a petrol station, and a

service station. The total value of the affected assets according to the market value calculation

is about 5 712 186 714 Uzbek sums or 3 159 098 US Dollars at the rate of the Central bank

(CB) of the Republic of Uzbekistan on 24.01.2012.

So, the average cost of one household constitutes about 64 921 643 Uzbek sums or 35 905 US

Dollars at the rate of the Central bank (CB) of the Republic of Uzbekistan on 24.01.2012. The

minimum cost of one household is 15 466 641 Uzbek sums or 8554 US Dollars, which consists

of the impoverished house made of threadbare and cheap building materials, the shed and

neglected homestead land. The maximum cost of one household is 501 358 532 Uzbek sums or

277 274 US Dollars, which consists of two newly built houses, the garage, paths, the fence, the

metal gate and the adjoining land plots.

The primary assessment of value of compensation (on the basis of market rate of property

value) for specified 82 PAP was carried out in December 2011 and January 2012.

Results of the primary assessment of PAP are listed in the table 2. Assessment was carried out

by appraiser on the basis of the market value by means of application of cost-is-no-object

approach.

Table 2 Summary list – assessed value of PAP

Summary list of assessed PAP

The total area of the project-affected territory (construction of Bustan canal) is 427 ha,

namely:

335 ha is irrigated agricultural land and gardens (trees);


75 ha are non-irrigated land and roads.

№ Registration

number

Name of

the object

Total area,

m2

Objects Amount of

money

Transitiona

l

Total,

Uzbek


allowance13

, Uzbek

sums

sums

1 DK01-081 Household

14

2220.0

Dwelling house with

tent, adjoining land

plot (tomorka), clay

garage, clay shed

with tent

52 481 430 357 159.54 52 939 041

2 DK 01-080 Household 1800.0

Dwelling house with



garage, clay shed

with tent, toilet, clay

shed, concrete path

103 893 954

357 159.54 104 351 565

3 DK 01-079 Household 2400.0

Dwelling house,

adjoining land plot

(tomorka), clay

shed with tent,

concrete path,

75 447 591 357 159.54 75 905 202

4 DK 01-078 Household 2400.0

Dwelling house with



shed with tent,

toilet, concrete

path.

109 508 439

357 159.54 109 966 050

5 DK 01-084 Household 2400.0

Dwelling house,

adjoining land plot

(tomorka), strip

house footing, clay

storage, clay shed

with tent

68 103 388 357 159.54 68 560 999

6 DK 01-077 Household 2400.0

Dwelling house,

adjoining land plot

(tomorka), storage,

shed

87 351 608 357 159.54 87 809 219

7 DK 01-076 Household 2550.0

Dwelling house with


plot (tomorka),

garage, shed,

fence, storage.

45 499 099 357 159.54 45 956 710

8 DK 01-075 Household 1291.0

Dwelling house with



garage ,clay

storage, clay shed,

clay fence

74 740 994 357 159.54 75 198 605

9 DK 01-116 Household 2400.0

Dwelling house with


plot (tomorka),

garage , dwelling

house 2, inside

paths, clay shed,

metal gates

501 358 532

357 159.54 501 816 143

10 DK 01-105 Household 1300.0 Dwelling house with

tent, adjoining land 40 897 280 357 159.54 41 354 891

13 Transitional allowance is Lump sum

14 Househol d includes all the objects in the territory of owner : dwelling house, domestic constructions, including

bathhouse, yard , hen house etc. as well as agricultural plots – gardens.



shed

11 DK 01-099 Household 4016.0

Dwelling house with


plot (tomorka),

storage and clay

shed.

90 323 177 357 159.54 90 780 788

12 DK 01-100 Household 2879.0

Dwelling house with


plot (tomorka), two

storages, garage

for two cars,

building where mill

was constructed,

clay shed

144 264 478

357 159.54 144 722 089

13 DK 01-134 Household 2481.0

Dwelling house,

two tents, 5 clay

sheds and clay

shed

65 537 064 357 159.54 65 994 675

14 DK 01-133 Household 1549.0

Dwelling house with


plot (tomorka)

77 116 974 357 159.54 77 574 585

15 DK01-101 Household 1821.04

Dwelling house,

adjoining land plot

(tomorka), garage, brick fence, clay

shed with tent, clay

shed

90 865 106 357 159.54 91 322 717

16 DK01-118 Household 2095.0

Dwelling house with



shed

35 220 174 357 159.54 35 677 785

17 DK01-115 Household 2095,0

Dwelling house with



shed

58 123 521 357 159.54 58 581 132

18 DK01-125

Incomplete

d

constructio

n

2095.0

Dwelling house,

adjoining land plot

(tomorka)

29 943 959 357 159.54 29 943 959

19 DK01-094 Household 2110.0

Dwelling house with

tent and adjoin land


shed

83 139 629 357 159.54 83 597 240

20 DK01-096 Household 2957.0

Dwelling house

adjoin land plot

(tomorka), storage

and kitchen

86 192 315 357 159.54 86 649 926

21 DK01-095 Household 2950.0

Two dwelling

houses with tent,

adjoin land plot

(tomorka) and shed

83 998 493 357 159.54 84 456 104

22 DK01-093 Household 3354.0

Two dwelling

houses and adjoin

land plot (tomorka)

66 135 495 357 159.54 66 593 106

23 DK01-097 Household 2666.0

Dwelling house and

adjoin land plot

(tomorka)

51 126 671 357 159.54 51 584 282

24 DK01-091 Household 1595.0 Dwelling house and

adjoin land plot 62 043 282 357 159.54 62 500 893


(tomorka), storage

25 DK01-089 Household 2443.0

Dwelling house and

adjoin land plot

(tomorka), tent,

storage, and clay

shed

79 754 139 357 159.54 80 211 750

26 DK01-090 Household 3500.0

Dwelling house with



shed with tent,

storage, clay shed

57 953 542 357 159.54 58 411 153

27 DK01-058 Household 2400.0

Dwelling house with



shed, clay shed

59 186 555 357 159.54 59 644 166

28 DK01-064

Incomplete

d

constructio

n

2400.0

Dwelling house and

adjoin land plot

(tomorka)

27 030 449 357 159.54 27 030 449

29 DK01-060 Household 2400.0

Dwelling house and

adjoin land plot

(tomorka), shed

36 332 730 357 159.54 36 790 341

30 DK01-062 Household 2719.0

Dwelling house and

adjoin land plot

(tomorka), tent,

shed

87 057 391 357 159.54 87 515 002

31 DK01-059 Household 3233.0

Dwelling house and

adjoin land plot

(tomorka), tent,

shed

89 005 548 357 159.54 89 463 159

32 DK01-061 Household 5488.0

Dwelling house and

adjoin land plot

(tomorka), tent, clay

shed, storage

94 445 245 357 159.54 94 902 856

33 DK01-063 Household 2400.0

Dwelling house and

adjoin land plot

(tomorka)

15 466 641 357 159.54 15 924 252

34 DK01-074 Household 1800.0

Dwelling house,

adjoining land plot

(tomorka), storage,

shed

64 656 587 357 159.54 65 114 198

35 DK01-072 Household 1800.0

Dwelling house,

adjoining land plot

(tomorka), storage,

shed

65 737 641 357 159.54 66 195 252

36 DK01-073 Household 1800,0

Dwelling house,

adjoining land plot

(tomorka), toilet,

shed, clay shed

57 916 080 357 159.54 58 373 691

37 DK01-071

Incomplete

d

constructio

n

1800.0

Dwelling house with


plot (tomorka)

47 910 736 357 159.54 47 910 736

38 DK01-067 Household 800.0

Dwelling house and

adjoin land plot

(tomorka), shed

26 098 366 357 159.54 26 555 977

39 DK01-066 Nondomest

ic house 600.0

Dwelling house and

adjoin land plot

(tomorka)

9 536 052 357 159.54 9 993 663


40 DK01-070 Household 2400.0

Dwelling house with

tent, adjoin land

plot (tomorka),

shed

78 275 825 357 159.54 78 733 436

41 DK01-069 Household 2400.0

Dwelling house with


plot (tomorka),

shed

52 847 637 357 159.54 53 305 248

42 DK01-068 Household 2400.0

Dwelling house with


plot (tomorka),

shed

43 413 124 357 159.54 43 870 735

43 DK01-082

Incomplete

d

constructio

n

1586.0

Dwelling house,

adjoining land plot

(tomorka)

47 837 893 357 159.54 47 837 893

44 DK01-083 Household 1 600.0

Dwelling house,

adjoining land plot

(tomorka)

60 434 690 357 159.54 60 892 301

45 DK01-086 Household 1600.0

Dwelling house with


plot (tomorka)

93 062 847 357 159.54 93 520 458

46 DK01-088 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

51 178 813 357 159.54 51 636 424

47 DK01-085 Household 1200.0

Dwelling house,

adjoining land plot

(tomorka), shed

54 798 698 357 159.54 55 256 309

48 DK01-055 Household 2153.0

Dwelling house,

adjoining land plot

(tomorka), storage

74 646 524 357 159.54 75 104 135

49 DK01-087 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

60 527 737 357 159.54 60 985 348

50 DK01-111 Hen

house15

2879.0 Hen house with tent 49 345 453 357 159.54 49 345 453

51 DK01-137 Service

station 1300.0

Complex of

buildings

1. Two-storeyed

station of

domestic service

and sewing

workshop

2. Technic

maintenance

service

3. Building of

technical service

of cars and other

buildings

174 605 322

357 159.54 174 605 322

52 DK01-056 Petrol

Station 1000.0

Building of

operator, small

temporary use

building structure ,

area of petroleum

40 925 697 357 159.54 40 925 697

15 Hen house is a free-standing construction. Its owener is engaged in poultry breeding. He does not live in it’s

neighbouring territory.The construction includes the hen house and a roof. There are fruit and ornamental trees.


reservoirs, storage,

metal gates, wood

toilet, brick fence,

adjoining land plot

53 DK01-057 Machine

tractor park 3329.0

Complex of

buildings and

facilities for repair

and service of

farming machines

338 558 793

357 159.54 338 558 793

54 DK01-092

Incomplete

d

constructio

n

3200.0

Dwelling house,

adjoining land plot

(tomorka)

24 875 585 357 159.54 24 875 585

55 DK01-065 Household 1586,0

Dwelling house

with tent, adjoining

land plot (tomorka),

storage, garage,

shed, toilet

106 636 894

357 159.54 107 094 505

56 DK01-102 Household 1300

Dwelling house with


plot (tomorka),

plantation

54 154 334 357 159.54 54 611 945

57 DK01-113 Household 1300.

Dwelling house,

adjoining land plot

(tomorka), shed

and plantations.

41 004 167 357 159.54 41 461 778

58 DK01-114 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka) and

plantations.

49 621 722 357 159.54 50 079 333

59 DK01-120 Household 1300,05

Dwelling house,

adjoining land plot

(tomorka) and

plantations.

92 095 168 357 159.54 92 552 779

60 DK01-126 Household 1300.0

Dwelling house with


plot (tomorka),

storage

95 066 552 357 159.54 95 524 163

61 DK01-103 Household 1300.0

Dwelling house with


plot (tomorka) and

plantation

73 761 365 357 159.54 74 218 976

62 DK01-108 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

72 987 767 357 159.54 73 445 378

63 DK01-135 Household 1300.0

Dwelling house with


plot (tomorka)

35 306 953 357 159.54 35 764 564

64 DK01-131 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

25 868 655 357 159.54 26 326 266

65 DK01-132 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka), storage

28 044 296 357 159.54 28 501 907

66 DK01-122

Incomplete

d

constructio

n

1300.0

Dwelling house,

adjoining land plot

(tomorka)

35 041 486 357 159.54 35 041 486

67 DK01-124 Household 1300.0 Dwelling house, 56 102 907 357 159.54 56 560 518


adjoining land plot

(tomorka)

68 DK01-123 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

85 031 794 357 159.54 85 489 405

69 DK01-129

Incomplete

d

constructio

n

1300.0

Dwelling house,

house footing,

adjoining land plot

(tomorka)

73 654 579 357 159.54 73 654 579

70 DK01-109

Incomplete

d

constructio

n

1300.0

Dwelling house,

house footing,

adjoining land plot

(tomorka)

52 923 624 357 159.54 52 923 624

71 DK01-107 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

46 783 402 357 159.54 47 241 013

72 DK01-128 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

49 824 588 357 159.54 50 282 199

73 DK01-104 Household 1300.0

Dwelling house with


plot (tomorka)

32 922 600 357 159.54 33 380 211

74 DK01-121 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

55 199 624 357 159.54 55 657 235

75 DK01-112

Incomplete

d

constructio

n

1300.0

Dwelling house,

adjoining land plot

(tomorka), clay

shed

28 089 303 357 159.54 28 089 303

76 DK01-127

Incomplete

d

constructio

n

1300.0

Dwelling house,

adjoining land plot

(tomorka)

46 827 404 357 159.54 46 827 404

77 DK01-106 Foundation 1300.0

Dwelling house,

adjoining land plot

(tomorka)

6 825 025 357 159.54 6 825 025

78 DK01-110 Foundation 1300.0

House footing,

adjoining land plot

(tomorka)

13 519 487 357 159.54 13 519 487

79 DK01-130 Household 1300.0

Dwelling house,

adjoining land plot

(tomorka)

30 983 769 357 159.54 31 441 380

80 DK01-119

Incomplete

d

constructio

n

2879.0

Dwelling house with


plot (tomorka), two

storages, garage

for two cars,

building where mill

was constructed,

clay shed

52 431 712 357 159.54 52 431 712

81 DK01-117

Incomplete

d

constructio

n

1300.0

Dwelling house,

adjoining land plot

(tomorka)

34 976 471 357 159.54 34 976 471

82 DK01-136 Household 1300.0

Dwelling house,

house

footing,cadjoining

land plot (tomorka)

60 478 991 357 159.54 60 936 602


Total in

Uzbek sums 5 682 899 632 29 287 082 5 712 186 714

Total in US

Dollars 3 142 901 16 197 3 159 098

The table was worked out on the basis of the PAP assessment reports

Thus, this information allows identifying individuals living within the project area and will be

affected by construction works. However, it should be noted that illegally built constructions

were not found by appraiser within the project area. Hence, all project-affected structures were

assessed in accordance with the National Standards for Property Assessment and it is

stipulated full compensation for its damage respectively.

On the other hand, assessment is essential for the authorized project-affected people that will

allow them getting alternative land plots to construct new houses or equivalent to households

constructions (an apartment or house).

Local khokimiats are ready to support PAP who will involuntarily resettle.

According to the World Bank policy lump sum transitional allowance will be paid to all PAP. The

amount of compensation is specified in Table 2 Summary list – assessed value of PAP assets.

Households will be provided with equal land in the neighboring villages /communities, where

there is infrastructure. Local authorities will assist them with the improvement and connection to

existing communications (water, electricity and gas).

4.2 RESULTS OF THE ASSESSMENT OF THE PROJECT-AFFECTED AGRICULTURAL

LAND

After examination of the project area it was identified that construction of the new canal would

cover the area of 35 km in length and 122 m in width, 22 m is width of this canal and 50 m is the

alienation area to the right and to the left sides of the canal (Annex 1).

Agricultural land plots that would be expropriated as a result of the construction works consist of

different types of crops and trees. Thus, the cotton and wheat are prevalent among crops and

mulberry trees are prevalent among gardens, although apple and peach are rather spread

within the territory as well.

Mulberry trees are rather precious species of trees for country people due to the range of

various reasons. First of all, it is known that dense timber of these trees is used for production of

various handicrafts, furniture and instruments, besides these trees are valuable for silkworm

breeding industry. In addition, these species are light-demanding, drought-resisting, winter

hardy as it can bear 30-32 degrees of frost. Even though mulberry trees are undemanding to the

soil, they are not able to stand wetlands, grow fast and long-lived (200-300 years).16

Mulberry trees are known not only for its undemanding qualities, but also for its industrial value.

So in the countryside, these trees are used for reducing the water table and maintenance it at

16http://sadisibiri.hop.ru/tuta.html


the appropriate level (natural drainage). Therefore cultivation of mulberries around the planted

area and use of the other vegetation appropriate to the environment are rather effective.

Mulberries are basis not only for silkworm breeding, but for protection soil from erosion, drought

and function as natural drainage.17

Concerning cultivation of trees, mulberries should be planted at a distance of 5-6x4-6 m of one

another, as its crowns rather big. According to estimates of specialists, the number of

mulberries makes up 7000 species within the project area. As these trees are strategic for silk

development on the territory of Beruni, Turtkul and Ellikkala Districts, payment of compensation

for its damage should be applied. The amount of compensation would constitute about

280 000 000 Uzbek sums.

The total area of the project-affected territory (construction of Bustan canal) is 427 ha, namely:

335 ha is irrigated agricultural land and gardens (trees);


75 ha are non-irrigated land and roads.

As regards protection of the rights and interests of PAP, compensation for damages to land

tenants, lease holders, landowners and land users is stipulated. In case of acquisition and

temporary occupation of land, payment of compensation would correspond to the legislation of

the Republic of Uzbekistan and the WB OP 4.12 regulations.


constructions, trees, assets of the equal value are provided and damages related to acquisition

are compensated to them.

In addition, khokimiyats of appropriate region (city) must notify owners of residential, production

and other types of buildings, constructions and plantations of the made decisions in written form

under their signature not later than six months prior to demolition and attach to notification

copies of the appropriate decisions of the Council of Ministers of the Republic of Karakalpakstan

and regional and Tashkent city khokims on the land allotment, demolition of residential,

production or other types of buildings, constructions and plantations located on the land plot.

Acquisition of land would be possible only after payment of compensation to PAP that would

allow avoiding some conflicts and grievances.

Thus, legislation of the Republic of Uzbekistan and the WB policy support interests and provide

protection of rights of land tenants, leaseholders, landowners and land users.

4.3 EXPROPRIATION OF LAND ALONG THE SECONDARY CANALS (preliminary

calculations)

Besides temporary and permanent expropriation of land along the Bustan canal, it will required

acquisition of land along the secondary canals of the system as well that was determined during

the project elaboration.

Consultant will prepare preliminary assessment of the cost of the potential resettlement among

the secondary canal which are not included in RAP (mathematical calculations are not

17http://xorazm.uz/rus/ekologiya/

http://xorazm.uz/rus/ekologiya/


presented in total cost of RAP, but will be calculated in addition). Separate RFP will be prepared

after detailed design of secondary canals and other objects in construction zone in RAP.

So, for the secondary canals, detail design will be carried out during the first few years of the

project. It is expected that where new canals are bordered by farmland, new canals could be

constructed off-line, and existing canals filled. This would simplify the construction. However,

this would not be feasible where the canals’ banks are lined with houses, gardens or other

constructions, or where the horizontal alignment needs to be retained for bridges/aqueducts etc.

Thus, it will be necessary to calculate the value of the affected property along secondary canals

and to pay compensation to the project-affected persons prior to commencement of construction

works. At the moment, it is impossible to estimate the cost of expropriated assets along these

canals due to lack of its engineering data (width, length and location). Besides that the land

area required for construction works varies depending on the canal flow rate (and width).

At present it is impossible to count up approximate cost of withdrawn property along secondary

canals because of lack of technical parameters of these canals (width, length and location) as

the area of land necessary for these construction works varies depending on consumption of the

canal and requires determination. Adjusted cost index will be available only at the stage of

preparation of detailed design of secondary canals during implementation of the project.

Preliminary estimates which will be reconsidered and detailed during implementation of the

project and assessment are described below.

However, it is possible to determine mathematically the calculated value of real property for 1

ha. So, we can calculate the cost of 1 ha on basis of the average cost of one household located

within the expropriated area of the Bustan canal (35 km), which constitutes 64 921 643 Uzbek

Sums or 35 905 US Dollars at the rate of the CB of the Republic of Uzbekistan on 24.01.2012.

As a result of independent assessment of the project-affected households by experts, it was

identified that 79 households were located on the expropriated area of 426,4 ha of the Bustan

Canal. Consequently, one object of real property accounted for 5 ha of land, then the average

value of 1 ha accounts 12 984 329 Uzbek Sums or 7181 US Dollars at the rate of the CB of the

Republic of Uzbekistan. Hence, knowing the amount of hectares accounted for the expropriated

area of secondary canals, in that case 4 000, it will be possible to estimate the cost of

immovable property located along these canals. Hence, these costs constitute 51 937 316 000

Uzbek Sums, that equal to 28 723 691 US Dollars at the rate of the CB of the Republic of

Uzbekistan. However, taking into account that secondary canals will be reconstructed, but not

newly built as Bustan Canal, then the damage for project-affected households will be much less.

Hence, according to approximate calculation compensation payments may constitute 10 per

cent of the estimated value that equals to 5 193 731 600 Uzbek Sums or 2 872 369 US Dollars.

Also, this indicator is not absolute as the density of households’ location substantially differs

from place to place.

4.4 PROJECT’S IMPACT ON EMPLOYMENT RATE

Important factor at realization of optimum option of construction and reconstruction of Bustan

canal and other canals in the territory of project raions is the stop of operation of three pump

stations – Dustlik PS, Kilchinak PS and Nyman-Beshtam PS. The Retrechement Framework is

presented in Annex 2 of the Resettlement Policy Framework.


4.5 GENERAL DEMOGRAPHIC AND SOCIO-ECONOMIC SITUATION OF THE PROJECT

AREA

4.5.1 Population

The population of the project area has grown for the last five years. So, natural increase made

up nearly one per cent due to the growth of the number of young families (3%), as its spouses

were born during a baby boom of the 80s-90s. However, the birth rate significantly decreased in

settlements.

Diagram 1 Natural growth of population

Source: The State Committee of the Republic of Uzbekistan on statistics

Besides that, the growth of in-migration, where inhabitants of the desert zone move to the

arable zone, affects the number of rural population. For instance, the population of the

Enboshkala village decreased by nearly 50 %, as it removed to the water. The main reason of

such changes is water supply problems due to Enboshkala is the most remote village of the

canal ending and water do not reach it.

Moreover, the population of the villages is falling down that so many people are going to the

cities. The situation is caused by unsatisfactory quality of irrigation, employment rate, income

level and poor quality of infrastructure (gas, electricity, etc.).


Diagram 2 The number of rural and urban population in thousand people of Turtkul, Ellikkala and Beruni regions


Also, the growth of economic migration, particularly migration of young men aged 16 to 45, is

one of the most common reasons of the structure of the population change. As a result, the

share of the most vulnerable strata of the population (women, children and elderly persons) is

increasing.


Diagram 3 Migration of the project area


Emigration of ethnic Kazakh that represents ethnic minority in the Republic of Karakalpakstan is

growing now.

Despite the fact that supply of tap water to rural dwellers has improved, the quality of this water

has worsened. Hence, various diseases and shortening life span have become serious

problems in these regions.

4.5.2 Labor activity of the regions

Labor market has decreased significantly for the last years. Most men, particularly skilled

workers (machine operators and technicians), migrate abroad or to other regions of the country

in order to earn money and maintain a family. The situation has occurred because of the low

salaries within the regions’ area and it creates deficiency of specialists who are able to exploit

farm machinery.

Thus, supply of female labour is excessively growing that prompts women to do low-paid

manual and seasonal work (cotton cultivation) and to perform men’s work (irrigation and

drainage maintenance).

According to the statistics, the unemployment rate is very low within the project area. However,

a considerable part of the population is occupied in seasonal and casual work that does not

provide them with comfortable income.

Even though, a job center and entrepreneurs offer a job to the unemployed, they decline this

offer because of poor wages that do not cover cost of travel and meal.


Table 3 The number of registered unemployed and economically active population in

thousand people within the project area

Years

Beruni region Turtkul region Ellikkala region

Registered unemployed

Economically active

population


Economically active

population


Economically active

population

2006 0,5 53,1 0,6 57,6 0,3 42,6

2007 0,4 57,0 0,2 62,6 0,1 46,1

2008 0,2 58,2 0,1 63,8 0,1 47,2

2009 0,1 59,5 0,1 64,2 0,1 49,0

2010 0,1 61,1 0,0 66,0 0,1 50,1


The low level of unemployment occurs due to the small number of the unemployed signed on at

the job center and great number of people working abroad or occupied in a part-time job.

4.5.3 Population’s incomes

Lately, the income level growth is observed mostly in villages rather than in towns. First of all, it

is caused by the reason that rural population has the opportunity to grow agricultural products

for own use in their personal parcel of land and sell surplus of products in the market.

The income level has grown for the last five years, particularly due to remittance to households

from abroad, where members of these households make their living. Whereas, the level of the

rise in prices for the agricultural products is lower than fluctuating expenses for fuel, fertilizer

and other things that significantly reduces the profit on agriculture.

Although, nominally real incomes of households grow (nearly 20% per annum) virtually they are

leveled by inflation (approximately 25% annually). Besides, difficulties for cash have adverse

affects on the population as well.

4.6 SOCIAL ASSESSMENT OF THE AFFECTED HOUSEHOLDS

The SKWRIMP will require acquisition of nearly 427 ha of land. The assessment of the affected

households a social survey was carried out in order to identify an attitude of the members of

these households to forthcoming construction works and possible acquisition of their land plots.

Consultations and the survey with persons living within the Project area were carried out by

interviewers, besides that appraiser along with assessment interviewed heads of project-

affected households that allowed revealing their attitude to the Project.

Thus, as a result of the social survey it was defined that nearly 55 per cent of the affected

households located on the territory of Ellikkala District. On the ground of the affected

individuals’ census it was identified that both male and female presented approximately equal

proportions.

Concerning age groups, nearly a quarter of project-affected persons (PAP) is children aged 0 to

10 that comprises the highest proportion compared to the others age groups. Then teenagers

aged 11 to 20 make up approximately 20 per cent, next follows adult persons aged 31 to 40 that

account nearly 15 per cent, whereas other age groups up to 90 years old presented in smaller

proportions.


Moreover, the survey identified the level of education of PAP. So, about 5 per cent of PAP did

not get even primary education, mostly it was people over 70 years old, 10 per cent got basic

secondary education (9 forms), 40 per cent got full secondary education (11 forms). Concerning

specialized secondary and higher education, approximately 5 per cent of PAP graduated from

the vocational technical training, technical secondary school, lyceum or college and 5 per cent

graduated from the university. Besides that, children of preschool age constituted nearly 15 per

cent and students of the school, college, lyceum, institutions of higher education and other

educational institutions comprised 20 per cent.

The social survey defined the level of employment of PAP and the basic fields of their

employment as well. Hence, approximately 2 per cent of PAP had regular work in the

agricultural sector (work at farmer and dekhkan plots not belonging to the family); nearly 5 per

cent had regular work in non-agricultural sector (work for private and public enterprises,

organizations). Even though, 33 per cent of the interviewed PAP living on the territory of

Ellikkala District was unemployed looking for a job, they still considered as economically active

population.

Nearly a half of PAP indicated that they did not have enough money even for purchasing

essential foods, 35 per cent informed that they had money for purchasing essential foods, but

did not have money for purchasing garments and payment of public service bills, 10 per cent

completely provided themselves with essential foods, but could not afford to obtain household

appliances and just 5 per cent were able to obtain household appliances, but could not obtain a

car, flat/house or journey to the other country. So, approximately 90 per cent of all project-

affected households (PAP) were low-income households and remaining 10 per cent –

prosperous. Moreover, 60 per cent of interviewed households indicated that their well-being had

worsened for the last five years, 35 per cent informed that their well-being had not changed and

5 per cent claimed that wellbeing of their households had improved.

Diagram 4 Age groups of PAP

The diagram was worked out on the basis of the social survey of PAP

Summarize the results of the education level of PAP, it becomes clear that the major part

(nearly 45 percent) got full secondary education, 5 per cent finished nine forms, students made

up 20 percent, 15 per cent were children of pre-school age, others either did not finish school (5


per cent) or obtained higher education (5 per cent) or specialized secondary education (5 per

cent).

Concerning the employment rate, the survey of PAP identified unfavorable results. Clearly, that

the share of economically unoccupied population was prevalent and made up 55 per cent,

including children of pre-school age, students, unemployed persons, pensioners. So, remained

45 per cent presented economically active population.


CHAPTER V LEGAL FRAMEWORK

5.1 LIST OF THE RAP-RELATED REGULATIONS OF UZBEKISTAN

This section presents an overview of the Government of Uzbekistan (GoU) codes and

resolutions relevant to resettlement. These codes and resolutions provide a sound basis for the

GoU to acquire for the public needs and for compensating landowners according to the

registered use of the land.

Key laws and resolutions of the Republic of Uzbekistan on land acquisition are following:

Title Type and Date Summary

The Land Code of the

RUz

Code approved by Law of

RUz of 30.04.1998 and

amended on 30.08.2003

and 03.12.2004.

The Code stipulates that all land in

Uzbekistan is state property and

rights for land usage are granted

and monitored by the State via the

district and regional administrations.

The Civil Code of the

Republic of Uzbekistan

Code approved by Law of

RUz December 21, 1995

N 163-I and August 29,

1996 N 256-I in

accordance with the last

law amendment act of

September 22, 2010 N

LRU-260.

The Code stipulates that all rights of

the owner are protected by law and

if there any violations of these

rights, the owner can request

compensation.

Resolution of the Cabinet

of Ministers (RCM) of the

RUz No. 146

25.05.2011 “On measures of improvement of

the order of allotment of land for

town planning and non-agricultural

purposes”

Resolution of the Cabinet

of Ministers (RCM) of the

RUz No. 97

29.05.2006 “On the order of compensation paid

to individuals and legal entities in

case of the land acquisition for the

state and public needs”.

Generally, these regulations provide a sound basis for acquiring land for the state and public

needs and for compensating landowners according to the registered use of the land.

5.2 THE LAND CODE

According to the Land Code, all land in the Republic of Uzbekistan is state property and rights

for land use are granted and monitored by the State through district and region administrations.

National legislation envisages the following types of land transfers: (a) to legal entities for use,

lease, or ownership (only with the objects of services and trade sphere)and (b) to individuals

for lifelong inheritable tenancy (with housing), use or lease. In no case land can be subject to

selling or buying as a separate resource. In case of individuals land is transferred to the new

owner for life tenancy only in case of house selling and cannot be sold separately without


structures on it. The same provision applies to the land used by legal entities, owners of objects

of services and trade sphere.

All land occupied by permanent structures and facilities required under the Project, namely

electric power transmission lines, wells, cross regulators and outlets, water measuring

structures, collectors and related protection zones (‘sanitary zones’) is provided by the

Government through local administrations and will remain the property of the Government upon

completion of the Project.

In case of disposal of agricultural lands, in addition to compensation for damages, the legislation

provides compensation to land users for the loss of agricultural production.

The main articles of the Land Code dealing with resettlement process are the following:

Article 23.Allotmentof land plots

Transfer of land plots to possession and use is realized in form of allotment.

Allotment of land plots is made by the Cabinet of Ministers of the Republic of Uzbekistan,

khokims of viloyats, city of Tashkent, tumans, and cities in the order established by legislation.

Allotment of land plot currently in possession or in use is made only after disposal of the plot in

the established order.

For construction of industrial enterprises, rail and auto road, communication and electricity lines,

main pipe lines and also for other non-agricultural needs, the land of non-agricultural purpose or

the land which cannot be used for agriculture or agricultural land of the worse quality is allotted.

Allotment of land plots from the land resources of forestry, for the abovementioned purposes is

made first of all in the areas without a forestation or areas planted with bushes and low value

plants.

It is forbidden to start tenure and using the allotted land plot prior to the boundary of the plot has

been established by the land management service in life (on the territory) and the document

certifying land plot rights is issued.

The order of allotment of land plots to tenure and use is fixed by the current legislation.

Article 86. Reimbursement (or compensation) of losses to the land tenants, land users,

lessees and owners of land plots

Losses inflicted to the land tenants, land users, lessees and owners of land plots are liable to

full reimbursement (including the lost profit) in the following cases:

withdrawal, buy-out or temporary use of lands;

limitation of their rights in connection with security, sanitary and protection zones

established around the state reserves, game reserves, national parks, monuments of

nature, cultural and historic monuments, water reservoirs, water supply sources, resorts

along the banks of rivers, canals, water throw points, roads, pipe lines, communication

and electricity lines;


deterioration of lands as a result of the impact caused by construction and operation of

water reservoirs, canals, collectors and other objects exuding harmful for agricultural

crops and plantations substances and other actions of legal and physical persons

causing decrease of harvesting and worsening of the quality of agricultural production.

Reimbursement of losses is carried out by enterprises, establishments and organizations to

which land plots are allotted and also by enterprises, establishments and organizations the

activity of which causes limitation of rights of land tenants, land users, lessees and owners of

land plots or deterioration of the neighboring lands in the order established by legislation.

Article 87.Recovery of losses of agricultural and forestry production

The losses of agricultural and forestry production caused by withdrawal of agricultural and forest

lands including agricultural lands in tenure and use by physical persons, for using them with the

purposes not related with running agricultural and forest farming, restriction of rights of land

owners, land users and leasers or deterioration of lands as a result of the influence caused by

the activity of enterprises, establishments and organizations are liable to refunding besides the

recovery of losses envisaged by the article 86of Land Code.

Losses of agricultural and forestry production are recovered by legal and physical persons:

which are allotted the withdrawn agricultural and forest lands for the needs not related

with agriculture and forestry management;

around the objects of which security, sanitary and protection zones are established with

the exclusion from the turnover of agricultural and forest lands or by transferring them

into less valuable lands.

Losses of agricultural and forestry production are not refunded:

in case of withdrawal of land plots for individual housing construction and maintenance

of the house;

in case of withdrawal of land plots for construction of schools, boarding schools,

orphanages, pre-school and medical establishments;

in case of allotment of land plots to water enterprises for the construction of water

reclamation objects and hydraulic structures.

Other cases, when legal and physical persons are exempt from refunding of losses of

agricultural and forest production can be established by legislative acts.

The size and order of defining of liable to refunding losses of agricultural and forest production

are established by legislation.

Article 88. Use of funds received by the recovery of agricultural and forest production

losses

Funds received by refunding of agricultural and forest production losses are used according to

special purpose for:

developing of new lands and complex reconstruction of irrigated lands;

soils fertility increase;


construction and reconstruction of collection and drainage network, capital planning and

increase of water supply of irrigated lands;

radical improvement of hayfields and pastures;

adjustment or making up design and other documents on land management broken in

connection with the withdrawal and allotment of lands.

According to the decision of the khokim of viloyat the funds, identified in the first part of the

present article, can be used for realization of other activities aimed at the increase of agricultural

production. Funds received by recovery of losses of forest production are accounted separately

and used for creation and restoration of forests and forest-fruit plantations, a forestation of

sands, bank side strips of water reservoirs and rivers with forests and also for realization of

other activities aimed at improving of the condition of forest lands.

According to the Article 90 Responsibility for infringement of land legislation, Land Code of

the Republic of Uzbekistan, responsibility according to the law is borne by the persons guilty for

unauthorized occupation of lands besides other violations.

5.3 THE ORDER OF ALLOTMENT OF LAND FOR TOWN PLANNING AND NON-

AGRICULTURAL PURPOSES

The order of allotment of land plots for town planning and other non-agricultural purposes is

determined by RCM of RUz No. 146 of 25.05.2011.

Allotment of land plots is implemented on the basis of application from legal entities and

individuals and consists of two stages:

At the first stage, allotment of land plots, registration of documents on selection of site for the

object planning, agreement of these documents with the interested organizations and approval

of the site by the decision of corresponding public authority;

At the second stage, on the basis of design estimates (hereinafter – construction object)

provided by the legal entity or individual, agreed in the established order, registration of

documents on allotment of land plot and approval of allotment of land by the decision of

corresponding public authority which, in its turn is the reason for issuance of authorization for

construction of object.

Allotment of land plot (hereinafter – land plot) in tenure, use, lease or ownership by legal entities

and individuals for town planning and other non-agricultural purposes is carried out only after

withdrawal of this land in the established order.

Allocation of land plot and preparation of corresponding documents is implemented by the

regional (municipal) architecture and construction department, “Uzdaverloyiha” subdivisions and

land management services.

Preparation of documents on sitting and allotment of land plot on the ground of documents on

allocation of land plot on the territory of settlements is carried out by the regional (municipal)

architecture and construction department, “Uzdaverloyiha” subdivisions and land management

services and on the rest territory by self-supporting service for land management and cadastre

of regional (municipal) estate.


In settlements agreement of documents on sitting and allotment of land plots with the authorized

bodies is carried out by the regional (municipal) architecture and construction department, and

on the rest territory by self-supporting service for land management and cadastre of regional

(municipal) estate in accordance with the “one-window” principle.

Works on sitting of land plots, preparation of documents on sitting and allotment of land plots

are implemented on a contractual basis with legal entities and individuals.

Cost of works is set by the State Committee for Architecture and Construction and the State

Committee for Land resources, Geodesy, Cartography and State Cadastre in accordance with

the Ministry of Finance of RUz.

Determination of the settlement borders is implemented on the ground of approved general

plans and designs of the town (settlement) boundaries as well as corresponding land

management documents in the order established by law.

After approval of the design of settlement borders determining the boundaries of settlements,

agricultural lands are included into the appropriate land of the settlements and ad interim, until

allotment for town planning and other non-agricultural purposes remain in tenure, use and lease

by agricultural organizations.

Lands of rural settlements, located on the territory of agricultural organizations, in case of enter

in the boundary of the city and town settlement are included into the appropriate land of the city

and town settlement in the established order.

Preparation of documents on land location is implemented within the period of not exceeding

one month.

Documents on land location include the following:

1) Documents on object allocation;

2) Layout of land plot borders registered in the established order;

3) Resolutions of organizations where agreement of documents on land location is carried

out;

4) List of displaced families of citizens indicating persons interested in acquiring new land

plots or apartments, as well as list of houses and other constructions subject to

demolition located at the allotted land plot;

5) Act which determines other losses of owners, users, tenants and lessees of seized land

plots and also losses of agricultural and forestry production (as appropriate);

6) Act of technical inspection of allotted land in case of its withdrawal from the tenure of

forestry enterprises (as appropriate);

7) Resolution of the State Ecological Expertise of the State Environmental Committee of

the Republic of Uzbekistan;

8) Resolution of the department of land resources and state cadastre of the rayon/city

(Republic Karakalpakstan) on the correspondence of sited land plot to the land cadastre

requirements;

9) Documents on agreement of data with legal entities and individuals, the land of which is

seized;

10) Approval of resolution of corresponding public authorities (decision of regional khokims

and Council of Ministers of the Republic of Karakalpakstan) on land location.


Diagram 5 Land location for the object planning (allocation of land, preparation and

approval of land location documents) in the absence of town planning documentation

(general plan, RAP )

First stage

1 10

15 16

14 8

2 11 12 13

3

7

9

6

4 5

Legal entity or

individual

_________

Application

Regional (municipal) khomiyat

Consideration

and direction

of application

– 3 workdays

Land location

decision-

making – 3

workdays

Commission onallotment of

regional (municipal) land

Submission of documents on

siting for approval – 3 workdays

Design institute

Construction designing –

within the legislative term

with design supervision by

the regional (city)

department of architecture

and construction

Regional (city) department of

architecture and

construction

Preparation of proposal on

allocation of land plot in all

territories – 10 workdays

Preparation of documents on

siting in settlements – 11

workdays

Self-sustainedservice for

land management and

cadastre of the regional

(municipal) estate

Preparation of documents on

siting outside settlements –

11 workdays

Senior design institute

Agreement of land plot

allocation – 7 workdays

Main department on

architecture and

construction of the region,

Commission on allotment of

land under the Council of

Ministers of the Republic of

Karakalpakstan, khokimiyats

of the regions and Tashkent

city

Agreement of land plot

allocation – 7 workdays


Registration of documents on allotment of land plot is implemented on the basis of documents

on land location and the object construction design agreed and approved in the order

established by law.

Allotment of agricultural land for non-agricultural purposes is implemented as actually needed

and after its harvesting.

Diagram 6 Preparation, agreement and approval of documents on allotment of land plot

and its designing

Legal person or

individual

Application for actual

designing of land plot

Application for allotment

of land plot

Regional (city) department of

architecture and construction or self-

sustained service for land planning

and state cadastre of estate of the

region (city)

Preparation of documents on allotment of

land plot – 15 workdays

Regional (city) khokimiyats

Application direction – 3 workdays

Decision on allotment of land plot

(resolution of the Republic of

Karakalpakstan) – 3 workdays

Commission on allocation of land plots

of the region (city)

Agreement of documents on allotment of

land plot – 3 workdays

Department of architecture and

construction of the region in cooperation

with “Uzgashkliti” state unitary

enterprise offices in the regions (cities)

Designing of borders of land plot withinthe

settlements – 3 workdays

Self-sustained service for land

management and cadastre of the

regional (municipal) estate

Designing of borders of land plot outside the

settlements – 3 workdays


Layout of land plot borders is designed in generally adopted reference characters on a scale

that allows determining the borders with the required accuracy. Borders of land plot are drawn

on the plan of land plot borders. If land plots of several legal entities and individuals are allotted,

then the borders of these land plots are drawn and description of borders by topographic

elements of the area and point coordinates should be provided. Layout of borders is signed by

the heads of departments of architecture and construction of the region (city) and the regional

(municipal) land resources and state cadastre departments.

Documents on the right of use of a land plot are prepared by the self-sustained service for land

management and cadastre of the regional (municipal) estate on the basis of corresponding

public authority decision on allotment of land plot for construction purposes.

Tenants, users, lessees and owners in case of their disagreement with the decision of the

corresponding public authority on allotment (buy-out) of land plot or conditions of its allotment

(buy-out) may appeal in the order established by law.

5.4 THE CIVIL CODE

The right of ownership, in compliance with the Civil Code of the Republic of Uzbekistan, is the

right of a person to possess, use, and dispose of property belonging to him at his own discretion

and interests, and also to request the elimination of any violations of his right of ownership from

whosoever they emanate. The right of ownership is without limit of time.

Basic articles of the Civil Code of the Republic of Uzbekistan related to the resettlement

procedures are:

Article 169. Objects of the Right of Ownership

Land, minerals, water, airspace, flora and fauna and others natural resources, enterprises,

property including buildings, apartments, constructions, equipment, raw materials and

products, money, stocks and other assets, and also intellectual property can be owned.

Article 197. Grounds of cessation of the Right of Ownership

The right of ownership is ceased by voluntary fulfillment of the obligation by the owner,

unilateral decision making by the owner that determines the property’s fate, seizure (buyout)

of property on the ground of judicial decision or legislation act which ceases the right of

ownership.

Article 199. Seizure of the owner property

Seizure of the property from the owner is allowed only in case of charging of property

obligations in cases and order, determined by legislation acts, and also in the order of

nationalization18, requisition and expropriation.

18 Nationalization - alteration or assumption of control or ownership of private property by the state


If the property in the person’s ownership cannot belong to him in compliance with the Law, the

right of ownership to this property is ceased legally with compensation of cost of exempt assets

to the owner.

Article 202.Nationalization

Nationalization is the compensated transfer of the right of ownership to the property being

nationalized, which belongs to individuals and legal entities, the State in accordance with a law.

Article 205. Determination of the Value of Property in case of its Seizure and the Right to

Compensation of Losses

The value of property seized in case of termination of the right of ownership shall be determined

by the valuation organization at the moment of termination of the right of ownership unless

otherwise established by legislation.

Evaluation according to which the value of the seized property is compensated to the owner

may be contested by him in the court.

Owner has the right to request recovery of other losses caused by the seizure of the property.

In turn, evaluation of property is implemented in compliance with the Law of the Republic of

Uzbekistan “On valuation activity” No 811-I of August 19, 1999 and the National standard of the

Republic of Uzbekistan for Property Evaluation developed on the basis of the aforementioned

Law and approved by the Resolution of the State Property Committee No 01/19-19 dated

June 14, 2006.

5.5 THE ORDER OF COMPENSATION PAID TO INDIVIDUALS AND LEGAL ENTITIES IN

CASE OF THE LAND ACQUISITION FOR THE STATE AND PUBLIC NEEDS

The order of compensation paid to individuals and legal entities in case of land allotment for the

state and public needs is determined by the Resolution of the same name approved by the

Cabinet of Ministers of the Republic of Uzbekistan No 97 dated May 29, 2006.

Decisions on land allotment and demolition19 of residential, production and other types of

buildings, constructions and plantations (hereinafter - objects) are made in accordance with the

general layouts and projects of detailed planning and development of housing and

microdistricts, cities and settlements.

Warrantless demolition of residential, production and other types of buildings, constructions and

plantations on the territory of expropriated land plots is not allowed.

Thus, decision on land allotment and demolition of residential, production or other types of

buildings, constructions and plantations is issued by khokims of the appropriate region (city) on

the ground of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan, the

Council of Ministers of the Republic of Karakalpakstan and regional and Tashkent city

khokimiyats.

19 Demolition is the tearing-down of buildings and other structures, the opposite of construction.


Khokimiyats of appropriate region (city) must notify owners of residential, production and other

types of buildings, constructions and plantations of the made decisions in written form under

their signature not later than six months prior to demolition and attach to notification copies of

the appropriate decisions of the Council of Ministers of the Republic of Karakalpakstan and

regional and Tashkent city khokims on the land allotment, demolition of residential, production

or other types of buildings, constructions and plantations located on the land plot.

Once the decision of regional (municipal) khokims on the land allotment and demolition of

residential, production and other types of buildings, constructions and plantations located on the

land plot is made the above indicated houses (apartments), buildings, constructions and

plantations are not subject to alienation to other persons.

Decision of khokim of the appropriate region (city) on demolition of residential, production and

other types of buildings, constructions and plantations and approval of their value, can be

appealed20 to the Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent

city khokimiats, and juridically as well.

The value of illegally built dwelling houses, production and other types of buildings,

constructions is not compensated.

In case of allotment of land plots to enterprises, institutions and organizations, compensations,

provision of houses (apartments) and provision of lodging, as well as offset of all expenses

connected with removal to a new place are provided by these enterprises, institutions and

organizations in accordance with the decision of khokims of the appropriate regions (cities).

The land plots are allotted under the conditions of providing the following types of

compensations:

allocation of other comfortable accommodation house of the equal worth with the living

space not less than social standards of living space and compensation of plantations

losses to citizens;

compensation payments to citizens for demolishing of their houses and other buildings,

constructions and plantations;

allocation of land plot for private housing within the set standards providing lodging on

terms of contract of engagement for period of land plot reclamation (not more than two

years) and compensation of the overall value of demolished houses (apartments),

buildings, constructions and plantations to citizens;

allocation of the property of equal worth and compensation of other damages to legal

entities because of land allotment for the state and public needs;

full compensation of damages caused by land allotment for the state and public needs;

relocation and reconstruction of houses, buildings and constructions belonging to

citizens and legal entities and subject to demolition at a new site;

erection of houses, buildings at a new site and its transfer to the possession of displaced

citizens and legal entities.

20 An appeal is a petition for review of a case that has been decided by a court of law.


The order of calculation of the compensation amount to the citizens and legal entities for

demolition of their houses (apartments), buildings, constructions and plantations by the reason

of land allotment for the state and public needs:

1. Khokimiyats of appropriate regions (cities) set up commission in order to determine the

amount of refunding and type of compensation (hereinafter - commission) headed by the deputy

khokim of the region (city) and composed of finance and other khokimiyat departments

representatives, government supervisor controlling usage and protection of land, institutions of

citizens government, landowners (land users, leaseholders) whose land plots are seized, a

representative of the enterprise, institution or organization to which the land plot is allotted, and

representatives of other competent authorities at khokimiyat’s discretion.

2. Valuation of houses (apartments), buildings, constructions and also perennial plantations

placed on the territory of seized land plots is made by valuation organizations, in this case at the

expenses of WB. Evaluation report is submitted to the commission.

In case of seizure of land plots used by individuals in the capacity of life heritable tenure or

acquired by auction, a new land plot of equal worth with the right of life heritable tenure is

granted to them.

Valuation of the cost of land plot belonging to individuals in the capacity of life heritable tenure

at the moment of its allotment is executed by the departments of land resources and state

cadastre of the regions (cities) and according to current prices at the moment of valuation at the

expense of applicant.

Materials after demolishing of houses (apartments), other buildings and constructions (except

illegal constructions) situated at the seized land plot, remain in possession of the builder or

landowner (land user, leaseholder) who pays full compensation to the owner.

In some cases, if the owner of demolished houses (apartments), buildings, constructions and

plantations wishes to keep materials after tearing down it can be returned to the owner in

accordance with the decision of khokims of the appropriate region (city). In that case, a special

commission should determine the value of returned to the owner materials which will remain

after demolition according to the current market prices taking into account depreciation.

3. Specific terms and order of compensation payments are determined by the decision of the

Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent city khokims

guaranteeing implementation of these compensation payments before starting the demolishing

process.

The order and conditions of allocation of the living space to the owner of demolished

houses.

In case of demolition of citizens’ houses (apartments) in view of land allotment for the state and

public needs, these citizens, their family members and also citizens permanently living in these

houses (apartments) in accordance with their choice and agreement are provided for ownership

with the comfortable houses of equal worth with the living area not less than social living space

standards, and also with compensation of the plantations value or provided with compensation

for demolishing of their houses (apartments), other buildings, constructions and plantations.


Equivalence of provided living space is determined according to the value of the owner’s

demolished house (apartment).

In case of exceeding of the demolished house (apartment) value over the value of the provided

to the owner living space, the difference is compensated.

In order to obtain living space the owner of the demolished house (apartment) after being

notified of forthcoming demolition should submit an application agreed with the family members

and other living together (registered) persons with the request for allocation of living space

instead of the demolished house indicating the number of family members, permanently living

persons and their privilege for obtaining extra living space exceeding social standards of living

space to the khokimiyats of appropriate regions (cities) within one month period.

After approval of the commission decision on the amount and type of compensation, allocation

of the living space to the owner instead of the demolished house (apartment) or provision of

compensation at owner’s will by regional (municipal) khokimiyats, the owner submits guaranty

letter on vacation of the demolished house (apartment) to khokimiyats.

Demolition of the house (apartment) can be implemented after allocation of living space to the

owner instead of the demolished house (apartment) and only in case of agreement of each side.

In some cases, if the owner of the demolished house (apartment) agrees, khokimiyats of the

appropriate regions (cities) allocate them living space in apartment houses under construction,

indicating terms of putting into operation of these houses in corresponding decisions. If the

owner is not provided with living space in the houses under construction within the assigned

time period, regional (municipal) khokimiyats must provide living space within a month.

Transportation of property of the owner of demolished house (apartment) to the new living place

is implemented at the expense of the organization, builder or landowner (land user,

leaseholder), to which land plot is allotted.

Order and conditions of allocation of the land plot for individual housing construction

instead of the demolished house (apartment).

In case of demolition of displaced persons houses (apartments) in view of allotment of land plots

for state or public needs, these individuals, their family members and also persons permanently

living in their houses (apartments) at their will are granted with the land plot for individual

housing within the established standards. In this case lodging is granted to them on terms of

contract of engagement for a period of the land plot development (not more than two years) with

full compensation of the value of demolished houses (apartments), building, constructions and

plantations.

In case of allotment of seized land plots to enterprises, institutions and organizations, allocation

of the land plot for individual housing and compensation payments to the owner of demolished

houses (apartments) are implemented at the expenses of these enterprises, institutions and

organizations.

In order to obtain land plot the owner of the demolished house (apartment) after receiving

notification on the forthcoming demolition should submit an application for allocation of the land

plot for individual housing with indication of the number of their family members, permanently


living persons and also necessity in lodging on terms of the contract of engagement to regional

(municipal) khokimiyats within one month period.

After approval of the commission decision on the amount and type of compensation by regional

(municipal) khokimiyats, the owner provides the letter of guaranty for vacation21 of the house

(apartment) subject to demolition within the determined by the khokimiyats of the appropriate

region (city) period to the khokimiyat.

Demolition of the residential house (apartment) can be implemented only after allocation of the

land plot for individual housing and also provision of lodging on terms of the contract of

engagement to the owner for the period of land plot development (not more than two years).

Order of compensation losses to legal entities in view of the land plots allotment for the

state and public needs.


constructions, plantations belonging to legal entities, assets of the equal value is provided to

them and losses caused by the land allotment for the state and public needs are fully

compensated to them.

Refunding of damages and losses of farming and forestry production to land tenants, land

users, leaseholders, owners of land plots is implemented in accordance with the land legislation

of the Republic of Uzbekistan.

Compensation of legal entities losses caused by seizure of the land plot is implemented by the

khokimiyats of the appropriate region (city).

In case of allotment of the seized land plots to enterprises, institutions and organizations,

compensation payments, allocation of dwellings, provision of lodging and transportation of

property to a new place are implemented at the expense of these enterprises, institutions and

organizations in accordance with the decision of khokims of the appropriate region (city).

In order to receive compensation in view of land plot allotment, the legal entity after having

notice of forthcoming demolition must submit an application with indication of the chosen type of

compensation to the khokimiyats of appropriate regions (cities) within a month.

After approval of the commission decision by regional (municipal) khokimiyats the legal entity

provides the letter of guarantee for vacation of the house, other buildings and constructions

subject to demolition to the khokimiyat within the determined by regional (municipal) khokimiyats

period.

Demolition of residential, industrial and other buildings and constructions possessed by the legal

entity can be implemented only after reconciliation of the type, amount and terms of

compensation with these persons.

Order and conditions of losses calculation in case of replacement and restoration of

houses, buildings and constructions subject to demolition in a new place

21 The act of departing from or abandoning property


At citizens and legal entities will residential, production and other buildings and constructions in

their ownership which are subject to demolition, can be relocated and reconstructed in a new

place.

Relocation and reconstruction of residential, production and other buildings and constructions

owned by citizens and legal entities, are implemented on the ground of the regional (municipal)

khokimiyats decision out of funds of income part of local budgets received in addition to

forecasted quarter outcomes, funds of reserve fund of the budgets of the Republic of

Karakalpakstan, regions and Tashkent city, and/or out of part of allotted funds from

denationalization and privatization of state property, received to the appropriate accounts of the

Council of Ministers of the Republic of Karakalpakstan, khokimiyats of the regions and Tashkent

city, enterprises, institutions and organizations to which land plots are allotted. Meanwhile,

khokimiyats should provide citizens and legal entities, for the period of relocation and restoration

of houses, with lodging on terms of the contract of engagement for period of development of the

land plot (not more than two years).

Relocation and reconstruction of houses, buildings and constructions should be implemented

within the range of the given territory (settlement) on the land plots and provided that the

technical state of residential houses, buildings and constructions allows their relocation, which

means the state of constructions and elements should assume disassembly, transportation and

assembly in a new place.

Commissions should determine the possibility of relocation of houses, buildings and

constructions on the ground of availability of the corresponding feasibility study and design

estimates worked out by specialized Design Institutes at the expense of the builder to which the

seized land plot is allotted.

Relocation and reconstruction of residential, production and other buildings and constructions in

a new place should be implemented within the period (not more than one year) determined by

the khokimiyats of the appropriate regions (cities).

All expenses on relocation and reconstruction in a new place of residential, production and other

buildings and constructions, lodging renting, transportation of the property of citizens and legal

entities to the place of lodging, and also its transportation from temporary dwelling to the

reconstructed house, building and construction in a new place are covered by the builder or

landowner (land user, leaseholder) to which the land plot is allotted and according to the

regional (municipal) khokimiyats decision.

Relocation of residential, production and other buildings and constructions of equal worth

possessed by the legal entity on terms of the contract of engagement to the new place is

implemented only after reconciliation of the type, amount and terms of compensation payments

with it.

Order and conditions of losses calculation in view of construction in a new place of

houses, buildings for the citizens and legal entities houses (apartments) of which are

subject to demolition

For the citizens and legal entities houses (apartments) of which are subject to demolition up to

their will houses and constructions can be erected in a new place and transferred to them for


ownership. Meanwhile, cost of houses (apartments), buildings and constructions subject to

demolition is not compensated.

Erection of houses, constructions in a new place and its transfer to the citizens and legal entities

residential houses (apartments) of which are subject to demolition is implemented by

khokimiyats of the appropriate regions (cities).

In case of allotment of land plots to enterprises, institutions or organizations, erection of houses,

constructions in a new place and its transfer to the citizens and legal entities for ownership

residential houses (apartments) of which are subject to demolition is implemented at the

expense of these enterprises, institutions or organizations.

Erection of houses for the citizens and legal entities houses (apartments) of which are subject to

demolition, at the new place should be implemented within the range of the given territory

(settlement). Meanwhile, citizens and legal entities houses (apartments) of which are subject to

demolition are provided with lodging on terms of the contract of engagement by the khokimiyats

of the appropriate regions (cities) for the period of house construction.

All expenses on lodging renting, transportation of property of the citizens and legal entities to

the lodging and its transportation from the temporary dwelling to the house erected in a new

place, according to the khokimiyats of the appropriate regions (cities) decision are covered by

the builder or landowner (land user, leaseholder) to which the land plot is allotted.

In order to obtain the residential house, construction erected in a new place instead of the

demolished house (apartment), citizens and legal entities houses (apartments) of which are

subject to demolition within one month period after receiving of notification on demolition should

submit the application indicating the number of their family members and permanently living

persons as well as privileges they have for obtaining of living space to the khokimiyats of

appropriate regions (cities).

5.6 DISCREPANCIES BETWEEN NATIONAL LEGISLATIO AND WORLD BANK

REGULATIONS

It was developed Comparison table of legislation of the Republic of Uzbekistan and the WB

policy (Annex #5) which allows three discrepancies (they are taken into account in this RAP).

1. Illegal construction / persons without legal rights on assets;

2. Assessment market rate of the target;

3. Transitional allowance.

The Bank Policy 4.12 will prevail in cases of discrepancies between WB and Uzbekistan

legislation.

In accordance with WB OP 4.12 displaced persons may be classified in one of the following

three categories:

a) persons having formal legal rights to the land plots (including customary and traditional rights

recognized under the laws of the country);

b) persons not having formal legal rights to land plots at the time the census begins but having

claimed their rights to such land or property – provided that such claims are recognized under


the laws of the country or become recognized in the order determined by the resettlement plan;

and

c) persons having no recognizable legal rights and claims with regard to the land plots they are

occupying.

Thus, according to WB OP 4.12 persons who represent categories a) and b) are provided with

compensation for the land they lose, and other assistance as well. Persons who represent

category с) are provided with resettlement assistance instead of compensation for the land plots

they lose, and if required, also other types of assistance required to achieve the objectives

indicated in WB OP 4.12, provided they occupied the project area prior to a cut-off date

established by the borrower and acceptable to the Bank. Persons who took up their residence

on the area after the cut-off date are not entitled to compensation or any other form of

resettlement assistance. The WB OP 4.12 highlighted that particular attention should be paid to

the needs of the most vulnerable groups among those displaced, especially those below the

poverty line, the landless, the elderly, women and children, indigenous peoples, ethnic

minorities, and also other categories of displaced persons whose interests may not be protected

by national legislation with regard to the compensations for the land plots subject to withdrawal.

The Bank Policy 4.12 will prevail in cases of discrepancies between WB and Uzbekistan

legislation.


CHAPTER VI INSTIUTIONAL FRAMEWORK

6.1 GOVERNMENTAL ORGANIZATIONS AND STRUCTURES RESPONSIBLE FOR

RESETTLEMENT ISSUES

According to the legislation of the RUz, the following governmental organizations and structures

are responsible for the resettlement implementation:

The architecture and construction of the region (town) department;

Regional khokimiyats;

The Committee on allocation (realization) of regional land parcels;

The State Committee of the Republic of Uzbekistan on Land Resources, Geodesy,

Cartography and State Cadastre;

The State Committee of the Republic of Karakalpakstan for Architecture and

Construction;

Regional valuation committee;

State Committee of the Republic of Uzbekistan for Nature Protection;

Regional sanitary-and-epidemiologic services;

Regional fire inspection agency.

These institutions have all essential opportunities and authorities for implementation of

resettlement and compensation of losses issues.

Apart from governmental organizations and structures, non-governmental organizations (NGO)

such as Water Users’ Associations (WUA), Farmers’ and Peasant’ households Associations and

makhalla can be involved in resettlement procedures in order to ensure guarantees of rights and

interests of displaced persons.

6.2 LEGAL ACTS REGULATING INSTITUTIONS WHICH ARE RESPONSIBLE FOR THE

RESETTLEMENT IMPLEMENTATION

Procedures, functions and authorities of organizations which are responsible for implementation

of acquisition of land for non-agricultural purposes are determined by the RCM of the RUz No.

146 of 25.05.2011 “On measures of improvement of the order of allotment of land for town

planning and non-agricultural purposes”.

The architecture and construction of the region (town) department:

1) Prepare an offer on allocation of a land parcel with indication its total area, situation of

buildings and constructions, location of pipelines and networks;

2) Prepare documents on allocation of a land parcel (layout of a land parcel, draft of the

general layout of arbitrary scale, photographs (15x20) of a land parcel coupled with

surrounding objects);

3) Matching documents on sitting and conditions of acquisition of a land parcel with legal

entities or individuals whose land plots are seized, with superior authorized bodies

whose land plots are seized, with the land resources and state cadaster, nature


protection, state sanitary and fire inspection committees, if a land parcel located at

irrigated areas then with agricultural and water resources committees;

4) Prepare:

a. documents on allocation of the object, the map with borders of a land parcel, reports

of organizations where documents on sitting are matched, the list of displaced

persons with indication of people who would like to obtain new land parcels or

apartments, the list of houses and constructions that should be demolished;

b. the act determining other losses of owners, users and tenants of land parcels and

damages of the agricultural and forestry production (if it is required);

c. the act of the technical inspection of a land parcel if it is seized from the forestry

production land ownership (if it is required);

d. The report of the State Committee of the Republic of Uzbekistan for Nature

Protection;

e. The report on compliance of sitting with land laws prepared by the land resources

and state cadaster of the region (town) department;

f. Documents on matching of documentation with legal entities and individuals whose

land parcels should be seized.

5) Monitor the construction project sequence;

6) Prepare documents on acquisition of a land parcel on a contractual basis with the legal

entity or individual;

7) Implement drawing borders of a land parcel;

8) Prepare documents on the right to use land parcels.

State Committee of the Republic of Karakalpakstan for Architecture and Construction is

matching documents on sitting.

The State Committee of the Republic of Uzbekistan on Land Resources, Geodesy,

Cartography and State Cadastre:

1) Calculate cost of works on allocation of land parcels, preparation of documents on sitting

and acquisition of land parcels;

2) Calculate the extent of damages of owners, users and tenants of land parcels and losses

of agricultural and forestry production;

3) Implement programs and measures to improve soil fertility, rational and effective usage

and protection of land.

The Committee on allocation (realization) of regional land parcels:

1) Consider documents on sitting;


2) Draw up a report that includes the following points:

a. The list of members of a committee taking part in the meeting;

b. Information on presence or absence of buildings and constructions, irrigation and

drainage networks, pipelines and network systems, permanent planting;

c. Calculation of damages of owners, users and tenants of land parcels and losses

of agricultural and forestry production (if it is required);

d. Description of a land parcel;

e. Determination of growth class of agricultural land in accordance with it owners,

users and tenants;

f. Information on provision of individuals with land parcels for building houses and

other constructions within the resettlement bounds;

g. Conditions of allocation of land parcels according to the nature protection and

cultural heritage requirements;

h. Land reclamation issues;

i. Removal of fertile soil (if it is required);

j. Other issues at option of the committee members;

k. Committee report.

3) Consider documents on acquisition of a land parcel.

Regional (municipal) khokims:

1) Ratify sitting for designing;

2) Make a decision on acquisition of a land parcel with indication:

a. to whom, for what purposes and what terms (if acquisition of land is temporary, a

particular term is indicated) a land parcel is seized and also name of owners, users and

tenants whose land parcels are seized;

b. total area of allocated land parcels according to its owners, users and tenants

and also quality (growth class) of seized agricultural acres;

c. the amount of losses that should be compensated to owners, users and tenants

of land parcels (if it is required);

d. the amount of losses of the agricultural and forestry production (if it is required);

e. necessity of reclamation of a land parcel, the order of its return to owners, users

and tenants whose land parcels were seized;

f. necessity of removing of fertile soil;


g. water protection, ecological, fireproof, sanitary and other requirements.

3) Ratify the layout of land parcels’ borders.

The Council of Ministers of the Republic of Uzbekistan ratifies the decision of the regional

(municipal) khokim on acquisition of a land parcel.

Independent valuation committee calculates losses of land owners and users and losses of

the agricultural and forestry production due to acquisition of land for governmental and public

needs.

State Committee of the Republic of Uzbekistan for Nature Protection: 1) holds ecological

assessment expertise of adverse effects from launching objects or introducing technologies 2)

ratifies object’s location that have adverse effects on soil fertility; 3) elaborates land protection

measures in case of necessity to allocate, design, construct and start-up new or reconstructed

objects, constructions and also necessity to introduce new technologies that have adverse

effects on the land fertility.

Thus, the major part of the acquisition and allocation of a land parcel procedures is

implemented by the architecture and construction of the region (town) department,

“Uzdaverloyiha” subdivisions and land management services according to the “one window”

principle.


CHAPTER VII ELLIGIBILITY FOR COMPENSATION

7.1 DEFINITION OF DISPLACED PERSONS

The Land Code identifies several categories of arable land users, who are eligible for

compensation for losses and damages connected with disposal of lands:

According to the law of the RUz “On farm households” No602-I of 30.04.1998, farm household

is an independent business entity that administers farm-market agriculture by means of leased

land use. Land parcels are leased for a period from thirty to fifty years and are not allowed to go

private. A contract of tenancy can be changed or dissolved agreed. If there is no understanding

this case is considered by the court. The necessity of acquisition of a land parcel for

government and public needs can be a ground for denunciation. The head of the farm

household is a farmer (a founder of the household). A farmer can be a citizen of the RUz who is

come of age and has corresponding agricultural qualifications and skills.

According to the law of the RUz “On dekhkan households” No604-I of 30.04.1998, dekhkan

household is a family small commodity household that exercises production and realization of

agricultural products on basis of family members labor at a plot land attached to a house that

allocated to the head of a family for inheritable tenure. The dekhkan household is formed on

voluntary principles and considered created after allocation of a land parcel and official

registration of this household in order established by law. The dekhkan household is formed at

agricultural and forest resources land plots that are not covered by forest planting and also at

reserve land parcels. A plot attached to a house is allocated to one of the family member of the

dekhkan household for inheritable tenure. This land is used for production of agricultural

products both for free selling and needs of the family and also for the small construction or

house maintenance. The head of a family, his (her) spouse, children, including adoptees,

parents and other relatives of working age, cohabiting and managing the dekhkan household

are members of this household. The head of the dekhkan household represents it in

relationships with legal entities and individuals. The head of the dekhkan household is the head

of the family or one of competent members of the family who acquired the right of inheritable

live tenure in order established by law. If the head of the dekhkan household become temporary

disable or continuously absent, he has right to transfer his responsibilities to one of the

household’s member. In case of acquisition of a land parcel attached to a house the dekhkan

household is liquidated in order established by law.

Hence, all individuals relating to these categories on the ground of relevant legal documents

and legal ownership of their property are protected by law of the RUz and have a right to

pretend to compensation payments in order established by law.

Consequently, farmer households that prevail on the territory of the Project area represent

public lands, provided to farmers on the ground of lease contract and for a term not more than

50 years and cannot be privatized. The necessity of acquisition of a land lot for government and

public needs can be a ground for denunciation. Moreover, these land lots are granted to farmers

in order to grow crops in compliance with the government contractual work. Thus, there is no

need to allocate land lots to project-affected households due to the fact that the government

work will be terminated after denunciation of the lease contract or it will be reduced

proportionally to the lost area. As regards homestead land, it was assessed along with the other

assets and will be recovered in money equivalent or the similar land plot will be provided.


The following entitlement matrix describes the eligibility for compensation and/or assistance for

impacts/losses for different types of assets and categories of Project – affected persons.

Table 4 Entitlement matrix

Type of Loss Application

Definition of

Entitled Person Compensation Policy Implementation Issues

Losses of HHs’ dwelling houses

Losses of dwelling houses, adjoined territories and objects located there

Owners of dwelling houses / houseowner

a) Compensation of losses of dwelling houses, adjoined territories and objects in them b) Calculation of compensation based on market rate of cost of mentioned objects including all associated fees c) transitional allowance

a) Compensation will be made according to market rate on actual date of compensation taking into account the rate of inflation and range of market value of assets including all associated fees b) The commissions of representatives of Khokimiyats (appropriate raions) as well as cadastral and other official organizations will be established to provide PAP with the alternative land plots and dwelling houses of equal value

Losses of leased22

land plots of farmer and dekhkan farm

Agricultural land plots Farmer and dekhkan farms

a) Compensation is paid to farmers for dwelling houses, industrial buildings, constructions, gardens. The equal (alternative) land plot is provided to farmers as well. b) The local authorities will provide all the farmers who lose their land plots with equal (alternative) land plots c) Compensation is paid to farmers for losses of crops.

a) Khokimiyats of appropriate raions will notify owners of residential, and other types of buildings, constructions and gardens in written form under their signature not later than six months prior to demolition and attach to the notification copies of the appropriate decisions of the Council of Ministers of the Republic of Karakalpakstan on the land acquisition, demolition of residential, production or other types of buildings, constructions and gardens adjoined to the land plots. Acquisition of land will be possible only after payment of compensation to these persons. b) The negotiations will be conducted with Khokimiats, cadastral and other official organizations to provide farmers with the alternative (equal l) land plots. c) If farmer is not satisfied with the provided land plot, he can refuse the offer of alternative land plot. In this case the government order on crops (cotton, wheat) will be terminated. The appropriative compensation for losses of crops will be calculated as well. However, the regular activity will be conducted with farmers and local authorities in order to find out the most acceptable conditions of the alternative land plots for growing the crops.

Trees (including mulberry, fruit

Losses of trees (mulberry, fruit trees)

Farmer and dekhkan farms

a) Complete compensation

due to age of the tree (+3

а) The negotiations will be conducted with Khokimiats, cadastral and other official organizations to provide farmers with the

22There is no private land plots in Uzbekistan. All land plots are public and being let on lease.


trees) years of losses) alternative (equal) land plots в) If farmer is not satisfied with the provided land plot, he can refuse the offer of alternative land plot. However, the regular activity will be conducted with farmers and local authorities in order to find out the most acceptable conditions of the alternative land plots for growing the crops, in particular seedling.

Loss of commercial, businesses and industrial activities

Loss of commercial, and industrial buildings, adjoined territories as well as objects and infrastructure located there

Owner and workers of the commercial, business and industrial activities or whoever operates the business at the site of the infrastructure.

a) Complete compensation of , buildings, adjoined territories as well as objects and infrastructure located there at the market rate including all associated fees and including compensation for lost income for two years

b) Transitional allowance

а) Khokimiyats of appropriate raions will notify owners of residential, and other types of buildings, constructions and gardens in written form under their signature not later than six months prior to demolition and attach to the notification copies of the appropriate decisions of the Council of Ministers of the Republic of Karakalpakstan on the land acquisition, demolition of residential, production or other types of buildings, constructions and gardens adjoined to the land plots. Acquisition of land and assets will be possible only after payment of compensation to these persons.

The Bank Policy 4.12 will prevail in cases of discrepancies between WB and Uzbekistan legislation.

CHAPTER VIII VALUATION AND COMPENSATION FOR LOSSES

8.1 THE METHODOLAGY OF ASSESSMENT

Acquisition of land and involuntary resettlement of persons affected by the project, as well as

compensation of their exempt assets (granting the housing of equal worth or money equivalent

for the seized property cost) will be considered within the project implementation. So, the

valuation of losses was held in order to calculate the approximate amount of losses that

households of Beruni, Ellikkala and Turtkul regions will suffer due to their involuntary

resettlement.

Consequently, with the aim of developing of the appropriate RAP, assessment of the property

market value was held. During the evaluation process the assessor adhered to the concepts

and methods of the National Standards for Property Assessment (NSPA) adopted on

14.06.2006 by the resolution of the State Property Committee and developed on the basis of the

law of the RUz “On valuation activity”.

In accordance with the NSPA №2 “Market value as the base for assessment”, the market value

is calculated by application of the evaluation methods and procedures which reveal the sort of

the property and conditions favorable for its selling in the open market. The most commonly

used ways of the market value calculation are the sales comparative approach, the

capitalization-of-income method or the discounted cash flow technique and the cost plus

method.

As provided by NSPA №10 “Appraisal value of the fixed property", the selection of established

methods within the bounds of each approach to the assessment is conducted by the assessor in

accordance with the purpose of assessment, specificity and development perspectives of the

evaluated object, as well of the restrictive conditions, information database availability and

completeness.

Thus, for the valuation of the market value of the property affected by the project, the appraiser

applied the cost method which is one of the three basic approaches to the real estate

assessment. In case of the cost method implementation, the price of the real assets object is

calculated by addition of the land plot (undeveloped) market value and full costs of a

tenant builder (a developer) for its improvement and development as of date of appraisal.

Meanwhile, the investor’s (developer) profit of enterprise is taken into account (added), whereas

the accumulated deterioration of developments during the exploitation period is substracted.

The principle of substitution underlies the cost method and according to this principle the

investor will not pay for the real assets object more money than he would have to pay for

acquiring an appropriate land parcel for development and erection of the similar object.

There are three methods within the frameworks of the cost approach:

• Method of consolidated costs indexes (the comparative unit method);

• Method of consolidated elemental cost indexes (select according to sort of works,

modular method);

• Method of unitary rates (Basics index method, input method).


Calculation of replacement cost, wear and tear and evaluation of a depreciated cost of

assessed objects conducted according to the Collector № 2 of the “Aggregative indexes of the

replacement values” of individual constructions and buildings in cities, urban settlements and

countryside of the Republic of Uzbekistan for appraisal, reappraisal of buildings and

constructions beneficially owned by individuals, where various calculation coefficients are

provided.

Calculation of garden value was implemented in accordance with the Collector №4 of the

“Aggregative indexes of the replacement values” and on the basis of the replacement value of

one tree (in uzbek sums). Diameter of the tree, its replacement value, inflation index and

reappraisal coefficient was taken into consideration as well.

All the calculations of buildings’ and erections’ development costs are given in the annex.

The appraiser made a revision of the appraisal objects and its inspection in order to collect all

necessary data on its features and actual condition of development. Thereby it was determined:

The type of basic engineering structures;

The sort of basic construction materials;

Geometry features;

Actual state of engineering structures and engineering equipment

Besides that, photographing and other necessary actions for the object identification were

made. Also, the object identification implemented by the appraiser on the basis of the

documentation provided by the owner of the object as follows:

1. State Registration Certificate for the building;

2. Cadastral documents.

In case of availability of construction documents, the verification of actual design concepts, used

construction materials and volumes of civil and erection works were implemented.

If construction documents were absent, the geometry features of the evaluation object were

determined by means of physical measuring.

The factual condition of construction elements, engineering systems and equipment was

defined by visual inspection.


CHAPTER IX COMMUNITY PARTICIPATION

9.1 POSSIBLE BENEFITS AND RISKS OF THE PROJECT

In order to the social assessment (SA) implementation, it was held 12 FGD (focus-group

discussions) with implication of farmer and dekhkan households representatives, entrepreneurs,

community leaders, women and ethnic minority (Kazakhs, Turkmen).

The average number of the FGD participants was nine individuals. Selection of participants was

based on the diversity of their access to the irrigation and drainage systems (next to the source

of the water supply point and next to the tail of the water supply point).

The FGD was held on basis of the common guidance and questioner that related to the SA

objectives.

Consultations and the survey with persons living within the Project area were carried out by

interviewers, besides that appraiser along with assessment interviewed heads of project-

affected households that allowed revealing their attitude to the Project. Questionnaires

introduced in the survey are provided in the appendix.

Findings produced due to the SA implementation will be applied to improve the project.

According to the FGD participants’ opinion, the project may have positive and negative effects

on the life of the project area inhabitants.

Possible benefits for the project area population due to the canal construction, can be the

following:

1) Construction of the canal and the project in whole will allow to use water more effectively

that will allow to decrease farmer and dekhkan households’ costs for production of

agricultural products and increase their productivity accordingly. Besides that, the

possibility to develop less beneficial productions, such as cattle breeding and planting of

specific crops, will occur. Thus, the standard of life of the project area population will

improve, as additional revenue will arise;

2) The new canal will provide satisfactory supply of more better quality water that will

improve an ecological situation and standard of life of the population (the level of

infantile death rate will decrease, life expectancy of the population - increase) within the

project area;

3) The canal’s capacity will allow to supply water not only to insufficiently irrigated areas,

but to develop a new ones;

4) Concrete casting of the canal will allow to avoid excessive watering and further

salinization of the soil that will give an opportunity to avoid decreasing yield class of the

soil and exhausting its fertility in whole;

5) The minimal number of land parcels that should be seized due to circumspect design of

the canal.

Except the project’s beneficial impacts, the SA on basis of assumptions and statements of the

FGD participants is found out some possible negative impacts for individuals living within the

project area, such as:


1) Problems with the water table management, in case of excessive or scarce infiltration

the water table can be excessively high or low. In order to minimize these risks, it is

necessary to provide construction of the canal with retaining works;

2) Failure of water supply to the canal during drought years and extra costs for cleaning of

the canal from soil and sand. Thus, it is essential to implement shore protection (planting

trees and bushes) that can prevent burying of the canal;

3) Quick deterioration of the canal floor with further flooding of the surrounding land and

water loss, if the canal will be concreted not monolithic but will be constructed of

flagstones;

4) Risks of the irrational water use due to demolition or lack of concrete pans;

5) Losses due to acquisition of affected persons’ land.

Concerning the project, the major share of PAP located on the territory of Ellikkala District

(nearly 65 per cent) indicated that heard of the planning construction and rehabilitation of

Bustan and other canals from other farmers, neighbours and acquaintances; whereas others

informed that they had never heard of the project. Meanwhile, 80 per cent of PAP considered

that construction of the canal and possible adverse consequences out of that works would

significantly decrease their revenues and other 20 per cent confident that they would not meet

any adverse consequences out of the forthcoming project. Moreover, 60 per cent of PAP

concerned that poplars and other trees planted by those households along the roads, canals

and intended to use for their own needs (construction, timber, heating and so forth) would be

destroyed as a result of the new canal construction.

In addition, nearly 45 per cent of PAP considered that one or several members of their families

would be interested in participation in the canal construction works, whereas 15 per cent of

households’ heads were ready to take part in construction works personally and the rest 40 per

cent of households claimed that they were not going to take part in the construction works.

Concerning compensation issues, approximately 70 per cent of PAP would be satisfied with a

land plot of equal worth instead of the expropriated land, 25 per cent would prefer compensation

for damage of their crops and compensation of lost profit, whereas 5 per cent were not agree

with the canal laying. Finally, 100 per cent supposed that information about the order of

receiving compensation payments was the most important for them.


CHAPTER X GRIEVANCE REDRESS MECHANIZM

10.1 GRIEVANCES REDRESS MECHANISM

Acquisition of land and involuntary resettlement are complex procedures that can be

accompanied with trials caused by compensation payments grievances and defaults of

obligations on assistance to displaced persons. As it has occurred impossible to avoid

involuntary resettlement within the project bounds so the redress of grievances mechanism was

worked out. The exact redress of grievances mechanism for PAP has not submitted at the

current moment of project implementation. However, the approximate scheme of that

mechanism was worked out on the basis of previous analogous projects that implemented

involuntary resettlement. This mechanism provides appealing of any actions and decisions that

breaks rights of affected by the project persons.

As it was mentioned above, laws of the RUz and statutory acts determine the order of

acquisition of land and the amount of compensation payments due to the project

implementation. These laws and acts aimed at avoiding possible conflicts and violation of land

users’ rights. Moreover, these procedures provide participation of all land users and their family

members in process of decision-making on a new land parcel and assessment of losses and

damages within the project implementation. If affected persons do not agree with decisions of

organizations and institutions responsible for compensation issues, they can submit a complaint

to the local administration (regional or municipal khokimiyats).

In this regard, the following mechanism will be in place to ensure that all claims are considered,

and the authorities take measures to resolve them:

1. Affected persons submit their grievances to the chairman of makhalla committee or PIU

(responsible for resettlement activity) who will register and try to resolve them. If

grievances are not settled through a week, then they are directed to regional or

municipal khokimiyats. Initiative groups will be established at makhalla committee. The y

will consist of representatives of farmers and HHs who will participate in discussion of

resettlement activity and compensation procedures;

2. Registration books of complaints will be developed in established structures responsible

for resettlement activity (makhalla committee or PIU). The submitted complaints should

be studied in period of 21 working days. Registration books of makhalla committee

should be examined by the representative of PIU every 14 calendar days.

3. A regional or municipal khokim will assume all possible measures to solve the problems

and complaints. However, if complaints are not solved during two weeks they are

directed to the Council of Ministers of the Republic of Karakalpakstan Committee on

allocation (realization) of regional land parcels;

4. An authorized by the committee person will accept complaints, register and try to solve

them.

5. If complaints are not settled during two weeks, the complaint would be submitted to the

Supreme Court of the Republic of Uzbekistan and resolved in compliance with the

national legislation and agreements on the resettlement issues between Republic of

Uzbekistan and the World Bank.


Reports and settlement of disputes should be supervised by the M&E group and khokimiyats.


CHAPTER XI IMPLEMENTATION SCHEDULE

The implementation schedule of resettlement activities that covers phases from the project

definition to the completion of project works has not been worked out yet. The situation

explained by the fact that the exact place of the canal laying did not confirmed and some

changes in the list of PAP may occur.

However, the resettlement implementation schedule would be directly linked to the schedule of

the project construction works. The PIU elaborated that schedule and presented it in the ToR.

So, it is known that the project would be realized during the six-year period and the project

expectancy (after completion the project works) accounts 25 years approximately. Accordance

to the project implementation period the project works implementation schedule would be the

following.

Programme of works

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Right Bank Canal

Bustan East

section

Bustan West

section

Pakhta-Arna

system

North Turtkul

Secondary

Canals – Ellikkala

Secondary

Canals – Beruni

Secondary

Canals –

Nayman-

Beshtam

Pilot Area

Laser Land

Levelling

Note: coloured = construction period; part shaded = defects liability period

The table was worked out by the PIU consultants and presented in the ToR


CHAPTER XII EXPENSES AND BUDGET

According to the existing practice, the resettlement budget should include all supposed

expenses related to acquisition of land, displacement and restoration of revenues,

administration costs, external control, and also contingencies. However, the budget of

expenditures on resettlement issues is not confirmed at the current phase of the project

implementation.

Despite the fact that there is lack of financial information, it is already known that compensation

for damages of assets, assistance payments and also preparation and granting of land with

appropriate infrastructure for displaced persons are stipulated by the WB operational policy,

besides these measures should applied before resettlement.

Taking into account all above presented information, the appraisal firm that carried out

assessment of the value of the affected assets was engaged. As mulberry trees are valued not

only for its physical qualities but used for the natural drainage too, its compensation costs

calculated apart from other budget components. So, detailed information of forthcoming

expenditures oriented on payment of compensation and other costs is presented in following

table.


Table 5 Estimated costs of the land expropriation and resettlement issues

Item of expenses Amount In Uzbek sums

totally

In US Dollars

totally

Compensation for the

PAP assets 79 targets 5 128 809 820 2 836 464

Compensation for the

commercial service

objects

3 (Petrol Station,

Service station,

Machine-tractor park)

554 089 812 306 437

Transitional assistance

for each HH / target 29 287 082 16 197

Total 82 5 712 186 714 3 159 098

Compensation for trees

(mulberry and fruit trees) 7 000 280 000 000 154 853

Total 7000 280 000 000 154 853

TOTAL 5 992 186 714 3 313 951

UZS USD

The table was worked out on the ground of the assessment reports (conversion was made at

the rate fixed by the Central Bank of the Republic of Uzbekistan on the 24th January 2012)

All the mentioned costs can be re-estimated taking into account the rate of inflation as well as

possible additional expenses and fluctuations of market conditions.

As regards acquisition of land and other assets, it can be implemented just after payment of

compensations and when it is possible after provision of new land plots and refunding

assistance payments to displaced people.


CHAPTER XIII MONITIORING AND EVALUATION (M&E)

Effective monitoring and evaluation both during the project implementation and long term after

project completion is a vital part of the overall project cycle; without M&E the lessons necessary

to ensure continued improvements in performance will not be learned and applied.

M&E falls within the Project Management component of the project and it is proposed that it is

carried out by an international consultant and national consultant in joint venture, working with

M&E specialists in the PIU.

Thus, in accordance with ToR, a specialist responsible for supervising the resettlement process

would be commissioned and would cooperate with the PIU consultants. All these measures

would allow achieving the objectives of training national consultants and staff in the

requirements for M&E of a large internationally funded project and embed sound M&E

techniques in the PIU structure.

The main objectives of the monitoring and evaluation (M&E) component of the project are to:

Provide independent and continuous feed back to the implementing agencies on the

project's performance and progress in implementation

Monitor and provide feedback on the success in meeting the project objectives, and

assess its physical, agricultural, social, financial/ fiscal, and economic impact

Monitor implementation of the environmental management plan (EMP) and

environmental impact of construction activities, including.

At the start of their involvement, the M&E consultants will draw up and agree with the PIU a

programme of regular data collection and surveys. The surveys will be timed to obtain

representative data and also to complement, and provide independent verification of any

relevant ongoing survey activities.

In consultation with the PIU, the M&E consultants will set up appropriate M&E procedures

targeted on key project input, output and impact indicators to be agreed with the government

and the World Bank. The component would include, but not be limited to, the following activities:

Physical implementation progress in the field as compared with the prepared

implementation schedule/ work schedule in the contractors’ contracts;

Financial management under the project, costs, expenditures, payments to the

contractors, and loan disbursements;

Works completed under various contracts, such as completion of new canals,

rehabilitation of secondary canal networks, number of water users’ associations, etc;

Feedback to the implementing agencies, the Government of Uzbekistan and the Bank,

about project implementation progress;

Feedback to the implementing agencies, in particular identifying lessons to be learned;

Development and utilization of geographical and management information systems to

monitor project implementation and operational performance;

On-the-job-training to PIU counterpart staff and national consultants, with the objective

that such staff become knowledgeable in the survey and evaluation techniques.


CONCLUSION

Temporary and permanent expropriation of land for construction of Bustan canal and

rehabilitation of secondary canals will be implemented during the Project implementation.

According to ToR, there were considered and estimated various options of water resource

management improvement in South Karakalpakstan. For each option, the physical (capital)

works are described, the operational and maintenance requirements of the completed works,

and then significant issues relating to the proposal. These solutions are then summarized and

compared, and the optimum option proposed, in this case it is Option A-2. That is why

resettlement activities were considered for this option.

The Consultant identified the necessity for temporary and permanent expropriation of land due

to construction works of the Bustan canal. Persons who will be affected in land disputes or loss

of agricultural profits and property will receive compensations prior to the construction works

implementation.

Also, the process of resettlement of the project-affected persons will be applied in accordance

with the WB OP 4.12 Involuntary Resettlement directed on mitigation and minimization of

possible negative impacts of the resettlement activity.

Thus, the RAP should be applied in order to conduct the most effective allotment and

acquisition of land procedures, including:

1. Measures minimizing involuntary resettlement of the Project area, by means of exploring

and analysis all available alternative project designs;

2. Population census in order to identify the persons who will be affected by the project and

determine the list of those who will be eligible for the replacement assistance and to discourage

inflow of people ineligible for assistance;

3. Measures to ensure that resettled persons will be informed about their options and

rights;

4. Consultations on RAP, opportunities and participation in planning and implementing the

resettlement program to PAPs;

5. Measures providing sufficient investment resources to enable the PAPs to share in

project benefits, such as:

a. Provide compensation payments in time at the amount of full cost for losses of

PAPs’ assets;

b. Provide alternative dwelling houses or land housing sites or ( if land plot is the mail

income source for resettled person) agricultural land plots;

c. Provide transportation assistance.

6. Providing assistance to improve the PAPs living standards or at least to save them at

levels prevailing prior to the beginning of the project implementation; and

7. Development of grievance redress mechanisms.


Besides that, the RAP in compliance with legal norms of the RUz and the WB identifies that

acquisition of land and other assets can be implemented in case of compensation payments or

new land parcels to PAPs.

Thus, coordination of land acquisition including all stakeholders will be a labor and time

consuming procedure. Even if there will not be any dispute and conflict concerning the allotment

of land, the consideration and approval of documents during pre-construction procedures would

take several months.


ANNEX 1

Map 3 The image oft he planning Bustan canal

Map was designed by AHT GROUP AG Management & Engineering and Ekspert fikri


ANNEX 2

The image of PAP and indication of the heads of these households names

Explanatory note to the maps:

Yellow line is the central part of Bustan Canal

Green lines identify the alienation area (122 m in width and 35 km in length)

Red lines indicate PAP

Map 4

1. Allaberganov Alisher - House

2. Kurbanov Sheripbay - House

3. Nurullaev Zaripbay - House

4. Nurullaev Yusupbay - House

5. Norbaev Rashid - House

6. Saparova Khinagul - House


7. Begimbetov Yakubboy - House

8. Begimbetov Odamboy – House

Map 5


Map 6


Map 7


Map 8


Map 9

9. No target

10. Mustafaev Davlatmurot - House

11. Balkhanova Jumagul - House

12. Erjanov Nazar - House

13. Dadabaev Bayramgeldi - House

14. Usupov Kuramboy - House

15. Usupov Ikhtiyor - House


Map 10


Map 11


Map 12

16. Abdullaev Reyimbay - House

17. Primov Murat - House

18. Matyakubov Zaripboy - House

19. Eshtoev Gulom – Incompleted construction


Map 13


Map 14

20. Radjapbaev Kajhramon - House

21. Sultanov Rajapbay - House

22. Radjapbaev Yakubbay - House

23. Kalandarov Baltabay - House

24. Khidirniyazov Urazbay - House

25. Yuldasheva Bika - House

26. Arziev Razzak - House

27. Avezmetov Otajon - House

28. Aminov Akhmedjan - House

29. Avezmetov Farkhod – Incompleted construction

30. Urazova Khurpashsha - House

31. Ruzmetov Yangiboy - House

32. Ruzmetov Bakhitbay - House

33. Ruzmetov Erkaboy - House


34. Iskandarov Nurullo - House

Map 15

35. Allamov Bakhram - House

36. Allamov Bakhodir - House

37. Allamov Turaboy - House

38. Matekubov Uktam – Incompleted construction

39. Matyakubov Yusupbay - House

40. Begimov Khaitboy - Nondomestic house

41. Matsapaev Maksud - House

42. Matsapaev Ulugbek - House

43. Davletova Dilorom - House


Map 16


Map 17


Map 18


Map 19


Map 20


Map 21

44. Davletov Uktam - Incompleted construction

45. Kamolov Umar - House

46. Shamaev Shukurullo - House

47. Pirinov Kosimboy - House

48. Khalmanov Oybek - House

49. Khalmanov Mamat - House

50. Nametov Olimboy - House


Map 22

51. Matkabulov Makhmud - Hen house


Map 23


Map 24

52. Yuldashev Ilyes - Service station

53. Petrol station - 43

54. Machine-tractor park A. Navoiy

55. Babaniyazov Mirzabay - Incompleted construction


Map 25

56. Kamalov Ilkhom - House

57. Allamov Zafar - House


Map 26

58. Matniyazov Tajibay - House

59. Matchanov Odilbek - House

60. Urazimbetov Matnazar - House

61. Yuldashev Aminbay - House

62. Aminov Ulugbek - House

63. Boltaev Oybek - House


Map 27

64. Yusupov Sheripbay - House

65. Yusupov Bozorboy - House

66. Yusupov Gaipbay - House


Map 28


Map 29

67. Khayitbaev Mansur - Incompleted construction

68. Khayitbaev Khayrullo - House

69. Khayitbaev Mukhtor - House

70. Yuldashev Ergash - Incompleted construction

71. Unknown person - Incompleted construction

72. Boymurodov Shavkat - House

73. Yuldashev Egambergan - House

74. Artikov Amat - House

75. Utegenov Erkabay - House

76. Matmuratov Mansur - Incompleted construction

77. Yuldashev Khamza - Incompleted construction

78. Bobojonov Madamin - Foundation


Map 30

79. Jumaniyazov Mukhiddin - Foundation

80. Yusupov Azamat - House

81. Ruzimov Mukhiddin - Incompleted construction

82. Nurimov Komil - Incompleted construction

83. Yangiberdiev Agabek - House


Map 31


ANNEX 3 Table of FGD, semistructured interviews, HH survey, consultations with

stakeholders and seminars

# Item Participants Date

1 Focus Group Discussions – 12 Groups

Group # 1 Women of Ellikkala raion

December 2011

Group # 2 Business owner of Ellikkala raion

December 2011

Group # 3 Women of comminity in Ellikkala raion

December 2011

Group # 4 Residents of comminity in Ellikkala raion

December 2011

Group # 5 Women of Beruni raion

December 2011

Group # 6 Business owner of Beruni raion

December 2011

Group # 7 Women of comminity in Beruni raion

December 2011

Group # 8 Residents of comminity in Beruni raion

December 2011

Group # 9 Women of Turtul raion

December 2011

Group # 10 Business owner of Turtul raion

December 2011

Group # 11 Women of community in Turtul raion

December 2011

Group # 12 Residents of community in Turtul raion

December 2011

2 Semi-Structured In-Depth Interviews – 70 Interviews

Beruni raion

• farmers at different locations within the project area; • urban households; • industrial enterprises; • individuals occupying various types of housing and farms; • elderly people, young families, and others to be determined.

February 2012

Ellikkala raion


February 2012

Turtkul raion


February 2012.

3 Farm/Household Survey – 1000

Beruni raion HHs, farmers and dekhkans

December 2011


Ellikkala raion

HHs, farmers and dekhkans December 2011

Turtkul raion

HHs, farmers and dekhkans December 2011

4 Stakeholder Consultations – 3 consultations (25 participants on a consultation)

Beruni raion

• Farmers, city businessmen, rural and city HH;

Representatives of khokimiyats and departments of the Ministry of agriculture and water resources;

Representatives of regional department of economy;

Representatives of financial institutions - banks, tax authorities, insurance companies, statistics departments;

Regional and district representatives of Association of Dekhkan and Leasehold Farms;

Representatives of Administrations of Irrigational Systems;

Representatives of local WUA;

Representatives of local female groups;

Representatives of Project implementation unit;

Experts on environmental and social

assessment.

February 2012

Ellikkala raion

Farmers, city businessmen, rural and city HH;










assessment.

February 2012


Turtkul raion

Farmers, city businessmen, rural and city HH;










assessment.

February 2012

5 Stakeholder seminar – 2 seminars (ESA) – 50 particopants on a seminar

Beruni raion











assessment.

February 2012


Ellikkala raion











assessment.

February 2012


Annex 4 Table of key conclusions on the results of consultation / public meeting and workshops with stake holder and residents of Turtkul, Beruni and

Ellikkala raions.

Consultant conducted consultation / public meeting and workshops with stake holder and residents of three raions upon ESA of SKWRIMP (Loan No. 4707-UZ /

Credit No. 3796-UZ) in the territory of three project areas during February – March 2012.

Focus-group discussions conducted in Porject area were devided in different types of groups, including women group as well.

The social issues as well as issues on resettlement upon the Project were discussed and raised during the discussions. The table of key offer and issues as well as

suggestions on mitigation measures of social and environmental impact of the Project is below:

# Offer/issues Suggested measures Introduction by the

raions

1

Notice:

1) to residents, farmers and business owners about

lands withdrawal;

2) about cancellation of new construction, land,

dwelling house, building and constructions as well

as scattering fields with seeds where Buston canal

will be constructed.

Informing residents of three project areas through mass media; providing local

authorities (khokimiats, makhalla committees, heads of communities etc.) with

the construction maps of Buston; organization meetings with resident, farmer

and business owners.

Turtkul, Beruni,

Ellikkala raions

2

When (how many years) will stop the construction

impact on environment? How many years will

residents who live among Buston canal and

secondary canals have repercussions?

Impact will be temporary. Absolutely there will be negative impact from

technical equipment (roads etc.), engine exhaust fumes, fuel, damage the soil

and others. Period of Project implementation will show how many years will

last the negative impact of the Project. It depends on financing, i.e. timely

financing as well. But it is temporary impact definitely. The excepted lands

(withdrawn) for construction will be returned and restored, i.e. soil, land,

vegetation, asphalt etc. It concerns the temporary alienation zone but not

permanent zone (area) which is under resettlement.

Turtkul, Beruni,

Ellikkala raions


3

When will start activity on resettlement or

notification about resettlement or land withdrawal

at least?

The project implementation is planned for the period of 6 years. Then the

special commission and specialists who will be involved in activity on

notification and compensation will be appointed. Everyone will be informed

about start of the works upon the Project not later than 6 months. All

compensating payments will be made according to the WB operational policy

due to market costs of withdrawal items.

Turtkul, Beruni,

Ellikkala raions

4

There are social groups among people whose land

and dwelling houses under resettlement. They did

not have funds for registration and restoration

documents for their land and dwelling houses

before the Project. What will be the procedure of

estimation and compensation for dwelling house

and lands for these people who do not have

documents on their buildings?

According to the WB policy compensation will be made up due to the market

cost of building and lands. Assesment of market rate of assets were made by

the fund of the WB upon the RAP (Resettlement Action Plan)

Turtkul, Beruni,

Ellikkala raions

5

If the farmer’s fertile area is under alienation zone

what will the farmer do with his plan and how will

his lost profits and fertile areas be compensated?

According to the RAP the estimation of irrigated lands with fertile trees took

into account estimation of total filed areas separately. Therefore compensation

will be paid to each landowner with lost fertile trees due to the market cost of

fertility of each tree.

Turtkul, Beruni,

Ellikkala raions

What is the procedure of cost estimating? And

what is the role of institutions of local government

in this process?

Deputy khokim on construction activity: No doubt, this Project is very important

for us and our people. We talked a lot about it. Regarding the resettlement

process, I can say that there are about 80 objects in three raions which are to

be resettled. The method and type of compensation for affected households

are being already discussed. Those who actually took part in studying such

areas (which are under construction) are taking part in this discussion. We are

discussing together all possible options which will be more acceptable for

people.

To be honest, there are some concern and nervousness among the people

about building and dwelling houses to be demolished. Our purpose is to calm

Ellikkala raion


those people and make them believe that the governmental policy is directed

on protection of people's rights. No one will be offended. That’s why we have

invited representatives of Makhalla committees to this discussion to explain the

core of the Project and future improvements in irrigation system to people.

We heard about discussion and Ne’matilla Matkarimovich’s (Khokim of

Ellikkala raion) speech who was speaking yesterday. I fully agree with him

about that no one of residents will be offended from Project activity and

implementation.


Annex 5 Comparative Table of the Uzbek Legislation and the WB’s Policy